CIM Magazine June/July 2011 by CIM-ICM Publications

Your proven partner for mining solutions

As one of the world’s leading suppliers to the mining industry, ABB understands your challenges. ABB can help you transport and process your mine output more productively and safely, while using less energy. ABB’s comprehensive offering for the mining and mineral processing industry includes: plant & mine electrification, control & drive systems, mine hoists, electric trucks, gearless mill drives, substations, reliability services and safety systems. Our solutions include our in-depth applications expertise, delivered stand alone or turnkey and fully supported by a global network of best in class services. Learn why ABB is the mining industry’s partner of choice. www.abb.com/mining

ABB Inc. Phone: 514-332-5350

Power and productivity for a better world™

Cat Ca a MineStar System at S ®

D NE DEFINE DEFIN N YOUR O R MINE MIN M

Introducing Cat® MineStarTM System: the industry’s broadest suite of mine operations and mobile equipment management technologies configurable to your operation’s needs. It’s capability sets—Fleet, Terrain, Detect, Health and Command—let you manage everything from fleet assignment and condition monitoring to remote and autonomous control. By integrating products, processes and people like never before, you can achieve eve maximum productivityy,, efficiency e and safety—today and for generations to come. DEFINE YOUR MINE. To To learn le more about Cat MineStar System, contact your Cat dealer or visit us online at cat.com/miningtechnology

© 2011 Caterpillar. All Rights Reserved. Printed in USA. A. CA ATT, CA ATERPILLAR, TERPILLAR, their respective logos, “Caterpillar “C Yellow” and the “Power Edge” trade dress, as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission.

CONTENTS|CONTENU CIM MAGAZINE | JUNE/JULY 2011 | JUIN/JUILLET 2011

NEWS 13

Plan Nord paves way for development Mining community lauds the Quebec government’s $80 billion development plan for the North by C. Baldwin

Exporting the Canadian advantage CSR initiatives in Africa should leverage Canadian cultural diversity, says consultant by P. Caulfield

Resurgent B.C. mining sector posts remarkable returns Mining industry rebounds in 2010, posting near-record revenues by P. Caulfield

Bridging the gaps Governance and transparency are key issues at forum on mining investment in Africa by P. Braul

13 UPFRONT 22

Making it right when things go wrong Resolving disputes requires having the proper grievance mechanism in place by V. Heffernan

Pulling out the stops Quadra FNX’s mill upgrade is a triumph of collaboration and technology by A. Lopez-Pacheco

A long-lived pioneer Information systems specialist Tim Skinner discusses the strengths of a revitalized industry – and its weaknesses by R. Bergen

69 4 | CIM Magazine | Vol. 6, No. 4

COMMODITY FOCUS 44

The barometer of industry Demand for copper is expected to maintain its momentum as the emerging nations ramp up development by C. Baldwin

MINE CLOSURE 46

Re-defining sustainability Pit lakes pose a challenge for remediation efforts but there have been advances by C. McCullough

COLUMNS 48 50 52 54 56 58 60 63 82

FEATURE MINING MORE, MINING SAFELY EXPLOITER DAVANTAGE, EN TOUTE SÉCURITÉ 29

Exploring the limits New challenges in extraction are driving suppliers to find new equipment and safety solutions by E. Moore

L’exploration à la limite de la technologie Les nouveaux défis en extraction poussent les fournisseurs à trouver de nouveaux équipements et des solutions de sécurité novatrices

Supply Side by J. Baird MAC Economic Commentary by P. Stothart Eye on Business by W. Duvall Innovation by T. Hynes HR Outlook by L. Forcellini Metals Monitor by staff of Metals Economics Group Standards by R. Holland, C. Waldie, J. Whyte and L. Arsenault Mining Lore by C. Baldwin Voices from Industry by R. Dimitrakopoulos

CIM NEWS 65

Seeing is believing Teachers tour helps educators

Students take charge McGill University students

CMMF scholarships awarded Three second-year

understand the importance of mining by H.B. George successfully launch a new CIM chapter by M. Eisner technical college/CEGEP students receive McIntosh Engineering Scholarships by C. Baldwin

FEATURED PROJECT PROJET EN VEDETTE 38 42

Present perfect for past producer The Copper Mountain Mine site in southwestern

HISTORY

B.C. has a rich history and a bright future by C. Baldwin

Un moment parfait pour un ancien producteur Le site de la mine Copper Mountain dans le sud-ouest de la C.-B. a un historique riche et un avenir prometteur.

The foundations of modern economic geology (Part 4) by R. J. Cathro Social problems in the mining industry – a historical essay (Part 4) by F. Habashi

TECHNICAL SECTION 80

CIM Journal

IN EVERY ISSUE 6 8 10 51, 59 66 68 81

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

editor’s letter An energized community

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

vidence of the robustness of the mining and minerals industry was palpable at the recent CIM Conference & Exhibition in Montreal this past May. From the bustling floor of the largest trade show in CIM’s history to the record-breaking contingent of delegates attending packed rooms at an eight-stream technical program, it was apparent that individuals and organizations were keen on acquiring and sharing the best technologies, techniques, processes and practices the industry has to offer. And, a greater number of those attending came from international mining jurisdictions in search of the highly coveted expertise and products that Canada has to offer. Although the topics covered over the course of the three-day event were extremely diverse, at their centre they all turned on the critical challenge for mining in the 21st century: how do we mine more, with greater efficiency and safety, and with the utmost regard for social and environmental responsibility? This represents a tall order, to be sure, but one that the Canadian mining industry is equipped to meet, as you will see throughout the editorial in this issue. In the feature story “Exploring the Limits,” regular CIM Magazine contributor Eavan Moore looks at how operators and suppliers are collaborating to access and extract challenging deposits safely and efficiently. From confronting heat and rockburst issues at the 2,800-metre-deep shaft at Xstrata Copper’s Kidd Mine to accessing ore bodies on the ocean floor, ingenuity and partnership are advancing the frontiers of mining. Copper shines brightly this issue – as the latest installment of the recently minted commodity focus, as well as the impetus behind the Copper Mountain Mine, which we feature in our mine profile. Be sure to check out editor Ryan Bergen’s Q&A with Tim Skinner. The information systems specialist throws down a challenge to mine operators: take ownership of your technology and the critical data generated by it. On a final note, I would like to extend a hearty welcome to our new CIM president, Chuck Edwards. Chuck was instrumental in the conception and realization of the peer-reviewed CIM Journal, introduced last year. We look forward to him bringing that same tenacity to CIM towards the exchange of high-quality technical expertise, furthering CIM’s mandate as a community for leading expertise.

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

Andrea Nichiporuk, anichiporuk@cim.org Technical Editor Joan Tomiuk, jtomiuk@cim.org Publisher CIM Contributors Luc Arsenault, Jon Baird, Correy Baldwin, Louise Blais-Leroux, Peter Braul, R.J. Cathro, Peter Caulfield, Roussos Dimitrakopoulos, William Duvall, Marlene Eisner, Lindsay Forcellini, Hartley Butler George, Fathi Habashi, Virginia Heffernan, Robert Holland, Tom Hynes, Michel Laliberté, Alexandra Lopez-Pacheco, Clint McCullough, Eavan Moore, Staff of the Metals Economics Group, Paul Stothart, Craig Waldie, Jim Whyte Published 8 times a year by CIM 1250 – 3500 de Maisonneuve Blvd. West Westmount, QC, H3Z 3C1 Tel.: 514.939.2710; Fax: 514.939.2714 www.cim.org; Email: magazine@cim.org Subscriptions Included in CIM membership ($150.00); Non-members (Canada), $168.00/yr (GST included; Quebec residents add $12.60 PST; NB, NF and NS residents add $20.80 HST); U.S. and other countries, US$180.00/yr; Single copies, $25.00. Advertising Sales Dovetail Communications Inc. 30 East Beaver Creek Rd., Ste. 202 Richmond Hill, Ontario L4B 1J2 Tel.: 905.886.6640; Fax: 905.886.6615 www.dvtail.com National Account Executives 905.886.6641 Janet Jeffery, jjeffery@dvtail.com, ext. 329 Neal Young, nyoung@dvtail.com, ext. 325

This month’s cover A welder at work at the Copper Mountain Mine, profiled on page 38. Soudeur travaillant à la mine Copper Mountain, page 42.

Angela Hamlyn, Editor-in-chief

Keep the mail coming! editor

@cim.org

Layout and design by Clò Communications. Copyright©2011. All rights reserved. ISSN 1718-4177. Publications Mail No. 09786. Postage paid at CPA Saint-Laurent, QC. Dépôt légal: Bibliothèque nationale du Québec. The Institute, as a body, is not responsible for statements made or opinions advanced either in articles or in any discussion appearing in its publications.

Printed in Canada 6 | CIM Magazine | Vol. 6, No. 4

Mining Equipment

We improve lives!

Mining

a better future

Worldwide today 1.5 billion people do not have access to electricity. The need for coal-based energy keeps growing. We respond with highly productive coal mining equipment. Bucyrus. Delivering first-class technology solutions for a brighter future.

We are celebrating our 130th year in business! 130 Years of Reliability at Work. 130 Years of Lifetime Partnerships. And, 130 Years of Commitment as demonstrated by our people who strive to make â&#x20AC;&#x153;The Bucyrus Differenceâ&#x20AC;? for our customers each and every day.

www.bucyrus.com

president’s notes The adventure continues I am just back home after attending the CIM Conference & Exhibition in Montreal. We all owe a word of thanks and hearty congratulations to chair Martin Poirier and his dedicated organizing committee, all session chairs and speakers, the many exhibiting firms and delegates, and our steadfast CIM national office staff for pulling off this stupendous event. When a conference goes as smooth as silk, as Montreal 2011 did, the huge and sustained effort to make it happen is not apparent to most attendees. This does not happen by accident, so we all should pause and appreciate the perseverance and professionalism that makes these events seem so effortless and fun for us. The record of 1,523 delegates was impressive. However, to my mind, even more impressive was the confident, upbeat mood at the conference. This bodes well for the future of CIM.

At the same time, our industry’s current shortage of skilled, dedicated workers is an enormous challenge. It affects all aspects of the mining, minerals, metals and materials industry that CIM serves – including academia, engineering, construction, operations and finance. This is a worry not just for those of us working in our industry, but for society as a whole, because our products are, and always have been, the foundation of our civilization, helping house, feed, clothe, heat, move and energize humankind. For over six years, CIM has addressed this issue through M4S, our educational show on mining, minerals, metals and materials for society. CIM is ramping up this effort with two new initiatives. We have a big push underway to foster and nurture CIM student chapters at all colleges and universities across Canada teaching the skills and knowledge our industry needs. And we are rolling out the CIM Leadership Development Program to ensure that our industry is defined by leadership excellence in addition to technical excellence. I am truly honoured to begin serving as CIM president and excited about the future that beckons for our Institute. The most successful organizations imagine the future they want, and then make it happen. I hope you will join the CIM adventure into our future.

Chuck Edwards CIM President

L’aventure se poursuit Je reviens tout juste du Congrès et Salon commercial de l’ICM de Montréal. Nous devons tous une fière chandelle et de sincères félicitations à Martin Poirier ainsi qu’aux membres dévoués du comité organisateur qu’il préside, à tous les présidents et conférenciers de séances plénières, aux nombreuses entreprises participantes et aux délégués, et enfin au fidèle personnel de bureau de l’ICM. C’est à chacun d’entre eux que nous devons la tenue de cet événement remarquable. La plupart des participants n’ont pas idée de l’intensité ni de la quantité des efforts nécessaires à l’organisation d’un congrès aussi impeccable que celui de Montréal 2011. Ce n’est pas le fruit du hasard. Voilà pourquoi nous devrions tous prendre le temps d’apprécier la persévérance et le professionnalisme de ces gens, qui rendent la participation à ces événements aussi simple et agréable. Le nombre de participants a atteint un niveau record, soit 1 523 délégués. Impressionnant. Cependant, ce que j’ai trouvé le plus impressionnant, c’était l’ambiance résolument optimiste du congrès. Cela augure bien pour l’avenir de l’ICM. En revanche, la pénurie de personnes motivées et compétentes dans notre industrie constitue un défi de taille. Cela a un incidence sur tous les aspects de l’industrie des mines, des minéraux, des métaux et des matériaux servie par l’ICM – y compris les milieux universitaire, de l’ingénierie et de la construction, de l’exploitation et de la finance. C’est une préoccupation non seulement pour ceux d’entre nous qui travaillent

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

pour l’industrie, mais aussi pour la société dans son ensemble, parce que nos produits sont, et ont toujours été, la fondation même de notre civilisation, ceux-ci contribuant à loger, à nourrir, à vêtir, à chauffer, à mouvoir et à fournir de l’énergie à l’humanité. Depuis plus de six ans, l’ICM s’est penché sur cet enjeu par l’intermédiaire de M4S, notre salon éducatif sur les mines, les minéraux, les métaux et les matériaux pour la société. L’ICM ajoute deux nouvelles initiatives à cet effort. Nous avons lancé une vaste offensive en vue de promouvoir les associations étudiantes affiliées à l’ICM dans tous les collèges et universités partout au Canada qui dispensent les compétences et les connaissances dont notre industrie a besoin. Nous mettons en œuvre le programme de perfectionnement du leadership de l’ICM pour nous assurer que notre industrie est synonyme d’excellence en leadership, mais aussi d’excellence technique. Je suis très fier d’entreprendre mon mandat à titre de président de l’ICM et enthousiaste face à l’avenir qui s’annonce pour l’ICM. Les organisations les plus dynamiques commencent par imaginer l’avenir qu’elles souhaitent, puis prennent les moyens pour y parvenir. J’espère que vous prendrez part à l’aventure de l’ICM et partagerez notre avenir.

Chuck Edwards Président de l’ICM

We Protect Lives

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

Anchoring Products

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

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

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

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

!RVIN !VENUE s Stoney Creek, ON L8E 5P1 s Phone 905 643 1166 s Fax 905 643 1695 Email sales.canada@minovaint.com s Website www.MinovaCanada.com

Minova Canada

A member of the Orica Group

letters Barro Alto – proven producer An article appearing in the recent May 2011 issue of CIM Magazine celebrated the successful completion of the Barro Alto project in Brazil for Anglo American under the EPCM direction of SNC-Lavalin. Unfortunately, the accompanying site photo was out of date and perhaps inappropriate as a visual indication of the magnitude and importance of this ambitious undertaking that has now entered into actual production during a planned ramp-up period.

While final commissioning activities are still ongoing on Line 2, the Line 1 RK-FE process is now in early operation, and ferrous nickel product is being packaged and commercialized by Anglo American at this time. The photos below are representative of the completed Barro Alto facilities. CIM

Project site aerial overview, January 2011

Barro Alto project first metal tap on Line 1, March 30, 2011

Ryan Bergen, section editor, CIM Magazine

YOU’RE PROUD OF YOUR SKILLS AND KNOW-HOW. You want to work where you can be proud of your employer too. At Suncor Energy, we aim to earn your respect by providing you with the tools and support that enable you to do quality work.

Ready to be proud of your workplace?

Put yourself in our picture. When you join Suncor, you enter a working environment where how you get the job done is as important as the goals you achieve. You’ll be part of a company that’s guided by strong values and beliefs; that demands a high standard for safety, integrity, responsibility and always strives to exceed expectations – real reasons to take pride in saying, “I work for Suncor.”

Put yourself in our picture by applying at www.suncor.com/careers ©

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

news Plan Nord paves way for development Ambitious 25-year plan will enhance northern region

Billed as an economic, social and environmental development plan that will span a generation, the Quebec government’s Plan Nord is giving its mining industry and northern communities a welcome boost. Northern Quebec, which covers 72 per cent of the province yet accounts for less than two per cent of its population, is sorely lacking in infrastructure, a frustration both to companies hoping to access the region’s plentiful resources and those living in its communities. With Plan Nord, the Quebec government intends to change that. The plan involves $80 bil- Quebec Premier Jean Charest spoke at ArcelorMittal’s mine expansion announcement at the Mont-Wright mining complex. lion in public and private investment in infrastructure – for roads, hydroelectricity and comtransport infrastructure, manpower limited,” explained Manson. “If you munications – and in community training and so on. This is what Plan have a two-lane gravel highway, you development, including education, Nord provides us.” have much more flexibility in how you housing and health services. The idea “This is a fantastic example of a build and operate your project.” is to invigorate the North and its very balanced approach to develop“The road allows us now to raise communities through sustainable ecoment,” agreed Matt Manson, CEO of the kind of serious investment nomic development. Stornoway Diamond Corporation, required to build our project and to get They are already seeing results. On whose Renard project, now in the feastarted with that work,” Manson May 20, ArcelorMittal, the world’s sibility stage, has the potential to be added. “It’s a catalyst that allows us to largest steel producer, announced a Quebec’s first diamond mine. “On one make a substantive investment in the construction of our mine.” $2.1 billion expansion of its iron ore hand, the government is making submine at Mont-Wright. The expansion stantial investment in infrastructure Northern lights is expected to increase annual pro- development, and on the other hand, Xstrata’s Raglan nickel mine in duction of iron ore concentrates from they’re doing all of the appropriate 14 million tonnes to 24 million biodiversity conservation and social Nunavik may be too remote to make use of road expansions, said Francis tonnes by 2013. As well, the invest- development that makes development Beauvais, Raglan’s director of commument is expected to create 8,000 jobs genuinely sustainable.” nications, but the announcement for during the construction phase and Open road for development hydroelectricity in the area under Plan 900 once completed. Stornoway Diamond will benefit Nord is welcome news. “Like all com“We need to have good local condimunities in the North, we are using tions to be able to proceed with such from the Route 167 extension, part of the $821 million investment in roads diesel power generators,” he explained. an important investment,” said Éric that is part of the Plan’s first phase. “If “The cost of fuel energy is very expenTétrault, director of communications you’re building a mine on seasonal sive. We’ve made several efforts to get for ArcelorMittal Canada, “one of connected to a grid, but since we’re so which is having a strong partner winter roads, how you operate and the isolated, it was almost impossible.” in building communities, housing, scale of your operation is somewhat June/July 2011 | 13

Courtesy of ArcelorMittal

By Correy Baldwin

news “Hydro is good news not just for us,” added Beauvais, “but also for our Inuit partners in the communities that are using diesel fuel to generate electricity. Just imagine what hydro electricity could do for the communities. Once you have hydroelectricity, it is an open door for development.”

Housing and employment training Metanor Resources is accessing yet another aspect of Plan Nord for its Bachelor Lake gold project. “The employee training program is going to make our search for employees and hiring qualified people easier,” said Pascal Hamelin, general manager of operations. “There are a lot of youth up North, especially in the First Nations communities. They are open to training in mining, and that’s where Plan Nord is going to be a tremendous opportunity for us,” he explained. “We’re already in discussion with Emploi-Québec for training

to start at the end of the summer. A lot of the programs up North are already in place.” Employment is also one of the issues being advanced by Makivik Corporation, a non-profit organization owned by the Inuit of Nunavik, and one of the signatories to Plan Nord.“Nunavik has a very young population,” said Allison Irqumia, Makivik’s assistant project manager. “At least 60 per cent are under the age of 25. Under Plan Nord, hopefully we will see job creation for this demographic.” Shortage of housing in the region is also a top priority for Makivik. “Housing is a critical issue in Nunavik right now,” explained Irqumia. “Families are living on top of each other and this leads to all sorts of problems; it creates bigger problems.” She is hopeful that their concerns are being addressed. At least 500 new housing units in Nunavik will be built during the first

five years of the Plan, as well as renovations to an additional 482. The response to the Quebec government’s initiative has been positive to date. “Plan Nord constitutes the ideal platform for private investment in the North,” said Beauvais. “It’s easier for the companies to commit when there is also a commitment from the government and the local communities to develop. Some companies are on the verge of making a decision, and if the government is opening the doors for investment and making it easier, it will have a great impact on their decision.” It is certainly making a difference for ArcelorMittal. “We want to raise our global iron ore concentrate production to 100 million tonnes per year by 2015,” said Tétrault. “To meet this objective, we will have to study many more projects in Quebec, and Plan Nord is certainly one of the conditions helping us in our decisions.” CIM

Positive energy

for safety cameco.com

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

Solid Results Metso’s team provides total process integration and optimization

When you need optimization of drill and blasting, comminution, flotation, leaching or dewatering processes, Metso’s Process Technology and Innovation team will provide total process integration services. Our specialized skills and proven technology will help to increase profitability, reduce operating costs and improve overall process efficiency. Metso’s vision is to provide significant increases in throughput and metal recovery while reducing energy consumption, and our global reach offers the best possible service to our customers. Whether in design of greenfield projects, expansions or optimization of long-established operations, you can count on Metso’s process technology and innovation. They’re rock solid. metso.com – email: minerals.info@metso.com

news Exporting the Canadian advantage Cultural mosaic is a resource to develop says consultant By Peter Caulfield

Courtesy of MineAfrica Inc.

The race to develop the vast mineral resources in Africa is growing more competitive. Canadian and Chinese mining and exploration companies are among the leaders competing for the best properties and for the all-important social licence to operate. The scale of Chinese investment is difficult to keep pace with but Canada has distinct strengths of its own, some of which the industry does not fully recognize. That was the case that Radcliffe Dockery, president and CEO of consultancy firm HigherEye Education and Training, made at a recent seminar in Vancouver on risk mitigation and corporate social responsibility. Dockery explained that one of the ways that Chinese companies, many of which are state-owned Radcliffe Dockery appealed to Canadian mining companies to make good use of the country’s cultural diversity in their CSR programs. enterprises with deep pockets, are winning the CSR battle is through massive investments in infrastructure Thiessen added that most Canadian by 34 per cent between 1995 and and other forms of CSR programs. mining and exploration companies in 2005. “Canadian CSR programs tend “China has invested billions of dollars Africa are public and therefore subject to focus on such things as HIV/AIDS in Sub-Saharan Africa,” Dockery said. to much more legal scrutiny, such as prevention and child care,” he said. “They’re real, tangible projects with real Canada’s Corruption of Foreign Public “However, the number-one youth dollars.” In 2010, a mining company Officials Act, than Chinese companies, challenge in Sub-Saharan Africa is unemployment. If it isn’t addressed, run by a Chinese contractor in Accra, many of which are state-owned enterGhana, hired African clothing manufacprises and are not subject to the same there will be considerable financial and social costs to pay.” stringent rules. turers to make clothing that was Dockery said he believes that In an interview following his presdistributed to more than 2,000 school Canada has a distinct edge over China entation, Dockery said that Chinese children, he said that it should make use of. The way to In a telephone interview, Ron firms can provide valuable commudo it is through what he calls leveragnity engagement. He cited the case of Thiessen, director, president and CEO ing Canadian diversity. “There are 1.1 a Chinese construction company that of Vancouver-based HDI (formerly million people in this country with was expanding the Gabarone city airHunter Dickinson Inc.), which has roots in Africa or the Caribbean,” he port in Botswana in 2008. It provided had several producing and exploration explained. “And many of them want two-year training courses in electrical properties in Africa, offered his perand mechanical engineering and IT to experience in emerging markets, such spective on the Chinese approach to as Africa.” 350 young people aged 19 to 24. CSR. “Chinese companies are not as Dockery implored the audience to According to a 2007 United Nations far up the CSR learning curve as Canamake use of Canada’s cultural and linWorld Youth Report, Sub-Saharan dian companies,” Thiessen said. “In guistic diversity. “It’s our competitive Africa has both the fastest growing general, Canadian and Western comadvantage over anyone else on the labour force and youth unemploypanies have been doing CSR programs planet Earth,” he said. CIM ment in the world, which increased for much longer than the Chinese.” 16 | CIM Magazine | Vol. 6, No. 4

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

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

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

Hearing Protection

Limiting output in the ear to 82dB

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

Situational Awareness 360 degree directional awareness of your surroundings

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

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

Try One - www.sensear.com/try

1-888-9SENSEAR

www.sensear.com

news Resurgent B.C. mining sector posts remarkable returns Revenues and earnings approached record high in 2010

In what is being hailed as a renaissance for British Columbia’s mining industry, companies have turned in impressive results for revenues, net income and cash flows in 2010, according to a recently released report by consultants PwC (formerly PricewaterhouseCoopers). The provincial mining industry, benefitting from strong demand and rising commodity prices, reported total pre-tax net earnings of $3.7 billion in 2010, a jump of 65 per cent from $2.3 billion in 2009. Gross mining revenues increased 13 per cent to $7.9 billion in 2010, coming in close to the provincial all-time high of $8.4 billion in 2008. Cash flow from operations increased by 32 per cent to $2.9 billion and capital expenditures jumped 120 per cent to $1.25 billion. “The 2010 financial performance of the B.C. mining sector was outstanding, driven by strong coal and metals prices and a lot of hard-working people in the industry,” said Michael Cinnamond, leader of PwC's B.C. mining industry practice and co-author of the report. “The PwC report shows that just about every aspect of the B.C. mining sector has done better than expected. Many of the positive trends we saw last year have continued into the first quarter of 2011.” The PwC report also cited the implementation of two new tax revenue-sharing agreements with the mining industry and First Nations, and the pledge by federal and provincial governments to build the Highway 37 Northwest Transmission Line as major impetus for the rebound in mining. “New mining projects are necessary for the long-term viability of B.C.'s mining industry,” said Erfan Kazemi, senior manager at PwC and co-author of the report. “We are encouraged to see three new major 18 | CIM Magazine | Vol. 6, No. 4

Courtesy of PwC

By Peter Caulfield

PwC report on the state of mining in B.C. in 2010: “Seize the Day”

metals mines in the construction phase and a pipeline of projects ready to go. This is a level of activity not seen in B.C. in over a decade.” Gavin Dirom, president and CEO of the Association for Mineral Exploration British Columbia, pointed to the return of the majors to B.C., including Xstrata and FreeportMcMoRan, as more evidence of the revival of mining and exploration taking place in the province. “They can go anywhere in the world, but they're choosing to come to B.C.,” he said.

In 2010, coal, as in years past, was the biggest contributor to net mining revenues, accounting for approximately 51 per cent of the total. Shipments increased by 32 per cent to 22.3 million tonnes, while prices increased by 15 per cent to an average of US$181 per tonne. But coal was not the only star performer in 2010. As China continues its march towards massive infrastructure development, total copper revenues increased from $1.2 billion in 2009 to $1.4 billion, while stronger demand and increased prices for zinc and zinc concentrates raised net revenues by 29 per cent to $755 million. Silver revenues shone, jumping 44 per cent to $416 million. Molybdenum prices increased 42 per cent, yielding net revenues of $255 million. And although shipments of lead and lead concentrates dipped by four per cent, a 24 per cent price increase raised net revenues by 13 per cent to $157 million. Tom Schroeter, president, CEO and director of Vancouver-based Fjordland Exploration Inc., is cautiously optimistic about the prospects for exploration and mining in the province in 2011. He said that they are “excellent, although they depend on the usual factors, especially the harmonious interactions of the provincial and federal governments and First Nations.” CIM

MOVING ON UP Scott Shellhaas, Thompson Creek Metals Company Inc.’s COO since 2009, was promoted to president. As president and COO, Shellhaas will continue to oversee the company’s mining operations and projects, plus assume responsibility for Thompson Creek’s corporate responsibility, exploration, new business development and human resources/administration departments. Shellhaas has more than 29 years of international executive management and operating experience within the mining industry. Immediately prior to joining the company, he provided executive management consulting services to natural resource and energy companies.

Industrial Components & Services

Kinecor Solutions

With more than 55 branches coast-to-coast, Kinecor is your largest Canadian distributor of industrial components and value-added services. Kinecor supports the mining industry by providing turn-key ƐŽůƵƟ ŽŶƐ ƚŚĂƚ ƌĞƐƉŽŶĚ ƚŽ ǇŽƵƌ unique challenges.

/ŶĚƵƐƚƌǇ ǆƉĞƌƟ ƐĞ ŶŐŝŶĞĞƌĞĚ ^ŽůƵƟ ŽŶƐ Service & Repair Centres 24/7 Emergency Service Cost Savings Programs

Bearings, Gaskets & Unit Blocks Bulk Material Handling Conveyor & Belt Components Cylinders & Valves &ŝůƚƌĂƟ ŽŶ WƌŽĚƵĐƚƐ Gear Motors & Speed Reducers Hydraulic Hose, Adapters Θ &ŝƫ ŶŐƐ Hydraulic Pumps & Motors Lubricants, Sealants & Abrasives Process Pumps

ϭ͘ϴϲϲ͘</E KZ ͻ ttt͘</E KZ͘ KD ĞĂƌŝŶŐƐ ĂŶĚ WŽǁĞƌ dƌĂŶƐŵŝƐƐŝŽŶ ͻ ,ǇĚƌĂƵůŝĐƐ ĂŶĚ WŶĞƵŵĂƟ ĐƐ WƌŽĐĞƐƐ ƋƵŝƉŵĞŶƚ ͻ DĂƚĞƌŝĂů ,ĂŶĚůŝŶŐ ͻ ^ĂĨĞƚǇ ĂŶĚ WW ͻ Dŝůů ^ƵƉƉůŝĞƐ

news Bridging the gaps Good governance and transparency keys to development in Africa By Peter Braul

CSR limits Despite the fact that mining companies have undertaken extensive corporate social responsibility (CSR) campaigns,

some presenters questioned their effectiveness in dealing with large-scale issues. “While CSR projects may effectively address some of the symptoms or the outcomes of miningrelated impacts, they are often less well adapted to dealing with structural and long-lasting development deficits that may be created at the local level,” said Catherine Coumans, a member of the Canadian Network on Corporate Accountability and research coordinator at MiningWatch Canada. “When we deal with public sectors and the attempts to resolve conflict and initiate peace-building activities, we are almost always condemned to frustration,” said Jim Freedman, one of the presenters and a professor emeritus at the University of Western Ontario, who suggested that industry has the means to fill the governance roles traditionally reserved for host governments. “The private sector has developed a governance capacity in areas of conflict, which sometimes can be quite sophisticated,” he said. But even if the private sector has developed this capacity, the question remains whether governance should be the burden of the miner. “The best approach is regulation by the host government,” said Tony Andrews, executive director of the Prospectors and Developers Association of Canada. “The industry can do all the corporate social responsibility it wants,” he added. “But if there’s not similar progress with host country governance capacity building, the progress we can make is limited.” Peter Braul

As more and more companies establish mines in Africa, questions about development and sustainability are growing more complex. Where, for example, does one draw the line when it comes to roles and responsibilities of mining companies and African governments when dealing with the issues of governance, transparency and development? These were the main themes discussed at an international forum held in Montreal in April. The conference, titled “Mining investment and development in Africa: Roles and responsibilities of actors concerned,” was organized by the Canadian Network on Corporate Social Responsibility, L’Entraide missionaire and UQAM’s Research Group on Mining Activities in Africa. The one-day event featured a series of panel discussions and attracted a wide range of stakeholders.

Financial transparency Susan Maples, a post-doctorate research fellow at Columbia Law School, pointed out that mineral development agreements made between countries and corporations can vary wildly in their fairness, but are difficult to examine because of limited transparency. “The contracts that these deals hinge on are not public,” said Maples. “And the fair deal conversation cannot be had without the contracts.” She views the reasons that corporations give for keeping contracts private, such as the need for competitiveness and commercial confidentiality, as being no longer acceptable. If development issues in Africa are to be solved, “it’s going to require a public-private partnership at an unprecedented level,” Maples explained. She acknowledged that a civil dialogue “just cannot happen without transparency.” To achieve this, Maples said companies would have a more positive impact if they shifted their energies away from CSR programs and utilized the Extractive Industries Transparency Initiative (EITI), which is designed to reinforce governance by improving transparency and accountability in the extractive sector. It requires companies to disclose 20 | CIM Magazine | Vol. 6, No. 4

what they pay, and governments to divulge what they receive. The figures are reviewed by an independent party and then made available for public scrutiny. Maples hopes that EITI will expand to include company payments to CSR infrastructure projects, which has already happened in some cases. “We need the whole package,” she said.

Safety Equipment SafetyWhips.ca

Governance gaps On the subject of the mining industry stepping in to fill the governance void, Gordon Peeling, the outgoing president and CEO of the Mining Association of Canada, said, “Industry is willing to fill a gap, but it can’t be the long-term solution for Africa. It’s one thing to collect tax, but if you don’t know how to invest it for the best outcomes for your societies, it will all be wasted,” he added. Antonio Pedro, the director at the sub-regional office for Eastern Africa of the United Nations Economic Commission for Africa, explained that good governance takes time to develop. “African governments impose very modern and aspirational legal and regulatory frameworks, and yet don’t have the capacity to enforce them,” he said. “Balancing the provisions in the law … with the capacity to enforce is a major problem.” When it comes to addressing the challenges of mining in Africa, Pedro said, “there is no universal recipe.” He believes that dialogue remains the key to developing the best understanding and best practices for the region. He added that developed and developing nations can learn from one another, and that the problems Canadians face trying to address First Nations issues are echoed in many African jurisdictions. Andrews declared that mining companies have an opportunity to radically change the way they are perceived. “You can contribute in a very real way, and become known as a mechanism for the alleviation of poverty and the strengthening of economies in the developing world,” he explained. CIM

LED Lighting

Fiberglass, Heavy Duty Whips & Flags

Hitch Mounts with Alarms

Telescoping Whips

MOVING ON UP PMI Gold Corporation appointed Michael Allen as the company’s new CFO. He replaces Philip Gibbs who was hired on a contract basis in Canada. Allen is a Chartered Accountant with about 30 years’ experience, which includes senior financial executive appointments in the mining, advisory and investment industries. Most recently, he was a principal in the corporate finance division of RSM Bird Cameron in Perth. Frans Knox was appointed general manager of Forbes & Manhattan Coal Corp.’s Slater coal operations based in Dundee, Kwazulu-Natal. Most recently, Knox was with BHP Billiton Energy Coal South Africa as the general manager at several of their coal operations. Golden Predator Corp.’s new vice-president of exploration (Canada), Michael Maslowski, is charged with overall direction of the company’s Yukon exploration and development activities. He brings 30 years of exploration and production experience to the company.

Vehicle ID Panels tel 604.560.5080 fax 604.560.5090 www.safetywhips.ca SW SafetyWhips Canada 2677 – 192 St. #107 Surrey, BC V3S 3X1

June/July 2011 | 21

upfront S U S TA I N A B I L I T Y by V i r g i n i a H e f fe r n a n

Making it right when things go wrong Grievance mechanism key to building good mine-community relations grievance mechanisms that mining companies are currently adopting to nip complaints in the bud, before they become fullblown protests.

Paul Warner

Using the proper tool

Paul Warner listens to villagers’ concerns at a community meeting in northern Liberia.

hile contractors were building the road to the giant Antamina copper-zinc mine in Peru a decade ago, they accidentally broke one of the irrigation canals that local farmers relied on for their crops, and then failed to follow through on their promise to repair it. With the dry season coming on, and their livelihoods in danger, villagers from nearby Aquia set up a blockade on the mine road. Because there was no protocol to deal with the escalating protest, the mine’s consortium of owners, including Canada’s Teck Resources and the now defunct Noranda, were uncertain on how to proceed. They sent one of their senior managers, Paul Warner, to the frontlines. Warner told the protestors they did not need to block a road to get the owners’ attention and handed out his direct phone number to anyone who would take it. “Nobody called, but the blockages stopped,” Warner told a diverse crowd of social activists, academics and mining company representatives at a recent seminar at Ryerson University in Toronto organized by the federal government’s Office of the Extractive Sector Corporate Social Responsibility (CSR) Counsellor. Although nobody recognized it at the time, Warner’s instinct to be fully accessible and forge personal relationships in the community would become a cornerstone of the

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

“For a company to take a bet on winning lawsuits or successfully countering hostile campaigns is, at best, optimistic risk management,” wrote John Ruggie, the Special Representative of the United Nations Secretary-General for business and human rights and a leader in the field, in a 2008 report. In fact, escalated complaints are a sure sign that a company does not have an effective grievance mechanism in place, says Warner, who now works with both mining companies and communities – through his company Both Sides Now Consulting – to try to find better ways to engage with each other. Several organizations, ranging from the Prospectors and Developers Association of Canada to the International Council on Mining and Metals, have published guidelines that mining companies can use to implement their own, project-specific grievance mechanisms; these guidelines will continue to evolve based on real-life experiences at mining operations. Even Oxfam Australia, traditionally regarded as anti-mining, is working with the mining industry to ensure that complaints are heard and dealt with before they lead to protests. Warner says if he could use just one reference, it would be the guidelines published by the Corporate Social Responsibility Initiative at Harvard University’s John F. Kennedy School of Government called “Rights-Compatible Grievance Mechanisms, a Guidance Tool for Companies and Their Stakeholders.” Ruggie is a professor of human rights and international affairs at the Kennedy School and the driving force behind the guidelines. They call for a legitimate and trusted mechanism that is publicized, transparent and accessible. The basis for the mechanism would be engagement and dialogue between the

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

company and the community, and the end result would be predictable, fair and empowering. Finally, the mechanism would be a source of continuous learning to evaluate what works and what does not. The guide will be revised and expanded later this year based on four pilot projects, one a coal mining operation in northern Columbia called Cerrejón, owned in equal parts by subsidiaries of BHP Billiton, Anglo American and Xstrata.

manage grievances has helped us internalize better international social standards and provided communities improved tools to interact with Cerrejón,” said León Teicher, president and CEO of Cerrejón, in a recent progress report on the company’s commitments. “The success of the mechanism will depend on both the company’s ability to respond timely, fairly and consistently, and on the transparency of employees and communities.”

Building relationships and communities

Lack of planning courts disaster

In 2007, Cerrejón’s owners commissioned an independent review of the mine’s social engagement by a panel of internationally recognized experts in the area of social development. The resulting report identified a number of concerns and grievances, mostly related to the resettlement of the Tabaco community to make way for a mine expansion in 2001, when police evicted residents by force. Following the panel’s recommendations, Cerrejón agreed to buy a piece of land where Tabaco could be reconstructed, build a community centre, provide the initial engineering works to build the new village, fund socio-economic projects and to compensate community members. But there are ongoing concerns from the 200-plus communities that line the 150-kilometre railway that serves the mine, including access to water, electricity and education, employment opportunities and the loss of livestock near the railway. The railroad is subject to periodic blockages by community members, who use this technique to protest everything from local power outages to recent plans to change the country’s distribution of royalties from commodities. So Cerrejón set out to develop a larger, more comprehensive complaints mechanism following Ruggie’s guidelines and adding the input of employees, contractors and community members. “Implementing the Ruggie guidelines to

Cases in which companies have failed to respond in a fair and timely manner are just as instructive as the success stories. When UK-based Monterrico Metals proposed building a large copper mine in a remote area of northern Peru in 2005, for example, residents protested. The dissent ended when allegations surfaced that several protestors were detained and beaten by Peruvian police. The company continued with its development plans and the Rio Blanco Mine was expected to begin commercial production this year, but when residents held an informal referendum in 2007, the vast majority voted against the mine. The company offered them millions of dollars in compensation, but by then there was too much bad blood. In 2009 a civil lawsuit was brought against Monterrico (now owned by Zijin Mining Group) in the United Kingdom by the victims of alleged human rights abuses during the 2005 protest and £5 million ($8 million) of the company’s assets were frozen by the UK courts. Rio Blanco may be an extreme case of a mining companycommunity conflict turning ugly, but it underlines the urgent need for effective grievance mechanisms. Implementation is finally gathering momentum, says Warner, and companies ignore the new guidelines at their peril. “For years I felt like I was pushing a wall, and then I turned around and the wall was pushing me,” he says. CIM

& % .%* $ )% ' )'% !) $ -!()!$ *!# !$ %' *!# $ , !#!). % .%*' %%'( !# )% %& ' ) !$ + '( %$ !)!%$( (% , $ #& % # ( '+! $ !$() ## )!%$ '%(( $ ' "*() ## , . )% ((!() .%* ,!) .%*' ! %%' $ (

%% ,* +' . & #& "'& .',) '( ) +#'& ++ ) '') +/* + %$ #& ' @ !% &)# ! "

$$$

June/July 2011 | 23

upfront ENGINEERING EXCHANGE by Alexandra Lopez-Pacheco

Pulling out the stops Siemens and Quadra FNX avoid downtime as they upgrade mill drive So two years ago, the management team at Robinson decided that this year, it would upgrade the mill, which employs Siemens’ Simine Mill GD solution for gearless mill drives and twin-pinion mills. But that decision did not come without its own challenge since the upgrade work itself would likely require a significant and costly shutdown. That’s when Siemens Industry, Inc. came into the picture. “We did an evaluation as to what the recommended upgrade would be,” says Vinny Matthews, business manager, mining projects, Siemens. “And what we were able to figure out is that we could upgrade all the power conversion, electronics and automation without having to replace the motors, which are extremely large, very expensive and are very time-consuming to replace with new ones. Fortunately, Siemens has always built an extremely robust motor. For Robinson, that was a feasible alternative because it greatly reduced the shutdown period that would be required.” While this solution did indeed dramatically reduce the necessary shutdown period, the challenge of how to do the upgrades, which included a Sinamics SL150 cycloconverter and a new diagnostics system, with the shortest possible interruption to production remained critical.

Courtesy of Siemens

Small windows of time

A crane sets into place the portable building that accommodates the new electronics. The plant will use the “e-house” while the obsolete technology is phased out.

ome six years ago, Canadian mining company Quadra FNX Mining Ltd. realized it could be facing a serious problem in the not-too-distant future with its semi-autogenous grinding (SAG) mill at its Robinson open pit copper mine near Ruth, Nevada. “The equipment we had was late 1980s and early 1990s technology,” says Cary Brunson, maintenance manager, Robinson Nevada Mining Company. “And the computerized portion of this had become obsolete. We recognized the short supply of the components we needed to maintain the equipment. If we shut down because we were out of parts, it would cost us up in the $50,000 an hour range. If we had to shut down because we didn’t have the part on site and that part was already obsolete, we could be facing weeks to get it repaired or get a new one. It became apparent that the cost of trying to operate on an obsolete system was going to be prohibitive.”

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

“We have two opportunities a year to have this mill down for the amount of time we need to do the upgrade and, logistically, we had to have this set up so we can do the upgrade within those two periods,” says Brunson. “Siemens has worked very well with us on this and been very flexible. Instead of taking all the downtime they need to do to get this up and running, they’ve broken it down. We have a 14-hour shutdown every five weeks, so they’re coming in and doing bits of what needs to be done within those windows.” While not replacing the motors was part of the solution, it also presented its own challenges. “We were looking at putting the new section in while the old one was still running to limit the shutdown period,” says Matthews. “As well, it would allow us to test the new one as much as possible without connecting the motors prior to converting the entire system. But we looked at this and thought, ‘Where are we going to put all these electronics?’ Typically, you take out the old and replace it with the new.” The mine operators and the Siemens team decided on what was to become one of the more unique and innovative aspects of this project. “We built a platform outside of the building, which would connect to the existing concentrators so there would be a shared wall, and then put in an e-house, essentially a portable building that houses electronic equipment, on that platform,” Matthews explains.

upfront ENGINEERING EXCHANGE

The e-house was built in Indiana. There, all the equipment was installed in the e-house and tested. “Because the e-house is too big to ship in on one flatbed, you typically split it in half or thirds, or more than that, and then you truck it to the site,” he adds. “You lift it up with cranes onto the platform and put in place.” “Despite the cost,” says Brunson, “we did our analysis and realized that the cost of even a day’s time of being down would match the price for this upgrade, so it became a very easy decision.”

Greater performance with a smaller profile Throughout this phase of the project in the summer of 2011, the existing equipment continues to operate, while Siemens focuses on the installation of the e-house and the wiring work, as well as much of the automation testing. Sometime in September, depending on the feasibility for Robinson, the mine is expected to shut down for approximately four days, during which time the new system will be fully connected to the existing motors and thoroughly tested. “We expect several types of performance improvements for Robinson with the upgrade,” says Matthews. “That includes a smaller electronics footprint, which means the number of components tend to be reduced, and when the number of components are reduced, the reliability tends to increase.

Instead of having lots of electronics, which is typical with analog, this is primarily a digital system. That means we’re able to control everything much more precisely and the diagnostics are greatly improved. The power performance has also improved significantly over the years, so they’ll be able to do the same amount of work with less energy. Furthermore, the user interface has become much friendlier. Today, it’s basically point and click. It allows the operators to get a lot more information and higher productivity with the system.” In addition, the mine operators won’t have to worry about an unexpected shutdown due to a broken, obsolete part. With many mines in North America using equipment that is two or more decades old, Siemens says it is seeing an increased demand for innovative solutions for upgrades such as this one that limit the need for shutdowns. “We specialize in this,” says Matthews. “We were kind of driven this way by the recession. Several years ago, everyone was very concerned about the amount of investment they could make, yet they still needed to make the investment because they had to have the equipment going. So we started to look at how we could modernize the mills for our customers without a massive amount of capital being expended and without them having to shut down their production for a prolonged period. This is what drove this type of innovation, which has in turn become a value proposition.” CIM

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

DMC MINING SERVICES IS YOUR RESOURCE FOR…

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

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

www.dmcmining.com

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

June/July 2011 | 25

upfront Q&A by Ryan Bergen

A long-lived pioneer Innovators can’t be afraid to take a bullet… or two im Skinner has made a career out of managing information systems, implementing and optimizing technology, and managing change in the mineral resources industry. He has run information systems for Cominco, Fording Coal, Elk Valley Coal, TransCanada Pipeline and Michelin Tire. Currently, he is an automation, technology and systems consultant to the metals and minerals industry. Skinner is also an active member of the Surface Mining Association for Research and Technology (SMART). The association, composed of mining companies, was conceived to help direct and share research and developments that could improve the technologies and services available to the surface mining sector. With SMART, he is committed to establishing connectivity and technology standards and opening up access to the mass of information produced by the technology used at a modern mine site. CIM Magazine recently spoke to Skinner to get his perspective on the state and future of operations in the industry.

CIM: There are a number of external forces affecting the extractive sector, including the industrial fortunes of the BRIC countries and the shallow labour pool. What do you see as the internal influences that are compelling change? Skinner: Internally, there has been a return to operating excellence. I think prior to the recession when commodity prices were high, we slipped away from that ideal and had a “production at any cost” mentality, which led to sloppiness and inefficiency. Tires are a good example. People were buying tires at any price. We seemed to forget we have our cycles, and so we had a rude awakening. I think also, the mining industry had been overly driven by the financial imperative rather than an operational one. CIM: Did this affect safety as well? Skinner: No, safety did not get sacrificed; it got increasing attention. Mining continues to be an industry that is leading in safety. 26 | CIM Magazine | Vol. 6, No. 4

CIM: The profile of the people that make up the skilled mining workforce is also changing. What are the most significant developments? Skinner: The younger generation of professionals is much more technologically engaged, and they have an expectation that their work environment will reflect this. Also, young professionals have a much more urban orientation. They want to work in the industry, but they also want to work in the city. It still surprises me when I hear that, but it can be done now. You can take work to the people rather than people to the work. Also, among management there is increasing understanding and greater awareness of what other industries are doing with technology and what technology can do for our industry. The changing of the guard is underway. If I talk about autonomous drill operations, people don’t look at me like I’m crazy anymore. They understand that there are opportunities that need to be explored. CIM: What does the increasing automation of operations mean for the relationship between operators and equipment and technology suppliers? Skinner: As the equipment becomes more automated and intelligent, the operator becomes more of a “pilot” than a direct operator. This requires greater integration of systems and the interface between the operator and the equipment. A unified presentation and capability needs to be provided to the operator for direct onboard control, as well as a complete awareness and knowledge of all the external activity going on around the equipment. There will be a need for a common standard framework that will allow various monitoring and controls technology to be provided as a single, orchestrated, simple and easy-to-use interface for the operator. The technology suppliers must provide and support the standards and interfaces required to enable the unified operator interface. CIM: The power of the tools available to mine operators is immense. Are mines getting the most out of new technology? Skinner: No, they aren’t, for many reasons. One reason is there are too many visual and audio presentations that just create noise and an environment that is more annoying to the equipment operator than helpful. Operators will sabotage the warning systems, tune them out, or not comprehend and respond due to overload. This is an evolving safety issue that most are not aware of. The challenge is to design an integrated operator interface that intelligently presents the important information needed by the operator. The right information is not getting to the right people at the right

upfront Q&A

time, and then how do you train people for that? At most, simulation technology might include a dispatch system terminal along with the basic controls from the OEM. That is only one additional system out of many possible, such as stress or tire monitoring, collision avoidance, operator fatigue, etc.

of its prime roles is to address technology and innovation in surface mining. SMART is the only organization that brings together mine operators and presents the common technology challenges and needs of the operating industry. Greater attention and accomplishments are achieved when the industry speaks with one voice.

“The mine operator is the only one who can make the technology work alongside the needed processes and people changes.”

CIM: How different do you think a mining operation commissioned 10 years from now will look? What about 20 years from now? Skinner: Ten years from now, we will see individual selective pieces of equipment working autonomously – production blast-hole drills and haul trucks. Twenty years from now, we will probably see the first integrated automated mine where most prime operating equipment is working autonomously together. It will be interesting to see who does that because you need a lot of buy-in if you have a multi-OEM environment.

CIM: Some OEMs are more protective of their data than others. What case would you make for OEMs to provide greater access to the data generated at the mine site? Skinner: First, it is the customer’s data; it is data about their equipment and operation. To limit access is working against your customer. Second, the end owner and user is in the best position to understand and use the data provided to determine and identify improvement opportunities for both the equipment and its application, and thus to the benefit of the OEM. Finally, openness has shown to be the environment that drives innovation and improvement. Closed environments do not survive.

CIM: When it comes to innovation in mining, the saying goes that pioneers get shot. How do pioneers avoid being shot? Are there other industries that might provide a model? Skinner: You can’t avoid being shot; it is more a question of ‘is the shot fatal?’ The only way to avoid being fatally shot is to work with an organization whose management and senior leadership are fully supportive and driving the developments in an evolutionary improvement approach. You need an organizational culture that states that if you are not making mistakes, you are not pushing hard enough. Most other industries – such as manufacturing, petro chemical, financial – are far ahead of mining, so most can provide a model. I started in Trail, British Columbia with Cominco in process control in the smelter; a lot of the automation we were doing then in the 1970s and 1980s had the same issues that we are seeing now in mining. These are the same fundamentals, but the industry seems committed to the tortuous approach rather than the enlightened one. CIM

CIM: On the opposite side of the coin, what challenge would you make to mine operators about maximizing their technology? Skinner: The challenge is to take ownership of the technology, and provide the leadership and support required to apply and utilize the available technology. The mine operator is the only who can make the technology work alongside the needed processes and people changes. CIM: Why is an organization like SMART important? Skinner: SMART is important because it is a mine operator’s organization. One June/July 2011 | 27

Pure muscle in the mine Think about it. Then think about ITT. When the going gets rough, its good to know you can depend on the tough: Flygt 2600 dewatering pumps. Streamlined to be even more easy to transport and install, these pumps come to you with a patented impeller design and fewer moving parts. The result? Truly robust pumps packed with superior wear resistance that deliver consistently high performance over time. In fact, tests prove that these pumps deliver a 3-fold increase in wear resistance against all other dewatering pumps. Thatâ&#x20AC;&#x2122;s what we call tough! Flygt 2600 dewatering pumps. Built to keep on working, no matter what. Itâ&#x20AC;&#x2122;s the muscle you want working for you in the mine. www.ittwww.ca

mining more, mining safely MDA Corporation has developed uGPS to better monitor and control equipment movement underground.

Courtesy of MDA

Exploring the limits New frontiers of mining a test for both operators and suppliers by Eavan Moore

he minerals industry, driven by strong demand for mineral resources, is testing its limits and opening up new frontiers. Explorers, builders and operators are digging ever deeper to find new reserves, and venturing into territories previously considered unmineable, all while confronting the long wait times for equipment and taking care to guarantee the safety of its workforce. Suppliers to the industry must work to keep up with these ambitions. Whether helping customers conserve their tight supplies and comply with regulations, or designing new tools for new conditions, suppliers are key to keeping mines operating in the face of unique challenges.

Treading lightly Nowhere is the operator-supplier relationship more clear than in tire development. In this current boom cycle, demand for tires still exceeds production capacity. Tight supplies and the steep expense of replacing tires as the costs of raw materials rise give operators strong incentive to keep their tires in operating condition longer. But it is still a struggle to make those tires last. Even the factors that seem straightforward â&#x20AC;&#x201D; tire pressure, road conditions, truck loading â&#x20AC;&#x201D; prove challenging to control. In response, industry and suppliers work closely to share their expertise. Barry Rexroad, director of OTR (off the road) engineering and mining at Bridgestone Americas, says that the June/July 2011 | 29

mining more, mining safely

Courtesy of Michelin

In response, a number of jurisdictions have set progressively tighter limits on emissions levels. Diesel emissions, regulated in Canada since 2006, would see a further reduction starting in 2012 under amendments proposed by Environment Canada in accordance with United States Environmental Protection Agency (EPA) guidelines. DPM would be reduced 50 to 95 per cent under these guidelines. The success of these regulations rides on new engine technologies. Komatsu and Caterpillar are among those suppliers OTR tire manufacturers, including Michelin and Bridgestone, are working closely with mine operations to improve tire performance. already offering machine models with emissionscompany engages in product development, technical serv- reducing engine add-ons that meet the latest standards. ice, training and an industry-leading tire-use tracking softThis year and next, Caterpillar will release several ware, TreadStat® to ensure that the best products are get- machines that meet the most stringent criteria defined by ting the best use. “Bridgestone uses a technology called the EPA. Each machine will include some combination of G-Hawk that combines GPS measurement along with a several emissions-reducing elements. An NOx reduction three-axis force measurement system to get real-time data system diverts and cools some engine exhaust gas, then on the forces and stresses that the tires see as a truck runs returns it to the combustion chamber to inhibit NOx formain the operation,” he says. “We can determine portions of the tion by lowering cylinder temperatures. A diesel oxidation haul road or truck operation that could overstress the tires.” catalyst breaks down pollutants, and a diesel particulate filMeanwhile, new products reflect research into the tread ter removes soot from the exhaust stream. The self-cleanpatterns and architectural details that hold up best in dif- ing filter uses heat from the exhaust gas to burn off soot. ferent applications. Bruce Besancon, director of marketing The more advanced technologies require ultra-low sulfor Michelin earthmover tires, explains: “Any time Michelin phur fuel, which is mandated in some countries but difficult puts out a new product, it’s always going to be on the basis to obtain in others. “Caterpillar will offer different configuthat we want to increase the productivity. Our newest rations of machines for heavily regulated countries versus earthmover tire, the XDR2, runs cooler and has new fea- less regulated countries,” says spokesperson Mark Sprouls. tures to lessen the impact from rock cuts and other outside influences.” Underground hazards When tire supply was at critical levels between 2007 At Xstrata Copper’s Kidd Mine, diesel regulations are and 2009, says Bob Dirk, director of mine operations at not the focus for now. The reason is that the ventilation Suncor Energy, the challenge was met jointly. “We took on systems built to deal with the intense heat in the 2,800a lot of improvement work and set the world record for tire metre-deep mine easily dispose of diesel fumes along the life for three different sizes. Suncor’s employees can take way. Deep mines like Kidd represent the future of undercredit for half of those improvements, and I would give the ground mining, expected to continue moving downward as tire manufacturers credit for the other half.” surface resources are exhausted. Their operators have learned firsthand that heat conditions and rockburst will be A cleaner work site major safety challenges at greater depths. The industry faces another challenge in the environmenSeismic activity is a regular presence at Kidd Mine, says tal impact of its standard equipment. When diesel fuel is Shannon Campbell, manager of engineering and mine burned, it generates a number of pollutants, including nitro- operations. Normally, it is managed through computer gen oxides (NOx), which contribute to smog and acid rain, modelling, monitoring and proactive closure of potentially and diesel particulate matter (DPM), which has broad envi- risky areas. But in January 2009, the mine experienced a ronmental effects while directly damaging human health. 3.3 earthquake on the Richter Scale that caused ground 30 | CIM Magazine | Vol. 6, No. 4

mining more, mining safely

Courtesy of Jennmar

MDA’s development team has been working to change that for the last several years. The company is now ready to sell the result: a system, dubbed uGPS, in which vehicle sensors recognize any spot in the mine and transmit their location information through an interface similar to the Mine operators at Xstrata Copper’s Kidd Mine are testing dynamic supporting bolts such as the YIELD-LOK GPS system common in cars. bolt to assist existing ground support. “To travel many, many miles in underground tunnels and come back failures on multiple levels, challenging state-of-the-art to the very same spot and know you’re exactly on that spot ground-support tendons that had previously had no problems. is a much more challenging physics problem,” explains Turning to the market, the mine needed additional dynamic Jakola. Once solved, the system has numerous potential loading bolts to supplement its existing ground support. applications, he says. “If you knew where all the vehicles Previously, the mine only had modified cone bolts available. were in the total underground environment, you would be These bolts, developed in 2000 at the Noranda Technology thinking like an air traffic controller. You could actually be Centre, plow through a resin grouting under a dynamic load, creating path planning for vehicles.” absorbing seismic energy and sparing their neighbouring Kidd Mine is looking into automation of some sort, primabolts. However, the modified cone bolts are tricky to install rily to avoid collisions. But the same solution could also free effectively, says Campbell. So Kidd Mine is testing several up resources that are limited by safety concerns. “For us, the new dynamic supporting bolts, including the D-Bolt and the biggest productivity gain with this type of technology would YIELD-LOK™ bolt. The YIELD-LOK™ bolt was developed by Jennmar Corporation in where all the vehicles were 2009, which combines dynamic load capacity in the total underground environment, with rebar-like support. The D Bolt, from Dynamic Rock Support, was invented by Charlie Li of the Norwegian University of . – R. Jakola of MDA Science and Technology in 2008. Rocky Wu, vice-president of engineering at Jennmar of Canada, explains that the bolt is called YIELD- be automated muck transfer when the mine is emptied for LOK™, reflecting its dual functions. A polymer-coated sturdy stope blasting,” says Campbell. “Because of crushing and steel bolt provides reinforcement in static loading conditions. squeezing ground, we don’t have a lot of ore passage from Under a dynamic load, the bolt plows through the polymer the top of the mine to the bottom. We’ve got a cascading coating, transferring its energy. Its performance is more con- series of ore passes where a scoop is needed to transfer sistent and less dependent on the type of grouting materials from one ore pass to another. So when we’re blasting, these and drill hole size. It is suitable to be used as primary support automated scoops would transfer the muck from the bottom in dynamic ground conditions. “Our hope is that with a few of one ore pass to the top of another. And the ore flow sysextra YIELD-LOK™ bolts, we can reduce the amount of over- tem would basically continue to flow, as the mine is man-free.” all ground support per metre of drift by 25 to 30 per cent, which is tremendous,” says Campbell. Exploring Davy Jones’ locker However strong the rock supports may be, underground Mining copper and gold three kilometres below ground mines are no place for unnecessary personnel. Major is challenging enough, but several companies are making equipment manufacturers are now offering automation truly novel plans: drilling for metals three kilometres below technologies that allow teleoperation of equipment; they the ocean waves. Exploration efforts have hinted at include Sandvik’s AutoMine, Caterpillar’s MineGem and extremely high-grade metal deposits rising from the ocean Atlas Copco’s autonomous load-haul-dump vehicle. All of floor, piquing the interest of prospective subsea miners these solutions enable operators to manage underground around the globe. But an open pit mine one to three kilovehicles from the surface; the machines use laser scan- metres underwater comes with unique challenges. The ners to navigate underground tunnels, tramming and effort to surmount them involves a high degree of cooperation among multiple players working to adapt and expand dumping autonomously. But there is another thing they have in common, says the tools of other industries. The first challenge is in exploration: both financing and Roy Jakola, director of terrestrial applications at MDA Corporation, which developed the navigation algorithm for conducting exploration for undersea deposits have differAtlas Copco. “The vehicle doesn’t really know where it is ent requirements than land-based mining. “We have come in the mine,” he says. “It just knows that it’s memorized the to the understanding that arranging for investments is a way from point A to B, and it’s going to do that repetitively.” difficult task for our customers,” says Joyce van Heijzen,

“If you knew

you would be thinking like an air traffic controller ”

June/July 2011 | 31

mining more, mining safely The successful development of seafloor mining equipment, such as this drum cutter, will rely on collaboration across the industry.

Courtesy of OceanflORE

A drum cutter feeds slurry to the surface, where it is dewatered.

Courtesy of Greg Baiden

marketing representative for IHC Signals passed by LED lights are one solution There remain numerous open Merwede. In response, the dredge- proposed for subsea communications. questions and areas of exploration in building company joined forces with subsea mining. Today’s subsea mining dredging company DEME to offer a tool designs use umbilical cords to cost-per-tonne mining solution as provide power and communication joint venture OceanflORE. “This is a with the ship above. Ultimately, says solution we would like to develop Greg Baiden of Penguin Automated further,” she says, “because we Systems, it would be helpful to introbelieve it will help develop the marduce other forms of subsea communiket from experimental to industrial cation. He is working on an idea first and, eventually, mature.” spurred by the challenges of teleoperPeter Kowalczyk, co-founder of ation in countries where wireless the ocean mining exploration combandwidth is restricted, and now being pany Ocean Floor Geophysics, tested by Codelco at both surface and explains one way in which underground operations. OceanflORE’s approach would help. “The big problem for The system uses light signals transmitted between people who are exploring submarine deposits is that if equipment, through air or water. “You have to imagine a ball you drill off the resources to the standards required by NI where the lights are arranged in a pattern so they shine out 43-101, you spend too much money doing the drilling,” in every direction,” explains Baiden. “What we do is turn the he says. “It’s not actually necessary in terms of the eco- lights on and off at so many cycles per second. And then nomic analysis of the deposit because with ocean mining you can encode a signal.” you don’t have sunk costs. So, what OceanflORE plans to Drilling and transporting ore from the sea bottom brings do is to reduce drilling costs by collecting a bulk sample a whole new set of challenges. The technologies that diffor you at an early stage in the exploration process.” ferent players are working on draw from the oil and gas But first the deposit must be located, something that industry and open pit surface mining, each element needmust be done while working, as Kowalczyk points out, ing to be adapted to the unique process of cutting and more or less blind. His company has been working on sur- transporting slurry underwater. veying seafloor massive sulphide deposits. The process The novelty — and difficulty — makes co-operation a key begins with precision sonar and remotely operated vehicle feature of deep-sea mining efforts, comments Pieter (ROV) missions, long used for academic and recovery pur- Lucieer of IHC Merwede. “Designing the system doesn't poses. To hone in on high-grade copper gold deposits, mean doing everything on your own account; a big part of Ocean Floor Geophysics decided to use electromagnetic the job is integrating various, sometimes proven, technolosurveying tools. Mapping the conductivity of the ocean gies. This also includes cooperating and building relationfloor reveals copper and gold because they’re compara- ships. No company in the world can develop a system this tively conductive. The company’s latest systems use a coil complex all by itself.” wrapped around the ROV that transmits an electromagAs mining becomes more challenging and the demand netic field. Antennas sense variations in the electric field for commodities continues, this model for collaboration is a as the ROV tracks three to five metres above the ocean powerful one. Operators and suppliers might find this valufloor. “This system doesn’t penetrate very deeply,” explains able not just for subsea mining ventures but on the surface Kowalczyk, “but it does map out the area of the conduc- and underground as well, wherever the objective is to mine tive massive sulphides quite accurately.” more and mine safely. CIM 32 | CIM Magazine | Vol. 6, No. 4

Courtoisie d’Xstrata

exploiter davantage, en toute sécurité

Darryl Booth fait de l'arpentage souterrain à la mine Kidd de Xstrata Copper.

Pour répondre à ces défis, les fabricants et les fournisseurs collaborent étroitement et mettent en commun leur expertise. Barry Rexroad, directeur, Génie et exploration minière hors route chez Bridgestone Americas, déclare que son entreprise, afin d’utiliser les meilleurs produits de la meilleure façon possible, travaille au développement de produits, de services techniques et de formation, ainsi que du logiciel de pointe TreadStat® qui mesure l’usure des pneus. « Bridgestone utilise la technologie G-Hawk qui combine des données GPS à celle d’un système de mesure des forces sur trois axes afin d’obtenir des données en temps réel sur les forces et contraintes qui s’exercent sur les pneus au cours des opérations de camionnage », dit-il. « Ainsi, nous pouvons mettre en évidence les tronçons des routes de transport ou les opérations de camionnage qui sont susceptibles d’exiger un effort excessif pour les pneus. » Entre-temps, on voit arriver sur le marché de nouveaux produits qui mettent à profit les recherches sur les profils de bandes de roulement et sur les structures fines qui se comportent le mieux dans différentes applications. Selon Bruce Besancon, directeur des services de marketing chez Michelin, Pneus d’engins de terrassement, « Notre nouveau pneu d’engin de terrassement, le XDR2, chauffe moins en service et il offre une meilleure résistance aux taillades causées par les arêtes de roche et aux autres types d’agressions extérieures. » Selon Bob Dirk, directeur de l’exploitation minière chez Suncor Energy, quand l’approvisionnement en pneus était difficile entre 2007 et 2009, on a relevé le défi grâce à un effort collectif. « Nous avons pris un grand nombre de mesures destinées à améliorer nos façons de faire, ce qui nous a permis d’établir un record mondial de durée pour trois tailles de pneus. Les employés de Suncor méritent de recevoir au moins la moitié du crédit pour ces améliorations, et je veux bien accorder l’autre moitié aux fabricants de pneus. »

L’exploration à la limite de la technologie

Les nouvelles frontières de l’exploration minière : un test pour les exploitants et les fournisseurs

ans la foulée d’une forte demande pour les ressources minérales, l’industrie des minéraux est confrontée à ses limites et se découvre de nouvelles frontières. Les explorateurs, constructeurs et exploitants creusent toujours plus bas pour découvrir de nouvelles réserves, et ils s’aventurent dans des zones jugées inexploitables il n’y a pas si longtemps. Dans cette entreprise, ils doivent faire face à de longues attentes pour le matériel et assurer la sécurité de la main d’oeuvre. Pour être dans le coup, les fournisseurs de cette industrie doivent maintenir des flux d’approvisionnement tendus en conformité avec les lois et règlements et concevoir de nouveaux outils destinés à des conditions nouvelles. Dans tous les cas de figure, les fournisseurs jouent un rôle clé dans le maintien de l’exploitation minière en relevant des défis inédits.

Mettre la pédale douce Le secteur du développement des pneumatiques illustre assez bien la nature des rapports entre l’exploitant et le fournisseur. Dans le cycle actuel en pleine expansion, la demande pour les pneus dépasse régulièrement la capacité de production. Que peut-on faire pour prolonger leur durée? Même des facteurs apparemment simples comme la pression des pneus, les conditions routières et le chargement des camions peuvent s’avérer difficiles à contrôler.

Les dangers du milieu souterrain Les mines à grande profondeur comme la mine de cuivre Kidd de Xstrata représentent l’avenir de l'exploration minière souterraine, qui devrait continuer à fouiller les entrailles de la Terre à mesure que les ressources près de la surface s’épuisent. Ses exploitants, qui travaillent en première ligne, ont vite appris que les conditions de chaleur et June/July 2011 | 35

exploiter davantage, en toute sécurité les épisodes de coups de mine posent de graves problèmes pour le maintien de la sécurité aux grandes profondeurs. On note une activité sismique régulière dans la mine Kidd, selon Shannon Campbell, directeur des services d’ingénierie et d’exploitation minière. Habituellement, on gère la situation à l’aide de modèles informatiques et par des activités de surveillance, ainsi que par la fermeture préventive de zones à risque. Toutefois, en janvier 2009, la mine a été secouée par un séisme de 3,3 sur l’échelle de Richter, qui a causé des effondrements à plusieurs niveaux et mis à mal les armatures de renforcement de pointe qu’on avait utilisées sans problème jusqu’à ce jour. Se tournant vers le marché, les entreprises minières ont demandé des écrous à charge dynamique accrue pour consolider les armatures de renforcement en place. Avant ce jour, on n’avait modifié que les boulons coniques disponibles. Sous l’action d’une charge dynamique, ces boulons s’enfoncent dans un chemisage de résine, absorbant ainsi l’énergie sismique et préservant les boulons voisins. Toutefois, les boulons coniques modifiés sont difficiles à installer efficacement, selon M. Campbell. Pour cette raison, la mine Kidd soumet à l’essai plusieurs nouveaux types de boulons de renforcement résistant aux charges dynamiques, notamment les boulons D-Bolt et YIELD-LOK MD. M. Rocky Wu, vice-président des services d’ingénierie chez Jennmar Canada, explique que le boulon YIELD-LOK MD est un boulon d’acier robuste revêtu de polymère qui assure un bon renforcement dans des conditions de charge statique. Sous l’action d’une charge dynamique, ce boulon s’enfonce dans le revêtement de polymère, lui transférant ainsi son énergie. Sa performance est plus régulière et dépend moins du type de chemisage et de la taille du trou. Il peut être utilisé comme dispositif de renforcement principal dans des conditions de charge dynamique du sol. « Nous espérons que l’ajout de quelques boulons YIELDLOK MD supplémentaires nous permettra de réduire l’ensemble des structures de renforcement de 25 à 30 % par mètre de galerie d’accès, ce qui est énorme », déclare M. Campbell. Peu importe la robustesse des renforcements des galeries, les effectifs doivent être gardés au minimum dans les mines souterraines. Les principaux fabricants d’équipement offrent maintenant des technologies d’automatisation pour la télécommande des équipements, notamment le système AutoMine de Sandvik, le MineGem de Caterpillar et le chargeur-transporteur autonome d’Atlas Copco. Toutes ces solutions permettent aux exploitants de gérer de la surface tout un parc de véhicules souterrains; ces machines utilisent des systèmes à balayage laser pour naviguer dans les galeries, ainsi que pour des opérations autonomes de transport et de bennage. Toutefois, selon Roy Jakola, directeur des applications terrestres chez MDA, qui a développé l’algorithme de navigation pour Atlas Copco, elles ont un autre point 36 | CIM Magazine | Vol. 6, No. 4

commun. « Ces véhicules ne savent pas vraiment où ils sont dans la mine », dit-il. « Ils ne connaissent que leur trajectoire du point A au point B, qu’ils ont mémorisée, et ils peuvent refaire ce bout de chemin autant de fois qu’on veut. » L’équipe de développement de MDA, qui travaille à des projets innovateurs depuis bon nombre d’années, se prépare à commercialiser son système uGPS - des véhicules équipés de capteurs pouvant reconnaître tout lieu dans la mine et transmettre des données de positionnement grâce à une interface semblable à celle des systèmes GPS des véhicules automobiles. « Pour voyager des dizaines de kilomètres dans des galeries et revenir à un même point dûment identifié, il faut relever un grand nombre de défis de nature physique », explique M. Jakola. « Une fois éprouvé, ce système aura de nombreuses applications », ajoute-t-il. « Si vous saviez où se trouve chacun de vos véhicules n’importe où dans le réseau souterrain, vous commenceriez à penser comme un contrôleur aérien. Vous verriez probablement l’intérêt de mieux planifier le parcours de vos véhicules. »

Au fond du coffre de Davy Jones Des travaux d’exploration permettent de croire qu’il y a des gisements de métaux extrêmement concentrés au fond des océans, ce qui suscite l’intérêt d’entreprises minières sous-marines du monde entier. Cependant, une mine sur le fond marin entre un et trois kilomètres sous la surface présente des défis uniques. Pour les surmonter, il faut faire appel à un niveau élevé de collaboration entre les nombreux intervenants afin d’adapter les outils d’autres industries ou de les utiliser à des fins nouvelles. L’extraction et le transport du minerai à partir du fond marin nous confrontent à un ensemble de défis entièrement nouveaux. Des technologies de l’industrie pétrolière et gazière, ainsi que de l’exploitation minière à ciel ouvert, doivent être adaptées aux processus d’extraction et de transport des boues en milieu sous-marin. À cause de la nouveauté - et la difficulté – de ces techniques, la collaboration est un facteur clé pour l’exploration minière en eau profonde, selon Pieter Lucieer de IHC Merwede. « Tous les fournisseurs de technologie ont joint leurs forces pour soutenir les efforts des pionniers de l’exploration minière en eau profonde », déclare-t-il. « Des entreprises qui seront probablement bientôt en concurrence travaillent main dans la main pour résoudre des problèmes technologiques cruciaux. » Alors que l’exploration minière nous confronte à des défis croissants et que la demande en matériels et services s’accroît, ce modèle de collaboration s’avère très efficace. Les exploitants et les fournisseurs pourraient bien conclure qu’il s’agit là d’une approche des plus efficaces, non seulement pour l’exploration minière sous-marine, mais aussi pour les exploitations en surface et souterraines, que l’objectif soit d’accroître la production ou de garantir des conditions de travail sécuritaires. ICM

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

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

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

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

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

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

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

Courtesy of Copper Mountain Mining Corporation

featured project

The haul fleet at the Copper Mountain Mine is comprised of thirteen 240-tonne Komatsu trucks.

Present perfect for past producer by | Correy Baldwin

After a 15-year hiatus, commercial production at Copper Mountain in southern British Columbia will begin this summer. The renewal of the site with decades of mining history, represents a homecoming for Copper Mountain Mining Corporation’s Jim O’Rourke and a renaissance for the community of Princeton.

In October 2008, the management of Copper Mountain Mining Corporation (CMMC) announced the firm was restarting operations at the former Similco mine site, 20 kilometres southwest of the town of Princeton, in southern British Columbia. Today, the Copper Mountain project has moved 38 | CIM Magazine | Vol. 6, No. 4

into the pre-production mining phase and is on schedule for full production startup this summer. When CMMC took over the site, it was a returning home of sorts for CEO Jim O’Rourke. O’Rourke is former president of Princeton Mining Corp., which operated the Similco site

featured project through much of the 1990s after purchasing it from Newmont Mining Corporation in 1988. At the time, Newmont was shifting its focus to its gold assets in Nevada, and concluded the Similco Mine only had a year or two of life left. O’Rourke thought otherwise. “We had some ideas about extending its life,” he says. Princeton Mining Corp. went on to continue operations for another eight years. By the mid-1990s, however, copper prices had dropped to US$2,090 per tonne. Faced with falling metal prices and rising production costs, combined with an increasing need for additional capital reinvestment, the mine was forced to close in late 1996. It would be another 10 years before the economic climate would improve enough to start thinking about restarting operations. It was a long wait, given the resource base at the site. “We believed there was more copper there, we just had to prove it,” says O’Rourke.

Critical timing Today, copper prices have risen to over US$8,500 per tonne, and demand is outpacing supply. This is, in fact, an ideal time for the Copper Mountain project to be going into commercial production. “An economic downturn is a good time for a company to begin construction since you have access to cheaper steel and labour and lower metal prices,” explains Galina Meleger, manager of corporate communications for Copper Mountain. “This produced some cost savings for the project.” The site itself provided another major advantage to the Copper Mountain project: a significant amount of existing infrastructure remained on site from previous mining activity. This helped reduce startup costs (to a relatively low $438 million) and generally helped the construction phase go smoothly. Several previous permits were still in place as well, including a B.C. mines act permit, a waste management act permit, and a water license, but the company still had to get a permit amendment, which took a year and a half. “As a former mine site, Copper Mountain was able to take advantage of significant infrastructure in place that supported an open pit mine,” says Rod Shier, CFO of CMMC. “Both power and water were also available on site. The property is connected to a provincial power grid via a 138 KV transmission line. The previous mine operation used water pumped from the Similkameen River and the water license remains in good standing: ample to support an operation in the 25,000 to 50,000 tonnes-per-day range. And years of previous geological data allowed Copper Mountain to advance more quickly than most. One of the important benefits of being a past producer is that there are few surprises.” O’Rourke agrees. “It’s a great site. Right at the outset we had power, light, heat, water – everything available to us, unlike you would have at a greenfields site. And the town is so close that we’ve had no need for a camp.”

Top right: Exploration drilling continues on the property; bottom right: CMMC president and CEO Jim O'Rourke Courtesy of Copper Mountain Mining Corporation

June/July 2011 | 39

Courtesy of Copper Mountain Mining Corporation

featured project

Project construction began in 2009. Here, workers drill at the site of the primary crusher, which was completed in the spring of 2011.

Partnerships restored

Journey to a super pit

CMMC was also able to secure financial stability through its solid business relationship with Mitsubishi Materials Corporation, one of the world’s largest diversified materials companies, and a leader in metal smelting and refining. On August 19, 2009, Mitsubishi signed an agreement with CMMC to purchase a 25 per cent interest in the project for $28.75 million. In addition to the financing commitment, Mitsubishi agreed to purchase all of the copper concentrate produced by the mine. Although operations at one of Mitsubishi’s smelters in Japan were disrupted by the earthquake, the company has a second copper smelter in southern Japan and a third in Indonesia where the concentrate can be processed. The relationship with Mitsubishi goes back many years, explains O’Rourke. “When we bought Similco in 1988, I went to Japan and confirmed with Mitsubishi Material that we would honour all the concentrate agreements [that had existed with Newmont], and as it turned out, it was the start of a good relationship,” he says. Mitsubishi thus became Princeton's buyer for its ore. When the Similco mine closed and Mitsubishi identified a copper resource in northern B.C., they brought in O’Rourke’s company to develop and operate what became the Huckleberry Mine. It was only natural, then, that the relationship would continue with the Copper Mountain project. After all, it was apparent that the project would be a solid investment.

After purchasing the site in late 2006, CMMC began one of British Columbia’s largest drill exploration programs, with the goal of expanding the Indicated Resource by exploring the area between the three existing pits on site. The hope was that the three pits could be merged into a super pit. The exploration program was a great success, says O’Rourke. “In January 2007, we had diamond drills on the site and that year, we drilled 40,000 metres. That confirmed the continuity of mineralization between the pits, which was a major breakthrough for us. On that basis, we did the preliminary economic assessment, which was positive, and that allowed us to go right into a feasibility study in the beginning of 2008. At the same time, we did another 60,000 metres of drilling, which increased our resources by about 45 per cent to a total of five billion pounds of copper.” In total, 106,000 metres were drilled, and in April 2009, CMMC reported an updated resource of 358,050,000 tons (325, 213 kilotonnes) containing 2.9 billion pounds (1.32 billion kilograms of copper) [Measured and Indicated Resources of 256,610,000 tons (232,792 kilotonnes) @0.43% Cu, and Inferred Resources of 101,440,000 tons (92,025 kilotonnes) @0.34% Cu]. “The process for creating the super pit involves mining a series of ‘push-backs’ of the existing pits, progressively targeting deeper ore zones with higher strip ratios,” O’Rourke

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

featured project explains. “The advantage of mining this way allows upfront strip ratios to be reduced and higher profit margin ore to be targeted, thus maximizing the net present value of the project. The challenges arise as a result of having to mine around pre-existing pits with respect to mining widths and access. Careful consideration needs to be given to the design of the push-backs to ensure that future development is not compromised.” The drill exploration program only covered a small area of the 7,200-hectare property, and CMMC is planning to continue exploring with an aggressive drilling campaign. Copper Mountain will produce approximately 48,000 tonnes of copper a year for the first 12 years. With a projected 17-year life, overall copper production of the mine is estimated at 682,000 tonnes, with gold credits at 450,000 ounces and silver credits at 4.5 million ounces. Once fully operational, the project will make use of a fleet of thirteen 240-tonne capacity Komatsu haul trucks, which will truck ore from the super pit directly to a 1.5-metre primary crusher. Processing will be completed on site in a 35,000 tonnes-per-day mill. The copper concentrate will then be trucked to the port of Vancouver and shipped to Japan for treatment and refining by Mitsubishi Materials. Now, after nearly 15 years of lying dormant, Copper Mountain has breathed new life into the area by building a new mine on an old mine site.

A good environmental legacy According to Peter Holbek, vice-president of exploration, “no significant environmental issues were identified when the mine previously closed, and ongoing reclamation has recovered some of the previously disturbed areas.” CMMC is also able to use the same tailings management facility as was used previously. “Most of the water used in the plant is reclaimed from the tailings management facility, additional ‘make-up’ water is taken from the Similkameen River,” Holbek adds. “About 80 per cent of water needs are met through recycling.”

ers who previously worked at Similco are returning to Princeton. By the time Copper Mountain moves into full production, the project will provide 270 jobs through direct employment, and spin-off jobs should be at least double that, according to the company. CMMC is also working with local Aboriginal communities, and signed an impact benefit agreement with the Upper Similkameen Indian Band (USIB) in July 2010. The agreement sets out, among other things, training and employment opportunities for USIB members. The economic spin-offs of the Copper Mountain Mine will be felt much further than just the Princeton area: the mine will be a boost to not only British Columbia, but Canada as well. Annual global consumption of copper is 18.3 million tonnes, while production from Canadian mines in 2009 was 500,000 tonnes, meeting only 3.3 per cent of global demand. The Copper Mountain project, which is set to become the third largest copper mine in Canada in 2011, will increase Canadian annual production of copper by almost 10 per cent, says Meleger. The Copper Mountain project has been aided by a favourable economic climate, an ideal location with existing infrastructure and solid business relationships. And yet when O’Rourke was asked during a talk in Vancouver about the key components to successfully starting up a venture of this size, he responded: “People, people and people.”“We were very fortunate,” he says. “We’ve managed to assemble an excellent team.” CIM

A local success

Courtesy of Copper Mountain Mining Corporation

CMMC’s announcement in 2008 that the site would reopen was welcome news to residents of the Princeton area. The closing of the Similco Mine in 1996 was difficult for the town, with job losses and the subsequent dependence on a single industry – forestry. It put the town in a precarious position. Today Princeton is booming again. The Copper Mountain Mine is already re-invigorating the economic life of the area and promises to bring economic growth for 20 years. “We’ve managed to hire most of our people from the town and the surrounding area.” says O’Rourke. “The mayor has been extremely supportive. He’s really bent over backwards to do whatever he can to help us out on the project.” Many workJune/July 2011 | 41

projet en vedette

La flotte de camions de transport comprend 13 camions de 240 tonnes.

Un moment parfait pour un ancien producteur

En octobre 2008, la direction de Copper Mountain Mining Corporation (CMMC) a annoncé que la société allait reprendre l’exploitation de l’ancien complexe minier de Similco, 20 kilomètres au sud-ouest de la ville de Princeton, dans le sud de la Colombie-Britannique. Aujourd’hui, le projet de Copper Mountain est rendu à l’étape de préproduction, et le complexe devrait être pleinement opérationnel d’ici l’été, comme prévu. Quand CMMC a pris le contrôle du complexe, cela a été un peu comme un retour au bercail pour le chef de la direction, Jim O’Rourke. M. O’Rourke est l’ancien président de Princeton Mining Corp., qui a exploité le complexe de Similco pendant une bonne partie des années 90 après l’avoir acheté de Newmont Mining Corporation en 1988. Vers le milieu des années 90, le prix du cuivre a chuté à 2 090 $ US la tonne. En raison de la dégringolade du prix des métaux et de la hausse des coûts de production, ainsi que d’un besoin croissant en matière de réinvestissement, la mine a donc été forcée de fermer à la fin de 1996.

Un moment bien choisi À l’heure actuelle, le prix du cuivre a grimpé à plus de 8 500 $ US la tonne, et la demande dépasse l’offre. Il s’agit donc d’un moment idéal pour lancer la production commerciale du projet de Copper Mountain. « Un ralentissement économique est une période propice au début de travaux de construction pour une entreprise, car le coût de l’acier, des métaux et de la main d’œuvre est 42 | CIM Magazine | Vol. 6, No. 4

moins élevé », a affirmé Galina Meleger, responsable, Communications d’entreprise, Copper Mountain. « Cela se traduit par des économies considérables pour le projet. » L’infrastructure existante associée à l’exploitation minière précédente avait été laissée sur le site. Cela a contribué à réduire les frais de démarrage (lesquels se sont chiffrés à un total relativement peu élevé de 438 millions de dollars) tout en aidant à ce que l’étape de construction se déroule sans heurt, dans l’ensemble. De nombreux anciens permis étaient encore en vigueur, notamment un permis en vertu de la loi Mines Act de la Colombie-Britannique, un permis conforme à la loi Waste Management Act, et un permis relatif à l’eau. « Comme il s’agit d’un ancien complexe minier, la mine Copper Mountain profite d’une importante infrastructure actuellement en place soutenant l’exploitation minière à ciel ouvert », a affirmé Rod Shier, directeur des finances de CMMC. « Le site est également approvisionné en électricité et en eau. La propriété est reliée à un réseau électrique provincial par l’intermédiaire d’une ligne de transport d’énergie de 138 kV. L’ancien complexe minier utilisait de l’eau pompée dans la rivière Similkameen, et le permis d’exploitation hydraulique, qui demeure en vigueur, permettra de soutenir les activités minières à raison de 25 000 à 50 000 tonnes par jour. Par ailleurs, les données géologiques des années précédentes ont permis à Copper Mountain de progresser plus rapidement que la normale. Un des avantages importants liés au fait d’être un ancien producteur est qu’il n’y a que peu de surprises. »

projet en vedette Partenariats rétablis Le 19 août 2009, Mitsubishi a signé une entente avec CMMC pour l’achat d’une participation de 25 % dans le projet, en contrepartie de 28,75 millions de dollars, et pour l’achat de la totalité du concentré de cuivre produit par la mine. La relation avec Mitsubishi remonte à de nombreuses années, a expliqué M. O’Rourke. « Quand nous avons acheté Similco en 1988, je suis allé au Japon et j’ai confirmé à Mitsubishi Material que nous respecterions toutes les ententes relatives au concentré [qui existaient entre cette société et Newmont] et, en fin de compte, cela a été le début d’une bonne relation », a-t-il poursuivi.

Sur la voie d’une méga-mine Peu de temps après l’achat du complexe en 2006, CMMC a commencé un programme d’exploration qui a donné d’excellents résultats, a précisé M. O’Rourke. « En janvier 2007 nous comptions des foreuses au diamant sur le site, et cette année-là, nous avons foré sur 40 000 mètres. Ces forages ont confirmé la continuité de la minéralisation entre les fosses, ce qui a représenté une importante percée pour nous. En nous fondant sur ces données, nous avons effectué une évaluation économique préliminaire, laquelle a été positive, ce qui nous a permis de passer directement à une étude de faisabilité au début de 2008. Parallèlement, nous avons effectué 60 000 mètres de forages supplémentaires, ce qui a accru nos ressources de quelque 45 %. » Au total, 106 000 mètres ont été forés et, en avril 2009, CMMC a enregistré des ressources mises à jour de 358 050 000 tonnes (325 213 kilotonnes) contenant 2,9 milliards de livres (1,32 milliard de kilogrammes) de cuivre [ressources mesurées et indiquées de 256 610 000 tonnes (232 792 kilotonnes) à une teneur de 0,43 % de cuivre, et des ressources présumées de 101 440 000 tonnes (92 025 kilotonnes) à une teneur de 0,34 % de cuivre]. M. O’Rourke a expliqué : « Le processus pour la création d’une méga-mine comprend le forage d’une série d’approfondissements des fosses existantes ciblant des zones de minéraux plus profondes avec des ratios de recouvrement plus élevés. L’avantage relatif à une telle méthode d’exploitation minière est que cela permet de réduire les ratios de recouvrement initiaux et de cibler du minerai au taux de rentabilité plus élevé pour maximiser la valeur nette actuelle du projet. Le défi consiste à forer autour des fosses existantes, en tenant compte des largeurs de forage et de l’accès. Les activités d’approfondissement doivent être étudiées avec soin pour ne pas nuire à une exploitation future. » Le programme de forage d’exploration n’a couvert qu’une petite partie de la propriété de 7 200 hectares, et CMMC prévoit poursuivre son exploration dans le cadre d’une campagne de forage dynamique.

Copper Mountain produira environ 48 000 tonnes de cuivre par année pour les douze premières années. La production dans le cadre de ce projet, laquelle s’étendra sur une durée prévue de 17 ans, est estimée à 682 000 tonnes, la quantité d’or à 450 000 onces et la quantité d’argent à 4,5 millions d’onces. Dans le cadre de ce projet, on utilisera un parc de camions Komatsu d’une capacité de 13 240 tonnes, qui transporteront le minerai de la méga-mine jusqu’à un concasseur principal de 1,5 mètre. Le traitement sera effectué sur les lieux, dans un broyeur d’une capacité de 35 000 tonnes par jour. Le concentré de cuivre sera ensuite expédié au Japon par le port de Vancouver. Il s’est écoulé près de 15 ans depuis la dernière fois où le site a été exploité. CMMC a bâti une nouvelle mine sur un ancien site minier.

Un succès local En 2008, CMMC a annoncé que le site allait rouvrir, ce qui a été accueilli favorablement par les résidents de la région de Princeton. La fermeture de la mine de Similco en 1996 a été difficile pour la ville, et les pertes d’emploi et la dépendance subséquente à l’égard d’une seule industrie (l’industrie forestière) ont laissé la ville en situation précaire. À l’heure actuelle, Princeton est de nouveau florissante. La mine de Copper Mountain insuffle déjà une vie nouvelle à la région, et promet de stimuler sa croissance économique pendant vingt ans. « Nous avons réussi à embaucher la majeure partie de nos employés en ville et dans la région », a indiqué M. O’Rourke. « Le maire a été extrêmement coopératif. Il a déployé des efforts hors du commun pour faire tout ce qu’il pouvait pour nous aider dans le cadre de ce projet. » De nombreux travailleurs qui étaient employés par Similco par le passé sont revenus à Princeton. Quand Copper Mountain sera en pleine production, le projet fournira 270 emplois directs et au moins le double d’emplois indirects, selon la société. CMMC travaille également avec les communautés autochtones locales, et elle a signé une entente sur les répercussions et les avantages avec la bande de la haute Similkameen en juillet 2010. L’entente établit entre autres des occasions de formation et d’emplois pour les membres de la bande. La mine de Copper Mountain a profité d’une conjoncture économique favorable, d’un emplacement idéal déjà doté d’une infrastructure, et de solides relations d’affaires. Toutefois, quand M. O’Rourke s’est fait demander, dans le cadre d’une discussion à Vancouver, quels étaient les éléments clés pour réussir le lancement d’un projet de cette envergure, il a déclaré : « Les gens, les gens et les gens. » « Nous avons été très privilégiés de pouvoir réunir une excellente équipe », a-t-il conclu. ICM June/July 2011 | 43

commodity focus copper

THE BAROMETER OF INDUSTRY by CORREY BALDWIN

Courtesy of ECI

Playing catch-up

opper has played an integral role in human civilization, beginning with the copper tools that ushered us out of the Stone Age and then moving forward with the discovery of bronze, the copper-tin alloy that gave us the Bronze Age. Highly malleable, copper is resistant to corrosion, efficient at conducting heat and electricity, and excellent at alloying with other metals, including zinc (to form brass), tin (to form bronze) and nickel. Copper is also highly recyclable. Industrial innovation has led to the introduction of copper in an impressive number of domestic, industrial and hightechnology applications and products such as electronics, electrical systems, telecommunications systems, heating and cooling systems, building construction, plumbing, transportation, industrial machinery and equipment, and household appliances.

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

Copper’s fundamental place in basic construction and core infrastructure has made it a key indicator of economic growth. When economies grow, nations build. The 2008 economic recession hammered the construction industry, which sent copper prices into a tailspin. As global demand plummeted, mining projects around the world were put on hold and production scaled back. However, demand for copper has returned with the global economic recovery, so much so that a supply deficit reached 286,000 tonnes in 2010. “We are in a position of deficit,” says Neil Buxton, managing director at GFMS, a metals research consultancy. “This year, we do not expect production to grow faster than consumption. Our numbers are suggesting that, if anything, the deficit will increase. Last year was exceptional because of the recovery, and we see healthy demand growth for the next couple of years.” Forecasts see this supply crunch continuing, reaching a possible deficit of 444,000 tonnes in 2011 and stretching into 2012. Most of the growing demand has come from emerging economies such as China, India and Brazil. China, in particular, has become a major presence, overtaking the United States in 2002 as the world’s top consumer of copper. From 1999 to 2007, China tripled its annual refined copper consumption and in 2010, imported 6.47 Mt of copper concentrate, nearly 40 per cent of the global copper demand. This deficit has prices soaring. Copper prices rose 260 per cent over the past two years, reaching a high of US$10,190 per tonne in February. Forecasts for copper demand are strong, although the market remains jumpy. Investors and traders are keeping an eye on China which, in an attempt to contain inflation and cool growth, has begun tightening its monetary policy. Concerns remain about further debt woes in Europe a year after the European sovereign debt crisis tripped up global recovery in 2010. More recently, the armed conflict in oil-rich Libya has sent oil prices up, stalling the global economy and suppressing demand for copper. There are also natural disasters to contend with. The massive earthquake and tsunami that hit Japan in March of this year paralyzed much of the nation’s business and industry, although analysts predict the coming reconstruction to increase copper demand in the long run. This demand for copper is encouraging global producers to increase output, and to bring new projects into production. “There is a push to expand a number of existing mines, although that takes time,” says Michael Chender,

commodity focus copper

MINE PRODUCTION (thousands of tonnes) 2009

2010 (est)

Reserves

Chile

5,390

5,520

150,000

Peru

1,275

1,285

90,000

995

1,150

30,000

1,180

1,120

35,000

Australia

854

900

80,000

Indonesia

996

840

30,000

Zambia

697

770

20,000

Russia

725

750

30,000

Canada

491

480

8,000

Poland

439

430

26,000

Kazakhstan

390

400

18,000

Mexico

238

230

38,000

2,190

2,300

80,000

China United States

Other countries

Source: USGS

CEO of Metals Economics Group. “All projects that were put on hold during the brief recession for price reasons have been restarted.” There has also been a large increase in exploration. “Copper exploration budgets increased 40 per cent in 2010 over 2009,” says Chender. However, it will take a while to bring all of this new copper into the market. “There is a strong pipeline of projects and

we do see mine production growth accelerating over the next few years to eventually see the market turn to surplus,” says Buxton. “But our latest forecasts only see this happening in 2014.” Andrew Harding, chief executive of Rio Tinto’s copper unit, agrees. “Given the current market fundamentals of strong demand and restricted supply from declining ore grades, we expect a deficit for 2011, and most likely for 2012,” he says. “We don’t see the deficit easing until significant projects like Oyu Tolgoi start commercial production.” Rio Tinto secured management of Oyu Tolgoi, a goldcopper mine in Mongolia, in December 2010. “Oyu Tolgoi will be a top-five copper producer when it reaches full production,” says Harding. Currently, the project is scheduled to begin commercial production in the first half of 2013. The first major copper mine to come into production since the recession is Antofagasta Minerals’ Esperanza Mine in Chile, inaugurated in April. Antofagasta is also expanding its Los Pelambres Mine in Chile, and hopes to double its copper output by 2020.

El cobre World copper reserves are currently placed at around 630 Mt, with total land-based world copper resources estimated in excess of three billion tonnes. Much of this is found in the vast porphyry deposits in the Andean Mountains of South America, a region that produces the lion’s share of the world’s copper. Chile, the world’s largest producer, is well-positioned. The country contains 150 Mt of reserves, is home to half of the world’s 10 biggest copper mines, and is responsible for producing 34 per cent of the estimated global output in 2010. CIM

• MINING • MINERALS • METALS • MATERIALS mININg fOR sOCIEtY

M4S

An anti-microbial asset Copper is known as an industrial metal, but it also excels as an antibacterial material. It is already used for some frequently touched surfaces, such as brass doorknobs, although researchers have begun looking at more extensive applications for the metal. Copper’s ability to reduce the transfer of germs and disease could help see its adoption throughout the healthcare industry, as well as in homes, on public transportation and in other public spaces.

June/July 2011 | 45

mine closure

Re-defining sustainability Better planning promises better pit lake outcomes by Clint McCullough Companies that build a sound reputation for environmental stewardship will find it easier to attract investment capital and debt financing, as well as be in better position to close their projects and sell on their properties once mining is completed. They may also find it easier to get regulatory approval on their project by considering this key element of closure upfront. Questions about post-closure are becoming more prominent as mining seeks deeper deposits and lower grades of ore. Rather than the small, shallow pits that were more common in previous decades and centuries, the sheer size of today’s open pit mines – both in width and depth – creates post-closure challenges of a whole new order. Pit lakes are an increasingly large part of the mining industry’s legacy around the world. Much of the focus on post-closure remediation is on limiting acid mine drainage (AMD) from tailings and mine waste rock. However, even after these waste facilities have been stabilized and revegetated, the pit lake often remains as one of the lasting legacies of the mine. As a result, developing better closure outcomes for pit lakes is becoming an important issue for mining companies. Additionally, mining now extends into locations that were previously considered too challenging, particularly the drier areas of the world, where water issues come to the forefront. In some of these regions, evaporation of the water in pit lakes can represent a substantial abstraction of the total water resources in the area. In many parts of the world, pit lakes have no natural counterparts. For example, in Western Australia most natural lakes are shallow and seasonal. Pit lakes may be deep and often persist year-round; therefore, they may play a significant role in contributing to a novel post-mining environment. Good mining practice includes deliberately designing and developing a 46 | CIM Magazine | Vol. 6, No. 4

positive outcome for these new landscapes from an environmental, social and economic point of view.

Pit lake pros and cons Pit lakes can produce many effects that are negative, including: • In arid regions, evaporation may cause a rising concentration of salts and metals to the point that the water becomes dangerous to wildlife or livestock that drink it. • Where acid rock drainage is present, acidic water may cause environmental risk to wildlife. • Metals, salts and acid in the water may contaminate groundwater, or overflow may contaminate surface water. • The steep sides of the pit pose a risk of potential collapse and falls by animals and people. • Pit lakes may support waterborne disease vectors, such as mosquitoes. Yet, it is often possible for pit lakes to provide positive outcomes through beneficial end uses such as: • A water source for wildlife, including waterfowl, at a time when many wetlands are in decline. • A habitat for game and traditional hunting species, such as fish, so the lake becomes useful for sport, subsistence or even tourist fishing. • A recreational waterbody, for activities such as swimming and boating, for example. • A water source for irrigation of surrounding forestry, crops, livestock or aquaculture. Water in a pit lake may also be useful for other mining operations, either as the pit is filling or following production. A backfilled open pit mine can be a repository for waste rock and,

Clint McCullough

mine closure

A pit lake at the now-closed Black Diamond coal mine in Western Australia.

if locked away from air and water, less prone to generate acid mine drainage. It can also be a final repository for other types of acid-generating and mine waste materials, such as heap leach pads, provided this is a sound environmental practice.

Planning for closure must include the pit lake With the concept of planning for closure now frequently considered by mining companies at initial conceptual stages, it is important to consider making the eventual pit lake a positive part of the closed mine. This includes predicting the eventual quality of the water that will be in the lake by considering factors such as the mineralogy of the surrounding soil and rocks, the quality and flow rate of local groundwater, and rates of precipitation and evaporation. Plans can then incorporate mitigation steps to achieve good water quality by designing the pit lake around these constraints. In some cases, engineered aquatic habitats, such as lakes, can be included in the closure plans. These environmental factors may help improve water quality and will also help to provide some environmental benefit as habitat for fauna and flora. There can never be a one-size-fits-all solution for pit lakes. A location close to inhabited areas will be more viable as a commercial or recreational site than will one in a remote area. Some can be converted into highly beneficial use, while others may require more investment in remediation and post-closure monitoring to ensure risks are minimized instead.

representative ecosystems can be restored in these new water bodies. Predictive geochemical modelling is an important tool when developing post-closure plans for the mine pit, including its lake. More work is needed to adapt current models – designed for use in natural lakes – for use in a pit lake environment, and to use them as a means to learn what key obstacles to water quality may need to be remedied. The goal of good mining management is to operate sustainably by minimizing risk and maximizing both short- and long-term benefits for all stakeholders. This goal also holds for sustainably closing components of the final mining landform, including pit lakes. Not all negative effects from pit lakes can always be removed or mitigated. However, mining companies that mostly seek just to reduce their liability post-closure may be missing opportunities to build positive relations with the community, regulators, government authorities and other stakeholders through investing in the best possible outcomes for their pit lakes at closure. CIM This article is based on a presentation the author will make at the Mine Closure 2011 conference to be held September 18 to 21, 2011 in Lake Louise, Alberta.

“There can never be a one-size-fits-all solution for pit lakes.”

Further study needed One of the difficulties mining companies face regarding pit lakes and closure is that there are few relevant standards guiding the required quality of the water in the lake. Most of the standards available are for natural lakes, and pit lakes will expectedly have different ranges for many water quality parameters. Pit lakes also tend to have only limited, if any, ecological processes active in them. Therefore, one area for further study is the degree that regionally

author

Clint McCullough is a principal environmental scientist in the Perth, Australia, office of Golder Associates Pty Ltd., as well as a senior research fellow at Edith Cowan University, where he is a principal of the internationally recognized Mine Water and Environment Research Centre. June/July 2011 | 47

COLUMNS

| supply side

Mining marketers: prepare for the third super cycle Jon Baird

Mining is a cyclical industry. Mined commodity prices go up and down, and the fortunes of mining suppliers follow. Over the last 40 years, we have had four boom-and-bust cycles in our industry. While the average period was 10 years, the periods actually varied from six to 12 years. Not long ago I was writing articles on what marketers could do to mitigate falling mining markets (CIM Magazine, February 2010, p. 64). Given the situation, I advised that cutting back on marketing during slow times would lead to a loss of market share when markets picked up. However, now that we are on the rising part

of the cycle, it is timely to strategize for expanding markets. As it turned out, the recent recession was relatively short for mining suppliers, and many firms went into it with healthy backlogs. Starting from a low in February 2009, mined commodity prices have recovered steadily and are now at pre-recession record levels.

Super cycles Standard Chartered Bank, a British financial services company, describes a super cycle as “a period of historically high global growth, lasting a generation or more, driven by increas-

+DYL QJ FRQI L GHQFH L Q \RXU O DERU DW RU \ PHDQV \RXU FXVW RPHU V ZL O O KDYH FRQI L GHQFH L Q \RX 1R EXVL QHVV FDQ DI I RU G PL VW DNHV ZKHQ L W FRPHV W R W KH W HVW L QJ RI W KHL U SU RGXFW /L PL W \RXU U L VN E\ FKRRVL QJ D O DERU DW RU \ DFFU HGL W HG E\ W KH 6W DQGDU GV &RXQFL O RI &DQDGD

ZZZ VFF FD 48 | CIM Magazine | Vol. 6, No. 4

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

ing trade, high rates of investment, urbanization and technological innovation, first seen in high catch-up growth rates across the emerging world.” The first super cycle to take place in modern times occurred between 1870 and 1913. The second followed World War II, continuing to the early 1970s. And, according to Standard Chartered Bank, the third super cycle is now happening. The fundamental driver in demand of mined commodities is not so much manufacturing as it is urbanization. Buildings and their contents “lock in” aggregates, cement, steel, copper, aluminum and many of the products of

Celebrating a milestone anniversary the mining industry. In the first super cycle, our North American and European great grandparents were moving off the farm to take up jobs in cities. After World War II, much rebuilding was necessary as was the restocking of metals consumed during the war. Combined, China and India account for a third of the world’s population, and both are now urbanizing rapidly. Standard Chartered Bank believes that the Chinese economy will grow at an annual rate of 6.9 per cent over the next 20 years, while the Indian economy will grow by 9.3 per cent. A huge amount of urbanization will be needed to house workers who move from farms to cities. In addition, natural disasters around the globe, including floods, landslides, earthquakes and tsunamis, which seem to be increasing in number, would require substantial rebuilding. While Standard Chartered Bank sees the long-term trend as growing upwards, this does not mean that growth will be continuous, as the business cycle still does exist. In the near term, business is on the rise, with supply deficits foreseen in commodities, particularly copper and coal. So what should mining supply marketers do? First of all, review your corporate strategies. Perhaps it is time for a new strategic planning session to set some new goals. Then, ensure that your marketing plans and budgets are appropriate for you to meet your goals. Remember the shortage of skilled mining people in the 2007-2008 boom? This problem has not disappeared and it is expected to become worse. Perhaps you should be bullish in your hiring plans, particularly for technical sales people for international markets. Planning is important: as the saying goes, “If you don’t know where you’re going, any road will take you there.” CIM

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

By Correy Baldwin This year marks CAMESE’s (Canadian Association of Mining Equipment and Services for Export) 30th anniversary. The trade association has become a major presence within Canadian industry, having been involved in export marketing promotion for the Canadian mining sector for three decades. Managing director Jon Baird is proud of his association’s role. “In Canada, The intrepid founders of CAMESE on the tarmac in Lima, Peru, there are very few national in 1980. In the front row (L to R): Jon Baird, Scintrex (at the time); Peter Klopcic, Government of Ontario; Jean-Yves Roy, export trade associations by Jarvis Clark; unknown company; Frank Aimone, Heath & sector,” he says, “so really, Sherwood. In the back, left to right: Vic Defago, Hepburn; we are very unique. There unknown; Bob Parsons, Sr. JKS Smit. are all kinds of sectoral associations, but they don’t do export trade 100 per cent like we do.” Much of this is done through CAMESE’s presence at trade exhibitions, particularly through organizing Canadian pavilions at these shows – around 10 every year outside Canada. These pavilions generate substantial traffic for Canadian companies and, in the words of Baird, assure that Canada makes a splash. CAMESE’s website boasts a searchable database of the more than 300 organizations and companies that the association represents. It also publishes information on their membership in their annual Compendium of Canadian Mining Suppliers. The idea of a trade association began during an Ontario mining sales mission to Chile and Peru in 1980 (the Ontario trade association OMESE was incorporated in 1981). “Five years later,” explains Baird, “they realized that there was benefit in doing things not just for one province but for all of Canada.” That’s when CAMESE was formed. “When I joined in 1993, it was just me and a part-time receptionist,” he recalls. “CAMESE was broke. It had 28 members but half of them hadn’t paid.” Reviving the association would be a challenge, but Baird had been hired for the strength of his vision. “My target was to get it up to 100 members within a year. I spent a couple of months getting the 28 members onside and then virtually a year to the day later, we had our 100th member.” It took a few more years, but eventually companies were calling him up, wanting to join. The association’s mission remains straightforward. “CAMESE assists its member companies in marketing to the mining industry. We want the world to believe that Canadians are wonderful suppliers to the mining industry, and we bring in business opportunities for our members.” “We attract companies that serve the mining industry and that are looking for larger markets,” says Baird, who explains that it is his job to convince those companies that “a little bit of effort put into a collective effort pays off.” After 18 years with the association, Baird has grown accustomed to the boomand-bust cycle of the market. “What we do for our member companies in the down times is arguably more important than during the times when they’re really busy.” Baird expects good things for the years ahead. “Certainly the mining industry has a very strong future, as does Canada as a leader in the mining industry, which is what we are. Mining technology has progressed tremendously in the last 30 years, and over the next 30 years I have no doubt that will continue.” June /July 2011 | 49

COLUMNS

| MAC economic commentary

Federal Budget 2011 and the mining industry Paul Stothart Finance Minister Jim Flaherty tabled federal Budget 2011 on March 22 – the sixth budget delivered by the Conservative government – at a time when the Canadian resource economy was performing strongly. Mineral prices continued to be driven to strong levels by Chinese demand, and oil prices were escalating due to global economic uncertainty and turmoil in

the Middle East. Canadian employment numbers had returned to pre-recession levels and the budget projected significant increases in tax and other revenues. In the lead-up to the budget, the opposition Liberals had indicated their lack of confidence in the government, while the Bloc Quebecois had demanded $2.2 billion for Quebec as

SAVE THE DATE RÉSERVEZ LA DATE May 6 to 9, 2012

•

6 au 9 May 2012

www.cim.org/edmonton2012 50 | CIM Magazine | Vol. 6, No. 4

HST compensation and the NDP sought support for seniors and other programs. The budget was judged by the parties to be lacking in these and other respects. The non-confidence contempt of Parliament motions presented the same week added a further backdrop to the decision by the opposition parties to oppose the budget. The Conservative government was defeated on the contempt-of-Parliament motion, although subsequently returned to Ottawa with a strong majority mandate in the May 2 federal election. While the March 22 budget was not passed, all elements of the budget were re-introduced when the government tabled its new federal budget on June 6. The growth projections were also the same as those in the earlier budget. The main areas that were revised do not relate to business, rather they include plans to phase out the per-vote public support of federal parties, and an allocation of $2.2 billion in HST compensation to Quebec. The measures that are most relevant to the mining sector in Budget 2012, include the following: • The temporary 15 per cent Mineral Exploration Tax Credit is an incentive available to individuals who invest in flow-through shares that are used to finance mineral exploration. The budget proposed to extend the credit for an additional year, until March 31, 2012. The structure of this tool means that funds raised with the credit during the first three months of 2012 can support eligible exploration until the end of 2013. • Two years ago, the federal Crown corporation, Export Development Canada, was granted powers to provide financing support to Canadian exporters in the domestic market. The budget extended these

•

temporary domestic financing powers until March 2012 while the government reviews EDC’s regulatory framework. The budget set aside $150 million towards construction of an allseason road between Inuvik and Tuktoyaktuk to effectively complete the Dempster Highway. This project has been identified as a priority by the Northwest Territories government and would contribute to economic and social development in the North. Budget 2011 proposed to “eliminate fossil fuel subsidies” by reducing the 30 per cent deduction rates for intangible capital expenses in oil sands projects to align them with the 10 per cent rate already applicable in the conventional oil and gas sector. The budget also aligned deductibility rates for preproduction development expenses of oil sands mining projects with the 30 per cent rate that already exists for in situ projects. This measure also applies to pre-production development expenses in respect to oil shale mines. The budget outlined an India Engagement Strategy that builds around ongoing free trade negotiations to include a branding strategy, market development support, a research centre and academic networks. Ridley Terminals, a Crown corporation operating a bulk materials handling terminal in Prince Rupert, B.C., has significantly increased its business volumes in recent years and is approaching capacity. Budget 2011 formalized the authority for the terminal to borrow from capital

markets so it can proceed with facility expansion plans. • Budget 2011 renewed funding ($870 million over two years) for the government’s existing clean air agenda, which includes support for regulatory activities in climate change, air quality, energy efficiency and energy retrofit, among other activities. The budget also provided $200 million over two years for renewal of the Chemicals Management Plan and $68 million to remediate contaminated sites for which the government is responsible. • The budget did not reverse or halt the schedule of corporate income tax reductions, which in effect means that the corporate tax rate would continue from 16.5 per cent at present towards a 15 per cent level by 2012. In MAC’s view, these measures enhance what is a relatively positive mining investment environment in Canada. However, we also believe the federal government should start to address the federal deficit situation. Past decades have shown that weaning governments off debt financing can be a difficult political task.The last time Canada entered a deficit situation, it took 22 years to return to a balanced budget and several more years to restore the country’s debt-to-GDP ratio to a position that instilled confidence on the part of private investors. Given the looming challenge of an aging society, with increased demands on healthcare and other services, the government must move strongly to avoid a repeat of this situation. CIM

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

CALENDAR CALENDRIER CIM • ICM Sudbury Branch Rudolph Kneer Memorial Golf Tourney August 7 | Sudbury, ON Contact: Christine Bertoli Email: cbertoli@xstratanickel.ca Toronto Branch Frank Grieco Golf Day August 31 | Toronto, ON Contact: Rick Hutson Email: rick@cjstafford.com 14th Annual Industry Learning Seminar Safe Healthy Mining — Innovations: people & practice September 23-24 | Edmonton, AB Contact: Tanya Coucke Email: tanya.coucke@ualberta.ca COM 2011 — Conference of Metallurgists • Congrès des métallurgistes October 2-5 | Montreal, QC Contact: Brigitte Farah Email: bfarah@cim.org www.metsoc.org/com2011 World Gold 2011 October 2-5 | Montreal, QC Contact: Brigitte Farah Email: bfarah@cim.org www.metsoc.org/com2011/ world-gold.asp MEMO 2011 — The Maintenance Engineering/Mine Operators’ Conference • Colloque sur l’ingénierie de maintenance et l’exploitation minière November 6-9 |Saskatoon, SK Contact: Chantal Murphy Email: cmurphy@cim.org www.cim.org/memo2011 Symposium 2011 sur l’environnement et les mines • Symposium 2011 on Mines and the Environment 6-9 novembre | Rouyn-Noranda, QC Responsable: Chantal Murphy Courriel: cmurphy@cim.org www.cim.org/memo2011 June /July 2011 | 51

COLUMNS

| eye on business

What to do when a workplace injury occurs William Duvall Worksite safety is a top concern for mining employers and workers alike. However, despite best efforts, unfortunately mining accidents do occur. In such circumstances, an employer should take a number of steps to deal with the consequences of any workplace injuries that have resulted from an accident. In anticipation of the possibility of an accident and injury, an employer should have protocols in place, and employees should be familiar with such protocols, so as to ensure that what needs to be done is done, quickly and efficiently. 1. Report the injury to the workers’ compensation board If a worker is injured on the job, he/she should seek immediate medical attention, if required, and report the injury to the employer as soon as possible. Next, the worker should report the injury to the relevant workers’ compensation board by filling out its standardized worker’s incident/injury report form. Once the employer becomes aware of the reported injury, the employer should fill out the workers’ compensation board’s standardized employer’s incident injury report form. Employers who fail to report may be subject to administrative penalties. In addition, depending on the scope of the actual accident, the employer may be required to report the accident to whatever additional insurance providers may be providing relevant coverage. For example, this may include reporting to the employer’s property, liability and/or automobile insurance provider(s). 2. Investigate the events relating to the injury Often when there has been a workplace accident resulting in an injury, the workers’ compensation board requires the employer to fill out additional forms including, for example, 52 | CIM Magazine | Vol. 6, No. 4

first aid reports, incident investigation reports and accident/witness statements. Accordingly, employers should, as soon as reasonably possible, conduct an investigation into the circumstances leading up to the injury itself. This employer investigation should include, if possible, interviewing the injured worker(s), interviewing witnesses to the accident, interviewing the employer’s first aid provider (if one was involved), and examining any physical evidence that may have played a role in the accident (for example, a vehicle or a piece of equipment). If possible, depending on the severity of the injury, all relevant physical evidence should remain in secured custody until all investigations are completed. 3. Perform a root cause analysis Following a workplace accident, the employer should engage in a root cause analysis. The goal of such an analysis is to identify the root cause(s) of the problem that led to the accident/injury and to assist in designing effective corrective actions that will prevent or mitigate the possibility of it re-occurring. The root cause analysis is often part of the employer’s investigation into the events relating to the worker’s injury. The analysis should be thorough, objective, provide conclusions and identify the root causes. There is usually more than one root cause behind workplace accidents and injuries; identifying all causal aspects is important in order for the employer, with worker cooperation, to rectify the problem going forward. 4. Revise work procedures and policy as required Depending on the outcome of the employer’s

own investigation and root cause analysis, as well as the workers’ compensation board’s own investigation, the employer may be required to create new policies and procedures or, alternatively, amend old policies and procedures. The goal of these changes should be to improve safety management protocols, which will, in turn, lead to fewer accidents and workplace hazards. 5. Continue to cooperate with the workers’ compensation board As a result of the worker’s and employer’s reports of workplace injury, the workers’ compensation board will conduct its own review and determine whether or not the worker was injured while in the performance of her/his job. Depending on this determination, the worker’s claim may or may not be upheld. Additionally, the workers, compensation board may make various orders against the employer. At this time, both the worker and employer have various review and/or appeal rights they may choose to exercise, depending on the determination(s) made. It is often the case that once a significant accident occurs at a worksite, workers’ compensation board officers will increase their workplace inspections. Such a response is entirely reasonable and employers should do their best to accommodate any such inspections. CIM

author William Duvall is a lawyer in Vancouver’s Fasken Martineu’s office. He specializes in employment and labour matters, including workplace safety.

COLUMNS

| innovation

CMIC activities: a progress report Tom Hynes In its effort to address the long-term research needs of the Canadian mining industry, the Canada Mining Innovation Council (CMIC) has been making significant progress recently on a number of fronts. CMIC’s six main technical initiatives are led by high-level mining company representatives, who are supported by a committee that is comprised of industry, government and research community representatives. This professional diversity ensures that emphasis is placed on the areas that companies deem critical to their financial success and on their commitments to safety and the environment. Subsequent engagement with academia and other stakeholders will further define what research is required, leading to specific research projects.

CMIC initiatives Exploration The CMIC Exploration Initiative is currently the most advanced of the programs. It is being implemented by the Exploration Initiative Consortium: a group of 21 companies, PDAC and the Geological Society of Canada. This past year, the group has worked on reaching a consensus about what the top priorities for mining exploration are, and they are now in the process of deciding on specific projects to implement. Mining, Processing and Energy The CMIC Mining Initiative will address three main areas of research: underground hard rock mining, soft rock mining and surface mining. The CMIC Processing Initiative will consider three cross-cutting areas of research: crushing and grinding, water use and recycling, and northern engineering issues. Commodity-specific needs for gold, uranium, base metals, etc. will also be evaluated. The CMIC Energy Initiative’s mandate has yet to be determined, but it will likely include aspects of energy efficiency, alternate fuels and 54 | CIM Magazine | Vol. 6, No. 4

technologies, and demand management. In addition to focusing on operations, this committee will likely involve representation from major hydro suppliers. The champion for this initiative is John Thompson, vice-president of technology at Teck Resources Limited. These three initiatives are in the process of forming their committees. Their first meetings were held during the CIM Conference & Exhibition 2011 in in May.

For the past several years, CMIC has subsidized the hiring of students for summer work terms in miningrelated research in an effort to try to keep students in mining programs, but this may or may not be the best use of our funds. We are reviewing this for next year.

CMIC website Our communication and branding committee, led by Will Westgate of 3M, with considerable assistance from Angela Hamlyn and Rosy Saadeh of CIM and from Michel Plouffe of NRCan, has now put in place our new website. It is still under construction in certain areas, but is otherwise fully operational. Please visit us at www.cmic-ccim.org. CIM

Sustainable Mining and Tailings The CMIC Sustainable Mining Initiative will focus on the environmental issues of mining and will work with NRCan’s Green Mining Initiative (GMI) group. It will build on the work GMI has done by expanding to include research Tom Hynes has from academia and other worked in the uranium and base research institutions. metals industries, and has been a The CMIC Tailings Initiative provincial regulator and a federal will liaise with the research government research manager. efforts of the Oil Sands Tailings He is the executive director of the Consortium (a CMIC member) Canada Mining Innovation Council. to share relevant information across both programs. At the time of writing this CMIC stakeholders article, discussions were under3M • Abitibi Géophysique • Advanced Applied Physics way with potential champions Solutions • Agnico-Eagle Mines Limited • Anglo American • for both of these initiatives.

author

Highly Qualified People CMIC has not yet determined its role in the recruitment of Highly Qualified People (HQP). The traditional response to the labour shortage problem has been to recruit professionals from other countries; however, as Australia, the United States, Chile and others are in the same situation, a new plan is needed. We are collaborating with the Mining Industry Human Resources Council (MiHR) to determine where we can be of most help.

Altius • Barrick Gold Corporation • Boart Longyear • Cameco • CAMESE• CAMIRO • Canadian Light Source Inc. • CEMI • CIM • Cliffs Natural Resources • COREM • De Beers Canada • DIVEX • Fugro Airborne Surveys Corp. • Gedex • Goldcorp Inc. • Gold Fields • Hatch • HudBay Minerals Inc. • IAMGOLD • Inmet Mining Corporation • Kingston Process Metallurgy Inc. • Kinross Gold Corporation • Laboratoire international de géophysique minière • Laurentian University • Université Laval • MAC • Memorial University • MIRARCO • Natural Resources Canada • Oil Sands Tailings Consortium • PDAC • Province of British Columbia • Province of Ontario • Province of Quebec • Province of Saskatchewan • Queen’s University • Saskatchewan Research Council • SRK Consulting (Canada) • Teck • Université du Québec à Montréal • University of Alberta • University of British Columbia • University of Toronto • University of Waterloo • University of Windsor • Ur-Energy • Vale • Western Potash Corp. • Xstrata

* The above listing is accurate as of mid-May.

The beautiful city of Niagara will host the 51st Annual Conference of Metallurgists (COM2012), held with Pressure Hydrometallurgy 2012 (42nd Annual Hydrometallurgy Meeting).

The conference theme is Metallurgy and Materials Impact on Society which will be reflected in core programming on: Hydrometallurgy Corrosion Clean Metallurgical Processing Sustainability Issues in Mineral & Metal Extraction Sustainability through Mining

Organized by:

COLUMNS

| HR outlook

New collaborative platform showcases mining HR practices Talking work/life balance with De Beers Canada

Industry collaboration is central to achieving an effective workforce. Simply put, by working together, we can accomplish more. The Mining Industry Human Resources (MiHR) Council’s latest initiative is taking idea sharing to the next level. In an effort to facilitate the exchange of ideas, an online collaborative platform for sharing innovative practices in mining HR was developed. Launched last November with a call for companies to submit their HR success stories, MiHR Innovate is the first Canadian mining-specific HR community. “We know Canadian mining companies are developing some incredible innovative HR practices, but the industry doesn’t hear about them,” explains Ryan Montpellier, executive director at MiHR. “The more ideas we bring forward, the more we learn from each other and strengthen the industry because one great idea inspires another.” The following includes excerpts from one example of the innovative HR practices that can be found in the MiHR Innovate compendium.

Case study - De Beers Canada THE CHALLENGE: A perceived lack of work/life balance among the senior management team Because an issue with work/life balance was seen as a potential impediment to our organization practicing at a high performance level, a workstream (similar to a focus group) of six senior managers from a variety of disciplines volunteered to proactively address this concern. The workstream mandate was to validate, determine and/or synthesize the issues and common themes that affect work/life balance at De Beers Canada Inc. and to provide recommendations for improvement. 56 | CIM Magazine | Vol. 6, No. 4

Credit: MiHR

Lindsay Forcellini

The power of collaboration – by working together we accomplish more.

THE PLAN: To interview a selection of employees for their input on work/life balance. A subset of 18 people from all departments, disciplines and levels within the Toronto office, which included corporate and exploration employees, were interviewed in March 2010 on an individual basis to ensure confidentiality. The interviewer asked a series of openended questions, with approximately 90 minutes each to complete. Individual identification numbers were assigned to the response sheets to ensure anonymity. Following the interviews, the workstream provided the findings to employees in the Toronto office and anyone who had not had the opportunity to provide input was invited to do so either by email or by anonymously depositing the completed feedback sheets in designated repositories. An additional 18 responses were received.

THE FINDINGS: Work/life balance means something different to each person and no “one-size-fits-all” response will meet the needs of the workforce. A number of employees indicated that although they had supportive managers and work colleagues, they still did not feel comfortable leaving on time because so many of their colleagues remained working into the evening. The fact that the executive team worked on weekends, i.e. sending emails to colleagues and subordinates, left the recipients of the emails feeling as though there was an expectation that they, too, should be working and providing responses to these emails even though no such expectation had ever been indicated. This clearly was the perception. Quite a number of the employees used the word “stressed” when describing the morale of the organization, emphasizing that they thought other employees seemed stressed but they, themselves, were okay.

THE SOLUTIONS: Employees were also asked to provide enhancing behaviours that would improve relationships with supervisors/managers and peers, as well as what they would like to see changed to enhance work/life balance at the company. As a result of the feedback received, De Beers is: • Preparing a policy regarding flexible working hours providing employees a basis upon which they can meet with their managers and set up a schedule, addressing both the individual and business needs of the organization. • Scheduling time for employees from a variety of disciplines to meet together as a multi-disciplinary team with one member of the Executive Team for lunch and talk about issues, concerns and/or successes to help employees feel more engaged. • Members of the workstream decided to remain intact and follow up on the results and impact these changes may have on the organization going forward. THE RESULTS: Employees expressed gratitude and enthusiasm for having been given the opportunity to provide input into not only impacting, but also changing the culture of the organization. While De Beers is at the initial stage of implementing the recommendations, it is too early to fully appreciate the impact this exercise will have; however, the company is confident this exercise may very well form the model of future employee engagement mechanisms at De Beers Canada Inc. and looks forward to seeing this exercise through to ultimate conclusion. CIM

author Lindsay Forcellini is marketing and communications coordinator at MiHR.

Thanks to the following companies for their valuable submissions: AREVA Resources Canada Inc. Baja Mining Company Barrick Gold Corporation BHP Billiton Cameco De Beers Canada Inc. DMC Mining Services Goldcorp

Hy-Tech Drilling IAMGOLD Kinross Gold Corporation Noront Resources Ltd. NovaGold Resources Quinsam Coal Corporation Teck Resources Vale

To view the complete compendium of innovative practices, please visit www.mihrinnovate.ca. June /July 2011 | 57

COLUMNS

| metals monitor

Metals Economics Group Strategic Report: Base metals and gold 2010 acquisitions spending totals $50.7 billion

The 2010 dollar volume of large ($25 million minimum) acquisitions totalled $50.7 billion – the third-highest annual total in ten years – a whopping increase of 260 per cent over 2009’s $14 billion and 23 per cent over 2008’s $41 billion. According to Metals Economics Group’s (MEG) recent Strategic Report, the 2010 total signifies a general return of confidence to the industry after a period of significant strategic retrenchment and caution due to the worldwide recession, and sharply lower metals prices that began in late 2008 and lasted into early 2010. Data analyzed from Base metals and gold acquisitions dollar volume, 2001-2010 MEG’s Acquisitions Service shows a very significant rebound in both base metand project acquisitions accounting als and gold acquisitions spending. for $371.4 billion of the total. Each The total price paid in base metals region, except for Europe, hosted at deals (copper, nickel and zinc) least one very large deal in terms of in increased 220 per cent to $21.8 billion situ value. in 2010 (43 per cent of the year’s Of the 60 primary gold transactotal), and gold jumped 298 per cent tions, the Australia-Pacific region was year on year to a historical high of tops with ten deals containing $75 $28.9 billion (57 per cent of the 2010 billion of in situ value – 33 per cent of total). the $222.7 billion gold total. It was Distribution of the 66 base metals followed closely by North America acquisitions targets considered in (mostly Canada) with 11 transactions 2010 is almost even among all accounting for 31 per cent of the regions; however, Africa dropped total. from 22 per cent of 2009’s total The price paid as a percentage of in acquired base metals in situ value to situ value in 2010 averaged 13 per cent seven per cent in 2010. The acquired for the 60 gold deals – a 71 per cent value of reserves and resources in increase over 2009. The most expen2010 base metals transactions totalled sive region for gold acquisitions was $668.4 billion, with copper company Africa at 26.9 per cent. The least 58 | CIM Magazine | Vol. 6, No. 4

Data source: MEG Acquisitions Services. © Metals Economics Group, 2011

The staff of Metals Economics Group

expensive region for acquiring gold in the ground was North America, with prices averaging only three per cent of in situ value. MEG’s Acquisitions Service gives clients a competitive edge by reporting and analyzing current and historical transactions involving advanced-stage base metals and gold projects, operating mines and companies. MEG’s Strategic Report provides informed, insightful analysis for mining industry planners, analysts, executives and exploration managers. Published since 1982, the Strategic Report draws on MEG’s wealth of knowledge and insight in a bimonthly compilation of timely, informative and analytical articles on critical supplyside issues facing the global mining

Data source: MEG’s Acquisitions Service. © Metals Economics Group, 2011

CALENDAR CALENDRIER

Base metals acquisitions by region, 2010. (Total in situ value acquired = US$668.4 billion)

AROUND THE WORLD • AUTOUR DU MONDE ISEC 2011 — 19th International Solvent Extraction Conference September 3-7 | Santiago, Chile www.isec2011.com Mining Electrical Maintenance & Safety Association Annual Technical Symposium September 7-9 | Clearwater, Florida, USA www.miningelectrical.org

Data source: MEG’s Acquisitions Service. © Metals Economics Group, 2011

U2011 Uranium Symposium and Trade Show September 18-21 | Casper, Wyoming, USA www.u2011.org

Gold acquisitions by region, 2010. (Total in situ value acquired = US$222.7 billion)

industry. In addition to original research, articles are drawn from MEG’s flagship MineSearch database, Corporate Exploration Strategies, Reserves Replacement studies, and Acquisitions and Exploration Activity services. CIM For more details on MEG services and subscription information visit the MEG website at www.metalseconomics.com; T.: 902.429.2880; Fax: 902.429.6593; email: sales@metalseconomics.com.

author

Slope Stability 2011: International Symposium on Rock Slope Stability in Open Pit Mining and Civil Engineering September 18-21 | Vancouver, BC www.slopestability2011.ca Mine Closure 2011 September 18-21 | Lake Louise, AB www.mineclosure2011.com Association of Environmental & Engineering Geologists (AEG) 54th Annual Meeting September 19-24 | Anchorage, Alaska, USA www.aegweb.org SRMINING 2011 – First International Seminar on Social Responsibility in Mining October 19-21 | Santiago, Chile www.srmining.com WCSB5 Sampling 2011 October 25-28 | Santiago, Chile www.sampling2011.com

Metals Economics Group is a trusted source of global mining information and analysis, drawing on three decades of comprehensive information and analysis, with an unsurpassed level of experience and historical data. June /July 2011 | 59

COLUMNS

| standards

The new NI 43-101 Compliance made easier and less costly Robert Holland, Craig Waldie, Jim Whyte and Luc Arsenault On April 8, 2011, the Canadian Securities Administrators (CSA) published new versions of National Instrument 43-101 Standards of Disclosure for Mineral Projects, Form 43-101F1 Technical Report, and Companion Policy 43-101CP Companion Policy (collectively NI 43-101). The new NI 43-101 will replace the existing 2005 version and, subject to obtaining all necessary ministerial approvals, is expected to come into force on June 30, 2011. It has been 10 years since NI 43101 was first adopted in February 2001 and this new version represents its first substantive review. In 2009, extensive stakeholder consultations and focus group discussions were held, which helped identify key

issues and concerns. In April 2010, the CSA published proposed changes to NI 43-101 and received 50 comment letters from stakeholders resulting in some non-material revisions and clarifications to the proposed rules. The CSA believes that the new version will continue to be one of the most effective and transparent mining disclosure regimes in the world. The objective of the new version is to maintain investor protection while making compliance easier and less costly for mining issuers. CSA has preserved the core principles of NI 43-101 while eliminating or reducing the scope of certain requirements, providing some flexibility to issuers and Qualified Persons, reflecting changes

in the industry, and clarifying areas not having the desired effect.

Summary of key changes Following are some of the key changes that will be implanted with the new version of NI 43-101. Addition or amendment of several definitions including: • Adding “acceptable foreign code,” and amending “professional association” and “qualified person” to provide an objective test. • Amending “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 study.

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

6th INTERNATIONAL CONFERENCE ON MINE CLOSURE Integrating the expertise of engineers, reclamation scientists, sociologists, economists and environmental specialists Conference program featuring international technical expertise and showcasing industry best practices Numerous pre-conference workshops Networking opportunities Exciting site tours of reclaimed mines

www.mineclosure2011.com ORGANISED BY

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

HOSTED BY

MARQUIS SPONSOR

IN COLLABORATION WITH

FOUNDING ORGANISATION

standards | COLUMNS • Incorporating by reference the definitions of “preliminary feasibility study” and “feasibility study” from the CIM Definition Standards. Clarification of existing interpretations applicable to all disclosure by: • Restricting disclosure of economic analyses of exploration targets and historical estimates. • Restricting disclosure of gross metal or mineral value and metal or mineral equivalent grades. • Requiring that disclosure of historical estimates always be accompanied by cautionary language and certain other information. • Requiring cautionary language be disclosed with equal prominence. • Allowing a qualified person to approve disclosure as an alternative to preparing or supervising the preparation of the information. Amendment of the obligation to file a technical report by: • Eliminating the requirement to file updated certificates and consents for subsequent triggers for a previously filed technical report. • Restricting the trigger for the filing of a technical report with a preliminary short-form prospectus to situations where there is a material mineral resource, mineral reserve or preliminary economic assessment that is not supported by a current technical report. • Expanding the technical report trigger to include any first-time written disclosure of mineral resources,

authorS

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. • Elimination of the independent technical report trigger for producing issuers in most situations. • Exemption for royalty or similar interest holders from the requirement to file a technical report under certain conditions. • Elimination of Appendix A as a prescriptive list of foreign associations and designations. • Revisions to the form for technical reports to make the form more adaptable for advanced-stage and producing properties. • Substantial changes to the companion policy to track the sections of NI 43-101 to which it refers, remove or update old guidance and add new guidance. For more information, please see the April 8, 2011 CSA Notice Repeal and Replacement of NI 43-101 and the revised instrument, form and companion policy posted on the websites of CSA members, including: www.bcsc.bc.ca; www.osc.gov.on.ca; and www.lautorite.qc.ca. CIM The views expressed in this article are those of the authors and do not necessarily represent the views of the BCSC, OSC or AMF.

Robert Holland is chief mining adviser with the British Columbia Securities Commission. Craig Waldie and Jim Whyte are both senior geologists with the Ontario Securities Commission, and Luc Arsenault is a geologist with the Autorité des marchés financier. The authors are responsible for NI 43-101 compliance reviews of prospectuses, technical reports and other regulatory filings of mining companies connected to British Columbia (Holland), Ontario (Waldie and Whyte) and Quebec (Arseneault).

ACHIEVEMENTS Research for the global community Roussos Dimitrakopoulos, Canada Research Chair in Mining Engineering at McGill University, was awarded a Collaborative Research and Development Grant of $2.7 million spread over five years from the Natural Sciences and Engineering Research Council, and co-funded by six major global mining companies, namely Anglo Gold Ashanti, Barrick Gold, BHP Billiton, De Beers, Newmont and Vale. The new uncertainty models of mine management will promote more sustainable development and use of mineral resources, while managing and reducing risks and maximizing the return on investment. Tops in NASDAQ’s books Goldcorp Inc. was recognized by NASDAQ as one of the top 100 companies in the world for its sustainability practices as part of its NASDAQ OMX CRD Global Sustainability Index. The index is made up of 100 companies that lead in measuring and reporting their carbon footprint, energy usage, water consumption, hazardous and non-hazardous waste generation, workforce initiatives and community investing. As a signatory to the UN Global Compact, Goldcorp has adopted Corporate Social Responsibility and Human Rights Policies and has advanced the Extractive Industries Transparency Initiative internationally. Zero’s the way to go As of May 12, 2011, the employees at St. Andrew Goldfields Ltd. have worked one million man hours without a lost time accident. “Zero lost time accidents over the course of one million man hours is a significant milestone,” said Duncan Middlemiss, vice-president of East Timmins Operations. “This formidable achievement is due to the entire SAS team who remain committed to operating in a safe way.”

June /July 2011 | 61

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

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

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

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

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

The Flin Flon copper deposit Correy Baldwin already had financial backing from a Toronto businessman. Jack Hammell had invested heavily in Beaver City, which was quickly becoming a ghost town, and he was searching for investments that would bring in larger returns. Mosher invited Hammell to assess the value of the Flin Flon property. The sheer size of the deposit impressed Hammell and, given the rising price of copper, he quickly backed the venture. Developing a mine, however, would not be so easy. Although plentiful, the ore was low grade and the copper-zinc mineralization was too complex to be separated without considerable expense. The site could not be developed without access to a smelter, but the location was remote and transporting the ore by winter sleigh and summer barge to The Pas and then by rail was not financially feasible. But Hammell was convinced that a mining venture would pay off and he began raising funds and looking for investors. He would persevere until the late 1920s, when development began to seem feasible, thanks to the Hudson Bay Mining & Smelting Company (HBM&S). HBM&S invested heavily in the project, constructing a smelter, a rail line in 1928, a hydroelectric power plant on the Churchill River in 1929 and, finally, a mine. In 1930, production finally began. The Flin Flon Mine was as prosperous as expected and the area continues to be an important mining centre to this day. CIM Archives of Manitoba: N25242

n 1915, prospector Tom Creighton brought his prospecting team to the shores of Ross Lake, Manitoba, where he had found a promising ore deposit. The deposit would eventually come to support one of Canada’s most important and prosperous copper mines. However, when it came time to naming the property, Creighton’s mind was not on copper, but on the more glamorous gold – and advenTom Creighton and his prospecting team ture novels. The site reminded him of a paperback adventure novel that he prospectors were more often on the had come across earlier while on a lookout for copper than gold. By 1918, portage – The Sunless City by British Beaver City was all but abandoned. writer J. E. Preston Muddock. In the Creighton himself began venturing novel, a prospector named Josiah further east. In December 1914, he visFlintabbatey Flonatin pilots a sub- ited a local trapper named David marine through a bottomless lake to Collins, who showed him samples of a a magical land where gold is so plen- sulphide ore that he had gathered on tiful that it is used to pave the his trap line on the shores of nearby streets. Creighton named the site Ross Lake. Collins took Creighton to Flin Flon’s mine, shortening the the site and after examining the name of the main character, and deposit, Creighton staked a claim. thereby sparing the future city of Creighton then returned to Beaver Flin Flon from having a more City to contact his fellow prospecunusual title. tors, the same members who had It was not copper but gold that discovered the gold at Amisk Lake: originally brought people to the area. brothers Dan and Jack Mosher, and Two years earlier, Creighton was part Leon and Isadore Dion. They were of the team that discovered gold in the joined by a sixth member, Dan Milligan. Together they returned to the quartz veins of nearby Amisk Lake, site, which they would name the Flin also known as Beaver Lake. The resultFlon property, and staked 16 claims. ing gold rush brought over a thousand men to the remote area, and the town Reports vary on whether the team was originally interested in the ore’s of Beaver City sprung up. trace gold or in the copper-zinc sulBut Beaver City’s days were numphide, but it was the copper that bered. The demand for gold would eventually became the focus. wane in the wake of World War I, The group did not have to look far when base metals were required for for an initial investor, as Dan Mosher munitions and armaments. After 1914,

June /July 2011 | 63

CIM Distinguished Lecturers Éminent conférenciers de l’ICM 2011-2012

ABB Automation-Canada Westbank, BC

Klaus Kacy

University of British Columbia Vancouver, BC

Bernhard Klein

A. Hamid Mumin

Modern Hoisting Systems Systèmes de treuils modernes

Energy Efficiency in Mining Efficacité énergétique dans l’industrie de l’exploitation minière

Iron Oxide Copper-Gold Deposits in Genetic Context Gisements de type oxyde de fer-cuivre-or dans un contexte génétique

William Westgate 3M St. Paul, MN, USA

Processes and Collaboration Propelling Innovation through Execution Processus, collaboration et exécution : un passeport pour l’innovation

Brandon University Brandon, MB

Barbara Kirby

Mining Industry Human Resources Council, Ottawa, ON

Jim Utley

Teck Resources Limited, Vancouver, BC

Canadian Mining Credentials Program – Certification: Recognizing and Retaining Skills Programme des titres de compétences de l’industrie minière canadienne – certification : reconnaissance et la retention des compétences

BOOK NOW RÉSERVEZ DÈS MAINTENANT

www.cim.org

cim news Seeing is believing A new approach to educating the public about mining By Hartley Butler George The future of mining in Canada relies on the next generation: their skills, education and passion will determine the success of the industry. Bill Steer, the general manager and “originator” of the Canadian Ecology Centre – a leading environmental science and outdoor education centre – recently created a unique program that he hopes will have a hand in the future of mining. Unlike so many workshops that focus on students, Steer has crafted a different approach: educating their teachers. The Teachers Tour program aims to help educators make informed choices about what they teach. “Over the lifetime of the working teacher, think about how many students they might affect in a year,” says Steer. “Now, imagine over a lifetime.” The program includes visits to the sites and businesses that are shaping the mining industry, so that the knowledge gained can be incorporated into the curriculum. Now in its second year, the five-day program will begin on August 15 in Mattawa, Ontario. Thirty participants from elementary and secondary schools will visit historic and modern mine sites, equipment manufacturers, listen to guest speakers and meet professionals in the industry. They will learn about reclamation projects, green initiatives and how the industry has improved from an environmental standpoint. They will also gain a better perspective on the economic and social impact that mining has on Canada, by seeing what mining can do for Northern communities. Ann Jackson, the science program leader and lead teacher for the Environment – Specialist High Skill Major Program at St. Thomas Aquinas Catholic High School in Russell, Ontario, participated in last year’s program. “The tour gave really good

Teachers receive a safety briefing before entering Xstrata’s Nickel Rim South Mine located within the City of Greater Sudbury.

examples of the vast range of jobs and skills that are required in the mining industry, and how so many of these skills are transferable to other fields,” she says. “Students in the classroom do listen when a teacher is knowledgeable about something – especially if they have some photos to back it up.”

Steer says that for the teachers, seeing is believing. “Their first reaction is usually ‘I didn’t know that,’ or ‘now I understand about modern sustainable mining,’” he explains. Last year’s tour received a generous $5,000 donation from CIM’s Metal Mining Society, which will support the Teachers Tour again this year. CIM

Educate the public – get involved today! The Teachers Tour program requires full sponsorship, and CIM hopes its members will consider donating in any way that they can: • Sponsor an individual teacher • Provide materials that might be helpful • Donate to an aspect of the program (such as transportation or meals) Contact Bill Steer at bill@canadianecology.ca or 705.744.1715, ext. 570 June/July 2011 | 65

cim news

Students taking charge Fourth CIM student chapter opens By Marlene Eisner By all accounts, the launch of the CIM McGill Student Chapter was an unmitigated success. More than 100 students packed a room at the university’s Frank Dawson Adams building to hear guest speaker Bryan A. Coates, vice-president of finance and CFO at Osisko Mining Corporation, deliver a presentation entitled “Mining, more than tonnes, grade and recoveries: Challenges of modern mining operations.” “We filled up the room, which is a great thing considering we were in the last week of school where everyone was stressed with exams,” says Stephen Coates, who, along with Fares Nasrallah, Gustavo Marquez and Claudia Macedo, organized the chapter’s inaugural event. The CIM McGill Student Chapter is the fourth in Canada; the other three are at the University of Saskatchewan, Queen’s University and Cégep de l’Abitibi-Témiscamingue (in RouynNoranda). All are part of an initiative by CIM to create chapters in universities

Claudia Macedo, Fares Nasrallah, Stephen Coates and Gustavo Marquez

and colleges across the country. The goal is to provide networking opportunities for mining students and for students in other faculties to discover what the industry has to offer. “The first one was launched in December 2009 in Saskatoon,” says

CIM executive director Jean Vavrek. “Now that we have a full-blown membership department within CIM, we determined what we needed and we’re pretty well in full flight.” Vavrek attended the April 7 McGill chapter opening and says he was impressed

CIM welcomes new members Abou Gharam, Ahmed, Ontario Adelakun, Adekunle, Saskatoon Aittie, Daniel, Ghana Aksak, Meral, Quebec Alaterre, Arnaud, France Alhamed, Hamza, Quebec Al-Shaibani, Waeel, British Columbia Arruti, Luis, Ontario Ashcroft, Greg, Manitoba Asuncion, Nicholas, Ontario Bailey, Ian, Nova Scotia Banks, Kristin, New Brunswick Bateman, Kelly, Ontario Batson, Benjamin, Ontario Beaumont-Smith, Chris, Manitoba Bell, Robert, British Columbia Bishop, Richard, Ontario

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

Bryan, Anthony, USA Burdett, Mark, Australia Burke, David, Ontario Carter, Aaron, Ontario Coulibaly Yaya-Oye, Abdul-Aziz, Quebec Dargie, Dan, Ontario D’Elia, Francesco, Ontario Deschamps, Sara, Ontario Eamer, Douglas, Nova Scotia Elder, Sam, Ontario El-Marassi, Mohamed, Ontario Elsayed, Abdallah, Ontario Fairfax, Ashley, Nova Scotia Francis, Victor, Ontario Gagnier, Jeff, Ontario Gajonera, Desiree, Ontario Ghafari, Nima, Phillippines

Gray, Donald, USA Guillermo Cruz, Luis Rico, Ontario Hammoum, Salim, Quebec Hatt, Emily, Newfoundland and Labrador Hirschmiller, John, Alberta Honickman, Hart, Ontario Hoover, Cash, Newfoundland and Labrador Huffman, Dale, Saskatoon Hussain, Azhar, Pakistan Ibrahim, Abdulwahab, Nova Scotia Islam, Aquidul, Ontario Jim, Justin, Saskatoon Kam, Tik Lun, Quebec Kapuku Bwapwa, Joseph, South Africa Klue, Richard, British Columbia Kozovski, Aleksander, Ontario Krumins, Tom, Ontario

cim news

Lashgari, Ali, Iran Lee, Jiangtao, China Lee, Wayne, Ontario Lehoux-Gagnon, Virginia, Quebec Lei, Mengda, Quebec Lemon, Alexander, United Kingdom Liang, Jialing, Alberta Marston, Jeremy, USA McCallum, Brent, Ontario McCullough, Rebecca, Ontario McKown, John, USA McNeil, Willie, Nova Scotia Misic, Radovan, Ontario Miyouna, Jean Claude, Congo Moradipour, Roja, Ontario Nazemi, Navid, Ontario Nicholls, Ken, Alberta

with CIM. “Students are an important part of the sector and there is an opportunity for CIM to support their initiatives and help them build strong careers in this industry,” she says. The future looks good, adds Vavrek, with lots of new territory to tap. “We are now looking into how we will proceed next year, with a potential 40 more chapters across Canada,” he says. “There is also an opportunity to have chapters outside of Canada where Canadian companies are operating. Except for the United States and Australia, there is no other place that has student chapters like we do, so if we don’t create them, they won’t happen.” CIM

CIM branch news CIM’s Toronto Branch had a field tour on May 4 to the rich in pegmatites Bancroft area. About 30 people participated in the tour to several sites, including the old McDonald Mine (an old feldspar mine), the Princess Sodalite Mine and the SGS Lakefield By Steve Williams, Field Trip Committee Chair Mineralogy Centre.

Nkum, Francis, Ghana Normandin, Stephane, Quebec Opio, Faith, Ontario Padula, Mike, British Columbia Patel, Nikesh, Ontario Perez, Carlos Guzman, Saskatoon Peterson, Nolan K., British Columbia Pourestarabadi, Marziyeh, Iran Probert, Greg, Newfoundland and Labrador Rahman, Wasiur, Ontario Rashed Hossain, Mirza, Newfoundland and Labrador Rice, Craig, British Columbia Rickleman, Daniel, Australia Roomy, Ahmed, Ontario Saleem, Arham, Pakistan Scott, Julia, British Columbia

Steve Williams

with the turnout. “I thought it was a great event,” he says. “We really want the students to own this and, in the process, have them develop leadership skills and make some solid connections.” Coates, 21, is a second-year mining engineering student and the son of Bryan Coates. Becoming involved in a CIM student chapter was a no-brainer for Coates, who comes from a mining family. He says a student chapter is good for networking opportunities, but it is also a good way for students from other faculties to learn more about mining. “The first time I was able to get involved with people outside of mining was with a group of environmental students signing a petition for Bill C-300,” he says. “I sat down with them and said, ‘mining is not what you guys see in the press.’ There is something missing here to connect with these students.” Nasrallah, 20, who came from France to study mining engineering, agrees that one of the main objectives of the student chapter is to educate other faculties about the realities and benefits of mining. “The overall goal is reaching out to students from outside the mining and metallurgical circle. We want to involve more students from areas such as mechanical and chemical engineering, management, HR, humanities – there is a place for them in the industry.” As the semester comes to a close, Nasrallah and Coates, along with a handful of other students, will start hammering out the details of the chapter. “We are still the interim committee,” says Nasrallah. “What we are planning to do over the summer is to discuss what has to be done, which is everything: the bylaws, structure, goals, plans, which events we want to have and how we are going to organize them.” Marjolaine Dugas, CIM’s new director of membership, is thrilled to see so many students wanting to get involved

Shepard, Barbara, USA Short, Wade, Saskatoon Shukla, Richa, Australia Singh, Tristan, Newfoundland and Labrador Somanathan, Mayooran, Ontario Suarez, Steve, Ontario Tirona, Christian, Ontario Tremblay, Pierre, Quebec Tunnicliffe, Matthew, British Columbia Turek, Christopher, Ontario Ullah Khan, Atta, Pakistan Urrego, Alfonso, Quebec Van Den Berghe, Shane, Saskatoon Wedgewood, Dylan, Alberta Wightman, John F., Nova Scotia Wong, Ian, Ontario Yan, Haixing, British Columbia

June/July 2011 | 67

cim news

| scholarship winners

CMMF scholarships awarded By Correy Baldwin The McIntosh Engineering Scholarship supports students pursing an engineering or technical degree in mining, with a special emphasis on underground mining. Through the Canadian Mining and Metallurgical Foundation (CMMF), eight scholarships are awarded annually to second-year students. Below are the technical college or CEGEP recipients for this year. In the next issue, we will introduce you to the five university-level winners.

Brendan Moloney – Cambrian College Brendan Moloney spent several years on the West Coast, working as a pipe layer and machine operator with Whistler Excavations. “I loved my job but was having difficulties with being laid off through the winters,” he says. “That’s when I started looking into going back to school and found the mining engineering technical program at Cambrian College.” With his work experience it seemed like an obvious transition. “Cambrian College was a great way to get involved in mining,” he says, “and the Sudbury Basin, with the vast amount of mining taking place in the area, was a perfect location to learn about geology.” Last summer, he worked with Minto Explorations in the Yukon, a copper and gold mine north of Whitehorse. “I can’t wait to get back out there,” he says. Moloney is looking forward to having a career in something that he thoroughly enjoys and that could allow him to live back on the West Coast, which, he says, is where he feels he truly belongs. “All and all I’m stoked about my future in the industry,” Moloney says. “The ability to work around the world and meet new people is something I am really looking forward to.”

Marc Bédard – Cégep de l’Abitibi-Témiscamingue Marc Bédard grew up in the small town of Malartic, Quebec. “The mining industry is a huge deal here in AbitibiTémiscamingue,” says Bédard, whose father, grandfather, sister and uncle all work in the mining industry. Originally, he was on a different career path, studying computer science at a college in Rouyn-Noranda. “I worked for two years in that field, but I never felt I was at the right place,” Bédard says. Then, the small company he was working for went bankrupt. “I had to decide between going back to school to study something else or move to a big city like Montreal or Quebec to 68 | CIM Magazine | Vol. 6, No. 4

pursue my career with computers. I like where I live so I took a chance and went back to the same college in Rouyn-Noranda, and that’s when I decided to go into mining. Two years later,” he says assuredly, “I know I made the right choice.” Bédard has worked underground at Wesdome Gold Mine’s Kiena Mine, and last summer at Agnico-Eagle’s Lapa Mine, where he has returned this summer. “I did many different jobs and that’s what I want,” he says. “I want to see as much as I can to learn as much as I can.” “I will probably do five years of technical services and afterwards work as a supervisor or something similar,” he adds. “I want to be an important part of a company. I would like to be a mining rescuer, too.”

Ingrid Lahaie – Haileybury School of Mines, Northern College Mines have always been a part of Ingrid Lahaie’s environment, having grown up in the mining town of RouynNoranda, Quebec, and later living in Timmins, Ontario. She began her career, however, as an insolvency consultant. “Pretty far from the mining industry,” she admits. “After working for almost 10 years in the bankruptcy field, I moved on to work for Xstrata Nickel’s Raglan Mine, where I worked with the geology department.” A conversation with an engineer at Raglan about geology and rock engineering led Lahaie to reconsider her career path, and eventually she went back to school to pursue what she calls her life-long passion for rocks. “Haileybury has allowed me to discover various possibilities in the mining industry, some of which I had never thought of,” she explains. Meanwhile, Lahaie continues to work at Raglan Mine as a ground control mining technician, continuing her studies part-time. “I am very excited about this new position and sure hope that it will lead to a successful career,” she says. “I intend to join the on-site Emergency Response Team as a way of participating and making sure the site benefits from a team of well-trained rescue members,” she adds. “I value safety and the environment aspects of mining. To me, they must always constitute priorities.” CIM

Obituaries Peter Alfred Cain became a member of CIM in 1946 and a life member in 1982. He died on November 21, 2010. Rene F. Jooste joined CIM in 1950 and became a life member of CIM in 1986. He died on April 12, 2011.

www.metsoc.org/com2011

Organizing Committee

Conference Chair Cesar Inostroza Rio Tinto Alcan Technical Program Chair André Allaire BBA

Technical Program

Mining, geology, metallurgy – it’s all in here World Gold 2011 – Geology, Hydrometallurgy, Pyrometallurgy, Mining and Mineral Processing of Gold This will be the largest gathering of gold producers in 2011. Now, after three successful events with SAIMM and AusIMM, the World Gold Conference is back to Canada for the 50th Anniversary of MetSoc.

Light Metals 2011

World Gold Chair Guy Deschênes CANMET-MMSL

Québec is an international leader in the production of aluminum, with many major international companies having operations in Montreal. Rio Tinto Alcan, ALCOA and Aluminerie Alouette, who also have several Europe- and Australasia-based companies – are actively participating in this unique international symposium.

Light Metals Chair Mario Fafard Aluminium Research Centre REGAL

This symposium will focus on recent advances in the development and application of technologies for wastes and by-products, and development related to the mining, mineral, metallurgical and petroleum industries.

Special Event Chair Joël Kapusta BBA Poster Session Chair Graeme Goodall NRCan – Materials Technology Laboratory CANMET Short Course Chair Peter Lind Barrick Gold Corporation Publicity Chair – World Gold Yeonuk Choi Barrick Gold Corporation Sponsorship Chair Michael King MetSoc of CIM Waste Processing & Recycling Chair S. R. (Ram) Rao McGill University New Technology Implementation Chair Boyd Davis Kingston Process Metallurgy Inc. ISAM Chair Mathieu Brochu McGill University Management Chair Daniel Brosig Hatch

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

Waste Recycling in Mineral & Metallurgical Industries

New Technology Implementation in Metallurgical Processes New technology implementation is a critical step in the overall improvement of processes. This symposium will bring together individuals who have accomplished the implementation of new technologies, from complete plants to minor modifications of existing operations, to speak about difficulties encountered, successes and failures.

Materials – Innovations in Joining of Advanced Materials Topics will include welding of aerospace and automotive alloys, materials in the oil, gas and petrochemical industries, and advanced materials (such as nanomaterials and composites).

Managing through Recession Learn from companies operating in the mining sector as they share stories of challenge, resilience and success following the recent global economic recession.

Student Program Get noticed at COM! Posters

in conjunction with Present your poster to peers and industry professionals. Sponsored by Vale, the competition offers a $500 prize to the winner. Act fast, as the deadline for submissions is August 1.

Bowling Party Meet fellow student delegates for an evening of free bowling, drinks and food.

Student-Industry Mixer Start building your network of contacts at the Student-Industry Mixer, sponsored by Barrick Gold Corporation. The event’s informal atmosphere is a great opportunity to speak with industry leaders and get career advice – and maybe even secure a summer work term. The prize for the best student poster will be awarded during this event.

Industrial Tour This year, a free Xstrata – CCR plant tour in Montreal has been organized exclusively for students. See industrial tours section for further details.

www.metsoc.org/com2011

Register early and save $100! Early-bird rates (before August 3): CIM national members and sister societies CIM life members CIM retired members Authors, presenters and sessions chairs Students and student presenters Non members

Plenary Session A distinguished lineup of guest speakers is being assembled. To date, speakers include: Chris Twigge-Molecey, board member at Hatch and the 2010-2011 president of CIM; Fathi Habashi, professor at Université Laval; David Cox, senior director, NRU Operations, AECL; and Barbara Kirby, senior director, workforce development, MiHR.

$ 800 free $ 200 $ 800 $ 50 $ 965

www.metsoc.org/com2011

Short Courses Gold, aluminium and more! The conference will be preceded by a number of excellent short courses, planned by experts in their field. Note: You are not required to be a conference delegate to register for the courses.

Asset Integrity Management Short Course The content of the course is adapted to the mining and metals industry with a specific focus on the challenges of gold mining and milling and processing.

Gold Processing Course

Aluminum Production

This one-and-a-half day course will provide attendees with a refresher course on current unit operations in the gold processing flowsheet, plus an update on emerging technologies and their likely integration into existing and proposed gold plants. Speakers will also cover sustainability and environmental issues such as cyanide usage, waste management and energy conservation.

This course has been designed for engineers and scientists who are interested to learn more about the Hall-Héroult aluminium production process. Topics covered: introduction to Hall-Héroult; anode materials and fabrication processes; dynamics of the bubble layer under the anodes; multivariate analysis and its application to aluminium smelters; advanced modelling of the Hall-Héroult cell.

Strategic Risk Management in Ore Reserves and Mine Planning Optimization This one-day course will allow attendees to discover how new technologies for risk-based mine planning optimization help capture the “upside potential” in mine designs and production schedules, minimize “downside risks,” as well as increase cash flows through the effect of the mining sequence and “risk blending.” Real-world applications from major gold mines demonstrate the practical aspects of the methods.

Workshop on the International Cyanide Management Code The Cyanide Code is an important global initiative to improve the gold industry’s collective environmental and safety performance in its management of cyanide and in doing so, enhance its credibility with the public and key stakeholder groups. Paul Bateman, president of the International Cyanide Management Institute, the organization that administers the Code program, and his colleague, Norm Greenwald, the Institute’s vice-president, will brief the workshop.

Aluminum Transformation This course applies to students, engineers and scientists interested in the fabrication of aluminium structural components and their mechanical behaviour. Topics covered: aluminium castings; fatigue and failure of aluminium components; joining aluminium monolithic alloys and composites; design of aluminium components and products.

Reducing/Inhibiting Sulphide Oxidation Facilitating Sustainable Decommissioning of Mine Wastes and Water This one-day course will provide attendees with the opportunity to hear about field work, where sulphide oxidation was reduced resulting in effluents with low acidity and neutral pH from sulphidic tailings and waste rock. The fundamental processes that reduce or inhibit sulphide oxidation within the mining wastes are presented. Results of ongoing research are discussed. These processes, together with the promotion of bio-mineralization within the mine waste management areas, make decommissioning economical and sustainable. June/July 2011 | 71

www.metsoc.org/com2011

Industrial Tours Beyond the conference centre walls Four industrial tours are planned for October 6, to be held in conjunction with the conference. All are limited in capacity, so register early.

Aluminerie Alouette Founded in 1992, Aluminerie Alouette is an independent company that produces aluminum. As the most important employer in Sept-Îles, Quebec, and the biggest aluminum smelter in the Americas, it has 1,000 employees and a capacity of 575,000 tons of annual output. The Sept-Îles plant is a global reference in energy efficiency. It is at the cutting edge of technology, which operates well within government environmental standards.

Xstrata-CCR (exclusive to student delegates) The CCR refinery located in Montreal, Quebec, has been in operation since 1931. The plant is equipped to process anodes that are high in bismuth, antimony, lead and nickel. CCR refinery’s products include copper cathodes, gold, silver and other specialty metals and chemicals, including selenium, tellurium, copper sulphate, nickel sulphate and a concentrate of platinum group metals.

Gold Mining Underground Visits include IAMGOLD’s Westwood project and AgnicoEagle Mines’ LaRonde 2 Mine.

Gold Plants Visits include Agnico-Eagle Mines’ Goldex and LaRonde mills, and Osisko’s Canadian Malartic mill and open pit.

Sponsors To those who make it all possible — thank you! Several sponsorship opportunities are still available. Contact Michael King at MICHAELKING806@comcast.net.

Financial Sponsors

Event Sponsors

Exclusive Platinum Sponsor

Gold Sponsor

In-kind Sponsors Co-sponsoring Sister Societies & Media Groups Silver Sponsors Gintsvetmet Institute

Bronze Sponsor

Friend Sponsor

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

Social Program

Updates to this schedule can be found at www.metsoc.org/com2011

We’re more than just a technical conference Sunday, October 2 Welcome Reception All delegates are invited to attend the Welcome Reception sponsored by SNC-Lavalin. Monday, October 3 MetSoc Annual General Meeting & MetSoc Awards Luncheon The society will hold its Annual General Meeting, feature the inauguration of the new MetSoc president, and honour its outstanding members with the Society Awards. Tuesday, October 4 World Gold Luncheon The World Gold organizing committee will hold a luncheon featuring an invited speaker. Scotch Tasting Fundraiser Network with industry leaders while enjoying fine scotch. All of the money from this fundraising event will go towards the MetSoc Student Fund and the endowment fund of the Canadian Mining and Metallurgy Foundation (CMMF). Tax receipts will be given to participants.

Wednesday, October 5 Historical Metallurgy Lunch Box The Historical Metallurgy Committee of MetSoc will host a box lunch featuring guest speakers Hugh J. McQueen, professor emeritus at Concordia University, and Larry McNally, Science and Medical Archivist, Archives Canada. The presentation will be on “Metal industries around Montreal – 1760 to 1910.” Luncheon honouring Laxman Amaratunga The Environment Section of MetSoc will host a lunch to honour the accomplishments and dedication of Laxman Amaratunga, professor at Laurentian University. Join family, friends and colleagues to celebrate his achievements.

At this year’s gala,

we will celebrate and recognize excellence in our industry, look back at achievements of the past 50 years and work to inspire the next generation. We will also honour past MetSoc presidents and pass the torch on to a new generation of members. Jeux de Cordes musical group and magician/ performer/comedian Alain Choquette will provide the entertainment for the evening. Join us on Monday, October 3, at the historic Windsor Train Station for an unforgettable evening.

1st Conference of Metallurgists held in Hamilton, Ontario, in 1962. From left to right: R. D. Hinson, COM co-chair; J. Convey, COM chair; J. R. Bradfield, president of CIM; and J. S. Kitkaldy, COM Technical Chair

074-076 Historical Geology_Historical Geology 11-07-06 12:12 PM Page 74

HISTORY OF

economic geology The foundations of modern economic geology (Part 4) By R. J. (Bob) Cathro, Chemainus, British Columbia

“The best work of education is the ‘drawingout’ of faculties which the pupil does not know or believe to be in him. … There is nothing that contributes more potently to success in life than the subjection of young (people) to work which they do not like, and in the knowledge of which they are, consequently deficient. … Those who are confined by their duties to one locality might learn from the example of Pošepny that the thorough study of one locality is the most valuable contribution that can be made to general science. On the other hand, the authors of theories may profitably note that Pošepny´ himself, as the result of wider observations, was obliged to change the views he had expressed, under the influence of preconceived impressions, in early years”. ~Kemp, 1902

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

Mineral deposit models have become increasingly important in exploration for deeper targets. Better models depend on an improved understanding of the processes involved in the origin (genesis) of the mineralizing fluids. It is hard to imagine that the leading geologists in the world were still arguing about the fundamentals of genesis as recently as 1890. It is impossible to discuss the pioneer geologists who led the discussions on ore genesis without starting with Franz Pošepny´. It is sad that his name is almost forgotten today. Pošepny´ was born in 1836 at Jilemnice, Czech Republic (formerly Starkenbach, Bohemia), which is located near the borders of Poland and Germany, about 100 kilometres northeast of Prague. Bohemia was part of the Hapsburg Empire until 1867, when it became part of the Austrian half of the Austro-Hungarian Empire, which existed until 1918. He was educated at the Polytechnical Institute in Prague and at the Mining Academy in Pˇr íbram until 1859. After graduation, he entered the State service. Pošepny´ was one of the last influential economic geologists who spent most of his career in central Europe and was largely unknown in North America. It is interesting to compare his brief education with the leisurely international one enjoyed by Rothwell, Raymond and Emmons. Early in his career as a government geologist, Pošepny´ worked in relative obscurity under incredibly difficult conditions. He was first assigned, without pay, to a government bureau in Romania. A year later he was transferred, at a salary of less than 50 cents US per day, to an interesting geological district where he was restricted to auditing the accounts of abandoned mines. His superior discouraged underground studies, telling him that he had much more important things to attend to than going down into old mines where he would only see rubbish and dirt. He was obliged, therefore, to pursue underground mapping in his spare time when no one was watching. His special aptitude for economic geology was eventually recognized and he was transferred to Rodna, now situated in northern Romania near the Ukraine border, to examine lead-zinc ore deposits and abandoned mines – at an increased salary of 75 cents a day. After 11 years of service, while still only an “expectant” without a title and with only a meagre salary, he was offered the position of economic geologist for Hungary. That included six years of work (1873-1879) in the Tyrol and Salzburg districts in Austria, and an extended tour of the United States. It was followed by his appointment in 1879 as a professor at the Imperial and Royal School of Mining at Leoben, southwest of Vienna. There, he began to compile his field notes into lectures, integrate them with current European research, and develop a new genetic classification scheme. However, he was soon transferred back to Pˇr íbram to teach at the Mining Academy and to supervise a special investigation at the Adelbart shaft, the deepest in the world at about 1,100 metres (Cathro, 2006). The silver-lead-zinc vein mineralization was strongly oxidized to a depth of 135 metres, although some sulphide minerals were still present in the oxide zone. The reason that the mine was chosen for special study was that it was completely dry below 800 metres, making it an ideal place to prove that the deep mineralization must have been deposited from ascending hydrothermal solutions. Kemp (1920) summarized the opposing views on mineral deposit genesis at the end of the 19th century as follows: “In the late 1870s, the investigation of Professor Fridolin Sandberger of the University of Wurzburg upon the relations of

074-076 Historical Geology_Historical Geology 11-07-06 12:12 PM Page 75

HISTORY OF

economic geology

➙

presentation at the Chicago meeting and publication in the Transactions of the Institute. It summarized his life’s work and conclusions about the origin of mineralizing fluids. Fortunately, the secretary, Rossiter Raymond, recognized its importance and translated it into a masterpiece of lucid English. It Samuel Franklin Emmons was soon recognized as a (1841-1911) landmark paper. Because Franz Pošepny´ (1836-1895) Pošepny´ had suffered an accidental fall that prevented him from writing the text, he dictated it to his wife Clotilde, who had been his constant helpmate. Early in their marriage, they had decided to jointly specialize in European languages, she becoming fluent in those of western Europe while he learned those from the east. Neither was fluent in English. The Pošepny´ paper was published in the Transactions in 1893 and was so popular that it was included in a separate volume titled “The Genesis of Ore-Deposits,” which was issued by AIME in 1895 as a teaching aid for instructors and students. It contained the original paper, the criticisms that it elicited, and Pošepny´ ’s reply. Unfortunately, he died on March 27 of that year and never saw the volume, which sold out quickly. His 1893 paper continued to arouse so much interest that it became the catalyst for a long overdue debate by eminent economic geologists, most of whom worked for the U.S. Geological Survey mapping the new mining districts in the western United States. Most of their results were published by AIME and led to an additional series of extremely important papers on ore genesis at a meeting held in February 1900. They were collected and edited under Dr. Raymond’s guiding hand and published in 1902 as an 805-page second edition (known as the “Pošepny´ Volume”) titled Genesis of Ore Deposits. This important book included papers by C. R. Van Hise, S. F. Emmons, Walter Harvey Weed, Waldemar Lindgren, J. H. L. Vogt, J. F. Kemp, William P. Blake, and T. A. Rickard. As Raymond put it, “From the bare outline of his life that I have given, it is evident that (Pošepny´) trod no easy path to eminence and fame. For many years he was utilized without being adequately appreciated; ordered from place to place; scantily paid and arbitrarily overruled; his far-reaching plans thwarted by short-sighted officialism intent upon more immediate practical results. For this, government bureaus are not necessarily to be blamed. Pošepny´ was, heart and soul, not a government official, but the lover and slave of science. And governments do not exist for the promotion of science. The utmost which they can legitimately do in that ➙

wall-rocks to the minerals of their veins, and his development of strongly emphasized support for the old-time theory of ‘lateral secretion’ had aroused much interest in the general topic of the origin of ores. The geologists at the Freiberg Mining Academy, represented in this instance by Professor Alfred Stelzner, were naturally opposed to these views and supported the theory of uprising solutions. Face to face every day with deep fissure-veins in several successive series, each connected with an outbreak of igneous rocks, they had favoured these views even as early as Agricola. The quaint and curious thesis of Werner in the closing years of the 17th century, that the fissures had been filed by precipitation from an overlying ocean, was but a temporary departure from the well-nigh inevitable interpretation. Hence, between Sandberger, the ‘lateral secretionist’ on the one side, and Stelzer, the ‘infiltration ascensionist’ on the other, a vigorous controversy raged.” Pošepny´ recognized that mineral deposits formed above the water table were probably as a result of descending waters from the surface and could be described as lateral secretion. Then, he considered the processes of solution and deposition through subterranean water circulation in deeper zones. This was a refinement, based on a thorough review of the literature, of a theory advanced by the French geologist A. Daubree in 1887 and took into account numerous observations of underground springs in mines of the Erzgebirge and elsewhere by H. Muller. Because deposits containing metals could be observed forming from mineral springs, it was obvious to Pošepny´ that circulating solutions were the key. Common sense told him that symmetrical crusts of argentiferous galena found at a depth of 1,100 metres (564 metres below sea level) in the Adelbert shaft, which had been mined continuously from surface, could only have been deposited from ascending mineral solutions. He concluded that all mineral deposits found in deeper zones must have been precipitated from ascending solutions. “The miners themselves have always held this opinion; in other words, they have all been ascensionists,” he wrote. After his retirement to Vienna, Pošepny´ travelled widely throughout western and southern Europe and to the United States, and continued to publish steadily. No complete list of his publications has been found but it is believed to be between 100 and 200 papers. The Chicago Exposition of August 1893 was the occasion of a special AIME meeting as part of the International Engineering Congress. By a fortunate coincidence, Franz Pošepny´ submitted his manuscript, in German, for

June/July 2011 | 75

074-076 Historical Geology_Historical Geology 11-07-06 12:12 PM Page 76

HISTORY OF

economic geology direction is to assist the progress of science on grounds of political economy.” Dr. Raymond also praised Pošepny´’s “free dedication to the Institute (of his treatise) … In estimating the generosity of the author, it must be borne in mind that the copyright of such a work, the fruit of years of study and of practice as an instructor, is of no little value to a European professor, and constitutes one of the legitimate rewards of his (otherwise not highly-paid) labor.” In the words of Kemp (1920), “[the decade following the publication of the Pošepny´ Volume was] extremely fruitful in new ideas. The part played by igneous phenomena, whether in the way of direct magmatic crystallizations or of after-effects; the contact-zones and their elucidation; the actual processes of replacement and the changes in wall-rocks; the phenomena of secondary enrichment; the restriction in depth of the meteoric ground-water – one fundamental question after another crowded to the front. Dr. Raymond … was fully alive to the interest and importance of it all, and conceived the idea that (another) volume under the immediate oversight of Samuel Franklin Emmons would adequately summarize the rapid evolution of ideas. … (Emmons) undertook the task, selected the papers, wrote the very valuable introductory review and, alas, passed away just before the manuscript went to press. It thus became the Emmons Memorial Volume (1913), and took its place on every mining geologist’s bookshelf beside the Pošepny´ Volume.” It is quite ironic that Pošepny´ and Emmons ended up as neighbours on library shelves because their careers were so different. Emmons was born in 1841 into a wealthy family in Boston and was named after an ancestor who was related to Benjamin Franklin. After earning a BA degree from Harvard, he studied for two years at the Imperial School of Mines in Paris, another year at Freiberg, and then travelled in Europe for another year. Beaumont, Daubree and von Cotta were among his professors. On his return home in 1867, he joined the Geological Exploration of the Fortieth Parallel under Clarence King, the first geological survey funded by the U.S. government. When the U.S. Geological Survey was created in 1879, Emmons was one of the first scientists hired. The next year, he began a landmark study of the Leadville district and became one of the most prolific and eminent of the early USGS geologists (Becker, 1911).

Acknowledgments Back in early 2003, when I was still bemoaning the lack of published information on this topic, I mentioned to Brian Skinner of Yale University that he was the obvious person to write about the history of economic geology (he was the editor of the journal Economic Geology from 1969 to 1996). He replied that he had so many things he was working on that he doubted he would ever get around to it and he encouraged me by providing a short list of the references I should read. One of the first authors was Franz Pošepny´ and I have been grateful to Dr. Skinner ever since 76 | CIM Magazine | Vol. 6, No. 4

for bringing him to my attention and filling a big hole in my education. CIM

References Becker, G. F. (1911). Biographical notice of Samuel Franklin Emmons. In (S. F. Emmons, ed.), Ore deposits. New York: The American Institute of Mining Engineers, xxix-xlvii. Cathro, R. J. (2006). The central European silver deposits. CIM Magazine, 1(2), 65-67. Emmons, S. F. (1913). Ore deposits. New York, The American Institute of Mining Engineers, 954p. Kemp, J. F. (1920). Reminiscences. In (T. A. Rickard, ed.), Rossiter Worthington Raymond: a memorial. New York: The American Institute of Mining Engineers, 43-52. Pošepny´, F. (1893). The genesis of ore-deposits. Transactions of the American Institute of Mining Engineers, 23, 197-369. This paper was reprinted in 1902 as part of a special volume titled The genesis of ore-deposits, second edition, R. W. Raymond (ed). New York, The American Institute of Mining Engineers, 806p.

HISTORICAL

metallurgy Social problems in the mining industry: a historical essay (Part 4) By Fathi Habashi, Laval University, Quebec City

Copper workers’ revolt in Krompachy, Czechoslovakia (1921) After World War I, the metallurgical plant in Krompachy in the present-day Slovak Republic shut down putting 3,500 people out of work. The backlash that ensued was commemorated in a stamp issued by the former Czechoslovakia in 1971 (entitled "History of the Communist Party") showing a painting by a Czech artist depicting the workers’ bloody revolt. Stamp depicting a painting of the workers’ revolt in 1921 in Krompachy, Slovakia.

South African gold mining strike (1922) In 1922, in the gold mining region of Witwatersrand, mine owners formulated a plan to reduce wages by replacing well-paid white workers with black workers. White South African workers went on a strike that quickly escalated to a violent rebellion – known as the Rand Revolt. Strikers formed commandos and in response, the government sent in troops from the Active Citizens Force and declared martial law. The ensuing violence resulted in hundreds of injuries and deaths. Authorities arrested thousands of workers; four were put to death. The negative reaction to the government's actions cost Prime Minister Jan Smuts and his South Africa Party the 1924 election.

Steel workers strike in Nova Scotia (1925) In Sydney, Nova Scotia, steel workers went on strike in early March 1925 against the British Empire Steel Corporation. On June 4, the union pulled its men from a company power plant in New Waterford. More than 50 company police, many on horseback, occupied the plant on June 11. An estimated 700 to 3,000 miners and supporters marched to the power plant. As the crowd arrived, police opened fire, killing a miner and wounding several others. In retaliation, the miners sabotaged the power plant. Police and company officials that did not escape the battle were locked up in the town jail. On the following nights, company stores were raided and burned, including the colliery building. The Canadian Army deployed thousands of soldiers to the area. The strike lasted throughout the summer.

Columbine Mine massacre in Colorado (1927) For the 50 years prior to 1927, the Colorado mines were a hotbed of unrest, marked by poor labour relations throughout the mining industry, strikes, aborted uprisings and confrontations between miners, mine owners and the state militia. Following the attack at Ludlow in 1914, the state was home to one of the largest uprisings of workers in

American labour history, with entire towns being occupied by armed miners. Miners in Colorado participated in a three-day strike called by the Industrial Workers of the World in 1927, in protest of the pending execution of anarchists Ferdinando Nicola Sacco and Bartolomeo Vanzetti. About 8,400 striking miners successfully shut down the coal mines in northern Colorado. Although mainly owned by Rocky Mountain Fuel Company, the Columbine Mine was kept running by scabs. These “imported” scabs were housed in the town of Serene, which had been turned into a fortress with barbed wire fences and armed guards at the gates. In the southern part of the state, Colorado Fuel and Iron owned most of the local mines. The company had been at the bargaining table with the company-controlled “union” that was put in place after the Ludlow strike. Mass rallies were held by workers outside the Columbine Mine for several weeks and on November 21, about 500 miners and their families marched towards the north gate of the town. On their arrival, they were met by plain-clothed militiamen with rifles, blocking the entrance. A battle soon ensued and eventually, the miners forced their way through the gate. Police fired, killing six people, and an additional 60 were injured. A couple weeks later, another two strikers were killed, this time in Walsenburg. The owner of the Rocky Mountain Fuel Company brought an end to the strike several weeks later when he declared that henceforth, the union was to be affiliated with the American Federation of Labour. Eventually, the company would come to recognize the United Mine Workers of America.

Coal miners’ strike in Harlan, Kentucky (1931-1937) A violent labour dispute broke out between the United Mine Workers and strikebreakers in Harlan County, Kentucky, in 1931, which lasted several years. The events leading up to the strike included wage disputes, dangerous working

June/July 2011 | 77

HISTORICAL

metallurgy conditions, unsatisfactory living conditions, the forming of unions and economic hardships affecting the town. In the summer of 1937, workers at the Duke Power-owned Eastover Coal Company's Brookside Mine in Harlan County voted to join the union. Eastover management refused to sign the contract and the union went on strike. Duke Power brought in replacement non-unized workers, many of who were subsequently attacked, arrested, hit with baseball bats, shot at and struck by cars. One striking miner was shot and killed by one of the replacement workers. Three months after the union returned to work, the national contract expired.

Many unsuccessful attempts were made to form a trade union prior to August 3, 1941, when a minersâ&#x20AC;&#x2122; conference was called by the Transvaal Provincial Committee of the African National Congress. The conference was attended by workers from many mines and by delegates from a large number of African and Indian organizations, but speakers were arrested and meetings broken up. With the formal establishment of the union, organizational work began in the face of increased harassment, arrests, dismissals and deportation. Nevertheless, the union grew in strength and influence.

Gold miners' strike in Kirkland Lake (1941-1942) Failure to recognize a union and collective bargaining, as well as firing miners participating in union affairs led to a strike in Kirkland Lake, Ontario, from 1941 to 1942. On the evening of November 18, 1941, the night shifts in eight of the mines failed to report for work. Both the federal and Ontario governments refused to intervene. By February 12, 1942, the Kirkland strike was lost and the humiliated miners returned to work. The strike was a turning point in Canadian history, resulting in legislation in 1944 similar to that of the 1935 legislation in the United States that recognizes the right of workers to form a union.

Strike in Arvida, Quebec (1941) In July 1941, Canada's largest aluminum plant, located on the Saguenay River in Quebec, stopped production. Minister of Munitions and Supply C. D. Howe quickly concluded that saboteurs were responsible and sought military intervention to restore order. Prime Minister Mackenzie King and other Cabinet colleagues shared the desire to keep workers producing for the war effort, but hesitated to send in troops against strikers.

African miners' strike (1946) African workers were introduced to trade unions through witnessing the struggles that British workers underwent in an effort to form trade unions, as far back as 1880. There was no solidarity among black and white workers. The organization of African miners was one of the most difficult tasks facing the trade union and national movement in South Africa. Workers were housed in prison-like compounds, speaking many different languages, guarded and spied upon. On August 12, 1946, the African mine workers of the Witwatersrand went out on strike in support of a demand for higher wages. They continued the strike for a week despite savage police terror. On what became known as Bloody Tuesday (August 13), a peaceful procession of workers began to march to Johannesburg; they wanted to get their passes and go back home. However, police opened fire on them and a number of workers were killed. In protest against these brutalities, on August 14, a special conference of the Transvaal Council of NonEuropean Trade Unions decided to call a general strike in Johannesburg. The weakness of the unions and the failure to reach factory workers resulted in only a partial success of the strike. 78 | CIM Magazine | Vol. 6, No. 4

Asbestos mine workers on strike

Asbestos strike in Quebec (1949) At midnight on February 14, 1949, miners walked off the job at four asbestos mines near Thetford Mines and Asbestos in Quebec. The union demanded that asbestos dust be eliminated both on the inside and outside of the mill, as well as a wage increase and a social security fund to be administered by the union. The demands were rejected. Quebec Premier Maurice Duplessis sided with the companies, due to his hostility to all forms of socialism. The provincial government sent police to protect the mines. Duplessis' Union Nationale party had long been closely allied to the Catholic Church, but in this case, the Church supported the workers. The population and media of Quebec were sympathetic to the strikers. Pierre Elliott Trudeau, future Canadian Prime Minister and then-journalist, also covered the strike in a sympathetic manner. Six weeks into the strike, Johns Manville hired strikebreakers to keep the mines open. In response, the strike turned violent as the 5,000 strikers fought back and destroyed the property. More police were sent to protect the strikebreakers and hundreds of miners were arrested. Some of the incidents included a dynamite explosion that destroyed part of a railroad track that led into the Johns Manville property and the overturning of a company jeep, injuring a passenger. On March 5, Archbishop Joseph Charbonneau delivered a fiercely pro-union speech asking all Catholics for donations to help the strikers. Premier Duplessis asked the Church to transfer the archbishop to

HISTORICAL

metallurgy Vancouver because of his pro-union stance, but his request was refused. Archbishop Maurice Roy of Quebec City served as mediator. In June, workers agreed to return to work with few gains. In the long term, both conditions and wages of the workers considerably improved. Trudeau edited The Asbestos Strike, a book portraying the strike as a violent announcement that a new era had begun.

San Juan massacre in Bolivia (1967) A meeting of miners had been planned for June 24, 1967, at the mining camps of Siglo XX (20th century) near Oruro with a goal of demanding an increase in wages. The government and the armed forces heard about the meeting and rushed to occupy the mining centres. They surrounded the miners and opened fire; 20 were killed and 70 wounded. Electricity was cut off to the union headquarters and the Voice of the Miner radio station, and the union leader was murdered. The massacre was carried out under orders from President René Barrientos Ortuño, whose government forbade union activity. In addition, the government launched a furiously cruel persecution against political and union leaders in an effort to break the resistance of the labour movement. The massacre was followed by repression and the firing of the so-called agitators. The military captured the main leaders of the underground unions on July 29 and disposed of them without a trace.

Coal miners’ strike in Britain (1984-1985) The miners' strike of 1984-1985 was a major event affecting the British coal industry, which was nationalized and heavily subsidized. The government was looking to close a number of mines that were either unsuccessful or in need of an upgrade (through increased mechanization) to become profitable. Many unions resisted, as it would result in job cuts. The strike ended with the defeat of the National Union of Mineworkers by the Conservative government. Some years later, the Labour Party moved away from its traditional socialist agenda. The dispute exposed deep divisions in British society and caused bitterness in northern England and South Wales where several mining communities were destroyed. Ten deaths resulted from events surrounding the strike. CIM

Suggested Readings Habashi, F. (2009). Science, Technology, and Society. Quebec City: Métallurgie Extractive Québec. Distributed by Laval University Bookstore. www.zone.ul.ca Habashi, F. (2010). Mining and Civilization. An Illustrated History. Quebec City: Métallurgie Extractive Québec. Distributed by Laval University Bookstore. www.zone.ul.ca Habashi, F., Hendricker, D. & Gignac, C. (1999). Mining and Metallurgy on Postage Stamps. Quebec City: Métallurgie Extractive Québec. Distributed by Laval University Bookstore. www.zone.ul.ca

June/July 2011 | 79

TECHNICAL ABSTRACTS

CIM journal Kupol mill leach operation in 2008-09 J. Rajala, Kinross Gold Corporation, Toronto, Ontario, G. Deschênes, CANMET, Ottawa, Ontario, and A. Romanov and G. Kolosay, Kinross Gold Corporation, Kupol Mine, Russia

ABSTRACT The Kupol project, located in Far East Russia, treats a high-grade, free-milling ore containing gold, silver and pyrite. Most of the gold occurs as electrum and the silver is predominantly present in the forms of acanthite, stephanite, pyrargyrite, and proustite. The mill reached the design throughput of 3,000 tpd six months after startup. Leaching of gravity tailings is performed with the CANMET Enhanced Leach Process. The precious metals are recovered by counter-current decantation and the Merrill-Crowe process. By August 2009, the mill processed 1.42 million tons of ore. CELP performance was not affected by changes in feed grade and ore mineralogy. Additional modifications to the leaching strategy allowed further reduction in cyanide consumption and effluent treatment costs. RÉSUMÉ Le projet Kupol, situé en Extrême-Orient soviétique, traite un minerai libre de haute teneur contenant Au, Ag et pyrite. La plus grande partie de l’or se trouve sous forme d’électrum et l’argent est surtout présent sous forme d’acanthite, de stéphanite, de pyrargyrite et de proustite. L’usine a atteint sa capacité nominale de 3000 t/j six mois après le démarrage. La lixiviation des résidus du circuit de gravité est effectuée selon le Procédé avancé de lixiviation du CANMET. Les métaux précieux sont récupérés par décantation à contre-courant et par le procédé Merrill-Crowe. En août 2009, l’usine avait traité 1,42 million de tonnes de minerai. Le rendement du CELP n’a pas été affecté par des changements à la teneur de la charge d’alimentation ni à la minéralogie. Des modifications additionnelles à la stratégie de lixiviation ont permis de réduire encore plus la consommation de cyanure et les coûts de traitement de l’effluent.

Higher classification efficiency by hydrocyclone control T. Neesse, University ErlangenNuremberg, Erlangen, Germany, M. G. Farghaly, Al-Azhar University, Qena Branch, Egypt, M. A. Hararah, Al-Hussein Bin Talal University, Maan, Jordan, G. Proellss, University Erlangen-Nuremberg, Erlangen, Germany, and W. Rubarth and P. Kaniut, AKW Apparate + Verfahren GmbH, Hirschau, Germany

Toward the optimization of flotation column operation A. Desbiens, R. del Villar, Université Laval, Quebec City, Quebec, M. Maldonado, McGill University, Montreal, Quebec, and J. Bouchard, GENIVAR, Montreal, Quebec

ABSTRACT Two new options for hydrocyclone control are presented. Volume split control using a control valve in the overflow is applied for the stabilization of separation results at changing feed conditions. Controlled water injection to the conical part of the cyclone leads to the reduction of fine particles in the underflow. Hydrocyclone monitoring in both cases is performed by optical sensors that indicate the spray angle of the underflow. Applications in mineral processing for desliming, classification in closed-circuit grinding, and dewatering are demonstrated. RÉSUMÉ Deux nouvelles options pour le contrôle des hydrocyclones sont présentées. Un contrôle de fractionnement du volume au moyen d’une vanne de régulation dans la surverse est appliqué pour stabiliser les résultats de la séparation lors de changements de conditions d’alimentation. L’injection contrôlée d’eau dans la partie conique du cyclone permet de réduire la quantité de particules fines dans la sousverse. Dans les deux cas, des capteurs optiques indiquant l’angle du jet à la sousverse surveillent les hydrocyclones. Des applications en traitement des minerais sont présentées : le deschlammage, la classification lors de broyage en circuit fermé et l’assèchement. ABSTRACT Despite many years of practical applications in mineral processing plants, the full potential of column flotation has still not been fully exploited. The challenge in measuring some key variables is an important contributing factor. Reliable online measurement of variables, such as the froth depth, bias, gas hold-up, frother concentration, bubble surface area flux, and bubble size distribution, provides opportunities for the application of various advanced control strategies and real-time optimization based on an economic criterion. Université Laval’s Laboratoire d’observation et d’optimisation des procédés researchers have been working on these opportunities. This paper describes the most recent advances and current research trends.

RÉSUMÉ Malgré de nombreuses années d’applications pratiques dans les usines de traitement des minerais, le plein potentiel de la flottation en colonne n’a pas encore été pleinement exploité. Le défi de mesurer certaines variables clés est incontestablement un facteur qui contribue à cette situation. La mesure en ligne fiable de variables telles que la profondeur de l’écume, le différentiel d’eau, la concentration d’air dans la zone de récupération, la concentration des agents moussants, le flux surfacique des bulles et la distribution de la taille des bulles, sont autant de possibilités pour l’application de diverses stratégies de contrôle et une optimisation en temps réel basée sur un critère économique. Les chercheurs du Laboratoire d’observation et d’optimisation des procédés de l’Université Laval travaillent sur ces possibilités. Le Excerpts taken from abstracts in CIM Journal, Vol. 2, No. 2. Subscribe—www.cim.org présent article décrit les plus récentes avancées et les tendances actuelles en recherche.

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

ad index ADVERTISERS OBC IFC 11 7

3M ABB Breaker Technology Ltd. Bucyrus DBT Europe

Cameco

Canadian Dewatering LP

COMING IN AUGUST

Caterpillar

Cementation

DMC Mining Services

Glenridge Equipment Corp.

ITT Water & Wasterwater Canada Ltd.

Kinecor

March Consulting Associates Inc.

Metso Minerals Industries, Inc.

Discover the industry leaders in sustainability, innovation, management and community engagement.

Minova

FEATURED PROJECT

Reutech Radar Systems (Pty) Ltd.

Safety Whips

Sensear

Alexco Resource Corp.’s Bellekeno silver mine breathes new life into the Keno Hill District of the Yukon.

THE WHO’S WHO OF CANADIAN MINING

Shell Canada Products

COMMODITY FOCUS

Standards Council of Canada

Suncor Energy

We explore the rising fortunes of the gold sector – and the mounting questions.

Wardrop

Professional Directory

IBC

BBA BioteQ

Maintenance Engineering/ Mine Operators’ Conference Preliminary Program

MINING AND METALS | ENERGY

June/July 2011 | 81

voices from industry

Moving out from inside the box Strategic mine planning, sustainability and computing By Roussos Dimitrakopoulos, Professor and Canada Research Chair (Tier I) in Sustainable Mineral Resource Development under Uncertainty

ne of the outcomes of the recent global recession was a renewed interest in breaking free of old ideas and embracing new, strategic ones that reduce investment risk and add value to society. Concurrently, there has been a push to promote a more sustainable use of mineral resources, especially as the demands of emerging economies and the developing world increase. In response, novel concepts and ideas, new frameworks and breakthrough technologies are being developed to address market and supply uncertainties in the context of mine planning. Uncertainty, driven by fluctuating market demand for raw materials as well as the ability to mine ore bodies to meet that demand, impacts strategic planning and sustainable resource development. In Canada, where the economy relies heavily on mineral resources and is inevitably impacted by commodity cycles, there is a growing interest in ideas and tools that account for and manage uncertainty in mine modelling, optimal mine planning and production forecasting. Advances in computing and new mathematical techniques in the last decade have challenged the longstanding traditional set of analytical, mathematical and statistical methods used for mine planning, production scheduling and forecasting. For example, the development of a new paradigm of stochastic mathematical models pushes the limits of the conventional optimization used in strategic planning. This advance enables planners to assess ahead of time the interactions of the ability of a mineral deposit to supply raw materials, operational mining uncertainties, and fluctuating market demand. These new models enhance the ability to optimize mineral resource development under uncertain conditions and this, in turn, has dramatic effects on production management and cash flows, asset valuation, option selection, mine planning and operation, which ultimately affect the maximum return on investment, resource utilization, productivity and rehabilitation.

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

Earlier this year, six of the world’s largest mining companies with long-term records of supporting R&D in this area – namely, AngloGold Ashanti, Barrick Gold Corporation, BHP Billiton, De Beers Canada, Newmont Mining Corporation and Vale – helped to develop and co-funded a new five-year $2.7 million grant along with the Natural Sciences and Engineering Research Council (NSERC) of Canada (in one of the largest NSRC grants ever). This research surpasses past efforts to improve long-term strategic mine planning by using computer models to simulate supply and demand uncertainty. These models are founded on stochastic combinatorial optimization and “high-order” simulation methods that integrate multiple mines, material types, ore/waste processing streams including stockpiles, and generate different product specifications suitable for a diverse group of commodities and mining complexes. In addition, the research will be put in the public domain through a unique agreement with the mining companies, making all results accessible to practitioners and academics worldwide. This pledge reinforces the industry’s commitment to sustainability and social responsibility. The planned outcome of this joint research is to contribute new methods to the Canadian and global mining industry that will change the way problem-solving in the field is approached. It will impact: sustainable utilization of mineral resources; risk management and maximization of return on investment; social responsibility through improved financial performance; objective and technically defendable decision-making; production and product supply; management of mine remediation; and the training of highly qualified personnel that can then facilitate knowledge transfer and mobilization. Industrial implementations of this new stochastic mine planning optimization method have shown a drastic improvement in matching forecasts to production performance and a higher total cash flow value and quantity of metal to be produced. Whether these methods will be fully embraced industry-wide remains to be seen; however, they highlight that the current generation of strategic mine planning methods need to be revisited, if not rewritten, from the start. Radically different approaches to how and when minerals are extracted will revitalize the mining industry and will provide a buffer from future economic bumps. CIM

NEW SHELL DIESEL EXTRAâ&#x201E;˘ DESIGNED FOR EXTRA HOURS

Q Q Q

www.shell.ca/commercialfuels

*Based on internal Shell tests under normal operating conditions with heavy-duty on-road diesel engines using Shell Diesel Extra versus regular diesel without fuel economy formula. Savings may vary per truck/vehicle. **A heavy duty truck travelling approximately 10,000km/yr consumes approximately 3500L of diesel and produces approximately 92.05 tonnes of CO2/year. A fuel consumption saving of 3% will result in 2.76 tonnes less CO2 produced. Improving the fuel economy of a fleet of 10 such heavy trucks by 3% in a year will result in 27.6 tonnes less CO2 produced and return the same benefit as cancelling out the annual CO2 emissions produced by 5 average sized gasoline cars. (Values taken from the Natural Resources Canada Energy Efficiency Trend Analysis Tables (Canada) for 2007 (latest year available) at http://oee.nrcan.gc.ca/corporate/statistics/neud/dpa/analysis_ca.cfm?attr=0)

3M Mining & Mineral Extraction

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

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