CIM Magazine June/July 2013

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CONTENTS|CONTENU CIM MAGAZINE | JUNE/JULY 2013 | JUIN/JUILLET 2013

TOOLS OF THE TRADE 10

The best in new technology Compiled by H. Mathisen

NEWS 14 18

Industry at a glance Feast or famine Geology students confront a tight

19

A look into the portal New oil sands environmental

24

job market by E. Moore monitoring site goes live by V. Heffernan

20

Golden age of austerity April’s gold price drop

22

Mines built on trust Revenue-sharing agreements

forces miners to re-evaluate plans by A. Reitman between B.C. and First Nations move projects forward

by I. Ewing

24

Is the juice worth the squeeze Quebec unveils new mining tax regime by A. Dion-Ortega

26

Le jeu en valait-il la chandelle? Québec dévoile son nouveau régime d’impôt minier par A. Dion-Ortega

COLUMNS 28 29 30 32

MAC Economic Commentary Canadian miners busy navigating new maritime pollution rules by B. Marshall Finance De-risk your mining assets to access capital by M. Chiesa Legal Perspective Keewatin vs. Ontario: less uncertainty for the mining sector by. J. Kearney Innovation A coordinated approach to tackle industry challenges by C. Weatherell

UPFRONT Mass Mining 34

Intercontinental connectivity Rio Tinto creates integrated data management system for all its cave mines by A. Lopez-Pacheco

38

Fracturing tradition Fracking tests at Newcrest’s Cadia could open doors in rock de-stressing and oil and gas extraction by I. Ewing

40

The power to plan New tool for evaluating cave economics helps Rio Tinto at the prefeasibility stage

by C. Baldwin

42

Elephant hunting Exploration geologist Dan Wood dishes the dirt on the next generation of discoveries

by P. Braul

40 4 | CIM Magazine | Vol. 8, No. 4

CIM COMMUNITY 60

Leading the conversation At recordbreaking 2013 CIM Convention, miners look for ways out of tough times Entretenir le discours collectif Au Congrès de l’ICM 2013, qui a battu les records de fréquentation, les mineurs cherchent une issue à ces périodes difficiles by/par H. Mathisen

68

FEATURE | ARTICLE VEDETTE 46

CIM Award Winners 2013 Les gagnants des prix d’excellence de l’ICM 2013

46

60

High and dry With water in short supply, some are looking to the ocean for answers

by P. Blin and A. Dion-Ortega

52

Une mer de solutions Avec de l’eau en pénurie, certains se tournent vers l’océan pour obtenir des réponses par P. Blin et A. Dion-Ortega

TECHNOLOGY Mine planning and design 57

Illuminating the cave The growing number of block cave mines in development and advances in modelling software are giving miners a better picture of underground operations

by E. Moore

TECHNICAL ABSTRACTS 72 73

CIM Journal Canadian Metallurgical Quarterly

IN EVERY ISSUE

57

6 8 70 77 78

Editor’s letter President’s notes | Mot du président Calendar Professional directory Mining lore by C. Baldwin

June/July 2013 | 5

Editor-in-chief Ryan Bergen, rbergen@cim.org Executive editor Angela Hamlyn, ahamlyn@cim.org Managing editor Andrea Nichiporuk, anichiporuk@cim.org

editor’s letter Section editors

Sea change

Tools of the Trade:

Peter Braul, pbraul@cim.org Herb Mathisen, hmathisen@cim.org News, Columns and CIM Community:

I

n the long term, we like to believe the mining industry is a safe bet because much of the world’s population lives in emerging economies. Residents in these countries want the comforts – electric appliances and indoor plumbing – that we in Canada take for granted and soon enough they will be able to afford them. It’s a persuasive argument, especially when you think of all the metals that will be required to furnish this lifestyle, all the copper in the wiring and piping. The miners who can tough out the down times will be in great shape with this vision of the future.

With this issue though, we shift the focus away from the pipes to what flows through them: water. And with that shift, the scenario changes.

When hundreds of millions more people have access to indoor plumbing, it means you have hundreds of millions more people using it. As Michael Sudbury pointed out in his presentation at the recent CIM Convention in Toronto, the richer we get, the more water we use.

Growing economies fuel the demand for metals and minerals, but they also drive other water-intensive industries such as energy generation, manufacturing and agriculture. All of these require an enormous amount of water. Yes, industries have, over time, begun to use the resource more efficiently – mining particularly – but competition for water and the public’s anxiety over its use is growing more intense.

We are resigned to the fact that tomorrow’s mines will have to exploit lower grade ores, a trend detailed in our focus on mass mining. And, as Pierrick Blin and Antoine Dion-Ortega illustrate in “High and Dry” (p. 46), high-tonnage deposits only add to a list of factors that increase the stress on water supply for our industry. Social and market forces, along with technological improvements, make a compelling case for exploiting the vast, if salty, potential of the oceans: whether that means investing in desalination to secure a water supply or running processing circuits with salt water.

But our industry’s relationship with water reaches far beyond processing plants and tailings ponds. As MAC’s Brendan Marshall points out in his column (pg. 28), shipping regulations are being tightened to protect marine environments. And growing interest in deep sea mining has prompted the United Nations to begin drafting the framework for mining permits in international waters (pg. 14).

In today’s troubled financial markets, the positive long-term outlook for the mining sector is encouraging, but it is likely that all of this growth will come with a grain of salt.

Herb Mathisen, hmathisen@cim.org Feature and Upfront: Peter Braul, pbraul@cim.org Project Profile and Technology: Ryan Bergen, rbergen@cim.org Technical Section: Andrea Nichiporuk, anichiporuk@cim.org Copy editor/Communications coordinator Zoë Koulouris, zkoulouris@cim.org Web editor Nathan Hall, nhall@cim.org Web support Maria Olaguera, molaguera@cim.org Contributors Correy Baldwin, Pierrick Blin, Mauro Chiesa, Antoine Dion-Ortega, Ian Ewing, Virginia Heffernan, Jocelyn Kearney, Alexandra Lopez-Pacheco, Brendan Marshall, Eavan Moore, Anna Reitman, Carl Weatherell Editorial advisory board Alicia Ferdinand, Garth Kirkham, Nathan Stubina, Vic Pakalnis Translations SDL, Antoine Dion-Ortega and Karen Rolland Published 9 times a year by the Canadian Institute of Mining, Metallurgy and Petroleum 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 ($174.00); Non-members (Canada), $220.00/yr (PE, MB, SK, AB, NT, NU, YT add $11.00 GST, BC add $26.40 HST, ON, NB, NL add $28.60 HST, QC add $32.95 GST + PST, NS add $33.00 HST) Non-Members USA and International: US$240.00/year. Single copies, $25.00.

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This issue’s cover The waste rock disposal areas of Freeport McMoRan’s Candelaria Copper mine near Copiapó, Chile. Photograph by Cristián Amunátegui Layout and design by Clò Communications Inc. www.clocommunications.com Copyright©2013. All rights reserved.

Ryan Bergen, Editor-in-chief editor@cim.org @Ryan_at_CIM_Mag

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

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.

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president’s notes | mot du président

Great expectations Coming away from the latest CIM Convention in Toronto, I am charged with anticipation and excitement. The event was very well-attended with total participation exceeding 6,500 registrants and exhibitors. The technical program was top-notch, and we thank the organizers and staff, led by conference chair Tom Rannelli, as well as the authors who put thought and creativity into their presentations. The team put the mining finance and management strengths that define the city as the world’s mining centre on display. The overall theme of the convention, “The Courage to Change,” really hit home as CIM is opening itself to change in order to better communicate with and serve its members as it strives to continue to deserve recognition as “the community for leading industry expertise.”

There are a number of things to look forward to in the coming year. CIM will be taking its strategic plan to a new level. We are strengthening the lines of communication and outreach between members and their branch affiliation and the CIM national office by increasing the opportunities for contact through the district vice-presidents and CIM ambassadors. And, of course, we are already hard at work on Vancouver 2014.

Robert Schafer CIM President | Président de l’ICM

In the next several months, we intend to create opportunities to connect with each CIM member, with CIM corporate members, our societies and with many other partners through both a survey and a series of meetings at the branch level in each district to seek your input and guidance in setting future priorities to enable us to improve our programs, benefits and services.

With this information in hand, we will then add greater detail to our strategy for the future, raising the bar so that the CIM community can fully realize its potential, and ensure its leadership in the global mining industry.

With the start of my term as CIM president, I plan to engage with as many members at branch, society and national levels as I can. I look forward to meeting you face to face and hearing your comments and suggestions.

De grandes espérances De retour du dernier congrès de l’ICM à Toronto, je suis rempli d’optimisme et d’excitation. L’événement a été très fréquenté, pour un total de plus de 6 500 participants et exposants. Le programme technique était excellent, et nous tenons à remercier les organisateurs et le personnel, sous la direction du président du congrès, Tom Rannelli, ainsi que les auteurs qui ont infusé délibération et créativité dans leurs présentations. L’équipe a vraiment mis en vedette les forces des secteurs de la gestion et du financement miniers qui font de la ville un centre minier mondial. Le thème général du congrès, « Oser le changement », a vraiment touché juste, alors que l’ICM s’ouvre au changement dans le but de mieux communiquer avec ses membres et de mieux les servir. Il s’efforce de continuer de mériter sa réputation de « communauté pour une expertise de premier plan. » La prochaine année nous réserve un certain nombre de développements intéressants. L’ICM portera son plan stratégique au niveau supérieur. Nous solidifions les voies de communication et de sensibilisation entre les membres, leur section locale et le bureau national de l’ICM en multipliant les occasions de contact par l’intermédiaire des vice-présidents de district et des ambassadeurs de l’ICM. Et, bien entendu, nous travaillons déjà très fort à l’organisation du congrès 2014 à Vancouver.

Au cours des prochains mois, nous comptons créer des occasions de prendre contact avec chaque membre de l’ICM, les entreprises membres de l’Institut, nos sociétés et plusieurs autres partenaires au moyen d’un sondage et d’une série de rencontres dans les sections locales de chaque district afin de connaître votre opinion et vos recommandations quant à l’établissement des priorités futures, ce qui nous permettra d’améliorer nos programmes, nos avantages et nos services. Forts de cette information, nous étofferons notre stratégie pour l’avenir, en haussant la barre pour permettre à la communauté de l’ICM de se réaliser pleinement et d’asseoir son leadership dans l’industrie minière mondiale.

En début de mandat à la présidence de l’ICM, je suis impatient d’interagir avec autant de membres que possible dans les sections locales et les sociétés et à l’échelle nationale. J’ai hâte de vous rencontrer en personne et d’entendre vos commentaires et vos suggestions.

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

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OF TOOLS THE TRADE

the best in new technology

◢ Many uses for more power Brokk Inc.’s remote-controlled, diesel-powered Brokk 400D rockbreaking machine punches beyond its weight. “It’s much smaller than the typical excavator,” says Lars Lindgren, the company’s president for the Americas. “Our main thing is the size and weight-to-power ratio.

We deliver more power and more production than excavators up to three times [the 400D’s] weight.”

With many attachments available, operators control the machine remotely to do all sorts of jobs on mine sites. “It can break oversized boulders,” says Lindgren. “It can be used for shaping and making ditches.” The 400D has a larger hammer than previous models and can also be fitted with a digging bucket, grinder and rock drill attachments. “It’s more of a utilitytype machine,” says Lindgren, adding it can be used to perform roof-bolting and scaling work.

Improvements to its heavy-track system mean the 400D can travel much further and faster than previous incarnations. The Brokk 400D was launched at Bauma, in Munich, in April.

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

Courtesy of Prüftechnik

Prüftechnik’s Rotalign Ultra iS makes for fast and easy machine alignment. For shaft alignments, laser sensors are fitted to the coupling side of a motor and pump. Holding a hand-held tablet computer, users get readings on how to adjust the machines to align them correctly. “Depending on the quality of the readings, with a minimum rotation of 60 degrees, you already get accurate results,” says Florian Buder, managing director for Canada. “The unit display itself tells you when you have collected enough data.” The processing and memory capacity of the company’s intelligent shaft alignment system is larger than those of competitors, allowing it to collect and record data more quickly.

Rotalign Ultra iS can also take vibration readings into account. “It eliminates points which the system automatically recognizes were not good, due to either high vibration or because there was some sort of backlash on the couplings,” says Buder. “You get high accuracy by eliminating wrong readings automatically.” Misalignments negatively affect a machine’s energy efficiency and also increase force on gears, bearings, and belts and wear on parts. “This will assure you that you can operate the machines longer without any problems,” Buders adds.

◢ A clean scrape Launched globally by IBS in late-April, CleanScrape is an easy-to-install, lowmaintenance and relatively inexpensive conveyor belt cleaner. Bruce Field, head of sales, says no major mechanical fittings are needed for installation. “It is unique in that it is diagonal across the pulley, not straight, and that it sits flat on the belt without exerting a high pressure on it,” he says. Tungsten-carbide inserts moulded into the rubber scrapper allow it to effectively clean belts of even sticky materials. “You get the benefit of the flexibility of the rubber and the durability of the tungsten-carbide inserts,” adds Field. The self-tensioning scraper rides over mechanical joints and does not damage belts. And though he says other scrapers can do a good job removing material, they are too aggressive and damage equipment.

“They don’t only take the material off the belt, they take the belt off the belt,” says Field. According to the company, the product lasts for at least two years and fits belt sizes with widths between 300 and 2,800 millimetres, and pulley diameters of 300 to 1,250 mm.

Courtesy of IBS

Courtesy of Ironclad Marketing Inc.

◢ Alignment assistor

OF TOOLS THE TRADE

the best in new technology

Courtesy of Mitas

Toronto-based Northern Light Technologies has introduced its Genesis cap lamp, which has the ability to host tracking tags from different manufacturers. Weighing only 187 grams and with a minimum luminance of 3,500 lux, the versatile LED cap lamp can house six different RFID or Wi-Fi tracking tag models. The lamp also has a highcapacity battery that powers it for longer than the typical 12-hour shift, and it is rechargeable in less than 12 hours. The cordless, purpose-built lamps come equipped with an emergency flashing feature, so if an employee is hurt, he or she can hold down a button for five seconds to activate the flashing function. The Genesis cap lamp’s battery life cycle lasts more than 500 charges. An intrinsically safe version of the lamp, for use in potentially explosive environments, is currently pending approval.

◢ Tires that won’t tire

Courtesy of Atlas Copco

Courtesy of NLT

◢ Tracking light

◢ Truly tested rock bolts Released at the CIM Convention in May, Atlas Copco’s Swellex Spartan offers a rigorously tested rock bolt for miners seeking low elongation rock bolts. Mario Bureau, business line manager, says because no elongation testing standards exist, manufacturers can claim that their rock bolts are capable of performing to a standard, even if no testing is done in an environment that mimics the bolts’s real-world use. “There is certainly a void in terms of regulations, that manufacturers are not required to follow a specific procedure for testing,” says Bureau. “At Atlas Copco, we have a very strict procedure for testing. It’s well-defined. It is as close as can be to the use of the product. Spartan has been launched to gap the market segment where the expandable types of bolts are being used with very little elongation capacity.” For these reasons, Bureau says Swellex Spartan promotes safe mining and tunnelling operations.

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

Czech company Mitas released its ERL-50 tire in April and hopes the heavy-duty model will cut down on companies’ tire maintenance and operation costs. “The newest ERL-50 has the largest contact area of all Mitas off-the-road (OTR) tires, which adds to its durability,” says chairman and CEO Jaroslav Cechura. “In addition, this tire features the deepest tread design in all Mitas OTR tires.”

The company has been producing OTR tires since 2009. The tires are used for loaders and articulated dumpers, and Mitas also makes tire models for Liebherr cranes. With the ERL-50, steel cord has been introduced into the body and breaker of the radial tire. The whole series of Mitas ERL tires includes 12 different models, with tread depths varying from 28 to 90 millimetres. The ERL-50 has been designed especially for rocky conditions and the company hopes to make the tires available for sale globally in July.

Compiled by Herb Mathisen

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Courtesy of Jason Weber

news | industry at a glance Progress on deep-sea mining licences

Mining for Miracles chair Jason Weber takes a pie in the face from his son, Adam, at the 13th Teck Celebrity Pie Throw in downtown Vancouver, on May 2. The event raised more than $1 million for the B.C. Children’s Hospital Foundation.

Miners take it on the chin Junior miners take note: a group in British Columbia was able to raise more than $1 million, equipped with nothing more than some pies and a few famous faces. Held May 2 in downtown Vancouver, the Teck Celebrity Pie Throw, in its 13th year, was organized

by Mining for Miracles, a group of B.C. mining professionals that raises funds for the B.C. Children’s Hospital Foundation. Mining executives and public figures got pied for a good cause, with money raised primarily through internal pledge drives at companies and organizations.

“It originally started as a Teck fundraiser and then they took it public and invited everybody in,” said Jason Weber, Mining for Miracles chair and CEO of Kiska Metals Corporation. This year, Teck, Goldcorp and Silver Wheaton were just a few of the companies whose executives were temporarily defaced for donations.

Participants got creative with their fundraising, in order to bring in more 14 | CIM Magazine | Vol. 8, No. 4

contributions. “What Ausenco did was have an internal competition within their organization to see who got to throw the pie at one of their executives,” said Weber. Mining Association of B.C. CEO Karina Briño and Association for Mineral Exploration B.C. president Gavin Dirom challenged each other, agreeing that whoever raised the most money would get to throw a pie at the other. “But what we ended up doing was we made them both receive a pie,” said Weber, who himself took a pie to the face from his own son on behalf of the hockey team he coaches.

The funds raised will go towards purchasing a pediatric biobank for the children’s hospital. “The biobank really resonates within our community because I just look at it as a big core shack,” said Weber, explaining that it is the biological equivalent of having every mineral sample in the world in one place.

Biological specimens from around the world will be collected and used by researchers to find cures for pediatric diseases.

– Herb Mathisen

The United Nations’ International Seabed Authority (ISA) could start receiving mining licence applications for polymetallic nodule exploitation as soon as 2016. On May 15, the organization revealed its plan to develop a regulatory regime over the mining of the long sought-after nodule resources.

So far, ISA has issued 17 exploration permits in international waters, but companies currently cannot submit applications to actually mine resources they discover on the international seabed.

In Papua New Guinea’s national waters, the country has already issued a mining licence to Nautilus Minerals, which, according to ISA, spurred the decision to develop a system for its international jurisdiction. Coastal countries control an exclusive economic zone of up to 370 kilometres from the coastline or further, if the continental shelf extends beyond that limit. But the rest of the entire seabed is administered

by ISA, which estimates global manganese nodule reserves at around 10 billion tonnes.

ISA is preparing a white paper on the regulatory regime for polymetallic nodules this year. The organization plans to review it in 2014, with implementation slated for some time in – Peter Braul 2015.

Tunnel collapse kills 28 miners at Grasberg complex On May 14, a tunnel collapse killed 28 miners at an underground training facility near the Big Gossan mine, one of three mines that comprise PT Freeport Indonesia’s massive Grasberg operation in the Papua province of Indonesia. Rescuers were able to save 10 of the 38 company and contract employees caught in the rock fall. It took a week to recover the remains of those killed.

According to reports from The New York Times, Freeport McMoRan CEO Richard Adkerson said the training

industry at a glance | news facility did not have a history of problems. “We had no concerns or fears about its safety, so that’s why we need to understand why this happened,” he said. All mining operations at the complex, which normally produces 222,000 tonnes per day of ore from one open pit and two underground mines, were put on hold following the collapse. During the shutdown, the milling facilities processed stockpiled ore. – Ryan Bergen

Chile’s environment regulator fines Barrick $16M Construction work at Barrick Gold’s Pascua-Lama mine in Chile was suspended May 24 until the company builds components of the mine’s water management system, which were supposed to have already been in operation. A $16-million fine has been levied and comes at the end of a four-month investigation by Chile’s environmental regulator. Juan Carlos Mockenberg, Chile’s superintendent of the environment, told the Associated Press his agency was only given enforcement power in December and that these are the first sanctions he has given out.

In addition to elements not yet built, one canal failed in January, forcing the company to rebuild portions of it. Barrick was found to be in “very serious” violations of its environmental permit and to have inaccurately reported what was taking place on site, according to the AP. Components of the water management system that caused concern include a canal to divert rainwater from waste rock, meant to minimize acid rock drainage.

In a written response, Barrick indicated the company was in the process of reviewing the ruling, adding it was “fully committed to complying with all aspects of the resolution and to operating at the highest environmental standards.”

– P.B.

Driller outlasts spring storm in Nunavut A driller working on Agnico-Eagle’s Meliadine gold project, near Rankin

Inlet, Nunavut, was rescued alive and in good health after getting lost on his way to the worksite during bad weather. Co-workers reported Michel Justin Pilon, a Boart Longyear employee from Timmins, Ontario, missing early on the morning of May 14, after he did not arrive at the drill site. Pilon had been last in a group of snowmobilers travelling during a winter storm, with poor visibility conditions.

The spring blizzard ultimately dumped nearly a metre of snow on the area and brought high winds, frustrating search efforts. Pilon, who was trained in survival techniques, used pieces of his snowmobile to build a snow shelter and weathered the storm that lasted more than two days. He was found at about 10:30 p.m. on May 16, as he made his way back to the Meliadine camp.

– R.B.

Islamist attack at Areva mine

ernment. The company has three mines in Niger, and has had operations in the country for more than 50 years.

The Movement for Unity and Jihad in West Africa (MUJAO) claimed responsibility for the mine attack.

MUJAO is an al-Qaeda-linked group that France drove out of northern Mali in January. The group specifically targeted Areva and Niger because of their allegiance with France.

Areva’s operations in the region have been the target of Islamist groups before. Seven French workers were taken hostage by al-Qaeda in the Islamic Maghreb, an affiliate of MUJAO, in the fall of 2010. Though they are known to be alive, four have still not been released.

– P.B.

Chinese workers approved for HD Mining Embroiled in controversy since its permits were issued last October,

Islamist militants killed one employee and injured 13 others with a suicide car bomb at Areva’s Somaïr uranium mine in Niger on May 23. The mine was damaged in the attack, and production was suspended.

The attack occurred nearly simultaneously with a car bomb at a nearby army barracks that killed 19.

Luc Oursel, president and CEO of Areva, travelled to Niger the day after the attacks to meet with employees and representatives of the govJune/July 2013 | 15

Courtesy of Avalon Rare Metals

news | industry at a glance

Avalon Rare Metals is the first company to complete a major feasibility study on a heavy rare earths project outside of China, with the company releasing the study’s results in mid-April for its Nechalacho project in the Northwest Territories.

Chinese miner HD Mining got the green light on May 21 to import 201 temporary foreign workers for its Murray River coal project in British Columbia. Two B.C. unions brought the company to federal court, saying HD Mining did not put sufficient effort into hiring Canadians, but their concerns were dismissed.

Nevertheless, both unions are claiming victory for having brought light to the issue. “Trades unions have exposed a fundamentally broken temporary foreign worker program and won in the most important court, the court of public opinion,” said Brian Cochrane, business manager of the International Union of Operating Engineers Local 115.

The federal government announced in April that it will no longer allow temporary foreign workers to make 15 per cent less than their Canadian counterparts, and suspended the accelerated labour market opinion process.

There are now more stringent requirements on companies to plan a transition to Canadian labour, and the court ruled that HD Mining needs to make progress in that regard.

“This case is about showing Canadians the truth about the temporary foreign worker program and asking them to demand that the federal government make significant changes to fix the problems,” said Mark Olsen, business manager for the Construction and Specialized 16 | CIM Magazine | Vol. 8, No. 4

Workers Union [Labourers’ Union] Local 1611. “On that we have succeeded.”– P.B.

Caterpillar not immune to mining slump Suppliers to the mining industry are feeling the squeeze of sluggish financial results in the sector. Global equipment giant Caterpillar saw both its sales and profits fall in the first quarter of 2013.

Profits decreased from $1.58 billion in the first quarter of 2012 to $880 million for the same period this year.

Much of the loss reflected the poor mining market, as “mining companies continued to reduce capital expenditures, and new orders continued to be weak and were well below the first quarter of 2012,” a press release from the company noted. Caterpillar’s resource industries business segment, which is primarily made up of the mining sector, saw sales of $3.67 billion in the first quarter of 2013, down 23 per cent from the first quarter of 2012.

Profits in this business segment fell to $477 million from $1.168 billion yearon-year during the same period.

The downturn has also caused the company to revise its 2013 outlook.

“While expectations for construction industries and power systems are similar to our previous outlook, our expectations for mining have decreased significantly,” said Caterpillar CEO Doug Oberhelman in a release, adding

the company anticipates a 50 per cent decline from 2012 for mining equip– H.M. ment sales.

Avalon completes feasibility study In completing the feasibility study for its Nechalacho project in midApril, Avalon Rare Metals became the first company to do so for a major heavy rare earth project outside of China. The $60-million study, conducted by SNC-Lavalin, pegged mine construction costs at $1.575 billion, with more than $1.15 billion for infrastructure in the Northwest Territories, and $423 million for a refinery in Louisiana. Average operating costs were estimated at $264.5 million annually, with revenues coming in at $645.8 million per year. The payback period is expected to be 4.3 years, with an internal rate of return after tax of 19.6 per cent.

Avalon CFO Jim Anderson said the company’s next step is lining up project financing. “As you can appreciate, the markets are kind of challenging right now,” he said. “We think, really, the key success factor for us is to identify a strategic partner, a large end-user that has the wherewithal to support the development of the project.” Anderson said Avalon has already signed six confidential, non-binding MOUs with different parties, which are now busy

Impact of Kennecott landslide spreads The operators of Kennecott Utah Copper’s Bingham Canyon mine are laying off staff, have urged others to take vacation or unpaid leave and offered US$20,000 buyouts to employees as they continue to recover from a massive pit wall collapse at the Utah mine in April.

Slope monitoring equipment tipped the miners off that the northeastern wall was failing and work in the pit had been suspended and equipment moved in anticipation of the slide.

Despite the preparation, three shovels, 14 haul trucks and a number of drills and other equipment were caught up in the slide that carried an estimated 150 million tonnes of rock into the pit.

errata Productivity Monitor

In April, a pit wall collapsed at Kennecott Utah Copper’s Bingham Canyon mine. No one was injured.

Mining has since resumed, but the company is continuing to cut costs as copper production from the mine is expected to be half of the earlier projected 2013 output. The mine produced 163,000 tonnes of copper, 9,400 tonnes of molybdenum and 279,000 ounces of gold last year.

– R.B.

Vista nears construction Coalspur Mines Ltd. has secured a $350-million funding agreement, which could see the company begin construction on its Vista Coal project near Hinton, Alberta, later this summer. EIG Global Energy Partners has agreed to provide the funding with a senior secured debt facility, which nearly fulfills the C$445 million Coalspur requires to build stage one of the

Vista project. At this stage, Vista would produce three million tonnes of thermal coal per year, once completed in the first half of 2015. “The EIG facility will allow us to begin construction, and we will start before the full $445 million is raised,” said David Montpetit, vice-president of external affairs and logistics.

Chris Borowski, investor relations manager, said the company will hold a vote on June 27 for shareholders to approve the $350-million funding arrangement. Coalspur is also working on getting permits approved as part of the regulatory process for construction.

When stage two of the thermal coal project is completed, Vista is expected to ramp up production to 12 million tonnes per year. The life of the mine is – H.M. 29 years.

Courtesy of Geovia

working through the project’s 10,000page study.

Anderson said Nechalacho is particularly attractive to prospective partners seeking secure supplies of five critical rare earth oxides that are expected to be increasingly in demand in coming years: europium, terbium, dysprosium, yttrium and neodymium.

“If people are concerned about security of supply and they are thinking that China’s going to be in a situation whereby it’s going to be consuming more of these elements than they actually have, the exports are going to get choked off,” he said. Production is targeted to begin in late2016, with early commercial sales in 2017.

– H.M.

Courtesy of Kennecott Utah Copper

industry at a glance | news

In our May issue’s “Tools of the Trade” (p. 18), we ran the incorrect photo alongside Geovia’s InSite 4.3 software product description. This photo should have accompanied InSite 4.3. We apologize for the oversight.

June/July 2013 | 17

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Feast or famine Geology students confront a tight job market

by Eavan Moore

Courtesy of Ravneet Gill

Despite forecasted lacandidates how to netbour shortages and high work better within this expectations of job prosindustry. pects for students with Gill herself has extenearth science degrees, this sive contacts that enabled summer’s job market has her to land a five-month given many young geolocontract job helping gists cause for frustration: organize this year’s Associfaculty and students report ation for Mineral Explorthat the placement rates ation British Columbia’s annual Mineral Explofor graduates and for curration Roundup. But she rent students plummeted admitted that she has this year, intensifying fears apprehension about her of a lost cohort. career. “I like this industry At the end of April, enough that I want to try economic geology profes- Last summer, Ravneet Gill, a 2012 University of British Columbia geology grad, worked in sor David Lentz could not Yukon’s White Gold district, with an exploration team. Job prospects this year are thin and stick it out,” she said. name one employed stu- though, with junior miners struggling to raise money.

“But there are definitely dent in the earth sciences times when you ask yourdepartment at the University of New it could change right back in six self, ‘Is this what I’m going to be doing Brunswick (UNB). “We have never seen months, and we could all be talking for the rest of my life? If I can’t even get it this bad,” he said. “Last year we had about skills shortages and talent scarcity started now, do I really want to try close to 100 per cent of the students again,” he said. “I think it’s just a quesfighting for something that’s going to hired by this time, in third- and fourth- tion of weathering the storm. The be unstable later on as well?’ So you year. I think it’s fair to say that it’s going long-term job prospects for people in have that bit of fear in the back of your to be an abysmal year for students getgeosciences and mining engineering are mind.” ting expertise and helping to pay off Lentz pointed out that students and extremely good in the mining sector. their student loans.” exploration companies should use the And that’s the message we’re trying Softening metal prices and investor downcycle to build up their knowledge to get out.” base.

Besides his role on the academic caution have choked off exploration That message has reached students. front, Lentz is also director of an explobudgets and kept mining companies “I was warned that it was often a cyclic ration company and encourages compafrom making student hires. Junior commarket,” said Chelsea Squires, a geonies to hire students to perform data panies simply do not have the capital to physics student at Memorial University compilation and quality control tasks. spend, said Ryan Montpellier, executive of Newfoundland, who recently found Companies could thus catch up on the director of the Mining in Human work doing seismic interpretation in data backlog created during busy boom the oil and gas sector. The downturn Resources Council (MiHR). times, while potentially adding value to came as more of a surprise for UNB Since juniors are traditionally a good prospects and allowing young people to starting point for entry-level geologists, economic geology student Emily gain industry experience.

Palmer, but she also believed that the their cuts have hit new graduates particLentz noted that government lobbymarket would recover. ularly hard. Ravneet Gill, who graduMeanwhile, Palmer and other stuing efforts could improve the situation ated from the University of British as well.

While federal government supdents had suggestions for companies Columbia in 2012, worked with a junport already exists in the form of science looking to attract and engage youth.

A ior explorer until the downturn began. worker wage subsidies and public hircentralized online job database might “If you start off as a relatively inexperiing, the Geo-mapping for Energy and help link students to the work that enced grad at the very bottom, you can Minerals program and the Targeted does exist.

Industry could also share grow as a junior grows,” she said. “Now Geoscience initiative are both due for important experience by sponsoring it’s a lot harder for grads to get hired and extensions.

There is no mention of skills workshops on university camto be given a chance.” either in the proposed 2013 federal puses. Gill, for her part, recommended Montpellier counselled patience durCIM that a dedicated website could teach budget. ing this lull. “As quickly as this changed, 18 | CIM Magazine | Vol. 8, No. 4

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A look into the portal New oil sands environmental monitoring site goes live

by Virginia Heffernan In an effort to boost the transparency of environmental monitoring in the oil sands, the Alberta and federal governments have set up an online portal where the general public can access environmental data from the area.

“With this portal, our respective governments are actively encouraging informed discussions and analysis on the impacts of oil sands development,” said Peter Kent, Canada’s environment minister, when the service went live in April.

The portal complements the existing Alberta Oil Sands Information Portal run by the provincial government. It provides more comprehensive monitoring information, with greater frequency, over an area that extends into the Northwest Territories and Saskatchewan. Results of air, water, land and biodiversity testing in the Athabasca Basin, where oil sands extraction has been ongoing for years, are included in the datasets. The water data, for instance, include concentrations of contaminants such as heavy metals and ammonia in rivers and lakes, while air quality measurements include levels of ozone, polycyclic aromatic compounds (PACs) and mercury.

The portal is the most recent initiative of the Joint Canada-Alberta Implementation Plan for Oil Sands Monitoring, launched in February 2012. That plan was intended as a response to criticism that existing monitoring programs such as the Regional Aquatics Monitoring program (RAMP) were inadequate. A panel of experts commissioned by Environment Canada concluded in 2010 that many of the monitoring programs in place were unable to distinguish, with any reasonable statistical confidence, the impact oil sands extraction has on the environment.

RAMP in particular was singled out for poor leadership, failing to communicate with scientists and the public, and lacking data transparency. Launched in

1997, the water monitoring program is fully funded by industry but also includes stakeholders from all levels of government and First Nations groups.

A key aspect of the new monitoring portal is that air, water, wildlife and land monitoring results will be linked together, so emissions and habitat disturbance can be related to acute and longterm effects on ecosystems and human health. Monitoring multiple factors at close proximity will show how water quality, for instance, affects biodiversity.

Under the implementation plan, monitoring will be co-led by representatives of Environment Canada and Alberta Environment and Water, rather than an independent agency. But this approach has raised concerns about the program’s credibility.

“The oil sands monitoring system will only be credible if it is independently governed – arms length from any industry or government interests,” said Jennifer Grant, oil sands program director for Canada’s Pembina Institute. She considers independent governance and regular audits key for restoring trust in a monitoring system that has struggled for years with sampling deficiencies, poor understanding of baseline conditions, and inadequate analysis.

Instead, the partnership will integrate the current monitoring activities of several independent groups into one, government-led effort. To quell transparency concerns, the program will publish an annual report and undergo an external peer review process after year three, and at five-year intervals thereafter.

Grant also points out that monitoring is meaningless unless it is coupled with action. “As an example, Alberta monitored the steady decline towards extinction of caribou in the oil sands for 20 years and still failed to act to protect their habitat,” she said. And since it will be another two years before the joint monitoring program is fully operational, she recommends the government put a

halt to new projects in the oil sands until 2015.

The federal and Alberta governments, alongside industry, already support monitoring in the area, and the extra $50 million in annual funding needed to implement the new program will be covered by industry. Invoices will be sent directly to individual companies instead of being channelled through the Canadian Association of Petroleum Producers (CAPP).

Even though monitoring data is accessible to the public through a variety of other means, the portal is a positive step toward making environmental information more easily and instantly available, said Tony McCallum, a spokesman for CAPP. He says oil companies are generally supportive of the new initiative and the increased transparency and disclosure it will provide.

Meanwhile, Alberta is tabling a new law – Bill 21 – that would allow the province to introduce other monitoring programs both inside and outside the oil sands. If the bill passes, Alberta will have the power to force oil companies to pay for environmental monitoring beyond the three years agreed to under the joint implementation plan. CIM The portal can be accessed at: environment.alberta.ca/apps/osip/ MOVING ON UP Tata Steel welcomes new senior VP New Millennium Iron Corp. (NML) appointed Gino Lévesque as senior vice-president of projects and logistics at Tata Steel Minerals Canada (TSMC) Ltd., which is 20-per-cent-owned by NML. Lévesque has worked for Sidbec-Dosco, Alouette Aluminum, Wabush Mines, and Cliffs Natural Resources Inc.

June/July 2013 | 19

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Golden age of austerity April’s gold price drop forces miners to re-evaluate plans

by Anna Reitman Courtesy of www.kitco.com

Gold miners have been under Yamana noted these projects are fire for not capitalizing on a risexpected to continue as they presing gold price for some time. But ent a significant value at or below now that the price for the precurrent metal prices. cious metal has fallen, shareDuring a conference call in holders are eyeing anticipated May, Goldcorp president and cost-cutting measures closely.

CEO Charles Jeannes said the In mid-April, gold prices company believes the recent drop dropped by more than $200, in the gold price is a mid-cycle and, while heavy physical buycorrection as opposed to the start of a bear market. Nevertheless, ing in Asia has helped ease some the company will be looking at fears, producers big and small After hitting US$1,750 in November, the price of gold decreased steadily in priorities to determine where are lining up to announce oper2013 before plummeting in mid-April. reductions or deferrals in spendational reviews in quarterly ing programs could be made in earnings results. the event of a lower sustained price.

Citing the drop in price as impetus Suruca and Corpo Sul in South Amerfor change, Canadian producer Yamana ica. Producing mines with all-in costs Newcrest, which has operations in Gold announced an evaluation of proAustralia, Papua New Guinea, Africa exceeding the company’s average, such duction targets for future years, includas Jacobina and Ernesto/Pau-a-Pique, and Indonesia, announced in a release ing pending projects Cerro Moro, are also being scrutinized, though that with “major projects ramping up

We recognize it takes world-class people to run world-class mines. When you work with us, you’re part of a growing community of skilled professionals committed to pioneering advances in modern, sustainable mining.

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

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and the more challenging external environment, [the company] continues to review all of its business activities, particularly those related to higher-cost current or future production.”

And Barrick Gold has been hit hard as it faces a huge drop in share price, major setbacks at Pascua-Lama in Chile, and aftershocks from a Moody’s downgrade of senior unsecured debt. The rating, according to Moody’s, considers “metal price volatility, operating and development cost pressures (and) risk of major project delays,” among other factors.

These majors face a common set of challenges, but change brought about by falling prices is not necessarily a bad thing, said Carole Ferguson, analyst at SP Angel.

“It does depend on how [prices] fall and affect long-term operational forecasts,” she said. “But when prices get settled, buyers can look at valuations and pick up assets on the lower end of the cost curve.” Moreover, marginal projects are unlikely to come onstream, which should lend price support, she added. As pressure to lower

capital expenditures intensifies, overheads associated with projects in development, senior management wages, sub-contractor and consultancy costs, as well as overall staff numbers, could end up at the top of most lists for scrutiny.

Meanwhile, marginal producers all over the world are being shaken out.

Tanami Gold halted production and laid off staff at its Coyote Gold mine in Australia, which had quarterly production of just over 5,000 recovered ounces at a cash cost including royalties of C$2,005 per ounce. The majority of operations at U.S. Silver & Gold’s Drumlummon gold mine in Montana are set to close by the end of June after quarterly production of about 21,000 silver ounces and 2,150 gold ounces at US$2,288.73 per gold ounce. “Unfortunately production at the Drumlummon mine is not economically viable at current gold prices,” said its president and CEO, Darren Blasutti, upon releasing the company’s first quarter results.

“These are the first of many [closures] and I think it has just started,” Ferguson said, adding that high-cost

operations being shuttered are a good reflection of market sentiment. If shareholders are not expecting to get value from capital growth, she said, they are expecting it from income streams. But even companies announcing dividends are on the defensive. Randgold Resources, for example, recently paid a US$0.50 per share dividend amid a revolt over executive pay.

To better represent incurred expenses, the reporting of all-in cash costs is gaining momentum. The measure includes royalties, fiscal terms, sustaining capital expenditures and management overheads. It is not yet standardized across the industry, but the move towards greater transparency is widely applauded by the investment community.

And as the gold price remains volatile, the strategies that end up appeasing disgruntled investors have yet to be proven. For the foreseeable future, Ferguson said, managing costs is likely to remain the marching orders as shareholders look for austere operations and target inflated salaries at companies – both small and large. CIM

June/July 2013 | 21

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Mines built on trust Revenue-sharing agreements between B.C. and First Nations move projects forward

British Columbia recently signed a pair of revenue-sharing agreements that will see money the province takes in from the expansion of a mining project redistributed to local aboriginal communities. The latest accords are among a growing number that are helping miners and First Nations develop workable relationships.

On March 12, Aboriginal Relations and Reconciliation Minister Ida Chong, signed Economic and Community Development Agreements (ECDA) with both the Williams Lake Indian Band and the Xat’sull First Nation (Soda Creek Indian Band). The agreements promise each band shares of the revenue from Imperial Metals’ expansion of the Mount Polley mine, near Williams Lake, B.C. Under the agreements, 16.5 per cent of the Incremental Mineral Tax Revenue taken in by the province each year from Mount Polley will be given to the Xat’sull First Nation, while the Williams Lake Indian Band will receive 18.5 per cent.

At the signing, Williams Lake Indian Band chief Ann Louie noted such agreements are important so every party affected by a project benefits from it.

“For industry, First Nations and government to amicably co-exist, there has to be a reasonable sharing of the benefits derived from natural resources in First Nations’ traditional territories,” she said.

Courtesy of the Province of British Columbia

by Ian Ewing

Williams Lake Indian Band chief Ann Louie, left, signed an economic and community development agreement with B.C., on March 12, which will see the First Nation receive a share of the province’s mineral tax revenues from the expansion of Imperial Metals’ Mount Polley mine. Minister of Aboriginal Relations and Reconciliation Ida Chong, right, looks on.

The Mount Polley agreements are the sixth and seventh ECDAs the B.C. government has signed relating to mining in the traditional territories of First Nations groups, and the 14th and 15th non-treaty agreements signed overall.

“These agreements support the dialogue between First Nations and British Columbia that is critical to future planning and decision-making around the project,” said Chong.

ACHIEVEMENT FLSmidth’s Zahn wins MEI award Randy Zahn, chief mineralogist at FLSmidth’s Ore Characterization & Process Mineralogy Labs in the U.S., received the 2012 MEI Young Person’s Award at the Minerals Engineering International Physical Separation ’13 Conference in Cornwall, U.K., in June. Zahn was a key player in FLSmidth’s construction of state-of-the-art plant, process and engineering support labs in the process technology industry. A specialist in advanced automated mineral analysis for mining applications, Zahn has advanced heap leach pad surveys and pioneered an HPGR abrasion index test program via mineralogy, increasing the potential for time-consuming conventional tests to be a thing of the past.

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

“All in all, I think it’s enhanced the three-way relationship between government, First Nations and industry,” said Tim Fisch, general manager of the Mount Polley operation. Although the agreements do not take effect until expansion becomes operational in 2016, the company has already seen benefits. Fisch noted that they have seen their permitting process expedited in the wake of such agreements and consultations. “[The agreements] are meant to create a higher level of certainty for mining projects,” added Robin Platts, communications manager with the aboriginal relations and reconciliation ministry of B.C. “It speeds up the process of approval by creating support and partnership with First Nations with interests overlapping major mines.

“B.C. is definitely a leader in negotiating these types of agreements,” he said.

“B.C. was the first province to share mineral tax [royalties] from major mines with local impacted First Nations.”

Another company, New Gold, is also reaping the benefits of an earlier

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agreement. The New Afton mine near Kamloops was the subject of the first mining-related ECDA signed by the B.C. government three years ago.

Without the ECDA and a Participation Agreement signed with the Stk’emlupsemc of the Secwepemc Nation (SSN), the mine likely would not have been built. “The First Nations are our partners,� said Julie Taylor, director for corporate communications and investor relations at New Gold. “While the money helps smooth the way and definitely opens doors with the First Nations, that is not the most important aspect of what we have done. The benefits we have experienced from the work with SSN have a lot to do with the relationships we have forged rather than the money we have promised.�

SSN chief Shane Gottfriedson agreed that trust has been built: “I think the one thing with New Gold, they learned a lot from us. I think there are things they can improve on, [but] I think they’re a company that when they say they’re going to do something, they’re going to do it. We showed a lot of trust and patience in the company, and we’re going to receive the benefits in the near future,� he said, once the mine reaches its first full year of production and capital costs are paid down.

The agreements provide tangible benefits for all parties involved. For First Nations, the funds are a boost to their economic development efforts. For mining companies, the agreements provide certainty and a proven collaborative process to apply in the future. The province, meanwhile, considers the agreements as another part of its commitment to create new jobs and support existing ones.

And with New Gold pursuing the Blackwater gold-silver project near Prince George, B.C., its relationship with SSN should serve it well. “They’re very well-versed on how to deal with

First Nations and our issues, and I think they’ve been a good company that knows the process,� said Gottfriedson.

“I think they’re going to take that experience and use it working with the Blackwater project.� CIM

FACULTY OPENING LEADERSHIP AND INNOVATION IN SUSTAINABLE INORGANIC PROCESSING The Department of Chemical Engineering and Applied Chemistry invites applications for a <;:98;76<8;54352210:<4;:</30:3.-<85,<0+;3*;<5))98('35:&38;)5<;&3%;)&6$3#";352210:<4;:<3!0))3 ;35<3<";3 85: 31 3 6606<5:<3 81 ;661835:&3!0<"353:140:5)36<58<3&5<;31 3*5'3 /3 $3#";369,,;66 9)3,5:&0&5<;3!0))3 "5+;3&;41:6<85<;&3;-,;));:,;/3);5&;86"0235:&30::1+5<01:30:38;6;58,"35:&3<;5,"0:($3 Examples of the areas that are of particular interest include: 3 9;1963 81,;663*;<5))98('373 '&814;<5))98(' 3 01"'&814;<5))98(' 33 96<50:5 );3 81,;660:(31 3 :18(5:0,3 ;6198,;3*5<;805)63 *0:;85)6/3 56<;/3 ;60&9;6 35<35))3 6<5(;63 8;6198,;3;-<85,<01:/3281,;660:(/345:9 5,<980:(/3216<3,1:694;8/3;<,$ 3 3*0:;85)3 81,;660:( 33 96<50:5 );3 56<;3 062165)35:&3 ;6198,;3 ;,1+;8'/3 ;60&9;3 <5 0)0<'/3.:+081:4;:<5)3 Management of Mining Activities The Faculty of Applied Science and Engineering of the University of Toronto has had a long history 1 36<8;:(<"30:3,";40,5)3281,;6634;<5))98('$3 9830:<;:<3063<13;:"5:,;319836<8;:(<"30:3;-<85,<0+;3 4;<5))98('3!"0);35<3<";3654;3<04;35)0(:0:(3!0<"3<";3 ;'36<85<;(0,3&08;,<01:631 3696<50:5 0)0<'35:&3 ;:;8('$3#";3,5:&0&5<; 63;-2;8<06;3!0))3 ;3;-2;,<;&3<13,142);4;:<31983;-06<0:(36<8;:(<"630:3;-<85,<0+;3 4;<5))98('/3<";3;:+081:4;:<35:&3696<50:5 0)0<'35:&3&;+;)123)0: 63!0<"38;6;58,";8630:3<";3 ;258<4;:<3 1 3*5<;805)63 ,0;:,;35:&3.:(0:;;80:(35:&3<";3 5661:&;3 :6<0<9<;31 3*0:0:($3 #"0635,5&;40,32160<01:30631:;31 36;+;85)3<13 ;31 ;8;&31+;83<";3:;-<36;+;85)3';5863563258<31 353 6<85<;(0,3<"896<35,816636;+;85)3&;258<4;:<63<13 90)&36<8;:(<"30:358;5638;)5<;&3<13696<50:5 0)0<'30:3 40:0:(/340:;85)3281,;660:(/3;-<85,<0+;34;<5))98('/35:&345<;805)63281,;660:($3 <3<"063<04;/3<";8;3063 536049)<5:;19636;58,"3 '3<";3 ;258<4;:<31 3*5<;805)63 ,0;:,;35:&3.:(0:;;80:(3 183:;!3 5,9)<'30:3 58;563<"5<358;3,142);4;:<58'3<13<";3)06<35 1+;$ Applicants are expected to have a PhD in Chemical, or Metallurgical Engineering, Chemitry or ; 90+5);:</35:&3&;41:6<85<;&3;-,;));:,;30:38;6;58,"3563!;))3563;-,;));:<3<;5,"0:(36 0))6$3 16<&1,<185)31830:&96<805)3;-2;80;:,;30635:3566;<$3#";369,,;66 9)3,5:&0&5<;3!0))3 ;3;-2;,<;&3<13 0:0<05<;35:&3);5&35:30:&;2;:&;:<38;6;58,"3281(85431 30:<;8:5<01:5)3,5)0 8;/35:&3<;5,"30:3<";3,";40,5)3 ;:(0:;;80:(3,9880,9)9435<3<";39:&;8(85&95<;35:&3216<7(85&95<;3);+;)$3 1))5 185<0+;35:&30:<;87 &06,02)0:58'38;6;58,"35:&3,1));(05)30:<;85,<01:3!0))3 ;304218<5:<3;);4;:<630:369,,;66$ .)0(0 0)0<'3<13 8;(06<;8356353 81 ;6601:5)3.:(0:;;830:3 :<5801306353&;6085 );3 95)0%,5<01:$3 5)58'3!0))3 ;3,144;:6985<;3 !0<"3 95)0%,5<01:635:&3;-2;80;:,;$3 ))3522)0,5:<6358;3;:,1985(;&3<13522)'31:7)0:;3 '3,)0, 0:(31:3<";3)0: 3 ;)1!$3 );56;30:,)9&;3<";3 1))1!0:(345<;805)6 353,9880,9)943+0<5;/3536<5<;4;:<31 38;6;58,"3+0601:3!0<"353%+;3<13<;:3';583"180 1:3 <"8;;3<13%+;325(;6 /35:&3536<5<;4;:<31 3<;5,"0:(32"0)1612"'35:&30:<;8;6<6$3 3'193"5+;35:'3 9;6<01:63 5 19<3<"0632160<01:/32);56;3,1:<5,<3,"508$,";4;:( 9<181:<1$,5$3 ))3522)0,5<01:345<;805)636"19)&3 ;3 69 40<<;&31:)0:;$3 #";3 1 #3522)0,5<01:36'6<;43,5:35,,1441&5<;3923<13%+;35<<5,"4;:<63 3* 3<1<5) 32;83,5:&0&5<;3 281%); 32);56;3,14 0:;35<<5,"4;:<630:<131:;3183<!13%);630:3 * 3 18&3 1845<3 9 406601:3 (90&;)0:;63,5:3 ;3 19:&35<3"<<2 91 <$4; "1!7<17522)'$ 22)0,5:<636"19)&35)6135885:(;3 183<"8;;3);<<;8631 38; ;8;:,;3<13 ;36;:<3&08;,<)'3<13 5,9)<'6;58,"$ ,";4;:( 9<181:<1$,53 '3 ;2<;4 ;83 /3 $ #";36;58,"3!0))3,1:<0:9;39:<0)3<";32160<01:3063%));&$3#13;:698;3,1:60&;85<01:/30:<;8;6<;&30:&0+0&95)63 6"19)&369 40<3,142);<;3522)0,5<01:345<;805)63 ; 18;3 ;2<;4 ;83 /3 $ For more information on the Department of Chemical Engineering & Applied Chemistry please visit !!!$,";47;:($9<181:<1$,5$ ))3 95)0%;&3,5:&0&5<;6358;3;:,1985(;&3<13522)' 3"1!;+;8/3 5:5&05:635:&32;845:;:<38;60&;:<63!0))3 ;3(0+;:3280180<'$3#";3 :0+;860<'31 3#181:<130636<81:()'3,1440<<;&3<13&0+;860<'3!0<"0:30<63,1449:0<'35:&3 ;62;,05))'3!;),14;63522)0,5<01:63 8143+060 );340:180<'3(819234;4 ;86/3!14;:/3 180(0:5)32;861:6/3 2;861:63!0<"3&065 0)0<0;6/34;4 ;8631 36;-95)340:180<'3(81926/35:&31<";863!"1345'3,1:<80 9<;3<13<";3 98<";83&0+;860%,5<01:31 30&;56$3

June/July 2013 | 23

news

Is the juice worth the squeeze?

Quebec unveils new mining tax regime

The reception of Quebec’s new mining tax regime, announced on May 6, was rather chilly from both industry and civil society. The Parti Québécois (PQ) had promised hundreds of millions of dollars in increased tax revenues from mining companies during its last electoral campaign but now appears content with a more modest $50-million increase, estimated for 2015. And instead of padding the province’s coffers, some in the mining industry are saying the change will divert investment to other jurisdictions.

“We are disappointed to see that, once again, the rules of the game have been changed,” said Josée Méthot, president of the Quebec Mining Association.

“When an investor makes a deal, he does so according to an anticipated rate of return.” Since 2010, she noted, Quebec has fallen from first to 11th in the Fraser Institute’s annual ranking of mining jurisdictions. She added that Quebec is far from Asian markets, has high production costs, and is the most heavily taxed province in Canada. “Now, the government has just added to the investment cost.”

But civil groups are unsympathetic to the industry’s complaints. “I am under the impression that they got everything they wanted,” said Henri Jacob, president of Action Boréale, an environmental conservation group from Abitibi, a region that hosts half of Quebec’s operating metal mines. “The government had promised nearly $400 million in increased tax revenues,” he said. “It is now speaking of $50 million, one eighth of what was originally planned.”

The new regime, which will come into effect January 2014, introduces two tax options. The first is a tax on production value, and companies will have to pay as soon as they begin extracting minerals from the ground – whether operations are profitable or not. The PQ 24 | CIM Magazine | Vol. 8, No. 4

Courtesy of Miguel Legault

by Antoine Dion-Ortega

Quebec Premier Pauline Marois addresses an audience last November. Her Parti-Québécois government made big promises to increase mining royalties in the lead up to last fall’s election, but the new royalty system released in May has come up short for both industry and environmentalists.

had originally planned a five per cent tax on gross sales. However, that has been lowered to a range between one to four per cent, depending on value, and the tax base itself has been replaced with production value at the mine mouth, which refers to the mineral’s value when it comes out of the ground rather than when it reaches market.

All processing, administrative and commercialization expenses will thus be deducted from gross sales values before being taxed.

The PQ has also backtracked on its rent-based tax commitment that was originally planned to kick in as soon as a company’s internal rate of return reached eight per cent. (This tax tool is currently being used in Australia.) As its second option, the government will instead base taxes on profit margins.

The profit-based tax rate will be maintained at 16 per cent but will increase as soon as a company reaches a 35 per cent

profit margin. Companies will pay either the production or profit-based tax option, depending on which system brings the government the most revenue.

According to René Albert, tax services partner at PricewaterhouseCoopers, it is clear that these new tax tools will have an impact on mining projects, especially those with short lifespans.

“Projects with four- to six-year lifespans, common in the gold industry, will be affected significantly,” he said. “They could even be endangered.”

Short lifespan projects need to reach high rates of return in order to justify their investment cost. With the new profit-based tax kicking in when the rate of return exceeds 35 per cent, rates then begin to increase in proportion to rates of return, reaching 17.8 per cent for a 50 per cent rate of return, and then 21.2 per cent for a 75 per cent rate of return.

news

But the new regime is not all bad news. In an effort to retain secondary mineral processing in the province, the government has increased its treatment tax credit from 13 to 20 per cent for companies that have smelting and refining assets in Quebec. Also, companies that have had to pay royalties on production in years where they did not make a profit will be able to recover part of those royalties as tax credits on their profit-based tax payments later on.

Overall, the effects of the new regime will be significant in periods where profits are high, according to Albert.

Otherwise, it is still too early to make any general assessment. “Only experience will tell,” he said. “It will depend on metal prices. But for now, it is clear that the production-based tax will have an impact on small-scale, less profitable projects. It could make a difference in where investors want to invest.”

The new regime will come into force in January 2014, but will eventually

need to be approved by the national assembly, where the PQ holds a minority government. As is often the case in

Quebec, this could happen many months or even years after the regime has entered into force. CIM

QUEBEC’S TAX RATES IN A NUTSHELL Companies will pay only the highest of either:

A tax on the production • 1 % of the first $80 million • 4 % of the production value that exceeds $80 million

OR

A profit-based tax • 0 to 35 % rate of return: 16 per cent tax

• 35 to 50 % rate of return: From 16 to 17.8 per cent tax

• 50 to 100 % rate of return: From 17.8 to 22.9 per cent tax

June/July 2013 | 25

news

Le jeu en valait-il la chandelle?

Québec dévoile son nouveau régime d’impôt minier Par Antoine Dion-Ortega Le nouveau régime d’impôt minier, annoncé le 6 mai, a été accueilli plutôt froidement tant par la société civile que par l’industrie. Tandis que le Parti Québécois (PQ) avait promis, durant sa campagne électorale, une augmentation de plusieurs centaines de millions des recettes fiscales issues du secteur, il se contentera plutôt d’une modeste variation de 50 millions, selon les prévisions pour 2015. Bien loin de renflouer les coffres de l’État, ce changement de régime pourrait avoir l’effet contraire et décourager les investissements miniers dans la province, craint l’industrie. « On est déçus de voir que, encore une fois, on change les règles du jeu », réagi Josée Méthot, présidente de l’Association minière du Québec. « Quand un investisseur fait un placement, il le fait en fonction d’un rendement anticipé. » Depuis 2010, a-t-elle noté, le Québec a dégringolé de la première à la onzième place dans le classement annuel des meilleures juridictions minières de l’Institut Fraser. Elle a ajouté que le Québec se trouve loin des marchés asiatiques, présente des coûts de production élevés et est déjà la province la plus imposée au Canada. « Et maintenant, on vient d’ajouter des coûts. » Les groupes civils, quant à eux, se méfient des plaintes de l’industrie. « J’ai l’impression qu’ils ont eu tout ce qu’ils demandaient », a mentionné Henri Jacob, président de l’Action boréale, un groupe environnementaliste de l’Abitibi, où se trouve la moitié des mines métalliques de la province. « Le gouvernement avait promis près de 400 millions en revenus supplémentaires. Il parle maintenant de 50 millions, soit un huitième de ce qui était prévu. » Le régime, qui entrera en vigueur en janvier 2014, introduit deux nouveaux instruments fiscaux. Le premier est un impôt sur la valeur de la production, que les sociétés devront payer dès qu’elles commencent à extraire du minerai, que leurs opérations soient rentables ou non.

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

Le PQ avait d’abord promis un impôt de 5 pour cent sur la valeur des ventes. Non seulement ce taux a été abaissé à 1 ou 4 pour cent selon la valeur, mais la base même d’imposition a été remplacée par la valeur de la production « à la tête du puits » (VPTP), c’est-à-dire la valeur du minerai lorsqu’il sort du sol plutôt que lorsqu’il arrive sur le marché. Les dépenses de traitement, de commercialisation et d’administration seront donc déduites de la valeur des ventes avant que le taux ne s’applique.

Le PQ a également reculé sur son impôt à la rente, qui devait à l’origine se déclencher dès q’une société enregistrait un taux de rendement interne de 8 pour cent – un mécanisme inspiré de l’Australie. Le gouvernement utilisera plutôt la marge bénéficiaire : l’impôt sur les profits sera maintenu à 16 pour cent mais commencera à augmenter dès que la marge d’une société dépassera les 35 pour cent. Les sociétés ne devront payer que le plus élevé des deux impôts, soit celui sur les profits ou l’impôt minimum sur la VPTP. Selon René Albert, partenaire de services fiscaux chez PricewaterhouseCoopers, il est clair que ces nouveaux mécanismes auront un impact sur les projets miniers, particulièrement ceux qui ont une courte durée de vie. « Les projets de quatre à six ans, comme on en voit souvent dans l’or, vont être affectés de façon significative », a-t-il soutenu. « Ils pourraient même être en péril. » Les projets de courte durée doivent pouvoir atteindre des marges bénéficiaires élevées pour que leurs investissements soient justifiés. Avec l’impôt à la rente, les taux augmenteront en fonction des marges, atteignant 17,8 pour cent pour une marge bénéficiaire de 50 pour cent, puis 21,2 pour cent lorsqu’elle atteindra 75 pour cent.

Il n’y a toutefois pas que des mauvaises nouvelles dans ce régime. Afin d’inciter les sociétés à investir dans des actifs de traitement au Québec, le

gouvernement augmentera l‘allocation de traitement de 13 à 20 pour cent – déduite sur la base d’imposition du profit – pour celles qui procèdent à des activités de fonte et d’affinage à l’intérieur de la province. De plus, les sociétés qui doivent payer une redevance sur la VPTP dans leurs années de vache maigre pourront en récupérer une partie sous forme de crédits d’impôt lorsqu’elles commenceront à payer un impôt sur leurs profits.

De façon générale, les effets du nouveau régime se feront surtout sentir dans les périodes de profits élevés, a estimé M. Albert. Mais sinon, il est trop tôt pour se lancer dans des prévisions. « Seule l’expérience nous le dira », a-t-il dit. « Ça va dépendre des prix des métaux. Mais pour le moment, il est évident que la redevance sur la VPTP affectera les petites exploitations, moins rentables.

Cela pourrait influer sur la décision d’investir au Québec ou ailleurs. » Le nouveau régime entrera en vigueur en janvier 2014, mais il devra éventuellement être approuvé par l’Assemblée nationale, où le PQ forme un gouvernement minoritaire. Comme c’est souvent le cas au Québec, le vote pourrait avoir lieu plusieurs mois, voire des années, après l’entrée en vigueur du régime. ICM

Une taxe sur la VPTP • 1 % sur les premiers 80 millions $ • 4 % sur l’excédent de 80 millions $

OU

Une taxe sur les profits • 0 à 35 % de la marge bénéficiaire : 16 % • 35 à 50 % : De 16 à 17,8 % • 50 à 100 % : De 17,8 à 22,9 %

G Confe r

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CHINA

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Premier International Mining Conference & Exhibition

November 02 â&#x20AC;&#x201C; 05, 2013 Tianjin Meijiang Convention Center Hosted by Ministry of Land & Resources, China Tianjin Municipal Government, China China Mining Association Investment â&#x20AC;&#x201C; Cooperation â&#x20AC;&#x201C; Trade About the Event CHINA MINING Conference & Exhibition one of the worldâ&#x20AC;&#x2122;s largest mining investment, cooperation and trade events - covers the whole mining value chain, including geological surveying, exploration development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services and more. t Premier international mining conference and exhibition with a focus on China and major mining countries t The event where the global mining industry meets China's booming mining market t Over 6,000 delegates from 57 countries and regions around the world representing all areas of the mining industry t Around 430 exhibitors from mining and exploration companies, mining technique and equipment suppliers, financial institutions and service providers t Government officials, high-level speakers from major and junior mining companies, investment banks and law firms

Main Topics Include Summits t Opening Ceremony t .JOJOH .JOJTUFST 'PSVN t .JOJOH %FWFMPQNFOU 'PSVN Policies and Financing t .JOJOH 'JOBODF BOE $BQJUBM .BSLFU t .JOJOH 3JHIUT 3FHVMBUJPOT BOE 1PMJDJFT t 4USBUFHJD 1MBO GPS .JOFSBM 1SPTQFDUJOH Exploration t $IJOB 0VUCPVOE .JOJOH *OWFTUNFOU Prospecting, Exploration and Mining t $IJOB (FPMPHJDBM 4VSWFZ t (MPCBM .JOJOH &YQMPSBUJPO 5SFOET t 4VQQMZ BOE %FNBOE PG ,FZ .JOFSBMT t (FPMPHJDBM 1SPTQFDUJOH 4DJFOUJĂśD BOE Technical Innovation t 4UBUVT BOE 1PMJDZ PG $PNQSFIFOTJWF 6UJMJ[BUJPO PG .JOFSBM 3FTPVSDFT t +VOJPS .JOJOH &YQMPSBUJPO *OWFTUNFOU 'PSVN Mining Commodities t *SPO 0SF t 1SFDJPVT .FUBMT t #BTF .FUBMT t 6SBOJVN t 0UIFS .FUBMT /PONFUBMT Country Investment/Trade t .JOJOH JO $BOBEB t .JOJOH JO "VTUSBMJB

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Coherent Events CHINA MINING Equipment Show On the 8th year, China Mining Equipment 4IPX JT EFEJDBUFE UP UIF MBSHFTU BOE NPTU professional mining equipment show providing the trade platform for equipment producers and buyers.

CHINA MINING Awards t *OWFTUJHUJPO BOE &WBMVBUJPO 0VUTUBOEJOH Achievements Award t 1SPTQFDUJPO BOE &YQMPSBUJPO 0VUTUBOEing Achievements Award t .JOF %FWFMPQNFOU 0VUTUBOEJOH Achievements Award t .JOJOH &OWJSPONFOUBM 1SPUFDUJPO Outstanding Achievements Award t 5FDIOPMPHJDBM *OOPWBUJPO 0VUTUBOEJOH Achievements Award t (PWFSONFOUBM 4VQQPSU 0VUTUBOEJOH Achievements Award

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M A C E C O N O M I C C O M M E N TA R Y

columns

Canadian miners busy navigating new marine pollution rules

BY BRENDAN MARSHALL

ew rules from the International Maritime Organization (IMO) have significantly changed the shipping practices of many mining products. Beyond the logistical hurdles, a confluence of factors has Canadian miners working diligently to ensure compliance in uncharted waters.

IMO is the UN special agency responsible for the safety and security of shipping and the prevention of pollution by ships.

On January 1, 2013, extensive amendments to Annex V of its MARPOL convention came into force. The movements of some classifications of nickel, copper, zinc and lead concentrates were affected, and more products are likely to be captured as new rules are phased in on January 1, 2015. The transition in Canada is being further complicated by a lack of preparedness to adapt to the new regulatory model, and inconsistent implementation approaches by different countries.

and the methodology for determining whether some concentrates are HME has not yet been developed. This important work is presently being undertaken by commodity associations and takes time.

Another difficulty is the requirement to declare bulk cargo classifications as HME or not. This issue is complicated by the fact that countries are implementing the new provisions on different timelines. The U.S. Coast Guard published an Interim Rule in February advising that parties are expected to already be in compliance. However, MAC understands that Canada will not be implementing these measures for two to three years.

This raises many questions for affected miners. What happens when a ship master receives an unclassified or misclassified product, or when the port of destination does not have APRF? Who does an international shipper declare to in Canada if the new rules are not yet imple“Many ports lack the necessary infrastructure mented? Might this result in a carrier’s decision to comply with these rules.” not to import or export a mining product due to increased risk of violating international law?

This could present a significant interruption to estabMiners must now classify and declare all solid bulk cargoes to indicate whether they are harmful to the marine envi- lished trade routes or disruption to the movement of affected ronment (HME) – a new category of “garbage” within Annex mining products, adversely affecting Canadian trade and the V. Specific toxicological criteria have been included in IMO’s international reputation of our industry. Given that mining 2012 Guidelines for Implementation that determine if a bulk accounted for 128 million tonnes, or 37 per cent, of Canada’s cargo is HME. If so, discharging any amount of that sub- total international marine tonnage in 2011, these impacts may prove harmful to our economy. If coal is included, in stance into the sea is prohibited.

These amendments signify a paradigm shift in IMO’s 2015, nearly 56 million tonnes of product moved to and approach to managing marine pollution. Previously, Annex V from Canada could be affected, making onerous and costly permitted the disposal of garbage at sea with certain excep- demands on our marine infrastructure. tions. The new regime does an about face by setting a blanket Due to this uncertainty and the anticipated impacts, in late prohibition on the disposal of garbage at sea, except as oth- May the IMO granted a conditional relaxation of the discharge erwise noted in Annex V. Of interest to miners is that the def- requirements until December 31, 2015. To ensure preparedinition of “garbage” includes the “cargo residues” of many ness, miners should engage their commodity association non-packaged dry bulk cargoes and, therefore, captures about potential implications for their product. A consultation many commodities that miners marine-ship in bulk. is expected to begin this summer regarding the domestic Once a bulk cargo ship is unloaded, the cargo hold is implementation of the new measures. MAC has been proacwashed down, collecting cargo residues in the wash water tively working with a broad group of affected industry stakethat would, under the previous rules, be discharged at sea on holders, and with officials from Transport Canada, to ensure that ship’s next voyage. Under the new regime, cargoes classi- a coordinated, multi-stakeholder approach to implementation fied as HME need adequate port reception facilities (APRF) – gets it right. CIM or qualified third-party waste managers – at both loading and unloading ports to collect and properly treat the wash water.

This presents a significant challenge, as many ports lack the necessary infrastructure to comply with these rules. In fact, a 2013 survey of shipowners in Europe, Japan and South Brendan Marshall is director of economic affairs at MAC. He works to advance Korea, identified 25 of 53 ports without APRF in place. mining industry’s interests and understanding of key economic issues such More compliance challenges include classifying concen- the as taxation, transportation, innovation, international trade and investment, and trates, which requires very specific and consistent science, energy and climate change.

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

FINANCE

columns

De-risk your mining assets to access capital

BY MAURO CHIESA

isk-averse capital markets look for dividends and pre- the more buoyant metal markets and the difficulty in dictability. This adds two new dimensions for mining procuring capital, however, new projects require careful companies that need financing to consider: cash-flow reassessment as multi-phased projects in order to live within sustainability and risk management. Meeting “guidance” is capital budgeting limits and self-financing of subsequent now the miners’ mantra, as opposed to offering upside and phases. Additional benefits include a longer life of mine to hints of finding potentially vast sources of ounces, pounds or attract buy-in from public officials, along with added flexitonnes. To quickly adapt, companies need to adopt a de-risk- bility: two phases may be rolled into one (i.e.: Penasquito; ing strategy for both operational and developing mining assets. Pueblo Viejo) while the reverse is not possible.

Far too many reporting systems focus on the ounces rather than the full costs associated with the existing or developing Meeting “guidance” is now the miners’ mantra, as assets. The typical mining company opposed to offering upside and hints of finding today can span operations in six potentially vast sources of ounces, pounds or tonnes. continents and involve a broad range of direct, indirect, joint, common, and sunk costs. A management information system is Better Reserve/Resource: Drilling programs can be refoessential for better decisions to be made across all these infor- cused towards higher quality Reserves and/or Resources, mation “silos.” SAP and Microsoft, among others, have off- with infill and step-out drilling, as opposed to pursuing total the-shelf systems to address such needs. ounces. Given the variability of metal markets over the last With such systems in hand, senior management then five years, the markets may also wish to know the in situ finds itself with more complex decisions to make, especially metals contained at a broad range of presumed metal market when rationing capital. One essential strategy to deploy is prices. an internal risk assessment panel that looks at projects and Solvent mine plans: Mine plans and production profiles issues to ensure that all dimensions have been addressed once focused on net present value of the producing asset. across all “silos” before senior management approaches The mine plan is now increasingly scrutinized for its early the board. and continuous FCF, especially if the project is in either a With costs and risk properly weighted, a company can precarious political or frontier situation, and market-funding then focus on the following issues: in the longer term is less certain.

Finding cash-flow sources: All producing and cost units Permitting: The permit is a binary element that is impossible must be assessed to determine where the free cash flow to price. The early and flexible development of permits is (FCF) originates. FCF is the operating cash flow, after the crucial, and the inclusion of all authorities (and of your legal required sustaining capex, and it indicates self-sufficiency. counsel) cannot be understated. Permits are now also seen as While simple to explain, it becomes complicated if direct or having lives of their own, and thus their ongoing manageindirect overhead costs, or joint and shared costs, exist. ment is essential, as their suspension can easily become irrevAdditional complexity arises from shifting geographic mar- ocably politicized. kets. For instance, an iron ore mine on the North Atlantic The data room: The electronic data room is now a central may no longer be optimal if new booming markets are in depository for the validation of assets – in both operation Asia, and oil is at $120 per barrel or more. and development. The validators must have internationally Public sector impact: Public sectors played a substantial recognized reputations to attract international capital. The role in the past, offering incentives such as subsidized infra- information base must also be clear, concise, current and structure, energy, training or restitution costs. Public sectors consistent. NI 43-101-compliant reports are always necesin deficit may have to modify such contributions and per- sary but far from sufficient. haps increase the taxes and royalties. Therefore, it behooves The above are straightforward and essential initiatives for the company to assess its assets without taking such public a mining company striving to survive and prosper in today’s contributions into consideration and assessing a higher tax buyer’s market. Information is power: internally and in the and royalty regime. markets. CIM Phased projects: Economies of scale once assured low-cost Mauro Chiesa has more than 33 years of experience in financing and advising operations and survival in markets that saw, for instance, extractive and infrastructure projects around the world. He has worked with nickel and copper prices at or under $1 per pound. Given multinational banks, the World Bank Group and EDC.

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LEGAL PERSPECTIVE

columns

Keewatin vs. Ontario: less uncertainty for the mining sector

BY JOCELYN KEARNEY

ntario’s land management powers in treaty land disputes were preserved by the Ontario Court of Appeal’s March 18 decision in Keewatin vs. Ontario (Minister of Natural Resources), providing more certainty for developers in the mining sector. The case involved a challenge by Grassy Narrows First Nation to a forestry licence issued by the Ontario minister of natural resources to Abitibi-Consolidated Inc. allowing the company to carry out clear-cut forestry operations in certain parts of Treaty 3 territory. That 1873 treaty saw the Saulteaux Tribe of the Ojibway Indians surrender their interest in a large tract of land – in what is now northwestern Ontario and eastern Manitoba – to Canada, in exchange for reserves, payments, and other benefits. Under a harvesting clause in the treaty, the Ojibway retained the right to hunt and fish throughout the surrendered lands, except on areas “required or taken

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up for the settlement, mining, lumbering or other purposes by [the] Government of the Dominion of Canada.” Grassy Narrows argued that Ontario’s licence grant to Abitibi violated this harvesting right.

At issue on appeal was whether Ontario had the right to take up the lands in question without Canada’s approval.

The trial judge had held that Ontario did not have the right to take up lands under the treaty, and could only authorize uses that do not substantially interfere with harvesting rights. Uses that interfere with harvesting rights would require the approval of the federal government, which had made the treaty with the Ojibway and to which the authority to take up lands was granted.

But the Court of Appeal allowed the appeal, emphasizing that the Ojibway’s treaty partner was the Crown, not Canada, and that beneficial ownership of the lands had been transferred

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

to Ontario, together with the corresponding treaty rights and obligations, including the full power to take up lands.

Further, the court found that a two-step federal-provincial approach to taking up treaty lands was cumbersome and unnecessary to protect the harvesting right.

Perhaps most important was the appeal court’s reversal of the trial judge’s holding that Canada’s subsection 91(24) jurisdiction over “Indians” gives it a residual and continuing role in Ontario’s use of the “taking up” provision, which the Court of Appeal found to be at odds with binding case law. The court held that to expand this subsection to include a supervisory power over taking up of treaty lands would render provincial jurisdiction over the disposition of management of public lands and forests within the province illusory.

At first blush, the Keewatin decision is limited in effect, as Treaty 3 is unique in both its wording and historical context. However, in many ways, the decision helps provide the certainty and clarity that developers in the natural resources and mining sectors seek. The decision clarifies that in the context of historical treaties, the treaty promises were made by the Crown, and that only one level of government is required to step into the shoes of the Crown and carry out its responsibilities.

The decision also preserves the right of the provinces to manage their public lands. As a result, developers have some certainty that provincially granted licences and authorizations of Crown lands cannot be challenged for lack of federal approval or participation in the consultation process.

This decision does not, however, change the scope of consultation required before treaty lands can be “taken up.” The province cannot take up lands so as to deprive signatory First Nations of a meaningful right to harvest in their traditional lands, and any taking up must be preceded by consultation and, if necessary, accommodation.

Developers are wise to actively participate in that consultation process, thus mitigating risks associated with inadequate consultation by, for example, holding early-stage discussions with the government to determine a consultation plan and the appropriate role for the developer.

Recent amendments to Ontario’s Mining Act have helped clarify the proper roles and responsibilities of developers in the consultation process.

It is expected that the decision will be appealed to the Supreme Court of Canada. If so, the decision will have the effect of precedent throughout Canada. As of now, only the Ontario courts are bound by its precedent, though other provincial courts will certainly take this decision into consideration. CIM

A MINE OF SOLUTIONS Technical, economic and feasibility studies NI 43-101 technical reports Mine planning, design and simulation Plant design and simulation Project management EPCM projects Commissioning assistance Power generation Power transmission and distribution Process optimization and control

Jocelyn Kearney is an associate in the Toronto office of Norton Rose Canada LLP. She maintains a varied business law practice with emphasis on aboriginal and environmental matters.

June/July 2013 | 31

I N N O VAT I O N

columns

A coordinated approach to tackle industry challenges

BY CARL WEATHERELL

hat exactly is this thing we call innovation? Innova- discuss and determine the path forward to address these tion is creating real value by bringing something new challenges. Next, we develop the project plan, acquire fundto the workplace. This can be done in a few minutes ing from multiple sources and finally execute. or in a few decades, and it does not necessarily mean a new The Footprints project was officially launched at Barrick discovery, invention or process. Many of today’s innovations Gold’s head offices on May 13, with Minister of State (Science are technologies or processes that already exist but are simply and Technology) Gary Goodyear describing it as “providing applied in a different way. global leadership to the mining industry.”

At the Canadian Mining Innovation Council (CMIC), we But we aren’t stopping there. Right now, CMIC is taking are applying this simple definition of innovation to every- on two new initiatives. The Minesnorth initiative will catthing we do. We have rapidly expanded our reach beyond alyze the industry’s shift towards sustainable and environthe mining industry to other sectors of the economy – infor- mentally responsible mining that benefits Canada’s northern mation and communication technology, clean-tech, aero- communities and the northern economy. This shift will be space and defence, nanotechnology, and genomics – and realized through projects that aim to reduce energy conhave started looking into a few interesting innovations in quantum computing.

We are also talking to venture capitalists Many of today’s innovations are technologies (VC), foundations and institutional or processes that already exist but are simply investors that provide start-up funding, and small- and medium-sized enterapplied in a different way. prises (SMEs) that could provide value to the mining industry.

Our rationale is simple: solutions may exist or are in the sumption and emissions; decrease the impact of mining projprocess of being developed in other sectors that could pro- ects on the environment through the handling of waste rock vide value to the mining industry. Foundations and VCs and tailings; improve efficiency of transportation and logistypically have a broad range of companies in their portfo- tics; and, importantly, work closely with northern resident lios and they have performed significant due diligence on communities. We have submitted a proposal for funding to these technologies and companies. In some instances, these the Government of Canada as one of many steps required to start-ups or SMEs may not be focusing on providing solu- launch this initiative. tions to the mining industry. By understanding the value The second new approach is related to the cyclical nature proposition these companies may provide to our industry, of the mining industry and the retention of incredibly talhowever, we are in a better position to understand these ented people. As the industry enters down cycles, such as the state-of-the art processes and potentially direct new tech- one we are in right now, many experienced and knowledgenologies towards us, effectively solving problems and creat- able people are let go as companies struggle with financial ing economic benefits. challenges. In other sectors across Canada, there are organiCMIC’s first project in exploration, Integrated Multi-Para- zations such as Start-up Canada that are committed to helpmeter Footprints of Ore Systems, is a five-year, $13-million ing build new companies that provide value to the project that seeks to build a new generation of multi-parameter marketplace and generate economic wealth. We have had ini“footprint” models of mineral deposits and to develop a tial discussions to ask how we, the mining industry, can be methodology to vector more effectively towards the potentially similarly entrepreneurial by helping many of the talented economic core of a system. individuals create new companies that address some of the Critical in the success of launching this project were the industry’s greatest challenges. Can we create Start-up Mindeep collaboration and leadership from the mining industry ing? and our industry-driven approach. CMIC employs a five-step At CMIC, we truly are industry-led and innovation-driprocess by, first, creating consortia of senior individuals from ven. Join us to help make Canada’s mining industry the the mining and service industries in order to identify the absolute best in the world. CIM greatest challenges faced in exploration, mining, processing, environmental stewardship, energy and human resources. Carl Weatherell is the executive director and CEO of the Canada Mining Council (CMIC), which builds partnerships between business, We then assemble the best and brightest from these fields, Innovation government, universities and colleges to help drive innovation in the mining as well as from colleges, universities and governments to industry.

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

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An Introduction to Cutoff Grade: Theory and Practice in Open Pit and Underground Mines

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.

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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: Marcelo Godoy, Golder Associates, Chile; and Roussos Dimitrakopoulos, McGill University, Canada • DATE: September 9 - 13, 2013 • CITY: Montreal, Quebec, Canada

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upfront MASS MINING

Intercontinental connectivity Rio Tinto creates integrated data management system for all its cave mines

Courtesy of Rio Tinto

by Alexandra Lopez-Pacheco

Without an intuitive way to track data, it can get lost easily if key users retire or change roles.

“Typical databases evolve over time, and how well a database is preserved and maintained is dependent on the skills of the people at the mine at any given time,” says Andre van As, chief advisor of geotechnical engineering at Rio Tinto’s Underground Technology Centre in Australia.

“If you have turnover of staff, which mines typically do, continuity and consistency becomes challenging.”

Van As is aiming to tackle these issues as head of Rio Tinto’s CaveCad project – the development of an integrated cave management system that connects all of the data emerging from Rio Tinto’s geotechnical monitoring, analysis and reporting tools in all of its existing and planned cave mines.

Rio Tinto’s CaveCad data management system is in use at Oyu Tolgoi in Mongolia, and will allow data to be compared “The focus of the new software across the company's portfolio of cave mines. is very much on mines in development and production, hence the collection and reporting of tunnelling and production perp until 2010, Rio Tinto handled cave management formance statistics,” says Mathijs Mol, a mining engineer at the data from its cave mines as most mining companies Rio Tinto Underground Technology Centre and part of the do: by leaving the system and method for data collecteam developing and implementing CaveCad. While CaveCad tion and analysis up to individual operations. That continues to mature, Rio Tinto has already introduced the sysmeant each mine stored data in multiple, and often uncontem in five of its mines, including its Northparkes copper mine nected, databases and spreadsheets, which were analyzed as and Argyle diamond mine in Australia, along with the Palabora needed by engineers using a variety of software for specific purposes. The way each operation did this varied widely, and copper mine in South Africa, which it recently sold. CaveCad sharing data across operations, even though Rio Tinto is one of is also in use at the Oyu Tolgoi copper and gold mine in Monthe most experienced cave mining companies in the world, golia, and the Resolution copper mine in Arizona. was difficult at best.

“Data has traditionally been gathered in what amounts to Modelling and analysis demand quality silos,” says John McGaughey, president of Mira Geoscience “The rationale for bringing all of this different data Ltd., a Montreal-based company that specializes in multidisci- together to do more advanced analysis seems like common plinary three-dimensional (3D) modelling and data manage- sense, but for practical and technical reasons, it’s been difment technology for the mining industry. “Production data has ficult,” says McGaughey, who has been working with Rio been used by people looking at production statistics. Other Tinto on CaveCad. “As well, I think the need for this type data has been used by engineers responsible for mine stability, of data management wasn’t recognized so much in the past geology data by geologists, and rock quality data by geotech- because the analytical tools weren’t that sophisticated. With nical specialists for initial design purposes.” more sophistication in modelling and analysis technology

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

upfront Courtesy of Rio Tinto

MASS MINING

CaveCad shows a caved area breaking through the surface at a certain moment in time.

has come a demand for more sophistication in data management.”

Rio Tinto’s new system began with engineers at the company’s Underground Technology Centre exploring the capabilities of such off-the-shelf software as Mira’s Gocad Mining Suite (a mining-customized extension to the Paradigm Gocad petroleum-industry modelling engine), which can build integrated multidisciplinary 3D earth models. “We decided we wanted to look at what else we could do with it,” says Mol. Their efforts led to the development of even more sophisticated 3D models – and the new CaveCad system. “Currently, we can access an SQL database from within the Gocad environment and can query different types of data and select specific periods in time and create Gocad objects from those, which wasn’t possible before,” says Mol.

Cross-platform development Rio Tinto turned to Mira Geoscience for its integration and customization expertise. “We’ve used off-the-shelf components but we’ve also created a fair amount of software within the [CaveCad] project,” says McGaughey. “The heart of CaveCad is a relational database, and that has been implemented in Microsoft SQL server, but the database application had to be custom written.”

The two main off-the-shelf components are Gocad, used for 3D visualization, and Jaspersoft, an application environment that provides tools for generating reports from a database. The system’s main application interface is a web browser with a combination of custom-written components and Jaspersoft tools, including report archiving, formatting, scheduling and the ability to dispatch the reports to selected individuals or company departments. The system also has real-time Trigger Action Response Plans (TARPs) in the form of geohazard maps that alert site personnel of required responses to abnormal deviations in mine conditions and are kept up to date with real-time data. In fact, CaveCad is constantly being fed drawpoint observation data, such as fragmentation size distribution, geology, percentage fines, grade, and moisture content, much of which is gathered automati-

cally with instrumentation on the site.

“The data comes into the system as it is collected. In some cases it can be once a week, for example, while in others it’s every five minutes, or virtually real time,” says Mol. CaveCad provides a central location that can tap into all the database sources. “It brings the essential data from each of those different systems into one single data repository for the purposes of geotechnical management of the operation. This allows for different kinds of analysis on the data for advanced understanding of the evolution of different geotechnical risks in the mine that otherwise you wouldn’t be able to do,” says McGaughey. For example, because the geohazard map component monitors and records water, clay and fines proportions and is linked to a mine’s production and seismic systems, it empowers the mine’s personnel with sophisticated mud rush risk mitigation capabilities.

MOVING ON UP E+H names new CEO Endress+Hauser promoted Matthias Altendorf to the post of chief executive, a move that will take effect on January 1, 2014. The decision came following Klaus Endress’s announcement that he will withdraw from the operative business and take his seat in the company’s supervisory board.

Altendorf is currently managing director of E+H’s largest plant in Maulburg, Germany, and has been on the executive board for the last four years. Altendorf’s appointment is “in close consultation with the shareholder family and with their full support,” said Klaus Riemenschneider, president of the supervisory board. “Announcing the succession at an early stage will provide clarity and smooth the transition.”

June/July 2013 | 35

upfront MASS MINING

“What we’re trying for is engineers being able to spend time being engineers, rather than spending three-quarters of their time collecting and processing the data.”

– Andre van As Trial by fire “We’re now trying to centralize and standardize across the entire group, which is not easy given we are a big multinational company with different people, mines, countries and products,” says van As. “But if we have new people coming in, they don’t have to relearn anything or search for the data. It will all be at their fingertips. By centralizing, we’re also safeguarding the data and making sure it’s not lost and that it’s on the same format across the board. And from a benchmarking perspective, we can now measure apples against apples at different mines as well.

With CaveCad, all our metrics will be consistent.”

And all of this is for a relatively small cost, with most of it devoted to the development of the system. “It hasn’t cost us very much at all,” says van As. “We’re taking off-the-shelf products and customizing them to suit us.”

But low cost does not indicate a small achievement. “It was pretty challenging actually gathering detailed scopes of work which would be appropriate for all the different mines,” says

Mol. “We have it running at copper mines and diamond mines, and some of it is only appropriate for one or another.

Take sample grades: for copper, you can get samples pretty easily and have them back from a lab within a week or so, but that’s not the case for diamonds. We try to keep it as generic as possible, but it will always need some degree of customization for each mine.”

The system continues to be a project in development and is still in Phase 1. CaveCad will continue to improve and evolve in its capabilities, which are ultimately about improving employees’ ability to make the best possible decisions.

“Because it is all integrated and you can get the data automatically, it bypasses a lot of manual errors and it allows engineers to look at the results of the data much faster than taking a week to process it,” says van As. “What we’re trying for is engineers being able to spend time being engineers, rather than spending three-quarters of their time collecting and processing the data.” CIM

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

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EXECUTIVE DIRECTOR –EARTH AND ENERGY RESOURCES LEADERSHIP PROFESSIONAL PROGRAM Faculty of Arts and Science and Faculty of Engineering and Applied Science Queen’s University, Kingston, Ontario, Canada

One of Canada’s leading universities, Queen’s has a long-standing reputation for academic excellence, research, and a diverse and vibrant learning environment.

With its strong tradition of public service, the University has helped to shape Canadian values and policies, educating notable political and cultural figures.

Queen’s University is located in the heart of the community in historic Kingston, midpoint between Montreal, Toronto, and the nation’s capital.

Queen’s is seeking an outstanding individual to become the Executive Director of the new professional program in Earth and Energy Resources Leadership. Funded for the first three years by a generous alumni donation, this program will provide students with a comprehensive professional program, integrating courses taught by faculty and experts in the fields of Geological Sciences and Geological Engineering, Chemical Engineering, Policy, Law, Finance and Business.

The position will be based in Kingston, Ontario and the Executive Director will report to the Dean of the Faculty of Arts and Science and to the Dean of the Faculty of Engineering and Applied Science. During an initial three-year appointment, the Executive Director’s mandate will be to build and lead all aspects of an interdisciplinary and collaborative professional Master’s degree program in Earth and Energy Resources Leadership that has both national and international scope and impact. The program will be designed to meet the emerging needs of industry. The Executive Director will be responsible for the creation, development, growth, success and reputation of the program, in the context of the strategic plan and priorities of the University and the faculties.

We are seeking a well-known and respected industry expert from the resource sector. The ideal candidate will have: A university degree in geological engineering or geology, chemical engineering, business, law, finance, public policy or other relevant field; a graduate degree is considered an asset.

Minimum 10 to 15 years of progressive experience in the Earth and Energy Resources sector, including several years at a senior executive level.

Demonstrated genuine interest and knowledge of and/or experience in a post-secondary educational environment.

Additional details can be found in the Position Profile posted at: www.geol.ca Applicants should send their curriculum vitae, contact information, and the names of three referees including their contact information to: Robert P. Lemieux, Ph.D. Associate Dean (Research), Faculty of Arts and Science F300, Mackintosh-Corry Hall Queen’s University Kingston, Ontario, Canada K7L 3N6 email: rpl@queensu.ca Review of applications will begin on July 15th, 2013. Applications will be accepted until the position is filled, preferably by September 1st, 2013.

The University invites applications from all qualified individuals. Queen’s is committed to employment equity and diversity in the workplace and welcomes applications from women, visible minorities, aboriginal people, persons with disabilities, and persons of any sexual orientation or gender identity.

www.queensu.ca

All qualified candidates are encouraged to apply; however, Canadian citizens and permanent residents of Canada will be given priority.

upfront MASS MINING

Fracturing tradition Cadia fracking tests could open doors in rock de-stressing and oil and gas extraction

Courtesy of CEMI

by Ian Ewing

A 3D illustration of induced seismicity in an underground mine

n underground mines deeper than 1,000 metres, rock mass in situ stress distribution becomes a big problem.

Hard, intact rock – undisturbed and undamaged by nearby mining processes – can hold huge amounts of stress within it, and, when released, that stress can manifest as a violent rock burst, jeopardizing the safety of people and equipment. Stress management often involves the use of explosives to precondition or diminish the dangerous preexisting stresses within the rock mass, but explosives are both dangerous and can only produce a very localized effect. The Centre for Excellence in Mining Innovation (CEMI) in Sudbury, and its industry and university partners, think hydraulic fracturing can do this a better way. And oil and gas companies are intrigued by the prospects of additional insights that might be gained by modifying the existing stress fields during hydraulic fracturing.

Starting in October 2012, CEMI began a two- to three-yearlong experiment investigating the use of hydraulic fracturing – or fracking – for stress management purposes, which effectively consists of three case studies, explains CEMI’s COO and R&D director Damien Duff. The first case study began in June at Newcrest Mining’s Cadia Valley operations in New South Wales, Australia. It involves designing an underground hydraulic fracturing experiment “in such a way that it will help that company with its stress management issues in the rock mass surrounding the ore zone.” Ultimately, the goal is to characterize the effects of particular fracking treatments – in terms of the rate of injection, pressure, volume, and type of fluid and additives – in order to optimize the properties of subsurface fractures for each industry’s purposes.

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

The study is implementing extensive instrumentation and data gathering both before and during the fracking treatments.

It is also using the expertise of both the oil and gas industry and academia, in order to characterize the individual treatments and their subsequent effects. Microseismic instrumentation will be complemented by new techniques, potentially including highprecision tiltmeters and fibre optic cables anchored into half kilometre-long boreholes near the treatment area, to precisely measure the strain changes in the rock mass. The various types of data gathered will be combined and calibrated against the direct underground observation of the treated areas to deliver a complete picture of the processes.

That direct observation is something no one in the oil and gas industry has ever done before at these depths. Newcrest will be the first company to mine back through the treated rock at this scale: it is an opportunity that has oil and gas companies anxious to get involved.

Oiling the gears Calgary-based ConocoPhillips and competitors Nexen and Shell, along with Houston, Texas’ Anadarko, have all ponied up capital along with their modelling, designing, and instrumenting fracking treatment expertise to facilitate the study and get access to the project’s results.

There has never been an economic justification or, until now, a real opportunity to dig up fracked areas, says University of Waterloo professor Maurice Dusseault, who is part of the academic consortium behind the research. By driving a tunnel through the hydraulically fractured volumes of rock at Cadia Valley and the next two trial sites, oil and gas companies will be able to better validate their modelling techniques, calibrate them, and assess important factors, like what a particular type of frack does.

Larry Matthews, a senior technical geophysicist with ConocoPhillips, says he leapt at the chance to obtain the direct observation data. “We record these microseismic events with sensitive instrumentation at two- to 2.5-kilometre depths, analyse and draw conclusions about what we’re actually doing to the stresses and preferential permeability pathways. But we can never actually go down there and see with anything larger than a hole provided by a typical drill bit.”

While the methods employed sound a bit like a kindergarten art project, they are most certainly sophisticated.

upfront MASS MINING

“We’ll inject tracers and coloured sand into the fluid, so we know what we injected and when we injected it and under what pressure,” Dusseault explains. “And we’ll be mining through it, so we can map it, and get an idea of what’s happening. We’ll be able to answer some silly little questions, like if you frack fast, do you have just one [fracture] plane that opens, or many planes?”

That kind of uncertainty has simply been accepted as a part of the fracking business until now, says Matthews; with little data to work with, it has had to be. The uncertainty has given rise to conflicting fracking philosophies, with various combinations of pressure, duration, and fracturing fluid touted for various rock types. By actually observing the physical results of different fracking treatments in these trials, the companies hope to add some hard science to what has been an art, by correlating their seismic readings with the physical changes in the rock, and then correlating that with recovery.

De-stressing Meanwhile, mining companies like project sponsors Vale, Rio Tinto and Newcrest are also excited. The prospect of a safe, reliable stress management method has them eager to learn more. As mines go deeper, says Duff, the rock burst issue becomes increasingly important – and difficult. “We’re having to revisit just how this stress issue can best be dealt with,” he says. “With hydraulic fracturing, if it works as we hope it will, stress can be moved away from where it can cause you damage to where it can’t.

“By fracturing the rock, you reduce its capacity to cause you problems due to stress buildup, because it’s no longer capable of holding the stress,” Duff adds. “In the process, you’ve [also] potentially made the rock easier to mine through.” Better yet, by proactively dealing with the geomechanical stress, mine performance becomes more reliable, development timelines get shortened, and ore bodies can be accessed faster, he says.

Although the hard rock in deep underground mines is not identical to the type of shales typically being exploited now by horizontal wells and hydraulic fracture stimulation in oil and gas formations, it is more similar than one might think, says Dusseault. “Those rocks in shale oil and gas fields are very stiff, strong, dense and impermeable,” he notes.

ConocoPhillips’ Matthews agrees: “It turns out that from a geomechanical point of view, the volcanic rock that we’re talking about in this mineback experiment has great similarities with the kind of older, very black, very hard, high-quartz shales we’re now dealing with.”

The inclusion or absence of oil and gas probably does not change the mechanics much either, according to Dusseault.

And in any case, the consensus is that any data is better than none at all. “We think we understand the differences in properties, and can factor that into our interpretation and analysis in a reasonable way,” he says.

Sharing knowledge yields benefits all around With major players from both the oil and gas and mining sectors putting their own money into the project, CEMI is

hopeful that a forthcoming NSERC Collaborative Research and Development grant application will be approved.

“The backing of [both] industry and academia really gives the effort credibility,” notes Duff. A current fund of around $250,000 was supplied by initial industry sponsors. But with potential for another $250,000 from NSERC, and new entrants paying $250,000 (for miners) and $165,000 (for oil and gas companies), the project hopes to garner additional investment over the next three years.

According to Matthews, the investment made perfect sense: “For ConocoPhillips alone, we are spending hundreds of millions of dollars a year in drilling horizontal wells and hydraulically fracture treating them. It’s what we do now. If we could improve that process five per cent, we would pay for our involvement in this consortium so many times over that you can’t even imagine.

And that’s just ConocoPhillips. The whole industry is doing this.

We’re talking billions of dollars being spent.”

Eventually, CEMI hopes that the knowledge gained from this study will also allow fracking to be adapted for use in smaller stoping operations like those in Ontario and elsewhere in Canada, increasing both safety and productivity. The first test in Canadian rock could come as soon as next year. And perhaps some day soon, the consortium partners hope, hydraulic fracturing will become as useful a method for mining as it now is for oil and gas. CIM

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June/July 2013 | 39

upfront MASS MINING

The power to plan New tool for evaluating cave economics helps Rio Tinto at the prefeasibility stage

by Correy Baldwin

Courtesy of Rio Tinto

Moss says cave planning requires an unprecedented amount of data processing. “We not only need information on the ore body but on the surrounding country rock,” he explains. “For example, in one of our projects where the ore body is 2,000 metres below surface, we need to be able to characterize eight cubic kilometres of rock in order to properly assess cave behaviour, and ultimately determine economics.”

With an almost infinite number of possible mining sequences in such large projects, the decision whether or not to develop an ore body has become incredibly complex. To help speed up the assessment, in 2006 Rio Tinto approached professor Hylke Glass, the Rio Tinto Professor at the Camborne School of Mines, about developing a smart sequencing strategy. The resulting study led to the creation of software called CavePlanner.

“The intent of the software is to get a feel of what the footprint of the cave would look like and what sort of sequence we could adopt,” Moss says, “and also to help us find the appropriate elevation to put the cave.”

Computing clout “When we are looking at a new project, we have to evaluate if we are going to mine it, or if we are not Rio Tinto’s Resolution panel caving project is set to become one of the world's largest underground copper producers. going to mine it,” says Gert van Hout, who oversaw recent development of the software program. “Within an io Tinto expects that 25 per cent of global copper hour, we can have results.” production will come from underground mines by “I can’t think of any program before CavePlanner where 2020. “It’s a step change for the industry, from the you could do that in such a rapid way, which is of particular traditional open pit to a move underground,” says importance at the order of magnitude or prefeasibility study Allan Moss, general manager of Rio Tinto’s Underground level,” he says. “If you use common cave scheduling software, Technology Centre. “We’re looking at upwards of you have to assume the drawpoint spacing, you have to 100,000 tonnes per day from underground. It forces us to go assume the direction of the layout, and you have to carve out for economies of scale, and the only mining method that will the footprint perimeter. It could take a whole day.” CavePlangive us the economies of scale we need is caving.” ner output is used to guide the set-up of more rigorous

R

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

upfront MASS MINING

simulations, from where to initiate the cave to how to undercut sequences and directions.

CavePlanner runs exclusively off the block model, which is generated from drill hole data. â&#x20AC;&#x153;It explores different mining sequences, very broadly, and allows us to investigate the optimum value sequence,â&#x20AC;? says Moss. â&#x20AC;&#x153;We may not select that because of other criteria that we have that would go against it â&#x20AC;&#x201C; for example, it could show a geometry that is a bit too aggressive or optimistic â&#x20AC;&#x201C; so we would use our judgement to reject that sequence.â&#x20AC;? â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s really a comparative tool,â&#x20AC;? says van Hout. â&#x20AC;&#x153;It gives us a rough idea of where we should be starting. It generates the tonnes of each of the metal grades per column, and gives us an indication of what values are sitting in there: what blocks will be economical and what blocks wonâ&#x20AC;&#x2122;t be economical.â&#x20AC;?

Creation story â&#x20AC;&#x153;Existing software didnâ&#x20AC;&#x2122;t address the comprehensive evaluation of all the possibilities for the sequencing of the ore extraction,â&#x20AC;? explains Glass. â&#x20AC;&#x153;The number of models that have to be produced is almost infinite, so the question was, could I develop a method in which the number of permutations that had to be evaluated was computationally manageable?â&#x20AC;?

Glass presented his prototype in May 2008. Further development was undertaken to address the needs of mine planners: improve on the prototype, make it more flexible and incorporate time-dependent properties. â&#x20AC;&#x153;The main difference between the two versions is that the first one was an Excel Visual Basic for Applications macro, while the current one is a stand-alone program featuring rapid calculation through parallel processing and enhanced functionality.â&#x20AC;?

The final program was completed in October 2009, and the hard work has paid off. A pilot test convinced Rio Tinto to change the mining sequence for one of its mines, resulting in hundreds of millions of dollars worth of added value. Rio Tinto has so far applied the program at four major projects. â&#x20AC;&#x153;CavePlanner allows us to make better, more-informed decisions, and to do so at an earlier stage in the project,â&#x20AC;? says Moss. â&#x20AC;&#x153;This is a first look. Itâ&#x20AC;&#x2122;s intended to be used at an order of magnitude level. Itâ&#x20AC;&#x2122;s not a detailed planning tool; itâ&#x20AC;&#x2122;s a conceptual planning tool.â&#x20AC;?

Controlling variables A number of geotechnical and mining constraints can be applied to CavePlanner before it is run, including the geometry of the undercut face, column heights and drawpoint maturity rules, as well as denoted production rate curves.

Constraints can also include financial factors like net smelter return values, discount rates and operating and treatment costs.

The program can also account for variables that may change over time. â&#x20AC;&#x153;Maturity rules are very important,â&#x20AC;? says Glass, â&#x20AC;&#x153;where the draw rate from new drawpoints is gradually increasing with maturity up to a user-defined maximum that applies for the remainder of the production life of that drawpoint.â&#x20AC;?

â&#x20AC;&#x153;After you set the elevation and enter these parameters, the program goes off and simulates different undercutting sequences,â&#x20AC;? explains van Hout. â&#x20AC;&#x153;Then itâ&#x20AC;&#x2122;s a question of ranking according to net present value, and then itâ&#x20AC;&#x2122;s up to the mining engineer to select which ones make most sense.â&#x20AC;?

Net present value is perhaps the most useful piece of information at the initial planning stage. â&#x20AC;&#x153;At the point when CavePlanner is utilized, we are talking about an economic optimization, and what the most economically profitable route might be,â&#x20AC;? says Glass. â&#x20AC;&#x153;There are a huge number of permutations,â&#x20AC;? he adds. â&#x20AC;&#x153;The precise number that it evaluates is very much dependent on the scale of the project. The larger the project, the larger the subset of models that CavePlanner produces.â&#x20AC;? â&#x20AC;&#x153;The number of permutations really depends on the block model and on the undercut sequences that you want,â&#x20AC;? says van Hout. â&#x20AC;&#x153;If you have very stringent constraints, there are hundreds; if it is completely wide open, it is thousands.â&#x20AC;?

CavePlanner provides a solution to a problem Rio Tinto is encountering with more frequency. â&#x20AC;&#x153;Tonnage is getting bigger, and investment levels are getting huge,â&#x20AC;? explains Moss. â&#x20AC;&#x153;A big panel cave is a $10-billion investment, so weâ&#x20AC;&#x2122;re developing tools to help us better analyse them.â&#x20AC;? â&#x20AC;&#x153;Design tools have always been critical to caving,â&#x20AC;? he says. â&#x20AC;&#x153;What weâ&#x20AC;&#x2122;re trying to do is to bring a bit more rigour to it.â&#x20AC;? CIM

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upfront MASS MINING

Elephant hunting Exploration geologist Dan Wood dishes the dirt on the next generation of discoveries Courtesy of Dan Wood

by Peter Braul

s mining companies develop deeper, larger underground mines, exploration geologists are feeling the push to discover suitable deposits. For exploration teams taking on this daunting task, Dan Wood serves as a role model. During his 42-year career in exploration with BHP and Newcrest, he led teams that made some spectacular finds including what are now Newcrest’s Cadia Valley Operations in New South Wales, consisting of a pair of productive cave mines. Wood is happy to impart his wisdom, now that he has officially retired. Last year, as a distinguished lecturer with the Society of Economic Geologists, he spoke about discovering tomorrow’s deeper ore bodies. Currently, he is an independent non-executive director of Highlands Pacific Limited, and he also serves as an advisory board member of the W. H. Bryan Mining and Geology Research Centre at the University of Queensland, where he is an adjunct professor.

A

CIM: Can you describe the task of visualizing an ore body?

Wood: Well, discovery is an art; it uses science, but to practise this art properly, one needs to combine both good science and three-dimensional thinking. To assist me with achieving the latter, I always walked around with a three-dimensional dart board in my mind. What you’re trying to find is the bull’s eye, which is the ore. Around the bull’s eye, there are various rings, and each of those rings has the capacity to point you in the direction of the ore, if you can interpret what you’re finding in 42 | CIM Magazine | Vol. 8, No. 4

the ring. When you go into an area looking to make a discovery, the chance that you’re going to drill a hole directly into the bull’s eye and the ore is, probably, pretty slim. But you’re likely going to drill some holes that are going to get you into one of the different rings – if an ore body is present.

A porphyry copper deposit is a classic target for this type of approach – although I have also used it to discover a coal deposit – because a porphyry copper deposit might be, say, 500 metres across. But the influence of that ore on the surrounding rocks might be several kilometres. Instead of looking at a space of say 500 metres by 500 metres, you’re potentially looking at a space that’s two kilometres by two kilometres, or three kilometres by three kilometres.

CIM: How do we find the ore bodies that will become the largescale underground cave mines of the future?

Wood: Ore bodies that are suitable for large-scale underground caving require a regular geometry, and this influences how one explores. If you’re looking for an ore body that occupies a cubic kilometre in volume, for example, and you’re drilling holes 100 metres apart to discover this ore body, well, you’re kidding yourself.

Very early on, you really need to know whether you’re chasing an elephant or a mouse. If you’re looking for something that has a surface expression of 200 hectares, for example, that’s a lot of territory, so you can drill very widely spaced holes during

upfront MASS MINING

the discovery phase. But then you need a lot of smarts to understand what those holes are telling you, because not every hole will strike ore, and every ore body has barren parts to it and post-mineral intrusions and all sort of things that are not ore.

CIM: Technology is certainly a huge component of the next generation of mines. What is your view on how technology will change exploration geology?

Wood: A lot of people seem to be saying, ‘It’s just all too difficult. We’ve got to have technology discover these things for us.’ Well, it didn’t work that way in the past and a lot of old fogeys like me are saying it’s not going to work that way in the future either, at least for the next 10 to 20 years. As an explorer, you’re still going to have to think.

That said, what’s had a significant impact during my career by way of technology is the availability of remotely sensed data. You can do quality regional geological mapping off satellite images, for example, and also measure different spectra, which gives another insight into the geology. So, in Chile and other desert areas, you can start to map out alteration minerals that have accompanied mineralisation. That sort of technology has had a significant effect on better understanding the geology of an area, particularly of those features of the geology associated with mineralisation.

Another remote-sensing technology that’s still in its infancy from an exploration perspective is LIDAR, which is an airborne laser surveying technique. It lets you look through jungle canopy so you can actually map the topography within a two-centimetre elevation difference. Topography reflects geology, so this technique enables rapid basic geological mapping of jungle-covered terrain.

There is a lot of technology that assists, but in the end, it still comes down to the geologist thinking about what he or she actually sees and records.

CIM: If there are under-explored regions like Brazil, West Africa and Finland, where we haven’t even touched the basic deposits, why are people putting faith in enormous, complex and risky underground mass mining projects?

Wood: Many geologists think most places are over-explored and that is why Brazil, et cetera, may seem more attractive, although the discovery record suggests, somewhat perversely, that you probably never want to be the first company exploring an area. Occasionally, it has paid off, if you go back to the 1950s and 1960s. Then, if you were the first in the area and there was something that cropped out and was really obvious, there was a pretty good chance you’d find it. However, it is possibly the case that many of the 1950s/1960s-type discoveries in apparently underexplored regions have been found, and that future discoveries here are not going to be any easier than in the apparently over-explored areas.

Subtleties to the expression of an ore body can make discovery difficult, and in these situations it helps to have the results from previous explorers. The case can be made that you probably want to be the fifth or sixth company into an area to have a reasonable chance of discovery – if an ore body is present. A

classic case was the Cadia district that we found at Newcrest; it had been explored since 1851. That was 140 years of exploration of one sort or another.

CIM: That’s a great story of persistence. Do you have other examples?

Wood: In the 1980s, the geologists at Goldfields found a gold deposit called Mesquite just the over the border from Yuma, in California. I think they were the 13th company into the area, and all the big names in gold – Newmont, Placer Dome – all those companies had explored there, and for some reason never found the ore body. If I recall correctly, the discovery hole was drilled under an old shaft called the ‘Black Jack shaft.’

The old-timers had been mining gold mineralization there.

You’ve got to be careful about saying, ‘An area has got no chance,’ because it probably does if you’ve got the right set of glasses on.

Goldfields found the ore body because its geologists were capable of thinking about what the ore body looked like. And Mesquite is a really strange ore body; it’s structurally controlled, which means that the ore isn’t evenly distributed. It’s in bands. You need to be able to put those bands together and that’s what they were able to do.

CIM: How well do you think young geologists are being prepared to understand what these ore bodies may look like?

Wood: To my knowledge, there aren’t any universities that really train exploration geologists. They train geologists. And then you go out, and depending on the company you work for, you serve an apprenticeship, and you learn how to explore.

But there are so few really successful exploration groups around, that unless you’re lucky enough to get a job with one of those groups, the apprenticeship you serve and the training you get is, probably, less than optimal.

One of the major issues for the mining industry is that the generation I belong to, and 10 or 15 years younger than me, we’re all retiring. Unless young exploration geologists have mentors or have been fortunate enough to pick up some skills along the way, they’re basically going to start reinventing wheels.

CIM: If our university education system doesn’t breed exploration success, what can young geologists do to increase their odds?

Wood: The only way I know to easily enthuse people and make them want to go out and look at what they’ve got in a positive, creative way is by telling war stories. You tell them how ore bodies were discovered. There’s a conference held in Perth every two years dedicated to discovery case histories called NewGenGold. The conference organisers have two days where they invite people to present discovery talks, warts and all – just tell it how it happened, and look at how and why you may not have discovered ore. The conference is quite wellattended. They’ll get 600 or 800 people to a conference, and I think the geologists who go to these come away feeling buoyed that what they’re doing isn’t so stupid. CIM June/July 2013 | 43

The Canadian Institute of Mining, Metallurgy and Petroleum (CIM)

HIGH and DRY

By Pierrick Blin and Antoine Dion-Ortega

In Chileâ&#x20AC;&#x2122;s Atacama Desert, Escondida has been desalinating sea water since 2006.

Nataliya Hora/Shutterstock

Chileâ&#x20AC;&#x2122;s copper-rich Atacama desert is an acute example of the global water supply problem, but it is certainly not the only one. Around the world, miners are facing costly fresh water shortages, often in regions that are well-endowed with attractive deposits. And because only 2.5 per cent of the Earthâ&#x20AC;&#x2122;s water is fresh, interest in tapping into the sea is growing.

Ore processed & water used by commodity (globally) billion tonnes of ore processed

km3/year

coal 14

7

iron ore 13

2.6

gold 1.7

8.5

copper 1.1

5.5

oil sands 1

10

ferro-alloys 1

1

Source: Defining global mine water challenges, a presentation by independent consultant Michael Sudbury at the 2013 CIM Convention

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

T

he water shortage has become so dire in Chile that authorities declared a state of emergency in the Copiapó River watershed in March 2012. “In Chile, in the First (Tarapacá), Second (Antofagasta) and Third (Atacama) regions, water solutions which propose supply from the aquifers for our projects are both unacceptable and near impossible,” says Bernie Loyer, vice-president of South American projects for Goldcorp. His purview includes the El Morro project, which is owned by Goldcorp (70 per cent) and New Gold (30 per cent) and is located around 150 kilometres southeast from Copiapó. Initial production for the project was expected in 2017, but the Chilean Supreme Court halted construction in the spring of 2012 after it identified deficiencies in the consultation process with a local farming community.

Even though the court’s decision resulted from litigation with a community, its underlying cause is the scarcity of water resources, according to Hubert Fleming, who was global director for Hatch Water before becoming an independent water consultant. “Of all the mining projects in the world that have either stopped or slowed down in the past year, it has been, in almost 100 per cent of cases, a result of water, either directly or indirectly,” he says. “It is not so much because of the shortage of water to the mine, but of the secondary effect of competition for water resources from the local communities in water basins.”

Today’s mining conditions exacerbate this competition. As Fleming points out, “There is more water required today per ton of ore than there has ever been, because ore bodies are not as rich.”

Deposits are also being found in remote areas that were deemed uneconomical before, mostly in arid or high-altitude regions. Additionally, as national regulations in many countries have been mounting in recent years, there are now more restrictions on the use of aquifers or surface streams. And, as Jerry Rowe, global director of water resources management at Hatch, mentioned in a 2012 study, modern mines are higher tonnage but have shorter lifespans, which can result in steep increases in water demand with more dramatic effects on

water resources than if they were spread over a longer period.

According to a Global Water Intelligence report, Australia leads the world in mine water-related spending – which can be broken down into general infrastructure, pumps, and water and wastewater treatment equipment. Australian mining accounts for 20 per cent of global totals, but the top 10 users include Chile, Canada, Brazil and Peru.

All-in, the top 10 represent nearly 80 per cent of the world’s mine water costs. The global capital expenditure on mining-related water infrastructure amounted to $7.7 billion in 2011, and, because of the urgent need to solve shortages, could well reach as much as $13 or $14 billion by 2014. The bulk of these expenses account for designing and building water infrastructure, including civil engineering work and pipelines and, in 2011, $1 billion was spent on pumps alone.

Alaskan and northern Canadian struggles over water consumption highlight growing public concern that is also driving up the price of water use. “In Northern Canada, communities are worried about water going to the mine, and the mines potentially polluting their source water through their discharges,” says Fleming.

Is the sea worth its salt?

In order to avoid competing with other users for fresh water, mining companies have been working with engineering firms over the last decade to evaluate the feasibility of using lower-quality waters in their mineral processing. With saline and hypersaline water in abundance, either from the sea or from the ground, the critical question has been whether to desalinate or not. The decision is often a trade off between operating and capital expenditures, according to Raymond Philippe, water business manager at WorleyParsons. Determining which way to go will depend mostly on the water quality a mine requires. “That is a part of the trade off study, which includes an evaluation of the metallurgy, the concentration process, and what to do with the tailings pond, from which water might filter to the sub-surface,” explains Philippe.

2,340

Desalination has proven much more expensive initially than using saline water in processing. “Desalination plants and the associated pumping and pipeline systems are a major mine development and operating cost and can easily have CAPEX costs exceeding $500 million,” Rowe’s study reported.

“Frankly, I don’t think that mining companies are going to prefer desalination, and the reason is they are very much in a financial crunch right now,” says Fleming. “So here is the trade off: If they can do sea water or hyper-saline water, yes, it kills their equipment, yes, their metallurgy dies in five years versus 10 years, but they are just trying to survive for five years at this point, versus spending all of this money upfront.”

However, as Fleming notes, this rationale could be offset by restrictive national regulations: “Many countries are struggling giving permits for sea water or for hyper-saline water because it puts salt on land at the mine site, which is a pollutant […] so you would have no other choice than desalination.”

Besides its metallurgical impacts, sea water has higher density and viscosity than fresh water, meaning it requires more energy to pump it via pipelines to the mine site. As for environmental risks, tailings ponds containing a lot of salt need particular care. “You are risking chloride contamination,” warns Philippe.

“Tailings with fresh water

Courtesy of WorleyParsons

The Southern Seawater Desalination plant in Western Australia

1,500

to Fleming, there are about 20 to 30 mines globally that use desalinated water right now, 10 of which are located in Australia or Chile alone. About 15 more desalination projects have already been commissioned, and several dozen are under evaluation.

For her part, Emily Moore, global director of water at Hatch, says there is still some misunderstanding in the mining industry of what desalinating means.

The most common mistake, she argues, is considering desalination as an equipment package. Mining companies should understand that desalination above all involves a processing plant that needs to be integrated early in the project design rather than treated as separate. Also, companies should get more involved in the choice of water that they need; there are many different possible water qualities that must be defined early in a project.

Finally, the timeframe needed when planning to use desalination must be well understood. “When you look at the lifetime of a new mine, construction is fairly short compared to the time of designing and commissioning the infrastructure, particularly if you have to do a pipeline,” states Fleming. “You depend on access to communities, a permitting process that can take two, three, even four years. That is much longer than the timeline of starting a mine.”

28

Forestry

Source: Defining global mine water challenges, a presentation by independent consultant Michael Sudbury at the 2013 CIM Convention

10

Global water use by industry km3/year

Power

70

Municipal

Mining

500

800

Irrigation

Manufacturing

may have one gram per litre maximum of chloride. If you are working with sea water, you are very close to 20 grams per litre. Any drop of water draining from the pond will immediately contaminate any aquifer that you may have around.

The same holds true for pipelines carrying sea water.”

The managing team at El Morro considered all of these factors before deciding to go with desalination. “There are two reasons for that,” explains Walter Bergholz, engineering manager at the mine. “One is environmental. In the area where we are, there is agriculture, there are a lot of goats and small animals, so it was a requirement we had to fulfill that in case of a break in the water pipeline, there would be no sea water that could contaminate the area. Additionally, we have a better recovery rate with potable water than with sea water.”

The Escondida mine, also located in the Atacama Desert, has been desalinating sea water since 2006, while Freeport MacMoRan has nearly completed a desalinating plant and pipeline to feed its Candelaria project, located south of Copiapó. Other major mines have made similar choices in Australia, such as Newmont’s Boddington, which has contracted Osmoflo to process the brackish water coming out of its dam. According

Global desalination production km3/year June/July 2013 | 49

Direct saline water use The use of sea water, which contains around 3.5 per cent dissolved salt, for mineral processing has obvious benefits in terms of capital costs, but the processing itself is often complex and introduces a degree of uncertainty. “If you plan to do electrowinning, you will need water with a very low rate of total dissolved solids, so you will almost certainly desalinate,” says Fleming. “If you plan to use a flotation process or a concentrator, it won’t be so important, so you can use sea water.” In the case of copper, the largest current and potential use for saltwater processing, the flotation process often works better when using saline water rather than desalinated water, says Philippe. But saline processes are harder to control, he adds: “If you have a process that requires sudden changes in pH or in chemical conditions, sea water works as a buffer, and so it is very difficult to control.” Conversely, in the case of molybdenum, flotation has proven much more difficult in sea water and has thus required innovative methods of controlling pH. Nevertheless, a number of companies are working hard on technologies to reap the benefits of abundant sea water.

Minera Esperanza, a joint venture between Antofagasta Minerals and Marubeni Corporation located in the Atacama Desert, was the first large-scale

project to use raw sea water in its copper flotation process. In operation since 2011, its concentrator plant requires the largest portion of the mine’s water supply. The project was designed after a series of studies determined optimum operating conditions for the primary flotation process.

The main challenge in the flotation of copper–molybdenum sulphide ores in saline water is the flotation of molybdenite. According to Janusz Laskowski, a specialist in flotation processes and professor emeritus at the University of British Columbia, minerals that are hydrophobic by nature (e.g. molybdenite) generally float even better in salty waters. However, these ores also commonly contain pyrite and its depression requires a high pH. To control the pH, the mining industry usually uses lime, which works well in fresh water. In sea water, however, lime tends to have a detrimental effect on the molybdenite flotation. “Basically, the recovery of molybdenum in the range of 70 per cent would go down to 30 or 35 per cent, and that is not acceptable from an economical point of view,” Laskowski says. “When molybdenite is present in a sulphide ore, it is recommended that lime be replaced by another pyrite depressant. In a process worked out at the University of Concepción, in which Laskowski is involved,

sea water is treated prior to its use in flotation. The treatment reduces the content of the components of sea water, which depress flotation of molybdenite in an alkaline environment.

Barrick Gold has recently found a way to tackle the problem of the negative impacts of salt water on the metallurgical process of copper and gold ores: an air-metabisulfite treatment (AMBS).

“The advantage of this process is that you don’t need lime, and you can maintain flotation at the natural pH of the ore body,” says Barun Gorain, senior manager of mineral processing at Barrick Gold and inventor of the treatment.

“With the AMBS process, you can use sea water or brackish water with minimal metallurgical impact compared to desalinated water and, even better, we have found that this process actually improves the metallurgy significantly, compared to what you can get with the conventional lime-based process.”

The AMBS treatment has also resolved the issue of molybdenum flotation, Gorain says: “With this new Barrick technology, what we have seen is that the molybdenum recovery is not a problem, the metallurgy impact is actually minimal.”

The AMBS treatment was initially developed for the Reko Diq copper-gold project in Pakistan, using brackish water, but it was also tested with sea

More of everything Population

GDP

60%

33

%

20% 2013

Water use

2038

$

$

2013

2038

2013 2038

Population and GDP growth have a multiplying effect on water use. This means that while the human population is expected to rise by 20 per cent and average GDP is expected to rise by 33 per cent over the next 25 years, water use is expected to rise by 60 per cent over the same timeframe.

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

Source: Defining global mine water challenges, a presentation by independent consultant Michael Sudbury at the 2013 CIM Convention

Decision time

Source: Defining global mine water challenges, a presentation by independent consultant Michael Sudbury at the 2013 CIM Convention

water, in both cases successfully. “We have now implemented this process in our Jabal Sayid operation in Saudi Arabia and another key copper-gold project

in South America is currently implementing it,” says Gorain. “We have also completed piloting for another project in Chile, successfully using sea water.”

Because you can’t afford to spill a single drop, there’s Westeel.

For a mining company, the choice of desalination or direct sea water use “has to be evaluated on a case-by-case basis,” says Philippe.

And, according to Fleming, “Mining companies don’t want to desalinate, since it’s a huge capital cost. If they can find anything else, they will.” Research and development in new technologies may allow some companies to trim these costs, particularly those using a flotation process. “It doesn’t make sense to desalinate water if you have a technology that can handle the metallurgical issue quite well,” points out Gorain. “From that point of view, we just pump the sea water and use it as long as we can handle the other aspects of it, including any environmental or health and safety concerns, which are immensely important.”

It is difficult to foresee which path mining companies will prefer in the future. Two things, though, are certain: freshwater is a finite resource, and miners are just starting to get their sea legs. CIM

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June/July 2013 | 51

Une mer de SOLUTIONS Par Pierrick Blin et Antoine Dion-Ortega

En arrivant dans la ville poussiéreuse de Copiapó, capitale de la région chilienne aride d’Atacama, on traverse un pont. Aussitôt, on se demande à quoi il peut bien servir : pas une goutte d’eau ne coule dans la rivière, si bien que son lit a commencé à se craqueler. Après une décennie d’utilisation intensive par le secteur de l’agriculture et l’industrie minière, l’Atacama est à sec.

Antoine Dion-Ortega

La rivière Copiapó est devenue un symbole des pénuries d’eau qui touchent la région Atacama du Chili.

C

ette région chilienne riche en cuivre est certes un cas extrême des problèmes de pénurie d’eau, mais il n’est certainement pas le seul.

Partout dans le monde, les mineurs font face à de coûteuses pénuries d’eau, souvent dans des régions dotées de gisements prometteurs. Selon un rapport du Global Water Intelligence, c’est en Australie que les dépenses liées à l’eau pour l’industrie minière – lesquelles sont réparties entre les infrastructures générales, le pompage et les équipements de traitement de l’eau et des eaux usées – sont les plus importantes, avec 20 pour cent du total des dépenses mondiales.

Cependant, les dix premiers pays du classement, parmi lesquels le Chili, le Canada, le Brésil et le Pérou, totalisent près de 80 pour cent de ces dépenses.

En 2011, les dépenses en capital au niveau mondial ont atteint 7,7 milliards $ et pourraient atteindre 13 ou 14 milliards $ en 2014 en raison de l’intensification de ces pénuries. La majorité de ces dépenses servent à la conception et à la construction des infrastructures, dont des travaux de génie civil et les pipelines.

En 2011, un milliard $ a été consacré aux seules pompes.

Au Chili, la situation est devenue à ce point critique que les autorités ont déclaré, en mars 2012, l’état d’urgence pour le bassin versant de la rivière Copiapó. « Au Chili, dans les première (Tarapacá), seconde (Antofagasta) et troisième (Atacama) régions administratives, les solutions proposant une alimentation en eau pour nos projets à partir de l’aquifère sont inacceptables et pratiquement impossibles », dit Bernie Loyer, vice-président de Goldcorp en charge des projets sud-américains. Il est notamment responsable du projet El Morro, situé à environ 150 kilomètres au sud-est de Copiapó et qui est la propriété de Goldcorp (70 pour cent) et New Gold (30 pour cent). L’entrée en production était prévue pour 2017, mais la construction a été stoppée par la Cour Suprême du Chili au printemps 2012, après qu’elle ait identifié des déficiences dans le processus de consultation auprès des communautés agricoles locales.

Bien que la décision de la Cour soit le résultat d’un litige avec les communautés, la cause sous-jacente est la pénurie d’eau, selon Hubert Fleming,

ancien directeur chez Hatch Water et aujourd’hui consultant indépendant dans le domaine de l’eau. « De tous les projets miniers dans le monde qui ont été arrêtés ou ralentis dans l’année qui s’est écoulée, presque 100 pour cent d’entre eux l’ont été, directement ou indirectement, en raison de problèmes liés à l’eau », dit-il. « Ce n’est pas tant en raison de la pénurie d’eau pour les mines, mais plutôt des effets secondaires de la compétition émanant des communautés locales du même bassin versant pour les ressources en eau. » Les conditions actuelles d’exploitation des mines ne font qu’amplifier cette compétition. Comme M. Fleming le fait remarquer, « le volume d’eau requis pour l’extraction d’une tonne de minerai est plus élevé qu’il ne l’a jamais été, car les gisements exploités ne sont plus aussi riches. » Les gisements sont aussi exploités dans des régions plus reculées, souvent arides ou en haute altitude, là où ils n’étaient pas considérés rentables auparavant. De plus, les réglementations nationales sont devenues plus strictes dans beaucoup de pays, restreignant davantage l’usage d’eaux souterraines ou de surface. Enfin, comme le mentionne Jerry Rowe, directeur international des ressources en eau chez Hatch, dans une étude de 2012, les mines modernes ont un tonnage plus élevé, mais une durée de vie plus courte. Il en résulte de fortes variations dans la consommation d’eau, avec des conséquences beaucoup plus graves que lorsque la demande est répartie sur une plus longue période.

En Alaska et dans le nord du Canada aussi, les conflits concernant la consommation d’eau ont eu pour effet d’accroître la préoccupation du public face à cet enjeu. « Dans le nord du Canada, les communautés sont inquiètes de l’usage que font les mines de l’eau et surtout des risques de contamination de l’eau potable par leur déversement », explique M. Fleming.

Le dessalement – une solution ?

Pour éviter d’entrer en compétition directe avec les autres utilisateurs d’eau douce, les sociétés minières ont, au cours de la dernière décennie, travaillé de concert avec les sociétés d’ingénierie

June/July 2013 | 53

Peter Braul

De gauche à droite : Les installations de Puerto Coloso de la mine Escondida comprennent une usine de dessalement, et l’eau est transportée sur 167 kilomètres à l’intérieur des terres vers le site minier, qui se trouve à 3 200 mètres d’altitude; L’usine de dessalement d’eau de mer du sud, en Australie occidentale; Barrick Gold met en œuvre son traitement air-métabisulfite pour la flottation à l’aide de l’eau de mer.

pour évaluer la viabilité des eaux de moindre qualité dans les activités de traitement du minerai. La possibilité d’utiliser les ressources abondantes en eaux salines et hypersalines – qu’elles proviennent de la mer ou du sous-sol – a conduit à une question fondamentale : doit-on dessaler ou pas ? La décision résulte souvent d’un compromis entre les coûts d’exploitation et les dépenses en capital, selon Raymond Philippe, directeur de la section Eau chez WorleyParsons. Le choix dépendra essentiellement de la qualité de l’eau requise par la mine. « Cela fait partie de l’étude de compromis, qui doit aussi inclure une évaluation de la métallurgie, des procédés de concentration ainsi que de ce qu’il adviendra du bassin de résidus, où l’eau pourrait filtrer dans le sol », explique M. Philippe.

Le dessalement impose des investissements initiaux beaucoup plus importants que l’usage direct d’eau salée dans le traitement. « Les usines de dessalement ainsi que les systèmes

de pompage et les pipelines représentent des coûts de développement et d’exploitation majeurs pour une mine et peuvent, en termes de dépenses d’investissement, dépasser les 500 millions $ », peut-on lire dans l’étude de M. Rowe.

chaines années, plutôt que de dépenser tout cet argent dès le début. » Cependant, cette tendance pourrait être ralentie par des réglementations nationales plus restrictives. « Plusieurs pays refusent d’accorder des permis pour l’usage d’eau de mer ou d’eau hypersaline, car cela implique de déplacer de grandes quantités de sel à l’intérieur des terres vers le site minier, créant un risque de contamination », fait remarquer M. Fleming. « Dans ce cas, le dessalement devient inévitable. » En plus de ses impacts sur la métallurgie, l’eau de mer présente une densité et une viscosité plus élevées que l’eau douce, ce qui requiert davantage d’énergie pour le pompage jusqu’au site minier. Il en est de même des risques environnementaux, les bassins de résidus cumulant des quantités de sel qui demandent une attention particulière. « Vous risquez une contamination par le chlorure », prévient M. Philippe. « Les bassins de résidus avec de l’eau douce supportent un maximum d’un gramme par litre de chlorure. Avec l’eau de mer,

« Les solutions proposant une alimentation en eau pour nos projets à partir de l’aquifère sont inacceptables et pratiquement impossibles. »

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

- Bernie Loyer

« En toute franchise, je ne crois pas que les minières opteront pour le dessalement », estime M. Fleming. « Elles sont déjà en difficultés financières en ce moment, donc si elles peuvent utiliser de l’eau de mer ou hypersaline, c’est un bon compromis. Bien sûr, leur équipement en souffrira ; bien sûr, leur métallurgie durera cinq ans au lieu de dix, mais au point où elles en sont, elles essaient juste de survivre aux cinq pro-

Peter Braul

Offert par WorleyParsons

on est très proche des 20 grammes par litre. La moindre goutte d’eau s’échappant du bassin contaminera immédiatement n’importe quel aquifère aux alentours. Et il en va de même pour les pipelines qui transportent l’eau de mer. » L’équipe de gestion d’El Morro a tenu compte de tous ces facteurs avant de choisir le dessalement. « Il y a deux raisons à cela », explique Walter Bergholz, directeur technique à la mine. « La première est d’ordre environnemental. Dans le secteur où nous sommes, l’activité agricole est importante, et il y a beaucoup de chèvres et de petits animaux ainsi, nous devions nous assurer qu’en cas de rupture des pipelines, il n’y ait pas de fuite d’eau de mer qui contamine le secteur. En second lieu, nous avons un meilleur taux de récupération avec l’eau potable qu’avec l’eau de mer. » La mine Escondida, elle aussi située dans le désert d’Atacama, dessale l’eau de mer depuis 2006, et Freeport MacMoRan a presque terminé la construction de sa propre usine et de son pipeline en vue d’alimenter son projet de Candelaria, au sud de Copiapó.

D’autres mines importantes ont fait un

choix similaire en Australie, comme celle de Boddington de Newmont, qui a contracté Osmoflo pour traiter les eaux saumâtres provenant de son barrage.

Selon Fleming, entre 20 et 30 mines utilisent le dessalement en ce moment, dont dix sont situées en Australie et au Chili. Une quinzaine de projets ont été commandés à ce jour et quelques douzaines sont en cours d’évaluation.

D’après Emily Moore, l’actuelle directrice internationale en charge de l’eau chez Hatch, un certain malentendu persiste dans l’industrie minière quant à la signification du dessalement.

L’erreur la plus commune, dit-elle, est de considérer l’usine de dessalement comme un équipement standard. Les sociétés minières doivent comprendre que le dessalement implique avant tout la construction d’une usine de traitement, qui doit être intégrée tôt, en amont de la conception du projet, plutôt qu’à part ou en aval. De plus, les sociétés devraient s’impliquer davantage dans le choix de l’eau dont elles ont besoin. La qualité d’eau exigée doit être définie dès le début du projet.

Enfin, il faut bien comprendre les délais requis lorsque l’on prévoit d’uti-

liser le dessalement. « Lorsque l’on regarde la durée d’exploitation d’une nouvelle mine, la construction est relativement courte par rapport au temps de conception et de mise en service de l’infrastructure, particulièrement si l’on doit installer un pipeline », affirme M. Fleming. « Vous dépendez de l’accès aux communautés, du processus d’obtention des permis qui peut prendre deux, trois, voire même quatre ans.

C’est beaucoup plus long que le temps qu’il faut pour démarrer une mine. »

Usage direct de l’eau salée L’usage d’eau de mer, qui contient environ 3,5 pour cent de sel dissous, dans le traitement du minerai a des avantages évidents en termes de coût en capital, mais le traitement lui-même est souvent complexe et implique un certain degré d’incertitude. « Si vous prévoyez de faire de l’extraction électrolytique, vous avez besoin d’une eau ayant un faible taux de matières totales dissoutes, donc vous allez certainement dessaler », dit M. Fleming. « Si vous prévoyez d’utiliser un procédé de flottation ou un concentrateur, alors ce ne sera pas aussi important et vous June/July 2013 | 55

pourrez utiliser l’eau de mer. » Dans le cas du cuivre, où l’usage d’eau salée est le plus commun et présente le plus haut potentiel, le procédé de flottation fonctionne souvent mieux avec de l’eau salée, estime M. Philippe. Mais le pro-

Cependant, ces gisements contiennent aussi couramment de la pyrite et sa dépression nécessite un pH élevé.

Pour contrôler le pH, l’industrie minière utilise généralement de la chaux, qui fonctionne bien en eau douce. Par contre, dans l’eau salée, la chaux a un effet négatif sur la flottation de la molybdénite. « En fait, la récupération du molybdène, qui se situe autour de 70 pour cent, pourrait baisser pour atteindre 30 à 35 pour cent, ce qui n’est pas acceptable d’un point de vue économique », explique M. Laskowski. « Lorsqu’on trouve de la molybdénite dans un gisement sulfuré, il est recommandé de remplacer la chaux par un autre dépresseur de pyrite. » Dans un procédé développé à l’Université de Concepción, sur lequel M. Laskowski a travaillé, l’eau de mer est traitée avant son usage dans la flottation. Ce traitement réduit la teneur en composants de l’eau de mer qui nuisent à la flottation de la molybdénite dans un environnement alcalin.

Barrick Gold a récemment trouvé un moyen de faire face aux impacts négatifs de l’eau salée sur les procédés métallurgiques des minerais de cuivre et d’or : le traitement air-métabisulfite (AMBS). « L’avantage de ce procédé est que vous n’avez plus besoin de chaux et que vous pouvez maintenir la flottation au niveau de pH naturel du gisement », indique Barun Gorain, directeur principal du traitement du minerai chez Barrick Gold et inventeur du traitement. « Avec le procédé AMBS, vous pouvez utiliser de l’eau de mer ou de l’eau saumâtre avec un impact minimal sur la métallurgie par rapport à l’eau dessalée et, mieux encore, nous avons constaté que ce procédé améliore considérablement la métallurgie, par rapport à ce que l’on peut obtenir avec le procédé conventionnel à base de chaux. » Le traitement AMBS a aussi résolu le problème de la flottation du molybdène,

« Leur métallurgie durera cinq ans au lieu de dix, mais au point où elles en sont, elles essaient juste de survivre aux cinq prochaines années. » - Hubert Fleming

cédé est alors plus difficile à contrôler, ajoute-t-il. « Si le procédé requiert des changements soudains au niveau du pH ou des conditions chimiques, l’eau de mer agit comme un tampon, et le contrôle devient très difficile. » À l’inverse, dans le cas du molybdène, il a été prouvé que la flottation est beaucoup plus difficile dans l’eau salée, exigeant donc de nouvelles méthodes de contrôle du pH. Néanmoins, certaines sociétés travaillent au développement de technologies qui leur permettront de tirer profit de cette ressource si abondante qu’est l’eau de mer.

Minera Esperanza, une propriété d’Antofagasta Minerals et de Marubeni Corporation située dans le désert d’Atacama, est le tout premier projet à grande échelle à utiliser de l’eau de mer non traitée dans son procédé de flottation de cuivre. En activité depuis 2011, son usine de concentration sollicite la plus grande part des ressources en eau de la mine. Le projet a été conçu suite à une série d’études ayant déterminé les conditions optimales du processus de flottation primaire.

Le principal défi dans la flottation des minerais de sulfure de cuivremolybdène dans l’eau salée est la flottation de la molybdénite. D’après Janusz Laskowski, spécialiste en procédé de flottation et professeur émérite à l’Université de la Colombie-Britannique, ces minéraux hydrophobes par nature (par exemple la molybdénite) flottent même généralement mieux en eau salée.

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

selon M. Gorain. « Avec cette nouvelle technologie de Barrick, nous avons pu constater que la récupération du molybdène n’est pas un problème, l’impact sur la métallurgie est en fait minimal. » Le traitement AMBS a été initialement développé pour le projet d’exploitation de cuivre et d’or Reko Diq au Pakistan utilisant des eaux saumâtres, mais il a aussi été testé avec succès en utilisant de l’eau de mer. « Nous avons maintenant implanté ce procédé dans notre projet Jabal Sayid en Arabie saoudite et un autre projet important d’exploitation de cuivre et d’or en Amérique du Sud en fait de même », dit M. Gorain. « De plus, nous avons complété avec succès le pilotage pour un autre projet au Chili utilisant l’eau de mer. »

L’échéance du compromis Pour une société minière, le choix du dessalement ou de l’eau de mer « doit être évalué au cas par cas », affirme M. Philippe. « Les sociétés minières ne veulent pas dessaler, étant donné les énormes coûts en capital que cela implique », estime quant à lui M. Fleming. « Si elles peuvent trouver une autre solution, elles le feront. » La recherche et le développement de nouvelles technologies permettront peut-être à certaines sociétés de réduire ces coûts, particulièrement celles qui utilisent un procédé de flottation. « Il n’est pas logique de dessaler l’eau si vous disposez d’une technologie qui permet de relativement bien gérer le problème de la métallurgie », affirme M. Gorain. « De ce point de vue, nous ne faisons que pomper l’eau de mer et nous l’utiliserons tant et aussi longtemps que nous pourrons gérer les autres aspects qui s’y rattachent, y compris les préoccupations si importantes en matière d’environnement, de santé et de sécurité. » Il est toutefois difficile de deviner quel chemin les sociétés minières emprunteront dans le futur. Toutefois, une chose est sûre : l’eau douce étant une ressource limitée, les mines n’auront d’autres choix que de se tourner, tôt ou tard, vers la Grande Bleue. ICM

TECHNOLOGY >>

Mine planning and design

Illuminating the cave

By Eavan Moore

Courtesy of Rio Tinto

The trend towards low-grade, high-tonnage underground operations is growing, and block caving is well-suited for such large-scale production. While the method is well-established, its role in an increasing number of mining projects is accelerating the evolution of mine planning tools that can model the process and the impact of block caving.

A crew works on the No. 2 shaft at Rio Tinto’s Oyu Tolgoi mine in 2012. This block cave operation scheduled to begin production this summer and others in development promise valuable feedback that will help refine the modelling process for mass mining.

When the Henderson block cave mine opened in Colorado in 1976, there was no commercial mine planning software that catered to the block cave method, which undermines a large ore body and collects the fragmented ore from an array of drawpoints as the rock mass collapses under its own weight.

The operations team at the mine was compelled to write its own.

While some miners continue to develop their own software in-house (see: “The power to plan” on pg. 40), today’s caving operations have alternatives. Commercial software developers, researchers and consultants have collaborated to apply increasingly sophisticated computer modelling in the planning of block caving operations.

This stage is particularly critical given the extensive underground development required before any ore can be extracted.

The first planning step is to take an existing resource model and work out the rough footprint of the block of ore to be mined, explains John Barber, technical director for underground mining at AMEC E&C. To do this, the mine planning consultants can apply basic parameters like cost and grade to in-house algorithms, coming up with the best “height of draw” (HOD) or column height.

For the more detailed work, planners can use a range of commercially available software packages. Many mines use Gemcom PCBC, a production scheduling system developed 25 years ago under the Geovia brand of Dassault Systèmes. For every one of a mine’s thousands of drawpoints, PCBC can extend a virtual draw column rising to intersect with the block model.

While consultants can generate a basic footprint on their own, a “Best HOD” utility within PCBC exists, allowing users to refine the height of draw with column-by-column data.

Material mixing algorithms then estimate what will actually come out of the draw point. One of the more useful updates to PCBC, according to Chuck June/July 2013 | 57

Courtesy of Gemcom

technology >> Mine planning and design

The image depicts a model generated by PCBC of an inclined deposit shown as mined in two mining horizons. On each horizon, the simulated draw is coned for each drawpoint, truncated to the best height of draw, and coloured by grade values.

Brannon, manager of underground planning at Freeport McMoRan, is a 2006 template that can simulate a variety of mixing mechanisms, including vertical mixing, rilling, fines migration, and toppling from an adjacent open pit.

PCBC generates a production schedule that opens drawpoints in sequence and reports the tonnes and grade mined from each drawpoint. It makes use of inputs like the planned development sequence, tonnage required, desired cave shape, and numerous possible constraints such as tunnel capacity and material handling limitations during start-up. A typical schedule can be created in 20 minutes and exported in a variety of formats, including Excel spreadsheets.

Although AMEC’s Barber believes linking production schedules to dispatch is still a weak point, there are special features for block caving in the dispatch software sold by companies like Micromine, Caterpillar and Modular Mining. The vice-president of Geovia’s Caving Business Unit, Tony Diering, notes that Sandvik’s Automine is particularly well-integrated with PCBC, thanks to a 2004 request by the Finsch diamond mine.

Much of the modelling work in PCBC and other programs aims at drawing down the cave as uniformly as possible. “The name of the game in my book is cave management,” says Barber. “In an ideal world, which we don’t live in, every day you would have the same number of tonnes or buckets of muck drawn from every draw point in the cave. If your draw gets too far out of sequence, you can start introducing early dilution ingress. You can lose resources. You can cause geotechnical issues.”

Predictive power For the mine to get a uniform draw, it is important to anticipate what will emerge from the draw point. How will waste 58 | CIM Magazine | Vol. 8, No. 4

material dilute the ore as both move through the cave, and what sort of secondary fragmentation will broken rock chunks experience as they travel? Too little fragmentation could result in blocked drawpoints; too much can produce over-fine material.

Predicting what happens inside the cave is very complex, explains Otto Richter, principal consultant at Snowden Group.

He emphasizes that in caving operations, everything that has happened to the rock mass in the past – from geological formation to mining – continues to impact the cave’s performance throughout the mine’s life. “With open pit methods, history is history and you only work with remaining in situ material,” he says. “Not with block caving. Unless you know what happened in the past, you will never be able to accurately predict the future in a block cave over any reasonable period.”

But a mine in its design stage needs predictive tools, and that is a focus of the industry-sponsored Mass Mining Technology (MMT) project, based out of the University of Queensland, which seeks to minimize key caving risks through research. Participating developer Itasca International Inc. drew on physical models, theories originating from bin and silo flow, and an existing numerical code called PFC to develop a rapid gravity flow simulator called REBOP (rapid emulator based on PFC). In use at about 20 mines worldwide, it abstracts a draw column into layers that grow according to incremental rules based on common rock flow mechanisms such as dilation, collapse and rilling.

Improved fragmentation modelling Matt Pierce, principal engineer at Itasca, explains that REBOP uses four key inputs: drawpoint locations; the shapes and sizes of the drawbells and drawpoints; a draw schedule; and a block model that specifies the expected primary fragmentation.

“Understanding the primary fragmentation is key to understanding how the material will move down,” says Pierce, adding that this is no easy task. He is part of a team developing a new fragmentation tool, Synthetic Rock Mass (SRM), which is a numerical code that tests the effects of compression on a virtual rock mass. The rock model employs a discrete fracture network – a rendering of geotechnical data such as the number, orientation and density of joints.

Davide Elmo, assistant professor of rock mechanics at the University of British Columbia, uses discrete fracture network and SRM modelling in his research and consulting work. To produce a good fragmentation model, he cautions, the mine needs to include detailed information on its jointing structure. In particular, joint length has emerged as a critical parameter underrepresented in existing rock mass classification systems; new mines are just starting to add exploration work to learn how far their jointing structures extend. “We made it more complicated,” explains Elmo. “Instead of just using rock mass specification systems, we said, ‘Those are okay, but they cannot really solve your problems.’”

Elmo has also worked on a second key research area: predicting the surface subsidence that will inevitably result from a large caving process. “Predict” is too strong a word, in Elmo’s

Courtesy of Itasca Consulting Group

Courtesy of Gemcom

view, but he believes fairly good results can be obtained from finite element modelling tools like Itasca’s FLAC3D, Rockfield Software Ltd.’s ELFEN, and Dassault Systemes’ Abaqus.

In these models, according to Elmo, a finite element mesh subjected to stress distorts to the point of caving in an iterative process. He says, “Typically you have triggers in this model: ‘If you have a displacement greater than x, then switch the properties from rock mass to cave.’ And from there, your analysis gets updated, so now we have lots of elements that become caved and everything gets weaker.”

The test of time The finite element models are currently applied at some of the larger block cave operations such as the Henderson mine in Colorado, and the Finsch diamond mine in South Africa.

Newer versions of the software are also being used on mines like Resolution in Arizona, Newcrest’s Cadia East and Rio Tinto’s Oyu Tolgoi, which have yet to start production. The predictive power of the software has improved greatly in the last few years and as these new mines come online they will continue to improve. The issue today is that the calibration of the models has not kept pace with development of the new tools. “I would say probably in the next five years, we’re going to start to see what extra work we need to make these methods better,” says Elmo.

This REBOP simulation depicts material drawdown within a panel cave. Mining is advancing from left to right, and the drawpoints (shown in red and white) have drawn enough material that a crater (shown in black) has developed at the surface.

Meanwhile, the MMT project will have more than enough work to keep researchers busy; caving is increasingly widespread, over a wider range of rock masses. “I’ve been seeing a systematic increase in interest in caving research over the last 15 years,” says Pierce. “You put a lot of money up front before you extract your first ore, which means you’d better get it right.” CIM

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CIM community

Leading the conversation At record-breaking 2013 CIM Convention, miners look for ways out of tough times Forbes & Manhattan founder Stan Bharti, in focus, shares his wisdom with an audience of 600 at CIM 2013’s plenary session. He was joined by, from left, Chris Lewicki, Zoë Yujnovich, Egizio Bianchini and, far right, Richard Ross. | Le fondateur de Forbes & Manhattan Stan Bharti, au premier plan, partage sa sagesse avec un public de 600 personnes lors de la séance plénière du congrès de l'ICM 2013. Se sont joints à lui, de gauche à droite, Chris Lewicki, Zoë Yujnovich, Egizio Bianchini et Richard Ross.

Entretenir le discours collectif Au Congrès de l’ICM 2013, qui a battu les records de fréquentation, les mineurs cherchent une issue à ces périodes difficiles by / par Herb Mathisen

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t has been a tough year for the mining industry so far, but the close to 7,000 professionals who gathered in Canada’s financial centre for the 2013 CIM Convention shared ideas on how to lead the industry out of the current crunch. While the event provided an opportunity for convention-goers to forge partnerships, develop skills and hear new ideas, it also gave mining professionals the chance to take some time out to celebrate all that the industry contributes to Canada and to the rest of the world.

This year’s event broke attendance records, with more than 1,250 delegates coming to the Toronto convention – nearly doubling the previous Toronto event in 2009. In his speech during the SMS Equipment/Komatsu-sponsored opening ceremony, convention co-chair Tom Rannelli

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’industrie minière a connu un début d’année difficile, mais près de 7 000 professionnels se sont réunis au centre financier du Canada à l’occasion du Congrès de l’ICM 2013 pour partager leurs idées quant à la façon de sortir le secteur de la crise qu’il traverse actuellement. Cet événement a été l’occasion pour les congressistes d’établir des partenariats, de développer leurs compétences et de s’ouvrir à de nouvelles idée. Il a aussi permis aux professionnels de l’industrie minière de prendre du recul et de célébrer tout ce que le secteur minier apporte au Canada et au reste du monde.

Les records de fréquentation ont été battus cette année, avec plus de 1 250 délégués participant au congrès de Toronto, soit près de deux fois plus qu’à l’événement précédent qui avait eu lieu à Toronto en 2009. Dans son discours lors de la cérémonie d’ouverture commandité par SMS Équipement/Komatsu, le co-président du congrès Tom Rannelli a demandé aux participants de prendre un Photos by The Image Commission

CIM community

asked attendees to step back and reflect on their own stories and how they can support young mining professionals who are just beginning their careers. “That’s what this convention is all about,” he said, before highlighting the strength of the convention’s technical program and the impressive collection of industry expertise represented in the exhibition. “All these exhibitors are bringing their Agame to this convention. The people that are here are second to none.”

moment pour réfléchir à leurs propres expériences et à la façon dont ils pouvaient soutenir les jeunes professionnels de l’industrie minière qui commencent tout juste leur carrière. « C’est l’objectif même du congrès », a-t-il déclaré avant d’exposer les atouts du programme technique du congrès et l’impressionnante expertise industrielle représentée au salon commercial. « Tous ces exposants donnent le meilleur d’eux-mêmes au congrès. Les personnes qui sont venues exposer sont des experts sans égal. »

Leadership - Oser le changement Leadership and the courage to change The convention’s signature event – the plenary session – was held in front of a capacity audience of 600.

CBC journalist Mark Kelley moderated the panel discussion that boasted a lineup of influential mining leaders assembled to share their wisdom and experiences in the industry.

Richard Ross, program director for MBA Global Mining Management at the Schulich School of Business, set the tone early by listing the names of CEOs who had lost their jobs in the last year, along with many recent multi-billiondollar project write-downs. He pointed out three key systemic forces that are behind the problems facing the industry today: the increased influence that grassroots organizations have; the tyranny of short-term thinking from institutional investors; and how management teams are ill-prepared to deal with the growing complexity associated with developing projects. “In my view, I think these three factors have reached a tipping point,” he said.

L’événement phare du congrès - la séance plénière - s’est tenu devant un public de 600 personnes. Le journaliste de la CBC Mark Kelley a animé le débat auquel participait tout un éventail de chefs de file influents de l’industrie minière réunis ici pour partager leur sagesse et leur expérience dans ce secteur.

Richard Ross, directeur du programme de MBA (maîtrise en administration des affaires) en gestion globale de l’industrie minière à l’école de gestion Schulich, a rapidement donné le ton en dressant la liste des chefs d’entreprises ayant perdu leur emploi au cours de l’année qui s’est écoulée, et en évoquant la dévalorisation récente de nombreux projets totalisant plusieurs milliards de dollars. Il a indiqué trois forces systémiques principales à l’origine des problèmes rencontrés aujourd’hui par l’industrie minière : l’influence croissante des organismes communautaires ; la tyrannie de la réflexion à court terme des investisseurs institutionnels ; et le manque de préparation des équipes de gestion pour faire face à la complexité croissante associée aux projets de développement. « À mon avis, ces trois facteurs ont mené l’industrie à un point critique », a-t-il ajouté. « À moins de reconnaître et de comprendre ce qu’il se passe dans la société,

Missed the Plenary session or want to watch it again? Head over to www.cim.org to catch up on the conversation.

Visitez le www.cim.org pour voir – ou revoir – la plénière.

SOCIAL SKILLS Those unable to attend the convention were certainly able to keep up with happenings online.

The Reporter, sent out via email and posted online each morning of the convention, highlighted ideas and activities throughout the event, a Twitter campaign followed the discussions as they unfolded, and the convention Facebook page showcased the activities in photos. Website traffic to CIM’s home page doubled from last year’s event, with people visiting the site from around the world.

LES FAVORIS SOCIAUX Les personnes n’ayant pu participer au congrès ont cependant eu la possibilité de suivre les événements en ligne. Le CIM Reporter, envoyé par courriel et publié en ligne tous les matins durant le congrès, mettait l’accent sur les idées et les activités de l’événement ; une campagne Twitter suivait les débats à mesure qu’ils avaient lieu ; et la page Facebook consacrée au congrès présentait les activités en photos. La fréquentation de la page d’accueil de l’ICM a doublé par rapport à l’année dernière, et des personnes du monde entier ont consulté le site.

Social media booth | Stand des médias sociaux

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“Unless we acknowledge and understand what’s going on in society, we’re not really going to be able to equip the next generation of leaders with the right skills to take on these challenges, because they’re not going away.”

Egizio Bianchini, capital markets vice-chair and cohead of BMO’s global metals and mining group, said optimism is required more than ever today, while mining also has to work on clearing up its perception issues and show how it benefits communities and society. Iron Ore Company of Canada CEO Zoë Yujnovich, for her part, said the best way to ensure mining has a positive impact on society is to focus on profitable operations. “To be a resilient and sustainable company is what enables us to give back to the communities that we are operating in,” she remarked.

Forbes & Manhattan founder Stan Bharti provided the audience with tips on how to weather the current commodities downturn and Chris Lewicki, president of Planetary Resources, spoke about his company’s challenges to get people to take near-Earth asteroid mining seriously. Bharti, for one, thought it sounded like an enticing investment opportunity, stating: “Forbes & Manhattan will buy some asteroids.” Lewicki fielded the majority of audience questions, as queries also came in from around the world, with the plenary session streamed live online for the first time.

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nous ne serons pas en mesure d’offrir à la prochaine génération de chefs de file les compétences nécessaires pour faire face à ces enjeux, car ils ne sont pas prêts de disparaître. » Egizio Bianchini, vice-président et codirigeant du groupe mondial Métaux et minéraux de BMO Marchés des capitaux, explique qu’il faut plus que jamais rester optimiste, et que l’industrie minière doit s’efforcer de résoudre ses problèmes de perception et montrer comment elle profite aux communautés et à la société. Zoë Yujnovich, présidente de la Compagnie minière IOC, a pour sa part expliqué que le meilleur moyen de s’assurer que l’industrie minière ait un impact positif sur la société est de se concentrer sur les opérations rentables. « Être une société résistante et durable est ce qui nous permet de réinvestir dans les communautés dans lesquelles nous évoluons », a-t-elle fait remarquer.

Le fondateur de Forbes & Manhattan, Stan Bharti, a donné des conseils au public quant à la façon de survivre face à la crise qui touche les matières premières, et Chris Lewicki, président de Planetary Resources, a évoqué les difficultés que rencontre sa société pour que le public prenne au sérieux l’exploitation minière des astéroïdes géocroiseurs (proches de la Terre). Bharti, quant à lui, a trouvé qu’il s’agissait là d’une opportunité d’investissement séduisante : « Forbes & Manhattan achètera quelques astéroïdes. » La séance plénière était diffusée en direct sur Internet pour la première fois, et Lewicki a dû répondre à la majorité des questions du

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Mining made fun FedNor Minister Tony Clement gave kudos to Mining 4 Society (M4S) for educating kids about the mining and minerals sectors and for making a positive contribution to the national discussion on mining’s importance. “I want to commend you for doing that and keep doing more of it,” he told the crowd assembled for the plenary session.

“There’s so much misinformation and, quite frankly, ideological agendas that are trying to drag down the mining sector in a way that is completely unreasonable.”

The three-day M4S show kicked off the convention schedule on May 2. More than 2,500 students and teachers filed through the Queen Elizabeth Exhibit Hall to learn about the mining industry and the important role minerals play in society. Now in its eighth year, the show included 38 activities, ranging from interactive equipment simulations and demonstrations linking raw materials to everyday products, to the ever-popular gold-panner Yukon Dan, who instructed legions of young and old alike on how to shake, rinse and repeat until only flakes of gold and copper appeared at the bottom of their pans. “I think this show is a great opportunity for students to get interested in geology because not a lot of them know about it,” said Joey Vrzovski, a second-year University of Toronto

public au pied levé, étant donné que ces dernières émanaient du monde entier.

L’aspect ludique de l’industrie minière Le ministre de FedNor Tony Clement a félicité Mines et Société (M4S) pour les programmes éducatifs qu’il propose aux enfants sur les secteurs des mines et des minéraux ainsi que pour sa contribution positive au débat national relatif à l’importance de l’industrie minière. « Je tiens à vous féliciter pour vos efforts continuez dans cette direction », a-t-il déclaré devant les personnes qui s’étaient réunies pour assister à la séance plénière. « Il y a tellement de fausses informations qui circulent à ce sujet et, très franchement, de programmes idéologiques qui essaient de détruire le secteur minier de manière totalement déraisonnable. » Le salon de trois jours de M4S a marqué l’inauguration du programme du congrès le 2 mai. Plus de 2 500 étudiants et enseignants se sont rendus au Queen Elizabeth Exhibit Hall pour en apprendre davantage sur l’industrie minière et sur le rôle important des minéraux dans la société. La huitième édition de ce salon comprenait 38 activités, dont des simulations interactives de l’équipement, des démonstrations établissant une corrélation entre les matières premières et des produits d’usage courant ou encore le très populaire Yukon Dan, spécialiste en lavage d’or à la batée, qui a appris à une multitude de jeunes et moins jeunes à remuer, rincer et répéter

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geology student and M4S staff member. “They seem to be having a lot of fun. I wish I could have had an experience like this when I was their age.” The general public had access to the event on Saturday.

On the floor Featuring contingents from Quebec, Saskatchewan and Denmark, the sold-out exhibition at the Metro Toronto Convention Centre was filled with 436 mining suppliers, companies and consultancies – represented by 3,500 exhibiting staff – showcasing their goods. “It’s the first time that we’ve come here,” said Heidi Ravn, business sector manager with Danish Mining & Quarry Group. “The reaction has been very positive. We’re very happy to be here and hopefully we’ll be back next time.”

Planetary and Terrestrial Mining Sciences Symposium (PTMSS) exhibitors also showed off space rovers, heatstress reduction suits and crack-detection lasers tested in space.

Getting technical The convention included six technical streams, allowing convention-goers to learn about new legal and processing developments, advances on mining in new frontiers,

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cette action jusqu’à ce qu’il ne reste plus que des paillettes d’or et de cuivre au fond de leur batée. « Selon moi, ce salon est une excellente occasion pour les étudiants de s’intéresser à la géologie, car ils sont peu nombreux à connaître ce domaine », a expliqué Joey Vrzovski, étudiant en deuxième année de géologie à l’université de Toronto et membre du personnel de M4S. « Ils semblent y prendre beaucoup de plaisir. J’aurais aimé vivre ce genre d’expérience quand j’avais leur âge. » Le salon était ouvert au grand public le samedi.

Au salon commercial Des participants du Québec, du Saskatchewan et du Danemark se sont rendus au Palais des congrès du Toronto métropolitain pour assister au salon commercial, qui affichait complet. Les 436 fournisseurs, sociétés et consultants de l’industrie minière représentés par plus de 3 500 individus ont présenté leurs produits. « C’est la première fois que nous venons », a déclaré Heidi Ravn, responsable du secteur commercial du Danish Mining & Quarry Group. « Notre réaction a été très positive. Nous sommes ravis d’être ici et ferons notre possible pour revenir l’année prochaine. » Les exposants du Planetary and Terrestrial Mining Sciences Symposium (PTMSS) ont également présenté leurs astromobiles, des combinaisons de réduction du stress thermique et des lasers pour la détection des fissures testés dans l’espace.

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best practices in action, and to glean financial and leadership advice for experts in each respective field. The streams included leadership in investment and management; new frontiers and open innovation; operations and maintenance best practices; rock mechanics and geology advancements; social and environmental responsibility; and PTMSS. Celebrating its 10th anniversary, PTMSS was being held in conjunction with the CIM Convention for the first time to raise the symposium’s profile and also allow for space miners and traditional miners to meet and learn from each other.

“We’re on a first date,” said Dale Boucher, event chair. PTMSS featured a technical stream discussing, amongst other things, the legal and engineering challenges associated with mining in space. Boucher said the fact that many companies have recently come forward with business cases for space mining demonstrates the viability of such endeavours. “The giggle factor certainly is gone,” he said. “Now that it has become an economic activity and people are seriously talking about making money off of space mining, suddenly everything that we’ve been doing for the last 10 or 15 years has a basis in reality.”

Côté technique Le congrès comprenait six thèmes techniques qui ont permis aux congressistes d’en apprendre davantage sur les nouveaux développements juridiques et informatiques, les progrès en exploitation minière audelà de nouvelles frontières ainsi que les bonnes pratiques en action, et de glaner des conseils financiers et sur le leadership pour des experts de leurs domaines respectifs. Les thèmes portaient notamment sur le leadership en investissement et gestion ; les nouvelles frontières et l’innovation ouverte ; les bonnes pratiques en matière d’exploitation et de maintenance ; la mécanique des roches et les progrès réalisés en géologie ; la responsabilité sociale et environnementale ; et PTMSS. Pour la première fois, le PTMSS, qui fête son 10ème anniversaire, a eu lieu en parallèle avec le congrès de l’ICM en vue de renforcer la visibilité du symposium et également d’offrir aux mineurs spécialisés dans l’espace un lieu pour se rencontrer et approfondir leurs connaissances par l’échange. « Il s’agit en quelque sorte d’un premier rendez-vous », a expliqué Dale Boucher, président de l’événement. Le PTMSS comprenait une programmation technique débattant, entre autres, des enjeux juridiques et techniques associés à l’exploitation minière dans l’espace. Comme l’expliquait M. Boucher, le fait que de nombreuses sociétés aient récemment présenté leurs projets d’exploitation minière dans l’espace montre bien la viabilité de ces efforts. « Le facteur de dérision a disparu », a-t-il déclaré. « Il s’agit désormais d’une activité économique à part entière et

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Four professional workshops were also offered over the weekend. Roughly 130 attendees participated in sessions focused on mining disclosure standards, tailings management, chromium management, and the basics of mining and mineral processing.

The latest Women in Mining forum touched on female employment gaps in mining, specifically in nontraditional and senior management roles, along with company strategies for encouraging and increasing diversity and a philosophical and sociological dissection of gender.

Factive Pty Ltd.’s senior director Dean Laplonge took issue with current views on gender diversity, stating that people focus too closely on the numbers of women in the workplace. He said reports on women in mining follow the same pattern – repetition, stagnation and failure. Over the last 20 years they have used the same methodology, provided the same recommendations and “still, we don’t have enough women working in mining,” he said. “We need to rethink what we mean by gender.”

On Management and Finance Day, experts explained complex and overlooked issues in mining finance, providing helpful advice to developers who can sometimes be caught unaware of legal and contractual obligations. Organized by CIM’s Management and Economics Society, the event, in its fifth year, featured presentations touching on issues faced by companies developing projects, while examining aspects of project risk analysis and delving into problems companies have keeping to their capital cost estimates.

beaucoup évoquent sérieusement la possibilité de dégager des bénéfices de l’exploitation minière dans l’espace ; ainsi, tout ce que nous avons fait ces 10 ou 15 dernières années prend soudain forme dans la réalité. » Quatre ateliers professionnels ont également été proposés au cours du week-end. Environ 130 personnes ont participé aux séances dédiées aux normes de divulgation des informations sur les projets miniers, à la gestion des résidus pour un développement minier durable et à une introduction à l’exploitation minière et à la minéralurgie.

Le tout dernier forum sur les femmes dans l’exploitation minière portait sur les écarts en termes de taux d’emploi des femmes dans le secteur minier, notamment au niveau des rôles non traditionnels et des postes de direction, sur les stratégies des entreprises visant à promouvoir et à renforcer la diversité ainsi que sur une analyse philosophique et sociologique du genre. Dean Laplonge, directeur principal de Factive Pty Ltd., a contesté les points de vue actuels concernant la diversité des genres, expliquant qu’ils considèrent de manière trop stricte les données relatives au nombre de femmes au travail. Il a ajouté que les rapports suivent le même modèle, à savoir la répétition, la stagnation et l’échec. Au cours des 20 dernières années, ils ont suivi la même méthodologie, proposé les mêmes recommandations et « pourtant, l’industrie minière manque toujours cruellement de femmes dans ses rangs. Nous devons repenser notre notion du genre. » Lors de la journée Finance et gestion minière, des experts ont tenté d’analyser des questions complexes et négligées en matière de financement minier et ont donné des conseils utiles aux développeurs qui peuvent parfois se laisser prendre au dépourvu par les obligations

new CIM president Robert Schafer, who outlined his priorities to keep growing membership and to increase the engagement between branches and the national office.

ASSEMBLÉE GÉNÉRALE ANNUELLE DE L’ICM

CIM’S ANNUAL GENERAL MEETING CIM held its annual general meeting in front of an audience of CIM Members and CIM Branch and Society representatives. “From a financial point of view, we’ve never been in better shape,” said Terence Bowles, CIM’s outgoing president. Membership reached 14,554 this year, representing a 29 per cent increase from two years ago. CIM has continued its global expansion, with branches opening in Dakar, Senegal, and Lima, Peru. Bowles also touted CIM’s $2-million “rainy day” reserve fund, along with its $3.5 million in net available cash. The meeting was also the occasion for Bowles to hand over the reins to

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L’ICM a organisé son assemblée générale annuelle devant un public composé des membres de l’ICM et des représentants des sections et sociétés de l’ICM. « D’un point de vue financier, nous ne nous sommes jamais mieux portés », déclarait Terence Bowles, président sortant de l’ICM. Nous avons atteint la barre des 14 554 membres cette année, ce qui représente une augmentation de 29 pour cent par rapport à deux années en arrière. L’ICM continue de croître au niveau mondial avec des sections s’ouvrant à Dakar, au Sénégal, et à Lima, au Pérou. Bowles a également évoqué les fonds de réserve de l’ICM d’une valeur de 2 millions $ pour les « périodes difficiles », ainsi que les 3,5 millions $ dans la trésorerie disponible nette. Cette assemblée a également été l’occasion pour Bowles de passer le flambeau au nouveau président de l’ICM, Robert Schafer, lequel a exposé ses priorités en mettant l’accent sur l’importance de poursuivre la tendance croissante du nombre d’adhésions et de renforcer l’engagement entre les sections et l’organisation internationale.

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At the closing luncheon, Pierre Boivin and Brenda Swick of the law firm McCarthy Tétrault shed light on recent legal developments related to corruption of foreign public officials and some of the nuances of doing business across borders to an audience of more than 100.

Something for everybody This year’s convention featured an impressive international delegation, with more than 60 delegates from West Africa, and also First Nations representatives, who were eager to discuss partnership opportunities.

More than 100 students turned out for the studentindustry luncheon, where they could meet with industry profesionals and ask them questions.

New this year were two networking breakfasts: Rachel Stephan, president of Les sens créatifs, led a session on how to use social media tools to engage potential partners and showcase projects to the world; and Tom Rannelli, joined by his son, Thomas, examined the new mentorship relationship where younger workers benefit from the older workers’ wisdom and experience, while the senior worker learns about new technology from the junior worker. Both were very successful.

Party time Convention-goers had plenty of options to relax and enjoy themselves at the many receptions that make up the convention’s social program. CIM’s annual Awards Gala, sponsored by Caterpillar and its Canadian Dealers and featuring the curmudgeonly comedian Mike Bullard and a performance by the Jersey Kid, recognized the industry’s best and brightest and brought out more than 530 mining professionals.

The following evening, Joy Global hosted its annual gala, where party bands Groove Marmalade and The Decades had the dance floor shaking. CIM

légales et contractuelles. Organisée par la Société de la gestion et de l’économie de l’ICM, la cinquième édition de cet événement comprenait des présentations abordant les enjeux auxquels sont confrontées les entreprises qui mettent des projets sur pied. Certains aspects de l’analyse des risques associés aux projets ont également été examinés, de même que les problèmes rencontrés par les entreprises qui cherchent à respecter les estimations de leurs coûts d’immobilisation. Lors du déjeuner de clôture, Pierre Boivin et Brenda Swick du cabinet d’avocats McCarthy Tétrault ont abordé devant un public de plus de 100 personnes les récents développements juridiques relatifs à la corruption d’agents publics étrangers et certaines des nuances concernant les affaires menées par-delà les frontières.

Il y en a pour tous les goûts Cette année, le congrès affichait une délégation internationale exceptionnelle, avec plus de 60 délégués d’Afrique et des représentants des Premières nations qui souhaitaient discuter des opportunités de partenariats.

Plus de 100 étudiants ont participé au déjeuner étudiants-industrie, un lieu où ils ont pu rencontrer des professionnels de l’industrie et leur poser des questions. Les déjeuners de réseautage étaient nouveaux cette année : Rachel Stephan, président de l’agence Les sens créatifs, a dirigé une séance sur la façon d’utiliser les médias sociaux afin d’impliquer des partenaires potentiels et de présenter des projets au monde ; et Tom Rannelli, accompagné de son fils Thomas, s’est penché sur la nouvelle relation de mentorat où les jeunes travailleurs profitent de la sagesse et de l’expérience des travailleurs plus âgés, et leur font de leur côté découvrir les nouvelles technologies. Ces deux événements ont eu beaucoup de succès.

C’est l’heure de la fête Les congressistes ont eu accès à plusieurs options pour se relaxer et se divertir lors des diverses réceptions organisées dans le cadre du programme social du congrès. Le comédien Mike Bullard et une performance de Jersey Kid étaient au programme des festivités du gala annuel de remise de prix de l’ICM, lequel est commandité par Caterpillar et ses concessionnaires canadiens et a présenté les plus grands talents de l’industrie et a réuni plus de 530 professionnels de l’industrie minière. La soirée suivante, Joy Global a présenté son gala annuel animé par les groupes Groove Marmalade et The Decades, qui ont entraîné les participants sur la piste de danse. ICM Traduit par Karen Rolland

THE FUN DOESN’T STOP Don’t want the party to end? Check out the photo galleries, and connect with people you met at the convention on the CIM Facebook page.

CE N’EST PAS FINI Vous voulez que la fête continue? Consultez les galeries de photos et connectez-vous avec les personnes que vous avez rencontrées lors du congrès sur la page Facebook dédiée au Congrès & Salon commercial de l’ICM. Joy Global gala | Gala Joy Global

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CIM awards gala | Gala de remise des prix de l’ICM

CIM award winners Les gagnants des prix d’excellence de l’ICM

John T. Ryan Trophy, Canada Trophy for Metal Mines | Trophées John T. Ryan, Trophée Canada pour les mines de métaux Xstrata Copper, Kidd Operations, Timmins, ON John T. Ryan Trophy, Canada Trophy for Select Mines | Trophées John T. Ryan, Trophée Canada pour les mines sélectionnées Potash Corporation New Brunswick Division, Sussex, NB John T. Ryan Trophy, Canada Trophy for Coal Mines | Trophées John T. Ryan, Trophée Canada pour les mines de charbon Prairie Mines & Royalty Ltd. Genesee Mine, Warburg, AB Hatch-CIM Mining & Minerals Project Development Safety Award | Prix pour la sécurité des chantiers dans le domaine des mines et du minerai de Hatch-ICM Endako Mines Expansion Project – Thompson Creek Metals, B.C.

de Lorraine, Nancy, France; Li Zhen Cheng, Université du Québec en AbitibiTémiscamingue, Rouyn-Noranda, QC Robert Elver Mineral Economics Award | Prix d’économie des minéraux Robert Elver Michael Samis, Ernst & Young, Toronto, ON Julian Boldy Memorial Award | Prix commémoratif Julian Boldy Jason Dunning, Alamos Gold Inc., Toronto, ON J.C. Sproule Memorial Plaque | Plaque commémorative J.C. Sproule Hendrik Falck, Aboriginal Affairs and Northern Development Canada, Yellowknife, N.W.T. Past Presidents Memorial Medal | Médaille commemorative des anciens présidents James Siddorn, SRK Consulting, Toronto, ON

Mel W. Bartley Award | Prix Mel W. Bartley North Central B.C. Branch, Prince George, B.C.

Members Award | Prix des members Roxanne Kneer, CIM Sudbury Branch, Lively, ON

Syncrude Award for Excellence in Sustainable Development | Prix Syncrude pour l’excellence en développement durable Gordon Peeling, Odd Rocks Enterprise, Ottawa, ON

Vale Medal | Médaille Vale Jon Baird, Camese, Goodwood, ON

CIM Distinguished Lecturers | Éminents conférenciers de l’ICM Bruce Conard, Bruce R. Conard Consulting, Oakville, ON; Chris TwiggeMolecey, Hatch, Toronto, ON; Garth Kirkham, Kirkham Geosystems Ltd., Burnaby, B.C.; Gordon Winkel, University of Alberta, Edmonton, AB; Heather Ednie, Global Mining Standards and Guidelines Group, Howick, QC; Peter Wan, Teck Metals, Trail, B.C.; Rosie Steeves, Executive Works, Vancouver, B.C.

Medal for Bravery | Médaille de Bravoure John Cerne, Foraco Canada Western Division, Kamloops, B.C.

CIM-Bedford Canadian Young Mining Leaders Awards | Les Prix jeunes leaders canadiens du secteur miniers ICM-Bedford Steven Assen, Sherritt International, Fort Saskatchewan, SK; Sean McCaughan, Sherritt International, Edmonton, AB Special Recognition | Reconnaissance spéciale Peter McBride, Ontario Mining Association, North York, ON District 3 Distinguished Service Award | Prix du District 3 pour services remarquables Shannon Clark, ArcelorMittal Dofasco, Hamilton, ON Underground Mining Society Award | Prix de la Société d’exploitation minière souterraine Anthony George, Lucara Diamond Corporation, Vancouver, B.C. Barlow Memorial Medal | Médaille commémorative Barlow Oliver Rabeau, Ministry of Natural Resources of Quebec, Quebec City, QC; Marc Legault, CÉGEP Abitibi-Témiscamingue, Rouyn-Noranda, QC; Alain Cheilletz, École Nationale Supérieure de Géologie, Université de Lorraine, Nancy, France; Michel Jébrak, Université du Québec à Montréal, Montreal, QC; Jean-Jacques Royer, École Nationale Supérieure de Géologie, Université

CIM Distinguished Service Medal | Médaille ICM pour services remarquables Chuck Edwards, AMEC, Saskatoon, SK

CIM Fellowships | Confrérie de l’ICM Charles E. (Ted) Knight, Vancouver, B.C.; C. Ravi Ravindran, Ancaster, ON; Dominic Fragomeni, Falconbridge, ON; Peter Kondos, Toronto, ON; Vladimiros Papangelakis, Toronto, ON; Priti Wanjara, Montreal, QC; Noel Cleland, Canmore, AB; Peter V. Young, Portugal Cove-St. Phillips, NL; Steven W. Harapiak, Burlington, ON; Lindsay Milne, Calgary AB; D. Anton, Calgary, AB; Rex V. Gibbons, St. John, NL; Soheil Asgarpour, Calgary, AB; Russell Hallbauer, Vancouver, B.C.; François Pelletier, Boucherville, QC; James K. Gowans, Toronto, ON Fifty-Year Club | Club des cinquante ans William Allan, Oakville, ON; John F. Anderson, Henderson, NV; Cass Atkinson, Stratford, ON; P. A. Bevan, Mississauga, ON; John G. Brady, Ottawa, ON; J. H. Hall Chamberlin, Campbell River, B.C.; Donald A. Cranstone, Smiths Falls, ON ; James Peter Davies, Malibu, CA; Gavin Ewan Dirom, North Vancouver, B.C.; A. Darryl Drummond, Vancouver, B.C.; William B. Dunlop, Winnipeg, MB; George H. Espley, Pickering, ON; Walter Fell, Sudbury, ON; Édouard Gervais, Lorraine, QC; Cyril E. Leonoff, Vancouver, B.C.; Terrence N. Macauley, Vancouver, B.C.; Robert A. MacGregor, Sault Ste. Marie, ON; H. E. Neal, Toronto, ON; Fritz F. Prugger, La Antilla, Spain; Alastair J. Sinclair, Vancouver, B.C.; Barton A. Thomson, Beaverton, ON; Jean-Paul Vinet, Saint-Alphonse-de-Rodriguez, QC; Alan R. Watt, Richmond, B.C.; Umetaro Yamaguchi, Tokyo, Japan

Want to put a face to the name? Visit www.cim.org to read profiles of the 2013 CIM award winners.

Visitez le www.cim.org pour consulter les histoires des gagnants des prix d’excellence de l’ICM 2013.

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TECHNICAL ABSTRACTS

CIM

journal Excerpts taken from abstracts in CIM Journal, Vol. 4, No. 2.

To subscribe, to submit a paper or to be a peer reviewer—www.cim.org

Geostatistical modelling of particle size distributions in the McMurray formation J.G. Manchuk, Centre for Computational Geostatistics, University of Alberta, Edmonton, Alberta; O. Babak, Total E&P Canada Ltd., Calgary, Alberta; and C.V. Deutsch, Centre for Computational Geostatistics, University of Alberta, Edmonton, Alberta

ABSTRACT A significant factor in evaluating bitumen recovery from an oil sands mine is the particle size distribution (PSD).

Increased understanding of mined ore quality and improvement in predictions of recovery can be achieved through PSD modelling. This paper addresses PSD modelling using geostatistics. PSDs may be described using many discrete particle sizes, making this a challenge. The approach parameterizes PSDs with a few statistics. A lookup table is used to reconstruct the PSDs based on models of the statistics. The workflow is applied to Total E&P Canada’s Joslyn Lease and yields good results that reproduce input statistics without introducing artifacts.

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

RÉSUMÉ La granulométrie des particules constitue un facteur important de l’évaluation de la récupération du bitume d’une exploitation de sables bitumineux. En modélisant la granulométrie, il est possible de mieux connaître la qualité du minerai extrait et d’améliorer les prévisions de récupération. Le présent article traite de la modélisation géostatistique de la granulométrie. La granulométrie peut être décrite au moyen de plusieurs tailles distinctes de particules, ce qui pose des défis. L’approche présentée établit les paramètres de la granulométrie avec quelques statistiques. Un tableau de consultation aide à reconstruire la granulométrie basée sur des modèles des statistiques. Le déroulement des opérations est utilisé au projet Joslyn de Total E&P Canada et de bons résultats ont été obtenus qui reproduisent les statistiques d’entrée sans introduire d’artéfacts.

TECHNICAL ABSTRACTS

canadian metallurgical quarterly Excerpts taken from abstracts in CMQ, Vol. 50, No. 2.

To subscribe – www.cmq-online.ca

Assessment of slag and copper equilibrium in a vaniukov two-zone converter L.B. Tsymbulov, JS Gipronickel Institute, 11 Grazhdansky Prospect, Saint-Petersburg, Russia

ABSTRACT A brand new process of blister copper production from copper matte and concentrates in the two-zone Vaniukov converter has been developed at the Gipronickel Institute facility. Thermodynamic analysis of exchange interaction has been performed for the “slag melt-metal phase formed in the over-the-lance area of the Vaniukov converter reduction zone” system and for “slag melt-bottom phase of blister copper located in the bottom (under-the-lance) area of the Vaniukov converter” system. Based on the thermodynamic analysis data, the original design of the two-zone Vaniukov converter has been proven to be able to create conditions ensuring production of blister copper of higher quality, as compared to the one-zone Vaniukov converter process, copper concentration in slag being substantially lower.

RÉSUMÉ Un procédé entièrement nouveau de production de cuivre blister dans un convertisseur Vaniukov à deux zones, à partir de matte de cuivre et de concentrés, a été développé aux installations de l’Institut Gipronickel. On a effectué l’analyse thermodynamique de l’interaction d’échange pour le système bain de scorie-phase de métal formé dans la région au-dessus de la lance de la zone de réduction du convertisseur Vaniukov et pour le système bain de scorie-phase du bas du cuivre blister situé dans la région du bas (sous la lance) du convertisseur Vaniukov. En se basant sur les données de l’analyse thermodynamique, on a montré que le concept original du convertisseur Vaniukov à deux zones était capable de créer les conditions assurant la production de cuivre blister de meilleure qualité par rapport au procédé du convertisseur Vaniukov à une zone, la concentration du cuivre dans la scorie étant substantiellement plus basse.

Oxide nickel ores smelting of ferronickel in two-zone vaniukov furnace L.B. Tsymbulov, M.V. Knyazev and L.Sh. Tsemekhman, JS Gipronickel Institute, 11 Grazhdansky Prospect, Saint-Petersburg, Russia

ABSTRACT Gipronickel Institute is developing a brand new process of Kempirsay Deposit’ nickel oxide ore treatment to ferronickel based on Vanuikov furnace smelting technology.

Results of the extended laboratory scale tests using pilot Vanuikov two-zone furnace are presented. It is demonstrated that treatment of relatively poor nickel oxide ore (Ni – 1.05 mass %) according to the said technology can result in production of high grade ferronickel (Ni3≥20%) at high rate nickel recovery into ferronickel (>90%). Technological peculiarities of the processes taking place in the furnace’ smelting and reduction areas are considered.

RÉSUMÉ L’Institut Gipronickel est en train de développer un procédé entièrement nouveau pour le traitement du minerai d’oxyde de nickel en ferronickel du dépôt de Kempirsay, basé sur la technologie de fonte du four Vaniukov. On présente les résultats des essais approfondis à l’échelle du laboratoire utilisant le four pilote Vaniukov à deux zones. On démontre que le traitement de minerai d’oxyde de nickel à teneur relativement faible (1.05% en masse de Ni) peut aboutir, d’après la dite technologie, en une production de ferronickel de haute qualité (≥20% de Ni3) avec récupération élevée du nickel (>90%). On considère les particularités technologiques des procédés qui ont lieu lors de la fonte dans le four et dans les zones de réduction.

Autogeneous electrospark deposition of nicocraly G. Goodall, C. Kaplin and M. Brochu, McGill University, Mining and Materials Engineering Department, Montreal, Quebec, Canada

ABSTRACT Electrospark deposition (ESD) is a micro-arc welding process that has been successfully used to deposit an autogenous ultrafine NiCoCrAlY coating. Primary solidification of the β phase shows epitaxial growth where orientation and heat flux coincide. ECCI imaging of the deposits show a homogeneous distribution of non-stochiometric phases from the rapid solidification of the ESD process. EBSD mapping of the deposit indicates an ultra fine β structure can grow epitaxially where favourable conditions prevail. The equiaxed structure associated with the γ to β solidification shift was not observed and is believed to result

RÉSUMÉ Le dépôt électrostatique (ESD) est un procédé de microsoudage à l’arc que l’on a utilisé avec succès pour déposer un revêtement ultrafin autogène de NiCoCrAlY. La solidification primaire de la phase β montre une croissance épitaxiale là où l’orientation et le flux de chaleur coïncident. Les images par ECCI des dépôts montrent une distribution homogène des phases non-stœchiométriques de solidification rapide du procédé d’ESD. Le mappage du dépôt par EBSD indique qu’une structure β ultrafine peut croître par épitaxie là où des conditions favorables prévalent.

On n’a pas observé la structure équiaxe associée au changement de solidification de γ à β et l’on croit que cela est dû à l’électrode homogène et aux compositions du substrat. L’oxydation du dépôt June/July 2013 | 71

CALENDAR UPCOMING EVENTS World Mining Congress 2013 August 11 - 15 | Montreal, Quebec, Canada www.wmc-expo2013.org Id Vaa bZbWZgh d[ i]Z 8VcVY^Vc >chi^ijiZ d[ B^c^c\!

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ISARC2013: The 30th International Symposium on Automation and Robotics in Construction and Mining August 11 - 15 | Montreal, Quebec, Canada www.isarc2013.org ICANM 2013: International Conference on Advanced & Nano Materials August 12 - 14 | Quebec City, Quebec, Canada iaemm.com/ICANM2013 AIMEX 2013 August 20 - 23 | Sydney, Australia www.aimex.com.au MMM2013: 15th Symposium on Control, Optimization and Automation in Mining, Minerals and Metals Processing August 25 - 28 | San Diego, California, U.S.A. www.flogen.org/mmm2013 ICCE 2013: International Conference on Clean Energy September 9 - 11 | Ottawa, Ontario www.iaemm.com/icce2013

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Oil Sands Trade Show 2013 September 10 - 13 | Fort McMurray, Alberta www.oilsandstradeshow.com PERUMIN: 31st Mining Convention September 16 - 20 | Arequipa, Chile www.convencionminera.com/perumin31 Heap Leach 2013 September 22 - 25 | Vancouver, British Columbia www.heapleachconference.com

BZbWgZh YZ aÉ>chi^iji XVcVY^Zc YZh b^cZh! YZ aV b iVaajg\^Z Zi Yj e igdaZ! cdjh kdjh Y^hdch bZgX^# BZgX^ YZ Xdcig^WjZg Vj YncVb^hbZ YZ cdigZ XdbbjcVji fj^ [V dccZ aZ hZXiZjg b^c^Zg YÉVj_djgYÉ]j^ Zi YZ YZbV^c! iVci Vj eVnh fjÉ| aÉ^ciZgcVi^dcVa#

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

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Colombia Minera 2013 September 25 - 27 | Medellin, Colombia www.prochile.gob.cl World Gold 2013 September 26 - 29 | Brisbane, Australia www.ausimm.com.au/worldgold2013 MEMO 2013 Maintenance Engineering/Mine Operators’ Conference Colloque sur l’ingénierie de maintenance et l’exploitation minière September 29 - October 2 | Kamloops, British Columbia www.memo2013.cim.org

TECHNICAL ABSTRACTS

canadian metallurgical quarterly from the homogeneous electrode and substrate compositions. Oxidation of the deposit shows advantageous alumina growth stemming from the ultra fine aluminum rich phase.

The transition from θ to α alumina was nearly complete in only 6 hours at 1000°C in air.

montre une croissance avantageuse de l’alumine provenant de la phase b riche en aluminium ultra fin. La transition de l’alumine θ en α était presque complète en seulement 6 heures à 1000°C à l’air.

Effect of electrolyte additives on microstructure and properties of electroplated chromium coatings I. Makarov, Inotec Coatings and Hydraulics Inc, Edmonton, Alberta, Canada; J. Chen, Department of Chemical & Materials Engineering, University of Alberta, Edmonton, Alberta, Canada; E. Yurasovskaya, Department of Mathematics, University of British Columbia, Vancouver, British Columbia, Canada; J. McCracken, Inotec Coatings and Hydraulics Inc, Edmonton, Alberta, Canada; and H. Henein, Department of Chemical & Materials Engineering, University of Alberta, Edmonton, Alberta, Canada

ABSTRACT Recent progress in environmental science provides an incentive to explore the use of hexavalent chromium for anti-corrosion and wear protection purposes. To this end, this work aims to explore the evolution of the microstructure of chromium coatings as a function of electric current through the electrolyte in the presence of organic and nonorganic additives. In this study, the fundamental properties of electroplating related to hard chromium such as hardness (wear resistance) and cathode efficiency are reviewed with respect to cathode current. The results obtained show that the microstructure is sensitive to the presence of organic admixtures in the plating solution. In addition, the effect of hard micro particles on the plating process at enhanced values of cathode current is reported. The cathode efficiency for different plating speeds and in different chromium electrolytes is calculated from the experimental results.

RÉSUMÉ Les progrès récents des sciences de l’environnement fournissent une incitation à explorer l’utilisation du chrome hexavalent pour le but de protection contre la corrosion et l’usure. À cette fin, ce travail vise à explorer l’évolution de la microstructure de revêtements de chrome en fonction du courant électrique à travers l’électrolyte en présence d’additifs organiques et inorganiques.

Dans cette étude, on analyse les propriétés fondamentales de l’électroplastie reliées au chrome dur comme la dureté (résistance à l’usure) et l’efficacité de la cathode, par rapport au courant de la cathode. Les résultats obtenus montrent que la microstructure est sensible à la présence d’additifs organiques dans la solution de placage. En plus, on rapporte l’effet de micro particules dures sur le procédé de placage à des valeurs augmentées du courant de la cathode. À partir des résultats expérimentaux, on calcule l’efficacité de la cathode à différentes vitesses de placage et avec différents électrolytes de chrome.

Solvent refining of silicon using nickel as impurity getter Z. Yin, A. Oliazadeh, S. Esfahani, M. Johnston and M. Barati, Department of Materials Science and Engineering, University of Toronto, Toronto, Ontario, Canada

ABSTRACT The effectiveness of Ni as an impurity trapper in refining of silicon has been studied. Metallurgical grade silicon was alloyed with Ni and the molten alloy solidified by slow cooling at various cooling rates. Silicon dendrites grown during solidification of the alloy were subsequently recovered from the matrix by employing a heavy media separation technique. The process efficiency was studied in terms of the effectiveness of the physical separation technique and the degree of purification of Si.

RÉSUMÉ On a étudié l’efficacité du Ni comme piège à impureté dans l’affinage du silicium. On a allié avec du Ni le silicium de qualité métallurgique et l’on a solidifié l’alliage fondu par refroidissement lent à différentes vitesses de refroidissement. On a ensuite récupéré de la matrice les dendrites de silicium formées lors de la solidification de l’alliage en employant une technique de séparation à média lourds. On a étudié le rendement du procédé par rapport à l’efficacité de la technique de séparation physique et au degré de purification du Si.

Influence of cooling rate and composition on the formation of intermetallic phases in solidifying al–fe–si melts D. Panahi and D.V. Malakhov, Department of Materials Science and Engineering, McMaster University, Hamilton, Ontario, Canada; and M. Gallerneault and P. Marois, Novelis Global Technology Centre, Kingston, Ontario, Canada

ABSTRACT Aluminum alloys containing 0.3% Fe and 0.05% Si, 0.3% Fe and 0.15% Si, 0.3% Fe and 0.45% Si, 0.5% Fe, and 0.2% Si were solidified with different cooling rates.

Shapes of intermetallic particles and their spatial distribution in the alloys were characterized by optical and scanning

RÉSUMÉ On a solidifié des alliages d’aluminium contenant 0.3% Fe et 0.05% Si, 0.3% Fe et 0.15% Si, 0.3% Fe et 0.45% Si et 0.5% Fe et 0.2% Si, à différentes vitesses de refroidissement. On a caractérisé la forme des particules intermétalliques et leur distribution spatiale dans les alliages, au moyen de la microscopie optique et de la microscopie électronique à balayage. On a utilisé l’analyse de la diffraction des

June/July 2013 | 73

electron microscopy. X-ray diffraction analysis was used to establish the types of intermetallic phases extracted from the alloys by dissolving the FCC matrix in boiling phenol. The influence of melt superheating on the microstructure was analyzed by comparing phase portraits of alloys solidified from melts whose temperatures prior to casting were 100°C and 350°C above the liquidus.

rayons X pour établir les types de phases intermétalliques extraites des alliages par dissolution de la matrice FCC dans du phénol en ébullition. On a analysé l’influence de la surchauffe du bain sur la microstructure en comparant les images de phase des alliages solidifiés à partir des bains dont les températures avant le moulage étaient de 100°C et de 350°C au-dessus du liquidus.

Investigation of corrosion-enhanced erosion of carbon steel in slurries using nano-indentation K. Wang, B.T. Lu and J.L. Luo, Department of Chemical and Materials Engineering, University of Alberta, Edmonton, Alberta, Canada

ABSTRACT When cathodic protection is applied, there is no impact of slurry chemistry on either the erosion behavior of carbon steel or the in situ surface hardness. Anodic dissolution of the steel surface reduces the surface hardness and promotes erosion. The corrosion-enhanced erosion behavior is slurry chemistry dependent. The erosion wastage in acidic slurries is much higher than that in neutral and alkaline ones. The slurry chemistry effect on corrosion-enhanced erosion behavior correlates well with surface hardness degradation as determined using nano-indentation technique.

The increase in surface hardness degradation in acidic chemistry is greater than that in neutral and alkaline ones, in which there is similar surface hardness reduction. The results suggest that both corrosion current density and electrolyte chemistry affect the mechanical properties of surface layers, and that leads to corrosion-enhanced erosion.

RÉSUMÉ Lorsque l’on applique la protection cathodique, il n’y a pas d’impact de la chimie de la suspension soit sur le comportement à l’érosion de l’acier au carbone, soit sur la dureté de la surface in situ.

La dissolution anodique de la surface de l’acier réduit la dureté de la surface et favorise l’érosion. Le comportement à l’érosion augmentée par la corrosion dépend de la chimie de la suspension. Les pertes dues à l’érosion dans les suspensions acides sont beaucoup plus élevées que dans les suspensions neutres ou alcalines. L’effet de la chimie de la suspension sur le comportement à l’érosion augmentée par la corrosion est bien corrélé à la dégradation de la dureté de la surface, telle que déterminée par la technique de nanopénétration. L’augmentation de la dégradation de la dureté de la surface en milieu acide est plus importante que dans les milieux neutres ou alcalins, où il y a une réduction similaire de la dureté de la surface. Les résultats suggèrent que la densité du courant de corrosion et la chimie de l’électrolyte affectent tous deux les propriétés mécaniques des couches de surface et cela mène à l’érosion augmentée par la corrosion.

Kinetics of mild steel corrosion in aqueous formic acid solutions S.K. Singh, Department of Applied Chemistry, Institute of Technology, Banaras Hindu University, Varanasi, India, and Department of Chemistry, University of Delhi, Delhi; and A.K. Mukherjee and M.M. Singh, Department of Applied Chemistry, Institute of Technology, Banaras Hindu University, Varanasi, India

ABSTRACT The kinetics of the corrosion of mild steel in formic acid solutions of different concentrations has been studied at 25, 35 and 45° C. The corrosion rate was evaluated by weight loss and electrochemical polarization techniques. There is good agreement between the data obtained by the two techniques. The maximum corrosion rate was observed in close vicinity of 20% formic acid solution. The anodic polarization curves show active corrosion behaviour of mild steel over the whole range of potential at each concentration and temperature. The shape of anodic and cathodic polarization curves was found to be almost independent of the temperature and the concentration of formic acid. However, the curves bodily shift towards lower or higher current density side with change in the concentration of the electrolyte. With rise in temperature, the shift of polarization curve regularly occurs towards higher current density side. The surface morphology of the specimens has been studied by scanning electron microscopy. The micrographs indicate uniform corrosion of mild steel in formic acid solution.

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RÉSUMÉ On a étudié la cinétique de corrosion de l’acier au carbone en solutions d’acide formique à différentes concentrations, à 25, 35 et 45°C. On a évalué la vitesse de corrosion par des techniques de perte de poids et de polarisation électrochimique. Il y a un bon accord entre les données obtenues par les deux techniques. On a observé la vitesse maximale de corrosion dans une solution de près de 20% d’acide formique. Les courbes de polarisation anodique montrent un comportement de corrosion active de l’acier au carbone pour la gamme complète de potentiel à chaque concentration et température. On a trouvé que la forme des courbes de polarisation anodique et cathodique était presque indépendante de la température et de la concentration de l’acide formique. Cependant, le cœur des courbes se déplace du côté d’une densité de courant plus faible ou plus élevée avec un changement de concentration de l’électrolyte. Avec une élévation de la température, le déplacement de la courbe de polarisation se produit régulièrement du côté d’une densité de courant plus élevée. On a étudié la morphologie de la surface des échantillons au moyen du microscope électronique à balayage. Les micrographes indiquent une corrosion uniforme de l’acier au carbone dans une solution d’acide formique.

Ti/TiO2/Ni2+ interface: unexpected protection of Ti by Ni2+ cations in hot sulphuric acid

O. Yépez and J. Shirokoff, Faculty of Engineering and Applied Sciences, Memorial University of Newfoundland, St. John’s, Newfoundland, Canada

ABSTRACT The processing of nickel ores involves: high temperatures (>100ºC), high [H2SO4] and high [Cl-]. Despite the severity of this service pure titanium can be used because it presents very low corrosion rates. Looking for the fundamental causes of this behaviour, it was found that the potential of the couple Ti4+ /Ti3+ shifted to more negative potentials than the couple Ni2+/Ni in these conditions. Thus, Ni2+ was reduced to Ni metal oxidizing Ti3+ to Ti4+. This increased the concentration of Ti4+ which is critical for the formation of the protective TiO2 layer. In turn, the TiO2 passivates the active titanium dissolution. Also, the deposited Ni catalyzes the cathodic kinetics producing a mixed potential in the passive region for titanium. This process involves Ti/TiO2/Ni2+ and Ti/Ni2+ interface systems and Ti/Ni2+ behaviour is somewhat like a titanium-nickel alloy.

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RÉSUMÉ Le traitement des minerais de nickel implique des températures élevées (>100°C) et une concentration élevée de [H2SO4] et de [Cl-]. En dépit de la sévérité de ces conditions, on peut utiliser le titane pur parce que celui-ci présente de très faibles taux de corrosion. Examinant les raisons fondamentales de ce comportement, on a trouvé que le potentiel du couple Ti4+/Ti3+ se déplaçait vers des potentiels plus négatifs que celui du couple Ni2+/Ni sous ces conditions. Ainsi, le Ni2+ était réduit en métal Ni, oxydant le Ti3+ en Ti4+. Ceci augmentait la concentration de Ti4+, qui est critique pour la formation de la couche protectrice de TiO2. À son tour, le TiO2 rend passive la dissolution active du titane. Également, le Ni déposé catalyse la cinétique cathodique, produisant un potentiel mixte dans la région passive du titane. Ce procédé implique les systèmes de l’interface Ti/TiO2/Ni2+ et Ti/Ni2+ et le comportement du Ti/Ni2+ est plus ou moins comme un alliage de titane-nickel.

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FEATURE

WHO’S WHO

39 Golder Associates Ltd.

Whether setting records, sinking shafts or putting together major deals, the individual spirits behind this business are what make it special.

We recognize some of the people whose stories enrich the mining sphere and inspire others to take the industry as their own.

11 Hard-Line

UPFRONT

15 Klohn Crippen Berger

Details of ambitious initiatives in education and training reveal how miners keep up with the rapidly changing world.

3 Boart Longyear 27 China Mining 9 Endress + Hauser 7 FWS Group of Companies 13 GE Water & Process Technologies 20 Goldcorp Inc.

IBC L&H Industrial, Inc. 36 Oil Sands Trade Show and Conference 37 Queen’s University – Geological Sciences and Geological Engineering 25 Rousseau Metal Inc. OBC SSAB IFC Tervita 23 University of Toronto – Department of Chemical Engineering & Applied Chemistry 51 Westeel

TECHNOLOGY Innovations in

drilling and blasting

PROJECT PROFILE HudBay Minerals presses ahead with its

Constancia copper-molybdenum mine in the Andes of Peru.

77 Product File

The tailings thickener at HudBay’s Constancia project, under construction in April

June/July 2013 | 77

Courtesy of HudBay Minerals

B.I.D. Canada Ltd.

The Great Porcupine Fire: Timmins rises from the ashes

by Correy Baldwin

T

(Toronto Star/Library and Archives Canada/PA-179598)

he shores of Porcupine Pottsville, South Porcupine, Lake, in northeastern Tisdale – attracting businessOntario, were a pristine men and families. wilderness at the turn of the The railway built a spur 20th century. Early surveys had line to Golden City, though found evidence of gold, but the construction was delayed as area was too inaccessible to railway workers kept abangenerate much interest. doning their jobs for the All that changed with the riches of the gold fields. coming of the railway. In Eventually, the province sent 1903, a line was built to the a prison crew to finish the job east of Porcupine Lake, and the line reached Golden allowing prospectors to surCity in June 1911, at the vey deeper into the bush. height of the gold rush.

Construction had just begun Residents pack boats and set off on Porcupine Lake to escape the flames of the Then disaster struck. when railway workers dis- Great Porcupine Fire.

The spring of 1911 was covered silver, and the resulthot and dry, and the drought ing Cobalt Silver Rush brought even more prospectors to the continued into the summer. By July, temperatures exceeded 40 region. A few began poking around Porcupine Lake, includ- C, with no rain for weeks. On July 10, the tinder-dry forest ing Klondike veteran Reuben D’Aigle, who prospected the gave in to several small bush fires that were whipped into a area in 1906 and 1907. He found only small amounts of gold huge single blaze by strong winds the following day. though, and abandoned his tools in his last pit before leavThe fire grew, reaching 30 kilometres wide, and as it bore ing. However, this monumental misfortune would put down on the towns and mine camps, people fled, mostly into D’Aigle in the history books: mere feet from his last pit lay a Porcupine Lake, by boat. Others escaped into mine shafts, hidden gold vein that would become one of the three big dis- where they suffocated as the fire sucked the oxygen from the coveries to spark the Porcupine Gold Rush. mines. A railway car loaded with dynamite caught fire and It began in the summer of 1909, when a former railway exploded, and the shockwave sent massive waves across the worker named Jack Wilson led a party of four to Porcupine lake, tipping boats and drowning their passengers.

Lake. That June, they came across a rocky outcrop of quartz, The fire was devastating. It destroyed 200,000 hectares of flecked with gold. They trenched around it, and in one night forest. South Porcupine burned to the ground, as did Pottsville recovered 132 pounds of gold. They named the outcropping and most of Golden City. The mine camps were not spared “the Dome,” and the rich vein that it held became the Dome either. The next day, much of Cochrane, 60 kilometres away, Mine. also lay in ruin. Early fears were that thousands had perished.

News of the discovery spread quickly, and prospectors The official death toll was 73, but as many as 200 may have already in the area raced to the Porcupine. One of these was died – no one knows how many prospectors had been trapped former barber Benny Hollinger, who stumbled on D’Aigle’s in the bush. abandoned pit – and on the gold vein that D’Aigle just But the people were resilient, and the Porcupine recovered. barely missed. Hollinger and his partner staked 12 claims Even as the ground smouldered, they knew they could not and flipped a coin to split them up. Hollinger sold his claims leave – not when so much gold remained in the ground. to Noah Timmins, a businessman who had invested in Almost as quickly as the fire had destroyed, people began to Cobalt’s silver mines. Soon after, Scotsman Sandy McIntyre rebuild. Renewed interest in the region even sparked new staked four claims north of Hollinger’s and struck the McIn- industry, and soon a pulp mill was operating alongside the tyre mine. rejuvenated gold mines.

When the snow melted the next spring, the gold rush That Labour Day, Noah Timmins auctioned off building began. Thousands of people moved in, staking claims and sites at the former Hollinger mine camp, and the new village working in the mines. A string of work camps sprung up along was incorporated as Timmins on New Year’s Day 1912. Gold Porcupine Lake, as did several town sites – Golden City, mining continues there to this day. CIM 78 | CIM Magazine | Vol. 8, No. 4

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