CIM Magazine June/July 2010

CONTENTS CIM MAGAZINE | JUNE/JULY 2010 | JUIN/JUILLET 2010

NEWS 10

Lithium boom in South America Companies from around the world turn attention

12

Hands-free, human-free haulage UBC researcher is tracking the mine site

to Andean plateau by C. Kroll

15

performance of automated vehicles by C. Baldwin

13

Don Deranger elected president of Learning Together First Nations group will pursue increased industry engagement to broaden Aboriginal involvement in the mining process by P. Caulfield

14 15 17

Too big to feed? Michael Chender discusses opportunities and limits to growth at CIM Conference and Exhibition by P. Caulfield Mining the future for immediate solutions Demand for in situ resource utilization has space agencies and mining technologists looking for shared solutions by M. Paduada Regulatory realignment Deborah McCombe provides insider’s view on the proposed revisions to NI 43-101 by D. Zlotnikov

UPFRONT 18

SymBotic relationship Open-platform monitoring system designed to support the smooth, wireless exchange of information by D. Zlotnikov

20 22

Navigating the advances in underground navigation The frontiers of robotic mapping beyond the reach of satellite technology by J. Marshall Teck moulds its new leaders Internal development programs make the most of the human resources in house

by S. Solomon

24

18

“Projects guy” gets down to work CIM President Chris Twigge-Molecey discusses the ambitious agenda for the year ahead by R. Bergen

71 CONFERENCE OF METALLURGISTS | OCTOBER 3–6, 2010

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

COLUMNS

28 FEATURE LOGISTICS/LOGISTIQUE 28

Vos actifs sont-ils fiables? Les données et les modèles prédictifs réduisent le temps d’arrêt des équipements mais l’intégration des systèmes tarde

MAC Economic Commentary by P. Stothart Supply Side by J. Baird Standards by R. Holland, C. Waldie and L. Arsenault Eye on Business by D. Prupas HR Outlook by L. Forcellini Canadians Abroad by H. Ednie Vie étudiante par P. Groleau Student Life Safety by H. Ednie Engineering Exchange by H. Ednie Women in Mining by H. Ednie First Nations by J.C. Reyes Innovation by S. Katary Mining Lore by C. Baldwin Voices from Industry by T. Skinner

CIM NEWS 42

How reliable are your assets? A departure from running-time-based maintenance could be the key to avoiding dreaded downtime by G. Woodford

34

46 47 48 50 52 53 54 55 56 58 60 61 62 64 90

66

CIM Conference and Exhibition 2010 A roundup of key events at this year’s conference and trade show Beyond the podium CIM Distinguished Lecturers season’s record-breaking success

by R. Pillo

67

CIM M/E Society awards Centennial Scholarships Students get a boost from their larger CIM family by M. Eisner

68

Three young industry achievers claim their rewards

FEATURED MINE MINE EN VEDETTE 36

What does it take to be a good leader?

by M. Eisner

71

COM 2010 49th Annual Conference of Metallurgists preliminary program

Farallon joins the neighbourhood Socioeconomics and “parallel-track” approach play central roles at the company’s project in southwestern Mexico by D. Zlotnikov

40

Farallon : un nouveau voisin Rôle essentiel de l’économie sociale dans le développement de la mine G-9

HISTORY 77

Nevada-type gold deposits (Part 1)

by R.J. Cathro

36

80

The beginnings of mineral processing research in Canada (Part 5) by F. Habashi

TECHNICAL SECTION 83 86 87

Canadian Metallurgical Quarterly Exploration and Mining Geology CIM Journal

IN EVERY ISSUE 6 8 9 70 70 76 89

Editor’s message President’s notes / Mot du president Letters Welcoming new members Obituaries Calendar Professional directory

June/July2010 2010 | 5 June/July

editor’s letter Opening up the lines of communication “The battery lifetime was 20 minutes, but that wasn’t really a big problem because you couldn’t hold that phone up for that long.” ~ Martin Cooper, inventor of the first practical mobile phone for hand-held use, which weighed one kilogram (2.2 pounds).

n April 3, 1973, Martin Cooper, a researcher and executive with Motorola, placed the first call on a hand-held mobile phone. The call, made just before heading into a press conference at the New York Hilton, connected Cooper to his rival, Dr. Joel Engel, a researcher at Bell Labs. The two companies had been engaged in a long race to produce the first portable mobile phone.

The competitive nature of that first cell phone conversation, essentially high-tech “trash talk,” set the tone for later development. Since then, the race for wireless telecommunication dominance has become nothing short of a marathon, with an ever-increasing number of competitors attempting to create systems and devices faster and better than the next. A simultaneous, and related, competition has sprung up on the systems technology front.

However, the very competitiveness that has spurred so much technological advancement has had its drawbacks, as manufacturers jealously guard their systems and technology. Add to this a multiplying network of systems that are unable, or not permitted, to “speak” to one another, as well as a reluctance by companies to share data with the manufacturers, out of fear of the information landing in “the wrong hands,” and it becomes harder to determine the “winners and losers” in this technology race.

In this issue of CIM Magazine, we take a look at some of the applications of wireless technology in the mining industry, as well as the logistical implications of the lack of systems integration — in particular with respect to asset management.

In the feature article “How reliable are your assets,” regular contributor Gillian Woodford explores how diagnostic data and predictive modelling can reduce equipment downtime, increase reliability and save money at today’s mining operations by providing real-time warnings about potential breakdowns. At the same time, we discover that a great deal of the data collected is rendered virtually useless because of a lag behind other industries in integrating its data collection systems.

Be sure to check out the “President’s notes” by new CIM president Chris TwiggeMolecey on page 8 as well as a Q&A with him on page 24, in which he shares some of the priorities of his mandate in the coming year. We also provide a recap of some of the highlights of the annual CIM Conference and Exhibition, which took place in Vancouver in May. By all accounts, the event was a spectacular success – an achievement that is being drawn upon as plans are already well underway for next year’s event in Montreal. Abstracts are now being accepted for the technical program, which promises to be stronger and more extensive than ever. (See Call for Abstracts on page 65.)

Open, two-way dialogue is also integral to the success and evolution of CIM Magazine, so please keep your feedback and suggestions coming so that we can integrate your ideas into our future editorial. It is this type of knowledge exchange that will help propel CIM forward as a community for leading industry expertise.

O

editor

@cim.org Angela Hamlyn, Editor-in-chief

6 | CIM Magazine | Vol. 5, No. 4

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

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

Andrea Nichiporuk, anichiporuk@cim.org Technical Editor Joan Tomiuk, jtomiuk@cim.org Publisher CIM Contributors Luc Arsenault, Jon Baird, Louise Blais-Leroux, Correy Baldwin, R.J. Cathro, Peter Caulfield, Heather Ednie, Marlene Eisner, Lindsay Forcellini, Philippe Groleau, Fathi Habashi, Robert Holland, Shannon Katary, Cristina Kroll, Joshua Marshall, Mike Paduada, Robbie Pillo, Dianne Prupas, Juan Carlos Reyes, Tim Skinner, Sam Solomon, Paul Stothart, Craig Waldie, Gillian Woodford, 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 Janet Jeffery, jjeffery@dvtail.com, ext. 329 Beth Kukkonen, bkukkonen@dvtail.com, ext. 306

This month’s cover Rio Tinto Alcan employee securing front wheel hub in heavy machinery workshop at East Weipa bauxite mine. Photo courtesy of Rio Tinto, Christian Sprogoe Photography Layout and design by Clò Communications.

Copyright©2010. All rights reserved.

ISSN 1718-4177. Publications Mail No. 09786.

Postage paid at CPA Saint-Laurent, QC. Dépôt légal: Bibliothèque nationale du Québec.

The Institute, as a body, is not responsible for statements made or opinions advanced either in articles or in any discussion appearing in its publications.

Printed in Canada

president’s notes A busy and exciting year ahead It is an honour and a pleasure to be taking on the leadership of CIM at a time such as this. The Institute is in great shape with a modernized governance structure now in place, a solid financial base and a range of vibrant activities unfolding across the country. We clearly owe past president Michael Allan, the outgoing Council and the National Office staff a large debt of gratitude for steering the Institute through the turbulence of 2009 so successfully.

It was great to meet so many of you at the CIM Conference and Exhibition in Vancouver, and what an event it was! The setting was spectacular and the conference enjoyed a record turnout. Especially gratifying was seeing the continued growth of Mining in Society and the impact it had on over 6,600 school children and teachers. I extend our congratulations to the whole Vancouver organizing team.

Looking to 2010-11, we have a full schedule ahead with several major events: Uranium 2010 in Saskatoon in August; the Conference of Metallurgists in Vancouver in October (incorporating Lead-Zinc 2010 and co-organized with TMS); and Copper 2010, co-organized by MetSoc, in Hamburg in

June. This lineup is a testament to the global technical leadership that we have come to expect from CIM. The coming year will be a busy one, with initiatives to both strengthen and expand CIM. I sat down with the editors of CIM Magazine to speak about what lies ahead. You can find that discussion on page 24.

This edition of the magazine focuses on logistics, particularly maintenance and communications, which are key challenges for any of our facilities. It is astonishing to see the level of innovation in a sector we often take for granted, — innovation we ignore at our peril.

I trust you will find ample value in this issue as well as in the many projects slated for the year ahead.

Chris Twigge-Molecey CIM President

Une année chargée et emballante à l’horizon C’est un honneur pour moi, mais aussi une source de joie, que de diriger l’ICM à un tel moment. L’Institut a le vent dans les voiles, grâce à l’adoption d’une structure de gouvernance modernisée, à ses solides assises financières ainsi qu’à une gamme d’activités dynamiques qui ont lieu dans l’ensemble du pays. J’exprime ici ma vive reconnaissance au président sortant Michael Allan, au conseil sortant ainsi qu’au personnel, qui ont réussi à tenir les rênes de l’Institut durant une année 2009 tumultueuse.

J’ai été ravi de pouvoir rencontrer plusieurs d’entre vous à l’occasion du Congrès et Salon commercial de l’ICM à Vancouver. Quelle réussite! Un nombre record de personnes y ont participé dans un emplacement spectaculaire. La croissance soutenue de l’activité « Les mines dans la société », ainsi que ses répercussions sur plus de 6 600 enseignants et élèves, ont été particulièrement gratifiantes. Toutes mes félicitations à tous les membres de l’équipe responsable de l’organisation du Congrès et Salon commercial de Vancouver.

Si nous regardons du côté de l’exercice 2010-2011, notre horaire chargé comprend plusieurs activités importantes : Uranium 2010 à Saskatoon en août, la Conférence des métallurgistes à Vancouver en octobre (comprenant

8 | CIM Magazine | Vol. 5, No. 4

Plomb-Zinc 2010 organisé en coopération avec TMS) ainsi que la réunion internationale « Cuivre 2010 » organisée en coopération avec la MetSoc à Hambourg en juin. Ce programme illustre le leadership technique mondial auquel l’ICM nous a habitués.

La prochaine année sera chargée, en raison d’initiatives qui vont à la fois renforcer et accroître les activités de l’ICM. J’ai rencontré les responsables de CIM Magazine afin de discuter de l’avenir. Vous pouvez lire cette discussion à la page 24.

Ce numéro est axé sur la logistique, c’est-à-dire les activités détaillées d’une exploitation. La maintenance et les communications sont des enjeux cruciaux pour toute entreprise.

Il est étonnant de voir la capacité d’innovation d’un secteur qu’on considère comme acquis; sous-estimer cette innovation peut être risqué. J’espère que vous trouverez un grand nombre de choses intéressantes dans ce numéro, de même que dans nos nombreux projets prévus pour la prochaine année.

Chris Twigge-Molecey Président de l’ICM

letters Seeking sanction and remedy To the readers of CIM Magazine, I appreciate this opportunity to provide some clarifications with respect to the article “CSR grows up” in the May issue of CIM Magazine (p. 35) in which I am quoted.

I have noted, in this article and elsewhere, that the mining sector should be joining civil society groups in seeking solutions to the urgent need for mechanisms by which people living in weak governance zones who are damaged by mining projects can seek sanction and remedy. The government’s CSR Strategy does not address this urgent issue. Bill C-300, while it cannot address the need for remedy, or reparation for damages done, does at least address the issue of the need for sanction by making some forms of Canadian government support for extractive projects contingent on their compliance with internationally recognized environmental and human rights standards.

With regard to mining practices and governance in Canada, I am quoted as saying “mining companies are still allowed to dump tailings into pristine lakes here but not in rivers.” In fact, as a result of Schedule 2, which was added to the Metal Mining Effluent Regulations in 2002, mining companies operating in Canada may seek permission to dump mine tailings and waste rock into both lakes and rivers, as well as wet lands, as long as these natural water bodies are dammed off before they are destroyed. While this is better than the practice of some Canadian mining companies that operate overseas and dump uncontained mine tailings into river systems or the ocean, it is still a far cry from environmental best practice.

Catherine Coumans MiningWatch Canada

The CIM National Office is relocating!

Le bureau national de l’ICM déménage!

CIM is expanding and moving into a new office space to serve you better.

Our new mailing address, effective July 19, 2010, will be: L’ICM s’agrandit et emménage dans de nouveaux locaux pour mieux vous servir.

Notre nouvelle adresse postale, en vigueur dès le 19 juillet 2010 sera : CANADIAN INSTITUTE OF MINING, METALLURGY AND PETROLEUM (CIM) L’INSTITUT CANADIEN DES MINES, DE LA MÉTALLURGIE ET DU PÉTROLE (ICM)

3500 boul. de Maisonneuve Blvd. ouest/West • Suite 1250 • Westmount, QC • H3Z 3C1 June/July 2010 | 9

news Lithium boom in South America Surging interest in mineral-rich salt flats

Much of the world’s lithium supply is on the high Andean plateaus of South America, and companies from around the world, expecting elevated demand, are staking their claims to the vast deposits in Chile, Bolivia and Argentina.

Partnered with Australian mineral exploration company Orocobre Limited, Toyota recently invested in land in the northern Argentine province of Jujuy to extract lithium for car battery manufacturing. Orocobre reported Toyota will pay $4.5 million to complete a feasibility study — which should be ready for the fall of 2010 — and acquire 25 per cent equity interest in the venture.

Orocobre already has a project operating in the Jujuy Province, in Salar de Olaroz, as well as 60,000 hectares on 10 salars, or salt flats, in the Argentine provinces of Salta, Jujuy and Catamarca. According to Orocobre, production in Salar de Olaroz is expected to start in 2011.

In addition, the company will acquire approximately 41,000 hectares of land just outside the Salar de Olaroz site.

As noted in a release from the company, the Salinas Grandes area shows the highest grade average lithium and potassium results from any sampling program in Argentina, with average grades of 1,409 milligrams of lithium per litre (mg/L) and 16,394 mg/L potassium. In

10 | CIM Magazine | Vol. 5, No. 4

Photo courtesy of FMC Lithium

By Cristina Kroll

The Salar del Hombre Muerto region in Argentina, the location of FMC Lithium's facility

total, they are contiguous extensions of the existing resource of 350 million kilolitres of brine at 800 grams of lithium per kilolitre.

news Near the Jujuy frontier, in the province of Salta, the local government confirmed a number of companies are investing in lithium: Ekeko and Li3 Energy sondea in Salar de Pozuelos; Li One, Orocobre, Minera Exar, Compañía Minera Solitario Argentina, Latin American Minerals Argentina, Rodiña and Bolloré Group. French conglomerate Bolloré is working with the mining firm Eramet, which has stated “the consortium continues to examine various projects, including a project for a complete industrial chain for lithium in Bolivia.”

The energy company Li3 is also in the act, having recently announced purchase agreements to acquire the rights of the Puna Lithium portfolio. The portfolio consists of four mining properties located in Puna, known to have resource potential for lithium and potassium. Among them, the Centenario salar has been confirmed to return values of up to 1,500 mg/L lithium, and the Rincon salar reported an estimated 1.4 million tonnes of lithium. The company claims that, combined with Li3’s other holdings in Nevada and Peru, the newly acquired land in Argentina and Chile makes Li3 one of the largest holders of prospective lithium acreage in the world.

Also, with an eye on the growing market for car batteries, the Canadian auto parts giant Magna has invested some $7 million initially in exchange for land from Lithium Americas, a Canadian company that specializes in lithium extraction in the northern Argentine Puna Plateau.

Magna also recently announced that it intends to build two lithium-ion battery plants to supply electric vehicles.

FMC Lithium, a subsidiary of FMC Chemical, owns a lithium facility in Salar del Hombre Muerto and has been producing lithium products in Argentina since 1998. “Argentina provides the base lithium building blocks for nearly all of our lithium sales and downstream production,” said Sallie Hendrick, marketing communications specialist for FMC Lithium. “To ensure we can meet the future needs of our growing customers and maintain our share of a growing market, FMC Lithium has embarked on expansion plans at its salar in Argentina, with projected completion expected in late 2011.” The initiative will increase the company’s lithium brine and carbonate capacities by about 30 per cent, she said.

Chemetall Foote is also very active in the Latin American lithium scenario with its La Negra production facility, located in the Antofagasta region in Chile. The plant has been functioning since 1984, producing lithium carbonate based on the natural brines from the Atacama salar.

Finally, SQM lithium operations include the brines located in the Salar de Atacama region in Chile. In this location, the company produces lithium carbonate, potassium chloride, potassium sulphate, boric acid and magnesium chloride. This company estimates thatthe reserves located in the Salar de Atacama, with the current production levels, would last at least 30 more years. CIM

Bolivian potential Bolivia has the world’s largest lithium reserves — nearly 40 per cent of the worldwide supply — although the reserves remain unexploited. This is about to change, as the Bolivian Mining and Metallurgy Ministry is preparing a new model facility for lithium manufacturing in the Salar de Uyuni. The 12,000-square-kilometre salt flat on the Bolivian high plateau holds nine million tonnes of lithium reserves, according to the country’s mining ministry.

The government’s plan is to obtain 40 tonnes per month of lithium carbonate, potassium sulphate, as well as other products. Along with the Bolloré Group, Japanese manufacturer Mitsubishi has shown interest in exploring the Salar de Uyuni to build lithium batteries, said the government.

Bolivian president Evo Morales is looking for a partner to exploit 50 per cent of the iron and lithium reserves in the Cerro Mutún. The Bolivian vice-minister of production development, Héctor Córdoba, has met with executives from Hyundai in South Korea, reported Spanish news agency EFE.

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According to a report of the International Lithium Corporation, the three largest South American lithium producers are SQM, Chemetall and FMC Chemical.

June/July 2010 | 11

news Hands-free, human-free haulage Exploring the potential of autonomous trucks

Figure courtesy of Juliana Parreira

By Correy Baldwin

What could be safer than putting a well-trained driver behind the wheel of a 300-tonne open-pit haulage truck? How about no driver at all? Not a human driver, at any rate.

Although autonomous technology has been around for a long time, autonomous haulage trucks have only been in use for a couple of years, and only by a handful of companies in a few mines, including Rio Tinto’s West Angelas Mine in Australia and Codelco’s Gabriela Mistral Mine in Chile. Mining giant BHP Billiton, together with Caterpillar, began a program in 2008 to automate mine haulage trucks, driven by concern for driver fatalities.

In spite of its promise, the industry remains cautious about this technology and is waiting to see the results from mines using these trucks.

Juliana Parreira at the University of British Columbia has been studying the potential benefits of using autonomous haulage trucks in open pit mines and is offering a tool for project managers who are considering this technology. She uses ExtendSim — a simulation software package that 12 | CIM Magazine | Vol. 5, No. 4

helps project managers define the improvements in their mining systems if they replace manual haulage trucks with autonomous ones. She is studying a number of key performance indicators (KPIs) that include safety, productivity, fuel consumption, tire wear, and operating and maintenance costs.

Autonomous haulage trucks remove operators from high-risk areas in transporting large quantities of mining material, but do they improve productivity?

“All manual processes have variations,” said Parreira, “and manual systems are going to be irregular in terms of speed and position on a haulage route. But an autonomous truck doesn’t need to stop and it can maintain a set speed. It can become a more constant process.” Not only does a truck not have to take lunch breaks or go home at the end of a shift, its performance can be set to optimum breaking and accelerating points, reducing fuel consumption and tire wear.

It sounds ideal, but autonomous technology is expensive and extensive, requiring infrastructure such as communications towers, data networks, precise GPS and the automated systems on the trucks themselves, which include highly sensitive object-avoidance sensors. “The cost-benefit analysis is complex and it is important that the technology be properly characterized,” said Parreira. Only after careful study to define the extent of positive improvements and cost reductions can a mine consider applying the technology. “It depends on the particular mine and situation which may require adaptation to accommodate an autonomous system.

The overall utilization and mechanical availability increase together with the life of the equipment to compensate for any deterioration in cycle time.” CIM

Achievements Commitment to sustainability Roca Mines’ MAX molybdenum mine has won the 2009 Mining and Sustainability Award, presented by the Honourable Randy Hawes, Minister of State for Mining, British Columbia, and Pierre Gratton, president of the Mining Association of British Columbia.

The award recognizes commitment to mining and mineral development that meets the growing needs of all communities while maintaining a healthy environment and vibrant economy for present and future generations. Scott Broughton, president and CEO of Roca, accepted the award on behalf of all employees, contractors, suppliers, local communities and management who have all helped to make the mine a success.

news Don Deranger elected president of Learning Together First Nations organization marks fifth anniversary at Vancouver conference

By Peter Caulfield

Photo courtesy of Don Deranger

Past president Glenn A push for broader exposure, Nolan said Learning increased activity and industry Together brings Aboriginal engagement will define the future communities together to for Learning Together, said the talk about their experiorganization’s new president, Don ences, both good and bad, Deranger. In April, Deranger, related to mining and to Vice-Chief of the Prince Albert learn how to seek a greater Grand Council in Saskatchewan, benefit from mining in their was elected to a two-year term as territories. president of the not-for-profit “According to the latest organization whose purpose is to NRCan information bulletin, enable more Aboriginal communithere are 1,200 projects, ties in Canada to benefit from from early to closed stage, mineral exploration and mine located near or adjacent to development. an Aboriginal community in Deranger’s election was a part of Canada,” he said. Nolan Learning Together’s annual general Learning Together’s newly elected president Don Deranger is also Vice-Chief explained that he came up meeting, which took place at the of the Prince Albert Grand Council and on the board of governors for with the idea for Learning organization’s recent two-day Cameco.

Together about 10 years ago. annual conference in Vancouver.

“I realized companies had a significant Deranger said he wants to increase Yukon and Nunavut. Two Sami, who information gap on best approaches to the number of events and workshops are Nordic indigenous people, travworking with communities,” he said. held by the organiztion. “Learning elled from Norway to attend the con“But, more importantly, I saw a signifiTogether is not known equally well ference. cant lack of access to meaningful and across the country and we have to Also in attendance was Jean Vavrek, relevant information related to all work to change that,” he said. “First CIM executive director. This is the stages of the mining cycle for AborigiNations communities across Canada fourth year that a representative of CIM, nal communities.” face common challenges where min- which has been increasing its level of He added that because of this gap, ing and exploration are concerned. We sponsorship of the event, has attended a First Nations communities often need to learn more about the industry Learning Together conference. refused to discuss anything until they and mining needs to take the concerns “It’s a good format — open, small understood the process. of First Nations seriously.” and intimate — with a diverse group,” “This led to a difference in objecAlso elected to the board were Vavrek said. “It’s a terrific opportunity tives between the companies advocatto see how other people perceive the Kim Rainville, treasurer; Lana Eagle, ing the development of a mining claim mining industry and to build up relavice- president; Chief Theresa Hall, and the communities that needed to tionships over the years. It’s a learning secretary; Glenn Nolan, past presibetter understand the issues related to experience for everyone.” dent; as well as Jack Blacksmith, Dara project, including the various opporReyes explained that the conferrel Beaulieu, John Cutfeet and Mary tunities and the possible environmenence followed a tried-and-true forBoyden. mat. “Our conference is the same tal impacts before moving forward,” Learning Together executive direcevery year,” he said. “We have two Nolan explained. tor Juan Carlos Reyes said 130 people The first Learning Together conferworkshops to teach [the mining] registered for the conference. More ence was held in 2006. Prince Albert industry about First Nations and two than 40 First Nations communities will be the host of next April’s workshops to teach First Nations were represented, with delegates CIM event. about the industry.

[In addition, there from Quebec, Ontario, Manitoba, are] five case studies for industry and Saskatchewan, Alberta, British communities to learn from others.” www.learning-together.ca Columbia, the Northwest Territories, June/July 2010 | 13

news Too big to feed?

Mining industry trends explored at CIM Conference and Exhibition

Very large companies might begin to fall out of favour with investors, suggested mining consultant Michael Chender at the recent CIM Conference and Exhibition’s Management and Finance Day. Chender, of the Halifax-based Metals Economics Group, was one of several speakers who addressed the topic of global outlook and discussed recent trends in financing and acquisitions activity. He began by noting that financings have recently rebounded for base metals and gold. In addition, the number of initial public offerings (IPOs) has grown since the beginning of 2010.“Although the IPOs have tended to be small so far, there are some big ones in the works,” he added.

In addition to IPOs, other sources for money that have been coming into the market include China’s statebacked companies; sovereign wealth funds, such as Singapore’s Temasek Holdings; and private equity. “A lot of money has been flowing into mining from cyclically dormant sources,” Chender said. “Some funds have shifted from three per cent in commodities to five per cent or more. And new funds have started up to invest in mid-tier companies.”

He added that many investors have a growing appreciation of commodities as a long-run investment because they are disappointed with the performance of some financial assets.

“There has been a big, long-anticipated jump in acquisitions in the past two months,” Chender said.

“Investors are feeling comfortable about the prospects for mining and they expect the recovery to continue.”

But is now the best time to be making acquisitions? “Nobody knows what the future will bring and now might be the top of the market,” Chender said. “Whether the acquisitions pay off depends on whether 14 | CIM Magazine | Vol. 5, No. 4

Michael Chender of the Metals Economics Group

prices keep going up.” Chender said most acquisitions don’t pay off because they’re made at or near the top of the cycle. “Few acquisitions are made at the bottom of the cycle, which is the best time,” he explained.

“Most get made once a robust recovery is well underway and investors are feeling more confident.”

In addition to acquisitions, investment dollars are flowing into old projects.“Because discovery rates are

Photo courtesy of Michael Chender

By Peter Caulfield down, old projects — those that have had jurisdictional or environmental problems — are being recycled,” Chender said. “A lot of projects are starting to look attractive again. Many are very large, however, and come with big capital costs.”

The trend towards bigger companies and projects might change in the future, he argued. “Size has its advantages, such as being able to take advantage of economies of scale and greater investor visibility, but size comes with a price, too. As companies get larger, the number of projects large enough for them to economically take on shrinks. Some big companies may become like dinosaurs — increasingly hard to feed.”

Because smaller projects are overlooked by big companies, and because investors today have access to large amounts of sophisticated information, Chender said smaller companies, developing smaller projects at favorable returns, could attract more attention in the future. “Some big companies might even eventually have to consider dividing themselves into smaller entities,” he added.

“Nothing grows without limit.” CIM www.metalseconomics.com

Giving back Rio Tinto Alcan will contribute $3 million to five cooperative research and development projects in Quebec. Set up jointly by the Natural Sciences and Engineering Research Council of Canada (NSERC) and Rio Tinto Alcan, the projects will be run by the Université du Québec à Chicoutimi, the Université de Sherbrooke, and the École Polytechnique de Montréal. Four projects will be directly linked to the study and improvement of various aspects of the electrolysis process (the Hall-Héroult process), while the fifth will focus on carbon stores in the boreal forest.

“These joint efforts will contribute to training young scientists and ensuring that we have a new generation of highly specialized staff, which Quebec society and major corporations need to be able to rely on as they pursue their development,” said Jean Simon, president, Primary Metal - North America, Rio Tinto Alcan.

news Mining the future for immediate solutions Broad applications for space mining technology

By Mike Paduada

Dale Boucher (left) shows Chris Hadfield a prototype planetary drill.

Photo courtesy of Mike Paduada

Canadian astronaut Chris Hadfield touched down in Sudbury in April to strengthen the connections between terrestrial mining technology and future space missions. It marks ongoing collaborations between the Canadian Space Agency and the Canadian mining industry.

In situ resource utilization (ISRU), the technological capability to obtain resources beyond our atmosphere, has the astronautics industry gravitating towards Canada’s mining centres.

Norcat (Northern Centre for Advanced Technology), a Sudbury-based non-profit organization that supports innovation and commercialization for small- and medium-sized enterprises, has been a leader in creating partnerships across a wide array of sectors to work on ISRU. Norcat invited mining industry representatives to the technology briefing with Hadfield to encourage new partnerships between mining and space.

Among those in attendance were Andrew Scott, director of mining information technology and automation at Barrick Gold, Marc Boissonneault, vice-president of Xstrata Nickel’s Greater Sudbury operations, and Charles Graham, director of CAMIRO’s mining division. The briefing included a presentation about Norcat’s work in international field tests conducted earlier this year, as well as a guided tour of equipment in Norcat’s high-security prototype development centre.

“Norcat has done some really interesting, cutting-edge work, not only in supporting the mining industry, but also the future mining industry,” said Hadfield, who has previously served as chief of robotics for the NASA astronaut office at the Johnson Space Center, and is now chief of International Space Station operations.

Resources of interest range from oxygen and propellant manufactured in space for outbound and return trips of spacecraft, to minerals in asteroid ore bodies.

“It sounds sort of crazy, but there are enormous mineral resources beyond our own atmosphere,” Hadfield explained. “Eventually, we will mine them. We just haven’t developed the technology yet. So, who’s going to develop it, and why shouldn’t it be a country like Canada, or an organization like Norcat or a company that it supports? We are leading the world in those areas on earth.”

Even though Hadfield and Norcat have their eyes on the stars, they were grounded enough to discuss how ISRU work is relevant to mining today. Norcat director of innovation Dale Boucher, Hadfield and several of the mining executives discussed applications to current mining issues.

“We believe we can take this kind of capability, shrink it into something small, and fit it in some of the tight enclosures that are required in the mining industry,” said Boucher. “By reducing the size of equipment so that it’s always operating in ore, we could

mine a much higher grade and go after resources that are not available today.”

“We need to take care of the mining that’s going on right now and keep profitable,” said Hadfield. “At the same time, I think it is important to look towards the future and the direction we should be going in.”

Hadfield praised Norcat’s contribution to the recent field tests that took place at a temporary site in Hawaii earlier this year. He conducted geological simulations at the site during the field test. The overall deployment, led by the Canadian Space Agency, was an international effort that brought together NASA, the German Aerospace Center and about 20 organizations, including Norcat. Their activities used prototype technologies to simulate resource prospecting, site preparation, resource extraction and site logistics that could be conducted in future tele-operated space missions.

“When we arrive [at an extraterrestrial surface], we need to have the tools that will allow us to make it worthwhile,” explained Hadfield.

“That’s what Norcat and the companies that it supports are working on.

When we do get there, we’re going to need to set up operations.”

Boucher claimed the field work on the volcanic terrain was a welcome challenge for Norcat. “It was dusty, it was windy, it was hard — it was a screaming success,” he said. “We proved that we could realistically go to a remote environment and generate products such as oxygen or water from the dirt that’s lying on the surface.

Using that water, we could produce oxygen, which we used to fire a small rocket engine. And we produced hydrogen to power up a fuel cell that drove an excavator for the mining operations. It was a very successful deployment and we’re very proud of it.” CIM www.norcat.org/innovation-space.aspx June/July 2010 | 15

An Introduction to Cutoff Grade Estimation: Theory and Practice in Open Pit and Underground Mines Cutoff grades are essential in determining the economic feasibility and mine life of a project. Learn how to solve most cutoff grade estimation problems by developing techniques and graphical analytical methods; about the relationship between cutoff grades and the design of pushbacks in open pit mines; and the optimization of block sizes in caving methods.

Instructor: Jean-Michel Rendu, Consultant, United States • Date: September 8-10 • City: Montreal

Geostatistical Mineral Resource/Ore Reserve Estimation and Meeting the New Regulatory Environment: Step by Step from Sampling to Grade Control Learn about the latest regulations on public reporting of resources/reserves through state-of-the-art statistical and geostatistical techniques; how to apply geostatistics to predict dilution and adapt reserve estimates to that predicted dilution; how geostatistics can help you categorize your resources in an objective manner; and how to understand the principles of NI 43-101 and the SME Guide.

Instructors: Michel Dagbert, Geostat Systems Int., Canada, Jean-Michel Rendu, Consultant, United States, and Roussos Dimitrakopoulos, McGill University, Canada • Date: September 13-17 • City: Montreal

Mineral Project Evaluation Techniques and Applications: From Conventional Methods to Real Options Learn the basics of economic/financial evaluation techniques, as well as the practical implementation of these techniques to mineral project assessments; how to gain a practical understanding of economic/financial evaluation

principles; and how to develop the skills necessary to apply these to support mineral project decisions.

Instructors: Michel Bilodeau and Sabry A. Abdel Sabour, McGill University, Canada • Date: November 8-11 • City: Montreal

Upcoming 2011 Seminars NEW — Certification in Ore Reserve Risk and Mine Planning Optimization Spread over a period of four months, this four-week course is designed for busy mining professionals who wish to update their skills and knowledge base in modern modelling techniques for ore bodies and new risk-based optimization methodologies for strategic mine planning.

Gain practical experience by applying the following hands-on concepts and technical methods: methods for modelling ore bodies; stochastic simulations, case studies and models of geological uncertainty; and demand-driven production scheduling and geological risk.

Instructor: Roussos Dimitrakopoulos, McGill University, Canada • Date: Starts in May • City: Montreal • Info: www.mcgill.ca/ conted/prodep/ore

Theory and Practice of Sampling Particulate Materials (Part 1)/QA-QC, Mine and Project Audits (Part 2) Instructor: Dominique François-Bongarçon, AGORATEK, United States • City: Montreal

Strategic Risk Management in Mine Design: From Life-of-Mine to Global Optimization Instructors: Gelson Batista, AMEC, Canada; Roussos Dimitrakopoulos, McGill University, Canada; and Gerald Whittle, Whittle Consulting, Australia • City: Montreal

news Regulatory realignment An expert perspective on proposed NI 43-101 revisions

By Dan Zlotnikov In April, the Canadian Securities Administrators (CSA) completed a year-long revision process of National Instrument 43-101. So what were some of the issues the revisions addressed?

Deborah McCombe, executive vicepresident at geological and mining consultancy Scott Wilson Roscoe Postle Associates, Inc., and a major contributor to CIM Special Volume 56, Mineral Resources/Reserves and Valuation Standards, pointed to the section governing consents of Qualified Persons as the most significant change in the proposed revisions.

Currently, McCombe explained, the author of the technical report would have to sign off on any new publically released document referencing that report. Mining companies have faced the problem of getting in touch with the author, sometimes years after the fact.

This has been especially acute in timesensitive situations, such as limited financing windows or acquisition talks.

The changing reality at the property is a further complication, McCombe added.

The Qualified Person who authored the report — and who bears legal responsibility for its accuracy — may require a

site visit to ensure the original report is still up to date.

The new rules would lighten the load while retaining the same chain of accountability. To achieve this, McCombe said, the Qualified Person would be signing off on technical disclosure in the technical report and accompanying disclosure when the report is initially filed on SEDAR. The proposed revision would also eliminate the requirement for updated consents from the Qualified Person who first prepared the report. The burden for ensuring the report is up to date would shift from its author to the mining company and its in-house Qualified Person.

Who constitutes a “Qualified Person” under the Instrument, particularly with respect to the requirement of membership in a professional association may also change.

“Right now, in addition to the Canadian professional associations, there is a prescriptive list of recognized foreign associations and designations the Qualified Person must have, as part of NI 43-101; this list is currently included in the Instrument and is therefore securities law,” McCombe said.

This made the Instrument largely unable to respond to evolving professional associations and certification in the field; amending the list would have required changes at the legislative level every time a new professional association had to be added.

Under the new rules, as the list of foreign associations will now be part of the Companion Policy and guidance not law, McCombe explained, the regulators “will be able to modify the list as new professional associations are set up,” streamlining the process.

The CSA is soliciting comment from all interested parties, with the amendments available on the websites of the Alberta, British Columbia, New Brunswick, Ontario, Quebec and Saskatchewan securities commissions.

The comment period closes on July 23rd.

Be sure to read the “Standards” column on page 48 for additional information on the proposed NI 43101 revisions. CIM www.securities-administrators.ca

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upfront T E C H N O LO GY by Dan Zlotnikov

SymBotic relationship Photo courtesy of Symboticware

Equipment monitoring system provides two-way communication in the harshest environments

n the complex, harsh world of mining, the SymBot, a new equipment monitoring platform that communicates by satellite, cellular network and Wi-Fi, is built tough and, as the name suggests, SymBot plays well with others.

The SymBot platform, designed to comply with open standards for industrial automation and systems interoperability, is a durable, energy-efficient hardware/software device that can be applied to monitor equipment information such as location, pay load data and emissions or operating environments.

The device hails back to 2008 when its parent company, Symboticware, received grants from the Ontario and federal governments to develop what was an R&D project into a full-fledged commercial product.

Above ground, a partnership was formed between Symboticware, junior mining firm Baffinland Iron Mines, the Centre for Excellence in Mining Innovation (CEMI) and Laurentian University. The project centred on a weather monitoring system on north Baffin Island. The challenge was not just extreme weather; the company’s co-founder and president, Kirk Petroski, explains that the monitoring stations are accessible by helicopter only, which makes in-person site visits difficult, costly, and subject to the vagaries of the local weather.

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Hands on/hands free To make site visits as infrequent as possible, Symboticware managed to cut power consumption on the 18 | CIM Magazine | Vol. 5, No. 4

SymBots down to as little as 10W, and used solar panels to keep the batteries topped up, making the unit almost completely self-sufficient. Also, SymBots’ satellite uplink means that the customers no longer have to visit the station to retrieve the collected data. But most important is that the satellite connection provides two-way communications and the SymBots’ operational parameters can be remotely controlled.

“SymBots allow the researchers or industry personnel to check the status and conditions around the station in real time and to change the parameters as needed,” explains Symboticware’s marketing and sales manager Bora Ugurgel. “So, if you’re sampling every five seconds, you can change that to every two hours in the winter months.”

The utility of up-to-the-minute information provided by these weather stations is clear, says Baffinland Iron Mines’ manager of sustainable development Matthew Pickard. “The data is important to us because it can tell us if we are expecting weather up there, but it can also be useful from the operational side. We have proposed mine infrastructure across a 250 kilometre strike width, so you don’t want a helicopter taking off and then turning around and coming back because it ran into bad weather. That can amount to thousands of dollars in costs to no useful end. Once we confirm the SymBots can work independently in the long, dark, cold winters of North Baffin Island, we hope to expand their use into other remote monitoring functions such as water quality monitoring.”

The Baffin Island project — which has since expanded to include Peregrine Diamonds, another advanced-stage exploration company — is going to be revisited this summer with a second phase. This time, Symboticware will be introducing a hybrid solar-wind power generation system to keep the SymBots charged up, but the software side will also see enhancements.

“We’re trying to reduce costs for our customers,” says Ugurgel. “Satellite data transmission costs are about $2 per kilobyte. With our in-house data compression system, we’d be able to compress the data by 70 to 80 per cent, significantly reducing airtime costs.”

In its underground projects, Symboticware sought out what Petroski describes as early adopters — mines in which a wireless communications infrastructure has been set up.

“The timing was paramount to the success of where we are today,” he adds. “Given that there was a decline in the economy and mining really took a hit, there was a period

upfront when a lot of the automation guys, for SymBots have a number of equipment monitoring applications including loadexample the automation superintendent at haul-dump vehicles.

Vale Inco, were looking for ways to do business better and to bring in a lot of new technologies.”

The SymBots are currently being used by both Vale Inco and Xstrata Nickel to monitor mobile equipment — most notably the two companies’ load-haul-dump (LHD) vehicles. Since the SymBots can draw power directly from the LHD machines they are monitoring, power management is not as much of an issue in this context, says Petroski. On the other hand, connectivity and constant vibration were a concern. There were also more direct threats to effective operation — being proprietary trend, Symboticware’s software OPIS(TM) (Open Platform for Intelligent Systems) facilitates an open hit by large rocks, for instance.

“When you’re placing the SymBot on an LHD, you have platform environment, meaning anyone with the skill and to look in hard spots to keep your sensors safe and lasting as desire can alter the programming, or write their own application for the platform. long as you can,” explains Ugurgel.

This was the factor that compelled CEMI to partner with Enhanced information exchange Symboticware, explains Allan Akerman CEMI’s R&D proThe need for mobile equipment monitoring is not new, gram director: “With closed systems you are tied in with one and Symboticware had to contend with a wide range of supplier; with open systems you can use the best of any supexisting solutions and devices already in place, which, in plier.” Added to that, he says there is also a cost advantage fact, was an advantage for the SymBot. As operator needs for to meeting the single IREDES requirements rather than muldata collection grew over the years, so did the number of tiple standards. “The majority of mining equipment specialized solutions in the driver’s cab — each with its own manufacturers are now on board with IREDES,” he says, and display, control system, and proprietary data standard. The more and more mining companies are committing to the growing trend for crowded cabs led to a push for open stan- single standard as well. dards — common data formats that would allow for greater “If I could use the analogy, we’ve developed the iPhone interoperability between all the disparate systems. When for the mining industry, and you’re loading applications onto Symboticware approached them, both Vale Inco and Xstrata this device,” says Petroski. “The money is in the applicawere already moving towards greater use of IREDES — the tions. So we’re developing our own applications, but we’re International Rock Excavation Data Exchange Standard also integrating third-party applications into our system and designed to smooth the transfer of information between providing that to our users as per their needs.” mining machines and office computers. It is no coincidence With five SymBots operating “in the wild” and 16 already that the SymBots supported IREDES, along with OPC UA — on order for this summer’s projects, Symboticware is still a a complementary, communication interface. young, but clearly growing, company. Petroski says he The idea is not to replace existing, proprietary systems, expects the company’s eight-person roster to grow to 12 says Petroski, but to step in where these systems have gaps. within a year, mostly adding technical sales and support Two projects currently being worked on at Symboticware staff. Capitalizing on the platform’s flexibility, the company are being demonstrated on Caterpillar 1700G LHD has a number of new applications planned for the SymBot, machines, “based on Caterpillar’s proprietary data system,” ranging from an open WiFi-RFID (radio-frequency identifisays Petroski. “In the context of these projects, we’re devel- cation) reader and tracking system to a portable oping a protocol translator — taking Caterpillar data, environmental monitoring station, which can be moved running it through a translator and pushing it up to the sur- from spot to spot as needed, without requiring costly instalface in the format that the clients wanted; in this case an lation of fixed equipment.

IREDES-based format.”

For the time being, Symboticware is not looking to expand into other industries, although Petroski readily An open-platform solution acknowledges that there are many other promising areas for Look inside the SymBot enclosure and you are not the SymBot. “We want to succeed and excel in these two going to see much in the way of custom parts. Sym- markets before we tackle others,” he says. CIM boticware tries to use as many commercial off-the-shelf parts as it can, says Petroski. In a marked contrast to the www.symboticware.com June/July 2010 | 19

Photo courtesy of Symboticware

TECHNOLOGY

upfront NEW FRONTIERS by Joshua Marshall

Navigating the advances in underground navigation Straight talk on mobile equipment positioning and robotic mapping Photo courtesy of Joshua Marshall

Although this method may be sufficient for some purposes (such as entry-point tracking), it lacks many of the advantages that the satellite GPS provides on surface. Underground, only occasional positioning information is provided — whenever a vehicle happens to be near a device. Installing large numbers of tags for more precise positioning is not an elegant solution.

Positioning truth from fiction Unfortunately, common misconceptions exist about the state-of-the-art in underground mapping and vehicle positioning. The first is that radio signals (e.g., Wi-Fi signals) can directly provide GPS-like positioning in underground mines. There have been some promising advances in this area, but even the most recent research suggests that in non-trivial environments — where there are obstacles that prevent direct Researchers from Carleton University and MDA Space Missions at the CANMET Experimental Mine in Val-d’Or, line of sight to all devices — the probQuebec, where they recently carried out field testing of some concept robotic mapping and underground lem has yet to be fully solved. Three or positioning technologies (left to right: Jamie Lavigne, Unal Artan, Joshua Marshall and Stefan Radacina-Rusu). more overlapping radio signals are nominally required, which is not really n surface mining, the introduction of the satellite-based practical for underground mines, and problems such as global positioning system (GPS) has had a remarkable severe multipath, shadowing and interference have plagued impact, possibly representing one of the most sweeping developers. Nevertheless, this approach does show promise. technological revolutions in the past 30 years. Together A second misconception is that inertial measurement with advances in wireless data communications, GPS has units (IMUs), which consist of accelerometers and gyromade material tracking and fleet management systems scopes, can alone be used for global positioning and mapping. This method is commonly known as “dead recknearly commonplace in surface operations.

Currently, however, no directly comparable technology oning” and works by integrating motion measurements exists for accurate and real-time positioning of mobile over time to estimate position and orientation. However, equipment underground. Yes, there are partial solutions, but measurement errors are also integrated, resulting in a breakthrough product available to mining companies that unbounded estimation uncertainty over time. Early naval vessel navigators knew this very well. When used for mapoperate underground has not arrived. ping, dead reckoning makes it impossible to determine with Technology woes any accuracy when a vehicle has returned to a previously Because satellite GPS signals cannot usefully penetrate traversed area. obstacles like rock, one practice is to place many uniquely Efforts to improve IMU measurements with visual data identifiable radio frequency devices (e.g., RFID tags/receivers (e.g., from lasers or cameras) have a long history in the or Wi-Fi access points) throughout the mine. This method robotics community, such as in planetary rover navigation requires that the wireless devices be placed at known locations and mapping, yet the error accumulation problem often so that equipment can be roughly monitored by registering remains. There are some very accurate IMUs on the market, sensed devices with a central database of device locations by but their high cost makes them impractical. And, ultimately, way of an underground communications network. estimation uncertainty still grows, just more slowly.

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upfront NEW FRONTIERS

Another misunderstanding is that the technology exists for accurately triangulating underground position by using rock-penetrating very low frequency (VLF) signals. VLF signals have a wavelength of between 10 and 100 kilometres. To the best of our knowledge this has yet to be demonstrated and thus, at present, we rate this possibility as inconclusive.

Finally, some believe that existing autonomous mining vehicle products already solve the robotic mapping and positioning problems. Yes, the industry has seen great success in the development of autonomous tramming technologies (although, as a designer, the author may be slightly biased in this regard); however, these systems have not explicitly required a solution to the positioning problem with dead reckoning. This is because they are in fact trained to follow a particular route irrespective of whether the route crosses itself or not. In other words, the nature of the autonomous tramming task requires that the vehicle perform only local positioning, not fully global positioning.

While advances in these areas may be realized in the future, technology consumers should be alert to the difference between credible advances and what may simply turn out to be wishful thinking.

Map-based global positioning Suppose that we could create an accurate “map” of an underground drift network, one detailed enough to include even bumps in the walls and other pertinent information.

Could we devise a technique for estimating a vehicle’s position and orientation within that map? Would this be good enough? Recent developments in robotic mapping and mapbased underground positioning by researchers, including the author, from MDA Space Missions in Brampton, Carleton University, and now Queen’s University, funded in part by the Ontario Centres of Excellence and the Natural Sciences and Engineering Research Council of Canada, has focused on this question.

Such a system would hinge on the ability to create an accurate and globally consistent map. As described earlier, if only dead reckoning were used to build the map, then inconsistencies in the map would inevitably occur. This would be especially apparent in a large environment, such as an underground mine level. The resulting map would be “inconsistent” because it would contain multiple points on the map that represent the same point in the actual environment. This would occur when the sensors used to acquire mapping data return to an already traversed location.

In this work, we have concentrated on the problem of creating a planar grid map — also called an “occupancy grid” — of a large-scale underground mine by using dead reckoning combined with a scanning laser rangefinder. First, information about the environment is collected, which is then used in an offline map generation process. We have been successful at solving the map consistency and positioning problems with an optimization approach that relies on matching laser scans.

Preliminary field testing has taken place in various environments during the past year as we now approach the objective of delivering a GPS-like underground navigation product for underground mining. There is growing confidence that our system will have the potential to improve safety, contribute to the advancement of remote and automated vehicle systems, and enable the design and deployment of unique and truly useful asset management systems for underground operations. CIM www.mine.queensu.ca

About the author Joshua Marshall, P.Eng., is an assistant professor in The Robert M. Buchan Department of Mining at Queen’s University, where he studies advanced mining systems and robotics.

He is also an adjunct research professor in the Department of Mechanical and Aerospace Engineering at Carleton University. He holds two patents related to mining machine automation and has published on the subjects of mobile robotics and equipment automation.

June/July 2010 | 21

upfront EDUCATION/OUTREAC H by Sam Solomon

Teck moulds its new leaders

Photo courtesy of Teck Resources Limited

Development from within pays dividends

The first two generations of the Emerging Leaders Program. A third cohort begins the program later this year.

hen you are looking to hire new managers, you have two options: hire from the outside or hire from within. Teck Resources Limited has elected to take the latter route as much as possible.

“There’s an advantage to working with people who are familiar with our vision, our priorities, our strategy and who have experience in our business,” says Patricia Dillon, Teck’s director of employee communications and engagement.

Teck, like other mining companies, recently found itself facing two crucial human resources issues. First, many management positions are currently filled by employees nearing retirement age, and second, an industry-wide downturn a decade ago pushed a number of mining workers into other industries, creating a generation gap that has left relatively few 40-year-olds in line to take over those management positions.

Recognizing the need created by those factors, Teck elected to provide its current employees with specialized training so that they could one day fill the leadership posts from within the company. And so Teck’s ambitious development programs were initiated.

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Emerging leaders In 2007, Teck created its Emerging Leader Program (ELP) to train employees in management practices and 22 | CIM Magazine | Vol. 5, No. 4

leadership, and to teach them about the company’s operations. Employees are selected for the course from all divisions of the company — from the pits to the corporate offices — based on recommendations by their supervisors.

The program has graduated a total of 29 employees since its inception. One such employee, Andrew Davies, who holds a PhD in geology, was a senior technical expert in Teck’s North American mineral exploration division when he was selected to be part of the first Emerging Leaders class.

After only a month into the program, Davies was thrust into a leadership role and promoted to general manager of exploration — a job on the commercial side of the company rather than the technical one to which he had become accustomed. “The ELP process was kind of a live training ground,” he says.

The program brings a group of workers together for five different learning modules over the course of a year.

“Within the modules, there were lots of 30-minute brainstorming exercises in small groups,” says Davies. “And there was assigned reading prior to each session that tried to get you to do some strategic thinking. It was about how you go from being a technical specialist to being in a broader role with greater complexity and depth, thinking about bigger strategic implications.”

upfront EDUCATION/OUTREAC H

Others in Davies’s ELP cohort graduated to senior management positions at Teck as well. Two became general managers of entire mines, one is now a vice-president of the company, and others are leading initiatives in different areas of Teck’s operations. Last year, for example, a group of ELP graduates were tasked with performing an in-depth review of the company’s sustainability practices. Teck’s new Sustainability Working Group, of which Davies is a member, grew out of that review. “They look at us, in a way, as potential change agents in the organization,” he explains. “We have studied the challenges of the organization, and we have built a tremendous amount of vertical integration.”

The fact that Teck put together a program as forwardthinking as ELP is a testament to the company’s commitment to developing its employees, says Davies. “It’s a powerful retention and development tool,” he adds. “It was a pretty profound experience. It opened my eyes to potential and opportunities that I never thought were in me, but others saw in me. It changed me, and I owe Teck a lot.”

Business Education Program Complementing the Emerging Leader Program is the Business Education Program offered in partnership with Simon Fraser University. Since 2008, Teck has offered a three-year MBA program to employees with identified leadership potential. Currently, there are 24 students enrolled, all of whom are working for Teck full time.

The program, which results in an MBA degree from Simon Fraser University upon completion, is customized to meet Teck’s needs. “The courses are selected to reflect Teck’s business priorities and incorporate Teck case studies and issues and data,” says Dillon. Courses offered include: Ethics, Strategies for Sustainability, International Management, Operations Management, Managerial Finance, Business Strategy, and one called Applied Strategic Analysis, which incorporates a final project.

Employees selected for the MBA program have their tuition paid in full by Teck, continue to work full time while attending six full-day classes per course, and complete course assignments outside of work.

The current program is an extension of the original Business Education Program, which grants a

graduate diploma in business administration upon completion, says Dillon. “We’d been offering GDBA courses since the late 1990s with great outcomes and so we had this positive experience to build on.”

Developing success Both the Emerging Leader and the Business Education Program are beneficial in terms of retention and recruiting, says Dillon. “To know that your manager recognizes you and is prepared to recommend that the company invest to develop your skills and give you a broader understanding across a variety of business units — that absolutely is a very powerful retention tool.” And it is that kind of careeradvancement opportunity that attracts people to come work at Teck, she says.

So far, the company’s development programs have proved popular among employees. Workers who have gone through the programs have particularly appreciated receiving personalized feedback on their performance in a variety of areas, including interpersonal skills, says Dillon.

“At the end of the day,” she explains, “it’s not just technical skills you need to be a good manager.” That is why Teck has expended so much energy developing its own wellrounded leaders. CIM www.teck.com

June/July 2010 | 23

upfront Q&A by Ryan Bergen

“Projects guy” gets down to work New CIM president to apply a steady hand balanced view of the importance our business. We do, however, have to be very careful that we preserve our integrity; that we provide facts and not be seen as trying to use those facts for any particular political purpose.

Photo courtesy of Normand Huberdeau/NH Photographes

CIM: 2009 was a tumultuous year. How, in retrospect, did CIM handle it?

Twigge-Molecey: CIM did extremely well. There was a plan in place for the Vancouver event, as well as various other events throughout the year; they all happened as planned, they all made money for us. So, one way or another, the approach of following through with our plans while being cognizant of the changes happening around us worked out well. There were certainly times when we were worried about who would sign up for Vancouver, but that turned out to have been misplaced concern.

IM’s current president took the lead at an auspicious time. This year’s CIM Conference and Exhibition 2010 in Vancouver, where Michael Allan passed the torch to Chris Twigge-Molecey, enjoyed an exceptional turnout with over 6,000 participants. In addition, there was an equally strong turnout for the threeday Mining in Society show. CIM Magazine spoke to the new president to find out how to carry that momentum forward and what challenges lay ahead.

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CIM: In Vancouver, plenary moderator Rex Murphy gave a rousing defense of the mining industry. He pointed out that it “does things that are central to the world in which we live.”

Do you believe the industry is doing a good job of portraying this?

Twigge-Molecey: I think, as an industry, we do an appallingly bad job of telling the world how important we are to the civilization we live in. I don’t think many people understand the range of consumer goods and building materials — things that make our lives liveable — depend on the mining industry.

CIM: So then, what should we do about it?

Twigge-Molecey: Public advocacy is not in CIM’s mandate.

We leave that to the Mining Association of Canada (MAC).

However, we have a responsibility to ensure the relevant facts are available to support MAC. Proactively, CIM’s Mining in Society initiative is hugely important. It is helping students understand where the mining business fits into economic activity so that they grow up with a more 24 | CIM Magazine | Vol. 5, No. 4

CIM: Last year, as part of its strategic planning, CIM leadership spent time revisiting the Institute’s organizing principles and created a “blueprint” to direct future growth. How can we gauge the fidelity of future activities to past values and achievements?

Twigge-Molecey: Implementation of the blueprint is a process. The first step was to get the framework for our vision, values and aspirations in place, which was done by a group from CIM’s Council. The next step is to engage the leadership of the societies and branches in that same framework, who will then, in turn, need to engage the members. It is a cascading communication program rather than a detailed action plan. At this point we’ve passed the first phase and are beginning to communicate more effectively with the societies and branches.

CIM: You’ve referred to yourself a “projects guy.” The corporate information technology redesign initiative is a major project with a lot of potential. How will CIM achieve that potential?

Twigge-Molecey: Those in the projects business know that the way you get through one successfully is by clearly defining the scope, the milestones, the budget and then monitoring progress. We need to track where we are as compared to where we should be and then be ready to ask ourselves “what are we going to do about it?” The key is to proactively manage a project rather than let it flow under its own momentum.

upfront

Photo courtesy of Normand Huberdeau/NH Photographes

Q&A

Executive networking: (from left to right) Francois Landry, Martin Poirier, CIM president-elect Chuck Edwards and Chris Twigge-Molecey on the exhibition floor in Vancouver.

The IT project is the biggest CIM has ever undertaken.

It is a complete revamping of our infrastructure for the future. A lot of the services that we plan on providing the membership depend on that infrastructure. IT projects are infamous for going over budget and over schedule, and we don’t have the capacity to handle that if that happens. So it is essential that we stick to the budget, scope and schedule.

CIM: You’ve spoken of cyber-membership as one means of achieving membership growth. What do you imagine for this?

Twigge-Molecey: CIM is about knowledge transfer; it is a community with a shared interest around mining, metallurgy and petroleum.

There is a large number of people in our business around the world that do not have strong technical societies to support them, who would be very happy to tap into our knowledge base and to network with us in a variety of different ways. Cybermembership seems a very good opportunity to get those professionals engaged. They may operate in countries where full fees are a lot of money for them, but they would get a large percentage of the benefits through the Internet, which we can offer at a lower price.

CIM: How else can CIM extend its international reach?

Twigge-Molecey: Conflicting conferences is an issue that our international vice-president, Peter Lahucik, and his country groups are facing head on. The North American Extractive Metallurgy Council, which includes CIM’s Metallurgical Society; the Minerals, Metals and Materials Society; and the Society for Mining, Metallurgy and Exploration, has been very effective in this respect. The three are now deliberately coordinating their conferences in North America. We have also started coordinating our conferences with the South Africans and the Australians, but we have a way to go on that.

There is a large number of people in our business around the world that do not have strong technical societies to support them, who would be very happy to tap into our knowledge base and to network with us in a variety of different ways.

CIM: You have talked about strengthening branches and societies. What will tell you that CIM is succeeding?

Twigge-Molecey: We’ll be watching to see if our membership and our retention rates are increasing, because people stick around if they are getting value. For branches and societies, the same criteria apply. The other criterion I’m focused on is the quality of the presentations at the technical functions. The Canadian Mineral Processors Society and MetSoc have excellent material and there is no reason why that shouldn’t be our expectation for all societies. CIM June/July 2010 | 25

upfront Q&A

president-elect Chuck Edwards is already pushing hard to have peerreviewed papers for the 2011 Conference in Montreal. I expect that we will have some, which is a step in the right direction. That said, there was a time when many of the technical presentations were limited to vendor presentations, so we have come a long way in developing a world-class technical program.

This time next year …

I hope to be able to report on a year of continued growth in services, a growth in our international reach and influence, and upgraded technical publications, all despite the economic uncertainty.

CIM: CIM is dedicated to supporting the Canada Mining Innovation Council (CMIC). Why is this engagement important?

Twigge-Molecey: I’ve spent all my working life on the innovation end of the mining and metals business through the development and commercialization of new technologies.

I’m a firm believer that one has to continue to innovate in a controlled way for a number of reasons — improving safety is a big driver, as are economics and environmentally sustainable technologies. Research turns money into knowledge, but innovation turns knowledge into money. We have members on both sides of this equation, and CIM supports CMIC in its interest to align their objectives and “bridge the gap.” CMIC can help ensure that there is a consistent and collaborative framework that researchers are working within to avoid duplicating efforts. We also need to be sure that researchers are doing things that have a prospect of contributing to the innovation requirements that will keep this country and our industry competitive.

The CMIC, with the support of CIM, can help meet that challenge.

CIM: What will the continued development of the Centre for Excellence in Corporate Social Responsibility mean for CIM and the industry?

Twigge-Molecey: It’s exciting that the federal government recognizes that CIM has a role to play in this forum. We see it as an opportunity to lead internationally in terms of CSR expertise, developing CSR resources that can be deployed by mining companies anywhere in the world.

The feedback I’ve had from both CIM members and nonmembers has been that it is a very positive initiative and they are anxious for the resources that it will make available. As many mining projects around the world are derailed by CSR-related issues, these tools, case studies and disciplined thinking that we are making available will be hugely useful.

26 | CIM Magazine | Vol. 5, No. 4

CIM: Why did you join CIM originally and what advantage did it provide?

Twigge-Molecey: When I was a young mechanical engineer, working on smelter projects, I was approached to join the non-ferrous pyrometallurgy committee of MetSoc — I was honoured to be asked. Through that committee I got involved in organizing conferences and, once on the inside, the networking opportunities with clients, suppliers and members — the people you need to know to be effective in the industry — was very obvious.

CIM: How do we attract the newest generation of students and young professionals?

Twigge-Molecey: If you are going after the young people who have already decided they are interested in mining and metallurgy, the key is to make sure they stay in the business, and that’s not easy. You have to manage the business cycles and some companies do that better than others.

Also, there are a lot of people in our business who are not metallurgists, mining engineers or geologists. Mechanical, electrical, civil and environmental engineers all go to different departments and they may not even think about mining when they are studying. To attract them is a different kind of challenge. We are starting to think about attracting students from these other fields to our university chapters. We will have to give the initiative a year or so to take root, assess progress and adjust our course accordingly.

CIM: One storyline in Vancouver was how CIM and its key events flourished despite the turbulence of 2009. What story do you want to be able to tell next year at the Conference and Exhibition in Montreal?

Twigge-Molecey: It is clear we are heading into another period of economic uncertainty and commodity price volatility. Canada, as we found out last year, is better placed than many countries to withstand these shocks.

This time next year, despite the turbulence globally, I hope to be able to report on a year of continued growth in services, a growth in our international reach and influence, and upgraded technical publications, all despite the economic uncertainty. We look forward to celebrating a blockbuster conference and exhibition, which will include technical streams dedicated to iron ore and the environment in addition to those focused on best practices, projects, innovation, people and communities, as well as finance and risk management. It will be an exciting year. CIM

CIM MAIN EVENTS CIM is keeping you busy over the coming year with numerous opportunities for knowledge sharing, networking and learning how your business can operate more responsibly.

Mark your calendars!

COPPER 2010 June 6-10, 2010 Hamburg, Germany www.cu2010.gdmb.de MINING SOCIETY OF NOVA SCOTIA 123rd Annual Meeting June 10-11, 2010 Cape Breton, NS www.miningsocietyns.ca URANIUM 2010 August 15-18, 2010 Saskatoon, SK www.metsoc.org/u2010 CONFERENCE OF METALLURGISTS (COM 2010) October 3-6, 2010 Vancouver, BC www.metsoc.org/com2010

LEAD ZINC 2010 October 3-6, 2010 Vancouver, BC www.metsoc.org/ COM2010/tp_lead_zinc.asp MAINTENANCE ENGINEERING/ MINE COPERATORS’ CONFERENCE (MEMO 2010) October 24-27, 2010 Sudbury, ON www.cim/org/memo2010 43rd ANNUAL CANADIAN MINERAL PROCESSORS OPERATORS’ CONFERENCE January 18-20, 2011 Ottawa, ON www.cmpsoc.ca

CIM CONFERENCE & EXHIBITION 2011 MAY 21 – 25, 2011 • MONTREAL, QC

www.cim.org/montreal2011

Photo courtesy of Bucyrus

logistics

From the open skies to the open pit, predictive maintenance was first applied in the airline industry.

How reliable are your assets?

Data and predictive models are reducing equipment downtime, but system integration lags

By Gillian Woodford

I

f it ain’t broke don’t fix it. Instead, find the worn out component that may break before it causes a catastrophic failure to the whole machine. Mining’s traditional running-time-based approach to asset maintenance is gradually giving way to a more sophisticated predictive method that relies on algorithms and diagnostic data obtained from equipment sensors to produce real-time warnings about potential breakdowns.

The shift is already contributing to less downtime and improved reliability. But experts say the mining sector lags

28 | CIM Magazine | Vol. 5, No. 4

behind other industries in integrating its data collection systems, thereby rendering much of the data collected virtually useless, and stops companies from really reining in the dreaded downtime that costs them hundreds of millions of dollars each year.

Introducing error Once upon a time, the concept of long-term reliability really did not exist. But, unlike their operators, machines are not biological creatures. If they are well-maintained and

logistics

Photo courtesy of Rio Tinto

replacement equipment for use when broken equipment is in the shop — a huge investment.

Predictive maintenance programs help reduce these problems. “You don’t necessarily have the truck come in for traditional standard maintenance,” explains Malcolm Scoble, professor of mining engineering at the University of British Columbia. “You can call it in when the part is reliably observed to be approaching failure, scheduled at a sensible and convenient time.” This is done using a combination of wear-and-tear data coming from sensors and operator inspections. Predictive models based on that same data can tell you when to fix a subcomponent. This takes less time, Aerial view of a 45-tonne CAT haul truck laden with grade 1 armour stone (10 to 20 tonnes) destined for the fewer parts and costs less than pulling breakwater at the harbour in Madagascar. On either side of the truck are the various grades of rock that are the machine out of service for a large stockpiled at the quarry. component repair, such as an engine when it is not warranted. their parts replaced when worn out, they can theoretically There are a variety of sources of data for reliability mongo on for years and years without diminished performance. itoring. The principal of these are sensors located on the This rather revolutionary notion is actually not new, as it comes to us from the engineers who developed the process called reliability-centred maintenance (RCM) for Digital mining communication solutions the aviation industry in the 1950s and 1960s. above, below and through the earth After World War II, the commercial air travel industry MST provides communications solutions for open pit was ripe for expansion. But crash rates were troublingly surface mines, surface operations and underground high and very often caused by equipment failure. These mines around the world. For mining communications, were believed to be due to equipment age and so timewe’ve got you covered. based maintenance was ramped up. To everyone’s dismay, New: ImPact BreadCrumbs – the world’s most efficient crashes actually increased. and easily installed Wireless Mesh System for The industry was frantic to fix the problem. After caresurface mine applications, as well as rapid response communications for underground Mine Rescue teams. fully analyzing the crash data, aviation engineers quickly discovered that, in fact, only 11 per cent of airline equipment failures were due to age. Astonishingly, the highest proportion of failures actually occurred in new or recently repaired equipment. They realized they needed to meticulously tease out each underlying factor behind the failures ImPact ICCL PED Underground Wi-fi A light weight cap The only proven in order to prevent new ones. Thus RCM was born. Its first communications lamp with optional TTE signaling for tracking, VHF Radio, PED system in use success was the development of the Boeing 747 in the vehicle data VolP, Pager, RFID Tag. at mines. and other high early 70s.

WWW.MINESITE.CA bandwidth data applications.

sales@minesite.ca 1-866-747-2871

Maintenance then and now These principles inform most of the predictive maintenance programs used in today’s mining companies. But most operations are still using a combination of runningtime-based and monitoring-based maintenance.

Traditionally, maintenance has been performed either when a breakdown occurs or scheduled after a certain number of running hours. However, as the aviation industry so starkly demonstrated, time-based maintenance is not necessarily the way to go. In addition, this requires having

ImPact Tracker BreadCrumbs Specifically

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June/July 2010 | 29

Image courtesy of Ivara

Asset intelligence from consolidated data sources

machines. Most heavy machinery used in mining now comes hardwired with a number of sensors to monitor things like vibrations and engine temperature. Some have sensors that keep an eye on air filters; others monitor the oil and tires. “We’re offering vibration sensors as standard,” says Joe Helfrich, senior vice-president of surface mining products at equipment manufacturer Bucyrus. He adds that the cost per sensor has gone down enormously in the last few years.

Operator inspections are also key. At many companies, operators still enter their inspection data on a paper check sheet, which is filed away afterward. There are higher tech alternatives, such as asset performance management company Ivara’s integrated system, which has operators using handheld devices instead of paper sheets to enter their inspection data. This is then transmitted wirelessly to the centralized system where it is crunched with the rest of the data to produce recommendations on when repairs should take place. But users of this sort of approach are still in the minority.

Reliability in action The reams of data generated by these sources are handled in a variety of ways by different companies. Many have developed pragmatic systems to mine data effectively.

At Vale, for example, “data is automatically collected based on operator input and system diagnostics,” explains Frank Catalano, assistant manager at the company’s Stobie nickel mine in Sudbury. The data is exported and analyzed externally, much of it in partnership with Sudbury’s Laurentian University.

The leader of this research partnership, Nick Vayenas of Laurentian’s School of Engineering, uses Vale’s data to create reliability models using genetic algorithms. For example, Catalano says, Vayenas looked at the company’s load-haul-dump machine fleet and determined the primary causes for downtime. An improvement team was formed locally at the mine site to figure out how future failures can be prevented. “The teams brainstorm and put ideas into play and measure if they work,” says Catalano. “If not, they try something else.” Vale has been collecting data for about a decade and launched its data monitoring system three years ago using a 30 | CIM Magazine | Vol. 5, No. 4

Photo courtesy of Bucyrus

logistics

number of technology consultants. The system is now standardized across Canadian and UK operations.

A small number of companies have integrated their data monitoring and analysis systems and brought them in-house. Rio Tinto’s ongoing mine monitoring system is a good example. In 2004, Rio Tinto decided to tackle its maintenance problem head-on. The company estimated that through a combination of dispatching, asset health and high-precision GPS improvement, it could provide net present value by US$100 million over 10 years, but that figure is widely seen as “a huge underestimation,” says Dan Adams, senior advisor in mine monitoring and control at Rio Tinto.

In planning, Rio Tinto chose the technologies it wanted to use and then set about ensuring they were interoperable. Implementation often had to be customized to each site, based on its particular needs. Remoteness and temperature extremes (ranging from -50ºC in Labrador to 40ºC in Namibia) added a further layer of complexity. In many cases, the vendors — Caterpillar, Modular Mining and Mining Information Systems — had to go to great lengths

Photo courtesy of Rio Tinto

From the open skies to the open pit, predictive maintenance was first applied in the airline industry. Inset: A laden truck deposits its load of ore into a pocket at the Iron Ore Company of Canada's Luce pit.

to make their systems compatible with technologies and environments at the various sites. So far, 20 mines are integrated and others are at various stages of integration.

Remote control This approach has completely revolutionized the way Rio Tinto approaches maintenance. “In the old days, you’d detect a problem because smoke was coming out of a machine,” says Adams. “Now, if a subcomponent fails, we June/July 2010 | 31

logistics can identify it remotely.” He gives the classic example of a shovel failure. Previously, the operator would call in to say he was having a problem. The controller would tell him to reset the alarm. This would be repeated up to five more times until finally the operator saw smoke pouring out indicating catastrophic failure. “Now,” says Adams, “we find the reason behind it.”

The result has been both improved reliability and a change in priorities. “We prevent a lot of catastrophic failures now,” he says, adding, “it’s become unacceptable to have an engine fail, whereas five to 10 years ago that wa not the case.”

This culture shift has been aided by major improvements in the reliability of the machinery itself. “The reliability of our electric shovels in the last 10 years has gone from the high 80s to the high 90s,” says Helfrich, although he acknowledges it is tough to attribute this solely to improved monitoring and detection. “It’s a significant driver, but the same technologies have made overall reliability better too.”

So are these reliability programs really saving anybody any money? “Absolutely,” says UBC’s Scoble. It is hard to quantify how much, but “like safety, maintenance is something companies can’t afford to ignore.” Ivara tells its clients that overall maintenance costs can usually be slashed by about 20 per cent using its integrated RCM-based approach, with an even larger knock-on savings in downtime reduction.

Vale’s Catalano says maintenance is so enmeshed with other logistical functions it is difficult to put a dollar figure on the benefits of its reliability program but he is adamant that “it’s definitely reducing costs.”

In a case study, Ivara showed how they were able to project a reduction in maintenance costs related to cylinder failure on a CAT 5130 Excavator. The company’s policy, based on manufacturer recommendation and operator experience, was to change the cylinders every 10,000 hours. Ivara’s RCM practitioner reassessed the cylinder function in its real context and realized leaking cylinders were causing total failures. A simple solution — checking the cylinders visually for leaks every two weeks – was recommended. Maintenance costs for the excavator were projected to drop from $635,000 to $43,000.

The human element For Rio Tinto, the biggest hurdles have not been with resources or technology, but with buy-in. “Our biggest challenge has been getting people to embrace new processes and new technology,” says Adams. Surprisingly, training, promoting and having people keep using the technology have taken up more time than getting the technology to work. Things are getting better, but some sites have been slow to adapt. “There’s been a shift from mechanics working on machines with wrenches to looking at onboard data from remote monitoring,” he says. “It’s been a lot of work to demonstrate the benefit.”

32 | CIM Magazine | Vol. 5, No. 4

At Rio Tinto, implementation of its system required a huge range of expertise. As many of its sites are extremely remote, just finding people to procure, install and support the base technologies like wireless servers was a mammoth undertaking.

Vale encountered similar issues during implementation of its system. “Everybody’s busy; it’s hard to get people excited that there’s something in it for them, and especially staying with it,” says Catalano. “We try to involve people in developing the system – that helps.” In terms of manpower, maintenance engineers were brought in when they first set up the system and they continue to run the remote control centres.

Ivara’s approach is to teach people at the mine how to use the system. They do not perform analysis for their customers. The software can be managed by existing IT staff and no new engineers are needed to run it.

logistics “However, there is a real need for existing people to take on the role of reliability practitioner,” says Bill Fulton, who holds that title at Ivara.

The future is automatic Most in the industry say the future of equipment technology is automation, so some of these manpower issues could eventually disappear. By eliminating operators from the equation, costs can be reduced by cutting back on salaries, minimizing safety concerns and reducing downtime associated with shift changes and other manpower issues.

Rio Tinto has built future automation in as part of its monitoring system planning. It has already found that sites already set up with monitoring and maintenance technologies are much more comfortable adding new technologies.

At their Western Australia iron ore site, for instance, an autonomous drill project has recently been successfully integrated into the existing monitoring and control system.

Reliability is an even bigger concern with automated equipment than operator-run equipment. Because it is often more complex, there are more things that can break.

Taking one of these machines out of service is a massive undertaking, so preventing failures is more important than ever.

Vale’s Catalano has another compelling reason to move towards automation: automated equipment will produce better data. “The data is cleaner if the operator is eliminated,” he says. “You go into the system and program it to produce outputs.” The information would be uploaded wirelessly and produce reliability data. Problems would be flagged directly by the system to controllers, and management would decide whether to take action. This level of automation is not realistic yet at most mines because the base technology is not currently in place – most mines do not have wireless networks installed, for example. But Catalano adds that most new mines include such technology in their feasibility studies.

Trouble sharing Some non-operators believe mining companies have stalled in their commitment to really taking reliability to the next level. “There are big missing links,” says Ivara’s Fulton.

“There are lots of islands of data out there squirreled away in Excel or Access files that are not connected to decisionmaking tools driving the right work.” It’s estimated that 70 per cent of reliability analyses are never implemented, mostly because companies flounder with the complex follow-through required to get them executing in computerized maintenance management systems.

The reasons for this are not clear. Some, like Helfrich, believe operators and manufacturers are at a bit of an impasse in terms of sharing strategic data. “Sometimes there is a turf war between the original equipment manufacturer and the owner over who owns the data,” he says.

“Mining operators will say, ‘We don’t want the data leaving the mine, because we don’t want it to end up in the wrong hands’. I understand that, but the data is unusable.”

Helfrich says manufacturers need to bring operators around to sharing strategic data, which will help make the machines better, improving everyone’s bottom line. “We need to demonstrate how we’ll protect the data,” he adds.

“If we don’t trust each other, all the data in the world won’t make the machines more reliable.” Helfrich adds that on the tactical data side, as Rio Tinto’s story demonstrates, there are no such ownership issues.

Fulton thinks the mining industry has simply been on standby but is finally realizing that in a fluctuating commodity market, slashing downtime is suddenly a real priority. He says mining can take its cue from clients in the power generation sector. “They’re eager to share information. We’ve even set up a client data sharing site on the Internet.” Even closer to home, the steel industry has started sharing data with its colleagues in the aluminum sector. “They realize there’s no benefit to holding back information on equipment failure,” says Fulton. “There’s no competitive advantage.” CIM June/July 2010 | 33

logistique

Vos actifs sont-ils fiables?

Les données et les modèles prédictifs réduisent le temps d’arrêt des équipements mais l’intégration des systèmes tarde

L

a tradition des mines d’effectuer la maintenance selon le temps d’utilisation est graduellement remplacée par une méthode prédictive plus sophistiquée, basée sur des algorithmes et des données de diagnostic obtenues de sondes sur les équipements dans le but de produire des alertes sur de potentielles défaillances.

La fiabilité est déjà améliorée et il y a moins de temps d’arrêt. Cependant, selon les experts, le secteur minier est loin derrière les autres industries dans l’intégration des systèmes de collecte de données; les temps d’arrêt coûtant des millions de dollars par année ne sont pas maîtrisés.

On croyait que les machines, tout comme le corps humain, se détérioraient avec le temps. Mais les machines ne sont pas biologiques; si elles sont bien maintenues, elles devraient fonctionner sans diminution de rendement.

Après la Deuxième Guerre mondiale, le nombre de voyages par avion augmentait mais le nombre d’écrasements était très élevé. On croyait que l’âge des équipements était en cause et la maintenance en fonction du temps a augmenté. À la surprise générale, le nombre d’écrasements a tout de même augmenté. Après avoir analysé les données, les ingénieurs ont constaté que seulement 11 pour cent des pannes d’équipement étaient dues à l’âge et que la plus grande proportion de défaillances était sur des 34 | CIM Magazine | Vol. 5, No. 4

équipements neufs ou récemment réparés. C’est ainsi qu’est née la maintenance axée sur la fiabilité (MAF).

Les programmes de maintenance prédictive aident à réduire les problèmes. « Vous ne faites pas nécessairement entrer le camion pour une maintenance traditionnelle régulière », explique Malcolm Scoble, professeur de génie minier à l’Université de la Colombie-Britannique. « Vous pouvez le faire entrer lorsqu’une pièce semble approcher une défaillance et selon un horaire qui vous convient. » Cela se fait en combinant des données sur l’usure, enregistrée par des capteurs, et des inspections par les opérateurs. Les modèles prédictifs basés sur ces mêmes données peuvent vous indiquer qu’il est temps de réparer une sous-composante. Il faut alors moins de temps et cela coûte moins cher que de retirer la machine du service pour une réparation majeure.

Des capteurs installés sur les équipements constituent une source de données pour le suivi de la fiabilité. La plupart des équipements miniers ont maintenant des capteurs pour les vibrations et la température des moteurs. D’autres capteurs peuvent surveiller les filtres, l’huile et les pneus. « Les capteurs de vibrations sont maintenant standards », dit Joe Helfrich, vice-président principal, produits d’exploitations en surface, Bucyrus. Il ajoute que le prix des capteurs a grandement chuté au cours des dernières années.

Photo courtoisie de Bucyrus

Des capteurs sur les équipements lourds permettent un suivi de fiabilité plus complet

logistique Les inspections par les opérateurs sont des points clés.

Cependant, dans plusieurs compagnies, les opérateurs inscrivent les données sur une feuille de papier qui est ensuite classée. Il existe d’autres options telles que les appareils utilisés par la compagnie Ivara, une compagnie de gestion du rendement des actifs. Les opérateurs ont de petits appareils pour entrer les données, lesquelles sont ensuite transmises à un système centralisé où elles sont traitées pour produire des recommandations de maintenance.

Certaines compagnies ont développé des systèmes pragmatiques pour traiter les très nombreuses données générées. Chez Vale Inco, « les données sont collectées automatiquement : les diagnostics du système et les entrées des opérateurs », explique Frank Catalano, assistant directeur de la mine de nickel Stobie à Sudbury. Ces données sont exportées et analysées à l’externe, en grande partie en partenariat avec l’Université Laurentienne. Le directeur de ce partenariat de recherche, Dr Nick Vayenas, utilise les données de Vale Inco pour créer des modèles de fiabilité au moyen d’algorithmes génétiques.

D’autres compagnies traitent les données recueillies à l’interne. Rio Tinto a choisi les technologies et elle s’est assurée qu’elles étaient interexploitables. L’implantation devait être adaptée pour chaque site. L’éloignement et les températures extrêmes (de –50 ºC au Labrador à 40 ºC en Namibie) ajoutaient à la complexité. Caterpillar, Modular Mining et Mining Information Systems ont adapté leurs systèmes aux technologies et aux environnements locaux.

Les commandes à distance ont complètement changé la maintenance chez Rio Tinto. Avant, un opérateur signalait qu’il avait un problème sur un équipement et le contrôleur lui disait de redémarrer le moteur; cela se faisait à quelques reprises jusqu’à ce que de la fumée sorte du moteur. « Nous empêchons maintenant des défaillances catastrophiques », dit M. Adams. « Il est actuellement inacceptable d’avoir une panne de moteur. » Est-ce que les programmes de fiabilité sauvent vraiment de l’argent? « Absolument », dit M. Scoble. « Il est difficile de quantifier les montants mais, tout comme la sécurité, les compagnies ne peuvent les ignorer. » La compagnie Ivara dit à ces clients que les coûts d’ensemble de la maintenance peuvent être réduits d’environ 20 pour cent par l’utilisation de la MAF, sans compter les économies générées par la réduction des temps d’arrêt.

Dans une étude de cas, Ivara a montré la réduction des coûts reliée à une défaillance du cylindre sur une excavatrice CAT 5130. La politique de la compagnie, basée sur les recommandations du manufacturier, était de changer les cylindres à toutes les 10 000 heures. Le spécialiste chez Ivara a réévalué la fonction du cylindre et a réalisé que des fuites causaient les défaillances. Avec une solution simple de vérification visuelle régulière pour des fuites, les coûts de maintenance de l’excavatrice devraient chuter de 635 000 $ à 43 000 $. « Notre plus gros défi chez Rio Tinto a été de faire accepter les nouveaux procédés et la nouvelle technolo-

gie », dit M. Adams. De manière surprenante, la formation, la promotion et l’utilisation constante de la technologie ont demandé plus de temps que l’implantation de la technologie. « Les mécaniciens travaillant avec une clé doivent maintenant regarder des données téléchargées. » Vale Inco a rencontré des difficultés semblables. « Tous sont très occupés; nous avons impliqué les gens dans la mise en place du système et cela a aidé », dit M. Catalano.

L’approche d’Ivara est d’enseigner aux gens de la mine à se servir du système. « Les logiciels peuvent être gérés par le personnel d’informatique en poste; il faut cependant développer un poste de fiabiliste », dit Bill Fulton, détenteur de ce titre chez Ivara.

L’avenir de l’industrie réside dans l’automatisation. En éliminant les opérateurs, les coûts chuteraient encore plus : salaires, sécurité, changements de quarts de travail et autres. Rio Tinto a déjà intégré l’automatisation dans sa planification de systèmes de suivi. À son site en Australie occidentale, un projet de foreuse autonome a été intégré avec succès au système existant de suivi et de contrôle.

Selon Frank Catalano, Vale Inco a une autre bonne raison d’automatiser : les équipements automatisés fournissent de meilleures données. L’information sera téléchargée et produira des données fiables. Les problèmes seraient signalés directement à des contrôleurs et la direction déciderait d’agir ou non. Ce niveau d’automatisation n’est pas réaliste à la plupart des mines puisque la technologie de base, par exemple les réseaux sans fils, n’est pas encore en place. Il souligne cependant que la plupart des nouvelles mines incluent une telle technologie dans leurs études de faisabilité. « Il existe de grandes lacunes », dit M. Fulton. « Beaucoup de données sont stockées dans des dossiers Excel ou Access et ne sont pas reliées à des outils de prise de décisions. » Environ 70 pour cent des analyses de fiabilité ne sont jamais implantées car les compagnies ne mettent pas en œuvre les suivis complexes requis pour que l’exécution se fasse par les systèmes informatisés de gestion de la maintenance.

Les raisons de la non-implantation ne sont pas claires.

Certains, comme M. Helfrich, croient que les opérateurs et les manufacturiers hésitent à partager des données stratégiques. Les opérateurs miniers ne veulent pas que les données quittent la mine; elles sont alors inutilisables.

Selon lui, le partage de données stratégiques aidera à améliorer les équipements. « Si nous ne pouvons pas nous faire confiance les uns les autres, toutes les données au monde ne rendront pas les équipements plus fiables. » M. Fulton croit que l’industrie minière est simplement en attente mais qu’elle réalise que la diminution des temps d’arrêt est une véritable priorité. L’industrie minière peut profiter de l’expérience du secteur énergétique – il y a même un partage de données dans l’Internet. L’industrie de l’acier a aussi commencé à partager des données avec le secteur de l’aluminium. « Il n’y a aucun avantage compétitif à retenir de l’information sur les pannes d’équipement », conclut M. Fulton. ICM June/July 2010 | 35

Photo courtesy of Farallon Mining

featured mine

Workshops supported by Farallon helped local women make the best use of food items such as soya, which was novel to the daily diet.

Farallon joins the neighbourhood by | Dan Zlotnikov

With a trio of newly identified gold zones to complement the recently commissioned zinc mine on its Campo Morado property, Farallon Mining has great promise. That promise includes a commitment to the community that hosts the operation.

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It is the weekend and you have been looking forward to some relaxing gardening. The eggplants should be just about ripe.

With a smile you grab the work gloves and head out back.

The sight that greets you is anything but relaxing. Ragged pits and mounds of dirt have replaced orderly rows of lettuce.

The tomato plants’ roots are dug up and shredded. Horrified, you turn to your eggplants to find the culprit — the neighbours’ dog — excitedly tunnelling its way into the soft dirt under them.

The dog’s owners, who only recently moved into their newly built home across the street, are understanding and apologetic.

The wife offers you a cold drink while the husband pulls out a cheque book. “How much?” he asks.

Now, suppose the conversation goes differently. The owners are still apologetic but no one reaches for a cheque book.

36 | CIM Magazine | Vol. 5, No. 4

Instead, they offer to help fix what can be fixed and half an hour later are both in your back yard, spade and shovel in hand.

The next morning there is a pickup truck parked outside and a pair of workers are closing up any dog-sized gaps they find.

A clear vision When Dick Whittington, president and CEO of the mid-tier mining operator Farallon Mining, talks about his mine being a good neighbour to the local communities, he is very clear about which of the two examples above he has in mind. “We need to be good neighbours,” he says. “Everything we do, we do just as if you moved into a new neighbourhood. We want to truly be an integrated part of the community.” Simply writing a cheque just won’t cut it.

Farallon has been been working hard to be a good neighbour in the area near its G-9 Mine in Mexico’s southwestern Guerrero state. In addition a number of local initiatives the company has launched, Whittington has embraced corporate social responsibility (CSR) as an underlying principle to guide day-to-day decision-making.

“The sustainable development definition we developed really starts with me,” he says. “It starts with a commitment from the top and manifests itself in different ways through the organization. Before you start writing stuff on paper, it has to come from within yourself, within the people in the company. They really have to live CSR or it’s The concentrate is trucked 700 kilometres to the port city of Manzanillo. just another mantra, another placard on the wall that everyone’s supposed to follow, but once it’s up on the over — they’re talking about respect and the relationship with the community.” wall, everyone just gets on with their job.”

Farallon’s socioeconomic team doesn’t wait for the local resA working relationship idents to come to the mine with complaints. Instead, the team To attain the level of acceptance and awareness Whittington is on the road every day, listening to local issues and bringing describes, Farallon’s employment contracts start not with pro- them before the company leadership. “You can’t run a mine duction goals, efficiency improvements or safety guidelines but with a requirement that all employees — from senior management to the underground drillers — be respectful, responsible members of the community.

The importance of CSR is embedded in Farallon’s corporate structure. “There are two people who can shut this mine down,” says Whittington, “the general manager of operations and the general manager of socioeconomics. If the general manager of socioeconomics says, ‘You guys are screwing it up, we’re not doing things right, and we’re going to have to shut this mine down,’ then we’re going to shut it down. Now, he’s not going to do it irresponsibly, but what it tells everybody in the organization is that you have to listen to the socioeconomic people. You cannot ignore them.”

The general manager of socioeconomics reports directly to the CEO and not to the general manager of the mine.”That means he has access to me on any issues, at all times, and he cannot be shouted down or ignored by the production machine,” says Whittington.

Whittington also recognized that the production team and the socioeconomic team needed radically different skill sets.

“The production machine is impatient,” he says. “It’s demanding. It’s a heartbeat throbbing away at 160 beats per minute.”

For the socioeconomic team, he was looking for a different skill set. “You want empathy. You want people who are going to listen more than they’re going to talk. You want people with immense patience — people who can listen to someone complaining about their dog getting run over and yet fully understand that this person isn’t talking about their dog being run June/July 2010 | 37

Photo courtesy of Farallon Mining

featured mine

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Farallon Mining's Campo Morado Project is 160 kilometres southwest of Mexico City.

Setting down roots In addition to the work of its socioeconomic team, the company has helped fund an adult literacy program that serves 22 local communities. Since the program began in 2006, it has seen 40 students graduate.

A 1,000-tree nursery is in place and the company plans to expand it to 100,000 trees to be replanted back into the surrounding area. Some of the trees currently being grown were on the verge of extinction and were saved, thanks to the nursery.

The 100,000 trees are just one of the long-term benefits Whittington hopes the mine will bring to the region. Currently, the mine employs 400 workers directly and approximately 1,400 more indirectly; many of the latter are skilled tradespeople.

“If you look at an area where a mine started up, the process requires you to develop skilled workers: electricians, carpenters, mechanics,” says Whittington. “All of these people can move to a different local job or start up their own business to sell products or services to a different end user than the mine. That, ultimately, is the goal.”

For Farallon’s CSR initiatives, Whittington emphasizes the importance of not simply handing down solutions – not being Santa Claus, as he puts it – but of creating the capacity for local communities to address their own problems over the longer term. For instance, when one local community wanted to connect itself to the national grid, Farallon could easily have shouldered the $160,000 cost of the project. But the community’s problem was not a lack of funds, Whittington says. The Mexican federal government offered grants for this type of project but the local administrators were daunted by the 100-page application forms. Farallon offered its assistance with the paperwork and the community retained all ownership of the project. The result was a successful grant application and the power line is now in the final stages of being installed.

Farallon’s success at G-9 stems from not just addressing community concerns but doing so in a manner that creates future capacity, says Whittington.

“It’s an intellectual undertaking as well as a lot of hard work,” he says. “You can’t change the whole world, but hopefully you can change one corner of it if you integrate yourselves effectively into the culture without in any way imposing yourselves onto that culture. That’s the big challenge.” CIM www.farallonmining.com Opposite page, top to bottom: 1. Seedlings from the mine's tree nursery will be transplanted to surrounding areas; 2. At the equipment workshop on site; 3. Adult education workshops provided technical training as well as literacy programs; 4. The flotation plant; 5. Loading concentrate for transport. All photos courtesy of Farallon Mining.

Photo courtesy of Farallon Mining

without being in the stopes every day, and you can’t run a socioeconomic program without being in the communities every day,” Whittington explains.

Farallon’s secret to superfast mine development With less than four years between the original greenfields discovery and the official start of commercial production, Farallon’s G-9 Mine is a model of speedy development — especially considering the construction phase overlapped both a period of severe equipment supply constraints and a recession.

President and CEO Dick Whittington credits this success to the so-called parallel-track approach. That means exploration, mill construction and early mine development activities all happen simultaneously. Of course, that puts more money at risk if a decision is made to scrap the project or to make drastic changes to the mine plan.

The risk was also increased, it seemed, by Farallon’s deliberate decision not to conduct a feasibility or prefeasibility study to show potential investors. Whittington explains: “We looked at the economics of the project and the board quickly realized, why spend 18 months and $20 million telling us something we already knew? We were confident we’d be able to persuade enough people to that point of view.” He was proven right, as more than $110 million raised in 2006 alone demonstrated.

Part of the reason for the parallel-track approach’s success in persuading investors, says Whittington, was because the idea was pitched at a time when a number of other projects had fallen short of expectations. “There were several companies who’d done feasibility and prefeasibilty studies and pilot plant testing on their projects,” he says. “And when it came time to build their project they were 50 to 60 per cent over budget and in some cases, years behind schedule.”

The decision to speed up development saved the company from two potential major pitfalls. First, it was able to lock in pricing on a significant portion of its major equipment purchases prior to the supply price spike of 2007. Second, in the spring of 2008, Farallon secured a purchase agreement for much of its silver and an offtake agreement for all of its copper and zinc concentrate production – which in the last quarter of 2009 amounted to 23.4 million pounds of zinc and 2.4 million pounds of copper. Had Farallon waited for the results of a feasibility study, those negotiations would likely have been pushed back, right into the middle of the credit crunch.

In the end, Whittington says, the mine was built on schedule at just 20 per cent over the cost stated in the preliminary estimate — well within the estimate’s margin of error.

“Without the parallel-track approach, we would have been caught by the credit crisis,” he says. ”In hindsight, this was a decision that really paid off.”

By Dan Zlotnikov June/July 2010 | 39

mine en vedette

Farallon : un nouveau voisin Rôle essentiel de l’économie sociale dans le développement de la mine G-9 Un matin, vous constatez opposées. « L’équipe de que votre jardin a tout été production est impadéraciné et chambardé – le tiente, le travail est chien du voisin s’y est exigeant. L’équipe d’édonné à cœur joie. Les conomie sociale a besoin maîtres du chien, de noud’empathie et d’une veaux voisins, s’excusent et grande patience pour sortent leur chéquier. Et si découvrir ce dont il est le dénouement avait été véritablement question différent? Les voisins s’exdans une conversation – cusent mais au lieu de souvent le respect et les payer, ils sortent pelle et relations communaurâteau? taires. L’équipe d’éDes ateliers d’éducation aux adultes dans la communauté où se trouve la mine Dick Whittington, présiconomie sociale n’attend fournissent de la formation technique ainsi que des programmes de littératie dent-directeur général de pas que les résidents Farallon Mining, sait lequel locaux verbalisent les des deux exemples il veut suivre. « Nous voulons être partie plaintes, elle est sur la route à tous les jours. » intégrante de la communauté. » Produire un chèque ne sufUne pépinière de 1 000 arbres est en place et la compafit pas. gnie planifie un agrandissement à 100 000 arbres, dont En plus de lancer de nombreuses initiatives locales, dont quelques essences qui étaient près de l’extinction. Les arbres un programme de littératie pour 22 communautés avoisi- ne constituent qu’un des bénéfices à long terme; la mine nantes, la minière Farallon travaille fort à être un bon voisin à emploie directement 400 travailleurs et assure l’emploi d’ensa mine G-9, située dans le sud-ouest de l’état de Guerrero, viron 1 400 autres indirectement. « Dans une région de nouau Mexique. M. Whittington accorde une grande place à la velles mines, il faut former des travailleurs qualifiés : élecresponsabilité sociale des entreprises (RSE) en tant que triciens, menuisier et mécaniciens. À tout moment donné, ces principe directeur dans les décisions quotidiennes. gens peuvent déménager ou partir à leur propre compte. » « La définition du développement durable commence avec Quant à la RSE, M. Whittington souligne l’importance de moi, avec un engagement de la direction; il faut véritablement ne pas jouer au Père Noël avec des solutions déjà établies; il vivre la RSE, sinon ce n’est qu’un mantra ou une plaque sur le faut plutôt créer des capacités pour que les communautés mur », dit M. Whittington. Pour atteindre le niveau d’accepta- règlent leurs propres problèmes à long terme. Par exemple, tion et de sensibilisation dont il parle, les contrats d’em- lorsqu’une communauté voulait se brancher au réseau élecbauche commencent non par des objectifs de production, trique national, Farallon aurait pu assumer les 160 000 $ du d’amélioration d’efficacité ou de directives de sécurité, mais coût du projet. Les problèmes de la communauté n’étaient avec l’exigence que tous les employés – de la direction aux pas un manque d’argent, dit M. Whittington, puisque le gouforeurs sous terre – soient des membres responsables et vernement fédéral mexicain offre des subventions pour ce respectueux de la communauté. type de projet. Les administrateurs locaux étaient plutôt L’importance de la RSE fait partie intégrante de la structure débordés par le formulaire de demande de plus de 100 pages. corporative de Farallon. « Deux personnes peuvent faire fer- La compagnie a offert son aide et la communauté a obtenu mer cette mine : le directeur général des opérations et le sa subvention. directeur général de l’économie sociale », dit M. Whittington.

Le succès de Farallon à la mine G-9 découle non seuleCe ne sera jamais fait à la légère mais le message est qu’il faut ment de son attention aux besoins de la communauté mais respecter cet aspect de l’exploitation. du fait qu’elle crée des capacités pour l’avenir. « C’est un Selon M. Whittington, les deux équipes – production et engagement intellectuel et beaucoup de travail et c’est là le économie sociale – ont besoin d’habilités radicalement grand défi», dit M. Whittington. ICM Photo courtoisie de Farallon Mining

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CONGRÈS ET SALON COMMERCIAL 2011 MINES SANS FRONTIÈRES

APPEL DE COMMUNICATIONS Sous le thème « MINES SANS FRONTIÈRES », l’ICM prépare un programme technique exhaustif pour lequel des articles sont présentement demandés. Le programme comprend les volets suivants : projets, pratiques exemplaires, gestion d’entreprise et des ressources humaines, responsabilité environnementale et sociale, innovation et technologie, sciences de la Terre et symposium sur le minerai de fer.

Les articles rédigés en français sur les thèmes du programme seront également pris en compte pour les volets Francophonie (accent mis sur des projets de pays francophones); Plan Nord (un projet du gouvernement du Québec visant à stimuler le développement économique et social des régions nordiques, au profit de ces régions et de l’ensemble du Québec); et séances du Symposium sur le minerai de fer. Pour toutes ces activités, des services de traduction simultanée seront offerts.

DATES IMPORTANTES Soumission des résumés : le 30 septembre 2010 | Avis d’acceptation : le 20 décembre 2010

PROGRAMME TECHNIQUE GESTION D’ENTREPRISE ET DES RESSOURCES HUMAINES

RESPONSABILITÉ ENVIRONNEINNOVATION ET MENTALE ET TECHNOLOGIE SOCIALE

PROJETS

PRATIQUES EXEMPLAIRES

SCIENCES DE LA TERRE

SYMPOSIUM SUR LE MINERAI DE FER

LUNDI APRÈS-MIDI

Plan Nord I

Gestion de l’environnement et de l’eau

Sécurité

Réussites autochtones

Francophonie VI

Géologie I

Ressources ferreuses : Disponibilité et projets en développement

MARDI MATIN

Pré-faisabilité avancée

Plan Nord II – Logistique

Francophonie IV – Planification de la main-d’oeuvre I

Environnement

CCIM – Études de cas

Mécanique des roches I

Activités minières

MARDI MATIN

Design et construction

Géotechnique – La voie payante

Plan Nord III – Planification de la main-d’oeuvre II

Francophonie V – Infrastructure I

Systèmes de gestion et planification minières

Géologie II

Bouletage et concentration

MARDI APRÈS-MIDI

Déclassement à terme

Francophonie III – Chaîne d’approvisionnement

Actionnaires (NC 43-101, etc.)

Plan Nord IV – Infrastructure II

SMART – Exploitation à ciel ouvert

Mécanique des roches II

Environnement et progrès technologiques dans la réduction du minerai de fer

MERCREDI MATIN

Francophonie I – Développement économique régional I

Nouveaux concepts en matière d’automatisation et de transport minier

Journée finances et gestion

Études de cas

Plan Nord V

Gestion de l’eau

Aperçu sur les producteurs canadiens et internationaux

MERCREDI MATIN

Francophonie II – Développement Entretien et fiabilité économique régional II

Journée finances et gestion

La prochaine nouveauté

Gestion de l’énergie

Plan Nord VI

Assemblée plénière

LUNDI MATIN

DÉJEUNER DE CLÔTURE

MERCREDI MIDI MERCREDI APRÈS-MIDI

Journée finances et gestion

SOUMETTEZ VOS RÉSUMÉS DÈS AUJOURD’HUI

www.cim.org/montreal2011

Assemblée plénière de clôture

CIM CONFERENCE AND EXHIBITION 2010 CONGRÈS ET SALON COMMERCIAL DE L’ICM

Bright minds gathered under bright skies at the CIM Conference and Exhibition 2010

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spirited plenary discussion, project sessions spilling out the doors, streams of students pouring into Mining in Society and an energized exhibition hall showcased the tireless efforts and careful planning of dedicated volunteers and CIM National Office staff. The technical sessions, at the heart of CIM’s Conference and Exhibition, drew leaders in operational excellence, innovation, community engagement, as well as financial and environmental practices. The knowledge exchanged and the connections made at these sessions are central to CIM’s reenergized commitment to being a community for leading industry expertise. Based on the buzz around the convention centre, CIM is on the right track.

First contact and lasting impressions Veteran broadcaster Rex Murphy left the audience both charmed and charged with his lively defence of the mining industry, setting the tone for a Plenary Session that featured a stellar panel. Don Lindsay, president and CEO of Teck Resources Limited; Anthony Kelly, training coordinator, Centre for Social Response; Pablo De la Flor, vice-president corporate affairs, Compañía Minera Antamina S.A.; Ronald Thiessen, CEO and director, Hunter Dickinson; and Jack Blacksmith, president, Cree Mineral Exploration Board applied their broad, international expertise to the topic of “First Contact.” They were asked: How can mining companies get an early, accurate and relevant understanding of a community’s concerns and their context? What are “Just wanted to let you know that I the biggest challenges and enjoyed this years’ CIM Conference.

In my opinion, it was the strongest key initial steps at the first technically. Good work!” contact stage? What roles ~ Samuel Mah, do host governments and Director, Engineering, independent entities play in Silver Wheaton Corp. the first contact process?

Photos courtesy of Normand Huberdeau/NH Photographes

"Being a part of the CIM conference year after year has aided us in achieving our networking goals in an effort to develop excellence in mining innovation. The conference taps into global experts from the mining world which greatly assists CEMI to establish new and innovative R&D projects and programs." ~ Peter K. Kaiser, President and CEO, Centre for Excellence in Mining Innovation (CEMI)

“The format of the Face-to-Face activity is excellent, and I think the future is very promising.

Mining companies, consulting engineering firms and suppliers are going to adopt the Face-toFace formula. Endress+Hauser Canada will support the process in the years to come.” ~ Roland Quenneville, Business Development, Services & Solutions, Quebec & Maritimes

Canada’s largest industry equipment and services event Over 430 exhibiting companies took part in this year’s exhibition — the largest one to date, that welcomed over 6,100 people.

Getting a jump start on next year’s event, over two-thirds of the Montreal 2011 exhibition booths have already sold.

New to the exhibition this year was the Faceto-Face program that saw 112 participants securing important business contacts.

“On behalf of Australian exhibitors at CIM 2010 and Australian Trade Commission-Canada, I would like to thank you for organising such a great event. You and your team did a fantastic job in organising this world class event. Congratulations on a job, well done! I look forward to working with you on CIM 2011.” ~ Alireza Rafiee Director, Market Development Australian Trade Commission - Toronto

The conference night life Evenings brought delegates together in a more relaxed setting. The Men of the Deeps concert, sponsored by Teck Resources and Wardrop Engineering, launched the social program. Their performance in the historic Britannia Mine resonated with songs that hit both melancholic and comic notes. The SMS Equipment/Komatsu-sponsored Opening Reception saw conferencegoers flood the exhibition floor, as they were treated to food, wine and music.

The CIM Awards Gala, made possible by Caterpillar, was as memorable as it was spectacular, and the P&H MinePro Services Reception and Dance had delegates rocking to the music.

COPPER

SILVER

GOLD

DIAMOND

PREMIER

THANKS TO OUR SPONSORS

MEDIA

MINING IN SOCIETY

FRIENDS

2010 CIM AWARD WINNERS

At any given moment you could find hundreds of smiling faces touring the Mining in Society show.

Over 6,600 people saw, up close, concrete examples of how mining impacts on everyday life.

Mining in Society is adopting a new name — M4S. Continuing with the same focus, M4S will teach the importance of mining, minerals, metals and materials (the 4Ms) to our society. Watch for it at next year’s conference!

RECOGNIZING INDUSTRY’S FINEST

Excited faces all around

CIM DISTINGUISHED SERVICE MEDAL James L. Popowich, Vernon, BC VALE INCO MEDAL Robert A. Quartermain, Vancouver, BC SELWYN G. BLAYLOCK MEDAL Phillip J. Mackey, Montreal, QC MEMBERS AWARD Pierre Laroche, Theford Mines, QC SYNCRUDE AWARD FOR EXCELLENCE IN SUSTAINABLE DEVELOPMENT BioteQ Environmental Technologies Inc., Vancouver, BC Osisko Mining Corporation, Montreal, QC PAST PRESIDENTS’ MEMORIAL MEDAL Adam Tonnos, Sudbury, ON A.O. DUFRESNE AWARD Edwin Gaucher, Saint-Ferréol-les-Neiges, QC J.C. SPROULE MEMORIAL PLAQUE Garth Kirkham, Burnaby, BC COAL AWARD Allen Wright, Calgary, AB ROBERT ELVER MINERAL ECONOMICS AWARD Karl J.C. Harries, Gananoque, ON MCPARLAND MEMORIAL MEDAL John (Jack) R. Morris, Comox, BC JULIAN BOLDY MEMORIAL AWARD Philip Olson, Saskatoon, SK BARLOW MEMORIAL MEDAL Kathleen G. Thorne, Fredericton, NB David R. Lentz, Fredericton, NB Donald Hoy, Thunder Bay, ON Les R. Fyffe, Fredericton, NB Louis J. Cabri, Ottawa, ON METAL MINING SOCIETY AWARD Carol Plummer, Kittilä, Finland CIM-BEDFORD CANADIAN YOUNG MINING LEADERS AWARD Paul Blatter, Cadillac, QC Jim Sarvinis, Oakville, ON Bernard Tan, Vancouver, BC MEL W. BARTLEY AWARD Section Harricana, Val-d’Or, QC CIM DISTINGUISHED LECTURERS AWARD Mahesh Chaturvedi, Winnipeg, MB Michael Doggett, Vancouver, BC James M. Franklin, Nepean, ON Norman O. Lotter, Falconbridge, ON David D. Rodier, Mississauga, ON JOHN T. RYAN TROPHIES METAL MINE CATEGORY Cameco McArthur River Mine, Saskatoon, SK SELECT MINE CATEGORY Diavik Diamond Mine, a Rio Tinto Harry/ Winston Diamond Corporation joint venture, Yellowknife, NT COAL MINE CATEGORY Sherritt, Genesee Mine, Warburg, AB CIM FELLOWSHIP Joseph Aiello, Calgary, AB Daniel Ashman, Trail, BC Marcel Djivre, Sudbury, ON Hubert W. King, Salt Spring, BC David R. Lentz, Fredericton, NB Kenneth W. Major, Maple Ridge, BC Ron Molnar, Peterborough, ON Nicholas Parchewsky, Edmonton, AB Ian Turner, Montreal, QC Bert Wasmund, Mississauga, ON Zenghe Zu, Edmonton, AB DISTRICT 6 DISTINGUISHED SERVICE AWARD Greg Rasmussen, Vancouver, BC FIFTY YEAR CLUB Richard Addison, Vancouver, BC M.P. Amsden, Oakville, ON John M. Anderson, Vancouver BC Anthony F. Banks, Saskatoon, SK Roy S. Boorman, Fredericton, NB C. Henry Brehaut, Toronto, ON Richard L. Brown Jr., Mountainside, NJ, USA Leland L. Davis, Magnolia, TX, USA Gontran Foy, Sainte-Foy, QC J.F. Gartner, Willowdale, ON D.J. Gendzwill, Saskatoon, SK George E. Holmes, Sun City, AZ, USA G.W.Hornby, Vancouver, BC Douglas A. Knight, West Vancouver, BC Marcel Morin, Gatineau, QC Rene A. Morin, Nepean, ON Donald I. Nelson, Summerland, BC Patrick H. O’Neill, New Canaan, CT, USA William Petruk, Ottawa, ON Keith N. Pople, West Vancouver, BC John A. Pursel, Wasaga Beach, ON William E. Stanley, West Vancouver, BC H.R. Steacy, Ottawa, ON Michael,Sudbury, Oakville,ON William I. Turner Jr., Montreal, QC John E.,Udd, Nepean ON Douglas G. Valentine, Oakville, ON Robert E. Van Tassell, High River, AB Richard A. Walli, Oshawa, ON Edward M. (Ted) Yates, Toronto, ON

COLUMNS | MAC enonomic commentary Diamonds and gold: a common past, present and future Paul Stothart With due respect to cobalt and coal, it is fair to state that diamonds and gold are the world’s two most prestigious minerals. They hold the deepest emotional meaning among consumers, with traditional and cultural ties to commitment, union, luck, love and marriage. They are also the minerals that are most indicative of personal wealth, affluence, sophistication and social status.

These two minerals and their corresponding industries have long shared a number of similarities in terms of the surrounding market drivers, price markups and social pressures. For example, the fundamental driver of the global market in both gold and diamonds is jewellery. According to the World Gold Council, fully 68 per cent of the world’s demand for gold over the past five years was for use in jewellery.

While the delineation is less exact in diamonds, it is estimated that gemquality diamonds used in jewellery account for over 80 per cent of the value of the world diamond market.

A second point, and the converse from the above, is to note that the industrial application market for diamonds and gold is relatively modest in size. Only 14 per cent of world gold demand stems from industrial uses (the remaining 18 per cent is for investment purposes). While important in the dental, electronics, medical and environmental fields (with a growing potential in nanotechnology), these industrial uses for gold face the challenge of being commercially feasible at raw material price points that are currently well north of $1,000 per ounce.

Of mined diamonds, less than 20 per cent of production value is destined for industrial markets — principally for uses such as cutting, grinding and drilling. Synthetic diamonds, since their invention in the 1950s, have found broad industrial application and 46 | CIM Magazine | Vol. 5, No. 4

serve to reduce demand and prices for mined industrial diamonds. In industrial uses, synthetic diamonds are around six times more prevalent than mined diamonds.

A third shared characteristic, again flowing from the dominant jewellery end use, speaks to the importance of psychology, emotion and image to the end value. Driven by these non-quantifiable variables, the value of carefully managed marketing can be seen in the estimate from Rio Tinto that the diamonds produced and released to the world market in a recent year were valued at $9 billion as rough diamonds, $14 billion after being cut and polished, $28 billion in wholesale diamond jewellery, and $57 billion in retail jewellery sales. Parallel statistics for gold are difficult to find, although a similar six-fold markup from mine to earring may not be out of line.

A fourth reality shared between gold and diamonds is that each has faced significant social and environmental challenges in the past and responded, as industries, with serious undertakings.

Faced with the “blood diamonds” threat, the global diamonds community responded with the Kimberly Process — an initiative to develop a government-based certification standard and hence stem the flow of such revenues.

Faced with broad NGO opposition, including the “no dirty gold” campaign, leading companies responded with a cyanide management code, while the jewellery industry, in consultation with the gold mining sector, developed a business practices certification standard under the Responsible Jewellery Council. As well, in developing countries, gold and diamond mining companies have broad social responsibility programs

that include direct contribution to building schools, roads, electrical grids, hospitals, clinics, community halls, and child health and nutrition programs.

Finally, it is interesting to note that important connections can be drawn between Canada and China in both gold and diamonds. Canada is a world-scale supplier of both — ranked third in diamonds and eighth in gold, and with the potential to remain a strong player as developments in Quebec, British Columbia and the northern territories move towards completion. In the global marketplace, the emergence of a large middle class in China and India will add significantly to the world demand for gold and diamonds. The middle class population of China is presently estimated at 250 million people, with a projection that 600 million could achieve this status by 2015. McKinsey Consulting estimates that the middle class population in India will increase 12-fold by 2025 — from around 50 million people at present to over 580 million. These countries will be the world’s two largest drivers of demand growth for gold and diamonds over the coming decades.

For all of the similarities, there remains an interesting marketing difference between gold and diamonds.

Gold is bought and sold openly on the world’s trading markets, and realtime prices and transactions can be easily and efficiently concluded.

Conversely, because each stone has (continues on page 47)

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

supply side |

Stop Bill C-300 from crippling the mining industry and its suppliers Jon Baird

COLUMNS

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

Federal Bill C-300 will soon undergo its third reading in the House of Commons. While it may sound reasonable at first glance, if this bill were passed into law, the practical result would be destructive for Canadian miners and their suppliers. Although I touched upon this topic in my article in the December 2009/January 2010 issue of CIM Magazine, I feel it should be discussed further.

This private member’s initiative gives the government 12 months to define what corporate social responsibility (CSR) is and start applying sanctions to Canadian companies in the extractive industries working in developing countries. CSR has never before been defined this way. While many CSR codes exist, they are largely designed to cover actions of states and involve voluntary compliance. It will not be easy to come up with a legislated code in this complicated, contentious field that is fair to companies and individuals working in complex situations around the world.

The bill’s fundamental injustice, in addition to many procedural and legal flaws, is that it will allow our own government’s role as investigator to be used against us by the media, antimining groups, foreign governments and competitors. Sanctions such as the withdrawal of government support through Export Development Canada, investments by the Canada Pension Plan, and the services of our diplomatic and trade officials around the

world would heavily hit mining com- Our industry is already highly panies and their suppliers. Instead of accountable through international punishing mining companies, effort standards, financial controls, laws and should be put into developing Cana- regulations. Indeed, Bill C-300 is dian aid programs. unnecessary.

Many countries where Canadians Led by the Prospectors and Develhave mining interests will not take opers Association of Canada (PDAC), kindly to Canadian law interfering in the industry is calling on MPs to vote their affairs. Recently, in condemning against Bill C-300. MPs need to hear Bill C-300, Peru’s Ambassador to from you that they must vote against Canada said: “We have our own rules; the bill and be given the reasons why. we are capable of managing our own PDAC has set up a website, environment without foreign direction.” www.pdac.ca/c300, where you will find: Anti-mining groups will submit • A template letter their allegations. They will have noth- • Possible points for your letter(s) ing to lose and will suffer no conse- • PDAC’s position quences, whatever the reason for their • How to reach your own MP accusation. They may subject your • A list of key MPs who should also company to negative publicity camreceive your letter paigns that will be very detrimental to • The bill itself your operations. These groups are • Transcripts of committee hearings only accountable to their donors, who on the bill may mean well but who do not underRemember: A personal letter to an stand complex issues.

MP signed by you is worth 100 signaMining companies and their suppli- tures on a petition or 100 postcards. ers, on the other hand, have every- Do it today! CIM thing to lose: time and money to defend themselves; their standing with www.camese.org shareholders; their relations with people in their local communities; their reputation, About the author and much more. In my Jon Baird, managing director view, if Bill C-300 of CAMESE and the becomes law, Canada will immediate past president of start losing mining comPDAC, is interested in pany head offices. collective approaches to It is not as if Canadian enhancing the Canadian miners run uncontrolbrand in the world of mining. lably all over the world.

(continues from page 46)

Canada, Australia and Russia, the distribution and marketing of diamonds is now largely controlled by a handful of companies. Although De Beers’ dominance of the world market has declined from around 85 per cent to an estimated 45 per cent, its famous 1948 catchphrase “a diamond is

different characteristics and value, there is no public market for diamonds, and sales transactions are therefore less transparent.

With the success of new discoveries and marketing strategies in

forever” remains as relevant as ever.

Research shows that women overwhelmingly drive market demand, either buying jewellery for themselves or as the recipient of gifts. Readers take note. CIM www.mining.ca June/July 2010 | 47

COLUMNS | standards WANTED: Industry comments on changes to NI 43-101 Robert Holland, Craig Waldie and Luc Arsenault In April 2010, the Canadian Securities Administrators (CSA) published for comment the proposed changes to National Instrument 43-101 Standards of Disclosure for Mineral Projects, Form 43-101F1 Technical Report, and 43101CP Companion Policy (collectively NI 43-101). The proposed changes reflect the results of our consultation with various sectors of the industry and our experience of working with NI 43-101.

Written comments from industry participants are being collected on whether they support or oppose the proposed changes, and why; and whether we should keep, modify or eliminate the technical report trigger for short form prospectuses. The comment period ends July 23, 2010.

Purpose of the proposed changes In general, we believe the proposed amendments will: • Eliminate or reduce the scope of certain requirements while maintaining investor protection.

• Provide more flexibility to mining issuers and Qualified Persons in certain areas.

• Provide more flexibility to accept new foreign professional associations, professional designations and reporting codes as they arise or evolve.

• Reflect changes that have occurred in the mining industry.

• Clarify or correct areas where NI 43101 is not having the intended effect.

2. We clarified our existing requirements applicable to all disclosure by: restricting the disclosure of economic analyses that include exploration targets and historical estimates; restricting the disclosure of gross metal or mineral value and metal or mineral equivalent grades; and requiring that disclosure of historical estimates always be accompanied by cautionary language.

3. We amended the obligation to file a technical report by: • Removing the requirement to file updated certificates and consents of Qualified Persons when relying on a previously filed technical report.

• Expanding the technical report trigger to include any first-time written disclosure of mineral resources, mineral reserves or preliminary economic assessments.

• Allowing a conditional six-month filing delay for a technical report supporting mineral resources, mineral reserves or a preliminary economic assessment, if these estimates are supported by a current technical report filed by another issuer.

4. We expanded the exemption from filing an independent technical report for producing issuers, if certain conditions are met.

5. We exempted royalty holders from the requirement to file a technical report, if certain conditions are met.

Summary of key proposed changes 1. We have added or amended several definitions including: • Adding a definition of “acceptable foreign code,” and amending the definitions of “professional association” and “Qualified Person,” to replace prescriptive lists with objective tests that will accommodate changes without formal amendment.

• Amending the definition of “historical estimate” to permit disclosure of third-party estimates made after 2001.

• Expanding “preliminary economic assessment” to include preliminary economic analyses after the completion of a prefeasibility or feasibility study.

48 | CIM Magazine | Vol. 5, No. 4

About the authors Robert Holland (left), chief mining adviser with the British Columbia Securities Commission, is responsible for NI 43-101 compliance reviews of prospectus, technical reports and other regulatory filings of British Columbia-based mining companies.

Craig Waldie (centre), senior geologist with the Ontario Securities Commission, is responsible for NI 43-101 compliance reviews of prospectus, technical reports and other regulatory filings of Ontario-based mining companies.

Luc Arsenault (right), geologist with the Autorité des marchés financier, is responsible for NI 43-101 compliance reviews of prospectus, technical reports and other regulatory filings of Quebec-based mining companies.

| COLUMNS Custom Dewatering 6. We substantially amended the technical report form by: • Making the form less prescriptive and more adaptable for advancedstage and producing properties.

• Allowing the Qualified Person more discretion regarding the level of detail required under each section, based on stage of development of the property.

• Replacing Item 25 with eight new items that reflect the major components of various economic analysis.

7. We amended the companion policy to track the sections of NI 43-101 to which it refers, and remove or update old guidance, and add new guidance 8. We made a consequential amendment to the short form prospectus rules to allow firms that employ Qualified Persons to sign expert consents, rather than the Qualified Person, if certain conditions are met.

For more information about these and other proposed changes, and how to provide your written comments, see the CSA Notice and Request for Comment (April 23, 2010). Copies of this notice and the revised instrument, form and companion policy are posted on the websites of CSA members. CIM

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COLUMNS | eye on business Defining corruption An outline of international and Canadian standards Dianne Prupas The aftershocks in the international business community from the lengthy jail sentences recently issued by a court in Shanghai to four mining company executives on bribery-related charges are gradually subsiding. In their wake, however, is a heightened awareness that the corporate risk landscape has changed. “It is no longer possible for companies or employees to resort to corrupt practices and bribes without risking serious domestic and international consequences,� declares Transparency International.

Corruption is the abuse of entrusted power for private gain. Over the last 30 years, a legal minefield of domestic and international anti-corruption legislation has been created to stop it. Now, almost all countries have their own domestic anti-corruption legislation, and over 100 countries have signed onto various international anti-bribery or corruption conventions. One way or another, a Canadian company conducting business in or outside of Canada is covered by such legislation.

Photo: Greg Tossel

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amcconsultants.ca 50 | CIM Magazine | Vol. 5, No. 4

The most far-reaching of this legislation is the U.S. Foreign Corrupt Practices Act (FCPA) that was enacted in 1977. Canadian companies listed on a U.S. exchange need to carefully consider its extraterritorial effects. It criminalizes the payment or offer of a bribe to a foreign official, political party, party official or political candidate anywhere in the world when the impugned acts were committed by a U.S. concern or U.S. issuer for the purpose of obtaining a business advantage. It also creates record-keeping and reporting obligations in respect of any payments to foreign entities or individuals for all companies listed on a U.S. stock exchange or otherwise subject to the U.S. Securities and Exchange Act. In Canada, the Criminal Code creates various offences for individuals and corporations that bribe Canadian officials and in 1999, Canada ratified the OECD [Organisation for Economic Co-operation and Developement] Convention on Combating Bribery of Foreign Public Officials in International Business Transactions by enacting the Corruption of Foreign Public Officials Act (CFPOA) to address international offences. The CFPOA forbids the conferring of (or offering, aiding or conspiring to confer) any benefit for the purpose of influencing a foreign official to misuse their power in order to gain a business advantage. It also prohibits the possession of the proceeds from such impugned activities. The reach of the CFPOA is more restricted than the FCPA, however, and to be subject to its jurisdiction, a material portion of the impugned activities would have to have been committed in Canada. This has been interpreted to include acts by a Canadian citizen or a business entity incorporated or registered to do business in Canada, as well as acts that otherwise have a material impact on Canadians.

Penalties for breach of anti-corruption statutes are severe. Under the CFPOA, for example, there is no statute of limitations; the fines that can be imposed do not have prescribed maximums; and natural persons can, additionally, face jail sentences of up to five years. Violations of the anti-corruption provisions of the Canadian Criminal Code carry a ten-year maximum jail term. Under the U.S. FCPA, violations carry both criminal and civil liability. Corporations are subject to fines of up to US$2,000,000 per offense; individuals are subject to prison sentences of up to five years and fines of up to US$100,000. In 2009, the U.S. Department of Justice imposed penalties in FCPA matters of US$817,300,000, almost double the aggregate penalties it imposed in 2008 and more than tenfold the fines it imposed in 2007.

There is no legislation obliging companies to have an anti-corruption compliance program. Nevertheless, the

eye on business |

U.S. Federal Sentencing Guidelines (U.S. Guidelines) include provisions for the possible mitigation of penalties if an offending company can demonstrate it has implemented an effective compliance program. Although mitigation on this basis is not formalized in other jurisdictions, it is reasonable to expect more leniency by prosecutors where a strong anti-corruption program is in place. The U.S. Guidelines’ recommendations for an effective compliance program have generally been accepted as the global standard for such programs and are summarized below.

Note the regulatory compliance guidance promulgated by Canada’s Competition Bureau is substantively similar.

The U.S. Guidelines for establishing an effective anticorruption compliance program provides the following: 1. The company must promote an organizational culture that promotes compliance with the law and an ethical culture.

2. The promotion of an organizational culture that encourages an ethical culture entails the following: • The company must establish standards and procedures to prevent and detect criminal conduct. In this regard, the company’s directors must ensure that senior management implements a compliance program for which operational responsibility has been delegated to specific personnel with appropriate authority and resources.

• The company’s directors must also be knowledgeable about the content and operation of the compliance program and exercise reasonable oversight thereof.

• The company must use reasonable efforts to exclude from its senior management any individual who has engaged in conduct inconsistent with the principles of its anti-corruption program.

• The company must regularly communicate and train its employees and agents on the standards of conduct established by its compliance program.

• The company must monitor and audit its operations to detect criminal conduct, including creating a system for anonymous reporting of concerns or violations.

• The company must also promote and enforce the program through the creation of employee incentives and disciplinary measures.

• The company must respond appropriately in the event criminal conduct is detected.

In recent years, there has been an intensification of enforcement of anti-corruption legislation globally. Canada assembled an international anti-corruption team of the RCMP in 2007, resulting in a dramatic increase in active investigations. The U.S. Department of Justice prosecuted more FCPA actions in the last two years than in the preceding 20 years combined. With this increasing vigilance and given the severity of the penalties, companies are well-

COLUMNS

advised to adopt a conservative approach to compliance and implement robust anti-corruption compliance programs that, as recommended by the U.S. Federal Guidelines, are effective in creating an organizational culture that encourages ethical conduct and a commitment to compliance with the law. CIM www.fasken.com/global-mining

About the author Dianne Prupas, corporate/ commercial associate at Fasken Martineau DuMoulin in Johannesburg, is active in the area of international law and cross border transactions, and is a member of the firm’s Global Mining Group.

June/July 2010 | 51 9:58 AM

COLUMNS | HR outlook Ramp-UP study Understanding the status of women within the Canadian mining sector Lindsay Forcellini Women account for only 14.4 per cent of the mining industry workforce — the lowest representation among primary industry categories in Canada according to a recent study released by Women in Mining (WIM) Canada in partnership with MiHR. The two organizations have joined forces to launch “Ramp-UP: A Study on the Status of Women in Canada’s Mining and Exploration Sector” to help employers achieve gender diversity in the workplace and to help create more career opportunities for women in the mining sector. The study surveyed female employees and students, employers and educators on issues such as working conditions and retention, work-life support, opportunities for advancement, school-towork transition, and level of awareness and long-term appeal of mineral sector career opportunities.

MaryAnn Mihychuk, president of Women in Mining Canada, says there was a real need for this type of study to establish a baseline to measure progress and to “address the dichotomy between industry perception and women’s needs.”

Diverging perceptions Ramp-UP revealed a marked difference in the perspectives of women, sector employers and educators. Onethird of educators and employers believe that working conditions need to be addressed. With the exception of the need for flexible work arrangements, employers were more likely to report that no female-specific barriers exist in the sector. By contrast, nearly two-thirds of female employees believe that some working conditions need to be addressed for women to succeed in the industry.

Heather Bruce-Veitch, HR general manager at the Iron Ore Company of Canada and Ramp-UP steering 52 | CIM Magazine | Vol. 5, No. 4

committee member, says she was surprised to learn that employers believe they have gone further in the progress of female participation, while women in the sector disagree. “This disconnect sends a message to keep the momentum going,” she adds. “Employers are demonstrating progress but employees are saying there is still far more work to be done to get to where we need to be.”

The major issue identified was inflexible work arrangements. The second most important challenge reported by women participants was workplace culture, which was closely followed by the need to travel and work in remote locations. The issue was not that women cannot travel, but rather about receiving ample notice of assignments. Providing scheduling flexibility was also identified as something that would assist female workers in coordinating home and work responsibilities.

Coming together MiHR’s partnership with WIM Canada on the study builds upon the Council’s continued commitment to making workforce diversification an industry priority. An important aspect of Ramp-UP focuses on post-secondary students to make them aware of the opportunities in the minerals sector. “Explore for More,” the mining industry’s career brand, promotes mining as a career of choice, and targets under-represented groups, including women.

Industry is invited to become involved by participating in the Virtual MineMentor Program, Speakers Bureau or by sponsoring these programs to ensure career outreach continues.

Looking ahead An increase in women’s participation in the sector offers many potential benefits, including solutions for a looming skills shortage, increased innovation potential and enhanced productivity, as well as increased workforce retention. And women are up to the challenge.

“Women are ready and willing to accept any and every challenge in this industry, from operations to the boardroom,” says Mihychuk. She adds that it is important for employers to have a close look at their workforce and boardroom to see if there is an opportunity for improvement and to try a new diversity strategy.

Going forward, it is also important for employers to set specific, measureable goals in their diversity strategy, such as acquiring safety equipment in women’s sizes, and to “keep learning from each other to ensure women’s issues are heard by all mining companies, regardless of size,” adds Bruce-Veitch, who is confident the industry is moving in the right direction towards creating a diverse workforce. CIM www.mihr.ca

About the author As marketing and communications coordinator, Lindsay Forcellini is responsible for supporting MiHR’s communications and online media initiatives, and coordinating the production of marketing and communications materials.

Formerly a writer for Natural Resources Canada, she holds a bachelor’s degree in journalism from Carleton University.

canadians abroad |

COLUMNS

The problem solver A Canadian provided technology support around the globe

As deposits go deeper and deeper, new technologies will be the key to their successful extraction. With its focus on technological advancements, the Canadian mining industry has a real opportunity on the global front.

“The only other country comparable is Australia,” says Richard Moore, vice-president exploration for Vismand Exploration. “With a renewed thrust for innovation in exploration here in Canada, we’re looking forward to exciting times.”

Beginning in 1989, Moore spent two years living in Bonao, a village in the middle of the Dominican Republic, while working for Falconbridge at its Falcondo operation. During this assignment, he was tasked with introducing technology to the small exploration group which, at the time, was focused on base metal deposits.

Persuading the group to embrace technology — especially computers — required a cultural change. “My aim was to get the geologists to think more for themselves,” Moore recalls.

“There was a tendency to allow the ‘boss’ to make all the decisions. But we encouraged the geologists to use their knowledge and experience to make decisions on their own and to think forward.” With Moore, the group worked on longer term project planning, focusing on efficiencies and robust systems, and overcoming the tendency to simply plan for today.

Moore says it was a fantastic experience for him, although he regrets not having learned the language.

“Unfortunately, the group all spoke English quite well, so I never developed a good understanding of Spanish,” he says. “I recommend to anyone going overseas, to put effort into learning the language. You’ll get so much more out of being there. Just embrace the language and culture and learn.”

Richard Moore examines flood basalts while exploring for nickel deposits on Disko Island, Greenland.

While living in the Dominican Republic, Moore travelled to Chile a number of times to consult on the Collahuasi project for Falconbridge, which at the time, was under exploration.

Moore’s role was to give feedback to Falconbridge and make recommendations on what should be done differently, as the company was not the operator of the joint venture.

“The partners were sinking a shaft in a small copper vein operation,” he recalls. “We thought it was inappropriate and succeeded in changing the exploration program to a broader one.

This led to the discovery of the Ujina deposit — a shallow, porphyry deposit of high-grade, super gene enrichment.”

In 1995, Moore began a new role with Falconbridge, which he dubbed “exploration manager of all the parts of the world no one else wanted to have.”

He covered Asia, Russia and the Pacific, and began racking up frequent flyer miles as he jetted to various international destinations.

Moore’s team developed exploration projects in Russia and, with nickel exploration as a focus, he travelled

Photo courtesy of Richard Moore

Heather Ednie throughout India, the Philippines and Australia. “We didn’t have huge budgets, but we found tremendous exploration opportunities and it was very easy to get joint-venture partners,” he says. In Russia, there was an abundance of tremendous skills but the concept of “economic deposits” was missing. “They were used to the idea of providing a commodity as needed, no matter what the costs,” he adds.

The culture in Russia at the time placed value on very hard work and workers had a strong sense of preservation. There was a tendency to hold back necessary information as a safeguard.

But their abilities were obvious. “I remember one time in the bush thinking, ‘if ever there’s a group of people I’d want to be abandoned with in the bush, this group is the one,’” Moore says. The 16-person team he is recalling included 15 with PhDs. “The one guy with a M.Sc. was relegated to being the cook,” Moore laughs. “There’s incredible training and skills available.”

In 1999, Moore became Falconbridge’s director of technology support, ensuring that they were using the latest technologies and supporting research as required across the company. Most of it was Canadian, although when necessary, they looked elsewhere, such as to Rhodes University in South Africa. “You go where the best people are to solve problems,” he adds.

Currently with Vismand Exploration, Moore works on projects in Greenland, Chile, Spain and Canada.

Having gone to Greenland with Falconbridge years ago to shut down a project, he returned with Vismand and, using deep search technologies, answered the original problem posed by that project.

“However, issues persist with high costs of drilling, so the project is now parked once again,” he adds. “The potential remains — it’s a technology problem — one to solve in the future.” CIM June/July 2010 | 53

COLUMNS | vie étudiante Une expérience inoubliable Un groupe d’étudiants de passage en Abitibi Philippe Groleau

Le dome à la mine Goldex; Photo de groupe devant les camions de 250 tonnes d’Osisko; Chevalement du Projet Westwood d'IAMGOLD en construction. Photos courtoisie de Jacek Paraszczak et Philippe Groleau.

Chaque année, les étudiants du département de Génie des mines et de la minéralurgie et de Génie des matériaux et de la métallurgie de l’Université Laval organisent un voyage de quelques jours en Abitibi pendant la semaine de relâche. Ils visitent différentes compagnies minières qui ont l’amabilité de les accueillir et de montrer leurs infrastructures et diverses opérations en cours. Le but premier de cette activité est d’informer les nouveaux arrivants au baccalauréat en leur offrant un aperçu des réalités du terrain.

Comme toutes les mines sont différentes, cette expérience très enrichissante et agréable renseigne sur plusieurs aspects de l’industrie minière. Cette année, la visite comprenait : le Projet Westwood de IAMGOLD, situé sur le site de la mine Doyon, la mine Goldex d’AgnicoEagle et le projet Canadian Malartic d’Osisko.

Le premier jour, le groupe de 25 étudiants et le directeur du département M. Jacek Paraszczak se sont rendus sur la propriété IAMGOLD pour 54 | CIM Magazine | Vol. 5, No. 4

visiter le projet Westwood. Quel projet! Un puits foncé à l’aide d’une immense aléseuse et la construction d’un chevalement de calibre national.

C’est un projet que plusieurs sceptiques croyaient impossible à accomplir. En matinée, un groupe descendait par la rampe Warrenmac pendant qu’un autre visitait les installations de surface, puis les groupes ont changé de place. C’était pour certains leur première descente sous terre et les questions étaient nombreuses.

Le projet est déjà bien avancé mais il n’est pas encore rendu au stade de production. Cette visite nous a permis de voir les différents problèmes et contraintes rencontrés lors du démarrage d’une nouvelle mine.

Durant l’après midi, nous avons visité le concentrateur de la mine Doyon. C’était le moment de voir et d’apprendre le fonctionnement d’une usine de traitement. C’est la partie plus attendue par les adeptes de métallurgie mais les gens de mines pouvaient voir ce qu’il advient du minerai une fois qu’il est extrait.

Pendant cette visite, quatre chanceux pigés au sort sont descendus dans le puits en fonçage et ont pu observer le travail avec un « Galloway ». C’est une opportunité très rare qui a été très appréciée. Le lendemain, à la mine Goldex, nous sommes descendus sous terre; c’était un instant spécial pour ceux qui descendaient dans une cage pour la première fois. La visite du garage et des différents entrepôts était au programme, suivie d’une visite de la salle des marteaux et d’un chantier longs trous en pleine opération de forage, tout pour épater et intéresser. Ce fut très complet comme visite, incluant même le concasseur à mâchoires géant, avant de remonter à la surface.

La mine Goldex utilise une méthode de minage totalement différente des autres mines ainsi que des appareils à la fine pointe de la technologie.

En après-midi, nous avons visité l’usine de traitement. C’est très différent d’observer une usine relativement neuve où rien n’a été ajouté par après ce qui complexifie le réseau de la pulpe. L’usine est presque complètement automatisée et les

student life |

COLUMNS

An unforgettable experience A group of students visits the Abitibi region of Quebec

Auteur Philippe Groleau, un jeune étudiant

Every year, the students in Laval University’s Mining, Metallurgy and Materials Engineering Department organize a multi-day trip to Abitibi to visit mining companies that are generous enough to play host to a group of students, giving them a tour of their site infrastructures and various operations. The main goal of the trip is to provide the undergraduate students with a glimpse of the realities of the field.

The experience was as much fun as it was enriching, and it provided information on many aspects of the mining industry. This year, the tour included: IAMGOLD’s Westwood Project, located at the Doyon Mine; Agnico-Eagle’s Goldex Mine; and Osisko’s Canadian Malartic project.

On the first day, the group of 25 students, along with our department head, Jacek Paraszczak, made its way to IAMGOLD’s Westwood project where a shaft was sunk using a huge boring machine and a headframe was under construction. This is a project that many skeptics thought impossible, yet it is now well advanced. As half of our group went down the Warrenmac ramp, the other group visited the surface facilities; then they traded places. This project enabled us to see the various problems and constraints that can arise when starting up a new mine.

In the afternoon, we learned about the inner workings of a processing plant during a visit to Doyon Mine’s concentrator. During this leg of the tour, four lucky students were picked to go down into the shaft that was being sunk and were able to observe the work being done with a Galloway.

This was a very rare opportunity that was greatly appreciated.

The next day we went underground at the Goldex Mine; it was a special moment for those of us who were heading down in a cage for the first time.

The day’s program included a tour of the garage and various warehouses, followed by a visit to the crusher room and a longhole stope, where drilling operations were in full swing. We even got to see the giant jaw crusher before heading back up to the surface. The Goldex facility uses a totally different mining method than other mines, as well as cutting-edge equipment.

Later, we visited the relatively new processing plant — how different it was to see a plant where nothing has been added after the fact that would make the pulp network more complex. The facility is almost completely automated and as such, the operators must keep their eyes peeled on several screens to make sure that operations are proceeding smoothly. Finally, before we left, we had a chance to see the large friction winch control room, and to go up to the top of the headframe for a first-hand look at its operation.

The last day started with a bus tour of Osisko’s Canadian Malartic project where we were able to travel alongside 250-tonne trucks — and take a few snapshots — before going to see the huge electric shovel. Finally, as the ultimate ending to a great three-day trip, we were treated to the “noon blast” (approximately 25,000 tonnes!) — a “small” blast according to the Osisko folks, but it was amazing nonetheless.

This year’s trip was made possible thanks to contributions by IAMGOLD, Agnico-Eagle, Osisko, MISA and CIM. Who knows? Perhaps we’ll do it again next year! CIM

qui termine sa deuxième année en Génie des mines à l’Université Laval. Il est originaire de Sherbrooke et effectuera cet été un stage à la mine Goldex en Abitibi.

About the author Sherbrooke native Philippe Groleau is finishing his second year in mining engineering at Université Laval. He is spending this summer doing an internship at the Goldex Mine in Abitibi.

opérateurs surveillent le bon déroulement des opérations sur de multiples écrans. Puis, avant de quitter, nous avons eu la chance de voir la grande salle de contrôle du treuil à friction et de monter jusqu’au sommet du chevalement pour le voir fonctionner de nos propres yeux.

Le dernier jour a débuté par une visite du projet Canadian Malartic en autobus. Nous avons eu la chance de côtoyer des immenses camions de 250 tonnes et de prendre quelques photos avant d’aller voir l’immense pelle électrique. Finalement, « la cerise sur le sundae », nous avons assisté au sautage de midi (environ 25 000 tonnes, un petit sautage selon les gens d’Osisko). Puis, après ces trois jours bien remplis, ce fut le retour à Québec.

Un grand merci encore une fois à IAMGOLD, Agnico-Eagle, Osisko, MISA et l’ICM pour leur contribution à cette belle expérience. Qui sait?

Peut-être à l’année prochaine! ICM

June/July 2010 | 55

COLUMNS | safety Walking the talk McArthur River makes safety job one

“At Cameco, safety is a core value,” says Rick Morrison, superintendent of safety, health, radiation and quality at the company’s McArthur River operation.

“It drills down from the CEO, right into the workplace. Working safe is a required condition of employment.” This outlook on safety garnered Cameco Corporation’s McArthur River Mine the 2009 John T. Ryan Trophy for outstanding safety performance.

Over the last three years, the safety culture at McArthur River has developed significantly.

Expectations related to safety are clearly communicated to employees. Morrison says the Radiation exposure for all workers is carefully monitored as part of McArthur River's comprehensive safety program. commitment from the top has to be genuine to influence safety at the site level. “People know whether Five points for safety when needed,” Morrison says. “It’s you’re sincere or not.” Safety is one also important that the supervisor One common element of of the key measures of success on site McArthur River’s safety program is visits employees in the workplace.

— it is integrated into the business the Neil George Five-Point Safety SysAnd open communication is a must. plan and is one component of the tem. Developed in the late 1940s, the Anybody with a safety concern bonus system. deserves an answer.” system is widely used across Quebec, A real safety culture needs an emo- Ontario and Saskatchewan. It lays out tional commitment to prevent com- a systematic approach to ensuring Embracing the IRS placency. At McArthur River, that workplace safety through five compoIn 2009, the Internal Responsibilemotion runs all too deep. The oper- nents: ity System (IRS) was rolled out jointly ation experienced its first and only • Checking the entrance and travel- by the mine management, the United fatal accident in 2006. “It’s a terrible ways Steel Workers, and McArthur River’s thing to happen,” Morrison says. “We • Ensuring the workplace and occupational health and safety comequipment is in good working mittee. “The IRS outlines layers of will never let it be forgotten. We’re order responsibilities,” Morrison explains. like a family here. You don’t want • Making certain that employees are “Everyone has the right to a safe anyone hurt on your site.” working properly workplace. Everyone has the right to There is no one program for safety • Performing a specific act of safety participate in the safety process. And at McArthur River but rather an array in the workplace everyone has the right to refuse of programs and processes that • Determining whether employees unsafe work.” weave together to build the framecan and will continue to work Lead indicators are built around the work for a safe environment and fosproperly safety lag indicators. For example, job ter a culture of safety across the site.

The system makes people ask task observations, or contact efficienThese programs are relatively stanthemselves about key elements of cies (visits by the supervisor in the dard. However, by maintaining a safety while in the workplace. From workplace), may contribute to underfocus on these procedures and instillthere, action plans are formed. “The standing the risks in specific tasks. ing safety as a condition of employimportant thing is, people are McArthur River employees know ment, McArthur River has achieved empowered to stop and make changes that all incidents are reported in the outstanding results.

56 | CIM Magazine | Vol. 5, No. 4

Photo courtesy of Cameco Corp.

Heather Ednie

safety | COLUMNS Cameco incident reporting system (CIRS). McArthur River’s information is merged in a database with that of all other Cameco sites, allowing for cross-referencing and identification of trends and potential risks. CIRS information is used to teach teams and to set action plans to reduce risk.

The company encourages employees to report every incident, no matter how small. This diligent reporting feeds other safety procedures on site and builds a more concise picture of the operations.

If a couple of incidents occur in a row, Morrison says his team begins to worry that it may be a trend. If that is the case, they take action with a safety stand-down. Using creative methodology, they investigate the situation and take action to address any mounting problems that might exist.

“We’re not afraid to stop work and address what’s happening; it’s expected,” says Morrison. “It shows the commitment to high safety standards. It takes courage and moxy to prioritize safety to the point of stopping work, but it’s necessary. We won’t take any risks. It’s not worth it.”

an asset in case of emergency, the obvious corporate support for these teams underlines the company’s commitment to safety standards.

level of regulatory scrutiny is high in uranium mining, so the company has stringent audit programs to ensure they are doing what they claim. Their commitment to safety goes beyond compliance and recognizes worker safety as the most important aspect of their operations.

“We have a terrific team here. Our people are the number one reason for our success,” Morrison adds. “This is why I like being part of the McArthur River team. I really believe the senior executives believe what they’re saying, and safety truly is the company priority.” CIM

Home at the end of the day A number of support systems add to the safety program onsite. These include the Safety, Health, Environment and Quality System; the Contractor Management Program; stringent safety standards; and a fully developed program on preventative maintenance. All these programs are supported by a systematic approach to training.

Morrison says that Cameco really walks the talk — and proves it. The

www.cameco.com

Job hazard analysis The job hazard analysis (JHA) is a procedure for times when no procedures apply. All operations, including McArthur River, have many procedures in place, but often employees find themselves performing unfamiliar tasks. That is when a JHA is carried out. The group gets together and agrees on how the task will be done and writes up the procedure. If, when doing the task, it is decided to deviate from the written procedure, the group must come back together to agree on the altered approach. “JHAs recognize risk and put controls in place to mitigate that risk,” Morrison adds. “We have JHAs frequently — at least daily.”

Although the focus of a strong safety program is on preventing incidents from occurring, McArthur River’s mine rescue team and emergency response team are both exceptional. Cameco allocates a great deal of training to these teams. Not only

Giving back

Fulfilling needs

UNICEF and the International Zinc Association (IZA) have joined forces

in the Zinc Saves Kids campaign launched on January 27 during the World

in Davos,

Switzerland.

Lindsay,

chairman

of IZA, preEconomic Forum Don

sented UNICEF executive director Ann Veneman with a check for US$1.66

million as part of IZA’s multi-year commitment to this initiative. In addition, IZA will contribute to support UNICEF’s relief work in Haiti.

The initiative will raise funds to support UNICEF’s zinc supplementation

programs for children in developing countries. “Scaling up the use of therapeutic zinc could prevent an estimated 300,000 diarrhea-associated child deaths annually,” said Veneman. “This initiative will expand delivery of zinc supplementation to children in the world’s poorest and most remote communities.”

“Children are our greatest resource, and our industry is committed to working with UNICEF to raise the awareness of zinc deficiency in children worldwide and to raise funds to help solve the problem,” said Lindsay.

June/July 2010 | 57

COLUMNS | engineering exchange Expanding up Increasing tailings capacity by adding new layers to an existing facility

Photo courtesy of Golder Associates

Heather Ednie

East Lake tailings management facility, Seabee Mine

Some problems are nice to have.

Such is the case for Claude Resources’ Seabee Gold Project at Laonil Lake, Saskatchewan, where continued exploration success has resulted in a challenge to expand tailings facilities to meet the extended mine life capacity.

Seabee Mine entered production in 1991, with a planned mine life of three years. Now, almost 20 years later, it is still going strong, with no end in sight. The original tailings facility, designed for three years of operation, was modified in 1997 (including changes in the mill) to handle production up until 2004, at which point a new facility that would carry production through 2009 was designed and constructed.

However, with permitting underway (since obtained) at the Santoy 8 — another satellite gold deposit — combined with continued extension of reserves in the main Seabee Mine, the need for greater tailings capacity was imminent. Golder Associates helped with the permitting of the Santoy 7 satellite deposit and was retained again in 2007 to find options for another facility.

Finding the solution Leon Botham, principal, Canadian mining sector leader for Golder Associates, says his team looked at a number of options to expand tailings capacity at Seabee. They investigated the local area for opportunities to

Photo courtesy of Claude Resources

Panoramic view of the Seebee Mine site

58 | CIM Magazine | Vol. 5, No. 4

build a new facility, but found nothing they deemed reasonable without using another lake, which was not ideal. No options were presented at an acceptable cost to meet the needed capacity.

So, the team returned to the existing tailings facilities and got creative.

East Lake was part of the original construction and was filled to capacity in 2004. A second facility at Triangle Lake was nearly, but not quite, full. With creative juices flowing, Botham’s team turned their sights on expanding the Triangle Lake facility.

Although the dams’ design required modification, it was the easier of the two to expand.

“The original dams are essentially concrete walls, which made it easier and less costly to raise the existing topography,” Botham explains. “We went from concrete walls to rockfill dams with geomembrane liners. By raising the structure, we were able to give three more years’ capacity to the Triangle Lake facility.”

At East Lake, there is high ground on the west side and dams

all the way around the rest. The challenge was what to do with the existing topography on the west side. “We chose a method that had been used in other places, such as in eastern Canada, but never in Saskatchewan,” Botham says. “We will build rockfill dykes on top of the existing tailings. New tailings produced will be deposited in cells on top of the existing tailings facility and the water will flow down.” In the stacked tailings, the dykes will contain the solids, and the water from the tailings slurry will flow through the dykes to be collected in the existing pond.

In total, the two expansions will allow for about five and a half years’ additional tailings capacity for Seabee. Knowing the mine plan is most likely to extend beyond that, plans for a second Triangle Lake tailings facility expansion are already in place. Although this second expansion has not yet been permitted, the plan is to dam off an adjacent low lying area and use the same tailings stacking method employed at East Lake.

The first Triangle Lake and East Lake facilities expansions recently received regulatory approvals, with construction set to start when the snow melts. A remote camp, there is an ice road in the winter, but only flyin access the rest of the year. Claude Resources will use their own on-site equipment to build the new tailings management structures.

During construction, the biggest challenge will be at the East Lake facility. “The tailings we’re building on are still saturated, so when we build on them, pore pressure will increase,” Botham says. “We’ll need to allow that pressure to dissipate as we go. So a key part is going to be getting the timing correct, by controlling the rate at which the fill is placed.”

Going forward, the plan is for the East Lake tailings facility to operate in the summer and the Triangle Lake facility in the winter. The objectives are to get both facilities built as

COLUMNS

Photo courtesy of Golder Associates

engineering exchange |

Proposed layout of the East Lake tailings facility

quickly as possible and into use this year.

“This will be a demonstration project for the Saskatchewan regulators as the stacking method is new to the province and will show it does work safely,” Botham adds. “The success of the East Lake expansion will enable easier permitting for the second expansion of Triangle Lake.”

Permitting was a challenge, as the stacking method at the East Lake facility was new. It required a truly collaborative effort to keep the government informed. Botham says that

Claude Resources Inc. and Golder Associates are a real team and worked as one to communicate with the government to ensure their proposal was well-understood.

“It’s been an educational project for me and an interesting challenge,” Botham adds. “It’s exciting — we’re not just looking at an additional fiveyear life, but we’re focused on the horizon, and we’ve identified how to keep going forward.” CIM www.golder.com www.clauderesources.com June/July 2010 | 59

COLUMNS | women in mining A networker and connector Golder’s Shaw immersed in mining Heather Ednie When Catharine Shaw began working in the mining industry, the first thing that impressed her was the people. “They are passionate and driven, and the industry is a whole community unto itself,” she explains. “The community is small but the projects are huge, and they have massive impact on everyday life. I had no knowledge of mining before — it’s not taught, not talked about, but it’s all around us. I want to be a part of the industry for the rest of my life.”

The Golder girl This August will mark eight years for Shaw at Golder Associates, although she only joined the mining group in 2005. “I’m a huge advocate for Golder Associates — I get a little tenacious about it at times,” she laughs. “It’s like going to school — I’m learning all the time.”

Currently continuing her education in business studies, Shaw was previously involved in a number of startup companies, including her first venture several years ago launching a designated drinking and driving service in Vancouver. Soon after, she decided it was time to work in a more corporate setting.

When she learned about Golder Associates, the employee-ownership model was a major factor in her decision to come on board. “All my previous work had been independent,” she recalls. “The employee-owner model was a real attraction.” At Golder, Shaw is responsible for marketing and business planning and implementation, with a key focus on client relationships for mining across Canada; in addition, she works with mining leaders around the globe.

“My main focus is on implementing the strategic initiatives for the year and developing the marketing program that compliments our strategy,” she explains. ”I’m part of Golder’s mining 60 | CIM Magazine | Vol. 5, No. 4

Catharine Shaw

client sector program in Canada. As a member of that team, I provide the mining industry with a name and a face of Golder — it’s like being a conduit for information. I am a networker and a connector — the focus is on getting things done.”

Shaw’s abilities are being recognized. In 2008, she won Golder Associates’ President’s Award for Excellence in Customer Service and New Client and Business Development.

Her aim is to become an associate, and considering it takes peer recognition, a strong profile (both internally and externally), a demonstration of commitment, and of working and living the core values, it sounds like Shaw is already on the right path.

Industry advocate Once introduced to the mining industry, Shaw wasted no time getting involved. She had been active with CIM as a Toronto Branch member and was part of the organizing committee for the CIM Conference and Exhibition in 2009. This year, she was appointed the interim chair of the CIM Mississauga Branch during its startup. She is excited about the endeavour and honoured by

the recognition. “I believe in the purpose of the proposed branch — we have a whole pool of resources and people here, and the desire for more technical information,” she says. “It’s a great opportunity for collaboration. I’m looking forward to working with the other branches and submitting our proposal to Council to fully launch before the year’s end.”

Shaw is also involved with Women in Mining (WIM) Canada, serving as its secretary and co-chair of the communications committee and, for the fourth time, being part of the WIM team in the Weekend to End Women’s Cancers. And last October, WIM Canada was incorporated. “It’s been a wonderful adventure,” Shaw says. “It started with a group of women and their vision of a need for a national voice and formulizing purpose. In a short time, we’ve incorporated, commissioned and publicized a gender study entitled Ramp-UP, and held two successful events. Now is the time to rally and get going — we have a lot of men and women interested.”

Shaw’s passion about the mining industry extends to her concerns over attracting the best workforce for tomorrow, especially in the business sectors. She wants to see mining become part of the Grade 3 curriculum, at an age when children start to identify with the world. And, she highlights a need for mining spokespeople to give talks at the university level, in non-traditional fields.

“We need to give presentations on how their skill sets would be wellapplied in this industry and get them thinking ‘mining,’” she explains.

“We’re a consumer society, all about products — so people don’t see mining. We need to get the good story of mining out there.” CIM www.golder.com

first nations |

COLUMNS

The drawbacks of the government regulating Aboriginal and industry relationships Juan Carlos Reyes At this year’s Learning Together conference in Vancouver, one of the presenters spoke of the increasing need for junior exploration and mining companies to build and strengthen solid relationships with regional Aboriginal communities. He referenced a recent incident that took place in the Ring of Fire where exploration was halted during a blockade by the First Nation communities of Webequie and Marten Falls as a result of poorly managed relationship building, and the flow of funding to these projects was stifled. He went on to say that Bay Street is finally starting to realize the importance for companies to nurture strong Aboriginal alliances and partnerships. Another of our presenters, Learning Together director Jack Blacksmith, focused on community engagement and corporate social responsibility. In short, these topics have never been more relevant.

The sometimes inflamatory and strained relationship between industry and Aboriginal communities might prompt government intervention as they attempt to implement what they perceive to be a measured approach for relationship building. However, the impacts of this could be detrimental for both Aboriginal communities and industry. Bill C-300, for example, currently making the rounds in Parliament, has a lot of merit on the surface.

However, when you stop and think about the thousands of other cases in

which the relationships between communities and industry have been phenomenal, this new regulation might create unnecessary complications.

Otherwise amicable relationships could be strained by giving more power to the naysayer.

The summary section of Bill C-300 states: “The purpose of this enactment is to promote environmental best practices and to ensure the protection and promotion of international human rights standards in respect of the mining, oil or gas activities of Canadian corporations in developing countries.

It also gives the Minister of Foreign Affairs and Minister of International Trade the responsibility to issue guidelines that articulate corporate accountability standards for mining, oil or gas activities and it requires the Ministers to submit an annual report to both Houses of Parliament on the provisions and operation of this Act.” Unless more is done to ensure that the all-too-frequent incidents of shattered relations occur much less frequently, everyone will be forced to live with a government-implemented relationship strategy that will limit the freedom to negotiate in good faith. And many of our companies and Aboriginal communities do not require this intervention. There are indeed many partners with limited resources that have nonetheless developed very ingenious and respectful ways to engage and become

mac facts

In 2006, Canada exported around $410 million worth or iron ore and $340 million in non-ferrous products and alloys via ship to the US, while importing $240 million worth of iron ore.

meaningful partners, despite this lack of funding.

For example, there was a small exploration company doing work with Wahgoshig First Nation that found creative ways to engage and incorporate opportunities for the community during their drilling program. They engaged their driller as a trainer and brought in young summer students as helpers to assist with the work. With a tight budget, this company was able to develop a solid relationship with the community that continues today. My fear is that once a government strategy is implemented, some communities might have very high expectations for what constitutes consultation, and accomodation examples like Wahgoshig will no longer take place.

We need to increase the support for organizations like the Canadian Aboriginal Minerals Association (CAMA) and Learning Together that are working hard to ensure that our Aboriginal communities receive ample information and assistance, including lessons learned from past mistakes and creative methods being utilized by other communities with great success. These organizations are the ideal intermediaries for industry and Aboriginal communities as we forge new bonds of cooperation on mutually beneficial terms — not those proscribed by government. CIM www.learning-together.ca

About the author Juan Carlos Reyes is an Aboriginal consultant with efficiency.ca and the executive director of Learning Together.

He is passionate about human rights and works tirelessly to help improve the lives of Canadian Aboriginal people.

June/July 2010 | 61

COLUMNS | innovation CEMI hones research initiatives The focal points: ventilation, underground construction, geotechnical risk

The Centre for Excellence in Mining Innovation (CEMI) in Sudbury has focused its R&D efforts on facilitating the delivery of step-change research initiatives identified as critically important to the mining industry. It strives to establish excellence in strategic areas of research — deep mining, mineral exploration, integrated mine engineering, the environment and sustainability — as highlighted in its 2009 Annual Report.

The three major initiatives this year target energy savings through use of ventilation on demand (VOD); rapid mine excavation through underground mine construction (UMC), with CEMI’s primary focus on associated ground control requirements; and risk identification and management for mining complex and deep ore bodies (GeoRisk).

In 2009, CEMI received $4.25 million of federal funding to install, test and measure the efficiency of novel VOD technologies to decrease energy costs and increase productivity. This funding, in conjunction with funding from Vale Inco, Xstrata Nickel, NRCan and the Canada Mining Innovation Council (CMIC), has allowed a more vigorous assessment of VOD. The initiative will: • Determine whether mobile equipment can transmit exhaust qualityrelated information in an operating U/G environment to better define ventilation needs.

• Compare the relative costs of installing VOD at the outset of a mine or retrofitting an existing operation.

• Develop a better business model that can assess the incremental cost/benefit of various stages of VOD. • Evaluate sensor reliability and density.

Additionally, Peter Kaiser, president and CEO of CEMI, is working with 62 | CIM Magazine | Vol. 5, No. 4

Photo courtesy of CEMI

Shannon Katary

The CEMI team (front): Al Akerman, R&D program director; (first row) Natalie Lafleur-Roy, finance and operations; Jane Djivre, business development officer; Sandra Djivre, workshop coordinator; Peter K. Kaiser, president and CEO; (second row) Andrew Wilson, research engineer-in-training; Glenn Lyle, R&D program director; Keith Bullock, R&D program director; (third row) Shannon Katary, marketing and human resources specialist; Benoit Valley, researcher; Damien Duff, R&D program director.

Rio Tinto on a strategic research project in underground mine construction, specifically in the pre-operational construction phase of new mines, with a focus on high-speed mechanical shaft sinking and tunneling. Issues under investigation include innovative support installation systems and new support design methods, particularly when mining at depth or in highly stressed ground. Rio Tinto initially committed one million dollars to address ground control issues related to mechanized excavation at depth.

The GeoRisk project, which includes core contributors Golder Associates, Itasca Canada, the University of Toronto’s Lassonde Institute, Laurentian University, Mira Geoscience, MIRARCO, Queen’s University,

Vale Inco and Xstrata Nickel, will help to identify, as well as mitigate and manage, risks associated with complex deep ore bodies in order to create safer workplaces, reduce development timelines and control fault slip ground movement. The project addresses risk issues of concern to both investors and mining company management alike when accessing deep ore bodies in complex geological settings. These issues include geotechnical matters, safety and economic concerns associated with major capital investments, and higher operating costs in deep underground mines, particularly those subject to “above-normal” geotechnical challenges.

The value of the project is clear: if long-term investments are to flow to

innovation | deep Canadian mines, investor risk must be reduced. R&D program director Damien Duff anticipates innovations to include better site characterization; risk assessment in early mine design, in particular through the use of hazard mapping; advanced energy release controls and optimal mine sequencing techniques.

The project is now being expanded to include a specific focus on the issue of fault slip rock burst controls in underground mines. “It has become apparent from our industry consultation that this issue is of fundamental interest to most mining companies with deep mines,” says Duff. “The scope and impact of this form of rock bursting is large enough that addressing it will involve a coordinated international research effort,” he adds.

Under Duff’s direction, CEMI has been hosting a series of experimental design workshops for its proposed

International Fault Slip Control Research Initiative (IFSCRI), a multimillion dollar, multi-year program intended to develop a globally recognized research initiative to improve fault slip control techniques in underground mines. Involving the input of research and industry leaders in seismicity, geophysics, structural and engineering geology, data integration and modelling, as well as mine engineering and other related fields, these multidisciplinary roundtable sessions have been providing valuable insights into the novel research and technology R&D projects needed to better understand how to control the energy release associated with fault

COLUMNS

slip in underground high-stress ore bodies.

These collaborations are the foundation for safer, more sustainable mines in the future. CEMI welcomes interested participants to learn more and get involved in this and other exciting initiatives by visiting our website or contacting the author or R&D directors directly. CIM www.miningexcellence.ca

About the author Shannon Katary is the marketing and human resources specialist for CEMI. She promotes CEMI and its mandate through hosting various activities such as workshops, seminars, lecture series and forums focused on advancing CEMI’s strategic research programs and projects.

June/July 2010 | 63

Finding silver in Keno

Louis Beauvette, circa 1930s

Photo courtesy of Yukon Archives, Claude and Mary Tidd fonds, #7475

Striking it big after the Klondike Gold Rush Correy Baldwin

I

t was in the fall of 1918 when Louis Beauvette, an expert woodsman and occasional miner, came across rocks containing silver ore while hunting in the hills above Duncan Creek in the backwoods of the Yukon. He began tracing the rocks further uphill to find their source, but it grew cold and began to snow. He was forced to turn back, determined to return the following year.

Prospectors had long known that silver existed in the Yukon, but few had sought after it. There, gold was everything. It was not only worth more than silver but had more glamour as well.

The Klondike Gold Rush was in full swing just ten years earlier and the discovery on Bonanza Creek in 1896 began a stampede that brought some 40,000 entrepreneurs to the ramshackled boomtown of Dawson City.

Like all booms, it did not last. First, gold was discovered in Nome, Alaska, and by the early 1900s, the largest gold deposits in the Klondike had begun to be picked clean. The rest of the stampeders were eventually drawn away to fight in World War I. For a time, copper mining responded to wartime demands, but this, too, tapered off when the war ended. The Yukon economy was on the verge of collapsing.

Luckily, a handful of men stuck around to keep searching the creek beds and hills for the next big find.

They were in a relatively good position — Yukoners were becoming stampedeproof after too many false rumours, and there were far fewer prospectors around. The Duncan Creek area where Beauvette was waiting out the winter was nearly deserted.

64 | CIM Magazine | Vol. 5, No. 4

Just as the snow cleared in early July, he heard that an investor named Fred Bradley was in the area to consider the Lookout Mountain property. Hoping to entice him with his own find, Beauvette quickly set off to claim his silver. He soon found the ore and tracked it to its source, where he collected samples and staked a claim. But as he approached the town of Mayo, he heard the whistle of a steamboat as it left for Dawson — he had missed Bradley by mere minutes.

Beauvette was in a bind — he needed his samples assayed, but he also wanted to prospect the hill more thoroughly before too many others heard about his find. He approached Jack Pickering, whose Lookout Mountain property Bradley had just turned down, and who was now quite broke. The two agreed to work together. Pickering would take the samples to Dawson and catch Bradley, and Beauvette would head back to the hill.

Pickering left on the next steamboat, but when he got to Dawson he was too late: Bradley was already gone.

Pickering instead turned to the trusted Alfred Kirk Schellinger, an assayer for the Yukon Gold Company. Schellinger was so impressed with the samples — among the richest he had ever seen — that he packed some supplies and left with Pickering on the next steamboat back to Mayo. They were now a party of three.

Meanwhile, Beauvette had enlisted James Anderson, an experienced miner and a colleague of Pickering’s, to help

him prospect the hill. When everyone met up in Mayo, they had become a party of four. One more man was required. Together, they hired the eccentric “Pegleg Scotty” Mowatt and his two-horse team to carry supplies up the hill in one of Pickering’s wagons.

Finally, after a brief incident in which one of the horses left camp during the night and Mowatt set off on wooden leg to find it, all five men stood together on top of Beauvette’s hill. Schellinger surveyed the area, and Beauvette and Anderson prospected more thoroughly, finding another silver vein. Together, on July 29, they staked and claimed the hilltop. There were six claims among them, including Beauvette’s original Roulette claim — a nod to prospecting’s gambling spirit. Following his lead, Pickering named the spot after another gambling game: Keno.

Schellinger returned to his office in Dawson to assay the silver and to sell the claims to Yukon Gold on behalf of the entire party. A rush to Keno Hill followed; the next year over 600 claims were filed and over 100 men were employed on the Yukon Gold property.

The town of Keno City was settled and by the middle of the 1920s, the Keno mines had brought the once-flagging Yukon economy back to life. CIM

CIM CONFERENCE & EXHIBITION 2011 MINES WITHOUT BORDERS

CALL FOR ABSTRACTS Under the theme of “MINES WITHOUT BORDERS,” CIM is developing a comprehensive technical program, for which papers are currently being solicited. The program streams include: Projects, Best Practices, People & Business Management, Environment & Social Responsibility, Innovation & Technology, Earth Sciences and Iron Ore Symposium.

Papers written in French under the program themes are also being considered for the Francophonie (a focus on projects in French-speaking countries); Plan Nord (a Quebec government initiative aimed at stimulating the economic and social development of the northern regions, for the benefit of those regions and also of Québec as a whole); and Iron Ore Symposium sessions, all of which will feature simultaneous translations.

IMPORTANT DATES Abstracts submission: September 30, 2010 | Notice of acceptance: December 20, 2010

Technical Program PROJECTS

BEST PRACTICES

PEOPLE AND BUSINESS MANAGEMENT

ENVIRONMENT & SOCIAL RESPONSIBILITY

INNOVATION & TECHNOLOGY

EARTH SCIENCES

IRON ORE SYMPOSIUM

Plenary

MON AM

MON PM

Plan Nord I

Environment & Water Management

Safety

Aboriginal Successes

Francophonie VI

Geology I

Iron Resources: Availability and Projects in Development

TUE AM

Advanced Pre-Feasibility

Plan Nord II – Logistics

Francophonie IV – Work Force Planning I

Environment

CMIC – Case Studies

Rock Engineering I

Mining Operations

TUE AM

Design & Construction

Geotechnical – The Profitable Way

Plan Nord III – Work Force Planning II

Francophonie V Infrastructure I

Mine Planning & Management Systems

Geology II

Pelletizing & Concentration

TUE PM

Decommissioning through the Life Cycle

Francophonie III – Supply Chain

Shareholders (NI 43-101, etc.)

Plan Nord IV – Infrastructure II

SMART – Surface Mining

Rock Engineering II

Environment and Advances in Technology of Iron Ore Reduction

New Concepts in Mine Haulage and Automation

Finance & Management Day

Case Studies

Plan Nord V

Water Management

Highlights on Canadian and International Producers

Maintenance & Reliability

Finance & Management Day

The Next New Thing

Energy Management

Plan Nord VI

Francophonie I – WED AM Regional Economic

Development I

WED AM

Francophonie II – Regional Economic Development II

Closing Luncheon WED PM

Finance & Management Day

SUBMIT YOUR ABSTRACTS TODAY

www.cim.org/montreal2011

Closing Plenary

cim news Beyond the podium CIM Distinguished Lecturers leave lasting impressions

By Robbie Pillo This past season’s CIM Distinguished Lecturers Program — an attendance record-breaking success — featured outstanding speakers and inspiring individuals who captivated CIM branch and society audiences across the country. Each field-leading expert left his mark, sparking discussion that is integral to fostering CIM’s role as a community for leading industry expertise.

Steve Scott delivered his talk, “Seafloor Massive Sulfide Mining – the Dawning of a New Industry,” at 17 venues between January and March. The subject never failed to generate enthusiasm and probing questions about this new source of base and precious metals. He had four versions of his presentation in both official languages and delivered two of them in French.

“After attending Steve Scott’s talk, I emailed my old classmates with a

must-attend recommendation at their local branches,” said Ron Sinkiewicz, CIM Red Lake Branch chair.

Sinkiewicz’s regard for Scott’s presentation is shared by MetSoc-CIM McGill Student Chapter president Nalini Singh who noted, “The possibility and reality of underwater mining captured the imagination of all, by pushing the lines of traditional mining ventures.”

Over 13 CIM branches across Canada have benefitted from Don Thompson’s timely address, “Setting the Record Straight,” in which he dispelled the myths surrounding the oil sands industry and demonstrated this industry’s commitment to balancing significant development and economic benefits without sacrificing environmental stewardship. “This presentation should be a required part of high school education across the continent,” said Fenna Poelzer, CIM Edmonton

Branch chair. “Thompson kept students and industry veterans equally engaged by providing facts, citing his sources and encouraging everyone to not only verify his points themselves, but to take advantage of additional learning opportunities as well.”

Kelly Lendsay delivered a powerful message in his talk on “Aboriginal Inclusion: A New World of Opportunity.” Pierre Verpaelst, Quebec Branch chair said, “He left an enduring and strong impact on all who attended his talk.” CIM Edmonton Branch education chair Gord Morris noted, “Lendsay is on the right path to further enhance Aboriginal participation in the workforce in Canada.”

Engin Özberk’s presentation, “Innovation and Uranium Mining from a Canadian Perspective,” attracted quite a lot of interest, including from our members up north.

“Even though almost all our members

CIM DISTINGUISHED LECTURERS 2010–2011 LINEUP

MAHESH C. CHATURVEDI

MICHAEL DOGGETT

JAMES M. FRANKLIN

NORMAN O. LOTTER

DAVID D. RODIER

University of Manitoba, Winnipeg, MB

HanOcci Group, Vancouver, BC

Franklin Geosciences, Nepean, ON

Xstrata Process Support, Falconbridge, ON

Retired, Noranda Inc. (38 years); Hatch, (5 years), Mississauga, ON

The Role of Boron in Design Superalloys

Long and Short of the Minerals Industry: A Tale of Two Extremes

Future Mineral Resources Discoveries: New Knowledge Needed for Discovery

Modern Flowsheeting Technology

Sustainable Development – A Passing Fad or the Strategic Way Forward?

BOOK NOW: www.cim.org/activities/lecturers2011.cfm 66 | CIM Magazine | Vol. 5, No. 4

cim news CIM M/E Society awards Centennial Scholarships

By Marlene Eisner here are geologists, we found his talk to be very interesting and informative,” said David Watson, CIM Yellowknife Branch chair.

According to Carmen Storey, CIM Red Lake Branch director, lecturer George Kipouros “made a complex topic understandable” with his presentation titled “Materials and Asset Integrity.”

Of course, the knowledge exchange goes both ways. “The program provides an important service to its members, the community at large and the lecturer,” said Steve Scott. “Long may it continue!”

Scott’s enthusiasm was matched by Thompson who said, “I was very honoured to have been invited to speak to people who drive the Canadian economy.”

From corporate social responsibility to innovative exploration, the upcoming 2010-2011 CIM Distinguished Lecturers series (see lineup on previous page) promises to keep audiences up to speed on the next wave of industry information and developments. Be sure to book early and reap the benefits of this truly remarkable opportunity. CIM

Lunchbox Winners from draw at CIM Conference and Exhibition 2010

BLACK MINERS LUNCHBOX Robert Ens, National Mine Service

CAMOFLAUGE MINERS LUNCHBOX Brett Woolward, McGill Mining Engineering Student

STAINLESS STEEL MINERS LUNCHBOX Scott McElroy, Voith Turbo

PINK MINERS LUNCHBOX Vanessa Neuman, Rescan

www.minerslunchbox.ca

Brad Pederson likes to be kept on his toes. Andrew Reimer has been intrigued with minerals since the age of nine. Pederson and Reimer, both mechanical engineering students, are recipients of the CIM Maintenance and Engineering Society 2009 CentenAndrew Reimer Brad Pederson nial Scholarship. The $1,998 award is open to any CIM national member or the son, daughter or spouse of a CIM national member currently enrolled in a post-secondary educational institution studying in the M/E disciplines with the intent of pursuing a career in the mining industry.

Mining graduate enjoys challenges of the North Pederson, a 23-year-old Metis studying at the University of Saskatchewan, graduates with honours this June. The Martensville, Saskatchewan, native says he first became interested in mining while working summers in construction near the uranium mines of northern Saskatchewan. “I knew that I wanted to work in the mining industry when I saw the exciting challenges that they have to overcome,” he says. “It can be a fast-paced industry that keeps you on your toes. That is important to me.”

One of the challenges Pederson was able to see up close was the issue of accessibility, a critical factor associated with remote mining areas. “As the sites are so far north, even getting food for your employees can be a daunting task, as there is no grocery store nearby,” he says. “Shipping and receiving does not occur instantly, and getting parts for broken machinery can be costly as they may take days to arrive.”

Winning the scholarship was “fantastic” he says, and the money will be used to reduce some of the debt he has acquired during his school year. After graduation, Pederson hopes to continue working as a project co-ordinator with his summer employer, Points Athabasca Contracting Ltd. Partnership, with plans to move into a project manager’s position when he gains more experience and obtains his P.Eng.

Skier, rugby player and soon-to-be miner Andrew Reimer, 20, is studying at University of New Brunswick in Fredericton and says his interest in mining was sparked by a video program. “When I was nine, my father developed a piece of education software called ‘New Brunswick’s Mineral Wealth.’ I was given the privilege of beta testing it, and the fun characters and mini-games peaked my interest.”

Reimer says he is grateful for winning the scholarship and has used the money to help pay for university expenses. “It was such a relief,” he adds. “Being in university can be a little tough on the wallet. I decided not to take a part-time job during the year so I could better concentrate on my studies. This scholarship really made a difference to me being able to keep my mind on school instead of work.”

Reimer has spent his summers working for the New Brunswick Department of Natural Resources and J.D. Irving. He’s an avid skier and part-time ski instructor at Crabbe Mountain, as well as a rugby player, representing the Fredericton Loyalists team and the UNB Ironmen.

“Although I haven’t yet worked in the mining industry, I am interested in mining because there are so many international opportunities,” Reimer says. CIM June/July 2010 | 67

cim news What does it take to be a good leader?

Industry’s rising stars share their strategies for success

By Marlene Eisner Good communication skills, commitment, respect, inclusion, team building, common goals and passion: these factors are just part of the equation when it comes to determining — and choosing — the kind of leadership that moves companies forward in the best possible way.

Jim Sarvinis, Paul Blatter and Bernard Tan are this year’s recipients of the CIM-Bedford CanaJim Sarvinis Paul Blatter dian Young Mining Leaders Award. Newly created this year, the award recognizes young leaders 39 the consensus is that we all appreciate years of age or under for “exceptional the trust, respect and freedom that Jim achievement and their potential for allows us to have to shape and grow future leadership growth in various our careers in our chosen direction, sectors of mining, including corporate while at the same time providing valuperformance, operations, finance, techable advice and guidance.” nical services and innovation, marketFor Sarvinis, good leadership is all ing and trading, and services and about understanding people and allowsupport functions.” ing them to flourish. “The first thing is Sarvinis, Blatter and Tan were choto have the right team, and then it is to sen from an outstanding slate of worbring out the best in each individual by thy nominees by senior corporate letting them do what you ask and not leaders and mentors. Each of them has standing in their way,” he explains. been identified as a role model who has “There’s a tendency for people to set exemplary standards, leading their micromanage their team and it’s counteams on the road to success. In terproductive. It clamps a lid on peoanswering each of the eight questions ple’s potential. Empower your team to in the nomination package, colleagues do well by giving them opportunities and supervisors were clear in expressto excel.”

The next step is to develop a good ing the degree to which each winner embraced the mantle of leadership in communication and feedback system in order to validate the work people are positive and successful ways. doing. This, says Sarvinis, ensures everyone is aware that they are a vital Unleashing talent from within piece in the puzzle that forms the bigger Jim Sarvinis, 37, is the director of picture.

“I find people really appreciate thermal energy at Hatch. He is it, especially the younger generation of described as a person greatly admired engineers coming in,” he explains. and respected by everyone in the company. His strength lies in his vision, his “They want to feel like they are conloyalty and his honesty, which is felt by tributing to something bigger than everyone with whom he works. themselves, to understand how the part “Jim’s leadership abilities are proven they play is important to the outcome.” by his team’s respect for his management style,” writes colleague Patricia Team spirit Lai. “Among the junior/intermediate At 35 years of age, Paul Blatter has engineers with whom I work closely, had impressive results at Agnico-Eagle.

68 | CIM Magazine | Vol. 5, No. 4

Bernard Tan

He began his career at the company in 1999. Working first as a production metallurgist and then as a project metallurgist, he eventually felt he was ready for a new challenge. He wanted to work on a project from beginning to end and was assigned to the Lapa project as assistant superintendent on the concentrator.

“The Lapa project became a model of success — and a model to follow — throughout the company,” writes Dany Rodrigue, who worked with Blatter on the project and nominated him for the award. “Paul didn’t hesitate for a second to share that success with his colleagues.”

The success of any project often rests on the collaborative effort of a team. Blatter’s colleagues say he has a way of engaging his employees that brings them together to form a cohesive unit. “He is very committed to his team,” writes Rodrigue. “He utilizes each person in the team according to his strength and then manages to get the best out of each individual.”

It’s all about transmitting a sense of passion, determination and job satisfaction to the team, says Blatter. He does this by letting team members know how important their participation is to the success of the project and the satisfaction that comes from working together towards a common goal.

“By uniting as a team and pulling

cim news together for a common goal, people are validated and really enjoy the work they are doing,” he explains. “Everyone gets to their goal and is hungry for more.”

“The team was successful, the plan was executed and we had a great time doing it,” says Blatter.

Embracing change Showing exceptional leadership qualities during times of change is one of the many reasons Robert Dickinson nominated Bernard Tan for the young leadership award. In the last nine years, Hunter Dickinson has expanded from 40 to 140 employees as projects advanced from exploration towards production. As new acquisitions changed their management style and

the day-to-day role of the company, Tan continued “to show leadership during this time of changing relationships,” writes Dickinson.

Tan, 34, credits his leadership skills to his role models at Hunter Dickinson.

One important lesson he says he has learned is to show by example, and that means everyone, regardless of their title or position, should pitch in towards a common goal.

“Everything I know about leadership I learned here,” says Tan. “The individuals I work with show a lot of leadership by example and to me that’s important. As someone who wants to learn, it’s something to see the individuals here, regardless of the level they are at, roll up their sleeves and put in the hard work. There is no such thing as

something that is too small to reach the goal. To me that is how a leader should perform. You are part of the team.”

Tan says that he gains inspiration from the diversity of people with whom he works and enjoys their varied backgrounds and the differences they bring to the worktable. “There is a tremendous amount of diversity in mining — different professional groups, engineers, administrators — each of them brings unique viewpoints that steer the ship in the right direction,” he explains.

“Everyone that I know that has been successful takes the time to listen to people and when you do that, you learn more about who you work with,” Tan adds. “Listening is absolutely crucial to team success.” CIM

June/July 2010 | 69

cim news CIM welcomes new members Amaya, Jorge, Chile Anderson, Melissa, Manitoba Appelgren, Jorgen, Sweden Asalgado, Juan, Chile Atkinson, Brad, USA Bajaj, Apoorva, India Barnes, Arthur, Ontario Bédard, Denis, Québec Bempah, Owusu Albert, Ghana Besharatizadeh, Reza, Iran Blain, Jennifer, Québec Blainer-Fleming, Janis, USA Bokaria, Udit, India Boksteyn, Robert, Alberta Bovellan, Jari, Finland Bowness, Lawrence, Alberta Breton St-Jean, David, Ontario Burger, Danie, Germany Carin, Christianne, Alberta Casebeer, Cody, Alberta Chabot, Rejean, Saskatchewan Chen, Guangxi, Germany Chinedu Ugwuegbu, Chima, Nigeria Choi, Yosoon, Korea Coolidge, Jillian, Ontario Cuba, Miguel, Alberta Cunningham, Peter, Ontario Da Costa, Mervyn, Alberta Darlington, William, Australia Deraisme, Jacques, France Desbiens-Lévesque, Jean-Francois, Québec DeWolfe, Jerry, Alberta Duncan, Lisa, Australia Eakin, Ben, British Columbia Earnest, Pat, USA

Espinoza, Daniel, Chile Ferlatte, Gilles, Québec Flank, Steven, Ontario Forrest, Daniel, Québec Fournier, Jean-Denis, Québec Gonzalez, Eric, USA Gordon, Robert Scott, Ontario Goycoolea, Marcos, Chile Grunerud, Rory, British Columbia Hamidizadeh, Ramin, British Columbia Harrison, David, Québec Huang, Zhangyou, USA Hum, Ryan, Ontario Hummelman, Nicholas, British Columbia Issel, Andrew, USA Johnson, Ken, USA Jones, Stephen, Ontario Jouen, Didier, Québec Julich-Trojan, Cassandra, Ontario Kapageridis, Ioannis, Greece Kashani, Ali, British Columbia Kazemi, Parviz, Iran Keitirang, Modiredi, Ontario Kesting, Martin, Germany Kim, Peter, Ontario Koffie, John, United Kingdom Koppe, Jair, Brazil Koppe, Vanessa, Brazil Korobko, Valentin, USA Lajoie-Filion, Catherine, Québec Learey, Parker, British Columbia Leclerc, Jessica, Québec Legassie, Sean, New Brunswick Li, Hui, USA

Li, Zhongrong, British Columbia Lin, Mike, British Columbia Liu, David, British Columbia Loken, Michael, Ontario Louve, Jordan, Québec MacInnes, Jane, Nova Scotia MacNeil, James, Québec Marquez, Gustavo, Québec McGraw, John-Wesley, Ontario Morales, Camilo, Chile Morales, Nelson, Chile Moreno, Eduardo, Chile Morin, Chris, Québec Morin, Mark, Québec Mortazavi, Saviz, Ontario Napier, William, Ontario Nguyen, Son, Vietnam Nguyen Chi, Quang, Vietnam Nguyen Hai, Phuong, Vietnam Nguyen Manh, Diep, Vietnam Ola, Oyedele, Manitoba Olavi Auranen, Ilpo, Finland Pablo Mardones, Juan, Québec Pablo Vielma, Juan, USA Parvanian, A. Masoud, Iran Pederson, Brad, Saskatchewan Peirano, Fernando, Chile Pitis, Constantin D., British Columbia Queyranne, Maurice, British Columbia Ramsay, Kurtis, Ontario Reimer, Andrew, New Brunswick Riopel, Martin, Ontario Rodriguez, Leonel, Québec Rofuail, Reem, British Columbia

Rosko, Michael, USA Rudinsky, Stephen, Québec Sahin, Yasemin, Turkey Schubert, Joachim, Alberta Se, Stephen, British Columbia Shutuc, David, Ontario Siemieniuk, Steven, Ontario Singh, Navin, India Singh, Preetpal, Ontario Singh Sohota, Labhjeet David, Australia Smith, Amanda, USA Solar, Andres, Chile Stanford, Fred, Ontario Sundberg, Michael, Alberta Tafazoli, Saeed, Iran Taheri, Mehdi, Ontario Tanweer Razi, Syed, British Columbia Thompson, Matthew, Australia Thorkleson, Derek, British Columbia Tonkin, Cindy, Australia Trelawny, Peter, Ontario Vargas, Marcelo, Chile Verly, Georges, British Columbia Verret, Sean, Alberta Vos, Robert, Ontario Vu Van, Dong, Vietnam Watson, Tim, British Columbia Webber, Tiago, Brazil Weeks, Jordan, Québec Whitehouse, Ian, Australia Winkel, Reik, Germany Young, Jennifer, British Columbia Zhang, Jiwen, China Zhang, Meimei, Australia

Obituaries John B. Chalmers joined CIM in 1938 and became a Life Member in 1974.

James Thomas Fyles became a member of CIM in 1957. A Life Member since 1991, he died in late January 2010.

three public companies. He continued to practice geology long into his 80s as a consultant and prospector in both oil and gas and hard minerals. His long service to the University of Saskatchewan was recognized as a University Regent, and as Chair and member of the Saskatchewan Research Council. He was also awarded an honorary degree in engineering from the university. He died on March 25, 2010.

Charles Andrew LuVerne Hogg joined CIM in 1950 and became a Life Member in 1981. In 1934, he was a founding member of the Ore Gangue Geological Students’ Society at the University of Saskatchewan; the geology department still awards the Hogg Book Prize to support worthy geology students. He was a pioneer in the development of the natural resources of Saskatchewan, serving first as Deputy Minister of Natural Resources (1946) and then was the first Deputy Minister of Mineral Resources (1953). In 1956, he formed his own company as an independent geologist, and founded

H.R. (Nick) Oldale joined CIM in 1960, joined the Mining Society of Nova Scotia in 1974 and became a Life Member of CIM in 1998. He was a past president and Life Member of The Mining Society of Nova Scotia, and received several citations for his contributions to the organization. He was a District 1 Councilor of CIM and chairman of its 1995 annual general meeting held in Halifax. He was also a member of the Association of Professional Engineers of Nova Scotia.

He was named a Paul Harris Fellow and in 1991, a Fellow of CIM. He passed away on March 3, 2010.

Benjamin Evans Dean joined CIM in 1960 and became a Life Member in 1992. He passed away on March 18, 2010.

70 | CIM Magazine | Vol. 5, No. 4

Held in conjunction with:

Organized by: of

On behalf of the Metallurgical Society of CIM, I am pleased to invite you to the 49th annual Conference of Metallurgists, to be held in Vancouver, British Columbia, on October 3–6, 2010.

A broad technical program, spanning the world of metallurgy and materials, forms the foundation of this event. The meeting, held in conjunction with Pb-Zn 2010 and co-organized by TMS, will bring together the world’s leading experts on the extraction and processing of lead and zinc.

Co-organized by: The program includes the Fifth International Symposium on Advances in Refractories, the latest in this major international series. In total, the conference will host 11 symposia including: Innovation; Light Metals; Environmental Degradation and Control; Rheology in Fine Particle Systems; Materials for Clean Energy Systems; Sustainability for Profit; Fracture Control; Aerospace Materials; and Nanomaterials. These sessions will bring together attendees from all sectors of our community to discuss the latest developments, research and trends in the industry, academia and society.

METALS 2010 TRADE SHOW Open on Monday and Tuesday, October 4 and 5, The Metals 2010 Trade Show will be located in the foyer of the technical sessions, in the hub of the action. Contact MetSoc to reserve one of the few spaces still available.

A diverse selection of short courses and industrial tours complement the technical program. As well, the conference will feature a number of networking events to ensure that you have the chance to renew acquaintances and make new contacts. I extend a particular invitation to students to participate in the Poster Session and to attend the special events.

Our host city offers an unrivalled variety of opportunities to explore the urban/suburban settings and surrounding countryside. I look forward to seeing you there in October. Enjoy the conference and all that it has to offer.

Greg Richards Conference Chair Teck Metals Ltd.

HYATT REGENCY HOTEL

|

VANCOUVER, BC

|

OCTOBER 3–6, 2010

www.metsoc.org/com2010

Courtesy of Pratt & Whitney Canada

Courtesy of Teck Resources Ltd.

Technical Program Lead-Zinc 2010 — 5th decennial symposium with plenary speaker Nobuo Yamazaki, president of Dowa Metals and Mining Co. Light Metals — Aluminum, Magnesium, Titanium

Short Courses

5th International Symposium on Advances in Refractories (ISAR 2010) in honour of Michel Rigaud

The conference will be preceded by a number of short courses on Saturday and Sunday, October 2–3.

Aerospace Materials and Manufacturing: Advances in Materials, Processes and Repair Technologies 2010 Materials for Clean Energy Management of Innovation Materials Degradation and Fracture Control (CFRC) Sustainability for Profit Nanomaterials 8th UBC-McGill-UA International Symposium on the Fundamentals of Mineral Processing: Rheology and Processing of Fine Particle Systems

Student Program It is never too early to start building a network and at COM, the opportunities are numerous.

Enter a poster and present it to peers and industry professionals for a chance to win the $500 Poster Prize.

Join us on the lanes for an evening of free bowling. Create life-long friendships with fellow student delegates while enjoying drinks and food, graciously provided by Vale Inco.

Work the room at the Student-Industry Mixer, sponsored by Barrick Gold. The Poster Prize winner will also be revealed.

Lead-Zinc Short Courses Lead-Zinc Processing This course will focus on the fundamental aspects of the extractive metallurgy of lead and zinc, and will complement the presentations given in the symposium itself.

Iron and Steel Mill Residues The processing of residues from the iron and steelmaking industry for the recovery of zinc or zinc and pig iron will be the focal point of this course.

Treatment of Plant Effluents Topics to be covered in this course include: chemistry, technological aspects, recent advances and actual case studies in effluent treatment for discharge and/or reuse • management of sludges produced during effluent treatment • zero liquid discharge for effluent treatment • specific effluent treatment issues for the lead and zinc industries.

Technologies for the Production of Sulphuric Acid This course will focus on: acid plant fundamentals • gas cleaning for metallurgical acid plants • acid plant contact section • acid plant strong acid section • safety and risk management for sulphuric acid plants • acid plant materials of construction and corrosion issues, maturing acid plants and capacity creep • acid plant controls and instrumentation • startup of a new plant.

Keep up to date on program developments. Visit www.metsoc.org/com2010 for the complete technical program

Courtesy of Teck Resources Ltd.

Materials Science Short Course Fracture Control in Engineering This course will centre on: stress corrosion cracking • basics of fracture mechanics • and more! See our website for a list of speakers.

Mineral Processing Short Course and Tour Rheology and Processing of Fine Particle Systems The course will cover the following topics and includes a tour of the mineral processing laboratories at the Norman B. Keevil Institute of Mining Engineering at the University of British Columbia: • Basic concepts of rheology and viscosity • Techniques and equipment used to study rheology and viscosity • Surface chemistry and rheology of mixed mineral systems • Rheology of suspensions of anisotropic minerals • Rheology of thickened tailings and paste • Rheological aspects of processing lateritic ores • Effect of slurry rheology on fine grinding and flotation • Transport of non-Newtonian slurries • Processing of non-Newtonian slurries • Micro-rheology of mineral slurries • Rheology of coal-water slurries

Environment Short Course Sustainability for Profit

Special Events Special Lead-Zinc luncheon with invited guest speaker Don Lindsay, president and CEO of Teck Resources Limited. Tickets available for purchase on the registration website.

Special Event — The Materials section of the Metallurgical Society is honouring Michel Rigaud, professor emeritus, for his achievements in advancing the science of Refractories.

Join us for this special dinner to celebrate his achievements.

The Historical Metallurgy Committee of MetSoc will host a box lunch featuring guest speaker Phillip J. Mackey, recent retiree of Xstrata Process Support, on “Lessons of history — The beginnings of modern copper and nickel smelting technologies and the quest for energy efficiency and sulphur capture.” No reservations or tickets required; however, seating is limited.

This course will present and discuss opportunities to develop projects that can reduce greenhouse gas emissions and those that are eligible under the current schemes and/or a postCopenhagen new scheme. The international background under which greenhouse gas emission-reduction projects can be implemented will be given, as well as the steps to identifying opportunities. Market aspects will also be discussed.

Management Short Course Managing Innovation Topics to be covered include: • managing innovation • intellectual property portfolio • inventive skills improvement Presenter: Zion Bar-El, Ideation International Inc.

June/July 2010 | 73

Organizing Committee Conference Chair Greg Richards Teck Metals Ltd.

Technical Program Co-chair Zhenghe Xu University of Alberta

Technical Program Co-chair Qingxia (Chad) Liu University of Alberta

Short Courses Chair Peter Lind Barrick Gold Corporation

Industrial Tours Doug McKay

Industrial Tours

Teck Metals Ltd.

Industrial tours are limited in capacity, so register early.

Trade Show Chair Monica Nasmyth

CAPTIN (Canadian Autoparts Toyota, Inc.)

SNC-Lavalin

Student Activities & Poster Chair Ed Asselin

Wednesday, October 6 Visit the CAPTIN facility, touted as one of the most efficient manufacturing operations in British Columbia. The company’s facilities have been a source of innovation and industry standards for many years.

University of British Columbia

Teck Metals Ltd., Trail Operations

Publicity Chair Rachel Moore

Thursday and Friday, October 7–8 At Trail, located in British Columbia’s beautiful Kootenay region, participants will see and learn about one of the world’s largest integrated zinc/lead smelting and refining complexes.

Teck Metals Ltd.

Sponsorship Chair Michael King c/o MetSoc of CIM

Publications & Technical Program Coordinator Ronona Saunders MetSoc of CIM

Arrangements, Treasurer & General Inquiries Brigitte Farah Administration & Meeting Planning, MetSoc of CIM

Tel.: 514.939.2710, ext. 1329 Fax: 514.939.9160 metsoc@cim.org

Important Dates AUGUST 3 Early-bird registration deadline SEPTEMBER 3 Deadline for accommodation reservations at the conference rate (Hyatt Hotel) SEPTEMBER 3 Deadline for pre-registration and cancellation

74 | CIM Magazine | Vol. 5, No. 4

Innovation (Toxco, Trail Operations and Firebird Technologies) Thursday, October 7 See how Toxco Inc. has developed recycling solutions for most batteries and portable electronics, recycling usable materials from not only lithium, but also from nickel cadmium, nickel metal-hydride, lead, mercury and most other batteries.

Learn why Firebird Technologies Inc. is now a leading manufacturer of antimonide-based compound semiconductor wafers, specifically Indium Antimonide (InSb).

Hydrometallurgy (CESL Pilot/Demo Plant and Barrick Technology Centre) Thursday, October 7 CESL focuses on sustainable external and internal growth opportunities, technology transfer and improvement projects. CESL’s proprietary processes are developed and advanced at the combined pilot and demonstration plant facility in Richmond, British Columbia.

The Barrick Technology Centre is a metallurgical technical facility that provides metallurgical support services to Barrick’s Technical Services Group and its Research and Development Group, and the company’s mine sites around the globe.

Interstyle Thursday, October 7 Interstyle Ceramic & Glass infuses design and engineering excellence in the production of innovative glass and ceramic tiles.

25% DISCOUNT! Buy the complete set of COM 2009 proceedings (6 books & 2 CDs) for only $550 on site and benefit from a 25% discount off the regular price.

Sponsors Several sponsorship opportunities are still available.

Contact Michael King at michaelking806@comcast.net for details.

PREMIER SPONSORS:

Social Program Welcome Reception All delegates are invited to attend the Welcome Reception, sponsored by our Premier sponsors. Enjoy complimentary drinks and hors d’oeuvres while you renew old acquaintances and meet new friends.

MetSoc Annual General Meeting The society will hold its Annual General Meeting, featuring the inauguration of the new Metallurgical Society president.

MetSoc Awards Banquet The society honours its members with award presentations at the MetSoc Awards Banquet. Tickets for members, authors, session chairs, non-members, sister societies and principal exhibitors are complimentary, but must be reserved as seating is limited. Life and retired members, students and guests may purchase tickets at registration.

SPECIAL EVENTS AND CONTRIBUTORS:

SAVE $100!

Register before August 3rd and save!

SUPPORTING SOCIETIES:

Early-bird rates (before August 3): CIM national members • sister societies

$800

CIM life members

Free

CIM retired members

$200

Authors • presenters • session chairs

$800

Students • student presenters

$200

Non-members

$950

www.metsoc.org/com2010

June/July 2010 | 75

calendar CIM EVENTS

AROUND THE WORLD

Sudbury Branch Rudolph Kneer Memorial Golf Tournament August 7 Sudbury, ON Contact: Gary Poxleitner Email: gary.poxleitner@valeinco.com

XXV Mineral Processing Congress — IMPC 2010 September 6-10 Brisbane Convention and Exhibition Centre, Brisbane, Australia www.impc2010.org

Uranium 2010 August 15-18 Saskatoon, SK www.metsoc.org/U2010 Los Andes Branch August 17 Santiago, Chile Contact: John Selters Email: jselters@vtr.net Section Québec Tournoi Géogolf 27 août Québec, QC Responsable : Pierre Verpaelst Courriel : pierre.verpaelst@mrnf.gouv.qc.ca Toronto Branch Frank Grieco Golf Day September 1 Toronto, ON Contact: Rick Hutson Email: rick@cjstafford.com Edmonton Branch Technical Meeting September 13 Edmonton, AB Contact: Fenna Poelzer Email: fpoelzer@nacg.ca South Central BC Branch Annual General Meeting Meeting and Convention September 15-17 Kamloops, BC Contact: Maria Catalfamo Email: Maria.Catalfamo@teck.com New Brunswick Branch 35th Annual Convention September 23-25 Bathurst, NB Contact: Barbara Rose Email: BRose@xstratazinc.ca

76 | CIM Magazine | Vol. 5, No. 4

Safety 2010 World Conference September 21-24 Queen Elizabeth II Conference Centre, London, UK www.safety2010.org.uk/ XV Peruvian Geological Congress September 27–October 1 Centro de Convenciones Cusco, Cusco, Perù www.congresosgp.com Mine Waste 2010 September 29–October 1 Sheraton Perth Hotel, Perth, Australia www.minewaste2010.com SEG 2010 Conference October 2-5 Keystone, Colorado, USA www.seg2010.org 8th Annual Canadian Business for Social Responsibility Summit October 1 Toronto, Canada www.cbsr.ca CRO Summit – Sustainability 2.0 November 3-4 Union League Club of Chicago, Chicago, Illinois, USA www.crosummit.com Zinc Processing ’10 November 13-14 Vineyard Hotel, Cape Town, South Africa www.min-eng.com/zincprocessing10 Enermin 2010 November 14-16 Sheraton Santiago Hotel and Convention Centre, Santiago, Chile www.enermin2010.com Mine Closure 2010 November 23-26 Sheraton Miramar Hotel and Convention Centre, Viña del Mar, Chile www.mineclosure2010.com

history Nevada-type gold deposits (Part 1)

By R.J. “Bob” Cathro, Chemainus, British Columbia

“The first recorded prospecting in the Mercur area took place in 1869 with the establishment of a small camp named Lewiston at the head of (what became) Mercur Canyon in later years. The prospectors… (found) small pods of rich silver mineralization, without significant base metals… In the 1870s, Lewiston grew to a town of about 1,500 people… By 1881, the silver ores were exhausted and Lewiston had dwindled to a town (with only) one resident.” ~ Mako, 1999

Location of the Mercur Mine, Utah (from Mako, 1999)

It is unlikely that there is another small part of the earth’s crust that enjoys the distinction held by Utah’s Oquirrh Mountains, which hosts two mineral deposits that were the first of their types to be mined in North America (and possibly anywhere). One was the Bingham Canyon porphyry copper mine, where mining began in 1903; the other was the Mercur gold mine, located on the southwest flank of the mountain range about 22 kilometres south of Bingham, where gold production started in 1893. The two camps also share a common ancestry through Joseph R. De Lamar, a prominent mine owner at Mercur, who optioned part of the Bingham Canyon deposit and sent three of his top engineers to examine it in 1898, including Daniel C. Jackling who turned it into a world-class copper mine (Cathro, 2009a).

Although mining of another member of the porphyry family (this one of the tin-rich variety) had commenced along the German/Czech Republic border about 1440 and continued until 1991, it was not well known in North America and the similarities were not recognized (Cathro, 2009b). It was probably more than 25 years after mining began at Bingham Canyon before its geometry and genesis began to be understood. Similarly, the realization that Mercur was a Nevada-type deposit did not become obvious until about 1968, when Newmont Exploration Ltd. began to explore there. That was significant because Newmont had made the first modern discovery of this type of mineralization at Carlin, Nevada, in 1961 and was the acknowledged expert. That was the same year that Hewitt (1968) published a paper pointing out the strong resemblance between mineralization at Mercur and Getchell, Nevada.

The Mercur camp was given its name in 1879 when a German prospector staked the Mercur claim on a cinnabar showing discovered during the silver boom.

The first gold occurrence was only discovered in 1883 by means of fire assays because the gold was too fine-grained to be seen visually or recovered in a gold pan. An attempt in 1890 to recover gold using mercury amalgamation from 1350 tonnes of ore averaging about 27.4 grams per tonne (0.8 ounces per ton) ton achieved a recovery rate of only 15 per cent because the pulp formed a thick slimy mud that was impervious. It is hard to imagine how frustrating it must have been for the prospector who was given the exciting news by the assayer that his sample of apparently barren rock had given a good gold assay. After he crushed and panned more samples and still could not find any gold, the assayer kept insisting that he had discovered something valuable. Even after he had started mining and set up an amalgamation plant, there was still very little to show for it. According to Coope (1991), Mercur prospectors brought a legal action in Salt Lake City against an assayer for that very reason.

According to Palmer (1909), the first cyanide mill in the Western Hemisphere was built at the Mercur Mine and, for a time, it was the largest straight cyanide plant in the world. The recovery rate increased substantially after the cyanide mill was converted to the new MacArthur-Forrest cyanide process, becoming the first in the United States to use it commercially. During 1897-98, De Lamar built the 900 tonne-per-day Golden Gate mill, with Jackling serving as his construction and metallurgical engineer. Reputed to be the largest cyanide mill in North America at the time, it employed gravity feed and a flow sheet that involved roasting (when needed), fine grinding and cyanide. Three of the roasters were referred to as “Jackling type.” An AC electrical current was delivered over a 70-kilometre transmission line. This mill recovered about half of the estimated 2.9 million grams (921,000 ounces) that the camp produced between 1890 and 1912, at a recovery June/July 2010 | 77

HISTORY OF

economic geology

Geology of the Mercur Mine area (from Mako, 1999)

Generalized stratigraphy of the Mercur gold mine (from Mako, 1999)

rate of 76.7 per cent. If that rate is applied to the entire camp production, it suggests that the gold content of the ore mined during that period was about 37.3 million grams (1.2 million ounces). At its peak in 1890, the camp had a population of about 5,500, most of Italian and Chinese descent.

Production resumed when the official gold price was raised from $20.67 to $35.00 per troy ounce in February 1934, and ended when the government suspended gold mining during World War II. Another 5.9 million grams (190,000 ounces) were produced during this period.

The next phase of exploration was conducted from 1973 to 1975 by Getty Oil Company under an option from Gold Standard, Inc., which had consolidated the complicated claim ownership in the camp. In 1981, Getty began construction of an open pit mine and a 2,700 tonne-per-day carbonin-pulp mill complex with a targeted production rate of about 2.5 million grams (80,000 ounces) per year. After Texaco, Inc. acquired Getty in 1985, it sold Getty’s mining interests to Barrick Resources (USA) Inc. Barrick, which also had production experience on this type of deposit in Nevada, expanded the mill by 20 per cent, introduced dump leaching of lower grade oxide ore, and stockpiled higher grade, but refractory ore. In 1988, an 825 tonne-per-day autoclave was installed for pressure oxidation of the refractory ore, which was later enlarged about 15 per cent, along with the mill.

Mining ended in 1997 and the recovery plants closed in 1998. Total gold production from 1983 to1998 was about 46.5 million grams (1.49 million ounces).

In its 127-year history, more than 37.7 million tonnes of ore containing about 108.9 million grams (3.5 million ounces) of gold were mined in the Mercur gold camp, an average grade of approximately 2.9 grams per tonne (0.084 ounces per ton). About 81 million grams (2.6 million 78 | CIM Magazine | Vol. 5, No. 4

ounces) of gold (at a recovery rate of 74 per cent) and 36 million grams (1.16 million ounces) of silver were recovered, plus 3,470 flasks of mercury. Stripping ratios ranged from 2.0 at the Marion Hill pit to 6.1 at Sacramento, and averaged 3.6.

According to Hewitt (1968), the fineness of the gold (not to be confused with grain size) was 833. (Fineness is a measure of the gold content of the native gold, defined as the ratio of gold to gold+silver; pure gold = 1,000.)

Geology The Carlin Mine in Nevada, discovered in 1961, was the first place where this deposit model was recognized in the modern era. Many geologists use the name Carlin-type to refer to all sediment-hosted disseminated gold deposits, which is confusing because it is so site specific. Since then, more than 50 similar deposits have been found in Nevada and many of them have subtle but significant differences in host rocks, mineralization and structural control. The differences are quite evident at Mercur, which is why I prefer to use the more general name “Nevada-type” for this family of gold deposits.

They have also been called “no-see-um” deposits, referring to the fact that the gold flakes can only rarely be seen with the unaided eye. In fact, they are usually so fine that when they are released from the rock, by erosion or crushing, they float in water, cannot be collected in a gold pan, and do not accumulate in gold placers. For that reason, this family of gold deposits were not discovered by old-fashioned prospecting with a gold pan. In spite of the fine-grained, invisible appearance, ore grades in these deposits can exceed 34 grams per tonne (one ounce per tonne), which almost defies logic.

The intensive geological study received by the Mercur district has been well summarized by Mako (1999). Mining

HISTORY OF

economic geology showed that micron-sized gold is associated with arsenical pyrite, marcasite, barite, and arsenic and thallium minerals, which are disseminated throughout the altered host rock and younger veinlets. Three types of pyrite have been identified — euhedral, zoned and filigree; the latter variety contains the highest As, Tl and Au values. The favourable units generally have a background in the tens to hundreds of ppm Tl. Hewitt (1968) reported that the thallium grade of the deposits ranges from 0.023 to 0.059 per cent. At least eight rare thallium minerals have been recognized. The geochemically anomalous suite of associated elements includes Au, Ag, As, Hg, Sb and Tl. Alteration of the host rocks in various parts of the camp includes decalcification, silicification, argillization, carbon-flooding and oxidation.

The Mercur deposits are hosted by the 1,000-metrethick Upper Mississippian Great Blue Formation, which consists predominantly of carbonate lithologies that were deposited on a shallow, miogeoclinal shelf with intermittent periods of shoaling. The sedimentary sequence has been folded into the broad, northwesterly trending, doubly plunging Ophir anticline.

The key host for gold mineralization is called the Mercur Member, which is about 70 metres thick. It is distinguished by its high content of invertebrate fossils, primary permeability and porosity, and an elevated iron content (0.2 to 3.0 per cent, averaging 1.1 per cent). The Mercur member was further subdivided into four units, three of which are mineralized. The other is called Barren Limestone.

The lowest of the three mineralized units is the Magazine Sandstone Beds, usually 12 metres of calcareous sandstone, siltstone, and limestone. Much of the mineralization is present at the base in lenses of jasperoid called Silver Chert. The eight metre-thick middle member, Mercur Beds, is composed of fossiliferous grey limestone, silty limestone and calcareous siltstone. The fossil content is important for preserving porosity and permeability, which makes this the best host for high-grade gold mineralization in the camp. The Upper Beds unit is 24 to 36 metres thick and is similar in lithology to the Mercur Beds but without the fossil component, which makes it a poorer host rock.

Three Tertiary-age igneous rock units were intruded into the sedimentary strata within the Mercur district — the Porphyry Hill Quartz Monzonite, the Eagle Hill Rhyolite and the Golden Gate Breccia Rhyolite. The first two igneous units occur as dykes and sills, whereas the third has only been seen as clasts of rhyolite porphyry and igneous matrix in the Golden Gate breccia pipe. It is exposed in the Golden Gate and Marion Hill pits.

Three breccia bodies that occur near the gold deposits have been described as pipes, based on their geometry, textures and composition, and are probably Oligocene in age.

The largest, Golden Gate, was found last because it occurred in a recessive area that was covered by old mill tailings and the old town of Mercur. The “Ingersoll cut” within the pit contained almost 2.5 million grams (80,000 ounces)

of gold at an average grade of 1.6 grams per tonne (0.046 ounces per ton) within the breccia body. The breccia exhibits evidence of internal reworking and mixing and the margins display a distinctive brown colour. The clasts are angular to subrounded, range in size from very fine grains to large boulders, and are composed of a wide variety of all the units in the sedimentary sequence. The Sacramento breccia occurred in the pit of the same name. It contains highly altered angular clasts in a red, fine-grained silicified matrix. Other than erratic weak mineralization in the lower part, this breccia was unmineralized. The Kirk breccia, which was present in the Mercur Hill pit, was similar to the Sacramento breccia but without the hematite staining. Alteration was less intense and only erratic weak mineralization was noted.

Almost all the ore came from four open pits, which completely reworked the former underground mines. They were named (from south to north) Sacramento, Mercur Hill, Golden Gate and Marion Hill. A fifth pit, Rover, was insignificant. The first two pits partially overlap while the last two adjoin each other.

There has been speculation about how much of the favourable Magazine Sandstone and Mercur beds might have been eroded away. The topography of Mercur Canyon suggests that it could be as much as 136 million tonnes. If half of this was ore, another 193 million grams (6.2 million ounces) of gold may have been removed by erosion, in which case the original deposit could have contained nearly 300 million grams (10 million ounces). Moreover, it might never have been found because of cover rocks.

Acknowledgments As I was completing the previous series on porphyry deposits, it was Ken Krahulec of the Utah Geological Survey who made me aware that Mercur, which is located so close to Bingham Canyon, appears to be the first Nevada-type, sediment-hosted gold deposit to be mined anywhere. It seemed only common sense to discuss this deposit-type next while I was in the“neighbourhood.”Thank you, Ken. I would also like to thank Rob Carne for help in finding references and for reviewing an earlier draft. CIM

References Cathro. R.J. (2009a). Porphyry deposits (Part 2). Montreal: CIM Magazine, Vol. 4, No. 7, November, p. 88-90.

Cathro, R.J. (2009b). Porphyry deposits (Part 1). Montreal: CIM Magazine, Vol. 4, No. 6, September/October, p. 102-104.

Coope, J. Alan (1991). Carlin Trend exploration history: discovery of the Carlin deposit.

Reno: Nevada Bureau of Mines and Geology, Special Publication 13, p 5.

Hewitt, W.P. (1968). Western Utah, eastern and central Nevada. In J.S. Ridge (Ed.), Ore deposits of the United States, 1933-1967: the Graton-Sales volume. New York: The American Institute of Mining, Metallurgical, and Petroleum Engineers Inc, Vol. 1, p. 857-885.

Mako, D.A. (1999). A post-mining view of the Mercur gold district, Tooele County, Utah.

Reno: Geological Society of Nevada Special Publication 30, 44 p.

Palmer, Leroy A. (1909). Cyanidation at Mercur, Utah. In H. Foster Bain (Ed.), Recent cyanide practice (second edition), (1910). San Francisco: The Mining & Scientific Press, p. 256-262.

June/July 2010 | 79

HISTORICAL

metallurgy The beginnings of mineral processing research in Canada (Part 5)

By Fathi Habashi, Department of Mining, Metallurgical, and Materials Engineering, Laval University

Academic, industrial and government research When Université Laval was created in 1852, it comprised the four faculties of theology, medicine, law and arts. The humanities and sciences were taught under the arts faculty. At that time, engineering was not regarded as a subject suitable for a university whose primary mission was to advance the faith.

The first teacher of chemistry, mineralogy and elements of metallurgy in the Faculty of Arts was Thomas Sterry Hunt. A Yale University graduate, he was employed from 1847 to 1852 as a chemist-mineralogist at the newly founded Geological Survey of Canada in Montreal. He was hired by Laval University in 1856. In 1862, he taught chemistry at Morrin College in Quebec City, which was affiliated with McGill University in Montreal. In 1868, Hunt returned to the United States to become a professor of geology at the Massachusetts Institute of Technology. He served two terms as the president of the American Chemical Society.

The Hunt-Douglas Process In 1862, German chemist Max Schaffner found that copper oxide was soluble in a ferrous chloride solution, an observation that drew Hunt’s attention. Hunt contacted his friend James Douglas, a theologian-turned-medical-doctor, in Quebec City. He suggested that Douglas apply Schaffner’s discovery to treat the low-grade copper oxide ore at his family’s Harvey Hill Mine in Leeds Township, south of Quebec City.

Douglas tested the process at the mine and found it to be promising. Becoming deeply interested in mining and metallurgy, he abandoned theology and medicine. By 1869, Hunt and Douglas had developed a new hydrometallurgical process to treat copper ores and filed a Canadian patent for their process.

In 1870, Arthur Lewis, an English investor visited the Harvey Hill mine works and was impressed with what he saw. At the same time, Juan Stewart Jackson applied for a patent in Chile on behalf of Douglas. Jackson was the president of the Chilean Compañia de Minas de la Invernada, a limited liability corporation founded in Valparaiso in 1870. He arranged for Hunt and Douglas to visit Chile to apply their process at the Invernada, about 48 kilometres northwest of Santiago. Accordingly, Douglas arrived in Chile aboard the S.S. Panama on February 21, 1871. Hunt could not travel with him because of his engagements.

At the Invernada Mine, the leaching agent was prepared by treating a commercially available ferrous 80 | CIM Magazine | Vol. 5, No. 4

sulphate solution (copperas) with an excess of sodium chloride (salt) and crystallizing as much of the sodium sulphate formed as possible according to: FeSO4 + 2 NaCl → FeCl2 + Na2SO4

The leaching of copper oxide by ferrous chloride solution could be represented by: CuO + Fe2+ + H2O → Cu2+ + Fe(OH)2

The dissolving action was due to the acid generated by the hydrolytic action of the ferrous ion: Fe2+ + H2O → FeOH+ + H+ FeOH+ + H2O → Fe(OH)2 + H+ CuO + 2 H+ → Cu2+ + H2O

The ferrous hydroxide thus formed was known to be a gelatinous precipitate difficult to filter. The leaching action of ferrous chloride could have succeeded for copper oxide ore containing silicate gangue, but not for carbonates like limestone. Any carbonate present would compete with cupric oxide (CuO) and immediately react with the acid present, leading to the precipitation of ferrous hydroxide.

Thus, the reagent was lost and the process did not function. The Hunt-Douglas process was a failure because it was not based on sound chemistry. However, it represented the first attempt to use a hydrometallurgical process to leach ores in Canada.

Pyrometallurgical research Around the time of the development of the HuntDouglas hydrometallurgical process, a great deal of significant pyrometallurgical research was also being conducted.

One of the more important contributors to the advancement of pyrometallurgy was Alfred Stansfield, McGill University’s first professor of metallurgy. A graduate of England’s Royal School of Mines, Stansfield assisted William Roberts-Austen at the Royal Mint where he improved the design of the recording pyrometer. He joined the staff of the Royal School of Mines in 1898 and came to Canada in 1901. Among his notable contributions to the field were his publications, The Electric Furnace: its evolution, theory and practice (1907), The Commercial Feasibility of the Electric Smelting of Iron Ores in B.C. (1919), and The Electric Furnace for Iron and Steel (1923).

Around that time, William L. Goodwin and William Nicol, who had both studied at Heidelberg in Germany,

HISTORICAL

metallurgy also carried out important metallurgical research at Queen`s University in Kingston.

Not just researchers, but mentors too, played a critical role in the advancement of metallurgy. One such mentor was George Guess, a distinguished extractive metallurgist who headed the Department of Metallurgy at the University of Toronto. One of his students, Telfer E. Norman, had submitted a thesis that contained some impressive thermochemical calculations that described a new concept in the smelting of copper and nickel concentrates. Guess encouraged Norman to send a copy of the thesis to the editor of the Engineering and Mining Journal.

Fearing that the editor would reject his student’s submission only because he was an undergraduate student, Guess sent the paper out from his home address, without naming himself as a co-author. The paper was published in 1936 in the journal’s October-November issue under the title, “Autogenous Smelting of Copper Concentrates with Oxygen-Enriched Air.” Norman’s work thus preceded Finnish company Outokumpu’s 1947 development of flash smelting technology by more than a decade.

At the National Research Council, Lloyd M. Pidgeon, a 1929 graduate of McGill University, developed a process for producing magnesium metal using the reaction between calcined dolomite and ferrosilicon. An interested group of prominent Toronto mining men raised capital, enabling Pidgeon to establish a pilot plant. After a year and a half of encouraging results, commercial applications of the process seemed viable. This led to the formation of Dominion Magnesium, which Pidgeon joined in 1941 as a director of research. Because of the demand for magnesium during World War II, six magnesium plants were built throughout North America. Pidgeon, who also developed metallothermic technologies for the production of calcium and strontium, was appointed professor and head of the Department of Metallurgical Engineering at the University of Toronto, a post he held until his retirement in 1969.

In 1938, Gérard Letendre, another alumnus of the Royal School of Mines, established the first Department of Mining and Metallurgy at Laval University’s School of Mines in Quebec City. Some years later, André Hone

founded and chaired the Department of Metallurgy at Montreal’s École Polytechnique.

Roger Potvin, who joined Laval University in 1940 to teach electrometallurgy and corrosion, had been involved in research into the recovery of elemental sulphur from pyrite by chlorination. During World War II, he served as a consultant for the military research laboratory at Val Cartier in Quebec. In 1945, Potvin was sent by the Canadian Department of Reconstruction to help the Allied occupation forces’ investigations into the state and development of metallurgical technology in Germany. He examined the production of beryllium by the electrolysis of beryllium chloride, and the production of zirconium and titanium. His reports were published in the CIM Transactions in 1946. In addition, Potvin inspected light alloy casting works in southern Germany — the Metallgesellschaft Research Laboratory, the Vereinigte Deutsche Metallwerke company and the production of thorium and uranium. His findings were published as British Intelligence Objective Sub-Committee (BIOS) reports.

Between 1946 and 1950, Potvin and his colleague, Albert Cholette, a professor of chemical engineering at Laval, proposed an electric furnace process for the treatment of the iron ores of Quebec. The proposal did not receive the blessings of Premier Maurice Duplessis, who believed it would be more profitable for Quebec to ship the ore to the United States. Duplessis was supported by Gerard Letendre, who chaired Laval University’s Department of Mining and Metallurgy at that time. This difference fuelled an intra-faculty conflict that Cholette described in his book Le fer du Nouveau-Québec et la Sage de la Siderurgie (2000).

Another noteworthy researcher was Clarence S. Samis.

Born in Arcola, Saskatchewan, Samis was educated in Winnipeg and earned his doctorate from the University of London in 1937. He worked in the industry for few years before joining the University of British Columbia in 1945, where he conducted extensive pyro- and hydro-metallurgical research.

During this era, William-Henry Gauvin left his home in Paris to pursue his doctoral studies at McGill University.

Thomas Sterry Hunt (1826-1892)

William Nicol (1861-1924)

James Douglas (1837-1918)

William L. Goodwin (1856-1941)

Alfred Stansfield (1872-1944)

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HISTORICAL

metallurgy

Lloyd M. Pidgeon (1903–1999)

André Hone (1906-2001)

Louis S. Renzoni (1915-1979)

After earning his PhD in 1944, he worked for two years in the industry before returning to his alma mater as an associate professor of chemical engineering. He retained his industry connections, acting as consultant to the Pulp and Paper Research Institute of Canada. Eventually in 1957, he became the head of its Chemical Engineering Division.

Gauvin invented the atomized suspension technique, in which a high-temperature spray system pyrolizes (vaporizes) waste from pulp and paper processing. His work on thermal plasma jets, especially in metallurgical applications, is considered ground-breaking. In 1961, he founded the Noranda Research Centre in Montreal and went on to become its director of research and development. During his directorship, researchers at the Centre developed a new process for transforming copper concentrates directly to metallic copper in what became known as the Noranda Reactor. Serving on many national committees, Gauvin also helped shape Canadian national scientific policy.

Louis S. Renzoni, a contemporary of these pioneers, hailed from Copper Cliff, Ontario. A graduate of Queen’s University in Kingston, Renzoni experimented with the anodic dissolution of nickel sulphide anodes at the International Nickel Company. In 1957, the company industrialized his work at its refinery in Thompson, Manitoba.

The Turkish-born Talat Mehmet Salman earned a doctorate from McGill University in 1965. He went on to chair the mining department at McGill just before his demise in 1979. Salman’s principal research interest was the beneficiation of gold ores, a field to which he made substantial contributions.

Charles Cooper, who earned a PhD in chemistry from the University of British Columbia in 1949, joined Canadian Copper Refiners in Montreal East in 1953 as chief chemist. In 1962, he was appointed director of the Noranda Research Centre. From 1970 to 1975, as a project manager with the United Nations Development Program, he helped for the Chilean government to establish of a national mining and metallurgical research centre in Santiago. Returning to Canada in 1975, Cooper was appointed a professor of metallurgical engineering at Queen’s University.

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Charles Robb Masson (1922-1988)

Spyridon N. Flengas (1925-2004)

Alan R. Kay (1931-1998)

Cooper is especially known for the volumes on tellurium and selenium that he edited in 1971 and 1974, respectively. During his tenure at Queen’s University, he conducted research into solvent extraction and the ion exchange of precious metals. A founding member and editor of the Copper-Cobre Conferences, Cooper also edited the journal Hydrometallurgy.

Charles Robb Masson, a doctoral alumnus of the University of Aberdeen, came to Canada as post-doctoral fellow at National Research Council in Ottawa. In 1952, he moved to the Council’s Atlantic Research Laboratory in Halifax, Nova Scotia. Well known for his theories on silicate polymerization in slags, Masson helped advance the study of slags by organizing the first conference on the subject. Held in 1980 in Halifax, the conference was so successful that it continued to be held after his passing in 1988.

Spyridon N. Flengas, who was born in Athens, Greece, graduated from the University of Athens with a B.Sc. in chemistry and with a D.Sc. from the University of London.

He came to Canada as a post-doctoral fellow at the Mines Branch and then joined the faculty at the University of Toronto in1960, where he did extensive work on the electrochemistry of fused salts.

James M. Toguri, a 1959 doctoral graduate of the University of Toronto, held various post-doctoral felowships in the UK, Norway and the United States before returning to teach at his alma mater in 1967. He is highly regarded in the scientific community for his extensive research in pyrometallurgy. Toguri was also the first editor of the journal, Canadian Metallurgical Quarterly, a position he held for over 20 years.

Another important contributor to Canadian metallurgy was Alan Kay, a graduate from the University of Glasgow, who joined McMaster University in 1969. At McMaster, he did much to advance the field of the physical chemistry of steelmaking.

Thus, over the course of more than a century, the work of pioneering scientists has secured Canada’s reputation as a world leader in the field of extractive metallurgy. CIM

technical abstracts CANADIAN METALLURGICAL QUARTERLY

Development of a Chemical Model for the Solubility of Calcium Sulphate in Zinc Processing Solutions G. Azimi, V.G. Papangelakis, University of Toronto, Toronto, Ontario, and J.E. Dutrizac, CANMET-MMSL, Ottawa, Ontario

Dissolution of Low Iron Sphalerite in Ferric Sulphate-Sulphuric Acid Media J.E. Dutrizac, CANMET-MMSL, Ottawa, Ontario

Monitoring the Influence of Gelatin and Thiourea on Copper Electrodeposition Employing Electrochemical Noise Technique Fariba Safizadeh, Anne-Marie Lafront, Edward Ghali, Department of Mining, Metallurgy and Material Engineering, Laval University, Ste-Foy, Quebec, and Georges Houlachi, LTE, Hydro-Quebec, Shawinigan, Quebec

Gold and Silver Cyanidation from a Residue Produced by Leaching DeadRoasted Copper White Metal I. Wilkomirsky, Department of Metallurgical Engineering, University of Concepción, Chile, N. Rojas, Pedagogic and Technological University, Boyacá, Colombia, and E. Balladares, Department of Metallurgical Engineering, University of Concepción, Chile

ABSTRACT A new model capable of predicting the solubility of calcium sulphate solid phases in zinc sulphate processing solutions from 25 to 95°C was developed.

The model uses the Mixed Solvent Electrolyte model of the OLI systems software to calculate the activity coefficients of the electrolyte species. The model was tested using recently developed experimental measurements. It was shown to accurately predict the solubility behaviour of calcium sulphate in multi-component zinc processing solutions containing ZnSO4, H2SO4, MgSO4, MnSO4, Fe2(SO4)3, Na2SO4 and (NH4)2SO4. The model can also explain the complex effect of coexisting metal sulphates on the solubility of the CaSO4 phases.

ABSTRACT The dissolution of low iron sphalerite, nominally ZnS but also containing 0.08% Fe and trace amounts of Cd and Mn, in ferric sulphate-sulphuric acid media was investigated using closely sized fractions of crushed sphalerite crystals and sintered disks made from the crushed crystals. Linear kinetics are observed and the predominant reaction products are ZnSO4, FeSO4 and elemental sulphur. The leaching rate increases systematically with increasing temperature and the calculated apparent activation energy is 56 kJ/mol for the sized sphalerite and 54 kJ/mol for the sintered disks. The relatively high apparent activation energy suggests that the rate is chemically controlled, a conclusion supported by the insensitivity of the rate to the disk rotation speed.

ABSTRACT The copper electrodeposition from sulphuric acid electrolytes in the presence of thiourea and gelatin as additives was investigated using Electrochemical Noise (EN) and Linear Sweep Voltammetry (LSV) in conjunction with the scanning electron microscopy technique. This study was oriented to examine the utility of using EN technique to characterize the electrowinning process and the deposit structure morphology was compared to LSV, an electrochemical method generally used industrially. Both EN and LSV techniques were successful in revealing the effect of different concentrations of thiourea and gelatin on the copper electrodeposition process. In this study, LSV detected an excess of thiourea leading to porous deposit; while the EN analysis in the time domain (skewness and kurtosis parameters) detected the presence of nodules and has provided useful information concerning the morphology of the deposit closely related to the macroscopic and microscopic studies.

ABSTRACT The present work discusses the gold and silver recovery by cyanidation from a solid leach residue produced by a new alternative of processing copper matte or white metal. The leach residue contains mainly hematite, cupric ferrite, insolubles and precious metals. An increase in temperature increases the gold dissolution, while the opposite effect was found for silver. The low silver dissolution appears to be the result of the roasting step of the copper white metal. Although no direct evidence of a silver-iron ferrite or silver-copper double oxide was found in the residue, results indicate that metallic silver dissolves in the ferrite both by intergranular diffusion and Fick’s diffusion, with a diffusion coefficient of 5 x 10-4 sq.cm2/s at 800°C.

June/July 2010 | 83

Study of the Thermodynamic Properties of the Al-Mg Binary System Between 9731073 K by the EMF Method G.R. Karimi Aghdam and M. Soltanieh, Department of Materials and Metallurgical Engineering, Iran University of Science and Technology, Narmak, Tehran, Iran

On the Formation of Extruded Surface Segregation Layer in Aluminum Direct Chill Casting Process M.O. El-Bealy, Ain Shams University, Cairo, Egypt

Numerical Simulation of Steel Flow Through a One Strand Slab Tundish with Steel Flow Control Devices Adam Cwudzi´ nski, Department of Metals Extraction and Recirculation, Faculty of Materials Processing Technology and Applied Physics, Czestochowa University of Technology, Czestochowa

Hot Cracking Susceptibility of Twin Roll Cast Al-Mg Alloy Welds Süha Tirkes, Caner Batıgün, Welding Technology and NonDestructive Testing and Research/Application Center, Middle East Technical University, Ankara, Turkey, and Alpay Ankara, Department of Metallurgical and Materials Engineering, Middle East Technical University, Ankara, Turkey

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ABSTRACT The thermodynamic properties of an Al-Mg binary system with 0.07 to 12.10 at% Mg were determined at temperatures between 973-1073 K. The following Mg concentration cell was used: Mg (pure), MgCl2-CaCl2 (eutectic), Al-Mg (melt).

In this system, Mg shows negative deviation from Raoult’s law. Alloys between 0 to 6 at% Mg obey Henry’s law. The Henrian coefficient of Mg was 0.47, 0.52 and 0.53 at 973, 1023 and 1073 K, respectively. The EMF values were used for calculating the partial and integral Gibbs free energies, enthalpies, entropies, excess Gibbs free energies and Wagner’s first order interaction coefficient.

ABSTRACT The aim of this research work was to develop a mathematical model to study the formation of extruded surface segregation phenomenon during the early stages of solidification in an aluminum direct chill casting process. Some typical cases in conventional direct chill casting processes related to increase surface segregation and fluctuation in macrosegregation with distance from the ingot surface were simulated. Good agreement was found by previous measurements and simulated results. Model results were discussed to explain the effects of different thermal solidification factors and interdendritic strain on the extruded surface segregation layer phenomenon. The results show that this phenomenon is sensitive to alloy composition and forms in the gap between the ingot surface and mould wall. Also, the model results point out that this phenomenon appears as a direct effect of the extrusion mechanism of interdendritic solute liquid associated with the interdendritic strain distribution in the coherent region in the mushy zone.

ABSTRACT This paper presents the results of a computing simulation of steel flow in a one strand slab tundish. For verification of the mathematical model and results of the numerical simulation, experimental research during continuous steel casting process was conducted. The effect of the industrial experiment was characteristic of a change in chemical elements when steel grades were changed in the course of the casting sequence. The internal geometry of the considered object was changed by two types of flow control devices, i.e., subflux turbulence controller and gas permeable barrier. From these calculations of residence time distribution of steel curve (RTD) the influence of argon blowing and use of the subflux turbulence controller on steel flow in the tundish have been obtained.

ABSTRACT The hot cracking susceptibility of two different Al-Mg alloys during welding at various applied strains was investigated. At each strain value, the amount of hot cracking susceptibility increased with increasing magnesium content. Thermal analysis results verified that hot cracking susceptibility indeed can be related to the solidification range. As suggested in the solidification range approach, the results of the present study confirm that the extent of solidification and liquation cracking depend on the magnitude of solidification range and the strain imposed during welding. The fracture surfaces of liquation and solidification cracks were investigated with EDS. Liquation crack surfaces were found to have high Mg content whereas solidification crack surfaces revealed iron rich phases. A quench test was designed to observe the effect of mid-plane segregation zone. It was observed that high segregation at the mid-section of the alloy having higher magnesium can increase the liquation cracking susceptibility during welding since it decreases the solidus temperature of the intergranular liquid.

Characterization of Buffer Layers on Nibased Substrates for YBCO Superconductors Isil Birlik and Erdal Celik, Dokuz Eylul University, Department of Metallurgical and Materials Engineering, Buca, Izmir, Turkey

Novel Thermal Processing of Dual Phase Steels: II – Work Hardening and Fracture Mechanisms M. Westphal, Materials Science and Engineering, McMaster University, Hamilton, Ontario, J.R. McDermid, Mechanical Engineering, McMaster University, Hamilton, Ontario, J.D. Boyd, Mechanical and Materials Engineering, Queen’s University, Kingston, Ontario, and J.D. Embury, Materials Science and Engineering, McMaster University, Hamilton, Ontario

Estimation of Corrosion Rate of Mild Steel in Sea Water and Application of Genetic Algorithms to Find Minimum Corrosion Rate Subir Paul, Department of Metallurgical and Material Engineering, Jadavpur University, Kolkata, India

ABSTRACT Metal oxide buffer layers provide a continuous, smooth textured and chemically inert surface for growth of the YBCO (YBa2Cu3O7-x) film and prevent metal diffusion from the substrate into the superconductor. Textured, crack free and continuous buffer layers were obtained through the sol-gel technique. Prior to the coating process, solution characterization was performed by turbidimeter, pH meter, contact angle goniometer and rheometer. Heat treatment profiles were determined by using DTA-TG and FTIR. The coated layers were characterized by means of XRD, SEMEDS, AFM and a scratch tester. As a result, textured growth of CeO2, Eu2O3 and Gd2O3 thin films on textured Ni tapes by the sol-gel dip coating process were successfully performed.

ABSTRACT The volume fraction, scale and distribution of the non-ferritic phases (NFP) in the microstructure of a series of dual phase steels were varied by novel thermal processing. The effects of these microstructural modifications on uniaxial tensile properties are reported. By refining the scale of both the ferrite grains and the NFP particles, the fracture strain was increased significantly with minimal reduction in uniform strain. The fracture damage mechanisms are decohesion of NFP particles at 293 K (ductile failure) and cleavage micro-cracking of ferrite grains at 77 K (brittle failure). Recommendations are made for microstructural design of DP steels for specific applications.

ABSTRACT Life prediction of steel structure in marine environment is a challenging task for design and corrosion engineers for existing structures as well as new structures to be constructed. The major parameters influencing the rate of marine corrosion are salinity, sulphate, bicarbonates, pH and temperature and dissolved oxygen. These parameters have a wide range of variation, depending on geographical locations of the structure as well as various depths of seawater in which parts of the structures are submerged. In the present investigation, endeavours have been made to estimate the corrosion rate for a given geographical location in an ocean with any combinations of these variables, by performing few laboratory experiments. Genetic algorithms have been applied with a combination of five genes: chloride, sulphate, dissolved oxygen, pH and temperature to obtain the optimum combination of these five parameters that would bring down the corrosion rate of steel to a minimum.

Excerpts taken from abstracts in CMQ, Vol. 49, No. 1.

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June/July 2010 | 85

technical abstracts EXPLORATION AND MINING GEOLOGY

Geological and Hydrogeological Conditions for Forming Uranium Occurrences in the Froqlos–Jabal Abou Rabah Region, Palmyrides, Syria J. Asfahani, R. Al-Hent and M. Aissa, Geology Department, Atomic Energy Commission, Damascus, Syria

Alkali/Alumina Molar Ratio Trends in Altered Granitoid Rocks Hosting Porphyry and Related Deposits J.F. Davies and R.E. Whitehead, Department of Earth Sciences, Laurentian University, Sudbury, Ontario

Assessing the Returns to Copper Exploration, 1989–2008 Michael D. Doggett, HanOcci Mining Advisors, Vancouver, British Columbia, and Richard A. Leveille, Freeport McMoRan Exploration, Phoenix, Arizona, USA

Base Metal Sulfide Mineralization in Lower Carboniferous Strata, Northwest Ireland Christopher J. Persellin, Chesapeake Energy Corporation, Oklahoma City, Oklahoma, USA, Jay M. Gregg, Boone Pickens School of Geology, Oklahoma State University, Stillwater, Oklahoma, USA, Kevin L. Shelton, Department of Geological Sciences, University of Missouri, Columbia, Missouri, USA, Ian D. Somerville, School of Geological Sciences, University College Dublin, Belfield, Dublin, Ireland, and Eliot A. Atekwana, Boone Pickens School of Geology, Oklahoma State University, Stillwater, Oklahoma, USA

ABSTRACT This paper focuses on determining the favourable geological and hydrogeological conditions for forming uranium occurrences in Froqlos–Jabal Abou Rabah region, Palmyrides, Syria. Eighty rock samples from this area have been analyzed by spectrometric gamma-ray technique in order to determine the radioactive concentrations of eU and eTh, and %K. Uranium concentrations in shallow and deep groundwaters have also been determined. High uranium concentrations have been registered due to the presence of phosphatic outcrops in the study region. The uranium migration trends and its remobilization have been analyzed through the analysis of the behaviour of eU, eTh, and their ratio. The role of the groundwater movement in transportation and re-deposition of uranium mineralization is discussed.

ABSTRACT Alkali/alumina and MgO/alumina molar ratio plots graphically portray both chemical and mineralogical changes accompanying potassic, phyllic, argillic, chloritic, and alunitic alteration of quartz monzonites and granodiorites hosting porphyry (as well as lode and greisen) ore deposits. The molar ratio plots can be used to identify different types of alteration. In most cases, the identification based on molar ratios coincides with petrographic data. In those instances where the molar ratio and petrographic identifications do not agree, the mineralogy may need to be re-examined. Hydrothermal alteration studies using trace elements could benefit from the application of complementary alkali/alumina molar ratio plots.

ABSTRACT Economic returns for the copper industry have been assessed by building cash flow models for each of the 100 new mines brought into production over the past 20 years. Ninety-one of the 100 new mines returned the assumed 8% cost of capital and generated a positive net present value (NPV) at the development decision point.

The returns to exploration were measured by deducting the cost of exploration per deposit from the returns to development per deposit. Overall the copper business has provided positive returns to exploration. The returns to development and exploration are shown to be highly sensitive to the cost of capital and metal price assumptions. With respect to deposit type, porphyry deposits are both larger (NPV) and exhibit lower profitability (IRR) than the non-porphyry deposits.

ABSTRACT Zn-Pb sulfide mineralization at Abbeytown Mine and Twigspark Quarry comprise the only known carbonate-hosted base-metal sulfide deposits in the Sligo Syncline, northwest Ireland. Limestone sedimentation occurred uniformly throughout the region during the lower Carboniferous (Mississippian) as observed by field relationships and lithofacies; however, petrographic and stable isotope evidence indicate that host rock dolomitization occurred under different conditions at localities to the west and east of the Ox Mountains Inlier, suggesting significant uplift and geologic isolation of these areas prior to dolomitization. Localized fluid flow systems are thought to be responsible for sulfide mineralization and associated epigenetic carbonate cements.

West of the Ox Mountains Inlier at Abbeytown, evidence of three geochemically distinct fluids are observed. The source of the higher-salinity fluid is likely seawater evaporated to near the point of halite precipitation. Data from base-metal sulfide prospects in northwest Ireland indicate no connection with the regionally extensive flow system thought to be responsible for Zn-Pb deposits throughout the Irish Midlands.

Excerpts taken from abstracts in EMG, Vol. 19, Nos. 1 and 2.

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

A time-value framework for reporting mineral assets E.J. Sides, AMEC, London, United Kingdom

ABSTRACT In this paper, the argument is put forth that the codes used for public reporting of mineral resources and mineral reserves have some significant limitations with regard to the information provided to investors on the short- to medium-term value of mining properties. A time-value framework for reporting mineral assets is proposed in order to overcome these limitations. The potential benefits of this system are discussed, including the ability to incorporate factors directly into the magnitude of the reported mineral assets. The proposed framework would assist in the standardization of mineral assets reporting in such a manner that they could eventually be more readily included in financial statements.

RÉSUMÉ Dans cet article, il est discuté que les codes utilisés pour la divulgation publique des ressources minérales et des réserves minérales ont d’importantes limitations en ce qui concerne l’information fournie aux investisseurs sur la valeur des propriétés minières à court et à moyen termes. Un cadre valeur-temps pour divulguer la valeur des actifs minéraux est proposé dans le but de surmonter ces limitations. Les avantages potentiels de ce système sont discutés tels que les temps de demande de permis et de construction, directement dans l’ampleur des actifs minéraux divulgués.

Le cadre proposé aiderait à normaliser la divulgation des actifs minéraux de sorte qu’ils pourraient éventuellement être plus facilement inclus dans les états financiers.

Bulk sampling of mineral projects using a sample tower: Lessons from the field H. Thalenhorst, Strathcona Mineral Services Limited, Ontario, D. Dumka, Comaplex Minerals Corp., Alberta

ABSTRACT For an advanced mineral exploration project that has a “nugget” issue making the assessment of the deposit grade difficult, a bulk sampling program using a sample tower can provide information that is otherwise not obtainable prior to actual production. This paper presents a practical bulk sampling and sample preparation protocol, lists design features for the sample tower, examines the sampling errors that will be encountered, provides information on quality control procedures, and looks at the costs and benefits of such a program, based on the experience of undertaking bulk sampling programs during the period of 1985 to 2008.

RÉSUMÉ Au stage d’exploration avancée, il peut être difficile d’évaluer la teneur d’un gisement minéral lorsque le projet comporte un effet « pépite »; un programme d’échantillonnage en vrac utilisant une tour de division des échantillons peut fournir de l’information qui autrement ne serait pas disponible avant la véritable production. Cet article présente un protocole pratique d’échantillonnage en vrac et de préparation d’échantillons; il liste les caractéristiques de conception de la tour de division des échantillons, analyse les erreurs d’échantillonnage qui seront rencontrées, fournit de l’information sur les procédures de contrôle de la qualité et examine les coûts et les avantages d’un tel programme, basé sur l’expérience découlant de programmes d’échantillonnage en vrac entrepris entre les années 1985 et 2008.

Mineralogical characterization and concentration of Everett deposit ilmenite ore S. Pedler and T.A. Utigard, University of Toronto, Ontario

ABSTRACT Ilmenite from the Everett deposit in Quebec was characterized both chemically and mineralogically. The sample investigated contained 40% Fe2O3, 21% TiO2 and 21% SiO2. The ilmenite grains contained about 20 to 25% hematite intergrown blades, with widths ranging from 2 to 30 µm. Crushing the sample to less than 0.85 mm led to significant liberation of the ilmenite from the gangue minerals. Gravity separation followed by magnetic separation of this size fraction led to a TiO2 concentrate grading of about 30% TiO2, with a recovery of 94%.

June/July 2010 | 87

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

RÉSUMÉ De l’ilménite du gisement Everett au Québec a été caractérisée chimiquement et minéralogiquement. L’échantillon analysé contenait 40 % Fe2O3, 21 % TiO2 et 21 % SiO2. Les grains d’ilménite contenaient de 20 à 25 % de lamelles d’hématite imbriquées dont les largeurs variaient de 2 à 30 µm. Le broyage de l’échantillon à moins de 0,85 mm a permis de très bien libérer l’ilménite des minéraux de la gangue.

Une séparation gravimétrique suivie d’une séparation magnétique de cette fraction a donné un concentré dont la teneur était d’environ 30 % TiO2, avec un taux de récupération de 94 %.

Innovative dragline monitoring systems and technologies J.F. Vynne, Thunderbird Mining Systems, Washington, USA

ABSTRACT This paper examines several of the systems and processes that have been developed over the past few years and are now being utilized by major mining companies on draglines in North America, Australia and South Africa. These technologies include production monitors and reporting systems, GPS navigation systems, structural integrity monitoring systems, structural analysis studies to increase the dragline rated suspended loads (RSLs) and inspection and response strategies. The use of these technologies provides significant increases in dragline production and reduces maintenance costs, downtime and the chance of a catastrophic failure.

RÉSUMÉ Cet article analyse plusieurs systèmes et processus qui ont été développés au cours des dernières années et qui sont maintenant utilisés par les grandes compagnies minières sur les pelles à benne traînante en Amérique du Nord, en Australie et en Afrique du Sud. Ces technologies comprennent des systèmes de suivi de la production et de production de rapports, des équipements de radionavigation GPS, des systèmes de suivi de l’intégrité structurale et des analyses structurales afin d’augmenter les charges suspendues nominales des pelles à benne traînante et des stratégies d’inspection et de réaction. L’utilisation de ces technologies augmente significativement la production de la pelle à benne traînante et diminue les coûts d’entretien, les temps d’arrêt et le risque d‘une défaillance catastrophique.

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voices from industry

Making the right innovative technology connections

By Tim Skinner, president, SMART Systems Group, co-chair, SMART Standards Technology Committee, past chair, CIM Society for Innovative Mining Technology, and chair, CIM IT Steering Committee

nnovation is not a one-time event that occurs like a bolt of lightning from the sky — it is a constant evolution of ideas and insights that builds on previous work and capability to deliver incremental performance. There are times when a technology will act as a catalyst to stimulate a wave of innovation.

Wireless networking applied to surface mining is such a technology.

Wireless networking is a strategic enabling technology for surface mining, as unlimited and highcapacity connectivity will instigate new automation opportunities.

These opportunities will improve the performance of individual equipment and operators and, more importantly, will enhance the performance of the entire mine through optimization of all its operating components. Greater benefits are gained from improving the total system versus the individual pieces.

The benefit of networking is the ease and unrestricted ability it brings to maximize the connection between as many components as possible. It is this “connectivity” that is strategic. The obvious example is the World Wide Web. The strategic advantage and benefit of the Internet is its ability to connect to “anyone, anywhere.” This provides unlimited opportunities to all but eliminate the disadvantages of time and distance and enhances the delivery of business and personal capability, products, services, knowledge, etc. This “technology” has fundamentally changed the way business is done, e.g. banking, integrated manufacturing, telecommunications and retail.

One sector that has lagged behind is our mining industry. Both mine operators, OEMs (original equeptment manufacturers) and some OTMs (original technology manufacturers) have been resistant to open up and drive the development and implementation of open technology and networking standards in the operating mine. The industry has been victim to proprietary, expensive and closed technology solutions by OEMs and OTMs and, to a great extent, the mine operator has passively allowed this approach.

This largely occurred due to lack of operational knowledge and understanding of the benefits of automation and networking. It is not a shortage in funding, as mining companies will pour millions of dollars into ERP (enterprise resource planning) solutions that do not

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provide any competitive strategic advantage. In fact, the industry has appeared to have gone backwards — as an example, activity-based costing, or knowledge-based costing, seems to have disappeared. When you are in a commodity-based business, the competitive advantage is gained by being able to “put together” the product value chain better than your competition. Operating excellence is the competitive advantage, which is where we need to improve, and automated technology and networking is a key enabler.

The times they are a-changin’ The Surface Mining Association for Research and Technology (SMART) has, for a number of years, been driving the need and establishment of intelligent technology and networking standards for mobile mining equipment.

The purpose of the initiative is to establish a set of standards that will enable easy and low-cost delivery and operation of automated applications for mobile mining equipment and, even more importantly, for the integration, optimization and performance of the whole mine.

There is a step change opportunity to improve the entire mining performance through effective integration and total systems thinking and management.

A significant step forward was accomplished in Vancouver on May 8, 2010, just prior to the CIM Conference and Exhibition. A SMART industry meeting was held, sponsored by Teck Resources Limited, with a representative committee of mine operators, and the major OEMs and OTMs. For the first time, universal alignment, in principal, was achieved regarding the acceptance and application of common “off-the-shelf” industry standards for wireless networking and onboard data access and integration. This is a significant accomplishment and a move forward for the industry. The OEMs and OTMs must be complimented for managing their competitive spirits and recognizing the need and the benefits to the industry, and themselves. This evolution to fundamental “open” technology infrastructure will provide the catapult for the next level of mining innovation.

The final, and most important, success factor is the openness, commitment and support of the leadership of the mining companies to standards and integrated systems thinking, as they are the only ones that can make it happen. The future is going to bring a wave of new technology and automation innovation that will ride on highspeed wireless networking and drive a higher level of operating excellence. It is up to us to catch that wave. CIM