CIM Magazine August 2007

February/février August • août 2007 2006

www.cim.org

The heart of gold A look into trends, technologies, and operations

The culture of safety What makes a John T. Ryan winner Les exploitations les plus sécuritaires

Open season!

Duck Pond breaks ground

Wanted: engineers HR challenges for mining Les défis en RH de l'industrie

Inside

Publications Mail No. 40062547

Minefill 2007 technical section New! Historical mining focus

Editor-in-chief Heather Ednie hednie@cim.org Assistant Editor Andrea Nichiporuk anichiporuk@cim.org Technical Editor Joan Tomiuk Publisher CIM

Keeping up with industry ne of my focuses this summer is to work with the Edmonton team to create the optimal technical program for the CIM Conference and Exhibition in Edmonton next May. Our greatest challenge is stemming from the incredible number of fantastic topics and areas of interest that must be whittled down.

And that’s the reality of mining today. An incredible number of fantastic stories—from new and existing operations, exploration highlights, technological advances, and momentous mergers and acquisitions, all hosted by an industry with its keen eye focused on achieving sustainable practices.

This issue of CIM Magazine includes a special section dedicated to the gold industry. It cannot come anywhere close to covering all that is happening in gold, but even just one of the stories offers insight into the major action rocking gold producers today. One article features an interview with Tim Baker, senior vice president and COO of Kinross, who discusses a long list of projects spanning the globe.

Amid all the fast-paced activity, the Canadian mining industry is maintaining its focus on safety and getting its people home safely. An article on page 28 shares the approaches to safety management that helped this year’s three winners of the John T. Ryan Safety Awards achieve their outstanding results. And the constant focus on safety reflects the true value of people in the industry.

CIM is a place for our industry’s people to come together, make contacts, and foster knowledge sharing and growth. So we invite you to spread the word and encourage more colleagues to join the CIM network. It’s growing fast, and this year promises to be one of optimization and expansion for the Institute.

Let me know what you think about today’s industry, and where CIM fits in.

Please feel free to contact us at CIM at any time to help drive your association.

O

Published 8 times a year by CIM 855 - 3400 de Maisonneuve Blvd. West Montreal, QC, H3Z 3B8 Tel.: (514) 939-2710; Fax: (514) 939-2714 www.cim.org; Email: magazine@cim.org Subscriptions: Included in CIM membership ($140.00); Non-members (Canada), $171.20/yr (GST included; Quebec residents add $12.84 PST; NB, NF and NS residents add $24.00 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 Account Managers: (905) 886-6641 Joe Crofts jcrofts@dvtail.com ext. 310 Janet Jeffery jjeffery@dvtail.com ext. 329

This month’s cover Greenland offers enormous exploration potential.

Photo courtesy of Knight Piésold.

Layout and design by Clò Communications.

Heather Ednie Editor-in-chief

Copyright©2007. 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

4

CIM Magazine n Vol. 2, Nº 5

Features 13 Working on the rock— Duck Pond means more jobs for Newfoundland by C. Hersey 28 The safety culture— John T. Ryan winners for safety performance by C. Hersey 33

La culture de la sécurité : gagnants des trophées John T. Ryan pour la sécurité

News

48 The Canadian mining industry in need of engineers 52

16

L’industrie minière du Canada en manque d’ingénieurs par S.T. Yaméogo

8 CVRD Inco stirs up the action in Sudbury by C. Hersey 9 Phased devolution for Nunavut by H. Ednie 11 Micro-mining builds sustainability into extraction processes

by E. Hinton and K. Palmer

Gold News 15 Only predictable thing is unpredictability—some insights into the state of gold by D. Zlotnikov 18 Putting flesh on good bones—Kinross Gold focuses on production expansion by H. Ednie 22 The dollar-gold relationship by D. Zlotnikov 23 Pogo project creating wealth in the North by D. Zlotnikov

Columns

21

35 36 38 39 40 42 44 46 47

The Supply Side by J. Baird MAC Economic Commentary by P. Stothart Standards by D. McCombe Parlons-en par R. Lamarre Mining Lore by A. Nichiporuk Eye on Business by I. Xenopoulos and J. Gagné Engineering Exchange by H. Weldon HR Outlook by R. Montpellier Student Life by M. Jankovic

CIM News 56 CIM welcomes new members 57 Young scientists receive awards 58 Prix d’excellence pour étudiants/Student awards

History 66 Economic geology: California here we come (Part 19) by R.J. Cathro 69 Mining: The evolution of shaft sinking systems—Part 1

by C. Graham and V. Evans 72 Metallurgy: History of metal casting—Part 1 by F. Habashi

Technical Section 74 This month’s contents

Departments

45

Editor’s Message 4 President’s Notes/Mot du président 6 Letters to the Editor 7 Calendar 59 Professional Directory 90

president’s notes Be safe to be sustainable

Jim Popowich CIM President Président de l’ICM

A few weeks ago, Heather (your editor-in-chief) and I were discussing themes for future issues of your CIM Magazine. This was following the recent, successful CIM Conference in Montreal and, in particular, the John T. Ryan safety awards. It was a real pleasure to be at the awards celebration and see the pride on the faces of the award recipients. I want to again personally congratulate everyone for their achievements; however, as we all know, it is the employees at the safety-conscious site that are the real winners.

A short while later, there was a TV clip on a national station covering the recent Saskatchewan mine rescue competitions in Saskatoon. Interviews with team members, and especially the spouses, on the value of the mine rescue system again made me proud to be associated with an industry that works hard to look after each other and to be ready when incidents happen. It is also a part of my belief that an industry needs to be safe to be sustainable.

So why not have an issue dedicated solely to safety? Heather’s response was “we integrate safety into everything we do and as such try to make it a part of every article.” And I could not agree with her more. Safety is part of our and our family’s everyday lives—at work, at home, and at play! Let’s continue to work hard to keep it that way!

Congratulations again to the John T. Ryan award winners. You will see more about them in this issue. We are PROUD of YOU!

mot du président

Il y a quelques semaines, Mme Ednie (votre éditrice en chef) et moi discutions de thèmes pour les prochains numéros du CIM Magazine. C’était tout juste après le récent Congrès et Salon commercial de l’ICM et plus spécialement la remise des trophées John T. Ryan pour la sécurité. Ce fut un véritable plaisir pour moi d’assister à la cérémonie de célébration et de constater la fierté sur le visage des récipiendaires.

Je voudrais encore une fois féliciter tous et chacun pour leurs réussites; cependant, comme nous le savons tous, ce sont les employés des sites conscients de la sécurité qui sont les véritables gagnants.

Peu de temps après, une nouvelle brève à la télévision soulignait les récentes compétitions de sauvetage minier de la Saskatchewan tenues à Saskatoon. Des entrevues avec des membres des équipes et surtout avec les conjoints(es) sur la valeur du système de sauvetage minier me rendent fier d’être associé à une industrie qui travaille fort au bien-être les uns des autres et qui est prête lorsque des incidents surviennent. Je suis aussi convaincu qu’une industrie qui se veut durable se doit d’être sécuritaire.

Donc, pourquoi ne pas consacrer un numéro entièrement à la sécurité. La réponse de Mme Ednie a été : « Nous intégrons la sécurité dans tout ce qui nous faisons et nous essayons d’en parler dans chaque numéro. » Je ne pourrais pas être plus en accord. La sécurité fait partie de notre vie quotidienne et de celle de nos familles – au travail, à la maison et dans nos loisirs. Continuons de travailler fort pour que cela continue.

Encore une fois, félicitations aux gagnants des trophées John T. Ryan. Vous en saurez plus en parcourant ce numéro du Magazine. Nous sommes FIERS de VOUS!

La sécurité clé du développement durable

6

CIM Magazine n Vol. 2, N° 5

letters Loving the lore

Achievements

Dear Ms. Ednie, I read Andrea Nichiporuk’s article (CIM Magazine, March/April) on the 1936 Moon River Mine disaster with great interest. It would have been more complete if there had been a reference to the role of Art MacPherson, for many years my colleague and friend until his death in 2000.

Art, then a recently qualified mining engineer, was responsible for the siting and inclination of the drillhole which reached the trapped men. He subsequently received a special citation from the Nova Scotia Legislature honouring his role in the dramatic rescue of the two trapped men.

Yours sincerely, George E. Davies

They are the champions!

Giving back Enhancing students’ environmental awareness As part of the RiverWatch Environmental Education program, Alberta high school students will be taking trips to local rivers. About 7,000 students are expected to participate in the program this year, where they will be monitoring aquatic ecosystems. The program is made possible thanks to a three-year investment by Suncor Energy Foundation to RiverWatch Science Beyond Books.

Alcan supports the arts In support of the Montreal International Jazz Festival, Alcan has committed to a $6 million sponsorship deal. The funds, spread over four years, will, among other things, help the festival continue to offer its community-oriented outdoor activities.

HudBay’s Snow Lake team walked away winners from the 2007 Manitoba Mine Rescue Provincial Competition. The team included: Clint Parsons, Aldon Kowalchuk, Dave Kendall, Gary Davis, Tony Butt, and Garnet Coulson. Additional congrats go to Garnet Coulson for having won the 2007 Provincial Technician’s competition.

Kudos to Suncor Energy Alberta Venture magazine chose Suncor Energy as the Most Respected Corporation in Alberta in 2007.

Nominees were judged on their human resources practices, environmental stewardship, and corporate performance, among others.

Safety first at IOC The Iron Ore Company of Canada is the recipient of the 2006 F.J. O’Connell Award in the Surface Mining, Transportation, and Primary Metals Processing category. The trophies are awarded to companies who show outstanding improvements in mine safety in Quebec.

Ah dam!

The Consulting Engineers of Ontario selected Hatch Energy as the winner of an Award of Excellence for their Shikwamkwa Replacement Dam project. The company designed and constructed the dam, which was completed five months ahead of schedule and significantly under budget.

Modern-day heroes

“Jake… there’s one unappreciated statistic missing from this diamond company’s report.”

“What’s that?” “ Two million mosquitoes per carat.”

August 2007

Australia’s Innovation Hero Awards were handed out and among the winners are Gekko Systems’ Elizabeth Lewis-Gray and Sandy Gray. Winners were chosen based on their success in “commercializing a new technology by developing a technology-driven product or service, raising capital, and undertaking commercial marketing.”

7

news

CVRD Inco stirs up the action in Sudbury

by Carolyn Hersey Recently, CVRD Inco has been steadily investing a lot more time and money in Sudbury, proving the nickel capital of the world still holds a lot of promise. Their exploration budget for the Sudbury Basin has increased over the past five years; they now spend over $19 million a year on exploration activities and an additional $14.6 million on drilling to support strategic studies. This is more than twice the amount spent in 2005 and nearly five times the amount spent in 2002.

They’ve got a number of new capital projects (all in various stages of development) totalling millions of dollars worth of investment in Sudbury’s econ-

omy, not to mention the hundreds of job opportunities they’ve created and will create.

Totten The newest and most talked about amidst Inco’s heap of projects is Totten.

In May of this year, they announced their plans to invest $400 million to open the mine, with production expected to start in the third quarter of 2012, at a rate of 2,200 tonnes of copper/nickel ore per day. Totten will be the company’s first new mine in Sudbury in more than 35 years. In its construction stage, the mine is being welcomed by the people of Sudbury with open arms.

Old Totten headframe

Once things are up and running, 150 new permanent jobs will be created, and the company has already employed about 250 people to help with the development of the mine. This past year, they hired a person a day. The company also has a memorandum of understanding with the Nishnawbee Sagamok First Nations. The agreement entails that Inco provides possible employment opportunities for their people, and they hold regular meetings so people have a chance to voice any concerns or opinions. Totten has an expected life span of 20 years.

Copper Cliff North and South The Copper Cliff North and South mines in Sudbury are most likely about to undergo some serious construction. Mining has reached existing shaft bottoms, causing operating costs to skyrocket, and thus the proposition of a new shaft has arisen. Feasibility studies were conducted to evaluate the possibility of a new 10,000 tonne per day hoisting plant and a shaft sunk to 5,600 feet, with the potential to deepen to 7,000 feet for exploration purposes. The much-anticipated new shaft would replace the current two maturing ones, with commissioning targeted for 2012. Copper Cliff North and South mines are part of the Copper Cliff Deep project, which has just received $46 million—$6.5 million to enable further feasibility studies and $38.5 million for early execution work. It could be in production as early as 2013 and should employ approximately 450 people during the construction phase. Copper Cliff Deep will connect the two existing mines and also move out towards identified ore bodies at Kelly Lake.

Garson Ramp Project (Garson Mine) A plan to re-open the Garson Ramp (bordering Garson Mine) has finally been approved by CVRD Inco’s Board.

The $30 million project is currently in 8

CIM Magazine n Vol. 2, Nº 5

news the development stage of Phase One, and the project involves three ore bodies that will produce nickel, copper, and precious metals.

Early production began in the fourth quarter of 2006 but at full throttle, it is expected to produce about 500 tonnes of ore a day.

Phased devolution for Nunavut

Copper Separation

by Heather Ednie

Another of Inco’s many projects, the Copper Separation project, is finally complete. The $52 million project aimed to take additional copper from bulk concentrate in order to make room for more nickel through the Copper Cliff smelter, thereby supporting their growth strategy in Sudbury. The process involves ore being milled and placed in one of nine flotation cells to separate the copper from the nickel. The cells then skim off 30 per cent of the copper concentrate that previously remained in the bulk coppernickel concentrate sent to the smelter. With 30 per cent of the copper treated under a different process, this M. Winship allows more room at the smelter for processing nickel. This investment will permit CVRD Inco to sell an additional 165,000 tonnes of copper concentrate per year to Xstrata Copper. CVRD Inco’s vice president, Michael Winship, says that investing in local operations “not only benefits the company, but it also benefits our entire community.

This copper separation process is another step towards new mining projects in our community, which translates into new jobs for our residents and attracts bright, talented individuals to our city.”

He also adds that “with the help of this facility, we will be able to move more nickel through our smelter, accelerate mine development, and help create the prosperous, long-term future our employees and our community desire.”

CVRD Inco is embarking on the largest period of growth in Sudbury in over 30 years. With the above mentioned projects well underway, they’ve also got tons of investments in a range of other projects such as Kelly Lake, Creighton Deepening, Clarabelle Mill, and Coleman 170, to name a few. With all the money and effort put into each mine, the company also puts tremendous care and pride into a reduced environmental footprint. In October 2006, they opened their new, state-of-the-art $115 million facility to further reduce sulphur dioxide (SO2) emissions in Sudbury by 34 per cent.

CVRD Inco’s environmental department continuously works handin-hand with the project team to ensure things run in an eco-friendly fashion. They’re dedicated to the development of “new sources of ore to improve future reserves in Sudbury, while at the same time investing in productivity improvements across the operation in order to mine and process ore profitably in all future price cycles.” Now the number one nickel-producing company in the world, you can rest assured that CVRD Inco knows exactly what they’re doing when it comes to investing. CIM

A careful, step-by-step approach has been recommended should Canada work towards the devolution of new responsibilities to the Government of Nunavut, according to a report issued June 12 by Fasken Martineau DuMoulin’s Paul Mayer.

Mayer began working on the report last November, when Jim Prentice, the northern affairs minister, appointed him as the federal government’s ministerial representative for Nunavut devolution. “”I was asked to look at the issue of transfer of responsibilities to the government of Nunavut—I spent 50 days up there and in Ottawa,” Mayer explained. “You have to grasp the importance of devolution for the government in Nunavut, and the challenges they face. And, it’s key to note the importance of mineral wealth to the region—it is the only way out of their current fiscal impass.

But, what would be transferred? Also, the HR challenge exists in all levels there. My conclusion was that Nunavut is not ready today for full responsibility. They are having troubles with their current responsibilities, like education and governance. So, I recommended that we go forward with devolution talks, but do it in a phased approach.”

Looking at how levels of government are working, when it comes to oil, gas, and mineral resources in Nunavut, Mayer said the current system is dysfunctional, and the mining industry has voiced complaints. Permitting an operation is time-consuming and expensive. “The timelines, certainty, and transparency are not there,” he added. Proper devolution could lead to an improved process.

While researching the report, Mayer consulted hundreds of people, at all levels of government.

He determined one of the major challenges is Nunavut’s shortage of skilled professionals—this must be addressed before federal responsibilities are transferred. If Canada and Nunavut address this, and agree on a negotiating process, Mayer predicts an agreement-in-principle on devolution may still be possible by next year, and a final agreement by 2011 or 2012.

“No government is free of issues,” he said.

“The challenges outlined in my report are a mirror image of the 2005 Auditor General’s report on the Northwest Territories—the robust regulatory system recommended would apply to the Nunavut situation.” CIM

“This copper separation process is another step towards new mining

projects

in our community”

August 2007

9

news Movin’ on up Brad Lantz was appointed vice president, mining, of HudBay. He has a long history with the company, and was, since 2003, manager of the 777 Mine.

John William Hogg became president and CEO of Western Canadian Coal. He most recently served as the company’s vice president and COO. Richard T. O’Brien is now CEO and president of Newmont Mining. He joined the company as CFO in 2005, and moved to president and CFO prior to this new position. As well, Joseph Carrabba, chairman, president, and CEO of Cleveland-Cliffs Inc., joined the company’s board of directors.

Patrick Downey joined NovaGold’s board of directors. Downey is president and CEO of Aura Gold.

10

Dave Keough took on the position of executive vice president and COO, Gammon Lake Resources, this summer.

He has over 24 years’ experience in the gold mining industry.

The latest additions to Lateegra Gold Corp. are Brian Thurston and Gordon Allen. Thurston became executive vice president, and Allen, vice president, exploration.

Brent Hegger was appointed CEO of Alcan’s COEGA aluminum smelter project. He will oversee the completion of the smelter project.

The Silver Institute welcomed a new president this summer—Robert Quartermaine. Trained as an exploration geologist, he worked for US Steel, AMAX, Teck Group, and Silver Standard.

Bob Wooley is now the manager of Gartner Lee's Yellowknife office. Since 2001, he was executive director of the Mackenzie Valley Land and Water Board.

Norman Peter Stern, Joseph Panetta, and Sam Di Michele were appointed directors of Jaguar Nickel’s board of directors.

Tom Lewis joined CanAlaska as regional operations manager. The move follows his time with Anglo American Exploration Canada as exploration manager.

Former executive director, strategy and business development, Patrick J. Shannon, became vice president, strategy and business development, of Ingersoll-Rand. John D. Soriano was elected as vice president, compliance and deputy general counsel. He joined the company in 2000.

CIM Magazine n Vol. 2, Nº 5

news Micro-mining builds sustainability into extraction processes

by Eric Hinton and Kevin Palmer, Golder Associates Ltd. In many parts of the world, communities are taking a “just say no� approach to the usual boom-and-bust style of mining. Rather than accepting a large influx of outside people, who may bring with them economic disruption and social problems, they are looking for a more sustainable future.

Resistance to traditional mining is made more acute as governments increasingly feel obligated to listen to their peoples’ wishes and heed them.

Some of this is due to the growing power of non-governmental organizations, which can quickly mount Internet-savvy publicity campaigns that reach into mining companies’ boardrooms, to object to developments that local people are resisting. Some of it is also due to the growing influence of the Equator Principles, under which lending institutions refuse to provide financing for projects that do not pass accepted sustainability thresholds.

Do the words “mining� and “sustainable� fit together?

They can, through what we can call “micro-mining.� This involves a search for small, concentrated deposits that can be extracted at relatively low cost. This keeps the financial commitment relatively small. Aside from some startup capital, financing stays organic, through earned revenues. This means living within the means of the deposit. The workforce is largely local, backed by sufficient outside expertise.

While it may seem radical, this is actually a long-established model. The world’s first mines were probably family businesses, with equipment and workforce financed through revenues. Many communities grew up around the slow, sustainable extraction of a resource.

Consider the wealth of Salzburg, Austria—with a name that just means “Salt City� and which grew over the centuries as local entities mined the August 2007

“white gold� of nearby deposits—continuing today.

So, while many juniors and majors are busily chasing elephants, pressures are gradually building to force another look at previous mining models that may form a glimpse of an alternative future for part of the mining sector.

What distinguishes a micro-mine from a business-as-usual mine is most saliently the size of the deposit. It should be of a size that flies below the radar of conventional mining, so that a company seeking to extract it will not wind up in a bruising price war with a larger company with deeper pockets.

The deposit also needs to be relatively high grade, so that excessive amounts of startup capital and earned revenues are not lost in the need to pay for long access drifts and other infrastructure. It must be near the surface—we think within 200 metres. Because the financial pockets of the proponents are also likely to be shallow, the rock should be relatively free of hydrogeological concerns

such as fractures that will cause excessive de-watering requirements and acidrock drainage issues.

The kinds of mineral wealth that can be sought are quite broad. Pods of gold ore, with concentrations of perhaps two to three times the usual levels, could work well. The same goes for other minerals, such as tin, possibly diamonds and other gemstones, as well as rare earths.

In other ways as well, the mine needs to be low key and, in some ways, low tech. The shaft, which can be a significant expense in most mines, becomes a lower cost item with micro-mining. It may be just three metres in diameter. A 25-metre headframe can be assembled in a couple of days, with the hoist itself costing about $150,000 and the hoistroom $40,000.

In keeping with the “small-is-beautiful� micro-mining philosophy, a gravity concentration process—a “dirty con�— is all that is necessary, at least to start with. When there are more retained earnings available, it may be possible to

#!.!$! 3 ,%!$).' #/00%2 #/-0!.9 WITH -INING /PERATIONS !CTIVE %XPLORATION 0ROJECTS IN .ORTH #ENTRAL 3OUTH !MERICA !CQUISITIONS 0ARTICIPATION IN *OINT 6ENTURES OF 1UALITY "ASE -ETAL 'OLD 0ROJECTS 7ORLDWIDE ARE 3OUGHT !DELAIDE 3TREET %AST 3UITE 4ORONTO /NTARIO #ANADA - # 6 4ELEPHONE &ACSIMILE % MAIL KATHY?ROBINSON AURRESOURCES COM

WWW AURRESOURCES COM 11

news move to a more advanced type of mill. To make the plan as sustainable as possible, it is important right from the start to re-invest earnings in further exploration, either to try to extend the mineralization being worked by the current mine or find other likely nearby deposits.

Just as important as these “hard” aspects of success are the “soft” issues Large-scale mining such as this is not the only way to extract mineral resources. Mining on a smaller scale has a role to play in creating such as community sup- wealth for companies and communities. port. The nearby people must be con- This suits the values of many First able may be with the local Band or vinced that the mine is a positive thing for Nations people in that they are working municipal offices and other public-sectheir future. Going one step further, it with team members who are also neigh- tor entities such as the schools. With becomes, in effect, a community mine bours, possibly relatives. this possible future in front of them, The mine may “work” best from a the community can be encouraged to providing long-term stable employment for people in the community. This can be community perspective if it fits into the press for startup funding and training highly attractive to First Nations entities, community’s lifestyle and values. This investment from the provincial or fedwhich can provide a small, closely knit may include shutting down for the win- eral government. workforce from the local community. ter or during hunting season, when Successful micro-mining requires the many community right kind of consulting support. This members fill their means finding someone with a wide freezers with a range of skills and understanding, able year’s meat supply. to contribute to all aspects of success, The mining will right from exploration through to cloalso need to be sure. The consultant needs to know done in a way that more than geology; it is important to respects the com- understand the finance world and be munity’s perspec- able to help present the concept to tive on the value of financial sources as well as government nature. entities. The consultant also needs to If the idea of the support the overall philosophy, which mine is presented includes skills transfer, so that local locally as a way to people develop marketable capabilities help provide they can apply to other projects. municipal revenues Many people in the mining sector, and well-paying schooled in the “go big or go home” way jobs for commu- of mining, will find the idea of micronity members, the mining slow and unattractive. But for local municipality those who want to contribute to a comwill likely be eager munity’s well-being and build a sustainto support the proj- able business model, it may be a glimpse ect. Leaders may of a better future. CIM see this as a way to breathe new eco- Eric Hinton is a senior mining engineer in nomic life into the Red Lake, Ontario office of Golder their community, Associates Ltd. Kevin Palmer is a resource where unemploy- geologist and Qualified Person who has ment rates may be published NI43-101 Technical Reports. He high and the only is based in the Burnaby, BC office of formal jobs avail- Golder Associates Ltd. 12

CIM Magazine n Vol. 2, Nº 5

Guy Belleau, Jim Gill, and Ed Stuart ready to push the handle for the ceremonial blast. Photo courtesy of Rex Gibbons.

Working on the Duck Pond means more jobs for Newfoundland

A sample of Duck Pond ore and core on display for the official opening.

August 2007

Rock

I remember, way back when I was a teenager graduating from high school I felt more than ready to venture out into the ‘real’ world. Having lived my entire life surrounded by nothing but trees, grass, and sky, I couldn’t wait a minute more to get out to the big city and live a busy, fast-paced life, surrounded by interesting people and exciting places. Oddly enough, everything that once seemed so fascinating and intriguing is now the basic mish-mash of my worst nightmare… and I want nothing more than to grow old in my middle-of-nowhere hometown, surrounded by nothing but my trees, grass, sky, and familiar faces. This sudden epiphany actually hit me as I was on the phone with Aur Resources’ Duck Pond mine manager, Guy Belleau. The new mine is currently Aur’s only operation in Canada, and apparently people are fighting hard to get on board the Duck Pond workforce. Everyone is excited about the opportunity to stay and build their lives in the province they themselves grew up in.

Aur Resources, a Canadian mining and exploration company, began in the early 1980s when geologist Jim Gill decided it was high time to start finding mines to develop not for other people or companies, but for himself. Aur presently runs three mines—Quebrada Blanca, Andacallo (both in Chile), and, of course, the newest edition to the trio, Duck Pond, located in central Newfoundland. The new base-metal mine has come a long way since mineral exploration started in 1973 by Falconbridge and Noranda, and Gill is impressed with how well

by CAROLYN HERSEY things have been running, hoping to make this the best mine it can be. In January 2002, the Government of Newfoundland and Labrador finally approved the development of the project and construction began three years later in 2005. Construction was completed by December last year and the official opening was at long last held on May 9 of this year.

13

Another of Aur’s projects, Louvicourt (near Val-d’Or, Quebec), closed down in 2005 after 11 years of operation, around the same time development for Duck Pond began. The mine therefore holds great value in more ways than one. Aur Resources was fortunately able to keep all of their esteemed and experienced senior workers.

Hard-working men and women, who would have wound up jobless after 11 years of employment, were easily able to transfer over to the new mine. Guy Belleau, for example, who is now the mine manager at Duck Pond, was at one time the superintendent at Louvicourt. Another reason why the project is oh-so-very-valuable—being Aur’s only project in Canada for the moment, the company was able to continue operations in its country of origin after having closed Louvicourt.

When construction began, there wasn’t much in place besides the exploration camp. Given the circumstances, the Duck Pond mine was developed using the ramp method because it was the most practical and economical amidst their options. It allowed for the use of trucks (ranging in size from 26 to 45 tonnes) to transport ore from the stopes to the surface. Other operations that are deeper or of different geology Aerial view of site might use headframe or shaft access, but this method is the most efficient and inexpensive for this particular ore body and its location. The portal, or entrance, provides access to the mine ramp. This is where people, equipment, and materials enter and exit the mine. It’s also where the product finally makes its way to the surface and enters the mill process. The ramp into the mine is at a 15 per cent gradient. While not as steep as some ramps around the world, it serves its purpose perfectly.

The new copper/zinc mine has an anticipated life of about six years, but Gill said that the property is being explored in a number of ways that could prolong its shelf life. There are some resources identified in the Duck Pond deposit that need to be upgraded into reserves. Aur trusts that this year’s drilling will allow for those upgrades to be made. Perfect timing, because with today’s technology, more and more people are opting to work from home. So, as the demand for multiple phone lines, fax machines, and security systems increases, so in turn does the demand for copper.

Copper has a wide array of uses—from electrical transmission, water tubing, heat exchangers, to copper wire and pipe…even our beloved penny! It has extremely high electrical and thermal conductivity, a high melting point, great corrosion resistance, good tensile strength, and is, not to mention, non-magnetic. Of all the industrial metals, copper is the most efficient conductor of electrical power, signals, and heat. In a world where home appliances, electronics, and computers will never go out of style, the demand for copper can only go up. It’s estimated that there will be a 3.5 per cent growth in its requirement over the next few years, with production reaching about 18 million tonnes a year. Most of the copper concentrate that leaves the Duck Pond Mine in Newfoundland is smelted at different locations and turned into sheets for ease of manufacturing.

The most exciting of all Duck Pond’s great qualities, in my opinion, is that it provides an opportunity for Newfoundlanders to work,

build a life, and raise their children in the very place they grew up.

“In heaven, you can always tell which people are from Newfoundland—they’re the ones that want to come back home,” said Belleau. He himself made the move to Grand Falls-Windsor after having visited only once. After a brief, 20 minute over-thephone conversation with the new mine manager, I can easily tell he is a man who takes great pride in his work and all the people who work along with him.

TEMPORARY WASTE STOCKPILE CRUSHER

COARSE ORE CONVEYOR COARSE ORE BIN

MINE PORTAL

MILL

SERVICE COMPLEX WAREHOUSE

OFFICE / DRY COMPLEX

14

CAMP

SECURITY / FIRST AID

Aur Resources originally estimated about 190 employees would be needed for the project, and this number has already been long surpassed. Thousands of resumes poured in from all over the country, from people longing to come back to their hometown, and with only 200 spaces to be filled, you can bet some people were slightly disappointed.

Newfoundland hasn’t quite been known for its booming business opportunities. Despite the people’s strong willingness to work, many are forced to travel elsewhere in search of employment, sometimes leaving families behind for months at a time, and sometimes having to pick up and move altogether. When the opportunity to come home arises, many proud citizens would snatch at the chance, which is why Duck Pond has had no shortage of good workers to choose from. The area itself has a strong and lengthy mining history, with experienced workers abound, totalling decades of high qualifications and skills.

Aur takes great pride in their commitment to hire as many competent local workers as possible; only a small handful of the 204 employees that work at Duck Pond are not Newfoundlanders. Many have gone to work for other mines in various Canadian provinces and have quickly returned when news came of the upcoming mine. The already established community has welcomed the project with open arms. Thus far, people have been nothing but supportive. Partners, communities, contractors, and all those involved have lent a hand in contributing to the well-being and genuine success of the project. The community is pro-mining, especially if it means that families and their children can come home again.

Duck Pond places just as much emphasis on caring for workers and their loved ones as they place on environmental and safety issues. Built in compliance with any and all safety and quality ethics, Belleau says that this mine truly is a success story. It has become a “beacon for people who want to work in their home province.” I guess there really is no place like home. CIM CIM Magazine n Vol. 2, Nº 5

Only predictable thing is unpredictability Some insights into the state of gold

by Dan Zlotnikov Michael George, the gold commodity specialist on the United States Geological Survey Mineral Information Team, has people calling him on a regular basis, asking him about the price of gold.

“They ask me what the price of gold will be next month,” said George, “and I tell them there are three options. It can go up, down, or stay the same. And I’m betting it’s going to go up or down. And I’m right about 90 per cent of the time.”

George’s job is to write articles and answer questions about gold. The questions can come from both the usual suspects—investment bankers, commodity analysts, brokers—and the less expected ones: George knows without looking when term paper season starts, for example.

When it comes to price forecasts, “the only predictable thing is unpredictability,” he said. “I think meteorologists have an easier time.”

One thing George is standing behind, though, is that there’s a lot of interest in gold. “People call me up and want to know where there’s gold development going on. I tell them, ‘look out the window. Do you see dirt? Then there are people digging for gold somewhere near you.’ If there’s dirt, there’s gold.” The only place that hasn’t seen exploration is the Antarctic, and we really do mean the only place. “Bottom of the Pacific Ocean? They’re looking there. Atlantic Ocean? They’re looking there too.”

George mentioned two companies involved in these unusual projects, the aptly named Nautilus Minerals and Neptune Minerals. The former is working off the shore of New Zealand; the latter, near Papua New Guinea.

“They aren’t doing it all on their own,” said George. “There’s investment coming from the major gold firms.” Nautilus Minerals, for example, lists Placer Dome (now Barrick Gold) as a major investor.

August 2007

The tools for getting gold Guy Deschênes, a gold processing researcher with Natural Resources Canada, does not believe we will see any major technological breakthroughs in gold processing in the near future.

Instead, he believes advances will continue to bring gradual efficiency improvements, in areas such as reagent consumption and management.

This is not to say there isn’t research being done into potential breakthrough areas. Deschênes himself was originally brought in to work on one such project.

“When I was hired here, it was to look at cyanide substitutes, 22 years ago. And I worked on that for four years—at the time it was a very popular area. But we didn’t get any results. For a while it went slow, but then it started again. Placer Dome, about ten years ago, wanted to find an alternative, and they gave themselves about seven to eight years. And eventually, about six months before the takeover by Barrick, they saw they weren’t getting anything, so they gave up. But they weren’t the only ones working on this; there were other companies doing this research as well.” But thus far, none of the research and money has resulted in a cost-effective alternative, either for

the cyanide used in leaching, or the carbon used for filtration.

Deschênes knows how rare and difficult major breakthroughs are to achieve: he is partly responsible for one; the 50-fold decrease in cyanide used in silver leaching out of aurostibite (a gold/antimony mineral mix).

“The technology that we invented leaches silver more efficiently using less cyanide,” said Deschênes. “When gold is present, its extraction is slightly higher than using the conventional technology. The heavy metals also dissolve less. The treatment of the effluent is consequently cheaper.”

15

The lower likelihood of breakthroughs, according to Deschênes, is also due to the approach mining companies take to research. “The culture of research and development in the mining industry is much more conservative than in other areas such as electronics, computers, and aerospace. A recent survey of the mining industry indicated that they would like the federal government to invest in long-term research with high risk and large impact. The mining industry would rather invest in short-term research with low risk.”

With the increasing interest in gold, brought on by high prices, more money will likely trickle down to research.

However, even if that happens, we’re unlikely to see any results for a few years yet.

“Usually it’s a newer mine that uses new discoveries, because they don’t have to go through a switch-over,” explained George. “Suppose you’ve developed a magic way of processing gold, say a carbon and pulp filtration technology. You demonstrate that it works well, you go to all these shows, show it to all these mining companies, and convince one of them to do a pilot project. If it works very well, then that company will take it and say ‘okay, let’s patent this, and let’s use it in this new mine that’ll open in four to five years.’

And then they use it, and everyone sees it, and says, ‘oh yeah, it does work better,’ and will adopt it as well. That’s how heap leaching did it.”

This complex and—for lack of a better word—conservative process means that any advances take a decade or more to achieve wide adoption. As a result, the short-term gold price is virtually immune to any technological developments in the industry.

Gold on the market The same, unusually, can be said for the effects of gold production on the metal’s market price. The simple reason for this is that once extracted, gold stays around pretty much forever.

“There are 158 thousand tons of gold in above-ground stockpiles,” said George. “There are 28.5 thousand tons in official reserves, which is banks and governments. There are 25.8 thousand tons in private reserves, such as exchange-traded funds (ETFs). The vast majority, 81 thousand tons, is in jewelry.” But if the market price of gold skyrockets? Most of that gold will end up on the market faster than you can blink.

“People buy gold as a hedge against inflation,” explained Bart Melek, a global commodity strategist with BMO Capital Markets. “This is especially true of the developing world, which has been

getting richer, but doesn’t have quite the sophisticated financial system in place.

Gold is the easiest way to protect yourself against inflation in these places.”

Historically, gold value has increased enough to match inflation. Melek points to India and the Middle East as two major buyers of gold. George added that countries experiencing political instability have been known to buy gold— and then keep it outside the country.

“There’s a concern that if you keep currency, it might be frozen by the US government,” he said. “But if you have gold in a Swiss bank account, it’s very unlikely to be frozen.” George suggested that may be one reason the Swiss are buying gold in significant quantities— to act as intermediaries for this type of transaction.

In terms of current demand, India, traditionally the biggest consumer of gold, has seen somewhat of a decrease this year, said George. “Traditionally, if there was a good crop in India, they bought more gold. This year, it’s dropped off, and they had a good crop.

It may be because they’re buying gold ETFs instead of gold jewelry.” There’s already been a trend of Indian buyers moving away from jewelry towards gold bars, coins, and even investment.

One theory George offered is that Indian consumers are beginning to

At least he had a permit

by Dan Zlotnikov Michael George, the gold expert with the United States Geological Service, has long since learned to not be surprised by things when it comes to gold and gold mining. But still, every once in a while, something shows up that makes him sit up and do a double-take. This is, quite literally, what happened on a business visit to Nevada.

“I was driving down the road and I looked over and saw this guy with a backhoe in his backyard, digging. I got kind of curious, so I stopped and looked, and he had blue vinyl lying on the ground, in a pit. And I looked closer, and… he had a heap leach pad in his backyard.

He was digging up the dirt, and putting it in the leach pad and leaching it, in his backyard.

That shocked me.”

When he made it to his destination, which happened to be the state mining authority, “I asked them about the guy, and they said, ‘oh yeah, he has a permit.’ Well, at least he had a permit.”

16

CIM Magazine n Vol. 2, Nº 5

gain trust in the Western markets, and are investing more in gold stock, instead of physical gold. Either way, the decrease in Indian gold purchases is one factor for the somewhat disappointing gold price.

When it comes to cash costs, the trend has been towards gold processing costing more per ounce as time goes by.

This is happening for numerous reasons. “The decrease in the value of the US dollar,” said Melek, “is one significant factor. The dollar has dropped 30 per cent or so since 2002, a sharp decrease in value.” The other factor is that most of the easily accessible, rich gold deposits have already been mined.

More and more nowadays, companies are turning to deposits they previously dismissed as uneconomical. Frequently, that means going back to previously shut down mines, projects closed when the gold price was less than half what it is today.

August 2007

George expects that of the myriad of projects being started up, about a quarter will come online in under a decade.

“The rest may come online 10, 20, 30 years down the road. A lot of the ones coming online now were considered uneconomical even ten years ago.”

Gold on the map Even with all the exploration going on today, there are still parts of the world that are blank spots on the gold map. “South America is one,” said George. “Companies have stayed away from South America, primarily due to political instability. But now they’ve learned, found ways to protect themselves at least somewhat against that risk. Still, Brazil has a lot of land to dig in.” So does Russia, with its combination of enormous territory, extreme weather conditions, and the occasional political upheaval. China, said George, is a weird case.

“China is already a major gold producer. I heard it said that China has ten thousand gold mines. But they’re all very small mines. And this is true of not just gold, but other metals as well. I saw a photo at a conference of an aluminium smelter that was a grass hut with a single pot. And I’m used to going to smelters that have pot lines with 20 pots a line, and 16 lines, and the building is half a mile long…” The Chinese mining industry seems to have plenty of room for growth, especially in terms of efficiency improvements, but George explained that China as a market is very different, and many foreign companies are finding it very difficult to get in.

Still, with at least one gold mining partnership (between Canada’s Inter-Citic and the Beijing Geological Institute and the Qinghai Geological Survey Institute on the Chinese side) already in progress, more companies are sure to make a try. CIM

17

Putting flesh on good bones Kinross Gold focuses on production expansion

by Heather Ednie Kinross Gold is building its future.

With operations spanning the globe, the Canadian mining company is positioning to be a major producer of gold.

Recently, CIM caught up with Tim Baker, executive vice president and COO, to discuss Kinross’s current activities.

CIM: Kinross has a number of gold operations and projects. What are some of today’s highlights?

Baker: We have lots of activity going on—we’re radically transforming Kinross. The Paracatu operation in Brazil promises a long mine life. With great people and such an expanded production rate, it will be a cornerstone for the company. We continue to evaluate options at each of our proper-

ties, such as at Fort Knox in Alaska, to extend mine life and to increase our flexibility. Existing operations like the Round Mountain mine in Nevada are producing lots of gold, while permitting at the nearby Gold Hill deposit is ongoing. The team there is really pulling together now. The development of our Kupol project in Russia is coming along very well and it promises to be one of the best and lowest cost gold mines in Kinross’ portfolio. The Cerro Casale is a huge project, which, if a decision is made to build, will take lots of energy and resources.

There’s a lot happening, and there will continue to be. We’ve continued to grow our gold reserve base at our core operations and we now have the fifth largest gold reserve base in the world.

CIM: The Paracatu n mining, environmental mine is a large protection and business scale open pit success should not be mine located less mutually exclusive. than three kilometres north of the We understand both. city of Paracatu, in the northwest part of Minas Gerais State, 230 kilometres from Brasília, the capital of Brazil.

Kinross acquired ownership interest in the Paracatu mine upon completion of the combination with TVX on January 31, 2003. On December 31, 2004, Kinross completed the purchase of the remaining 51 per cent of Paracatu from Rio Tinto.

I

18

Construction underway at the Kupol project in Russia

An estimated $470 million expansion project is ongoing, expected to start production mid-2008. What can you tell CIM members about it?

Baker: The Paracatu expansion project is now around 35 per cent complete, and on-track. We’re purchasing a new mining fleet to feed the new plant—we presently operate series 992 loaders, series 777 trucks, and we use dozers to haul the ore into loaders, as it is so soft that blasting is not required. We’re purchasing nine 793 Caterpillar trucks, a Bucyrus 495 shovel, a couple of 994 loaders, and a couple of drills, all of which are suited to the new plant.

A new mill is under construction that will employ standard technology, including a big 38-foot SAG mill, a couple of 40x24 foot ball mills, a flotation circuit, and an upgraded hydromet plant. Paracatu presently processes about 18 million tonnes per year of soft, low-grade ore—there’s virtually no waste. Initial total throughput with CIM Magazine n Vol. 2, Nº 5

the new mill will increase to approximately 58.4 Mt for the first five years after commissioning of the new plant.

We’ll keep the old mill running to treat

August 2007

the soft ore, and the new mill will treat hard ore found below the soft. We’ll run the two mills in parallel for the next 10 to 12 years, then evaluate what

to do with the old plant once the soft ore is mined out.

Paracatu is already one of Brazil’s largest gold mines, and is expected to

19

be one of the western hemisphere’s largest gold mines and a growing contributor to Kinross’ production profile in 2008 and beyond.

CIM: The Buckhorn Mountain project is located in north-central Washington State, about 76 kilometres from Kinross’ Kettle River gold milling facility. Production is expected to begin later this year. What highlights can you share from Buckhorn?

Baker: Buckhorn is expected to contribute approximately 160,000 gold ounces per year at low costs, and is currently in the construction and permitting stages. Currently, portal development has commenced and the water treatment facilities should be completed by the end of July. The existing Kettle River mill is currently on care and maintenance, but will be restarted to process the Buckhorn ore.

CIM: Kinross acquired the Kupol project in Far Eastern Russia this past February through the acquisi-

20

tion of Bema Gold. Located in the Chukotka region, about 220 kilometres southeast of Bilibino, the project consists of a high-grade gold and silver vein which remains open along strike. Development of Kupol requires the construction of a 3,000 tonne per day mill and will employ both open pit and underground mining methods. Construction began in 2005 and production is expected to begin in late 2008, with an average annual output of 418,000 ounces of gold equivalent, operating as one of the lowest cost gold and silver mines in the world.

Where does the Kupol project stand today?

Baker: Kupol construction is now around 60 per cent complete. All equipment has been delivered to site, and operating supplies for the first year of operation are presently being shipped to the port of Pevek in northeast Russia, to be hauled across the winter road next winter to the mine site, which is located within the Arctic Circle.

In the open pit mine, stripping of waste is well advanced and we’ve started stockpiling ore now in preparation for mill startup. The underground mine is being developed, using Tamrock equipment. Some headings have been driven into the ore zone and some ore has been stockpiled.

We’ve installed refurbished SAG and ball mills, which originated from a mine in Tonopah, Nevada.

Primary power generation comes

from four Wartsila diesel generators, with back-up Caterpillar generators.

It is a major logistical exercise shipping supplies in, with cyanide coming from China, lime from British Columbia, and mill balls from Canada.

During the operating years at Kinross’ now closed mine, Kubaka, a pool of well-experienced, proficient miners and operators had been developed and will be a valuable resource to the Kupol team. The Julietta mine has continued this tradition, and Kupol is now able to draw on these talent pools.

This is of significant benefit as activities at Kupol increase in preparation for commissioning in 2008.

The remote location of the site and the difficulty shipping materials there make it imperative that we do a very good job, both in planning and implementation. We are confident that this has been achieved and the operation will be ready to role when construction is completed.

CIM: Kinross acquired its 49 per cent interest in the Cerro Casale deposit in the Atacama region of Chile in February through its acquisition of Bema Gold. The deposit, discovered in 1996, is a large gold and copper deposit with reserves of 23 million ounces of gold and six billion pounds of copper, and is arguably one of the largest undeveloped gold/copper deposits in the world. Development capital was estimated at $1.96 billion in the 2006 feasibility study. Does it look like the project will progress?

Baker: We’re drilling this year at Cerro Casale for metallurgical testing, and it continues to be a very interesting project, especially at today’s prices, though it continues to be a challenge due to the high capital costs.

Bema finalized a feasibility study last August—the fourth I think since Placer Dome completed the first feasibility in 1999—and they all say the same thing, that there are high capital requirements. The results from the drilling this year will help us to better evaluate the possibility of going forward with mine development.

CIM Magazine n Vol. 2, Nº 5

Portal utility drilling at Buckhorn Mountain

CIM: What are some of the other optimization projects across the Kinross operations?

Baker: A key focus for Kinross is on continuous improvement. There are a number of projects being targeted at each property with the aim of optimizing production, cutting costs, and increasing mine life. For instance, at Round Mountain we’re installing a spiral tails flotation circuit which will be running next month. This $4.6 million investment in two MinnovEX Flash Flotation Contact Cells and associated equipment will treat the spiral tailings to capture the gold that is too fine to be recovered by the spirals. We expect about a two per cent increase in recovery.

At Fort Knox, we’re evaluating a heap leach scenario. No decision has been reached yet, but we’re going through the permitting process. Heap leaching in Alaska will be challenging, but based on our experience at 4,500 metres in elevation at the Maricunga mine in Chile, we’re confident we can do it.

August 2007

Fine tuning work is ongoing at Maricunga, with the aim to move more tonnage through the crusher. We are seeing improvements already this year with 45,000 tonnes per day being sustained over long periods.

CIM: Kinross acquired Bema Gold last February, bringing with it a number of operations and development projects. How does that acquisition fit into the Kinross strategy?

Baker: The acquisition of Bema Gold was a perfect choice—it brought us good projects 21

and great people. Bema’s principal projects in Russia and Chile have been an excellent fit with Kinross’ experience in those countries. The Kupol ore body is a world-class ore body, and is expected to commence production in 2008. In Chile, we have consolidated our ownership in the Maricunga mine, previously operated by Kinross and jointly owned by Bema, which therefore required no physical integration. Finally, we added the possibility of future potential with the Cerro Casale project.

CIM: What are some of the major contributors to Kinross’ success?

How will they be taken into account going forward?

Baker: Our greatest strength lies in the quality and experience of our people at the operations, at the country offices, and at the head office in Toronto. We rely heavily on the local teams to make local decisions, with the support of the corporate team, through integrating systems and providing leadership and strategic direction.

Kinross’ safety and environmental record is top notch, which is one reason I was happy to come on board. We continue to improve and push the envelope on performance. As well, we’re upgrading our human resources systems with a strong focus on performance management. We have a clear understanding of the need to attract and retain the best and are putting in place the systems to do just that.

Really, we’re simply putting flesh on good bones. With a production profile increasing from an expected 1.65 million ounces in 2007 to 2.1 to 2.2 million ounces in 2008, then we’ll jump to 2.6 to 2.7 million ounces in 2009. This is an exciting time, and we have the best team dedicated to achieving our goals. CIM 22

The dollar-gold relationship

by Dan Zlotnikov Despite the rising gold prices, some analysts are disappointed with the metal’s performance, saying the price jump did not meet their expectations. Bart Melek, global commodity strategist with BMO Capital Markets, sheds light on a few of the reasons for the (relatively) poor performance.

First and foremost, why are gold and the dollar tied in such a consistent inverse relationship?

When the dollar drops in value, gold goes up, and when the dollar gets stronger, gold takes a nosedive, and so it has been for a very long time indeed. “Gold,” said Melek, “has historically been the most convenient and accessible hedge against inflation. Gold has traditionally increased in value fast enough to at least keep up with inflation. When people, especially in developing countries where the financial systems aren’t as sophisticated, want to protect themselves against inflation, they buy gold.”

The dollar, and Melek clarifies (only half-jokingly) that despite popular belief, there’s only one “dollar,” is one of the world’s major trade currencies, and its value is a reflection of the world’s most powerful national economy. If investors around the world lose confidence in the stability of the dollar’s value when they are concerned about possible losses due to inflation, you’re bound to see a sudden interest in anything that can provide security against inflation, which is where gold comes in.

The above suggests then that gold prices remained lower than expected because the dollar did better than the investors anticipated. That is, in fact, exactly what happened, says Melek. One reason for this turn of events is that the collapse of the US housing market did not hurt the rest of the economy as much as anticipated, at least not yet. Real estate, representing a major portion of the US economy, has spread its misfortune far and wide and had an overall slowing effect on US inflation, but not enough to convince the Feds to lower rates. The Federal Reserve was expected to ease interest rates in an attempt to offset slower housing, but instead it is expected to keep them at the current level. For the time being, the dollar’s value has stabilized, and even recovered some. The investors, in turn, slowed their rush to sell off the dollar, and investor demand for gold has predictably dropped off.

In a related event, the European central bank has sold off some of its gold stockpile, most likely in a deliberate attempt to restrain the increase in gold prices. The Washington Agreement, of which most central banks are signatories, restricts the sale of gold stockpiles to 500 tons per year, a point the European Central Bank system has already reached, effectively putting an end to that sell-off.

But despite the massive injection of gold supply into the market, the price is not in a freefall and Melek believes will be back on track for hitting the $700 mark before the end of the year.

On the mining side of the equation, we are continuing to see a slow decrease in mine production. This decrease is primarily caused by the constantly decreasing grade of the available reserves, but ongoing shortages are also exacerbating the problem. Shortfalls are making themselves felt in every area from skilled labour to drills to the most basic consumables such as truck tires and even cement. While not directly affecting the market price of gold, these shortages serve to increase the cash costs of production, pushing borderline projects into the red, and decreasing the flow of the metal to the markets.

On a larger, longer-term scale, Melek points out that despite the current recovery, the dollar is still not doing well. “Since 2002, we’ve seen the dollar drop about 30 per cent,” he says, a very significant decrease. And according to Melek, the dollar has a ways to go yet before it begins to recover. The European Central Bank, Melek says, will continue to set its interest rates higher, continuing to make the Euro more attractive an investment than the US dollar. The US trade deficit, already large and still growing, will have to be addressed before any recovery of the dollar’s value will occur. Finally, somewhat of a wild card, China might give in to the pressure, and set its interest rates and currency value to reflect its actual economic state. With its strong growth, Chinese currency is likely to prove an attractive purchase, once again undermining the value of the dollar.

And gold, in turn, having already hit a 26-year high, will keep going up. Will it get to new, previously unseen highs? That, as they say, is the million-dollar question. CIM CIM Magazine n Vol. 2, Nº 5

Next McDonald’s: 100 miles

by Dan Zlotnikov Congratulations! It’s a gold mine!

Not quite newly-born, but definitely in the very early stages of its life, the Pogo gold project has gone from making its first steps to a confident walk. There are excellent reasons for Pogo and its owners Teck Cominco (40 per cent share and the operators of the site), Sumitomo Metal Mining (51 per cent), and Sumitomo Corporation (9 per cent) to be confident. The mine achieved its commercial production goal on April 26 of this year, and is moving towards its full production goal of 2,500 tons of ore per day. According to Teck Cominco Director of Investor Relations Dave Splett, full production rates will be reached some time in the second half of this year. At the moment, the mine averages 2,100 tons of ore a day.

The site was originally discovered in 1994, by Sumitomo Metal Mining,

explained Teck Cominco’s Vice President of International Mines Dale Andres. By 1997, an agreement was reached with Teck Cominco, whose predecessor had a history of working with Sumitomo. The same year, Teck Cominco began exploratory drilling at the site.

The exploration continued until 2000, by which time a significant amount of reserves was found, allowing the venture to move forward with engineering, permitting, and construction. The permitting, Andres noted, was completed in only four years, which is a credit to the team that handled it. “Typically, permitting a mine in under four years in the United States is a very good and uncommon achievement.” The permitting also included permits for an 80-kilometre (50 mile) access road, the first such in Alaska in

a long time, according to Andres.

Following the receipt of the final permit and the withdrawal of a permit challenge by the Northern Alaska Environmental Center (NEAC), construction could continue at the site.

Teck Cominco managed the project, with AMEC providing engineering services. It is around this time that Bob Jacko was brought in by Teck Cominco as the project’s general manager, a role he continues to fill today.

No doubt, both the mine owners and Jacko himself would have preferred to say “and they all lived happily ever after” at this point, but the Pogo tale is not without its twists and surprises. To start with, the mine was being explored when gold dropped to $300 an ounce in 1997 and stayed down, only reaching the $400 point in 2003. Andres explained how this affected the project.

gold mines, Jacko explained. “The filtering plant is a prime example. There was lots of good work done on filtering capacity and the bulk sample was taken and you’ve come up with all the information at the time. But now you start mining the orebody. You took a 5,000ton sample out of one little corner, but now, all of a sudden, we’re mining in 14 different faces, and all the faces are slightly different. The mineralogy is slightly different, the materials are slightly different. This affects the fineness of the grind, for example.”

The filtration system, originally made up of two massive Larox pressure filters, proved insufficient to handle the tailings volume and created a bottleneck, which prevented the mine from reaching commercial production levels.

To solve the problem, a third filter had to be brought in.

“The process involves dry-stacking the tailings,” Andres explained, “which means all the waste stream from the mill needs to be filWe have the conveyor belt tered. The filter plant could not accessories for your mining meet up with operoperation you can rely on ating requirements to attain commerPrimary & cial production. We had to install a Seconday third Larox presBelt Cleaners sure filter and make changes to the way the tailings were handled after filtraImpact Bed tion as well.” The Protection two projects, according to Andres, took 40 weeks to complete Wear Liners and required an for Every additional US$21 Application million capital expenditure over and above the original scope of the US$350 million Toll Free (US & Canada) 800.237.6951 project.

Email info@richwood.com No less imporwwww.richwood.com tant are the problems inherent in

“Gold prices were depressed in the first part of this decade, so Pogo stayed on the table, waiting to be approved, and it had quite a bit of detailed engineering done because of the low gold prices at the time. We wanted to make sure it would be economic and that we could get all the permitting. We didn’t want to make an approval decision before we had all the permitting in place.”

Of course, once the mine was approved and built, the challenges didn’t disappear—they simply changed to new ones.

“Starting up a new mine isn’t the same as moving into a house where all you have to do is hang the curtains,” said Jacko. “You get the plant up, you get it commissioned, and you start operating right away, and the only thing you’re dealing with is the information from the feasibility study.” There’s no such thing as “typical” when it comes to

RICHWOOD

24

the daily operation of the mine. Splett, who until two months ago served as the operation’s controller for Teck Cominco’s metallurgical division, explained.

“The various circuits have to be filled and then you have to be bring these circuits into balance between the various stages.

You have the frontend feed, crushing, then the reagents and the separation. On the back end you have to start filtering out the tailings and the whole system has to be in balance. And over and above that, the mine has to be in balance with the refinery and the mill on the surface. These challenges are ones a mature operation would not experience.”

With a mature operation, Splett added, the challenge is finding new deposits and finding where to develop new blocks. Hemlo, Teck Cominco’s mature gold project near Marathon, Ontario, is having to face these, but has long since optimized its production cycle and achieved the very balance Pogo is struggling to find. Expertise and experience, Jacko added, are major factors as well.

“With a mature operation, people have been there for 10 to 15 years, so they know the quirks of the orebody.”

But at Pogo, turnover is still high, and there’s been little time to get a good feel for the ore. “Pogo’s turnover is 40-plus per cent, compared to two to three per cent on the Polaris Project. Mostly, it’s people coming out then realizing Pogo isn’t right for them. Mainly it’s people wanting to go home at night”—someCIM Magazine n Vol. 2, Nº 5

thing that isn’t feasible due to Pogo’s remote location.

Still, the current challenges are, as Splett and Jacko describe them, limited to “tinkering” with the process.

Granted, when dealing with the extreme conditions of the Alaskan winter, “tinkering” can have serious repercussions.

The pipes on the surface are used to transport anything from potable water to mine water to any other liquid needed in the process, and when the temperatures drop to -40, thermal insulation isn’t always enough. “We ran into some problems like the fire in ER1,” added Jacko. The fire, which broke out in an above-ground power substation August 2007

on October 19 last year, knocked out power to the mine. Operations were halted almost completely until full power was restored in early December.

Fortunately, the mine’s portable generators allowed regular maintenance to continue, a well as some construction and mining.

The ongoing optimization and finetuning also means it is harder to predict reagent consumption rates, which is a greater challenge then it would be normally. This is, at least in part, due to the booming business in other mining sectors. The sudden scaling up in operations across the globe has put a great deal of strain on the equipment and con-

sumables manufacturers, frequently to the point where they have been simply unable to meet the demand. “It’s even simple things,” said Jacko. “The inventory that you typically have to carry onsite now has increased a great deal, where at one time, either the suppliers kept it or the manufacturer did. It’s very common for us, when we’re short a part, to have to go back to the manufacturing location, to Europe or wherever it happens to be, to get the part.”

An Air Force officer once stationed in Alaska shared the directions offered by his captain to the nearest McDonald’s to the base: “Just turn left at the first traffic light, and it’s right 25

“The commitment here by the folks—whether it be in the mine, maintenance, mill… has really been

first class” B. Jacko there.” The missing, yet important, bit of information is that the first traffic light is about 100 miles down the road.

Jacko, when told the story, laughed, and agreed with the description, even guessing that the officer was serving at the missile base down the road from the mine. This may put things into perspective when one thinks of the distances involved in working on Pogo’s supply chain. “The logistics for a lot of the mines in Alaska are fairly

involved,” said Jacko. “Most of your product line will come from the lower 48 US states, Canada, and Europe. You either have to truck it all the way through into Alaska, or into the port of Seattle, and it gets loaded onto barges or steam ships, and gets landed up here. Then it goes onto rail or onto a tractor-trailer, and brought into Fairbanks.” Only then does the part or consumable get shipped off to the mine site itself. “You’ve got delays here you

don’t normally associate with the Hemlo camp area.”

Compounding on the supply difficulties due to the remoteness of the site is the relative lack of underground mining developments in Alaska. Also relevant is the cumulative size of the operations near the site in question. “If you look at how many pieces of underground equipment are in the Sudbury basin, I wouldn’t even hazard a guess. We’ve got about 20 pieces [at Pogo]. They’ve got maybe 200 to 250?”

That includes all the mining projects in the area, such as the Kirkland Lake mines, Timmins, and Noranda [now owned by Xstrata]. Put together, “they just dwarf us in size.” In Alaska, on the other hand, Jacko said, “mining, espe-

YO U R G L O B A L PA R T N E R O N G O L D P R O J E C T S

MINING INFRASTRUCTURE

METALLURGY

Toronto Office: 2200 Lake Shore Blvd. West Toronto, Ontario M8V 1A4 Tel: (416) 252-5311 Fax: (416) 231-5356

26

SNC-Lavalin Inc. Mining & Metallurgy Division mining@snclavalin.com www.snclavalin.com

Montréal Office: 455 René-Lévesque Blvd. West Montréal, Québec H2Z 1Z3 Tel: (514) 393-1000 Fax: (514) 866-0795

CIM Magazine n Vol. 2, Nº 5

cially underground mining, is fairly new in Alaska.” Ontario, on the other hand, has a long mining history, and equipment suppliers have built up accordingly. “There’s a huge population of equipment and people and knowledge and skill sets. In Alaska, there’s us, there’s Nixon Fork, Greens Creek, and that’s it—three operating underground mines in the whole state.”

Nor are any of the other mines near Pogo. Kennecott’s Greens Creek project is, by Juneau, only accessible by air or water. Nixon Fork, owned by Nevada Goldfields, is near McGrath, over 200 miles west of Anchorage. Each requires its own supply chain, and the costs involved are non-trivial.

Despite all these challenges, Splett and Jacko are confident in the continued success of the mine. Polaris, now under active closure, boasted the title of the world’s most northern mine. Teck Cominco, Splett said, has a long history of success operating northern, remote, and extreme-condition mines. This is one of the reasons, according to Splett, that Sumitomo selected Teck Cominco as the project operator. “We’ve got some history with Sumitomo, and we became the operator because we understand working in North America and working in the north of North America. I think Sumitomo recognized that we have a significant amount of skill and Pogo has employees with experience from previous Teck Cominco northern operations, but also Alaskan experience dealing with the severe winters. There are a lot of folks here with a lot of experience in these temperatures—not just me.”

“There’s a lot of history of Teck Cominco in northern operations,” Jacko agreed.

While the company does not necessarily seek out this specific type of project, Splett said, Teck Cominco’s partners recognize the experience, and “when they see that skill may be required in developing an operation, they may very well ask us to be the operator.”This happened in Fort McMurray, Alberta, as Petro-Canada has asked their partner Teck Cominco to take over as operator of the bitumen mine of the Fort Hills Oil Sands project.

August 2007

Today’s estimate for the project life expectancy is ten years, but that number will likely change. “We continually do summer exploration programs, typically from mid-May to mid-September. About 37,000 feet of drilling will be done.

We’ll continue that in efforts to find new zones in the Pogo claim block.” The area, according to Splett, is relatively under-explored, but has excellent potential for new findings.

As far as future projections go, Splett doesn’t believe Pogo will be significantly affected by possible fluctuations in gold price.

“Teck Cominco takes the view when we get into new developments, like Pogo: What’s the reserve life, what’s the cash cost of the mine relative to its peers, and what’s the expandability? Can we expand the property? We want all of our operations to ultimately be at the lowest end of the cash cost scale. When prices start to come down, we want to make sure we’re still making a profit when others are taking a loss. We go in ahead of the game, so

that we can weather the storms that inevitably happen in the mining industry.

There’s not a lot you can do to change your cash costs in the near term.” With ore grades rated at 17 grams per ton, Pogo is expected to have cash costs a fraction of Hemlo’s US$460 per ounce of gold.

Of the roughly 230 workers, 180 are onsite at this time, with the remaining one-third enjoying well-deserved time off. (The mine provides bus service to the nearest urban centre, Fairbanks, about three hours’ drive away.) These are the people whom Jacko holds up as the primary reason for the mine’s success. “Although we’ve had our share of problems, and sometimes we feel we get more problems than other places, the commitment here by the folks— whether it be in the mine, maintenance, mill, or wherever you look in the operations—has really been first-class.”

Perhaps, when the mine achieves its full production goal, the management should take everyone out to McDonald’s to celebrate. CIM

27

The Mosaic Potash Esterhazy K1 Mine (surface and underground) was awarded the National John T. Ryan Award for the Select Mines category. L-R: Paul Gill, K1 mill manager; Harvey Miller, OHC co-chair for K1 Mine; Shari Forsythe-Hohm, OHC co-chair for K1 surface; Nelson Wright, safety and training manager; Francois Pelletier, CIM president, and Andrey Petukhov, K1 mine manager

S

afety is job one in the minerals industry, and each year, the John T. Ryan Trophies are awarded in recognition of outstanding achievements in that most important aspect of mining: safety. The John T. Ryan Trophies are awarded at the CIM Awards Gala by Mine Safety Appliances Canada Limited, as a memorial to the founder of the company. The Canadian trophies are handed out to mines in three categories—metalliferous, select, and coal—all of which, in the previous year, experienced the lowest reportable injury frequency per 200,000 hours worked in Canada. The John T. Ryan committee sets the eligibility criteria. Instances that are counted include modified or restricted duty (when a person gets hurt to the point where they cannot perform their regular duties) and lost time injuries (when a person cannot work at all). After speaking with each of the winning companies, it was obvious their efforts all boiled down to the same goal: to make sure everyone goes home at the end of the day.

North Mine

by CAROLYN HERSEY 28

The award for the metal mines category went to North Mine in Copper Cliff, Ontario. The underground project is owned and operated by CVRD Inco Ltd. and opened back in 1967. The nickel/copper mine extracts about 4,200 tonnes a day and employs about 260 people. Vice President Michael Winship said their long-time vision of ‘zero accidents’ has finally become a reality. Since December 2005, the mine has gone 920 days without a disabling injury.

Winship credits their winning to strong safety leadership: everyone from upper management down through to the workers have all pulled together to make the environment as safe as possible. They’ve had strong safety systems for years and recently they’ve started doing Hazard Identification and Risk Assessment.

The technique consists basically of individual assessment. First, evaluate the situation or risk in the workplace.

CIM Magazine n Vol. 2, Nº 5

The

safety culture John T. Ryan winners for safety performance Once the risk has been identified, then go through options on how the risks can be mitigated and brought into an acceptable zone.

They also have a program at the worker level called S.U.P.A. See the hazard, understand the hazard, plan a course of action before working, and act using the appropriate tools, equipment, and procedures. CVRD Inco likes to create an environment in which workers are fully engaged and can feel like partners in how the company is run—so far the results have been positive and have proven to be very valuable.

There has been a noticeable rise in empowered and inspired employees at the mine—everyone seems to want to join in on the safety dance. At CVRD Inco’s Coleman Mine, one worker actually came in on his own time and did an entire risk assessment in Power Point, identifying hazards and finding solutions to mitigate them.

Individuals can come forward with ideas and suggestions on how to make the workplace a safer place to be. At North Mine, safety is part of their culture, and CVRD Inco is very proud to be one of the leaders in safety performance.

Greenhills Operations

In the coal mine category, this year’s shining star is Elk Valley Coal’s Greenhills Operations. Their approach to safety is quite simiAugust 2007

lar, as they also try to make safety a part of each employee’s culture.

Practice makes perfect and therefore each individual is strongly encouraged not only to adopt safety habits at work, but at home as well. It needs to be incorporated as a lifestyle instead of being seen as a set of rules and regulations.

Safety is being taken down to the employees’ level, giving them the authority to make decisions regarding safety and holding them accountable for their own personal safety as well as the safety of those they work with. Elk Valley currently has two programs in place that they’ve introduced over the past two years: ‘Courageous Leadership’ and ‘Safety 24/7.’ The ‘Green Hard Hat’ program allows new employees to be distinguished by the colour of their hats and thus their colleagues are able to keep an eye out for them as they learn the ropes.

Dean Runzer, general manager, specified that it is not so much the programs that make the project so successfully safe, but rather the combined effort of the employees who pull together to make it work. After all, a program only works if the “commitment, communication, and follow-up are in place to promote your sincere intentions,” he added.

Elk Valley Coal operations have the tools in place to assist high safety performance. They’ve installed LCD screens all across the property to keep workers up to date on safety initiatives, perform29

The entire shift to commemorate the All Mines safety award and John T. Ryan award

ance, and any other changes in procedures. GPS systems have been installed in all track dozers, in combination with graphical screens.

High-hazard areas are indicated on the maps and then alert the operator of potential relative location of these areas or conditions.

To eliminate the risk of falling, aging haul trucks were upgraded to include front stairways in place of vertical ladders. In addition, computer-based training is used to update and test employees on their safety knowledge, and automated survey instruments allow for ondemand monitoring of unstable geotechnical areas and warnings to potential hazardous movements.

Despite all the fancy gadgets, Runzer said the most important approach they’ve taken as an organization is a “sustained, consistent effort to demonstrate that management is committed to making a cultural change, and it will be our actions as a management team that are making the difference compared to the words we speak.”

Miners work safely for one main reason: to go home at the end of the day to their families

30

Whatever they’re doing, it’s working, and the safety records speak for themselves. Elk Valley has managed to reduce their LTI (lost time incident) frequency from 1.63 in 2004 down to 0.00 in 2007. That’s right, zero. They’ve also experienced an 80 per cent decrease in their combined medical aid/LTI frequency; it’s gone from 5.35 in 2004 down to 1.09. Some of their projects have gone years without an LTI, and as of May 16, 2007, they’ve officially gone one million hours without a single lost time incident. Impressive, to say the least.

Runzer is quick to point out that these are only numbers but are strongly indicative of how their safety programs are working, and that they are truly making progress. The real results are the people going home uninjured at the end of the day to their families.

It only takes a second for things to possibly change forever, but at Greenhills, workers try not to get discouraged by these moments. They communicate about how the problem could possibly be avoided in the future and then move forward. Runzer said that admitting to one’s mistakes definitely helps when trying to get by in the safety programs, but in the end, “we are all in this together.”

After realizing that they had not provided enough resources for training, they promptly doubled the manpower designated to training their equipment operators about two years ago.

These trainers have been given the responsibility and authority to ensure that all employees are properly trained, qualified, and knowledgeable prior to acknowledgment of their completion as a competent and reliable equipment operator. It’s been a long and steady road, but the employees at Greenhills Operations are finally stepping up when it comes to safety. Out with the blame game, and in with constructive, productive communication.

CIM Magazine n Vol. 2, Nº 5

Esterhazy

Finally, the select mine winner for this year’s John T. Ryan awards is the PCS Potash Estherhazy K1 mine in Sussex, New Brunswick. Formerly known as IMC Canada, the mine is the world’s largest producer of three primary plant nutrients— potash, nitrogen, and phosphate. Production of potash in New Brunswick started back in 1983 and currently, the project employs about 330 people. Their LTI frequency was 0.2, with one counted injury for over 700,000 hours worked. As of November 1, 2005, the mine site achieved three million hours without a single lost time injury.

K1 Health and Safety Manager Nelson Wright thinks it’s fantastic that the industry recognizes and rewards their safety efforts.

“But that’s not why we do it,” he added. He believes, most likely as everyone else does, that miners work safely for one main reason: to go home at the end of the day to their families. Wright believes that being ‘safe’ means managing risks and controlling hazards. There is no magic potion to transform a business into a high-standard safety performer. It takes a plan and it takes work.

K1’s view is that everyone, including management, supervision, and workers, plays a part in the success of the operation. Each has their own role; none can be interchanged, and success wouldn’t be possible without the presence and collaboration of all of them. It is management’s job to ensure that physical hazards are controlled.

They also must have safe physical procedures, in that they must be able to demonstrate how to do the job without getting hurt. For example, if there are machines involved, does the machine have a guard?

The supervisor’s job is to lead and coach the workforce and establish compliance with the safe work procedures. He or she must coach on how the job is to be done and then actively work with the force to ensure it is in fact being done properly.

The worker’s obligation is to firstly accept the training that he or she has been given to recognize hazards and to make as best a decision as he or she can about controlling and managing those hazards. If he/she cannot personally make the decision, then he is obligated to report it to the supervisor.

The key to making all this work is to work together. There’s no ‘I’ in team, and everyone needs to trust and understand that the reason they are going home alive is not because of what he as an individual does—or for that matter what the supervisor or manager does—but what the team does. The workers need to trust that their teammates will point out any errors they’ve made or are about to make. The ‘every man for himself’ attitude cannot exist in this field. Part of each man and woman’s job is to look out for each other. This is the eighth time that one of the Estherhazy operations has won an award, and they’ve also won several regional awards.

During our conversation, Wright gave me a fine example of what makes their company so worthy of the coveted safety award. A union worker, who had stopped at Estherhazy looking for ideas on how to become more ‘safe,’ appeared to be quite doubtful that work could be done completely safely. She was bound and determined to find someone on the shop floor that would give her the ‘real’ story on how safe procedures really were. After asking one of the older mechanics whether or not safety was a priority, the man turned to her and said, “No, safety August 2007

is not a priority here. Priorities change from year to year, at Estherhazy, safety is a value.”

The K1 team hopes that they are providing an example and some leadership to other countries around the world—you don’t have to sacrifice thousands of people in order to get coal out of the ground.

With 400 employees under their wing, at an average age of 40 years old, they are focused on ensuring that old safety values, habits, and practices are instilled within the new mining generation for the future.

Safety works

Mining, like any heavy industrial occupation, has its many hazards. With the hazards come risks, which is very different from being unsafe. The question is not whether or not something is safe; the question is ‘how much hazard/risk does it pose?’ When you think about it, nothing is completely safe. Take the streets of Montreal for example, which are, in fact, much less safe than any mine operation because in this case, the hazard is not controlled. A meat-cutting factory, with knives and heavy machinery abound, can be a very safe environment. As long as the proper precautions are being taken, things can run smoothly despite the hazards. Historically speaking, mining does have somewhat of a bad rep; the only stories we can really remember are those of great tragedy and disaster. In truth, the focus on safety is probably higher in the mining industry than in any other. I’m truly proud to say that I’ve tripped over my own feet more times than these mine operations have had accidents. CIM

Our Mosaic Potash Esterhazy K1 Operations were pleased to be awarded the National John T. Ryan Safety Award for 2006. Although the true reward for working safely is going home at the end of the workday, it is a pleasant “bonus” for the efforts at K1 Surface and Underground to be recognized at the national level.

Mosaic Potash Esterhazy 306.745.4200 www.mosaicco.com

31

Kayla knows the importance of getting to the core.

So does her father.

(And so do we, for that matter!)

We’re talking about the core value of Safety, which is more than just a philosophy at Elk Valley Coal. It’s a mindset we encourage and promote both on and off the job, because we believe that workplace training, safety awareness and employee education are essential to the 24/7 protection of our most valuable asset: the men and women employed at our mine operations.

Safety We’re proud of our people, and satisfied only when 18-year mining veteran Carl Norgate and Elk Valley Coal’s 3,000 other employees safely arrive at work and home each day.

Then we know we’re on the right path.

Our results to date? Almost 50 Health & Safety awards between our six mines, and the best company-wide safety record ever in 2006 including our most recent honors: • Safest coal mine in Canada (Greenhills, 2006); • Lowest lost-time incident frequency for mines in B.C. working less than one million hours (Coal Mountain, 2006); • Lowest lost-time incident frequency for mines in B.C. working more than one million hours (Elkview, 2006).

Because for us, safety is a journey that never ends!

A new company, a new attitude…a new day.

P R O U D LY O W N E D B Y F O R D I N G C A N A D I A N C O A L T R U S T A N D T E C K C O M I N C O L I M I T E D

w w w. e l k v a l l e y c o a l . c a

La culture de la Gagnants des trophées

John T. Ryan pour la sécurité

D

ans l’industrie minérale, la sécurité est la tâche la plus importante et, à chaque année, les trophées John T. Ryan sont accordés par la compagnie Mine Safety Appliances Canada Limited à la mémoire de son fondateur. Les trophées sont remis chaque année lors du Gala de l’ICM à la compagnie minière canadienne de métaux, de charbon ou « sélecte » ayant le plus faible taux d’accidents enregistrés pendant l’année précédente pour une période de travail de 200 000 heures. Les cas dont on tient compte comprennent le travail modifié ou restreint (lorsqu’une personne est blessée à un point où elle ne peut pas effectuer son travail habituel) et des blessures entraînant des jours d’absence (lorsqu’une personne ne peut pas travailler du tout). Après avoir parlé à chacune des compagnies gagnantes, il était évident que les efforts avaient tous le même but : Que tous entrent chez eux à la fin de la journée.

Mine North

Le prix pour la catégorie Mine de métaux a été attribuée à la mine North de Copper Cliff en Ontario. Cette mine souterraine est la propriété de CVRD Inco Ltd. qui en assure aussi l’exploitation. La August 2007

sécurité mine produit un minerai de nickel/cuivre à un taux de 4 200 tpj et emploie environ 260 personnes. Selon le vice-président, Michael Winship, la vision de « zéro accident » est maintenant une réalité.

Depuis décembre 2005, la mine a travaillé 920 jours sans blessure ayant entraîné une incapacité à travailler.

M. Winship attribue cette situation gagnante à un fort consensus de sécurité, de la haute direction à tous les ouvriers. Les systèmes de sécurité sont en place depuis des années et la mine a récemment implanté de nouveaux programmes d’identification des dangers et d’évaluation personnelle des risques.

La mine a aussi un programme qui comprend l’identification et la compréhension des dangers, suivi d’un plan d’action et de l’utilisation des bons outils, équipements et procédures. CVRD Inco aime bien créer un environnement dans lequel les employés sont pleinement engagés et se sentent partenaires—à ce jour les résultats ont été positifs et valables—tous veulent être de la partie. À la mine Coleman, un ouvrier est même entré sur son temps personnel afin d’identifier les dangers et trouver les solutions pour les atténuer. À la mine North, la sécurité fait partie de la culture et la compagnie CVRD Inco est très fière d’être l’un des chefs de file en rendement sécuritaire.

33

Greenhills

Dans la catégorie Mine de charbon, le gagnant de cette année est la mine Greenhills de Elk Valley Coal. Là aussi, à force de forger on devient forgeron et chaque individu est fortement encouragé à adopter des habitudes de sécurité à la maison aussi bien qu’à la mine. Cela doit devenir un style de vie plutôt qu’un ensemble de règlements.

La sécurité est ramenée au niveau des employés qui peuvent prendre des décisions concernant la sécurité; ils sont responsables de leur sécurité personnelle et de celle de ceux avec qui ils travaillent. En plus des deux programmes en place Courageous Leadership et Safety 24/7, Elk Valley a instauré le programme « Casque vert » qui identifie les nouveaux employés; les collègues peuvent donc les avoir à l’œil pendant qu’ils apprennent le métier.

Selon Dean Runzer, directeur général de Greenhills, ce n’est pas tant les programmes qui font la réussite d’un projet, c’est bien plus les efforts combinés des employés. À Elk Valley Coal les outils sont en place pour un rendement sécuritaire. La mine a installé des écrans à cristaux liquides afin que les employés soient tenus à jour sur les initiatives de sécurité, le rendement et tout changement de procédure. Des systèmes GPS avec écran ont été installés sur tous les tracteurs-pelles. Les opérateurs sont avisés des conditions ou des endroits potentiellement dangereux. Dans le but d’éviter des chutes, les échelles des camions âgés ont été remplacées par des escaliers. Des programmes de simulation vérifient les connaissances des employés sur la sécurité et des instruments automatisés permettent de déceler des secteurs instables.

Même avec tous ces outils, M. Runzer dit que ce qu’ils ont fait de plus important en tant qu’organisation a été « un effort soutenu et constant pour démontrer que la direction s’engage à effectuer un changement culturel; ce seront nos actions qui compteront plus que nos paroles. » Cela semble fonctionner. Elk Valley a réussi à réduire les incidents entraînant des jours d’absence (Lost Time Incidents – LTI) de 1,63 en 2004 à 0,00 en 2007. Oui, c’est bien un zéro. Le taux de fréquence des LTI et de l’aide médicale a chuté de 80 %, de 5,35 en 2004 à 1,09.

Certains projets n’ont eu aucun LTI pendant des années et, au 16 mai 2007, Elk Valley a atteint un million d’heures travaillées sans un seul LTI. Bien que ce ne soient que des nombres, c’est un signe que les programmes fonctionnent.

S’il arrive un incident – et cela ne prend qu’une seconde – les travailleurs essaient de ne pas être découragés. Ils analysent comment le problème pourra être évité et se tournent vers l’avenir. Après avoir réalisé qu’il manquait de ressources en formation, le nombre de formateurs a été doublé. Ces derniers ont la responsabilité et l’autorité de s’assurer que les employés ont la formation requise pour être des opérateurs qualifiés d’équipements.

Esterhazy

Cette année, le gagnant du trophée John T. Ryan pour la Mine « sélect » est la mine PCS Potash Estherhazy K1, à l’est de Sussex, au Nouveau-Brunswick. C’est le plus important producteur mondial des trois principales substances nutritives des plantes—la potasse, le phosphate et l’azote. La production de potasse a débuté en 1983; la division emploie maintenant 330 personnes. La fréquence des LTI 34

était de 0,2, avec une seule blessure pour plus de 700 000 heures travaillées. Au 1er novembre 2005, la mine avait atteint 3 millions d’heures sans accident entraînant une perte de temps.

Le directeur de la santé et de la sécurité à K1, Nelson Wright, trouve fantastique que l’industrie reconnaisse et récompense les efforts de sécurité. « Mais ce n’est pas pour cela que nous le faisons », dit-il. Selon lui et bien d’autres, les mineurs travaillent de manière sécuritaire afin de rentrer chez eux à la fin de la journée.

M. Wright croit que la sécurité signifie gérer les risques et contrôler les dangers. Il n’existe pas de formule magique, il faut un plan et du travail.

Le point de vue de K1 est que chacun a un rôle à jouer, que ces rôles ne sont pas interchangeables et que le succès est impossible sans la présence et la collaboration de tous, des cadres supérieurs aux travailleurs. La tâche du superviseur est de diriger et d’assurer la conformité aux procédures de travail sécuritaires. La tâche du travailleur est tout d’abord d’accepter la formation donnée et ensuite de prendre les bonnes décisions pour contrôler et gérer les dangers.

S’il n’est pas possible de prendre une décision, il doit rapporter la situation au superviseur.

La clé est de travailler ensemble. Il n’y a pas de « Je » dans une équipe. Les travailleurs doivent avoir confiance en leurs coéquipiers et de savoir que ceux-ci souligneront leurs erreurs. Une attitude de « chacun pour soi » ne peut exister dans ce domaine, c’est plutôt tous pour un. Il est à noter que c’est la huitième fois qu’une exploitation Estherhazy gagne un prix national en plus de plusieurs prix régionaux.

M. Wright donne un bon exemple de ce qui fait que la compagnie mérite ce prix de sécurité. Une employée syndiquée visitait Estherhazy recherchant des idées pour plus de sécurité; elle doutait que le travail puisse être accompli en toute sécurité. Elle était déterminée à trouver quelqu’un qui lui dirait la « vraie » histoire. Après avoir demandé à un des mécaniciens les plus âgées si oui ou non la sécurité était une priorité, l’homme lui répondit que : « Non, la sécurité n’est pas une priorité ici. Les priorités changent d’année en année; à Estherhazy, la sécurité est une valeur. » Avec 400 employés dont la moyenne d’âge est de 40 ans, l’équipe K1 se concentre sur l’assurance que les anciennes valeurs, habitudes et pratiques de sécurité soient transmises à la prochaine génération.

La sécurité, ça fonctionne

Comme dans tout autre contexte d’industrie lourde, l’exploitation minière comporte de nombreux dangers. Avec les dangers viennent les risques, ce qui ne veut pas dire non sécuritaire.

Lorsqu’on y pense, peu de choses sont complètement sécuritaires.

Prenez les rues de Montréal, elles sont en fait bien moins sécuritaires que les mines parce que les dangers ne sont pas contrôlés.

Une usine de dépeçage, avec ses couteaux et sa machinerie lourde peut constituer un environnement sécuritaire si des précautions adéquates sont prises. Historiquement les mines ont une certaine mauvaise réputation; les seules histoires dont on se souvient sont celles de grands désastres. En fait, l’emphase sur la sécurité est probablement plus élevée dans l’industrie minière que dans toute autre industrie. Je suis fière de dire que je me suis probablement barré les pieds plus souvent que ces exploitations minières ont eu d’accidents. CIM CIM Magazine n Vol. 2, Nº 5

the supply side Watch out for the mining boom in Africa

by Jon Baird, managing director, CAMESE

My attention was drawn to what is happening in mining in Africa at the Canada-Africa Mining Procurement Seminar held in Montreal on May 2, the last day of this year’s CIM Conference.

The Canadian Council on Africa, CIM, and Foreign Affairs and International Trade Canada did an excellent job of attracting well-prepared speakers from whom mining supply participants could learn of some big opportunities in several countries.

First of all, let us look at what has been happening in exploration.

According to the annual World Exploration Trends reports of Halifaxbased Metals Economics Group, Africa has been getting its full share of the action. These reports track the nonferrous exploration budgets of all mining companies worldwide. After touching a 10-year low of US$1.9 billion in 2002, total expenditures rose to US$7.5 billion in 2006. Throughout this period, Africa retained its share of the market of about 16 per cent, with exploration expenditures on the continent rising from about US$300 million in 2002 to US$1.2 billion last year. This places Africa in third place as a region, after August 2007

Latin America (24 per cent) and Canada (19 per cent).

Sweden’s Raw Materials Group maintains a database of more than 2,400 mining projects, ranging from those in the prefeasibility stage to those currently under production. Total investment in the global mining industry’s project pipeline at the end of 2006 was US$208 billion, a 50 to 55 per cent increase from the previous year. By region, Latin America tops the list with proposed investment of US$59 billion, Oceania/Australia is in second place at US$41 billion, and Africa is third with US$34 billion.

According to figures presented at the Canada-Africa Mining Procurement Seminar by Natural Resources Canada’s Denis Lagacé, Canada has made a cumulative investment of about $50 billion in about 230 mines, refineries, smelters, and advanced projects abroad. About 70 of these projects are in Latin America and the Caribbean, and about 40 are in each of Europe, Asia-Pacific, Africa, and the USA. Of the total $50 billion Canadian mining investment abroad, about $7.9 billion is in Africa.

Natural Resources Canada is aware of future Canadian-planned investment in about 64 mining projects around the world, of which 30 are expected to be in Africa. This will require about $13 billion of Canadian investment over the next four to five years in 15 African countries. Thus, there is growing potential for Canadian mining suppliers to follow their mining colleagues to that part of the world.

There are about 53 countries in Africa, more than half of which have significant mineral potential. However, development of what is a huge resource has lagged other regions of the world. This is changing. In total, it

A page for and about the supply side of the Canadian mining industry is expected that there will be about $46 billion invested in new mining projects on the continent by 2010.

This is in a context of national economies with some of the highest GDP real growth rates of the world.

There are more than 100 Canadian exploration and mining companies active in 37 African countries and they account for about 24 per cent of all exploration expenditures on the continent. In this, we are second only to South Africa with about 43 per cent, nearly half of which is spent in South Africa itself.

Lagacé said that a survey of Canadian exploration and operating companies working in Africa showed that they procured about 40 per cent of their needs from South Africa, 20 per cent from Australia, and only 10 to 15 per cent from Canada. Of course, as many Canadian suppliers have representatives in South Africa, it is possible that some goods and services sourced from that country are Canadian.

However, if these numbers are correct, Canadian suppliers are missing out on good opportunities. The proximity of South Africa to projects in the rest of the continent is a big advantage. Thus, in making strategic plans for marketing in Africa, Canadian firms should ensure that they have good representation in that country. CIM

mac facts

Canada was the leading destination for exploration in 2006, receiving 19 per cent of world spending.

35

MAC economic commentary Is China Buying Africa?

by Paul Stothart, vice president, economic affairs, Mining Association of Canada

In a recent column, I noted that China remains the prime driver of world mineral prices.

In building a domestic infrastructure for 1.3 billion people, while expanding its role as the world’s factory, China simply cannot meet its burgeoning demand for copper, zinc, nickel, and other raw materials. In response to this growing gap, China now imports $100 billion worth of base metals annually, buying 25 per cent of the world’s supply today versus a 5 per cent share in the 1980s. As a specific example, China’s share of world consumption of zinc has tripled from 10 to 28 per cent in a mere decade, while the US share has fallen from 16 to 10 per cent.

This dramatic growth in raw material demand is one of the central factors leading to a second, equally significant development; namely that China is becoming an important catalyst to the growth of Africa—a continent that offers untapped raw material supply and market demand potential. In decades past, few observers of global economic development would have envisioned the emergence of such a linkage. Few thought beyond the traditional model, where aid flows from the west would supposedly some day pull Africa to a more advanced state of development.

The growing linkages between Africa and China are being seen in trade, investment, and diplomatic channels.

Overall, trade between China and Africa has increased four-fold from $10 billion in 2000 to $40 billion in 2005. Africa has become China’s leading source of imported oil, with Angola being its single largest supplier and Sudan, Nigeria, and Gabon also becoming major partners. In early 2007, the state-owned Chinese energy company CNOOC

How do you unearth solutions without getting buried in detail? Ask Golder.

Focused on people. Passionate about our projects.

For over 45 years, while working on six continents, Golder has developed expertise in open-pit and underground mining, from pre-feasibility and permitting through closure and reclamation. We’ll deliver sound technical solutions that maximize value and minimize risk. While meeting your obligation to communities, regulators and the environment.

A world of capabilities delivered locally.

2007, GAC

®

Africa +27 11 254 4800 Asia +62 21 252 1975 Australia +61 7 3721 5400 North America +1 800 275 3281 South America +55 21 3095-9500 Europe +356 21 42 30 20 solutions@golder.com

www.golder.com/mining 36

announced that it would invest US$ 2.3 billion in an offshore Nigerian oil field.

In the case of Angola, China has provided a US$2 billion package of loans and aid that includes funds for Chinese companies to build railroads, schools, roads and bridges, hospitals, and fibreoptic networks. Angola has consequently turned away from interacting with the World Bank and the International Monetary Fund. In electricity, China has established linkages with South Africa’s nuclear power program, and has built power stations in Angola, Zambia, and Zimbabwe. In minerals, Chinese firms have invested in mining operations in Zambia and the Democratic Republic of Congo, and have acquired the rights to mine gold and uranium in Zimbabwe.

This African-Chinese economic relationship will continue to grow – for example, it is projected that China will depend on imported oil for 45 per cent of its energy needs in 2045 (versus being a net oil exporter as recently as 1993). This will necessitate increased investment in Africa. Gauging the scale of this relationship can be difficult, as the transactions generally lack transparency and public profile.

A common thread running through many of these interactions is that of the bilateral state-to-state nature of the relationship. China is pursuing its objectives in Africa through high-priority state policy, often focusing its economic efforts on states (Angola, Sudan, Zimbabwe, Gabon, DRC) that are authoritarian, interventionist, and inward. These states arguably prefer credits from China, so as to avoid the demands and complications associated with dealing with western or IMF entities.

In diplomatic channels, the exchange of political leaders between the two regions is being accorded the highest priority. Beijing supports peacekeeping operations in several African countries, CIM Magazine n Vol. 2, Nº 5

MAC economic commentary while supplying arms to regimes such as Sudan and Zimbabwe. In recent years, China has cancelled $10 billion in bilateral debt from African countries. Chinese teachers and doctors are flowing to Africa, while African civil servants and military personnel are being trained in China. Large numbers (likely in the tens of thousands) of African students are being educated in China. In its eyes, one benefit of this strengthened diplomatic and economic relationship is that China consolidates its position as “leader” of the developing nations, thereby enhancing its influence and support at the UN, IMF, and other multilateral institutions (and with the added side-benefit of further marginalizing Taiwan).

There is no uniform lens through which to interpret the growth in the China-Africa relationship. Some analysts view the Chinese presence as welcome—as offering capital and expertise—and in some cases a willingness to

August 2007

develop projects such as mines that western investors may view as too risky or of marginal profitability. The roads, bridges, and dams built by Chinese firms are described as low cost and good quality, and are completed in a fraction of the time such projects generally require in Africa. The tied credit lines being offered

by China are described as being no different than those extended to South Korea, Taiwan, and China by Japan following the Second World War – credits that were tied to Japanese construction and other services. As well, the lack of transparency around many China-Africa transactions is viewed as being no different than a secretive $2.4 billion loan recently provided to Angola by Barclays and some other private banks.

From the opposite perspective, some Africa analysts see the growing relationship between Africa and China as offering primarily negative consequences, with inadequate attention to good gover-

nance, human rights, and democratic reform, a willingness to pay bribes, a comfort with authoritarian regimes, and a mutual desire to remove the World Bank and IMF from the financing equation. Within Africa itself, countries such as South Africa are concerned about the effect of cheap imported consumer goods and the practice of China bringing its own workers to Africa, as well as Beijing’s lack of commitment to transparent governance. Sudan and Zimbabwe, in contrast, welcome China’s investment, products, and support against the west in the Security Council and other institutions.

What is evident is that the growing economic and diplomatic bond between China and Africa will affect all major mining countries that are engaged in the global battle to secure end-markets and raw material supply channels. Canadian mining firms and value-added manufacturing firms will be increasingly affected by this trend. CIM

37

standards Qualified Persons

by Deborah McCombe, executive vice president and consulting geologist, Scott Wilson Roscoe Postle Associates Inc. The involvement of a Qualified Person (QP) in the preparation of scientific and technical information on a mineral property is a cornerstone of National Instrument 43101, Standards of Disclosure for Mineral Projects (NI43-101).

The QP is an individual who is an engineer or geoscientist with at least five years of experience in mineral exploration, mine development or operation or mineral project assessment, or any combination of these, has experience relevant to the subject matter of the mineral project, and is in good standing with a professional association. A professional association is a self-regulatory organization of engineers, geoscientists, or both engineers and geoscientists. In Canada, geoscientists or engineers who are members of a provincial or territorial association of engineers would satisfy the third requirement of being a Qualified Person. Most foreign associations are not generally given authority or recognition by statute, so a list of the foreign associations recognized by the Canadian Securities Administrators (CSA) is attached as Appendix A of NI43-101.

This list will change with time as other foreign associations are recognized by the CSA and when NI43-101 is modified. If a company wishes to rely on the advice of a foreign geoscientist or engineer who is not a member of one of these organizations, the individual could join one of the Canadian associations that accepts foreign members or the company could apply for exemptive relief. If the relief is granted however, the exemption will likely be limited to a particular property or task and will be for a limited time period.

38

QP’s Responsibilities It is the QP’s responsibility to comply with professional and industry standards, including best practices. If you as a QP are going to rely on other experts, you must satisfy yourself that it is reasonable to rely on these experts. The QP who is taking primary responsibility for the technical report must conduct a site visit. If several QPs are preparing and taking responsibility for the technical report, then the appropriate QP should visit the site. For example, if an operating mine has metallurgical issues, at a minimum, a metallurgical engineer should visit the site. Data verification is a key element of NI43-101. The QP must state whether data verification was conducted or not. If you didn’t verify the data, you must explain the reasons why.

Certificates and Consents If the QP prepares all, or a portion, of a technical report, the QP must provide the certificate and consent required by Part 8 of NI43-101. Section 8.1(2) lists the information that is required by the instrument. If you omit some of the required information such as a brief summary of your relevant experience, the items of the technical report for

which you are responsible, or whether you are independent of the company, the technical report is not compliant with NI43-101.

When filing a technical report, the company must file a statement of each QP responsible for preparing or supervising the preparation of each portion of the technical report (a) consenting to the public filing of the technical report and to extracts from, or a summary of, the technical report in the written disclosure being filed and (b) confirming that the QP has read the written disclosure being filed and that it fairly and accurately represents the information in the technical report that supports the disclosure. When the QP’s technical report is used to support a disclosure document, such as an Annual Information Form or a News Release, the QP must review that document to ensure it is accurate and not misleading. Qualified Persons confirm this by providing their consent. Remember that the QP is not responsible if the company misquotes the QP, unless the QP reviewed the disclosure and gave consent. Qualified Persons should not release their consent in advance of their review of the company’s proposed disclosure. CIM

Appendix A- Recognized Foreign Associations and Designations Foreign Association Designation American Institute of Professional Geologists (AIPG) Certified Professional Geologist Any state in the United States of America Licensed or certified as a professional engineer Mining and Metallurgical Society of America (MMSA) Qualified Professional European Federation of Geologists (EFG) European Geologist Australasian Institute of Mining and Metallurgy (AusIMM) Fellow or member Institute of Materials, Minerals and Mining (IMMM) Fellow or professional member Australian Institute of Geoscientists (AIG) Fellow or member South African Institute of Mining and Metallurgy (SAIMM) Fellow South African Council for Natural Scientific Professions (SACNASP) Professional Natural Scientist Institute of Geologists of Ireland (IGI) Professional Member Geological Society of London (GSL) Chartered Geologist National Association of State Boards of Geology (ASBOG) Licensed or certified in: Alabama, Arizona, Arkansas, California, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Maine, Minnesota, Mississippi, Missouri, Nebraska, New Hampshire, North Carolina, Oregon, Pennsylvania, Puerto Rico, South Carolina, Texas, Utah, Virginia, Washington, Wisconsin or Wyoming

CIM Magazine n Vol. 2, Nº 5

parlons-en Votre système informatique est-il inutile pour la gestion efficace des articles de distribution ou pour la gestion des pièces de rechange? par Robert Lamarre Après plus de vingt ans en consultation en gestion des approvisionnements, je suis toujours estomaqué de constater qu’un très grand nombre d’entreprises utilisent leurs ordinateurs et leurs systèmes de gestion comme un grand Cardex électronique. Le système infor-

moins d’inventaire possible. C’est là son travail, son objectif principal.

Est-ce que votre entreprise connaît le niveau de service à donner ou réalisé pour chaque groupe d’articles? Est-ce que les gestionnaires de votre entreprise ont établi des objectifs de service?

Est-ce que votre gestionnaire des stocks dispose des outils informatiques pour l’aider à donner ce niveau de service? Comment peut-il manuellement fixé des Min Max de façon à maintenir un niveau de service sur des milliers d’articles?

Les bons résultats dans la gestion des stocks viennent d’une gestion proactive. Mais pour faire une gestion proactive, il faut des prévisions de la consommation. De mon expérience, c’est probablement là où les entreprises et les systèmes sont les plus faibles.

Posez-vous la question. Est-ce que votre système facilite vraiment le travail de votre gestionnaire de stock pour faire des prévisions?

Entendons-nous. Il n’y a aucun système au monde qui remplacera la communication efficace et les discussions internes sur les plans de l’entreprise.

Par ailleurs, vous savez tout comme moi qu’il est impossible de demander aux gestionnaires de stock de faire des prévisions efficaces sur 5 000 articles tous les mois. On veut que le gestionnaire des stocks se concentre sur les articles qui font la différence et on voudrait que le système informatique facilite le travail de prévision sur les autres cinq mille articles.

On voudrait que le système informatisé de gestion des stocks nous aide

Les bons résultats

dans la gestion des stocks viennent d’une gestion proactive

matique signifie à l’acheteur qu’un article a atteint son seuil de réapprovisionnement (ou Min) et que c’est le temps de placer une commande. Le système va même jusqu’à suggérer la quantité à commander pour remonter l’inventaire au Max. C’est souvent tout ce que les systèmes informatiques nous offrent.

Il est renversant de constater que pour la gestion des articles pour la distribution ou pour les pièces de rechange, les Min Max sont déterminés manuellement par les usagers.

Les gestionnaires sont parfois surpris des faibles résultats en gestion des stocks. Comment voulez-vous qu’un gestionnaire des approvisionnements décide efficacement de la valeur à mettre au Min et Max sur plus de cinq mille articles.

On ne peut pas suivre la variabilité dans la demande de tous ces articles, suivre les saisons, suivre les projets et ainsi de suite. On ne peut pas manuellement viser un niveau de service à donner. Après tout, la seule raison de garder des inventaires, c’est pour donner du service aux clients ou aux usagers internes. Le défi du gestionnaire de stock est de donner un niveau de service entendu avec le August 2007

dans la gestion des articles en surplus ou des articles qui n’ont pas bougé depuis un certain temps. Votre système fait-il cela pour vous?

La plupart des systèmes disponibles font un travail très incomplet par rapport aux fonctionnalités dont on vient de parler. Vérifiez ce que votre propre système fait. Il est intéressant de savoir que l’amélioration de ces fonctionnalités peut entraîner des réductions d’inventaire de vingt à trente pour cent audelà de ce que vous pouvez déjà sauver avec l’implantation d’un ERP. Heureusement, il existe des alternatives à prix accessibles pour combler ces lacunes.

L’expérience a prouvé avec des résultats concrets que l’on peut réduire significativement les investissements en inventaire avec les outils appropriés.

Votre système vous offre-t-il ce potentiel? Y-a-t-il de l’argent qui dort dans vos entrepôts? Il faut le réveiller. CIM Robert Lamarre est président de IMAFS inc et de Gestion Conseil Robert Lamarre & Associés Inc. Il a plus de vingt ans d’expérience en consultation dans des domaines liés à la logistique et l’approvisionnement. Ses expériences l’ont amené à travailler au Canada, aux États unis et en Europe. Il a aussi été vice-président d’un important distributeur de produits de quincaillerie au Québec, RoNa Dismat, en plus d’avoir oeuvré comme directeur général adjoint pour McCain Alimentaire en France.

Il a aidé avec sa firme de nombreuses entreprises à repositionner stratégiquement leurs activités de logistique de façon à améliorer le service à la clientèle, pénétrer de nouveaux marchés et diminuer de façon significative leurs coûts totaux de distribution.

39

Rossland—The Golden City

by Andrea Nichiporuk It is at moments such as Le Roi miners, circa 1900. Photo credit: Rossland Historical Museum & Archives these, when writing about people and places of yesteryear, that I wish could go back in time and witness things first-hand. Those tales riddled with specific details that are passed down from generation to generation rarely seem to make it into the history books. It would sure be handy to have the keys to Doc Brown’s plutonium-powered DeLorean time machine.

If powder skiing or mountain biking is what you live for, then you’ve surely been to, or at least heard of, Rossland, British Columbia.

A mere six kilometres from the US/Canada border, it is almost at the midway point between Calgary and Vancouver. Although reputed as name Thompson, after its founder.

Electricity made its way to certain Canada’s Alpine City, Rossland’s his- However, it was soon renamed, as a areas of Rossland in 1896; it was only tory is steep in mining.

‘Thompson’ already existed in British two years later that power was being Columbia. supplied to the entire town by West Build it and they will come Once they stepped off the coach in Kootenay Power. The Misericordia Ross Thompson arrived at Red Rossland, the new visitors were proba- Hospital opened on June 4, 1897, takMountain with aspirations of striking it bly a little taken aback as, unfortunately, ing over for the infirmary that had rich. After a year of back-breaking by 1895, with no police force to speak become incapable of handling the labour at the camp, he thought of a bet- of, violence quickly escalated. One such demand. The town’s infrastructure ter way of making his dreams a real- example is on Sourdough Alley, where a needed to catch up with the growing ity—he would build a city. When a dispute ended with James Westgate community. After a couple years of wagon road was built to Trail Creek axing Hugh McLaughlin to death. pleading with the provincial governLanding in 1893 and close to 2,000 The first issue of the The Rossland ment to fund the construction of a new mining properties had been staked in Miner was published on March 2, 1895. school, the contract was finally the area by the end of 1895, things Within two years, it was also publishing assigned and 500-plus students entered really began booming. That same year, The Weekly Miner. The City of Rossland their classrooms in the fall of 1898. a $2 fare would secure you a spot was officially incorporated on March 4, aboard a coach that ran between Trail 1897. That year, the population had Stake it, just stake it Creek Landing and Rossland.

In mid-1890, Joe Morris and Joe grown to about 7,000, and boasted 42 Once referred to as ‘the Golden saloons, 17 law firms, a banker, three Bourgeois attempted to register the City,’ Rossland initially answered to the doctors, and one Justice of the Peace.

Center Star, Idaho, Virginia, and War 40

CIM Magazine n Vol. 2, Nº 5

mining lore Eagle claims. As there was a two-claim per person limit, they convinced Colonel Eugene Topping to purchase the Le Wise (renamed Le Roi) claim from them and register it himself. Little did they know that it would become the most profitable of the five claims.

Topping met with Colonel William Ridpath, who along with his business associates, purchased 53 per cent of the Le Roi property for $16,000. The tons of ore extracted and shipped to the Colorado Smelting and Mining Company proved that Le Roi was a worthy investment, and resulted in the creation of the Le Roi Gold Mining and Smelting Company in June 1891.

Colonel Topping sold the remainder of his share in Le Roi for $30,000.

A mere four years later, in 1895, the Le Roi mine paid out its first dividend.

Upon entering production, the company’s stock had jumped from $0.50 to $40 a share. Yet workers were still only being paid, at the most, $3.50 for a twelve-hour shift. Not one to miss out on a profitable opportunity, F. Augustus Heinze built a smelter at Trail Creek Landing and laid down tracks to Rossland, which he dubbed the Trail Creek Tramway. The following year was significant; the smelter entered operation and the West Kootenay Power and Light Company began supplying electricity to the mines.

The Canadian Pacific Railway Company purchased Heinze’s smelter in 1897, after the Le Roi Gold company built their own in Northport. Soon after, the Le Roi Gold company was sold to the British American Corporation for over $3 million. In 1901, a union strike paralyzed the mine. Unfortunately, in the end, the workers returned to work no further ahead.

Five years later, the Center, St. Eugene, and War Eagle mines, along with the Trail smelter, joined to form the Consolidated Mining and Smelting Company of Canada Ltd. However, it was only in 1911 that the Le Roi mine ceded. This resulted in all four being linked underground and run as a single large mine, which would later grow into the Cominco metallurgical operation.

August 2007

Shaft house of the Le Roi mine, circa 1904.

Photo credit: Rossland Historical Museum & Archives

A ghost town this is not As production declined at the mine, so did the town’s prosperity. In 1922, the railways were pulled up and before the end of the decade, the business district in Rossland was hit with two major fires. By 1930, the population had dropped to 3,000. However, with the Cominco operation at Trail, as well as the arrival of a modern highway system, Rossland seemed destined to become a residential city.

The Le Roi gold mine consisted of 130 kilometres of underground workings, and its ore averaged 0.5 ounces of gold and 0.6 ounces of silver per ton, and 1% copper. The mine shut down in 1929 and after 40 years in operation, had a combined output nearing $165 million.

This year, Rossland turns 110 and is home to about 3,600 residents.

Now, how do I get my hands on the keys to that DeLorean? CIM

?

Did you know?

t

here was a strong Chinese presence in Rossland and the West Kootenays as of the mid-19th century. Approximately half of the 200 men hired to work on the Dewdney Trail in 1865 were Chinese. In 1866, 40 Chinese men versus only 14 Causasians were reportedly mining Rock Creek. In the early 1890s, the only two stores in Rock Creek were Lum Kee General Store and Ah Kee General Store. According to the Rossland Miner, 200 Chinese men and one Chinese woman lived in Rossland in September 1897. By 1931, the number had increased to 231.

The Chinese were prohibited by law from working underground in the BC mines.

Alternately, among other things, they created extensive vegetable gardens and supplied fresh produce to the townspeople for close to 50 years.

The Chinese Masonic Lodge officially opened in October 1903 and had 100 members. In the early 1920s, a fire destroyed the area refered to as ‘Chinatown.’ The Masonic Lodge was torn down around 1950. No traces of Chinatown exist today.

41

eye on business Access roads to mining sites

by Ianny Xenopoulos and Jean Gagné, Fasken Martineau DuMoulin LLP

For most mine development projects, access by road to a mine site is often an important aspect at the feasibility and impact study (including on environmental aspects), consultation (in particular, with Native communities), and implementation stages. This is particularly so for a mining site located on lands of the domain of the State of the Province of Quebec (State Lands) with no direct access to an already existing public road.

The following paragraphs provide a brief overview of the rules applicable to certain types of roads, more particularly, relevant to access to such a mine development project, focusing mainly on mining and forest roads.

For the purposes hereof, we assume that the mining company involved in the development of a mining project has obtained the appropriate mining leases from the Minister of Natural Resources and Wildlife (MNRW) for those lands where the mine and mining facilities will be located.

Act Respecting the Lands in the Domain of the State (State Lands Act) State Lands in Quebec are generally under the jurisdiction of the MNRW, except when otherwise determined by law. The State Lands Act specifies that no one can construct or improve a road other than a forest or mining 42

road on State Lands without prior authorization from the MNRW. In general, roads constructed on State Lands are part of the public domain and all have access to such roads subject to the power of the MNRW to restrict or prohibit such access when justified by public interest. The State Lands Act also allows the MNRW to sell or lease lands under his authority as well as grant rights of way (10 years renewable) and servitudes.

Mining Act Generally, the Minister of Transport (MOT) is responsible for mining roads. He may construct, improve, and maintain (or cause to be con-

sons, and are subject to application of the Highway Safety Code unless exemptions are granted by the MOT. A local municipality or a Native community may also be authorized by the MOT to maintain and repair a mining road, or part thereof, in its territory.

Secondary mining roads are those designated as such by the government of Quebec and are under the responsibility of the MNRW rather than the MOT, with the same powers as those discussed above for mining roads.

Plans and standards of construction, improvement, and maintenance of such roads must also be approved by the MOT. Secondary mining roads are also open to the public, subject to MNRW’s power to restrict or prohibit access when required by the public interest.

However, the traffic and safety provisions of the Quebec Highway Safety Code do not generally apply to such roads unless the Government of

Thus, in some circumstances, construction of a forest road rather than a mining road may be preferred structed, improved, or maintained) a mining road (including bridges or other structures) for the purposes of facilitating the carrying on of mining activities. The MOT may have the owners of mineral substances or holders of mining rights, at whose request the work is being done, pay part of the costs or delegate its construction or improvement and subsequent maintenance to such owners or holders, at their expense (or shared with other interested stakeholders).

Mining roads, even if paid by a mining company, form part of the public roads network accessible to all, subject to MOT’s power to restrict or prohibit access for public interest rea-

Quebec, by regulation, decides otherwise. A user of such a road may not sue for damages on grounds of faulty construction, improvement, or maintenance of such a road.

Typically, a mining company will enter into negotiations with either the MOT or the MNRW, present its plans and standards for the road, obtain approval from the MOT, or, in the case of a secondary mining road, from MNRW and MOT, and sign an agreement whereby the company will agree to construct or improve and maintain the road at its expense and at terms and conditions set forth in the agreement, which may include provision with respect to recuperating part of CIM Magazine n Vol. 2, Nº 5

the costs from other stakeholders who wish to use the road or with respect to restrictions to access.

The governmental authorities have certain technical requirements that need to be complied with in order to obtain approval of the plans, and such requirements may be more stringent than those for forest roads referred to below. Thus, in some circumstances, construction of a forest road rather than a mining road may be preferred.

Forest Act A forest road is a road constructed or used for purposes of forest management activities, which include the installation and maintenance of infrastructures (including roads) and all other activities of a holder of a management permit under the Forest Act affecting productivity of a forest area.

One of the classes of forest management permits allows cutting and harvesting timber for purposes of exercising mining rights held under the Mining Act. Accordingly, it is possible for a mining company to obtain specific authorization in such permit from the MNRW to construct or improve a forest road. As in the case of a mining road, a municipality may see to maintenance and repair of all or part of a forest road in its territory when authorization is obtained from the MNRW. Note that access to forest roads is granted to all unless the MNRW imposes restrictions or prohibitions when required by public interest. Claims for damages resulting from a defect in the construction, improvement, or maintenance of the road may not be made by any person using a forest road.

The Forest Act adds that prior authorization from MNRW for roads (for example, a mining road) other than forest roads constructed in a forest area is required for the width of the road’s right of way and the destination of timber harvested in connection with the road’s construction. A holder of such an authorization must comply with prescribed forest management standards and measuring of harvested timber.

Conclusion Other laws or agreements, for example, the Quebec Environment Quality Act, the Canada Navigable Waters Protection Act, and the Quebec James Bay and Northern Quebec Agreement, may also apply.

Furthermore, various other factors will need to be taken into account, for example, distance from the closest public road or other relevant facility, various Native people issues, including when applicable, category of lands to be crossed, rights and property of others on the parcels of State Lands to be crossed, as well as the needs and, when possible, participation of other stakeholders either at time of construction or improvement or while a company is maintaining the road.

It is important to study and properly structure this aspect of a mine development project, as the decisions taken will have repercussions throughout the life of the mine. CIM August 2007

et Trunnion Magnof ball ns removed 18 to first six in ts n e fragm tion! hours of opera

Eriez’ Trunnion Magnet removes tons of ball fragments and chips before they damage downstream sumps, pumps and hydrocyclones.

Trunnion Magnets: • Extend cyclone and pump life • Eliminate the need for trommel screens • Reduces replacement parts expense • Improves grinding efficiency and mill throughput • Payback in about six months

FREE Brochure & Video Case Studies Document Huge Savings Call

1-888-300-3743 www.eriez.com or visit

43

engineering exchange Mining experts from concept to closure

by Haidee Weldon Knight Piésold Wildlife at Consultants first put Campo Morado down roots in South Africa in 1921. They now have offices around the globe including Vancouver, which opened its doors in 1975, and North Bay, opened in 1994. With 500 employees worldwide, including 140 in Canada, Knight Piésold remains a comparatively small, but specialized international company, with a reputation for high quality engineering and environmental services and maintaining long-term relationships with their clients.

According to Jeremy Haile, president of Canadian operations, 60 per cent of Knight Piésold’s work is in geotechnical, environmental, and water-related projects for mining clients with a sub-speciality in renewable energy, namely, hydropower and wind. Because of their keen interest in the environment, “Knight Piésold is at the leading edge of applying renewable energy to mining operations,” Haile stated.

Haile is enthusiastic about the strong mining economy. “We’ve been very busy,” he admitted, “with a significant increase in workload over the last three or four years.” Knight Piésold is mostly made up of young, energetic, and highly skilled members. “We offer a lot of training and professional development programs and we’ve been fortunate in attracting the right talent to come and join us,” Haile proudly said. Haile himself is one of the old-timers; he began working for Knight Piésold in Zambia, in 1972.

Knight Piésold carries out work for mining clients all over the world, and is involved in all stages of the mining life 44

cycle, from baseline studies for early development projects, through detailed design and construction, on-going operations, and closure. What follows are examples of typical projects being undertaken by the Canadian offices at different stages of development, and in different geographic settings, including Canada, Mexico, and Greenland.

Malmbjerg Knight Piésold’s first foray into Greenland began in 2005 with the Malmbjerg project. This future molybdenum mine is still in its infancy. Knight Piésold’s involvement includes geomechanical and geotechnical design, and tailings and water management as part of the pre-feasibility study.

Malmbjerg is located in eastern Greenland, near the coast. Working that far north can leave even the most seasoned engineer scratching his head in dismay. Ken Embree, managing director of the North Bay office, has been with

the project since the beginning. He and his team have met the challenges head on, and remain unfazed. “The logistics associated with the far north pose certain challenges,” Embree noted.

“Malmbjerg will be a fly-in/fly-out camp. Its Arctic location means continuous permafrost, which factors into all design aspects, and the dry climate and steep mountainous glacial terrain add to the challenge of water management.”

As part of the waste management design, Knight Piésold is currently undertaking a laboratory testing program on tailings and rock samples, which play an important role in the environmental baseline studies. “We are currently looking at different options for tailings and waste management,” Embree stated.

Conventional slurry, thickened paste, and dry stacked tailings are all possible, and through research and testing, Knight Piésold will determine which method is best suited to the site.

Other challenges for Malmbjerg are due to its remote location and pristine environment. There is only a three- to four-month shipping window, and as the nearest town is 200 kilometres away, finding an adequate labour pool of locals will be difficult. There is also a limit on geographical areas where work is to be done. For example, work plans will have to consider times when native animals are in more fragile states, such as when the geese are moulting, or when the musk ox are travelling through the area.

The days of 24-hour sunlight can be an adjustment too. “One of the guys was very proud to announce that he got sunburned … while working night shift!”

Embree chuckled.

Campo Morado Farallon Resources are currently developing the G-9 mine on the Campo Morado property located in Guerrero State, Mexico. It is a historic mining property that, in 1997, was acquired by CIM Magazine n Vol. 2, Nº 5

engineering exchange

Workers in Greenland enjoy a scenic view

Hunter Dickinson. Knight Piésold is assisting with environmental permitting, water and waste management, and all geotechnical aspects of the project.

Permits were awarded to develop the mine in June of this year and Knight Piésold’s team is flat out on this fast track development. Their scope of work includes the design and construction of a zero discharge, sophisticated water and waste management system, which includes stream diversions and a membrane-lined, earth-rock fill embankment dam.

Challenges specific to the site include the remediation of the historic mining discharge, rugged terrain, and seasonal heavy rains. Knight Piésold is also involved in designing an access road and the building of a large platform for the mill. With assistance from its Lima office, Knight Piésold’s Vancouver staff will provide construction supervision services for the initial mine construction, and ongoing services for water and waste management, and geotechnical design for the underground mining.

construction of the initial phase of the tailings facility began. Knight Piésold has provided all the detailed design and construction QA/QC for the multiple tailings dam raises since that time, completed annual inspections of the tailings facility, and in 2006 provided the design and QA/QC services for a heap leach pad.

Mount Polley Mine started production in 1997 and had milled approximately 27.5 million tonnes of ore prior to stopping production in October 2001.

Mount Polley Mine re-opened in March 2005 after managing the facilities for care and maintenance activities since October 2001. MPMC is currently mining and milling ore from the Bell pit and the Wight pit with the non-reactive tailings being deposited as slurry into the tailings storage facility. The tailings facility consists of filter-graded earthfill embankments with a low permeability core zone that is constructed with local glacial till materials that extend throughout the basin. Process water is collected and recycled back to the mill for recycle in the milling process.

Mt. Polley operates the mill concentrator at nominal 20,000 tonnes per day.

The Cariboo pit has been mined out, the Wight and Bell pits are currently being mined, with the Springer pit and the South East Zone expected to come on

line within the year. Water management is important as the mine site is currently operating under water surplus conditions, with the water being stored in the tailings facility. Knight Piésold engineers are working with Mount Polley mine personnel to adapt the site water management plan so that it accommodates the ongoing expansion of the mine.

The current mine plan extends through 2015, although further exploration is ongoing. Although mine closure is at least eight years away, the closure plans are reviewed during each expansion stage of the tailings facility by Knight Piésold to ensure that the design is consistent with the long-term closure and reclamation plans. Knight Piésold has been involved with Mount Polley mine for 18 years and plans on seeing the mine through to its closure and reclamation stage.

Knight Piésold is firmly committed to seeing projects through from beginning to end. Many of their clients are companies they have consulted for in the past. A large proportion of their contracts are long term, such as the Montana Tunnels Mine in Montana, where Knight Piésold started investigations in 1985.

Twenty-three years later and they’re still there. In the mining industry, that’s a lifetime indeed. CIM

Mount Polley Closer to home, Knight Piésold has been involved with the Mount Polley mine in central British Columbia, near Williams Lake.

Knight Piésold got involved in 1989 when Mt. Polley was in the feasibility stage. Les Galbraith, senior engineer, became involved in 1996 when August 2007

45

HR outlook Labour market transition

by Ryan Montpellier, director of operations, Mining Industry Human Resources Council The Mining Industry Human Resources Council (MiHR) has provided labour market intelligence on the Canadian mining industry for over three years. Based on recent industry growth rates, GDP forecasts, retirement projections, and average turnover rates, the industry will need to hire up to 10,000 new workers per year to meet anticipated production targets. This is up from 8,100 workers per year just two years ago.

The suggested solution to this recruitment challenge lies in a multipronged strategy targeting youth, aboriginal people, women, and immigrants, while maximizing retention and delaying retirement. MiHR recently conducted research to examine the possibility for recruiting and retaining experienced workers from declining sectors as another potential source of labour to meet growing HR needs. This study paid particular attention to the issue of recruiting workers from industries with a surplus of labour. Industrial workforce transition issues, including barriers and best practices in engaging workers from declining sectors, were also addressed.

Throughout the research, three declining industries in particular emerged as potential sources of new workers for mining: farming, forestry, and manufacturing. Many current or former employees in these industries have skills that are similar to those needed in mining. Workers in these sectors also tend to be accustomed to shift work, have experience with heavy machinery or process operations, and often have training that is relevant to the mining industry (e.g. safety, leadership).

In the case of forestry and farming, individuals are often located in proximity to 46

areas where mining operations are found (e.g. rural, northern). Many of these workers would therefore be a good fit for the mining sector.

The forestry industry emerged as the most likely source of potential labour for mining. The integrated forestry sector has seen employment decline sharply after the peak in 2003. During this recent contraction, forestry has shed almost 50,000 jobs (from 350,000 to 300,000 in approximately four years). While dramatic, this plunge in employment has left the industry above the previous cyclical bottom. In 1992, the sector’s employment dropped to approximately 275,000. This implies that further job losses in the forestry sector are still probable. Interviews with management of forestry companies confirmed this and they anticipate further permanent job losses in Quebec, Ontario, and British Columbia through 2007 and 2008.

Downsizing has hit all three sub-sectors of the forestry industry: forestry and logging, paper manufacturing, and wood product manufacturing. However, forestry and logging has experienced the sharpest decline, losing a full 25 per cent of its labour force in just four years.

Key issues for the structural decline in the integrated forestry sector include: • Long-standing trade policy and tariff issues with lumber exports to the United States • The recent slowdown in US housing construction • The appreciation of the Canadian dollar • Declining circulation and weight of newspapers in Europe and North America • Rising energy costs, particularly electricity pricing in Ontario Although the situation is grim and unfortunate for forestry companies and workers, it poses a unique opportunity for the growing mining sector. The mining industry has an exceptional opportu-

nity to transition workers from the ailing forestry companies. Because forestry labour adjustment will occur through plant closures, forestry companies have limited capacity to retain skilled workers or offer targeted early retirement packages in the affected areas. This means that the age distribution and occupational mix of individuals being shed by this sector will include younger, more mobile, and more highly trained individuals.

Key occupations being shed from forestry that are of interest to mining include: • Heavy equipment operators • Heavy duty equipment mechanics • Industrial electricians • Mechanical engineers • Electrical engineers • Welders • Machine operators • Instrumentation technologists Existing labour market transition literature suggests that recruiting individuals from declining industries is not a viable long-term labour solution for an industry. However, it can be a shortterm fix, contributing to an overall strategy in addressing the growing supply–demand gap in human resources. Recruitment initiatives targeted at workers from declining sectors such as relocation subsidies, sponsored gap training, or flexible shift options will certainly help attract these workers.

The availability of a stable job seems to be a sufficient motivator for many workers to transition to a new industry, but increased wages are often required to lure them to a new region. Given that the average salary in the mining industry is 28 per cent higher than that of the forestry sector, the probability of transitioning these workers is excellent. CIM For more information on the labour market transition initiatives or to obtain a copy of the report, please visit www.mihr.ca or contact Ryan Montpellier at RMontpellier@mihr.ca CIM Magazine n Vol. 2, Nº 5

student life SOP—a student’s operating potential

by Mladen Jankovic, third-year metallurgical engineering student, Laval University As a young first-year metallurgical engineering student getting ready to embark on your first co-op term in industry, you tend to ask yourself a lot of questions, such as: What kind of tasks will I be asked to perform? Will I be able to quickly integrate myself into the team and meet the work expectations of the company? However, when you are about to begin your third co-op term, you ask different questions, such as: Will the employer give me the opportunity and experiences to accomplish important objectives rather than only performing routine tasks?

In the winter of 2007, I embarked on my third and final co-op term. It was therefore important to me that I experience as much of the mining industry as possible before choosing my preferred field of future work. For a soon-to-begraduating student, it is flattering and motivating to be responsible for, and involved with, bigger projects rather than routine sampling and data acquisition activities that are normally given to co-op students. With these objectives in mind, I was looking for a position that would be of good value to the company and provide a stimulating and exciting work experience.

In December 2006, I was hoping to be hired for a four-month international internship somewhere in the south where it is warm. Instead of going somewhere warm, I ended up being selected for a co-op term near the 62nd parallel in the Quebec-Nunavut Territory at Xstrata Nickel’s Raglan operation.

Upon arrival at the site, I was pleasantly surprised by Raglan’s accommodations and facilities: nice rooms, great food, well-equipped gym, and lots of recreational activities that unite the employees in one big coordinated community. Raglan is a fly-in/fly-out (FI/FO) operation, where employees work on rotation (three weeks on/two weeks off or four weeks on/two weeks August 2007

off). Because of Raglan’s location in the Nunavik Territory of northern Quebec, Xstrata benefits from numerous employees residing in the local Inuit communities as well.

Upon my arrival in the metallurgical department, I was trained to perform daily laboratory tasks and given a ‘real-deal’ project— development of a standard operating procedure (SOP) on a Malvern Mastersizer 2000. This high-tech instrument is used for particle size analysis in the size range 0.02 to 2000 mm. The ultimate objective of this project was to calibrate this new analytical instrument to meet company requirements and reduce the time required to perform particle size analysis. Currently, the traditional method of using sieves is employed. Before completely switching to Malvern technology, which uses a laser scattering method to determine particle size, it was essential that the results were as comparable and reliable as the sieves.

Therefore, statistical methods had to be used to ensure that the results were trustworthy. SOPs also had to be developed so that qualitative and comparable results are obtained from person to person.

Thus, the challenge has been to remove the sources of variability. Instrument maintenance was also an important part of the project; obtaining reliable, repeatable, and reproducible results while running the tests requires special cleaning procedures of delicate optical devices.

Getting this project right will make a significant difference to Raglan by allowing the metallurgical technician to perform other more value-added work, while in the end providing more accurate particle size distribution results.

I was also responsible for a smaller project which involved evaluating the performance of the concentrator’s con-

tinuous density gauges. This project consisted of establishing a correlation between the plant data and actual laboratory measurements to determine whether the plant’s gauges provided accurate information. Getting this project right will ensure that the operators and engineers have good information to base important operating decisions upon.

At Raglan, I’ve been given a lot of liberty and autonomy which I found to be very important for building my selfconfidence. These responsibilities have made for a valuable and motivating experience for me at Xstrata Nickel’s Raglan Mine. The best supervisors are those who are able to see operating potential in their co-op students and who are willing to challenge them. As a result, students obtain valuable experience and can really contribute to a company’s bottom line. CIM 47

The Canadian mining industry in need of engineers >>> by S. Théophile Yaméogo

T

he history of human development is closely linked to minerals and mining. The Stone Age, Copper Age, Bronze Age, and Iron Age, as taught by historians and archaeologists, demonstrate the prime role the discovery and use of minerals played in the evolution of the first people. The extractive resources later became the motor of economic and social development for most civilizations, with riches derived from mining operations.

Canada’s history is tightly interwoven with the exploration and mining of resources. In the last decade of the 19th century, the numerous foundries and smelters in Quebec, Ontario, New Brunswick, and Nova Scotia turned Canada into a newly industrialized country. Colonization of the western provinces relied heavily on the production of iron (rails and wagons for the railways) and coal (as fuel for locomotives and foundries) in the Maritimes, Quebec, and Ontario. This economic prosperity had social reper-

48

cussions, as it led to well-paid jobs in the mining sector and to the proliferation of mining towns and villages created by an exodus of the population.

In Canada, the mining industry, often referred to as the minerals and mining sector, includes mineral exploration, metal, non-metal, and coal mines, quarries, sand and gravel pits, oil sands operations, foundries for non-ferrous metals, metal refineries, and steel plants.

How important is today’s mining industry for Canada?

>>> THE CANADIAN MINING INDUSTRY Canada has extraordinarily rich basement rocks; many mines can be found throughout the country (Fig.1) and can be classified as follows: • With the Saskatchewan mines, Canada was first in the world production of potash and uranium in 2005.

CIM Magazine n Vol. 2, Nº 5

young people to college and university mining programs?

>>> THE LACK OF WORKFORCE IN THE MINING INDUSTRY There is a shortage of manpower in all Canadian industries. This situation has been attributed to the low fertility rate but mainly to the retirement of the baby boomer generation. However, throughout this alarming situation, there is little mention of the mining industry, where the problems are even more pressing. In the 2001 census, Statistics Canada indicated that the average age of workers in the metals and minerals sector was the highest of all industries (Fig. 4). It was thus evident Fig. 1. Main production of metals and minerals in Canada. Source: Natural Resources Canada that the manpower shortage due to retirements affected the mining indus• Canada ranks second as world producer of nickel (mines in the try more than other industries.

Sudbury Basin, Ontario, and the Raglan Mine in Québec) and To satisfy its human resources needs, the Canadian mining magnesium. industry needs an estimated 81,000 more employees for the years • Canada is third in the production of titanium concentrate, alu2005 to 2014. During this same period, the majority of skilled workminium, cobalt, and metals of the platinum group. ers, i.e. nearly 65 per cent of geoscientists, will reach the age of • Diamond extraction in the Northwest Territories represents 12.3 retirement. And, as one out of four employees in the mining sector per cent of the world production, placing Canada after is a university graduate, it is logical to think that the universities will Botswana and Russia. With the planned opening of new mines, play an essential role in the solution of the shortage problem. The Canadian production will attain 20 per cent of the world prostate-of-the-art mining technologies require specialized knowlduction. edge, the mastery of computer tools, resulting in the need for very • Canadian production of zinc, cadmium, asbestos, and gypsum educated workers. is in fourth rank in the world.

The number of graduates from the nine mining engineering With the added value of the oil sands, Alberta is the most proprograms is not sufficient to satisfy the current manpower ductive province, attaining nearly $14 billion in 2005 (Fig. 2). requirements. For example, in 2005 about 100 new mining The metals and minerals sector is very efficient: out of a total active population of 16.2 million persons in 2005, only 388,000 persons, i.e. 2.4 per cent, are directly and indirectly employed in mining but they produce 4 per cent of the Canadian Gross Domestic Product. In contrast, 12 million Canadians work in the services sector and 4 million in the production sector. In 2005, exports from mining represented 14 per cent of foreign trade. It is therefore not surprising that salaries are higher (Fig. 3). As well, the minerals industry is often the only possible means of economic development for communities in the remote areas of the country.

How, then, do we explain that such a prosperous industry, so essential to the economy, can have such a lack of qualified manpower? How are we to understand that attractive salaries and the very high Fig. 2. Value of Canadian mine production in 2005 (without smelting and refining). Sources: Natural Resources likelihood of employment does not attract Canada; Statistics Canada August 2007

49

Fig. 3. Evolution of weekly salary of some industries (2001–2005). Source: Statistics Canada

Fig. 4. Age of workers – minerals and metals sector and in all other industries.

Source: Statistics Canada, 2001 census

engineers graduated from Canadian universities while the According to Professor Huw Phillips, director of the School of industry needed 150. In 2006, only 83 students graduated from Mining Engineering, University of the Witwatersrand, mining engineering programs in all of Canada (Fig. 5). In Johannesburg, South Africa, the current shortage of engineers in Quebec during this period, the 15 or so junior mining engineers, the western world is partly due to the crisis in mining education essential for the mines in times of economic stability, would caused by fewer new students, the costs associated with an engihave been just enough if the runaway prices for metals had not neering program, and the profit-making attitude of teaching instiopened new mines. In this province, only three universities tutions. He states that during the last two decades, more than one (Laval, École Polytechnique, and McGill) offer mining engineermining program has closed, representing a 30 per cent decrease in ing programs and, together, they produce, at most, 15 graduates the training capacity in Canada, Australia, the United States, and per year. the United Kingdom. During this time, the demand for new engiAs the mining industry workforce shortage is a worldwide neers has continued to grow. problem, the competition to hire new engineers is international.

At the Department of Mining and Geological Engineering at the The gloves are off, first between Canadian companies and also University of Arizona, Professor Mary Poulten agrees with this reabetween Canada, the United States, and Australia. Each year, soning. “The cyclical nature of employment in commodity markets Australian companies recruit mining graduates in Canadian unidirectly impacts enrolment in programs, but universities generally versities. American mining company headhunters can also be believe that all academic programs operate at steady state, and low seen in the corridors of our universities. As a matter of fact, enrolments indicate poor-quality programs. This resulted in closure American companies are the biggest employers of mining engineers. Nearly 5,200 are currently employed in the US and, according to the Society of Mining Engineers, 225 new engineers will be needed each year, just to replace the retirements.

However, within this fierce competition between the mining industries of the different countries, some graduates will choose to stay in the field of academic research or civil engineering consulting firms. In the US, one quarter of new mining engineers change industries, thus aggravating the shortage to nearly 400 new engineers, while only about 100 engineers graduate from American universities each year. There is no data on the career changes for Quebec or Canada, but the situation described above is even more critical if this aspect is considered.

How did we get there? How can we get Fig. 5. Mining engineering programs and the number of graduates in Canada (2006). Source: Canadian Council out of this situation? of Professional Engineers; accredited engineering programs—mining engineering, mineral engineering 50

CIM Magazine n Vol. 2, Nº 5

of a large number of mining and petroleum engineering departments in major research universities in the US over the last two decades.”

The lack of visibility of the mining industry is also to blame, despite its incommensurable contribution to the economy, job creation, and local communities. During recruitment days in CEGEPs, young people often ask questions that seem inappropriate to a mining engineer, but that show all the bad publicity and ignorance stemming from sensationalized spectacular accidents, uncontrolled pollution, bad stewardship, and the sharp criticism of environmental groups. The modern mining industry, especially in Canada, underwent an extraordinary metamorphosis, but this is not referred to in the media.

Research chairs in mining environment, parity or tripartite committees with trade unions and communities, scientific discoveries, state-of-the-art technological developments, career possibilities, and the fantastic salaries are not mentioned, maybe because of a lack of dynamic marketing by the mining companies towards the population in general, but mainly towards the young. How then can we expect a CEGEP student to be aware of the opportunities offered by the mining industry and to want to enter such programs?

Several possible solutions have been proposed throughout the world to solve this manpower shortage crisis. Throughout Canada, mining associations, government departments, and mining companies are in favour of a better coordination of efforts. This can be accomplished through financial incentives for students taking up mining, recruitment campaigns to increase the number of immigrants and Native People in the mining world, and investments in training programs for mining engineers. For more vitality, the Mining Association of Canada organizes a Mining Day each year on Parliament Hill. The Quebec Mining Association organizes an annual Mining Week in order to show the population the importance and benefits of the activities in this sector. The universities are also part of the game. With the support of the industry, students are awarded scholarships in most of the nine programs across Canada.

In the US, the shortage of engineers and the fewer new registrations in mining in the universities have caused such anxiety that the authorities had to take exceptional measures. In June 2006, the U.S. House of Representatives voted in favour of the Energy and Mineral Schools Reinvestment Act. One of the objectives of this law, waiting to be passed, is to guarantee the availability of funds, both for the universities and for the students, in the following engineering fields: mining, petroleum, applied geology, and geophysics in American universities. The ultimate goal is to produce the required number of new engineers each year, in order to absorb the shortage.

Faced with the same challenge, Australia is also adopting innovative strategies. According to Professor Bruce Hebblewhite, head, School of Mining Engineering at the University of New South Wales, the Minerals Council of Australia and three large universities are going to found the First Nation School of Mining Engineering, to tackle the problem of a chronic shortage of engineers in this field. In Australia, the shortage is very critical; in 2006, the mining industry, which needed 150 new mining engineers, had to settle for only 32.14 Salaries for new mining engineers reached AUS$130,000, i.e. 60 per cent more than new employees in the big investment banks.15

>>> CONCLUSION Quebec and Canada cannot do without a mining industry, as this industry is an integral part of our country’s economy and employment, and is the livelihood of more than 100 communities. On the world scale, and in addition to its rich subsoil, Canada is recognized for its manpower quality, the excellence of its training programs, and the scientific discoveries of the specialized research centres. This recognition could, however, be lost to other countries if the challenges of the manpower shortage and the low recruitment are not addressed in the very short term. The manpower shortage could surely slow down the functioning, efficiency, and productivity of existing mines; it could also delay opening of new mines despite the runaway metals and minerals prices. Since the problem is worldwide, it is up to Quebec and Canada to bring their leadership and their creativity into play once again and, as in many historical events, to resolve the situation.

Our closest competitors, the US and Australia, are already establishing the benchmarks of a new vision to ensure qualified manpower by reinventing their programs and protecting them from closure, by investing in outreach campaigns for young people, and by recruiting Canadian graduates with the promise of money. This new dynamism at all scales is not yet seen in Canada; there is much to gain and much to lose in this battle.

With the globalization of the world markets and the almost automatic granting of manufacturing jobs to low-wage countries such as China and Brazil, Canada would do well to keep its acquired position in the technical and economical development of extractive natural resources. The Canadian mining industry has the best international reputation for image, qualified manpower, financing exploration work, and direct investments. CIM

Note: This article is available in full in the online version of the August 2007 CIM Magazine. Footnotes are included in the fulllength version.

>>> Word of thanks The author sincerely thanks the Département de Génie civil, géologique et des mines of the École Polytechnique de Montréal; this report was written for and financed by the department.

Sincere thanks to the mine program coordinators across Canada.

August 2007

51

L’industrie minière du Canada en manque d’ingénieurs >>> par S. Théophile Yaméogo

>>> INTRODUCTION L’histoire de l’humanité et de son développement est intrinsèquement liée aux minéraux et métaux. Les périodes d’âge de pierre, de cuivre, de bronze et de fer que nous enseignent les historiens et les archéologues démontrent à quel point la découverte et l’utilisation des minerais ont joué un rôle primordial dans l’évolution des premiers humains. Les ressources extractives ont plus tard été le moteur du développement économique et social de la majorité des civilisations, qui se sont enrichies grâce à des exploitations – exclusivement ou partiellement – minières.

L’histoire du Canada est étroitement liée à l’exploration et à l’exploitation des ressources minières. Dans la dernière décennie du 19e siècle, les multiples fonderies du Québec, de l’Ontario, du NouveauBrunswick et de la Nouvelle-Écosse auront fait du Canada un nouveau pays industrialisé. C’est surtout grâce à la production de fer (fabrication des rails et des wagons des chemins de fer) et de char52

bon (pour le combustible des locomotives et les fonderies) des Maritimes, du Québec et de l’Ontario que la colonisation des provinces de l’Ouest sera entreprise avec succès. Sur le plan social, cette prospérité économique du Canada est synonyme d’emplois bien rémunérés dans le secteur minier et de la prolifération de villes et villages miniers créés par l’exode des populations.

Au Canada, l’industrie minière, parfois connue sous le vocable de secteur des minéraux et des métaux, comprend l’exploration minérale, les mines de métaux, de non-métaux et de charbon, les carrières, les sablières et les gravières, les exploitations de sables bitumineux, les fonderies de métaux non ferreux, les affineries et les aciéries. Quelle est l’importance de l’industrie minière le Canada aujourd’hui ?

>>> L’INDUSTRIE MINIÈRE AU CANADA Le Canada dispose d’un sous-sol extraordinairement riche. Une multitude de mines parsèment son territoire (figure 1) et lui donne le classement suivant : CIM Magazine n Vol. 2, Nº 5

Comment alors comprendre qu’une industrie si prospère et si incontournable dans l’économie d’un des grands pays de la planète se retrouve dans une situation de pénurie de main-d’œuvre qualifiée ? Comment comprendre que les salaires attrayants et la très forte probabilité d’embauche n’attirent pas les jeunes vers les programmes de mines au cégep et à l’université?

>>> LA PÉNURIE DE MAIND’ŒUVRE DANS L’INDUSTRIE MINIÈRE Il est question de pénuries de main-d’œuvre dans toutes les industries au Canada.

Cette situation est souvent attribuée au faible taux de natalité, mais surtout aux départs à la retraite de la génération des baby Figure 1 : Productions principales de minéraux et métaux au Canada (Source : Ressources naturelles Canada) boomers. Toutefois, dans cette situation alarmante, on fait très peu cas de l’industrie • avec les mines de Saskatchewan, le Canada se classe premier minière dont les problèmes sont encore plus préoccupants. Au dans la production mondiale de potasse et d’uranium en 2005; recensement de 2001, Statistique Canada révélait que le secteur des • pour le nickel (mines du bassin de Sudbury en Ontario et de minéraux et métaux avait les moyennes d’âge les plus élevées de Raglan au Québec) et le magnésium, le Canada est le deuxième toutes les industries (figure 4). Il était donc manifeste que la pénurie producteur mondial; due aux départs à la retraite toucherait plus ardemment l’industrie • le Canada est troisième dans la production de concentré de minière que toute autre industrie. titane, aluminium, cobalt, métaux du groupe du platine; Effectivement, l’Association minière du Canada, en collaboration • l’extraction de diamant dans les Territoires du Nord-Ouest avec Ressources naturelles Canada, estime que pour répondre à ses compte pour 12,3 % de la production mondiale, ce qui place le besoins en ressources humaines, l’industrie minière canadienne a Canada derrière le Botswana et la Russie. Avec les ouvertures besoin de 81 000 employés de plus au cours des années 2005 à 2014. prévues de nouvelles mines, la production canadienne atteinDurant cette même période, la majorité des travailleurs compédra 20 % de la production mondiale; tents, soit près de 65 % des géoscientifiques, atteindront l’âge de la • la production canadienne de zinc, cadmium, amiante et gypse retraite. Et comme un employé sur quatre dans le secteur minier est se place au quatrième rang mondial. titulaire d’un diplôme universitaire, il est logique de croire que les C’est l’Alberta qui, grâce à la haute valeur ajoutée de ses sables bitumineux, est la plus productive des provinces avec près de 14 milliards de dollars en 2005 (figure 2).

Le secteur des minéraux et métaux est très efficace. Sur une population active totale de 16,2 millions en 2005, seulement 388 000 personnes—soit 2,4 %—sont employées directement et indirectement dans l’industrie minière et produisent 4 % du produit intérieur brut du Canada. En comparaison, 12 millions de Canadiens travaillent dans le secteur des services et 4 millions dans celui des produit. En 2005, les exportations des produits de leur labeur représentaient 14 % du commerce extérieur. C’est donc sans surprise que leur traitement salarial est des plus élevés (figure 3). Par ailleurs, l’industrie minière représente souvent la seule possibilité de développement économique dans les Figure 2 : Valeur de la production canadienne des mines en 2005 (sauf fusion et affinage) régions éloignées du pays.

(Sources : Ressources naturelles Canada; Statistique Canada) August 2007

53

1400

Salaire hebdomadaire ($CAN)

1200

1000

800

600

400

200

é

s

nt

se

sa de in So

G

es

tio

s

tr en d' n

et e nc na 2003

ep

ra su as

br Fa Fi

2002

ri

nc

io at ic

ru st on C

M 2001

es

n

n ct

bl

ic

io

s

z es ic rv

, in

es

Se

pé

tr

Fo

ol

e

pu

et

er re

st

en di na ca ne en oy M

ga

ie

ne

0

2004

2005

Figure 3 : Évolution 2001 – 2005 du salaire hebdomadaire de quelques industries (2001-2005). (Source : Statistique Canada)

Figure 4 : Répartition de l’âge des employés Composition selon l’âge de l’industrie minière canadienne par rapport aux autres industries. (Source : Statistique Canada, recensement 2001)

universités joueront un rôle primordial dans la quête de la résoludiplômés choisissent le domaine universitaire de la recherche ou les tion du problème de la pénurie. Les technologies de pointe renconbureaux-conseils en génie civil. Aux États-Unis, c’est le quart des noutrées dans les mines demandent des connaissances spécialisées en veaux ingénieurs de mines qui changent d’industrie, ce qui accroît la extraction minière et une maîtrise des outils informatiques. D’où la pénurie annuelle à presque 400 nouveaux ingénieurs, alors que nécessité de l’embauche de travailleurs très scolarisés. seulement une centaine de finissants sortent des universités amériCependant, le nombre de diplômés des neuf programmes caines chaque année. Il n’existe pas de données sur le changement de d’ingénierie minière ne suffit pas à combler les besoins actuels. En 2005 carrière pour le Québec et le Canada, mais on se rend compte que la par exemple, une centaine de nouveaux ingénieurs miniers sont sortis situation décrite plus haut peut être plus critique si on considère cet des universités canadiennes alors que l’industrie en réclamait 150. En aspect. Pourquoi est-on arrivé là ? Et comment s’en sortir ?

2006, seulement 83 étudiants ont reçu un diplôme des programmes de Le professeur Huw Phillips, directeur du département des mines génie des mines de tout le Canada (figure 5). Pendant ce temps, au de la renommée Université de Witwatersrand (Afrique du Sud) pense Québec, la quinzaine d’ingénieurs miniers juniors par an, indispensque la pénurie d’ingénieurs de mines qui sévit dans le monde occiables au fonctionnement des mines en temps de stabilité économique, dental est en partie due à la crise de l’éducation en mines qui s’est aurait pu tout juste satisfaire à la demande si la flambée des prix des manifestée par la baisse du nombre de nouveaux étudiants, le coût métaux n’avait occasionné l’ouverture de nouvelles mines. Il faut se rapassocié aux programmes d’ingénierie et l’attitude de profitabilité des peler que dans la province, seules trois universités (Laval, Polytechnique institutions d’enseignement. Il affirme qu’au cours des deux dernières et McGill) offrent des programmes en génie des mines qui plus est, prodécennies, plus d’un programme de mines y a été fermé par an, ce qui duisent tout au plus 15 diplômés par année.

Par ailleurs, comme la pénurie dans l’industrie minière est mondiale, la compétition pour embaucher les nouveaux ingénieurs est internationale. On assiste à une bataille rude, d’une part entre les compagnies canadiennes, d’autre part entre le Canada, les ÉtatsUnis et l’Australie. De nos jours, les compagnies australiennes courtisent chaque année les finissants en mines des universités canadiennes. Il en est de même pour les compagnies minières américaines dont les chasseurs de tête sillonnent les couloirs de nos universités. En effet, les États-Unis restent le plus gros embaucheur d’ingénieurs miniers. Près de 5 200 sont actuellement employés, et, selon les donnés de la Society of Mining Engineers, 225 nouveaux ingénieurs seront nécessaires chaque année, tout juste pour remplacer les départs à la retraite. À cette féroce concurrence entre les industries minières des différents pays, il Figure 5 : Programmes de génie des mines et le nombre de diplômés en 2006 au Canada. (Source : Conseil canafaut préciser qu’un certain nombre de dien des ingénieurs. Programmes de génie des mines ou génie minéral accrédités) 54

CIM Magazine n Vol. 2, Nº 5

représente une réduction de 30 % de la capacité de formation au Canada, en Australie, aux États-Unis et au Royaume-Uni. Pendant ce temps, la demande pour de nouveaux ingénieurs miniers n’a pas cessé de croître. La directrice du département de géologie et des mines de l’Université d’Arizona, la professeure Mary Poulten, adhère à ce raisonnement. D’après son analyse, les institutions universitaires jugent généralement que tous les programmes académiques fonctionnent selon le même mécanisme, et qu’une baisse des nouvelles inscriptions indique qu’un programme n’est pas intéressant, à la limite inutile. C’est pourquoi un grand nombre de programmes en mines a été abandonné dans plusieurs grandes universités américaines.

On blâme aussi le manque de visibilité de l’industrie minière, malgré son apport incommensurable à l’économie, à l’emploi et aux collectivités locales. Lors des journées de recrutement dans les cégeps, il est fréquent que les jeunes posent des questions – incongrues pour un ingénieur minier – qui étalent toute l’ampleur de la mauvaise publicité et de l’ignorance héritées des années d’accidents spectaculaires, de pollution incontrôlée, de mauvaise gouvernance et de la véhémence des groupes environnementalistes. L’industrie minière moderne, surtout au Canada, a subi une métamorphose extraordinaire mais dont les médias n’en font toujours pas écho. Les chaires de recherche en environnement minier, les comités paritaires ou tripartites avec les syndicats et les collectivités, les découvertes scientifiques, les développements technologiques de pointe, les possibilités de carrière et les salaires de rêve sont passés sous silence peut-être à cause du manque de dynamisme dans le marketing des compagnies minières à l’égard de la population et surtout des jeunes. Comment peut-on alors s’attendre à ce qu’un étudiant du cégep connaisse les possibilités offertes par l’industrie minière, et qu’il veuille s’inscrire dans ses programmes ?

Plusieurs pistes de solution ont été proposées dans le monde pour résoudre la crise du manque de main-d’œuvre. Au Canada anglais comme au Québec, les associations minières, les ministères et les compagnies minières préconisent une meilleure coordination des efforts.

Ceci se fera avec des incitatifs financiers pour les étudiants qui s’orienteront en mines, des campagnes de recrutement pour accroître le nombre d’immigrants et d’autochtones dans le monde minier, des investissements dans les programmes de formation des ingénieurs en mine. Pour plus de visibilité, l’Association minière du Canada organise chaque année la Journée minière sur la Colline parlementaire. Quant à l’Association minière du Québec, elle coordonne annuellement la Semaine minière du Québec destinée à sensibiliser et à démontrer à la population toute l’importance et les retombées des activités de ce secteur. Les universités ne sont pas en reste. Grâce à l’appui de l’industrie, des bourses sont allouées aux nouveaux étudiants en génie des mines dans la presque totalité des neuf programmes au Canada.

Aux États-Unis, la pénurie d’ingénieurs et la baisse des nouvelles inscriptions en mines dans les universités inquiètent à ce point que les autorités ont été contraintes de prendre des mesures exceptionnelles. En juin 2006, la Chambre des Représentants a voté en faveur de la mise en place d’une loi dénommée EMSRA pour « Energy and Mineral Schools Reinvestment Act ». L’un des objectifs de cette loi, en attente de promulgation, est de garantir la disponibilité de fonds, aussi bien pour les universités que pour les étudiants, dans

les programmes de génie des mines, de génie du pétrole, de géologie appliquée et de géophysique dans les universités américaines.

Le but ultime est de fournir le nombre nécessaire de nouveaux ingénieurs chaque année pour, à terme, résorber la pénurie.

L’Australie, qui fait face au même défi, adopte aussi des stratégies novatrices. Selon le professeur Bruce Hebblewhite, chef du département de l’école des mines de l’Université des Nouvelles Galles du Sud, l’association minière australienne (Minerals Council of Australia) et trois grandes universités vont mettre sur pied la première école nationale en ingénierie de mines pour s’attaquer au problème de la pénurie chronique des ingénieurs du domaine. La pénurie en Australie est vraiment très sévère : en 2006, l’industrie minière, qui avait besoin de 150 nouveaux ingénieurs miniers, a dû plutôt se contenter de 32. Les salaires des ingénieurs de mines débutants atteignent 130000 dollars australiens, soit 60 % de plus que celui des nouveaux employés des grandes banques d’investissement.

>>> CONCLUSION Le Québec et le Canada ne peuvent se passer de l’industrie minière car elle participe très généreusement à l’économie du pays, aux emplois et au rayonnement de plus d’une centaine de collectivités. Au niveau mondial, le Québec et le Canada, en plus de leur sous-sol très riche, sont reconnus pour la qualité de leur main-d’œuvre, l’excellence de leurs programmes de formation et les avancées scientifiques de leurs centres de recherche spécialisés. Toutefois, cette reconnaissance pourrait aller à d’autres pays si les défis de la pénurie de la main-d’œuvre et du faible recrutement des jeunes en mines ne sont pas relevés dans les plus brefs délais. Le manque de main-d’œuvre ralentirait assurément le fonctionnement, l’efficacité et la productivité des mines existantes, et freinerait certainement l’ouverture de nouvelles exploitations malgré la flambée des prix des minéraux et métaux. Comme le problème est mondial, il appartient au Québec et au Canada d’user de leur leadership et de leur créativité, encore une fois et comme dans une grande majorité des événements de l’Histoire, pour venir à bout de la situation.

Nos plus proches compétiteurs, les États-Unis et l’Australie, sont déjà en train de poser les jalons d’une nouvelle vision qui leur assurerait une main-d’œuvre qualifiée en réinventant leurs programmes et en les protégeant de la fermeture, en investissant dans des campagnes de séduction auprès des jeunes et en recrutant les diplômés canadiens à coup de dollars. Ce nouveau dynamisme à toutes les échelles ne s’observe pas encore au Québec et au Canada qui, dans cette bataille, ont autant à gagner qu’à perdre.

Avec la modialisation des marchés et l’attribution presque automatique de la manufacture à des pays à bas salaires comme la Chine et le Brésil, le Québec et le Canada auront intérêt à conserver la longueur d’avance qu’ils ont dans le développement technique et économique des ressources naturelles extractives. En effet, l’industrie minière québécoise et canadienne est la plus internationale pour l’image, la main-d’œuvre qualifiée, le financement, les travaux d’exploration et les investissements directs. CIM N.B. Cet article est disponible au complet dans la version en ligne du CIM Magazine d’août 2007. Les notes en bas de page sont incluses dans la version complète.

>>> REMERCIEMENTS L’auteur remercie sincèrement le département de Génie civil, géologique et des mines de l’École Polytechnique de Montréal, pour qui ce document a été rédigé et qui l’a financé. Merci aussi aux coordonnateurs des programmes de mines au Canada.

August 2007

55

cim news CIM welcomes new members Adair, Benjamin, Australia Akerley, Peter C., Nova Scotia Anderson, Gregory, Australia Anusic, Robert M., Alberta Araneda, Cesar, New Brunswick Araneda, Laura, New Brunswick Arsenault, Donald, Ontario Arsenault, Guilliaume, Québec Aston, Jeff, Australia Bahrani, Navid, Alberta Bailey, Marta, Ontario Baker, Mark, USA Baribeau, Andy, Québec Beck, Brian, Alberta Blanchard, Robert, British Columbia Blouin, Simon-Pierre, Québec Boucher, Pierre, Québec Brunelle, Joseph, Ontario Buttin, Greg, Ontario Cacho, Juan M. Lira, Peru Campbell, Sarah, Tanzania Clark, Tobias R., USA Collett, Terry, USA Comejo, Fernando, Newfoundland Coté, Eric, New Brunswick Davidson, Bill, Ontario

De Ruijter, Andre, British Columbia DeBrook, Freddy, USA Desroches, Christian, Québec Doucet, Daniel, Québec Durocher, Pierre, Québec Eljarbo, Ivan, Ontario Fadyshen, Dan, Ontario Ford, Fred, Ontario Froese, Jessica, Québec Gagne, Jonathan, Québec Galipeau, Ahmed, Québec Ge, Sa, Québec Geske, Robert, Ontario Ghaffari, Hassan, British Columbia Goodall, Will, Australia Grieco, Nicole J., Ontario Grimm, Dennis, Ontario Hayashino, Takeshi, USA Henkee, Chris, USA Hesse, Adam, Ontario Hindstrom, Sami, Finland Hughes, Paul, British Columbia Hutchinson, Craig, British Columbia Jha, Rahul, Alberta Johnston, Jordan, Alberta Karami, Amir, British Columbia

Karesvuori, Jarkko, Finland Kebriaei, Hamidreza, Québec Khalife, Mohamadali, Québec Kirkpatrick, James, Nova Scotia Kowalcyk, Mathew, Québec Lawson, Gord, Ontario LeBlanc, Christian, British Columbia Liang, Todd, Ontario Licon-Almada, Samanta, Mexico Lucenti, Scott, Ontario Malas, Khaled, Québec Malina, Roman, USA Marois, Diane, Québec Marsh, Lise, USA Martin, Christopher, Ontario McInnis, J. Anthony C., USA McKenzie, Nicolas, Ontario Meadows, Tim, Ontario Mercier, Pascal Serge, Ireland Mermillod-Blondin, Raphael, Québec Morgan, Jeffery, Newfoundland Norman, Dominic, USA Ochoa Rodriguez, Mario, Mexico Ortiz, Saul, Mexico Papa, Jesus Angeles, Peru Parravano, Sebastien, Mexico

A look back in time 35 YEARS AGO… • The 11th Annual Conference of Metallurgists was held at Nova Scotia Technical College in Halifax. The technical program consisted of 89 papers spread throughout 22 sessions.

• CIM Bulletin announced C.W. (Bill) Doody’s re-election as Minister of Mines, Agriculture and Resources for Labrador and Newfoundland.

• CIM Bulletin reported on well-known figure in Canadian mineral exploration and development, Franc Joubin, who received an honorary Doctor of Laws degree from St. Francis Xavier University.

• As part of the technical section, N.W. Hendry provided an outlook for Canada’s asbestos mining industry.

• The newly elected officers of the Association of Geologists of Quebec were revealed to readers: R.Y. Lamarche, R.H. Grice, and M. Vallée. J. Béland, C. Bertrand, J. Boissonnault, E. Seguin, and P.M. Crépeau were also elected as directors.

• A two-year, $511,000 program to evaluate methods of economically reducing the sulphur content of Cape Breton coal was announced.

• A team from Rio Algom Mines in Elliot Lake won the Mine Safety Appliance Trophy at the Mine Rescue Competitions.

The above was taken from the August 1972 issue of CIM Bulletin.

56

Partridge, Bruce, Nova Scotia Pemberton, Brent K., New Brunswick Perry, Angela, Alberta Pescetelli, Alessandro, Italy Poitras, Marcel, Nova Scotia Potvin, Christopher, Québec Rajwani, Rahim, British Columbia Rawding, Paul, Nova Scotia Raza, Adeel, Alberta Rempel, Curtis, Saskatchewan Ricardo Aguilar, Jose Luis, Mexico Rinne, Antti, Finland Roberts, Stephen, British Columbia Roy, Marcel, Québec Russell, John, Australia Sader, Pascale, Québec Salatic, Vladmir, Honduras Salois, Cara, Ontario Samuel, Daniel T., Ontario Sanderson, Brian, Nova Scotia Schwartz, Sarah, Australia Shea, Robin, Alberta Sibbel, Kristen, Alberta Silva, Erika, British Columbia Singh, Madan, India So, Peter, Ontario Somani, Alif, British Columbia St. Jacques, Guy, Ontario Swinoga, Jeff, Manitoba Tagliabracci, Chris, Ontario Therrien, Jean-Guy, Québec Thibault, Claude, Québec Thompson, James, Québec Trottier, Al, Manitoba Trudel, François, Québec Tsatouhas, George, Australia Ulan, Wesley, Alberta Vendittelli, Luciano, Québec White, Fred, Australia Whyte, Ryan, Australia Widish, Glenn, Saskatchewan Yalcin, Emrah, Ontario

Corporate Members AGC Communications Argentex Mining Corporation Davidson Drilling Ltd. Diamonds North Resources Ltd. CIM Magazine n Vol. 2, Nº 5

cim news Young scientists receive awards At the final event of the Hamilton Branch for the 2006-07 year, five project winners from the local Bay Area Science and Engineering Fair were on hand on May 8 to show their displays and answer questions from members in attendance.

The Hamilton Branch has been an active sponsor of BASEF for over 15 years and provides three prizes for proj-

ects in the materials science category.

The other two winners were recipients of Nelson Steel Awards (Nelson is a corporate sponsor of the branch, and a Nelson parent company employee sits on the branch executive). Each student was treated to three free dinner tickets to invite their parents to join them.

“We are so proud of these dedicated, young winners who have high apti-

tudes and boundless enthusiasm for science and engineering,” said branch executive Shannon Clark. “By demonstrating their desire for knowledge and their passion for science, these students are an inspiration to our members. The CIM Hamilton Branch is proud to support these young scientists in their efforts to learn, discover, and make our world better.” CIM

A world leader in the mining industry is poised for future growth to meet worldwide demands for its products. One of its Canadian locations requires two senior production leaders:

OPERATING MANAGER – REFINING To explore these challenging opportunities, please contact and/or email your resume to: Patrick Rowa an Feldman Daxon Partners prowan@feldmandaxon.com (416) 515-7600 ext. 254

The Operating Manager will be accountable for the operation, maintenance, and process improvement of one of the primary operating areas of a major plant such as Electrolytic & Melting, Roasting and Sulphur Products, Leaching, Lead Smelter or Lead Products. Ideal candidates will have a university degree in engineering with at least 10 years of operating/supervisory experience in a comparable operation with demonstrated accomplishments and experience in business performance, safety, cost, environmental and quality management and strong leadership, strategic planning, communication and change management skills. Experience in aluminum, copper, zinc, lead and metals processing is very desirable.

PRODUCTION SUPERINTENDENT – REFINING The Production Superintendent will report to the Operating Manager, directing day to day operations and responsible for coordination of all production in a major plant with a primary focus on business objectives. Managing a team of shift, group and maintenance leaders, the Production Superintendent will be a member of an engineering and operations management team that will ensure an efficient, high performance, safe and compliant production environment and a productive, well-trained, motivated workforce. Ideal candidates will have at least 10 years of experience in production leadership and management, labour relations, safety, cost control and environmental management, with experience in copper, zinc, lead and aluminum metals processing preferred.

August 2007

57

cim news Prix d’excellence pour étudiants Le 19 mars 2007, quarante-deux personnes de la Section de Québec assistaient à la rencontre annuelle dédiée aux étudiants. Les membres de la Section ont eu le plaisir de recevoir quatre conférenciers étudiants qui ont partagé leur expérience de stage ou de projet de fin d’études et ont ensuite été témoins de la remise du prix SOQUEM. Cette rencontre était commanditée par Agnico-Eagle, l’Association minière du Québec, Carrières Polycor, COREM, Gestion SODEMEX INC, Instrumentation GDD inc et Mines Virginia.

La remise des prix a été faite sous l’égide du nouveau président de la Section de Québec, Monsieur Rock Gagnon. Monsieur Philippe F. Morissette, étudiant en Génie mines et minéralurgie, a traité des Simulations numériques sur Map 3D à la mine Niobec : un outil au service de la production et s’est mérité un premier prix.

Monsieur Olivier Blackburn, étudiant en Génie des matériaux et de la métallurgie, a abordé l’Automatisation de l’ajout de CuSO4 à l’usine Laronde (Agnico-Eagle) et s’est mérité aussi un premier prix. Monsieur Jean-François Montreuil, étudiant en Génie géologique, nous a présenté son Stage d’initiation à l’industrie pétrolière albertaine et s’est mérité un deuxième prix. Monsieur Frédéric Fleury, étudiant en Géologie, a parlé des Sulfures massifs du lac Renzy et s’est vu attribuer aussi un deuxième prix.

Les quatre conférenciers étudiants ont présenté leurs sujets. Les performances des étudiants étaient évaluées par un jury composé de professionnels du milieu; la Section de Québec décernait 1 000 $ en prix pour les présentations, il y a eu deux premiers prix et deux deuxième prix.

La réunion s’est terminée par une présentation faite par les gagnants du prix SOQUEM. En effet, SOQUEM reconnaît le travail des étudiants en géologie et génie géologique de l’Université Laval en les appuyant dans leurs cours et leurs travaux. Cette année, l’équipe gagnante était composée des étudiants suivants: Tania Doucet, Frédéric Fleury, Thomas Fournier, Moussa Tine et Véronique Villeneuve. CIM 58

De gauche à droite : Georges Beaudoin, professeur à l’Université Laval qui a remis le prix SOQUEM, suivi de Tania Doucet, Moussa Tine, Véronique Villeneuve, Thomas Fournier et Frédéric Fleury, tous étudiants en géologie.

De gauche à droite : Rock Gagnon, Philippe F. Morissette, Olivier Blackburn, Jean-François Montreuil et Frédéric Fleury

Student awards Forty-two people took part in the Quebec Branch annual student gathering held on March 19. Four students gave presentations on their work terms and end-of-term projects, which were judged by a panel of industry professionals. The Quebec Branch awarded $1,000 in prizes to: First prizes—Philippe F. Morissette, mining and mineral engineering student, and Olivier Blackburn, materials and metallurgical engineering student.

Second prizes—Jean-François Montreuil, geological engineering student, and Frédéric Fleury, geology student.

The SOQUEM prize was also handed out. The winning team, composed of Tania Doucet, Frédéric Fleury, Thomas Fournier, Moussa Tine and Véronique Villeneuve, also gave a presentation.

The evening was sponsored by Agnico-Eagle, the Quebec Mining Association, Carrières Polycor, COREM, Gestion SODEMEX inc., Instrumentation GDD inc., and Mines Virginia. CIM CIM Magazine n Vol. 2, Nº 5

CIM EVENTS New Brunswick Branch Annual Convention September 6-8 Beresford and Bathurst, New Brunswick Contact: Wayne Hickey Tel.: 506.542.9226 Email: wah@nb.sympatico.ca Calgary Branch Technical Meeting with Guest Speaker September 12 Calgary, Alberta Contact: Andrew Hickinbotham Tel.: 403.267.3891 Email: cimcalgary@gmail.com World Gold 2007 In conjunction with AusIMM and SAIMM October 22-24 Cairns, Australia Contact: Alison McKenzie, AusIMM Tel.: +61.3.9662.3166 Fax: +61.3.9662.3662 Email: conference@ausimm.com.au Website: www.ausimm.com Mineral Resources Review 2007 November 1-3 St. John’s, Newfoundland Contact: Len Mandville Tel.: 709.729.6439 Fax: 709.729.3493 Email: lenmandville@gov.nl.ca CMP 40th Annual Canadian Mineral Processors Operators’ Conference/40e Conférence des minéralurgistes du Canada January 22-24, 2008 Ottawa, Ontario Contact: Janice Zinck Tel.: 613.995.4221 Fax: 613.996.9041 Email: jzinck@nrcan.gc.ca Website: www.c-m-p.on.ca MEMO Maintenence Engineering-Mine Operators’ Conference/ Colloque sur l’ingénierie de maintenance et les exploitations minières February 24-28, 2008 Val-d’Or, Québec Contact: Chantal Murphy, CIM Tel.: 514.939.2710, ext. 1309 Fax: 514.939.2714 Email: cmurphy@cim.org CIM Conference and Exhibition—Edmonton 2008 May 4-7, 2008 Edmonton, Alberta Contact: Chantal Murphy, CIM Tel.: 514.939.2710, ext. 1309 Fax: 514.939.2714 Email: cmurphy@cim.org

August 2007

Automated Mineralogy ‘07 September 1-2 Brisbane, Australia Contact: B.A. Wills Tel.: 44.7768.234121 Fax: 44.1326.318352 Email: bwills@min-eng.com Website: www.min-eng.com/conferences Modular Course in Structure, Tectonics, and Mineral Exploration (field-based) September 1-15 Sudbury, Ontario Contact: Bruno Lafrance Tel.: 705.675.1151, ext. 2264 Fax: 705.675.4898 Email: blafrance@laurentian.ca Cultural Heritage Symposium in Geosciences, Archaeology, Mining and Metallurgy September 3-7 Quebec City, Quebec Contact: Réginald Auger Tel.: 418.656.2952 Fax: 418.656.5727 Email: reginald.auger@celat.ulaval.ca IV Mining Plant Maintenance Meeting—MAPLA 2007 September 5-7 Viña del Mar, Chile Contact: Amada Plaza Tel.: +56.2.652.1521 Fax: +56.2.652.1570 Email: amada.plaza@gecamin.cl Website: www.mapla.cl Public Science in Canada/Strengthening Science to Protect Canadians Symposium September 6-7 Gatineau, Québec Contact: Gary Corbett Tel.: 613.228.6310 Fax: 613.228.7440 Email: science@pipsc.ca SIMINERA 2007 September 18-21 San Juan, Argentina Contact: Axel Arancibia Tel.: 54.11.4328.5886 Fax: 54.11.4328.5859 Email: info@siminera.com.ar Website: http://www.siminera.com.ar Canadian Dam Association 2007 Annual Conference September 22-27 St. John’s, Newfoundland Contact: Paul Porter Tel.: 709.726.4490 Fax: 709.726.4499 Email: pporter@ndal.com Website: www.cda.ca

ALENDA

AROUND THE WORLD

59

2007 Seminar Series PROFESSIONAL DEVELOPMENT

STRATEGIC RISK QUANTIFICATION and MANAGEMENT for ORE RESERVES and MINE PLANNING

For information please contact: Delores LaPratt Department of Mining, Metals and Materials Engineering McGill University, Montreal, QC Email: admcrc.mining@mcgill.ca Phone: 514.398.4755, ext. 089638 Fax: 514.398.7099 Website: www.cim.org For registration please contact: Chantal Murphy Meeting Coordinator, CIM Suite 855, 3400 de Maisonneuve Blvd., W Montreal, QC H3Z 3B8 Email: cmurphy@cim.org Phone: 514.939.2710, ext. 1309 Fax: 514.939.2714 Website: www.cim.org

Mining Engineering

60

Upcoming 2007 Seminars

• Mineral project evaluation techniques and applications: From conventional methods to real options September 11-14, Montreal Michel Bilodeau, McGill University, Canada and Michael Samis, AMEC, Canada Learn the basics of economic/financial evaluation techniques, as well as the practical implementation of these techniques to mineral project assessments. Learn: • How to gain a practical understanding of economic/financial evaluation principles.

• How to develop the skills necessary to apply these to support mineral project decisions.

• About the real options approach to valuing mining projects.

• Geostatistical mineral resource/ore reserve estimation and meeting the new regulatory environment: Step by step from sampling to grade control September 24-28, Montreal Michel Dagbert, Geostat Systems Int, Canada; Jean-Michel Rendu, Consultant, USA; and Roussos Dimitrakopoulos, McGill University, Canada Learn about the latest regulations on public reporting of resources/reserves through state-of-the-art statistical and geostatistical techniques. Learn how to: • Apply geostatistics to predict dilution and adapt reserve estimates to that predicted dilution.

• Learn how geostatistics can help you categorize your resources in an objective manner.

• Understand principles of NI43-101 and SME Guide.

• Theory and practice of sampling particulate materials October 1-3, Montreal Dominique François-Bongarçon, AGORATEK, USA Develop an understanding of the theory of sampling particulate materials, its practice, scope, limitations and appropriate applications. Learn: • Eye-opening facts you may have overlooked or ignored until now about the consequences of bad sampling and the difficulties of good sampling.

• The unsuspected amplitude of economic ramifications of poor sampling.

Upcoming 2008 Seminars • Applied risk assessment for ore reserves and mine planning: Conditional simulation for the mining industry May, Montreal Roussos Dimitrakopoulos, McGill University, Canada • Strategic risk management and applied optimization in mine design May, Montreal David Whittle, BHP Billiton, Australia; Roussos Dimitrakopoulos, McGill University, Canada; and Manuel Arre, Gemcom Software Int., Canada • Computer simulation and animation for the mining industry: Mine design, mine planning and equipment selection June, Montreal John Sturgul, University of Idaho, USA CIM Magazine n Vol. 2, Nº 5

*OBVHVSBM "TJB 1BDJmD 'PSVN PO .JOJOH BOE .JOFSBMT 4FQUFNCFS 0DUPCFS 7BODPVWFS #$

XXX BTJBQBDJmDNJOJOHGPSVN DPN

FKHFEI; 4HE OBJECTIVE OF THE &ORUM IS TO INCREASE TRADE INVESTMENT AND COLLABORATION IN THE MINING AND MINERALS SECTOR BETWEEN "RITISH #OLUMBIA #ANADA AND COUNTRIES AROUND THE 0ACIlC 2IM 4HE &ORUM WILL PROVIDE AN OPPORTUNITY FOR LEARNING NETWORKING AND INFORMATION SHARING BETWEEN SENIOR REPRESENTATIVES FROM GOVERNMENT INDUSTRY THE INVESTMENT COMMUNITY NON GOVERNMENTAL ORGANIZATIONS AND OTHER BUSINESSES SITUATED ALONG THE MINING AND MINERALS VALUE CHAIN

FHE=H7C 4HE &ORUM IS ORGANIZED AROUND THREE MAJOR THEMES 4RADE AND )NVESTMENT n 4RADE AND INVESTMENT BETWEEN "# #ANADA AND 0ACIlC 2IM NATIONS

IN THE MINING SECTOR IS GROWING SIGNIlCANTLY BUT WHAT WILL IT TAKE TO REACH ITS FULL POTENTIAL %MERGING 3TANDARDS "EST 0RACTICE n 7HAT ARE THE EMERGING STANDARDS FOR TRADE INVESTMENT AND MINING DEVELOPMENT AND WHY ARE THEY IMPORTANT !N EXAMINATION OF EMERGING STANDARDS FROM THE 7ORLD "ANK )&# %QUATOR 0RINCIPLES +YOTO AND THEIR POTENTIAL IMPACT ON 0ACIlC 2IM TRADE AND INVESTMENT &INANCE AND 2ISK n !N EXAMINATION OF SPECIlC COUNTRY RISK IN THE !SIA 0ACIlC REGION AS WELL AS DISCUSSIONS REGARDING RISKS RELATED TO lNANCE INFRASTRUCTURE AND LEGAL ISSUES MATTERS 4HESE THEMES WILL BE EXPLORED THROUGH PLENARY AND CONCURRENT SESSIONS OVER THE TWO AND HALF DAY PROGRAM 4HE &ORUM WILL COMMENCE WITH A ,EADERS &ORUM EXAMINING THE FOREMOST ISSUES FACING THE INDUSTRY TODAY 0RE AND POST CONFERENCE EXECUTIVE WORKSHOPS WILL SUPPORT AND EXPAND THE CONFERENCE THEMES 3UBJECT TO DEMAND PARTICIPANTS MAY TAKE ADVANTAGE OF THEIR STAY IN #ANADA TO VISIT SIGNIlCANT MINING OPERATIONS AT DIFFERENT STAGES IN THEIR LIFE CYCLES

5IF PCKFDUJWF PG UIF 'PSVN JT UP JODSFBTF USBEF JOWFTUNFOU BOE DPMMBCPSBUJPO JO UIF NJOJOH NJOFSBMT TFDUPS CFUXFFO #SJUJTI $PMVNCJB $BOBEB BOE DPVOUSJFT BSPVOE UIF 1BDJmD 3JN

7JJ;D:7D9; 4HE &ORUM IS PLANNED FOR SENIOR REPRESENTATIVES FROM THE BUSINESS POLICY MAKING AND POLITICAL COMMUNITY )NTERESTED INDIVIDUALS SHOULD CONTACT THE &ORUM 3ECRETARIAT FOR A REGISTRATION PACKAGE

:7J;I L;DK; 3EPTEMBER /CTOBER

(YATT 2EGENCY 6ANCOUVER (OTEL 6ANCOUVER "RITISH #OLUMBIA #ANADA

;DGK?H?;I !LL ENQUIRES ABOUT THE &ORUM CAN BE DIRECTED TO THE &ORUM 3ECRETARIAT BY EMAIL AT FORUM SEATOSKYMEETINGS COM

BY PHONE

BY FAX OR BY VISITING WWW ASIAPACIlCMININGFORUM COM !LTERNATIVELY YOU CAN WRITE THE 3ECRETARIAT AT

&ORUM 3ECRETARIAT C O 3EA TO 3KY -EETING -ANAGEMENT )NC 3UITE "EWICKE !VENUE .ORTH 6ANCOUVER "RITISH #OLUMBIA #ANADA 6 - -

&OR SPONSORSHIP OPPORTUNITIES PLEASE CONTACT -ICHAEL -C0HIE 0RESIDENT #%/ 4HE -INING !SSOCIATION OF "RITISH #OLUMBIA BY PHONE OR BY FAX WWW ASIAPACIlCMININGFORUM COM

<ekdZ_d] FWhjd[hi 4HE -INING !SSOCIATION OF "# 4HE -INING !SSOCIATION OF "RITISH #OLUMBIA SPEAKS ON BEHALF OF MINERAL PRODUCERS THE MAJOR COMPONENT OF A BILLION INDUSTRY IN "RITISH #OLUMBIA )N DOING SO IT HAS COME TO BE REGARDED AS THE PREDOMINANT VOICE OF MINING IN "RITISH #OLUMBIA -INING REMAINS "# S SECOND LARGEST RESOURCE INDUSTRY AND CONTINUES TO BE AN ESSENTIAL PART OF THE PROVINCIAL ECONOMY +EEPING IT THERE IS ONE OF THE PRIMARY GOALS OF THE !SSOCIATION WHICH REPRESENTS THE COLLECTIVE NEEDS AND INTERESTS OF SMELTERS AND OPERATING COAL METAL AND INDUSTRIAL MINERAL MINING COMPANIES &OR MORE INFORMATION ON THE !SSOCIATION PLEASE VISIT WWW MINING BC CA -INISTRY OF %NERGY -INES AND 0ETROLEUM 2ESOURCES 4HE -INISTRY OF %NERGY -INES AND 0ETROLEUM 2ESOURCES IS THE CATALYST AND FACILITATOR FOR DEVELOPING SUSTAINABLE AND COMPETITIVE ENERGY AND MINERAL RESOURCE SECTORS FOR "RITISH #OLUMBIANS 4HE -INISTER IS RESPONSIBLE FOR STRATEGIES TO INCREASE JOBS INVESTMENT AND REVENUE RELATED TO THESE SECTORS WHILE ACTING AS AN ENVIRONMENTAL STEWARD PROTECTING THE LAND BASE WHICH IS AFFECTED -INISTRY OF %CONOMIC $EVELOPMENT 4HE -INISTRY OF %CONOMIC $EVELOPMENT IS THE PRIMARY PROVINCIAL AGENCY FOR CREATING A STRONG PROSPEROUS AND DIVERSE PROVINCIAL ECONOMY 4HE PURPOSE OF THE -INISTRY OF %CONOMIC $EVELOPMENT IS TO BUILD A STRONG PROVINCIAL ECONOMY THAT SUPPORTS JOB CREATION AND MAXIMIZES ECONOMIC OPPORTUNITIES FOR CITIZENS THROUGHOUT THE PROVINCE 4HE -INISTER IS ALSO RESPONSIBLE FOR STRENGTHENING OUR PROVINCE AS THE !SIA 0ACIlC GATEWAY AND THE /LYMPIC AND 0ARALYMPIC 7INTER 'AMES &OR MORE INFORMATION ON THE -INISTRIES PLEASE VISIT WWW GOV BC CA

CIM Awards

Recognizing excellence in industry District Distinguished Service Award 50 Year Club John T. Ryan Trophies CIM Fellowship Distinguished Lecturers Medal for Bravery Mel W. Bartley Award Syncrude Award for Excellence in Sustainable Development Metal Mining Society Award Barlow Memorial Medal Julian Boldy Memorial Medal Donald J. McParland Memorial Award Robert Elver Mineral Economics Award Coal Award J.C. Sproule Memorial Plaque A.O. Dufresne Award Past Presidentsâ&#x20AC;&#x2122; Memorial Medal Order of Sancta Barbara Members Award Selwyn G. Blaylock Medal Inco medal Distinguished Service Medal

Russell Hallbauer receiving the Selwyn G. Blaylock Medal from François Pelletier, CIM president

John S. Cook, winner of the Distinguished Service Medal

Terry A. Lyons receiving the INCO Medal from Lawrence Cochrane, director, mines exploration, CVRD Inco

visit www.cim.org for a full listing

CIM Conference and Exhibition 2007 Thanks to our sponsors PREMIER SPONSORS | COMMANDITAIRES NIVEAU PREMIER

DIAMOND SPONSORS | COMMANDITAIRES NIVEAU DIAMANT

GOLD SPONSORS | COMMANDITAIRES NIVEAU OR

SILVER SPONSORS | COMMANDITAIRES NIVEAU ARGENT

COPPER SPONSORS | COMMANDITAIRES NIVEAU CUIVRE

Canadian Royalites Inc.

FRIENDS SPONSORS | COMMANDITAIRES NIVEAU AMI

MINING IN SOCIETY SPONSORS | COMMANDITAIRES LES MINES DANS LA SOCIÉTÉ Partner/ partenaire Arthur Foley Canadian Mining and Metallurgical Foundation

Media partner/ partenaire média

MINFILL SPONSORS | COMMANDITAIRES MINEFILL

Metal Mining Society of CIM

August 2007

63

CIM Conference and Exhibition Congrès et Salon Commercial Montréal, Québec

2007

For more photos visit us on the web

www.cim.org Visitez le site Web pour les faits saillants

CIM Conference and Exhibition Congrès et Salon commercial de l’ICM Edmonton, Alberta, May 4–7 mai 2008

25

CIM Exhibition celebrates its 25th!

Join CIM in Edmonton next May to celebrate the 25th anniversary of the CIM Exhibition, Canada’s premier mining event. From its modest roots in hotels, the CIM Exhibition has grown to be a major showcase of industry expertise, tools, and advances. More networking is done with operators, management, and suppliers on the exhibition floor than anywhere else.

The CIM Exhibition floor is already fully booked for next May, as the top equipment and service providers are lining up to meet the leaders of mine operations.

Plans will be announced in the coming months for official celebrations of the CIM Exhibition anniversary. We invite all CIM members and friends to be a part of it!

Mining in Society starting to gear up The Mining in Society show will attract even more people in Edmonton—an exhibition open to the public that invites all interested to learn more about mining and the terrific career opportunities throughout the industry. Companies have the opportunity to showcase the best of the industry.

MIS is your opportunity to help make a difference. Please feel free to contact CIM to find out how you can participate in Edmonton.

Planification de

L’ICMe célèbre son 25 Salon commercial!

Joignez-vous à l’ICM en mai prochain à Edmonton pour célébrer le 25e anniversaire du Salon commercial de l’ICM, l’événement minier par excellence au Canada.

De ses débuts modestes dans des hôtels, le Salon commercial de l’ICM a grandi pour devenir l’endroit privilégié de montrer l’expertise, les outils et les avancées de l’industrie. Il se fait plus de réseautage entre les exploitants, les directeurs et les fournisseurs dans l’enceinte du salon que n’importe où ailleurs.

Les stands du Salon commercial sont déjà tous réservés pour mai prochain; les principaux fournisseurs d’équipements et de services se préparent à rencontrer les dirigeants des exploitations minières.

Les plans pour les célébrations officielles du 25e anniversaire du Salon commercial seront annoncés au cours des prochains mois. Nous invitons tous les membres et amis de l’ICM à être de la partie!

Les mines dans la sociéte À Edmonton, encore plus de gens seront attirés par l’événement Les mines dans la société—une exposition ouverte au public et conçue pour les personnes intéressées à connaître les mines et les possibilités fantastiques de carrières qu’offre cette industrie.

Les compagnies ont l’occasion de présenter les meilleurs aspects de l’industrie.

Les mines dans la société— votre chance de faire une différence. Contactez l’ICM pour savoir comment vous pouvez être de la partie à Edmonton.

history California here we come (Part 19)

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

“The Mexican-American War may well be a textbook example of the mining engineers’s adage that commerce follows the flag, but the flag follows the pick ...

High officials in Washington ... knew that California possessed gold, and much else besides, before declaring war on their neighbor. In 1843, nearly two thousand ounces of the metal were sent to the United States from mines discovered near the San Fernando Mission in southern California. Rumors kept leaking out that the sparsely populated territiories of northern Mexico possessed mineral riches comparable to those found in the southern half of the country.”

(Brechin, 1999)

66

Economic geology and mining entered a new and modern stage following the California Gold Rush in 1848-49. Although the placer gold discovery didn’t have any direct impact on the study of economic geology by itself, the rush occurred in the right place, and at the right time, to trigger unprecedented advances in scientific study, working conditions, entrepreneurial activity, and the communication of ideas. These coincident trends would prove to have major social, economic, and political impacts, initially in North America, Europe, and Australia, and subsequently worldwide.

At the time of the Gold Rush, the U.S. mining industry was in an embryonic stage, mainly exploiting small scattered deposits along the East Coast that only served local markets. Most metals and manufactured goods were still imported from England and Europe. The earliest mining developments, including copper at Simsbury, Connecticut; Hanover and New Brunswick, New Jersey; and Orange County, Vermont, between 1709 and 1820, were summarized by Rickard (1932). Iron ore was discovered at Roanoke, North Carolina, in 1585 and at Jamestown, Virginia, in 1608, and was mined from scattered small deposits of bog iron, but the first cast-iron wasn’t produced until 1727 from a deposit at Coventry, Pennsylvania. The great iron deposits near Lake Superior, first mentioned in 1840, weren’t exploited until large coal deposits were discovered later.

Lead, which was a vital economic metal at the time, was discovered in 1621 near Jamestown, Virginia, and small occurrences were mined briefly at Ancram, New York; Southhampton, Massachusetts; and in Maine, Connecticut, and Pennsylvania. The first lead discovery of any significance was the Upper Mississippi District, which was recognized by French Canadian fur traders as early as 1687, when they obtained lead for bullets from Native Americans living along the Mississippi River (then part of the French Territory of Louisiana). It was exposed in galena veins along the river in the vicinity of Dubuque, Iowa, and Galena, Illinois, at the edge of a large district that extends into southwestern Wisconsin. While it developed into an important source of the metal by the 1840s, it proved to be richer in zinc, a metal that was not then in great demand. Lead mining gradually shifted to the Southeast Missouri Lead District, where the Mine Lamotte had been opened by another French company in 1720. It is located about 150 kilometres downstream, just south of St. Louis. A much larger zinc-lead camp situated farther southwest, straddling the boundary between Missouri, Kansas, and Oklahoma (called the Tri-State District), was discovered about 1810 and first mined in 1848.

Because it is also zinc-rich (zinc/lead ratio of about 5), major development was delayed until the zinc market became stronger after 1870 (Snyder, 1968).

Zinc and lead mineralization is similar in these three large districts, as well as in several smaller ones nearby. It constitutes of an economically important and distinctive family of world-class deposits named the Mississippi-Valley type. These ores form stratiform to semi-conformable, massive, irregular sulphide bodies within particular facies of dolomitic limestone horizons. They are mostly confined to single stratigraphic units within each camp and range in age from lower Cambrian to Pennsylvanian.

Mineralization is usually composed of galena, sphalerite, and pyrite with minor amounts of silver or copper. Veins are commonly present but only account for a small proportion of the ore. Because the mineralization had no apparent relationship to plutonic or volcanic activity, it couldn’t be easily reconciled with the contemporary hydrothermal theories. It was the first new deposit type and mineralized geological setting discovered outside Europe and it became the subject of intensive scientific research over the next cenCIM Magazine n Vol. 2, Nº 5

economic geology tury. However, it would be a long time before the genesis of the metals could be explained.

Prior to the California Gold Rush, very little gold or silver had been discovered in the United States. Small amounts of placer gold were found in Appalachia, beginning with the Reed Mine in North Carolina in 1799. From 1804 to 1866, total placer production from this goldfield, extending across five states (Virginia, the Carolinas, Georgia, and Alabama), amounted to about $19 million.

Geological research in England in the early 1800s had evolved into a clubby study of stratigraphy and paleontology that treated mineral deposits with condescension (see Part 18, June/July 2007 issue, CIM Magazine). Aside from coal, no important new mining districts had been discovered in Western Europe or Great Britain for centuries, and the study of economic geology had become lethargic and uninspired. The California Gold Rush would soon lead to the discovery of new types of mineral deposits that would challenge old theories; would require advances in mining techniques, technology, and transportation; would stimulate worldwide migration, industrial activity, and increased demand for metals; would provide better prospecting and economic opportunities for miners than at any time since the 14th or 15th centuries in the Erzgebirge and Cornwall; would produce new institutions for advanced training of mining engineers and geologists; and would require the creation of new types of international communication, including technical newspapers, scientific journals, and professional organizations.

Strange as it may seem today, gold had been found in California many years before the Gold Rush (Rickard, 1932). The earliest published report in English was probably one written by Robert Jameson (1816) (yes, the same Edinburgh professor who made such a poor impression on Charles Darwin—see Part 17, May 2007 issue, CIM Magazine). He stated: “On the coast of California, there is a plain fourteen leagues in extent, covered with alluvial deposits, in which lumps of gold are dispersed.” Other reports, including one published in Mexico City in 1842 by a former deputy of the Mexican Congress, confirmed this gold discovery and others. Rickard speculated that these stories were ignored or suppressed because the U.S. government was already anticipating a change of national ownership of the region to mark the end of a war with Mexico.

That occurred with the signing of the Treaty of Guadalupe Hidalgo on February 2, 1848, under which the U.S. annexed most of northern Mexico, including California, New Mexico, Arizona, Nevada, Utah, and parts of Colorado and Wyoming for $15 million. The following year, California produced gold worth three times as much as the payment to Mexico.

The treaty was actually signed nine days after the event that is generally regarded as the start of the rush, the recognition by James W. Marshall, a carpenter building a water-powered sawmill, of a gold nugget encrusted with August 2007

quartz. By the time the first public notice appeared in a San Francisco newspaper on March 15, the stampede to the goldbelt by some of the 15,000 people then living in the state was already well underway because the gold belonged to whoever found it—tax-free. Within two years, over 300,000 people had arrived by the arduous and dangerous overland route from the eastern United States and Canada, or by the hazardous ocean voyage around Cape Horn, or across the Pacific Ocean. Known as Forty-Niners, they began frantically exploring a belt about 300 kilometres long as soon as they arrived. Naturally, most of them were unlucky and either drifted into more traditional lines of work, wandered off to prospect elsewhere, or returned home. It has been estimated that the total value of the gold recovered between 1850 and 1859 was approximately $560 million, an average of about $250 per miner.

Summaries of the California Gold Rush are available online from the television program American Experience (2006) and from Wikipedia (2007). Another valuable reference is Paul (1947).

Marshall’s discovery (or rediscovery) was made at Coloma, about 50 kilometres southeast of Sacramento (Sutter’s Fort), on the South Fork of the American River.

Because California was under U.S. military rule at the time after the signing of the treaty, and no mining code had been written, the prospectors and miners proceeded to draft their own mining laws, a remarkable example of self-government. Because many of those with mining experience were from Europe or the United Kingdom, or from mining districts in the United States or Mexico that had been developed by Europeans, the new rules were generally patterned after those in force in Germany, Cornwall, and Mexico.

George Hearst, who had grown up on a farm in the Southeast Missouri Lead District and developed a keen interest in mining and geology from the nearby French miners, recalled in his unpublished memoirs (Robinson, 1991) that miners from his state had a strong influence on the rules that were developed in the California placer gold camps.

The rules written by the California placer miners, and later adopted throughout the western states, were subsequently deemed to be so sensible that they formed the substance of the U.S. mining law enacted by the U.S. Congress in 1866. Unfortunately for the mining industry, the U.S. law also included the worst feature of the German code, known as the Apex Law, under which the owner of the outcrop of a vein was entitled to the ownership of that vein as far down the dip as it could be followed. This rule, which had also been adopted in Derbyshire (developed by miners from Germany), was only workable in vein districts that consisted of simple veins or were controlled by one owner. It wasn’t used in Cornwall, Latin America, Canada, or most other parts of the world where the boundaries of a claim are projected vertically downward. The Apex Law caused frustrating problems for miners, who could not always be cer67

economic geology ligible contributions to the scitain if a vein they intersected entific investigation of mineral underground might not be a deposits (Cathro, 2000). branch of another vein already The California placer miners claimed by someone else. As a tackled the immense opporturesult, American mine owners nity presented by the huge were continually involved in goldfield with typical American legal disputes, and a large entrepreneurial spirit and number of geologists, mining quickly developed a number of engineers, and lawyers built technical improvements to profitable careers as apex litihydraulic mining that were gators. The 12 leading mines in adopted around the world, the Comstock district, Nevada, including in the Cariboo and for example, were embroiled in Klondike goldfields in Canada. a total of 245 lawsuits for five Hydraulic mining for alluvial gold, Trinity County, CA. Eastman Collection B-921.

Courtesy of the University of California Davis.

By 1849, gold veins had been years costing about $10 mildiscovered within the placer lion, roughly one-fifth of the district and lode mining had commenced. The geology and entire output of the camp during that period. In one case mining history of the three major bedrock sources, the settled in the Helena, Montana, district court in 1893, Mother Lode vein system, Grass Valley – Nevada City camp, expert witness fees alone were more than $100,000, a large and Alleghany camp, as well as the introduction of dredgamount of money at the time (Spence, 1970). ing, will be described in subsequent chapters. CIM One of the main consequences of the discovery of gold in California was the invaluable financial assistance it gave to the North during the U.S. Civil War (1861-65). The REFERENCES value of the gold and silver shipped from the western states during the years 1861-64 (inclusive), $186 million, was American Experience (2006). The Gold Rush. Retrieved vitally important in enabling the United States to remain a April 12, 2007 from http://www.pbs.org/wgbh/amex/golsingle nation and thus had a profound effect on world hisdrush/index.html. tory. On the downside, the Gold Rush created severe racial, Brechin, G. (1999). Imperial San Francisco: Urban Power, ethnic, and environmental clashes.

Earthly Ruin. Berkeley: University of California Press.

Among those who joined the rush to California was an Cathro, R.J. (2000). The History of Mining and Metallurgy Englishman, Edward H. Hargraves, who arrived from his in Latin America, 1500 BC–1600 AD. In R.L. Sherlock and home in Sydney, Australia, in October 1849. Although he M.A.V. Logan (Eds.), VMS Deposits of Latin America (pp. did fairly well as a prospector, he hurried back to New 1-17). St. John’s: Geological Association of Canada, South Wales after becoming convinced that a similar geoMineral Deposits Division. logical setting existed there. Within a month of his arrival Jameson, R. (1816). A System of Mineralogy (3 Vols). on February 12, 1851, he discovered gold at Bathurst, on Edinburgh: Archibald Constable & Co. the Macquarrie River, 250 kilometres northwest of Sydney.

That triggered the great Australian Gold Rush, which Paul, R.W. (1947). California Gold: The Beginning of Mining marked the beginning of the mining industry of Australia in the Far West. Lincoln: University of Nebraska Press. and contributed to the growth in population from 430,000 Rickard, T.A. (1932). A History of American Mining. New in 1851 to 1.7 million in 1871.

York : McGraw-Hill.

The great California and Australia gold rushes were not Robinson, J. (1991). The Hearsts: An American Dynasty. the first that the world had experienced. That ‘honour’ New York: Avon Books. belongs to New Spain and the Spanish conquistadores, those Spence, C.C. (1970). Mining Engineers & the American footloose and ruthless mercenaries idled by the end of the West: The Lace-Boot Brigade, 1849-1933. New Haven: Yale Moorish wars, who conquered and plundered the Aztecs and University Press.

Mayans in Mexico and the Incas, centered in Peru, between 1519 and 1550. After they had stolen the possessions of the Snyder, F.G. (1968). Geology and Mineral Deposits, living, they proceeded to rob the graves of their ancestors. In Midcontinental United States. In John D. Ridge (Ed.), Ore addition to the creation of the Spanish Empire, the plunderDeposits of the United States, 1933-1967 (pp. 257-286). ing led to the the rediscovery of indigenous minesites and New York: AIME. eventually to the discovery of most of the great Mexican silWikipedia (2007). California Gold Rush. Retrieved April ver districts, between approximately 1546 and 1600. In spite 10, 2007 from http://en.wikipedia.org/wiki/California_ of the Spanish expertise in exploration and mining, and the Gold_Rush. availablility of Agricola’s books, the Spanish made only neg68

CIM Magazine n Vol. 2, Nº 5

mining The Evolution of Shaft Sinking Systems in the Western World and the Improvement in Sinking Rates Part 1—shaft sinking prior to 1600 (ancient times)

by Charles Graham, managing director, CAMIRO Mining Division, and Vern Evans, general manager, Mining Technologies International weapons.

From Egypt and Mesopotamia, the knowledge of metals spread across Europe. The copperbased cultures of the world were replaced by cultures using bronze by about 1500 BCE. This development led to significant improvement in the quality of weapons and tools. Iron was not successfully smelted until about 1400 BCE. Underground mining by the Egyptians was carried out over a wide area with two places in particular being well known—the Nubian Desert in northern Sudan and the Timna Valley in what is now Israel.

The Egyptian miners who worked both the mines in Nubia and in the Timna Valley used metal chisels and hoes, and excavated very regular, circular shafts with footholds in the walls for moving up and down. Some of these shafts were over 30 metres deep. Mining operations in the Timna Valley peaked in the 14th to 12th centuries BCE. Egyptian miners of the day apparently wore loincloths, perhaps headbands and, if a prisoner, ankle manacles. An oil lamp was used for lighting. Fire quenching was the rock breaking method of the day. After heating, the rock was doused with water causing it to shatter and become easier to extract with the copper bars and wedges. Once removed, the broken rock was placed in baskets, which were carried on workers’ backs up the shaft via ladders and footholds cut into the rock walls.

The Greek historian Agatharcides, writing about 200 BCE, gives a vivid description of mining under the Egyptians. He speaks of fire-setting, breaking the rock with chisels, miners who wore candles on their foreheads, and of “overseers who never cease with blows.”

The Romans followed the Greeks as leaders of the then known world. Rome explored all around the Mediterranean for mineral wealth to support its rising empire. Shaft sinking and deep vein mining were recorded in Roman literature. Inclined or vertical shafts were necessary to provide access, ventilation, and a means of removal of the minerals.

Shafts during Roman times were square, small (one to two

The sinking of mine shafts has been going on for thousands of years. The Egyptians mined gold as long as 4,000 years ago, and it is thought that the Persians, Greeks, and Romans learned their shaft sinking techniques from the Egyptians.

Shaft sinking in the Egyptian period and early Roman period was carried out by prisoners of war and criminals, and conditions were terrible. Towards the end of the Roman period, prisoners of war became less available and working conditions improved dramatically.

With the fall of the Roman Empire in the 5th century, shaft sinking and mining activity decreased substantially due to the instability in Western Europe. The social chaos and general economic instability persisted until the 11th century.

From 1100 – 1500 AD the status of the miner was much changed from Roman times.

The trade of mining, which included shaft sinking, became a respected profession.

Agricola, in his book De Re Metallica published in 1556, gives a number of references to shaft sinking. Advance rates at the end of this period were probably in the range of one to two metres per month.

The period from antiquity to 1600 AD covers a huge time period and many changes in civilization; however, from the early mining by the Egyptians, through Roman times, the Dark Ages, and then the Medieval period, very little changed as far as the techniques utilized for sinking shafts.

The earliest miners sought flint for tools and weapons.

Shallow shafts were commonly being sunk as deep as 300 feet or 90 metres in the chalk beds of northern France and southern England in the Neolithic period (8000 BCE to 2000 BCE). Their main excavation tools were wedges and picks made from deer antlers and shovels made from the shoulder blades of oxen.

During this early period, it is thought that the spoil from shaft sinking was hauled to surface in leather bags or wicker baskets, by one or two men. Fire setting was practiced for assistance in fracturing the rock and making it easier to remove with the primitive tools that were available at the time. Ventilation methods were also primitive, often limited to waving a canvas at the mouth of the shaft.

It is important to realize that the valleys of the Tigris, Euphrates, and Nile were home to the first metal-using cultures. Copper and gold were the first metals gathered in any quantity, with copper being particularly important. A civilization using considerable amounts of copper was established in Mesopotamia by about 3500 BCE and in Egypt by about 3000 BCE. Copper was used to make tools and August 2007

69

mining timbers to prevent collapse. Miners were entitled to sleeping and bathing accommodations, food, and specific hours of work.

By the standards of the time, some Roman shafts were quite deep. For example, the shafts at El Centenillo in Spain went down 650 feet.

The fall of the Roman Empire in the West during the latter part of the 5th century was followed by widespread political and economic chaos that persisted in Europe for more than four centuries (The Dark Ages). The social chaos, incessant warfare, plagues, and general economic instability from the 5th to the 11th century resulted in a marked reduction in mining and therefore in shaft sinking.

With growing stability in the 12th to the 16th century, shaft sinking and mining activity increased. In central Europe the Avars, Czechs, and Saxons mined gold in Depiction of early mining excavation Bohemia, Transylvania, and the Carpathians. This particumetres), and braced with wood to prevent collapse. A shaft lar mining revival was led mainly by the Saxons and other could be as deep as 200 metres.

Germanic peoples.

Shaft sinking techniques under the Romans were not In 1168, silver was discovered near the town of Freiberg very different from those the Egyptians employed earlier. in Saxony. A silver rush spread across Europe in the late Generally, iron tools were used to enlarge the fractures in 12th and early 13th centuries, with strikes in Bohemia, the rock and assist in breaking it away from the face. SingleMoravia, Hungary, the Alps, and Sardinia. To develop these and double-headed hammers were used in combination mines, Saxon shaft sinkers were normally brought in. One with pointed bars and wedges. Besides iron tools, the of the greatest silver mines of all time was discovered at Romans used fire to fracture the rock for removal.

Joachimsthal in Bohemia in 1516. It was in this town that During the Egyptian and Agricola resided and his book on early Roman Empire, shaft sinkmining and shaft sinking is based ing and mining in general was on techniques employed in this not a job people took voluntararea. ily. Therefore, the shaft sinkers We have a fairly comprehenand miners were generally sive picture of the most advanced slaves, criminals, and prisoners mining and shaft sinking techof war. In the early days of the niques of the 1500s from the book Roman Empire, conquests of De Re Metallica written by new lands produced many prisGeorgius Agricola. oners of war who were available Agricola describes the sinking for work in shaft sinking and process: “Now when a miner dismining in general. Because covers a ‘ vena profunda’ he begins slaves were plentiful, conditions sinking a shaft and above it sets up in the mines were terrible. Later a windlass, and builds a shed over in the Roman Empire, when new the shaft to prevent the rain from slaves were less easy to obtain, falling in, lest the men who turn the they became more valuable. windlass be numbed by the cold or Beginning with the reign of troubled by the rain.

Hadrian (138 AD), the Romans Now a shaft is dug, usually two began to recognize a degree of fathoms long, one third of a fathom individual ownership of mines wide and thirteen fathoms deep; ( 1 and permitted the exploitation fathom = 6 feet ) but for the purof some orebodies by free men. pose of connecting with a tunnel Roman labour laws were therewhich has already been driven in a fore passed that mandated conhill, a shaft may be sunk to a depth ditions for the workers in the of only eight fathoms, or at times mines. Shafts and tunnels had to Detailed illustration from Agricola’s De Re Metallica: A. wall plates; fourteen more or less. be adequately supported with B. dividers; C. long end posts; and D. end plates 70

CIM Magazine n Vol. 2, Nº 5

mining Table 1. Shaft sinking system elements System Drilling Rock breaking Mucking Permanent lining Protection from ground falls Hoisting Hoist rope Ventilation Water handling Water control Average advance rate

To 1600 No Fire quenching Hand Wood None Ladders and man-powered windlasses — Natural Buckets None 1 to 2 metres per month

There are two kinds of shafts, one of the depth already described, of which kind there are usually several in one mine; especially if the mine is entered by a tunnel and is metal bearing. For when the first tunnel is connected with the first shaft, two new shafts are sunk; or if the inrush of water hinders sinking, sometimes three are sunk; so that one may take the place of a sump and the work of sinking which has been begun may be continued by means of the remaining two shafts… The second kind of shaft is very deep, sometimes as much as sixty, eighty or even one hundred fathoms.

Agricola also gives quite a detailed description of the types of linings used in the shafts sunk during that period.

“Now shafts, of whatever kind they may be, are supported in various ways. If the vein is hard, and also the hanging and footwall rock, the shaft does not require much timbering, but timbers are placed at intervals, one end of which is fixed in a hitch cut into the rock of the hanging wall and the other fixed into a hitch cut in the footwall. To these timbers are fixed small timbers along the footwall, to which are fastened the lagging and ladders. The lagging is also fixed to the timbers, both to those which screen off the shaft on the ends from the vein, and to those which screen off the rest of the shaft from that part in which the ladders are placed. The lagging on the sides of shaft confine the vein, so as to prevent fragments which have been loosened by water from dropping into the shaft and terrifying, or injuring, or knocking off the miners and other workmen who are going up and down the ladders from one part of the mine to another.

If the vein is soft and the rock of the hanging and foot walls is weak, a closer structure is necessary; for this purpose timbers are joined together in rectangular shapes and placed one after the other without a break… The great weight of these joined timbers is sustained by stout beams placed at intervals, which are deeply set into hitches in the footwall and hanging wall, but are inclined.

Further, in whatever way the shaft may be timbered, dividers are placed along the wall plates, and to these is fixed lagging, and this marks off and separates the ladder – way from the remaining part of the shaft.

One of the most interesting developments in mining and shaft sinking was the growth in the miner’s status August 2007

Ventilation methods: A. smaller part of shaft; B. square conduit; C. bellows; D. larger part of shaft (Agricola, 1556)

from the convict or slave in the Egyptian and early Roman times to a free man in the Middle Ages, often with substantial privileges. Miners in places like Frieburg, Goslar, and Joachimstal were exempt from military service and taxation. English tin miners had the right to prospect anywhere except in church yards, or on highways, orchards, or gardens. Such privileges and freedoms are a marked contrast to those of the miners under Egyptian or early Roman rule.

As the Egyptians and Romans had done before them, the Czechs and the Saxons used fire quenching as a method of breaking the rock.

To summarize, the shaft sinking system utilized at the end of the 15th century would have been comprised of the elements found in the table. We are able to estimate sinking rates during this period at 1.5 metres per month. CIM

REFERENCES Agricola, G. (1556). De Re Metallica. New York: Dover Publications Inc. Donaldson, F. (1912). Practical Shaft Sinking. New York: McGraw–Hill Book Company.

Habashi, F. (1994). Georgius Agricola and his time. CIM Bulletin, 983, 82–88.

Hartman, H.L. (1992). SME Mining Engineering Handbook (2nd edition). Littleton: Society for Mining, Metallurgy, and Exploration Inc. Temple, J. (1972). Mining—An International History. New York: Praeger Publishers.

71

metallurgy History of Metal Casting—Part 1

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

I

believe that my work would surely be almost a seed without fruit and that I would fail in that cause which disposed me to satisfy your request to write and form this work if, while labouring on it, 1 did not tell you of the art of casting, since it is a necessary means to very many ends.

It is especially necessary since this art and work is not well known, so that no one can practice it who is not, so to speak, born to it, or who does not have much talent and good judgment.

For this reason and also because it is closely related to sculpture, whose arms are the support of its life, it is very highly esteemed… it is a profitable and skilful art and in large part delightful.

[BIRINGUCCIO, IN PIROTECHNIA, 1540]

Introduction The history of metal casting is the history of metallurgy. Metals produced in a furnace are melted and cast to form useful objects, whether a piece of jewelry, an agricultural tool, or a weapon. Objects made of gold, silver, copper, bronze, brass, tin, lead, and iron conserved in museums are a testimony to the cleverness of the ancient metal workers. The history of casting is also the history of art since most castings are made by artists. Ancient Egyptian wall paintings give an excellent illustration of the melting and casting of gold and copper. Most of the important Egyptian castings were used for making jewelry and masks. Copper was traded in the form of large cast ingots.

The Colossus of Rhodes is an immense bronze statue of Apollo the Sun God and protecting deity of Rhodes, constructed during the period from 292 to 280 BC, which stood at the entrance to Rhodes Harbour. It fell to pieces in 224 BC when an earthquake struck the island.

It remained there for centuries until the Arabs gained possession of the island in 672 AD and sold what remained as scrap metal. The description of the statue is known only through writings of the Roman historian Pliny who visited the island in the first century AD. The statue stood about 32 metres high and weighed 300 tonnes. The Etruscans and Romans also cast large bronze statutes.

In ancient China, massive bronze vessels were cast during the Han Dynasty (206 BC to 220 AD). The brilliant age of Japanese bronze founding dates back to the introduction of Buddhism, in the sixth century AD in Nara, the ancient capital of Japan. Among the Japanese creations of this period was the colossal 380-tonne seated Buddha of Todaiji, gilded with 440 kilograms of gold. In India, Parvati, the 72

Ancient Egyptian wall painting illustrating the casting of copper

Ancient copper ingot

Large statue of the Roman emperor Marcus Aurelius in Rome

consort of Shiva, is the nourishing and life-giving bronze statue dating back to about 950 AD. CIM Magazine n Vol. 2, Nº 5

metallurgy

It was the church

The same technique used for casting large that provided bells in ancient China was later used in Europe to cast cannons when gun powder the greatest outlet for their skills in bell founding became known around 1250 AD. The fall of to supply bells for the cathedrals and abbeys.

Constantinople in 1453 was a turning point in the history of the world; city walls were bombarded by stone balls thrown by huge cannons conColumbian Mexico, and the Benin civilization in Africa structed by the Turks. During medieval times in Europe, the used this method of casting to produce their artwork in foundry men and smiths produced weapons and armour, copper, bronze, and gold. household utensils and tools, swords, and other implements demanded by the feudal lords. However, it was the In this method, the smith church that provided the greatest outlet for their skills in creates a pattern for the castbell founding to supply bells for the cathedrals and abbeys. ing by covering one of the Because of its size and importance, bell founding raised the cores with beeswax and carecasting of metal to the class of a practical art. At the time of fully modelling it into the war, bells were often melted down and made into weapons. desired shape. When the wax form is finished to the artist’s Some medieval technical manuals, such as De Diversibus satisfaction, it is covered in a Artibus (On the Different Arts), the earliest known foundry thick coating of clay. The text, written around 1120 by the German Benedictine monk cores are made to be self supTheophilus Presbyter (circa 1070-1125), give detailed porting. This mould is accounts of the tools and equipment used for the goldallowed to air dry. When a smiths’ work. The invention of movable and cast lead type batch of moulds has been creBronze statue of Parvati, the consort for the printing press in 1450 was an important application ated and is ready for casting, it of Shiva, dating from about 950 AD— of casting. is placed in a fire and heated an example of Indian artistic casting so that the wax melts. The The casting of bells and wax is collected through a runner and can be reused after cannons was described at any foreign matter is removed. The clay moulds are further length by Vannoccio heated to a point where they are sufficiently hard. This perBiringuccio (1480-1539), mits the pouring of the molten metal without causing the the head of the Papal shell to burst. The moulds are then placed upright on the Foundry in Rome, in his floor and molten brass is poured into the open mould. Soon Pirotechnia, published in after casting, the molds are broken open, the shell knocked 1540, one year after his off, and the final object is cleaned, filed, and polished. death. While at the Paris Coating the wax pattern with layers of clay became known Arsenal, Pierre Surirey de as investment.

Saint Remy (1645-1716) wrote a two-volume book Shortly after the Dark Ages in Europe, the industrious The colossal 380-tonne seated Buddha in in 1697 entitled Memoires sculptor and goldsmith Benvenuto Cellini (1500–1571) Todaiji, Japan, gilded with 440 kilograms d’artillerie, which conbegan to make use of the lost wax of gold tained valuable informamethod of casting, which he learned tion on casting cannons. The close ties between casting and from the writings of the monk pottery indicate that the two arts must have developed simulTheophilus. In his autobiography, taneously. It was the potter’s art—the selection and comCellini described in detail the casting of his Perseus and the Head of Medusa. pounding of suitable clays, their moulding, and proper firThis three and a half ton statue was coming—that gave the foundry the crucible for handling molten pleted in 1554 and was unveiled at the metals. Bells were generally decorated to give them an addiLoggia dei Lanzi in Florence, Italy, where tional message or to keep danger away, while cannons were it stands to this day. The process was usually decorated with the coat of arms of the owner. developed to a high degree of excellence, The Lost Wax Process as is attested to by the many finely detailed statues, jewelry, and artefacts The lost wax process dates back thousands of years. The from antiquity. This technique was redisartists and sculptors of ancient Egypt and Mesopotamia, the covered in 1897 by the dental profession Cellini’s Perseus and Han Dynasty in China, the Aztec goldsmiths of prefor producing crowns and inlays. CIM the Head of Medusa August 2007

73

YOUR

GUIDE

TO INDUSTRY KNOWLEDGE Peer reviewed by leaders in their fields CIM Bulletin Abstracts 75

Development of the MINEFILL symposia E.G. Thomas

76

Backfill pipeline distribution systems窶電esign methodology review R. Cooke

77

In situ measurements for geomechanical design of cemented paste backfill systems M.W. Grabinsky and W.F. Bawden

78

Paste backfill bulkhead failures and pressure monitoring at Cayeli Mine M. Yumlu and M. Guresci

79

Engineering design of backfill systems in undercut mining A.P.E. Dirige and E. De Souza

80

Factors that affect cemented rockfill quality in Nevada mines D.M.R. Stone

81

Advancing paste fill bulkhead design using numerical modelling D.P. Sainsbury and M.B. Revell

82

The challenge of cyanide: Opportunities and challenges for backfill operations presented by the International Cyanide Management Code C.L. Reichardt

83

Using effective stress theory to characterize the behaviour of backfill A.B. Fourie, M. Helinski, and M. Fahey

84

A study of physical and mechanical behaviour of gelfill F. Hassani, S.M. Razavi, and I. Isagon

85

An effective stress approach to modelling mine backfilling M. Helinski, M. Fahey, and A.B. Fourie

86

Application of minefill at Barrick Gold R. Evans, J. Ran, and R. Allan

87

Exploration and Mining Geology Journal Volume 15, Numbers 3 and 4

88

Canadian Metallurgical Quarterly Volume 46, Number 2

Complete CIM Bulletin papers are posted in the online Technical Paper Library 74

www.cim.org CIM Magazine n Vol. 2, Nﾂｰ 5

Development of the MINEFILL series of international symposia I N T R O D U C T I O N In the late 1950s, I worked as a student at the EZ Zinc Works in Hobart, Tasmania. On a weekend excursion to the west coast of Tasmania, I saw serious mining pollution for the first time, in the King River in Queenstown, in the form of acid mine drainage. I concluded instantly that this was simply not acceptable.

In early January 1963, I decided on my PhD topic—disposal of mining waste underground. The choice has driven every aspect of my life ever since. I began working on mine fill technology.

I moved from Brisbane to Mount Isa in 1967 and began to apply the fill experience gained during my PhD studies to the mine operation, as well as continuing further research into deslimed mill tailing fill, cemented and uncemented, and into cemented rock fill. At the time, there was almost no readily accessed literature on mine fill and I began to consider how such a literature base could be established. I continued writing and publishing myself but quickly realized that this was not the way to achieve my vision.

During a 1971 meeting of the Committee of the NW Queensland Branch of AusIMM, I strongly suggested that the topic for a conference in 1973 to mark the Jubilee of Mount Isa Mines should be mine filling. It was only the following year, after I had left Mount Isa, that I learned that the topic for the Jubilee Symposium was indeed to be mine filling.

The symposium proved successful—25 papers were presented and published by AusIMM as the Proceedings of the Jubilee Symposium on Mine Filling, the first of the symposium series that followed and the first in what I saw as a readily available, refereed collection of works on mine fill.

The second MINEFILL symposium took place in Sudbury in 1978 and CIM published the 20 papers presented in the volume Mining with Backfill.

The next symposium was hosted by Lulea University of Technology in 1983. A total of 46 papers were presented and published by Balkema as Mining with Backfill. This represented a significant step forward for the symposium series and quality published information on fill.

The 1989 symposium was held in Montreal with 49 papers presented and published as Innovations in Mining Backfill Technology, the fourth volume in the series I envisioned in 1972.

At the close of the Montreal symposium, I chaired a meeting of (from memory) 21 fill professionals from 21 different countries, seeking a host for 1993. Brisbane and Johannesburg both mounted impressive cases, the consensus outcome being Johannesburg as hosts in 1993 and Brisbane in 1998. A total of 51 papers were presented and published in 1993. With a wellestablished format now in place, the Brisbane conference produced 57 papers.

At the close of the Brisbane symposium, it was decided to hold symposia every three rather than every five years, for two main reasons—the rate of availability of technical papers was increasing and international travel becoming increasingly feasible, and indeed increasingly inescapable.

World events beyond the control of mine fill people disrupted this schedule—the fallout from September 11. The 2001 symposium proceeded in Seattle, Washington, with a total attendance of two delegates—David Stone, chair of the organizing committee, and Dick Cowling from Cairns in Queensland, both of whom were geographically located at the time to allow their attendance. Yet, 39 papers were still published by SME as MINEFILL 2001.

The ninth symposium in the series was held in Beijing in 2004, the first outside a predominantly English-speaking country. The organizers ensured that the standards set by previous symposia were maintained. Fifty-four papers were presented and published as the Proceedings of the 8th International Symposium on Mining with Backfill, by the Nonferrous Metals Society of China in both English and Mandarin, in two separate volumes.

To conclude, without yet including MINEFILL 2007, we now have eight volumes of technical papers on all aspects of mine fill practice, with a total of 341 papers that include a total of 2,545 references. The papers themselves contain an appreciable amount of information in a readily available form. Add to this the content of the references, and the usefulness of the symposium series becomes obvious. The availability of the material from MINEFILL 2007 will further enhance the overall picture.

What happens to this series in the future cannot be confidently predicted. I see the possibility of a splintering effect as the disciplines involved become more and more specialized, though it would be nice to see a JUBILEE MINEFILL 2023.

The following papers were presented at Minefill 2007— the 9th International Symposium on Mining with Backfill.

By E.G. (Ed) Thomas, FAusIMM August 2007

75

executive summaries

M I N E F I L L

Backfill pipeline distribution systems–design methodology review A recent survey of Canadian backfill operations reveals that the majority of underground backfill system failures relate to the distribution system. Considering the maturity of backfill technology, this high incidence of failures attributed to distribution systems is unacceptable. The causes of the distribution system-related failures are in many cases related to “designed in” flaws in the system, i.e. there may be fundamental design problems with the system that cannot be resolved through changes to operational practice. These flaws can arise because of two factors: • An incomplete understanding of the backfill flow behaviour properties.

• Limited knowledge of the hydraulic behaviour of pipeline systems.

This paper presents a review of the design process for backfill distribution systems focusing on understanding backfill flow properties and the hydraulic behaviour of distribution pipeline systems.

Energy dissipater choke station installation

Hydraulic Design of Backfill Distribution Systems

•

Backfill Flow Behaviour • •

•

There are two predominant backfill types: Hydraulic or slurry backfill comprises deslimed metallurgical tailings, imported sand, or a combination of the two materials. Hydraulic backfill has high permeability, and drains and consolidates rapidly on placement. In some cases, a binder is added to increase the backfill strength. Due to the settling nature of the backfill, it is transported in turbulent flow to avoid settlement during transport.

Paste backfill (paste fill) is produced using total metallurgical tailings plus binder. Sand or aggregate may be added to improve the backfill strength. Paste fill produces little or no bleed water after placement. Most pastes can be characterized by the Bingham Plastic rheological model and are transported in laminar flow with significantly higher friction losses than hydraulic backfill.

Pumps are often required for paste fill systems to ensure stable operation.

• •

• • R. Cooke, Paterson & Cooke Engineering, Capetown, South Africa 76

The basic process of designing a backfill system entails: Establish the design duty specification for the system, taking into account any planned variations in production during the envisaged system life.

Determine the pipe routing. Although largely dictated by the mine layout, there may be scope to optimize the routing: • Ideally the slope of the piping should reduce along the distribution system, i.e. vertical down sections should be at the start of the distribution system, with horizontal piping towards the end of the system.

• It is preferable to have a series of vertical piping sections instead of a single vertical section. This reduces pipeline operating pressures.

• Pipes may be installed in shafts to reduce installation costs, although this is generally not preferred due to safety considerations.

• Inter-level boreholes can be used to reduce the total pipeline length and to optimize the pipeline profile.

Establish the backfill flow behaviour characteristics.

Perform a hydraulic analysis of the system considering all envisaged operating conditions. The output of the analysis is the specification of the piping and other hydraulic components such as pumps, chokes, and valves. The figure illustrates an energy dissipater used in a backfill choke station.

Undertake the mechanical design of the piping and piping support system.

Specify operating, monitoring, and maintenance procedures for the backfill distribution system.

CIM Magazine n Vol. 2, N° 5

executive summaries In situ measurements for geomechanical design of cemented paste backfill systems M I N E F I L L

Cemented paste backfill (CPB) has been an important contributing factor to enhanced economic and environmental sustainability of many bulk mining operations, primarily because of its rapid rate of delivery (as compared to other forms of backfilling) and the fact that tailings are recycled as backfill, thereby reducing the volumes of both solids and water that would otherwise be directed to a managed tailings facility. However, the physical properties of CPB are significantly different from other forms of backfill, notably hydraulic fill and cemented rock fill, and there remains significant opportunity to optimize the geomechanical design of paste backfill systems for underground mining. Particular attention must be paid to the paste’s ability to retain water through matric suction, and this phenomenon is typically enhanced by the hydration of binder within cemented pastes. These suctions can significantly enhance the paste’s strength and liquefaction resistance, which has important implications for the design of fill barricades, the use of fill plugs to protect barricades, the rate of fill over top of the plug, and the time to resumed production blasting in proximity to a recently filled stope.

To obtain better information regarding the behaviour of CPB in situ, a new instrument cluster is proposed. The cluster uses multiple total stress cells with a tiltmeter to verify the ultimate orientations of these cells, piezometers for total pressure and heat dissipation sensors for matric suction, a thermistor for temperature measurement, an electromagnetic probe for determination of conductivity and dielectric permittivity (which give information about the stage of hydration and the bulk properties of the paste), and dynamic transducers for pore pressure measurement and for acceleration. All of the instruments are attached in a cage (see figure) and the paste can readily flow through this cage and around each of the transducers. The small size of the cluster (less than 1 m3) allows information to be collected within a relatively homogeneous portion of the fill mass.

Several such clusters must be used throughout the fill mass in order to capture variations in paste properties and paste response over the entire fill domain. Additional instrumentation is also desirable in proximity to the fill barricade, and the displacements of the barricade’s free face may also be monitored. For seismic profiling work, accelerometers must be buried in the host rock as well, so the velocities of seismic waves (whether generated from test shots or from production blasts) can be determined in the rock as well as within the fill mass. Finally, diamond coring of cured paste samples is desirable in order to provide information about the bulk properties and strength of the as-placed fill mass, thereby “ground August 2007

Prototype of multi-transducer instrumentation cluster used for backfill monitoring

truthing” the fill’s properties for comparison with other properties determined using non-destructive methods.

Installation of such clusters of instrumentation is generally non-trivial in an active mining environment. The paper describes an installation strategy employed in a stope mined using the Alimak mining method, where the vertical distance between the undercut and overcut levels is approximately 150 m and the stope itself is approximately 18 m wide and 3 m to 5 m thick. A system of guide wires, king wire, tuggers, and electric winches was successfully used to deploy ten instrument clusters over the height of the Alimak stope. The final as-installed instrumentation array has provided one of the most comprehensive datasets available regarding the in situ performance of cemented paste fill in a large production stope.

M.W. Grabinsky and W.F. Bawden, Lassonde Institute for Engineering Geoscience, University of Toronto, Toronto, Ontario

77

executive summaries

M I N E F I L L

Paste backfill bulkhead failures and pressure monitoring at Cayeli Mine Paste backfill is an integral part of the mining method at the Cayeli Mine. Safe and efficient placement of paste fill requires a detailed understanding of paste fill characteristics from the production stage to the final fill exposures. Mobilization of uncured paste fill as a result of a bulkhead failure is a potential safety hazard and can lead to significant consequences, including endangering the safety of personnel, property damage, and production losses and delays.

Since inception of paste filling operations in 1999, there have been three major bulkhead failure incidents at the Cayeli Mine. A detailed description of each of these incidents and their consequences has been provided in order to raise general awareness among backfill practitioners and mine operators about the potential risks associated with bulkhead failures.

Bulkhead failure investigations revealed that in all cases failure occurred in small and blind stopes during the last stage of filling while tight filling. Furthermore, stopes were overfilled by about 10% and there were problems with air relief holes.

These bulkhead failures were attributed to one, or a combination of, the following factors: fast filling rate; continuous filling or inadequate plug fill cure time; overfilling during the tight filling stage due to the absence, blockage, or inadequate use of air breather holes; lack of adequate fill management and fill monitoring controls; and inadequate bulkhead design.

As a direct outcome of bulkhead failures, the Cayeli Mine moved away from using any waste rock for constructing bulkheads. All bulkheads are now constructed from reinforced shotcrete. Cayeli gained invaluable information about the development and magnitude of pressures inside and behind the bulkheads through a detailed field pressure-monitoring program.

The Cayeli Mine instrumentation and monitoring program indicated that the loading conditions in the paste fill and the resultant lateral loads on the bulkheads are complex and are dependent on many factors such as tailings properties (type, particle sizing, and specific gravity), paste fill recipe (slump, solids content, and cement type and content), filling rate, filling placement sequence, and stope size and geometry.

M. Yumlu, AMC Consultants Pty Ltd., Australia, and M. Guresci, Inmet Mining Corporation (Cayeli Bakir Isletmeleri A.S.), Turkey 78

Based on the Cayeli Mine pressure monitoring test results, the following general conclusions can be drawn: • Despite the same fill recipes and fill rise rates used, bulkhead pressures were significantly different. The difference is attributed to different stope size and filling sequences.

• Continuous filling with no cure time leads to higher bulkhead pressures. This is due to the higher pore water pressure developed and slower pore water pressure dissipation with ongoing filling.

• At the same fill rise rate, staged filling results in lower bulkhead pressure. This is attributed to the higher fill strength in the plug fill. The rest time enables pore water pressure dissipation and longer fill cure times. The weight of ongoing filling is partially distributed to the stope sides as a result of arching.

• Temperature changes during cement hydration can have an impact on the pressure readings. Test results indicate that an increase in temperature increases pressure, and a decrease in temperature decreases pressures.

Prior to the bulkhead failures, Cayeli Mine shotcrete bulkheads were only designed for a maximum working pressure of 32 kPa. Fill placement was continuous and was managed by restricting the rate of fill rise to a maximum of 0.43 m per hour.

The pressure-monitoring results, however, indicated that bulkheads could in fact be subjected to up to 100 kPa, even at the restricted fill rise rate of only 0.35 m per hour.

Based on the evaluation of pressure monitoring test results and findings from the bulkhead failures described in this paper, the Cayeli Mine has made the following design and operational changes in their paste fill system: (1) revised shotcrete bulkhead design; (2) new fill recipe; (3) revised fill placement procedures; and (4) new fill risk management and monitoring procedures. Site-specific new operating practices are now in place that allow safe and efficient fill placement.

To date, the Cayeli Mine has filled more than 50 blind stopes without any failure incidents. The revised bulkhead design and fill placement sequence has therefore been shown to be successful.

Going forward, the Cayeli Mine is considering instrumenting every single bulkhead with a pressure cell, transferring the pressure data to the paste plant and filling until a threshold bulkhead pressure is reached. More pressure tests are planned for this purpose and they are ongoing. The mine is also looking to automatically monitor the airflow in blind stope breather holes as an indicator of potential over-pressuring.

CIM Magazine n Vol. 2, N° 5

executive summaries Engineering design of backfill systems in undercut mining

The traditional stability design of cemented sill pillars is based on experience and on property data from standard static physical model tests such as uniaxial and triaxial compression. Laboratory test data is normally used to describe or predict the behaviour of sill pillars in empirical, analytical, or numerical models. This approach offers inherent limitations and generally results in conservative designs.

To overcome the limitations of traditional designs, an integrated engineering sillmat design methodology has been developed. In the methodology, centrifuge physical modelling is combined with analytical and numerical modelling analysis to describe and predict the behaviour and potential failure modes of sill pillars. Centrifuge modelling is the primary tool used not only to dynamically test sill pillar performance on a time-dependent basis, but also to accommodate the threedimensional aspects of the problem. Analytical modelling was carried out using limiting equilibrium analysis. Numerical modelling was carried out using FLAC (Fast Lagrangian Analysis of Continua), a powerful two-dimensional elastic plasticfinite difference code.

Application of the design approach is demonstrated from a design study conducted for an underground gold mine, aimed at minimizing backfill binder content and at producing cost-efficient paste fill recipes for sillmat construction. The study also aimed at establishing the effect of excavation geometry, excavation wall roughness, wall closure, and varying backfill heights on fill stability behaviour when exposed or undercut during mining. Models were developed to conform with two excavation conditions applied in the mine: excavations 3 m wide, 15 m long, and 30 m high, and excavations 75 m wide, 15 m long, and 40 m high. In all cases, the excavation walls were inclined at 75° and smooth, mediumrough, and rough rock wall conditions were established for simulating typical excavation boundary modes encountered in

the mine. Wall closure strains of 0.9% and 2% were applied to the model. Backfill was prepared at 80% pulp density using unclassified tailings mixed with Type 10 Normal Portland cement (NPC) and Type C fly ash (FA). All sill pillar recipes were prepared at 7% binder content; backfill recipes were prepared at 2.5% binder content. The backfill was cured for 28 days before testing in the centrifuge. The results of all three modelling techniques suggested that the 2.5% binder content backfill supported by a 7% binder sill pillar seems to be appropriate for the simulated mining conditions. Different modes of sill failure were exhibited by the physical and numerical modelling techniques. Centrifuge modelling indicated that approximately one-half to three-quarters of the fill column would plunge into the undercut (slip failure) when subjected to failure stresses. In contrast, numerical modelling indicated a rotational failure about the footwall contact.

Incorporation of the recommended backfill design recipes was projected to result in substantial annual cost savings to the mine operation.

M I N E F I L L

In order to maximize the recovery of ore and to save on costs in undercut mining, backfill of low cement content is utilized to fill the mined-out excavations. This backfill mass is supported by a sillmat structure cast from cemented backfill of high strength. The stability design of sillmats must be carefully studied to provide very effective, safe, and economic mining operations. Improper design would result in failure of the fill mass and extensive economic losses associated with loss of production and ore dilution, as well as in safety problems.

Model studies have indicated that excavation width, wall roughness, and wall closure play important roles in excavation and sill pillar stability. Model studies have also indicated that sill pillar stability develops as a function of frictional effects and of cohesion between particles and fill-rock wall contacts. Stronger arching seems to develop in fills placed in narrow excavations with rough wall conditions than in wider excavations. Undoubtedly, wall closure represents a significant factor in increasing stability; higher closure stresses are required in wider excavations in order to enable stable arching to develop across the fill.

The integrated engineering sillmat design methodology provides the engineer with a powerful tool for scientifically designing safe and economic backfill systems.

A.P.E. Dirige, Montana Tech of the University of Montana, Butte, Montana, USA, and E. De Souza, Queenâ&#x20AC;&#x2122;s University, Kingston, Ontario

August 2007

79

executive summaries

M I N E F I L L

Factors that affect cemented rockfill quality in Nevada mines Underground mining in the gold industry is gaining popularity in Nevada, and with it the use of cemented rockfill is becoming mainstream. Even with todayâ&#x20AC;&#x2122;s high metal prices, however, mining companies are very sensitive to the margins they realize, and are constantly looking for ways to reduce costs or improve efficiencies. Given that backfill is one of the largest cost centres in underground mining, mines are constantly under pressure to reduce backfill costs.

The main mix ingredients in cemented rockfill are the aggregate, binder, and mix water. Aggregate grading generally has the largest impact on backfill strength because it controls the density of the mix. However, backfill quality can also be impacted by the strength and physical durability of the aggregate particles, the water to binder ratio in the mix, and the moisture content and clay content of the aggregate. Typical specifications for a number of Nevada mines are presented in the table.

Most mines rely on routine sampling of the cemented rockfill product at the batch plant to monitor the quality of the fill being placed. The quality control (QC) samples are cured and tested in accordance with ASTM C-31 in 15 cm diameter cylinders. However, in order for this practice to serve a purpose, the results must be reviewed periodically. Typically, this is done by plotting the results in a scatter diagram in Excel and comparing the results against a benchmark standard. However, this practice can easily hide significant downward trends in the data.

The preferred method of plotting the results is in a cumulative sums (CUSUMS) plot. Examples are provided in the paper to show how a CUSUMS plot can be used to highlight significant events in the QC data stream.

Table 1. Typical mix specifications for Nevada mines Mine Deep Post Carlin East Deep Star Rodeo Meikle Bullfrog Turquoise Ridge *

Aggregate Top Size 3.5 3.0 3.0 3.5 2.0 3.0

Binder C/F(*) 70/30 70/30 75/25 87/13 60/40 70/30

% Binder 6.75 6.1 6.1 8.0 6.0 7.2

UCS (**) 800 700 700 700 800 650

3.0

70/30

7.5

700

coarse/fines split

**uniaxial

compressive strength in psi

based on the density or sample weights. Given that the cylinders can be weighed on the day they are cast, it is possible to identify problems without having to wait 28 days for the QC samples to cure.

Other mix quality factors include the mix water quality, binder quality, and training of backfill plant operators. Operators need to understand that improperly prepared QC cylinders are a waste of time and money to batch, transport, and cure.

In summary, quality control programs are in place in most Nevada operations as a means of monitoring the quality of the fill being placed, but also as part of an ongoing program of optimization of fill mixes. This paper goes beyond the extent of a typical Nevada backfill QC program in order to present the elements of a comprehensive program of backfill quality control monitoring. With this program in place, it is possible to quickly quantify any changes in the mix quality and to quickly assess the impact of changes in the mix design.

Another simple benchmark test is routine weighing of the QC samples. The weight of the cylinder is a direct function of the density of the mix. Generally, poor test results can be correlated to excessive voids or low density in the samples; hence, it is generally possible to predict the sample strengths

D.M.R. Stone, Minefill Services Inc., Seattle, Washington, U.S.A.

80

CIM Magazine n Vol. 2, N° 5

executive summaries Advancing paste fill bulkhead design using numerical modelling stope failed catastrophically, and paste fill within the stope flowed into the ore drive. At the time of failure, the height of the paste fill was estimated to be 6.5 m to 7 m high. Because the paste fill had not undergone any significant hydration at the time of failure, the load applied to the bulkhead can be estimated as the hydraulic pressure caused by the height of the paste fill. For a 7 m fill height, this equates to a horizontal pressure of 132 kPa at the base of the bulkhead. The figure below illustrates the ultimate failure load and failure mechanism of the bulkhead. Failure of the bulkhead can be observed to propagate from the base of the bulkhead when the maximum load (at the base) reaches 130 kPa.

M I N E F I L L

Bulkhead failure is a core geotechnical risk that is an inherent feature of any mining method employing paste or hydraulic fill. In 2005-06, a collaborative project involving five Australian paste operations using sprayed fibrecrete/shotcrete/Aquacrete bulkheads was conducted to develop a robust numerical modelling methodology for the design of paste fill bulkheads. This paper presents the findings of this study. Topics described include review of currently used analytical bulkhead design methods and their limitations, a description of the FLAC3D bulkhead model, comparison of the numerical model results with common analytical solutions, and verification of the modelling methodology against actual bulkhead failures.

Historically, the design of bulkheads has relied on simplified analytical solutions. The design of paste barricades must be based upon a rational and defensible methodology. Several analytical methods are available; however, they all are limited severely by the necessary simplification of the geometry of a bulkhead, the mechanical properties of the bulkhead materials, and the representation of the interface with the wall rock. A calibrated three-dimensional Back analysis of bulkhead ultimate strength and failure mechanism numerical modelling approach has been proposed as the most The FLAC3D shotcrete bulkhead model provides mine appropriate method of paste fill bulkhead design. operators with a thorough understanding of the mechanical The three-dimensional numerical modelling code behaviour of paste fill bulkheads. Numerical modelling cannot FLAC3D was used to model the uniform loading of paste fill be used alone as a basis for bulkhead design. Back analysis bulkhead structures. FLAC3D allows the specification of com- of measured material properties and field instrumentation is plex strain-softening material models to simulate brittle shot- essential to confidently apply numerically derived bulkhead crete behaviour, together with sliding interfaces to represent designs to new bulkhead conditions. the shotcreteâ&#x20AC;&#x201C;wall rock interface. The explicit large-strain formulation allows the full failure mechanism of a bulkhead to be analyzed. The FLAC3D bulkhead model provides an excellent correlation to the ultimate load predicted for a simply supported concrete slab using yield line theory, and provides a very good match to the failure pressure of a Mt. Isa masonry bulkhead that cracked extensively at 750 kPa. The FLAC3D shotcrete bulkhead model was used to back analyze a paste bulkhead failure that occurred at an Australian paste fill operation during 2006. After filling for approximately 2.5 hours, the bulkhead at the base of the August 2007

D.P. Sainsbury, Itasca Australia Pty Ltd., Melbourne, Victoria, Australia, and M.B. Revell, Revell Resources Pty Ltd., Kalgoorlie, Western Australia, Australia 81

executive summaries

M I N E F I L L

The challenge of cyanide: Opportunities and challenges for backfill operations presented by the International Cyanide Management Code Pressure exerted on gold producers by regulators, project financiers, and civil society in the wake of the Baia Mare tailings spill in Romania during 2000 prompted most responsible gold companies to sign up to the International Cyanide Management Code for the Manufacture, Transport and Use of Cyanide in the Production of Gold (the Code). The Code stipulates a ‘cradle to grave’ approach more comprehensive than that applied to any other mining reagent, and poses particular challenges for operators who use cyanide-bearing tailings for backfill. This paper examines some of the challenges for code compliance facing deep underground gold mines that employ backfill technology, most particularly the requirement to demonstrate that the potential migration of cyanide (and its degradation products) from emplaced backfill will not have an unacceptable impact on worker health and safety or the receiving environment, either during mine life or after closure.

Although the Code may initially appear to be almost silent on cyanide risks associated with backfill (with only a single clause making specific reference to backfill), more careful consideration confirms that many Code requirements are relevant to backfill operations. Most sections of the Code that deal with tailings management are potentially applicable to mines where tailings material is used for backfill, as are certain other principles and standards that deal with operations, worker safety, emergency response, training, and dialogue with stakeholders.

Backfill use in underground mines is undertaken for one (or a combination) of the following reasons): rock stabilization, direct in-mine heat load reduction, improvement in ventilation air utilization and/or reduction in the volume of mine waste to be disposed of on surface. For the ultradeep gold mines of the Witwatersrand that extend to depths of over 3 km, the decision to backfill is primarily motivated on the basis of stability considerations, which safeguard not only worker health and safety, but also minimize disruption to production.

Gold tailings contain significant concentrations of cyanide and are generally not detoxified prior to emplacement as backfill.

For gold mines of the Far West Rand, the most significant cyanide-related risks associated with backfill operations relate to worker health and safety associated with potential exposure to cyanide-bearing seepage and hydrogen cyanide gas (which may be liberated where locally high sulphide concentrations in the orebody and host rock generate acid drainage and drop the pH of the tailings). Although there are a range of engineering interventions such as tailings thickening or detoxification that may serve to reduce this risk profile, the most effective (and least costly) risk mitigation strategies would appear to relate to behaviour-based safety systems that empower the workforce to identify and mitigate cyanide-related risks and to take appropriate action should such risks eventuate.

Even though the gold-bearing Witwatersrand Formation is overlain by the most significant aquifer in South Africa— the Malmani Dolomite—the environmental risks associated with cyanide in backfill on the Far West Rand are considered to be less significant than the health and safety risks to the workforce. The potential environmental impact of cyanide migration from backfill is considered to be relatively low due to large-scale, mining-related dewatering that has drawn down regional groundwater levels as much as 1,000 m below pre-mining elevations, compounded by the fact that backfilling takes place at depth well below significant aquifer horizons. This risk is further mitigated by the absence of pathways to facilitate the migration of water from the deep workings to the (near) surface environment under operational conditions. Although groundwater levels will recover postclosure, the vast volume of water in storage in the dolomitic aquifer is likely to result in massive dilution of any cyanide that may be mobilized from backfill.

However, it is possible that in other regions, where backfilling takes place at or close to surface and where different geological and hydrological controls come into play, the environmental impacts associated with cyanide-bearing seepage from backfill material could be potentially significant and would warrant specific management intervention.

C.L. Reichardt, School of Mining Engineering, University of the Witwatersrand, Johannesburg, Gauteng, South Africa

82

CIM Magazine n Vol. 2, N° 5

executive summaries Using effective stress theory to characterize the behaviour of backfill

The importance of understanding the behaviour of cemented backfill within the framework of the effective stress concept is highlighted in this paper. Only through an understanding built on this concept can problems such as barricade loads, the rate of consolidation, and the associated development of arching be fully understood. Traditional approaches to backfill analysis are based on the assumption that the fill behaves as a single-phase continuum, which is the total stress approach. The principle of effective stress apportions the applied load (the true total stress) between the load carried by the fill matrix, which is the effective stress, and the pore water pressure. The pore pressure may be hydrostatic once the fill is fully drained, but pore pressures may be much higher than this immediately after fill placement, leading to barricade loads that are much higher than those predicted by techniques that are currently widely used in the industry.

Illustration of the impact of increasing stiffness and of self-desiccation on the generation and dissipation of excess pore water pressure

August 2007

The critical importance of the development of stiffness during the hydration process, and its impact on factors such as barricade loads, is used to illustrate why conventional approaches that implicitly ignore the effective stress principle are incapable of capturing the essential components of cemented paste backfill (CPB) behaviour. Preliminary results from centrifuge tests on an idealized fill are used to confirm these findings. The importance of the rate of gain of stiffness is further illustrated by the effect it has on in situ stresses measured using commonly available stress cells, which are shown to under-register stresses by up to one order of magnitude, as a consequence of the difference in stiffness between the stress cell and the surrounding fill mass.

M I N E F I L L

Traditional approaches to understanding and quantifying the stress distribution within backfilled masses have been based on a total stress methodology. The variation of pore pressures that occur during filling and the subsequent dissipation of these pore pressures that results in consolidation of the fill mass have largely been ignored. In addition, theories specific to particular issues, such as the development of arching within a stope, have been borrowed from disciplines such as soil mechanics. Many of these approaches are, however, implicitly based on an effective stress approach to the mechanics of particulate media, and as a result a hybrid approach to certain backfill problems has evolved that is not based on fundamentally sound principles. When dealing with a fill that drains and consolidates relatively slowly, the inconsistencies that arise from this hybrid approach become increasingly evident.

The basis for the development of a constitutive model is described, which takes account of the features mentioned above, i.e. the development of effective stress during consolidation and the associated increase in fill stiffness, as well as other essential considerations such as cement bond formation during hydration and the phenomenon of self-desiccation.

This refers to the slight volume change that occurs due to cement hydration (the volume of the hydrated cement is less than the volume of the unhydrated cement and the water used in the mix). It has a major effect on pore pressure reduction, resulting in significant effective stresses being generated well in excess of those resulting from pure consolidation. A one-dimensional version of the model is used to illustrate the effect of these factors, as shown in the figure, where the broken lines are the pore water pressure generated for the scenarios listed (no cement, 5% cement with account taken of increasing stiffness during hydration but ignoring self-desiccation effects, and 5% with account taken of both increasing stiffness during hydration and self-desiccation effects). The simulation includes a rest period during which no filling took place, which is a feature that traditional analytical methods are unable to account for. The pore pressures are significantly lower when the effects of hydration are correctly accounted for, meaning that much improved estimates of barricade loads during various filling campaigns are now possible.

A.B. Fourie, Australian Centre for Geomechanics, University of Western Australia, Perth, Western Australia, Australia, M. Helinski and M. Fahey, University of Western Australia, Perth, Western Australia, Australia 83

executive summaries

This investigation is part of an overall investigation on the effect of sodium silicate on the properties of mine backfill. The results presented will highlight the effects of binder dosage, sodium silicate concentration, and pulp density on the performance of stabilized sodium silicate-fortified sand pastefill samples.

Binders implemented for these experiments consisted of cement, slag, and sodium silicate in various proportions. From these binders, different binder combinations, termed as SC (slag/cement), SCSS (slag/cement/sodium silicate), and SSS (slag/sodium silicate), were prepared. The binder content varied from 3 to 9 wt% (total dry weight) and sodium silicate concentrations were adjusted at 2% and 4% (total binder weight).

In order to prepare sand pastefill samples for UCS tests, two adding orders, termed 1 and 2, were used. In adding order 1, tailings was added to a mixer followed by the addition of 3/4 of the mix water. Then, sodium silicate (diluted by water) and dry binders were added gradually to the mixture.

Afterward, the remaining water (1/4) was added to the mix.

In adding order 2, after the first addition of 3/4 of the water, sodium silicate was added, followed by dry binders. A propeller mixer was used and the mixing time was controlled by a stopwatch installed on the mixer. Plastic moulds (5 cm width by 10 cm length) with caps were employed for moulding the sand pastefill specimens. All the samples were cured under drained conditions. To permit this, plastic moulds were perforated at the bottom and special filters were cut and placed in the moulds to prevent the escape of fine particles from the moulds. For completion of the aforementioned phase of the study, several series of sand pastefill test samples were prepared and cured for 28, 56, or 120 days in a humidity and temperature controlled room. The specimens were tested for uniaxial compressive strength (UCS) at these cure intervals.

Pulp density was adjusted to values between 80 and 83 wt%.

The results of this investigation evaluate the use of sodium silicate as a partial replacement of cement in stabilized backfill.

The analyses of the results demonstrate that, with an increase in binder content and a decrease in pulp density, the UCS values of sand pastefill samples increase. Results also indicate that different binders consolidate the sand pastefill specimens in different ways. As well, sand pastefill specimens made with SSS binder do not show significant UCS values after 28 days of curing, regardless of binder content, pulp density, and sodium silicate concentration. To find an economic alternative and a solution to the problem, 2% (by binder weight) were added to the specimens.

The resultant specimens showed acceptable strength after 28 days of curing. Furthermore, as shown in the figure, sodium silicate dosage plays a very important role in strength acquisition of sand pastefill samples and finding the adequate amount of sodium silicate presents a considerable challenge because first, sodium silicate is much more expensive than cement, and second, testing concerning effects of sodium silicate percentages revealed that sand pastefill samples with 4% total binder weight have less strength compared with sand pastefill samples made of 2% total binder weight sodium silicate.

PD=83 w t%, B=7 w t%, CD=56 days 5

Strength (MPa)

M I N E F I L L

A study of physical and mechanical behaviour of gelfill

4 SS=2%

3

SS=4%

2 1 0 C/SS

S/C/SS

S/SS

Binder type

Effect of sodium silicate concentration of mechanical behaviour of sand pastefill samples at 83 wt% pulp density, 7 wt% binder content, and 56 days of curing

In order to study the effect of sodium silicate on microstructures of stabilized sand pastefill, Mercury Intrusion Porosimetry (MIP) tests were conducted on selected samples.

F. Hassani, S.M. Razavi, McGill University, Montreal, Quebec, and I. Isagon, CVRD Inco, Mines Engineering and Technical Services, Copper Cliff, Sudbury, Ontario

84

CIM Magazine n Vol. 2, N째 5

executive summaries An effective stress approach to modelling mine backfilling M I N E F I L L

Previously, there has been no rigorous method for determining the loads applied to tailings-based backfill (paste or hydraulic fill) retaining structures. Without a rigorous method, operators tend to adopt conservative filling schedules that are largely based on experience. While this approach will often provide a successful outcome, the lack of rigour means that fill schedules may be grossly conservative and in other circumstances, modifications to the filling schedule may result in the introduction of unacceptable risk to the mining environment, with catastrophic consequences.

This paper presents the results of a research project that is currently underway (at The University of Western Australia) aimed at furthering the understanding of geotechnical aspects associated with the placement of tailings-based mine backfill. The aim of the work was to develop a rigorous approach to the assessment of barricade loads using laboratory-scale testing and numerical modelling. The work is based on fundamental material properties and is therefore capable of simulating the placement of all hydraulically placed fill types, ranging from coarse hydraulic fills through to fine paste fill and any combination in between.

This paper presents the methodology behind the numerical program Minefill 2D, providing a brief overview of the model and highlighting the unique aspects than were required in order to appropriately represent the cemented minefill placement process. These aspects include full coupling of the deposition, consolidation, and cement hydration—time dependent processes. Other numerical complexities included the accretion of material and appropriate phreatic surface control.

Secondly, this paper presents an experimental technique that has been developed to derive relevant fundamental material properties. This section introduces a novel experimental method, referred to as a ‘hydration test,’ that is capable of capturing the evolution of material properties during hydration. It is then explained how this test can be combined with standard triaxial tests to appropriately represent the material strength as well as the breakdown of cementation that occurs during shearing.

Finally, a case study is presented that uses the described experimental technique to characterize three different Australian minefills. These include a hydraulic fill whose tailings are primarily silica based (Minefill A), a paste fill that is formed from tailings primarily consisting of silica (Minefill B), and a paste fill that is constituted from tailings that contain a significant amount of active clay material (Minefill C). Each of August 2007

Variation in barricade loads against time for different fills with the same strength but differing consolidation characteristics

the minefills tested demonstrated a similar 28-day unconfined compressive strength of approximately 400 kPa, but demonstrate vastly different consolidation characteristics.

The numerical program (Minefill-2D) is then used (in plane strain mode) to simulate a given deposition sequence with the three different fill types. During the filling process, the distribution of total stress, pore water pressure, and effective stress is monitored, and some interesting relationships between barricade stresses and consolidation are demonstrated.

• •

•

Based on the modelling results, it is demonstrated that: Consolidation significantly influences barricade loads.

Cement-induced consolidation mechanisms, such as the change in material stiffness and self desiccation, can significantly influence consolidation (and therefore barricade loads) in cemented paste backfills.

Typically, hydraulic fill barricade loads will initially be less than those applied to paste fill barricades.

Ultimate paste fill barricade loads can be greater than or less than those applied to hydraulic fill barricades, depending on the cementation characteristics of the paste.

• The cemented mine backfilling involves a complex interaction of mechanisms and without a fully coupled model, it is difficult to appropriately represent the process.

M. Helinski, M. Fahey, The University of Western Australia, Perth, Western Australia, Australia, and A.B. Fourie, Australian Centre for Geomechanics, University of Western Australia, Perth, Western Australia, Australia 85

executive summaries

M I N E F I L L

Application of minefill at Barrick Gold Backfilling of voids generated by underground mining is commonly performed to provide regional and local support, improve extraction rates and dilution control, and to allow for convenient waste rock disposal. This process may account for a major portion of the mining cost and has drawn substantial research interest from the mining industry. There is now a wide range of plant designs and delivery systems being used to conform to variable application conditions. Information and best practice sharing has been a key component in advancing technology in minefill applications.

Barrick is a leading international gold mining company, with a portfolio of 27 operating mines and seven advanced exploration and development projects located across five continents. The application of minefill is an integral part of the mining cycle at most of Barrick’s 12 underground operations.

Barrick currently operates three types of backfilling systems comprised of six cemented/consolidated rock fill plants, nine cemented paste backfill plants, and three rock fill arrangements. Of the nine paste plants, three have switched from CRF, two from hydraulic fill, and four are original installations.

A tenth paste plant is in the preliminary design stage and will replace a rock fill/cemented aggregate fill system.

Various minefill types and systems have been developed to suit different mining conditions and satisfy regulatory requirements in underground mining. In addition to mining economics, a number of physical parameters have significant effects on minefill selection and design. These parameters include mining method, mining unit dimensions, orebody geometry, and rock mass properties. The majority of Barrick underground mines backfill their mining voids with cemented (consolidated) fill. These mines mainly employ two mining methods—longhole open stoping with delayed backfill (including Alimak mining) and cut-and-fill (conventional or mechanized, underhand or overhand). Selection of mining method is primarily based on the orebody geometry and rock properties, in addition to economic considerations. Generally, longhole open stoping is selected for deposits dipping greater than 45º, while cut-and-fill is applied for flat-dipping deposits. Orebody thickness is one of the key factors in min-

ing method selection. At some Barrick mines, cut-and-fill is used in steep veins less than 3 m in thickness due to wall overbreak concerns. Another key factor in the selection of mining method is rock properties. Longhole stoping is not usually applied to ore or hanging wall rock with RMR less than 40. Mines with weak ore or hanging walls tend to select the underhand cut-and-fill method.

In mines using longhole open stoping, the fill exposure height ranges from 10 m to 25 m for a single lift and may increase up to 180 m if the Alimak approach is adopted, normally in deposits less than 5 m in thickness. For cut-and-fill mining, the exposure span ranges from 3 m to 9 m with a height of no more than 5 m in a single cut. Minefills at Barrick mines have a designed uniaxial compressive strength (UCS) ranging from 0.09 to 5.5 MPa with binder contents of 2% to 7.5%. A higher strength is required for underhand cutand-fill methods and primary stopes, while fill of a lower strength is used for voids without side wall exposure. Fill design is based on consideration of various potential failure modes such as block shearing, sliding, bending, caving, or rotational for preliminary analysis, and the final strength requirement is normally determined by considering analytical results, with reference to minefill applications at neighbouring mines and mines with similar mining conditions.

Delivery of quality minefills, particularly those with binder, into mining voids is important in achieving the backfilling purpose and can have a significant effect on mining performance. Quality of placed minefill must be effectively controlled through establishing programs, procedures, and training packages.

This paper summarizes minefill systems and their application at Barrick operations, presents two typical backfill systems and their variations installed at Barrick mines, and reviews minefill quality assurance/quality control (QA/QC) aspects, as well as research involvement.

R. Evans, J. Ran, and R. Allan, Barrick Gold Corporation, Toronto, Ontario

86

CIM Magazine n Vol. 2, N° 5

emg abstracts

Exploration and Mining Geology Journal Volume 15â&#x20AC;&#x201D;Numbers 3 and 4 The Camelback Zn-Pb-Cu Deposit: A Recent Discovery in the Bathurst Mining Camp, New Brunswick, Canada J.A. Walker, New Brunswick Department of Natural Resources, Geological Surveys Branch, and J.I. Carroll, Cogema Resources Inc. Camelback is a small, moderate grade, volcanogenic massive sulfide deposit, which occurs within the Nepisiguit Falls Formation of the Ordovician Tetagouche Group. The host rocks are tuffaceous sedimentary rocks (Little Falls member) that overlie quartz-feldspar porphyritic tufflavas (Grand Falls member). The hanging-wall sequence comprises rhyolite of the Flat Landing Brook Formation, overlain by the Forty Mile Brook tholeiitic basalt. A dike of unaltered andesite was intersected beneath the massive sulfides, but was not found in the hanging-wall sequence in the vicinity of the deposit. The stratiform part of the deposit is made up of two, steeply south dipping, subparallel massive lenses that average approximately 4 m in thickness. The Au content in the massive sulfides is low, but tends to be enriched in the massive pyrite near the top of each lens. The massive lenses are underlain by intensely chloritic, fine-grained, tuffaceous sedimentary rocks containing locally significant sulfide (chalcopyrite > pyrite > pyrrhotite) veins.

The Mount Fronsac North Volcanogenic Massive Sulfide Deposit: A Recent Discovery in the Bathurst Mining Camp, New Brunswick J.A. Walker, New Brunswick Department of Natural Resources, Geological Surveys Branch, and G. Graves, Xstrata Zinc The Mount Fronsac North volcanogenic massive sulfide deposit is the most recently discovered massive sulfide body in the Bathurst Mining Camp. The deposit occurs within a sequence of intercalated fine-grained felsic tuff and sedimentary rocks (Little Falls member), at the top of the Nepisiguit Falls Formation. Aphyric to sparsely feldspar-phyric rhyolite and related volcanic rocks of the Flat Landing Brook Formation overlie the host sequence. This sequence has a maximum thickness of 140 m and contains significant fine- to coarse-grained disseminated pyrite. Massive sulfides are found throughout this alteration envelope, but more commonly occur at or near the upper contact. The significance of the discovery of this deposit is that it represents a near surface discovery of a large tonnage sulfide body in a mature mining camp, one in which the possibility of discovery of a new shallow deposit had been all but discounted. This opens the possibility for future discoveries in this part of the Bathurst Mining Camp.

Chemostratigraphy of Volcanic Rocks Hosting Massive Sulfide Clasts Within the Meductic Group, West-Central New Brunswick S.H. McClenaghan, D.R. Lentz, Department of Geology, University of New Brunswick, and L.R. Fyffe, Geological Surveys Branch, New Brunswick Department of Natural Resources and Energy The Eel River area in the southwestern Miramichi terrane of New Brunswick contains a complete calc-alkaline suite of volcanic rocks that are interlayered with intervals of sedimentary and polylithic fragmental rocks, and are overlain by a thick sedimentary sequence. This package, collectively referred to as the Meductic Group, was deposited in a submerged volcanic arc setting interpreted to be part of the Popelogan arc. Rifting of this arc led to the development of the Tetagouche-Exploits back-arc basin, and formation of volcanogenic massive sulfide deposits in bimodal volcanic rocks of the Bathurst Mining Camp in the northeastern Miramichi Terrane. Unlike the Bathurst Mining Camp, volcanic rocks in the southeastern Miramichi Highlands form a continuous calc-alkaline suite characterized by increasing Zr/TiO2 with increasing SiO2, in part resulting from progressive coupled assimilation and fractional crystallization of nested magma systems. Slumping of semi-consolidated volcanic and sedimentary rocks in topographically unstable areas resulted in numerous slumps and debris flows that are Excerpts taken from abstracts in EMG, Vol. 15., Nos. 3 and 4 preserved throughout the Eel River area.

Subscribeâ&#x20AC;&#x201D;www.cim.org/geosoc/indexEMG.cfm August 2007

87

cmq abstracts

Canadian Metallurgical Quarterly Volume 46—Number 2

Production of Al-Ti Master Alloy by Aluminothermic Reduction Technique M. Hosseinpouri, S.A. Mirmonsef, and M. Soltanieh, Department of Materials and Metallurgical Engineering, Iran University of Science and Technology Aluminum-titanium master alloys were prepared with an aluminothermic reduction of titanium dioxide dissolved in cryolite (NaF/AlF3 = 2.5 molar ratio)-alumina melts in the presence of aluminum. The effects of time, the concentration of the titanium dioxide and temperature were investigated by spectrophotometer, scanning electron microscopy (SEM) and X-ray diffraction (XRD) techniques. Al-Ti alloys containing about 7.8 wt% Ti were prepared at T=1120°C after 10-15 minutes reduction time. The results showed that the reduction reaction occurred very quickly, i.e., within a few minutes. It was found that the reduction product at room temperature was a master alloy composed of an aluminum matrix and a TiAl3 intermediate phase with needle shape. The reduction product was in fact a composite.

Effect of Bending Variables on the Characteristics of EN-AW5018 Tubes for Subsequent Hydroforming D.A. Oliveira, M.J. Worswick, G. Khodayari, and J. Gholipour, University of Waterloo, Department of Mechanical Engineering Understanding the effects of forming history on the subsequent hydroformability of aluminum alloy tubes is critical for widespread acceptance of aluminum as a light-weight alternative in automotive components. The aim of this research is to investigate the influence of pre-bending on the characteristics of aluminum alloy tubes for the hydroforming process.

Tube bending experiments were performed on 2 and 3.5 mm wall thicknesses with 76.2 mm outer diameter EN-AW5018 tube. In the tube bending experiments, key process parameters such as boost were varied and the effect on the resultant thinning, strains and springback of the as-bent tubes was assessed. Bending boost is shown to reduce thinning and strains in the as-bent tubes which has been found to be favourable for any subsequent hydroforming operation.

Scratch Test for Coating/Substrate Systems—A Literature Review J. Li and W. Beres, AeroMet & Ceramics, NRC Institute for Aerospace Research The scratch test consists of a diamond stylus moving over the surface of a sample under a normal force which is increased either stepwise or continuously until a critical normal force is reached, at which point a well-defined coating failure occurs. This force is then taken as a measure of adhesion. In this paper, a literature review on scratch testing applied to coating/substrate systems is provided. Tribological contact mechanics, failure modes, factors affecting the scratch test results, adhesion measurements, friction effects as well as finite element modelling of the scratch test are discussed.

Excerpts taken from abstracts in CMQ, Vol. 46, No. 2.

Subscribe—www.cmq-online.ca

88

CIM Magazine n Vol. 2, N° 5

Three continents present a unique event

WORLD GOLD 2007 By and Co-Products and the Environment Cairns, Australia, 22 – 24 October 2007 REGISTER NOW – via www.ausimm.com World Gold 2007 – Central New South Wales Tour Visit two key gold producing operations in Central New South Wales, Newcrest’s Cadia Valley Operation and Barrick’s Cowel Mine.

Partners Program Program includes a four day partners program visiting the Great Barrier Reef, Cape Tribulation, Kuranda and Skyrail, and more.

Pre-conference Workshops World Gold 2007 will be complemented with Pre-conference workshops: ■ Gold Processing Workshop Technological Developments and Their Practical Application in Gold Processing.

20 – 21 October 2007

For further information, please contact: Alison M McKenzie The AusIMM PO Box 660, Carlton South Victoria, Australia 3053 Telephone: +61 3 9658 6123 Facsimile: +61 3 9662 3662 Email: conference@ausimm.com.au

■ Geostatistics Workshop A Workshop on Practical Geostatistics for Mining Applications.

21 October 2007 ■ Gold Workshop Gold deposits: Geology, New Developments and Exploration.

20 – 21 October 2007

Gold Sponsors

www.ausimm.com Hosted by The Australasian Institute of Mining and Metallurgy in conjunction with the Canadian Institute of Mining, Metallurgy and Petroleum and the South African Institute of Mining and Metallurgy.

Exhibitors

professional directory & ad index CORRIVEAU J.L. & ASSOC. INC. Land & Mining Surveyors GYRO & GPS SERVICES • SALES • RENTALS UNDERGROUND and SURFACE CONTROL • BOUNDARY and LEGAL SURVEYS • TOPOGRAPHIC SURVEYS • PHOTOGRAMMETRIC MAPPING 3D SCANNING and MODELLING • BOREHOLE DEVIATION • BATHYMETRIC SURVEYS 1085 - 3rd. Avenue Val d’Or, Quebec J9P 1T5 E-Mail: bureau@corriveaujl.com

Tel:(819) 825-3702 Fax:(819) 825-2863 Web: www.corriveaujl.com

In next month’s issue The big game The September/October issue of CIM Magazine has traditionally been the coal and oil sands issue, and this year won’t disappoint. We will have more articles covering more operations, new technology, and the people making it all possible.

Built Fort Mac tough—the oil sands continue to surge forward as the power nucleus of Canada. Watch for next month’s issue to find out what is coming down the pipeline!

IFC

Alberta Fuel Distributors Inc

19 AMEC Americas Limited IBC

Atlas Copco

11 Aur Resources 10 Breton, Banville & Associes 21 EBA Engineering 32 Elk Valley Coal 43 Eriez Magnetics 12 Federal Equipment 57 Feldman Dixon Partners 36 Golder Associates 20 Industrial Equipment Manufacturing Ltd 15 Klohn Crippen Berger Ltd. 45 Knight Piesold Consulting 37 Mecanicad OBC

Metso Minerals

27 Micromine Limited 31 Mosaic Potash Esterhazy

REACH INDUSTRY!

3 MTU Detroit Diesel

Contact Dovetail Communications Inc. Account Managers: (905) 886-6641 Joe Crofts ext. 310 jcrofts@dvtail.com Janet Jeffery ext. 329 jjeffery@dvtail.com

90

ADVERTISERS

Advertise in CIM Magazine

17 Precismeca Limited 24 Richwood 26 SNC-Lavalin Engineers and Constructors Inc. 18 SRK Consultants 90 Professional Directory / Product File Firwin Corp Corriveau J.L./ 3D Survey & Scan Jet-Lube

CIM Magazine n Vol. 2, N° 5

Our commitment is just as strong

Working with Atlas Copco means working with worldleading products and services. Whatâ&#x20AC;&#x2122;s more, the people you work with are also the best â&#x20AC;&#x201C; committed to creating the ideal conditions for your mining and construction operations.

It takes a strong will to get to the top, and a firm hand to stay there. Our commitment to supply you with the best equipment solutions and superior customer service and support is just as strong.

Atlas Copco Construction and Mining Canada Phone: 1-800-465-6719 24-hour on-call service, 7 days a week accmc@ca.atlascopco.com

www.atlascopco.com

Vertical Plate Pressure Filter Cuts Energy and Maintenance Costs

Strong and Comprehensive Solutions for Your Business Metso in Filtration comprise Vertical Plate Pressure Filters, VPA, Tube Presses and Vacuum Filters

Metso Minerals Vertical Plate Pressure Filter brings together high performance and a high degree of automation at low cost per ton.

· · · · · · ·

Light weight construction, with machined polypropylene filter chambers Driest possible cake solids Maximum volume reduction Exceptionally clear filtrate A one-minute filter cloth change operation Available in several pressure ratings for different applications Supply of complete systems

www.metsominerals.com ADDRESS P.O. Box 302, S-733 25 S ala, Sweden

PHONE +46 224 570 00

FAX +46 224 169 50

E-MAIL minerals.info@metso.com