CIM Magazine June/July 2009 by CIM-ICM Publications

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June/July â&#x20AC;˘ juin/juillet 2009

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CONTENTS CIM MAGAZINE | JUNE/JULY 2009 | JUIN/JUILLET 2009

NEWS 11

Leading from the tailing end Iron Ore Company

of Canada wins sustainability award for its innovative tailings management measures by R. Bergen Taking the pulse of the mining industry An international survey of resources sector leaders finds the mood guardedly optimistic by M. Kerawala

Centre for Welding and Joining to open in the fall The University of Alberta announces the creation

Say it for mining, say it on camera The winners

of a new research and teaching centre by M. Eisner

of the So You Think You Know Mining contest speak of their inspirations and ideas by M. Kerawala Agreement announced Centerra Gold reaches an understanding with the government of Kyrgyzstan by P. Diekmeyer

Meeting of a multiplicity of minds Leaders from the mining and finance sectors meet to bridge the gap of understanding between their worlds by M. Paduada

11 UPFRONT 18

A cartographer with a difference Robots, LIDAR and gyroscopes come together in the next generation of mine mapping solutions by P. Caulfield Leaving no rock unturned PDAC workshop exposes geoscientists-in-training to a broad spectrum of real-life challenges by B. Dalglish From the mine site to Mars and back The possibilities at the interface of mining and space exploration are virtually limitless by M. Paduada No smoke for this fire Clean-burning incinerators are helping minimize the impact of waste disposal at mine sites by M. Eisner

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

COLUMNS 43 44 45 46 48 49 50 51 82

SUPPLY CHAIN LA CHAÎNE D’APPROVISIONNEMENT 26

It’s time to talk about the relationship Future growth will depend on strengthening bonds along the supply chain now by R. Bergen Uptime Close coordination and streamlining can reduce maintenance costs and minimize downtime by J. Reyes-

CIM NEWS 54

On the comeback Trail CIM Trail Branch

CIM Montreal Branch gets energized

hosts its kick-off meeting by K. Heale

Picknell

Parlons de la relation La future croissance sera fonction du resserrement des liens tout le long de la chaîne d’approvisionnement dès maintenant

Eye on Business by B.D Sells & C. Higgins HR Outlook by M. Sturk Supply Side by J. Baird MAC Economic Commentary by P. Stothart Innovation by M. Scoble Student Life by S.D. Craggs Safety by R. Bergen Mining Lore by R. Bergen Voices by D. Allan

CIM Distinguished Lecturer Gord Winkel speaks on innovation by R. Pillo

26 36

La Section Montréal connaît un renouveau d’énergie L’éminent conférencier de

l’ICM Gord Winkel parle sur l’innovation Standardizing standards CIM Distinguished Lecturer Clifford Stanley is passionate about raising the bar by R. Pillo

Where everybody knows your name

58 60

CIM’s Newfoundland Branch is among its most active and friendly by R. Pillo A force of nature A conversation with CIM past president René Dufour by R. Pillo CIM Conference and Exhibition 2009 A round-up of key events at this year’s conference and trade show by M. Kerawala COM 2009 The Conference of Metallurgists preliminary program

HISTORY 70 73

Butte, Montana (Part 3) by R.J. Cathro The Canadian gold rush by F. Habashi

TECHNICAL SECTION 75

This month’s contents

IN EVERY ISSUE FEATURED MINE

6 8 10 53 54 59 81

MINE EN VEDETTE 36

Big and getting bigger Taseko Mines ramps up the expansion of its Gibraltar project on time and on budget by D. Zlotnikov

De plus en plus gros Taseko Mines intensifie l’expansion de son projet Gibraltar en respectant l’échéancier et le budget

Preliminary program of the 2009

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

Conference of Metallurgists June/July 2009 | 5

“Change is the only constant.” ~ Ancient proverb

am excited to welcome Angela Gordon as the new editor-in-chief of CIM Magazine. She brings a wealth of experience and editorial excellence to our team, as you’ve witnessed over the past year as she drove new-content developments and improvements to the overall quality of the magazine. Please don’t hesitate to contact Angela with your thoughts and ideas as she focuses on future innovations to continue the evolvement of our flagship publication. I’d also like to thank everyone — all our outstanding volunteers, partners and, most of all, the CIM membership for the past few exciting years I’ve enjoyed. I’ve worked with CIM for 13 years now, and it’s been my greatest learning experience, not to mention a fantastic environment to be a part of. Through CIM I’ve met fabulous people — mentors, colleagues and friends. At the end of this month, I’m moving on to a new stage in my career, but I absolutely hope to continue my long-standing relationship with CIM. A special thanks to the amazing staff who are at the centre of CIM’s continued success. I feel lucky to have been a part of the team. I came to CIM without an inkling of what the minerals industry represents. I’m moving on with the greatest appreciation for this industry and the folks who continue to set the bar so high, making mining a standard for others to live up to.

Heather Ednie hen we developed the 2009 magazine lineup a year ago, we anticipated that the the editorial for this “supply chain” issue would centre on how suppliers and operators were managing the unprecedented demand. Of course, a very different story has emerged, but one whose significance may be even more far-reaching. It’s a fact of life that sometimes it takes a “rough patch” to sufficiently clear our vision to enable a closer look at where we’ve been and where we want to go. In the feature article, “It’s time to talk about the relationship” (no, it’s not an excerpt from an episode of Dr. Phil), writer Ryan Bergen discovered how suppliers are taking advantage of this slowdown to reevaluate how they do business, and especially how they interact with customers. The revised business practices and stronger relationships being developed today will undoubtedly be welcome when the solidity of the supply chain is once again tested by the increased demand that is widely forecast. There have also been some changes here at CIM Magazine. First, we welcome Michael Allan, the new CIM president, whose inaugural letter on the theme of renewal can be found on page eight. We also recently launched a digital, easy-to-use flip version of CIM Magazine, available online at cim.dgtlpub.com. Finally, I am thrilled to be taking on the role of editor-in-chief. The past eighteen months that I served as senior editor have been incredibly exciting and rewarding, enhanced by the opportunity to work with such a talented and dedicated editorial team and national office staff. Foremost, I would like to thank Heather for her guidance, trust and enthusiastic openness to new ideas. She leaves very big shoes to fill, indeed. It was under her stewardship that the vision for CIM Magazine’s transformation from the CIM Bulletin began some years ago. The magazine’s current success serves as a testament to her talent and foresight. I look forward to the journey that lies ahead and would like to remind you that an important part of the evolution of the magazine comes from the feedback — be it positive or otherwise — that we receive from you. So please be encouraged to weighin on your thoughts and opinions.

Angela Gordon Editor-in-chief 6 | CIM Magazine | Vol. 4, No. 3

Editor-in-chief Angela Gordon agordon@cim.org Section Editors News, Upfront and Features: Angela Gordon agordon@cim.org Columns and CIM News: Joan Tomiuk jtomiuk@cim.org Histories and Technical Section: Minaz Kerawala mkerawala@cim.org Technical Editor Joan Tomiuk Publisher CIM Contributors Dan Allan, Jon Baird, Ryan Bergen, Louise Blais-Leroux, R.J. Cathro, Peter Caulfield, Simon David Craggs, Brenda Dalglish, Peter Diekmeyer, Marlene Eisner, Fathi Habashi, Kris Heale, Chuck Higgins, Mike Paduada, Robbie Pillo, James Reyes-Picknell, Malcolm Scoble, Berkley D. Sells, Paul Stothart, Melanie Sturk, Dan Zlotnikov Published 8 times a year by CIM 855 - 3400 de Maisonneuve Blvd. West Montreal, QC, H3Z 3B8 Tel.: 514.939.2710; Fax: 514.939.2714 www.cim.org; Email: magazine@cim.org Subscriptions Included in CIM membership ($150.00); Non-members (Canada), $168.00/yr (GST included; Quebec residents add $12.60 PST; NB, NF and NS residents add $20.80 HST); U.S. and other countries, US$180.00/yr; Single copies, $25.00. Advertising Sales Dovetail Communications Inc. 30 East Beaver Creek Rd., Ste. 202 Richmond Hill, Ontario L4B 1J2 Tel.: 905.886.6640; Fax: 905.886.6615 www.dvtail.com National Account Executives 905.886.6641 Joe Crofts jcrofts@dvtail.com ext. 310 Janet Jeffery jjeffery@dvtail.com ext. 329

This month’s cover “Application know-how” Photograph courtesy of Sandvik Layout and design by Clò Communications. Copyright©2009. All rights reserved. ISSN 1718-4177. Publications Mail No. 09786. Postage paid at CPA Saint-Laurent, QC. Dépôt légal: Bibliothèque nationale du Québec. The Institute, as a body, is not responsible for statements made or opinions advanced either in articles or in any discussion appearing in its publications.

Printed in Canada

president’s notes A time of renewal This opportunity to communicate regularly with members gives me great pleasure, as I begin my term as CIM president. My predecessor, Jim Gowans has set the bar very high and I would like to acknowledge his hard work and dedication. Jim headed CIM during a year in which he also served as president of the Mining Association of Canada — a workload I do not envy. Throughout my 35-year career, I have been active in CIM at the branch and national levels. My last involvement with CIM Council, however, goes back almost 10 years. Last year, re-acquainting myself with the Council, I was struck by the extent of its rejuvenation over the past decade. During that time, CIM’s leadership in educating the general public about our industry has been commendable. For instance, this year, the Mining in Society initiative at the CIM Conference and Exhibition in Toronto attracted a record 6,725 students. For me, CIM has always been about knowledge sharing and networking. Whenever I needed help with solving a problem or simply doing my job better, I counted on connections I had made through CIM. Our work in providing standard resource and reserve definitions that are used by the country’s securities regulators is an example of the ongoing technical contributions CIM makes to the industry at large.

However, we still have some challenges to confront in the coming year. Foremost, we need to recruit more of the younger industry members. To do this, we must demonstrate the value inherent in belonging to CIM. Although the benefits are obvious to many of us, judging from my conversations with younger colleagues, I am convinced that some work remains to be done in this regard. I was tremendously encouraged by a recent visit to CIM’s Trail Branch, which is being reactivated after years of dormancy and where the younger generation is well represented on the executive. These promising signs of renewal could not be more timely. By tapping into the CIM network, let us all work together to convey the benefits of belonging to this incredible organization.

Michael J. Allan CIM President

Un temps de renouveau Je me réjouis beaucoup à l’idée de pouvoir communiquer de manière régulière avec les membres de l’ICM, alors que je commence mon mandat de président de l’ICM. Mon prédécesseur, Jim Gowans, a placé la barre très haute; je voudrais profiter de cette tribune pour reconnaître son travail acharné et son engagement. Il a été à la tête de l’ICM durant une année alors qu’il était aussi président de l’Association minière du Canada; il avait donc une charge de travail que je n’envie pas. Tout au cours de ma carrière de 35 ans, j’ai été actif au sein de l’ICM, tant à l’échelle nationale qu’à celle des sections. Ma plus récente implication avec le Conseil de l’ICM remonte toutefois à près d’une dizaine d’années. L’an dernier, en renouvelant mes contacts avec le Conseil, j’ai été surpris de l’ampleur du rajeunissement au cours de la dernière décennie. Durant cette période, le leadership de l’ICM à éduquer le grand public sur notre industrie a été digne de mention. Par exemple, cette année, l’activité Les mines dans la société, dans le cadre du Congrès et Salon commercial à Toronto, a attiré un nombre record de 6 725 étudiants. En ce qui me concerne, l’ICM a toujours représenté le partage de connaissances et le réseautage. Lorsque j’ai besoin d’aide pour solutionner un problème ou simplement pour améliorer mon travail, je peux compter sur des contacts étab-

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

lis par l’entremise de l’ICM. Notre travail à fournir des définitions normalisées pour les ressources et les réserves, utilisées par les organismes de réglementation du commerce des valeurs mobilières du pays, est un bon exemple des contributions techniques que l’ICM fournit à l’industrie en général. Toutefois, nous avons encore des défis à relever dans la prochaine année. Nous devons aussi recruter encore plus de jeunes membres provenant de l’industrie. Pour ce faire, nous devons démontrer la valeur intrinsèque d’appartenir à l’ICM. Bien que les avantages soient évidents pour plusieurs d’entre nous, à en juger par mes conversations avec des collègues plus jeunes, je suis convaincu qu’il reste du travail à effectuer à cet égard. J’ai été très encouragé par ma récente visite à la Section de Trail. Cette section est en voie de réactivation après plusieurs années d’inactivité et la jeune génération est bien représentée au sein de l’exécutif. Ces signes prometteurs de renouveau ne pourraient pas arriver à un meilleur moment. Branchons-nous au réseau de l’ICM et travaillons tous ensemble à véhiculer les avantages d’appartenir à cet organisme incroyable. Michael J. Allan Président de l’ICM

letters Close connections Reflections from a CIM Fifty-Year Club member

Maurice and Mona Hinton at the CIM Awards Gala

The following letter was sent to CIM by Maurice Hinton, recent recipient of his Fifty-Year Club pin. In it he expresses what being a member of CIM means to him. After first attending a CIM field trip at Aguathuna, Newfoundland, in 1959, I was so impressed by the group that I became a member and still remain one to this day. There is more than just a little personal satisfaction in becoming a member of the CIM Fifty-Year Club. The Institute is 111 years old this year and is going strong. It represents this wonderfully fascinating, multi-faceted, essential, ancient and very necessary element of human existence. The products of this industry are largely taken for granted by huge segments of society. Often, the industry is reviled as a bunch of careless polluters of the natural environment, running roughshod over any and all that happen to be opposed to mining activity. Nothing could be farther from the truth! By and large, the folks who populate the mining industry are very aware of their surroundings and are as sensitive to the wonders of nature as all other naturalists. In short, we love the wonders of nature. That said, there have been some members of the industry who have not been the good stewards of the environment that the majority are. However, they are the exception, not the rule. My own experience in the mining industry ranges from exploration to development to production and in most jurisdictions in this vast country of Canada, with the exception of P.E.I., Nova Scotia and Yukon. Most of these were with smaller operations, but in all cases except one, the operators were responsible corporate citizens who were acutely aware of their responsibility to the society they would impact and the nature of the countryside they were about to alter. This of course minimized the so-called “footprint,” which is always a priority. The reality of cyclical commodity demand was always taken into consideration as well. Methods for mitigating this phenomenon have been and will continue to be part of the evolution of responsible prosecution of the industry. As far as CIM is concerned, I believe it is part of the industry’s evolution. CIM has so profoundly affected my own career that the human contacts made through it are as lasting as those of family connections. Long may it continue. CIM Maurice Hinton, FCIM Edmonton, Alberta

news Leading from the tailing end Iron Ore Company of Canada earns sustainable development award By Ryan Bergen hectare area affected by what is now nearly 50 years of ore production, transforming parcels of land into diverse and productive habitats. IOC’s earth movers have sculpted hills, lagoons and islands across the area. The tailings were primed with hay and manure to support vegetation. After a couple of years, when the soil was ready, tractors sowed seeds to encourage plant life and minimize dust lift-off. Knowledge of what would and would not grow was hard won, commented Lauziere. As part of the closure management process, trials and errors on test plots began in the 1990s. The lessons from these trials were then applied to the project. The formalized tailings management process began in 1999 with public consultation and the input of various stakeholders and governmental bodies in response to revised metal IOC introduced the wetlands education and awareness program to the grade four class of the mining effluent regulations. Labrador City Elementary school. IOC devised a plan to use the topography of Reclamation efforts reward the diligent and the patient. the lake along with a flocculation process to curtail the Payoff for such projects can take years, often generations, as effects of suspended tailings. The tailings discharge was connative plants and animals slowly recolonize rehabilitated solidated at one point and a polymer was mixed with the areas. By these standards, results of the innovation at Iron effluent, allowing it to coagulate and sink to the bottom of a Ore Company of Canada’s (IOC) operation in western naturally occurring trench in Wabush Lake. Lauziere said Labrador have been swift. Last spring, the water of Wabush the combination of the trench and the flocculant formed a Lake was a rusted red, coloured by the fine iron-stained “virtual dyke” that will contain the tailings produced over quartz tailings created by the ore processing; this year it is the rest of the approximately 30-year projected mine life. blue. The tailings treatment plant put into service last fall Environmental modelling of the project’s future outcomes restored the lake to its traditional hue in short order. continues with help from Laval University and the University It is apt, then, that IOC should receive the CIM/Syncrude of Illinois. Along with the development of the flocculation Award for Excellence in Sustainable Development for 2008. project, various habitat rehabilitation schemes were started. The award honours those whose work successfully com- Nesting boxes for goldeneye ducks and osprey platforms bines and balances economic and social development as well have been installed to encourage biodiversity. A fish ladder as environmental protection. The nominations are vetted by now connects Wabush Lake to other lakes upstream. CIM and handed over to a selection committee comprised of Even before the flocculation plant was set to work, the members uninvolved in the nomination process. While the reclamation project earned recognition for its restoration of award recognized a specific achievement, those involved in waterfowl and migratory bird habitat. Perhaps a more IOC’s reclamation efforts value it as something other than impressive testament to IOC’s diligence in restoring the area applause for their dramatic final act. is the humble project Lauziere terms “small mammal reloca“It feels good, because it is the recognition of a long jour- tion.” In and around the operation that turns out up to 18 ney,” said Patrick Lauziere, IOC’s manager of environment million tons of iron ore each year, mice are trapped and and sustainable development. “We’ve been investing a lot of turned out into the newly established grasslands. energy and capital in that project. It’s the result of 10 years While the results may not be visible from space — as of research and development with the involvement of is the lake — it is an equally vital example of the work researchers, consultants, engineering firms and biologists.” being done. CIM Over the last decade, IOC has been addressing the problem of advancing tailings, by gradually reshaping the 540- www.ironore.ca June/July 2009 | 11

news Taking the pulse of the mining industry A Bedford Group survey finds cautious optimism among industry leaders around the world By Minaz Kerawala Much is said about the impact of the current economic downturn and the expectation or hope that the slump will not be sustained. However, until recently, assessments of economic conditions within the mining industry remained largely informal and even vague. To put things on a firmer footing and to generate actionable data, the Toronto-based Bedford Consulting Group recently conducted a scientific survey of mining industry executives around the world. Bedford, a leading mining industry executive search and recruitment firm, surveyed 130 “C-level” executives (CEOs, COOs, etc.) from small and large mining companies in Canada, the United States, Latin America, Europe, Russia, North Africa, the Middle East, India, the Asia Pacific region and Australia. Findings from the survey are broadly encouraging. Despite depressed prices and scarce credit, 47 per cent of the respondents expressed optimism about 2009. Even the less optimistic, who account for 45 per cent of the respondents, expect to see better conditions no later than the fourth quarter of 2010. Only nine per cent anticipate a deep recession likely to last well beyond 2010. Eighty-four per cent of respondents expect the gold sector to lead the recovery. The survey identified four factors impeding the industry’s recovery. They are: lack of available credit (84 per cent); declining metals markets (83 per cent); commodities volatility (81 per cent); and paucity of investment financing (72 per cent). Enhanced credit flow and new infrastructure projects were identified as the top potential stimulants by 89 and 54 per cent of the respondents, respectively. 12 | CIM Magazine | Vol. 4, No. 4

Given current economic realities, 92 per cent anticipate capital project delays and 72 per cent expect shutdowns. Consolidation among juniors and major asset sales are foreseen by 59 and 43 per cent, respectively. Retaining employees (25 per cent), developing leadership (54 per cent) and partnering with educational institutions (64 per cent) were listed among favoured recovery tactics. The good news is that most respondents expect to see resurgence in the job market for middle and entry-level skilled professionals. Some of the trends the survey turned up were illuminative. “The smaller, developing companies are faced with financing challenges, whereas the larger companies are more focused on managing their balance sheets and reducing costs,” reported Russ Buckland, managing partner, Bedford Group. Another thing he noticed was that “the mood is shifting from the pessimism and concern of last year. Now, people are starting to feel more optimistic.” Buckland’s take-away from the survey is both positive and pre-emptive. “Compared to other industries, like the manufacturing sector in Ontario, the mining sector is more optimistic. Miners are, by nature, optimistic

people. Our clients are already beginning to think about planning for the rebound, trying to address challenges like skills shortages,” he reported, adding that companies need to plan for better times right now. Armed with the data, Buckland said, “We have responded to all the participants. We will hold a round table in camera meeting with the participating companies here in Toronto.” By bringing senior executives together, Buckland added, Bedford intends to “provide them with an opportunity to share their ideas. That will be our initial followup.” Buckland did have some advice for the industry. “As things begin to move forward, companies need to think more innovatively about their recruitment strategies,” he said. “For example there is a very well-trained talent pool in India,” adding that it was one of the reasons why Indian executives were surveyed. “Our government is going to have to do a better job of reducing barriers to the quick entry of professionals into the country to fulfil demand. We are going to need people all the way from drillers to technical people to senior leaders. There is no question in my mind.” CIM www.bedfordgroup.com

Achievements Rescan Environmental Services Ltd. was selected as one of Canada’s Greenest Employers by the editors of Canada’s Top 100 Employers project, who each year list organizations that “are more flexible, waste less and attract similar-minded employees and clients, making them more likely to succeed when resources become scarce.” Rescan made the list this year because of its Green Rebate Program that provides a 25 per cent reimbursement on select environmentally friendly purchases. The company also provides employees with a rebate to supplement those offered provincially and federally towards purchasing a hybrid vehicle.

news Centre for Welding and Joining to open in the fall University of Alberta names chair of new centre By Marlene Eisner Dr. Patricio F. Mendez has been named the Weldco/Industry chair at the newly created Canadian Centre for Welding and Joining, set to open in the fall at the University of Alberta’s faculty of engineering’s chemical and materials engineering department. Mendez will also serve as the centre’s director. “This program will involve faculty in all five engineering departments at the University,” said Mendez. “Eleven companies are part of the endowment for the chaired welding position. We are developing a curriculum for a focus on welding at the BS and MS/MEng level and should be teaching one or two welding courses per semester. Among our areas of interest are welding technologies for heavy equipment used in mining operations.” Research conducted at the centre will focus on productivity, weldability, automation and performance. Other studies will include new processes, materials and technologies; difficult-to-weld materials such as aged and embrittled alloys; and non-destructive testing, corrosion and fracture. Alongside collaborative research and dissemination of knowledge, the centre will also place emphasis on the education and training of welding engineers and area experts. Engaging industry partners, students, educators, and welding practitioners through lecture, seminar, or symposium opportunities will further enhance collaboration between the centre and its stakeholders. One challenge facing the directors of the new centre will be to determine in which fields of welding to initially specialize. “It’s all about trying to find where the needs are,” said Mendez, referring both to the needs of the students attempting to further

their educations and the needs of the welding industry at large that will be putting these graduates to work. “We aim at revolutionizing welding at the application level. This involves new technologies, as well as quality, productivity, cost, safety and environmental improvements in existing technologies.” Lead sponsor, Weldco Companies commented that the new centre, which will be the first and only one in Canada, is a good idea whose time has come. “When I heard about it, I felt it was something we were overdue for in this province and the country as a whole,” said Doug Schindel, president of Weldco. “It’s a plus not only for mining but for all industries that use welding.”

Schindel said that the field of welding that has not changed significantly in the last 25 years, and all industries, including mining, will benefit from improved performance and productivity as more research into the field produces enhanced automation and cleaner methods for welding. “We’re not nearly as efficient as we could be with our welding operations,” he commented, “and the research and information coming out of the centre will go a long way to improving our productivity, from ensuring a better environment to discovering more practical applications.” CIM www.ualberta.ca Peter Kiewit Sons Co.

4333 Grande-Allee Boisbriand (Quebec) J7H 1M7 450 435-5756 450 435-6764 fax kiewit.ca

MINING THE NORTH Integrity - Innovation - Performance

June/July 2009 | 13

news Say it for mining, say it on camera Creativity and vision are feted at the SYTYKM contest awards By Minaz Kerawala Seeking to get young people interested in the John and my sister Sharon. Furthermore, I owe mining industry, the Ontario Mining Association thanks to my parents for tolerating the crazy pro(OMA) conducted a high school video contest ductions I put together and for being accommodatcalled So You Think You Know Mining (SYTYKM). ing enough to let me build sets in their backyard, Participants were asked to represent the benefits garage and even their living room.” of mining through short, two- to threeThe $2,500 award for Best Directing went to minute films. In addition to getting them Brad Jennings of Holy Cross Catholic Secondary to think of the industry’s social, ecoSchool, Strathroy, Ontario. A chip off the old nomic and technological benefits, the block, Jennings said, “I have always contest aimed to help contestants liked video work. It’s a passion of develop script-writing, editing, direcmine. My dad’s in the business too; tion and production skills. he’s a cameraman.” Jennings’ entry, The popular contest culminated in Let’s Talk Mining, would certainly a grand awards ceremony at CIM’s do his dad proud. Conceived, proMining in Society show on May 10, duced, directed and edited entirely Keith Laplume with the trusty camcorder that won him $5,000 2009. The top prize of $5,000 for the by Jennings, the video, inspired by Best Overall Video was bagged by the Rick Mercer Report, offers a 17-year-old Keith Laplume of St. Peter’s Secondary news report-style overview of the many benefits of mining. School, Barrie, Ontario. Laplume, who proudly identifies Jennings thanked his teachers Mr. Mrnik and Mr. Bawa for himself as, “a veteran of many video contests,” is no their support and encouragement. stranger to award-winning film production. “I won an Three other $2,500 awards were given for Best Original Ontario-wide Workplace Safety and Insurance Board Screenplay, Best Original Score and Best Comedy. They video contest last year, and placed second in an anti- were won by Meaghan Butler of the South Secondary smoking video contest for my local health unit. This past School, London; DJ Nichol of H.B. Secondary School, December, a short-film I made won me awards for Best London; and Jeremy Kozelj of St. Paul Secondary School, Director and Best Picture in my school’s film festival,” Mississauga, respectively. CIM Laplume reported. Laplume’s entry, A Rock Solid Look at Mining, starred To view the winning videos visit his siblings, John and Sharon, and was made with the http://www.oma.on.ca/contest/ Inspiration.aspx help of his friend Timothy. Featuring the sort of edgy music, dramatic titling and fast cuts that are the staple of big-budget action movies, the video was also edited by Laplume. Recalling the production process, Laplume said, “My entire video was accomplished using my camcorder and home computer. With free open source video software, more people than ever can create stunning visuals. This is not to say that creating lowbudget productions is easy, but rather to acknowledge that with some hard work and imagination, one can accomplish one’s vision.” In keeping with the tradition of all awardwinning filmmakers, the young visionary added, “I would like to acknowledge the efforts of my associate producer, Timothy Armstrong, and the acting skills of my brother Best director Brad Jennings strikes a pose. 14 | CIM Magazine | Vol. 4, No. 4

news Agreement announced Centerra deal sets stage for further development in Kyrgyzstan By Peter Diekmeyer Centerra Gold put to rest close to a year’s worth of uncertainly late last May when it announced that it had reached agreement with the Kyrgyz government regarding outstanding issues related to the massive Kumtor Project. The new deal, which includes provisions related to taxation, the expansion of the company’s existing concession area and the level of the Kyrgyz government’s stake in the overall project, replaces an earlier arrangement, which the Kyrgyz parliament refused to ratify. According to Centerra Gold executives, among the agreement’s key benefits was the certainty that it provided regarding conditions under which

existing operations as well as future exploration and development would take place. “There is significant potential for reserve expansion at the site,” Stephen Lang, the company’s president and COO told a group of Montreal investors, a few days after the agreement was announced. “However the lack of a conclusive settlement was slowing things down.” According to Lang, one feature of the new deal that sets it apart from many similar agreements is the scale of moneys that will be channelled back into the local economy. The new simplified 14 per cent tax rate,

which will be levied on total mine revenues, includes a one per cent monthly contribution to the local Issyk-Kul Oblast Development Fund. “Adjoining communities often get left out in these types of developments,” said Lang. “So this agreement is somewhat unique in that regard.” The Kumtor Project, one of the world’s largest gold developments, has been producing close to 600,000 ounces per year since 1997. However, the fact that a finalized framework agreement was only recently concluded and ratified signals the importance of effective government relations by gold developers. CIM

Moving on up Vancouver-based Rusoro Mining appointed Roman Amosov to the position of COO and Dmitry Ushakov to the position of vice president corporate development. Amosov, a mining engineer, has extensive experience in project management, technical auditing, operations, fleet maintenance, and environmental impact and feasibility studies at various gold projects in Latin America and the former Soviet Union. Ushakov is the director general of Interros Holding Company, a major Russian private investment company which operates throughout Russia, Europe, Asia, and North America and that has significant holdings in Norilsk Nickel and Polyus Gold. He has also chaired the board of Sidanco Oil. Marie Inkster has been appointed to the position of CFO at Lundin Mining Corporation. Inkster, who joined Lundin as vice president, finance in September 2008, is a chartered accountant who spent five years in public accounting with Deloitte. She also spent five years at LionOre Mining International, serving as the company’s vice president, controller at the time of its acquisition by Norilsk Nickel in 2007. In her new role, Inkster will rely on her experience in public and private equity and debt fundraising, corporate transactions and public company reporting. June/July 2009 | 15

news Meeting of a multiplicity of minds Mining Management Finance Day brings together financial and mining elite By Mike Paduada An impressive assembly of high-profile leaders from the fields of mining, banking, law and business came together recently at the 2009 CIM Conference and Exhibition in Toronto to address the challenges and opportunities posed by the current economic environment. The Mining Finance and Management Day — a first for the conference — consisted of a full-day series of presentations held on the last day of the technical program. “The session was driven by the inherent interest in bridging the information gap that has been silently growing between technical and financial professionals in both the mining and fiscal sectors,” explained Thomas Rannelli, senior mining engineer, BMO Capital Markets and 2009 CIM conference chair. ”The necessity for dialogue has become even more apparent during these challenging economic times. The session was designed to bring forward real opinions and candid dialogue, with meaningful mentorship by our respective industry leaders as the underlining objective.” Overall, the day served up an interesting and balanced mix of market data, observations, predictions and advice.

By the numbers As was to be expected, attendees were interested in the numbers, both historic and projected. And they were not disappointed as the bankers came well-equipped with data. Gavin Graham, director of investments, BMO Asset Management, compared the current economic state to previous economic cycles, highlighting conditions around all the bear markets since the Great Depression. “We’ve actually had the worst bear market since the Great Depression,” observed Graham, “but that’s as bad as it gets…unless, of course, it’s Great Depression two. Now we’re up 35 per cent, which is the mean immediate return after a bear market. In the 12 months following a bear market, you get substantial positive double-digit returns. If you lose that much, you’re going to at least get a pretty decent rebound.” For more current data, Elizabeth Wademan, director equity capital markets, mining, BMO Capital Markets, indicated that the VIX (Volatility Index) on the Chicago Board 16 | CIM Magazine | Vol. 4, No. 4

Options Exchange is off its peak but still quite a bit above historic ranges. Accordingly, she postulated that we should continue to see nearterm volatility in the market, characterized occasionally by large rallies and declines. On forecasts, Wademan said, “I don’t have a crystal ball, but I do have an economics department.” She shared their current outlook, cautioning that it was subject to change. “We’re seeing four to five quarters of contraction, with recovery emerging in late 2009 and 2010 in Canada and the U.S. respectively.” For those attendees with a voracious appetite for numbers, David Gavin Graham Davidson, a partner at Paradigm Capital Inc., provided a wealth of data that outlined the trends and outlook for metals and minerals. “We will likely go through some summer volatility and a downturn in metal prices,” predicted Davidson. “Nevertheless, I think the stage is set for a spectacular fall and spring 2010 for all commodities.” However, he foresees that some commodities will see more upward movement than others. “Some are capped because there is production that has been built out,” he explained. “Nickel is a good example. On the copper side, we didn’t build all these big $4 billion dollar projects in Panama and Chile. So, I think the future looks pretty promising for copper.”

Dealing with uncertainty Amid the abundance of numbers, statistics and graphs conveying the details of things we’ve seen and things to come, several broader themes emerged: dealing with uncertainty, turning challenges into opportunities and reasons for being optimistic. Kim Goheen, senior vice president and CFO, Cameco Corporation, had some sage advice for dealing with uncertainty. He commented that Cameco’s prudent approach to projects, ventures and acquisitions — once criticized as being overly conservative — had left the company well-positioned to act smartly on the opportunities that have arisen as asset prices have fallen. “Our solid revenue base, our strong customer relationships and our excellent uranium reserves are built for the long term and have recognized value even in the tough economic market,” he said. Goheen explained that the

news key is to know your risk tolerance and act accordingly. “My risk tolerance may be relatively low compared to others, but I’m okay with that, and so are Cameco’s investors,” he said. “We won’t overextend. But, if the right deal is there, we also won’t be afraid to raise new money, however much it takes.” Banks are also understandably concerned about managing uncertainty in their debt financing activities, attested David Konarek, managing director and industry head, corporate banking, global mining with Scotia Capital. Konarek commented that lending remains constrained, though most of the issues are general market issues and not specifically mining-related. The implications for the mining industry, as he indicated through a mock financing example, are that loan sizes have decreased, the terms of loans tend to be shorter, pricing over LIBOR (London Interbank Offer Rate: an interest rate benchmark) has increased, and the syndication and underwriting terms have changed.

Opportunity knocking Though uncertainty may make some uncomfortable, several of the presenters highlighted that it is possible to change uncertainties into opportunities, with the right approach. It is precisely because of this uncertain market environment that particular merger and acquisition opportunities exist, as Cam Mingay, senior securities partner at Cassels, Brock & Blackwell LLP described in his presentation. According to Mingay, companies with the mettle for long-term horizons have some great buying opportunities. He cited a recent statment by a spokesperson for Petro China, the world’s second largest company by market value. “China has been taking advantage of low commodity prices for such industry essentials as copper, iron and oil to bolster reservers,” quoted Mingay. Mingay also indicated that shareholder activism is on the rise as institutional investors are realizing that shareholder activism can unlock value and is less expensive than acquiring the shares of a company to gain control. This market environment also offers them the perfect opportunity to express their displeasure at underperforming management teams. Emboldened shareholders and boards of directors also have an opportunity to reshape their executive management teams, corporate governance practices and compensation practices. Michael Hlinka, a business commentator on CBC Radio, advised boards to better align their compensation timelines and option vesting schedules with that of the company’s actual performance, adding that they should do proper due diligence when selecting top executives.

Reasons for optimism Managing uncertain times with bold confidence is certainly much easier said than done. Luckily, the presenters provided optimistic information and views to help carry the mining industry through the current storm. Graham drew attention to the yield curve to show that the economy should be moving up. He spoke positively about continued long-run demand for commodities in China and India. Tom King, a partner in the Toronto office of KPMG LLP, described how countries like Mongolia and Tanzania are seeking to structure their tax regimes to attract mining companies and develop the sustainable sharing of economic wealth. In spite of economic woes, the fact-filled and insightful day appeared to leave attendees feeling satisfied. The interactive panel forum drew copious questions and comments from the crowd, who, like the panel, were representative of a wide variety of disciplines. If two heads are better than one, then hopefully, a meeting of a multiplicity of minds can serve as the first step to a greater mutual understanding of the important intersection of the worlds of finance and mining. CIM June/July 2009 | 17 Untitled-1 1

5/27/09 9:16 AM

upfront TECHNOLOGY by Peter Caulfield

A cartographer with a difference A Sudbury-based company develops a robotic system to create 3D maps of mine tunnels

Photo courtesy of Penguin Automated Systems Inc.

The data collected by RoboMap is stored in onboard hard drives and transferred to an engineering office via memory storage systems, or directly, by wireless networks. They can be exported to all popular formats for display in viewers and CAD systems. With a self-contained inertial navigation system, RoboMap is self-powered and can run for over ten hours on a single charge from the mains or a vehicle battery. Its laser scanner has an eightmetre range and can perform 180 scans per second, with 180 samples in each sectional scan. It can scan tunnels up to 16 metres wide and eight metres high. RoboMap also provides such post-processing features as volume approximation and point-to-point distance calculation. In addition to surveying mine tunnels, it can also map other underground passages, such as sewer tunnels and access strips. “RoboMap can be used anywhere that a GPS (global positioning system) doesn’t work,” Baiden said, adding, “A GPS signal can’t be transmitted through rock, brick, concrete or glass. LIDAR, working in sync with gyroscopes, is a fundamentally different technology.” According to Baiden, RoboMap is the first known application to use gyroscopes and LIDAR together.

RoboMap was used at Vale Inco’s North Mine

heodolites, altimeters and even GPS instruments may soon disappear from mine surveyors’ kits. If the latest innovation by a research and development company in Sudbury, Ontario, gains ground, the traditional ways of surveying and mapping could well be rendered “old school.” Penguin Automated Systems Inc. has developed a topographic mapping system that uses the latest robotic technology to create three-dimensional maps of underground mine tunnels and transfer the data to engineering CAD systems. RoboMap, as the system is called, not only does all this, but also does it more accurately and quickly than conventional methods. According to Greg Baiden, chief technical officer of Penguin Automated Systems Inc., “RoboMap is a significant advance in tunnel profiling technology that can measure tunnel surface roughness, tunnel roadbed quality, ventilation systems and tunnel ground support quality.”

How RoboMap works The RoboMap system consists of a battery-operated robot that is run by an operator using a hand-held wireless remote. RoboMap combines gyroscopes and LIDAR (Light Detection and Ranging — an optical remote sensing technology) to gather sectional scans of mining tunnels, as well as position and altitude data. 18 | CIM Magazine | Vol. 4, No. 4

Tomorrow’s technology today at North Mine Despite its futuristic-sounding moniker, RoboMap has already been used successfully at Vale Inco’s North Mine nickel operation in Sudbury, Ontario. Colin Flett, former Vale Inco senior evaluation engineer, said that the technology was used several years ago “to verify or to make proactive changes to maximize results.” Investigating the North Mine in 2003, Flett’s team discovered that a survey station near a shaft had been shot incorrectly 15 years previously. “By the time we drove out the 3,000 feet and started tying in to other levels, we knew we were about seven feet off,” he said. “The RoboMap system found the error and we were quickly able to see where the error had occurred and where the survey differed from

upfront TECHNOLOGY

the RoboMap results. We went back to the records and saw that a calculation error had in fact been made.” RoboMap also ferreted out another calculation error at the North Mine. “A drift from the mine was supposed to meet another from the South Mine, thereby joining the two mines,” Flett recalled. “But about 500 feet from the point where they were projected to meet, RoboMap predicted that they would miss each other by six feet laterally.” Subsequent surveying of the two mines confirmed the lateral error that RoboMap had detected. Experience has certainly made Flett a believer in RoboMap. “Anything that allows a more accurate survey will inevitably reduce rework for the operator,” he said. “With surveys by RoboMap, you won’t have the problem with drifts that don’t meet and that then require slash-andtrim work to make them join up.” In the pre-RoboMap past, when it was discovered that a mine level was not in the correct location, level-to-level drill holes required a degree of reverse engineering to allow for the discrepancy. “It was only after a number of unsuccessful attempts that a correction was made,” Flett explained. Another reason for his advocacy of RoboMap relates to the fact that check surveys over a long distance in high traffic areas are difficult to organize. “This is particularly the case in a 24/7 environment where production would be affected,” added Flett.

operator can access real-time video and audio feedback; engineering, maintenance and cost-control data; and status reports on other robotic machines on the network. “Mining, construction, underwater and on-surface equipment can all be teleoperated,” Baiden explained, adding that additional segments of the work cycle will be automated through artificial intelligence systems as technology advances. “As more advanced systems are adopted, the human-machine interface in the work cycle will be reduced, which will lead to additional productivity gains and cost savings,” he added. In addition to Vale Inco, Rio Tinto and LKAB are currently using teleoperation technologies in some aspects of their operation.

Why Sudbury? Located in the 40,000 square-foot Penguin Research Centre, the company has 20 employees, all of whom work in research and development. “Being located in Sudbury gives us a big advantage,” said Baiden. “There are a lot of mines in the area and, therefore, plenty of opportunities to test our products.” Sudbury — which many believe to be Canada’s mining capital — might just hold that title for another reason, as it holds yet another important key that could revolutionize the future of mining across the globe. CIM www.penguinasi.com

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Baiden got the idea for RoboMap while thinking about creating the mining equivalent of an automobile assembly line utilizing robots. “For robotic mining to work, the robots need to know all the features of the tunnel in which they’re operating,” he explained. Although there are relatively few examples of robotic mining, Baiden expects there will be many more in the future. “It’s hard to predict when — anywhere between five and 30 years from now,” he said. Teleoperation, the technology behind RoboMap, entails the ability to remotely operate robotic machines by virtually putting people inside the machine. Teleoperation requires a system that incorporates a robotic controller on the machine, a high-capacity broadband, wired and wireless networks, and a teleoperation workstation. The teleoperator workstation and the robotic machine are on a highcapacity network, which gives the operator access to all machine data. In addition to machine information, the tele-

June/July 2009 | 19

upfront OUTREACH by Brenda Dalglish

Leaving no rock unturned PDAC workshop provides practical training to future geologists of the hands-on workshop that took place recently in Sudbury, Ontario. The intense, two-week workshop began with an introduction to the wide variety of careers open to geoscientists and an explanation of venture capital financing available to the entrepreneurially inclined. It then touched on such topics as exploration-grid and government-style mapping, exploration geophysics, geochemistry, core drilling and logging, as well as data handling and management. A junior exploration geologist employed by S-IMEW’s patron sponsor, Barrick Gold Corp. in Chile, also took part in the program.

Walking the talk

Back in the classroom for some hands-on work

all it exploration’s version of the classic “three Rs” of education. The three most talked about topics at this year’s third annual Prospectors and Developers Association of Canada’s annual Student-Industry Mining Exploration Workshop (S-IMEW) were: the economics of resource cycles and their impact on geology graduates hunting for jobs; the environmental impact of the mining industry, especially in Sudbury where the effects of decades of nickel smelting have been reversed over the last 25 years; and the entrepreneurial desire already taking hold of a few students to eventually form their own companies. It was these “three Es” that engaged the 24 top geoscience students selected to take part in the third annual installment

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

Students were taken on a series of exciting field trips, first in the Sudbury area, to Xstrata Nickel’s smelter complex, two of FNX Mining Company Inc.’s mines, the Sudbury Basin and its historic O’Donnell ore roasting beds, as well as the Cobalt Mining Museum. Travelling to Quebec, the group went on underground tours of Agnico-Eagle’s Goldex and LaRonde gold mines near Val-d’Or, and took a detailed geological tour of the worldrenowned Noranda region. In all, more than 40 industry leaders spoke to the group including Keith Barron, co-founder of Aurelian Resources Inc., a junior exploration company that discovered a large gold deposit in Ecuador and was bought out by Kinross Gold Corp. for $1 billion last year. Barron described the setbacks and challenges he faced in his career before the discovery in Ecuador. Apollo 17 astronaut and geologist Harrison “Jack” Schmitt’s closing keynote address looked to the future of space exploration and discussed the potential for mining helium-3 from the moon for use as an energy source. Matt Moss, a 22-year-old student from the British Columbia Institute of Technology in Vancouver, who will graduate with a Mining Technician Certificate, took a two-week break from a course project of designing an open-pit mine to take part in the workshop. “It’s been really good and the speakers have been fantastic — way over and above what I expected,” said Moss. “It’s a chance to see how they apply what I’ve learned in school. It’s also been good to talk with the other students to find out what their schools are teaching. For example, I’m unfamiliar with geophysics — I haven’t taken any courses — so

upfront OUTREACH

I really got a lot out of the geophysics day; I would have liked more.” During the workshop, students were told that in the future, exploration will need to go deeper underground to find new deposits and as a result, during their careers geologists and geophysicists will need to work more closely than they have in the past.

Preparing for the future The workshop was designed to maximize the students’ exposure to a rich range of experiences, said Felix Lee, cochair of PDAC’s human resources development committee, who helped S-IMEW founder and committee co-chair Scott Jobin-Bevans co-ordinate the 2009 event. “PDAC is the voice of the exploration community in Canada, and the committee’s objective is to maintain a strong and robust industry here,” said Lee. “Right now, one of our chief mandates is to prepare for the labour shortage that we expect to face in the next few years.” Forecasts suggest that between 60,000 to 90,000 people will be retiring or leaving the industry in the coming years. “ S-IMEW was designed around the components of the mineral exploration cycle,” said Jobin-Bevans, who heads several companies involved in mineral exploration and geological consulting. “But it goes beyond the technical and academic aspects of the industry. Our goal is to provide the students with networking opportunities and to help develop their skills so they are better prepared as they start their careers.” As part of his four-year B.Sc. in earth sciences at the University of Waterloo, 24-year-old Jon Rigg took several courses in geophysics and will be pursuing a M.Sc. in geology. Rigg is not immediately concerned about job prospects because he has a summer job with the Geological Survey of Canada (GSC), mapping on the Melville Peninsula in Nunavut. But the cyclical nature of the industry is on his mind. “To be honest, I don’t think all my classmates understand this; I didn’t really appreciate it until I started working,” he said. Speakers like Barron and Brian Bengert, senior geophysicist with Vale Inco in Sudbury, who described how they handled the boom-bust nature of the industry during their careers, were particularly inspiring, Rigg said, adding that he would like to get even more information about economics and finance. “We don’t get much of that at school,” he said. “But, let’s face it, that’s what’s going to put food on our tables.” Karen Grey, a 26-year-old with a year to go before she gains her B.Sc. (Hons) in geology from the University of New Brunswick in Fredericton, was one of the six women in the group. Grey was thinking about practicalities, too. “Cycles mean you have to be careful with your money,” she laughed. Exploration appeals to her more than research or teaching, she said, because she prefers to be active and outdoors rather than in an office. “In exploration, the

A student tries out geophysics equipment

conditions can be really tough,” Grey added. “When I think about it, I think ‘Ah, I don’t know if I could do that.’ But after it’s over, you’re so glad you did it. That’s what I like. I like the challenge and I want to keep learning.” It seems that these students might add another ‘E’ to their list: exploration. CIM A call for nominations for the fourth annual S-IMEW, which will be held in May, 2010 in Sudbury, will be sent out this fall. For more information, visit www.pdac.ca.

Moving on up First Quantum Minerals Ltd. has appointed Paul M. Brunner to the board of directors as a non-executive independent director. Brunner, formerly president and CEO of Boart Longyear Company (USA), has had a 21-year career at that company. He has been in several senior management positions including managing director, Boart Longyear Ltd. (South Africa); regional director, Boart Longyear Limitada (Chile/Peru); and president, Boart Canada Ltd. June/July 2009 | 21

upfront NEW FRONTIERS by Mike Paduada

From the mine site to Mars and back

Photo courtesy of Mike Paduada

Technical session highlights what the mining and space exploration sectors offer one another

Mobility platform on display at CIM’s Mining in Society show

he Mining in Space technical session at the recent CIM Conference and Exhibition held in Toronto served as a landing pad for NASA and the Canadian Space Agency (CSA). Their mission: to boldly do what no one has done before — establish a permanent outpost on the moon. Recognizing that human expansion has always relied on access to natural resources, the space agencies have been actively exploring mining industry partnerships with the objective of developing the first generation of lunar resource technologies and capabilities. Presenters from CSA, NASA and the mining industry explained the need for mining in space, shared what has been achieved so far

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(including technology spin-offs), and described how the mining industry can help overcome the challenges that lie ahead.

ISRU key to reducing costs The idea of space mining — or, in situ resource utilization (ISRU) — is significant because, as Dr. Jackie Quinn of NASA explained, “it’s all about mass and the cost to get there.” The cost to move material to earth orbit is in the order of tens of thousands of dollars per kilogram. Moving material to the moon may cost substantially more. “We look at consumables as our first step,” explained Jerry Sanders of NASA in his presentation. The immense cost of transporting consumables, such as oxygen and water, to the moon can be saved if they can instead be produced on the lunar surface. “If I can make it there, then I can bring more science equipment or rovers,” he went on to say. The ability to recover and produce materials on the moon and on Mars will reduce the cost, freight mass and risks of sustained human activities in space. Due to such wide-ranging benefits, space agencies have spent the last several years pursuing ISRU technologies. Collaboration is a key part of developing that technology well, according to Sanders. “This is something nobody has ever done in space,” he said. “Even though we’re building the hardware as we speak, there is still a lot to learn. That’s the reason why I’m at this conference. There are hundreds of years of experience in mining here. Even though our hardware looks like toys compared to what I’ve seen at the booths, there are a lot of lessons learned that can go both ways. The bottom line is spin-in and spin-off.”

Technology spin-offs Technology spin-offs were discussed in the presentation by Jim Richard, president of Electric Vehicle Controllers (EVC). Based in Val Caron, Ontario, EVC specializes in drives for underground battery locomotives. As a miningrelated company, EVC has seen how ISRU contracts can lead to technologies with terrestrial applications. Through several space agency contracts, EVC and the Sudbury-based Northern Centre for Advanced Technology (NORCAT) have been involved in the development of drilling technology for potential lunar and Martian use. The all-electric dry drilling technology, which caters to ISRU requirements, has

upfront NEW FRONTIERS

commercial applications on earth in a hydrogeology drill. Also, their drilling technology relies on specialized diamond drill bit designs, developed by Winnipeg-based Dimatech, that have already been adapted for commercial use in the oil and gas industry. Richard also described spin-off applications from an early prototype of a mobility chassis being developed for ISRU applications. The low-profile, all-electric design is intended to traverse rough terrain and can accommodate changeable payloads, such as a plough or drill. The ISRU prototype, which was on display at the NORCAT Mining in Society booth, drew a lot of questions about potential mining applications. “We now consider this to be a production unit,” said Richard. “We were originally supposed to build three under our contract. That grew to five. With the inquiries we’ve had, we’re up to eleven. And that’s not counting what we’ve talked about this week.”

Cross-border collaborations In addition to direct technology spin-offs, ISRU activities have yielded valuable test data, many lessons about conducting field tests and promising indications that technology collaborations across borders and with multiple organizations constitute the right approach. Quinn gave an overview of field tests conducted in November on the volcanic terrain of Hawaii’s Mauna Kea. Her presentation included an explanation of the hydrogen reduction chemistry for oxygen extraction employed in the two production plant projects and the one prospecting rover project. The excavation, transport, loading and processing mechanisms used for the production plants, and the drilling and crushing mechanisms on the prospecting project bear more similarities to mining technology than they do to traditional aerospace technology. Each project completed several successful tests, yielding valuable information that will improve future designs and bring the technology one step closer to space-readiness. Michel Doyon of CSA described that mobility data — including performance, traction and power consumption measurements — gathered during the November tests were used in the design of the prototype mobility chassis. In addition to advancing technologies, space agencies gain valuable experience about using the mining-derived technology in the field. Doyon explained further that the CSA is “putting significant effort not only to develop technology, but also to gain operational expertise.” Mining know-how will provide advantages that will help CSA secure a core role in international space exploration activities. The presenters also made it clear that there are still more connections to the mining industry in the work that lies ahead. CSA-sponsored work on ISRU mobility platforms will rely on vision systems and autonomous operation systems that may have direct applications in mining. Site selection, site verification, geological mapping and site

preparation are other activities with potential mining connections. Doyon said that CSA-facilitated collaboration between various industries will “allow us to reduce risk and make smart decisions about CSA’s future participation in space exploration missions.” NASA also has a long, complementary list of areas for ISRU technology development, and they have some ideas where the mining industry might be able to help. “We’re now looking at size-sorting the lunar material to enable the best reactions and at the same time beneficiate it to concentrate the iron oxide,” said Sanders. In the coming technology development cycles, Sanders foresees mineral processing expertise as another valuable connection. The ambitions of space exploration may seem large and overwhelming, but there is a wide opportunity for miningrelated companies to engage. “Space agencies are funding technology development,” explained Richard. “Small- to medium-sized companies are participating in this development.” Richard attributed EVC’s success in its ISRU technology efforts to the adaptability and quick responsiveness that a lot of smaller companies have. “The technology transfer is occurring, and the smaller companies are the ones that are benefiting,” he said. Indeed, the collaborative efforts between the space agencies and Canadian mining industry might just hold an important key to longevity and prosperity for all. CIM

Giving Back Providing Shell-ter Shell Canada Ltd. has announced a donation of $650,000 to the Calgary Homeless Foundation, to support its efforts to alleviate the effects of and bring to an end the persistent problem of homelessness in Calgary. Since counting began in 1992, homelessness has grown by 1,000 per cent in the city. Every night, more than 4,000 Calgarians are homeless. Over 15,000 people experience homelessness each year and more than 500 sleep “rough.” Shell Canada’s contribution will help the Calgary Homeless Foundation defray its immediate expense and free it up to continue working on its comprehensive 10-Year Plan to End Homelessness. The underlying principle of the Plan is “Housing First,” a proven approach that seeks to move people off the streets into permanent housing. Acknowledging the significance of the Shell Canada donation, Tim Richter, president and CEO of the Calgary Homeless Foundation said, “Shell Canada’s support is a key component of the Foundation’s ability to implement Calgary’s 10-Year Plan. It allows us to operate our own ‘home’ so we can focus on helping others find housing, providing supportive housing and preventing our vulnerable neighbours from becoming homeless.” June/July 2009 | 23

upfront SUSTAINABILIT Y by Marlene Eisner

No smoke for this fire

Photo courtesy of Sabina Silver Corp.

Clean-burning incinerators are helping mine “An Environment Canada representative in Yellowknife asked us what we were doing for garbage incineration,” Burgess recalled. “Because we were looking to replace our old incinerator, we thought we might as well get a bigger one now that would meet more stringent air quality emission standards. Basically, we wanted to be proactive in reducing our environmental footprint.” After speaking to other camps in Nunavut that had similarly sized operations, Sabina chose Eco Waste Solutions.

An interesting challenge

Hackett River incinerator

ne of the greatest challenges at a mining site is waste management. Everything from motor oils and packing materials to table scraps needs to be eliminated in the most cost-effective, eco-friendly manner. At remote or northerly sites, the problem becomes further exacerbated. With landfills and burn barrels becoming unacceptable, companies are increasingly searching for alternative solutions.

A proactive approach Sabina Silver Corp.’s Hackett River silver-zinc project is located in Nunavut, approximately 480 kilometres northeast of Yellowknife. Currently in advanced exploration, the company has completed a Preliminary Economic Assessment (Wardrop, 2006) and is working towards a pre-feasibility study with AMEC. Between 25 and 30 people live at the site from March to early October. The camp’s refuse is typical of many mining sites — general waste (food scraps, packaging, human waste, etc.), drilling waste (greases, lubricants, etc.), used hydrocarbons (motor oil, water-contaminated fuels, etc.), and wood/paper waste. While much of this is reused or recycled and flown to Yellowknife, the rest is incinerated. Until last year, the site had an older, small-sized incinerator but Scott Burgess, Hackett River operations manager, said that following a conversation with Environment Canada, Sabina decided to purchase a bigger, newer dualstage, forced air model. 24 | CIM Magazine | Vol. 4, No. 4

Choosing the right incinerator was the easy part of the equation. Getting it up to the camp and installing it was a different matter. The harsh climate and remoteness created interesting challenges that were met with creative solutions. “The installation took about two weeks,” explained Burgess. “We had one of the technicians from Eco Waste come up to help us right from the start so that we would install it correctly.” Because of aircraft payload restrictions, the incinerator had to be disassembled for shipping and then put back together again on site. Once the parts were trucked from southern Ontario to Yellowknife, six flights were required to deliver them to an ice-strip on the lake adjacent to the camp. They were assembled on the ice, and then Great Slave Helicopters picked them up with a medium lift helicopter and brought them another three hundred metres to the camp. “The pieces were very sizable, so a larger helicopter than we already had on site had to be brought in from Yellowknife to lift and swing them into place,” Burgess said. Often, in more accessible locations, these incinerators are housed within a rail container somewhere on site. In this case, there was no way to get a container in, so Burgess said they had to built a shed around the unit where it is now located.

A clean burn Jean Lucas, business development director at Eco Waste Solutions, said her company has been creating clean-burning incinerators since 1994. At that time, their R&D department was looking to improve upon incineration in remote areas. They delivered their first unit to the Canadian military base at Alert — the northernmost, permanently inhabited place in the world.

upfront SUSTAINABILIT Y

LAB TESTED + SITE PROVEN

“They had been using a landfill but had decided that it was an inappropriate way of dealing with waste in that climate,” recounted Lucas. “The landfill had also become an attractant to local wildlife, such as Arctic fox. An incinerator was the only solution that made sense. Since that time the Department of National Defence has completely removed the landfill and restored the land.” Now, 15 years later, remote mining sites are planning ahead. During the construction phase of a project, there are often up to 1,000 people on site, which means waste can pile up quickly. The permafrost in northerly locations does not lend itself to the normal decomposition that typically occurs in a landfill over time and it is not safe to keep garbage around for too long, because the threat of attracting predatory animals is all too real. Additionally, landfills also represent a permanent alteration of the landscape in an ecologically sensitive area. These are some of the reasons why the industry is starting to think long-term, said Lucas. “Mines are now saying ‘let’s just take care of waste as it’s generated; let’s get rid of it on site,” she explained. “This practice fits with the newer thinking of dealing with environmental issues during the mine life rather than waiting until the operations have closed to begin site rehabilitation. Our method of incineration is quite different from the old burn barrels, which would generate a lot of smoke.” In addition to burning more cleanly, the new incinerators can also handle a wide range of items, including maintenance shop waste, vehicle and equipment oil, antifreezes, glycol, food waste, regular domestic garbage and sewage sludge. With the Eco Waste Solutions incinerator, the smoke from burning garbage in the first chamber goes into a secondary chamber, where high temperatures and the insertion of air hold the gases. “We use 1,000 degrees Celsius in that second chamber and retain the gases for two seconds,”

explained Lucas. “By the time they go out from the stack, all the hydrocarbon bonds are broken down into water vapour and carbon dioxide. If you would look at the stack from outside, the exhaust gasses would be completely clear.”

Still working out the kinks There have been a few minor challenges with the incinerator since it was installed at Hackett River in 2008, said Burgess, although he added that there have been no significant maintenance issues. However, with extreme winter cold conditions where temperatures regularly go as low as 40 and 50 degrees below zero, “nothing runs very well,” he acknowledged. Because of that, Eco Waste Solutions recommended taking the processor out from the electronic board to be stored in a warmer environment in Yellowknife. “We had to put it back in after taking it out, and it had to be reprogrammed,” explained Burgess. “We live and learn; next year we’ll know a bit more.”

Cleaner, fresher air It has been almost a year since the new incinerator was installed and everyone at the camp sees a noticeable improvement in air quality. “The incinerator works well,” said Burgess, adding that the larger incinerator is used for the majority of burnable site waste, while the smaller one is used occasionally for lesser loads, primarily cardboard. “The volume of waste ash we must ship out has been noticeably reduced, and we all detect how much cleaner this unit burns; there’s no black smoke over the camp. We also see a difference in the air quality.” The changes that accompany these higher standards are becoming more noticeable; as well, the industry continues to make bold efforts to achieve a cleaner future. CIM www.ecoslutions.com

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6/4/09 2:59:57 PM June/July 2009 | 25

Photo courtesy of Boart Longyear

the supply chain

Future growth will depend on strengthening bonds along the supply chain now by Ryan Bergen he mining industry can be quite a fickle beast. To its credit, it is certainly tough. For anything to survive and thrive as long as it has, it must be. And it can undoubtedly be tenacious. In what seems like a flash, it can heave itself up and go on a hungry tear, pulling hard at the supply chain, testing the solidity of its links. Then, seemingly as quickly as it set off, it lowers its head and retreats — or seems to. Few of the suppliers or purchasers who must face the temperamental demands of the industry can be too surprised by the recent market extremes, but that does not mean that they have not been tested by them. The latest charge overextended many, stretching lead times for the delivery of vital equipment and support services to record lengths. The corresponding slowdown has shifted the focus inward to challenges such as managing costs and

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

reorganizing and refining business practices. It has also given those along the supply chain an opportunity to take a step back to evaluate the recent frenzy with a critical eye, and to consider the future.

Riding the highs and lows The cyclical nature of the mining industry may be a constant, but each surge and slump has its own character — and its winners and losers. According to Marc Duchaine, Vale Inco’s head of strategic procurement for North America, the enormous proportions of the current cycle are central to defining it. “To me, this low is similar to the previous high,” said Duchaine. “During the boom, there were many new players and the demand became truly global. And I think it is the same with this downturn; it too is global — there are no areas that are being spared

the supply chain

Photo courtesy of Boart Longyear

by it — so the effects are even worse.” Bruce Knight, president of SMS Equipment — the enterprise that was born last year from the consolidation of Coneco, Federal Equipment and Transwest Mining Systems — has ridden a few waves over his career. The marketplace, he agreed, has gotten bigger, and the new scale creates new challenges. “I believe one of the key differences between the current downturn and the one back in the early to mid-1980s is that at least then, if you had good used or rebuilt equipment, you could sell it offshore to what at the time were referred to as Third World countries,” said Knight. “Today, many of those countries are running state-of-the-art fleets. They’re utilizing new equipment and not as much used or ‘tired iron,’ so the ability “During the boom, to move that equipment to some there were many of those areas is a lot tougher. Many of those underdeveloped new players countries are now direct comand the demand petitors with the Canadian minbecame truly global. ing companies.” Still, there is cause for optiAnd I think it is the same mism, suggested Guff Muench, with this downturn; president, Western Canada for it too is global — there engine and power system manufacturer and distributor are no areas that are being Cummins. “The big difference I spared by it — so the effects think right now is that interest are even worse.” rates are really low,” observed ~ M. Duchaine Muench. “So for those of us who gambled on inventory, we are not being punished the way we were in previous recessions. If you had a lot of inventory, you got agree that the only way to sustain a similar run in the future killed by your carrying costs. Businesses that are carrying is taking this downtime to lay the right foundation.” From the procurement perspective, this linkage is inteextra inventory now are luckier.” gral operationally. “One thing that became very obvious It takes two for us through the past boom is that suppliers with whom The frantic pace of the mining industry over the last few we had long and strong relationships were there for us years certainly goosed profits, but it also stirred up costs, and were able to guarantee our demand requirements supply shortages and other growing pains. Muench during that period,” said Duchaine. “That really pointed out acknowledged that he did not like the trend he saw devel- to us the benefits of long-term relationships with our supoping during the boom. “It was common to have to disap- pliers. It took focus away from the ‘one-purchase-at-apoint customers with long lead times when things were time, looking-for-the-lowest-price’ approach to more of going crazy, and that’s certainly not the support model that an all inclusive partnership with the supplier. It is not only most of us realize is appropriate for mining,” he said. “We the price; it is also the service and how they work with us should never say ‘no.’ Most of us along the supply chain to plan for demand.” June/July 2009 | 27

Photo courtesy of SMS Equipment Inc.

the supply chain

Duchaine said Vale Inco is working hard to secure partnerships with suppliers so that they will be better positioned to get the necessary parts and equipment during the next upswing. “The danger, looking forward, is in

over-economizing,” he warned. “These are tough times and we are all trying to preserve cash as much as possible, but there is always a risk that if we start focusing again too much on cutting down on expenses, it will be counterproductive in the relationships with our suppliers.” Kevin Tomaszewski, director of global product marketing for Boart Longyear, said that they have recently streamlined their product line and marketing approach. “We’re focusing a lot more on the area of spares,” said Tomaszewski. “We asked our customers what parts wear out over time and responded by developing kits that contain all the spare parts needed for a specific job or purpose that customers can purchase.” He said that the company has also dedicated a product manager strictly to spare parts as well as redeveloped inventory locations that allow faster responses to parts demands.

The road ahead Though nobody can be sure how long the recovery will take, buyers and suppliers share the conviction that renewed growth is certain. With the long-term view in mind, the smart guys, argued Muench, are going to keep making sure they have all the support activities in place. “Having the 28 | CIM Magazine | Vol. 4, No. 4

the supply chain Photo courtesy of SMS Equipment Inc.

also getting smarter. At Boart Longyear, drilling products are being developed with comprehensive electronics. The new generation, he said, will tell operators how deep they are drilling, at what rate, as well as measure the down time. â&#x20AC;&#x153;It will give people the ability to collect that information, send it off to headquarters and be able to do the analysis to determine how productive they were â&#x20AC;&#x201D; or were not â&#x20AC;&#x201D; per day,â&#x20AC;? he added. And innovation is not only being directed into the products themselves, insisted Duchaine. â&#x20AC;&#x153;I think that technology is percolating throughout the supply chain,â&#x20AC;? he said. â&#x20AC;&#x153;It is not just the equipment that will become more sophisticated but also that the suppliers will demonstrate greater sophistication in their dealings with buyers, and integrate enterprise resource planning systems so that the whole supply chain is improved. â&#x20AC;&#x153;The demand for commodities will return,â&#x20AC;? predicted Tomaszewski. â&#x20AC;&#x153;Infrastructure will continue to develop and economic growth is inevitable. We expect that the demand for gold, copper, base metals, aggregates and natural gas will continue to cycle back â&#x20AC;&#x201D; it is just a matter of time.â&#x20AC;? In the meantime, those who aim to keep their place in the supply chain must maintain a supple but firm grip on their link until the next run begins. CIM

right people and concentrating on training is harder in a recession, but you have to keep focusing on your support functions,â&#x20AC;? he said. Throughout this downturn, Knight said, SMS is taking the opportunity to continue to bridge the manpower gap. â&#x20AC;&#x153;We are still hiring trades people because throughout the boom we never did catch up, since we kept our entry level requirements quite high,â&#x20AC;? he Best Practices Mining Projects explained. Not only is there a deeper labour pool from which to draw now, but The IPA Institute a division of IPA Inc. will hold a 2-day seminar in Toronto, Canada on the recruitment process is more effiAugust 25-26, 2009 to share best practices demonstrated to improve both mine cient, he observed. â&#x20AC;&#x153;When you are hiring extraction projects and minerals process facilities projects.The practices discussed have people in a down cycle there is an been shown to lower costs by 10 percent. added emphasis both on how you want The session will candidates to perform and what their expectations are of you as a company,â&#x20AC;? - & % ' && ' ) #$! "' $%# && he explained. â&#x20AC;&#x153;When you are in boom - % & "' #!$#" "'& #% ! " " ' #" - " ! " " && ' ' ' &' ! ' (& " && " & cycles you donâ&#x20AC;&#x2122;t necessarily pay as - % & "' $% ' & '# !$%#) #&' & ( #$ % ', " & ', much attention to some of that, and in performance certain cases you end up oversized â&#x20AC;&#x201D; - +$ #% #* '# & ' " ) $% ' #&' " & ( % &( '& too many people for jobs needing to get - & (&& % &#(% " " & #% ! " % & $%# '& - % #* '# !$ ! "' $%# ' #"'%# & done.â&#x20AC;? - ' % & & #% " " " + (' " ! " % & && '& " % & Duchaine agreed that the manpower mitigation approaches challenge will not go away, adding: â&#x20AC;&#x153;the mining industry in Canada is going to TARGET AUDIENCE see a wave of retirement over the next The program is intended for all involved in defining, planning and executing minerals few years, and with that always comes investments. Key activities in the front-end of the project where important business the risk of losing the knowledge that decisions are made involve cross-functional representation so learnings can be those people have acquired over the implemented by all who participate in the investment process. In this course, we present years.â&#x20AC;? learnings derived from the analysis of thousands of actual projects. At the same time, Tomaszewski pointed out that the equipment itself is

June/July 2009 | 29 Untitled-5 1

5/28/09 2:38 PM

supply chain

Condition monitoring analyst, Bob Cornejo of Minera Yanacocha suggesting changes to the condition-based maintenance process.

Maintenance and the supply chain by James Reyes-Picknell

aintenance can easily consume up to 50 per cent of operational costs in mining. That money is usually split almost 50/50 between labour and materials. Proactive maintenance approaches to managing failures can dramatically reduce these costs and savings of up to 20 per cent (10 per cent of operational costs in total) can be achieved. Such savings come with increased operational availability, improved safety performance and reduced environmental risk from spills and excessive emissions. Combined, these benefits result in reduced business risk and can portray operations in a much more favourable light with money markets, lenders and insurers. Getting it right in maintenance delivers on all these benefits like no other aspect of your business can even hope to do.

Examples provided by Matrikon of customers using its Mobile Equipment Monitor solution. 2 Uptime â&#x20AC;&#x201C; Strategies for Excellence in Maintenance Management, 1st ed. 1995 and 2nd ed. 2006, by John D. Campell and James Reyes-Picknell, Productivity Press, NY. 1

Breakdowns in operating equipment can often be prevented or predicted. How many problems are detected early through condition monitoring programs and/or online performance monitoring but go uncorrected because of poor followup? How many are actually caught in time? For example, safety policy requires the haul truck parking brake be set every time the truck is stationary for loading, dumping, etc. With online monitoring, real-time data showed that one operator only set it twice â&#x20AC;&#x201D; for washroom breaks. His behaviour was addressed and potential safety problems averted. How many problems are ignored because the available data are limited? In a Wyoming coal mine, a shovel experienced repeated lubrication alarms. Operators, with access to limited data, restarted after each fault and continued to do so until the hoist gear box failed. The proper level of monitoring by the right people could have averted $3.6 to $6 million per incident.1 These examples illustrate what can be achieved with a well-designed program. And that program must be executed well or it wonâ&#x20AC;&#x2122;t deliver the results. June/July 2009 | 31

supply chain Image courtesy of Conscious Asset Management

The Uptime pyramid of excellence

Pyramid of excellence The book Uptime — Strategies for Excellence in Maintenance Management,2 was originally created as an overview framework for non-maintenance managers. However, it quickly became very popular among maintenance managers the world over. Uptime’s “pyramid of excellence” framework depicts 10 elements required for excellence in maintenance including: strategy, people, materials management, performance management, basic care, work management, management and support systems, process, assets and teams. That pyramid has been copied and re-cast as concentric circles, ladders, ball bearings, other pyramid constructs and building blocks. Regardless of how the 10 elements are depicted, what remains critical to their functioning is that they are inter-dependent. They are not mere “steps” in a single process; they work together. How they work together is what varies from operation to operation. Two of the 10 elements — work management and asset reliability — deliver direct benefits. However, because they do not work in isolation, they cannot be the sole focus of an improvement program. Asset reliability delivers most of the operational availability benefit through improved reliability, and cannot be achieved without a high level of compliance to a welldesigned and constantly optimized failure management (reliability) program. Such programs require less work (and hence cost) to implement than traditional programs based on following manufacturers’ recommendations and running equipment hard and fast to failure. The reliability program only works if it is executed through effective work management practices and the exercise of basic care (like 32 | CIM Magazine | Vol. 4, No. 4

operating equipment within acceptable limits) by operators. Asset reliability is all about doing the right work (effectiveness) while work management is about doing it the right way (efficiency). Work management ensures that repairs and preventive work are carried out at optimum cost. It results in enhanced operational availability through reduced repair times. However, work management cannot deliver, especially in the repair scenario, without effective materials management and — this is the part many maintenance managers miss — vice versa. Since work and materials are often managed by separate functional departments, there is a systemic, built-in challenge to this two-way management process. The goals, specific objectives and performance measures used in these two departments are often poorly aligned. Maintenance often focuses on availability while materials look at costs. But you can’t improve in either area without some up-front spending and sustained cooperation. Some companies have seen fit to put them both under the same leader. Yet, that seldom works because of the requirement of completely different skills and knowledge. Maintenance managers know equipment and what it takes to keep it running. Materials managers know how best to manage inventories of parts and deliver them to end users (e.g. maintainers) in a timely manner. But only rarely do we find someone who understands both disciplines. Often, the two managers will also have conflicting performance measures. Maintenance wants high parts availability to achieve rapid repair times and lower its mean time to repair, while at the same time, materials management wants to minimize inventory holdings to keep costs down. Striking that balance while meeting both performance criteria is a challenge. Complex materials management algorithms are there to help, but the mathematical knowledge required to use them is often beyond the level of training that most materials managers have. Attaining the balance in performance measures and results is another key Uptime element. Here is a simplified depiction of how the key Uptime elements are interdependent. The other Uptime elements — strategy, people, performance measures, systems, processes and teamwork — will determine how well this happens and what results you get. The supply chain delivers materials. Work cannot be executed efficiently or completed if mechanics are starved of materials. Cannibalization, on-site manufacture

supply chain of parts, hot-shot deliveries and Image courtesy of Conscious Asset Management call-outs all speak to the lack of Operational Low Costs cooperation between work Availability + and materials management. Maintenance often shoots itself Reduced Failures in the foot by failing to return repairable items for restoration, Effectiveness of work program failing to return unused parts, stashing parts in their own cabinets, directly buying parts from Efficient Execution local suppliers, using purchasing Asset Reliability cards, failing to specify materials for planned work and engaging in various other poor practices. Materials management fails Efficient Execution when it does not stock the right materials or doesn’t have them ready for planned work execution, Define has too much of the wrong mateWork Management Activities rials or fails to supply in a timely manner. Asset Reliability falls short if the failure management proCooperation Materials Execute gram is ill-defined. Without identifying the right work, supervisors and planners who manage Materials the work are making best Basic Care Management guesses that are often incorrect. Even if work is well planned and materials processes are followed, it will not work if the wrong work is being done. It will devolve into breakdown practices and carried out initial Uptime training in maintenance chaos and maintainers, in their efforts to mid-2007, developed mega-processes for work managedeliver the best they can, will bypass the processes. This ment and other Uptime elements. Later that year, they worked on execution and audited their progress in midnegative spiral just gets worse. 2008. They continued optimizing those processes into Follow the leader 2009 and will, later in the year, extend Uptime training to a What is missing in most cases is not the knowledge of broader range of their people. what to do — many have read Uptime. It is up to the manMaking it work takes time and dedication to the susagement to resolve and commit to sustaining it all. There tainability of the process and results. The timeline could are no “best practices” or “silver bullet” solutions. Uptime probably be accelerated or even slowed down in other requires discipline and leadership. As I say in Uptime, mines with different corporate cultures. It depends on “people will follow the way that they are led.” Leaders the people involved. Leadership is all about recognizing must be proactive in their thinking and actions. Reacting those differences when embarking on this journey of to the panic du jour instead of responding rationally will choosing excellence. CIM result in reactive behaviour in maintenance that undermines the best efforts of asset reliability About the author and materials management to support the delivJames Reyes-Picknell is founder and president of ery of operational availability, low costs, safety Conscious Asset Management, a global asset and and environmental performance. Responding maintenance management consulting firm. He proactively requires knowledge of how the works with capital-intensive companies on Uptime elements inter-relate, the desire to operational excellence to achieve low costs, safety improve, the will to execute and the leadership to and environmental performance while improving set the right example. availability. Based in Canada, James operational Minera Yanacocha and many other mines are teaches his methods and advises clients on its working diligently to implement Uptime. They implementation around the world. began in late 2006 with a review of their June/July 2009 | 33

Photo courtoisie de Boart Longyear

la chaîne d’approvisionnement

La future croissance sera fonction du resserrement des liens tout le long de la chaîne d’approvisionnement dès maintenant ’industrie minière peut être assez volage, mais il faut reconnaître qu’elle est vraiment forte pour avoir survécu et prospéré comme elle l’a fait. Elle est aussi tenace, elle peut mettre à rude épreuve la chaîne d’approvisionnement et ses liens. Les fournisseurs ou les acheteurs, qui doivent faire face aux demandes de l’industrie, ne peuvent être trop surpris des récents extrêmes des marchés; mais cela ne signifie pas qu’ils n’ont pas été durement éprouvés. Les derniers soubresauts des marchés ont dépassé les capacités de plusieurs, repoussant les délais de livraison d’équipements essentiels ou de soutien technique à des niveaux sans précédant. Le ralentissement correspondant a forcé l’introspection vers des défis tels que la gestion des coûts et la réorganisation des pratiques commerciales. Tout au long de la chaîne d’approvisionnement, les gens ont eu l’occasion d’évaluer la plus récente frénésie avec un oeil critique et d’analyser l’avenir.

Naviguer entre les hauts et les bas La nature cyclique de l’industrie minière peut être qualifiée de constante, mais chaque haut et chaque bas possède son propre caractère, ses gagnants et ses perdants. 34 | CIM Magazine | Vol. 4, No. 4

Selon Marc Duchaine, directeur des achats stratégiques, Vale Inco, l’amplitude énorme du présent cycle le définit. « À mon point de vue, ce creux est semblable à la crête précédente. Au cours de l’expansion, de nombreux nouveaux joueurs ont joint les rangs et la demande est devenue vraiment mondiale. Je crois qu’il en est de même avec la récession : elle est trop mondiale, aucun secteur n’est épargné. » Bruce Knight, président de SMS Equipment — une entreprise issue de la fusion de Coneco, de Federal Equipment et de Transwest Mining Systems — en au vu d’autres. « Les marchés sont plus gros, créant de nouveaux défis. Je crois que l’une des principales différences entre la baisse actuelle et celle des années 1980 est que si vous aviez de bons équipements remis à neuf vous pouviez les vendre aux pays du Tiers Monde. De nos jours, ces pays ont des flottes à la fine pointe de la technologie et ils sont même des compétiteurs de compagnies minières canadiennes. » Guff Muench, président de Cummins, Ouest du Canada, est optimiste. « La grande différence est que les taux d’intérêt sont très bas. Antérieurement, les frais d’entreposage étaient prohibitifs mais maintenant les entreprises qui ont de gros inventaires ont plus de veine. »

la chaîne d’approvisionnement

Photo courtoisie de SMS Equipment Inc.

Kevin Tomaszewski, un directeur de marketing chez Boart Longyear, dit que la compagnie a rationalisé sa ligne de produits et son approche marketing. « Nous mettons la priorité sur les pièces de rechange. Nous voulons savoir ce qui casse. Nous avons monté des ensembles de pièces pour des tâches spécifiques. La compagnie a maintenant un gérant uniquement pour les pièces de rechange et nous avons encore plus de points d’inventaire afin de répondre plus rapidement aux demandes de pièces. » Bien que personne ne sache combien de temps durera la crise, les acheteurs et les fournisseurs sont convaincus d’une croissance renouvelée. Selon M. Muench, les gens futés s’assureront à long terme que toutes les activités de soutien sont en place. « Il est plus difficile de mettre l’accent sur la formation durant une récession, mais vous devez cibler le soutien », dit-il. D’après M. Knight, durant tout ce déclin, SMS a saisi l’occasion de combler le manque de personnel. « Nous embauchons encore des gens. Durant les bonnes années, nous n’arrivions à en embaucher assez en raison de nos exigences de recrutement », explique-t-il. « Il y a non seulement plus de candidats mais aussi le processus de recrutement est plus efficace. » M. Duchaine ajoute : « Nous verrons sous peu de nombreuses retraites, entraînant un risque de perdre les connaissances acquises au cours des années. » M. Tomaszewski souligne à son tour que les équipements deviennent de plus en plus intelligents. Chez Boart Longyear, les produits de forage sont munis de systèmes électroniques complets. La nouvelle génération d’équipements indiquera aux opérateurs la profondeur et le taux de forage ainsi que les temps morts. L’information pourra être analysée afin de déterminer la productivité pour une période donnée. « Je crois que la technologie s’infiltre à travers toute la chaîne d’approvisionnement », insiste M. Duchaine. « Les fournisseurs seront aussi plus sophistiqués dans leurs rapports avec les acheteurs; de plus, ils intégreront des systèmes de planification des ressources afin d’améliorer toute la chaîne d’approvisionnement. » M. Tomaszewski prédit : « L’infrastructure continuera à se développer et la croissance économique est inévitable. Nous savons que le cycle de demande pour le fer, les agrégats et le gaz naturel reviendra – ce n’est qu’une question de temps. » En attendant, ceux qui veulent garder leur place dans la chaîne d’approvisionnement doivent garder un lien fort mais souple avec leurs contacts. ICM

Un partenariat La cadence frénétique des dernières années a certes accru les profits mais elle a aussi augmenté les coûts et réduit les offres. M. Muench reconnaît qu’il n’aimait pas la tendance qu’il percevait. « Il était courant de devoir décevoir des clients. Nous ne devrions jamais avoir à dire ‘non’. Nous croyons qu’il faut maintenant établir de bonnes fondations. » « Une chose est devenue très évidente durant les bons temps; les fournisseurs avec lesquels nous avons de bonnes et solides relations étaient là pour nous et pouvaient garantir nos demandes », dit M. Duchaine. « Cela a renforcé les avantages de relations de partenariat à long terme avec nos fournisseurs; ce n’était pas l’affaire d’une fois, à la recherche du plus bas prix. » M. Duchaine dit que Vale Inco travaille fort à établir des partenariats avec les fournisseurs afin que la compagnie soit mieux placée pour obtenir les pièces et les équipements lors de la reprise économique. « Le danger est de trop économiser, nous voulons tous épargner mais si nous coupons trop, la relation avec les fournisseurs en souffrira. »

June/July 2009 | 35

Photo courtesy of Taseko Mines

featured mine

An aerial view of the Gibraltar operation

Big and getting bigger Taseko Mines ramps up the expansion of its Gibraltar project on time and on budget by | Dan Zlotnikov

While mine operators havenâ&#x20AC;&#x2122;t had an easy time in the last few years, it has been doubly difficult for those looking to expand their properties. The commodity price spike created long delays in the supply chain and pushed up costs of everything 36 | CIM Magazine | Vol. 4, No. 4

from protective clothing to major equipment. Then, just as the suppliers were beginning to catch up, the world economy did an about-face, leaving many operators to wonder how they would to pay for the investment theyâ&#x20AC;&#x2122;d just completed.

featured mine Despite the pitfalls of the times, Taseko Mines is on the verge of completing a massive expansion at their Gibraltar operation, a copper-molybdenum surface mine located in south-central British Columbia, about four hours north of Kamloops. Even more significantly, according to company president and CEO Russell Hallbauer, the first phase of the expansion was completed on time and on budget. Nearing completion, the second phase of the expansion is expected to do the same. In part, said Hallbauer, Taseko’s success in completing the expansion can be attributed to good timing — the expansion was initiated at the very beginning of the price spike, so by the time supplier shortages truly made themselves felt, Taseko had already locked in its contracts and prices, and had ample time to get the necessary components into place. But the good fortune was helped by quick action. In March 2006, when the company’s executives saw copper prices getting stronger, they got the expansion plans approved by their board of directors and went to work. By May of the same year, Taseko had contracted with Farnell-Thompson, a Montreal-based engineering firm, to provide the new semi-autogenous grinding (SAG) mill. The 34foot mill would be more efficient and larger than the old rod

ball mills at the mine, and would allow Gibraltar to almost double its grinding capacity, with a matching increase in recovered copper. “The old mill ran to a maximum of 36,000 tons per day when it had really soft ore, but realistic capacity was about 28,000 to 30,000,” Hallbauer said of the increase. The new mill, with the right ore, can process as much as 60,000 tons per day.

Driving down operation costs The next part of the upgrade involved replacing the 96 original Denver 600H flotation cells (dating back to the 1970s) with ten Outotec 160-cubic-metre cells. The new cells allowed the mine to keep driving down its operating costs, Hallbauer explained, and not just because of the greater efficiency of the larger, more modern equipment. Simply going from 96 cells to ten would eliminate a great number of parts such as pumps and motors. The decrease in required maintenance and repairs is a clear advantage for Taseko. The replacement itself was an engineering challenge, Hallbauer said, because the mine continued to operate throughout the expansion. This meant installing a new cell to maintain capacity, shutting down and ripping out one bank of

June/July 2009 | 37

featured mine

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

featured mine old cells, installing the new ones and bringing them online, and then repeating the process with the next set, until all of the new cells were in place and running. “Imagine renovating your kitchen while your family is in the house, cooking dinner and using the fridge,” Hallbauer explained. With the concentrator part of the expansion bearing a $76 million price tag, Taseko had plenty of motivation to try and extend the mine life. The company undertook two extensive drilling programs starting in 2007, said Hallbauer. The results were very promising, upgrading the reserves from 149 million tons, first to 200 million and then to nearly 500 million. Today, according to Hallbauer, the expected mine life stands at 25 years, based on a throughput of 55,000 tons per day, the new SAG mill’s optimal capacity.

Photos, opposite page: 1. The newly commissioned 34-foot SAG mill has a grinding capacity of 60,000 tons per day; 2. An aerial view of the Gibraltar concentrator; 3. Over 100,000 tons of waste rock and ore are removed from the granite pit each day; 4. Gibraltar's modernized and expanded flotation circuit; 5. Gibraltar's new P&H mining shovel. All photos courtesy of Taseko Mines.

As the plan progressed, Hallbauer recalled, it started to evolve. At the end of the first phase, with copper prices still looking strong, the company made the decision to also upgrade the mining fleet. The modernization included three new Komatsu and four Terex 240-ton trucks, and a P&H 4100 shovel. An older, P&H 2300 shovel is due to be replaced with a Bucyrus 495 in the near future. These upgrades were put into place with the mine’s entire, 25-year lifespan in mind, said Hallbauer. “All the old equipment will eventually be gone,” he said. “You have to get new equipment every once in a while. Since we’re a lower grade operation, we want to make sure we’re down on the cost curve, and the only way to make sure of that is via modern equipment.” But there will also be an immediate payback on the investment, Hallbauer added, in lowered operating costs. This is an important consideration in today’s world of decreased demand and depressed prices, a point which was brought home for Taseko in 2008.

Phase III on hold The first two expansion phases and the equipment upgrades cost Taseko $250 million. Phase III, which would have taken the mine up to 85,000 tons per day and added

June/July 2009 | 39

featured mine a new molybdenum recovery circuit at the cost of another $350 million, was approved in May of last year. Much like the first two stages, Hallbauer said, most of the cost would have been met by Taseko’s internally generated cash flow. A May 13, 2008 news release announced that only 30 per cent of the expansion costs would be raised through the debt markets. “But that cash flow was predicated on three-dollar-apound copper,” Hallbauer explained, “and when copper went down to $1.70 and continued down to $1.20 and we couldn’t access the credit markets, it was a perfect storm in terms of our ability to not just continue with our capital projects, but also to ensure our operating costs were such that we could pay off all the money we’d spent and keep all our suppliers paid.” Most of the first two stages of construction were performed by Taseko employees, Hallbauer said. To meet the needs of the expansion, the company went from 330 employees at Gibraltar to 470. “We were training people up and getting organized and that was one problem, when our cost structure got ahead of us,” he added. “That’s one of the reasons we unfortunately had to have some layoffs. When the price of copper retreated, we didn’t have the cash flow to move ahead with some of our expansion initiatives.” The company has now returned to its pre-expansion worker numbers at Gibraltar. Hallbauer did not dismiss the possibility of revisiting the expansion plans at some future point, but said that the company would first need to see evidence of sustained high copper prices. At the moment, the markets seem to hold little chance of that, and Taseko is focusing on optimizing its existing facilities and bringing them to peak performance.

Prosperity in the future In terms of new expansions, Hallbauer added, Taseko is looking towards its Prosperity gold-copper property. Currently awaiting environmental permitting, Prosperity may begin construction in the spring of next year. Taseko is currently looking for partners to help fund the project, which promises to be one of the largest gold mines in Canada. “People don’t realize that Gibraltar is the second largest copper mine in Canada, with the longest lasting reserves of any open-pit mine in the country,” Hallbauer pointed out. “Our total metal production isn’t that great because our head grade is significantly lower than that of many others. But the size of the physical structure, i.e. 55,000 tons per day through the concentrator makes it a big mine.” But then again, big seems to be the order of the day at Taseko. CIM www.tasekomines.com 40 | CIM Magazine | Vol. 4, No. 4

Photo courtoisie de Taseko Mines

mine en vedette

De plus en plus gros Agrandissement de la plus grosse mine de cuivre du Canada

Bien que les exploitants miniers n’aient pas eu la vie facile au cours des dernières années, c’était doublement difficile pour ceux qui voulaient agrandir leurs propriétés. La hausse des prix avait créé de longs délais dans la chaîne d’approvisionnement et fait grimper tous les coûts, des équipements de protection jusqu’aux gros équipements. Ensuite, juste comme les fournisseurs commençaient à rattraper la demande, l’économie mondiale a fait une volteface. Les exploitants se demandaient alors comment payer les plus récents investissements. La compagnie Taseko Mines est cependant à compléter une grande expansion du projet Gibraltar, une mine de cuivre-

molybdène à ciel ouvert située en Colombie-Britannique. Plus important encore, selon le président-directeur général Russell Hallbauer, la première phase de l’expansion a été complétée à temps et en respectant le budget et il devrait en être de même pour la seconde phase. Selon M. Hallbauer, le succès de Taseko à compléter l’expansion est de l’avoir effectuée au bon moment : l’expansion a commencé au tout début de la hausse des prix. Lorsque les pénuries d’approvisionnements se sont véritablement fait sentir, les contrats avaient déjà été accordés. La bonne fortune a été aidée par une action rapide. En mars 2006, lorsque les dirigeants de la compagnie ont vu June/July 2009 | 41

mine en vedette dit Hallbauer. « Notre minerai est à faible teneur, nous devons nous assurer que nous sommes dans le bas de la courbe des coûts et la seule façon de ce faire est d’avoir des équipements modernes. Les coûts moindres d’exploitation se traduiront aussi par un retour immédiat sur l’investissement. »

Photo courtoisie de Taseko Mines

La Phase III en attente

Cellules de flottation à Gibraltar

la montée des prix du cuivre, ils ont fait approuver les plans d’expansion et se sont mis à l’œuvre. À la fin de mai de la même année, Taseko avait accordé le contrat de construction d’une installation de broyage semiautogène. L’installation de 24 pieds serait plus efficace que l’ancien broyeur à barres et à boulets et permettrait à Gibraltar de presque doubler sa capacité de broyage, accompagné d’une augmentation correspondante en récupération de cuivre. « Avec un bon minerai, le moulin pourra traiter jusqu’à 60 000 tonnes par jour », dit M. Hallbauer.

Abaisser le coût des opérations La prochaine étape de la modernisation consistait à remplacer les 96 cellules de flottation, datant des années 1970, par 10 cellules Outotec de 150 m3, permettant d’abaisser encore plus les coûts d’exploitation. Le nombre moindre de cellules entraîne aussi moins de pompes et moins de maintenance. Le remplacement constituait en lui-même tout un défi d’ingénierie car la production continuait tout au cours de l’expansion. « C’est un peu comme renouveler la cuisine d’une maison pendant que la famille continue à utiliser le réfrigérateur et à cuisiner les repas », dit M. Hallbauer. Avec un coût de 76 millions de dollars pour le concentrateur, Taseko était bien motivé pour prolonger la vie de la mine. La compagnie a entrepris deux vastes programmes de forage en 2007; les résultats ont été très prometteurs, augmentant les réserves de 149 à 200 millions de tonnes, puis à 500 millions de tonnes. Selon M. Hallbauer, la durée de vie de la mine est de 25 ans, basé sur une capacité de traitement de 55 000 tonnes par jour. À la fin de la première phase et de bons prix pour le cuivre, la compagnie a aussi décidé de renouveler les véhicules de surface. « Les vieux équipements partiront éventuellement », 42 | CIM Magazine | Vol. 4, No. 4

La première phase d’expansion et les mises à jour des équipements ont coûté 250 millions de dollars. La Phase III, d’un coût de 350 millions de dollars, aurait augmenté la capacité de la mine à 85 000 tonnes par jour et ajouté un nouveau circuit de récupération du molybdène. Cette phase avait été approuvée l’an dernier; un communiqué daté du 13 mai 2008 annonçait que seulement 30 pour cent des coûts aurait été financé par les marchés de la dette. « Cependant ces estimés étaient basés sur un prix du cuivre de 3 $/lb », explique M. Hallbauer. « Lorsque le prix du cuivre a chuté à 1,70 $, puis à 1,20 $, nous n’avions plus accès aux marchés du crédit. Il était devenu difficile non seulement de continuer nos projets d’immobilisations mais aussi de s’assurer de payer nos dépenses et nos fournisseurs. » Les deux premières phases de construction ont été effectuées par des employés de Taseko. La compagnie a augmenté le nombre de ses employés de 330 à 470 à la mine Gibraltar. « Nous étions à former des gens lorsque la structure des coûts nous a dépassés. Avec la chute du prix du cuivre, nous n’avions plus les liquidités pour poursuivre nos projets d’expansion et nous avons dû effectuer des mises à pied. M. Hallbauer n’écarte pas la possibilité de revoir les plans d’expansion dans le futur; mais il dit que la compagnie devra voir des preuves d’un prix élevé soutenu pour le cuivre. Dans le moment, les marchés ne semblent pas prêts à cela et Taseko cible plutôt l’optimisation des installations existantes afin d’avoir un rendement maximum. En ce qui concerne de nouvelles expansions, M. Hallbauer ajoute que Taseko regarde du côté de sa propriété minière cuivre-or Prosperity. Actuellement en attente des permis environnementaux, Prosperity pourrait commencer la construction au printemps 2010. Taseko recherche actuellement des partenaires pour aider à financer le projet, lequel promet de devenir l’une des plus grosses mines d’or au Canada. « Les gens ne réalisent pas que la mine Gibraltar est la plus grosse mine de cuivre au Canada, avec les réserves les plus durables de toutes les mines à ciel ouvert au pays », signale M. Hallbauer. « Notre production totale de métal n’est pas extraordinaire parce que notre teneur d’alimentation est plus basse que celle de nombreuses autres mines. Cependant, notre structure physique, soit un débit de 55 000 tonnes par jour au concentrateur, fait que nous sommes une grosse mine. » « Gros » semble être le mot d’ordre de la compagnie Taseko. ICM

eye on business Court blocks hostile takeover bid The risks of misuse of confidential technical information ❚ Berkley D. Sells and Chuck Higgins Confronted by a hostile takeover bid, target companies often employ various defensive tactics against the bidder. Some better known tactics have colourful names (e.g. “The Nancy Reagan Defence” when the target company’s board recommends that shareholders “just say no”). In countering an unusual hostile takeover bid launched by Rusoro Mining Ltd., Gold Reserve Inc. needed an extraordinary remedy: a court-ordered injunction against the bid ordered by an Ontario judge. The defendant, Endeavour International Financial Corporation, was also enjoined from having any involvement with the hostile takeover bid. This case was described in the March/April 2009 issue of CIM Magazine (p. 14). On April 6, 2009, another Ontario judge refused to permit the defendants to appeal the injunction order.

Background to the bid Endeavour had acted as Gold Reserve’s financial advisor for four years, until shortly after Rusoro launched its hostile bid, and were granted access to significant Gold Reserve confidential information. Agreements between Endeavour and Gold Reserve contained covenants preventing Endeavour from knowingly acting against Gold Reserve’s interests in a material way, as well as a requirement that Endeavour inform Gold Reserve of any potential conflict of interest. Rusoro engaged Endeavour to act as its financial advisor in 2007, and in August 2008, it made a friendly offer to acquire the shares of Gold Reserve — an offer that was declined. On December 15, 2008, Rusoro launched a hostile takeover bid for Gold Reserves’ shares. Gold Reserve regarded the bid as being tainted by Endeavour’s possession of Gold Reserve confidential information and

began proceedings against Endeavour and Rusoro in December 2008, seeking injunctive relief and damages.

The injunction On February 10, 2009, Mr. Justice Cumming noted that: “The practice of the mining industry reportedly is that confidential information is not provided to any third party in the absence of a confidentiality agreement. If it is anticipated that the recipient of the confidential information might be in a position to make an offer to acquire the shares of the mining company, then the confidentiality agreement typically also contains additional socalled ‘standstill’ provisions, that is, the company receiving the confidential information will not acquire the shares of the disclosing company for a specified period of time.” The judge noted that the same people at Endeavour advised both Gold Reserve and Rusoro. He found that: “There is a serious issue established that Endeavour breached the express contractual terms of the Second Advisory Agreement and its implicit duties of loyalty and maintaining confidence as a professional advisor to its client…by acting as expert financial advisor to Rusoro’s hostile takeover bid…A person in Endeavour’s position must avoid conflicting interests and must not act against the interests of the person confiding in him by utilizing confidential information without the informed consent of that person. Rusoro is arguably liable as a knowing and willing recipient of these services in breach of Endeavour’s duties to Gold Reserve.” Justice Cumming also held that fiduciary obligations (including that of loyalty) can arise even without a confidentiality agreement and can exist in professional advisory relationships.

Lessons learned In seeking permission to appeal Justice Cumming’s decision, Endeavour stated that it regards the decision as having far-reaching implications including: (a) for all advisors in receipt of confidential information; and (b) with respect to what measures should be put in place before an advisor acts for a client’s competitor. The Gold Reserve litigation certainly provides an important lesson for professional advisors regarding how to handle confidential information and the risks associated with failing to take all appropriate steps to protect such information. It also provides not merely an example of when the courts will intervene to stop a hostile bid from proceeding but also valuable guidance as to the factors that companies and their professional advisors should consider when establishing the scope of services and their respective duties to each other. The complete decision of the Court on the injunction motion can be seen at www.goldreserveinc.com. CIM

About the authors Berkley Sells (left) is a partner in the Toronto litigation department of Fasken Martineau DuMoulin LLP. He practices civil litigation with a focus on commercial disputes and matters involving injunctions and other extraordinary relief. Chuck Higgins is a member of the global mining group at Fasken Martineau. He provides advice to Canadian and international mining and energy companies and investment dealers. June/July 2009 | 43

HR outlook Match-making: Aboriginal Peoples and the mining sector Take advantage of the possibilities ❚ Melanie Sturk Despite the current industry lull, shortages of skilled mining professionals are expected to persist in the medium to long term. This is because of the large number of baby boomers retiring and individuals leaving mining to work in other sectors that will have to be replaced. Through its labour market forecasting work, the Mining Industry Human Resources Council continues to forecast the need for great numbers of skilled workers across Canada over the next decade. “The recent economic downturn has merely lowered projections of the number of skilled workers the mining industry will need to replace,” said Ryan Montpellier, executive director, MiHR. “But we’re asking employers to keep moving at full steam on inclusion initiatives; the shortage still stands in the tens of thousands and we collectively need to start working on a solution now.” As commodity prices recover over the next few years, mining companies will be under renewed pressure to recruit and retain individuals with the appropriate skill sets and motivation to work in the industry. MiHR is collaborating with the industry to develop and execute hiring programs to attract a non-traditional workforce, including Canadian youth, women, visible minorities and Aboriginal people to participate in this high-paying sector. Aboriginal men and women are ideally positioned not only to take advantage of these career opportunities, but also to assume a leading role in the industry. Many Aboriginal communities are located within close proximity to current mines and exploration sites across Canada.

Overcoming barriers to employment The mining industry — together with Aboriginal groups, government departments and community 44 | CIM Magazine | Vol. 4, No. 4

colleges — is working to help Aboriginal men and women obtain the skills necessary to pursue careers in the mining sector. In this regard, the industry has recently released two resources geared towards inclusion — the “Mining Industry Human Resources Guide for Aboriginal Communities” and “Mastering Aboriginal Inclusion in Mining.”

Creating inclusive workplaces Mastering Aboriginal Inclusion in Mining is a rigorous management tool developed to educate and equip mining companies with the knowledge necessary to recruit, retain and advance more Aboriginal workers. “Mining is one of the largest employers of Aboriginal Peoples in Canada and well positioned to be the industry leader that will help advance inclusion in Canada,” said Kelly Lendsay, president and CEO, Aboriginal Human Resource Council (AHRC). Mastering Aboriginal Inclusion (MAI) is a world-renowned program strategy developed by AHRC, Canada’s leading innovator in Aboriginal recruitment, retention and advancement. It is comprised of reference modules, workshops and incompany training and assessment tools, and is designed to help transform organizations to be inclusive. MAI in Mining is the first customized series of Aboriginal inclusion resources for the mining sector developed in partnership with MiHR. The resource modules and MAI in mining workshops help companies become employers of choice for Aboriginal talent.

The workshops and in-company training are available through the AHRC website (www.aboriginalhr.ca).

Engaging communities The Mining Industry Human Resources Guide for Aboriginal Communities provides students, teachers, career counsellors and leaders in Aboriginal communities with detailed information on the numerous career opportunities available in Canada’s mining industry, as well as the training and education opportunities associated with those jobs. Divided into four sections that cover the main areas of mining — exploration, development, operations and site rehabilitation — the guide describes the activities, opportunities and training programs related to all occupations in the mining industry. The guide is also available online at www.aboriginalmining.ca.

Making the match Industry, communities and individuals benefit when employment is available locally. Connecting workers to jobs in their communities just makes sense. We invite you to make use of these resources to facilitate the inclusion of Aboriginal Peoples in the mining industry. CIM www.mihr.ca

About the author Melanie Sturk, director, Attraction, Retention, and Transition at the Mining Industry Human Resources Council, is responsible for the initiatives that encourage new workers, particularly those from underrepresented groups, to engage in mining careers and that support the industry with enhancing workplace diversity.

supply side Canada’s economic base is narrowing towards natural resources A page for and about the supply side of the Canadian mining industry

❚ Jon Baird In the recent past, Canada’s economic performance was the envy of the world. We paid down debt despite cutting taxes, unemployment was low, and we had impressive trade and current account surpluses. Hidden in this, however, was the changing nature of our economic base, something that will likely continue in the next expansion, with implications for Canada’s currency, economic volatility and regional disparities. Over the few months leading up to December 2008, our goods trade deficit crashed from monthly surpluses in the $5 billion range to a deficit. In January, we registered another nine per cent fall in exports (led by a large decline in automotive products), imports fell 7.9 per cent, and the monthly trade deficit widened to $993 million. In March 2009, Canadian exports fell but imports were off even more, resulting in an increase in the trade balance to a positive $1.1 billion. Until December, Canada had run trade surpluses for 33 consecutive years. Certainly the speed of the decline relates to the current severe global recession. However, past recessions have not caused as large a swing in Canada’s trade position. While resource prices have fallen recently, the Bank of Canada’s commodity price index, when measured in Canadian dollars to line up with the trade data, is still at lofty levels relative to its level during the 1998 Asian crisis or the 2001 U.S. recession — periods in which Canada maintained a trade surplus. A decade ago, a number of sectors contributed to our trade surplus, including automobiles, rail cars, ships and furniture. By 2008, these were all in deficit, and trade

deficits in other products like clothing had widened materially. So, while the annual trade surplus was still very impressive last year, it rested solely on the ability of huge

Plan for mining by building unpaved roads and other infrastructure to open up the country’s vast, unexplored and untapped mineral wealth in its interior and the North.” Infrastructure unlocks resources, because it makes them more economic to exploit. The single greatest discovery in Canadian mining history is the nickel deposits in the Sudbury Basin. Had the Canadian Pacific Railway been routed differently, this development would at least have been delayed, if ever made. Francis concludes: “Canada must exploit its natural competitive advantages in order to retain living standards… Canada will never be a manufacturing powerhouse, a Silicon Valley North, another New York financial capital or a biotech giant.” Imagine the benefit to Canada’s mining suppliers if government decided that rather than bailing out failures, it was going to put in place new strategies to back winners like our mining industry! There is no other sector that Canada dominates internationally more than it does the exploration and mining sector. We should plan to make more out of this advantage. CIM

We should rejoice

in the fact that we are owners of such valuable resources and plan our economy accordingly. revenues from energy, minerals, metals and other commodities to cover the costs of importing just about everything else. Predictions are that a weak currency will not save our manufacturing sector. Even though recently our dollar is off 20 per cent compared to the U.S. dollar, it will likely recover once commodity prices rise again. Always correlated to commodity prices, the new, higher dependency on resources will cause our currency to rise ever more quickly once demand for commodities returns. Commodity prices are cyclical. This recession will not create any new supply for metals or oil. Indeed, reduced exploration and development spending will deplete supply projections for the first few years of the next economic recovery. So, we should rejoice in the fact that we are owners of such valuable resources and plan our economy accordingly. A March 7, 2009 article by Diane Francis in the National Post begins by stating “Canada’s best stimulus package would be to launch a Marshall

www.camese.org

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

June/July 2009 | 45

MAC economic commentary Industry issues and priorities A discussion with Gord Peeling ❚ Paul Stothart Stothart: Towards Sustainable Mining (TSM) is an important branding initiative for MAC and for the broader industry. How can it stay relevant to the industry of tomorrow? Peeling: TSM is a living tool; it is constantly evolving and its progress is driven by the active engagement of the Community of Interest Advisory Panel and company management committees. Guidance protocols are now being developed in areas relating to mine closure, biodiversity and Aboriginal relations. TSM remains the only management tool in the global mining industry that is facility-based — it helps to drive performance improvements at the mine and smelter level. This is an important advantage. Before the end of 2009, members will have some decisions to make with respect to TSM’s applicability to our Canadian members’ international operations.

MAC’s president, Gord Peeling, has occupied the national association’s corner office for almost a dozen years. During this period, the chairmanship has moved through Walter Segsworth of Westmin, John Carrington of Barrick, Jim Carter of Syncrude, Guy Dufresne of Quebec Cartier Mines, Richard Ross of Inmet, Peter Jones of HudBay Minerals, and Jim Gowans of De Beers Canada. Drawing on years of experience both as a senior government official and in industry, his knowledge of the Canadian mining industry and surrounding public policy is encyclopedic. I took the opportunity recently to talk with Gord about a range of issues faced by the Canadian industry.

“In Canada, we need infrastructure investment both to improve access to resources and access to markets.”

Stothart: The industry always seems to face an array of interesting challenges relating to the economy and the environment, as well as the social sphere. What do you see as the key issues facing the industry today? Peeling: Surviving the recessionary period is the key issue at present. In our industry, there is not a whole lot that the government can do on this front. The mineral price rebound, when it comes, will be global and will be driven by developments in China, then the United States, Europe and elsewhere. Government stimulus spending, particularly investment in infrastructure, will help. In Canada, we need infrastructure investment both to improve access to resources and access to markets. Beyond toughing out the recession, industry needs to remain cognizant of where its future workforce will come from. This will be an increasingly important chal46 | CIM Magazine | Vol. 4, No. 4

— G. Peeling

lenge over the coming decade. For their part, governments must improve the project review and permitting processes. At the federal level, there remains a need for timelines and more efficient oversight of each department’s responsibility, as well as better harmonization with provincial processes.

Stothart: Companies, including many MAC members, are presently in a “batten down the hatches” mode of operation. How do you see prices evolving over the coming year? Is there light at the end of the tunnel? Peeling: The cyclical nature of our industry presents unique challenges. In an ideal world, companies would invest in a downturn when costs are lower as it takes many years to move resource projects through the permitting and construction stages. Unfortunately the financial sector woes and depth of the global recession make this a very difficult challenge that only companies with excellent projects and adequate cash reserves can meet. I believe there is light at the end of this tunnel. Industry has had a difficult 2008 fourth quarter and first quar-

MAC economic commentary ter of 2009. Prices are weak, yes, though not at historical lows. However, volumes are also soft, reflecting the global recession, and it is the combination of weak prices and low volumes that is causing liquidity challenges for industry. My view is that the global demand situation is taking a pause from what remains a longerterm period of growth. This will be seen through increased consumer demand from China. Modest growth in the United States and Europe in 2010, and sharper recoveries in 2011, will also contribute to improved conditions for our industry. Stothart: The government recently released its position paper on the international corporate social responsibility issue. Was MAC pleased with the government response? Are there any hidden pitfalls awaiting companies in this area? Peeling: We are pleased that the government has finally responded, as this particular issue has dragged on for over two years. The response reflects much of what the stakeholders sought but takes a different approach with respect to the roundtable recommendation of an ombudsman function. Certainly the international sphere will remain an important focus of non-government organizations in the

years to come. NGOs will monitor the performance of global mining and exploration companies and they will critique how this performance is affecting the environment and human rights in foreign countries. As I mentioned earlier, we will have some decisions to make regarding the appropriate role that TSM should play alongside the range of international social-license tools that have emerged in recent years. CIM www.mining.ca

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

June/July 2009 | 47

innovation Highly Qualified People A key resource to drive innovation in mining ❚ Malcolm Scoble When it boils down to it, enterprise is all about people. We are increasingly recognizing the critical contribution of talented people to our mining community. This is reflected in the emergence of the term Highly Qualified People (HQP) within the strategic vision of the Canada Mining Innovation Council (CMIC). HQP are those upon whose technical, business and social skills the operational integrity and leadership of the Canadian mining industry is dependant. Their skills, competence and motivation result from a combination of educational and training experiences, ranging from secondary through tertiary education; employment training and experience; and lifelong learning. Consultations within the mining community during the evolution of CMIC made it apparent that HQP were viewed as being fundamental to growing and maintaining an outstanding innovation culture. The key to developing our human resources was recognized to lie in the pursuit of education, training and research activities oriented to serve the mining industry. Close collaboration between industry, government, academic and societal groups was considered critical to fostering innovation, a need that CMIC is well-oriented and equipped to meet. It was thus natural to form a working group within CMIC focused on HQP-related research, initiatives and strategies. The HQP working group will address various disciplinary sectors within the Canadian mining industry, from exploration through mining to downstream processes, with a current strategy of five initiatives.

Early actions towards an effective counter-cyclical HQP strategy In the past, in response to market downturns, mining companies tended to shed HQP and permanently lost that talent while mining school enrol48 | CIM Magazine | Vol. 4, No. 4

ments often suffered decline. This historical record needs to be recognized and broken through an effective counter-cyclical strategy to ensure that Canada’s mining HQP base (including within the mineral exploration sector) is not eroded by the current economic downturn, and to maintain student confidence and interest in miningrelated education and the industry.

working group will work with these other groups to develop a coherent and integrated CMIC strategy for new funding for targeted mining research from existing federal, provincial and territorial government programs. The objective is to expand support for research that will ensure the development of future HQP in key specialist areas.

Mapping the mining HQP base Improved industry-academia engagement Greater value can be drawn from existing institutional structures, especially from industry advisory committees at centres of mining education across Canada. During 2009, the working group is organizing events at high-profile venues (like the CIM Conference and Exhibition), to bring industry, government and mining school representatives together to address the need for improved engagement and collaboration.

Fostering co-operative mining education Well-designed co-op education programs are proven to enrich the postsecondary educational experience. In addition to positive educational outcomes for students, they can bring important short- and long-term benefits to the industry. Beginning in mid2009, the HQP working group will work to increase and broaden industry participation in co-op programs.

Strengthening the HQP research base Adequate investment in people is fundamental to strengthening Canada’s mining HQP base in R&D. There are obvious synergies to build with the research being planned by other CMIC working groups. During 2009, the HQP

The CMIC HQP working group is collaborating with the Mining Industry Human Resources Council (MiHR) on research that will map Canada’s mining HQP stocks and flows today and into the future and identify best practices in HQP attraction, retention and development. Unfortunately, we currently have little knowledge and understanding of what shapes peoples’ career paths into and within mining. The determining factors may be motivation, expectations, skills, training, professional development, career navigation and experiences. These five initiatives by CMIC’s HQP Working Group represent a unique effort to understand the nature of our highly qualified people. They will address the recruitment, retention, education and professional development of this key human resource with the ultimate aim of fostering the optimum technical, business and social qualities required to drive innovation excellence in next-generation Canadian mining. CIM www.cmic-ccim.org

About the author Malcolm Scoble holds the Robert E. Hallbauer Chair in Mining and Sustainability in the Norman B. Keevil Institute of Mining Engineering at the UBC. He is a member of the board of directors of MiHR and of the Canada Mining Innovation Council.

student life Fired-up talent Industry has much to gain from supporting research at Canadian campuses ❚ Simon David Craggs

Simon in the Bellekeno underground works at Alexco Resource Corp’s Keno Hill mine, Yukon

The economic downturn over the past year has resulted in hard times for the mining industry. As a result of fewer job opportunities, many are turning to academia to weather the storm. However, government spending cuts to science programs at universities, particularly on the East Coast, have resulted in NSERC grants being reviewed and often cancelled for many projects already in progress. With government spending on the wane, there could not be a more important time for industry involvement with university programs. My experience working on government- and industry-sponsored projects has generally been very positive, and the support offered by the sponsor of my ongoing PhD project, Alexco Resource Corp., has been exceptional. However, for many students, this unfortunately is not always the case.

While doing research for a consortium of oil companies, I was warned off working in the mining industry by a colleague who said that mineral exploration companies are narrowminded and don’t care about the bigger regional story behind ore body formation. He said that when the oil and gas companies have a bit of spare cash they invest in new technologies and techniques to better define their targets. The mining industry, on the other hand, he claimed, invests in bigger machines to dig the mountain out more quickly. Clearly, my colleague’s comment was made with tongue placed firmly in cheek, and it is not a statement that I entirely agree with. However, the mining industry would do well to take a leaf out of the oil and gas industry’s book. The advantage of strong industry involvement in university programs is clear — while undergraduate and graduate students are by no means the finished article, their enthusiasm to learn could not be stronger. As such, for a relatively small outlay per year, companies can play an active role in the development of potential employees. In addition, the mining industry should not automatically dismiss research that is at first glance purely academic. Cutting-edge technologies often arise from seemingly innocuous projects that have no apparent direct impact on the industry. While industry partners commonly look for an answer to a specific problem, sponsorship of a project will often result in additional information that will add to the understanding of their prospect. Alexco Resource Corp. was looking for a structural geologist to understand fracture geometry and how it interacts with mineralization at its Keno Hill Ag-Pb-Zn mine in the Yukon. They have been very support-

ive of my efforts to understand the timing and regional controls on ore body formation. The company appreciates that the key to the discovery of additional ore bodies lies in understanding the structural controls on ore body formation. The answer to this question will form part of my thesis, but in addition, Alexco will gain insight into the regional tectonics and geo/thermochronology of the district. While this may appear to be unnecessary for the company, it is essentially free information, and the more information one has about a region, the more accurately one can target new areas for exploration. While the industry as a whole does appear to be changing and sponsorship is improving, the use of structural geology techniques as a means to better defining ore bodies and targets is still sadly underused. As a structural geologist I have a clear bias and it would be remiss of me to suggest that structural geology is the be-all and end-all of mining geology. However, it is imperative that mining companies use an amalgamation of geochemistry, mapping and stratigraphy, structural and engineering geology, and other branches of geosciences to refine their targets and ultimately save money. Investment in industry-specific university projects at all levels can only help with this. CIM

About the author Simon Craggs is a first-year PhD student in structural geology at the University of New Brunswick. He graduated with a BSc (Hons) from the University of Leeds (UK) and an M.Sc. from UNB. He has also worked for the Fault Dynamics Research Group at Royal Holloway University of London and is the current president of the Geological Association of Graduate Students at UNB. June/July 2009 | 49

safety They also serve who stand and watch A culture of vigilance and respect secures safety award ❚ Ryan Bergen

Employee Jack Parlee (left) reviews an observation with a fellow worker Steve Otis.

PotashCorp’s operation in Sussex, New Brunswick, has developed a knack for even numbers: 2004, 2006, and with the nice round figure of zero (the number of reportable injuries), it can also claim that it is the best of 2008. Last month, at the CIM Conference and Exhibition in Toronto, the mine was awarded the John T. Ryan Trophy in the select mine category, in recognition of its unmatched safety record. The shaft mine, about 70 kilometres northeast of Saint John, runs 24 hours a day, seven days a week, and turns out 800,000 tonnes of potash and another 600,000 tonnes of salt each year. There was not a single reportable injury among its over 400 permanent and contract workforce last year. “Everyone takes a great deal of pride in that award,” said Mark Fracchia, general manager of the Sussex operation. About six years ago, they put a behavioural safety 50 | CIM Magazine | Vol. 4, No. 4

process in place at the mine to complement the existing safety programs. Since then, the operation has established itself as a national leader in safety. The process succeeds because it is not based on hindsight, explained Fracchia. “A mechanic may observe two or three other mechanics who are conducting preventive maintenance on one of the mining machines. He’ll look to see whether they are working safely, using the right equipment, and using the equipment properly; he’ll note that on the observation card and then offer feedback. If he notices someone doing an at-risk behaviour, he will try to get a commitment from that individual to work safely.” In addition, said Fracchia, “a facilitator gathers data and isolates trends that could result in an injury. Then we come up with action plans to try to remedy these before somebody gets hurt.” The peer observation system means that the safety behaviours of

each employee are observed about once a month. Workers, however, are not constantly looking over their shoulders, said Fracchia. “It’s a noname, no-blame process.” The reinforcement between employees is positive, he explained. “They’ve taken ownership of safety and don’t just rely on the safety professionals at the site.” The Sussex mine is not unionized. Fracchia credits the fraternity that extends beyond the workplace as a safety cornerstone. “We have an experienced workforce — the average age is 49. And people look out for each other. Most of the employees have been here since the start of the operation. They’ve grown up with each other.” Despite the absence of reportable injuries last year, Fracchia insisted that there are still opportunities for improvement. The committee that oversees the John T. Ryan award process defines reportable injuries as ones that send a worker home or to the hospital, but also any that compel an employee, though he remains at work, to abandon his usual duties for some lighter or modified task. At the Sussex operation, even a trip to a first-aid station for a bandage is recorded, said Fracchia. With these criteria in place, he said, the mine had 2.11 reportable injuries per 200,000 work hours in 2008. “We are doing great. I don’t want to diminish our accomplishments, but our goal is to continually get better.” The peer-oriented safety process at the Sussex mine was one of the first to be implemented in PotashCorp’s Canadian operations, and it has since been adopted by the other potash divisions within the company. It has also been implemented at the company’s nitrogen and phosphate operations in the United States. CIM www.potashcorp.com

George, Charley and Jim The unlikely friendship behind the Klondike Gold Rush ❚ Ryan Bergen

Close encounters When George Carmack met the Tagish men Keish and Káa Goox in 1886, the 25-year old was just scraping by. The sweetheart he’d left the year before in California had thrown him over for another. Limited work prospects in Juneau, Alaska, meant he couldn’t survive, let alone save up for a season of prospecting. So Carmack headed up Taiya Inlet to Dyea, the gateway to the Chilkoot Pass, to hunt and fish and maybe find a job for the summer as a guide. Keish (also known as Stick or Skookum Jim) and his nephew Káa Goox (or Tagish Charley) had come

to the village to trade their furs after a winter of hunting and trapping. In the summer, they packed supplies over the pass for ambitious prospectors in search of the next big strike. Keish had earned the Chinook tag “Skookum” for his legendary strength — he could scramble up the boulders of the pass with 150 pounds of supplies. All three spent the summer making the 100-kilometre round-trip to the first waterway leading to the Yukon River, earning ten dollars for every 100 pounds they hauled. Why the men became friends isn’t clear. Carmack’s job as a packer — a trade almost exclusive to natives — set him apart from his “sourdough” peers. The two Tagish men may have connected with Carmack because they were outsiders themselves. Not all natives in the area wanted to give up their claim to the traditional trad-

Káa Goox aka Tagish Charley aka Dawson Charley

Photo courtesy of Int. Harvester / Library and Archives Canada / C-025640

Photo courtesy of Library and Archives Canada/PA-053228

George Carmack

steamer with $35,000 each. The common number was the only hint that the lives and stories of these three men were bound together not only by gold but blood.

Photo courtesy of Int. Harvester / Library and Archives Canada / C-025639

he latest bout of gold fever had already broken when the New York Times reporter stepped onto the steamship Roanoke as it arrived in Seattle, loaded with miners and gold from the Klondike. By August 1898, the good claims on Bonanza and Eldorado creeks near Dawson City had long since been taken, the fastest money already made and the extravagant stories told. “Klondikers disappointed, few returning adventurers bring back gold dust on the Roanoke,” the story in the Times declared. At the bottom of the article was the nugget of a story, not enough to claim the front page. Among the catalogue of returning heroes and their spoils were the names of Stick Jim and Tagish Charley. They, along with George Carmack, “the discoverer of the Klondike,” stepped off the

Keish aka Skookum Jim aka James Mason

June/July 2009 | 51

ing route that more and more nonnatives were using each year. As packers for the foreigners, Keish and Káa Goox were eroding that claim. Carmack did not speak Tagish. With one another, they spoke a mix of English and a Chinook dialect that was the language of trade. Nevertheless, they hit it off, and when the season was over, Keish and Káa Goox invited Carmack to spend the winter with them in their village near Carcross, Yukon.

All in the family Despite being far removed from home, Carmack faithfully corresponded with his sister in California,

although he was not always faithful to the truth. He did not mention that he, by Tagish standards, had married one of Keish’s sisters. When she died soon after of influenza he married her younger sister, as was the custom. Shaaw Tláa became Mrs. Kate Carmack and lived and worked beside her common-law husband in his prospecting and trading ventures along the Yukon River. News of his daughter Graphie’s birth did not reach home either. Not all prospectors had such evenhanded relations with the First Nations. The most infamous and unfortunate bigot was Robert Henderson. In the days leading up to

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their big strike, Carmack, Keish and Káa Goox crossed paths with him twice. He, in fact, was the one who suggested they prospect where they did. He also managed to insult the Tagish men on both occasions. One such racial slight was only a couple of days old when the three washed a coveted “five-dollar pan” on Rabbit Creek. There they staked the first claims along the waterway they rechristened Bonanza Creek. The news of their strike in 1896 travelled around the world and set the “last great gold rush” in motion. Though Henderson was prospecting a few miles away, none of the men could be roused to tell him. CIM

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

cim news CIM welcomes new members Abbasy, Farzaan, Quebec Alberts, Edward, Alberta Ali, Farouq, Alberta Anctil, Lucienne, Quebec Anton, Tony, Alberta Archambault, Martin, Quebec Argent, Paul, British Columbia Artus, Andrew, Ontario Asad, Mohammad Waqar Ali, Pakistan Awoh, Akué Sylvette, Quebec Azam, Shahid, Saskatchewan Balfour, Mark, Australia Bard, Daniel G., New Brunswick Baribeau, Christine, Quebec Berger, Jean, Quebec Blanchard, René, New Brunswick Blevings, Scott, British Columbia Bodika, Didier, Quebec Boily, Sylvain, Quebec Bois d'Enghien, Victor, Ontario Bouchard, David, Quebec Boudreault-Tremblay, Stéphanie, Quebec Boulé, Vital, Quebec Breault, Kévin, Quebec Brissenden, Annemarie, Ontario Brown, Cameron, Saskatchewan Butcher, Bruce, Australia Cameron, Michel, Quebec Chen, Techien, Alberta Chowdhury, Mohsen, British Columbia Cleland, Noel, Alberta Coleman, Timothy, British Columbia Copley, Chris, British Columbia Dainoff, Iolanda Daniela, Romania Dave, Niraj, Ontario Delisle, André, Quebec Deschamps, Thomas, Quebec Doyon, Valerie, Ontario Dullaghan, Kevin, Ontario Dzakpata, Isaac, Saskatchewan Elkow, Kenneth, Alberta Engwayu, Jophat, British Columbia Gagnon, Claudie, Quebec Gaudet, Philippe, Quebec Gaudreault, Fabien, Quebec Gotts, Brian D., Saskatchewan Groskopk, Glenn, Saskachewan Groulx, Patricia, British Columbia Gunnewiek, Lowy, Ontario Haghighat, Parnian, Alberta Hakkou, Rachid, Morocco Helinski, Matt, Australia Hicklin, Roberta, British Columbia Hill, Michael, Ontario Hines, P.F. (Trish), Alberta Ho, Philip, Alberta Holmes, Michael, USA Hotar, Diana, Alberta

Hustad, Theresa, Alberta Islam, Shafiqul, Ontario Jespersen, Paul, Alberta Judd, Chris, Ontario Khatwa, Mohamed Abou, Manitoba Klassen, Darren, Saskatchewan Kongolo, Mukendi, France Kostiw, Darren, Alberta Kovacevic, Aleksandar, Ontario Kwasniewski, Ryan, Alberta Laarman, Jordan, Ontario Landry, François, Quebec Lang, Robert, Alberta Lauwereins, Daniel A., USA Liddiard, Andrew, Quebec Livingston, Colin, Alberta Lock, Alan, Ontario Lorrimer, Lesley, Ontario Lortie, Sylvain, Quebec Macameau, Ghislain, Quebec Maier, Gerald, Alberta Marteniuk, Jay, Ontario Martin, Gareth P., British Columbia Mathiba, Moagabo, USA Matteau, Isabelle, Quebec Mbonimpa, Mamert, Quebec McKenzie, Mary, Ontario McLellan, Patrick, Alberta McNalley, Staci, Alberta Melville, Ross, Alberta Miree, Heather, Ontario Munden, Edward John, Ontario Nash, Gary, Alberta Nolet, Isabelle, South Africa Oblasser, Angela, Chile

O'Neil Bouvier, Yves, Quebec Orr, Bryan, Alberta Osiowy, Kimber, Manitoba Ouattara, Drissa, Quebec Ouellet, Daniel, Quebec Pilotto, Dino, Saskatchewan Polson, Brayden, Ontario Reddy, Vijaykumar, Alberta Reyes, Manuel, Chile Sawyer, James, USA Silverberg, Shane, Ontario Sinclair, Coleman, Yukon Smith, Michael A., Ontario Snow, Gary, Newfoundland and Labrador Straw, Charles, British Columbia Straw, David, British Columbia Strobl, Rudy, Alberta Thompson, Gregory, Ontario Thornton, Steve, Alberta Trachsel, Amelia, Manitoba Verburg, Evan, Ontario Vincent, Eric, Quebec Welch, Phil, Alberta Westendorf, Michael, British Columbia Yalcin, Sevil, Ontario Zago, Matthew, Ontario

Corporate Members Ausenco Minerals Canada Domik Exploration Ltd. National Mine Service of Canada Resource Engineering & Maintenance Tex Tex Canada

June/July 2009 | 53

cim news On the comeback Trail CIM Trail Branch hosts successful kick-off event By Kris Heale On April 8, the CIM Trail Branch hosted its first meeting at the Italo Canadese Lodge after several quiescent years. CIM Distinguished Lecturer Carlos Díaz presented his enlightening and entertaining lecture on the “Evolution of Copper Smelting Practices in the last Four Decades” to 41 attendees from metallurgical, mechanical and electrical disciplines, ranging from students to retirees. The presentation stimulated a lively discussion on current and future trends in non-ferrous smelting. Judging by the enthusiasm of the participants and their feedback, the event was a success. The meeting was graciously supported by local employers AMEC and Teck Metals. The branch’s new executive would like to express their thanks to the event sponsors as well as the CIM national office for guidance and support and for the Distinguished Lecturers program. Thanks are also

A look back in time 20 YEARS AGO… • In his inaugural observations, CIM President John Laffin set before each member the goal of recruiting one new CIM member in the year, with the objective of strengthening the organization not just in terms of numbers, but also in terms of reach and relevance. • Robert Parsons, a partner at Price Waterhouse, Toronto, conducted an analysis of the taxation policies announced in the Budget, rapping the government’s knuckles for increasing the income tax burden while continuing to increase spending. • The historical metallurgy article by D.G.E. Kerfoot traced the history of the development of the Sherritt ammonia pressure leach process. • The advance program for the COM 1989 conference contained a brief but comprehensive and engaging write-up on the history of Halifax, Canada’s oldest English city. The site of COM 1989, Halifax was described as “the largest in Canada east of Quebec” and “no stranger to romance.” The above were taken from the June 1989 issue of CIM Bulletin. 54 | CIM Magazine | Vol. 4, No. 4

Left to right: Jessica Huza, Andrea Murland, Carlos Díaz, Marvin Neufeld, Michael Allan, Roberta Spence, Jim Popowich, Tony Heim, Lawrence Chow and Kris Heale

due to Michael Allan and Jim Popowich for taking the time to travel to the event to express their support. The branch executive is looking forward to hosting CIM past president Jim Gowans in June. CIM

Obituaries CIM expresses its sincere condolences to the families and friends of the following members: Earl David Dodson became a member of CIM in 1970 and attained life member status in 1999. He passed away in March. Ian L. Jennings passed away recently. He joined CIM in 1939 and became a life member in 1978. Chuck Newmarch, a life member of CIM, passed away last December. John William Patterson joined CIM in 1950 and became a life member in 1986. He passed away earlier this year.

Loss of CIM’s first female member CIM is saddened by the passing of Pauline Moyd on April 10, 2009. Born in 1916 in Brooklyn, New York, Pauline acquired degrees in geology from Barnard and Bryn Mawr colleges. After marrying fellow geologist Louis Moyd in 1939, she partnered with him, working as a consultant until 1965. In 1966, Pauline joined the Geological Survey of Canada, where she worked until her retirement in 1981. She joined CIM in 1954, becoming CIM’s first female member, and did much to raise awareness about the limitless potential and the barriers to the entry of women in mining. One of her most significant achievements was as the Organizing Secretary of the 24th International Geological Congress in Montreal in 1972 that brought together some 5,000 geologists from 115 countries. In 2004, Pauline was elected to the CIM Fifty-Year Club. She will forever have a special place in our history.

cim news CIM Montreal Branch gets energized CIM Distinguished Lecturer Gord Winkel delivers on innovation By Robbie Pillo On March 17, CIM Montreal Branch hosted CIM Distinguished Lecturer Gord Winkel at the McGill University Faculty Club. His engaging presentation, “The Innovative Imperative,” explored the history and trends in innovative mining practices and achievements. The interactive “true or false” session took the audience on a factfinding mission and addressed society’s expectations from the mining industry. Both students and industry representatives were captivated as Winkel discussed the importance of implementing a culture of innovation through responsible leadership. Nurturing a vibrant environment that engages talented people to drive innovative products and processes that create extraordinary value will strengthen a mining company and propel it forward, Winkel averred. Principled leaders make employees feel like they are at the very heart of things — everyone feels that he or she is making a difference to the success of the organization. When people feel that they matter, it gives their work meaning. Innovation leadership is an imperative towards a successful mining business. As a member of the Kearl Oils Sands Project Management team for Imperial Oil/Exxon Mobil, Winkel manages the integration of associated technologies, while developing experience with Exxon Mobil’s global management systems.

Gord Winkel (left) and CIM Montreal Branch Chair Richard Simon

He also is chair of the Canada Mining Innovation Council, which seeks to establish Canada as a global leader in the mining industry through leading-edge research and innovation. Winkel left an indelible mark on the crowd and inspired innovative thinking in those who might one day lead the global mining business towards higher standards and cutting-edge developments. CIM

La Section Montréal connaît un renouveau d’énergie L’éminent conférencier de l’ICM Gord Winkel innove Le 17 mars dernier, la Section Montréal de l’ICM a reçu l’éminent conférencier Gord Winkel au McGill University Faculty Club. Sa présentation The Innovative Imperative explorait l’historique et les tendances dans les pratiques minières innovatrices et les réussites. Sa session interactive de « vrai ou faux » a mené l’auditoire à rechercher des faits et a traité des attentes de la société envers l’industrie minière. Les étudiants et les représentants de l’industrie étaient captivés alors que M. Winkel discutait de l’importance de la mise en œuvre d’une culture d’innovation par un leadership responsable. Le fait de soigner un environnement de travail dynamique qui encourage des gens de talent à développer des produits et des processus novateurs qui créent de la valeur exceptionnelle renforcera une compagnie minière et la fera progresser, a stipulé M. Winkel. Des chefs responsables font ressentir aux employés qu’ils sont au cœur de l’action. Tous et chacun croient qu’il ou elle peut faire une

différence au succès de l’organisation. Lorsque les gens ressentent qu’ils sont importants, cela donne un sens à leur travail. Le leadership innovateur est un impératif pour réussir dans le domaine minier. En tant que membre de l’équipe de direction du projet des sables bitumineux Kearl d’Imperial Oil/Exxon Mobil, M. Winkel gère l’intégration de technologies connexes tout en acquérant de l’expérience avec les systèmes de gestion d’Exxon Mobil. Il est aussi président du Conseil canadien de l’innovation minière, lequel organisme cherche à positionner le Canada en tant que leader mondial dans l’industrie grâce à de la recherche et de l’innovation des plus pointues. M. Winkel a eu un effet indélébile sur l’auditoire et il a inspiré ceux qui pourraient un jour être les chefs des grandes mines mondiales à penser de manière novatrice afin d’amener leurs compagnies vers des standards élevés et des développements d’avant-garde. ICM June/July 2009 | 55

cim news Standardizing standards

Sponsored by:

CIM Distinguished Lecturer Clifford Stanley is passionate about raising the bar By Robbie Pillo The concept of standards is as old as human endeavour itself, reflected by the fact that it has been addressed in our earliest writings. Standards are vital to the life of any culture and business operation. In his lecture “Quality Assessment and Control in Mining and Mineral Exploration: A Modern Day How-to,” CIM Distinguished Lecturer Clifford Stanley addresses the need for consensus in establishing standards for quality control in mining and mineral exploration.

Standards for education After receiving his bachelor’s degree in earth sciences in 1980 at Darthmouth College, Stanley went to work for Anaconda Minerals, travelling across Canada, the United States and Mexico as a geochemist. After three years at Anaconda, the vast opportunities open to geochemists in Canada at that time led Stanley to the University of British Columbia (UBC) where he completed his master’s degree in geochemical exploration in 1984 and his PhD in mathematical geology in 1988. He then moved on to a post-doctoral fellowship in mathematical petrology at the University of Calgary and spent the following two years as a research associate in applied geochemistry at Queen’s University. He returned to UBC as an adjunct professor in the Mineral Deposit Research Unit (MDRU), managing two major consortium projects in economic geology and exploration geochemistry. In 1999, Stanley joined Acadia University, where he currently serves as professor in the Department of Earth and Environmental Science teaching mineralogy, geochemistry, geophysics and economic geology.

Standards for standardization In the course of his research and part-time professional consulting, Stanley realized that geoscientists faced many challenges in their work due to misconceptions and misapplications. Reflection led him to conclude one thing that seemed to be lacking was a clear set of defining standards. This realization became a call to action to which Stanley reacted. “I initiated research in quality control because I noticed that it was not being handled in a proper form, and 56 | CIM Magazine | Vol. 4, No. 4

there were many improvements to be made,” recalled Stanley. He added that overall lack of training in quality control has led to confusion and a lack of consensus. Standardizing practices and training employees in quality control resolves this confusion and can give mining companies exploring for minerals a clear path forward.

Standard for giving back Stanley’s love for learning and teaching goes beyond the confines of his classroom. As an active member of his local Rotary Club, Stanley has many duties: vocational service director, member of the board of directors and ticket-master of their principle fundraising event, a rubber duck race. As chair of the scholarship committee, he works to support the education of local high school students. Stanley considers one of humankind’s greatest gifts to be the ability to learn, and to keep learning new things. It is a value to which he holds true, saying with a twinkle in eyes, “Don’t kid yourself, I never left school.” Undoubtedly, it is this love of learning that motivates Stanley to share his lessons with others through CIM’s Distinguished Lecturer Program. CIM

cim news Where everybody knows your name One of CIM’s most active branches is also one of its friendliest and warmest By Robbie Pillo technical program featuring industry, government and Aboriginal leaders discussing the latest in human resources, exploration, mining projects and advances in mineral processing. CIM Newfoundland Branch members with Olympic Curling champion Brad Gushue at In addition, prethe Curling Bonspiel. conference short Anyone who has travelled to courses will offer valuable insights to Newfoundland and Labrador can attest geologists and prospectors. Guests will that the climate and terrain on “The be treated to local customs like the traRock” can be downright unforgiving. ditional Newfoundland Kitchen Party Its people, on the other hand, are and the Curling Bonspiel. famously hospitable. The CIM Lasting commitment Newfoundland Branch in St. John’s, for It was on February 12 and 13, 1953, example, is home to the most generous, that the Newfoundland group held its spirited and welcoming CIMers. The first meeting at Frost’s Restaurant in St. branch won the prestigious Mel Bartley John’s. Braving difficult travel condiAward this year. tions, delegates from all over the then Lasting opportunities four-year-old province flocked to St. The branch’s annual meeting, John’s to hear Premier Joey Smallwood’s famed for its down-home hospitality, opening presentation. is part of the Minerals Resources Branch status was granted to the Review, an important industry event group by CIM National in 1954 and its that has drawn delegates and new executive organized the first offiexhibitors for over 50 years. cial annual meeting on the first week“Delegates appreciate the unpreten- end of November that year. The branch tious atmosphere,” said Lawson has organized meetings every year, Dickson, a member of the organizing without missing a beat, ever since. committee. “It’s like coming home.” For over 30 years, the Mines Minerals Resources Review has long Branch of the Government of been Newfoundland’s preeminent minNewfoundland and Labrador’s ing and mineral exploration conference Department of Natural Resources has and tradeshow. In recent years, it has been involved with the conference, also become the largest mining show in organizing a full day of pre-conference Atlantic Canada, attracting over 600 poster sessions and presentations on delegates in 2008 alone. This year, the current research and prospecting conference will be held at at the Delta information. “Both organizations benSt. John’s Hotel, from November 5 to 7, efitted greatly from this partnership. 2009. It is shaping up to be another The conference has gained more expoimpressive event, with a three-day sure and expanded its sessions to

provide targeted value and information, encompassing all the various elements of the industry,” said Norm Mercer, Mines Branch representative on the organizing committee. In recent years, the Mines Branch and the CIM Newfoundland Branch have combined their efforts and rebranded the meeting into what is now known as the Minerals Resources Review.

Lasting impressions Providing support for the next generation of industry professionals is a key priority for the Newfoundland Branch. Each year, it awards up to $5,000 in scholarships and bursaries to local college and university students. The branch also donates to other organizations like the Alexander Murray Geology Club at Memorial University and the Matty Mitchell Prospectors Resource Room. Securing student involvement has not been difficult because, as Dickson said, “students are eager to get involved.” This year, the branch has partnered with the Geological Survey of Newfoundland and Labrador to purchase, prepare and distribute new rock and mineral teaching kits to the province’s schools. In 2008, the branch tracked down its last surviving founding member, Edward M. (Obbie) Martin, who had just turned 101. A small reception was held in his honour at his convalescent home where, in front of family and friends, he received an Honorary Membership, the branch’s highest honour. As Dickson observed, “You never really leave the branch.” Getting to a place that is sometimes referred to as the “edge of the earth” is in fact quite easy; it’s leaving that is hard. The CIM Newfoundland Branch and its people stay with you long after you leave them. CIM June/July 2009 | 57

cim news A force of nature A conversation with CIM past president René Dufour, winner of the Vale Inco Medal By Robbie Pillo

Left to right: Parviz Farsangi, executive vice president and COO, Vale Inco Ltd.; René Dufour; and Jim Gowans, CIM past president

In recognition of a lifetime of contribution to the resources industry, CIM past president René Dufour was recently honoured with the Vale Inco Medal, one of CIM’s most prestigious awards. His eloquent acceptance speech reflected his commitment to the industry and its development. Dufour’s passion for knowledge-sharing and professional development has driven his many achievements. At 78, he is an indomitable force, still pushing the industry to achieving ever higher levels of distinction. Dufour, whose legacy is a source of inspiration for future generations, spoke to CIM of his life and times. Here are excerpts from the conversation. CIM: How did you feel about wining the Vale Inco Medal? Dufour: I could not believe it! It is awarded to very industrious people and I am honoured to be considered one of them. This medal holds additional significance for me. I was invited twice by the Ouro Preto School of Mines of Brazil to conduct a two-week intensive course on open-pit mining for the school’s professors and students. The course was repeated for practicing engineers, many who were from Vale Inco. CIM: How did you get involved with mining? Dufour: I am the second child in a family of 17 from the Saguenay region of Quebec. My family did not have money and the Ministry of Natural Resources and Wildlife offered a $750 bursary — an enormous amount at that time — to those who opted for mining engineering. It was an easy decision to make. 58 | CIM Magazine | Vol. 4, No. 4

CIM: What is your greatest professional achievement? Dufour: In 1988, I was head of the Mining Engineering Department at École Polytechnique de Montréal and CIM president. The department learned that both the Polytechnique and McGill University, the only two universities offering mining engineering in Montreal in French and English, respectively, might have their mining programs suspended. Something had to be done. A joint PolytechniqueMcGill bilingual co-op program was created, which allowed students from one university to spend a semester at the other and benefit from learning a new culture and language. As part of the program, students were employed for three work terms, gaining a head-start in meeting the needs of the industry. We also worked hard to raise $1.2 million to support two professors’ salaries at each institution. In addition, in 1970 I received the CIM Past Presidents’ Memorial Medal. It is awarded to a person, under 45 years of age, who sets an outstanding example to students. Students are this industry’s future. I believe we need to provide the opportunities for them to succeed. CIM: You have done so much for mining industry and the community? What keeps you going? Dufour: I really appreciate the work I have done with CIM. I have met so many fantastic and talented people. It’s in my nature to want to do more, to know more. Even though I am retired, I still spend most of my evenings looking over files and reading up on the latest news — not just about the mining industry — I am never tired of learning something new. CIM: In 1972, you and four other members founded the Canadian Mining and Metallurgical Foundation (CMMF), over which you presided from 1991-97. What is its role today? Dufour: CMMF supports education, innovation and training to promote and sustain a thriving industry through knowledge-sharing and professional development. It invests in initiatives that reverse the current trend of disaffection towards our industry. CIM: You are a pretty busy man. How do you do it all? Dufour: My wife Cécile has been my greastest supporter. She has been right there with me, helping out wherever she could. I could not have done it alone. Cécile is the queen and the soul of our family. She has raised our four wonderful children, three of whom are now engineers and the fourth obtained a PhD in philosophy at the Université ParisSorbonne in France. CIM

calendar CIM EVENTS

AROUND THE WORLD

Crowsnest Branch Annual Golf Tournament and CIM Scholarship Fundraiser June 25 Fernie, British Columbia Contact: Chris Ryan Email: chris_ryan@elkvalleycoal.ca

2009 Canadian Mining Law & Finance Conference June 15-16 Vancouver, British Columbia Contact: Linda McLachlan Tel.: 416.367.3467 Email : lmclachlan@cambridgeforums.com Website: www.mininglaw.ca

Trail Branch Meeting Presentation by Jim Gowans June 25 Contact: Marvin Neufeld Email: marvin.newfeld@teck.com Red Lake Branch Meeting Presenter: Ian Russell, Rubicon Minerals June 18 Red Lake, Ontario Contact: Mollie Isaac Tel.: 807.735.2077 Email: redlake@cim.org North Central BC Branch Annual General Meeting June 25-26 Prince George, British Columbia Contact: Greg Rasmussen Email: gregrasmussen@gmail.com Red Lake Branch Annual Golf Tournament Red Lake Golf and Country Club July 18 Balmertown, Ontario Contact: Mollie Isaac Tel.: 807.735.2077 Email: redlake@cim.org The Sudbury Branch Rudolph Kneer Memorial Golf Tournament Lively Golf and Country Club August 8 Lively, Ontario Contact: George Darling Tel.: 705.691.1812 Email: george.darling@stantec.com Conference of Metallurgists, COM 2009 ConfĂŠrence des metallurgists, COM 2009 August 23-25 Sudbury, Ontario Contact: Brigitte Farah Tel: 514-939-2710, ext. 1329 Email: bfarah@cim.org Website: www.metsoc.org

IFRS: Key Concerns for the Oil and Gas Industry June 16-17 Calgary, Alberta Contact: Ron Taylor Email: rtaylor@infonex.ca Website: www.infonex.ca Physical Separation â&#x20AC;&#x2DC;09 June 16-17 Falmouth, United Kingdom Contact: Barry Willis Email: bwills@min-eng.com Website: www.min-eng.com/physical separation09/ Materials Characterisation 2009 June 17-19 New Forest, United Kingdom Contact: Rachel Swinburn Email: rswinburn@wessex.ac.uk Website: www.wessex.ac.uk Central Asia Mining Congress 2009 June 22-24 Almaty, Kazakhstan Contact: Winnie Koh Email: winnie.koh@terrapinn.com Website: www.terrapinn.com/2009/camining ELECTROCOR 2009 June 24-26 Bologna, Italy Contact: Irene Moreno Email: imoreno@wessex.ac.uk Website: www.wessex.ac.uk EMC 2009 June 28-July 1 Innsbrooke, Austria Contact: Meetings department Email: GDMB@GDMB.de

June/July 2009 | 59

Premier

Diamond / Diamant

Gold /Or

Silver / Argent

Copper / Cuivre

Friends / Amis

Group of Companies Partnerships and Joint Ventures

Mining in Society / Les mines dans la sociĂŠtĂŠ

2008-2009 CIM Award Winners / Gagnants des prix d’excellence de l’ICM CIM Distinguished Service Medal Médaille pour services remarquables de l’ICM Samantha Espley, Sudbury, ON Vale Inco Medal Médaille Vale Inco René Dufour, Montreal, QC Selwyn G. Blaylock Medal Médaille Selwyn G. Blaylock Alastair J. Sinclair, Vancouver, BC Members Award / Prix des membres Francis P. Yungwirth, Timmins, ON Order of Sancta Barbara Ordre de Sancta Barbara Sheila Stenzel, Vancouver, BC Past Presidents’ Memorial Medal Médaille des anciens présidents Eira Thomas, Vancouver, BC A.O. Dufresne Award Prix A.O. Dufresne James J. McDougall Richmond, BC Coal Award / Prix du charbon Ken Chekerda Fort McMurray, AB Robert Elver Mineral Economics Award Prix d’économie des minéraux Robert Elver Keith N. Spence and William E. Roscoe, Toronto, ON McParland Memorial Award Prix commémoratif McParland Peter M. Tiley, Hamilton, ON Julian Boldy Memorial Award Prix commémoratif Julian Boldy David R. Lentz, Fredricton, NB Barlow Memorial Medal Médaille commémorative Barlow Julie A. Hunt, Hobart, Australia Tim Baker, Adelaide, Australia Derek J. Thorkelson, Burnaby, BC Metal Mining Society Award Prix de la Société de l’exploitation minière et des métaux Roy Slack, North Bay, ON

Syncrude Award for Excellence in Sustainable Development Prix Syncrude pour l’excellence en développement durable Iron Ore Company of Canada Montréal, QC Taking Flight Award Prix en plein essor Nicholas Callaghan Steve Dubyk Mel W. Bartley Award Prix Mel W. Bartley Newfoundland Branch St. John’s, NL Special Recognition Reconnaissance spéciale The Men of the Deeps CIM Distinguished Lecturers Éminents conférenciers de l’ICM George J. Kipouros, Halifax, NS Kelly Lendsay, Saskatoon, SK Engin Özberk, Saskatoon, SK Steven Scott, Toronto, ON Don Thompson, Fort McMurray, AB CIM Fellowships / Confrérie de l’ICM Michael Agnew, Hudson, QC Mahesh Chaturvedi, Winnipeg, MB Alan Davidson, Halifax, NS Ranbir Dhaliwal, Kamloops, BC David B. Dreisinger, Vancouver, BC Frank Kruzich, Montreal, QC Robert MacDonald, Sydney, NS Ian M. Masters, Fort Saskatchewan, AB Samuel K. McEwan, Fredericton, NB J.R. Robert Pronovost, North Bay, ON Leo Robert, Fort McMurray, AB Mahi Sahoo, Ottawa, ON Michael Sudbury, Oakville, ON District Distinguished Service Awards Prix de district pour services remarquables District 1 – Paul K. Smith, Halifax, NS District 2 – Marie Fortin, Québec, QC District 5 – Gordon Morris Edmonton, AB District 6 – John Norman Vancouver, BC

John T. Ryan Trophies Trophée John T. Ryan Metal Mines Mines des métaux Vale Inco. Copper Cliff North Mine Copper Cliff, ON Select Mines Mines sélect PotashCorp, New Brunswick Division Sussex, NB Coal Mines Mines de charbon Sherritt Coal, Sheerness Mine Hanna, AB Fifty-Year Club Club des cinquante ans Donald (Sandy) Allen, Peach Tree City, GA, USA David H. Anderson, Orillia, ON George F. Archibald, Victoria, BC Eddy N. Berdusco, Wawa, ON J.K.B. Booth, Mississauga, ON Robert J. Cathro, Chemainus, BC Glenn R. Clark, Cobourg, ON Donald A. Coughlin, Brampton, ON William H. Eatock, Surrey, BC Paul A. Filteau, Québec, QC Arthur R. Fraser, Sechelt, BC Robert S. Grindley, Mississauga, ON Maurice Hinton, Edmonton, AB Tor Jensen, North York, ON John W. Jewitt, Spokane WA, USA Kenneth R. Kay, Barrie, ON William Knight, Windsor, NL Nick R. Krpan, Calgary, AB W. Ralph Lewis, Vancouver, BC James W. MacLeod, Vancouver, BC John G. Mayman, Stella, ON Donald M. Morrison, Bayswater, NB Irwin S. Parrish, Arvada, CO, USA Norman R. Paterson, Toronto, ON Benno J.G. Patsch, Walnut Creek, CA, USA George E. Rodger, Coquitlam, BC Thomas W. Shaw, West Vancouver, BC George Stenning, Barrie, ON J. Olaf, Sund, Glenn Innes, NSW, Australia J. Gilham Tankard, Glenn Innes NSW, Australia June/July 2009 | 63

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Conference of Metallurgists Organizing committee Conference Chair Nathan Stubina, Barrick Gold Corporation

Visit Sudbury — the mining capital of Canada!

Technical Program Chair Ron Schonewille, Xstrata Nickel

As chair of COM2009, it is my pleasure to invite you to Sudbury this August. This year’s Conference of Metallurgists, held in conjunction with Nickel & Cobalt 2009, will take place at Laurentian University in Sudbury, Ontario, from August 23 to 26, 2009. The conference will be a unique opportunity to explore technological, scientific and strategic trends. Among the numerous attendees, there will be industry executives, representatives from universities and research institutes, design engineers, human resource professionals, plant operators, and environmental experts from all over the world. The technical program will highlight: mineral processing and applied mineralogy (UBC-McGill-UA Mineral Processing Symposium in honour of Professor Jim Finch), sessions on hydrometallurgical or pyrometallurgical processing of Ni-CoPGM materials, process control applications, materials, the environment, and management issues. We have lined up an exceptional selection of plenary and keynote speakers that include Samuel Marcuson of Vale Inco, John Redstone of VMD Desjardins, and our guest speaker, veteran diplomat Stephen Lewis.

TMS EPD Chair Rob Stephens, Teck Cominco Metals Ltd.

We are hosting several high-quality technical short courses as well as three industrial tours, a poster session and a student-Industry mixer. Spouses are invited to attend day trips around Sudbury and Manitoulin Island.

Trade Show Chair Dave Tisdale, Xstrata Nickel

See you at COM 2009. This will be a truly memorable event!

TMS Representative Adrian Deneys, Praxair, Inc. Sponsorship Chair Michael King, Metallurgical Society of CIM Short Course / Student Activities Chair Eduard Guerra, Laurentian University Industrial Tours Chair Jeff Chenier, Xstrata Nickel Companions Chair Maureen Stubina, Metallurgical Society of CIM Proceedings Chair Sina Kashani-Nejad, Hatch Poster Session Chair Mansoor Barati, University of Toronto

Publicity Chair Marcus R. Coffin CMP Representative Dominic Fragomeni, Xstrata Process Support

Nathan M. Stubina Barrick Gold Corporation COM2009 Conference Chair

MetSoc Staff Brigitte Farah, manager, meetings and administration Ronona Saunders, publications, marketing, and web Anne Brunet, administration assistant

Metals 2009 Trade Show

Registration

Sponsored by WorleyParsons, the Metals 2009 Trade Show will be held on August 24 and 25. It will feature exhibits by:

AMEC Americas

GECAMIN Ltd.

OLI Systems, Inc.

BESTECH

Honeywell Inc.

Outotec Canada Ltd.

Canada Kalprotect Inc.

Loesche GmbH

Cansolv Technologies Inc.

Limpact International Ltd.

Qualitest International Inc.

Dowa Metals and Mining Co. Ltd. FEI

METALEX

WorleyParsons Canada Xstrata Process Support

Nickelhütte Aue

www.metsoc.org/com2009

Save $100!

Technical Program ❏ Hydrometallurgy of Nickel and Cobalt Symposium including the Processing of Valuable By-products Containing Materials — 39th Annual Hydrometallurgy Meeting

❏ Advances in the Processing of Nickel, Cobalt and PGMs Using Pyrometallurgical Techniques

❏ 7th UBC-McGill-UA Biennial International Symposium on the Fundamentals of Mineral Processing in honour of Professor James Finch

❏ Upgrading of Laterites (Part of Hydrometallurgy and Pyrometallurgy)

❏ Management in Metallurgy — Current Management Human Resources Issues

❏ Materials Development and Performance of Photo courtesy of Rio Tinto PLC

Sulphur Capture Plants

❏ Process Control Applications in Mining and Metallurgical Plants

❏ Applied Mineralogy — Flowsheet Design and Plant Optimization

MetSoc Section Meetings

❏ Green Technologies for the Mining and Metallurgical Industries

See the complete technical program with abstracts inserted with this issue of CIM Magazine. Photo courtesy of Gordon Griffiths

The various sections of MetSoc will hold their annual meeting during lunch on Tuesday, August 25, in the various technical rooms. The meetings will offer a free box sandwich lunch. These meetings are an invitation to all who are interested in joining these groups and the society.

Stephen Lewis

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

Plenary session Entitled “When the bottom line isn’t enough,” the plenary session will be led by keynote speaker, Canadian diplomat Stephen Lewis. Lewis kicks off this event with a fresh perspective on global issues and a frontal challenge to the myths of globalization. Drawing upon his extensive political and international experience, Lewis will explore the role of leadership in promoting a different set of economic and social priorities for the 21st century. The plenary will also include an address by Sam Marcuson, vice president, technology, Vale Inco, and John Redstone, market analyst at VMD Desjardins.

Short courses The conference will be preceded by five excellent short courses planned by acknowledged experts. You are not required to be a conference delegate to attend the short courses. Each of the courses costs $700 ($350 for students). Full details are available on the conference website, www.metsoc.org/com2009. For more information contact Eduard Guerra, short course chair (eguerra@laurentian.ca). Hydrometallurgy Short Course: Nickel and Cobalt Hydrometallurgy This 1.5-day course, to be held from August 22-23, will include the following presentations: • Ni sulphides and mattes • Ni oxides and silicates – laterites • Purification processes • Co hydrometallurgy • Environmental issues and workplace hygiene • Ni/Co recovery processes • Pyrohydrolysis Mineral Processing Short Course: Advances in Flotation Technology While it is designed for a wide audience, this course will be particularly useful as a reference for practicing flotation engineers. The topics to be delivered as part of the flotation symposium organized in honour of Professor Jim Finch during COM2009 are listed on the conference website. Professor Finch will deliver a lecture as part of this course. Each introductory lecture will be followed by a discussion on the latest developments in the field using practical examples.

Pyrometallurgy Short Course: Pyrometallurgy of Nickel Topics covered by this course will include: • Overview of nickel • Nickel metallurgy in perspective • Sulphide nickel • Laterite nickel • Ferronickel refining • Modern process control • Sustainable development issues – environmental and energy • New nickel smelting technologies Process Control in Mining and Metallurgy Short Course This two-day short course covers a broad range of available process control technologies for the mineral and metal processing industries. The course is divided into four sections, with each section focused on specific topics which include: • Process control fundamentals • Model predictive control • Robust control and H∞ • Multivariate PCA/PLS Geometallurgy and Applied Mineralogy Short Course Held at the Xstrata Nickel Room, Xstrata Process Support, this two-day course includes the following topics: • Principles of applied mineralogy and geometallurgy • Introduction to geometallurgy • Process mineralogy data presentation and deliverables • Use of geostatistics in geometallurgy • Ore body characterization I & II • Quantitative mineralogy and mineral processing • Mineral processing and metallurgy of precious metal minerals • Practical aspects of image analysis and quantitative mineralogy • An overview and comparison of modern commercially available image analysers • Sample preparation methods for image analysis • New methods for mineral separation: electric-pulse disaggregation (EFD) and hydroseparation (HS) • Geometallurgy at Xstrata Process Support

Companion program The companion program offers two tours, both in the Sudbury region. Both tours will leave from Laurentian University. Further details, including departure times, will be posted on the conference website . The capacity for both tours is 35 people. Manitoulin Island Tour Monday, August 24 Price: $100 This day tour will take participants to Manitoulin Island (1.5 hours from Sudbury). There will be several stops of cultural interest such as Birch Island First Nation, Little Current, Monument Hill, Wikwemikong Museum and others. There will also be a stop for lunch and shopping.

Sudbury City Tour Tuesday, August 25 Price: $75 The day will begin with a visit to Science North, northern Ontario’s most popular tourist attraction. This will be followed by lunch at The Lake House Restaurant, where a welcoming pine lodge décor, warm hospitality and a picturesque view of Lake Ramsey complement the mouth-watering menu. Next, the group will take a one-hour tour of Lake Ramsey aboard the Cortina, a 70-seat cruise boat. Finally, the group will visit the Art Gallery of Sudbury. Housed in the stately mansion of the legendary timber baron, William Joseph Bell, the gallery has old-world architectural appeal that perfectly complements its collection of local history and contemporary works of art.

June/July 2009 | 67

Special events

William Davenport

Students, make a career-building move COM2009 offers students unmatchable opportunities to showcase their work, enhance their learning, make connections, get to know the industry and leave a lasting impression on potential future employers. Enter the Poster Competition to present your work before an august audience of industry and academic professionals. In addition to their recognition, you could win one of two $500 cash prizes. Posters can be submitted online at www.com2009abstracts.ca/registration until July 1, 2009. Build your network at the Student-Industry Mixer. On Monday evening, August 24, representatives from industry and students will meet informally at the “mixer” sponsored by Barrick Gold Corporation. The names of the winners of the Poster Competition and door prizes will be announced.

Extractive Dinner Price: $50 The MetSoc Non-ferrous Pyrometallurgy and the Hydrometallurgy sections invite you to dinner on Monday evening. Sponsored by WorleyParsons, the evening will feature a special presentation by William Davenport of the University of Arizona on “Travels in Search of Ni, Co and Pt Group Metals.”

Dinner in Honour of Professor Jim Finch Price: $60 This dinner will take place at Inco Cavern and is sponsored by Barrick Gold Corporation and Teck Ltd. The Inco Cavern is situated at Science North in Sudbury. The room was created by blasting the bedrock of the Canadian Shield.

Social program To make COM2009 as enjoyable an experience as it is educative, we have a full social program that affords delegates opportunities to meet, mingle, relax and have fun.

Volunteer and get noticed while you gain valuable organizational experience. Volunteering at COM2009 will look good on your CV and will give you behind-the-scenes access to the technical sessions.

Opening Reception All delegates are invited to attend the Opening Reception sponsored by HATCH on the evening of Sunday, August 23. The reception will be held at Dynamic Earth, a Science North geology and mining centre in Sudbury that is also home of the famous Big Nickel.

Connect over power lunches at the Section Meetings. Pick your area of interest and attend the open lunch meeting of the relevant section. It’s a great way to make contacts.

MetSoc Awards Banquet On Tuesday, August 25, the society will honour its outstanding members by presenting the society awards.

Stretch your shoestring student budget by availing of Financial Assistance. CIM student members can benefit from limited travel assistance. Some discounted accommodation is also available for students. Contact MetSoc for details.

Historical Metallurgy Box Lunch The Historical Metallurgy Committee of MetSoc will host a free box lunch on Wednesday, August 26, featuring guest speakers Larry M. Southwick and Joe Fyfe. Southwick’s presentation, “On the importance of reporting failures or one reason why we study historical metallurgy,” will shed light on the methods and objectives of the sub-discipline of historical metallurgy. Fyfe will delve into the past of our host city with his presentation entitled “The History of Sudbury.”

Proceedings Proceedings of the major symposia will be available for sale at the conference bookstore during the meeting. Orders can be pre-paid online through the conference registration web pages. 68 | CIM Magazine | Vol. 4, No. 4

Sponsors MetSoc would like to thank all its sponsors for supporting COM2009. Organized by

Industrial tours â&#x20AC;&#x201D; visit the mining capital of Canada Industrial tours, being opportunities to see the latest developments in operation in situ, are always a popular component of COM. Because tour places are limited, you are advised to book early to avoid disappointment. This year, there will be three tours, two of which will be in Sudbury, the mining capital of Canada. Port Colborne Refinery Tour Wednesday, August 26 to Thursday, August 27 Price: $450 On this tour, delegates will visit the refinery, which produces a platinum-group metals concentrate and cobalt metal. The operation also serves as a nickel packaging and distribution centre. Delegates will also have the opportunity to visit and have a tasting in one of Ontarioâ&#x20AC;&#x2122;s famous Niagara region wineries. The tour, which departs from Laurentian University, includes coach transportation to Port Colborne from Sudbury, a cold dinner on Wednesday, breakfast and lunch on Thursday, and one overnight hotel room on Wednesday night.

Co-organized by

Our Financial Sponsors Platinum

Nickel

Special Events

Sudbury Mills Tour Thursday, August 27 to Price: $50 This one-day tour will focus on Sudbury area milling technology. Delegates will visit the Xstrata Strathcona mill and the Vale Inco Clarabelle mill. The tour includes transportation and lunch. Sudbury Smelters and Refinery Tour Thursday, August 27 to Friday, August 28 Price: $100 This one and a half day tour will give delegates the opportunity to see two different smelting technologies in operation (at Xstrata and Vale Inco) and the refinery at Vale Inco. The tour includes transportation and lunch on Thursday. It does not include overnight hotel accommodation on Thursday.

Non-financial supporting societies

June/July 2009 | 69

history Butte, Montana (Part 3)* By R.J. “Bob” Cathro, Chemainus, British Columbia

Knowledge of the Butte deposit has advanced dramatically since Meyer et al. (1968) summarized almost a century of geological study, exploration and mining of the copper-rich polymetallic mineralization (the ‘classic’ Butte ore body). That date corresponds, more or less, with a transition from traditional studies of the youngest stage of mineralization to new types of research on the deeper porphyry zone, and the ~Emmons, 1933 deposit as a whole. That includes modern tools, such as fluid inclusions, geochronology and geochemistry that were used to determine the genesis of the deposit. The Butte ore body, one of the world’s great base-metal deposits, comprises a huge copper-dominated, polymetallic system of vein-faults that have been superimposed on a deeper copper-molybdenum porphyry system. It is hosted by the medium- to coarse-grained Butte quartz monzonite stock, which lies within the southern end of the late Cretaceous Boulder batholith, dated at about 76 Ma (but with some parts as old as 80 Ma). The batholith intruded Cretaceous andesite and rhyolite of the Elkhorn Mountains Volcanics, Proterozoic sedimentary rocks of the Belt Supergroup and Archaean crystalline basement. The youngest of the two distinct stages of mineralization, called the Main Stage because it is closest to surface and was mined first, consists of large, through-going, Cordilleran-style vein-faults containing base metal lodes comprised mainly of copper, zinc, lead, silver and arsenic sulphides. The earlier copper-molybdenum event, called the Pre-Main-Stage, has a spatial overlap with the Main Stage, which suggests that the two are related, although the genetic relationship remains unresolved. Mine exposures and deep drilling have revealed that the porphyry mineralization occurs as two internally zoned domes, named the Anaconda to the west and the Pittsmont to the east, each about two kilometres in diameter. The top of the Anaconda dome, molybdenite mineralization was encountered near the 2800 level (about 900 metres below surface). In the eastern part of the deposit, the north-striking, moderately west-dipping, post-ore Continental fault offsets the Pittsmont dome and has dropped the west side downward by about 1.25 kilometres. The vertical range of the pre-faulted Butte Regional geological setting of the Butte district (from Rusk et al., 2008) deposit that has been sampled and studied was expanded to approximately 2.6 kilometres by means of a deep drill hole on the eastern side of the fault. That provided an exceptional opportunity to study the physical and chemical processes of this magmatic-hydrothermal system, and has suggested that Butte is one of the deepest porphyry copper-molybdenum deposits known. Fluid inclusion phase relationships indicate that it formed at a depth of five to nine kilometres. The two domes are defined by zones of abundant magnetite-chalcopyrite-bearing veins and by molybdenum grade contours, and are separated by a bulb-shaped zone *Except where noted, the post-1968 information conof intense pyritic veining and pervasive grey sericite alteration up to 1.2 kilometres tained in this paper has been derived from Rusk et al. wide. They are concentrically zoned with widely overlapping shells of alteration bor(2008). For more historical summaries, the reader is dering centimetre-scale stockwork veins. The deep drill holes in the Pittsmont dome referred to Lindgren (1913), Emmons (1933), Graton revealed an inner stockwork of barren quartz veins with minor molybdenite and thin (1947), and Bateman (1955). John Dilles provided sericite-biotite-potassium-feldspar alteration envelopes containing up to about two important guidance and editing, while John Dilles and Mark Mauthner contributed invaluable references. per cent copper as chalcopyrite. These envelopes contrast sharply, mineralogically “Secondary sulphide enrichment was first recognized at Ducktown, Tennessee, but it was at Butte that the theories of secondary enrichment first took definite form.”

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economic geology and chemically, with the later sericitic and argillic alteration changes of strike and junctions of veins. They hosted the origenvelopes around Main Stage veins. The highest molybdenum inal chalcocite “bonanza” veins and the great rhodocrosite ore grades occur in an area characterized by quartz-dominated bodies at the Emma mine. The spacing of the veins was irregveins containing a few per cent molybdenum with no alterular, ranging from less than 100 metres to more than a kiloation. They occur upward and outward from the barren metre apart. quartz stockwork, but below the bulk of the chalcopyriteThe modern interpretation of the relationship between the magnetite mineralization. Early dark micaceous alteration Anaconda system and the younger system of Blue passes upwards into a 300 metre-thick shell of abundant (Northwest) veins is that the two sets occupy a conjugate set quartz-chalcopyrite-magnetite-pyrite veins with potassiumof strike-slip faults that formed at the same time and in the feldspar, chlorite, quartz, and green sericite alteration same stress field, that they were moving successively, and envelopes. In the outermost zone, veins contain pyrite, sphathat they show mutually cross-cutting relationships when lerite, galena, rhodochrosite, chalcopyrite and epidote in they intersect. The Anaconda veins are mainly right-slip potassium-feldspar-bearing propylitic alteration. whereas the Blue veins are mainly left-slip. The 1968 interGeochronology has disclosed that mineralization began pretation, on the other hand, was that the Anaconda veins with the intrusion of the quartz porphyry dykes at about were offset by the southwest-dipping veins of the Blue set, 66 Ma. The porphyry dykes are closely associated with the with mainly horizontal displacement of up to 100 metres. Pre-Main-Stage porphyry copper-molybdenum ores in the The horsetail veins have the same orientation as the Blue Pittsmont and Anaconda domes, dated at about 64 to 66 Ma veins. The Blue veins were mined along eight kilometres of based on the age of molybdenite. The economic phase strike length and to depths of 1,375 metres. They often conended with the Main Stage veins at about 62 to 64 Ma tained thick fault gouge and crushed walls. For some reason, (Dilles et al., 2004). few of the Blue veins were economic at surface. Although they Meyer et al. (1968) described how the major east-westwere not as wide or consistently mineralized as the Anaconda striking Anaconda system of veins, the earliest in the district, veins, the Blue veins contributed a substantial portion of the generally followed the direction of the quartz porphyry dykes. total Main Stage production because they were more abunThey were the major producers in the western third of the disdant (20 to 40 major veins) and more closely spaced (50 to trict, and also in the eastern third where the ‘horsetail’ zones 135 metres apart). The largest Blue vein oreshoots were from break off from them. The 325 to 800 metres long, 200 to Anaconda system strikes about 600 metres deep and 1.5 to 6.5 N65ºE at the west end but metres thick, and the system also curves to the southeast at the contained hundreds of smaller east end, while dips are steeply oreshoots with vertical and horito the north in the upper levels zontal dimensions of 60 to 100 but southerly below the 2800 metres. Some of the richest and level. The western portion conmost persistent occurred between sists of five major veins and 12 the 3400 and 4800 levels in the to 15 smaller veins, which are western portion of the deposit. right-slip with minor normal The Steward (Northeast) sysmovement, plus numerous tem comprises northeast-striking splits and bifurcations. normal veins and is the youngest Individual oreshoots were up to strongly mineralized set. They hundreds of metres long and display left-lateral movement like over 650 metres deep. The centhe Blue system, dip steeply south tral portion consists of giant and displace the two earlier systensional veins similar to the tems with offsets of up to about western portion. The horsetail 100 metres. Mineralization was area consists of about six dissimilar to that in the two earlier tinct subzones composed of systems but occurred in relatively both rich veins and low-grade minor quantities. It was more mineralization disseminated in abundant in the eastern part of the quartz monzonite. The upper deposit, particularly between the part was later re-mined from 1000 and 2500 levels of the No. surface in the Berkeley pit. 16 vein in the Rarus and Leonard Anaconda oreshoots averaged mines. In addition to the three Plan of the vein pattern on part of the 2800 level, showing the echelon pattern seven to 10 metres in thickness of the E-striking Anaconda series, the NW-striking Blue series, and the NEmineralized vein systems, the and reached up to 30 metres at striking Steward series (from Meyer et al., 1968). Butte deposit was also cut by four June/July 2009 | 71

economic geology younger barren vein sets and two phases of rhyolite dykes, which are about three to 15 metres thick with vertical dips. In the words of Bateman (1955, p. 492), “Since each later system faults the earlier, the result is a complex parquetry of vein or fault segments, cleverly resolved by Reno Sales and his staff.” It isn’t a surprise that the huge and complex sulphide system at Butte is a mineralogical treasure trove. Jenkins & Lorengo (2001) have provided a list of 130 currently valid minerals (81 hypogene and 49 supergene) that have been identified from there, including many rare varieties. In addition, Butte is famous for impressive crystal specimens that have been recovered from vugs. The main ore minerals were: • Copper — chalcocite, enargite, covellite, cuprite, bornite, and chalcopyrite, plus numerous, less-common, copperrich sulphosalts • Zinc — sphalerite • Silver – acanthite, native silver, electrum, and many silverrich sulfosalts; • Manganese – rhodocrosite and rhodonite • Lead — galena • Molbybdenum – molybdenite. Both primary and secondary chalcocite are present. Colusite is the only mineral for which Butte is the type area. It is usually associated with enargite and was initially thought to be a member of the sphalerite family. Among the more unusual species found at Butte are the tungsten minerals hubnerite and wulfenite. Viewed broadly, the mineralization in the big veins is arranged in crudely concentric zones of zinc and manganese around a central zone of copper, although the distribution pattern of copper-iron-sulphur minerals in the larger veins of the copper zone is not symmetrical with respect to the metal zones. The mineral zones are generally coincident with zoning of the hydrothermal alteration. Outside the core zone of pervasive sericite alteration, concentric sericite and argillic alteration envelopes up to a few metres wide encase every vein or veinlet containing Main Stage mineralization outward to the margins of the deposit. A fringe of chalcopyrite-bornite occurs all around the copper front. However, within the copper zone, pyrite-chalcocite-digenite assemblages are prevalent near its eastern edge from the 3800 level to the surface, whereas chalcopyrite is dominant in deeper parts of the large Anaconda veins in the western part of the copper zone, where it grades upward into bornite-chalcocite ores and eastward into the high-sulphur pyrite-chalcocite-covellite assemblages of the Leonard mine. The general zonation of pyritic ores from the central to peripheral zones is chalcocite-covellite to chalcocite-bornite to bornite-chalcopyrite-rich to chalcopyrite-sphalerite±galena to sphalerite-galena ±chalcopyrite (high silver) to rhodochrosite (pyrite-poor). The earliest production consisted of supergene native silver and smaller amounts of silver-rich sulphosalts such as acanthite, stephanite and pyrargyrite. It came from quartz veins with carbonate gangue and some sphalerite and pyrite 72 | CIM Magazine | Vol. 4, No. 4

Plan view showing the position of the Main Stage veins, the two porphyry domes hosting the Pre-Main Stage mineralization (Anaconda and Pittsmont), the Berkeley and Continental pits, the Continental fault, and the location of the 10 deep drill holes (from Rusk et al., 2008).

along the northern, western and southwestern margins. Silver soon became a by-product although Butte became the second largest silver producer in the United States. Hypogene mineralization is characterized by abundant pyrite, both within the veins and in the wall rocks as an alteration of biotite. Oxidation is generally complete down to about 100 metres and was found down some fractures to depths of over 300 metres. The Leonard and Tramway veins and the upper levels of the Anaconda vein were the best copper producers from rich oreshoots of chalcocite-enargite mineralization. Covellite was present to the deepest levels of the Leonard vein. Nearly all the important manganese production came from a rhodochrosite zone up to 35 metres wide on the Emma-Travona vein, the most southerly vein of the Anaconda system. Most of the remainder was mined from the northern group of Anaconda veins, principally the Rainbow, where rhodonite was also present. The Emma vein was also a prolific source of good rhodochrosite specimens. CIM

References Bateman, A.M. (1955). Economic mineral deposits (2nd ed.). New York: John Wiley & Sons, Inc. Dilles, J.H., Stein, H.J., Martin, M.W., & Rusk, B.G. (2004). Re-Os and U-Pb ages for the Butte copper district, Montana [abs.]: IAVCEI Meeting, Púcon, Chile, available at http://iavcei2004.free.cl/abstract_aprobation.asp. Emmons, W.H. (1933). Recent progress in studies of supergene enrichment. In F.L. Ransome (Ed.), Ore deposits of the western states — Historical review of geology as related to western mining (p. 407). New York: The American Institute of Mining and Metallurgical Engineers. Graton, L.C. (1947). Seventy-five years of progress in mining geology. In A.B. Parsons (Ed.), Seventy-five years of progress in the mineral industry: 1871-1946. New York: The American Institute of Mining and Metallurgical Engineers. Jenkins, R.E., & Lorengo, J.A. (2001). Butte, Montana: Minerals, mines and history. The Mineralogical Record, 32 (1), 5-69. Lindgren, W. (1913). Mineral deposits. New York: McGraw-Hill Book Company, Inc. Meyer, C., Shea, E.P., Goddard, C.C. Jr., & the staff of the Anaconda Company. (1968). Ore deposits of Butte, Montana. In J.D. Ridge (Ed.), Ore deposits of the United States: 19331967: the Graton-Sales Volume. New York: The American Institute of Mining, Metallurgical, and Petroleum Engineers, Inc. Rusk, B.G., Reed, M.H., & Dilles, J.H. (2008). Fluid inclusion evidence for magmatichydrothermal fluid evolution in the porphyry copper-molybdenum deposit at Butte, Montana. Economic Geology, 103, 307-344.

metallurgy The Canadian gold rush By Fathi Habashi, Department of Mining, Metallurgical, and Materials Engineering, Laval University

Introduction Gold has a special place among metals. The oldest metal exploited by man, it plays an important role in world economics. It has caused wars and unprecedented mass migrations, and has been responsible for creating many large cities. As a highly prized metal, it has inspired myths, fascinated alchemists, enriched the vaults of banks, graced oriental bazaars and adorned the most imposing religious and ceremonial buildings. It is little wonder that prospectors and adventurers rush to the scene as soon as news or rumours of a gold discovery break out. Since the first gold rush in California in 1848, others occured in Australia, New Zealand and other countries, which culminated in 1929 with the Great Depression. Gold discoveries resulted in the mass movement of gold miners in North America and South Africa, but not in other countries. In Imperial Russia, for example, local authorities, fearing chaos among the serf populace, prevented mass migration and social disturbance when gold was discovered in 1813. In Australia, the authorities did not want to let the largely convict population know about the presence of gold in New South Wales for fear of creating an uncontrolled gold rush. In South Africa, on the other hand, gold discovery resulted in the fierce Boer War between Dutch settlers and the British from 1899 to 1902. South Africa also had a diamond rush in 1869 near the Orange River. Alcohol, isolation, and struggles over access to gold made for high rates of homicide and other forms of violence. While the promise of easy riches drew many migrants, the reality was often not what they had hoped for. Miners worked long hours in remote places, generally living in miserable accommodations and paying exorbitant prices for food, shelter, and clothing. Gold deposits accessible to manual digging were quickly exhausted. All that remained were buried veins that could be exploited only by capital-rich ventures employing hydraulic equipment and other expensive machinery. Few miners remained independent prospectors, with most becoming employees of large mining companies. Most of the gold rush fortunes were made by marketing supplies to the miners. For example, Levi Strauss became very wealthy supplying miners with the robust trousers that came to be known as jeans. The Californian newspaper magnates of the Hearst family made their fortune from reporting the news. For others, the gold rush was a disaster. Gold rushes were responsible for the development of Alaska and the Canadian North, the creation of new cities and the founding of schools of mines in several regions where gold was found.

British Columbia The Fraser Canyon Gold Rush occurred in 1858 after gold was discovered on the Thompson River in British Columbia at its confluence with the Nicoamen River. News of the discovery reached California when the governor of the Colony of Vancouver Island sent a shipment of ore to the mint in San Francisco for assaying. Within a month, 30,000 men descended upon Victoria, which until that time only had a population of about 500. By the fall, however, thousands who had failed to stake claims, or were unable to because of the summer’s high water on the river, returned to San Francisco. Tens of thousands of prospectors, mostly American, arrived in British Columbia and disrupted the established balance between the Hudson’s Bay Company’s fur traders and Aboriginal peoples. The influx of prospectors included large numbers of Chinese, Britons, English Canadians and Maritimers, French Canadians, Germans, and others. During the fall of 1858, tensions increased between miners and the Nlaka'pamux First Nations people, leading to the Fraser Canyon War. By 1860, however, gold was depleted in the Stamp commemorating the role of the gold region and many of the rush in the creation of British Columbia miners had either returned to the United States or dispersed further into the British Columbia wilderness in search of unstaked riches. This diaspora led other gold rushes at Rock Creek, the Similkameen, Wild Horse Creek and the Big Bend of the Columbia River. In 1958, a Canadian commemorative stamp depicting a gold panner was issued to mark the 100th anniversary of the creation of British Columbia as a Crown Colony, which stemmed from the discovery of placer gold deposits in the Fraser River valley.

Northwest Territories In 1984, Canada issued a stamp on the occasion of 50th anniversary of the founding of the City of Yellowknife when gold was discovered there in the Northwest Territories. The stamp shows the head frame of a gold mine, a characteristic feature of the city, rising out of a prospector’s pan. The word Yellowknife, however, does not derive from gold. In 1770, when the British fur trader Samuel Hearne (1745-1792) was exploring the Great Slave Lake area, he encountered a tribe of Indians who used copper-bladed knives. He called them June/July 2009 | 73

metallurgy the Copper Indians, although fur traders soon began to refer to them as Yellowknives. When World War II broke out, a number of residents left to join the armed forces. Houses were shuttered and cafés closed. Nevertheless, the significance of an area rich in uranium was soon realized and Stamp marking the 50th anniversary of settlement was slowly the founding of Yellowknife revived. In 1944, a new gold discovery revitalized the town and the population grew. In 1967, Yellowknife was proclaimed the capital of the Northwest Territories. The 1984 stamp was issued just prior to the annual Caribou Carnival, a festival featuring igloobuilding contests, log-sawing races and Indian wrestling matches.

The Klondike gold rush was commemorated in 1996 by Canadian stamps and a $100 gold coin. The title of one of the stamps, Bonanza, refers to Rabbit Creek, a Klondike River tributary that became known as Bonanza Creek when placer gold was discovered there. The United States also issued a stamp commemorating the Klondike gold rush in 1998. The Gold Rush was celebrated in Edmonton, Alberta, with Klondike Days, an annual summer fair. Despite its distance from Dawson City and the Klondike River, Edmonton became known as a “Gateway to the North” for gold prospectors. It was in the city that many would collect the necessary goods for trekking up north in search of wealth. In addition, the gold rush proved to be one of most famous eras in the history of the Royal Canadian Mounted Police.

Klondike The toponym “Klondike” is a corruption of the Indian word for the Trondiuck River, which means abundant fish. On August 16, 1896, a party led by Skookum Jim Mason, a member of the Tagish First Nations, discovered rich placer gold deposits at Bonanza (Rabbit) Creek in the Yukon. News of the discovery spread to other mining camps in the Yukon River Valley and to the United States in July 1897. The first rush of prospectors set off the Klondike stampede. The Panic of 1893 was the first great depression, and it was the attendant unemployment in the United States that forced people to undertake such an adventure. In 1898, the population of the Klondike reached 40,000. Most prospectors landed at Skagway or the adjacent town of Dyea, both located at the head of the Lynn Canal in Alaska. They then travelled the Chilkoot Trail and crossed the Chilkoot Pass, or hiked up to the White Pass into the Yukon to proceed to Lake Lindeman or Lake Bennett, the headwaters of the Yukon River. Here, some 40 to 56 kilometres from where they landed, prospectors built rafts and boats that would take them the final 800 kilometres to the gold fields near Dawson City, capital of the Klondike. Stampeders had to carry a year’s supply of goods over the passes to be allowed to enter Canada. At the top of the passes, they encountered the post of Canada’s North West Mounted Police (now the Royal Canadian Mounted Police) that was put in place to avert shortages like those that had occurred in the previous winters in Dawson City. Charlie Chaplin’s poignant silent comedy, The Gold Rush (1925), set in the Klondike, tells the story of a lone prospector who, in the middle of the gold rush, searches the tundra for gold. Finding more than gold, he discovers love and adventure that forever change the lives of the people he meets.

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Stamps commemorating the Klondike gold rush

The Klondike Gold Rush Museum in Seattle, Washington The museum is designed to connect the international dots that trail out from the gateway of Seattle, where so many of the get-rich dreams began. It retraces the prospectors’ path following the Inside Passage through Canadian waters to Skagway, Alaska, then over Chilkoot or White Pass to the upper reaches of the north-flowing Yukon River, and down to where the Klondike River joined it at Dawson City. Many of the adventurers got stuck in the winter ice. Others were turned back by the Canadian Mounties. Yet others lost their supplies to the rivers or the tricks of fellow prospectors. Of the 100,000 or so who headed north during the three-year Klondike rush, just 40,000 reached the Klondike River. Of those, only 20,000 worked a claim or prospected in hopes of making one. Of these, just 300 found their way out with any more than $15,000. CIM

Suggested Readings Habashi, F. (2009). Gold: History, metallurgy, culture. Quebec City: Métallurgie Extractive Québec. Habashi, F., Hendricker, D.G., & Gignac, C. (1999). Mining and metallurgy on postage stamps. Quebec City: Métallurgie Extractive Québec. Habashi, F. (2003). Schools of mines: The beginnings of mining and metallurgical education. Quebec City: Métallurgie Extractive Québec.

executive summaries

YOUR

GUIDE

TO INDUSTRY KNOWLEDGE

Peer reviewed by leaders in their fields CIM Bulletin abstracts 76

Shear strength assessment of a footwall slab using uinite element modelling by N. Bahrani and D. Tannant

Guide de conception pour des sautages confinés à grande échelle de relaxation des contraintes dans des piliers de mines par P. Andrieux et J. Hadjigeorgiou

Design guide for large-scale confined destress blasts in underground mine pillars by P. Andrieux and J. Hadjigeorgiou

Canadian Metallurgy Quarterly Volume 48, Number 1

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

www.cim.org June/July 2009 | 75

executive summaries

R O C K

E N G I N E E R I N G

Shear strength assessment of a footwall slab using finite element modelling

Photogrammetry surveys were used to document a footwall slab failure that occurred at a surface coal mine located on the eastern slope of the Rocky Mountains. Photographs taken before and after the failure provided the pre- and postfailure geometry of the slope and the failed slab. Using photogrammetry-derived digital terrain models, the measured surface area of the slabs involved in the failure was approximately 11,140 m2. The average thickness of the slab that failed was 5.4 m, giving a volume for the failed slabs of approximately 60,150 m3. At the time of the failure, the coal seams above the pit floor had been removed and the remaining slope had been supported with rock bolts. 2D finite element models were constructed using slope profiles. The purpose of this study was to use the models to assess the effect of stress relief unloading and stress redistribution due to mining. The models contained 69 elasticperfectly plastic joint elements that represented the bedding surface upon which the slab slid. The in situ stresses, rock properties and the bedding surface shear strength and stiffness properties are discussed. Numerical analyses were conducted for models that had no rock bolts (unsupported) or contained rock bolts that were activated as the mining progressed (supported). The process of mining out a valley and exposing a highwall was modelled by a sequence of 11 excavation stages. The modelling results were used to investigate the effect of stress redistribution around the deepening pit and stress relief unloading on the distributions of shear stresses and displacements along of the bedding surface, as well as the slab stability at different mining stages. The joint elements were assigned a cohesion of 100 kPa and friction angle of 25ยบ. The measured displacements at a prism that was located on the slab were similar to those predicted by the model. As expected, elastic valley rebound occurred in the model, but shear stress and shear displacement reversals along the slip surface were also observed. The rebound caused by the unloading process and the stress redistribution due to pit excavation first resulted in upward slab sliding, followed by a

N. Bahrani, Geomechanics Research Centre, MIRARCO, Laurentian University, Sudbury, Ontario D. Tannant, School of Engineering, University of British Columbia, Okanagan, British Columbia

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reversal in the sense of the shear stresses acting along the bedding surface as the pit was deepened. The rebound of the slab due to the unloading process and the stress redistribution caused the shear stresses acting along the bedding surface to exceed the shear strength, and all joint elements yielded. However, because the slab was only partially exposed at this stage of mining, the slab could not experience large displacements. The slab was still constrained by the pit floor and yielded in a quasi-static manner. The yielding of the elastic-perfectly plastic joint elements when the slab was only partially exposed by mining highlights the importance of potential shear strength degradation of bedding surfaces caused by the stress redistribution and unloading and rebound processes. A limit equilibrium analysis for the final excavation geometry or a numerical analysis that does not model the full sequence of staged excavations will miss this potentially important aspect and may generate incorrect and non-conservative assessments of the slope stability.

Photograph of footwall failure taken July 21, 2006 (distance between prisms 14 and 18 is 18.9 m).

The modelling results provide new insight into shear strength degradation that occurs when the pit floor approaches and then passes a specific point in the highwall. The cohesion was reduced in steps until the finite element model did not converge at the final excavation stage when the slab was fully undercut. The required cohesion to achieve a factor of safety of unity (non-convergence state in the finite element analysis) is about 25 kPa for a friction angle of 25ยบ. This may suggest that the strength degradation processes reduced the cohesive strength by a factor of four, assuming the in situ cohesive strength before mining started was 100 kPa.

executive summaries Guide de conception pour des sautages confinés à grande échelle de relaxation des contraintes dans des piliers de mines

R O C H E S

Cet article se concentre sur la conception de ces sautages à grande échelle de relaxation des contraintes dans des piliers de mines souterraines. Plus précisément, cet article décrit une nouvelle méthodologie qui quantifie les chances de succès d’un tel sautage, pour un massif rocheux et un régime de contraintes donnés. La méthode est basée sur un nouveau paramètre nommé « Indice de relâchement », qui considère huit paramètres géomécaniques et de foragesautage qui contrôlent ultimement le procédé. Ces huit paramètres sont la rigidité, la fragilité et le degré de fracturation du massif rocheux, sa proximité à la rupture, l’orientation et la largeur du sautage, l’énergie explosive unitaire qu’il contient et le degré de confinement des charges. La rétroanalyse d’études de cas bien documentées a démontré que l’approche peut indiquer de manière fiable si une situation donnée de hautes contraintes de terrain est susceptible d’être améliorée par un tir de relâchement confiné à grande échelle et si le design proposé est adéquat pour atteindre ce but.

D E S

Il existe un certain nombre de mesures proactives et réactives qui peuvent être envisagées pour atténuer et mitiger les problèmes de terrain associés aux conditions de hautes contraintes en général et de ruptures violentes en particulier. Certaines mesures sont essentiellement proactives et destinées à contrôler les conditions pouvant mener à une rupture violente du massif rocheux. Parmi ces approches proactives, un changement de méthode de minage peut être envisagé (par exemple, vers une approche sans pilier, permettant d’éliminer les zones dans lesquelles les contraintes de terrain pourraient se concentrer). Une autre alternative serait une méthode d’extraction où le minage est entièrement mené depuis l’extérieur des zones minéralisées, de manière à ne pas exposer le personnel à des conditions potentiellement dangereuses. L’élaboration de séquences d’extraction destinées à gérer les contraintes de terrain pour empêcher qu’elles ne se concentrent dans des régions à risque se classe également dans la catégorie des mesures proactives. Cette approche consiste essentiellement à modifier l’évolution des contraintes à un endroit donné afin de réduire autant que possible la contrainte principale majeure, tout en permettant à la contrainte principale mineure de se dissiper progressivement. L’abattage d’un bloc de terrain dans le seul but d’altérer la distribution locale des contraintes et de mettre en relaxation une autre région, celle-ci dans le plan de minage mais initialement soumise à de hautes contraintes de terrain, constitue également une autre approche proactive envisageable.

D’autres mesures sont principalement réactives, parmi lesquelles on compte les tirs à grande échelle de relaxation des contraintes dans des piliers de mines (ces piliers étant généralement déjà sous de hautes contraintes ou devant l’être). D’une manière générale, un tir de relâchement des contraintes peut être défini comme tout sautage impliquant la détonation d’explosifs fortement confinés (sans face libre) dans le but d’altérer les contraintes de terrain dans une région donnée et dans lequel le matériel dynamité est laissé en place. D’une manière plus précise, un tir à grande échelle de relaxation des contraintes dans un pilier de mine a pour objectif d’infliger de lourds dommages au pilier visé et causer l’éjection d’un volume significatif de matériel rocheux — cette éjection résulte en une convergence des murs du pilier qui, à son tour, cause un relâchement des contraintes locales. De fortes quantités d’explosifs sont typiquement utilisées dans cette situation afin de causer les dommages voulus.

M É C H A N I Q U E

Certains des plus grands défis associés au minage à grande profondeur ou sous de hauts ratios d’extraction sont reliés aux forts niveaux de contrainte de terrain qui résultent de ces situations, ces contraintes pouvant éventuellement conduire à la rupture et à l’effondrement du massif rocheux autour des excavations. Ces effondrements, lorsque soudains et violents, peuvent avoir de graves conséquences et représentent probablement le plus haut degré de risque géomécanique, en termes d’exposition du personnel sous terre, de production erratique et imprévisible, de besoins en reconditionnement, de pertes possibles de réserves et de coûts globaux de minage.

* Cet article est disponible en français seulement

P. Andrieux, Consultation Itasca Canada, Sudbury, Ontario J. Hadjigeorgiou, Lassonde Mineral Engineering Program University of Toronto, Toronto, Ontario June/July 2009 | 77

executive summaries

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E N G I N E E R I N G

Design guide for large-scale confined destress blasts in underground mine pillars Some of the major challenges of mining at great depths or under high extraction ratios are related to the high levels of ground stress brought about by these situations. These high-stress levels can, in turn, lead to the rupture and collapse of the rock mass surrounding the mining excavations. These collapses, when sudden and violent, can have severe consequences and probably represent the highest degree of geomechanical risk in terms of underground personnel exposure, erratic and unpredictable production, ground rehabilitation requirements, possible reserve losses and increased overall mining costs. A number of proactive and reactive measures can be taken to attenuate and mitigate the ground problems associated with high stresses, in general, and with violent failure, in particular. Certain measures are essentially proactive and designed to control the conditions that could lead to a violent failure of the rock mass. Among the proactive approaches, the mining method can be changed (for example, using a pillarless procedure to eliminate zones where the ground stresses could concentrate). Another method would be a non-entry approach, with extraction guided from outside the mineralized zones, so as to not expose personnel to potentially dangerous conditions. Another proactive measure would be to modify the mining sequence to manage stresses so they are not concentrated in risk areas. This approach mainly consists in modifying the stress regime at a given location to reduce the major principle stress while allowing the minor principal stress to progressively dissipate. Another proactive approach could be to blast a rock mass for the specific purpose of modifying the local stress distribution and to destress another area, which is in the mining plan but which is subject to high ground stresses.

P. Andrieux, Itasca Consulting Group, Canada, Sudbury, Ontario J. Hadjigeorgiou, Lassonde Mineral Engineering Program, University of Toronto, Toronto, Ontario 78 | CIM Magazine | Vol. 4, No. 4

Other measures are mainly reactive. Among them are large-scale destress blasts in mine pillars (these pillars are generally under high stress, or will be). In general, destress blasting can be defined as any blasting involving the use of very confined explosive charges (without free faces) to reduce the ground stresses in a particular area and in which the blasted material is left in place. More specifically, a large-scale destress blast in a mine pillar aims to heavily damage the pillar to dislodge a significant quantity of material. This ejection results in some convergence of the pillar walls, which, in turn results in local destressing. Great quantities of explosives are typically used in this situation in order to cause the planned damage. This paper focuses on the design of these large-scale confined destress blasts in underground mine pillars. Specifically, it describes a new methodology that quantifies the likelihood of success of such a blast for a given rock mass condition and stresses regime. The method is based on a new parameter called â&#x20AC;&#x153;Destressability Index,â&#x20AC;? which takes into account eight geomechanical parameters and the drilling and blasting that ultimately control the process. These eight parameters are: the stiffness of the rock mass; its brittleness; the degree of its fracturing; its proximity to the failure; the orientation of the destress blast; its width; the unit explosive energy contained in the rock mass; and the confinement level of the explosive charges. Back-analyses of well-documented cases has shown that the approach can ascertain whether a given situation of high stress can be improved by means of a large-scale confined destress blast, and if the proposed blast design is appropriate to achieve this goal.

* This article is available in French only.

cmq abstracts

Canadian Metallurgical Quarterly Volume 48–Number 1, January 2009

Functionalized Metal and Semiconductor Nanoparticle Doped Liquid Crystals — Modifying Optical and Electro-Optical Properties T. Hegmann, H. Qi, B. Kinkead, V.M. Marx, H. Girgis, University of Manitoba, Winnipeg, Manitoba; and P.A. Heiney, University of Pennsylvania, Philadelphia, Pennsylvania To take advantage of the characteristic size and shape-dependent properties of nanoscale particles for liquid crystal applications, we produced numerous different liquid crystal mixtures doped with small quantities of specially designed, functionalized metal nanoparticles (i.e., Au and Ag) and semiconductor quantum dots (here CdTe) and studied the optical (texture, alignment, defect formation, luminescence) and electro-optic properties of the resulting liquid crystal suspensions. Depending on experimental parameters such as nanoparticle functionalization and concentration, cell surface treatment, cooling rate, as well as an applied electric field, the nanoparticles differing in surface functionality, size and core material give rise to diverse effects in different nematic and smectic liquid crystal hosts. Nanomaterials for Hydrogen Storage Produced by Ball Milling R.A. Varin, T. Czujko, Z.S. Wronski, University of Waterloo, Waterloo, Ontario; and Z. Zaranski, Military University of Technology, Warsaw, Poland Three methods of hydrogen desorption temperature reduction and desorption kinetics improvement of nanostructured hydrides processed by mechanical (ball) milling are discussed. The first method is based on a simultaneous particle size refinement of MgH2 hydride and the formation of an unstable γ-MgH2 phase. The second method utilizes catalytic effects of nanometric Ni (n-Ni) additives. The third method is based on the compositing of nanohydride mixtures such as NaBH4+MgH2 and MgH2+LiAlH4 where the first hydride in a pair has higher decomposition temperature than the second one. The low decomposition temperature hydride results in the destabilization of the high temperature constituent hydride. Growth of Nanocrystalline Diamond Thin Films on Titanium Silicon Carbide Using Different Chemical Vapour Deposition Processes S.L. Yang and Q. Yang, University of Saskatchewan, Saskatoon, Saskatchewan Diamond deposition on Ti3SiC2, a newly developed metallic ceramic material, was studied using microwave plasma enhanced chemical vapour deposition (MPCVD) and hot filament chemical vapour deposition (HFCVD) in hydrogen and methane gas mixtures under different conditions. Scanning electron microscopy (SEM), atomic force microscopy (AFM), Raman spectroscopy and synchrotron near edge extended X-ray absorption fine structure spectroscopy (NEXAFS) were used to characterize the synthesized films. Results show that high diamond nucleation density has been achieved on Ti3SiC2, thus nanocrystalline diamond (NCD) thin films can be feasibly synthesized on Ti3SiC2 under typical microcrystalline diamond growth conditions.

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cmq abstracts Formation of Nanostructures and Solid Solubility Extension in Cryomilled Al-Cu and Al-Si Powders R. Vintila, J. Milligan, McGill University, Montreal, Quebec; R.A.L. Drew, Concordia University, Montreal, Quebec; and M. Brochu, McGill University, Montreal, Quebec Nanostructured Al-2024 alloy and Al-12%Si were successfully synthesized via a cryogenic milling process. Equiaxed nanograins of 46 nm and a lattice strain of 0.2% were obtained after 18 hours of milling for the AlCu system and grain sizes of 46 nm with a lattice strain of 0.09% were obtained after only 4 hours milling time for the Al-Si system, as measured from the X-ray patterns. Transmission electron microscopy (TEM) characterization was also employed to evaluate the grain size in both systems. For the Al-Cu system, a bimodal grain size distribution (as measured from dark field (DF) TEM images) constituted of nanometric and ultrafine grains was obtained after eight hours of milling. This bimodal behaviour changes with milling time and after 12 hours results in a unimodal distribution with more than 50% of the grains between 20-40 nm. Also, additional milling time (16 hours) narrows the distribution; and approximately 80% of the grains reach the 20-40 nm range. At this stage, the size of the grains was also verified via direct thickness measurements of selected area diffraction (SAD) rings. The solid solubility extension (SSE) of Cu in Al, as estimated from Vegard’s law, in the final stage of milling (18 hours) reached a value of 0.41 atm%. For the Al-Si system the mechanism of particle evolution undergoes similar stages as in the Al-Cu system only in much shorter times such as after only two hours of milling the powders have completed the plastic deformation and reached the flattening phase. This was followed by fracturing, reaching an equiaxed morphology after only four hours of milling. At this stage the SSE of Si in the Al matrix was found to be 1.72 atm%. Mineralogy and Initial Chlorination of Water Granulated High Titania Slag P.N. Bungu, University of Pretoria, Pretoria, South Africa, and P.C. Pistorius, Carnegie Mellon University, Pittsburg, Pennsylvania Water granulation of high titania slag causes oxidation of some of the trivalent titanium in the slag to the tetravalent form; in smaller granules, some iron is also oxidized to ferric. Oxidation changes the phase constitution of the slag, with more rutile present (containing some iron oxide in solution). The chlorination rate (in a mixture of nitrogen, chlorine and carbon monoxide at 980 °C in a fluidized bed reactor) is similar for the granulated and conventionally-produced (block-route) slags, except in the case of the smaller, more oxidized granules, where chlorination of the ferric-containing phase is slower. The temperature increase during chlorination (exothermicity) is smaller for the granulated slags, in line with prior oxidation of trivalent titanium to the tetravalent form during granulation.

Excerpts taken from abstracts in CMQ, Vol. 48, No.1. Subscribe–www.cmq-online.ca

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professional directory and ad index CORRIVEAU J.L. & ASSOC. INC. Land & Mining Surveyors

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voices from industry

Lessons learned How the current economic downturn affected supply chain management and what can we learn from it by Dan Allan, president, Sandvik Mining and Construction, USA and Canada region think we can all learn a few things from the events leading up to our current economic situation. Many of us who have been in the mining business and seen a few of these cycles throughout our careers may indeed wonder why we were not better prepared for the “inevitable.” In hindsight, it seems odd, for example, that we would have considered nickel being priced at $22 a pound as a normal or sustainable condition. Yet we did. In order to learn from our past, as an industry, we must remember how things were just a few short months ago with the seemingly insurmountable demand for mining equipment. From 2004 until about the fall of 2008, the mining industry was booming. Commodities were at all-time highs and our equipment, services and parts were needed like never before. We were faced with unprecedented growth and expansion in our industry and were basically just trying to keep up with orders. As we focused on efforts to satisfy the surging demand, we slowly lost touch with ”reality” and missed some of the now evident warning signs indicating that such conditions would not last forever. The exuberance of the great times overtook us all, and sometimes sound fundamentals were suspended in favour of acting quickly. The recent dramatic demand decline and its impact on organizations have proven to be the tip of an iceberg. We now clearly understand that the downturn is no short-term blip. Its impact on the supply chain is being felt across the entire supplier base. Until recently, we ran after skilled labour and built more capacities. Now, we are now faced with the unpleasant task of downsizing plants, equipment and people. To further exacerbate the problem, many manufacturers are also left with finished inventory as a result of evaporated demand and cancelled orders. Moreover, this is

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inventory that was produced using inputs that have been among the costliest on record. As grim as this situation is, the understanding at Sandvik is that opportunities still exist. Our customers are wrestling with similar issues of contracting demand and higher costs of production. This is an excellent opportunity for us and other suppliers to show customers that we are not just here to “take the order,” but are also prepared to work with them to weather this difficult period. Now is the time to demonstrate our capabilities meaningfully. Like all sensible suppliers, at Sandvik the goal is to emerge from this downturn by staying true to ourselves and helping our customers run their businesses better and more cost effectively. Through acquisitions over the past several years, we have assembled a wealth of expertise that we plan to share with our customers. Whether it is with new technology or improved application knowledge, our products will continue to be built with the intention of keeping miners’ costs down. So how do we move forward and prepare for the future of supply chain management? First of all, we need to be more flexible. We need to learn to focus on what we do best and find alternate ways to meet demand in areas that, despite being attractive, are outside our core competence. Secondly, it is important that we recalibrate our expectations of volume and demand and have more reasonable expectations of growth for our businesses. You cannot expect to grow exponentially every year and just have your supply chain automatically meet that demand. Demand must be properly forecasted and managed with a long-term sustainable view. Lastly, we must understand that no one is an island. We are all linked in one way or another — customers are suppliers and suppliers are also customers. What happens in one part of the chain ultimately has an impact on the rest of the links. But none of these musings are particularly new. Perhaps the best lesson of all has been that history is indeed a great teacher. CIM

Neil Miller Maintenance and Performance Contracts Manager

See Rock. Think Sandvik. At Sandvik Mining and Construction, we know rock. That’s why so many of our clients turn to us to help them maximize the safety, efficiency and productivity of their mining operations. You see, with over 100 years of mining expertise Sandvik not only offers one of the widest selections of equipment and services available to the mining industry, we also offer the expert people and service to back them up.