CIM Magazine May 2011 by CIM-ICM Publications

3M Mining & Mineral Extraction

See us at

Booth #2005! For more than 100 years, 3M has been helping its customers get more out of their operations. In today’s demanding mining world, productivity equals profits. At 3M Mining & Mineral Extraction, We Get It.

• WORKER SAFETY • SITE SAFETY • ELECTRICAL • MAINTENANCE • CORROSION PROTECTION • CARRYBACK • ASSET TRACKING • GROUND CONTROL • and more To find out how 3M Mining & Mineral Extraction can help you, contact Ian Gillespie at 1 800-265-1840 ext. 2249.

aemopportunity

At Agnico-Eagle Mines Limited (AEM), we understand the value of a precious resource. That is why weâ&#x20AC;&#x2122;re committed to being an employer of choice, and to providing our employees with the support and opportunities they need to reach their full potential. AEM offers challenging and rewarding careers to individuals with a passion for excellence and a drive to achieve. To learn more about employment opportunities with AEM, visit our website. THE NEW GOLD STANDARD TSX/NYSE: AEM

TSX Warrant: AEM.WT.U

agnico-eagle.com

CONTENTS|CONTENU CIM MAGAZINE | MAY 2011 | MAI 2011

NEWS 14

Water scarcity a growing concern Water management is becoming a vital issue

New MAC president poised for national stage Pierre Gratton focused on

Mineral development agreements cause of contention “Unrealistic expec-

for mining companies by P. Brent reducing federal-provincial regulatory overlap by T. Loree tations” a main culprit in undermining agreements between governments and firms by P. Brent

20 21 22 24

South Africa looking forward Delegation visits mining convention to ease concerns about the country’s mining policies by J. Borsato Lawyers raise concerns about South African policy Legal experts discuss key issues surrounding mining investment in South Africa by V. Heffernan Talking up the merits of the merger TMX Group discusses benefits of merger with the LSE at PDAC Convention by M. Paduada BC Hydro gets approval for Northwest Transmission Line Long awaited B.C. environmental certificate brings power line project one step closer to realization by P. Caulfield

SNC-Lavalin celebrates 100 years Montreal-based firm commemorates its centennial of engineering excellence by H. Ednie

28 UPFRONT 28

Innovation needs no risks SNC-Lavalin expertise aids Barro

Staying connected around the globe Inmarsat’s IsatPhone

Alto Mine in plant facility design and construction by H. Ednie Pro keeps miners linked in the remotest regions by H. Ednie

CSR Counsellor review process seeks conciliatory approach CSR Counsellor for the Extractive Sector unveils dispute

Robots go where men fear to tread Penguin Automated

resolution process mechanism by H. Ednie

38 40

Systems Inc.’s robots are designed to perform multiple tasks in hazardous situations by G. Baiden, Y. Bissiri and S. Luoma Perfecting the grind IsaMill is a high-intensity and low-energy mill designed to maximize mineral recovery by P. Caulfield Making a profit while making a difference Businessman and social entrepreneur Pete Ondeng wants companies to invest in Africans as well as Africa by R. Andrews

COMMODITY FOCUS 60

Lustre restored Evolving industrial applications and strong investor interest are putting the shine on silver by E. Moore

4 | CIM Magazine | Vol. 6, No. 3

COLUMNS

65 66 68 70 74 76 78 80 82 84 88 90 92 94 122

Supply Side by J. Baird MAC Economic Commentary by P. Stothart HR Outlook by R. Montpellier Safety by A. Lopez-Pacheco Aboriginal Perspectives by J. Borsato Standards by D. McCombe Innovation by T. Hynes Metals Monitor by the staff of Metals Economics Group Women in Mining by V. Heffernan Eye on Business by C. Feldkamp and K. O’Callaghan Parlons en par C. Masson Canadians Abroad by H. Ednie Student Life by R. Grunerud Mining Lore by C. Baldwin Voices from Industry by M. Pheko

CIM NEWS 97

FEATURE 99

MINES WITHOUT BORDERS MINES SANS FRONTIÈRES 43

Towards a common goal Despite a troubled history and enduring challenges, West Africa Oeuvrant vers un objectif commun Malgré son histoire trouble et des défis incessants,

105

l’Afrique de l’Ouest est perçue comme la nouvelle frontière pour l’exploration et l’extraction minérales

FEATURED PROJECT

109

PROJET EN VEDETTE Today’s record becomes tomorrow’s standard Early production sets a fast pace at IAMGOLD’s Essakane Mine in Burkina Faso by D. Zlotnikov

Les records d’aujourd’hui sont les normes de demain Une mise en production précoce établit une cadence rapide à la mine Essakane d’IAMGOLD au Burkina Faso

Searching for the optimal balance CIM Distinguished Lecturer Mahesh Chaturvedi discusses his research on superalloys by A. Lopez-Pacheco Ready, willing and able IT and membership departments expand to support CIM’s strategic plan by A. Nichiporuk

106

Quartermain is recognized for his contributions to geology and the community by C. Baldwin Top of the class Two Memorial University of Newfoundland students receive CIM scholarships by M. Eisner

102

is seen as the new frontier for mineral exploration and extraction by A. Lopez-Pacheco

Paying it forward Vale Inco Medal winner Robert

110

Strength in numbers Society reorganization designed to better meet member needs in an evolving industry by H. B. George Prête, disposée et compétente L’équipe de l’ICM est maintenant complète et en mesure de soutenir le plan stratégique La force du nombre L’ICM poursuit la reorganization de ses sociétés

HISTORY 112 115

The foundations of modern economic geology (Part 3) by R. J. Cathro Social problems in the mining industry: a historical essay (Part 3) by F. Habashi

TECHNICAL SECTION 119

CIM Journal abstracts

IN EVERY ISSUE 6 8 10 12 91 101 120

Editor’s message President’s notes / Mot du président Letters LinkedIn comments Calendar Welcoming new members Professional directory

editor’s letter Challenging boundaries

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

And this is one of the major questions of our lives: how we keep boundaries, what permission we have to cross boundaries and how we do so. ~ A. B. Yehoshua hen I was young, my parents encouraged me to consult our globe whenever homework or current events brought an unfamiliar location to my attention. This exercise undoubtedly contributed to my decision to pursue political science in my undergraduate studies and made me practically “untouchable” on the geography questions in Trivial Pursuit. Despite my early geopolitical exposure, I am embarrassed to admit that I know extremely little about either the politics or topography of Africa: something that was driven home during the editorial exploration of the continent for this issue. Although I do not mean to say that everyone shares my blind spot, I do propose that many of us have a long way to go in our understanding of the issues and intricacies of this vast continent. And, considering the enormous potential – and potential difficulties – surrounding the development and extraction of mineral riches that lay buried there, it is certainly not something we can afford to remain in the dark about for much longer. In this issue of CIM Magazine, we present a special focus on Africa. In our feature article, “Towards a common goal,” writer Alexandra Lopez-Pacheco looks at the opportunities and challenges of resource development in West Africa where, according to some of the sources she speaks with, there has been a trend towards reforms designed to attract foreign direct investment into the mining sector. Although the political landscape there remains far from smooth, sources share their thoughts on how early and effective engagement can help to mitigate some of the risks. IAMGOLD’s new Essakane gold mine in Burkina Faso stars as this issue’s project profile. Despite being in operation for less than a half a year, in 2010, the mine produced 122,000 ounces of gold, with another 370,000 to 390,000 forecasted for this year. Writer Dan Zlotnikov also gives an account of the company’s successful resettlement of 13,000 residents – a testament to the company’s commitment to good community relations and participation. We are honoured that South Africa’s High Commissioner to Canada, Mohau Pheko, contributed our Voices from Industry column. She takes the opportunity to demystify some of the negative perceptions about her country and invites the Canadian mining industry to discover an abundance of opportunities in their place. On a final note, I would like to extend my gratitude to outgoing CIM President Chris Twigge-Molecey. It has been a great pleasure working with him this past year. His global perspective and valued input have helped us to stretch CIM Magazine’s editorial boundaries.

Angela Hamlyn, Editor-in-chief 6 | CIM Magazine | Vol. 6, No. 3

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

Andrea Nichiporuk, anichiporuk@cim.org Technical Editor Joan Tomiuk, jtomiuk@cim.org Web Editor Rosy Saadeh, rsaadeh@cim.org Publisher CIM Contributors Richard Andrews, Greg Baiden, Jon Baird, Correy Baldwin, Yassiah Bissiri, Louise Blais-Leroux, Jeff Borsato, Paul Brent, R.J. Cathro, Peter Caulfield, Heather Ednie, Marlene Eisner, Claudia Feldkamp, Hartley Butler George, Rory Grunerud, Fathi Habashi, Virginia Heffernan, Tom Hynes, Alexandra Lopez-Pacheco, Thom Loree, Steffon Luoma, Christelle Masson, Deborah McCombe, Ryan Montpellier, Eavan Moore, Kevin O’Callaghan, Mike Paduada, Mohau Pheko, Staff of the Metals Economics Group, Paul Stothart, Dan Zlotnikov Published 8 times a year by CIM 1250 – 3500 de Maisonneuve Blvd. West Westmount, QC, H3Z 3C1 Tel.: 514.939.2710; Fax: 514.939.2714 www.cim.org; Email: magazine@cim.org Subscriptions Included in CIM membership ($150.00); Non-members (Canada), $168.00/yr (GST included; Quebec residents add $12.60 PST; NB, NF and NS residents add $20.80 HST); U.S. and other countries, US$180.00/yr; Single copies, $25.00. Advertising Sales Dovetail Communications Inc. 30 East Beaver Creek Rd., Ste. 202 Richmond Hill, Ontario L4B 1J2 Tel.: 905.886.6640; Fax: 905.886.6615 www.dvtail.com National Account Executives 905.886.6641 Janet Jeffery, jjeffery@dvtail.com, ext. 329 Neal Young, nyoung@dvtail.com, ext. 325

This month’s cover Burkinabe worker at IAMGOLD’S Essakane Mine (IAMGOLD); Spill response training at Essakane (IAMGOLD); Freeport-McMoRan's drilling operations in the Katanga District of the DRC (Freeport-McMoRan); Loading ore at Kalsaka (Cluff Gold); Core shack at IAMGOLD's Siribaya property in Mali (IAMGOLD). Layout and design by Clò Communications. Copyright©2011. All rights reserved. ISSN 1718-4177. Publications Mail No. 09786. Postage paid at CPA Saint-Laurent, QC. Dépôt légal: Bibliothèque nationale du Québec. The Institute, as a body, is not responsible for statements made or opinions advanced either in articles or in any discussion appearing in its publications.

Printed in Canada

MINING SAFELY. MINING MORE. MINING RIGHT.

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

© 2011 Caterpillar t All Rights Reserved CAT, CATERPILLAR, their respective logos, “Caterpillar Yellow” and the “Power Edge” trade dress, as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission.

president’s notes One year wiser, one year stronger I was astonished to realize that this will be my last message to you as president of CIM, which makes it difficult to compress all I would like to say into my allotted page. To begin, “Mines without Borders,” the theme of the CIM Conference & Exhibition 2011 in Montreal this year, brings into sharp focus the key issues we all face in a globalized world. We have to manage more complex operations with a shortage of qualified people. We have crosscultural bridges to build spanning enormous differences in world views. We have to manage lower grade ore bodies in regions with daunting logistical and cultural challenges. Emerging issues such as resource nationalism or mineral source tracking mean our business is growing more difficult, not easier. To address this increasing complexity, it is clear that the CIM structure needs to be streamlined. To this end, the CIM Council has approved the amalgamation of the Oil Sands Society, The Coal and Industrial Minerals Society and the Metal Mining Society into two new societies, the Surface Mining Society and the Underground Mining Society. A major benefit will

be a clearer structure to potential sponsors and better co-ordination and effectiveness of our mining-related activities. This is discussed in detail in the article on page 106. Over the year, we have made substantial progress on many fronts: • We have improved governance practices and maintained a solid balance sheet. • Phase 1 of our IT project is on target to be completed this year. • The Environmental Society has come back to life with a strong leadership team. • International activities have grown substantially with CIM’s co-sponsorship of international events and winning bids for several major global conferences for Canada over the next five years. • Most gratifying of all, we have grown student membership, the future of our business. It is with great pleasure and confidence that I pass the baton to incoming president Chuck Edwards. Lastly, I would like to thank the CIM staff for their dedication and hard work over the year. They and the unseen hundreds of volunteers across the country have contributed to the great organization we have – one that we can all be proud of. Thank you all.

Chris Twigge-Molecey CIM President

En un an, nous avons gagné en sagesse et en force Quel étonnement ce fut de me rendre compte qu’il s’agit de mon dernier message vous étant adressé à titre de président de l’ICM; il est donc difficile pour moi de condenser tout ce que j’ai à vous dire dans cette unique page qui m’est donnée. Pour commencer, le thème « Mines sans frontières », thème du Congrès et salon commercial de l’ICM 2011 à Montréal cette année, a permis de cerner et de préciser les principaux enjeux auxquels nous faisons tous face au sein d’un environnement mondialisé. Nous devons gérer des opérations plus complexes alors que nous subissons une pénurie de main-d’œuvre compétente. Nous devons franchir des gouffres transculturels pour parvenir à réconcilier des conceptions du monde radicalement divergentes. Nous devons gérer des gisements à faible teneur dans des régions qui présentent des défis logistiques et culturels considérables. Par ailleurs, de nouveaux enjeux tels que le nationalisme vis-à-vis des ressources ou le traçage des minerais signifient que nos affaires se compliquent plutôt que de se simplifier. Pour pouvoir s’attaquer à une telle complexité croissante, il est manifeste que la structure de l’ICM nécessite une rationalisation. À cette fin, le conseil de l’ICM a approuvé la fusion de la Société des sables bitumineux, la Société du charbon et des minéraux industriels et la Société de l’exploitation des mines et des métaux pour former deux nouvelles sociétés : la Société d’exploitation à ciel ouvert et la Société d’exploitation minière souterraine. Une telle structure plus claire constituera un avantage de taille aux yeux des commanditaires éventuels et permettra une meilleure coordination et une efficacité accrue de nos activités en lien avec l’exploitation minière. Ce sujet est abordé en détail dans l’article de la page 110. 8 | CIM Magazine | Vol. 6, No. 3

Au cours de l’année, nous avons progressé de manière considérable sur plusieurs fronts : • Nous avons amélioré les pratiques en matière de gouvernance et nous avons déposé un bilan solide. • La phase 1 de notre projet concernant les technologies de l’information suit son cours et sera terminée cette année. • La Société de l’environnement a repris un souffle de vie grâce à une équipe aux compétences éprouvées en matière de leadership. • Les activités internationales se sont développées de manière appréciable grâce aux événements internationaux en partie commandités par l’ICM et grâce à nos soumissions retenues pour la tenue de plusieurs conférences mondiales majeures au Canada au cours des cinq prochaines années. • Il est surtout très agréable de noter une augmentation du taux d’adhésion parmi les étudiants, lesquels constituent l’avenir de notre entreprise. C’est avec un grand plaisir et une entière confiance que je passe le flambeau au nouveau président Chuck Edwards. Enfin, j’aimerais remercier le personnel de l’ICM pour leur dévouement et leur travail acharné au cours de cette année. Leur apport, ainsi que celui des centaines de bénévoles invisibles de part et d’autre du pays, ont contribué à développer cette merveilleuse organisation dont nous pouvons tous être fiers. Merci à tous. Chris Twigge-Molecey Président de l’ICM

letters Light, bright “To err is human, to forgive divine” In the previous issue of CIM Magazine, the word “circa” accidentally found its way into the Historical Metallurgy article (p. 88-90). The dates are in fact exact and not approximations. Our apologies to Dr. Habashi.

Dr. Habashi, It was a pleasure to read your article on the history of the miners’ safety lamp in the November 2010 issue of CIM Magazine. For somebody working in the miners’ cap lamp industry, I can appreciate how much progress has been made during the past decades for the benefit of the miners. I work for NL Technologies based in Toronto, Ontario. As you can see from the attached photo of the lamps we’ve manufactured over the past 25 years, it is easy to appreciate the decrease in size, all the while improving its performance for the benefit of the miner. Best regards, Elmer Bauman

In the March/April 2011 issue of CIM Magazine (p. 22-23), in the article entitled “Mapping the past reaps continual rewards” by Neville Judd, it was incorrectly noted that North American Tungsten Corp.’s Can Tung Mine is located in Yukon. The mine is in fact located in the Northwest Territories. CIM Magazine apologizes for the error.

Innovative Solutions for Potash Drying and Granulation ä 5RWDU\ 'U\HUV ä )OXLG %HG 'U\HUV ä &RQWDFW &ROXPQ &RROHUV +HDWHUV ä 3ROLVKLQJ DQG &RQGLWLRQLQJ 6\VWHPV ä (QHUJ\ ,QWHJUDWLRQ GEA Barr-Rosin E-mail: sales.barr-rosin.ca@geagroup.com Worldwide Representation: For local contact details and more information about GEA Barr-Rosin, access www.barr-rosin.com

10 | CIM Magazine | Vol. 6, No. 3

gets home

profile

Contacts

groups

Jobs

Inbox

Companies

Groups

Canadian Institute of Mining

Advanced

CIM gets LinkedIn

CIM’s LinkedIn group provides enlightening feedback CIM currently boasts over 2,000 members on LinkedIn. Join us today and get involved in the compelling dialogue. Below are a few of the myriad LinkedIn comments received daily in response to CIM Magazine’s editorial topics.

In order to innovate, the mining industry needs to collaborate Collaboration the key to innovation and success: Vol. 6, No. 1, p. 30 we can get the industry stakeholders to commit to r&d by explaining its practical benefits to them. generally, it seems that industry views r&d as an expenditure only. Few companies take advantage of the benefits that r&d may afford them. In the coal mining industry, for example, applying sequence stratigraphy in coals helps to plan and mine it efficiently. I have recently tested it in one of my projects at an Indian mine. It is like earning $20 by investing no more than $1. Vinay Sahay, geologist, Mining exploration pty Ltd, nagpur Area, India

It is interesting to discover that this is now a trend in the mining industry, and a practice not yet developed. I have witnessed how collaboration for innovation has been performing in the aerospace, automotive and varying mechanical industries, and this informative article has helped me to better understand the issues and needs of the mining industry regarding collaboration for innovation. Alexandre Troppi, energy Industry - Audience & Communities Manager, dassault systemes, paris, France

Aboriginal perspectives – from roadblocks to building blocks From roadblocks to building blocks: Vol. 6, No. 1, p. 68 good for noront! I’m sure this will make an important difference to the communities where they operate. I’d like to see our senior companies support the next level of education – making mining engineering degrees a real possibility for young Aboriginal people from mining communities. I believe that communities and their cultures will be invigorated and industry will benefit if we help them become mine designers and managers. Anne Johnson, phd student, robert M. Buchan department of Mining, Queen’s university, kingston, ontario, Canada

Iron ore – the commodity of growth Future growth built on iron ore legacy: Vol. 6, No. 2, p. 38

MineDesignWiki – an online resource for mine design Sharing knowledge in the digital realm: Vol. 6, No. 1, p. 28 this is a very exciting and useful resource that can help us to better understand how our area of expertise fits into the overall development of a mine. In addition, it should help people with vision to grow an opportunity into production and profitability. Doug Ballard, equipment solutions provider, Vancouver, British Columbia, Canada

this is a great initiative. I work for a supplier to the mining industry, and with experienced personnel becoming increasingly difficult to find, I believe this will be a valuable training and reference tool. Ricky Jackson, sales Manager, sandvik Mining and Construction pty Ltd, tasmania, Australia

As a former steelmaker for many years, I assure you that iron ore prices will continue to play a major role in steel production cost for the coming five-year cycle! Wesam Hanna, steel / refractory p.eng, toronto, ontario

good article, but the iron ore mining and price pattern has to be formulated to meet the demand of developing economies in African and CIs countries. one has to bring all the players to a common platform and then rethink the price issues. Rajendra Chaubey, Chief general Manager, nsAIL, Indore Area, India

great article, however, will a 20 per cent drop in the Chinese economy have an effect on iron ore? yes it will. But to what degree? they still need iron ore to manufacture goods or their economy will immediately come crashing down. Donald Sisk, Ceo, global Mining group LLC, new york, new york

SCAN THE QR CODE BELOW wIth your sMArt phone to Be tAken dIreCtLy to CIM’s LInkedIn pAge.

12 | CIM Magazine | Vol. 6, No. 3

Join the discussion on

The Ultimate Synthetic Performance On The Road, And Off

Introducing Mobil Delvac 1 ESP 0W-40: the ultimate level of year-round efficiency and reliability from an API CJ-4 licensed SAE 0W-40 synthetic. With a relentless commitment to research and development, our products are designed to extend the life of your engine and keep your vehicle operating at peak efficiency. From over 80 years of specialization in heavy-duty lubricants, Mobil Delvac is trusted by the worldâ&#x20AC;&#x2122;s top five heavy-duty engine builders and millions of truck drivers around the world.

Find out more at mobildelvac.ca.

www.essolubes.ca

ÂŠ2011 Exxon Mobil Corporation. Mobil and Mobil Delvac are trademarks of Exxon Mobil Corporation or one of its subsidiaries. Imperial Oil, licensee.

news Water scarcity a growing concern Practices will come under greater scrutiny, say industry panelists By Paul Brent

Courtesy of BioteQ Environmental Technologies

Water’s role as a critical treatment solution for the resource for communities mining industry. The Vanand mining firms, its scarcity couver-based company’s and its usage were the focus multi-stage technology can of three presentations at the remove saleable metals such Mining, People and the Envias copper, zinc and cobalt ronment conference held in from wastewater, then later, conjunction with the PDAC iron and aluminum, and Convention in Toronto in finally, sulphate (saleable March. The panelists gypsum product), leaving included a mining engineer, behind clean, useable water. the head of a water treatment The process also removes company and an environhazards such as cadmium, mental researcher. lead and arsenic. “In a nutWater usage is “an increasshell, we take water that is ingly important issue for the contaminated, cannot be dismining industry,” Rob Kerr, charged, cannot be reused, vice-president of research and we clean it so that it can firm GlobeScan Inc., told be discharged or reused, and attendees of the conference. in the process of doing that, Kerr, who chaired the panel we generate saleable prodon water usage, said public ucts that can be shipped perception of mining compaoffsite,” Kratochvil said. nies currently ranks in the Piet Klop, acting director “low to average” range. His of the Washington-based firm, which handles stakeWorld Resources Institute, holder research on issues and noted that the mining secreputation management for a tor’s thirst for water is more number of industries includ- BioteQ’s water treatment processes recovers dissolved metals from wastewater. pressing than ever before ing mining, noted that in because of increasing water surveys of communities and scarcity around the world. stakeholders, “the importance of water making sure that you communicate it “And climate change is going to never goes down.” well.” A key issue for the engineer is make everything worse still,” he said. Citing Canadian figures, David what he termed “water balances,” such Klop also predicted increasingly Bleiker, senior associate engineer with as promising to have a zero discharge tough regulations and enforcement site, forgetting that water uses will dif- on water quality in the near future. Mississauga, Ontario-based engineering and project management firm fer when a mine progresses from “It may not happen everywhere,” he AMEC, said that although mining exploration to operation and closure. said. “But the trend is pretty clear; processes account for a tiny portion of Projects can have unintended and there is going to be a lot more water usage, the industry’s impact can hard-to-predict effects on surface and scrutiny.” In a question-and-answer session, be outsized. “It is not necessarily the groundwater. Hoped-for “zero diswater we use, it is the water we charge” projects, for example, may or the presenters agreed that mining affect,” he explained. “Let’s face it, may not be low impact with regards to companies are doing a better job handling water issues. “The industry is when we screw up in the mining water when it comes to nearby comgenerally far more aware than ever industry, it tends to stay around for a munities, he said. before,” said Bleiker. “They are lookDavid Kratochvil, president and COO long time.” ing to use reclaimed water; they are Bleiker added that dealing with of wastewater treatment company looking to just reduce the footprint water issues comes down to “good BioteQ Environmental Technologies CIM in general.” solid science and engineering and then Inc., presented his company’s innovative 14 | CIM Magazine | Vol. 6, No. 3

Local service, global support Outotec innovates, develops and delivers sustainable solutions to the minerals, metals, chemical and energy industries. Outotec's lifelong collaboration with its customers helps optimize the utilization of raw materials and energy efficiency, as well as minimize the environmental impact and operating costs. Outotec operates through a global network of service centers commited to providing support whenever needed. From equipment transfer and training, to maintenance, onsite inspections, upgrades, modernizations and ultimately decommissioning, Outotec is your trusted partner for the life of your operation. Outotec's offering is now enhanced by the addition of Larox filters. For more information, visit us at CIM 2011 Montreal CA - Booth #2015.

www.outotec.com

news New MAC president poised for national stage Pierre Gratton vows to push back on “regulatory creep”

What a difference 12 years can make. When Pierre Gratton was first appointed to the Mining Association of Canada in 1999 as vice-president of sustainable development and public affairs, the dot-com bubble was about to burst and mining was considered a sunset industry. The emphasis then was on diversification and away from the traditional resource sector. Since then, the resource sector has rebounded (notwithstanding the crisis of 2008) and mining is once again in vogue. All in all, it is a promising time for the industry – and for Gratton in his new role as president and CEO of MAC. Before this appointment, he had served as president and CEO of the Mining Association of British Columbia since 2008. “During the dot-com era, it was tough getting any kind of attention in Ottawa,” recalled the 46-year-old Montreal native. “But the world has changed. People now realize that there is essentially one economy and it’s neither old nor new, neither traditional nor hi-tech. There’s also a greater recognition that mining, capital-intensive as it is, drives the high-tech industry. Mining companies are constantly looking at ways to improve efficiency and deal with environmental challenges.” Gratton is confident that the fundamentals are in place for a long-term upward cycle. “We’ll continue to see dips, sure, but the dips could end up being better than the peaks were 10 years ago,” he said. “One thing is certain: this is a new era. The prime minister has referred to Canada as an ‘energy superpower.’ When he says that, he is mainly referring to the oil sands, which are largely mining operations. What Canada is, in fact, is a mining superpower.” Whereas in the past, MAC focused primarily on domestic matters, its 16 | CIM Magazine | Vol. 6, No. 3

Courtesy of Normand Huberdeau/NH Photographes Ltée

By Thom Loree

Pierre Gratton said he will focus on regulatory harmonization and human resource challenges.

mandate has expanded to include international concerns. “The global issues with which the industry is wrestling with have become more prominent and complex, whether they are trade, human rights or corporate social responsibility,” Gratton noted. In 2004, Gratton played a pivotal role in developing MAC’s award-winning initiative Towards Sustainable Mining (TSM), which set out performance indicators that MAC members are required to implement and report on annually. Today, TSM is being used at advanced exploration projects both at home and abroad. “The program has advanced to the stage where it is really about implementation,” explained Gratton. “A growing number of our Canadianbased member companies are applying TSM to their off-shore projects and this, in turn, means greater credibility and support. As a result, Canada’s mining companies are being recognized worldwide for what they’re doing in the area of corporate social responsibility.”

Efforts by MAC and other industry organizations to persuade government to cut the corporate income tax rate have recently met with success. At the beginning of this year, the tax rate was lowered to 16.5 per cent from 18 per cent, and further reductions are expected. What this means, said Gratton, is that the mining industry’s concerns about tax rates have been largely addressed. With tax competitiveness essentially a fait accompli, MAC has turned its attention to regulatory improvements. “We’ve started to make some headway in that area,” said Gratton. “For example, amendments to the Canadian Environmental Assessment Act have put the Canadian Environmental Assessment Agency in charge of comprehensive studies, eliminating a lot of the delay and uncertainty that existed before.” Gratton cautioned against what he termed “regulatory creep,” that is, the continual expansion of the federal government into provincial jurisdictions. “The emphasis now is on building greater provincial-federal harmonization, avoiding duplication, and generally having more thoughtful, consistent and workable regulatory regimes,” he explained. The latest challenges facing industry are what Gratton referred to as “good problems,” the problems associated with success. “As the industry expands in response to rising commodity prices, we are going to see a greater focus on Canada’s infrastructure – transportation and energy – to make sure we can get our products to market efficiently and cost-effectively,” he said. “And we are going to have to intensify our efforts in getting more people interested in working in mining. The human resource challenges we are already facing are only going to intensify.” CIM

SAVING MINES MILLIONS S IN ENERGY COSTS

Mines of the future will be going deeper, resulting in higher costs for infrastructure, ventilation and energy. How your mine addresses these future challenges will separate your company from the rest of the mining industry. BESTECH, one of Canada’s leading firms specializing in engineering, automation, software d e ve lo p ment and energy management has created NRG1-ECO. NRG1ECO (Energy Consumption Optimization) is a mine-wide energy management system that can save mines millions of dollars in energy costs per year. NRG1-ECO can be applied to automated equipment and processes such as compressors, pumps and ventilation to significantly reduce energy consumption.

NRG1-ECO Web Based HMI The Web Based HMI allows remote access to standard process control HMI. Shown here is a VFD Fan under cascading closed loop PID control.

NRG1-ECO was developed with an open architecture so that it will work with technology already in use at any mine. Integration is at the core of NRG1-ECO and its ability to incorporate with new or existing mine technology offers mines, old or new, the opportunity to realize significant energy savings. The NRG1-ECO system can be customized to to reflect each mine’s needs and protocols in order to leverage the highest ROI for each mine site.

This year, NRG1-ECO was installed at Vale’s Coleman Mine and Xstrata Nickel’s Fraser Mine, both in Sudbury, Ontario, Canada. “We worked together with BESTECH on what was needed in the industry and they’ve completed the development of NRG1-ECO’s Ventilation-On-Demand management tool for us,” says Cheryl Allen, Chief Engineer - Ventilation, Vale Mines Mill Technical Services, Canadian Operation. A mine ventilation system usually operates at peak capacity 100 per cent of the time. NRG1ECO’s VOD (Ventilation-On-Demand) module enables the mine to instantly control the ventilation system’s air flow to when and where it is needed. This allows a mine to reduce its ventilation costs by as much as 30 per cent, which represents significant savings given that ventilation costs make up almost 50 per cent of a mine’s energy costs. BESTECH’s NRG1-ECO technology is attracting world-wide attention from other mining giants, including North America’s fastest growing senior gold producer, Goldcorp Inc. “We looked at two different systems. It seemed BESTECH was offering a complete package from ground up. We’re hoping to go ahead with NRG1-ECO in a twostage approach. First, have the system up and running on two levels in the Hoyle Pond Mine in Timmins and if that proves to be satisfactory, then we will expand it to the rest of the mine,” says Imola Götz, Chief Engineer, Hoyle Pond Mine, Goldcorp.” Assistance with Energy-Efficiency Grants and Rebate applications is available to mines for both the initial NRG1-ECO site assessment and commissioning to help leverage increased profitability and savings. Marc Boudreau (BESTECH President & CEO), Sarah Paajanen (BESTECH Project Manager) and Cheryl Allen (Vale Chief Ventilation Engineer/Project Manager). Photo Provided by Vale.

www.bestech.com

Many types of environmental monitoring sensors can be integrated into the NRG1-ECO control system to monitor various parameters including temperature, relative humidity, carbon monoxide (CO), carbon dioxide (CO2) and nitrogen monoxide (NO); providing real-time data to support Ventilation-On-Demand.

“We worked together with BESTECH on what was needed in the industry and they’ve completed the development of NRG1-ECO’s VentilationOn-Demand management tool for us.” Cheryl Allen, Chief Engineer - Ventilation, Vale Mines Mill Technical Services, Canadian Operation. To find out more information on NRG1-ECO, go to www.bestech.com/NRG1-ECO. Follow BESTECH on

news Mineral development agreements cause of contention Lack of understanding leads to unmet expectations By Paul Brent Mineral development agreements between governments and mining firms are increasingly becoming flashpoints for controversy, according to World Economic Forum (WEF) executive Britt Banks. In many parts of the world, mineral development agreements are heralded with promises of jobs and revenue, only to quickly fall short of expectations, Banks said in his keynote address at the Mining, People and the Environment conference held in conjunction with the PDAC Convention in Toronto in March. “Five years later it seems as if absolutely nobody is happy with the situation,” he explained. “The new government that has taken power since then says, ‘Wait a minute [we] didn’t negotiate this agreement,’ commodity

18 | CIM Magazine | Vol. 6, No. 3

prices have skyrocketed and people feel like they didn’t cut a good enough deal, and they are not getting enough of a share of the pie.” Over the past year, the WEF held a series of meetings in Columbia, Tanzania and Mongolia. As well, stakeholder consultations and interviews were conducted with the resources industry, government, civil society (including NGOs) and other relevant actors (academics, consultants) in Africa, Asia-Pacific and Latin America to explore the issue of mineral development agreements. “It seemed like a very good idea to try to look at what exactly were the dynamics of these types of agreements,” said Banks, a former Newmont Mining Corp. executive who chairs the Global Agenda Council on the Future of Mining and

Metals at the WEF. Banks is also an adjunct professor with the University of Colorado Law School. Among the key findings of the WEF study were that many mineral development agreements led to unrealistic expectations. “This theme came through over and over again,” said Banks. Going into negotiations, there was an insufficient understanding of the “nature, scope and timing of the benefits and costs” from the projects during the early stages of negotiation and development, he said. Frustrations also included the timing of tax revenue flowing out of the project, and the speed and depth of employment from the project. A second common criticism, particularly in developing countries, was termed as “asymmetric bargaining power.” Mining companies typically have hard-won expertise drawing up development deals, while governments often have little or no experience doing such deals. “When you have this type of asymmetry it can really impair the perceived legitimacy of these types of agreements,” Banks explained. Another issue is agreements in which key details of the deal are not made public. “When that is the case, then people will automatically assume the worst about what is in the agreement and about how the agreement was negotiated,” he added. “So while there might be competitive advantages to keeping agreements secret, people need to understand that there are often a lot of costs.” The WEF intends to hold eight to 10 multi-stakeholder dialogue sessions around the world over the next year, starting with a meeting in Brazil in April. “Ideally, some pilot projects might be developed on one or two of these specific recommendations or proposed solutions,” said Banks. “And the hope is that a framework for mineral development arrangements could be developed.” CIM

NEW Industrial Gear Units

X tra robust housing X tremely fine torque graduation

X traordinarily flexible mounting options

X ceptionally effective cooling system

Toronto (905) 791-1553

Montreal (514) 367-1124

Driving the World

Vancouver (604) 946-5535

www.sew-eurodrive.ca

news South Africa looking forward Government delegation addresses issues plaguing reputation By Jeff Borsato South Africaâ&#x20AC;&#x2122;s mining industry is open for business. That was the message that the mining delegation from South Africa wanted to make sure was heard loud and clear at this yearâ&#x20AC;&#x2122;s PDAC Convention held in Toronto in early March. Led by South African Minister of Mineral Resources Susan Shabangu, a delegation of business and labour representatives of the Mining Industry Growth and Development Task Team was at the international gathering to allay investorâ&#x20AC;&#x2122;s concerns about the recent Fraser Institute report that ranked South Africa 67th out of 79 in mining jurisdictions. Shabangu said that to encourage development, it is vital that South Africaâ&#x20AC;&#x2122;s policy-makers continually review their legal framework in order to align it with broader national strategies that guide future development. She stressed that any policy framework for future development must be tailored to South Africaâ&#x20AC;&#x2122;s needs â&#x20AC;&#x201C; just as Brazil and other emerging economies have done with great success. Proposed amendments to the Mineral and Petroleum Resource Development Act were a hot topic at the seminar.

Attendees had many questions regarding Section 11 of the Act, which regulates the transferability of prospecting and mining rights. Shabangu outlined how Section 11 is being carefully reviewed to ensure that ambiguities in some of the provisions are removed. As well, she said that a streamlining of the licensing processes to a virtual â&#x20AC;&#x153;one-stop shopâ&#x20AC;? for mining requirements would be instituted. She added that the ministry is reducing the wait time for mining and prospecting licenses from six months to three months. The minister is also focused on strengthening the provisions to improve working conditions in mines, as well as publishing a new mining charter that includes clearer requirements. On her first diplomatic assignment, Mohau Pheko, South Africaâ&#x20AC;&#x2122;s high commissioner to Canada, emphasized the importance of a collaborative relationship between the minerals industry, its workers and the citizens of South Africa as a whole. â&#x20AC;&#x153;Collaboration will help to create a fair playing field between the state and industry,â&#x20AC;? she said. Pheko outlined the governmentâ&#x20AC;&#x2122;s vision to ensure the domestic supply of key

+GLGLE GQ ? BCK?LBGLE GLBSQRPW %NDRESS (AUSER IS YOUR IDEAL CHOICE FOR RAW MATERIAL HANDLING AND PROCESSING IN VARIED APPLICATIONS s 3LURRY FLOW MEASUREMENT s &LOTATION AND CLARIFIER OPTIMIZATION s +ILN TEMPERATURE CONTROL s -ONITORING OF ORE Visit us: LEVELS IN BINS CIM Montreal s #ONTROLLING +?W CONCENTRATIONS MMRF Â¨ IN ACID PLANTS s 3LURRY DENSITY MEASUREMENT s !IRFLOW QUALITY s !UTOMATION SOLUTIONS TO OPTIMIZE LOGISTICS PRODUCTION AND MAINTENANCE PROCESSES 'ET THE LATEST TECHNOLOGY TO MEASURE m OW LEVEL PRESSURE TEMPERATURE DENSITY P( AND MORE !?JJ MP AJGAI RMB?WĹ˝ W@M IS ,IFECYCLE -ANAGEMENT 4RY ONE OF ITS FUNCTIONS FOR FREE: WWW CA ENDRESS COM DEVICEVIEWER Endress+Hauser Canada Ltd/LtĂŠe

+GLC ?LB NPMACQQ P?U K?RCPG?JQ KMPC CDj AGCLRJW

20 | CIM Magazine | Vol. 6, No. 3

3UTTON $RIVE "URLINGTON /NTARIO , , :

4EL &AX INFO CA ENDRESS COM WWW CA ENDRESS COM

news materials such as coal. She also highlighted core issues of local consumption versus export for coal, and how maintaining a steady domestic supply remains a key issue for her government. Senzeni Zokwana, president of the National Union of Mine Workers and of the International Federation of Chemical, Energy, Mine and General Workers’ Union, focused his remarks on the people who make up the industry. Employing approximately 460,000 people directly and 400,000 on the supply and service side, the minerals and exploration industry remains a vital component of South

Africa’s economy. Zokwana pointed to ongoing efforts by the government and unions to promote not just academic credentials of workers, but also direct skills, including trades. “Engaging youth is critical to South Africa’s continued development, and we must face the challenge to engage firms to develop skills needed for the future,” he said. Both Zokwana and Shabangu referred to a recent policy framework released by the South African government known as “The New Growth Path,” which prioritizes the mining industry value chain as one of the “growth nodes” of the economy. CIM

Lawyers raise concerns about South African policy Increasing regulations creating uncertainty for mining investment By Virginia Heffernan the sector. To address these inadequacies, the country has placed a moratorium on issuing prospecting licences and set up a task force to review the mining laws. While the legal experts were encouraged by the promise of a new electronic system to track mineral rights, they remain dismayed by the vague demands of recent amendments to the mining charter concerning beneficiation, community development and black economic empowerment, including the requirement for a minimum target of 26 per cent ownership of mining companies by historically disadvantaged South Africans by 2014. Presenters also voiced concerns about the recent launch of a state-owned mining company called the African Exploration Mining and Finance Corporation. The national company may be given exemptions under the Mining Act, would be competing with the private sector for mineral resources, would be self-regulating and would rely on taxpayer funding, all negatives in their eyes. Most of the hope for a better regulatory environment rests with South African Mineral Resources Minister Susan Shabangu, who was in Toronto to attend the PDAC Convention and allay investor concerns. She is reviewing the lack of transparency in the system and came out publicly against nationalization at the Mining Indaba conference held in Cape Town in February. “I don’t think nationalization is a real threat, but it is unfortunate that it is being investigated by the government,” said Manus Booysen, another partner in Webber Wentzel. “And it’s disappointing that we have slipped once again on the Fraser Institute report.” CIM Courtesy of MineAfrica Inc.

The euphoric atmosphere of the Peter Leon, of South African law firm Webber 2011 PDAC Convention dissipated Wentzel somewhat down the road at the Radisson Hotel in Toronto, where a sobering session on the state of the mining industry in South Africa took place in tandem with the annual gathering of global miners. The truth is that South Africa has missed out on the commodity boom other countries have enjoyed because of the uncertainty of its regulatory environment, explained Bruce Shapiro, president of MineAfrica Inc., the organizer of the event. The “South Africa’s Mining Industry: The Perceptions and Reality” seminar drew roughly 75 participants to hear lawyers from South Africa and Canada discuss the country’s regulations and the possibility of mining assets being nationalized. While most presenters concluded that nationalization was unlikely, even though the option is being investigated by the ruling African National Congress, they could not ignore the fact that South Africa has fallen to 67th place out of 79 countries in the Fraser Institute’s annual ranking of ability to attract investment in mineral exploration. “It’s too soon to tell if we face a crisis,” said Peter Leon, a partner at Webber Wentzel Attorneys in South Africa. But he added that even though the country has vast mineral reserves, mining GDP declined one per cent per year during a seven-year boom period for commodities. When South Africa introduced its mining charter in 2002, the idea was to make changes to redress historical imbalances entrenched by apartheid. But regulatory uncertainty, vague licensing requirements and a few high-profile cases of alleged corruption have discouraged investment in

May 2011 | 21

news Talking up the merits of the merger TMX Group presents its case at the PDAC Convention By Mike Paduada The TMX Group and London Stock Exchange Group have a tough challenge ahead of them. How do they convince the over 1,700 mining companies listed on their combined platforms and investors with $1.19 trillion in market capitalization that the merger will provide a clear net benefit to the markets? The TMX Group took the first step by bringing the discussion to the mining companies and investors that converged in Toronto in March for the 2011 PDAC International Convention, Trade Show and Investors Exchange. Of the 27,700 attendees at the conference (which shattered last year’s record of 22,000) an estimated one-quarter were international delegates, representing over 100 countries.

The PDAC Convention gave the TMX Group an opportunity to present its case and address questions in a lastminute addition to the technical session program. Kevan Cowan, TMX Group president of TSX Markets and the group head of equities, explained that this is a strategic move in the face of impending global consolidation that will allow the merged group to reduce overhead, improve infrastructure and secure a strong, competitive position in global capital markets. According to Cowan, the benefits of the union include competitive pricing, high-quality service and unrivaled access to capital markets. For those that are content with Canada’s current top standing in the global mining equity marketplace, “we may

SMS Equipment holds a unique position in the industry as a one-stop supplier of the most complete range of equipment. We offer only world-renowned brand names that meet your standards of reliability and productivity. With over 40 locations to serve you across Canada, SMS Equipment is your local

SMSPRT11_22

equipment and solutions provider.

WESTERN REGION

1.866.458.0101

EASTERN REGION

1.800.881.9828

www.smsequip.com

22 | CIM Magazine | Vol. 6, No. 3

risk losing that competitive advantage if we don’t participate in consolidation internationally,” Cowan added. “The TMX Group has been quite central to the fact that Canada has been a world leader in this industry,” explained Tony Andrews, PDAC executive director. “They have developed a niche market specialization in mining. Other countries want to emulate Canada and start a capital market that facilitates raising money for junior companies. We have to be aware that others would like to do this.” Listening to what PDAC members had to say on the merger, it seems that they are taking a wait-and-see approach at this point. Executives from over 20 mining companies in the investor’s exchange, ranging from small juniors to multinational majors, were asked their opinion. All declined to comment officially, but some common apprehensions were about listing fees and improving capital markets. “My phone certainly hasn’t been ringing off the hook with people expressing concerns,” said Andrews. “From what I’ve heard, people feel there is little to no risk in the short term.” Weighing in on the next phase of the merger discussion, Andrews applauded the Ontario government's decision to form a select committee. Made up of provincial parliamentarians from the Liberal, Progressive Conservative and NDP parties, the committee was tasked with reviewing the impact of the merger; their report was released in April. While it did not favour or oppose the merger outright, it did make nine recommendations. Among them was that there should be equal representation of the TMX on the board of directors. Under the current proposed agreement, the TMX occupies seven out of 15 seats on the board. The Ontario select committee's recommendations are not binding. The ultimate decision rests in the hands of the federal government. CIM

Vertimill® Grinding Mill

Fine Grinding Technology

Stirred Media Detritor

Reduced Power & Media Consumption

Solid recovery Stirred milling technology featuring VERTIMILL® & Stirred Media Detritor

You demand lower operating costs, but you can’t sacrifice your product recovery. Metso stirred mills deliver outstanding efficiency, finer grinding sizes and reduced power and media consumption so you get the results you need. With enhanced recovery, reduced operating costs and improved revenue, you can rely on Metso’s equipment and reputation. They’re both rock solid. metso.com – email: minerals.info@metso.com

news BC Hydro gets approval for Northwest Transmission Line Power line will energize mine development in northwestern B.C. By Peter Caulfield After a year-long review, the British Columbia government’s Environmental Assessment Office granted an environmental certificate to BC Hydro for its proposed Northwest Transmission Line project. By bringing inexpensive electricity to northwestern British Columbia, most of which is outside the province’s power grid, the new line is expected to have far-reaching economic benefits for an underdeveloped part of the province. Gavin Dirom, president and CEO of the Association for Mineral Exploration British Columbia, says the region has “world-class geology,” but

development has been limited by a lack of infrastructure. “Granting the environmental assessment certificate for the line represents the start of a new era for mineral exploration and development in northwestern B.C.,” he said. “Replacing diesel-generated with low-cost hydro-electric power will make a huge difference.” The proposed $404-million project includes a new 287-kilovolt transmission line that will extend 344 kilometres from the Skeena substation south of Terrace, along the Highway 37 corridor to a new substation near Bob Quinn Lake. The

project will also include new access roads and an upgrade to the Skeena substation. According to Dirom, there are more than 935 mineral occurrences in the region that could benefit from the transmission line. Of that number, 67 are in the resource category. And the provincial government has identified 25 major exploration projects in the northwest. Pierre Gratton, outgoing president and CEO of the Mining Association of BC, said the power line has the potential to attract more than $15 billion in investment, create 10,700 jobs and

From concept through closure Industry-leading expertise and project development with the right people in the right places front-end studies mineral and metallurgical process design open pit and underground mine design surface and underground infrastructure engineering tailings technology and mine water management geotechnical engineering and environmental services construction and project management

Australia - Brazil - Canada - Chile - Peru South Africa - UK - USA

24 | CIM Magazine | Vol. 6, No. 3

at s t r pe - 25 x r e y 22 15 u t o a 10 ee IM M oth M C o B

news BC Hydro has also signed impact benefit agreements (IBAs) with the Nisga’a, Kitselas, Tahltan and the Metlakatla First Nations. Negotiations are currently underway with other First Nations. Glenn Bennett, chief councillor of Kitselas First Nation, said, “The line will be extremely beneficial to the

region, which is very depressed economically. We need the employment.” Bennett said the Kitselas signed an IBA with BC Hydro about six months ago. “We received a one-time payment from BC Hydro and the right to bid on construction contracts pertaining to building the line,” he said. CIM

We worried about withstanding the worst extremes, so you don’t have to. Westeel liquid storage tanks are engineered to withstand the toughest applications, everything from extreme hot and cold temperatures to operating environments where dents, scrapes and corrosive elements are common. In addition, our tanks are manufactured in ISO 9001:2008 quality controlled facilities using superior steel grades for strength, durability and longevity, and are designed to meet or exceed all current environmental codes, standards, and guidelines.

westeel.com 1 888 674 8265

MF20833-0311

generate $300 million in annual tax revenues for governments. The B.C. Ministry of Environment announced that the three-year construction period, which will begin in late spring or early summer 2011 and conclude at the end of 2013, is expected to generate an average of 860 person-years of full-time direct employment. The operational phase of the project is expected to generate more than 36 person-years of employment over the life of the project. AltaGas, a Calgary-based company, recently signed an agreement with BC Hydro to build and develop the Forrest Kerr project. The $700-million project will provide 195 megawatts of power to the Northwest Transmission Line. Work has already begun on the project and a large construction camp has been built to house the workers needed to get the plan underway. Some well-known exploration projects that are also expected to benefit from the new line include: Red Chris (Imperial Metals Corporation), Galore Creek (Teck Resources/Nova Gold Resources Inc.), Kutcho (Capstone Mining Corporation) and Mount Klappan (Fortune Minerals Ltd.). Byng Giraud, vice-president, corporate affairs at Imperial Metals, expects that Imperial’s Red Chris development, a planned 30,000tonne-per-day copper-gold open pit mine, will likely be the first major consumer of power from the line. The company anticipates that it will be able to connect to the Bob Quinn hydro site, 120 kilometres away from a proposed mill. “The new power line will make Red Chris a more attractive investment,” Giraud said. Before BC Hydro can start clearing the right-of-way to begin construction of the line, it needs the permission from federal environmental assessment regulators, who also examined the project. Bruce Barrett, BC Hydro’s vice-president of transmission and distribution major projects, said the project should receive approval in the spring of 2011.

May 2011 | 25

news SNC-Lavalin celebrates 100 years Engineering and construction firm maintains strong presence in mining

In April, Montreal-based engineering and construction giant SNC-Lavalin celebrated its centennial. “This is a tremendous achievement,” declared Pierre Duhaime, the company’s president and CEO, at the SNC-Lavalin International Symposium. “We’re very proud of every one of our employees, both past and present, who have made SNC-Lavalin the amazing company that it is today.” Looking back at the history of the company is like tracing the development of modern Quebec. After opening his one-man engineering consulting office in Montreal in 1911, Arthur Surveyer developed a strong SNC-Lavalin is providing its engineering, procurement, construction management expertise at the Ambatovy nickel project in Madagascar, Africa. reputation for excellence in engineering. In 1937, Surveyer entered into a partnership with SNC-Lavalin, which has continued to recognize 100 examples of employee Emil Nenniger and Georges Chênevgrow and expand internationally over engagement in his or her community ert. A decade later, the name was the last two decades. that reflect the sustainable development changed to Surveyer, Nenniger and The mining and metallurgy sector values of SNC-Lavalin. CIM Chênevert. In the late 1960s, the firm has been an important part of the completed Manic-5, still the largest SNC-Lavalin portfolio, said Feroz MOVING ON UP multiple-arch dam in the world. In Ashraf, executive vice-president of 1967, the company became SNC as it global mining and metallurgy operaRichard Leclerc is Peregrine Metals expanded its services to include projtions. “Our multi-product expertise Ltd.’s new president. A registered covers aluminum, alumina, base metect management and turnkey projects. professional mining engineer, als, precious metals, phosphate, By 1977, SNC had operations in over Leclerc has 29 years of mining potash, and mine reclamation and tail40 countries and continued to grow experience. Most recently, he was ings, to name a few,” explained Ashraf. through the decade. vice-president of operations for “We have carried out successful projLalonde and Valois formed in 1936 Andean Resources Ltd. and ects for all of the major clients in this to focus on highway and institutional immediately prior to that, COO of sector, often in challenging and remote projects. The company was renamed Centenario Copper Corporation. locations.” SNC-Lavalin currently has Lalonde, Valois, Lamarre, Valois and Former president at Peregrine Eric multi-year contracts with AngloAmerAssociates (LVLVA) in 1963 and evenFriedland was appointed CEO and ican, Vale and Freeport-McMoRan, tually became Lavalin in 1972. Lavalin’s will continue in his position as and has recently signed an agreement projects included building Alcan’s chairman. The company’s former with BHP Billiton for its potash, diaSaguenay-Lac-Saint-Jean smelter and COO Rod Davey continues on with mond and speciality minerals sector. the James Bay hydroelectric developthe company as an executive viceAs part of its centennial celebrations, ment project. the company has launched an initiative In 1991, the two largest engineering president. called 100 Acts of WE CARE. It will companies in Canada merged to become 26 | CIM Magazine | Vol. 6, No. 3

Courtesy of SNC-Lavalin

By Heather Ednie

upfront ENGINEERING EXCHANGE by Heather Ednie

Innovation needs no risks

Courtesy of VisMedia

Using tried-and-true technology for a world-class operation

The first metal was produced at Anglo American’s Barro Alto nickel project in March.

ometimes the best results come from doing something creative with the tools you know and trust. An illustration of this can be found at Anglo American’s Barro Alto project in Brazil, where engineering, procurement, construction management (EPCM) contractor SNC-Lavalin Minerconsult (SLM) used a sound project management approach and innovative design to optimize the use of proven technology in a conventional pyrometallurgical facility to process saprolite ore to produce ferronickel. The project was managed by an integrated team in close coordination with Anglo American general project director Euler Piantino and his team of experts. The EPCM phase of the Barro Alto project was begun by SLM personnel in January 2007 and is scheduled to be completed this June. At its peak in late 2008 and early 2009, the company had over 400 employees on the project, providing services from detailed engineering through to completion of the precommissioning stage. The EPCM phase, directed by Rene Navarro, SNC-Lavalin’s project manager, is effectively completed and the plant facilities were turned over to the owner for commissioning, with the first metal produced in March, 2011.

Reliable innovation Throughout the plant, proven technology and equipment were selected, then carefully laid out and arranged 28 | CIM Magazine | Vol. 6, No. 3

to optimize plant performance. The topography of the site allowed the selection of the most advantageous location for the operation. “The way we configured the equipment – the whole layout of the plant – takes advantage of gravity,” says John McCreight, senior project control/risk manager, Barro Alto project, SNC-Lavalin. “The entire operation flows downhill. The crushing station is located at the highest point, and from there, ore moves down to end at the lowest point: the load-out area.” The deposit is located in very aged, fractured rock, enabling it to be mined using a front-end loader. The fragmented ore enters the mill through roll crushers, or sizers, and from there it is conveyed to a homogenized ore lay-down area and blended. The blended ore is conveyed to the drying station to achieve the minimum humidity to make the calcining process more efficient. The rainy season in the region stretches from October through March, so humidity and moisture in the ore is a concern. The ore crushing and drying plant will handle 2.4 million tonnes of ore annually. The dry ore is fed into a rotary kiln, where coal is added, both to raise the temperature and as a reducing agent to form calcine. From the kiln, the ore is fed into an electric induction furnace. “We incorporated two rotary kiln electric furnace lines to maintain a continuous feed,” McCreight says. From the furnace, the slag is tapped off and the ferrous nickel mineral fed to a simple refinery where carbon and impurities are burned off, producing a ferrous nickel liquid that feeds through a tundish. The final product, granulated pellet-like powder, is loaded into large bags for shipment, primarily to producers of stainless steel. Environmental management at the site is relatively straightforward. “The slag tapped off the furnace is granulated and stockpiled on site – it’s relatively inert,” McCreight says. “We have a detailed water management system, designed so that water will only be pumped from the local river during a short period of the rainy season, when there’s an excess of water in the region, to minimize any impact on the local farming industry and the community.”

upfront ENGINEERING EXCHANGE

PROJECT AT A GLANCE

BARRO ALTO OWNER: Anglo American LOCATION: State of GoiĂĄs, Brazil CAPITAL COST (full project): US$1.98 billion PLANNED PRODUCTION RATE: 36,000 tonnes content in ferronickel annually OPERATIONS STARTUP: March 2011 EXPECTED MINE LIFE: 25+ years

â&#x20AC;˘ Nearly 30,000 tonnes structural steel used â&#x20AC;˘ More than 10,000 design documents prepared â&#x20AC;˘ Over 33,000 vendor documents received, reviewed, approved

A fresh water recirculation pond, containing over 1.85 million cubic metres of water (or up to 10 months of normal operation water needs), was constructed downhill from the plant to collect drainage and run-off water and recirculate it back into the cooling and service water systems.

Well-designed controls A proven software platform and industry best practices were the foundation for an overall centralized and fully electronic control system implemented at the Barro Alto project. FLSmidth developed the state-of-the-art burner management system controls and software for use on the dryers and rotary kilns. Initially, the kilns will be powered by gas-fired burners, but are set up to be powered by pulverized coal in the future. All systems and equipment are controlled from a central control room, and managed and operated through the use of a software program incorporated into the overall control system. â&#x20AC;&#x153;The development of the control software required comprehensive coordination with all major equipment suppliers, to ensure that common control languages and control methodologies were employed that would allow equipment system controls to â&#x20AC;&#x2DC;talkâ&#x20AC;&#x2122; to each other,â&#x20AC;? McCreight says. Throughout the design process, the amount of electrical power and instrument and control cables required grew to unmanageable levels, so a cable design rationalization program was introduced to maximize the use of multi-conductor cables. â&#x20AC;&#x153;In some areas, we reduced the quantity of cables by up to 60 per cent,â&#x20AC;? McCreight explains. â&#x20AC;&#x153;It resulted in savings in installation costs and scheduling.â&#x20AC;?

Merger and performance Barro Alto was the first full EPCM project for the SNCLavalin Minerconsult office in Belo Horizonte, Brazil, following SNC-Lavalinâ&#x20AC;&#x2122;s acquisition of Minerconsult in 2007. Local SLM engineering staff were challenged with executing the detailed design scope of work while simultaneously incorporating new practices and procedures as part of the merger. â&#x20AC;&#x153;There were certain cultural differences between the local group, used to acting as consultants, and the global SNC-Lavalin approach as a full engineering contractor,â&#x20AC;? McCreight explains. â&#x20AC;&#x153;It took time to bring the design thinking onto the same page. And it had to be done at the same time as we met our performance obligations on the project.â&#x20AC;? In the end, the merging of practices was successful. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve never met an engineer anywhere around the world who didnâ&#x20AC;&#x2122;t want to do a good job,â&#x20AC;? McCreight says. Currently, Anglo American plans to achieve full production at Barro Alto in 2012, and the ramp-up period is already underway. SLMâ&#x20AC;&#x2122;s job was completed successfully, leaving an efficient pyrometallurgical plant of sound design to supply ferronickel for the next quarter century. CIM

7FSTBUJMJUZ %Fm OFE 5FOTJPO 4USVDUVSFT #VJMU UP -BTU /UR STRUCTURES ARE DESIGNED FOR FULL COMPLIANCE WITH CURRENT 0ROVINCIAL BUILDING CODES INCLUDING CODE DEl NED BALANCED AND UNBALANCED SNOW LOAD 'VMMZ JOTUBMMFE RVJDLFS BOE QSJDFE MPXFS UIBO USBEJUJPOBM DPOTUSVDUJPO *40 $FSUJm FE 5SBOTMVDFOU GBCSJD PĂľ FST NPSF OBUVSBM MJHIUJOH 3FMPDBUFBCMF -JNJUFE GPVOEBUJPO SFRVJSFNFOUT -PDBM SFQSFTFOUBUJPO JO $BOBEB XJUI

XXX VOJWFSTBMDPWFS DB "VUIPSJ[FE $BOBEJBO 3FQSFTFOUBUJWF

5NIVERSAL &ABRIC 3TRUCTURES )NC

XXX VGTJOD DPN NJOJOH .FOUJPO $PEF $*.

May 2011 | 29

upfront TECHNOLOGY by Heather Ednie

Staying connected around the globe IsatPhone Pro provides reliable link in the most remote regions located 800 kilometres above earth, Inmarsat’s satellites ensure greater reliability without climatic interference. The IsatPhone Pro utilizes the Inmarsat-4 satellites, winner of the 2010 Royal Academy of Engineering’s MacRobert Award for innovation. No other satellite phone on the market offers global coverage from geostationary satellites in L-band. “We have L-Band satellite frequency, given to us for our services for emergency communications for boats,” says Simon Curran, Inmarsat’s market development manager responsible for the mining sector. “It is not affected by the elements, so regardless of the climate, there is no interference.” According to Curran, most satellite phone providers use low-earth orbit constellations or operate with geostationary satellites, but lack the global reach of Inmarsat. “As the satellites sit above the equator, the further towards the poles you go, the harder it is to achieve a look angle and thus be able to connect,” Curran explains. “We have tested the phone well into Alaska and it functioned fine.”

Crisis management

Courtesy of Stratos

In less than a year on the market, the IsatPhone Pro has already been widely adopted for use in crisis zones worldwide. The emergency communications aid agency, Télécoms Sans Frontières, has used the IsatPhone Pro, deploying it over the past year in Haiti, Indonesia and Japan. Inmarsat is able to monitor usage and has noted traffic increased significantly over Japan following the triple disaster. “The satellite forces down 193 beams, like a honThe IsatPhone Pro provides remote professionals with reliable, high-quality voice connectivity in eycomb,” Curran says. “We can monitor usage, and the most distant locations. can transfer capacity from lower usage areas to hotspot areas, either automatically or reactively.” nlike most professions, mining and mineral exploOnce a mine is fully operational with infrastructure in ration business is often conducted in secluded place, the IsatPhone Pro can be used as an emergency locations, far from any established communications reserve for the mine’s established communications infrainfrastructure. However, thanks to satellite technol- structure. Should bad weather knock out the mine’s ogy, the world has moved closer as new technologies communications system, the IsatPhone Pro will still work, emerge. Launched in the second half of 2010, Inmarsat’s because the L-band frequency will remain active. “It guaranIsatPhone Pro has made staying in touch from distant tees permanent communications capabilities, augmenting locales easier, more efficient and affordable. the safety of the operation,” Curran says. “As a backup solution, it can be a life saver.” As well, Inmarsat has agreed to become the commercial Supplying the most reliable satellite link operator of another L-band satellite, named Alphasat, Formed in 1979 to meet the emergency communicawhich will provide supplemental L-band coverage across tions needs of maritime fleets, today, Inmarsat has Europe, the Middle East and Africa. It is scheduled to be geostationary orbit satellites located 36,000 kilometres ready for 2012. above the equator. Compared to low-earth orbit satellites,

30 | CIM Magazine | Vol. 6, No. 3

Built for distance and endurance The IsatPhone Pro is built to withstand many climates, including heavy rains and temperatures ranging from minus 20 to plus 55 degrees Celsius. It is dust, splash and shock resistant and humidity tolerant. The IsatPhone Pro offers satellite telephone, voice mail, text and email messaging, and GPS location data. Using a Lithium-ion, 3.7 volt battery, it claims a charge life of up to 65 per cent longer than that of other satellite phones.“The IsatPhone Pro sports the longest battery life, with 100 hours standby and eight hours talk,” Curran says. “With built-in Bluetooth technology, the first for global satellite phones, you can put the handset outside and stay inside to make your call, protected from the elements.” The phone’s interface was designed to resemble today’s cell phones for ease of use. It offers a wide array of features, including a speaker phone option, conferencing and speed dialling. Contacts can be synchronized with Microsoft Outlook 2007. As well, the phone supports eight languages: English, French, Spanish, Portuguese, Japanese, Chinese, Arabic and Russian. A 2.4 kbps voice codec is incorporated to ensure voice quality is clear and users can be easily understood. As of March, Inmarsat’s IsatPhone Pro now offers data service. Using circuit-switched data capability, a data rate of up to 20 kbps is included in a firmware upgrade. End users are able to send anything they normally would from a Smart phone – email, attachments, documents and photos. Cost is a major advantage of the IsatPhone. “We fixed our price point below anything in the market,” Curran says. “We garnered a lot of interest that way. Although there are different payment structures available, in general, the handset costs approximately US$600 and calls average around US$1.00 per minute.” Using the latest components and manufacturing technologies allowed Inmarsat to launch the phone at a competitive price. “This opens up a new market for the product – those who previously considered satellite phones too expensive to justify,” Curran adds. “It is also attractive to existing satellite phone users looking for a network with a longer life expectancy than their current provider.” The satellite constellation is expected to remain in operation until the mid-2020s, making the IsatPhone Pro a smart option for remote operations or as an emergency communications backup that will not have to be replaced due to an imminent constellation failure. Gerbrand Schalkwijk, vice-president of global enterprise sales for Stratos, a leading distributor of remote communications devices and services, explains that the IsatPhone Pro offers a competitive advantage in comparison to other handheld satellite phones. “The services offer high-quality voice connectivity via small, affordable equipment – ideal for remote workers in the oil and gas, mining, government, media and first-responder communities,” he explains. CIM

Heavy Haul Road and Rail Arches MSE Crusher Walls and Retaining Walls Stockpile, Conveyor and Escape Tunnels Portals, Bridges and Drainage Structures

We’re big on mining. Super-Cor® Arch with Vist-A-WallTM Wire Walls

Very big. From the world’s largest haul road arch to towering crusher walls, value-engineered infrastructure solutions from AIL MINING have been supporting the most successful mine sites for over 40 years. By design, our solutions ship and install easily, making them ideal for remote sites. Plus, our in-house engineering teams work with you through the entire project cycle to help you build in success from the ground up. Talk to the mine infrastructure experts at AIL MINING. They’re big on mining.

Call 1-877-245-7473 or visit minesitesolutions.com

May 2011 | 31

upfront S U S TA I N A B I L I T Y by H e a th e r E d n i e

CSR Counsellor review process seeks conciliatory approach Republished with permission of the Office of the Extractive Sector CSR Counsellor

Consultation drives creation of dispute resolution process

The review process

he Canadian Office of the Extractive Sector CSR Counsellor has, after an eight-month period of extensive consultation and best practice research, launched a new dispute resolution process to enable companies and communities to build solutions to CSR-related challenges. In the course of the creating the mechanism, says Marketa Evans, the CSR Counsellor, one of the fundamental questions that various stakeholders and the Office had to address was: Given that the review process is voluntary, how should the Office proceed?

Building the process “I began with a lot of informal outreach to civil society, to industry and to socially conscious investors, and from there, began a formal consultation process,” explains Evans. “At the same time, we benchmarked dispute mechanisms 32 | CIM Magazine | Vol. 6, No. 3

globally. There are a lot of mechanisms out there – we aimed to identify key lessons from those examples, to understand the critiques of the various processes and determine what best to model ourselves on.” The main complaints about other mechanisms included ineffective processes, poor outcomes, perceived bias and weak infrastructures. “We really tried to do our homework, looking at all angles,” Evans adds. “The broad consensus demand was for a process that could deliver results on the ground.” The review process applies to individuals, groups or communities that believe that they have been adversely affected by actions of a Canadian mining, oil or gas company. As well, if a Canadian extractive sector company deems that it is the subject of unfounded accusations with regards to its conduct abroad, it may make a request for review. The process is based on performance standards endorsed by the Government of Canada including: the International Finance Corporation (IFC) Performance Standards; the Voluntary Principles on Security and Human Rights; The Global Reporting Initiative; and the OECD Guidelines for Multinational Enterprises. It is designed to promote dialogue among the stakeholders to find solutions to disputes between parties utilizing a cooperative problem-solving approach. While the Office of the Extractive Sector has no adjudicative reach, it can conduct reviews and provide advice on the endorsed standards. Its goal is to act as an honest broker that brings stakeholders together to address problems and resolve disputes.

How to make a request for review To begin the process, a request for review is submitted to the Office, which then acknowledges the request and advises the responding party. Over the next 40 business days, the Office determines the eligibility of the request based on a number of criteria including: Did the activity take place after October 19, 2009? Was the request for a review made within a reasonable time? Was there an effort to address the issue?

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

How valid is the supporting information (i.e., is it based on more than media reports and unverified information)? If the request is eligible, the review process begins and can take months, starting with a voluntary informal mediation process, leading to both parties signing a letter of intent to carry out structured dialogue. There is the possibility of it leading to the involvement of a third-party independent mediator before a final report is issued by the CSR Counsellor and made public. The process is voluntary and any of the parties involved can withdraw at any time. “This office is just one part of a bigger strategy, it’s not a silver bullet,” Evans says. “We need to move ahead with the other pillars.” The Office of the CSR Counsellor makes up one of the four pillars of the Canadian government’s CSR strategy for the Canadian mining sector. The remaining three pillars are: support for host country resource governance capacity building; promotion of internationally recognized CSR guidelines; and support for the development of a Centre for Excellence in CSR.

Industry and NGOs meet at the table Following initial consultations and research, a draft set of rules and procedures was put together by the CSR Counsellor. Then five consultation workshops were held across Canada; three more were held in Mexico, Senegal and Mali. “Industry had a lot of opportunities to contribute and comment, and they did so,” Evans says. “We asked for comments, through written submissions and webinars. Over 300 individuals and organizations provided input during the formal process. I was very pleased with both the balance and international nature of the participation.” The Mining Association of Canada (MAC) and the Prospectors and Developers Association of Canada (PDAC) led industry participation in the Counsellor’s consultation process. “We all wanted to be at the table while the Counsellor worked out how it will function,” explains Gord Peeling, outgoing president and CEO of MAC. “All parties must have confidence in the process. It’s fair. It represents improvements. Now, the proof will be in the pudding as we see how it deals with actual cases.” As a result of the consultations, the rules and procedures were significantly overhauled. The end result is a unique mechanism that provides the opportunity for constructive conversation, where CSR platforms can be advanced. “This process is unique, because it is grounded in government, but with the ability to look at issues globally,” Evans says. “For example, the IFC ombudsman only applies to companies that are borrowers from the IFC. Here, this process is crosscutting, open to any Canadian company, no matter how it’s funded, its size or where it is operating globally.”

developing countries they interact with. “If it is just a mechanism to convene people in the dispute to talk, there’s no added value, really,” he says. “Even for parties in need of formal mediation, it does not offer this. It is not suited to all conflicts. The challenge is to think of all the conflicts out there – are the minor ones really the ones that need a new office to help?” Tony Andrews, executive director of PDAC, is confident the new process will work. “Facilitated dialogue among parties has proven to be one of the most effective tools for resolving conflict,” Andrews says. “One unique aspect of this mechanism is that companies can request reviews by the Counsellor as well. Companies experiencing reputational harm due to irresponsible communications by NGOs now have recourse.” Both Peeling and Andrews agree it is time to put the process into action. The worst thing that could happen would be a self-defeating boycott, Peeling adds. It would signal a lack of interest in improvement – just a drive simply to find faults. “We feel it is incumbent upon all parties to work with the government plan,” he says. “After three years or so, we can then work together to assess and address any gaps. But for now, we need to let this run. We hope it is a successful process because it would mean we are all going to benefit very much.” CIM

EBA, A Tetra Tech Company, is a consulting engineering and sciences firm offering innovative and practical engineering, environmental and transportation solutions for the mining, energy, transportation and development sectors.

Moving forward Some scepticism remains about the mandate. Ian Thomson, program coordinator for Ecological Justice and Corporate Accountability at KAIROS, says his organization is unclear on how it will benefit communities in

creating & delivering BETTER SOLUTIONS

May 2011 | 33

upfront N E W F R O N T I E R S b y G r e g B a i d e n , Ya s s i a h B i s s i r i a n d S t e f f o n L u o m a

Robots go where men fear to tread A progress report on robotic cavity surveying

Courtesy of Penguin Automated Systems Inc.

This system allowed the robots to manoeuver through deep ditches up to nearly a metre in depth, formed by water erosion. The platform also needed a reliable undercarriage, one with a low centre of gravity to provide robot stability. Also required was a powerful, long-endurance drive system with low power consumption, a combination of low speed and high torque, an ability to run ancillary equipment (such as grinders, arms, laser scanners, telecommunications and networking equipment), and enough weight to counterbalance all this equipment. Due to the long distances that needed to be traversed, a completely wireless system had to be created and installed. The wireless network had to be built The Workbot (left) is fitted with an arm capable of raising, lowering, extending and retracting. The Combot (right) establishes telerobotically to supply 20 wireless telecommunication links with the operation centre. megabits of capacity for audio, data and video information. ere’s the situation. An unstable crown pillar has Both primary and supporting robots are controlled from a forced a mine to temporarily suspend operations, mobile teleoperation centre above ground, housed within a restricting access by personnel to the premises. trailer and outfitted with two teleoperator workstations, a However, it is crucial that measurements be taken satellite uplink and an underground network link. from within the mine stope to ensure that it is not still movEach workstation consists of a main display and mainteing. What do you do? When the risk is unacceptably high, nance data display. The teleoperator interface consists of an you can always bring in the robots to do the job. industrial track ball and a pair of joysticks along with a keyThis was the challenge issued to Penguin Automated Sys- board. The computer bank has three computers, two of tems Inc., contracted to develop a telerobotic system to help which control the robot workstations; the third is used to perform a cavity study beneath a potential failure zone. determine the condition of the underground network. A disTheir solution to the problem was to use a pair of robots play is mounted between the main monitors so both designed to travel into the mine and survey the open stope teleoperators can monitor network health. The primary cavity with a laser scanner. The robots are one metre in robot was designed to perform various tasks, including the width, two metres in length, two metres in height and weigh survey, while the supporting robot was designed to ensure 700 kilograms each. constant communication, with the robot performing tasks.

Design considerations

Combot

One of Penguin’s first considerations was the condition of the mine ramp, which had deteriorated significantly due to the lack of maintenance over the two-year period since the shutdown. Taking this into account, they equipped each robotic platform with a six-wheeled chain drive system that was capable of flexing to ensure three-point ground contact.

The communications robot, or “Combot,” establishes several wireless telecommunication links with the teleoperation centre, building a temporary network. Mounted on the Combot are a long-distance directional transmitter/receiver with up to 26 kilometres of wireless coverage and several other antennas set at different frequencies capable of establishing

34 | CIM Magazine | Vol. 6, No. 3

upfront NEW FRONTIERS

the network in different situations. The long-distance antenna has pitch and yaw directional motors to tune in the radio signal from the teleoperation centre. The Combot also carries a number of portable temporary network extenders, each consisting of a battery-operated transceiver with a pair of antennas mounted in a pylon. Each extender lasts 24 hours and can increase the network capacity by an additional 500 metres.

Workbot

SPECIALIZING IN

ÂŽ

The primary robot is the â&#x20AC;&#x153;Workbot,â&#x20AC;? whose platform can be fitted with any number of actuator systems and tools for performing various tasks. It is fitted with an actuator arm capable of raising, lowering, extending and retracting. The end of this arm can hold hand tools, such as a grinder, required to cut and remove a metal safety fence blocking the way to the open stope. The Workbot must also deploy and retrieve the network extenders, and store them again for transportation. Of primary importance is the laser scanner, which the Workbot must carry, deploy, extend, operate and retrieve. To do this, the Workbot is outfitted with a second arm capable of mounting an eight-metre boom with a laser scanner on the end. This boom supports the scanner as it extends 10 metres into the cavity.

Planned operations in the mine Penguin planned for the operations to cover a two-day period. The first required operation was the Workbotâ&#x20AC;&#x2122;s removal of the metal fencing. Once this was done, the robotic arm fitted with the grinder was replaced with the arm fitted with the laser scanner so that the Workbot could scan the target area. Day one of the operation began with the setting up of the teleoperation trailer at the mine portal and powering up the communications network and the robots. Once the Combot established network links, the two robots entered the mine. The robots travelled together to the maximum network delay threshold, the furthest point that the Combot could go and still maintain network contact. The Combot remained at the communications relay point and the Workbot continued down the ramp. When the Workbot reached the new network delay threshold, it deployed a network extender. With this long-distance communication in place, the Workbot continued to the safety fence and cut it, making the area passable. The Workbot then returned to the Combot and collected the network extender, and then the robots returned to surface. Both the robots and the extender were recharged overnight. On day two, the grinder arm was removed from the Workbot and the laser scanner arm was mounted in its

mining m ining

ffacilities acilities

When mining companies need facilities, s, they come to HCI CI fo for unmatched responsiveness and fa fabbrrication capabilities, as well as our time-tested track record of building long-lastinngg economical ffaacilities. We specialize in design, detailing, fabrication, n and coonnstruccttioonnn. Our expertise covers a wide range of stren e gths: Â&#x2021; 'LYHUVH HQJLQ LQHHULQ LQJ DQG PDQXIDFWXXUULQJ FDSDDEELOLWLHV LGHDO IR IRU DQ\ EXLOGLQJ DSSO SOLFDWWLLRQ Â&#x2021; 8QPDWFFKKHG HG YHUVDWLOLW\ IRU PD[LPL]LQJ ZRUNIORZ Â&#x2021; 'HHVVVLLJQ DFFRPPRRGGDWHV KHDY\ HTXLSPHQW QHHGV Â&#x2021; 3U 3 H H HQJLQHHUHG DSSURDFK SURYLGHV ID IDVWHU FRQVWUXFWLRQ DQG GHOLYHU\ WLPHV and assures competitive pricing Â&#x2021; +&, LV D SDUW RI %OXH6FRSH SH 6WHHO DGGLQJ EURDGHU DQG GHHSHU UHVRXUFHV DQG FDSDELLOOLWLHV Call HCI at 1-800-255-6768 or visit www.hhci cisteel.com to learn m moore.

ÂŠ2011 ÂŠ2011 0011 HCI CII Steel Stteel Building SSte Building d g SSyyste ding ystem stem ms, a div ms, division sionn off BlueScope B ueScope S e Buildings Scope Buildings Bu ings gs North thh Americ Amer merica, erica ica, Inc. I All rights rigghts rreser eser erved. v

May 2011 | 35

place. The robots entered the mines, once again establishing the wireless network with the Combot and the extender. This time, the Workbot returned to the open stope and scanned the area for one hour. Once the data was collected, the robots returned to the surface.

Field work

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

Penguin sent both robots into the mine on an initial run in late August 2010. Unfortunately, the curvature of the ramp was greater than expected, which meant that the network delay threshold was further up the ramp than anticipated. This, in turn, meant that the Combot was not able to travel far enough to allow the Workbot to reach the scanning area. Although the entire operation could not be completed, operations were continued so that the system could be tested. The Workbot continued down the ramp, placed a network extender, and travelled until it reached the communications threshold. The Workbot was stopped at 600 metres, half the distance required, and both robots were returned to the surface, limited by the communications coverage allowed by only one extender. Despite the set-backs, Penguin was pleased with the results. The run achieved three major objectives: to prove the concept of the approach; investigate the condition of the ramp and mine; and prove the reliability of the system. Both robots operated continuously for eight hours, traversing 1.2 kilometres, and successfully used teleoperation with a remotely deployed communication system. The washed-out ramp was also successfully traversed and the system was proven to be reliable for the difficult conditions of this mining operation. It would only take minor engineering changes to allow for the other major objectives: to scan the underground cavity and determine the condition of the cavity roof. Penguin is now working to increase the communications range of their telerobotic system by adding more networking equipment. Because it is untethered, it is a system that opens the door to many new applications in safety inspection, allowing robots to enter and operate in areas unsafe for people. This patent-pending robot system is now on its way to Codelcoâ&#x20AC;&#x2122;s Andina Mine for further testing. Additional navigation and surveying software has been installed to support tunnel and excavation mapping online. Using a specialized position location and navigation system linked to a simultaneous localization and mapping system, the robots will be able to map and survey up to 50 kilometres. CIM Adapted and edited by Correy Baldwin from a paper entitled Robotic Cavity Surveying: A Progress Report.

authorS

JO JOIN IN U US SA AT T THE THE CIM CONFERENCE: CONFERENCE: BOOTH BOOTH NO. 1220

36 | CIM Magazine | Vol. 6, No. 3

Greg Baiden is a professor in mining engineering at Laurentian University and the president of Penguin Automated Systems Inc. Yassiah Bissiri is an associate professor in engineering at Laurentian University and also serves as vice-chair of research at Penguin Automated Systems Inc. Steffon Luoma is an application specialist at Penguin Automated Systems Inc.

Rock solid solutions for your operation, proven at our operations.

MINERAL PROCESSING:

HYDROMET:

Grinding and Flotation

Leaching, Gas Injection and Modular Slurry Tanks

We specialise in transferring our expertise to your site. Xstrata Technology Australia Xstrata Technology Chile Xstrata Technology South Africa Xstrata Technology Canada

| | | |

Ph: +61 7 3833 8500 Ph: +56 2 478 2211 Ph: +27 82 441 7482 Ph: +1 604 699 6400

www.xstratatech.com

upfront PROCESSING by Peter Caulfield

Perfecting the grind IsaMill improves metal recovery at Anglo Platinum mines In addition to new projects, existing operations are looking to maximize the economic returns from their deposits. “The valuable minerals are usually fine-grained but not always distributed uniformly through the rest of the ore,” explains Rasmussen. “New ways of thinking and new technologies, such as the IsaMill, are needed in order to deal with them.”

A very fine grind

Courtesy of Anglo Platinum Limited

The IsaMill is a closed, horizontally configured mill that consists of eight consecutive grinding chambers and a product separator at the end. Slurry enters the feed end of the mill and travels in a plug flow pattern through the IsaMill. Fine ceramic media grinds the coarser material in the slurry. “This breakage mode produces very fine-sized particles as targeted at relatively low power consumptions,” says Rasmussen. At the discharge end of the IsaMill, the fines, slurry and grinding media reach the product separator. As a result of the centrifugal action, the fines discharge out of the centre of the product separator as the final product. The product is then piped to a discharge pump box where it is pumped to the next stage of processing, which is usually flotation or leaching. With the centrifugal action, the grinding media, along with the coarser material, is separated and pumped back into the IsaMill. Rasmussen says the ceramic grinding media contributes to the energy efficiency of the mill. He explains that the ceramic media are more efficient at grinding due to the finer media sizing (two to seven millimetres) and that transfers the energy into the rock instead of absorbing it in the media. “The IsaMill is running at tip speeds of up to 22 metres per second,” Rasmussen says. “Due to the centrifugal forces, the fine slurry is quickly separated from the coarser material as it enters the IsaMill and is discharged without coming into contact with the grinding media. This avoids over-grinding. Grinding energy is directed to the coarse particles and is not wasted on the fines. That is one of the keys to its energy efficiency.” Rasmussen adds that the IsaMill has been shown to be at least 30 per cent more energy efficient than tower mills, which, in turn, are 30 per cent more efficient than ball mills. In addition, the IsaMill performs at a higher power intensity, or energy per volume, than other mills. “The IsaMill’s power intensity is 300 kW/m3, while our competition’s is only 40 kW/m3,” Rasmussen says.

Two 10,000-litre volume IsaMills located at the Mogalakwena Mine in South Africa.

s the difficulty for accessing mineral deposits around the globe continues to grow, so does the need for more efficient and cost-effective processing technologies. In response, Xstrata Technology markets the high-intensity, low-energy usage IsaMill. The milling technology, developed in the 1990s by an Australian mine operator, was initially designed to enable an ultrafine regrind to allow the economic recovery of minerals that in the past were largely lost. The horizontally configured mill combines high performance with low-energy requirements and grinding media costs, according to Xstrata Technology, which owns the commercial rights for the mill and assists in its technical development. The IsaMill can be used for mainstream grinding, and fine and ultra-fine regrinding of concentrates. The mill can be used in all processing applications, including base metals, platinum group metals, iron ore, industrial metals and gold. Greg Rasmussen, mineral processing process manager at Xstrata Technology, says recent developments in the mining industry are helping to stimulate demand for the mill. “As the primary mineral deposits around the world are depleted, new and more difficult deposits must be mined,” he says.“It is more difficult and more expensive to process these ores and to separate the minerals in them. Mine operators are looking for processing technologies that are efficient and cost-effective.”

38 | CIM Magazine | Vol. 6, No. 3

upfront PROCESSING

IsaMill in Africa To date, Xstrata Technology has installed 90 IsaMills around the world. One of its customers is Anglo Platinum Limited, the largest platinum producer in the world. Anglo Platinum operates mines on the Bushveld Complex in South Africa and on the Great Dyke ore body in Zimbabwe. Chris Rule, Anglo Platinum’s head of concentrator technology, says the company has installed 22 IsaMills at nine platinum group metal (PGM) mine sites. He says the company installed the mills in order to improve the liberation of PGMs for downstream recovery by flotation and also to improve the concentrate grade for smelting. “We installed the world’s first 10,000-litre capacity machine in 2003,” Rule says. “We installed another mill in 2006, four more in 2007 and 16 more in 2009. In next five years, we could install another 10 machines.” He says the main benefit has been the improved metal recovery. “In 2010, there was a step-change improvement at sites that have optimized the application of mainstream tertiary inert grinding,” Rule explains. “The ores being milled industrywide are generally lower grade and more difficult to process for high extractions of PGMs. Both time and this technology have allowed this negative trend to be reversed with improved metals recovery. It has added significant metal revenues at high operating margins at each site due to improved PGM recovery.” CIM

Evolution of the IsaMill The origins of the IsaMill date back to the 1970s, when Mount Isa Mines Limited in Australia was searching for methods of increasing mineral liberation by grinding concentrates to fine sizes. The company found that the performance of conventional ball and tower mills was uneconomical for concentrate particles below 25 microns, due to high energy consumption and poor results. In the 1980s, operators at Mount Isa began to look for inspiration from other industries that grind fine particles, such as pigments, pharmaceuticals and chocolate. Although the mills used in those industries are much smaller in capacity than the full-scale ones used in mining, they use fine media moving at high speed to grind particles finely and efficiently. In 1991, Mount Isa successfully tested a bench-scale mill made in Germany by NETZSCHFeinmahltechnik GmbH. It was followed in 1992 by a pilot-scale mill that showed that high-speed horizontal mills could efficiently grind to seven microns at laboratory scale. By 1994, a full-scale, fine-grinding production model was installed in the Mount Isa plant. In 1998, the IsaMill was launched commercially by MIM Process Technologies (acquired by Xstrata in 2003) as a cost-effective means for the metalliferous industry to grind down to and below 10 microns. Following the development and commercialization of the fine-grind IsaMill, Xstrata Technology looked at applying the same technology to coarser mainstream grinding. Working with NETZSCH, it developed a 3MW M10,000 IsaMill. Magotteaux, a global supplier of grinding media, developed a low-cost ceramic media specifically for the IsaMill. Since 2003, the 3MW M10,000 has been the most commonly installed IsaMill.

Powerful Protection Tramp Metal Damage from

Eriez’ powerful magnetic equipment removes tramp metal from deep burdens. In addition to being the World’s Strongest Magnet of its kind Eriez’ Suspended ElectroMagnet models offer: • Unique expansion tank design • Permanent & Electromagnetic models • Self-cleaning and manual cleaning designs • 5-year coil warranty

FREE!

Tramp Metal Removal Systems

Integral Metalarm Metal Detectors

How to Choose & Use Magnetic Separators

Call

888-300-3743 or visit www.eriez.com May 2011 | 39

upfront Q&A by Richard Andrews

Making a profit while making a difference Partnerships and collaboration the key to making Africa work

companies can improve their working relationships on the continent. CIM: How does MAW work? Ondeng: Making Africa Work is a catalytic organization that is positioning itself as a bridge between those who cannot and those who can. Our aim is to develop into a global platform where investors and philanthropists can learn and connect with viable initiatives that are having a real, positive impact on the lives of African people. We are particularly keen on working in really difficult places like South Sudan.

Courtesy of MAW

CIM: Where have you helped turn poverty into productivity? Ondeng: We are still a relatively young organization, and our efforts during this inception period have been focused on the East African region. There are a number of exciting projects with which we are working. One example is a coffee project in Tanzania, where a private Norwegian company is linking small-scale coffee farmers to external markets. This company is not only creating value for coffee consumers in Europe, but they are also making the growers a part of a whole chain that will benefit them in ways previously unavailable. MAW has assisted the project owners to access financing to expand their program to a wider network of farmers.

usiness strategist Pete Ondeng is an author and economic development expert who wants to reduce poverty in Africa and change the negative image of the continent by using global partnerships, modern technology and media. The charismatic 52-year-old Kenyan businessman is also co-founder and president of Making Africa Work, Inc. (MAW), a Vancouver- and Nairobi-based social enterprise established in 2010 to unlock Africaâ&#x20AC;&#x2122;s economic potential. Ondeng is seeking partnership with individuals, non-profit organizations, government agencies and corporations, including Canadian mining companies, to help develop initiatives that will create wealth for Africa and lift the continent from the throes of poverty. During a recent visit to North America, CIM Magazine spoke with Ondeng about Making Africa Work, and about how mining

40 | CIM Magazine | Vol. 6, No. 3

CIM: What partnerships are you planning with Canadian mining companies? Ondeng: MAW is not just working with the mining industry, but we certainly see this industry as key to the partnerships that we are trying to create. We want to develop a network of corporations that subscribe to the ideals of MAW and that recognize the value of strategic collaboration. In South Sudan, for example, we are designing a project that will marshal the CSR efforts of oil companies around a long-term economic development program in one of the most devastated regions of the country. CIM: If I were the CEO of a Canadian mining company, how would you explain to me the value MAW can provide? Ondeng: I want to believe that many of the mining companies mean well and would like to do good for the communities living around where they work, but due to the complex political, social and cultural factors, many of these companies simply lack the wherewithal and orientation to design and implement appropriate interventions. MAW is being positioned to serve those corporations as an intermediary and an honest broker.

CIM: There is an enormous potential for members of the Canadian mining industry to contribute to sustainable development and be a collaborative partner in Africa. How can mining companies interested in creating successful projects work with MAW? Ondeng: Mining companies that are genuine in their desire to see positive change in the local communities need to acknowledge that transformation is a long-term proposition and not a short-term intervention. As I said earlier, the task of identifying the right projects to support and the process of consultation, community engagement and design usually demand skills and experiences that are, in most cases, not resident in multinational corporations. Partnering with an agency like MAW makes sense because it allows the corporation to focus on its core business and outsource the project identification, implementation, monitoring and reporting to an agency that has that as its focus. CIM: For mining companies looking to build partnerships with local communities, what questions do they need to be prepared to answer? Ondeng: I must say that it is not easy for a large international corporation to build a genuine partnership with a poor African community because of the uneven power relationship. There are numerous challenges, including communication barriers, logistical problems and corruption, in some cases. Before embarking on a community project, it is important to ask questions. Why is the situation as it is? Who else is involved or could be involved in addressing the problems? What is government doing â&#x20AC;&#x201C; or not doing? CIM: How can a mining company with a strong commitment to CSR and sustainability demonstrate that commitment and sidestep the charges of tokenism in the early stages of a project? Ondeng: There are a number of corporations out there that are doing really great things, but these success stories are often drowned out by those that still see CSR as a tag-on or an afterthought rather than a part of the overall strategy of the company. We would like to encourage Canadian mining companies to project their global citizenship agenda up front and to appreciate the need to partner with organizations that are better placed than they are to plan and manage the delivery of services that they would want to support. CIM: What do you think is the greatest misconception about doing business in Africa? Ondeng: In my opinion, the greatest misconception about doing business in Africa is that it is a basket case of corruption, poverty, insecurity and disease. People are often surprised, for instance, to find out that Africa offers some of the best returns on investment in the world. The challenge is knowing how to navigate between reality and the perceptions portrayed by the media. CIM

Not having the right propane partner can stop you in your tracks. Only Superior Propane provides you with industry-specific trained technical service teams, 24/7 live service dispatch, and a guaranteed source of propane supply to help you guard against downtime and lost productivity.

1-87SUPERIOR superiorpropane.com

For further information: www.makingafricawork.com May 2011 | 41

:ck^h^dc V ldgaY i]Vi YdZhc¼i _jhi ijgc# >i Å ^Zh#

Whether you build, produce, manufacture, run or generate, one fact is clear: better lubricants and better lubricant suppliers lead to increased productivity. That’s why Imperial Oil is proud to offer Mobil Industrial Lubricants – recognized worldwide by more than 5000 equipment builders. With the combination of Mobil Industrial Lubricants and Imperial Oil expertise, we don’t just elevate productivity – we help unleash it. Visit www.imperialoil.ca for more information.

Imperial Oil is a trademark of Imperial Oil Limited, Imperial Oil, licensee. Mobil and the Pegasus design are trademarks of Exxon Mobil Corporation or one of its subsidiaries, Imperial Oil Licensee.

mines without borders

Towards a common goal Resource development critical to a new era in West Africa By Alexandra Lopez-Pacheco

frica is quickly becoming a hot spot for mining exploration and investment, and Canadian firms are at the forefront. In 2010, West Africa was a leading destination, with 107 TSX and TSX Venture Exchange mining companies operating in the region, as compared to 49 in Southern Africa and 39 in Central Africa, says Avril Cole, a lawyer in the private capital and mining groups of Macleod Dixon LLP’s Toronto office. The number of Canadian companies operating in West Africa is growing by the day. And it is no wonder. Sub-Saharan Africa is rich with untapped mineral resources, the development of which has been thwarted by the continent’s troubled history of colonialism, civil war, poverty, corruption and despotism. In the past, many Western companies looked at the strife and challenges and turned away. But over the last decade, step by step, an overall wave of reforms, stability and hope has been advancing across Sub-Saharan

Africa. There is a long way to go, but increasingly, the opportunities are outweighing the challenges for many mining companies.

A fresh perspective on investment “Africa, in terms of mining, is the last virgin territory,” says Michel Miron, senior policy advisor, Minerals and Metals Sector, Natural Resources Canada. “It’s where most of the discoveries will be made in the world in the next 10 to 15 years.” Bruce Shapiro, president of MineAfrica, a business development and marketing company focused on mining investment in Africa, contends there is tremendous potential for Canadian mining companies and investors. “The opportunities in West Africa are dramatic. They have very good geology, a lot of governments are very friendly towards investors, and they have structured their environment to attract investors,” he says. May 2011 | 43

Courtesy of Freeport-McMoRan

Basic skills training program at Freeport-McMoRan’s Tenke Fungurume operation

mines without borders WEST AFRICA - CUMULATIVE CANADIAN MINING ASSETS 2006

2007

2008

2009

2010

265,086,900

433,442,790

653,300,020

652,043,553

4,326,017,020

1,054,521,483

904,083,852

1,225,353,403

1,103,969,320

1,547,166,761

329,868,787

695,768,092

870,393,876

1,135,673,057

1,413,016,017

Senegal

15,047,878

19,899,393

37,723,060

53,224,418

403,180,387

Guinea

445,517,818

289,914,068

361,716,428

320,234,066

244,003,787

Mali

188,884,777

237,624,669

292,165,551

228,802,272

229,596,581

Niger

76,772,097

82,898,262

123,882,158

107,633,536

119,656,621

Liberia

23,662,592

29,641,445

44,207,745

44,809,011

51,799,654

Ivory Coast

23,411,488

21,705,587

25,429,279

26,158,185

41,121,182

Sierra Leone

40,017,239

22,740,383

30,688,845

16,429,970

10,362,511

Benin

71,854

Guinea-Bissau

Mauritania Ghana Burkina Faso

Source: NRCan, Minerals and Metals Sector * Assets are calculated at acquisition, construction or fabricating costs, and include capitalized exploration and development costs, non-controlling interests, and exclude liquid assets, cumulative depreciation, and write-off. The figures reflect the holdings of companies that are listed on Canadian exchanges domiciled in, and with assets in Canada.

The reality is, Canadian mining companies have been active for some time throughout Africa, with most focused on gold and a few on uranium in Niger, Namibia and South

Africa, base metals in Zambia, the Democratic Republic of Congo, Eritrea, Mauritania and Madagascar, as well as diamonds in Lesotho, Botswana, South Africa, Namibia and Angola, says Miron. In 2002, the federal government changed its methodology for evaluating foreign investment by publicly held Canadian companies to more accurately reflect where the assets were located. As a result, the extent of Canadian mining companies’ stake in Africa became much clearer, revealing $23 billion in investments. That number, says Miron, was far greater than had been estimated in the past and has implications for foreign policy decisions.

Confronting the elephant One of the challenges that has long kept foreign investors wary of investing in West Africa has been its political instability and poor governance. “Across the region there has been a trend towards democratic reform and openness to external investment,” says Cole, citing the modest example of Sierra Leone, which has been steadily climbing up the World Bank’s ease of doing business rankings. Between 2010 and 2011, it climbed by five points to 143rd of 183 countries. Ghana ranked 67th. By comparison, China ranked 79th, Chile 43rd and South Africa 34th. “At a national level, West African countries are instituting mining policies that reflect a paradigm shift in the role of government from owner or operator of mining projects to regulator or administrator,” says Cole. “Increasingly, the private sector – especially international mining companies – is taking the lead in developing the region’s mineral resources. To this end, in Ghana, Liberia, Burkina Faso, Mali and, more recently, Guinea, there has been a trend towards improved legal, fiscal and regulatory frameworks, designed to attract foreign direct investment into the mining sector; 44 | CIM Magazine | Vol. 6, No. 3

effectively managing both the positive and negative Cluff Gold expects to produce 70,000 ounces of gold in 2011 aspects of mining; and ensuring that the mining at its Kalsaka Mine in Burkina Faso. sector contributes meaningfully to sustainable development. Sierra Leone, for example, introduced a more investor-friendly Mines and Minerals Act last year, which is an important step in transforming the mineral sector in that country,” says Cole. Glenn Mullan, the president and CEO of Golden Valley Mines Ltd., which has projects both in Canada and in Sierra Leone, says that “one of the main challenges is the bureaucracy; things take longer than in Canada, but the articles and spirit of the existing legislation are good tools.” In the last few years progress has been made. The government of Sierra Leone, with the support of the World Bank, has improved the business climate, halving the number of steps and time required to register a business and dramatically reducing suspension of a number of mining operations there, and the ongoing civil strife has the potential to destabilize the the cost. As well, Cole points out, there is a trend across Sub- entire region.” With a number of presidential and parliamentary elecSaharan Africa towards the harmonization of mining codes and policies on a regional basis. “One of the prob- tions scheduled for this year in such countries as Niger, lems that has plagued West Africa, in particular, is the Nigeria, Gambia, Liberia, Benin, Cameroon, Chad and Maulack of uniformity in the way business is done, and that ritania, there is a concern about further instability. Mining has presented a hurdle in the way of attracting foreign companies, however, can mitigate the risks through such investment,” she says. “The Economic Community of West measures as political risk insurance, says Patricia Bentolila, African States (ECOWAS), which is a regional organization of 15 countries, is working towards establishing a unified mining code for the sub-region.” In fact, in 2009, ECOWAS issued a directive to do just that. The directive calls for a common mining policy to be implemented concurrently with the unified mining code by the end of 2012. Member states will have until July 1, 2014 to comply with the directive. “When implemented, the directive will result in a more stable and transparent mining legal environment across the sub-region,” Cole adds. Despite all this, political risk remains a significant challenge for mining companies in West Africa – although it varies greatly from country to country. UK-based West African gold mining company Cluff Gold PLC, for example, has operations in Burkina Faso, Sierra Leone and Ivory Coast. “Burkina Faso is a very good environment to work in, from an operational perspective, as well as for its political environment and regulatory regime,” says Carrie Lun, investor relations manager for Cluff Gold. “It’s very established and there is a good source of personnel, so that’s been very successful for us. Over in Sierra Leone, the government has been very supportive, and it is clear from working with them that they are strongly committed to developing the country.” On the other hand, the company recently had to halt its operations in Ivory Coast due to the country’s political crisis. “We had to temporarily stop operations partly because of lack of access to fuel and supplies, but the boiling point was when the banks had to close and we weren’t able to do international transfers into the country,” says Lun. The developments in Ivory Coast, says Cole, “have led to the May 2011 | 45

Courtesy of Cluff Gold

mines without borders

chief representative, Africa, Export Development Canada (EDC), which offers the product to Canadian companies. Mullan suggests that a little more knowledge of the region might also change perceptions. “Canadian investors place more risk in the value proposition than do Europeans – particularly UK investors, given Sierra Leone is a former British colony,” he says.

Aligning aims

Choosing to work with a satellite communication industry leader with 25 years of experience has it’s advantages. Chief amongst these benefits is the confidence you can have in the knowledge that Infosat is an established communications provider and is currently offering high speed reliable data communication and voice calling services to demanding organizations within the mining industry.

SATELLITE VOICE & DATA OFF THE BEATEN PATH Whether your satellite communications project has you seeking the best solution to maintain contact with your head office, provide a safety tool to remote workers, or provide access to everyday communication infrastructure such as email, internet and the telephone — Infosat will work with you to provide you with the satellite communications products and services that best meets your above ground communication needs. Infosat makes choosing a satellite solution for your requirement easy, straight forward and uncomplicated. Infosat has the knowledge and professionals ready to support your satellite communications project. Infosat offers an in-house Engineering and Technical Services Team, highly skilled installation and maintenance technicians, and 24 Hour Customer Support. It’s time to put your trust in an Infosat solution.

Contact Infosat today to find out more. Toll Free 1 888 524 3038 info@infosat.com www.infosat.com/mining

INFOSAT — A QUARTER CENTURY OF QUALITY AND INNOVATION

46 | CIM Magazine | Vol. 6, No. 3

While the minefield of political conflict is difficult to negotiate, there are plenty of opportunities for mining firms to be proactive in reducing their exposure to risk when attempting to establish operations in the region. “The fundamental way to mitigate that risk is to get the social licence to operate by engaging all stakeholders, especially the local communities,” says Shapiro. “If you have the population around you on your side, the odds of having external problems are reduced significantly.” In many instances, the needs of the mining companies and the communities that host them are complementary. Canadian miner IAMGOLD, which operates a new mine in Burkina Faso and has a joint venture in Mali, is addressing the challenge of skills shortages by investing in training. “We’re working to build skills for future employees and for the future of the industrial development in the country, bolstering the technical schools,” says Ross Gallinger, the company’s senior vice-president, health, safety and sustainability. “Typically, what we find in developing countries is a lack of pipe fitters, welders, electricians, heavy-duty mechanics, or just mechanics in general. So we’re looking at our needs, and the country’s needs, to build up the skills for self-sustainability beyond the life of our mines.” In Burkina Faso, Cluff Gold is doing much the same with a mechanic training program. The company hires some of the graduates and the rest join the much-needed skilled labour pool across the country. “With good CSR practices – and by engaging not just the elders in a community, but also the youth – mining companies are investing for the long term, not just of the country but also theirs,” says Radcliffe Dockery, president and CEO, HigherEye Training & Consulting. “If a 16-year-old today sees that the mining company has been a part of his life and it has helped make a positive difference, when that youth turns 30 years old and is elected into government, and there’s talk about nationalization, he will remember what that mining company did and reject nationalization.” Over in the Democratic Republic of Congo (DRC), one of the most challenging countries on the continent in which to operate, U.S.-based Freeport-McMoRan Copper & Gold Inc. has put considerable effort into its community engagement at its Tenke Fungurume mining operation that went into production in 2009. “We believe that our investment in the region will help to provide stability,” says William Cobb, vicepresident, environmental services & sustainable development for Freeport-McMoRan. “We are committed to operating this project in a way that benefits the local community and the nation as a whole, promotes good

FLSmidth Cyclones and Mills at Goldcorp’s Peñasquito mine, Mexico. Photo courtesy of Goldcorp.

One Source

many solutions

FLSmidth is your One Source for crushing, grinding, classifying, thickening, clarifying, filtering, slurry handling, flotation, mineshaft systems, pyroprocessing, material handling, automation, engineering, metallurgical testing, and modernization services. FLSmidth offers you a complete line of equipment and services with proven reliability and enhanced performance from the leading brand names of Krebs, WEMCO, EIMCO, Dorr-Oliverr, Pneumapress, Raptor, Möllerr,, V Vecor ecorr, ABON ABON, N, RAHCO, CEntryy,, Excel, FullerTraylorr, Conveyor Co Engineering, KOCH-MVT VT T,, Summit V Valley alley Engineering and Dawson Metallurgical Laboratories. Enjoy increased recoveries while saving time and money on your next project!

For more information, visit us at: www www.flsmidth.com .flsmidth.com

The industrial backbone The lack of infrastructure to various degrees throughout the region – and lack of government resources to build and maintain it – remains a major challenge. “In the region, there are lots of little things we take for granted in Canada that must first be addressed before embarking on advanced work,” says Mullan of Golden Valley. “The bridges need to be repaired, a village has no water, there is no electricity.” However, across the region there is a sense of urgency to develop transportation and power facilities. “There are plans for lots of new infrastructure in Liberia and Guinea,” says Paulo De Sa, manager, oil, gas and mining unit, The World Bank. “Liberia has just commissioned a reconditioning of a railroad. There’s now construction in Sierra Leone. All of this is in relation to big iron ore developments.” For all challenges and investments, most Western companies in Africa are very aware that they have the opportunity to build far more than profits and business success. “I am a great believer that mining is the single industry that has the opportunity to bring Africa forward,” says Shapiro, “provided it is done responsibly and well.” CIM 48 | CIM Magazine | Vol. 6, No. 3

Courtesy of IAMGOLD

governance, respects local culture and human rights, minimizes disruption to the existing ecosystem and supports the evolution of the country towards sound mineral development. Our investment in infrastructure, human resources and community development programs is an essential part of our business. We aim to work in partnership with the local community, government and non-governmental organizations to ensure long-term community capacity building. The concept of integrated support aligned with community needs is the basis for our community investment decisions. Our social development programs in the DRC have focused on increasing access to schools and health facilities, as well as working with local partners, to strengthen their capacity to provide services to the community. We also support economic development initiatives, such as micro-credit and agricultural improvement programs to support economic development in addition to our mining operations,” Cobb explains. Cole says that, typically, Western public mining companies operating in West Africa are voluntarily compliant with an array of global and domestic corporate social responsibility “best practice” initiatives, including PDAC’s E3 Plus initiative, the UN Global Compact, World Bank Group Guidelines and the Equator Principles. In the near future, it is likely that many will be looking to the recently released United Nations Guiding Principles for Business and Human Rights (the John Ruggie Principles) as well, which will raise the bar globally by providing the first authoritative global standard for preventing and addressing the risk of adverse human rights impacts linked to business activity.

Meaningful engagement with stakeholders, such as with these villagers affected by the construction of IAMGOLD's Essakane Mine, is one of the guiding principles for business and human rights.

A new standard for corporate responsibility The UN Guiding Principles for Business and Human Rights, published in March, are intended to help both governments and enterprises avoid human rights abuses connected to business activity. They lay out a framework based on: the duty of the state to protect human rights; the responsibility of corporations to respect human rights; and the need for victims of business-related abuses to have greater access to remedy. The following are adapted from the document that the UN Human Rights Council will consider for endorsement in June.

Corporate responsibility According to the Guiding Principles, enterprises should: • avoid causing or contributing to adverse human rights impacts through their own activities and address such activities when they occur; and • seek to prevent or mitigate adverse human rights impacts that are directly linked to their operations, products or services by their business relationships, even if they have not contributed to those impacts.

Corporate policy Enterprises should create a robust human rights program that is approved by senior management and publicly available, that outlines expectations for personnel and partners and that is embedded in operational practice. Human rights due diligence is essential to such a program and would include a process to assess actual and potential human rights impacts and would evolve with the operation. Outside involvement from both external experts and relevant stakeholders is a critical component of due diligence. A response to adverse human rights impacts should be integrated into operations; the effectiveness of that response should be monitored and draw on appropriate outside expertise; and the results should be communicated both inside the company and externally. If remediation is required, enterprises should cooperate. For the complete document, visit ohchr.org, and enter “business and human rights” in the search field.

mines sans frontières

Oeuvrant vers un objectif commun Le développement des ressources est un élément crucial à l’avènement d’une nouvelle ère en Afrique de l’Ouest

’Afrique est rapidement en train de devenir un point névralgique en matière d’exploitation de mines et d’investissements miniers. D’ailleurs, les entreprises canadiennes sont à la tête de ce mouvement. En 2010, l’Afrique de l’Ouest a été une destination de choix alors que nombre d’entreprises minières inscrites aux 107 TSX et TSX Venture Exchange étaient actives dans la région. Selon Me Avril Cole, avocate adjointe dont la pratique est axée sur le capital privé et les groupes miniers au sein du cabinet torontois Macleod Dixon LLP, 49 autres entreprises exercent leurs activités dans le sud de l’Afrique et 39 autres encore en Afrique centrale. En fait, le nombre d’entreprises minières canadiennes actives en Afrique de l’Ouest ne cesse d’augmenter quotidiennement.

Les investissements vus d’un autre oeil « Pour ce qui est de l’exploitation minière, l’Afrique représente le dernier territoire vierge », explique Michel 50 | CIM Magazine | Vol. 6, No. 3

Miron, conseiller principal dans le secteur des minéraux et des métaux pour Ressources naturelles Canada. « C’est sur ce continent que nous ferons le plus de découvertes au cours des 10 à 15 ans à venir. » M. Bruce Shapiro, président de MineAfrica, une entreprise vouée à l’expansion des affaires et au marketing et axée sur les investissements miniers en Afrique, soutient qu’il y a un énorme potentiel pour les entreprises minières canadiennes et les investisseurs canadiens. « L’Afrique de l’Ouest regorge d’opportunités. Sa géologie est excellente et plusieurs gouvernements sont très chaleureux envers les investisseurs. À cet effet, ils ont réorganisé leur structure afin d’attirer les investisseurs », explique-t-il. « En fait, il y a quelque temps déjà que les entreprises minières canadiennes sont présentes de part et d’autre de l’Afrique. La majorité d’entre elles se concentraient sur l’or, et quelques-unes sur l’uranium au Niger, en Namibie, en Afrique du Sud, mais aussi sur les métaux de base en Zambie, en République démocratique du Congo, en

Courtoisie de Cluff Gold

Une équipe extrait des échantillons de la concession de Baomahun qui appartient à Cluff Gold.

mines sans frontières Érythrée, en Mauritanie et à Madagascar, ainsi que sur les diamants au Lesotho, au Botswana, en Afrique du Sud, en Namibie et en Angola », énonce M. Miron. En 2002, le gouvernement fédéral a changé ses méthodes d’évaluation des investissements à l’étranger effectués par des entreprises ouvertes canadiennes afin de rendre compte plus précisément de l’emplacement des actifs. Par conséquent, les enjeux reliés aux investissements effectués par des sociétés minières canadiennes se sont précisés avec la constatation que 23 milliards de dollars effectivement ont été investis. « Ce chiffre, explique M. Miron, est beaucoup plus élevé de ce qui avait été prévu à l’origine et influence donc les décisions reliées aux politiques étrangères. »

Prendre le taureau par les cornes Un des nombreux défis qui sème beaucoup de doutes chez les investisseurs étrangers est l’instabilité politique et la gouvernance déficiente. « L’Afrique de l’Ouest tend à se démocratiser de plus en plus et accueillir les investissements de l’extérieur », explique Me Cole. « Les pays commencent à instaurer à l’échelle nationale des politiques sur l’exploitation des ressources minières, ce qui démontre que le rôle du gouvernement a changé, passant de celui de propriétaire ou d’exploitant de projets d’exploitation minière à un de réglementation et d’administration. » Néanmoins, les enjeux politiques représentent un immense défi en Afrique de l’Ouest. Toutefois, la situation varie énormément d’un pays à l’autre. Par exemple, Cluff Gold, une entreprise d’exploitation minière aurifère britannique présente en Afrique de l’Ouest exploite des sites au Burkina Faso, en Sierra Leone et en Côte d’Ivoire. « Le Burkina Faso offre un très bon environnement de travail du point de vue opérationnel, ainsi qu’en raison de son régime politique et sa structure réglementaire », soutient Carrie Lun, directrice des relations avec les investisseurs chez Cluff Gold. « En Sierra Leone, le gouvernement nous a apporté un grand soutien et notre collaboration démontre de façon évidente leur engagement à développer le pays. » En revanche, l’entreprise a récemment dû interrompre ses activités en Côte d’Ivoire en raison de la crise politique qui prend rapidement les aspects d’une guerre civile. Cette année, plusieurs élections présidentielles et parlementaires sont prévues dans cette région, et l’on redoute une éventuelle instabilité. Toutefois, les entreprises minières peuvent mitiger les risques en souscrivant une assurance de risques politiques, explique Patricia Bentolila, représentante principale en Afrique pour Exportation et développement Canada (EDC), qui offre ce type de police aux entreprises canadiennes.

Harmoniser les objectifs Bien s’il est difficile de naviguer en évitant les écueils que constituent les conflits politiques, les entreprises minières ont plusieurs moyens à leur disposition pour

réduire leur exposition aux risques lorsqu’elles tentent d’exploiter des sites dans la région. Très souvent, les besoins des entreprises minières et des communautés qui les accueillent se rejoignent. IAMGOLD, une entreprise minière canadienne qui exploite une nouvelle mine au Burkina Faso et qui compte une coentreprise au Mali, essaie de pallier la pénurie d’employés compétents en investissant dans la formation. « Nous cherchons à développer les compétences de futurs employés et à contribuer à l’expansion industrielle du pays en épaulant les écoles techniques », a déclaré Ross Gallinger, vice-président principal de la santé, de la sécurité et du développement durable pour l’entreprise. Cluff Gold entreprend des démarches similaires au Burkina Faso par l’instauration d’un programme de formation en mécanique. L’entreprise embauche certains des diplômés tandis que les autres se joignent à la maind’œuvre qualifiée en forte demande dans le reste du pays. « En épousant de bonnes pratiques en matière de RSE, les entreprises minières investissent à long terme, ce qui est avantageux non seulement pour le pays où elles se trouvent, mais aussi pour elles-mêmes », explique Radcliffe Dockery, président et chef de la direction de la société HigherEye Training & Consulting. « Si un jeune de 16 ans prend note aujourd’hui de l’entreprise minière qui fait partie de sa vie et des bienfaits résultant de sa présence, lorsqu’il sera élu au gouvernement à 30 ans et qu’il y aura un débat à propos de la nationalisation des ressources, il se souviendra de ce que l’entreprise minière a fait et s’opposera à la nationalisation. »

La structure de base de l’industrie Le manque d’infrastructures à différents niveaux dans l’ensemble de la région et le manque de ressources du gouvernement pour en installer et les maintenir demeurent un obstacle important. Toutefois, on ressent un besoin urgent dans l’ensemble de la région de bâtir des infrastructures de transport et des installations électriques. « Le Libéria et la Guinée ont plusieurs plans pour de nouvelles infrastructures », a annoncé Paulo De Da, directeur du secteur du pétrole, des gaz et des mines de la Banque mondiale. « Le Libéria vient tout juste d’autoriser la remise en état d’un chemin de fer ». En ce moment, la Sierra Leone entame aussi des projets de construction. Tous ces projets sont reliés aux nombreux projets d’exploitation de minerais de fer. Malgré tous les obstacles et les investissements, la plupart des entreprises occidentales présentes en Afrique sont conscientes qu’elles peuvent réaliser bien plus que des profits et des succès commerciaux. « Je crois fermement que l’exploitation minière est l’industrie la plus susceptible de faire progresser l’Afrique, soutient M. Shapiro, tant qu’elle le fait de manière responsable et convenable. » ICM May 2011 | 51

featured project

Courtesy of IAMGOLD

Essakane is the first gold mine brought into production by IAMGOLD.

Today’s record becomes tomorrow’s standard by | Dan Zlotnikov

With the price of gold surging, it is a good time to be a gold miner and a great time to be a gold miner starting up a major new mine. Last summer, IAMGOLD put another feather in its cap, commissioning the Essakane Mine in Burkina Faso, and boosting the company towards its target of one million ounces of annual production.

The Essakane Mine, about 320 kilometres northeast of the country’s capital of Ouagadougou, entered commercial production last year on July 16, and its importance for IAMGOLD cannot be overstated. Despite being in operation for less than half a year, in 2010 the mine produced 122,000 ounces of gold. The forecast for this year is 370,000 to 390,000 ounces, making Essakane, which the company acquired from Orezone Resources Inc. in 2008, a major part of IAMGOLD’s mine portfolio. 52 | CIM Magazine | Vol. 6, No. 3

By contrast, the Rosebel Mine in Suriname, the company’s current flagship mine, produced 395,000 ounces last year and is expected to produce between 360,000 and 380,000 in 2011. The company owns 90 per cent of Essakane and 95 per cent of Rosebel, with the national governments in Burkina Faso and Suriname, respectively, owning the remainder. All production figures above are the portion attributable to IAMGOLD.

featured project A head start The timing of the mine entering switch to hard rock processing. production – two months ahead of “We’re doing some expansion studies right now, working on feasibility schedule – was made possible by starting production before the crusher to expand the operation at came online, says Brian Chandler, Essakane,” he says. Part of the limitation of the current plant will be IAMGOLD’s senior vice-president for the crusher capacity, since the African operations. “We were feeding harder material will require addithe feeders with a backhoe and trying tional crushing time. The other to sort out the rocks as we did that,” major constraint is water. The Sahel he explains. “The process became region of Burkina Faso gets very litmuch smoother when the crusher tle rainfall and the nearby river is went into service in late September, completely dry for most of the year. but going ahead without the crusher — G. Stothart This means the company must manin the process allowed the mine to age its water use very carefully. begin producing gold with a few “The original design says that we months’ head start.” would only process 5.4 million The early startup owes quite a bit to the softer laterite material making up parts of the Essakane tonnes of hard rock a year, so the expansion is all about what deposit. This material enabled the mine operators to tem- can we do to make sure that once we’re up to around 10 milporarily avoid having to use the crusher, and it also requires lion that we stay there,” says Chandler. The feasibility study less crushing time in general, which allowed for another major of the possible expansion is scheduled to be completed later this year. improvement in the mine’s productivity. Originally, the open pit operation was designed to process 7.5 million tonnes of ore, says IAMGOLD’s COO Gord Stothart, with crusher throughput being the major limiting engineering and environmental solutions factor in the plant. But when processing the softer rock, that throughput improved significantly, moving the bottleneck to the plant’s tailings system, where the company found it could make improvements. “We modified the tailing pumps to allow us to get a little more through there,” says Chandler. “That’s probably the biggest single adjustment.” By initially focusing on the soft rock, Essakane was able to go from the original volume projections to as much as nine million tonnes of annual throughput. However, these benefits Hydrogeology & Environmental & Rock Hydrology Social Studies come with an expiry date. “The soft rock, we know from our Mechanics current reserves, only lasts until about 2013 at which time we get into hard rock, and the nominal design on hard rock is 5.4 million tonnes,” explains Stothart.

“We think that there’s a real opportunity to extend and expand Essakane.”

for the mining industry

Expansion studies underway Needless to say, IAMGOLD is highly motivated to find more gold-bearing soft rock on its lease territory. Stothart says that in 2010, the company completed a drill delineation program of more than 40,000 metres at Essakane for $13.4 million, and is expecting to make similar efforts this year. “It’s almost 1,300 square kilometres of land that we have there, and it’s very good prospective land that we have in our exploration concessions,” he adds. “So we think that there’s a real opportunity to extend and expand Essakane.” According to Chandler, the company is planning ahead in another way, anticipating a time when the mine must

For a full list of services visit www.knightpiesold.com

Knight Piésold CONSULTING

May 2011 | 53

featured project 1

54 | CIM Magazine | Vol. 6, No. 3

featured project The social challenge The mine’s entering commercial operation highlights another success for IAMGOLD. Approximately 13,000 local residents from eight villages lying within the territory of the future mine were relocated. The first thing you do when it comes to resettling, says Ross Gallinger, IAMGOLD’s senior vice-president for health, safety and sustainability, is avoid it if at all possible. The process, even when all goes smoothly, is long and complex. In Essakane’s case, says Gallinger, the relocation required roughly a year and a half. Gallinger explains that the first step in the process is to conduct a social impact assessment and extensive consultation, which involves heavy use of experts. Toronto-based rePlan, a company specializing in social impact and risk assessments, conducted the consultations, to not put undue pressure on the communities to accept the company’s offer. “There’s also an independent moderator so that there’s some independence to this, and the communities can feel that Opposite page 1. The processing plant is powered by a 27.5 megawatt power plant; 2. Residents pump water at Douman village; 3. The mine is located in the northeast corner of Burkina Faso; 4. The vast majority of the mine personnel are Burkinabe.

they’ve actually been part of that process,” adds Gallinger. Among other things, the local communities were involved in choosing the sites of the future villages, and the company built a model house after the local style, to show what the new dwellings would look like. “There is basically a negotiation of the package of what you’re going to get with the relocation,” Gallinger explains. “In addition to housing and land provided, there’s also the cost to move as well as a financial incentive to relocate.” IAMGOLD also funded access to legal counsel for the local communities, he adds, so that the lawyers could examine the offer “to ask ‘hey, is this a good a deal, or not a good deal?’” The communities and individual residents then had the option to not sign and not be relocated, Gallinger admits, which means there was an extended period of increased uncertainty for the entire project. Gallinger emphasizes that this is another reason to avoid relocating people if at all possible, but adds that most of the local residents saw the mine as an opportunity for the long term. “The best thing is to be able to demonstrate what livelihood improvements and what opportunities you’re going to get going forward,” he says.

FOR 31 YEARS WE HAVE SERVED THE MINING AND CIVIL INDUSTRY TO EXTRACT VALUE FROM YOUR RESOURCES IN A SAFE AND ENVIRONMENTALLY RESPONSIBLE MANNER.

DMC MINING SERVICES IS YOUR RESOURCE FOR…

Engineering design and feasibility studies Property development through equity investment, partnerships or joint ventures Contract mining Shaft sinking Raise boring and raise excavation Mine construction and infrastructure Mine development and rehabilitation Head frames and hoisting plants Ground freezing and grouting programs

John Marrington 9555 Yonge Street, Suite 200, Richmond Hill, Ontario, Canada L4C 9M5 Direct: 416-903-2084; Email: jmarrington@dmcmining.com

www.dmcmining.com

Dan Saint Don 2200 South 4000 West, Salt Lake City, Utah, USA 84120 Direct: 801-232-4733; Email: dsaintdon@dmcmining.com

Visit us at Booth #1710, CIM Conference & Exhibition Montreal, May 22-25, 2011

May 2011 | 55

featured project Courtesy of IAMGOLD

More than mining With the relocation complete, IAMGOLD’s relationship with the locals has by no means come to an end. The company is involved in a number of livelihood improvement initiatives with the community. “This past season,” says Stothart, “they put a four-hectare market garden in place near the new village of Essakane, and over 200 families had market garden plots there. So they’re not only growing food for themselves, but they’re also selling it in the regional food markets and to the mine, where we’re using it in our kitchen.” The second example is a rice-growing initiative. “They’ve got about 11 hectares of rice along the new reservoir we just created, which is not a common crop in that part of the world, but a relatively high-value, high-yield crop that, together with the local communities, we’re doing some experimentation with,” says Stothart. “The goal, is to create a local economy that is not dependent on the mine itself.” This is not to say that the locals are not integral to the operation of the mine. The vast majority of the mine staff are Burkinabe, says Chandler, adding that IAMGOLD has an active training program in place, which enabled the locals to hone the skills needed to work in a large-scale mining operation. “The Burkinabe do all the mill operating, so they run the grinding circuit, take all the samples, make adjustments to the mill flow” he adds. “For the plant, it’s mainly local fellows who are running the place, which is really encouraging.” The mine’s benefits also go beyond the immediate vicinity: Essakane is the largest private foreign investment in the history of Burkina Faso, says Stothart. In addition, the national government stands to benefit not just through royalties and job creation, but also more directly, as a 10 per cent owner in the project. “Today’s record becomes tomorrow’s standard,” Chandler says, looking back at the challenges overcome during the mine’s startup and its exceptional performance over the last few months. The sentiment can be extended to IAMGOLD’s dealings with the local residents, as the company continues to strive towards its “Zero Harm” goal. Essakane’s ongoing success sends a clear signal that community engagement and consultation are not burdens for a mining company, but the cornerstones of a successful and locally supported operation. CIM 56 | CIM Magazine | Vol. 6, No. 3

EFFICIENCY OUR EQUIPMENT FLEET: CUSTOMIZED FOR YOUR NEXT PROJECT

60 years of experience has shown us that owning the world’s largest mining shovels and highest capacity haul trucks matters - it gives us the ability to tackle the big jobs more efficiently. Our clients save money every day because we move more earth, more quickly. We’re proud to own the largest and most diverse equipment fleet in Western Canada. We are NACG. We Build. Visit us at the CIM Conference & Exhibition in Montreal – Booth 0916

La mine est située au nord-est du Burkina Faso.

Les records d’aujourd’hui sont les normes de demain

La mine d’Essakane, à quelque 320 km au nord-est d’Ouagadougou, la capitale du pays, a entamé sa production commerciale le 16 juillet de l’année dernière, et on ne peut négliger son importance pour la société IAMGOLD. En activité depuis moins de six mois, cette mine a produit 122 000 onces d’or en 2010. Elle prévoit produire entre 370 000 et 390 000 onces cette année, ce qui fera d’Essakane, mine acquise en 2008 d’Orezone Resources Inc., une partie importante du portefeuille minier d’IAMGOLD. Cette société est propriétaire de 90 % d’Essakane et le gouvernement national du Burkina Faso en possède la différence. Toutes les données de production susmentionnées sont celles attribuables à la part d’IAMGOLD.

Une longueur d’avance « Il a été possible d’entamer les opérations minières avec deux mois d’avance, en commençant à produire avant de mettre le concasseur en service », mentionne Brian Chandler, 58 | CIM Magazine | Vol. 6, No. 3

vice-président directeur des opérations africaines d’IAMGOLD. « Nous avons alimenté les distributeurs à l’aide d’une pelle rétrocaveuse tout en triant les roches à mesure que nous travaillions. En entamant le processus sans le concasseur, la mine a pu commencer sa production d’or avec quelques mois d’avance. » Une telle avance résulte en partie du dépôt Essakane constitué notamment de latérite souple. Cette matière a permis à la mine de mettre le concasseur de côté quelque temps. Il s’avère aussi que la latérite ne nécessite pas autant de concassage en général, ce qui a contribué à améliorer d’autant plus la production minière. « À l’origine, la mine à ciel ouvert était censée produire 7,5 millions de tonnes de minerais avec un concasseur », explique Gord Stothart, directeur de l’exploitation d’IAMGOLD, mais le débit de traitement du concasseur représentait un important facteur limitatif de l’usine.

Courtoisie d’IAMGOLD

projet en vedette

projet en vedette Toutefois, lors du traitement de roches plus tendres, le débit de traitement a augmenté de façon considérable, et déplacé la congestion au parc de résidus, où la société considérait que des améliorations étaient possibles. « Nous avons donc modifié les pompes des parcs de résidus pour nous aider à mieux produire, dit Chandler, c’est probablement du plus important changement que nous avons apporté. » En se concentrant d’abord sur les roches tendres, Essakane a pu accroître le volume initial prévu à une capacité annuelle de neuf millions de tonnes. Cependant, ces avantages ne sont que temporaires. « Nous savons que, selon nos réserves actuelles, la roche tendre ne durera que jusqu’en 2013. À ce moment, nous aurons de la roche dure dont la production nominale n’est que de 5,4 millions de tonnes », explique M. Stothart.

Étude d’expansion en cours Cela va sans dire qu’IAMGOLD désire ardemment trouver d’autres roches aurifères tendres sur son territoire à bail. « Nous avons un territoire de près de 1 300 km2, avance M. Stothart, et les terres de nos concessions d’exploration présentent un grand potentiel. Nous croyons donc qu’il y a de très bonnes occasions de développer et d’agrandir Essakane. » M. Chandler explique que la société anticipe le moment où la mine devra changer ses méthodes pour exploiter les roches dures. « Nous menons à l’heure actuelle des études d’expansion, afin de déterminer la faisabilité d’étendre nos opérations d’Essakane », annonce-t-il. L’exploitation sera limitée en partie à cause de la capacité de concassage, considérant que les matières plus dures prennent plus de temps à être concassées. La quantité d’eau est une autre contrainte majeure : il pleut très peu dans la région du Sahel, au Burkina Faso. L’entreprise devra donc gérer sa consommation d’eau avec parcimonie. « Le plan initial était que nous ne traiterions que 5,4 millions de tonnes de roches dures annuellement. Nous devons donc planifier l’expansion en fonction de nos moyens, afin de nous assurer qu’une fois la production de 10 millions de tonnes atteinte, nous serons en mesure de maintenir ce niveau », de dire M. Chandler.

Enjeux sociaux La construction minière met en valeur une autre réussite d’IAMGOLD : la réinstallation et le déménagement de près de 13 000 habitants de huit villages différents à l’intérieur de la périphérie de la future mine. M. Gallinger explique que la première étape du processus est d’évaluer l’impact social et de réaliser des consultations exhaustives, et donc de faire appel en grande partie à des experts. En ce qui concerne IAMGOLD, l’entreprise rePlan, située à Toronto et spécialisée dans l’évaluation des risques et impacts sociaux, a procédé à des consultations communautaires en vue d’éviter

toute pression indue sur les communautés pour accepter l’offre d’IAMGOLD. « Il y a aussi un modérateur indépendant qui a assuré une certaine objectivité; ainsi, les communautés ont eu le sentiment d’avoir participé au processus », ajoute M. Gallinger. Entre autres, les communautés ont pu choisir l’emplacement de leurs futurs villages. La société a aussi construit une maison témoin à partir d’un modèle local pour illustrer à quoi ressembleraient les nouvelles habitations. « Il y a donc eu négociation des éléments inclus dans le déplacement. Non seulement offrons-nous le logement et le terrain, nous payons aussi les frais de déménagement et assumons les incitations financières liées au relogement », précise M. Gallinger. IAMGOLD a aussi donné accès à des conseillers juridiques aux communautés locales, ajoute-t-il, pour qu’elles puissent soumettre l’offre à des avocats et s’assurer de faire « une bonne affaire ». « La meilleure démarche, dit M. Gallinger, est d’être en mesure d’illustrer les améliorations des conditions de vie et les occasions suscitées par un tel processus. » « Le processus de réinstallation a pris près d’un an et demi », ajoute-t-il.

Pas que des mines Maintenant que la réinstallation est terminée, IAMGOLD demeure en relation avec les résidents locaux. La société participe à de nombreux projets de développement et d’amélioration des conditions de vie avec la communauté. « L’objectif, explique M. Stohart, est de créer une économie locale qui ne repose pas sur la mine. » Les résidents locaux sont bien sûrs intégrés au processus d’exploitation minière. « La très grande majorité du personnel minier est Burkinabaise, dit M. Chandler, qui ajoute qu’IAMGOLD offre un programme de formation dynamique sur place qui permet aux habitants locaux de perfectionner les compétences nécessaires pour travailler au sein d’une exploitation minière d’envergure. Les Burkinabais s’occupent de toutes les opérations du concentrateur, donc veillent au circuit de broyage, du prélèvement des échantillons et des ajustements au débit du broyage. Ce sont principalement des habitants locaux qui sont à la tête de l’exploitation, ce qui est très encourageant », rajoute M. Chandler. « Les records d’aujourd’hui sont les normes de demain », explique M. Chandler, en songeant aux défis surmontés lors de la mise sur pied de la mine et de son rendement exceptionnel au cours des derniers mois. Le succès continu d’Essakane démontre clairement que les engagements et la consultation communautaires ne constituent pas un fardeau pour une société minière, mais plutôt la pierre angulaire d’une exploitation réussie et soutenue par la population locale. ICM May 2011 | 59

commodity focus silver

LUSTRE RESTORED by Eavan MOORE

A complex ore Silver usually appears with some combination of gold, copper, lead and zinc. In fact, only 30 per cent of silver produced globally comes from primary silver mines. The remaining 70 per cent is mined as a by-product. This means that levels of silver production are somewhat dependent on the market value of gold or base metal, and are relatively unaffected by silver prices. This makes low cost a priority for primary silver miners, says Geoff Burns, president and CEO of Pan American Silver Mines. “Whether demand is strong or soft, there’s a certain level of silver that’s going to keep coming to market, just because there are other metal mines, where silver is a by-product, that are going to keep producing, regardless of the silver price.” In light of its higher prices, by-product silver previously thought unrecoverable has attracted new interest. Guy Deschênes, research scientist at CANMET, reports more interest from gold companies in silver extraction methods in the last three years. He observes that Barrick Gold’s ongoing “Unlock the Value” competition, initiated in 2007 to increase recovery of silica-enclosed silver, has been followed by a similar call from Newmont Mining this year.

Courtesy of Pan American Silver Corp.

A Latin focus

The flotation circuit at Pan American Silver Corp.’s Huarón operation in Peru

he brilliant and beautiful shine of silver gives it a starring role in jewelry and tableware. But it is useful for more than just baubles and holiday dinners. This precious metal is also the best conductor of electricity and heat of all the metals; it is also among the most reflective. It is ductile, malleable and antimicrobial, making it uniquely suited to a range of industrial applications. Silver also has long functioned as a store of wealth, an investment in uncertain times. As demand for the metal outpaces supply, its price and profile have risen. An ounce of silver on the spot market hovered around US$5 for 20 years, but prices have not returned to that level since 2004. Amid inflation concerns of the last few months, silver spiked to highs of more than US$36. New applications for silver, and its bullish market outlook, may lead the public to improve its familiarity with the metal.

60 | CIM Magazine | Vol. 6, No. 3

The Americas lead in silver production. Peru became the world’s leading silver producer in 2002, with Mexico in second place. But silver is mined in other locales as well: China, Australia and Russia also rank high. Mexico’s rich silver belt is a hotspot for silver mining. Todd Anthony, manager of Investor Relations at First Majestic Silver, says that the strong labour force and quick permitting process make Mexico an attractive place to mine. “Politically, it’s also very stable,” he adds. According to Hugh Clarke, vice-president of corporate communications at Endeavour Silver Corp., it has only been possible for foreigners to own mining projects in Mexico since 1993. “The Spaniards, and then the Mexicans, were the world’s best at looking for surface expressions, picking up the vein and then mining it. But as soon as the vein was gone, that would be it. Their exploration expertise was really not their strong point.” That means that companies, largely Canadian explorers and miners, have been able to apply new exploration techniques and make major new discoveries, says Clarke.

Limited silver production in Canada Although Canada was among the world’s top 10 silver producers until 2009, silver production numbers have been on a downward trend for a long time. “Most of the silver that’s been coming out of Canada over the last few decades

commodity focus silver has been a byproduct from gold, copper and lead zinc mines,” Clarke says. A new primary silver mine, the first to operate in over 15 years, commenced production in January 2011, after Vancouverbased Alexco Resource Corp. returned to the historically productive Keno Hill Silver District in Yukon. The company projects an initial mine life of approximately four years. Production in 2011 is estimated to be 2.8 million ounces of silver.

!"#$%&$'()*+,$#,"-./+,'$01&&23 !"#$%&$'()*+,$#,"-./+,'$01&&23 $4())("5'$"6$".5/+' $4())("5'$"6$".5/+' ;] ;& C] C& 1] 1& %] %& ]

)/ 4 V' $#

V4 +: =)

O ,# E

", #E

Q (5

/= 5M N$O

*+ ,H

)/H

'A =$ @ (+ -B

:" 5

Tight markets

>= X= AP

UJ K

$9 ")

4 (:"

4 "$

+' $K

$@ (5

R< )+ 5+ $@ (5

/P (

+. ,$-

8" /P '

=E $@ (5

+, =$ L ")

J()

())"

<4 +, (/= 5$

9= 5$

G, +' 5

>? 8@ $9 ")

78 9$ 7( ) )(

The market for silver has a dual nature, comprising physical uses and investments. The sharp interest in silver as an investment right now has contributed to tightness in the 1 primary producer 2 including subsidiaries physical market, explains David Morgan, ediSource: The Silver Institute 3 estimate tor of the Morgan Report. “Most of those thousand-ounce bars or industrial-grade bars are already captured for investment purposes,” he says. by drawing down from above ground inventories that had Ted Butler of Butler Research Ltd. attributes part of the been previously produced.” tightness to the history of silver consumption. “We conIn 1940, Butler says, there were about 10 billion ounces sumed more than we were producing for 60 years or so,” he of silver above ground, 60 per cent of it in United States explains. “We were balancing the supply-demand equation government reserves. Today, there are one billion ounces

May 2011 | 61

commodity focus silver MINE PRODUCTION (tonnes) 2009

2010 (est)

Peru

3,850

4,000

Mexico

3,550

3,500

China

2,900

3,000

Australia

1,630

1,700

Chile

1,300

1,500

Russia

1,400

Bolivia

1,300

1,360

United States

1,250

1,280

Poland

1,200

Canada

600

700

2,820

2,600

21,800

22,200

Other countries World total (rounded)

Source: USGS

left. “Silver is rarer than gold when it comes to above ground inventories,” he adds. “Most people don’t know that.” Anthony observes that the polymetallic nature of silver mining makes it more complicated to adjust supply to meet high demand. “You can’t really turn on silver production,” he says. “It can take up to 10 years to bring a new silver mine into production. Unless base metal prices start increasing, which causes mines to become more economical to

develop, we are not going to get a huge increase in the global production of silver.” However, tightness is not the same as shortage, points out Miguel Perez-Santalla, vice-president of marketing at Heraeus Precious Metals Management, LLC. “There is no shortage of silver,” he says. “Investment metal is really just metal sitting there waiting to come back into the market.”

Suspicious market conditions If demand has been so high, why were prices so low until the last several years? Butler believes the silver market has seen downward price manipulation by a few commercial banks with massively concentrated short positions. He and others have been making these allegations for years, but they have gained weight in the last two years with the announcement of a United States Commodity Futures Trading Commission (CFTC) investigation and the statement of a CFTC commissioner in October 2010 that he believed manipulation had occurred. Some are inclined to believe it. “Bart Chilton, one of the CFTC commissioners, standing up on his hind feet and saying the same thing gives it utmost credibility,” says Clarke. But that does not mean Clarke is influenced by the claim. “What I care about is supply and demand, and that’s really what drives the price of any commodity,” he says. Right now, supply and demand look good. “If you took the investor out of the marketplace, silver would drop down to $12,” says Perez-Santalla. “But for silver miners, $12 is good. At this price, they’re making beaucoup dollars.” CIM

• MINES • MINERALS • METALS • MATERIALS Mining fOR sOciEty

M4S

The Renaissance metal In 2009, silverware, jewelry, coins and medals composed 41 per cent of physical silver demand, according to the World Silver Institute. Another 11 per cent flowed to photography, which uses photosensitive silver halides in film. Myriad industrial applications grabbed the remaining 48 per cent. As the most conductive metal, silver is used in tiny amounts for electrical contacts in automobiles, computer keyboards, and refrigerators. Its reflectivity has found use in the window manufacturing industry. Some new double-plated thermal windows use invisible silver coatings to reflect away bright, hot sunlight and insulate the building. The metal is also important to the growing solar energy industry, where it is used in the production of photovoltaic cells. A number of industries make use of silver’s antimicrobial properties, for example, by weaving silver threads into bandages and shirts, coating hospital and kitchen equipment with silver, and using the metal as a wood preservative.

62 | CIM Magazine | Vol. 6, No. 3

Work with us to make a difference. As a global leader in mining and exploration, Rio Tinto plays a part in shaping the world we live in. When you choose to build a career with us, you get the chance to build on your expertise while you help shape the future of communities the world over. We provide exceptional opportunities for inspired individuals â&#x20AC;&#x201C; people with talent who see themselves as potential decision-makers and share our commitment to sustainable development. ,I WKDW VRXQGV OLNH D ÂżW ZHÂśG OLNH WR KHDU IURP \RX

www.riotinto.com/careers Rio Tinto Alcan Diavik Diamond Mines Inc. Iron Ore Company of Canada Rio Tinto, Fer et Titane

supply side | COLUMNS

Tax-based incentives could stimulate Canadian exports Jon Baird

Continuing with the theme of my last column where I discussed our country’s future being heavily dependent on exports (CIM Magazine, March/April issue, p. 52), at 30 per cent of the GDP, exports are critical to Canadians’ standard of living. Because mining is Canada’s most dominant industrial sector globally, Canadian firms offering goods and services used by the industry have much to gain from opportunities around the world. According to Export Development Canada (EDC), Canadian exports grew at an average annual rate of just two per cent from 2000 to 2008. Then, once the 2008 recession started, Canadian trade crashed by 30 per cent in six months in real (price adjusted) terms, to the same level as a decade ago. Now, our trade is slowly returning to previous levels. Further, Canada’s exporter population shrunk from 42,000 companies in 2004 to 39,000 in 2008. The drop in the annual number of new exporters has been dramatic, falling from a peak of 5,400 in 2002 to 2,300 in 2008. While other countries are organizing national export drives to seize the increased shares of expanding markets, Canada is doing little in the field

of international trade promotion. In the past, Canadian governments have chosen to support exporters through subsidies offered by the Program for Export Market Development (PEMD), which ran for about 30 years starting in the 1970s. Most such subsidies have been stopped by now as governments have realized that they are not effective stimulants. They are ineffective because of the “free rider” effect, where the money is taken by firms that would have done the project anyway. For many years, I have thought that Canadian firms might be motivated to increase their export marketing efforts if there were tax incentives encouraging such activities. A model might be the federal government’s Scientific Research and Experimental Development (SR&ED) tax credit program. While currently needing some repair and maintenance, SR&ED is regarded as an excellent stimulus for small- and medium-sized firms to innovate. Following are reasons as to why tax-based incentives like SR&ED, rather than subsidies, would work to stimulate Canadian firms to export more. • Instead of following a government lead or applying for a specific program, companies make their own

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

decisions, resulting in timely actions to capture rapidly changing market opportunities. • Companies use their own knowledge to identify market opportunities and mobilize their capabilities to capitalize on them. • Such a program could be applied to all business sectors so that governments are not put in the position of picking winners. • Tax-based incentives provide good leverage of the government’s investment by requiring the commitment and up-front use of the firm’s capital and a focus on the return on investment, not just a grab for available government money. • Because the firm’s business acumen and capital are put on the line when well-designed tax-based mechanisms are used, overhead costs and disruptions associated with obtaining government support are minimal. I believe that if Canadian firms were to receive tax credits on expenses made to develop export markets, there would be a significant increase in exporting activity. Such credits could be used in a strategic way, such as applying them to activities in certain countries or regions. CIM

GIVING BACK Staff and students at 30 universities in Africa, Asia, South America and Oceania now receive free access to Data Metallogenica thanks to sponsorship by AMIRA members. Supported by over 100 companies, government agencies and professional societies, AMIRA’s global mineral deposit database is an important learning resource for geological teaching and research.

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 2011 | 65

COLUMNS

| MAC economic commentary

Innovation and the Canadian mining sector Paul Stothart In late 2010, the federal government launched a review of its core research and development (R&D) funding and tax programs. In so doing, it established an “expert review panel on R&D” tasked with providing recommendations to the government by October 2011. Based on the premise that Canada does poorly converting knowledge to innovation, the overall intent of the exercise is to improve Canada’s ability to stimulate innovation, capitalize on knowledge and create economic value. In some circles, the launching of this review has drawn cynicism, given that the federal government has conducted similar exercises in recent years without leading to appreciable improvements.

The Mining Association of Canada prepared a submission to the expert panel in late February 2011 that highlighted the following three key messages: 1. The mining industry is a major contributor to Canadian prosperity. The sector contributed $32 billion to the GDP in 2009, employed 306,000 workers in mineral extraction, processing and manufacturing, provided business to 3,200 supplier companies, ranging from engineering services to drilling equipment, and paid around $10 billion in taxes and royalties to Canadian governments. Canada remained the top destination for global exploration spending in 2009, while internationally there are some

Your Vision Is Our Mission

World Leader in Material Handling and Coal Preparation

CORPORATE HEADQUARTERS

www.taggartglobal.com NORTH AMERICA | SOUTH AMERICA | AFRICA | ASIA | AUSTRALIA

66 | CIM Magazine | Vol. 6, No. 3

1,000 Canadian exploration companies active in over 100 countries. The Canadian mining industry is highly global, accounting for 19 per cent of Canada’s goods exports, 10 per cent of its direct investment stocks abroad and 14 per cent of all inward investment stocks. In this sense, the Canadian industry should be viewed by the expert panel as an important player in the global economy. 2. The mining sector is a noteworthy investor in R&D and has important innovation challenges lying ahead. According to Statistics Canada, the mining sector invests more in R&D than do any of the oil extraction, motor vehicles, wood products or machinery sectors. This same catalogue also suggests that there are more R&D workers in the four stages of the mining industry than in the aerospace and pharmaceutical industries, and both receive a very high level of government support. Seven mining and oil sands companies rank among the top 100 private-sector R&D investors in Canada. The sector also draws upon expertise contained within the federal CANMET laboratories, as well as a broad number of small R&D centres with university links that coordinate mining research undertakings on behalf of their members. Looking ahead, it is unlikely that the R&D and innovation hurdles facing the exploration, extraction and processing stages will decline. In mineral exploration, it is evident that economically feasible resource deposits are becoming more difficult to find, and this at a time when society demands increasingly minimal disruption to the environment. In extraction, a high portion of Canada’s remaining base metals mineral inventory is located at depth, potentially several kilometres below surface. This

MAC economic commentary | COLUMNS presents technical challenges to the industry’s efficiency, productivity and profitability. In the mineral processing stage, incremental improvements to smelting technologies continue to be made with the aim of maximizing metal extraction while minimizing energy use and air emissions. The need to continuously improve environmental performance underlies many of the industry’s R&D and innovation priorities, particularly in that such improvements can also be closely linked to efficiency and productivity gains. In the coming years, industry will be directing increased attention to energy and carbon management although, as in most sectors, this pace will be affected by world oil price trends. Perhaps the largest single environmental challenge facing the mining industry relates to managing the large volumes of waste tailings and associated water usage. In the oil sands, companies are investing in technology research that could allow water to be released and land to be dried and reclaimed more quickly. Improved tailings management will remain a future priority for most mining companies. R&D relating to the lightweight materials segment and to enhanced metal recycling activities could also become more important, depending on societal priorities, as reflected through public policies. 3. The mining sector does not appear to receive federal R&D support commensurate with its importance and innovation challenges. The largest federal program – the Scientific Research and Experimental Development (SR&ED) tax credit program – has helped some companies improve process efficiency and tailings management, although on balance the mining sector is a relatively minor beneficiary. Some suggest that officials administering the SR&ED program do not view the mining industry positively, feeling that capital investments will occur in Canada as a rich ore body country regardless of innovativeness,

and that support is therefore better directed towards software, IT and other sectors. In terms of spending programs, annual mining-sector support through key entities such as the Natural Sciences and Engineering Research Council (NSERC) and Sustainable Development Technologies Canada likely totals a few million dollars – far less than amounts directed towards other sectors. MAC’s submission also proposed a few recommendations to the expert panel, most notably: • Take into consideration the industry’s scale, global nature and technological challenges, as well as the recent formation of the Canada Mining Innovation Council as a body mandated to help enhance strategic federal R&D support to the sector. • Establishing a technical steering commitee

involving partners such as Natural Resources Canada, combined with a more active dialogue between officials administering the SR&ED program and the affected companies, could serve to reduce cynicism and improve predictability, efficiency and timeliness of the claim review and appeal processes. Federal support for R&D should increasingly encourage the implementation of process improvements and, hence, be linked more closely to productivity and environmental improvements. CIM

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

HOW DO YOU GET MORE OUT OF YOUR MINE? JUST ASK GOLDER.

geology,, extreme weather and remote locations are challenges enough. Add to that, social, Complex geology challenge.. environmental and regulatory issues and you can appreciate why mining is a challenge continents, Golder has developed unique expertise in open-pit and FFor or over 50 years and working within six continents, underground mining, delivering sound solutions that maximize vvalue alue and minimize risk. Earth’ss Development, Preserving Integrity.. Engineering Earth’ Preserving Earth’s Earth’s Integrity

Canada 1 800 414 8314 solutions@golder.com solutions@golder.com www.golder.com www .golder.com

May 2011 | 67

COLUMNS

| HR outlook

Canada is not alone Skills shortage a global issue in mining

An increasingly competitive labour market is affecting a number of sectors, but particularly those that rely on skilled trades and highly educated professionals. The Canadian mining industry, with its strong commodity market and current growth projections, is particularly vulnerable to labour shortages – a challenging issue that has climbed the risk agenda from sixth place in 2009 to second in 2010 in Ernst & Young’s annual report, “Business Risks Facing Mining and Metals.” It is no secret that Canada’s mining industry is facing a demographic challenge; an aging population means that in the next five years alone, one-third of the mining workforce will be eligible for retirement, driv- Mining companies are facing a generation gap between workers on the cusp of retirement and those only just beginning their careers. ing the need for approximately 100,000 new workers by 2020, according to the Mining average age of mining professionals These growth prospects have Industry Human Resources (MiHR) in the country was 50 to 55. In the helped mining companies to attract Council’s latest labour market informaUnited States, the Society of Mining more young workers to the industry, tion report, “Canadian Mining Industry Engineers discovered that over 58 in addition to developing partnerEmployment and Hiring Forecasts per cent of industry members were ships with educational institutions already over the age of 50 back in and encouraging alternative and 2010.” 2005.1 more flexible employment structures. Facing the facts However, these efforts are not Canada is not alone. Other coun- Impacting productivity enough to offset the gap between tries are feeling the same crunch and Rising global demand for mining workers on the cusp of retirement are also struggling to find skilled talent will adversely impact developand those only just beginning their workers. In Australia, the National ment and productivity and hurt mincareers; there is a shortage of people Resources Sector Employment Task- ing companies on cost and efficiency in between.2 force published a report in July 2010 of existing operations. Countries highlighting the challenge in that undergoing rapid economic developInnovative solutions country. The Taskforce estimated ment, such as China and India, will MiHR is committed to developing that there will be 61,500 new jobs continue to need the raw materials solutions to help the Canadian mining created by 2015 in addition to a that others like Canada, Australia or industry address these challenges and turnover rate of around 10 per cent South Africa provide; however, this recommends a two-pronged approach: per year. In South Africa, executive potential is threatened by the looming industry must first maximize and make research firm Landelhani found the labour shortages. the best use of all available sources of 68 | CIM Magazine | Vol. 6, No. 3

Credit: MiHR

Ryan Montpellier

HR outlook | COLUMNS labour through workplace diversity; and second, increase its productivity through investments in training and skills development, coupled with improving the foundation for innovation and technological advances. Attracting and retaining non-traditional sources of talent that have previously been underrepresented in mining is critical to ensure that the necessary people and skills are available in the short and longer term for the sustainability of the industry. There are many opportunities to revitalize the workforce and diversify the potential talent pool. A number of groups that are currently underrepresented in the mining industry yet available in the general labour force include women, youth, new Canadians, Aboriginal peoples and workers

from comparable industries that have experienced a downturn.

A community of support Sometimes it is not enough to identify a solution, like workplace diversity. Employers want to know how to implement these solutions and they want real, concrete examples. Canadian mining companies are making strides in developing more innovative solutions to these complex issues, but often we do not hear about them. Our peers in other mining companies are our most valuable resources, and MiHRâ&#x20AC;&#x2122;s latest initiative, MiHR Innovate, is an online compendium of innovative HR practices dedicated to helping employers exchange and

1 Deloitteâ&#x20AC;&#x2122;s Tracking the trends 2011: The top 10 issues mining companies will face in the com-

ing year

develop new and tailored innovative solutions to their companyâ&#x20AC;&#x2122;s HR challenges. HR practices from over a dozen mining companies have been submitted and are categorized in four key areas: diversity and inclusion; skills, training and employee development; compensation and wellness; and social responsibility. Practices include any type of initiative that has had an impact on an organization and its employees. The inaugural round of submissions is now available at www.mihrinnovate.ca. CIM

author

Ryan Montpellier is the executive director of MiHR. Currently, he sits on a number of boards and provincial committees dealing with labour shortages in the mining sector.

2 Sic

Worldwide Slurry Pumping Solutions

Need a better way to free your froth? Yara, a phosphate plant in Finland did. Their pumps were not able to provide the required flow and were air locking at only 1/3 process design capacity. GIWâ&#x20AC;&#x2122;s Solution: Install the HVF (High Volume Froth Pump.) Our pump removes air from the impeller eye while running, which allows continuous operation and improved efficiency. This pump wonâ&#x20AC;&#x2122;t stop you up. Yara has now superceded their design capacity and has achieved a flow of 415 m3/hr. Got a froth problem we can solve? GIW offers expert slurry pumping solutions around the globe. Minerals are everywhere. So is GIW. HVF Pump

Visit GIW at CIM Booth #0726 GIW Industries, Inc. Â&#x2021; :ULJKWVERUR 5G *URYHWRZQ *$ 86$ 7HOHSKRQH Â&#x2021; )D[ Â&#x2021; ZZZ JLZLQGXVWULHV FRP $ .6% &RPSDQ\ Â&#x2021;

May 2011 | 69

COLUMNS

| safety

The safety factor Mining companies venturing into West Africa Alexandra Lopez-Pacheco

Credit: Cluff Gold

When Charles Taschereau worked on various mining projects in West Africa, including four years as vice-president and general manager of development and construction at IAMGOLD’s Essakane Gold Mine in Burkina Faso, he quickly noted a lack of safety awareness among the workers. “Often, the workers hadn’t worn shoes before – they wore flip flops – and they’d never worn hard hats or gloves,” he says. “So, unlike in Canada where most of the employees have already worked in the industry and know the rules, you start with the basics: making sure they wear safety boots, gear and glasses.” Although there has been improvement in safety awareness with the rise in the number of large mining projects in West Africa, it remains an issue in the region. “In the past, there was very little focus on Examining samples of ore from crusher at Kalsaka safety,” says Chris Fell, regional manager – West Africa, for environ- governments lack the capacity and mental and ground engineering con- willingness to carry out the necessary sulting firm Golder Associates in inspections and monitoring to Ghana. “I think that this was largely enforce existing standards. But, for due to local people not having the most part, the reality on the worked on large development and/or ground is a very different narrative mining projects in the past. They than what the alarms would indicate were thus not exposed to safety issues – at least when it comes to Western and this did not really come into their mining companies. day-to-day thoughts on how to con“Large companies that are listed on duct their work.” stock markets have to be careful,” says In theory, the lack of a culture of De Sa. “They cannot be exposed to safety, combined with the fact that human rights complaints or labour labour and safety standards vary law violations, because it will affect the across the region, could set off performance of their stock. To a large alarms when it comes to safety in extent, they impose the same stanWest African mining operations. dards everywhere in the world they According to Paulo De Sa, manager, work. They no longer limit themselves oil, gas & mining unit at The World to complying with local laws and stanBank, to make matters worse, some dards. But, the problem is with smaller 70 | CIM Magazine | Vol. 6, No. 3

companies that don’t have big pockets that cut corners because they’re short of cash or under pressure to deliver returns to shareholders,” De Sa adds. “But then, they suffer the consequences stemming from conflict situations with the workers and local populations.” At Canadian mining companies such as IAMGOLD, which has a zero harm vision, the perspective is not as much about self-regulating as it is about avoiding injuries and accidents. “If I were following all the best laws and rules in the world and injuring people, that wouldn’t be acceptable,” says Ross Gallinger, IAMGOLD’s senior vice-president, health, safety and sustainability. “We don’t want anybody hurt – that’s really our objective. Whatever it takes to get to that zero harm aspect, we’ll go over and above what’s there. But the true measure of your safety performance is whether people are getting hurt or not.” As a result, when it comes to the learning curve at its West African operations, which include the Essakane Mine in Burkina Faso and the Sadiola and Yatela mines in Mali, IAMGOLD puts considerable effort into safety training and awareness. “First of all, you need to have people understand what the hazards are and what the protection aspects are for those hazards, and try to get people to identify those themselves,” says Gallinger. “It starts with a lot of supervision – helping them understand the hazards and the processes. That’s what we would expect in a North American culture.”

safety | COLUMNS

Credit: IAMGOLD Corporation

Training session: Dicko Abdoulaye (left) and Celestin Yameogo during a firefighting drill

Interestingly, says Taschereau, his experience in Burkina Faso was that in many ways, the workers were eager to learn. “It’s easier than you would think to get buy-in, if you explain things very clearly, give the reasoning behind what you’re saying and provide the training,” he says, “there’s no push-

back like you get in Canada when trying to implement a new rule.”

Security, on site and off If West African countries have a learning curve when it comes to safety, newcomer Canadian mining companies, with no experience in

volatile parts of the world, might have their own learning curve when it comes to security. “Most of the mines in northern Canada don’t have fencing; they’re very low security,” says Taschereau. “Sometimes you’ll see Canadians going into West Africa unaware of security needs.”

Professional Master’s Program in

MINERAL RESOURCE MANAGEMENT The Purpose

Enrolment & Format

The Queen’s Professional Master’s Program in Mineral Resource Management is designed to provide a new supply of Mining professionals to help address the burgeoning global demands of the mining industry. Intake to the program is focused on candidates who have completed an undergraduate university degree in either an engineering discipline or a relevant science specialization (e.g. Geology, Chemistry, Physics, etc.). Suitable candidates who are admitted to the program will develop and upgrade their mining specific technical knowledge and skill sets. The degree encompasses a broad spectrum of mining subjects over an intensive 8-month program, intended to develop Mining professionals with practical proficiencies with the broad knowledge and depth of understanding needed for the successful management of the business of mineral resource development.

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

Queen’s Initiative The Robert M. Buchan Department of Mining will launch this new Mineral Resource Management Master’s program in 2012. The program will provide candidates from around the world with practical training and skills development, will be delivered by industry-leading subject matter experts and provide state-of-theart education and perspectives on how to address the challenges of today's global mining industry.

QUEEN’S UNIVERSITY, KINGSTON, ONTARIO

Robert M. Buchan Department of Mining Goodwin Hall 25 Union Street, 354 Kingston ON K7L 3N6 613 533 2230 Email: mrm@mine.queensu.ca Website: http://mrm.mine.queensu.ca

May 2011 | 71

Chris Newcomb, President & CEO of McElhanney Consulting Services Ltd., is pleased to announce the appointment of Leon Botham, MSCE, P.Eng., as Saskatchewan Region Vice President. Armed with over 20 years of geotechnical engineering experience working extensively on mining projects across Canada and globally, Leon is a recognized expert in mining and mine waste assessments in uranium, precious and base metals, diamonds and industrial minerals. With McElhanney's century-old track record of survey, mapping and road design, and Leon's reputation in the mining industry, we expect to expand our services to mining companies in Western Canada and overseas. McElhanney is a multi-discipline engineering, survey and mapping consulting firm providing solutions in the fields of resource development, transportation, structures, land development, environmental sciences, drainage, water supply, sewage treatment and disposal. The firm has completed projects throughout Canada, the United States and in over 70 other countries. Tel. 306 649 0740 saskatoon@mcelhanney.com www.mcelhanney.com/mcsl 72 | CIM Magazine | Vol. 6, No. 3

Credit: Golder Associates

McElhanney Begins Second Century with Saskatchewan Expansion

Golder ecologists, wearing the required protective equipment, undertaking an electrofishing census, as part of an EIA in West Africa

UK-based Cluff Gold, a pioneer in West Africa with mining operations in Burkina Faso, Sierra Leone and the Ivory Coast, has on-site security at its operations. “You will need security on site in all of these countries, especially in the Ivory Coast with the recent political turmoil,” says the company’s spokesperson Carrie Lun. Although IAMGOLD’S operations are in some of West Africa’s most stable countries, the reality is that worker safety and security includes keeping a watchful eye on political stability. “We’re constantly monitoring what’s going on in the country in terms of what’s happening,” says Gallinger. “Again, we have procedures and infrastructure in place so that if there are demonstrations, riots, etc., we have a means of protecting our employees and crisis plans to deal with them if they do occur.”

Creating the culture In the meantime, Western mining companies are actually playing a role in creating a culture of safety in the region. “From my experience in mines in West Africa,” says Fell, “the health and safety standards seem to be pretty high. Mining companies are using state-of-the-art equipment, which helps to ensure a better and safer working environment, and they are putting a lot of money into health and safety programs for their mines.” Because of this, countries such as Ghana, Botswana and South Africa which have a long history of attracting international investment into their mining sectors tend to have higher safety and labour standards, says Avril Cole, an associate in the mining and private capital groups at Macleod Dixon LLP’s Toronto office. “The mining sector in Ghana, for example, has been the recipient of significant foreign investment over the years, particularly from Australian and Canadian companies that have introduced Western mining standards,” she says. “In fact, what we are seeing now is mining professionals from Ghana exporting the skills they have picked up from international mining companies to other parts of West Africa.” This trend will no doubt have a positive effect on existing and future business ventures in that part of the world. CIM

It’s Time to Put the “Hear” into Hearing Protection Imagine wearing Head Protection that doesn’t allow you to think Imagine if Hearing Protection allowed you to hear

Imagine wearing Eye Protection that doesn’t allow you to see

Total Communication Face-to-face, Two-way Radio, Bluetooth Cell Phones, Short Range, DECT Phones

Hearing Protection

Limiting output in the ear to 82dB

Imagine wearing Hand Protection that doesn’t allow you to hold

Situational Awareness 360 degree directional awareness of your surroundings

For too many years hearing protection has delivered a promise that no other PPE would accept - protection without function. Hearing Protection shouldn’t just be about protecting your hearing, it should also enable you to communicate and remain aware of your surroundings. That’s why many of the world’s leading companies are turning to Sensear to deliver a smart high noise communication and hearing protection solution. After all, why settle for hearing protection that doesn’t allow you to hear?

Imagine wearing Foot Protection that doesn’t allow you to walk

Try One - www.sensear.com/try

1-888-9SENSEAR

www.sensear.com

COLUMNS

| aboriginal perspectives

A giant step in the agreement process Cree Nation sets the tone for future collaborations with mining industry Jeff Borsato Mineral exploration and development in Canada typically occur in close proximity to Aboriginal communities. The positive impact such activities have on these communities are significant on many levels – agreements with First Nations on mining-related projects can result in job creation, skills training and economic growth at both the local and regional level. If approached in a proactive, respectful and responsible way, companies can tip the balance in favour of a harmonious and profitable partnership. Moreover, when a First Nation is proactive in its negotiations, it is not only a recipe for success, it is a model to be emulated. Historically, impact benefit agreements (IBAs) existed as bilateral agreements between the government and an Aboriginal community, to ensure local rights are respected and that employment opportunities are created for the people in the community. But, times are changing. Aboriginal communities are becoming increasingly involved in agreement negotiations. A prime example of this is the recent collaboration agreement struck between the Cree First Nation in Quebec and one of Canada’s leading gold producers.

74 | CIM Magazine | Vol. 6, No. 3

Credit: Goldcorp Corporation

Goldcorp and the Cree Nation ensures continued respect for Cree traditional activities while promoting its economic and social development. “It’s about vision: creating something that serves our need to grow and prosper while honouring our traditional way of life,” says Chief Rodney Mark of the Cree Nation of Wemindji. “Self-reliance is so important to the Cree. A critical element of the agreement is the cooperation of the 10 communities around Wemindji towards building a viable economy and increasing self-determination.” This collaboration is just one part of a growing trend towards greater Aboriginal involvement in development negotiations. Federal policies dictate that companies must engage both the government and Aboriginal representatives early in the process. This sentiment is “It’s about vision: by Steve Reid, Goldcreating something that serves echoed corp’s executive vice-president our need to grow and prosper and COO. “At the core of this agreement are community partwhile honouring our nerships that will ensure a responsible and viable minesite traditional way of life” for many years to come,” he — Chief Mark says. “Sustainable prosperity is critical, which is why we engaged the Cree from the earliÉléonore gold property in northern est stages of exploration, ensuring that Quebec. they were active participants and not A step in the right direction Under the terms of the Opinagow passive partners in the entire process,” Last February, a milestone was Collaboration Agreement, Goldcorp he adds, outlining the company’s reached in the negotiation process will recognize and respect Cree rights approach. between First Nations and mining and interests in the area in and around Grand Chief Matthew Coon Come companies. The Cree Nation of the Éléonore property. For its part, the of the Grand Council of the Crees conWemindji took charge of its fate, Cree Nation will recognize Goldcorp’s firms the significance of the signing. retained the services of a large Monrights and interests in the property, “This marks an important step fortreal-based legal firm and placed itself forging an agreement to ensure ward for the Cree Nation,” he says. “It at the forefront of each step of negotimutual development and cooperation ensures economic development that ations with Goldcorp regarding the throughout the life of the mine. This we can be an active partner in. The development and operation of its collaborative relationship between Opinagow Collaboration Agreement is

Making your world secure

Credit: Goldcorp Corporation

Draw on our expertise The Opinagow Collaboration Agreement will ensure mutual development and cooperation throughout the life of the Éléonore gold mine. From L to R: Grand Chief Coon Come, Chief Rodney Mark and Steve Reid.

evidence that the Cree aren’t anti-development; it shows that we seek out development provided our rights, the environment and our way of life are respected.”

Looking at the long term Chief Coon Come highlights the common vision that the Cree and the mining community share. “The spirit and intent of cooperation agreements build upon existing agreements and can act as a template to other First Nations that are considering allowing mineral exploration and development on their land,” he says. His advice to the other 614 First Nation communities that may find themselves in similar situations: “Any agreement must address education, cultural sensitivity, business opportunities and ensure traditional ways of life are protected.” Chief Mark stresses the importance of engaging the younger generation by providing student internships and summer programs, for example, and by explaining to them the range of opportunities that mineral development can bring to the region. “The younger generations need to see that there are job opportunities in the community, not just in mining but in the private sector as a whole as it develops,” he adds. A critical outcome of this agreement will be to ensure development takes place beyond the minesite, where residents can foster greater economic ties and ensure future success for First Nation communities. Following exploration activity, an airstrip and a 63-kilometre power line with a telecommunications tower were constructed, and a 61-kilometre access road is planned. With an estimated mine life of 16 years, the Éléonore property is considered a major new gold discovery in northern Quebec. The signing of the Opinagow Collaboration Agreement will not only help ensure sustainable development in Wemindji, the landmark negotiations will help guide future Aboriginal initiatives towards greater prosperity through responsible natural resource development. CIM

Contact me for more information: Cy King Email: cking@garda.ca T: 780.791.7087

May 2011 | 75

COLUMNS

| standards

CRIRSCO and international reporting standards Deborah McCombe Prior to the Committee for Mineral Reserve International Reporting Standards’ (CRIRSCO) annual meeting held on September 27, 2010, in Moscow, CRIRSCO and the Russian State Commission on Mineral Reserves (GKZ) held a seminar on Russian and International Mineral Reserves/Resources Standards. Each of the CRIRSCO representatives reported on the status of their country’s codes/rules for reporting Mineral Resources and Mineral Reserves (Paul Bankes and I represented CIM): • Australia – Preparations are underway for a revision to the JORC Code with an objective of finalizing it by the end of 2011. • Canada – The Canadian Securities Administrators (CSA) are reviewing NI 43-101 with July 2011 as the target date for completion of the revision. • Chile – The number of Qualified Competent Persons who are registered is increasing, and training is continuing on the use of the new Chilean Code. • Europe – The Pan European Reserves and Resources Reporting

Committee (PERC) continues to lobby to have the PERC Code accepted by the various European stock exchanges and regulators. • South Africa – The South African Codes are being reviewed, but there is no timetable at this time for revision of the 2007 Code. • United States – The number of SME Registered Members has increased and this is expected to continue to grow if the application to be registered as a Foreign Association under NI 43-101 is successful. SME is still actively trying to convince the SEC to align with the CRIRSCO Template and adopt the SME 2007 guide for mineral reserve and resource definitions disclosure. United Nations Framework Classification CRIRSCO representatives continue to participate in the deliberations of the United Nations Framework Classification (UNFC) Revision Taskforce. At the October 2009 meeting, a revised UNFC was adopted (UNFC 2009) and in April 2010, a UN Specifications Task

Water treatment solutions for the mining industry. » Recover dissolved metals and remove sulphate » /ŵƉƌŽǀĞ ǁĂƚĞƌ ĐŽŶƐĞƌǀĂƟŽŶ ĂŶĚ ƌĞͲƵƐĞ » ZĞĚƵĐĞ ĞŶǀŝƌŽŶŵĞŶƚĂů ůŝĂďŝůŝƟĞƐ ĂŶĚ ĐŽŵƉůǇ ǁŝƚŚ ƐƚƌŝĐƚ ƌĞŐƵůĂƟŽŶƐ » Reduce residual waste and eliminate sludge » >ŽǁĞƌ ƚŚĞ ůŝĨĞ ĐǇĐůĞ ĐŽƐƚƐ ĨŽƌ ǁĂƚĞƌ ƚƌĞĂƚŵĞŶƚ www.bioteq.ca ϭͲϴϬϬͲϱϯϳͲϯϬϳϯ

76 | CIM Magazine | Vol. 6, No. 3

Force met and identified specifications and guideline issues to consider. International Accounting Standards Board The International Accounting Standards Board’s (IASB) extractive industries project team issued a working draft on the valuation of Mineral Reserves for comment. CRIRSCO representatives have been working closely with the project team and the IASB Minerals Industry Working Group. Alignment of the Russian reporting standards and the CRIRSCO Template The Guidelines on Alignment of Russian reporting mineral reporting standards and the CRIRSCO Template was developed throughout the year. It was signed by representatives of CRIRSCO and GKZ (the Russian State Commission on Mineral Reserves) during the Moscow meeting and is available on the CRIRSCO website. PERC was active in developing this guideline, aligning Russian reporting standards with the CRIRSCO Template (a generalized reporting code developed by CRIRSCO). A collaboration agreement has been prepared linking CRIRSCO, GKZ and the Russian Society of Subsoil Use Experts (OERN). Its main objective is to develop a public reporting code in Russia by the end of 2012 that will be compliant with the CRIRSCO Template. It will not replace the internal reporting standards for government purposes. Core definitions in the CRIRSCO Template Over time, the major definitions contained in the CRIRSCO family of codes have drifted from the commonality achieved in the Denver Accord of 1997. With more international exposure of the CRIRSCO Template, it was agreed that it would be preferable if 13 core definitions could be standardized

for the CRIRSCO Template and then these definitions be adopted into each country’s codes/rules and standards. It was recognized that even though the basic definitions could be the same, there was a need to have accompanying guidance to reflect the situation pertaining to each jurisdiction. CRIRSCO members agreed in principle on the core definitions for Public Reports, Competent/Qualified Persons, Modifying Factors, Exploration Results, Mineral Resource, Inferred Resource, Indicated Resource, Measured Resource, Mineral Reserve, Probable Reserve, Proved Reserve, Pre-feasibility Study and Feasibility Study. These definitions will be referred to each national reporting organization (such as CIM in Canada) for their consideration. See the CRIRSCO website for more information. Material beyond Inferred Resources A paper prepared by Niall Weatherstone on “Material beyond Inferred” generated considerable discussion. The CRIRSCO Template does not provide for material that does not qualify for classification as a resource. Other classification systems, such as UNFC and Petroleum Resources Management System (PRMS), find a place for each and every category of mineralization. Some CRIRSCO family codes have provisions for discussing material that has the potential to be, but is not currently, a resource. The document was presented as a discussion draft and is on the CRIRSCO website. There is no intention to modify the CRIRSCO Template or the basic diagram showing the relationship of the CRIRSCO categories. Rather, the aim is to show the CRIRSCO position regarding other categories. Other business CRIRSCO’s strategic relationship with ICMM has been formalized for three years. Regular communications take place between the parties and the objective is to provide mutual support for each group’s activities. ICMM is a major contributor to the costs of running CRIRSCO. The support of ICMM, national reporting organizations and employers through funding and provision of time was gratefully acknowledged. On July 1, 2011, I will take on the position of Chair and Edmundo Tulcanaza (Comision Minera) will become the First Deputy Chair. Ian Goddard (JORC) will continue as Second Deputy Chair. CIM For more information visit: http://www.crirsco.com/news.asp.

author Deborah McCombe, executive vice-president of Roscoe Postle Associates and president of APGO, is a consulting geologist strongly involved in international mineral resource and reserve reporting and Canadian disclosure standards for the mining industry. May 2011 | 77

COLUMNS

| innovation

Realizing Canadaâ&#x20AC;&#x2122;s full potential Collaboration key to advancing innovation Tom Hynes In an effort to realize Canadaâ&#x20AC;&#x2122;s full potential in mining research, three organizations are coming together to document the hard facts. The Canada Mining Innovation Council (CMIC), the Intergovernmental Working Group (IGWG) and Natural Resources Canada (NRCan) have agreed to compile two catalogues of data on the potential funding sources and capacity for mining and miningrelated research in Canada. CMIC and NRCan were met with unanimous approval when they presented their proposals to the IGWG at a meeting in March. They agreed that web-based reports will benefit the research community, government

departments and companies associated with the mining industry. The first catalogue is intended to publicize potential funding sources for mining-related research in Canada. Some sources (such as NSERC) are well-known, but other grant resources go untapped simply because many are not aware of them. A recent study by NRCan found that the mining industry is not using all its available research opportunities, and a major reason for this includes a lack of knowledge about research programs and concerns about complex application processes. The proposed catalogue will aim to address these concerns. The report

will also be useful to provincial, territorial and federal officials who currently have no easy way to access an archive of available research sources in their own jurisdictions. The second catalogue intends to better identify research groups, facilities, specialized equipment and existing research programs across Canada. As with the first catalogue, the input of provinces, territories and federal departments will be critical, but this catalogue will also need to draw on contributions from universities and research centres (many of them CMIC members), as well as the private sector (mining companies, service providers, equipment manufacturers, etc.).

Committed to creating long-term WATER MANAGEMENT SOLUTIONS

for the Mining Industry CANADA â&#x20AC;˘ USA â&#x20AC;˘ BRAZIL â&#x20AC;˘ CHILE â&#x20AC;˘ AUSTRALIA â&#x20AC;˘ MEXICO â&#x20AC;˘ EUROPE â&#x20AC;˘ SOUTH AFRICA

Water is an essential component of every mining project. 9HROLD :DWHU 6ROXWLRQV 7HFKQRORJLHV VSHFLDOL]HV LQ FRPSOHWH PLQH ZDWHU WUHDWPHQW VROXWLRQV IURP PLQH GHZDWHULQJ WR HIĂ&#x20AC;XHQW WUHDWPHQW RYHU WKH ZKROH OLIH RI \RXU PLQLQJ DQG PLQHUDO SURFHVVLQJ VLWH

)RFXVLQJ RQ ZDWHU WUHDWPHQW ZLWK PLQLQJ SURMHFWV DURXQG WKH JOREH ZH KDYH WKH H[SHULHQFH WR SDUWQHU ZLWK \RX RQ DOO \RXU ZDVWHZDWHU ZDWHU DQG SURFHVV ZDWHU UHTXLUHPHQWV

Come and See Us!

CIM 2011 booth 1800 ZZZ YHROLDZDWHUVW FD VDOHVFDQDGD#YHROLDZDWHU FRP

78 | CIM Magazine | Vol. 6, No. 3

$UJHQWLD 5RDG 3OD]D ,9 6XLWH 0LVVLVVDXJD 21 / 1 : 7 )

Furthering research in Canada The IGWG member provinces, territories and federal representatives have committed to provide the data from their individual jurisdictions. Where known, they will also consider whether taxation issues or regulatory implications (such as development expenditures) are relevant factors in the provision of research, or the use of research funds, in their jurisdictions. The reports will be made available in an electronic format and may make considerable use of web links to existing information by provincial, territorial, federal or other agencies. In addition to IGWG, NRCan and CMIC resources, work on the proposals is being supported by volunteers from 3M Mining and CIM. This catalogue will provide the mining and research communities, and associated regulatory and policy departments with the knowledge of the potential that lies within Canada. The organizers hope it will ensure the better use of existing facilities and identify gaps for future consideration. Any relevant information (including, but not limited to, research funding sources; data on specialized equipment of facilities, including those for other industries or purposes that may also be relevant to mining or exploration; researchers or research groups working in Canada) that interested parties feel would benefit these initiatives can be forwarded to Michel Plouffe at info@cmic-ccim.org. Any such contributions would be much appreciated. Organizers aim to have one or both catalogues ready to present at the 2011 Energy and Mines Ministers Conference being held in July in Alberta. CIM

author

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

Visit the CMiC website www.cmic-ccim.org

New international research laboratory in geophysics Abitibi Géophysique Inc. and the Université du Québec en AbitibiTémiscamingue (UQAT) recently signed a unique agreement that will lead to, among other things, the creation of an international research laboratory in geophysics. The team of Abitibi Géophysique sees this partnership as an opportunity to develop cutting-edge knowledge and better practices in identifying ore deposits. “Be it to address problems regarding electronic aspects, methodologies, IT aspects or data processing, joint work between universities and private companies always represents a winning approach,” says Pierre Bérubé, Abitibi Géophysique’s president and the force behind the project. The principal of UQAT, Johanne Jean, agrees. “This is an extraordinary opportunity to delve even deeper into the knowledge of this field and explore new ways of doing things,” she says. The protocol plans to implement a laboratory of research in geophysics, which will be located in the Technopôle géoscientifique Géopolis in Val-d’Or, and other locations are earmarked for teaching and research. It specifies that this will lead to the creation of programs, projects, courses and research work in geophysics. To achieve this, the partners will establish relationships with various universities and companies, as required. The agreement also includes a facet regarding technology transfers.

New School of Mines well positioned to contribute to research efforts Located in one of the world’s largest exploration/mining/service/education clusters, Laurentian University is in close proximity to some of the world’s largest Ni-Cu-PGE, Cu-Zn-(Au) and Au deposits, which provides ideal opportunities for field instruction, co-op education and research. Laurentian University’s new School of Mines in Sudbury is a welcome addition to mining education in Canada. The university offers bachelor’s, master’s and doctoral teaching and research programs across the entire spectrum of the mine cycle. Fields of study include Aboriginal engagement, grassroots exploration, environmental assessment, mine design and operation, brownfields exploration, occupational health and safety, mine closure, environmental remediation and environmental restoration. A major focus will be its professional development programs, including an executive MBA degree in mining management. Laurentian is in the process of formalizing these offerings under the auspices of the School of Mines, with the goal of establishing itself as one of the world’s leading providers of mining-related undergraduate, graduate and professional education. For further information contact Michael Lesher, director of mining initiatives at Laurentian University, at mlesher@laurentian.ca or lsm@laurentian.ca.

May 2011 | 79

COLUMNS

| metals monitor

MEG Pipeline Activity Index drops from December high The staff of Metals Economics Group

80 | CIM Magazine | Vol. 6, No. 3

870,000 ounces of gold. Of the initial base metals resources announced in January-February 2011, the top three primary copper projects accounted for more than 92 per cent of the total value. The decrease in the number of significant financings completed by junior and intermediate companies in the Source: MEG Industry Monitor; MineSearch; Exploration Activity Services. © Copyright 2011 Metals Economics Group

resources reported in the latest twomonth period is up from NovemberDecember 2010, with more than 40 per cent of the $28 billion total attributable to the Zafranal project in southern Peru, where AQM Copper and Teck Resources announced initial resources containing more than 1.5 million metric tonnes of copper and

The Metals Economics Group Pipeline Activity Index (PAI) dropped sharply in January from December’s three-year high before recovering modestly in February. The PAI’s movement over the past few months follows a typical seasonal trend – increased activity through the latter months of the year followed by a drop in the first few months of the following year as companies resume work after the holiday break. Despite January’s sharp fall from December’s record high, the PAI remains slightly above the 2010 average. After reaching $2.36 trillion in December 2010 – the highest since MEG initiated the PAI – the industry’s aggregate market capitalization dipped in January. Metals prices continued to increase, helping to lift the aggregate market capitalization to $2.32 trillion at the end of February – less than two per cent below December’s high-water mark. The number of significant drill results released in the latest twomonth period was slightly lower than the November-December 2010 period, but still relatively strong compared to 2009 and the first half of 2010. Regionally, the top three destinations – North America, Latin America and Australia-Pacific – combined to account for more than three-quarters of announcements in both NovemberDecember 2010 and January-February 2011. Unlike gold results, which have slowed recently as the relative gold price has more or less flattened over the past five months, significant base metals results remained strong through the holiday season. Initial resource announcements by junior and intermediate companies were up from January-February 2010, but still well shy of bimonthly numbers prior to the economic collapse in early 2008. The overall value of initial

Significant junior and intermediate company financings.

metals monitor | COLUMNS latest two-month period was the biggest contributor to the decline in the PAI, as both January and February expectedly dropped from December’s peak. The amount raised in JanuaryFebruary 2011 was also below the 2010 bimonthly average of $3.82 billion. CIM The MEG Pipeline Activity Index (PAI) measures the level and direction of overall activity in the supply pipeline, incorporating significant drill results, initial resource announcements, project development milestones, and significant

financings into a single comparable index. The PAI is featured in the MEG Industry Monitor – a series of comprehensive graphs and charts, with related commentary, illustrating MEG’s analysis of monthly changes and emerging trends in the base and precious metals pipeline. Using information only available from MEG through MineSearch, Exploration Activity Services, and

Acquisitions Services, the Industry Monitor tracks developments based on announcements over the past 26 months of significant drill results, initial new resources, project development milestones, significant financings, and acquisitions. For more information on the PAI, visit www.metalseconomics.com.

ACHIEVEMENT The recently transformed Britannia Mine Museum won the 2011 Canadian Museum Association Award for Outstanding Achievement in Facility Development and Design. Reinvented in 2010 by a $14.7 million three-phase redevelopment project turned this mining legacy site into a vibrant internationally recognized tourist destination. Made possible by generous contributions from the mining industry, the provincial and federal governments, and private donors, the redevelopment project focused on preserving the museum’s heritage buildings and mining collections, while creating an enhanced visitor experience with the new Beaty-Lundin Visitor Centre and the Britannia A-Z Exhibit Hall. The complete restoration of the A-Z Exhibit Hall and the creation of new interpretive displays showcase what life was like for the more than 60,000 people from over 50 countries who lived and worked in Britannia between 1904 to 1974. The museum was recognized for excellence in function, vision, innovation and architecture, and was chosen because of its national significance and ambitious vision in creating a destination museum in a considerable short time frame.

May 2011 | 81

COLUMNS

| women in mining

Tilting the balance Noront a model for gender diversity

In an industry that is slow to adopt gender diversity, Noront Resources stands out like an oasis in the desert: over 50 per cent of its employees are female, compared to just 14 per cent overall in the mining sector. Although this remarkable gender split happened more by accident than by design, Noront continues to promote and capitalize on diversity as the company transitions from exploration to development and competes for a limited pool of talent. “We’ve totally embraced the diversity and inclusion model and because of that, we’ll be able to attract really intelligent, Although more than 50 per cent of students enrolled in post-secondary geology programs are female, the number that bright females from across transition from school to mining careers is low. Canada,” says Leanne Hall, vice-president of human resources for Noront, a Toronto-based The Ramp-Up study report, pub- Camp accommodations include sepamineral exploration company with lished last February by the Mining rate sleeping quarters, bathrooms and exploration activity in the Ring of Industry Human Resources (MiHR) showers for women. Fire Region in northwestern Ontario. Council and Women in Mining Sturk believes there are a number of “For us, it is about creating a diverse Canada, focused on the status of initiatives companies can take to suptalent pool that will enhance and women in the mining and exploration port work-life balance, including subengage our workforce for the future – sector. Interestingly enough, the sidized on-site day care, for example, this is also a win/win situation for number one barrier for female or giving female employees work the mining industry and northern respondents was the seven-day schedule options to choose from. environments.” in/seven-day out work schedule prac- “We’re going to look at new initiatives tice at many remote camps. such as flex-time and childcare Change starts at the top Melanie Sturk, the director of issues,” says Hall, “but right now, Wes Hanson, president and CEO attraction, retention and transition for because the majority of employees are of Noront, plays a critical role in set- MiHR, believes that this likely in our exploration camp, we are more ting the leadership tone for change – explains the drastic drop in the numfocused on keeping them happy while making workplace flexibility a key ber of females that make the transition they are in camp.” priority. He understands that human from school to paying jobs in the The second major barrier identified resource policies and programs that industry, even though at least 50 per in the report is the work culture within incorporate work/life initiatives are cent of the students enrolled in post- a male-dominated industry. Notions important for attracting and retaining secondary geology programs are about women’s intolerance for physitalent as well as maintaining high female. cally demanding tasks can impede levels of productivity. Whether talkHere again, Noront is an anomaly: 44 career paths and need to be dispelled. ing about work practices or working per cent of all of Noront’s female “Eliminating assumptions about conditions, it is clear that barriers employees are in management or in women’s ability to manage field work is exist for women in particular. technical positions, including geologists. vital. In addition, there is a need to 82 | CIM Magazine | Vol. 6, No. 3

Source: MiHR

Virginia Heffernan

women in mining | COLUMNS address practices that collectively contribute to perceptions of a male-dominated culture, including awareness training, closing the wage gap and implementing mentorship programs,” the Ramp-UP report states in its recommendations. Change starts at the top.

The increased number of women at companies like Noront is beginning to alter the way mining is presented to young people considering a career in the industry. Several women took leadership roles at last August’s “Mining Matters” summer camp, run by the Prospectors and Developers Association of Canada (PDAC) and sponsored by Noront, in the communities of Webequie and Marten Falls. They included Renata Smoke, an Aboriginal student studying geology at the University of Western Ontario, and Barbara Green Parker, Aboriginal education specialist for PDAC. The camp introduced a total of 104 youth, ranging in age from nine to 19, to geological and mineral exploration activities, including prospecting, claim staking, mapping and the use of GPS technology. Providing role models such as Smoke and Parker – along with Aboriginals who work in the industry – to girls thinking of becoming mining professionals is crucial to change the perception of mining as a white, male-only field, says Sturk. To this end, Noront’s goal of being an employer of choice encompasses employment opportunities for Aboriginal women and men from the communities surrounding Noront’s exploration properties in the Ring of Fire – a vast area containing several polymetallic and chromite deposits in Ontario’s James Bay lowlands. As the company grows, it only makes sense to train and recruit and train local talent, says Hall. The strategy is already paying off. “When you see Noront at an event, you see Leanne Hall, you see Glenn Nolan, vice-president of Aboriginal affairs and former chief of the Missanabie Cree First Nation, and you see a diverse group of people who love their jobs and are excited about what they do,”

Credit: Engage Learning Systems

“Not just white males”

Renata Smoke teaching Mining Matters in Martens Falls First Nation, summer 2010.

says Sturk. “Seeing female faces in the industry and having these people to go to for support is critical for women.” In fact, mentoring has proven to be most successful in developing diverse talent. Recently, Noront expanded its mentorship program by offering direct access to successful mining women, including Hall, on the Mikawaa (an Oji-Cree word meaning “discovery”) web portal developed by Noront to improve communication, consultation and collaboration between the company and surrounding communities

(www.mikawaa.com).“Mikawaa breaks down the barrier of distance,” says Hall. “We are just a click away from respectful, responsible and knowledgeable dialogue and the sharing of information with our communities and stakeholders.” Mikawaa is the kind of initiative that will encourage the next generation of women to join an industry where significant obstacles for women persist. One can be sure that when it comes to diversity, Noront will be leading the charge. CIM

May 2011 | 83

COLUMNS

| eye on business

Proactive versus reactive The importance of having a good CSR plan Claudia Feldkamp and Kevin O’Callaghan Political risk and exposure to government decisionmaking is nothing new for the extractive sector. Mining companies have long operated within highly regulated environments with significant oversight by governments both at home and abroad. However, both the nature and scope of this exposure to government decision-making has evolved significantly, in step with the mushrooming demands of corporate social responsibility (CSR). Natural resource companies, in particular, often face serious challenges from foreign governments (worst case scenario being illegal expropriation). Indigenous peoples, non-governmental organizations (NGOs) and local communities now have access to a growing number of binding and non-binding tribunals for airing complaints. In this environment, now more than ever companies need to be proactive in the development of CSR policies and in crafting comprehensive and adaptive front-end strategies for managing these

ELTRA

ELTRA ANALYZERS MADE IN GERMANY

CARBON SULFUR ANALYZERS FOR IRON ORE & TAILINGS TESTING ONH, CO2 DETERMINATORS FOR MINERAL APPLICATIONS CHS & TGA ANALYZERS FOR COAL TESTING

Skyray Instrument HANDHELD X-RAY FLUORESCENCE SPECTROMETERS Fast minerals analysis Mineral exploration and survey In-situ inspection of rocks, soil, sediments, ores Analysis of crude ore, concentrates, tails Quick grade determination for ores Heavy metals in soil Precious metals Landfill & contaminated soil Environmental analysis Archeology and soil research

hd,KZ/ /^dZ/ hdKZ͗

84 | CIM Magazine | Vol. 6, No. 3

ZKDYh ^d d ,EK>K'/ ^

ϲϰ 'h/ KhZd dKZKEdK͕ KE͕ Dϵs ϰ<ϲ d >͗ ϴϴϴ͘ϳϰϮ͘ϵϬϲϴ͕ & y͗ ϰϭϲ͘ϳϰϮ͘ϲϴϭϳ ƐĂůĞƐΛƌŽŵƋƵĞƐƚ͘ĐŽŵ ǁǁǁ͘ƌŽŵƋƵĞƐƚ͘ĐŽŵ

evolving CSR demands and accompanying ongoing political exposure. The legal, social and political landscape has undergone the beginnings of a substantial shift toward companies being held responsible for the economic, social and environmental consequences of their business activities. Significant challenges for companies have accompanied this shift. CSR standards and accountability mechanisms are continually evolving. In Canada, the landscape was on the verge of changing last year with a private member’s bill (Bill C-300) being introduced into a minority Parliament. There is often a gap between CSR ideals and practical guidance for companies on how to transform the statement of ideals into practice. Attempting to bridge this gap, John Ruggie, the UN Secretary General’s special representative on human rights and transnational corporations and other business enterprises, has recently published “Guiding Principles for the Implementation of the UN ‘Protect, Respect and Remedy’ Framework.” The application of CSR standards is highly complex and accompanied by significant unpredictability on the ground. What is appropriate for a company operating in the Democratic Republic of Congo will be different from a company operating in Brazil or British Columbia. Additionally, the framework of a company’s operations is never static. Political, communal and economic changes in the region and host country occur over the life of a mine. Companies operating in politically unstable regions, in particular, may need to respond to dramatic political changes and possibly threats to their operations. For example, if facing a possible expropriation, a company will need to decide whether it can safely protect its operations or must close a mine to protect its employees.

Have a CSR plan CSR has been long championed by NGOs as a shield to protect civil society, but it can also be used as a sword to attack mining operations, particularly in developing countries. Despite corporate practices being constantly improved and refined, companies are increasingly exposed to these risks. What can companies do? Most importantly, companies need to be proactive, not reactive, both in enhancing and refining their CSR policies and in minimizing risk on the front end (while preparing for worst case scenarios). Companies need to identify early on the key CSR imperatives, first by developing a thorough understanding of all existing and potential social license imperatives, and second, by forming a strategy for

Excellent Minerals Solutions

Weir Minerals… Expertise where it counts. Weir Minerals is the world leader in the design and manufacture of pumps, valves, hydrocyclones and wear resistant linings including WARMAN® centrifugal slurry pumps and LINATEX® rubber products for the global mining and minerals processing industries. Our reputation is based on engineering excellence applied to innovative, customer-focused solutions for processing minerals and aggressive materials. For more information, please visit:

www.weirminerals.com

Weir Minerals will be exhibiting at the following upcoming show. Please visit CIM Booth #401.

COLUMNS

| eye on business

navigating the social licence and policy implications of development. Having identified the key CSR imperatives, companies need to know the “players” in and around the project location. In recognition of the tremendous influence of local communities, indigenous people and NGOs, companies must invest in the relationships needed with respected community leaders and maintain these relationships, which can have a real on-the-ground impact on the development of a project. Companies also need to build strategic relationships within governments, from local to national, and within relevant international organizations. They must establish a global approach to government relations that reflects an understanding of all relevant governments, including the host and home countries, as well as other governments with interests in the host country and any relevant international institutions. As with the development of relationships with community leaders, timing is critical: companies need to build their strategic relationships before problems arise. The first encounter with a key official should not be to discuss a CSR problem or other bad news. It should always be to showcase the positive good news impacts of development in an official’s sphere of responsibility.

The reality, of course, is that a company can do everything right and still run into serious problems along the way. But, having a strong plan in place on the front end that contemplates what can go wrong and that sets out a plan for managing issues can go a long way towards helping companies successfully navigate and safeguard the route from concept to mine to market. CIM

authors Claudia Feldkamp is an associate at Fasken Martineau in Toronto. She advises her clients in the areas of general corporate law, international trade and multi-lateral institutions, government relations and corporate social responsibility. Kevin O’Callaghan is a partner at Fasken Martineau in Vancouver. He provides strategic advice on Aboriginal, regulatory, environmental and other corporate social responsibility issues.

Streamline your mine with our integrated energy and process management solution Introducing mining process optimization solutions powered by EcoStruxure architecture Optimized energy consumption per ton is your critical success factor Continuous energy management is the most direct path to a mine that is profitable and performs at its full potential. EcoStruxure™ architecture helps you maximize your productivity and quality and allows you to achieve a competitive, sustainable mine that produces more with less.

Energy usage is optimized by an efficient production process EcoStruxure architecture optimizes your energy usage by helping you achieve highly efficient levels of production across your entire mine. We help make your energy safe, reliable, efficient, productive, and green.

Active Energy Management Architecture from Power Plant to Plug™ Maximized output Improved quality

Optimized energy usage Reduced emissions

Make the most of your energy SM

Increase your mine’s efficiency now! Download your FREE white paper today. Visit www.SEreply.com Key Code b461v ©2011 Schneider Electric. All Rights Reserved. Schneider Electric, EcoStruxure, Active Energy Management Architecture from Power Plant to Plug, and Make the most of your energy are trademarks owned by Schneider Electric Industries SAS or its affiliated companies. • Schneider Electric, 19 Waterman, Ontario Canada M4B 1Y2 Tel 416 752 8020 • 998-4224_CA

86 | CIM Magazine | Vol. 6, No. 3

We Protect Lives

&OR MORE THAN YEARS MANUFACTURER OF QUALITY STEEL AND CHEMICAL STRATA CONTROL AND GROUND SUPPORT SYSTEMS FOR THE #ANADIAN MINING AND TUNNELLING INDUSTRIES Roof Bolts and Plates

Anchoring Products

s Fully Grouted Bolt Systems (Rebar, Eclipse) s Point Anchor Bolt Systems (Tension Rebar, HyTec, Double Lok, Continuous Thread) s Conventional Bolt Systems s &RICTION 2OCK !NCHORS s #ABLE 3YSTEMS (Cable Bolts & Roof Trusses) s Surface Support Products (Push Plates - Saab Gripper, Bearing Plates, Roof Mats, Roof Channels, Welded Wire Mesh) s '20 "OLTS 0LATES -ESH (FiRePÂŽ)

s &AST 3ETTING 0OLYESTER !NCHORING 'ROUT (Anchortite) s 2EINFORCED 0OLYESTER 2ESIN #ARTRIDGES (LoksetÂŽ) s (IGH 0ERFORMANCE )NJECTABLE 2ESIN (Carbothix)

Sealants and Coatings s -ASONRY #OATING AND 3EALANTS (AirtiteÂŽ) s &LEXIBLE (IGH 3TRENGTH -EMBRANE 3TRATA 3UPPORT (TekflexÂŽ) s 0OLYMER -ODIlED 3PRAYABLE #EMENT #OATINGS (Teknite & TekflexÂŽ PM)

Cementitious and Chemical Grouts s 0UMPABLE )NJECTION 'ROUT (TekgroutÂŽ) s 5LTRAlNE )NJECTION #EMENT (UltracemÂŽ) s 0UMPABLE 4HIXOTROPIC .ON 3HRINK 'ROUT (Celroc P) s 0UMPABLE #ONSTRUCTION #EMENT (Tekrok) s 0UMPABLE "LAST 0ROOF 6ENTILATION 3EAL 3YSTEMS (TeksealÂŽ) s !DVANCED 0UMPABLE #RIB 3YSTEMS (TekpakÂŽ) s 0UMPABLE &OAMED #EMENT (Tekfoam) s Chemical Grout Systems (Terracol and TerrasetÂŽ Systems)

Minova Canada

6ISIT US AT THE #)- %XHIBITION IN -ONTREAL "OOTH AND PLEASE ATTEND OUR TECHNICAL PRESENTATION ABOUT )NJECTABLE 2ESINS ON 4UESDAY -AY AT IN 2OOM %& !RVIN !VENUE s Stoney Creek, ON L8E 5P1 s Phone 905 643 1166 s Fax 905 643 1695 Email sales.canada@minovaint.com s Website www.MinovaCanada.com

A member of the Orica Group

COLUMNS

| parlons en

Un engagement humain Le développement durable guide les actions quotidiennes de SEMAFO

SEMAFO est une société minière canadienne menant des activités de production et d’exploration aurifères en Afrique occidentale. La compagnie démontre chaque année sa capacité à respecter ses engagements, en atteignant ou en dépassant ses objectifs. Elle s’est engagée à agir consciencieusement afin de devenir un acteur de premier plan dans les pays où elle exerce ses activités. SEMAFO possède trois mines en Afrique : Mana au Burkina Faso, Samira Hill au Niger et Kiniero en Guinée. Nos activités d’exploration s’étendent sur 5 000 kilomètres carrés et, en 2010, notre production aurifère a atteint 261 100 onces. Au-delà de nos activités minières, nous contribuons à l’amélioration de la qualité de vie et au développement des communautés qui nous accueillent; cela fait partie intégrante de notre démarche de développement durable. C’est ainsi que, par des politiques et des programmes éthiques en matière de santé, d’éducation, de développement social et d’environnement, SEMAFO a cultivé au fil des ans un savoir-faire reconnu. Nous travaillons de concert avec nos parties prenantes : les gens, les communautés, les différentes autorités, etc. L’engagement de la compagnie envers le développement durable est un cheminement, une démarche à long terme qui guide nos actions quotidiennes, moyennant constance, rigueur et échanges avec nos partenaires, et ce, dans un esprit d’amélioration continue. 88 | CIM Magazine | Vol. 6, No. 3

Crédit : Fondation SEMAFO

Christelle Masson

Journée où les clés de la savonnerie ont été remises par la directrice générale de Fondation SEMAFO et le directeur national de SEMAFO Burkina Faso.

La plus grande initiative de notre compagnie envers les communautés a été la création, en 2008, de Fondation SEMAFO, concrétisant ainsi les pratiques responsables de SEMAFO. La fondation a développé une expertise en matière humanitaire et a mis sur pieds de nombreux projets créateurs de valeur. Chaque année, jusqu’à 2 pour cent des bénéfices nets de la compagnie sont versés à la fondation au bénéfice des communautés vivant à proximité de nos activités minières. L’éducation, la santé et l’agriculture constituent la pierre angulaire de la fondation, contribuant ainsi à une meilleure qualité de vie pour les com-

munautés desservies. Dans une perspective d’autonomie, les projets de Fondation SEMAFO sont élaborés conjointement avec les communautés. La fondation a connu une croissance exponentielle et jouit à l’heure actuelle d’une réputation et d’une visibilité hors du commun. En plus de la distribution de dons et de matériel, ces projets incluent la construction d’écoles, de cliniques médicales, de puits, la mise en place de cantines scolaires, le soutien à la formation des adultes ainsi que le démarrage de projets générateurs de revenus, tels que l’exportation des produits de karité, de sésame et de paprika. En sa première année de production, le projet Sésame a généré 150 000 $ de revenus pour la communauté. En 2010, la fondation a appuyé le développement du secteur du karité, qui regroupe huit coopératives au Burkina Faso. Cette intervention vise à augmenter les exportations burkinabè

parlons en | COLUMNS « Ensemble pour une société meilleure »

partenariat avec le gouvernement burkinabé. L’alternative SEMAFO étend son action citoyenne à l’ensemble du Burkina Faso solaire offre un potentiel à travers une campagne radio hebdomadaire qui vise à informer attrayant et actuellement souspuis sensibiliser les populations sur 52 sujets relatifs à l’amélioration exploité sur le continent africain. Riche de soleil, le condes conditions de vie, comme la gestion d’activités génératrices de tinent africain utilise rarement revenus et la protection de l’environnement. Les émissions sont l’alternative solaire puisque les réalisées en français, traduites en langues nationales et diffusées coûts de cette technologie sont sur 16 radios dans l’ensemble du Burkina Faso. encore très élevés. Espérant faire mentir ce paradoxe, ce de produits de karité par l’entremise 2008. Ainsi, SEMAFO s’associe aux projet d’énergie renouvelable s’intègre d’activités de renforcement de la compriorités africaines visant à réduire la parfaitement dans le contexte interpétitivité et d’accès au marché. Ainsi, carence énergétique. SEMAFO national qui encourage des projets de les représentants du secteur ont reçu Énergie a piloté des études de préfaisdéveloppement durable. ICM une formation sur les exigences de la abilité dans les trois pays et distribution des produits à base de karité à travers le monde. Ils ont égaleœuvre à la mise ment rencontré des distributeurs à en place d’un Montréal, à Toronto et à New York. La consortium pour Christelle Masson, MBA et spécialiste fondation a aussi offert son soutien la réalisation de en développement durable, gère plusieurs protechnique et financier pour la conl’évolution et la communication du plan struction d’une savonnerie afin de jets, dont la d’action de développement durable de faciliter et d’augmenter la capacité de c o n s t r u c t i o n SEMAFO, tout en rendant compte du d’une centrale production destinée à l’exportation. cheminement concret de l’organisation solaire de 20 Une autre initiative de SEMAFO a en cette matière. été la création de SEMAFO Énergie en mégawatts, en

auteur

May 2011 | 89

COLUMNS

| canadians abroad

Embracing diversity From Peru to West Africa with a Canadian Trade Commissioner Heather Ednie

Credit: Carlos Rojas-Arbulù

After 12 years with the venturing into areas such as federal government’s Trade governance, transparency, Commissioner Service (TCS), sustainable development, Carlos Rojas-Arbulù is living security and human rights.” a dream that began when he With over 150 locations was a child in Peru. “I recall a globally, the TCS often black-and-white news broadworks closely with members cast of the Secretary General of the Canadian minerals of the United Nations, Javier industry. For example, NatPerez de Cuellar, commentural Resources Canada estiing on the aftermath of the mates Canadian mining Falkland Islands conflict investment in Africa to be between Argentina and the around $23 billion dollars, United Kingdom,” he says. over $4 billion of which is in “At 12 years of age, I could West Africa (and even more not grasp the meaning or when factoring in investimportance of this, but the ments in oil and gas). As image stayed with me for such, Rojas-Arbulù’s team years. It has contributed to Carlos Rojas-Arbulù with wife Melanie Monette at the Bandia animal reserve, works continuously with Thies region, Senegal the choices I have made thus Canadian exploration and far and influenced my path.” Today, allowed him to travel extensively mining companies and suppliers of Rojas-Arbulù is a Canadian diplomat through Mexico and Central America. equipment and services. “My work will and works out of Senegal as the ComIn 2005, he was posted to Central involve facilitating the exchange of mercial Counsellor and Senior Trade America as a Canadian diplomat workknowledge, experiences and lessons Commissioner (West Africa) at the ing as a senior trade commissioner learned in the mining industry Canadian Embassy in Senegal, relish(first secretary) at the Canadian between Canada and the local governing learning about life in different parts Embassy in Guatemala, where he was ment and, increasingly, advising comof the world. responsible for the commercial and panies on CSR best practices and investment program. standards, as it is an emerging area of Setting down the road In 2007, Rojas-Arbulù returned to work for the TCS in Africa,” he says. In the late 1980s, Rojas-Arbulù Ottawa to step into the role of Deputy “At other times, it may involve matchmoved with his family to Montreal, Director, corporate social responsibility ing the demand with the supply, to put Quebec. Fresh out of Concordia Univer(CSR), and National Contact Point for Canadian companies in contact with sity in 1997 where he majored in politithe Organisation for Economic Co- potential customers.” cal science, Rojas-Arbulù first worked operation and Development (OECD) as a business development representaKeeping priorities straight Guidelines for Multinational Entertive for a Canadian private sector comRojas-Arbulù’s wife Melanie goes prises. “I began to get interested in the pany in Nicaragua before launching his complexities, challenges and opportuwith him when he is posted to work career with the Department of Foreign nities around Canadian mining investoverseas, as do their two dogs, Lupita Affairs and International Trade Canada and Harry. Although they truly enjoy ment overseas,” he says, explaining his as a junior trade officer in the Canadian the experience such relocation offers, decision to take the job in Ottawa, “parEmbassy in Peru. “It was exciting to it comes with its challenges. “There ticularly because there were several explore the sounds, food, music and is a lot of work involved in preparing cross-cutting themes being touched sights of Nicaragua and Peru,” he for a posting overseas and this has an upon that challenged the traditional recalls. “It brought me face to face with impact on our family’s obligations trade commissioner way of thinking my multicultural heritage, as seen from and routine,” he says, adding that and approach to promoting business. In outside Canada.” often it is who you are leaving behind other words, it is a more holistic and Between 2000 and 2005, Rojasthat makes it a tough decision. coherent approach to supporting CanaArbulù’s career with the TCS in Ottawa “Leaving an assignment after several dian investment overseas, including 90 | CIM Magazine | Vol. 6, No. 3

CALENDAR CALENDRIER

Courtesy: Carlos Rojas-Arbulù

CIM • ICM

Rojas-Arbulù (right) with Oscar Berger, former president of Guatemala (red tie), and officers from WESA in 2006 during a pitch to President Berger on Canadian waste management technologies.

years is never easy, as you grow attached to your colleagues, friends and surroundings. In Melanie’s case, she has had to leave her employment in Canada twice (as a counsellor for children who are victims of sexual abuse and their families) and find new employment abroad or work remotely. “She’s tough and I admire her courage and perseverance,” says Rojas-Arbulù. “Her previous working experiences in Brazil with the Canadian International Development Agency and in Guatemala with the United Nations, has no doubt been instrumental in helping our family cherish this latest adventure in Senegal.” Moving away from family is also tough, but Rojas-Arbulù thanks technology and the occasional trip to Montreal or his family’s visits to Senegal for smoothing things over. “One way of ensuring my family has what it needs is to keep my priorities straight,” he adds. “Family comes first, work comes second. In other words, being available to my family is important to keep the balance in our lives.”

Saskatoon Branch Annual Golf Tourney July 8 | Saskatoon, SK Contact: Jim Corman Email: jim.corman@areva.ca Red Lake Branch Annual Golf Tournament July 23 | Red Lake, ON Contact: Ron Sinkiewicz Email: ron.sinkiewicz@goldcorp.com Sudbury Branch Rudolph Kneer Memorial Golf Tourney August 7 | Sudbury, ON Contact: Christine Bertoli Email: cbertoli@xstratanickel.ca Toronto Branch Frank Grieco Golf Day August 31 | Toronto, ON Contact: Rick Hutson Email: rick@cjstafford.com

AROUND THE WORLD AUTOUR DU MONDE

Delighting in diversity Rojas-Arbulù is proud of his heritage and sees it as an asset. “I am Canadian and I was born in Lima, so I am Peruvian too,” he states. “I speak multiple languages – I’m what you call a neo-Quebecois/Canadian/Peruvian. Canada is a very multicultural country, an open and tolerant society. People from many different ethnic and religious backgrounds call themselves Canadians and call Canada their home, while remaining proud of their heritage.” Having such a diversity of international experience has taught Rojas-Arbulù the most important trait to bring to any new site, job or location – an open mind. “Every time I have lived or worked abroad, the experience has been different,” he explains. “It can be exhilarating because you must find a way to adapt, to make it work for you, and you have to learn the ropes gradually and incrementally. A great lesson for me when I first landed in Senegal, for example, was that it is the ‘land of the Teranga (hospitality) and of the dialogue’ according to my new interlocutors. Greetings, hospitality, dialogue and exchanges of opinions are very important to building the confidence of those with whom I wish to do business.” Rojas-Arbulù’s passion for his job is evident. “Managing and leading a diverse, multi-country, highly experienced team of Trade Commissioners in West Africa is awesome,” he adds. “Being in the field with the troops once again representing Canada – both the challenges and opportunities in serving Canadian companies – gets my adrenaline going. It is terribly exciting. It has been a long and extremely rewarding journey from Peru to West Africa.” CIM

HYDROCOPPER 2011 — 6th International Seminar on Copper Hydrometallurgy July 6-8 | Viña del Mar, Chile www.hydrocopper.cl 6th Southern African Base Metals Conference 2011 July 18-20 | Mpumalanga, South Africa www.saimm.co.za ISEC 2011 — 19th International Solvent Extraction Conference September 3-7 | Santiago, Chile www.isec2011.com Mining Electrical Maintenance & Safety Association Annual Technical Symposium September 7-9 | Clearwater, FL, USA www.miningelectrical.org May 2011 | 91

COLUMNS

| student life

UBC mine rescue team takes the lead A year of firsts for students committed to mine safety awareness

Over the last year, the mining industry has experienced several highprofile incidents around the globe that have highlighted the need for both increased awareness of underground safety and emergency response-trained personnel. To address this issue, at the start of this school year, students in the mining engineering program at the University of British Columbia (UBC) created Canada’s only university mine rescue team, one of only a few student teams in North America. An eight-person squad of students was assembled to be trained in mine rescue, encompassing such disciplines as firefighting, first aid, patient extraction, ropes deployment, smoke exploration and situation risk management. Through the generous support of sponsors (BHP Billiton, Goldcorp, Shell, Total E&P, Imperial Metals, SMS Equipment, Newmont, the Canadian Mineral Processors Society of CIM, Syncrude, MineSight, North American Tungsten and the Association of Professional Engineers and Geoscientists of B.C. [APEGBC]), enough funds were raised to purchase the bulk of the specialized safety equipment and supplies needed to outfit an entire team in the first year. To test its mettle, the newly formed team accepted an invitation to participate in the 1st Biannual University Mine Rescue Competition hosted by the Colorado School of Mines in Denver, Colorado, in February. The team accepted an offer from Goldcorp to train for a week with their Ontario provincial championship mine rescue team based at the Porcupine Mine in Timmins, Ontario. We were trained on the workings of the BG-4 closed-circuit breathing apparatus, as well as on specific tools utilized by a mine rescue team, including thermal imagers, immobilization boards, CAREvent automatic resuscitators and various types of self rescuers. The train92 | CIM Magazine | Vol. 6, No. 3

Courtesy: Rory Grunerud

Rory Grunerud

Team at mine rescue station in Timmins. Kneeling (L to R): Rory Grunerud and Jake Gram; standing (L to R): Kyle Foster, Jetzen Loo, Josh Arnaly, Jesse Newmarch, Jose Martinez and Jeff LaMarsh.

ing included multiple simulations in which complex incidents with evolving situations and danger levels were completed. This fostered teamwork and reinforced skills learned, but more importantly, helped to develop risk management skills. By the end of the week, the training experience had molded each member by arming them with basic knowledge to function and operate as a cohesive mine rescue team. At the competition in Denver, the UBC team competed against both the Colorado School of Mines men’s and women’s teams, and Pennsylvania State University. It was a grueling competition that pushed each team to its mental and physical limits, demanding four hours on oxygen and the extraction of live casualties that weighed in excess of 136 kilograms. It was a fantastic event that exposed the teams to a great deal of safety methodologies, new techniques, communication and teamwork. In the end, our training with Goldcorp paid off as UBC was declared the overall winner. In five skill-based

competitions held the next day, we won three events – rope rescue, patient extraction and fire fighting. With the first operational year complete and a competition victory under our belt, the team is now looking at becoming more involved in the British Columbia provincial mine rescue competition and will hopefully field a demonstration team in the next few years. At the university level, there has been tremendously positive feedback following our debut performance and the dedication shown by the team members to a culture of safety. Hopefully, student mine rescue teams will be created at other Canadian universities in the near future. In the meantime, our team will continue to promote the issue of safety and keep working at perfecting our skill sets. CIM

author

Rory Grunerud is a fourthyear mining engineering student at UBC and founder/captain of the student mine rescue team.

Battling Lake Superior The engineering feat of Silver Islet Mine

t its height, Silver Islet Mine was the envy of the industry, despite the odds stacked against it. It was, after all, perched on a tiny rock off the northern shore of Lake Superior, where it faced a constant bombardment of storms. Every season was a new battle to keep the waves and the wind-blown ice from flooding or destroying the mine. The story begins in 1868, when Thomas Macfarlane led an exploration team through the area on behalf of the Montreal Mining Company. In June, they explored a small group of islands not far from Thunder Bay, but found little of interest. Finally, they stopped at an unassuming, wind-swept rock just 27 metres in length. Cutting through it was a promising vein. They set blasting powder and scattered for what little cover they could find. When they emerged, team member John Morgan spotted silver nuggets glittering in the water. The team followed the vein towards the shore, looking for better access to the ore, but the vein held no silver where it passed through nearby Burnt Island, nor did anything turn up on the mainland. The only access to the silver was from the barren islet. Macfarlane christened it Silver Islet and returned to Montreal with his findings. Enthusiastic about the quality of the silver, Macfarlane recommended that the Montreal Mining Company develop the site. However, they were not sure that an exposed islet would be an ideal location, no matter the quality of the ore. Mining it would take significant investment, not to mention a feat of engineering. They 94 | CIM Magazine | Vol. 6, No. 3

Silver Islet Mine, following its closure in 1883.

agreed to develop the site, but only to make it sellable. Macfarlane was given a tight budget and instructions to improve the property and extract as much ore as possible. He hired two miners and sunk a shaft alongside the vein. He then built a wall of timbers to protect the shaft and a rock-filled crib to support the shaft house. The first battle with the lake came that fall when a heavy storm tested the strength of Macfarlaneâ&#x20AC;&#x2122;s structures. It did not go well: waves crashed over the shaft house and flooded the shaft. Undeterred, Macfarlane rebuilt and continued extracting the silver. When winter approached, he put Morgan in charge and returned to Montreal to report back to his employers. Triumphantly, he handed over the $6,750 worth of silver they had mined over the previous two months and asked for an additional $50,000. The company hesitated. European investors had been reluctant to invest, and the rest of their properties were draining their accounts. Despite the promise of the Silver Islet find, they

were not willing to gamble. They would look for an American buyer. Macfarlane was disappointed in the lost opportunity. The first he would hear about the sale of the property was when William Frue arrived by boat in August 1870. Armed with investment money and an enterprising spirit, Frue went about developing the site with gusto. His men bolted logs together to form a 140-metre-long by four-metrewide breakwater cribbing, filling it with rocks. They built a coffer dam within the breakwater to enclose the mine pit and a platform to serve as a foundation for the mine buildings and machinery. It was not long before these efforts were put to the test: violent storms raged throughout that fall and winter. An October storm destroyed half the breakwater, halting production for three weeks. Frue doubled the width of the cribbing, but ice smashed through it again during a December storm, dumping almost 3,000 tonnes of rock into the lake. March was unforgiving, with storm after storm destroying a total of 15,000 metres of cribbing.

Credit: Thunder Bay Historical Museum Society (No. 972.2.344).

Correy Baldwin

When spring melted the ice, Frue again extended the breakwater – it was now 22 metres wide and supported by five five-metre-high bulkheads facing out at 45 degrees and holding approximately 50,000 tonnes of rock. The workable area on the islet was expanded to over ten times its original size, and the mine camp and town were growing as well, eventually accommodating 600 workers. By May 1872, the pit was 40 metres below the lake’s surface and water was constantly seeping in through the pit walls. Occasionally, the mine flooded, once when the drills hit an underground spring and Frue was forced to upgrade the pumping system again and again. The engine pumps were now operating 24 hours a day. The deeper the mine got, the more nervous the men became about the massive weight of water above them. Many left before freeze-up, fearing the unpredictable destruction of the winter ice. Their concern was not unfounded: every winter, storms hammered Silver Islet. Cribbing was constantly ripped away and buildings were destroyed. It was an endless battle that pushed Frue’s adaptability and ingenuity as an engineer and businessman. By the time he left Silver Islet after five years as superintendent, it had become the most successful mine in the region, and one of the richest silver mines in the world. Those were Silver Islet’s best years. When Richard Trethewey took over in 1875, production had already begun to slow. Soon the vein dried up, leaving Trethewey scrambling to locate more ore. A second vein was discovered in 1878 and the mine was reinvigorated. Still, the amount of silver in the mine was dwindling, and the payroll with it. Meanwhile the familiar struggle with Lake Superior continued. In 1881, a major storm smashed through the breakwater, destroying buildings and flooding the shaft. In the end, Lake Superior would have its way.

In 1883, the winter freeze-up came early and a supply ship carrying the coal for the pump engines failed to arrive, becoming stuck in ice off the coast of Michigan. Silver Islet’s supply would not last until spring. By March, the mine reached its final depth of 384

metres, nearly a quarter mile. The engines stopped and the shaft slowly filled with water. The mine was abandoned, left to the devices of Lake Superior, which, foot by foot, tore away what remained of the Silver Islet Mine. CIM

ADVERTORIAL

Change now or pay soon Targeting diversity to manage the mining labour shortage The ability to respond to continued global demand for Canada’s resources is threatened by several human resources issues which include an aging workforce and challenges in attracting new talent to the sector. The looming shortage has Canadian mining concerned about where to find the talent required to maintain Canada’s status as a world leader in mining and exploration. Today’s career seekers expect more than just competitive compensation – they are looking for a diverse, inclusive and satisfying work environment that will provide challenging work, recognize employee contributions and value alterative perspectives. To assist the industry in developing and implementing programs and policies for diversifying its workforce, the Mining Industry Human Resources Council (MiHR) has developed a three-year project, “SHIFT: Changing the Face of Canada’s Mining Industry.” The first report resulting from this project, is “Take Action for Diversity,” which highlights the insights and perspectives of target groups within the mining sector on current challenges to the inclusion of Aboriginal peoples, new Canadians, mature (transitioning) workers, women, youth and people with disabilities. The information uncovered through the study will be instrumental for MiHR and the Take Action for Diversity Network of partner companies, as they use the findings to develop the tools and strategies to strategically enhance inclusive work environments in their operations.

To join the Diversity Network or for more information on SHIFT, please visit www.mihr.ca or contact Mel Sturk: msturk@mihr.ca

Funded in part by the Government of Canada’s Sector Council Program

May 2011 | 95

The Inaugural Symposium on

SAFETY AND RELIABILITY IN THE MINING AND RESOURCES INDUSTRIES October 11 – 13, 2011 | Westin Hotel | Calgary, Alberta, Canada

CALL FOR PAPERS Topics • Leadership for an Effective Health and Safety Culture • Managing Hazards and Risks • Health and Safety Management Systems • Applications of Behavioral Science and Technology to Improve Safety • Contractor Safety Management • Creating the Vision for Reliability • Building Blocks for a Successful Reliability Program • Tools and Technologies to Enable Reliability

The inaugural symposium on SAFETY AND RELIABILITY IN THE MINING AND EXTRACTIVE RESOURCE INDUSTRIES is a collaborative initiative between the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) and the Society for Mining, Metallurgy & Exploration (SME). This first in a series of annual conferences to be jointly hosted by our respective organizations, CIM and SME recognize the importance and value of facilitating enhanced knowledge-sharing and best-practices exchanges within the North American mining community. Separate conference streams will address topics of safety and reliability with common sessions exploring the synergy between the two. The program will consist of peerreviewed technical papers and presentations of operational cases studies with a focus on the cultural and organizational behaviors needed to achieve best-in-class performance in safety and reliability. The two-day program will begin with a reception on the evening of October 11th, a joint plenary on the morning of October 12th, and a combination of technical sessions and joint discussion forums through October 13th.

• OEM and Vendor Partnerships for Asset Management • Case Studies in Reliability Improvement • Innovative Thinking Towards Best Practices in Safety and Reliability • Cultural and Organizational Impacts; Case Studies in Overcoming Barriers to Implementing Change

Important dates June 30. 2011 Abstract / Paper submission July 15. 2011 Notification of acceptance

Submit your abstract/paper online at: www.cim.org/safetyreliability EVENT MANAGEMENT

Zoltan W. Lukacs Conference Co-Chair - CIM zlukacs@nacg.ca

Robert Washnock Conference Co-Chair - SME Robert_Washnock@fmi.com

Lise Bujold Director of Events, CIM lbujold@cim.org

September 1. 2011 Final submission of camera-ready papers September 15. 2011 Deadline for registration

award winner |

cim news

Paying it forward CIM Vale Inco Medal winner fostering an interest in geology By Correy Baldwin

Credit: Normand Huberdeau / NH Photographes Ltée

Robert Quartermain of geological field study. always wanted to make The fund was named sure he was generous with after the late professor emeritus Arnie McAlliswhat he had. “I’m from ter. “He was certainly the Maritimes,” he says by instrumental in my way of explanation, “and career and my going was told you give back.” into economic geology,” As the recipient of the says Quartermain, “and 2010 Vale Inco Medal (as we were able to build of 2011, “Vale Medal”) the fund in his honour.” Quartermain has been There is also the recognized not only for Quartermain Centre, he his leadership, but for his adds, “an earth science generosity – to the peocentre at UNB that will ple, institutions and comfocus on not only teachmunities that enabled ing and providing him to become what he is resources for its stutoday: a leader in the field dents, but reaching out of precious metals exploto school-aged children ration and development, and someone keen on fos- Robert Quartermain and then-CIM president Michael Allan at CIM Conference & Exhibition 2010. who will be able to visit the centre and hopefully tering an interest in geolget them thinking about a career in ogy in young people and supporting exploration geologist who was transgeology. We have to build into the early their geological education. ferred from North Bay, Ontario, to stage of our scholastic system an Quartermain grew up in St. Vancouver without any experience at understanding and appreciation for the Stephen, New Brunswick, where he all in public companies.” spent his summers working at his Quartermain considers himself just fact that we use metals every day,” he explains, adding, “the consequence of grandfather’s store, being taught the one of a host of successful entreprevalue of money early on. He received a neurs. “This town is full of people using them is that we modify the envibachelor’s in geology from the Univerwho’ve been entrepreneurial that have ronment, and we all need to try and do sity of New Brunswick (UNB) and his good geological technical background that as minimally as we can.” Quartermain also funded a sports master’s in mineral exploration from and have been able to create a lot of medicine centre at UNB, in the hope Queen’s University. After spending shareholder value,” he says. Success, that “some things might be able to polseveral years with Teck Corporation, Quartermain adds, lies in deploying linate between what goes on with geolhe was brought to Vancouver to head shareholder’s money wisely, a love of ogy and sports medicine. We need up a small exploration company called discovery (and focusing that love on healthy geologists.” Silver Standard. He spent 25 years as “things where you might have a bit of In addition, he has contributed to a the company’s president and CEO, success”), not being afraid of taking hockey arena in St. Stephen, a marine turning it into one of the world’s risks and, of course, surrounding biology research station in St. yourself with good people. largest silver companies. Andrews, programs at Queen’s UniverThe success of Silver Standard pro“When I started at Silver Standard, sity, the University of British Columit was a company of two – myself and vided Quartermain the means to give bia’ s Norman B. Keevil Institute of a receptionist – and it had a market back, with much of his efforts focused Mining Engineering, and the Britannia on UNB and the province he grew up cap of around $2 million,” he says. Mine Museum, as well as other private in. He set up a scholarship at UNB to “Ultimately, we took it to a firm of foundations, and work with the Canasupport secondand third-year geolclose to a thousand people with an dian Hemophilia Society. ogy students, as well as the McAllister operating mine, 17 projects in seven Certainly, his contributions have countries around the world, and a Field Trip Fund, which finances field had a positive influence on a great trips to geological sites whereby stumarket cap that reached $2.7 billion – number of people. CIM dents are introduced to the importance things I could be proud of as an May 2011 | 97

The Assembly of First Nations Invites you to attend the:

International INDIGENOUS SUMMIT on ENERGY & MINING June 27-29, 2011 Sheraton on the Falls Hotel

Please mark your calendars for the June 27-29, 2011 Summit. For your early planning, this event will also include discounted early registration fees of $300 for First Nations/Indigenous participants and $500 for corporate participants registered prior to May 16, 2011. For more information about the SUMMIT, please visit the AFN website at www.afn.ca or by contacting Karen Hunter by email at khunter@afn.ca or by telephone at 613.241.6789 ext 203.

The SUMMIT will focus on:

Niagara Falls, Ontario » Sustainable and responsible resource development; » Current and future best practices in energy development, including green energy highlights and carbon market updates; » Economic education related to mining and energy; and, » The many opportunities for First Nations to contribute to the Canadian and world economies. » This event will also feature a sector trade fair.

scholarship winners | cim news

Top of the class Two award-winning students are off to a good start By Marlene Eisner Mary Devine is keeping her options open; Allan Linegar has his career plans already mapped out. Both are Memorial University of Newfoundland students who recently received the CIM Newfoundland Branch Silver and Golden Jubilee scholarships, respectively.

Silver lining

Credit: Allan Linegar

Credit: Susan Hannan

The annual Silver Jubilee Scholarship (this year $2,400) is available to students in their final or penultimate year in earth sciences at Memorial University of Newfoundland. The principal criterion to be considered for the scholarship is scholastic achievement, Mary Devine, left, testing dissolves oxygen levels in a stream for her honours thesis project. Right: Linegar during a visit to a although economic need and drilling rig in Cold Lake character are also taken into account. “The Silver Jubilee Scholarjazz and tap dance classes, as well as stigma about oil and once I got in there, I saw the good side: the focus on ship is based on a recommendation hiking, canoeing, skiing and camping. safety is huge and that’s what I really from the head of the department,” liked about it.” explains Judy Casey, manager of stuGolden opportunity dent scholarships, awards and finanLinegar is attracted to Alberta not The Golden Jubilee Scholarship cial aid at the university. only because of its mountainous ter(this year $2,000) is available to stuDevine, 22, this year’s winner, is in dents from a number of disciplines rain, where he can enjoy his hobbies her fourth year studying earth sciences and is not based on a faculty recomof hiking and snowboarding, but and says that when she graduates in the mendation. Instead, a broad number because of the oil sands sector, which spring, she would like to begin working of students who are eligible for acahe will soon be working in as a tailbefore beginning her master’s degree. demic scholarships are considered, ings engineer for Imperial Oil on the After that, she says the sky is the with the award going to the strongest Kearl Oil Sands Project. “I’m looking limit in terms of her career options. “I student. forward to getting some great field would like to have a job lined up,” she Scholarship winner Linegar, 24, is experience,” he says, “and learning adds, “but probably not in Newfoundin his final year of civil engineering. more about the oil sands mining land. I’m open to anything.” He has always been interested in the industry. I’m excited to be involved in Her interests lie in the chemistry structural side of civil engineering and the startup of a new oil sands mining side of earth sciences, although she thought that would be where his operation.” Winning the award has come in has not ruled out all aspects of the career would take him. His work terms handy for both students. “I used it to mining industry. “I’m really interested changed his mind. pay for tuition and books this term,” in geochemistry and the environmen“I’ve got a lot of experience in oil says Devine. As for Linegar, receiving tal remediation part of mining,” she and gas,” he explains, “After working such a prestigious scholarship was not says. “I love to travel, and that’s a nice with Statoil and ExxonMobil in St. only an honour, but also a welcomed thing about the work – there’s mining John’s, I knew that was what I wanted financial boost. “It completely paid for to do – I loved it. I really liked the type everywhere.” When she is not studyCIM of work and what they did. There is a my last term of school,” he says. ing, Devine keeps busy with ballet, May 2011 | 99

CIM CONFERENCE & EXHIBITION 2012 MINERALS FOR ALL SEASONS

CONGRÈS & SALON COMMERICIAL DE L’ICM 2012 MINÉRAUX EN TOUTES SAISONS

MAY 6 TO 9, 2012 • EDMONTON, AB • 6 AU 9 MAI 2012

SAVE THE DATE

RÉSERVEZ LA DATE www.cim.org/edmonton2012

cim news

CIM welcomes new members Bergen, Tanja, Ghana du Toit, Philip, Saskatchewan Aboagye Frimpong, Rolance, Saskatchewan Adesola, Aderopo, Saskatchewan Alonso, Jean, Ghana Alvani, Shahram, British Columbia Asamoah Afrifa, Obed, Peru Ballantyne, Sheila, British Columbia Bambarén, Alfredo, British Columbia Banfield, Catherine, British Columbia Barriga-Vilca, Abyahan, British Columbia Batanghari, Brendan, Quebec Beck, William John, British Columbia Boucher, Mathieu, Quebec Bourchier, Frazer, Ontario Brousseau, Gilles, United Kingdom Calder, David G., Quebec Chandrasekaran, Raghavan, British Columbia

Charland, Anne, Saskatchewan Chow, John, British Columbia Clarke, Garry, Newfoundland and Labrador Da Costa, Carlos, Quebec D’Aguiar, Damian, Saskatchewan De Guire, Philippe, Niger Duff, Robert, Quebec Ewenla, Sanmi Stephen, Ontario Farid, Karim, British Columbia Fusciardi, Leonardo, Saskatchewan Ghane Ghanad, Iman, British Columbia Gullen, Ken, British Columbia Hamilton, Dave, Saskatchewan Hannah, Kaitlyn, Nova Scotia Hanson, Aric, Ontario Hussain, Zafar, Saskatchewan Islam, Tariqul, Alberta Judd-Henrey, Ian, Ontario Kenyon, Hayley, Saskatchewan Knutson, David, British Columbia Kratchmer, Mark, British Columbia

Kuikka, Helena, Nova Scotia Lindsay, Nicole, Alberta Liu, Hung-Wei, USA Lytle, Murray, Quebec Mandal, Subhadip, Chile Martineau, Norman, Alberta McRae, Paul, Alberta Minhas, Tejvir, Ontario Mirzabozorg, Arash, Alberta Moore, Emily, Saskatchewan Morley, Thomas, USA Mote, Darrell, Nova Scotia Moulton, Robert, Alberta Murray, D. Clark, Ontario Naude, Elize, USA Neubert, Marilyn, Quebec O’Hagan, Alfredo, Ontario Pal Singh Multani, Jatinder, South Africa Parish, Robert, Ontario Patrick, Mubiayi Mukuna, Manitoba Piché, David, British Columbia Prendiville, Ailbe, Alberta Rautiola, Craig Nathan, Ontario

Rawlings, Amber, Ontario Recalde, Andres, British Columbia Riopel, Kaylie, United Kingdom Rioux, Danny, Alberta Ruff, Ferdinand, USA Ryan, Mark, Ontario Salifu, Haruna, Alberta Semjonov, Alina, Ontario Sharifi Haddad, Amin, Ontario Shaw, Jeff, Saskatchewan Sihra, Kamalpreet, Ontario Stare, Melanie, Ontario Stogran, Melissa, Quebec Suarez, Jose, Quebec Temur, Deniz, Saskatchewan Thomas, Richard M., Alberta Thomson, Jarret, Saskatchewan Thornton, Tawnya, British Columbia Vogel, Tyson, Newfoundland and Labrador Wyllie, Stuart, British Columbia Zadakbar, Omid, Newfoundland and Labrador

R REGISTER E G I S TE R TTODAY! O DAY! Connecting Mine Closure Practitioners Around the W World orld

September 18-21, 2011 | Fairmont Fairmont Chateau Lak Lake e Louise | Lak Lake e Louise, Louise, Alberta, Canada

6th INTERNA INTERNATIONAL NATIONAL T CONFERENCE ON MINE CLOSURE Integrating Integrating the the eexpertise xpertise of of eengineers, ngineers, reclamation reclamation scientists, scientists, sociologists, sociologists, ec economists onomists and and environmental environmental specialists specialists Conference Conference program program featuring featuring international international technical technical expertise expertise and and showcasing showcasing industry industr y be best st practices practices Numerous Numerous short short courses courses N Networking et working opportunities opportunities EExciting xciting ssite ite tours to u r s o eclaimed mines mines off rreclaimed

www.mineclosure2011.com ORGANIZED O R G A N I Z E D BY BY

H O S T E D BY BY HOSTED

P O NS O R MARQUIS M A R QU I S S SPONSOR

CIM Mem Save $5b0ers En t e r P r

m o Co d e: CIM M CC

FFOUNDING O U N DI N G ORGANIZATIONS OR G A N I Z AT IO N S

May 2011 | 101

cim news | distinguished lecturer

Searching for the optimal balance Leading the way in the world of superalloys By Alexandra Lopez-Pacheco Mahesh Chaturvedi is recognized as a world leader in the area of superalloys and grain-boundary engineering. His pioneering research and work has led to breakthroughs in superalloy welding. Chaturvedi’s discoveries have had a profound effect on the aerospace industry, and won him more than a few awards along the way. Currently a professor emeritus at the University of Manitoba, Chaturvedi was a Tier 1 Canada Research Chair in aerospace materials (2002-2009) and an NSERC Industrial Research Chair from 1995 to 2005. He was also associate dean of engineering for over a decade and associate vice-president of research. As a professor of materials engineering, he has contributed extensively to materials education through his lectures and was an ASM–IIM Lecturer in 2006. He also received funds from the Canadian International Development Agency to develop a three-year institutional linkage program with Khon Kaen University in Thailand, a five-year linkage program with Beijing University of Aeronautics and Astronautics, and another five-year program with China’s Lanzhou University to improve the teaching of materials science and engineering. He is a speaker in this season’s CIM Distinguished Lecturers Series, sharing his findings from some of his recent research on the role of boron in the design of superalloys. CIM: Why did you decide it was important to research the role of boron in the design of superalloys? Chaturvedi: I was doing research on the joining of aerospace materials and one of the factors I found was that boron is very detrimental to welding. Boron has been used in hightemperature materials to provide high-temperature strength. So the question is, what does boron actually do in these alloys and why do we need it? With that in mind, we started to look at the various aspects that are affected by boron, both the good and the bad, to see if we could come up with the best possible solution – an optimal concentration of boron that could be prescribed for aerospace material. What we found was that, yes, boron is necessary, but not as much as people had been proposing and were starting to use. The goal was to minimize the adverse effects and maximize the beneficial effects. CIM: What are these key adverse and beneficial effects? Chaturvedi: In any manufacturing process, joining is very important. When you weld materials, there is a fusion zone 102 | CIM Magazine | Vol. 6, No. 3

where the actual components melt and are joined together as they solidify. In addition to that, there’s the heat-affected zone. Very often, materials can crack in fusion zones, as well as in the heat-affected zones, after the welding has been completed during the cooling stage. The adverse effect is that boron influences the cracking in the heat-affected zone – the larger the amount of boron, the greater the cracking. The flip side of the coin is that the boron improves the hightemperature properties of the material. For example, nickel superalloys are used for turbine blades in aircraft engines. If you want to raise the engine to improve its efficiency, you need to operate it at a very high temperature and you need materials that can better withstand that temperature – so you increase the amount of boron. In doing so, you improve the mechanical properties of the material at high temperatures, but you can’t weld it. Welding is also used to repair materials. When cracks form you can weld them, but it becomes more difficult to repair if the materials have a high boron content. We have to find the compromise, the optimal balance. CIM: Were you able to identify the optimal concentration for boron? Chaturvedi: Yes, there is an optimal concentration. The interesting thing is that some of these superalloys were developed 50 to 60 years ago when there were not sophisticated methods of conducting research or improving purity. Also, the materials were not as carefully produced. Discovered by “trial and error,” researchers determined that the optimal range was 50 to 84 ppm – and they were right. Now, we also know why they were right. CIM: What does this mean for the metallurgical industry? Chaturvedi: This research will help engine manufacturers and repairers understand why this cracking occurs. Now, the aircraft industry knows and understands this and they’ll be able to make sure that boron doesn’t exceed the optimal amount; if they want to improve the properties of the material, they’ll have to follow another process rather than increasing the concentration of boron. In addition to the aerospace industry, my research can also be applied to gasfired and coal-fired power-generation turbines. CIM: What other research are you working on? Chaturvedi: All of my research is related to high-temperature materials for aircraft engines. I’m now working on single crystal alloys and their weldability and studying “brazing” – another technique used for joining materials. As well, I’m looking at different methods of welding, such as fusion and laser. CIM

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

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

An Introduction to Cutoff Grade Estimation: Theory and Practice in Open Pit and Underground Mines Cutoff grades are essential in determining the economic feasibility and mine life of a project. Learn how to solve most cutoff grade estimation problems by developing techniques and graphical analytical methods, about the relationship between cutoff grades and the design of pushbacks in open pit mines, and the optimization of block sizes in caving methods. Instructor: Jean-Michel Rendu, Executive Consultant, Snowden, Australia • Date: September 7-9, 2011 • City: Montreal

Geostatistical Mineral Resource/Ore Reserve Estimation and Meeting the New Regulatory Environment: Step by Step from Sampling to Grade Control Learn about the latest regulations on public reporting of resources/reserves through state-of-the-art statistical and geostatistical techniques, how to apply geostatistics to predict dilution and adapt reserve estimates to that predicted dilution, how geostatistics can help you categorize your resources in an objective manner, and how to understand principles of NI 43-101 and the SME Guide. Instructors: Marcelo Godoy, Golder Associates, Chile, Jean-Michel Rendu, Executive Consultant, Snowden, Australia, and Roussos Dimitrakopoulos, McGill University, Canada • Date: September 12-16, 2011 • City: Montreal

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

blueprint | cim news

READY, WILLING AND ABLE By Andrea Nichiporuk

How do you ensure the continued growth, relevance and success of an organization like CIM? By systematically evaluating and refocusing your strategic plan to ensure you are responding to your members’ and industry’s needs, and by putting the people, systems and tools in place to support your efforts.

ince last fall, in line with its strategic plan, CIM has been working towards assembling its team, investing in one of its most valuable tools (and assets) – its staff.

Focusing on member services

The team assembled to carry out this plan includes a few familiar faces: membership coordinator Laura Foley, who is responsible for managing the membership database and ensuring constituents needs and requests are met; Robbie Pillo, newly appointed program coordinator – membership services, to develop and maintain communications and programs with CIM branches and student chapters; and Jo-Anne Watier, membership assistant, who recently came onboard full time to manage the retention program and collections.

Marjolaine Dugas, CIM’s new director of membership, has her sights set on growth. “The health of an organization like CIM depends on the strength of its membership base and the organization’s ability to respond to its members’ current and future needs.” It is with this goal in mind that Dugas developed a concrete plan of action to grow CIM’s membership, increase the overall level of satisfaction and optimize processes.

During the development phase of the CRM, Dugas’ staff has been working hard to ensure a continued level of service. The team is also in the process of identifying individual and corporate members’ needs and developing innovative programs to fulfil them. No small feat, a new recruit is expected to come on board shortly to assist with membership initiatives.

Currently working to build and/or populate the new association/contact relationship management (CRM) system are CIM’s IT and membership departments, both of which are newly formed teams.

May 2011 | 105

cim news | blueprint In-house IT expertise “The creation of an IT department within CIM has allowed us to build our internal competences and keep costs down, as we no longer are reliant on outside sources,” says Gérard Hamel, CIM’s new IT director. “We are becoming self-sufficient and this will help us grow.” Hamel’s team comprises Lorent Dione, a web programmer-analyst; Martin Doré, a programmer; and Robert Garcia, a computer and applications analyst. Dione is responsible for developing web applications, including conceptualizing, developing, testing and implementing, as well as overseeing the system after implementation. Assisting in the conceptualization, development and testing is Dione, who will also be called upon to troubleshoot, research solutions and carry out diagnostic tests to ensure the new system runs smoothly. Garcia, on the other hand, is tasked with ensuring the day-today running of CIM National’s IT systems, including troubleshooting and managing and maintaining equipment. While Hamel’s team is busy building the infrastructure, a fourth member (albeit temporary) was needed to tackle the revision of the content of the website, before it could be transferred to the new site. Hartley Butler George is revising and updating existing content and creating new and original content, targeting information to specific audiences to ensure that all content is relevant and useful. With the people in place and systems being developed to support processes, initiatives and future endeavours, CIM is now poised to carry out its strategic plan, ensuring the Institute’s longevity and increasing relevance to not only its members, but the global mining industry. CIM

IT Project Update

by Andrea Nichiporuk

Programming is underway on elements of Phase 1 of the IT overhaul project: • Web service setup (architecture and prototyping) • Authentication and authorization (authentication and username/password recovery) • Member services (user profile and “My CIM Account” creation, accepting membership and renewal payments, and accessing membership directory) • Product sales (shopping cart, related products, checkout, CMMF donations and electronic payment) • Publications and technical resources (publication pricing display and “add to cart” functionality) • Events (event pricing display and event registration) • Societies and branches (“My CIM Accounts” for branches and societies) • Awards (career opportunities and CIM Distinguished Lecturers Program) “From now until the end of the year, we will be working on piecing together these elements,” says Gérard Hamel, CIM’s IT director. He anticipates that by the end of 2011, the first parts of the new website will be live to the public.

STRENGTH IN NUMBERS CIM moves ahead with society reorganization By Hartley Butler George

he secret to CIM’s longevity lies in its ability to adapt to members’ needs within the context of an ever-evolving industry. Today, at 113-years young, the organization is transforming the structure of its societies to revitalize the exchange of knowledge and best practices that has been the foundation of the Institute. At the CIM Council meeting held this past March, the Council approved the reorganization of three of its 12 existing societies.

106 | CIM Magazine | Vol. 6, No. 3

The Metal Mining Society, Coal and Industrial Minerals Society and Oil Sands Society will be amalgamated to create two new groups: the Underground Mining Society and the Surface Mining Society. The Metal Mining Society is set to become the Underground Mining Society and the new Surface Mining Society will be formed from members of the Oil Sands, the Coal and Industrial Minerals and the Metal Mining societies that have an interest in surface mining. This reorganization will take effect after the CIM Council meeting in May.

blueprint | cim news CIM’s Society for Innovative Mining Technologies chair Zoltan Lukacs also believes that in turn, larger, more focused groups will deliver a more relevant program across the board, strengthening CIM’s conferences, meetings and technical content. In addition, the reorganization will relieve the competition for financial and volunteer resources, says Bruce Bernard, chair of the Coal and Industrial Minerals Society.

Gone but not forgotten

Small changes, big impact “The amalgamation is not about fewer societies, it is about a more logical structure to better support our members and their professional aspirations,” says CIM president Chris Twigge-Molecey. He went on to explain that within the three existing societies, several groups share technical, operational, equipment, and management issues, yet they are essentially competing against one another for the same demographic and addressing similar topics in conference sessions. Both new societies will be comprised of several groups with communities and technical issues that are specific to their commodities and geographies. The new structure will incorporate a technical director for each of these commodity groups, such as coal, oil sands, diamonds and base/precious metals, who may collaborate to deliver relevant technical content at events and to CIM publications. Incoming CIM president Chuck Edwards believes that this change will greatly benefit individual members. “By refocusing those who work in the same technical fields, members will have a chance to talk to others in their line of work,” he says. “They will learn new information and make more relevant contacts.”

Metal Mining Society chair Tony George believes that in order to remain relevant and ensure longevity, organizations like CIM have to constantly evaluate how they represent and serve their members. “This changes with time and technology,” he says, “and the societies within the organization have to adapt accordingly.” CIM remains sensitive to its societies’ individual legacies and is encouraging them to find ways to preserve their respective heritages. Going forward, the organization is working towards making such adjustments as easy as possible on its members. The societies affected by this change can choose to dedicate their existing finances to a legacy fund, which would be in the form of a scholarship or an endowment administered by the Canadian Mining and Metallurgical Foundation. A proposal was also made by the Surface Mining Society for the creation of a “heritage” committee, which, if adopted, would work through CIM to preserve the history of the societies.

New beginnings The next step will be to firm up the scope of activities for each society. During the May Council meeting, each society will present its new or updated executive structure, bylaws, funding plans and charter. Once approved, the new societies will become operational and represent the members and industry sectors they serve in a more relevant and efficient way. CIM

May 2011 | 107

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

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

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

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

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

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

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

plan stratégique | cim news

PRÊTE, DISPOSÉE ET COMPÉTENTE Comment assurer la croissance soutenue, la pertinence et la réussite d’une organisation comme l’ICM? En prenant soin d’évaluer et de réorienter son plan stratégique de façon systématique afin de s’assurer de répondre aux besoins des membres et de l’industrie, mais aussi en recourant à des systèmes, des outils et du personnel pour appuyer les efforts déployés.

epuis l’automne dernier, conformément au plan stratégique, l’ICM a travaillé pour former une équipe, en misant ainsi sur l’un de ses outils (et atout) le plus précieux : son personnel.

Les deux équipes récemment formées, soit les services des TI et de l’adhésion, sont présentement à l’œuvre pour constituer et/ou alimenter le nouveau système de gestion des relations avec la clientèle (GRC) de l’association.

Accent sur les services destinés aux membres Marjolaine Dugas, nouvelle directrice des services aux membres, mise sur la croissance. « La santé d’une organisation comme l’ICM repose sur la force de l’ensemble de ses membres et la capacité de l’organisation à répondre aux besoins actuels et futurs de ces derniers. » C’est avec cet objectif à l’esprit que Mme Dugas a mis sur pied un plan d’action concret pour augmenter le niveau de satisfaction des membres, accroître le nombre de membres et optimiser les processus.

L’équipe en question qui doit mettre en œuvre le plan compte notamment des visages familiers : Robertina Pillo, coordonnatrice de programmes, qui veille à développer et maintenir la relation et les programmes avec les sections locales et les chapitres étudiants; Laura Foley, coordonnatrice, est responsable des membres et est en relation avec les sections locales pour la gestion de leur base de données; Jo-Anne Watier, assistante, est responsable de la collection et des programmes de rétention. Pendant la phase d’implantation des outils informatiques, le personnel de Mme Dugas a travaillé très fort pour assurer le maintien du service. À l’heure actuelle, l’équipe étudie les besoins à la fois des sociétés membres, des membres individuels et corporatifs afin de mettre sur pied des programmes novateurs pour les combler. Compte tenu de l’ampleur de cette tâche, un nouvel employé se joindra à l’équipe sous peu pour contribuer à établir des mesures favorisant l’adhésion.

May 2011 | 109

cim news | plan stratégique Spécialistes en technologies de l’information (TI) sur place

Mise à jour relative au projet de TI

« La création d’un service des TI au sein de l’ICM nous a permis d’accroître nos compétences à l’interne tout en minimisant nos coûts, puisque nous dépendons de moins en moins de ressources externes », au dire de Gérard Hamel, nouveau directeur des TI de l’ICM. « Nous devenons de plus en plus indépendants, ce qui contribuera à notre croissance. » L’équipe de Monsieur Hamel se compose de Lorent Dione, programmeur-analyste Web, Martin Doré, programmeur et Robert Garcia, analyste d’applications informatiques. M. Dione a comme mandat de développer des applications Web, ainsi que la conceptualisation, le développement, l’implémentation et le suivi des systèmes après leurs implémentations. M. Doré contribue à la conceptualisation, au développement, à l’évaluation, au diagnostic, à la résolution de pannes, ainsi qu’aux des tests de diagnostic afin de s’assurer que les systèmes fonctionnent convenablement. De son côté, M. Garcia s’assure du fonctionnement quotidien des systèmes des TI nationaux de l’ICM. Il procède au diagnostic des pannes et à l’entretien et maintien du matériel informatique. Pendant que l’équipe de M. Hamel s’affaire à la mise sur pied de l’infrastructure, un quatrième membre (temporaire) était nécessaire pour l’examen des données du site Web avant leur transfert au nouveau site Web. M. Hartley Butler George révise et met à jour le contenu actuel et rédige du nouveau contenu. Il veille à ce que l’information vise des destinataires particuliers afin de s’assurer de sa pertinence et de son utilité. Alors que les membres du personnel sont en place et que des systèmes sont développés pour appuyer les processus, les mesures prises et les projets futurs, l’ICM est maintenant prête à exécuter son plan stratégique pour assurer la longévité de l’Institut et accroître sa pertinence non seulement aux yeux de ses membres, mais devant l’ensemble de l’industrie minière. ICM

Nous avons entamé la programmation des éléments de la phase 1 du projet de révision des TI : • Mise en place d’un service Web (architecture et prototype) • Identification et autorisation (identification et récupération des noms d’utilisateur/mots de passe) • Services destinés aux membres (création d’un profil d’utilisateur et d’un compte « Mon compte ICM » qui accepte les paiements des droits d’adhésion et de renouvellement, et qui permet l’accès au répertoire des membres) • Ventes de produits (panier, produits connexes, fin de session, dons CMMF et paiements électroniques) • Publications et ressources techniques (affichage des prix de publication et fonction « Ajouter au panier ») • Événements (affichage des prix des événements et inscription) • Sociétés et divisions (compte « Mon compte ICM » pour les sociétés et les divisions) • Prix (perspectives de carrières et programme de conférenciers distingués de l’ICM) « À compter d’aujourd’hui, et ce, jusqu’à la fin de l’année, nous travaillerons afin de réunir tous ces éléments », précise Gérard Hamel, directeur des TI de l’ICM. Il prévoit que d’ici la fin de l’année 2011, les premières sections du nouveau site Web seront accessibles au grand public.

LA FORCE DU NOMBRE L’ICM poursuit la réorganisation de ses sociétés

e secret de longévité de l’ICM repose dans sa capacité d’adaptation aux besoins de ses membres au sein d’une industrie en constante évolution. Aujourd’hui âgée de 113 ans, l’ICM procède à la restructuration de ses sociétés afin d’insuffler un dynamisme nouveau au partage des connaissances et des meilleures pratiques de l’industrie, fondement même de l’Institut. À la réunion du conseil de l’ICM, qui s’est tenue en mars dernier, le conseil a approuvé la réorganisation de trois de ses 12 sociétés existantes. La Société de l’exploitation des mines et des métaux, la Société du charbon et des minéraux industriels et la 110 | CIM Magazine | Vol. 6, No. 3

Société des sables bitumineux vont fusionner pour former deux nouveaux groupes : la Société d’exploitation à ciel ouvert et la Société d’exploitation minière souterraine. La Société de l’exploitation des mines et des métaux deviendra ainsi la Société d’exploitation minière souterraine et la nouvelle Société d’exploitation à ciel ouvert sera composée des membres de la Société des sables bitumineux, de la Société du charbon et des minéraux industriels, ainsi que des membres de la Société de l’exploitation des mines et des métaux qui s’intéressent à l’exploitation de surface. Cette réorganisation entrera en vigueur après la réunion du conseil de l’ICM en mai.

plan stratégique | cim news Le président de la Société des technologies minières innovatrices de l’ICM, Zoltan Lukacs, croit aussi que la formation de groupes plus larges et ciblés permettra de fournir un programme systématiquement plus pertinent, améliorant ainsi les conférences, les réunions et le contenu technique de l’ICM. De plus, Bruce Bernard, président de la Société du charbon et des minéraux industriels affirme que la réorganisation contribuera à réduire la compétition au niveau des ressources financières et des bénévoles.

Disparues, mais non oubliées

Changements modestes, effet grandiose « La fusion n’a pas pour but de diminuer le nombre de sociétés, mais plutôt d’offrir une structure plus logique à nos membres en vue d’appuyer plus efficacement leurs aspirations professionnelles », affirme le président de l’ICM, Chris Twigge-Molecey. Il poursuit en expliquant qu’au sein des trois sociétés existantes, plusieurs groupes partagent les mêmes enjeux sur le plan technique, opérationnel, matériel et en matière de gestion, mais qu’ils se retrouvent essentiellement dans un contexte de compétition pour les mêmes strates démographiques et abordent des sujets similaires lors de séances de congrès. Les deux nouvelles sociétés comprendront plusieurs groupes dont les communautés et les enjeux techniques seront propres à leurs produits et leur géographie. La nouvelle structure comportera un directeur technique attribué à chacun de ces groupes de produits tels que le charbon, les sables bitumineux, les diamants et les métaux communs/précieux. Cela permettra ainsi aux groupes de mieux collaborer afin de fournir du contenu technique pertinent aux événements divers et aux publications de l’ICM. Le nouveau président de l’ICM, Chuck Edwards, est persuadé que les membres bénéficieront considérablement de ce changement. « En réunissant ceux et celles qui travaillent dans les mêmes branches techniques, les membres auront la possibilité d’échanger avec d’autres personnes de la même profession », dit-il. « Ils apprendront de nouvelles choses et créeront des contacts plus pertinents. »

Tony George, président de la Société de l’exploitation des mines et des métaux, est de l’avis que pour s’assurer de la longévité et de la pertinence d’organisations telles que l’ICM, une réévaluation périodique de la manière dont elles représentent et servent leurs membres est essentielle. « Ceci évolue avec le temps et les technologies », dit-il, « et les sociétés au sein de l’organisation doivent s’adapter en conséquence. » L’ICM demeure sensible à l’apport individuel de chacune de ses sociétés et les encourage à trouver des moyens pour préserver leurs patrimoines respectifs. Allant toujours de l’avant, l’organisation tente de faciliter autant que possible de tels changements pour leurs membres. Les sociétés touchées par cette modification peuvent choisir de consacrer leurs finances actuelles à un fonds du patrimoine, sous forme de bourse ou de fondation gérée par la Fondation canadienne des mines et de la métallurgie. La Société d’exploitation à ciel ouvert a proposé la création d’un comité « patrimoine »; si cette proposition était adoptée, le comité travaillerait avec l’ICM à la préservation de l’histoire des sociétés.

Nouveaux départs La prochaine étape sera de limiter les champs d’activités de chaque société. Dans le cadre de la réunion du conseil du mois de mai, chacun(e) présentera sa structure de direction, ses règlements administratifs, ses programmes de financement et ses chartes, qu’ils soient nouveaux ou simplement remis à jour. Une fois approuvées, les nouvelles sociétés deviendront opérationnelles et représenteront de manière plus pertinente et efficace les membres et les secteurs de l’industrie qu’elles servent. ICM May 2011 | 111

HISTORY OF

economic geology The foundations of modern economic geology (Part 3) By R. J. “Bob” Cathro, Chemainus, British Columbia

The time has come when scientific research is to assume its true position… the physicist, the geologist and mineralogist, the chemist, the engineer, are as essential to success as the blast furnace itself… We summon to our aid all that science can afford, mechanical ingenuity devise, money purchase and energy and ability achieve, and when this is done, we fain must confess how little we have accomplished and how little we know compared with the vast possibilities that lie before us.”

Two other prominent mining engineers who made important contributions to the emerging field of economic geology were Rossiter W. Raymond and Richard P. Rothwell. Both had received unusually broad educations. Rothwell (18361901), the eldest by four years, was born in Oxford, Ontario. After studies at Trinity College in Toronto, he graduated in civil engineering from the Rensselaer Polytechnic Institute (Troy, New York). He then took a three-year course at the Imperial School of Mines (Paris) followed by further studies at the Bergakademie (Freiberg, Germany). Raymond (1840-1918) was born in Cincinnati and educated at the Brooklyn Polytechnic Institute, the Bergakademie, and at Heidelberg and Munich universities. In 1868, he earned a PhD from Lafayette College (Easton, Pennsylvania); he was a lecturer on economic geology there from 1870 to 1882 and also taught the ~Pechin, 1872 entire course on mining engineering for one year. In addition, he became an expert on mining law and was admitted to the bar of the New York Supreme Court and the Federal District and Circuit courts in 1898, and lectured on mining law at Columbia University in 1903. Both men recognized that the technical capacity of the industry had to grow in order to provide the raw materials for an increasingly complex industrial economy. They were instrumental in organizing a meeting in Wilkes-Barre, Pennsylvania, on May 16, 1871 to establish the American Institute of Mining Engineers (AIME), where the 22 men present chose Rothwell as provisional chairman and Raymond as provisional secretary. Wilkes-Barre, where Rothwell lived, was close to the Wyoming Valley coalfield and an important Pennsylvania mining centre. At the first business meeting the following day, the members present approved the credentials of 71 applicants as associates. Pennsylvania-based engineers filled 13 of the 18 elected positions, with Raymond serving as a vice-president and Rothwell as a manager (Raymond soon took over the presidency when the elected president retired due to ill health, as expected). Rothwell then delivered the Institute’s first technical paper titled “The Waste of Coal in Mining.” The next day, three more papers were presented, including one by Raymond on stamp milling. The first volume of the Transactions, containing the 17 papers presented at the Wilkes-Barre meeting and another conference at Bethlehem, Pennsylvania, included six that dealt with mining methods (including one on diamond drilling), five on geological topics, four on milling and metallurgy, and two on smelting. The year 1871 was a significant time for the creation of AIME. It was a crucial period for the U.S. mining industry, which was dominated by the production of bituminous and anthracite coal, petroleum, salt, pig iron, gold and silver. The Drake well, near Titusville, Pennsylvania, had been discovered 12 years earlier, with the oil used mainly for kerosene lamps. The light fraction, known as gasoline, was something of a nuisance, and refiners produced as little of it as possible. The first electric light bulb was still eight years in the future, and the gasoline-powered automobile did not arrive until 1892. Pig iron was mostly produced from magnetite ores in the eastern states, which would soon be replaced by high-quality hematite ores from Architect’s drawing of the Engineering Societies Building at 29 Michigan. Steel production was about to grow substantially as it became West 39th Street, New York, opened in 1907 (Parsons, 1971) 112 | CIM Magazine | Vol. 6, No. 3

HISTORY OF

economic geology New York. Canada hosted seven: Montreal, September 1879; Halifax, September 1885; Ottawa, October 1889; Montreal, February 1893; Canada, August 1900; Vancouver plus field trips in British Columbia and Yukon, July 1905; Toronto, July 1907; and Canada again in August 1923. Meetings were also held in Mexico in 1901, Richard P. Rothwell London in 1906 and Panama (1836-1901) in 1910. All papers were read before a single plenary session. AIME may have invented the modern technical meeting format by invariably combining the technical sessions with visits to mines, quarries and plants of all sorts, including concentrators, smelters, rolling mills, oil refineries, navy yards and cement plants, as well as mining schools, research laboratories and museums. On several occasions, such as the Canadian meetings, the Institute arranged special boats or trains for extended excursions over large regions. Membership in the Institute increased steadily to about 8,500 in 1922, declined to 7,000 by 1935 and then grew quickly to 35,000 in 1970. Some of AIME’s more notable events include: establishing temporary headquarters for the Centennial Exposition in Philadelphia in 1876, and participating in the World’s Columbian Exposition in Chicago in 1893 to raise funds to support the mining and metallurgical departments attending the World Engineering Congress, held in conjunction with the Chicago exposition. After renting several cramped offices in New York, the Institute moved into rented space in the new Phelps Dodge building in 1899. The following laconic and momentous letter was received in 1904: Photos: AIME

recognized as superior to iron for the production of rails for the railways. John Roebling had just built the first suspension bridge, at Cincinnati, from iron and proceeded to build a much longer bridge between Brooklyn and Manhattan entirely of steel. The highest buildings were massive structures of up to eight or Rossiter W. Raymond 10 stories built of natural (1840-1918) stone; the first skyscrapers built with steel frames commenced 20 years later. The small market for copper was supplied almost entirely by native copper mines in Michigan until Butte began to supply the growing needs of the electric power industry around 1890 (Cathro, 2009). Butte was still a silver camp when AIME was formed. Portland cement was manufactured in the United States for the first time in 1871 at a small plant in Allentown, Pennsylvania. Its market soon expanded tremendously as concrete became indispensable for construction and road building. Three mineral products of vital importance in an industrial economy were unknown in the U.S. in 1871 – sulphur, aluminium and magnesium. Raymond, who was described as ”a most able and beneficent autocrat,” dominated the Institute during its first 40 years. He served three terms as president and was secretary for 27 years (1884-1911), during which time he edited the first 40 volumes of the Transactions. He also presented more than his share of papers and discussed others on almost every subject. His amazing versatility was credited partly to his service from 1868 to 1876 as U.S. Commissioner of Mining Statistics, which required repeated visits to western mining districts. Equally important was his ability to absorb details of geology, mine operation and ore treatment. By presenting mining geologists around the world with a prominent venue for publishing their observations and research, the importance of AIME and the Engineering and Mining Journal (EMJ) to the emergence of economic geology as a new branch of the science is impossible to exaggerate. According to Parsons (1971), “In Volume 1, geology, metal mining, ore dressing, and nonferrous metallurgy were all adequately represented. The first 40 volumes of Transactions that appeared up to 1911 were generally recognized as the most extensive and authoritative library extant on engineering and technology in the mineral industry.” The importance of these meetings and publications to those working outside North America was obviously vital, and the Institute was eventually duplicated in most major mining countries. In the first 40 years, 99 general meetings were held, most of them occupying several days and some extending for a much longer period. Only 12 were held in

“Gentlemen of The Mechanical Engineers, Institute of Mining Engineers, Institute of Electrical Engineers, Engineers Club of New York: It will give me great pleasure to devote, say, one and a half million dollars for the erection of a suitable Union home for you all in New York City. With best wishes. Very truly yours, Andrew Carnegie” The American Society of Civil Engineers, which already owned its own building, chose not to participate, and the Engineers Club decided to build its own building nearby with assistance from Carnegie. Land was purchased at 29 West 39th Street near the New York Public Library, with funds separate from the Carnegie gift, and the new

May 2011 | 113

HISTORY OF

economic geology headquarters, named the Engineering Societies Building, was ready for occupancy in April 1907. Two of its main features were a library occupying most of three floors and an auditorium seating 900. Members of the founding societies living in the United States or Canada could borrow up to three volumes for up to two weeks for 25 cents per volume per week. In 1916, the Civil Engineers changed their minds and moved in as well, together with several smaller engineering societies that rented space. In the words of Parsons (1971): “The Engineering Societies Building is the recognized focal point for the engineering profession in the United States. Without unbecoming conceit it may be said that no engineering centre elsewhere in the world rivals it in importance.” The 1918 death of Raymond, known as the ”Grand Old Man of the Institute,” was marked by a memorial service to pay tribute to his contributions to the professional development of mining engineering and economic geology (Rickard, 1920). It was held at the Institute’s New York office in February 1919. Among the dozen speakers were such dignitaries as James F. Kemp, professor of geology, and Henry M. Howe, professor of metallurgy, both from Columbia University. Henry S. Drinker, president of Lehigh University, described Raymond as “one of the most remarkable cases of versatility that our country has ever seen – sailor, soldier, engineer, lawyer, orator, editor, novelist, storyteller, poet, biblical critic, theologian, teacher, chess player – he was superior in each capacity. What he did, he always did well.” Among the high praises given to Raymond were several that applied to his geological contributions: “All technical writing in the English language has felt … the inspiration that he gave while editor of the Transactions”; “he induced the officers of the Geological Survey to present their scientific induction to the Transactions in a form that rendered them attractive to the mining profession”; “he left an enduring mark on the jurisprudence of mining … (and) achieved distinction as an expert witness in the litigation arising from attempts to apply the law of the apex”; and “by his understanding of geology, his knowledge of Western mining conditions, and the zest with which he pursued the application of geology to mining, he aided greatly in exciting intelligent interest in the genesis of ore deposits.” While the career and contributions of Richard Rothwell were also outstanding, those of Raymond overshadowed his accomplishments, like those of all his peers. In addition to his 28-year term as editor of the Engineering and Mining Journal, Rothwell was also the publisher of an annual series titled “The Mineral Industry: Its Statistics Technology and Trade.” In 1892, he served as president of AIME. He was also an inventor who developed some new machinery for making wire rope, based on experience gained while working for a cable and wire rope manufacturer in London. After he returned to the United States, he worked for nine years in the Pennsylvania coalfields. 114 | CIM Magazine | Vol. 6, No. 3

Acknowledgments The early history of the AIME is mostly derived from Parsons (1971), and Rickard (1920) provided much of the biographical information about Raymond. CIM

References Cathro, R. J. (2009). Butte, Montana (part 2). CIM Magazine, 4(3), p. 81-83. Parsons, A. B. (1971). History of the Institute, Part I: 1871-1946. Centennial History of the American Institute of Mining, Metallurgical and Petroleum Engineers 1871-1970. New York: AIME, p. 7-135. Pechin, E. C. (1872). Quotation from a paper presented at the Sixth General Meeting of AIME in Pittsburgh, October 1872, and published in the Transactions. In Parsons (1971), p. 13. (Pechin was a steelmaster based in Dunbar, Pennsylvania) Rickard, T. A. (Ed.) (1920). Rossiter Worthington Raymond: A Memorial. New York: The American Institute of Mining and Metallurgical Engineers, 95 p.

HISTORICAL

metallurgy Social problems in the mining industry: a historical essay (Part 3) By Fathi Habashi, Laval University, Quebec City

Ashio miners’ riot in Japan (1907) In the 1890s, the Ashio Copper Mine was releasing caustic effluents into the Watarase and Tone rivers, thus destroying large portions of the Kanto Plain. With the livelihood and health of thousands of farmers at stake, the case quickly became a problem for Meiji social reformers. A decade later, in 1907, the Ashio miners erupted and went on a three-day riot, an unprecedented event in Japanese labour history.

Iquique Massacre in Chile (1907) In the early 1900s, the nitrate mining companies in Chile exercised extreme control over their employees. Workers Confrontation in South Wales repeatedly petitioned the government to bring about improvements in their living and working conditions; however, their reluctance to inter- the centennial anniversary of the Iquique Massacre by estabvene brought about massive demonstrations. On Decem- lishing a national day of mourning. ber 10, 1907, a general strike broke out in the Tarapacá Province. Thousands of striking miners travelled to Tonypandy riots in South Wales (1910-1911) Iquique and set up camp at the at the Domingo Santa María The Tonypandy riots of 1910 and 1911 were a series of School. On December 16, thousands of striking workers violent confrontations between coal miners and police from other industries arrived in support of the nitrate min- that took place at various locations in and around the ers. On December 21, acting on the instructions received mines in South Wales. Conflict arose when the Naval Colfrom the Minister of the Interior, the army commander liery Company opened a new coal seam at the Ely Pit in informed strike leaders that the strikers had one hour to Penygraig and the owners began claiming that the miners disband or be fired upon. But the strikers stood firm. An were deliberately working slowly. The miners, however, order was given and the Chilean army opened fire on the argued that the new seam was difficult to work and strikers and their accompanying families. The death toll because they were paid according to tonnage of coal resulting from the massacre is estimated at more than removed (as opposed to hourly), working at a slower pace 2,000. The government ordered that the dead be buried in would be to their disadvantage. The miners went on a mass grave in the city cemetery. The ensuing reign of ter- strike, but in August 1910, the company posted a lock-out ror paralyzed the workers’ movement, and for more than a notice at the mine. decade, any knowledge of the incident was suppressed by Riots ensued and on the evening of November 8, 1910, the government. strikers smashed windows of mining officials and those of The nitrate miners’ strike was one of a series of strikes the shops in the town. The owners then called in replaceand other forms of unrest that took place at the beginning of ment workers. The miners responded by picketing the work the 20th century, chief among them being the strike in Val- site and were soon joined by thousands of others who had paraíso in 1903 and the meat riots in Santiago in 1905. In succeeded in shutting down all the local pits, except for one Chile, the workers’ movement in general, and syndicalism in – Llwynypia Colliery. Military support from then British particular, started with the nitrate miners. However, it was Home Secretary Winston Churchill was requested and only in 1920 that minimum labour standards, such as set- troops were sent in to control the situation. In the end, ting the maximum length of the work day, started to be nearly 80 policemen and more than 500 others were injured; enacted. In 2007, the Chilean government commemorated only one miner died as a result of his injuries.

May 2011 | 115

HISTORICAL

metallurgy Ludlow Massacre in Colorado (1913) One of the bloodiest labour conflicts in Colorado’s history was the massacre at Ludlow, located 19 kilometres northwest of Trinidad. While relations between coal miners and mining corporations in the state had been poor for more than a decade, it was the refusal of John D. Rockefeller’s Colorado Fuel and Iron Company and several smaller mine operators to recognize the union that spurred more than 8,000 miners to strike in September 1913. They demanded union recognition, a 10 per cent wage increase and enforcement of the eight-hour day. Evicted from company-owned housing, the striking miners, comprised mostly of Slavic, Greek and Italian immigrants, formed their own tent colony. Over the next several months, sporadic violent confrontations between miners and the state militia marred the coalfields. Despite federal mediation efforts, John D. Rockefeller, Jr. refused to concede. On April 20, 1914, a day-long gun battle broke out between the state militia and miners, culminating in an attack on the tent colony that took the lives of 10 male strikers, two women and 12 children. Over the next several days, miners retaliated by setting fire to mine buildings. By the end of the month, U.S. president Woodrow Wilson ordered federal troops to Ludlow. After more than six months of unsuccessful mediation, miners called off the strike. In response to the Ludlow massacre, leaders of organized labour in Colorado issued a call to arms, urging union members to acquire all the arms and ammunition legally available; a large-scale, 10-day guerrilla war ensued. Still reeling from the murder of their women and children, between 700 and 1,000 enraged and grief-stricken strikers attacked mine after mine, driving off or killing the guards and setting fire to buildings. Hundreds of militia reinforcements rushed back into the strike zone. The fighting ended only when Wilson sent in federal troops. At least 50 people,

including those at Ludlow, were killed during those ten days. The union finally ran out of money and called off the strike on December 10, 1914. In the end, the strikers failed to have their demands met, the union did not obtain recognition, many striking workers were replaced by new workers, and 332 strikers were indicted for murder. The strike had a lasting impact both on conditions at the Colorado mines and on labour relations nationally. Rockefeller hired labour relations’ experts to develop reforms for the mines and towns, which included paved roads and recreational facilities, as well as worker representation on committees dealing with working conditions, safety, health and recreation. From that point forward, there was to be no discrimination of workers who had belonged to unions or prohibiting the establishment of a company union. The Rockefeller Plan was accepted by the miners in a vote. Today, Ludlow is a ghost town. The site where the massacre occurred is owned by the United Mine Workers who erected a granite monument in memory of the striking miners and their families who died on April 20, 1914.

Minnesota’s Iron Range strike (1916) In 1907, a large uprising in the struggle for workers’ rights and fair wages was crushed with the help of strikebreakers; but by 1916, Minnesota mine workers were poised to confront the steel trust once again. Almost 10,000 mine workers went on strike. U.S. steel companies on the Iron Range deputized 1,000 special mine guards and strikebreakers to keep the picket lines open. Bloodshed soon followed. In the town of Virginia, where the strike was headquartered, armed company thugs confronted a group of picketers and opened fire, killing one miner. Several thousand mourning workers marched from Virginia to the fairgrounds in Hibbing where encomiasts urged the

Coffins are marched through Trinidad, Colorado, at the funeral for victims of the Ludlow massacre. 116 | CIM Magazine | Vol. 6, No. 3

Ludlow Massacre monument

HISTORICAL

metallurgy strikers to maintain the struggle and fight back in spite of company repression. The mining companies refused to recognize any of the strikers’ demands. After futile negotiations between U.S. steel companies and local businessmen and public officials in support of the strikers, the workers looked to the federal government. Mediation efforts broke down and, with winter fast approaching, the miners voted to end their strike on September 17, 1916. Although heralded as a defeat, the workers’ bold confrontation struck fear in company owners who, by mid-October, granted a few of the strikers’ primary demands.

The deportation from Bisbee, Arizona (1917) Conditions in the Arizona copper mines owned by Phelps Dodge Corporation were difficult, and mine safety, wages and living conditions at the camp were poor. During the winter of 1915-16, a successful four-month strike in the Clifton-Morenci district led to widespread discontent and unionization among miners in the state. In May 1917, the miners presented a list of demands to Phelps Dodge that included an end to blasting while men were in the mine and to discriminating against union members. The company refused and a strike was scheduled to begin on June 26, 1917. When the strike occurred, not only did the miners at Phelps Dodge walk off the site, they were joined by workers from other mines – more than 3,000 of them in total. The president of Phelps Dodge at the time was Walter S. Douglas, son of James Douglas, the developer of the Copper Queen Mine. Walter Douglas, also president of the American Mining Congress, an employer association, had won office by vowing to break every union in every mine. He ordered his Phelps Dodge mine superintendents to remove the miners from the town. More than 100 men were kidnapped and held in the county jail. Later that day, 67 of them were deported by train to California. On July 11, 1917, the town’s sheriff met with Phelps Dodge executives to plan the deportation of 2,200 men from Bisbee and the nearby town of Douglas. The next day, deputies arrested every man on their list, as well as any man who refused to work in the mines, forcing them at gunpoint to board train wagons. The miners were housed in tents until September 17, 1917, when a handful returned to Bisbee. In October 1917, U.S. president Wilson appointed a commission headed by the Secretary of Labor to investigate labour disputes. In its final report, the commission denounced the deportation. On May 15, 1918, the U.S. Department of Justice ordered the arrest of 21 Phelps Dodge executives, Calumet and Arizona Company executives, and several Bisbee and Cochise County elected leaders and law enforcement officers. Among those arrested was Walter Douglas. Since it was claimed that no federal laws had been violated and that protecting citizens’ right to movement was a state function, some workers filed civil suits; however, the first jury felt that the deportations had been good public policy and refused to grant relief. CIM May 2011 | 117

TECHNICAL ABSTRACTS

CIM Re-emergence of resin in pulp with strong base resins as a low-cost, technically viable process for uranium recovery J. Brown, SGS Minerals Services, Lakefield, Ontario, J. R. Goode, Aurora Energy Inc., Toronto, Ontario, and C. Fleming, SGS Minerals Services, Lakefield, Ontario

Basics of dynamic key performance indicators for haulers in motion T. G. Joseph, University of Alberta, Edmonton, Alberta

journal

ABSTRACT Data were produced from two uranium project studies that were conducted in 2008, both involving uranium recovery from leached slurry by resin-in-pulp (RIP) with strong base resins. In both studies, excellent metallurgical results were produced. The loaded resins were eluted with strong sulphuric acid and recycled through RIP circuits in an integrated process. Resin losses by either abrasion or mechanical breakage were immeasurably low. Metallurgical results are presented, along with a case study economic analysis of RIP versus the alternative processes of counter-current-decantation or filtration and solvent extraction. RÉSUMÉ Des données ont été produites à partir de deux études effectuées en 2008 sur des projets d’uranium, les deux impliquent la récupération de l’uranium d’une boue lixiviée par résine en pulpe (RIP) utilisant des résines à forte sélectivité. Dans les deux études, les résultats métallurgiques étaient excellents. Les résines chargées ont été éluées avec de l’acide sulfurique fort et recyclées dans des circuits RIP dans un procédé intégré. Les pertes de résine, par abrasion ou par bris mécanique, étaient sous le point de détection. Les résultats métallurgiques sont présentés avec une étude d’une analyse économique de la RIP par rapport aux procédés alternatifs de décantation à contre-courant ou de filtration et extraction par solvant. ABSTRACT The Canadian oil sands provide some of the harshest mining conditions in the world. As operations demand ever bigger tools, the toll on large mobile mining equipment is high, with structural life often half of that expected. Soft ground conditions predominantly lead to fatigue failure scenarios, poor stability, and inconsistent payload evaluations. These challenges are not solely a concern for Canadian oil sands mines; there are far-reaching implications for surface mining equipment in any poor ground operating environment. This paper focuses on the basics of payload evaluation, motion response, and a simple estimate of structural life for haulers. RÉSUMÉ L’exploitation des sables bitumineux canadiens s’effectue dans des conditions parmi les plus difficiles au monde. Alors que les exploitations exigent des outils de plus en plus gros, le fardeau sur les gros équipements miniers mobiles est lourd, de sorte que la durée de vie structurale est souvent la moitié de celle attendue. Les conditions molles du terrain conduisent essentiellement à des scénarios de rupture par fatigue, à une mauvaise stabilité et à des évaluations variables de la charge utile. Ces défis constituent non seulement une préoccupation des exploitations canadiennes de sables bitumineux, ils sont aussi lourds de conséquences pour les équipements miniers de surface dans tout environnement de travail difficile. Le présent article cible les techniques de base pour l’évaluation de la charge utile, la réponse au mouvement et une simple estimation de la vie structurale des haveuses.

Revisiting ground vibrations due to mining equipment motion T. G. Joseph, University of Alberta, Edmonton, Alberta, and M. Welz, JPi, Edmonton, Alberta

ABSTRACT This paper evaluates the potential of passive seismic monitoring to correlate mining equipment operation with oil sands surface response, with a mining hauler as the seismic source. When applied to moving haulers, this action-reaction approach is complex. Vibrations from on-board equipment, such as pumps and tires, dirty the signal with noise. To facilitate any correlation, the signal must be cleaned up. Existing geophysical analytical techniques were manipulated to evaluate the noise problem and to filter sufficiently to permit an evaluation of whether a mining equipment action–ground response relationship is in fact discernable.

RÉSUMÉ Le présent article évalue le potentiel de la surveillance sismique passive pour établir une corrélation entre l’opération des équipements miniers et la réponse de la surface des sables bitumineux, la haveuse minière servant de source sismique. Lorsqu’elle est appliquée à des haveuses en mouvement, cette approche action-réaction est complexe. Les vibrations provenant d’équipements tels que les pompes et les pneus, embrouillent le signal. Le signal doit être nettoyé pour faciliter toute corrélation. Les techniques analytiques géophysiques existantes ont été travaillées pour évaluer le problème du bruit et le filtrer Excerpts taken from abstracts in CIM Journal, Vol. 2, No. 2. suffisamment afin de pouvoir déterminer si la relation de réponse Subscribe — www.cim.org entre l’équipement en action et le sol est en fait discernable. May 2011 | 119

professional directory INNOVATIONS SHOWCASE Two-stage sampling system

Quality control McLanahan Corporation will be present at the 2011 CIM Conference & Exhibition to highlight and discuss their full line of equipment. A new product developed by McLanahan Sampling Division is the lab mill crusher. This small but rugged crusher is used for pulverizing samples of coal for lab analysis and complements their full line of belt samplers. McLanahan designs & manufactures the largest selection of roll crushers, a wide range of classifying equipment, feeder-breakers, rotary breakers, state of the art sampling systems, as well as process systems utilizing pumps, cyclones, filter presses and various hydraulic classifiers. McLanahan Corporation supports its manufacturing base using the latest engineering CAD systems, PLC software programming, finite elemental analysis of designs, electrical, mechanical and process engineers, and a dedicated field service support staff. With an on site foundry and complete machining, fabrication, assembly and electrical departments, just about everything can be done in-house to ensure quality control and customer satisfaction.

Headquartered in Hollidaysburg, Pennsylvania, McLanahan Corporation supports a global market via divisional offices in Tennessee, Florida, Booth # 0420 and operations in Australia.

Water treatment specialists for the mining industry. Âť Clean technologies for metal recovery and sulphate removal Âť Ĺ˝ĹľĆ&#x2030;ĹŻÇ&#x2021; Ç Ĺ?Ć&#x161;Ĺ&#x161; Ć&#x152;Ä&#x17E;Ĺ?ĆľĹŻÄ&#x201A;Ć&#x;Ĺ˝ĹśĆ? Ä&#x201A;ĹśÄ&#x161; Ć&#x152;Ä&#x17E;Ä&#x161;ĆľÄ?Ä&#x17E; Ä&#x17E;ĹśÇ&#x20AC;Ĺ?Ć&#x152;Ĺ˝ĹśĹľÄ&#x17E;ĹśĆ&#x161;Ä&#x201A;ĹŻ ĹŻĹ?Ä&#x201A;Ä?Ĺ?ĹŻĹ?Ć&#x;Ä&#x17E;Ć? Âť Lower life cycle costs

Tel: (506) 328-4381 Fax:(506) 328-3430

www.bioteq.ca 1-800-537-3073

10:25 AM

x x x x

ÂŽ

Bridgestone Canada Inc. Eastern Canada 705-266-4323 Western Canada 604-787-3294, 780-982-0656

120 | CIM Magazine | Vol. 6, No. 3

2UH 5HVHUYH 0RGHOLQJ 0LQH 3ODQQLQJ 3URMHFW (YDOXDWLRQ )HDVLELOLW\ 6WXGLHV

6HUYLQJ 7KH 0LQLQJ ,QGXVWU\ )RU <HDUV 7HO ZZZ LPFWXFVRQ FRP

index IN THEadNEXT ISSUE

IFC 3 45 24 31 36 17 76 OBC IBC 11 7 49 55 33 20 39 27 47 75 10 69 67 35 13, 42 46 78 93 53 44 72

3M 23 Agnico-Eagle Mines Limited 81, 95 AMC Consultants 87 AMEC Americas Ltd. 57 Atlantic Industries Limited 15 BBA 61 Bestech 64 BioteQ 71 Boart Longyear 77 Bridgestone 63 Canadian Dewatering LP Caterpillar 84 Cattron Group 86 International Ltd. 73 DMC Mining Services 19 EBA Engineering 22 Endress+Hauser 18 Eriez Magnetics 41 Flanders Electric Motor Service 66 FLSmidth 9 Garda 29 GEA Barr-Rosin GIW Industries 83 Golder Associates 85 HCI Steel Building 25 Systems 37 Imperial Oil Limited Infosat Communications 120 John Meunier Inc. Kinecor 120 Knight Piesold March Consulting Associates Inc. McElhanney Land Surveys Ltd.

Metso Minerals Industries, Inc. MiHR Minova North American Construction Group Outotec Polydeck Screen Corporation PTI Group Queen’s University Redpath Group Rio Tinto Iron and Titanium Inc. Romquest Technologies Schneider Electric Sensear SEW-Eurodrive SMS Equipment Snowden Superior Propane Taggart Global LLC United Central Industrial Supply Co. Universal Fabric Structures Wardrop Weir Minerals - Linatex Westeel Xstrata Technology Canada Innovation Showcase McLanahan Corporation

Professional Directory & Product Files B.I.D. Canada Ltd. BioteQ Bridgestone Independent Mining Consultants Praetorian Construction Management

Courtesy of Copper Mountain Mining Corporation

ADVERTISERS

The Copper Mountain Mine, shown here in October, will begin production in June.

MINING MORE, MINING SAFELY The scoop on the latest mining methods and technologies.

MINE PROFILE Copper Mountain Mining Corporation builds on history in southern B.C.

ENGINEERING EXCHANGE Siemens modernizes the SAG mill drive at Quadra FNX’s Robinson Mine.

TECHNOLOGY Capturing efficiencies with project and cost management software 3URYLG 0DQD

UXFWLRQ H *OREDO

COMMODITY FOCUS Copper

'LVFLSOLQH 6XUYH\

&LYLO DQ 0XOWL G : :

VWUXFWDELOLW\

& 2 0

May 2011 | 121

;>>: 0608= GETTING THE MOST FROM YOUR EQUIPMENT ISNâ&#x20AC;&#x2122;T OPTIONAL Every Bridgestone and Firestone off road tire comes standard with support from a network of more than 800 dealers. Youâ&#x20AC;&#x2122;re backed by experienced field sales and engineering staffs, site inspections and weight studies. Our TreadStat software forecasts maintenance needs and controls costs. Bridgestone and Firestone tires ride on more than a century of research and development, and theyâ&#x20AC;&#x2122;re backed by proven records â&#x20AC;&#x201C; including the lowest warranty adjustment rates in the world.

Know more. Learn more.

800-905-2367 | BFOR.COM | WECARE@BFOR.COM

NEW RST SERIES RODS AND BITS Global Drilling Products

ENGINEERED FOR STRENGTH AND RELIABILITY Boart Longyear’s new Robust Standard Thread (RST™) Series of premium percussive rods delivers 35 percent increase in rod and bit life and up to 20 percent greater penetration rates over standard design offerings. The new rod series offers engineering advancements including a larger and stronger transition area from rod to thread and an extended bit skirt length, which reduces rod tip-off occurrences and increases productivity. Unlike competitive proprietary designs, RST Rods and Bits are compatible with industry standard thread forms.

ZZZ %RDUW/RQJ\HDU FRP $6; %/<

New RST Series information Online www.boartlongyear.com/rst

Visit Us at

CIM Conference & Exhibition Montreal, May 22-25 2011 Booth #1424

&RS\ULJKW %RDUW /RQJ\HDU $OO ULJKWV UHVHUYHG

™