CIM Magazine October 2013 by CIM-ICM Publications

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CONTENTS|CONTENU CIM MAGAZINE | OCTOBER | OCTOBRE | 2013

TOOLS OF THE TRADE 10

The best in new technology Compiled by E. Moore

NEWS 16 22

Industry at a glance Feds extend GEM program Mapping in Canadaâ&#x20AC;&#x2122;s North gets a $100-million boost

Pipe piling up TransCanada stockpiles pipe as Keystone XL debate rages by I. Ewing The mining world comes to Montreal Extensive technical program, plenary speeches spark discussion at 23rd World Mining Congress by H. Mathisen The big boom Mt. Milligan mine breathing new life into two B.C. towns by A. Livingstone

by V. Heffernan

COLUMNS 30 32 34 35 36

MAC Economic Commentary Temporary Foreign Worker Program was designed for a good reason by P. Gratton Eye on Business Miners reap what they sow with writedowns by P. Crowson Safety The tough guy problem by D. Laplonge Finance Reliable feasibility studies key amid gold price volatility by S. Mlot Innovation Canada needs to rediscover its innovative streak by V. Pakalnis

UPFRONT Gold 38 42

4 | CIM Magazine | Vol. 8, No. 7

Golden fortunes Expansion about to pay off for Lake Shore Gold by G. Chandler Slow start for SART Promising technology could save industry millions in time by V. Danielson Savings from the bottom up Largediameter boreholes increase options for miners by I. Ewing

TECHNOLOGY Safety innovations 55

Proximity detection takes root underground A push by regulators and operators are driving the growth of underground proximity detection tools by J. Leuschen

CIM COMMUNITY | LA COMMUNAUTÉ DE L’ICM 74

CIM ramps up activities in West Africa Dakar branch hosts events, looking to build local expertise in Senegal by H. Mathisen

46 76

by H. Mathisen

FEATURE | ÉDITORIAL 46

Breaking down comminution Maturing technologies designed to improve grinding efficiency are taking hold as energy prices rise and ore grades fall 78

by E. Moore

Analyser la comminution Les technologies développées conçues pour améliorer l’efficacité du broyage s’instaurent pendant que le coût de l’énergie augmente et que la qualité des minerais diminue par E. Moore

SPECIAL REPORT

57 58

Following in the footsteps of the emperor Senegal’s three distinct regions each hold promise by P. Blin and A. Dion-Ortega

ICM intensifie ses activités en Afrique de l’Ouest La succursale de Dakar organise régulièrement des événements pour développer une expertise locale au Sénégal par H. Mathisen Knowledge at your fingertips CIM puts 115 years of technical papers online

Fits and starts Some Senegalese transport options improve as others flounder by E. Moore Ready for takeoff An insider’s perspective on Senegal’s growing mining sector by P. Blin and A. Dion-Ortega Answers to 10 key questions about mining under Senegalese law by M. Kebe Project profile – Ahead of the pack Teranga Gold’s Sabodala plans to cash in on expansion by C. Windeyer Profil de projet – En peloton de tête La mine pionnière Sabodala de Teranga Gold par C. Windeyer Travel – Dakar by K. Lagowski

Les connaissances au bout des doigts L’ICM met en ligne 115 années de documents techniques par H. Mathisen Garth Kirkham named incoming president-elect CIM’s 2015-16 president wants organization to become the world’s go-to standards resource by K. Lagowski Garth Kirkham nommé président élu entrant Le président de l’ICM pour 20152016 souhaite que l’organisation devienne la ressource mondiale de prédilection en matière de normes par K. Lagowski

TECHNICAL ABSTRACTS | RÉSUMÉS TECHNIQUES 81 82

CIM Journal Canadian Metallurgical Quarterly

IN EVERY ISSUE 6 8 85 86

Editor’s letter President’s notes Mot du président Product file Mining Lore by C. Baldwin

October 2013 | 5

editor’s letter

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

The efficiency agenda

“I

f you want to know if your haul roads are in good shape, just pour yourself a cup of coffee, set it on the dash of your truck and take a drive through your operation at 60 kilometres per hour.” That was the advice of Caterpillar’s Kent Clifton at a recent product demonstration event at the company’s proving ground south of Tucson, Arizona. The event included a number of presentations from product line specialists and a showcase of Cat’s various machines in action. A fellow editor and return visitor to the site observed that the biggest change since his last trip there – beyond Cat’s embrace of electric drive haul trucks – was the company’s messaging. In the past, the emphasis was on sizing up, but the focus at this event was squarely on efficiency and “cost-per-ton.” After a summer storm of writedowns, where mining companies reconciled their accounting to the reality of the marketplace, Cat representatives had scores of suggestions for the visiting group of miners on how they could make their operations more productive and push back against narrowing margins. Experts discussed many load and haul practices – tire management, road maintenance, refuelling schedules, payload optimization – and showed potential improvements that, when combined, promised substantial rewards. Our feature this issue, “Breaking down comminution” (pg. 46) by Eavan Moore, takes an equally close look at how changes in comminution circuits can uncover more value for operations. But in this instance, rather than refining current practices, as the Cat reps proposed, a number of expert voices argue that the moment demands a fundamental shift in how mines liberate minerals. As ore grades decline and sizing up mills to handle throughput becomes more difficult, they suggest the time has come for processing plants to put less familiar but increasingly proven energy efficient grinding technologies to better use. This issue also features a special report on Senegal. Though the West African country’s mining industry is modest at present, it has the character to grow and, in the process, open up other jurisdictions on its borders. Our coverage is designed to give the reader a broad introduction to the country, one that should bring him or her up to speed on the state of the industry as well as some of the idiosyncrasies of the local culture. As you will discover, “business casual” doesn’t translate well to Wolof.

Section editors Peter Braul, pbraul@cim.org Herb Mathisen, hmathisen@cim.org Copy editor/Communications coordinator Zoë Koulouris, zkoulouris@cim.org Web editor Nathan Hall, nhall@cim.org Web support Maria Olaguera, molaguera@cim.org Contributors Correy Baldwin, Pierrick Blin, Graham Chandler, Mauro Chiesa, Phillip Crowson, Vivian Danielson, Antoine Dion-Ortega, Ian Ewing, Pierre Gratton, Virginia Heffernan, Mouhamed Kebe, Krystyna Lagowski, Dean Laplonge, Janice Leuschen, Andrew Livingstone, Stephen Mlot, Eavan Moore, Vic Pakalnis, Chris Windeyer, Dinah Zeldin Editorial advisory board Alicia Ferdinand, Garth Kirkham, Vic Pakalnis, Nathan Stubina Translations SDL, Karen Rolland Published 9 times a year by the Canadian Institute of Mining, Metallurgy and Petroleum 1250 – 3500 de Maisonneuve Blvd. West Westmount, QC, H3Z 3C1 Tel.: 514.939.2710; Fax: 514.939.2714 www.cim.org; Email: magazine@cim.org Subscriptions Included in CIM membership ($174.00); Non-members (Canada), $220.00/yr (PE, MB, SK, AB, NT, NU, YT add $11.00 GST, BC add $26.40 HST, ON, NB, NL add $28.60 HST, QC add $32.95 GST + PST, NS add $33.00 HST) Non-Members USA and International: US$240.00/year. Single copies, $25.00. 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 Senior Account Executives 905.886.6641 Janet Jeffery, jjeffery@dvtail.com, ext. 329 Neal Young, nyoung@dvtail.com, ext. 325 Account Manager Tristan Cater, tcater@dvtail.com, ext. 326

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

ISSN 1718-4177. Publications Mail No. 09786. Postage paid at CPA Saint-Laurent, QC. Dépôt légal: Bibliothèque nationale du Québec. The Institute, as a body, is not responsible for statements made or opinions advanced either in articles or in any discussion appearing in its publications.

Printed in Canada 6 | CIM Magazine | Vol. 8, No. 7

use of Earthâ&#x20AC;&#x2122;s natural resources As the global leader in minerals and metals processing technology, Outotec has developed many breakthrough technologies over the decades. The company also provides innovative solutions for industrial water treatment, the utilization of alternative energy sources and the chemical industry. www.outotec.com

president’s notes | mot du président

Lifting the curse The “Resource Curse” is the ironic circumstance by which communities and regions are left in a worse condition during and after mineral development and exploitation than before. This is typically a result of the illegal or improper diversion of the benefits derived from mining due to government mismanagement. Transparency is often the best cure for the “Resource Curse” because it will hold governments and trusted officials accountable to their constituents. It is encouraging that the transparency movement is picking up momentum. Early this past summer, the Canadian government strengthened the Corruption of Foreign Public Officials Act by increasing penalties for bribery and helping authorities with investigations and prosecutions of bribery offences. Now citizens and permanent residents of, and companies organized in, Canada can be charged for bribery regardless of where it occurred or of the degree to which the action was connected to Canada. And soon there will be new reporting standards for the extractive industries that make payments such as taxes, licence fees and royalties to foreign governments reportable events. New regulations will also put an end to “facilitation fees” that were routinely made to a foreign public official to expedite or secure performance.

Robert Schafer CIM President | Président de l’ICM

This growing transparency trend is likewise showing itself in other jurisdictions. A number of developing countries now have laws defining how the tax and royalty revenues are shared among federal, state and community coffers. For mining companies, publicly reporting the magnitude of these payments quantifies the economic benefits derived from local mineral extraction. For communities, reporting allows them to hold governments accountable for the distribution and use of the revenues collected. And more and more communities are asking governments for their fair share. For example, Peruvian mining communities are taking to the streets to demand their legitimate 50 per cent share of taxes paid by mining companies annually, which are designated for local and regional use. For investors, this push for greater openness is welcome because it further quantifies risk. As CIM expands its reach in Latin America and West Africa, we have an essential part to play in sharing knowledge and experiences, as well as in improving practices. Lifting the “Resource Curse” will require a common effort that encourages ethical behaviour and supports best practices wherever CIM members are engaged.

Mettre fin à la malédiction La « malédiction des ressources » est une situation plutôt ironique par laquelle les collectivités et les régions où il y a des projets de développement et d’exploitation miniers sont laissées dans un pire état que celui d’avant. Ce phénomène est habituellement attribuable au détournement illégal et inapproprié des revenus provenant des activités minières en raison de la mauvaise gestion du gouvernement. Le meilleur remède contre la « malédiction des ressources » est la transparence, car elle contraint les gouvernements et les autorités dignes de confiance à rendre des comptes aux électeurs. Il est encourageant de voir que le mouvement en faveur de la transparence prend de l’ampleur. Au début de l’été dernier, le gouvernement du Canada a renforcé la Loi sur la corruption d’agents publics étrangers en augmentant les peines contre la corruption et en aidant les autorités à mener les enquêtes et les poursuites dans les cas de corruption. Désormais, les citoyens et les résidents permanents travaillant pour des entreprises établies au Canada peuvent être accusés de corruption peu importe le lieu d’infraction ou l’importance de la relation que l’infraction peut avoir avec le Canada. Il y aura bientôt de nouvelles normes de production de rapports selon lesquelles les industries extractives devront déclarer tout paiement effectué à un gouvernement étranger, comme les taxes, les droits de licences et les redevances. Les nouveaux règlements mettront un terme aux frais de commodités qui étaient payés régulièrement aux agents publics étrangers pour accélérer et garantir l’exécution d’un projet. Cette tendance croissante de la transparence se manifeste dans d’autres juridictions. Un certain nombre de pays en développement se sont dotés de lois permettant de déterminer le partage du revenu sur les taxes et les redevances entre les coffres du fédéral, du provincial et du municipal. Le fait de produire un rapport public sur l’ampleur de ces paiements quantifie les retombées économiques provenant de l’extraction locale du minerai, et cela en faveur des entreprises minières. Le rapport permet également aux collectivités de tenir les gouvernements responsables de la répartition et de l’utilisation des recettes recueillies. De plus en plus de collectivités demande leur juste part aux gouvernements. Par exemple, les collectivités minières du Pérou manifestent dans les rues pour exiger leur part de 50 pour cent des taxes annuelles payées par les entreprises minières, destinées à l’utilisation locale et régionale. Pour les investisseurs, cette tendance à une plus grande ouverture est bien accueillie, puisqu’elle quantifie davantage le risque. Alors qu’ICM prend de l’expansion en Amérique latine et en Afrique de l’ouest, nous avons un rôle essentiel à jouer dans la transmission des connaissances et de l’expérience, en plus d’améliorer les pratiques de l’industrie. Pour mettre fin à la « malédiction des ressources », il faut déployer un effort commun pour encourager le comportement éthique et soutenir les pratiques exemplaires, surtout lorsque des membres d’ICM sont en cause. 8 | CIM Magazine | Vol. 8, No. 7

the best in new technology

Courtesy of Conveyor Components Company

OF TOOLS THE TRADE

Courtesy of Hard-Line Solutions

◢ Look alive Hard-Line Solutions developed EntryAlert for underground situations where remote load haul dump (LHD) truck operators cannot see pedestrians entering their vehicle’s area. One strobe light is installed over the entrance to the drift and flashes as long as there is an LHD operating. When someone enters the drift, they break a light beam at the entrance, and a second strobe light at the remote operator station starts flashing. The equipment is connected by cables to a remote control used by the operator, who can reset either light once the pedestrian is clear or the vehicle is no longer operating remotely. Max Gray, North American sales and global marketing director, says customers had been asking for this additional layer of safety. “It is good mine management on any drift using remote operation,” he says.

◢ Convenient control Conveyor Components Company has updated its Tilt Level Probe with an explosion-proof version of the control unit for more convenient placement. The probe itself is either a six- or nine-inch steel cylinder suspended over bulk handling equipment. The unit can be set to detect either the presence or absence of material and allows for a maximum of 5,000 feet of cable between control and probe. The three models available include dust-proof, weather-tight units and models that are explosion-proof. “Not only can the probe be placed in a hazardous environment, but this control unit is also designed for use in hazardous environments,” says sales manager Rich Washkevich, adding the new control units also feature long-life LED indicator lights and lightweight surfacemounted electronics.

◢ Non-smoking areas The CA610LF75 leaky feeder coaxial cable from AIR802 meets the mining industry’s growing interest in zerohalogen cables, according to chief technology officer Michael Bryant. Halogen is a popular material choice for fire retardant cables in North America because it has a low burn rate. Still, fire and water lead halogen to produce toxic fumes and acid. AIR802 uses a low-smoke

zero halogen material with its cable. “This material will do the same thing and accomplish more by producing less toxic smoke,” says Bryant. “We’re seeing more and more customers asking for low-smoke zero halogens. It’s particularly useful in underground mines.” The cable is designed for 150 MHz VHF systems and can support up to 450 MHz frequencies.

Courtesy of AIR802

10 | CIM Magazine | Vol. 8, No. 7

the best in new technology

◢ Powerful wrench

Courtesy of Martin Engineering

Stanley Black & Decker subsidiary PROTO designed its first line of pistol air impact wrenches with both power and ergonomics in mind. Senior brand manager Alan English says the handle of the PROTO Titanium series air wrenches is positioned in the centre of the tool, alleviating wrist strain and improving product airflow. “The air flows directly into the motor of the tool and not up into the back of the tool, like many of the competitive units,” he explains. The result is the highest breakaway torque in the industry: 1,260 foot pounds in the half-inch drive size compared with 1,100 and 1,190 foot pounds, respectively, in PROTO’s closest competitors, says English. Its titanium front housing also works to keep its weight low, at 4.6 pounds in the half-inch size.

12 | CIM Magazine | Vol. 8, No. 7

Courtesy of Trimble

Courtesy of PROTO

OF TOOLS THE TRADE

◢ Save the tires Trimble’s TirePulse Monitoring System caters to users who need precise, timely temperature and pressure data on any tire type. Chris Wheeler, segment manager for telematics devices, says the pressure gauge is accurate within three percentage points, allowing users to fine-tune their tire inflation. The sensor’s valve-stem positioning protects it from breakage and overheating. Trimble’s fleet management and productivity software, VisionLink, provides an interface for running real-time updates on tire conditions. A fault in the tire, like a major pressure drop or overheating, automatically generates an email or text to the machine operator or to back-office personnel. TirePulse is the first of many monitoring devices planned to operate on VisionLink.

◢ Low-maintenance belt rollers Martin Engineering’s EVO high-speed roller cradle improves on traditional roller designs by combining high belt speed capability with better impact absorption and less required maintenance, says Paul Harrison, global engineering manager. “Rolls don’t provide a continuous surface against which the belt can run, and that gives sealing problems, which lead to dust and spillage and all sorts of issues,” he explains. The tightly spaced EVO design creates an almost flat belt edge which, says Harrison, allows effective sealing while adding more support for the belt. Rollers are normally widely spaced so they can be taken out for maintenance. EVO slides out on tracks instead. Harrison says one mine accustomed to replacing four to five rolls a month had zero component failures after seven weeks using EVO rollers.

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OF TOOLS THE TRADE

the best in new technology

◢ Plastic protection Plastics specialist igus Inc. has released its E4-1 polymer Energy Chain cable carrier, which combines the strongest parts of three previous E4 series carriers in one product. Scott Parker, product sales manager for Canada, says the E4-1 cable and hose carriers have a tongue-and-groove design that protects the carrier’s noisereducing stop dogs from debris. The design can be open to allow debris to fall through or closed to protect the interior from accidents. On mine sites, they typically replace festoon systems or other less flexible, higher maintenance approaches. “Because it’s a polymer, we get a lot of interest in potash and coal applications because it’s non-corrosive,” Parker says.

Courtesy of Neptune Systems

Courtesy of ABB

Courtesy of igus Inc.

◢ Hoist health checkups ◢ Into thin air Neptune Systems has released its Neptune Evaporator, promised to be an environmentally sound, cost-cutting wastewater disposal system. Salesperson Tris Waystack says fracking operations use the product to evaporate 97 per cent of their fracking water at one or two cents per gallon, avoiding the cost of taking it to a treatment plant. The trailer-mounted system uses a turbine fan to turn the liquid into aerosol over a lined pond. Contaminants of 40 to 100 microns settle within 150 feet of the unit as they spray out, while water particles dissipate. One unit can evaporate 3,000 to 9,000 gallons per hour. Waystack says no other company sells all-inclusive units of this scale; customers need supply only a water hose flowing at 150 gallons per minute. The evaporator can also be used to treat leachate.

ABB has introduced its new Hoist Performance Monitoring Service designed to take the work out of consulting its experts. “What this brings to the table is a very organized, very clear, straightforward way to be able to intelligently look at the customer systems remotely,” says Sachin Jari, North American mining manager. Information is continuously retrieved from operational points like the motor, hydraulics and brakes and sent to ABB. Hoist service experts regularly analyze the data and hold remote sessions with staff at the mine to discuss solutions for issues. Continuous monitoring alerts the customer if pre-established triggers show abnormal conditions; ABB investigates the cause and recommends solutions. Compiled by Eavan Moore

14 | CIM Magazine | Vol. 8, No. 7

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New Australian PM vows to revive mining Tony Abbott rode into Australia’s top office in September on promises of stoking the country’s economic fires. The first conservative prime minister Australia has seen in six years, Abbott takes the helm at a time when the country’s economic growth is faltering, due in part to reduced demand for the country’s natural resources. In the second quarter of 2012, the Australian economy grew 3.7 per cent over the same quarter a year earlier, but this year that number shrank to 2.6 per cent during the same period. “The challenges are considerable,” Abbott said. “We must scrap the carbon tax, we must build the roads, we must get the budget back into the black.” Mining taxes have been a central issue of debate for many Australian prime ministers in recent memory. Kevin Rudd, Abbott’s prede-

Courtesy of Troy Constable

news | industry at a glance Contractor cleans up crew despite death threats

cessor, lost the leadership of the Labour party to Julia Gillard in 2010 over his proposed super-tax of 40 per cent on all extractive activities. Gillard, who served as prime minister from 2010 until lateJune 2013, wound up instituting a 30 per cent tax on profits above AU$75 million, before Rudd regained the role of party leader this summer, prior to the September election. It remains to be seen whether Abbott’s campaign assurances We’re a leader in the global food solution, and you have a vision that he will abolfor the future. Together we can help feed the world. ish both Gillard’s Be part of the world’s largest fertilizer company, and receive mining tax and competitive beneﬁts, advanced training and an opportunity the country’s carto do what you enjoy in a progressive corporation. bon tax will kickstart the minerals industry and bring the econPotashCorpjobs.com omy around.

Faced with a few bad apples, Leonard Banga, owner of Saskatoonbased Xtreme Mining and Demolition Inc., laid off all 200 of his workers in June. The drastic measure followed a series of threats, assaults and confrontations that were documented in a harassment and workplace safety investigation from the Ministry of Labour Relations and Workplace Safety. According to The Star Phoenix, a Saskatoon newspaper, Banga only rehired those who passed an extensive screening procedure, meant to weed out the Hells Angels among his ranks. When Xtreme won its first contracts in 1998, Banga hired experienced employees from previous contractors’ crews, over half a dozen of whom were members of the notorious motorcycle gang. Business went smoothly at first, with Xtreme securing contracts at several Saskatchewan potash mines, including Allan, Agrium, Mosaic Esterhazy and a number of PotashCorp operations. Trouble, however, surfaced last fall when an Agrium Vanscoy worker caught an Xtreme employee sleeping on the job. The Agrium employee was threatened with violence should he report the incident, which he did anyway, and Banga dismissed the dozy biker, beginning an effort to clean up his crew despite enduring threats and violence himself. In January, Banga requested the ministry conduct a safety investigation of his company, which ultimately revealed a number of incidents of harassment and threats, as well as reluctance from Xtreme employees to speak out about the problem. As a result, one Hells Angels member was banned from working as a mine supervisor in Saskatchewan. Following the rehiring process, Xtreme employees have reported that they feel safer on the job, but Banga is not in the clear. The Saskatoon Police have since warned him that he may be in danger.

– Peter Braul

– Dinah Zeldin

Recently elected Australian Prime Minister Tony Abbott is seen as mining-friendly, having campaigned to abolish the country’s controversial mining tax.

We help grow food. And careers.

16 | CIM Magazine | Vol. 8, No. 7

industry at a glance | news Escondida to spend $3.5B on desalination Work began this summer on a new reverse-osmosis desalination plant for Escondida, near Antofagasta, Chile. The investment is designed to provide 2,500 litres per second of desalinated seawater for the mine’s new 152,000-tonne-per-day concentrator facility, known as OGP1. The mine has been desalinating process water since 2006. “Securing a sustainable water supply in the Atacama desert is a major priority for all Chilean copper producers,” said Peter Beaven, BHP Billiton copper president, adding that the new facility will minimize the operation’s reliance on the arid region’s aquifers. BHP Billiton is the majority owner of the mine with a 57.5 per cent interest. Korea’s Doosan Heavy Industries received a contract worth $106 million to supply and install the plant, and to supervise its construction and commissioning. Fresh water could begin to flow from the new plant three years from now, according to company estimates. The mine has benefitted from both higher ore grades this year and the completion of major maintenance work, resulting in a 28 per cent increase in copper production from last year. The new concentrator facility being developed will not only add capacity at the mine, but demolishing the old Los Colorados facility will provide access to – P.B. further high grade ore.

is possible. “If there are issues that the Saami have when it comes to reindeer herding, let’s go ahead and discuss it and see if we can come up with a compromise,” he told the Proactiveinvestors newsletter. The Swedish government recently ruled that mining has a larger public interest than reindeer herding, and

granted Nickel Mountain AB three mining concessions for its Rönnbäcken project, located near Beowulf’s – P.B. resource.

Mo money, no problem With November fast approaching, men from around the world are gear-

Saami protest Swedish iron ore mine Swedish police removed a blockade of indigenous Saami who had prevented access to U.K.-based Beowulf Mining’s Kallak iron ore exploration project, roughly 1,000 kilometres north of Stockholm, in August. The protests targeted test mining that Beowulf needs to carry out in order to evaluate its resource. The Saami have traditionally herded reindeer in the area. Clive Sinclair-Poulton, Beowulf’s chairman, said he believes coexistence October 2013 | 17

news | industry at a glance ing up to grow moustaches for Movember. The global event sees men, or Mo Bros, grow moustaches and gather donations that benefit prostate and testicular cancer research and mental health programs. Women, or Mo Sistas, while not expected to grow moustaches, are also encouraged to take part and raise awareness for men’s health issues. Last year in Canada’s mining sector, 22 teams made up of 343 miners joined efforts and raised $141,208. And with that, the Great Canadian Mining Challenge was born. “It was an idea sparked by a Mo Bro to unite the industry’s efforts and showcase the amazing support by their community for men’s health,” said Movember Canada’s Jeff Lohnes. “The key teams that led the charge in making it possible were the good folks from Teck Resources, Kinross Gold and Aecon Mining. Mo Bros from each of these companies really stepped up with amazing support of Movember.”

18 | CIM Magazine | Vol. 8, No. 7

Matt Rosales, who joined one of Teck’s 12 teams, was proud to contribute to the cause. “The act of growing a moustache makes each one of us a billboard for men’s health issues, and encourages our colleagues, friends and families to take a moment to think about their health and wellness,” he said. “The combination of fun, camaraderie, awareness and fundraising makes this month-long event a good fit for Teck and its employees.” To support your mining Mo Bros and Mo Sistas, visit movember.com and search for the Great Canadian Mining Challenge. – Andrea Nichiporuk

Anglo American pushes ahead with B.C. coal project In August, Anglo American broke ground on its Trend-Roman project, a $200-million expansion of the Trend metallurgical coal mine near Tumbler Ridge, in northeastern B.C. Through the construction of the open-pit operation adjacent to the current Trend mine, the project is expected to increase the life of the facility by 16 years and boost output from 1.6 million to 2.5 million tonnes per annum. The company received an environmental assessment certificate from the B.C. government last December and was granted a mining permit amendment in early August. Some work, including timber

clearing, construction of water management facilities, sediment control structures and access roads, is already underway. “We want to make sure we can use the construction season as much as possible,” said Federico Velásquez, Canadian director of external affairs. The granting of a second permit amendment, expected in the first quarter of 2014, will allow Anglo American to proceed with Phase 2 of construction. This will include the creation of three additional pits, a network of mine access and haul roads, waste rock dams and additional water management structures. In the interim, the company is concluding deals with local First Nations. Economic benefit agreements with the West Moberly First Nation and the McLeod Lake Indian Band have been finalized, as has an agreement-in-principle with the Halfway River First Nations, and a negotiations agreement with the Saulteau First Nations. – D.Z.

Uralkali CEO behind bars Moscow-based Uralkali shook up the potash industry this summer when it announced it would be withdrawing from the trading partnership it had with the Belarus state-owned Belaruskali. Now the company’s CEO, Vladislav Baumgertner, has time to reflect on the decision following his arrest during a visit with the Belarusian prime minister in late August. The Russian government has demanded his immediate release, but at the time of writing, the head of the world’s largest potash producer remains in prison in Minsk, Belarus, accused of “abuse of power and office.” Baumgertner’s arrest came weeks after he announced Uralkali’s withdrawal from Belarus Potash Co., a trading joint trading venture with Belaruskali. Uralkali’s move, allegedly motivated by its partner’s trading outside of their deal, left Belaruskali with limited global trading infrastructure and upset global potash markets. Belarusian authorities claim that Ural-

industry at a glance | news kali managers and shareholders sold off some of their shares before quitting the joint venture and bought them back after prices sank. Baumgertner and other Uralkali staff are alleged to have misused US$100 million and caused damage to the state. According to Uralkali, the arrest was politically motivated and was made â&#x20AC;&#x153;in order to cause damage to Uralkali, which is the main competitor of stateowned Belaruskali.â&#x20AC;? Baumgertnerâ&#x20AC;&#x2122;s lawyer, Dmitry Goryachko, said he will continue to appeal the decision in the Minsk city court. Baumgertner faces two months in a pretrial detention centre and up to 10 years in prison if found guilty. Belarusian officials have also issued arrest warrants for principal Uralkali shareholder, Suleiman Kerimov, and four other company executives who the Belarusian Investigative Committee believes to be implicated. â&#x20AC;&#x201C; D.Z.

New developments at New Prosperity Fish Lake was once again the centre of attention during Tasekoâ&#x20AC;&#x2122;s New Prosperity environmental assessment panel hearing this summer. Local First Nations, members of the public, politicians and environmental groups weighed in with their opinions of the proposed B.C. open pit gold-copper project throughout the 30-day review session, held as part of the environmental review process by the Canadian Environmental Assessment Agency. This marked Tasekoâ&#x20AC;&#x2122;s second attempt to get the federal governmentâ&#x20AC;&#x2122;s approval for its project. In November 2010, the project was turned down due, in part, to potential impacts on fish and grizzly bear habitats. The initial project design, which would see Taseko drain Fish Lake to use as a tailings area, received provincial approval.

In the lead-up to the review, Taseko CEO and President Russell Hallbauer touted the benefits of the $1-billion project, which he expects will create roughly 700 jobs through its 20-year mine life. He added that Taseko had committed to an additional $300 million in spending with its redesigned plans to move the tailings dam and mine waste away from Fish Lake. Some First Nations have opposed the project due to worries that the retooled operation will still negatively affect fish habitat in Fish Lake. To allay these concerns, the company proposed recirculating outflows from Fish Lake into a creek to combat eutrophication and preserve fish habitat. However, three federal departments â&#x20AC;&#x201C; Environment Canada, Natural Resources Canada and the Department of Fisheries and Oceans â&#x20AC;&#x201C; questioned the new method and asked for more information and data on the proposed recircu-

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news | industry at a glance lation plans. “Environment Canada is concerned that the recirculation mitigation measure proposed to manage water quality and the biological productivity of Fish Lake is unproven at this scale, and may require additional intervention to ensure success,” the department noted in a written submission. “The high level of uncertainty regarding the proponent’s proposed recirculation scheme is a particular concern given the stated goal of preserving Fish Lake.” Taseko responded by committing to provide more data and increase future monitoring efforts. The federal government is expected to decide on the project later this year. – Herb Mathisen

African Barrick CEO, COO quit It has been quite a month for African Barrick Gold. Greg Hawkins resigned as the company’s chief executive on August 21 and less than one month later, September 11, the company’s chief operating officer, Marco Zolezzi, also left. The resignations come after the company posted a US$729-million net loss, on the back of a US$741-million asset writedown in the first half of 2013. Hawkins was replaced by Bradley Gordon who has 30 years of gold sector experience. Gordon was a senior executive with Placer Dome and CEO of Intrepid Mines, an exploration and development company with most of its projects in Indonesia. Londonbased African Barrick Gold, of which Barrick Gold is a 74-per-cent owner, has three operating mines in Tanzania, with additional exploration and development projects in Africa. The company was being shopped around as recently as January, before Barrick declined to sell it to China National Gold Group. In its first-half financial report, African Barrick Gold also announced it had identified roughly $185 million in potential cost savings as part of its plan to reduce spending, $100 million of which would likely be realized this year. “It is imperative that we imple20 | CIM Magazine | Vol. 8, No. 7

ment and further expand upon the initiatives identified in the operational review,” said Gordon, upon his appointment. – H.M.

Canadian exploration VP released by kidnappers After being held captive for 221 days, Canadian Gernot Wober was released by Colombian guerrillas in late August. Wober, vice-president of exploration for Braeval Mining Corporation, was taken hostage by the National Liberation Army (ELN) while conducting exploration work at the company’s Snow mine project in Colombia, on January 18. ELN had called for the company to halt its work in the Bolivar region. In July, Braeval cancelled its four Snow mine titles, effectively abandoning the project. Chris Eby, a company spokesperson, said Wober declined to discuss his seven-month ordeal but stated he will stay on with the company. “Gernot has decided that he wants to focus on the future and is eager to get back in the field to look at mining properties for Braeval to develop,” said Eby. – H.M.

Rio Tinto Alcan to close Shawinigan smelter early On August 7, Rio Tinto Alcan announced it would close its smelter in Shawinigan, Quebec, a year early by immediately reducing aluminum production by 50,000 tonnes and incrementally reducing the remaining production completely by November. Aluminum prices reached a five-year high in April 2011, when they hit US$2,667.42 per tonne but had fallen to US$1769.61 by July 2013. This was cited as a factor in the decision to shut down the 72-yearold plant. “Due to dated technology and continued weakness in aluminum prices, Shawinigan’s primary aluminum capacity is not currently sustainable,” said Claudine Gagnon, communication advisor. More than 400 workers were employed at the smelter at the time of the announcement. - H.M.

ACHIEVEMENTS McCombe wins professional geoscientist award Deborah A. McCombe received the 2013 Canadian Professional Geoscientist Award for her contribution to the development, enhancement and practice of professional geosciences in Canada and abroad. McCombe, who is president and CEO of Roscoe Postle Associates as well as chair of the Committee for Mineral Reserves International Reporting Standards (CRIRSCO), helped establish and grow the Association of Professional Geoscientists of Ontario and played a key role in developing and introducing National Instrument (NI) 43-101, which stipulates standards of disclosure for mineral projects which has become a global benchmark. “We are delighted that Deborah McCombe was chosen by our judges to be this year’s award recipient,” said Greg Vogelsang, president of Geoscientists Canada. “Deb is an outstanding and very well regarded Canadian professional geoscientist – both at home and abroad.” *** Accolade for Scorpio Gold The Mineral Ridge gold mine of Scorpio Gold Corp. clinched second prize in Nevada Mining Association’s Mine Operators Safety Awards – Small Surface Category. “We are honoured to be recognized amongst some of the major producers in Nevada for our commitment to worker safety at Mineral Ridge,” said Scorpio Gold CEO Peter J. Hawley. “Our success depends on everyone’s dedication to maintaining a safe working environment.” The Vancouver-based producer owns a 70 per cent stake in the mine; joint venture partner Waterton Global Value L.P. holds the remaining shares.

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Feds extend GEM program Mapping in Canada’s North gets a $100-million boost

Canada’s Geo-Mapping for Energy and Minerals (GEM) program, designed to provide a more comprehensive understanding of northern geology, has been extended into 2020 after the federal government committed an additional $100 million in funding. Prime Minister Stephen Harper announced the program extension in Rankin Inlet, Nunavut, while on his annual northern tour. “Our government will renew funding for Canada’s geo-mapping program, an investment sufficient to completely finish the job,” he said. “In other words, an investment sufficient to create modern regionalscale geological maps and data sets for Canada’s entire North.” “The focus of the program really resonates with the prime minister’s agenda in terms of sovereignty and social and economic development in the North,” said Ross Gallinger, executive director of PDAC, which has been advocating for the GEM extension. “Over the long run, this program will probably stimulate more than $500 million in exploration expenditures in the North and eventually lead to discoveries valued at more than $12 billion,” he predicted. Government figures indicate the first phase of the GEM program generated $40 million in direct employment opportunities and indirect investments totalling more than $300 million. Exploration expenditures by the private sector, as a result of the first phase of the $100-million program that ran from 2008 to 2013, amount to close to $17 million so far and include work in Nunavut’s Melville Peninsula to further explore the Tuktu iron ore discovery and diamond prospecting on southeast Baffin Island. Gallinger says the return on investment for the first GEM program phase is still in its early days. “The second set of maps from the first phase of the program was not released until two weeks ago, so much 22 | CIM Magazine | Vol. 8, No. 7

Courtesy of Natural Resources Canada

by Virginia Heffernan

From left, Natural Resources Canada’s Geological Survey of Canada director general Donna Kirkwood, discusses the geo-mapping of Canada’s North outside Rankin Inlet, Nunavut, with Natural Resources Minister Joe Oliver and Prime Minister Stephen Harper.

of the data is only now being seen,” he said in early September. In late August, the Prime Minister’s Office released 32 datasets, mostly from the Kivalliq region of Nunavut. A massive till survey in the Chantrey Inlet region, northwest of Rankin Inlet, demonstrated the potential for nickel, copper and precious metals, while a new geophysical survey in the Duggan Lake area in the western Kivalliq region revealed evidence of rock types that have a high potential for hosting gold and copper and faulting associated with uranium mineralization. GEM produced more than 700 maps during its first phase, with maps and datasets made public as soon as they were completed. The GEM program’s second phase will continue to record geological structures and their evolution, and model the environments associated with petroleum and mineral deposits, said Jacinthe Perras, a spokesperson for Natural Resources Canada, which oversees the program. By using modern interpretive techniques to analyze data from various sources, including

ground observations, geophysics and the latest geochemical techniques, government geoscientists hope to discover new clues about the region’s resource potential. About 60 per cent of Canada’s North – above 60 degrees latitude – has yet to be mapped using modern mapping standards. GEM 1 involved 21 projects in the three northern territories and the northern parts of Ontario, Quebec, British Columbia, Saskatchewan, Manitoba, and Newfoundland and Labrador. Priority areas under GEM 2 will be determined after consultation with the provinces and territories as well local communities, said Perras. The GEM program is one of several new funding initiatives for resource development in the North, including $5.6 million to fund the creation of a new Centre for Northern Innovation in Mining (CNIM) in Whitehorse, Yukon, and nearly $6 million for aboriginal mine training in the Northwest Territories and Nunavut. The funding announcements are part of a broader

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federal strategy for the North, which includes devolution of land and resource management to the individual territories so that northerners will have more control over decision-making. The prime minister’s recent tour of the North also highlighted that improved geosciences are only one piece of the resource development puzzle in the region. At the August Energy and Mines Ministers’ conference in Yellowknife, N.W.T., Territorial Industry Minister Dave Ramsay requested $600 million in federal funding to improve roads, airports, bridges and other infrastructure over the next decade. “Our two territories have the most undeveloped infrastructure in all of

Canada,” said Tom Hoefer, executive director of the N.W.T. and Nunavut Chamber of Mines. “We have the lowest level of geoscience mapping, we

have the lowest education levels and we have a complex regulatory environment. All of those things are demanding of attention.” CIM

MOVING ON UP Kyle joins Stornoway Diamond board Stornoway Diamond Corp. appointed Hume Kyle to its board of directors. Kyle, a chartered accountant and a chartered financial analyst, was executive vice-president and chief financial officer at Dundee Precious Metals Inc. “Hume’s extensive financial experience in the resource capital markets and in the operation of large scale natural resource businesses will greatly benefit the company as we move forward with the next stage of our evolution, the development of the Renard diamond project,” said Ebe Scherkus, Stornoway board chairman. The Renard project could become a key producer of high value rough diamonds over a long mine life.

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Pipe piling up TransCanada stockpiles pipe as Keystone XL debate rages

TransCanada Corp.’s beleaguered Keystone XL pipeline continues to cost the company money, and not just in lost revenues. More than one billion dollars’ worth of line pipe has been sourced, manufactured and paid for already. And until it goes in the ground, TransCanada is also on the hook for mounting storage and maintenance costs, as hundreds of miles of pipe languish in leased lots across the continent. The $7-billion, 1,900-kilometre crude oil pipeline, first mooted in 2008, has been mired in legislative purgatory since 2010. In the wake of the Deepwater Horizon disaster and an Enbridge pipeline spill in Michigan, the U.S. Environmental Protection Agency ruled that a draft environmental impact study was inadequate. Despite addressing this and other concerns aired since then, TransCanada has seen various state and federal bodies delay their approval of the necessary permits as environmental groups and landowners along the pipeline route have weighed in and public opinion has soured. The project is currently in the hands of U.S. President Barack Obama, who must decide whether the pipeline is in his country’s national interest. Obama may not decide on the project until 2014. In the meantime, TransCanada has completed the lengthy process of preparing the huge infrastructure project for construction. “In the past, the normal regulatory review process for a project like this was between 18 and 24 months,” said TransCanada spokesman Davis Sheremata. “As a result, we often needed to commit to the production of materials to make sure that things were available in a timely fashion.” Long lead time items like steel line pipe, valves, and pump stations were ordered years ago in anticipation of a normal permitting process. TransCanada’s American pipeline manufacturer Welspun has already produced its entire 800-mile allotment for 24 | CIM Magazine | Vol. 8, No. 7

Courtesy of Matt Wansley

By Ian Ewing

The fate of TransCanada’s Keystone XL pipeline project rests on the shoulders of U.S. President Barack Obama. In the meantime, TransCanada has already paid to construct much of the 1,900 kilometres of pipe required for the project and is paying to store it in stockyards across the continent.

Keystone XL. “They can lay pipe faster than we can manufacture it,” explained Welspun president David Delie. About half of that pipe has since been used to build a southern spur from Cushing, Oklahoma, to Houston, Texas. This Gulf Coast project – a project that was approved without any fuss, despite being designed to the same specifications as the line heading north to Alberta. But the remaining 400 miles of Welspun’s 36inch diameter API steel pipe has nowhere to go. TransCanada was forced to reach a deal with Welspun to store the pipe at its plant in Little Rock, Arkansas. Although neither company will disclose the cost of the arrangement, Delie will say that it is a long-term agreement, admitting that 400 miles of pipe in 80foot segments “takes up quite a bit of space” – or close to 80 acres. Canadian manufacturer Evraz faces the same situation. With a contract to produce about half as much pipe as Welspun, Evraz is now storing 250 miles of its product for TransCanada at its facility in Regina, Saskatchewan. Another 230 miles (worth roughly $200

million, according to reports from Washington, D.C.’s National Journal) is stockpiled at a staging area near Gascoyne, North Dakota, Sheremata confirmed. Thus far, TransCanada has spent around $1.9 billion on Keystone XL, with more than half of that devoted to manufacturing the pipe. If Keystone XL ultimately does not receive U.S. government approval, TransCanada will likely be forced to either sell over 600,000 tons of pipe to other pipeline builders or design future projects around its stockpile. And although the pipe for Keystone XL is manufactured to more stringent standards than most customers require, Delie believes that TransCanada would still have to sell it at a discount. Another concern is leaving the pipe out in the open indefinitely. Special coatings, applied when the pipe leaves the mill, are susceptible to deterioration in ultraviolet light. “TransCanada has had us put on a whitewash to protect the outside surface of the pipe,” revealed Delie. Inspections after con-

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struction will ensure the integrity of the pipe and its coating before it goes into operation. Once – or if – Keystone XL is approved, Delie estimates it will take as long as six months to move all the pipe from his storage yard to the staging areas where it will be used. TransCanada expects the project to be complete and in service about two years after getting presidential approval. Until that happens, though, companies are finding other ways to move product. The Wall Street Journal reported in September that American oil refiners are starting to believe that the pipeline may never be built and are looking at other options, primarily rail. However, as the Lac-Mégantic derailment tragedy

showed, transporting oil by rail is not necessarily a better option. And pipeline or no, development in the oil sands is not slowing down. “We remain confi-

dent that Keystone XL will be approved,” said Sheremata. “The need in the market is there for this pipeline.” CIM

ACHIEVEMENT Porcupine Gold Mines picks up reclamation award Goldcorp’s Porcupine Gold Mines received the Tom Peters Memorial Mine Reclamation Award for successfully transforming an industrial wasteland into a recreation area for Timmins residents. The award was presented at the Ontario Mine Reclamation Symposium in June. Goldcorp spent roughly $17 million to complete the reclamation over a period of two years. The Canadian Land Reclamation Association, the Ontario Mining Association and the Ontario Ministry of Northern Development and Mines established the award to promote mine reclamation and to honour achievement in the practice of mine reclamation in Ontario.

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The mining world comes to Montreal Extensive technical program, plenary speeches spark discussion at 23rd World Mining Congress by Herb Mathisen

Mélissa Poirier and Julie Soto

sessions – running simultaMore than 4,300 attenneously over three days, on dees from 65 countries topics ranging from safety, gathered in Montreal for the sustainability and commu23rd World Mining Connity engagement to surface gress to talk business. And mining, coal and mining there was a lot to talk about. economics. Hassani, a chair “It was the biggest technical professor at Montreal’s session, I would say, in the McGill University, said history of a CIM [Convenorganizers double-reviewed tion] and the World Mining abstracts to ensure the preCongress,” said general sentations were of a high chairperson Ferri Hassani. quality, trimming the The August event roughly 1,200 abstracts marked the first time the received down to 550. “I’m congress had been held in The 23rd World Mining Congress, held in Montreal in August, attracted more than 4,300 attendees from 65 countries. really humbled by all the Canada in its 55-year hisfantastic comments that tory and also the first time it was held in conjunction with the Interand Petroleum (ISARC). The technical have come in,” Hassani said after the national Symposium on Automation program was truly exhaustive, with 14 event. “You usually don’t get this.” The event brought mine operators and Robotics in Construction, Mining streams – 20, when including ISARC and suppliers together with researchers and government representatives for four days of workshops, social and networking events, and technical sessions. The congress featured delegations from China, Russia, Ukraine, India, Brazil and many other countries, and was hosted by CIM along with five of Canada’s leading mining universities. At the plenary session, Rio Tinto Alcan CEO Jacynthe Côté explained her company’s approach to lowering costs as it faces falling commodity prices and IMP R E S SED BY T HE W O R K O F VOUS VOUS A AVEZ VEZ É ÉTÉ TÉ IIMPRESSIONNÉ MP R E S SI O NNÉ Canada’s stagnating worker productivA COMPA N Y OR A PROFE SSION A L PAR UNE ENTREPRISE OU UU UN N P AR U NE E N T R EP R I SE O I N YO U R F I E L D ? PROFESSIONNEL DE VOTRE OT RE D DOMAINE O M A INE ? P R O F E S SI O NNEL D EV ity rates, during an era where deposits are getting deeper, ore grades lower and royalty rates are rising due to governYOU HAVE UNTIL VOUS AVEZ JUSQU’AU ments operating in deficit. “Every rock DECEMBER 1ST 1ER DÉCEMBRE must be turned and turned again,” she TO SUBMIT THEIR POUR SOUMETTRE LEURS said, referencing areas that must be NOMINATIONS ONLINE AT CANDIDATURES EN LIGNE looked at for efficiency gains. Investing WWW.CIM.ORG/AWARDS AU WWW.CIM.ORG/PRIX in innovation will be important to finding cheaper and cleaner ways to extract and refine minerals, she added. Picking up on this thread, Anglo American CEO Mark Cutifani delivThe winners will be recognized at the 2014 CIM Convention in Vancouver. Les gagnants seront honorés au gala du Congrès de l’ICM 2014 à Vancouver. ered the most provocative speech of the morning session. He challenged mining professionals to stop thinking

2014 CIM AWARDS

26 | CIM Magazine | Vol. 8, No. 7

PRIX D’EXCELLENCE DE L’ICM 2014

exclusively about the short term and pointed out that the oil and gas industry spends 80 per cent more on a revenue-to-revenue basis than the mining sector on innovation. While mining is a sector that prides itself on continuous and incremental improvement, new – or step-out – technologies are rare, said Cutifani, adding many extraction and production technologies in use today are more than 100 years old. He argued that the industry needs to improve its reputation by ameliorating communications with governments and communities and by explaining its importance to the general population. “Unfortunately, as an industry, we’re not very good at telling our story in a way that regular people can see or, more importantly, feel. There are still far too many people who simply don’t see the link between the role of mining and the indispensability of minerals and metals in a modern, industrialized and highly urbanized society,” he said. “We make life, as we know it today, possible.” Cutifani’s speech had everyone buzzing, including Kyle Krater, a Schulich School of Business Mining MBA student. Looking toward a mining career as a liaison with communities and governments, Krater also found the technical sessions inspiring, particularly the presentation on mining, economic development and aboriginal rights by Ted Moses, president, secretariat to the Cree Nation Abitibi-Témiscamingue Economic Alliance. “There’s no better way to supplement what I’m getting in the classroom than going and hearing from these groups directly,” Krater said, adding the panel question and answer period was equally thought-provoking. “People just had a huge breadth of experience that students in the classroom, at this point in our careers, couldn’t possibly have.” The main theme Krater took away from the conference was the leadership crisis facing the industry, including its difficulties in recruiting young people. “It didn’t seem like anyone had a solid answer for how to fix that problem,” he said, adding these problems will be interesting to mull over and discuss at school this fall. The expo featured representatives from various global jurisdictions that opened the 242 exhibiting companies – mostly suppliers – up to international exposure. “We’re pretty new in the mining market,” said Sophie Savard, marketing manager for Quebec-based Rousseau Metal, explaining her company began marketing its shelving, tool boxes and storage products to the industry in 2012. Savard said she had received leads from Indian companies, as well as representatives from mines and other North American companies. The 24th World Mining Congress will be held in Brazil in 2016. CIM

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The big boom Mt. Milligan mine breathing new life into two B.C. towns

When the lumber industry in British Columbia took a major nosedive in 2008 due to the recession, Mackenzie Mayor Stephanie Killam wondered how – and if – her town would recover. Some 1,000 local jobs disappeared, with mill closures and layoffs associated with the sluggish U.S. housing market. Built as a mill town by Alexandra Forest Industries and Cattermole Timber nearly 50 years ago, Mackenzie has relied heavily on the forestry sector for jobs and economic stability for its 4,500 residents. The town’s prospects hinged on a project that had been in the making for two decades: the Mt. Milligan copper-gold mine, 95 kilometres to the west, which had yet to be developed. However, with the start-up of the much talked about mine on August 15 – and with it expected to reach 60,000 tonnes per day throughput by year’s end – the small town is racing from the recession with a long-term vision and some stability in its sights. Around 80 new families are living in Mackenzie already, said Killam, who was a long-time town councillor before becoming mayor seven years ago. Thompson Creek, the Denver-based miner that took over the project when it acquired Terrane Metals in 2010, expects to employ nearly 350 workers at its open-pit mine. At full capacity, the mine will produce an average of 81 million pounds of copper and 194,500 ounces of gold annually over its projected 22-year life. In 2012, Mt. Milligan pumped nearly $125 million into local businesses and, that November, the number of employees working at the mine peaked at 1,035 during the final phases of construction. As a result, Mackenzie is bustling. Earlier this year, 18 new residential lots were developed and put up for sale. While this may seem like small potatoes, for a town where this kind of residential development has not occurred in 20-plus years, it says a lot about 28 | CIM Magazine | Vol. 8, No. 7

Courtesy of Thompson Creek

by Andrew Livingstone

The Mt. Milligan mine in B.C., seen from above in July 2013. The mine’s start-up in August has helped nearby communities recover from a downturn in the forestry sector.

where the town is heading because of the mine. The town’s industrial area, along a 5,000-foot airstrip, is being redeveloped, and the local co-op is putting in a commercial cardlock fuel stop. The number of doctors in the town has doubled since 2012 (there are now four), and a local developer has plans for a hotel, pub, mall and laundromat, says Killam. While Fort St. James, almost an equal distance from the mine as Mackenzie, was not as hard hit by the recession (three mills closed but two eventually reopened), it is benefiting greatly from Mt. Milligan, said economic development officer Emily Colombo. At least two dozen companies received construction contracts as part of Thompson Creek’s 2012 construction work. Fort St. James residents were at first skeptical about the mine ever opening. “It had been a topic of conversation for decades,” said Colombo. But now it has helped the town become the third-fastest growing community in B.C. Fort St.

James has grown 25 per cent from 2006 to 2011. And this growth is not exclusively mining-related. “We’re also seeing a lot of people coming in the support sectors, like business owners, and the public sector, as in RCMP officers and educators,” she explained. “We have more people than we have houses,” Colombo continued. “We’re almost bursting at the seams. What we’re looking at is a housing shortage.” The town is working to fix the problem: with neighbouring communities Vanderhoof and Fraser Lake, the towns are in talks about how to use regional housing to deal with the shortages. Fort St. James is also developing a housing needs analysis to approach potential developers, said Colombo. As of July, 69 per cent of the mine’s workforce came from the local region (Mackenzie, Fort St. James and Prince George), with 90 per cent of full-time employees coming from within British Columbia, according to the mine’s website. CIM

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

Temporary Foreign Worker Program was designed for a good reason BY PIERRE GRATTON

anada is on the verge of a critical skilled labour shortage, and the mining industry is not exempt. To help address this situation, a variety of public policy tools are required to navigate different staffing challenges. The federal Temporary Foreign Worker Program (TFWP) – recently the subject of controversy, review and reform – is one tool among many designed to do this. The Mining Industry Human Resources Council (MiHR) estimates that the Canadian mining industry directly employed more than 235,000 people in 2012 and that in the next 10 years it will need to add another 145,000 to that labour pool. That represents a 60 per cent increase over current capacity, at a time when the number of retirement eligible workers continues to grow. Over the next decade, mining’s anticipated share of new entrants for the 66 occupations that make up the industry’s core workforce is only 63,350 – less than half of the anticipated need. Unless addressed, industry productivity, competitiveness, investment and socio-economic contributions are all at risk. The federal government has taken some steps to address this problem. The 2013 budget introduced the Canada Job Grant to help meet training needs in high-demand fields and allocated $241 million over five years to support training-toemployment programs for aboriginal youth. On the immigration front, the introduction of an expression of interest system for the Federal Skilled Worker category, and the movement to a “just-in-time” system that recruits and fast-tracks the applications of skilled workers to meet Canada’s labour market needs, are positive development. These initiatives are designed to facilitate the training of Canadians to meet labour demands and enable new immigrants with identified skills to seamlessly become productive citizens in their new communities. But different employment gaps require different approaches. In some instances, miners cannot find Canadian personnel with the skills needed for particular jobs, and unless these jobs are filled, operations simply cannot proceed. The TFWP helps address acute labour demands because it enables employers to hire foreign workers on a temporary basis. This is only permitted when Canadian citizens and permanent residents are not available or qualified to fill the vacancies. When it comes to hiring skilled labour, the Canadian mining industry’s first choice is to hire domestically and, preferably, locally in the communities where companies operate. To facilitate this, companies have made and continue to make significant investments in education and skills training for Canadian workers to give them the tools and knowledge necessary to complete the required work.

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Despite these best efforts, the local, provincial and national labour markets have not always been able to meet certain employment demands. On these occasions, and only after having sought Canadians to fill jobs, the mining sector has resorted to international sources to meet immediate employment needs. The TFWP has enabled the mining sector to fill these gaps without jeopardizing mining operations, thus avoiding disrupting the jobs of thousands of Canadians that do work in the mining industry. Recently, there have been accusations of program abuse across several sectors, with one case levelled against HD Mining regarding its Murray River coal project in British Columbia. Two unions sought to overturn federal government decisions that permitted the company to hire foreign workers. Requiring workers skilled at modern longwall mining techniques, a method not currently used in Canada, the company maintained that it needed to seek workers beyond Canada’s borders. HD Mining was cleared of any alleged wrongdoing in May 2013. Justice Russel Zinn said there was no evidence before the court on which a finding could be made that HD Mining made any misrepresentation and he upheld the government decisions. In light of this and other allegations made about the program, the federal government launched a review of the TFWP, making several changes. It introduced a $275 labour market opinion (LMO) processing fee for any employer who seeks to fill a position with a temporary worker. It also placed restrictions on the languages in which job postings are permitted to be published, namely English and French. The government also instituted a three-month minimum job posting period before a company is eligible to apply for a LMO and introduced a new and more stringent LMO application process. The review also suspended the accelerated labour market opinion (ALMO), and no determination has yet been made as to whether it will be reinstated. ALMO was designed to provide trusted employers, based on historical applications and recruitment practices, with a simplified process to fill temporary and immediate labour gaps. By forcing all companies into the LMO process, and creating the above new rules, companies with pressing employment needs are further removed from locating and hiring needed candidates. In this regard, MAC believes the government should reinstate the ALMO process as soon as possible while ensuring sufficient controls to discourage any abuses. CIM

Pierre Gratton is president and CEO of The Mining Association of Canada.

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EYE ON BUSINESS

Miners reap what they sow with writedowns BY PHILLIP CROWSON

ince the beginning of 2012, mining companies have collectively written off some US$73 billion, of which nearly $30 billion is related to gold mining assets. The rest is spread across a range of different commodities. Each case is no doubt unique, but there are some common themes that raise questions about the way in which companies are being managed. Looking first at the non-gold assets, one major strand in 2013 has been new management teams wiping clean the perceived mistakes of their predecessors. With several leading companies replacing their chief executives, such spring cleaning has accounted for over one third of the writedowns. To the extent that major competitors are writing down assets, it becomes much easier for others to follow suit without attracting too many adverse comments. There is always safety in numbers. As long as the senior management of a company remains in place it has a strong tendency to live with past errors, however costly. This is partly from an unwillingness to recognize that

some acquisitions and investments may have been ill-judged or badly executed, but also from an expectation that things will improve in the near future and the investment will eventually come right. In many instances, favourable market conditions have performed that magic and turned ugly ducklings, if not into beautiful swans then at least into reasonably presentable ducks. In the past year though, economic and market conditions have not been as favourable, and poor investments have become increasingly exposed for what they are. Falling product prices and rising costs have exacerbated the weaknesses of some projects that might always have appeared marginal. That takes us to the writedowns in the gold industry, which are variously attributed to rising costs, unexpected permitting and construction delays and, above all, weaker-than-expected gold prices. The last factor â&#x20AC;&#x201C; weak prices â&#x20AC;&#x201C; is an even more hollow excuse for gold miners than for other sectors, notwithstanding both the levels reached by prices and the widespread forecasts by banks and investment analysts of even higher

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32 | CIM Magazine | Vol. 8, No. 7

columns future prices. The London price averaged $1,573 per ounce in 2011 and $1,669 per ounce in 2012, having briefly peaked at $1,896 per ounce in September 2011. Even into 2012, there were many forecasts of prices comfortably exceeding $2,000 per ounce in the near future. The managers of gold mining companies might well argue that they were in good company in misreading future conditions, that they were misled by the financial community, that the drop in prices was completely unexpected and that the widespread writedowns are merely the consequence. â&#x20AC;&#x153;It werenâ&#x20AC;&#x2122;t my fault, guv.â&#x20AC;? This is where one has to question both the mining companies and the investing community. Yes, price forecasts were too optimistic, and companies were undoubtedly egged on by investors. In some cases, their share prices would have been marked down, and they might have fallen prey to unwelcomed takeovers had they not raised the carrying values of their assets or sought to expand. Yet to base decisions for the longer term on product prices achieved over a brief recent period is the height of irresponsibility. That applies not just to gold but to other products such as copper, iron ore and coal that have also suffered from asset writedowns. In gold, the 10year moving average money-terms price only climbed to more than $1,000 per ounce in June this year, and the five-year moving average to $1,337 per ounce in August. There is no

economic reason why either should persist into the future, but they do incorporate much more historical experience than just the somewhat atypical conditions of the recent past, when interest rates have been held artificially low. Simply, it is a lack of historical perspective that underlies the reasons for many writedowns. Market conditions are continuously evolving, and history does not repeat itself exactly. But there is always a need to examine the experiences and lessons of the past rather than just look at recent trends or at the pronouncements of an increasingly narrow range of market analysts and commentators. The mining industryâ&#x20AC;&#x2122;s corporate memory has contracted dramatically in recent years, with costcutting and changes in personnel. There has been a growing tendency for the industry and financial institutions to rely on a common handful of sources for market analysis and price forecasts, rather than on their own internal expertise and judgement. Like all monocultures, that lays the industry open to a widening range of potential ills. This yearâ&#x20AC;&#x2122;s writedowns are perhaps just one manifestation. CIM

Phillip Crowson is a former chief economist of Rio Tinto, chairman of the European Copper Institute and president of the Mining Association of the United Kingdom. He has written several books and published many papers and articles on aspects of the minerals industry.

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October 2013 | 33

SAFETY

The tough guy problem BY DEAN LAPLONGE

crew of men show me the large hose they use to wash down machinery and clean the site. It’s long. It’s heavy. They insist that the weight of this hose is why women cannot do their jobs. They pass the hose from man to man, all determined to show me the strength they possess. They ask me if I want to hold it too. I decline. Freudian interpretations aside, we can see how these men use this piece of machinery to lay claim to real masculinity. But in the process, they also put themselves at risk. All the men tell me they have suffered injuries to their shoulders while using this hose for extended periods of time. Presumably any woman who might get her hands on this hose would be at a similar risk of injury – that is, if she accepted the challenge to perform the masculine feat necessary to fit in here.

When we investigate the possible impacts of gender on safety in our workplaces, we should not target men specifically. We should ask: How do our organizations and our workspaces encourage both men and women to engage in practices that increase their willingness to take risks? In masculine workplaces, practices of masculinity that promote risk-taking as a way of showing strength also need to be investigated. This is extremely new and challenging work for resource companies. As such, the response is often to ignore it. Safety professionals working in mining, oil and gas, or construction are not required to learn about the impacts of gender on safety. We are failing to respond to the very real impacts of the gender culture on workers’ safety and well-being and this is putting people at risk. For those who want to explore the relationship between gender and safety “Many studies argue that men do, in fact, take more seriously, they should first ensure that risks than women. But this does not mean that men workplace safety professionals are about gender. This should start are naturally unsafe. Instead, males are taught from taught with education about gender as a broad very early on in life that they need to be tough.” concept and then later link gender and safety, as described in the available literature. Safety professionals need to I ask them why they don’t just talk to the safety department learn how to apply this knowledge to how gender relates to to see if somebody can design something less heavy and less safety in their specific workplaces. Safety management systems and safety policies and procelikely to cause injury. They look at me as if I’m a traitor – a man who wants to deny them the very thing they rely on to prove dures should also be reviewed to identify how these may have their masculinity and to prove their superiority over women. been influenced by assumptions about gender and thus further Numerous studies look at the relationship between gender encourage risk-taking practices at work. This is referred to as and safety in a range of disciplines, and these studies consider “gender-mainstreaming” – a review process that helps us idenrisk-taking in many different contexts. The research points to tify the impacts of gender on what we have assumed to be a clear link between gender and safety, yet in resource indus- gender-less systems. tries these subjects continue to be kept well apart. Safety communication practices and campaigns need to be It is simple to claim that men are more prone to taking risks evaluated as well because language and communication are than women. Indeed, many studies argue that men do, in fact, widely recognized to be influenced by gender. take more risks than women. But this does not mean that men Once all this education and review groundwork has been are naturally unsafe. Instead, males are taught from very early completed within the safety department, more focused work on in life that they need to be tough. They later engage in risk- can take place alongside employees to help drive wider worktaking behaviour in order to show they are strong, capable and place discussions and improve understanding about how genin control. And when men do take risks with their bodies and der impacts the way we work. Success in the wider workplace survive unharmed, the reward is often approval. is dependent on quality gender education for safety profesThere is no real masculinity; there are only ever performances sionals and senior personnel. And this is often sensitive and and constructions of gender. This is why, when we first start to difficult work, as it takes employees – particularly those who think about gender and safety, we must avoid stereotyping. have been used to working in highly masculinized industries Women are not less inclined to engage in risk-taking behaviour – way outside their comfort zones. CIM because they are naturally softer, gentler and more nurturing. Laplonge, PhD, is a leading researcher and consultant in the field of Their gender identity often demands far less toughness to be Dean gender, safety and communications. He is the director of Factive shown. But when women work and live in highly masculinized (www.factive.ca), a cultural research consultancy that works with resource in Canada and Australia to address cultural issues in the industry. cultures, they too can adopt risky behaviour because they also companies His book, So, you think you’re tough: getting serious about gender in mining, is see the rewards of successful displays of strength. due out later this year.

34 | CIM Magazine | Vol. 8, No. 7

FINANCE

columns

Reliable feasibility studies key amid gold price volatility BY STEPHEN MLOT

hile the stated aim of mining companies is to maximize shareholder value, many recent projects have failed to live up to the expectations of their feasibility studies and have not delivered value to the shareholders. To change this situation, mining executives must commit the necessary time and resources to planning and strategy optimization and devote more attention to using the right benchmarking data. The costs associated with this effort will be paid back many times over. In theory, a comprehensive feasibility study is intended to demonstrate a project’s technical and economic viability at a level of accuracy sufficient to justify the decision to proceed. If the study results are positive, the identified plan will be implemented quickly. Yet, the failure rate for achieving results predicted by feasibility studies of gold projects is approaching 70 per cent. Many of the new gold mine project feasibility studies have operating cost projections in the lowest quartile of global gold production costs. This seems to illustrate what has become an all too common practice: the overuse of expanding production rates to gain economies of scale. Mines and process plants have become ever larger, mining and processing lower grade material. To achieve the required tonnage throughput, which is beyond what the viable part of the mineralization can sustain, lower-grade material is used to supplement the plant feed. In these circumstances, the high production rate can push down revenue faster than economies of scale can reduce costs. This truly exposes the mine to the negative side of price volatility, since it does not have a grade-based strategy to fall back on when prices drop significantly.

ACHIEVEMENT CIM Annual Convention Expo! gets top marks The Trade Show News Network (TSNN) ranked CIM’s Convention & Exhibition in Edmonton in the Top 50 Canadian Trade Show list for 2012. The CIM Convention and Expo! in Vancouver will take place from May 11-14, 2014. The TSNN is the world’s leading online resource for the trade show, exhibition and event industry since 1996. The TSNN.com event database contains data about more than 25,000 trade shows, exhibitions, public events and conferences. It ranks the top 50 trade shows by net square footage in Canada.

A recent study of feasibility inadequacies, including 105 examples over a 10-year period, showed that up to 70 per cent of the negative issues were caused by controllable factors, not by price assumptions or resource estimates. Particularly troublesome areas were mine and plant design, equipment selection, and costing and scheduling. In order to provide certainty, predictability of results, and insulation against the erratic nature of the gold market, it is important to get the costs and schedules correct, and to optimize the overall mining plan in terms of production rates and cut-off grade policy. This should be done at the prefeasibility stage to ensure only a factually supported and optimized solution is advanced to the feasibility stage. Optimization studies are sometimes done after a major feasibility study in order to “de-risk” the project, but often these studies investigate methods of reducing costs or maximizing the efficiencies of the selected strategy with a view to improving the project’s net present value, rather than looking for better strategies. A benchmarking study is intended to identify performance and productivity. It is part of a larger strategy for operational improvement through measurement, comparative analysis, identification of performance gaps, development and implementation of solutions, and ongoing monitoring. Benchmarking information is indispensable for project evaluation practices because it provides a database of actual operating results from comparable operations. These can be used to validate project inputs and outcomes, and to determine whether they are realistic and achievable. Benchmarking also provides unbiased statistical support for sound investment decision-making and ensures well-considered decisions are made. The result is a more efficient study process. Benchmarking is not only about costs but about what drives the costs and what drives the value generated. The strategic optimization process considers a variety of operating strategies, including production rates and processing feed grades, and is used to identify the set of operating parameters that maximize value return, usually measured by net present value. This set of operating parameters will generate optimum value at any gold price, and operating at this point ensures the greatest buffer against the vagaries of the gold market, which is something shareholders would certainly find valuable. CIM

Stephen G. Mlot, P.Eng., principal mining engineer, has a broad range of experience in mine design and planning.

October 2013 | 35

I N N O VAT I O N

Canada needs to rediscover its innovative streak BY VIC PAKALNIS

he honest truth is that Canada is doing poorly in innovation and failing to invest in research. Particularly in mining, we are losing our edge and becoming less competitive. The World Economic Forum ranks Canada at 21st in innovation and 22nd among Organization of Economic Co-operation and Development countries in expenditures on research and development. This correlation is glaring. Mining research and innovation in Canada needs a rebirth, a renaissance and leadership. The subject has been front and centre at many recent high-profile events. At the World Mining Congress, held in August in Montreal, representatives from around the world heard Mark Cutifani, Anglo American CEO and congress cochair, stress how the global mining industry needs to recog-

haut from Dome and Alfred Powis from Noranda. They had the vision to look at long-term investment in research and innovation. There was a sense of nation-building back then. But the last large investments in mining research and innovation were led by the Ontario Government in 2006, when it matched $5-million investments by both INCO and Xstrata. That took vision, courage and collaboration between government and industry. The industry is in a down cycle, and times will be tough for the next couple of years. We need leadership to position us for the inevitable upturn. We must nurture and develop highly qualified people. Traditionally, in every other down cycle, summer jobs for mining students disappeared, and young engineers-in-training were let go and job offers dwindled. With cutbacks, research and training are discretionary and so get chopped first. The industry’s eye is on the short term and “Industry and government leaders must renew yet investments are required to keep the investments in the mining industry. We need to research and innovation pipeline from drying up. re-establish our leadership role in areas like The mining industry’s research capacity mining safety and mine rescue, mine ventilation is fragile. In other sectors, such as forestry and sustainable mining.” and the automotive industry, the government assists in ensuring the sectors survive a downturn. The forestry sector, for nize that in many areas we are decades behind other sectors instance, gets $100 million per year from government in innovation. On a revenue-to-revenue basis, mining spends sources for research. In January 2013, the federal govern80 per cent less on technology research and development ment announced $250 million for the automotive sector. than the petroleum industry does. He called for long-term This past year, the mining industry received $5.1 million investment in mining and not short-term thinking. over five years for an exploration-related project. Given the And then, at the recent Energy and Mines Ministers Con- mining industry’s contribution to Canada’s economy and its ference in Yellowknife, keynote speaker Kevin Lynch, vice- future, these numbers don’t add up. Here’s a call to arms: Industry and government leaders chair of BMO Financial Group, laid out the problem. Nationally, we rank behind Slovenia and Iceland in research must renew investments in the mining industry. We need to expenditures, with less than one per cent of our national re-establish our leadership role in areas like mining safety gross domestic product going into research. And the figures and mine rescue, mine ventilation and sustainable mining. If are even worse for our industry. The Canadian Chamber of voluntary action isn’t likely, then public policies, such as Commerce, in its 2013 report “Mining Capital,” pointed out improved financial incentives or the establishment of a that our mining sector spends less than $800 million per research fund based on one cent per tonne mined, should be year. This compares to $2.7 billion invested by the Australian instituted. If that sounds onerous, consider that Australia currently devotes five cents per tonne of coal mined to a mining industry annually. But it wasn’t always this way. Think back to the culture of research fund. Such initiatives would ensure a sustainable innovation in the 1970s and 1980s. Canadian remote control future funding stream to once again establish the Canadian technology, such as remote control scooptrams, led the mining industry’s leadership role in mining innovation, techworld. New mining methods like vertical crater retreat also nology, and mining expertise. CIM emerged during this time. Improvements in mechanization led to a decrease in accident rates and costs. We had mining leaders like Mike Sopko and Walter Curlook from INCO, Bill Vic Pakalnis, P.Eng., is the president and CEO of MIRARCO, a mining research James and Warren Holmes from Falconbridge, Henry Bre- organization at Laurentian University in Sudbury, Ontario.

36 | CIM Magazine | Vol. 8, No. 7

upfront GOLDGOLD

Golden fortunes Expansion about to pay off for Lake Shore Gold

Courtesy of Lake Shore Gold

By Graham Chandler

The new ore storage dome at Lake Shore Gold's Bell Creek mill can hold 6,000 tonnes.

n a business like gold production, sometimes it can help to have good timing on your side. Such is the case with Lake Shore Gold Corp., which, with today’s volatile gold prices, is poised to report its first quarter of positive free cash flow in the final three months of 2013. The company completed a major expansion of its milling facility in September and advanced the build-out of its mines in the Timmins Camp. At its new production rate of 3,000 tonnes per day, the company is now targeting 140,000 ounces per year of gold production and cash costs of around US$700 per ounce – about 30 per cent lower than in 2012. The origins of the mill expansion go back to a decision to integrate vertically, after committing to the development in its Timmins West deposit in 2007. “We were doing a review to determine what would be the next thing to do with the company,” recalls Tony Makuch, president and CEO. “We did a strategic review and the best alternative we came up with was to advance the company from an explorer to a producer.” For that to

38 | CIM Magazine | Vol. 8, No. 7

happen, naturally, they would need a milling complex. It so happened that at the same time Goldcorp had the adjacent Bell Creek mill site available for sale. “So we contacted Goldcorp and purchased it in late-2007,” says Makuch. The acquisition of the mill was a timely and strategically important one for the company. “We had completed a prefeasibility study for the Timmins West deposit and identified the opportunity to build the mine to produce 70,000 to 75,000 ounces a year,” says Makuch. With close to one million ounces of reserves to process over the course of its mine life, Lake Shore needed a mill that could do the job. The company has since added the Thunder Creek deposit, directly adjacent to Timmins West, creating a much larger mining operation than was envisioned in 2007.

The race to rehabilitate Goldcorp’s mill site had been put into care and maintenance so there was a considerable amount of work needed to get it operational again. “There was a closure plan done

upfront on the project so we had to do some modifications to bring it up to an operational level and get it permitted,” says Makuch. “We did that and took responsibility for the closure plan for the site.” The process was done in several stages: taking the mill from an initial 800 tonnes per day capacity through to 2,500 tonnes per day capacity by December 2012. This all occurred prior to the price of gold taking its most dramatic tumble in years this past spring. The most recent mill upgrades, which took processing from 2,000 tonnes per day to 2,500 tonnes, were completed at the end of last year and mainly involved expansions to the back-end of the circuit. Major components for this stage of expansion included a thickener, carbon-in-leach tanks and upgrades to piping and water systems. Lake Shore also needed The new truck dump at Lake Shore Gold’s Bell Creek mill can accommodate 80 tonnes at a time. to upgrade the lime system, flocculation plant and a leach tails screening plant. Significant retrofits was 2,540 tonnes per day, slightly better than the mill’s and upgrades were also needed for several key internal sys- existing capacity. tems such as electrowinning. The company got lucky in 2011 with the opportunity to The results to date have been encouraging. For example, purchase a ready-made SAG mill from Metso — a retrofitted average mill throughput during the second quarter of 2013 ball mill that had been built for another client, prior to the

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October 2013 | 39

Courtesy of Lake Shore Gold

GOLDGOLD

upfront Courtesy of Lake Shore Gold

GOLDGOLD

With other projects in Lake Shore’s pipeline, the mill has been expanded with further growth in mind. In fact, the new front-end has been built for a daily capacity of 5,500 tonnes. To expand the entire milling circuit to that level, future upgrades will be mainly on the back-end with costs expected to be considerably lower than those associated with the recent expansion. “The crushing circuit, the ore delivery circuit and the SAG mill itself is capable of producing up to 5,500 tonnes per day,” says Makuch. “What’s required on the downstream end of the circuit would be some Lake Shore Gold’s new grinding circuit boosts the front end capacity of its mill to 5,500 tonnes per day. additional leaching capacity and we would definitely order being cancelled. “That was a good find for us,” says have to upgrade our pumps and pump lines.” Makuch. “We were able to source a mill that would have The company envisions growing its mining operations to been a long lead item. But the fact that we were able to support a long-term production capacity of 5,500 tonnes source it, that it was already constructed and available for each day. “It’s all contingent on further exploration and use, definitely helped us in terms of advancing the project. what’s going on in the gold market, but we have existing It helped us with time, and it helped us understand the resources at Gold River of over a million ounces that have scope of what we needed to build. And it was a perfectly not been developed,” Makuch points out. “Similarly, at our suitable mill for what we wanted to accomplish.” 2011 saw Bell Creek site, we have a large base of resources at depth significant expansions of projects in North and South Amer- that aren’t developed.” ica, so there was considerable demand and pressure on facScaling up in this way is advantageous. “We can now tories to build these plants. “I would say we saved probably grow production without having to add expensive parts to six months to a year and somewhere around five million the mill,” explains Makuch. As production grows, operating dollars,” says Makuch. costs improve. “Over the last year we have taken production The expansion project was not without its worries. “Deal- from 2,000 tonnes per day to 2,500 tonnes per day and now ing with the cost pressures was a challenge,” says Makuch. 3,000 tonnes per day without adding to our workforce,” “There were a lot of expansion projects going on in the Makuch emphasizes. The all-in sustainable cost per ounce – region, including two large open pits and another under- which he says Lake Shore hopes will be around $1,000 at ground mine.” the end of this year – reduces as volume grows. Mark Utting, vice-president of investor relations for Lake Plenty of room to grow Shore, says, with the mill expansion commissioning, this is The latest stage of Lake Shore’s Bell Creek mill evolution an extremely important breakthrough time for the company. is focused on extending the mill’s capacity to upwards of “We have done the mill expansion and we have also been 3,000 tonnes per day. This expansion involves the front, or active in building our Timmins West mine to where we will dry, end of the circuit: mainly completing a truck dump that be supporting somewhere around 140,000 ounces a year of can accommodate 80 tonnes at a time, a crushing system production,” he says. “We have just come through several which features a Metso C110 jaw crusher capable of 500 intensive years of capital investment and now we are at the tonnes per hour, a 6,000-tonne ore storage dome, as well as point where, as our production goes up, the costs come finalizing the instalation of the aforementioned SAG mill down; we start generating cash flow and our capital comes and SAG mill building. That facility began commissioning down because a lot of the work and investments are now and ramp-up in late July and, as of early September, had done.” Indeed, in the current price downturn, that is achieved the new target rate. another example of good timing. CIM 40 | CIM Magazine | Vol. 8, No. 7

upfront GOLDGOLD

Slow start for SART Promising technology could save industry millions in time by Vivian Danielson

Peter Braul

precipitating copper as chalcocite (Cu2S), which is thickened and recovered as a value-added product. Acidification converts the cyanide to hydrogen cyanide (HCN), which is recovered as free cyanide following the addition of lime and recycled back to the leach. Gypsum formed in the lime addition, or neutralization, stage is also recovered.

Baby steps

The newly commissioned SART plant at Kinross Gold’s Maricunga mine

ith discovery rates in decline, gold producers are turning to technology to make unattractive deposits more appealing. In particular, complex gold ores or concentrates, which involve the presence of copper or other base metals that interfere with cyanidation, can be made more valuable through the novel and ever-improving addition of SART technology. During cyanidation, copper and base metals dissolve and bind to cyanide, making it unusable. That process is both costly, since cyanide consumption goes up, and environmentally dangerous, as cyanide bonded to copper is more difficult to break down. SART (sulphidization, acidification, recycle, thickening) is a process designed to resolve these challenges, allowing the recovery and recycling of cyanide with the added advantage of increased revenue from the sale of high-grade copper or zinc sulphide precipitate. But, so far at least, SART has not been as widely adopted as might be expected, with only a few plants built worldwide. The technology was the subject of a number of papers at last month’s World Gold conference in Brisbane, Australia, and real-world experience is building knowledge of how and when to use it. In the SART process, leach solution containing copper cyanide complexes from cyanidation is treated with sulphuric acid and sulphide reagent to break the copper-cyanide complex,

42 | CIM Magazine | Vol. 8, No. 7

Among the presenters at World Gold was Patrick Littlejohn, senior technology development specialist at the Vancouver-based BioteQ Environmental Technologies, experts in industrial wastewater treatment. His company has experience in designing and operating metal recovery water treatment plants, becoming experts in the precipitation, settling and dewatering of metal sulphides. This expertise, along with the company’s involvement with several plants, has helped advance SART technology. Littlejohn says SART has evolved from the initial plant designs, which “suffered from a lack of understanding of how sulphide chemistry behaves in a continuous plant, what factors affect sulphide morphology and stability, and how sulphide chemistry affects reagent consumption.” SART process control has improved through the more sophisticated application of pH and oxididation-reduction potential (ORP) monitoring and instrumentation, Littlejohn says, adding, “BioteQ has successfully used these process controls to produce consistent copper and cyanide recovery while avoiding problems with copper resolubilization, and achieved consistent plant performance and discharge levels results even when there are wide fluctuations to the flow directed to the plant and to the plant feed composition.” The company’s first plant was Lluvia de Oro in Mexico, for NWM Mining. Built in 2008, the SART plant lowered costs, enhanced gold recovery and purity, and recovered a salable copper byproduct. Soon after the plant was commissioned, though, NWM closed the mine as it shifted its focus to developing new deposits. In 2010, BioteQ designed and

upfront GOLDGOLD

commissioned a SART plant at the Mastra mine near Gumushane, Turkey. The plant helped owner Koza Gold to reduce the metallurgical interference of cyanide-soluble copper, improve gold purity, and maintain regulatory compliance for residual cyanide in tailings. In 2011, BioteQ signed a contract with Kinross Gold to review and commission a SART plant being constructed at the Maricunga mine in Chile.

Actual success may vary Paul Breuer, precious metals stream leader for Australia’s Minerals Down Under National Research Flagship at the Commonwealth Scientific and Industrial Research Organisation (CSIRO), says implementation of SART technology is still constrained by the need to treat solution (not slurry), which with counter-current decantation (CCD) separation creates a water balance issue, meaning “high capital costs and a more complex process compared to cyanide destruction technologies.” Breuer says some operations amenable to SART use cyanide destruction instead because of capital cost constraints. “The real sticking point is that the industry is at a place where companies will wear higher opex of cyanide destruction to have a simple and lower-capex process,” he explains. The first commercial SART plant was commissioned in 2004 at Newcrest Mining’s Telfer mine in Australia, a pastproducer that had previously closed in 2000 because of low gold prices. Breuer said Telfer is well-suited to SART because of exceptional levels of cyanide-soluble copper in the pyrite concentrate stream. Its mill has flotation and cyanide circuits. High recoveries of copper and cyanide were achieved in SART, but the sulphide additions necessary to achieve these recoveries were higher than expected. “This problem has to do with retention time in the SART plant,” Breuer says. He and Andrew Simons, a PhD student at Curtin University, co-authored a paper on the subject for the World Gold conference. “Over time, the chemistry of the acidified copper sulphide precipitation unravels and the [precipitated] copper dissolves back into solution as copper cyanide. This process commences within minutes, triggering the need for the extra sulphide,” Breuer adds. “Engineering solutions are out there, but there’s a cost attached.” In any event, the Telfer SART plant’s iffy performance pales in comparison to chronic problems at the low-grade mine, notably production shortfalls, reduced reserves from feasibility study estimates, and production costs that recently topped $1,570 per ounce. Newcrest is scaling back operations amid rumours of a possible closure. The SART process was also used at the profitable Yanacocha mine in Peru, which has produced 26 million ounces of gold for Newmont Mining and Buenaventura since 2003. Built in 2008, the SART plant was effective in terms of recovering copper and cyanide, but the process was often difficult to control and suffered from excessive sulphide consumption and low precipitate grades.

Yanacocha has lower cyanide soluble copper content in its ores than Telfer, resulting in lower precipitate grades, but its problems are common to most SART plants treating cyanide solutions, Breuer says. “The process is robust in the lab and works efficiently at stoichiometric sulphide addition. The issue is when you go to a [full-scale] plant and it’s not necessarily the case,” he explains. Much has been learned from these early plants, however. The investigations by Simons have found that thickening time drastically affects SART performance as sulphide [reaction] loss from the system causes re-dissolution of the copper sulphide precipitate. The sulphide precipitation circuit and its residence time are considered critical to producing high-grade sulphide products. Breuer says instrumentation is available to improve process control and optimization but can be difficult to maintain, resulting in poor reliability. “This is a major challenge as most gold plants today operate on feedback control, through the measurement and analysis of samples, rather than real-time/feed-forward control using online measurements.” Monitoring excess sulphide is an option, Breuer says, but it is not easily achieved, with sulphide-selective electrodes ineffective due to HCN interference. He adds that oxidationreduction potential is an effective indicator of sulphide addition up to the stoichiometric amount but does not provide a quantitative measure for controlling excess addition required by the process. Quantifying copper entering the process is the recommended control parameter. While pH is used to control the acid addition, it does not provide any indication of excess sulphide. “SART helps improve project economics but it’s not a cureall,” Breuer warns.

Cautious evolution Louie Diaz, Kinross communications manager, says the company’s Maricunga SART plant was completed in the second half of 2012. The location is a challenge for the technology, given the high altitude and inherently harsh and windy winters in the Andes of Chile. “The plant was enclosed in a building – a unique feature for the handful of SART plants in the world – to protect it from the weather,” Diaz says. “Proper heating and ventilation were critical to ensure we meet our high safety and operating standards.” The $80-million plant is performing to expectations, Diaz says. “As the SART process is a technologically complex endeavor, we introduced technologies that were not previously used at Maricunga and built the plant with a high degree of automation. We continue to make small adjustments to the plant, including fine-tuning the back end of the process where the copper product is produced.” The Maricunga SART plant is one of the largest in the world, capable of treating 750 cubic metres of cyanide leachate per hour. Assuming its ongoing success, this plant could kickstart broader application of the technology. CIM October 2013 | 43

upfront GOLDGOLD

Savings from the bottom up Large-diameter boreholes increase options for miners

Courtesy of Cementation

by Ian Ewing

enough tolerances for production shaft use – and to save time and money while they are at it.

New ways to use existing technology

Creating large-diameter boreholes in hard rock has been possible since around 2003, when Cementation Canada, which is the contractor behind the shaft at Young-Davidson, brought the technology to North America. The capability is mainly due to the ongoing improvement of raise drill machines. The South African and Australian units of Cementation have been doing large-diameter raise bore holes of up to six metres in diameter in the softer rock of those counAt Aurico Gold’s Young-Davidson mine, Cementation is using a raise drill to create a shaft capable of sustaining production tries for years. By leveraging the rates of 8,000 tonnes per day. overseas units’ experience with large-diameter holes and the Canadian unit’ s experience with medium-diameter (three to At the Young-Davidson mine, 60 kilometres west of four metres) raises in hard rock, the company was able to build Kirkland Lake, Ontario, Aurico Gold is betting on the raise drill machines like the Strata 950, capable of pulling rarely used method of borehole hoisting to extract up large-diameter shafts through hard rock. Now Cementation, to 8,000 tonnes per day from as deep as 1,500 metres which designs and builds the machines itself, has two of only underground. At the brownfield site, home to historical mina handful of similar machines on the continent. ing operations from the 1930s to the 1950s, the existing The other key to allowing high-volume borehole hoisting is underground shafts were unsuitable for the high production the accuracy of the shaft. That comes not from the raise drill rates Aurico was anticipating, says Young-Davidson general machine but from the pilot hole drilled for the raise drill string. manager Luc Guimond. “Borehole hoisting was chosen Here, Cementation uses a device built by Micon, a German because we had infrastructure in place that allowed us to look at this project differently,” he points out. firm. The rotary vertical drilling system (RVDS) is placed on Borehole hoisting has never been considered an ideal the drill string right at the drill bit. The tool uses an internal method of raising production material in mines. Historically, gyroscope to sense any deviation from the desired drilling path imperfect, narrow shafts have limited the volume of material it and uses jacks to push against the drillhole wall in the opposite was possible to raise, by constraining the volume and speed of direction. Constant real-time monitoring above ground the skips used. In fact, until now, borehole hoisting had only ensures incredible accuracy – as little as 20 millimetres, or less ever been a temporary, short-term arrangement until other than an inch, deviation over the length of a 400-metre shaft. extraction routes were completed. “Neither of these are new technologies,” says Cementation It is the confluence and expansion of two existing technolo- president Roy Slack. “But put them together and make them gies that has given hard rock miners like Aurico new options. bigger, and all of a sudden you have a new application.” The first technology is a raise drill machine with the ability to The near-perfectly vertical pilot hole can then guide the create large-diameter boreholes in hard rock. The second is the large-diameter reamer to that same accuracy. The combination ability to drill vertical pilot holes very accurately. Together, of tight tolerances and an enormous shaft allows viable prothese technologies have made it possible for some mines, such duction volumes to be hoisted by permitting larger skips to as Young-Davidson, to create large enough shafts with tight traverse the shaft faster.

44 | CIM Magazine | Vol. 8, No. 7

That sinking feeling? Not here “You have to have certain tolerances within a hoisting plant,” explains Guimond. “In conventional sinking, it’s constantly surveyed as you’re sinking. You can correct it as you’re advancing the sinking face. In this case, you don’t really see the final product until you’ve done the final reaming.” “We’ve been quite successful in pulling these large-diameter holes,” notes Slack. “There are always challenges, whether it’s issues with the ground; sometimes we’ll have the borehole sloughing and we have to deal with that, sometimes there are water inflows, and that’s a particular challenge on its own. But there are different ways to deal with that. We have had some issues over the years, but no problems that have prevented us from finishing any of the holes we’ve started.” Presented with the option, it turned out to be an easy decision for Aurico. “It was substantially cheaper, quicker and a lot safer,” says Guimond, than conventional shaft sinking. “The big driver was schedule, [but] the cost of the excavation itself was also cheaper than conventional methods. We will shave eight months off the total shaft schedule to completion and the cost difference will be about $30 million.” Slack says these kinds of savings are typical. “In an example we looked at recently, the borehole option was about 60 per cent of the cost of a traditional blind sink and saved about 12 months off the schedule.” Trying something new did require Aurico to put substantial trust in their contractor, though. “We were aware of the technology of raise boring,” says Guimond, “but we were always skeptical of being able to drill a fairly long pilot hole and then ream it and make sure it’s within tolerance to maintain its vertical requirement. But the technology has caught up to allow us confidence in going in this direction.”

A MINE OF SOLUTIONS Technical, e econo economic and feasibility studies

Production unaffected

NI 43-101 technical reports

The method is not for every application. The main prerequisite is access, both from the top and bottom of the hole, so the reaming head of the raise drill machine can be put in place underground. “The ground has to be fairly competent,” adds Slack. Also, the size of the shaft is currently limited to around 5.5 to 6 metres. Depending how much ventilation is required, that may not be enough. “Where the conditions are right, though, it is worth considering,” Slack says. In spite of the unorthodox delivery method, production rates at Young-Davidson are not limited by the use of borehole hoisting. Aurico’s mill is currently operating at about 7,000 tonnes per day, of which 1,500 tonnes is coming from the underground operations. As the open pit is phased out over the next several years, however, more and more material will come through the borehole. By 2016, Aurico expects to be milling 8,000 tonnes per day, all from underground. “In terms of production, there’s no real difference,” says Guimond. “At the end of the day, whatever your design capacity for your plant is, you can still achieve that. That’s not going to change. “The advantage is all in the time and cost of raising the hole.” CIM

Mine planning, design and simulation Plant design and simulation Project management EPCM projects Commissioning assistance Power generation Power transmission and distribution Process optimization and control

October 2013 | 45

BREAKING DOWN

COMMINUTION In 2010, a 40-foot, 22-megawatt semi-autogenous grinding (SAG) mill set a world record for grinding power when the Esperanza copper mine put the device, manufactured by FLSmidth, into operation. With low-grade reserves and a high daily throughput of around 90,000 tonnes, three-year-old Esperanza is impressive, but may not the best model for future mines around the world.

By Eavan Moore

The 40-foot, 22-megawatt SAG mill at Antofagasta's Esperanza copper mine and begs the question how much larger can these mills grow?

Energy efficiency The looming problem is not tonnage in itself but in the cost of tonnage, exacerbated by tumbling mills’ inherent inefficiency. Rotating containers tossing rock and steel spend most of the power they consume on generating heat. Ball mills use as little as one per cent of their energy draw to break rock.

The industry is discussing – and in some cases adopting – more complex but potentially more effective and energy-efficient milling circuits that do not rely exclusively on scaling up tumbling mills. In terms of energy use, it can be more cost-effective to prepare ore for the ball mill by sending it through multiple crushing stages rather than recirculating it through a SAG mill. The same staged approach to grinding divides the circuit into coarser- and finer-grinding equipment to more efficiently recover the materials available at different sizes. The last two decades of mill development have produced more equipment suited for size-specific crushing and grinding. High-pressure grinding rolls (HPGR), typically used in the final stage of crushing, compress the coarse ore between two cylinders. They may use 10 to 20 per cent less power than SAG mills. On the other end of the size spectrum, stirred mills grind fine fractions using a rotating shaft within a stationary shell. Stirred mills cut energy use because only the shaft and discs need to be rotated, and because the mills can use small, highvelocity grinding media with a much greater surface area for grinding. They are typically used to regrind ore once it has passed through a ball mill. “These technologies have been discussed for many years,” says Walter Valery, global senior vice-president at Metso Process Technology and Innovation. “For example, we proposed a circuit flowsheet with HPGR followed by stirred mills in conjunction with high-intensity blasting as an energy-efficient alternative over 10 years ago. However, only recently are we seeing HPGR technology considered in most prefeasibility and feasibility studies.” Courtesy of ABB

“If you take a simplistic view of demand increase and declining head grades over the next 20 years, you might have to be processing four times the tonnage that we currently process to make the amount of copper that the world needs,” says Joe Pease, CEO of Xstrata Technology. He notes that energy prices are rising, energy security is falling, and available deposits are becoming more remote and more challenging to extract, further increasing the energy needed for each of those tonnes. If the only problem were accommodating higher tonnages, more grinding power in a standard SAG mill-ball mill processing circuit would suffice. And that is part of the answer. Harri Lehto, technology manager, grinding processes at Outotec, says giant tumbling mills are “more or less a must” for any equipment manufacturer wishing to be taken seriously. Incremental increases in mill size have brought the maximum rating up to 22 megawatts, while 42-foot, 28-megawatt SAG mills have been designed (though not installed). But can they go bigger? “We have been stuck at 40 feet for over 10 years,” says Steve Morrell, a long-time comminution researcher and current managing director of SMC Testing Pty Ltd. The bigger SAG mills use gearless drives, and a number of recent drive failures have led to a general reluctance to push the envelope beyond the 28-megawatt maximum.

Glencore’s McArthur River zinc mine in Australia uses stirred mills for both SAG mill discharge and ultrafine regrinding.

Courtesy of Glencore

Courtesy of Metso

The last five years have seen a quick increase in the power rating of stirred mills.

Costs and benefits Both HPGR and stirred mills have made inroads. One of the have lower operating costs and offer certain savings – for examtwo most widespread suppliers of stirred mills, MetsoMining ple, no need for steel grinding media – but HPGR also require and Construction Technology, has a total of 39 installations in additional auxiliary equipment, precrushing, extra screens, Canada. Paul Cousin, vice-president of metallurgy at Agnico conveyors, storage and dust extraction. Brian Putland, president Eagle Mines, says his company is considering using stirred mill of Toronto-based Orway Mineral Consultants, explains that technology to regrind the ore from its LaRonde mine in Que- those extra items can add up to a high-capital investment combec. What he has heard suggests that the mills yield a better pared to SAG installations. Capital costs reflect energy costs as end-product, adding not just energy efficiency but overall cost well, argues Putland: A full evaluation of the energy used would payback. include the manufacturing and shipping Nonetheless, the inherent conservaof equipment and wear items. tism of the industry slows adoption of Alan Muir, vice-president of metalproven technologies, says Jonathan lurgy at AngloGold Ashanti, says the “The standard should Allen, product manager for stirred mills company considers HPGR at any new at Metso. “Everybody in mineral procesproject but has only installed one such be that the plant is sing knows ball mills,” he says. “So circuit, at its new Tropicana mine in Auswhen a new supplier brings in a new tralia. “That decision was really driven by custom-designed technology, no matter what it is, if it’s the very hard nature of the ore and the for exactly what the unique to one supplier, you’ve got evecost of on-site power generation, which rybody else out there saying it’s a bad is extremely high,” he says. Tropicana ore body needs.” idea. The market penetration just takes runs up power costs of 27 to 30 US cents Joe Pease, Xstrata Technology a bit of time in our industry.” per kilowatt-hour. Capacity is another concern, says “If we take South America, where Allen. Stirred mills were first used for there’s a lot of hydropower production, regrinding so they have a small throughthere the cost is typically in the region of put relative to ball mills, but as their capacity has increased with 9 to 12 US cents per kilowatt-hour,” adds Muir. “So there, it the move to whole ore grinding, so has interest. In 2008, repla- doesn’t really stack up. You would spend more money on capicing one 12-megawatt ball mill would have required a series of tal equipment and not have the savings on power that you need anywhere from two to eight smaller stirred mills. Five years to offset that.” later, Metso is working on a 4.5-megawatt version of its VertiIn Canada, cheap hydropower puts energy costs lower on mill, or vertical stirred mill, and Xstrata Technology offers an the priority list. About 90 percent of Putland’s clients go with eight-megawatt horizontal IsaMill. Stirred mill installations have a conventional SAG and ball mill set-up after considering altermultiplied in the last few years. This includes large-scale adop- native methods. Even Far North projects, where power is tion by Anglo Platinum, which extensively uses horizontal stir- expensive, find that the costs of covering, heating, operating, red mills for tertiary grinding as well as for regrinding. or maintaining additional equipment can outweigh the energy While HPGR technology at first promises large increases in benefits. energy efficiency, more holistic evaluations of HPGR erode the Cousin says HPGR were among the options considered but cost savings that “energy efficiency” measures imply. They may discarded at Agnico Eagle’s evaluation-stage Meliadine gold 48 | CIM Magazine | Vol. 8, No. 7

Courtesy of Agnico Eagle

Courtesy of Metso

Paul Cousin, vice-president of metallurgy at Agnico Eagle Mines, says his company is considering using stirred mill technology to regrind the ore from its LaRonde mine (pictured here) in Quebec.

High-pressure grinding rolls rely on compression rather than impact forces to break rock, and can provide energy savings.

production volume to process in one mill. That presents an opportunity to apply what Powell calls “flexible circuits” that respond to a specific ore, via conventional or novel milling methods as appropriate. AngloGold Ashanti is following this approach at its projects in development. “Just blending everything together through a single circuit is probably not optimal,” agrees Muir. “The trick will be to deveA better circuit lop circuits which have the flexibility to Steve Walters, research director of adapt to different ore types and mainthe industry-funded project Coopera“There’s a big issue tain optimal processing even when the tive Research Centre for Optimising here as to whether they ore changes.” Resource Extraction (CRC ORE), Ore body knowledge is a critical part stresses that focusing on the energy effiwill retreat to what of this approach, and that is one reason ciency of equipment misses the point. they think is safe, or that it has not been more readily taken “It’s like rating a washing machine and up, explains Pease. He estimates that not checking that it cleans the clothes,” whether they’ll evolve knowing what can be done with the ore he says. “We can argue about the effiis about 80 per cent of the work needed. ciencies of HPGR comminution prointo something which is With that in place, each circuit ought to cesses versus a SAG. That’s not the real going to be more require less equipment because it has question here. The performance metric been designed with clinical precision. shouldn’t be the efficiency of the actiefficient, but also more But the individual nature of the test vity; it should be the useful output.” profitable.” work and resulting flow sheet can be By “output,” Walters does not mean off-putting. throughput: he means metal, the ultiSteve Walters, CRC ORE “In theory, it’s there,” says Pease. “We mate unit of success. At the University of have the drill core. We have quantitative Queensland in Australia, CRC ORE and mineralogy. We have diagnostic crushing the Julius Kruttschnitt Mineral Research and comminution and laboratory tests. We can really map the ore Centre (JKMRC), researchers are working on approaches that body and map the metallurgical response and custom-design a process less rock and recover more metal: in other words, how flow sheet for it. I’m not sure we always make use of that as much to do as little work as possible on as little ore as possible. Malcolm Powell, chair of the Anglo-American Centre for as we can, because it seems expensive and time-consuming and Sustainable Comminution at JKMRC, suggests that mines stop takes a fair bit of expertise. It doesn’t suit fast-track engineering blending different ore grades and start separating different and the flow sheet that comes out of that is individual. Perhaps grades into different streams, to be processed in different cir- from the position of the board of directors, they’re saying ‘Unique cuits. The tools to do this already exist; bulk grade detectors design sounds like risky.’ You need to be able to explain to them can already sort out ore, and some large operations already have that it means custom-designed to be lowest cost for this ore, with multiple ore streams, simply because they have too much savings far outweighing the investment in time and design.” project in Nunavut. “It was our belief that HPGR could be wellsuited on an energy basis, because of the high cost of producing power out there,” he explains. “But to our surprise, the design of the overall comminution circuit including an HPGR portion proved to be not as efficient, in terms of overall economics, as a more conventional approach of SAG-ball milling.”

October 2013 | 49

Courtesy of Xstrata Technology

16 attendees – from vendors, operations and engineering companies – came seeking efficiency and productivity increases. “The push for operational efficiency seems to be increasing,” he says. But Walters is not positive that the downturn will inspire innovation. “The mining industry is right on the cusp of change,” he says. “Some mines have started to take a bit more of a flexible approach to how they deal with their ores, but there are very few of them. So given the change in the industry dynamics, there’s a big issue here as to whether they will retreat to what they think is safe, or whether they’ll evolve into something which is going to be more efficient, but also more profitable.” While major innovations are often left to major companies that can afford to open themselves up to such risk, Valery’s experience suggests that solutions could come out of smaller mines as well. “Smaller companies often have more difficulties raising capital than larger companies and therefore need to lower A number of manufacturers, including Xstrata Technology with its Isamill (pictured here), offer stirred mills. capital expenditures and operating expenditures to get their projects off the ground,” he explains. “In Integrating the mine site order to do this, they are more receptive to innovative or alterWhat any mine can and should do, many agree, is to native solutions, which are riskier than the conventional ones.” improve cross-silo communication. That is critical to Pease and Walters’ suggested strategies, which focus on doing work as The future of comminution early as possible: blasting selectively to produce a better feed, What will a standard circuit look like in 10 years’ time? using pre-concentration and crushing to reduce the work done “The standard will be that there is no standard,” Pease ansby more energy-intensive grinding equipment, and producing wers. “I think that’s sort of the problem at the moment, is that the highest grade possible in concentrate, since smelting uses for lack of resources, we design a standard plant. The standard far more energy to remove the same impurities. At Agnico Eagle, should be that the plant is custom-designed for exactly what talk within the operations team now includes discussion of how this ore body needs. And so the standard will consider first of drilling patterns could increase costs on the mining end but all how much fragmentation is done in the mine; it will consireduce the cost of operating comminution equipment. der what can be done with pre-concentration to remove really Powell says the potential benefits of adopting more complex coarse gangue early on; it will then consider a stage grinding controls are apparent and well-supported on a simulation level; and flotation flow sheet to minimize grinding energy. It’ll use the challenge is to demonstrate and quantify those benefits in the least amount of grinding energy on the lowest possible practice. Given the risk-averse climate, only a few mines have tonnage. And that standard approach will build, I believe, volunteered to try out JKMRC initiatives. But Powell believes smaller, more efficient plants.” that the industry as a whole is moving toward a more integrated, Can comminution be done away with altogether? Muir mine-to-smelter perspective. “It’s not obvious in the way busi- thinks that is a question worth posing, and he plans to address nesses are run yet,” he says, “but the way we’re talking to indus- it in a keynote lecture next year. “It’s a little bit provocative to try and the way we think about the problem now is much more say, however, we are being pushed into the corner by rising a systems approach.” costs, dropping feed grades and higher throughput rates, and all we’re trying to do is tweak the existing technologies that we The upside to the downturn have, where we should be really spending more money on In the midst of the last mining boom, when skills were scarce exploring new technology based on different science,” he comand services expensive, redesigning comminution circuits took ments. HPGR use compression force to break down particles a backseat to getting projects up and running. Mining compa- rather than the typical impact forces employed in tumbling nies’ current financial challenges have put a new premium on mills. “If compression is more efficient than impact (at finer sizes) we need to explore what is more efficient than compresoperating what they have with greater efficiency. Grant Ballantyne, a research fellow at JKMRC, has seen atti- sion. We have also started to look at whether we can do in situ tudes change within 18 months. During a workshop held by leaching, which would eliminate the need for mining and surthe Coalition for Eco-Efficient Comminution in 2012, when face operations, grinding and all that kind of stuff. It’s not a techmost metal prices were rising or had hit a plateau, attendees nology I can switch on tomorrow.” But, he says, “I think it’s time emphasized throughput as the financial driver of their commi- we started looking at that as an opportunity worthy of serious nution choices. At another CEEC workshop in July 2013, all consideration.” CIM 50 | CIM Magazine | Vol. 8, No. 7

ANALYSER LA

Avec ce broyeur SAG de 40 pieds et de 22 mégawatts de la mine de cuivre Esperanza à Antofagasta, c’est à se demander jusqu’où ces broyeurs vont-ils grossir?

En 2010, un broyeur semi-autogène (SAG) de 40 pieds (un peu plus de 12 mètres) de 22 mégawatts a établi un record mondial de puissance de broyage lorsque la mine de cuivre d’Esperanza a mis en service cet appareil fabriqué par FLSmidth. Avec des réserves à faible teneur et une haute capacité de production journalière de 90 000 tonnes, le projet Esperanza, qui a commencé il y a trois ans, est certes impressionnant mais ne constitue sans doute pas le meilleur modèle pour les futures mines dans le monde entier. Pour concasser et broyer les tonnages qu’elles souhaitent extraire, les mines devront trouver des solutions autres que de toujours voir plus grand.

Par Eavan Moore October 2013 | 51

Gracieuseté d’Antofagasta

COMMINUTION

Gracieuseté de Metso

Gracieuseté de Glencore

La mine de zinc McArthur River de Glencore en Australie utilise les broyeurs finisseurs pour l’usine de échargement SAG et pour le rebroyage ultrafin.

« En adoptant une vue simpliste de l’augmentation de la demande et du déclin des teneurs du minerai traité pour les vingt années à venir, il faudra peut-être broyer quatre fois le tonnage que nous traitons actuellement pour extraire la quantité de cuivre dont le monde a besoin », explique Joe Pease, PDG de Xstrata Tech. Il fait remarquer que les prix de l’énergie sont en hausse, la sécurité énergétique est en déclin, et les gisements disponibles sont de plus en plus éloignés et difficiles à extraire, ce qui ne fait qu’augmenter l’énergie nécessaire à l’extraction de ces tonnes. Si le seul problème était de parvenir à extraire un tonnage supérieur, il suffirait d’augmenter la puissance de broyage dans le circuit de traitement d’un broyeur SAG ou d’un broyeur à boulets. Mais les broyeurs peuvent-ils être plus gros ? « Depuis plus de 10 ans, nous ne dépassons pas les 40 pieds », déclare Steve Morrell, chercheur de longue date en matière de fragmentation et directeur général actuel de SMC Testing Pty Ltd. Les plus gros broyeurs SAG utilisent des entraînements directs, et au vu du nombre de pannes récentes, on hésite à repousser les limites au-delà des 28 mégawatts maximum.

Efficacité énergétique Le problème imminent n’est pas le tonnage en soi, mais le coût de ce tonnage, lequel est exacerbé par l’inefficacité inhérente aux broyeurs culbuteurs. La majeure partie de l’énergie que consomment les conteneurs pivotants qui projettent des roches et de l’acier sert à générer de la chaleur. Les broyeurs à boulets utilisent moins d’un pour cent de leur consommation d’énergie pour briser les roches. L’industrie examine (et dans certains cas adopte) des circuits de broyage plus efficaces et à meilleur rendement énergétique qui ne reposent pas uniquement sur une augmentation de la taille des broyeurs culbuteurs. En termes d’utilisation énergétique, il pourrait être plus rentable de pré-

52 | CIM Magazine | Vol. 8, No. 7

Nous avons connu une augmentation rapide de la puissance nominale des broyeurs finisseurs au cours des cinq dernières années.

parer le minerai pour le broyeur à boulets en lui faisant subir plusieurs étapes de concassage plutôt que de le faire recirculer dans un broyeur SAG. En adoptant la même approche par étape pour le broyage, on peut diviser ce circuit en un équipement de broyage plus grossier et plus fin afin de récupérer plus efficacement les matériaux disponibles à différentes tailles. Ces deux dernières décennies, le développement des broyeurs a donné naissance à un équipement plus adapté au concassage et au broyage spécifiques à la taille. Des cylindres de broyage à haute pression (HPGR, de l’anglais high-pressure grinding rolls), que l’on utilise généralement à la dernière étape de concassage, compressent le minerai grossier entre deux cylindres. Ils utilisent 10 à 20 % d’énergie de moins que les broyeurs SAG. À l’autre extrémité en termes de taille, les broyeurs agitateurs broient des fractions fines à l’aide d’un arbre tournant à l’intérieur d’une coquille stationnaire. Les broyeurs agitateurs réduisent la consommation d’énergie car seuls l’arbre et les disques doivent pivoter, et également car les broyeurs peuvent utiliser de petits corps broyants à grande vitesse qui ont une surface de contact bien plus grande pour le broyage. On les utilise généralement pour rebroyer le minerai une fois qu’il est passé dans un broyeur à boulets. « Ces technologies sont au cœur des débats depuis de nombreuses années », déclare Walter Valery, vice-président directeur à l’international à Metso Process Technology and Innovation. « Nous avons par exemple proposé il y a plus de 10 ans un schéma de traitement du circuit avec des HPGR suivis de broyeurs agitateurs en conjonction avec le dynamitage à haute intensité comme solution de remplacement à haut rendement énergétique. Cependant, la technologie des HPGR n’est envisagée que depuis peu comme une option possible dans la plupart des études de faisabilité et préfaisabilité. »

Gracieuseté de Agnico Eagle

Dans le cas des projets comme celui du domaine Meliadine d’Agnico Eagle au Nunavut, Paul Cousin, vice-président métallurgie, affirme que son entreprise n’éliminera pas l’approche moins conventionnelle de la fragmentation, notamment les broyeurs à cylindres haute pression et les broyeurs finisseurs.

Coûts et avantages Les HPGR et les broyeurs agitateurs ont fait beaucoup de chemin. L’un des deux plus grands fournisseurs de broyeurs agitateurs, Metso Mining and Construction Technology, dispose de 39 installations au total sur le territoire canadien. Paul Cousin, vice-président de la section Métallurgie de la société Mines Agnico Eagle, explique que cette dernière envisage d’utiliser la technologie de broyeurs agitateurs pour rebroyer le minerai provenant de sa mine LaRonde au Québec. Ce qu’il a entendu suggère que les broyeurs produisent un meilleur résultat, offrant non seulement un meilleur rendement énergétique mais également un retour sur investissement. Néanmoins, la prudence inhérente à ce secteur ralentit l’adoption des technologies éprouvées, explique Jonathan Allen, directeur de produits pour les broyeurs agitateurs à Metso. « Tous ceux qui travaillent dans le traitement des minerais connaissent les broyeurs à boulets. Aussi, quand un nouveau fournisseur propose une nouvelle technologie, quelle qu’elle soit, et si seul ce fournisseur la propose, tout le monde vous dira que ce n’est pas une bonne idée. La pénétration du marché prend du temps dans notre industrie. » À première vue, la technologie HPGR promet une grande efficacité énergétique, mais des évaluations plus holistiques des HPGR viennent jeter un doute sur les économies potentielles qu’impliquent les simples mesures de l’« efficacité énergétique ». Bien que leurs coûts d’exploitation soient moindres et qu’ils génèrent certaines économies en capital (par exemple, vous n’aurez plus besoin de corps broyants en acier), les HPGR requièrent aussi davantage de circuits fermés, et donc des écrans, des convoyeurs et un stockage supplémentaires. Alan Muir, vice-président à la section Métallurgie d’AngloGold Ashanti, explique que la société envisage l’adoption des HPGR dans tous ces nouveaux projets mais n’a installé qu’un seul circuit de ce type sur le nouveau site de sa mine Tropicana

en Australie. « Cette décision a vraiment été motivée par la nature très dure du minerai et le coût extrêmement élevé de la production d’électricité sur site », explique-t-il. Les coûts de l’électricité à Tropicana sont de 27 à 30 centimes de dollars par kilowatt/heure. Au Canada, l’énergie hydraulique coûte peu, ce qui permet de moins se soucier du coût de l’énergie nécessaire. Environ 90 % des clients de Putland choisissent des broyeurs SAG et à boulets classiques après avoir envisagé d’autres méthodes. Même les projets menés dans le Grand Nord, où l’électricité coûte cher, trouvent que les coûts liés à la garantie, au chauffage, à l’exploitation ou à la maintenance de l’équipement supplémentaire peuvent dépasser les gains énergétiques. D’après M. Cousin, les HPGR faisaient partie des options envisagées, mais le projet aurifère Meliadine d’Agnico Eagle dans le territoire du Nunavut les a exclu à l’étape d’évaluation. « Nous pensions que les HPGR auraient été bien adaptés sur le plan énergétique en raison du coût élevé de la production d’électricité sur le site », explique-t-il. « Mais nous avons été très surpris de constater que la conception de l’intégralité du circuit de fragmentation, incluant une partie avec des HPGR, ne s’est globalement pas avéré aussi efficace en termes économiques qu’une approche traditionnelle utilisant le broyage à boulets ou SAG. »

Un circuit plus performant Steve Walters, directeur de la recherche dans le projet CRC ORE financé par l’industrie, insiste sur le fait qu’il ne suffit pas de se concentrer sur le rendement énergétique de l’équipement. « C’est un peu comme si vous évaluiez une machine à laver sans vérifier qu’elle lave effectivement les vêtements », explique-t-il. « On peut toujours élaborer sur l’efficacité des procédés de comminution des HPGR par rapport à celle d’un broyeur SAG, mais là n’est pas la question. L’évaluation de la performance ne doit pas porter uniquement sur l’efficacité de l’activité, mais également sur le rendement utile. » Et par « rendement », M. Walters n’entend pas « capacité » ; il fait bien référence au métal, l’unité finale marquant la réussite. À l’université de Queensland en Australie, des chercheurs du projet CRC ORE et du Centre de recherche sur les minerais Julius Kruttschnitt (JKMRC) travaillent sur des approches qui traitent moins de roches et récupèrent davantage de métaux ; en d’autres termes, ils cherchent comment faire un minimum de manipulations sur une quantité aussi restreinte que possible de minerai. Malcolm Powell, président de l’Anglo American Centre for Sustainable Comminution (le centre anglo-américain pour la comminution durable) au JKMRC, suggère que les mines arrêtent de mélanger différentes teneurs de minerai et commencent à séparer les différentes teneurs en différents niveaux à traiter dans différents circuits. Il existe déjà des outils qui permettent de procéder ainsi. Des détecteurs de la teneur totale peuvent distinguer le minerai et certaines exploitations de grande taille ont déjà divers niveaux de minerais, simplement car leur volume de production est trop important pour être traité par un seul broyeur. C’est donc l’occasion idéale d’appliquer ce que M. Powell qualifie de « circuits flexibles », qui répondent à un

October 2013 | 53

Gracieuseté de Xstrata Technology

quérant plus d’énergie, et produire la plus haute teneur possible dans le concentré étant donné que la fusion utilise bien plus d’énergie pour éliminer les mêmes impuretés. À Agnico Eagle, l’équipe des opérations admet désormais que les mailles de sondage peuvent augmenter les coûts sur le plan de l’extraction minière, mais réduire les coûts d’exploitation de l’équipement de comminution.

Le bon côté du ralentissement économique

Un certain nombre de fabricants, dont Xstrata Technology avec son IsaMill (représenté ici), offre des broyeurs finisseurs.

minerai spécifique par le biais de méthodes de broyage traditionnelles ou innovantes selon le cas. AngloGold Ashanti adopte cette approche pour ces projets en développement. « Tout mélanger par le biais d’un circuit unique n’est sans doute pas une solution optimale », reconnaît M. Muir. « L’astuce consistera à développer des circuits qui ont une flexibilité suffisante pour s’adapter à différents types de minerais et pour maintenir un traitement optimal même lorsque le minerai change. » Les connaissances quant aux corps minéralisés sont essentielles à cette approche, et c’est l’une des raisons pour laquelle elle n’a pas été adoptée plus facilement, explique M. Pease. Selon lui, savoir ce que l’on peut faire avec le minerai représente environ 80 % du travail nécessaire. Ainsi, chaque circuit aura besoin de moins d’équipement puisqu’il aura été conçu avec une précision clinique. Mais la nature individuelle des essais et le schéma de traitement en résultant peuvent se révéler rebutants pour des comités de direction réticents à prendre des risques.

Intégrer le site minier Les solutions les plus économiques n’utilisent pas toujours les nouvelles technologies. Sur le site de la mine Meadowbank au Nunavut, M. Cousin explique qu’Agnico Eagle a envisagé de rejeter le traitement d’une fraction plus dure de minerai, mais a conclu que cela ne pourrait être justifié. Chaque mine peut par contre, comme beaucoup le reconnaissent, améliorer la communication entre silos. Il s’agit d’un aspect critique des stratégies proposées par MM. Pease et Walter, lesquelles impliquent de commencer les travaux le plus tôt possible : optimiser la productivité pour produire de meilleures matières, utiliser la préconcentration et le concassage pour réduire les travaux effectués par des équipements de broyage re54 | CIM Magazine | Vol. 8, No. 7

Durant le dernier boom minier, à une époque où les qualifications nécessaires étaient difficiles à trouver et où les services coûtaient chers, la reconception des circuits de fragmentation avait été reléguée au second plan pour donner la priorité à la mise en route des projets. Les difficultés financières que connaissent aujourd’hui les sociétés minières font qu’elles privilégient l’exploitation de ce dont elles disposent avec une efficacité optimisée. Grant Ballantyne, chercheur universitaire au JKMRC, a constaté des changements d’attitude en 18 mois. Au cours d’un atelier organisé par la Coalition for Eco-Efficient Comminution (CEEC, la coalition pour la comminution éco-efficace) en 2012, alors que le prix des métaux augmentait et avait atteint un plateau, les participants ont accordé une grande importance à la capacité comme moteur financier de leurs choix en matière de comminution. Lors d’un autre atelier de la CEEC en juillet 2013, les 16 participants (des vendeurs et des entreprises d’exploitation et de génie) sont venus dans l’espoir de trouver des solutions pour augmenter l’efficacité et la productivité. « On remarque que de plus en plus d’efforts sont déployés pour améliorer l’efficacité opérationnelle », explique-t-il. Mais M. Walters n’est pas convaincu que le ralentissement économique inspirera l’innovation. « L’industrie minière est sur le point de changer », dit-il. « Certaines mines ont commencé à adopter une approche légèrement plus flexible quant à la façon de gérer leurs minerais, mais on les compte sur les doigts de la main. Ainsi, étant donné le changement de dynamique dans ce secteur, la question principale est de savoir si elles se cantonneront à ce qui est, à leurs yeux, sans risque, ou si elles évolueront vers une option plus efficace mais qui génèrera également plus de profits. »

L’avenir de la comminution À quoi ressemblera un circuit standard dans dix ans ? D’après M. Pease, « la norme sera qu’il n’y a pas de normes. Je pense que le problème aujourd’hui réside dans le fait qu’en raison du manque de ressources, on conçoit du matériel standard. Il faudrait que les équipements soient conçus en fonction de ce que requiert le corps minéralisé. Ainsi, la norme tiendra tout d’abord compte de la quantité de fragmentation qui est faite dans la mine ; elle pensera à ce qui peut être fait au niveau de la préconcentration afin d’éliminer très grossièrement la gangue dès le début ; elle envisagera ensuite un schéma de broyage et de flottation par étape afin de minimiser l’énergie requise pour le broyage. Elle utilisera un minimum d’énergie pour le broyage sur un tonnage aussi faible que possible. Ce genre d’approche standard engendrera, selon moi, des équipements plus petits et plus efficaces. » ICM

TECHNOLOGY >> Safety

Proximity detection takes root underground By Janice Leuschen

Technology developers working to improve personnel safety have struggled with the constraints of the underground mining environment. A steady effort by regulators and miners, however, has helped the industry work through these difficulties and drive the growth of underground proximity detection tools.

Courtesy of Strata Worldwide

Thirty-seven fatalities in 30 years that involved miners being crushed by a continuous mining machine in underground coal mines in the United States were just too many deaths for the regulatory body tasked with mine safety. “It seemed to us there should be a way of keeping the miners away from those machines and avoiding those crushing accidents.” says David Chirdon, new technology program manager of the Mining Safety and Health Administration (MSHA) with the U.S. Department of Labour. In the late 1990s, Chirdon took on the task of finding a solution. “We found some technology called proximity detection systems being developed in other industries that we thought could be leveraged for use in the mining industry,” Chirdon says.

At coal mines in the United States, regulation will soon require all continuous miners be equipped with proximity detection technology, and that requirement will likely extend to more underground mining vehicles in the future.

A difficult environment However, adapting technology used in surface mining or on construction sites proved challenging. Global positioning satellites have unlocked enormous opportunities for surface operations but are useless underground. “It’s a very different application working in much more confined spaces with heavy machinery, plus the equipment has to be explosion-proof – which is a significant design constraint,” Chirdon says. In 2002, MSHA partnered with system design and manufacturer Nautilus International in Burnaby B.C., with the cooperation of a number of mining companies, and began developing such a proximity detection system for continuous mining machines. “We had many failed underground field tests and were repeatedly going back to the drawing board to redesign,” Chirdon says. The original system was developed for diesel machines, he explains. “When the Nautilus system was adapted to an electrical machine, we experienced ‘parasitic coupling,’ which was the electromagnetic signal for the proximity detection system coupling onto the machine’s electrical power cable that distorted the signals resulting in false distance indications.” The system includes antennas on the machine, which create a magnetic field around it. A device, worn by the miner, measures the strength of the field and communicates that informaOctober 2013 | 55

tion by radio signal to a microprocessor on the machine. Depending on the distance from the miner to the machine, the system will respond by either turning on a warning light or stopping the machine. The first field test of the Coal Buddy system was in 2003. “The first successful field test, where the system actually performed as we had intended and was designed to meet the explosion proof requirements, obtaining MSHA approval, was in 2006.”

Growing coverage Today, there are a number of MSHA-approved systems, and the application of the technology is expanding. Alliance Coal Company, which owns the electronics company Matrix Design Group, has installed proximity detection on all of the company’s 78 continuous mining machines. Earlier this summer, Matrix released a second-generation version of the technology called IntelliZone, which expands the proximity detection beyond the continuous mining machines to other mobile haulage machines. The mining industry in South Africa has also been active in developing this technology, says Mike Berube, COO of Strata Worldwide. In November 2010, Strata acquired Frederick Mining Controls (FMC) that developed personnel proximity detection and vehicle collision avoidance products. Strata’s HazardAvert technology is focused on near-field (30 metres or closer) or slow-speed (five miles per hour and less) objects and can be applied to a range of underground vehicles. It also relies on electromagnetics to alert persons on the ground as well as vehicle operators of a potentially dangerous encounter. Dowling, Ontario-based Hard-Line Solutions recently released a proximity detection system called Prox, which is integrated with its Muckmaster Radio Remote Control System for LHD vehicles. “We have several customers who are using our remote control systems, and they wanted a system that would ensure that the operator didn’t get too close to the piece of equipment he was operating,” says Ryan Siggelkow, vicepresident of Hard-Line Solutions. Hard-line’s product also uses magnetic resonance that generates a magnetic field around the LHD. A receiver in the unit and the radio remote control interfaces with the magnetic field and this relationship generates two zones: a kill zone and a warning zone. The sizes of each zone can be adjusted. “If the operator gets into the warning zone, the machines’ lights will start flashing and horns will go off,” says Max Gray, director of sales of North America and global market56 | CIM Magazine | Vol. 8, No. 7

Courtesy of Hard-Line Solutions

To be effective in the hard rock setting, underground proximity detection equipment like Prox by Hard-Line Solutions relies on electromagnetic signals.

ing for Hard-Line. “He is getting into an area he should probably think about getting out of. The red zone will either shut down the machine or it will cease to operate under his control.”

Systems of the future Chirdon says low-frequency electromagnetic systems are preferred in the underground mining application, because the low-frequency nature of the signal can penetrate coal and hard rock and eliminate blind spots around that machine.“The problem,” says Chirdon, “is it is limited to close ranges. When you get into faster moving machines it might not be as effective as some other technologies.” Radio frequency identification (RFID) systems use higher frequency signals and may be more effective at greater speeds. “That’s something that I think we will see eventually in the U.S.,” says Chirdon. Currently, a system created by Becker Mining Systems uses a suite of technologies to extend the reach of its collision avoidance system. Chirdon saw the tool in action at an Xstrata mine in South Africa. “It had the very low-frequency electromagnetic system for the slow moving machines and for the close distances and the higher-frequency RFID systems for the larger distances,” he goes on to say. “It also had a radar system to detect objects. All of these technologies were communicating with each other. I think ultimately that’s where we could get the most effective system, but this is a technology that is still in its infancy.”

Regulation approaching To spark greater uptake of the technology among coal miners, Chirdon explains the regulatory body “proposed a rule to require proximity detection on continuous mining machines in August 2011. That activity really got the attention of the mining industry and that’s when we started to see them actually making the effort to start installing these systems on these machines. “Additionally, the [MSHA] regulatory agenda says that we are planning to publish a second proposed rule in November 2013 that would require proximity detection systems on other mobile machines in underground mines.” In Canada, regulators have not been as active in pushing adoption of the technology. Nevertheless, Glenn Staskus, a mining specialist with Ontario’s Ministry of Labour, confirmed that the provincial ministry is in the midst of its own survey of proximity detection solutions for both underground and surface mines. CIM

SPECIAL REPORT INSIDE: GEOLOGY – THREE DISTINCT REGIONS TRANSPORTATION – IMPROVING INFRASTRUCTURE PROVIDES OPTIONS Q&A – AN INSIDER’S PERSPECTIVE FROM THE MINISTRY OF MINES LEGAL ADVICE – HOW TO NAVIGATE SENEGAL’S MINING LAW PROJECT PROFILE – TERANGA GOLD’S PIONEERING SABODALA MINE PROFIL DE PROJET – LA MINE PIONNIÈRE SABODALA DE TERANGA GOLD

Jeff Attaway

TRAVEL – DOING BUSINESS IN DAKAR

Following in the footsteps of the emperor Senegal’s three distinct regions each hold promise Courtesy of John Atherton

By Pierrick Blin and Antoine Dion-Ortega

The southeast region of Senegal, where Teranga Gold operates its Sabodala mine, is particularly interesting to gold explorers.

n the 13th century, the Emperor of Mali, Mansa Musa, whose domain spanned 10 modern-day countries including Senegal, brought so much gold from his land on his pilgrimage to Mecca that the price of the precious metal plummeted for many years. Although phosphate has been Senegal’s main asset since the mid-20th century, gold might be about to make a comeback, with new discoveries on the way and many mining companies attracted by the political stability of the country. Senegal is divided into three geological zones, with each of them holding notable mineral deposits. The coast between the capital city of Dakar and Saint-Louis, near the border with Mauritania, is composed of black sands rich with zircon and ilmenite, a titanium-iron oxide mineral. These sands, brought in by the sea, could be a product of the crystal shale found in the sand structures of the West African coast. Zircon, which was historically used in the jeweller’s craft, has more recently been applied to the management of radioactive waste. Demand for titanium, a byproduct of ilmenite, has been growing in the last few years, due in large part to the mineral’s use in both biomedical equipment and the aeronautics industry.

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These growing markets have helped launched the Grande Côte Operation SA project (commissioning expected in the first quarter of 2014), which will be the world’s third-biggest zircon mine. Tizir, a joint venture between France’s Eramet and Australia’s Mineral Deposits Limited, owns 90 per cent of the project, with the remainder held by the state. This half-billion-dollar project could produce 85 kilotonnes per annum (ktpa) of zircon and 575 ktpa of ilmenite over a 20-year mine life. Beneath these dunes just a few kilometres inland lies Senegal’s great sedimentary basin, which covers three quarters of the country. To the east, it contacts the Precambrian base of the Mauritade Mountains, and towards the west the basin deepens, reaching six to eight kilometres deep near the coast. On this savannah, phosphate has been king for half a century now. Formed during the middle and lower Eocene epoch, phosphate deposits were first exploited in the 1940s with the opening of the Taiba and Lam-Lam mines in the region of Thies. These deposits contributed to the success of the Senegalese economy for several decades, leading to the construction of most of the country’s infrastructure, including the railway, which was required to

Courtesy of Direction des Mines et de la Géologie

Senegal is home to a vast greenstone belt that has given rise to many mines in neighbouring countries.

BACK TO GOLD The Precambrian rock basement in the east of the country has also caught the attention of exploration companies, especially the paleoproterozoic volcanosedimentary sequences of the Birimian formation that could hold gold deposits. In the last decade, mining activities in the region have intensified. Teranga Gold’s Sabodala mine, the country’s first large-scale gold project, came into operation in 2009. In 2012, it produced more than 210,000 ounces of gold. Other companies, such as Randgold with its Massawa project and Iamgold with its Boto project, are hoping to duplicate Teranga’s success. These companies have been attracted by the Birimian greenstone belt that runs through West Africa. “Essentially, Senegal has extensions of geological units that what we have seen in Ghana, Guinea, and Mali, specifically known

hosts to significant gold deposits,” explains Craig MacDougall, senior vice-president for exploration at Iamgold. The Birimian greenstone belt was even the birthplace for some of these companies. “Iamgold was born out of making a discovery and developing a mine in Mali, and really, our interest in Senegal was tracing those favourable geological environments across the border into Senegal,” says MacDougall. Senegal’s greenstone belt is divided into three stratigraphic units: the Mako Supergroup to the west, the Diale Supergroup in the middle, and the Dalema Supergroup to the east. The Sabodala deposit and many ongoing exploration projects are located in the Mako Supergroup, in a shear, silicified zone containing gold pyrite mineralization. The tectonic structure forms a northeast oriented belt, curving to the northwest near the Malian border. “This corridor is one of the most prolific ones as far as hosting gold deposits,” says Martin Lanctot, mine manager at Sabodala mine. “It’s not only us. Just 40 kilometres away in Mali, there are a lot of other deposits, and if you go east all the way to Burkina Faso, there are operations which are producing gold, and some of those assets belong to other Canadian companies. Basically, we’re all following the same trend, or the same mineralization corridor.” Everybody agrees that current activities in the region are in the early stages, as the whole belt could hold huge potential. “What we’re mining is a portion of a bigger trend that is going across West Africa, if you look at it through a macroscopic perspective,” says Lanctot. “I believe the future in Senegal looks promising,” MacDougall adds. Although Senegal probably will not match its past emperor’s power to change the price of gold, the mining sector could nevertheless contribute to brightening its future. CIM

SPECIAL REPORT

transport the fertilizer to the Port of Dakar, 70 kilometres away. Today, phosphate accounts for 13 per cent of the country’s exports, with overall production nearing one million tonnes per year. Besides the Taiba fields, other known deposits in the northern regions of Matam, Coki, Gossas and Niakhene, which could be of even higher quality, have yet to be developed. These fields could boost the country’s reserves to one billion tonnes and propel Senegal into the world’s top 10 producers, according to Senegal’s Ministry of Mining and Energy. Phosphate fields in the Thies region have been historically controlled by Senegal’s state-owned Industries Chimiques du Senegal. But the government has shown a growing interest in private foreign investment in the mining sector, which could reach $5 billion this year, according to Tracy Weslosky, publisher for the InvestorIntel website.

October 2013 | 59

Fits and starts Some Senegalese transport options improve as others flounder Jeff AttawayMichael Fleshman

by Eavan Moore

DP World has doubled container capacity to 600,000 20-foot equivalent units.

enegal’s transportation network radiates from its western focal point, the coastal capital of Dakar. Recent years have seen considerable investments made towards networks that go into and out of that region, which contains a natural deep-water harbour, a quarter of Senegal’s 13 million inhabitants and about 80 per cent of its economic activity. A new international airport, estimated to cost over $45 million and funded in large part by international loans, has been under construction just outside Dakar since 2007. It is expected to be commissioned in the first quarter of 2014. The first phase of construction will allow a capacity of three million passengers per year, with an ultimate expansion goal of accommodating 10 million – about the same as the Honolulu International Airport. The Port of Dakar manages a growing load of traffic bound for Senegal, Mali, Burkina Faso, Guinea, and Mauritania. Altogether it handled 11.9 million tonnes in 2012, an increase of four per cent from 2011 and 19 per cent from 2008. An exponential increase in container traffic led the terminal operator DP World to construct a new terminal with

60 | CIM Magazine | Vol. 8, No. 7

doubled container capacity, from under 300,000, 20-foot equivalent units (TEU) to more than 600,000 TEU. The new terminal opened in 2011. The government of Senegal has plans for a deepwater port at Sendou, but those have yet to be formalized. Bulk handling facilities at the port are limited to phosphate shipments, according to Simon Finnis, CEO of Grande Côte Operations, which is building a mineral sands project 150 kilometres north of Dakar. The port allocated a berth and a patch of land to Grande Côte, which is using the space to build its own storage facility and automated ship loading facility at a cost of US$25 million. “There are certainly other bulk products being shipped out and coming in but they’re done on a piecemeal basis and they use very rudimentary methods for unloading,” Finnis adds.

ROADS Most of the overland traffic to and from the port travels by road. The 35-kilometre Dakar-Diamniado Toll Highway, which opened this year, is intended to ease congestion and help revitalize low-income Dakar neighbourhoods. Whether it accomplishes that or not, it has helped at least one

Jeff Attaway

“They’ve been bituminized in the last couple of years,” he says.

RAIL

SPECIAL REPORT

Senegal’s 906 kilometres of railway, in theory a helpful link to the Port of Dakar, have a chequered history and uncertain future. The narrow-gauge rail line between Dakar and Bamako, Mali, dates back to the early 20th century. In 2012, stories in the Spanish newspaper El Pais reported that iron ore cars travelling to Dakar could only run one-third full because the track was too weak to sustain full loads, and that passenger service had been cut entirely on the Senegal side for safety reasons. El Pais also reported that in 2011, there was a derailment every three days on average. Transportation by road in Senegal is generally a better option than by rail. An attempt to kick-start investment in the railway system by privatizing it in 2003 did not bear fruit. According to an essay in the local highway user: having a high-quality freeway shaved a Montreal-based Les Journals des Alternatives, the Francohalf an hour off the commute between Dakar and Grande Canadian consortium Transrail, which took over operations, ran a deficit of $20 million over its first three years of Côte. Paved highways extend into eastern Senegal as well. operation and created union unrest by laying off workers. Teranga Gold’s Sabodala gold mine (p. 66) uses one of the In 2011, a Senegalese government railway source estimated few highways in the country: a two-lane asphalt road head- that US$1.6 billion would be needed to strengthen the ing east from Dakar, through the town of Kedougou, and tracks and allow iron ore and phosphates from Malian into Mali. “We have a pretty good highway for approxi- mines to reach Dakar. To date, Transrail has not found such funding. mately 95 per cent of the distance “I think there’s been chronic from Dakar,” says Paul Chawrun, underinvestment on rail in Senegal Teranga’s vice-president of technical for the last two decades,” says Finnis. services. “So, the rail has been underutilized Where the highway stops, users build their own roads out of laterite, and of a poor quality.” an iron-rich soil type that hardens Grande Côte has taken over the to form cheap, all-weather surfaces. management of 100 kilometres of “We just buy the raw material and it rail and is refurbishing it at a cost of comes as loose earth with some about US$40 million over three rocks in it,” says Finnis. “You lay it years. “There was a main rail line out and prepare it properly and it that ran up past the project, and goes down quite hard. It’s really we’re building a spare line into the – Simon Finnis quite good quality.” mine and also renovating the line The laterite needs to be mainbetween the mine and Dakar, so that tained, especially in the rainy season when it becomes slip- we can send our products via rail,” Finnis explains. “We’re pery, but Chawrun says easy access to construction bringing our own locomotives and our own rolling stock as materials and a favourable topography are two of the rea- well. So we’ll own our own transit, so to speak.” Existing sons that road-building costs significantly less than in users will continue to use the rail line. other parts of the world. “It’s nothing [compared] to the Finnis notes that Grande Côte would have had to make cost you would have, say, to build a road in northern investments in transport infrastructure anywhere it operOntario,” he says. ated. “Certainly, we took the position that we wanted to Twenty kilometres away from Teranga’s operation, gold control our own destiny with regard to rail transport, hence exploration company Bassari Resources relies on the public we were happy to invest in the infrastructure,” he says. roads that run within its leases. President Jozsef Patarica However, when asked what is needed for the country’s says about a 10-hour drive gets him from Dakar to the site, future, Finnis returns to rail: “Senegal has a wonderful asset with about 90 per cent of the 700-odd kilometres on paved in the port. If the country was able to link that port with rail roads – an improvement from earlier, pre-asphalt years to other West African nations, that would be a huge when the same distance would be a three-day journey. benefit.” CIM

I think there’s been chronic underinvestment on rail in Senegal for the last two decades.

October 2013 | 61

Ready for takeoff An insider’s perspective on Senegal’s growing mining sector

Courtesy of Alioune Sarr

By Pierrick Blin and Antoine Dion-Ortega

Alioune Sarr (left) coordinates mining projects in Senegal from beginning to end.

fter having worked for 15 years in Canada’s mining sector, Alioune Sarr moved back to his native Senegal in 1998 to continue his career there. He took up a post with the Ministry of Mines as the mining and geology branch’s head of division, project commission. Now the branch’s senior engineer, Sarr monitors and facilitates projects, coordinating mining projects from beginning to end. He has been a mining engineer for 30 years. CIM: What are the major files you are working on these days? SARR: We have been implicated in Teranga Gold’s acquisition of Oromin and its neighbouring concessions, where gold deposits were discovered. Informal gold panning is also keeping us busy in the Kédougou area, as we are trying to make it cohabit peacefully with neighbouring mining projects. Finally, we are working on a study on the legal and institutional framework of the Senegalese mining sector.

Senegal into phosphoric acid and then exported to India, up to 600,000 tonnes annually. Other phosphate deposits have also been discovered, such as the Matam deposit in the northeast. We also have an abundance of limestone that supplies our cement plants. In addition to the Sococim plant, two other plants are about to open, which will bring six million tonnes of additional cement to the market, making Senegal an exporter. In the southeast Kédougou region lies the birrimian geological structure, where we find gold, and heavy and rare metals, et cetera. Teranga Gold is operating the first producing mine there, with 214,300 ounces of gold output in 2012 (p. 66). There are other discoveries, such as Oromin’s 1.1-million ounce gold reserve, and Bassari Resources’ project. It must be noted that the southeast is located in the same geological formation that has already proven its potential in Mali. That has helped us a bit.

CIM: What kind of mining activity is going on in Senegal right now? SARR: Senegal is divided into two geological zones. First, there is the sedimentary basin, where we find phosphate. Senegal has been producing phosphate since the 1960s. Taiba, a well-known company here, is exploiting these deposits. Phosphate production is entirely processed in

CIM: Can you tell us more about the country’s zircon prospects? SARR: Zircon is one of the heavy minerals found along the coastal belt in high grades of around two per cent. Senegal’s first zircon project, Grande Côte, is in its construction phase. It was launched by the Australian company Mineral Deposits Limited (MDL), which sold it to Tizir, a new

62 | CIM Magazine | Vol. 8, No. 7

company owned 50 per cent by MDL and 50 per cent by the French company Eramet. The project will produce about 100,000 tonnes of zircon and 600,000 tonnes of ilmenite per year, starting in 2014.

addition, there are new lines such as the MatamTambacounda Railway that need to be built.

CIM: How do you see the future of mining in Senegal? SARR: Considering the intensity of current exploration CIM: What is the government doing to support the exploration projects, there will be new discoveries. Morocco has large effort? What services do you offer? phosphate reserves but only because the whole territory was SARR: Our task is to list discoveries in the mining sector for subject to intensive surveys. In Senegal, we haven’t even research and exploration. In 2007, explored one third of the sedimentary we created the Mining Sector basin. So there is still a lot to come. Support program (PASMI), initially In the southeast formations, for airborne geophysics. We there are many investment opportuproduced geophysical and magnetic nities, especially for gold. New inframaps for exploration. Besides maps, structure projects, such as the port in 2008 we launched the Mining and the launching of a new mining Land Register and Documentation code, will further facilitate developCentre (CDMC), whose mandate is ment in the sector. As for rare metals to digitize mineral resources in such as lithium, we have interesting Senegal. During the colonial era, the indications that will need to be – Alioune Sarr looked into. Finally, the government country had centralized all federal will soon resume discussions with jurisdictions to Dakar, and so all the documents are located in the same place. We have already ArcelorMittal to restart its iron ore project. digitized about 100,000 of them. We will end up with a I think that conditions are in place for a fresh start in our huge database, with valuable information for the industry. mining sector. CIM Finally, geography software was developed, which will help us manage mineral resources in the country. GIVING BACK

Considering the intensity of current exploration projects, there will be new discoveries.

CIM: How does Senegal compare to other countries in the region? SARR: They say Senegal is the gateway to Africa. It is a politically stable country compared to other countries, with access to the sea and a democracy enabling the development of many projects. Since 2000, the Investment Promotion and Major Projects Agency (APIX) has kept companies informed of business opportunities in Senegal. Finally, we have a very attractive mining code. CIM: What is your strategy for the coming years? What are your main challenges? SARR: A lot of new infrastructure is about to be developed, in particular a new mineral terminal about 40 kilometres from Dakar, the Bargny Port in Sendou, which will receive commodities from the mining sector for export. As for transportation to the port, we need to rehabilitate the Dakar-Bamako Railway that stretches across the country. In

SPECIAL REPORT

CIM: What are the most significant elements of the mining code? SARR: We are still working with the 2003 code, which is well detailed on our website and which consists mostly of tax incentives. We do not require anything at the exploration stage, which can be extended for up to nine years. At the moment, there is also a study being done on the regulatory framework and the institutional reinforcement of the ministry of mining. We are performing an assessment of the whole sector in order to produce a new mining code.

Claude Resources funds education in Saskatchewan Gold mining company Claude Resources has provided $50,000 in funding to the new mining engineering technology program at the Saskatchewan Institute of Applied Science and Technology (SIAST) Kelsey Campus in Saskatoon for a period of five years. Under this initiative, $5,000 will be earmarked for the Claude Resources Awards each year, created to provide bursaries for students who are academically strong or require financial support. Preference will be given to students of aboriginal ancestry. ACHIEVEMENT Weir Canada wins innovation award Engineering company Weir Canada received the Steel Design Award of Excellence in the Industrial Category by the Canadian Institute of Steel Construction (CISC) for the design, supply, delivery and launch of three Multflo reclaim water barges at Suncor’s oil sands operations in Fort McMurray, Alberta. “Effective team collaboration, demonstrated creativity, innovation and co-operation in solving formidable design and delivery challenges is what made this project successful,” said Peter Pavlin, Weir Canada’s engineering manager – engineered products. Weir Canada shared the honour with Suncor Energy, Hall Marine, Supreme Steel and Midwest Constructors. CISC represents the structural steel, open web steel joist, and steel platework manufacturing industries.

October 2013 | 63

LEGAL ADVICE

Answers to 10 key questions about mining under Senegalese law By Mouhamed Kebe

1. What are the relevant government authorities for the mining sector? • Ministry of Mines • National Department of Mines • Departments of Mines in each of the country’s 14 administrative districts 2. What are the main laws that govern mining policy in Senegal? The legal framework governing exploration and mining in Senegal is set out in the Mining Code, the Environmental Code, the General Commercial Law and the Forest Code, all of which have been updated in the last 15 years. They are as follows: • Statute n°2003–36, dated November 24, 2003, enacted the Mining Code • Decree n°2004–647, dated May 17, 2004, implemented the Mining Code • Regulation n°18/2003/CM/ WAEMU, dated December 22, 2003, enacted the WAEMU Mining Code • Environmental Code n°2001-01 of January 15, 2001 • Uniform Act of OHADA relating to General Commercial Law, dated December 15, 2010 • Statute n°98/03, dated January 8 1998, enacted the Forest Code, and its implementing decree is dated February 20, 1998 3. What authorizations and permits are required for a company? The state may authorize a company to undertake mining operations by granting: • A permit for the exploration of mineral substances. • A permit for exploitation. • A mining concession or a small-scale mining permit in the case of a small mine, or artisanal mining licence in the case of artisanal mining. A convention should be signed between the mining title holder and the state, which determines the rights, obligations and commitments related to these titles. The state has the right to at least a 10 per cent interest in all mines operating in Senegal, and may negotiate for more. 4. What restrictions are there on companies that would like to begin mining? As is laid out in the Mining Code, no person shall undertake or conduct an activity regulated by the mining legislation in Senegal without prior authorization of the state. 64 | CIM Magazine | Vol. 8, No. 7

These persons or entities must demonstrate a specific set of technical and financial capabilities before carrying out mining operations. 5. Are there different rules applicable to foreign investment? There is no separate regime for foreign investors. Once authorization to establish or invest in the country is granted, the rules are the same for nationals and foreigners. However, specific rules aiming to make investment more attractive have been set up under the Investment Code. 6. How much does it cost to acquire mining titles? The grant, renewal, extension or conversion and the sale, transfer or farm-out of mining titles for exploration and exploitation are subject to payment of fixed duties, paid in one instalment as provided below: • exploration permits: 500,000 XOF (West African CAF francs) ($1,048) • mining concessions: 7,500,000 XOF ($15,735) • other mineral mining rights: 1,500,000 XOF ($3,144) The above amounts are reviewed every five years by decree. (Note: $1 = roughly 477 XOF)

7. Are there any duties or taxes to be paid to the state for mineral production? Under the Mining Code, any exploitation of mineral resources is subject to payment of an annual mining royalty rate of three per cent of the pithead value. The terms of payment and collection of mining royalties are specified in the implementation decree (n°2004–647). There are no exemptions. 8. What guarantees does the government of Senegal offer to mining operations? Installations and infrastructure built or acquired during the course of mining operations may not be subject to any measures of expropriation, except in circumstances of “force majeure” or public necessity. In such a case, the state must pay a fair compensation. Holders of mining permits have free choice of suppliers, contractors and service providers and partners. However, protocols, contracts and agreements that aim to assign or partially or fully transfer the rights and obligations of the mining title are subject to prior approval of the ministry. The tax and customs regime will not change for as long as a mining title remains valid. As such, throughout the

period of validity of a mining title, changes to the base rules, perception and pricing of taxes and fees are not binding to the holder of the mining title except at the request of the title holder, and provided the title holder adopts the new rules in their entirety. Subject to exchange control regulations and the Mining Code, the holder of a mining title may freely: • Import, without financial regulation, equipment it already owns. • Import goods and services required for its activities. • Export the minerals extracted, concentrates and other derivatives after completing all legal formalities. • Transfer abroad the dividends and the capital invested and the proceeds of liquidation of their assets. • Transfer abroad funds in repayment of debts outside of principal and interest. • Pay foreign suppliers for goods and services necessary for the conduct of mining operations.

• Provide reports and information necessary for the administration of the mines. • Declare any decision to halt exploration or exploitation of mineral substances in advance to the minister of mines. • Indemnify the state or any person or entity against damages that may occur. • Conduct site rehabilitation at the end of each mining title except for areas that continue to be covered under another mining exploitation title.

9. What are the obligations of the holders of mining titles? Holders of titles for exploration must: • Keep proper accounting of expenses for mining operations.

Mouhamed Kebe, based in Dakar, Senegal, is the managing partner of Geni & Kebe and practises in the area of corporate and investment law with a concentration in the Francophone African Region. He is involved in a wide range of corporate transactions including formation of companies and subsidiaries, corporate governance, cross border mergers and acquisitions, and dispute resolution.

10. How are disputes settled in the mining sector? In principle, disputes relating to the implementation and interpretation of the provisions of the Mining Code are under the jurisdiction of the courts of the Republic of Senegal. However, the holder of the title and the Senegalese state can include specific provisions allowing parties to resort to arbitration in case of dispute. CIM SPECIAL REPORT

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October 2013 | 65

PROJECT PROFILE

Ahead of the pack Like many others, Toronto’s Teranga Gold is keeping a prudent eye on its production costs in today’s unpredictable market. The company operates the Sabodala gold mine in Senegal’s southeast corner, near the border with Mali, and 650 kilometres east of the capital Dakar. Thanks to a nimble business plan and some fortuitous timing, Teranga is positioning itself for years of low-cost production.

Courtesy of Teranga Gold

By Chris Windeyer

Teranga Gold, the only large-scale gold miner in Senegal, operates the Sabodala mine near the border with Mali.

eranga Gold slashed exploration and discretionary spending from $35 million per year in 2012 to $8 million this year. “It’s quite a significant reduction in exploration spending we’ve made,” says Richard Young, Teranga’s CEO. That, combined with the 2012 completion of a major mill expansion, is allowing Teranga to proceed at full speed towards generating cash flow from increasing production. The company produced nearly 50,000 ounces of gold during the second quarter of 2013, a nine per cent jump over the same period last year. The mine appears likely to hit its goal of between 190,000 and 210,000 ounces produced

66 | CIM Magazine | Vol. 8, No. 7

this year, at cash costs of $650 to $700 per ounce. Despite the recent period of soft gold prices, Teranga generated profits of $52 million in the first six months of 2013, more than four times what it made in the same period last year.

WELL UNDERSTOOD GEOLOGY Teranga’s holdings at Sabodala include 2.9 million ounces of Measured and Indicated Resources and 1.6 million ounces of Proven and Probable Reserves. The deposit is mostly basalt with some sedimentary rock, explains Martin Lanctot, Sabodala’s mine manager. “There are three gold bearing structures holding the bulk of the min-

Courtesy of Teranga Gold

PROJECT SPECS

OWNERSHIP: PROCESSING PLANT: Teranga Gold – 90% 1 Nordberg C140S single toggle jaw crusher Government of Senegal – 10% 1 Sandvik CH660 cone crusher MINERAL RESOURCES: 1 Outotec 7.3 m x 4.3 m EGL, 4,000 kW SAG mill MEASURED – 1.2 Moz at 1.46 g/t 2 Outotec 5.5m x 7.85 m EGL 4,000 kW ball mills INDICATED – 1.74 Moz at 1.44 g/t 1 Metso HP200SX Cone crusher MINING FLEET: 9 1,240-cubic-metre leach tanks 24 Komatsu HD785-7 trucks 5-tonne batch capacity split AARL elution circuit 3 Komatsu PC3000 shovels 2 Outotec 23 m high-rate tailings thickeners 6 Sandvik Pantera DP1500 blasthole drills 3 Terex Reedrill SKF-12 blasthole drills

LONELY BUT RICH Sabodala’s mill is the only one in Senegal. Built in 2008 by the site’s previous owners, MDL of Australia, the process plant uses a primary jaw and secondary cone crushing system that feeds a SAG mill and a pair of ball mills, followed by a return pebble crusher. The gold is extracted through carbon-in-leach. It is a simple design for a process plant, says English, necessitated largely by the fact that MDL was under enormous pressure from the Senegalese government to get the mine up and running. “They didn’t want someone sitting and speculating on the property. There was a real push to make a producer. So [MDL] took a very simple design approach for the process plant,” English says, adding that MDL ensured their design could easily be expanded. And that is precisely what Teranga did, with an expansion that was completed in 2012, pouring $73 million into doubling the processing plant’s capacity from a nominal

two million tonnes per year to nearly four. With that major piece of capital spending complete, Young says Teranga now enjoys free cash flow: “It allowed us to match the size of our mine with our mill and provide economies of scale. There’s a certain amount of oversight and infrastructure, whether you’re producing 100,000 or 200,000 ounces. “It’s a big company mill. It’s not a mill that was put together by a junior developer on a shoestring. Luckily for us, it sits in the middle of this [greenstone] belt.” Increased mill capacity will be especially important as Teranga works through stockpiles from the first two phases of the main pit at Sabodala. Currently, the company is stripping waste rock in Phase 3 of the four-phase pit, a process that will last until the end of 2014, Lanctot says. Then sights will be set on adjacent satellite deposits at Gora and Niakafiri. Teranga is also in the process of finalizing its takeover of Vancouver-based Oromin Explorations Ltd. Oromin owns the OJVG project, which is comprised of two deposits, Golouma and Masato, located to the south and east of the Sabodala site, respectively. Together, the deposits have Indicated and Inferred Resources of more than 4.5 million ounces. “We’re going to integrate those deposits into our mine plan and that may result in a resequencing of pit development,” Young says. “And we’ll focus on blending the highest grade and the softest material to get the highest production profile.”

SPECIAL REPORT

eralization, one of them is called the Main Flat, the second one being the Northwest Shear, and finally there’s Ayoub’s Thrust,” he says. “There are some substructures, but that’s it in a nutshell. With the way that the geology is set up there, on top of the deposit, especially doing a pushback, you always have the good old Northwest Shear which is bringing in ounces as you go down. Then you enter into the richest part of the deposit, which is the Main Flat.” The operation is “textbook 101 mining” Lanctot says, and the ore “comes to the processing plant really clean.” In total, 5.9 million tonnes of ore were mined in 2012 at an average grade of 1.98 grams of gold per tonne, made up almost exclusively of disseminated gold. Teranga has had to learn how to schedule production to accommodate Senegal’s rainy season, which lasts roughly from June to September. On the day in late August that I spoke to Lanctot and Mark English, Teranga’s vice-president of Sabodala gold operations, a six-hour storm had just dropped 86 millimetres of rain on the mine. “Typically we’re doing the bulk of our stripping during the wet season and we’re sinking our pits during the dry season,” Lanctot says. “So far, it’s been pretty successful.”

INFRASTRUCTURE IN PLACE Sabodala is located on the northwestern end of a massive greenstone belt that stretches through Mali, Guinea, Burkina Faso, and Ghana. It also benefits from being connected to the Senegalese capital and main port of Dakar, via the fully paved Trans-African Highway route that stretches all the way from Dakar to Ndjamena, Chad. That road comes to within 100 kilometres of the Sabodala site, and local paved roads are under 60 kilometres away, Young says, adding, “The transportation is excellent.” The mine also has access to fresh water courtesy of two catchment dams designed between them to hold 11 million cubic metres of water, more than enough for Sabodala to function. Teranga, however, has also secured access rights to use water from the nearby Faleme River in case of shortages. October 2013 | 67

Courtesy of Teranga Gold

The Sabodala mine is expected to produce between 190,000 and 210,000 ounces of gold in 2013.

The one infrastructural shortcoming is electricity. Sabodala is not connected to the grid and must produce its own power with a 36-megawatt heavy fuel oil power station on site, upgraded from the original 30-megawatt capacity at the same time the company expanded the mill. At 25 cents per kilowatt hour, that represents a significant cost “compared to six cents in Quebec,” Young points out. “It does put us at a disadvantage in that perspective, but otherwise the infrastructure is pretty good, especially for a remote place like Senegal.” There are accommodations for 940 of the mine’s 1,200 employees on site. Ninety per cent of Sabodala’s employees are Senegalese (with some 22 nationalities represented in the 10 per cent of the workforce that is expatriate), and Young says the company aims to hire locally as much as possible. Lower-skilled labourers are bussed in from surrounding communities. English says the company does ship in more highly trained expertise from Dakar, but in the process is trying to build a local corps of skilled workers in the eastern part of the country. There are 76 women employed on site, including 13 driving heavy equipment at Sabodala, “which is something not considered normal in this society, so we’re very proud of that,” he adds. One of the main early challenges was finding trained heavy equipment operators, according to Lanctot. When construction began in 2007, hundred-tonne dump trucks were an uncommon site in western Senegal. “For a lot of our operators, the biggest piece of equipment they’d seen before was a bicycle,” he recalls. “We had to train them and make sure to mentor them, and most of all make sure they’re safe operators.” That heavy equipment is provided by Bia Overseas, one of Teranga’s main contractors and a mainstay at 68 | CIM Magazine | Vol. 8, No. 7

African mining sites (see project specs). There are presently 109 Bia staff on site: eight expats and 101 Senegalese. “[Sabodala Gold Operations] only has to drive the machines,” says Bia Overseas spokesman Cedric Leturcq. “We take care of everything else: daily checking, preventive maintenance, wear analysis, repairs and overhauls.”

BUILDING A NATIONAL INDUSTRY Senegal has been aggressive in courting foreign mining investment over the last decade and it is generally regarded as one of Africa’s most open and stable democracies. And if that were not enough, the country’s current president, Macky Sall, is a geological engineer by profession. Senegal’s industry-friendly mining code provides for tax holidays and low royalty rates. Those sweeteners have helped Teranga get through periods of lower gold prices and high capital expenditures like the mill expansion, and allowed it to invest in adding satellite deposits. But Young says it is time for Sabodala to start pitching in more to Senegal’s coffers: the company voluntarily moved from a three per cent royalty to five per cent, and it will not seek an extension of its current tax holiday that ends in May 2015. Teranga is also trying to facilitate economic development in the eastern Kedougou region where it operates, by building access roads and water facilities that nearby communities can also use. “You’ve got to go where the geology is, but ideally you look at jurisdictions where there’s a track record of democracy and stability, that are open to mining and are safe jurisdictions with a trained workforce,” Young says. “While Senegal doesn’t necessarily have that trained workforce, it’s got everything else.” CIM

PROFIL DE PROJET

En peloton de tête Dans le contexte actuel des marchés imprévisibles et comme beaucoup d’autres, Teranga Gold de Toronto veille sur ses coûts de production. L’entreprise exploite la mine d’or Sabodala dans le sud-est du Sénégal près de la frontière du Mali, 650 kilomètres à l’est de la capitale Dakar. Grâce à un plan d’affaires souple et au jeu du hasard, Teranga se positionne pour des années de production à faible coût. Par Chris Windeyer

Avec l’aimable autorisation de Teranga Gold

SPECIAL REPORT

Teranga Gold, la seule minière aurifère de grande échelle au Sénégal, exploite la mine Sabodala à proximité de la frontière du Mali.

ôt en 2013, l’entreprise a réduit ses dépenses d’exploration et discrétionnaires de 35 millions de dollars par année en 2011 et 2012 à 8 millions de dollars cette année. « Nous avons réduit considérablement nos dépenses en exploration », affirme Richard Young, président-directeur général de Teranga. Combiné avec l’achèvement d’un agrandissement majeur d’une usine de traitement en 2012, ceci permet à Teranga de poursuivre ses activités à plein régime, et ainsi de générer de la liquidité grâce à une augmentation de la productivité. L’entreprise a produit près de 50 000 onces d’or au cours du deuxième trimestre de 2013 soit une augmentation importante de neuf pour cent comparée à la

même période l’an dernier. Teranga devrait atteindre son objectif de production annuel situé entre 190 000 et 210 000 onces à un coût de 650 à 700 dollars l’once. Malgré la baisse récente du prix de l’or, Teranga a réalisé des profits de 52 millions de dollars durant le premier semestre de 2013, ce qui est quatre fois plus que les profits réalisés au cours de la même période l’an passé.

CONNAISSANCE APPROFONDIE DE LA GÉOLOGIE Les exploitations de Teranga à Sabodala renferment 2,9 millions d’onces de ressources mesurées et indiquées et 1,6 million d’onces de réserves prouvées et probables. October 2013 | 69

Avec l’aimable authorisation de Teranga Gold

DÉTAILS DU PROJET

PROPRIÉTÉ : Teranga Gold – 90 % Gouvernement du Sénégal – 10 % RESSOURCES MINÉRALES : MESURÉE – 1,2 Moz à 1,46 g/t INDIQUÉE – 1,74 Moz à 1,44 g/t PARC MINIER : 24 camions Komatsu HD785-7 3 pelles Komatsu PC3000 6 perforatrices de trous de mine Sandvik Pantera DP1500 3 perforatrices de trous de mine Terex Reedrill SKF-12

Martin Lanctot, directeur de la mine Sabodala, explique que les gisements sont principalement composés de basalte et de roches sédimentaires. « Il y a trois structures aurifères qui renferment la majeure partie de l’inventaire minéral, l’une est Main Flat, l’autre est Northwest Shear et la dernière est Ayoub’s Thrust », dit-il. « Pour terminer, il y a également certains substrats rocheux. De part la disposition géologique à cet endroit, au sommet du gisement, particulièrement quand vous exploitez par fosses emboitées, vous pouvez toujours compter sur la bonne vieille North Shear qui engrange des onces au fur et à mesure que vous creusez. Ensuite vous entrez dans la partie la plus riche du gisement, soit le Main Flat. » L’exploitation est tirée directement du « manuel d’exploitation minière 101 », affirme Lanctot, et le minerai « qui arrive à l’usine de traitement est très propre. » Au total, 5,9 millions de tonnes de minerai ont été minées en 2012 avec un grade moyen de 1,98 grammes d’or par tonne, composé presque exclusivement d’or disséminé. Il était important pour Teranga d’apprendre à établir un calendrier de production en fonction de la saison des pluies du Sénégal qui dure de juin à septembre. À la fin août, lorsque j’ai parlé avec Lanctot et Mark English, viceprésident de la mine Sabodala, 86 millimètres de pluie venaient tout juste de tomber sur la mine durant une tempête de six heures. « Habituellement nous procédons à la majeure partie de notre extraction pendant la saison humide et nous construisons nos puits pendant la saison sèche », dit Lanctot. « Jusqu’à présent, nous avons connu beaucoup de succès. »

SEUL MAIS RICHE Le broyeur de Sabodala est le seul qui existe au Sénégal. Construit en 2008 près du site de l’ancien propriétaire, la MDL d’Australie, l’usine de traitement utilise un système de broyage à mâchoires principal et un système secondaire à cônes qui alimente un broyeur SAG et une paire de broyeurs à boulets, suivi d’un concasseur de pierres de retour. L’extraction de l’or se fait par lixiviation au carbone. La conception de l’usine de traitement est simple, dit English, rendu nécessaire par une pression énorme qu’exerçait le gouvernement sénégalais sur MDL à faire fonction70 | CIM Magazine | Vol. 8, No. 7

USINE DE TRAITEMENT : 1 concasseur à mâchoires à simple effet Nordberg C140S 1 concasseur à cône Sandvik CH660 1 broyeur SAG Outotec 7,3 m x 4,3 m EGL, 4 000 kW 2 broyeurs à boulets Outotec 5,5 m x 7,85 m EGL 4 000 kW 1 concasseur à cône Metso HP200SX 9 cuves d’extraction de 1 240 mètres cubes Circuit d’élution AARL divisé, capacité de traitement de 5 tonnes 2 épaississeurs de résidus à haut rendement de 23 m Outotecs

ner la mine. « Ils n’acceptaient pas que quelqu’un puisse s’asseoir sur la propriété et spéculer. Un réel effort a été déployé pour établir un producteur. Pour cette raison [MDL] a opté pour une conception très simple pour l’usine de traitement », dit English, ajoutant que MDL s’est assurée que cette conception pourrait facilement prendre de l’expansion. C’est exactement ce que Teranga a fait, avec un agrandissement de 73 millions de dollars terminé en 2012, qui permet de doubler la capacité de l’usine de traitement de deux millions de tonnes nominales par année à presque quatre millions. Maintenant que ce grand projet de dépenses de capital est terminé, Teranga profite d’une disponibilité de flux de trésorerie, dit Young : « Nous avons pu adapter la taille de notre mine avec celle de notre broyeur et permettre des économies d’échelle. Il faut assurer une surveillance et avoir une certaine quantité d’infrastructures, que vous produisiez 100 000 ou 200 000 onces. » « C’est un gros broyeur. Il n’a pas été construit par un petit promoteur avec très peu de moyens. Heureusement, le broyeur est situé au centre de cette ceinture de [roches vertes]. » À mesure que Teranga exploite les réserves des deux premières phases du puits principal de Sabodala, il sera particulièrement important d’augmenter la capacité du broyeur. Actuellement, l’entreprise procède à l’extraction de roches stériles dans la phase 3 du puits à quatre phases, un processus qui se poursuivra jusqu’à la fin de 2014, dit Lanctot. À ce moment-là, des objectifs seront établis pour les gisements satellites adjacents à Gora et à Niakafiri. De plus, Teranga achève la prise de contrôle de Oromin Explorations Ltd, basé à Vancouver. Oromin possède le projet OJVG, constitué de deux gisements, Golouma et Masato, situés respectivement au sud et à l’est du site de Sabodala. Les deux gisements contiennent des ressources présumées et indiquées de 4,5 millions d’onces. « Nous allons intégrer ces gisements dans notre plan de mine, ce qui pourrait entraîner un ré-alignement du développement des puits », affirme Young. « Nous allons nous concentrer sur le mélange des matières à haute teneur et du sol meuble pour maintenir un solide profil de production. »

SPECIAL REPORT

Avec l’aimable autorisation de Teranga Gold

site, dont 13 conduisent de l’équipement lourd à Sabodala, « ce qui n’est pas considéré normal dans cette société et nous en sommes très fiers », ajoute-t-il. Selon Lanctot, les premières difficultés importantes étaient de trouver des conducteurs de matériel lourd. Quand le projet de construction a débuté en 2007, des camions à benne de 100 tonnes n’étaient pas chose commune dans l’ouest du Sénégal. « Pour plusieurs conducteurs, la plus grosse pièce d’équipement jamais vue était un vélo », se rappelle-t-il. « Nous devions les former et les encadrer, mais surtout nous assurer qu’ils sont La mine Sabodala devrait produire entre 190 000 des conducteurs sécuritaires. » et 210 000 onces d’or en 2013. L’équipement lourd est fourni par Bia Overseas, qui est un des sous-traitants importants de Teranga et un pilier principal sur les sites miniers INFRASTRUCTURES EN PLACE Sabodala est située sur la partie nord-ouest d’une cein- africains (voir les détails du projet). Il y a 109 personnes à ture massive de roches vertes, qui parcours le Mali, la l’emploi de Bia sur le site : huit expatriés et 101 sénégalais. Guinée, le Burkina Faso et le Ghana. Sabodala bénéficie « [La mine d’or Sabodala] n’a qu’à conduire le matériel », également d’un lien direct avec la capitale sénégalaise et le précise le porte-parole de Bia Overseas, Cedric Leturcq. port principal de Dakar par la route Transafricaine entière- « Nous nous occupons du reste : vérifications quotidiennes, ment pavée, qui s’étend de Dakar à Ndjamena au Tchad. entretien préventif, analyse d’usure, réparations et remises Cette route se trouve à 100 kilomètres du site de Sabodala en état. » et des routes pavées locales se trouvent à moins de 60 kilomètres, affirme Young, en ajoutant que « le système de CRÉATION D’UNE INDUSTRIE NATIONALE transport est excellent. » Depuis les dix dernières années, le Sénégal a mis en La mine a aussi accès à l’eau douce grâce à deux barrages œuvre une politique active pour attirer des investissements de rétention conçus pour contenir conjointement 11 mil- étrangers dans l’industrie minière et est généralement conlions de mètres cubes d’eau, ce qui est plus qu’il n’en faut sidéré comme l’une des démocraties les plus ouvertes et les pour faire fonctionner Sabodala. Teranga a aussi obtenu les plus stables de l’Afrique. Comme si ce n’était pas suffisant, droits d’accès à l’eau de la rivière avoisinante Faleme en cas le président actuel Macky Sall est un ingénieur géologue de de pénuries éventuelles. profession. L’unique retard en matière d’infrastructures concerne Le code minier du Sénégal favorable à l’industrie offre l’électricité. Sabodala n’est pas reliée au réseau électrique et des congés d’impôt et des taux de redevances plus faibles. doit produire sa propre électricité avec une centrale au Ces incitatifs ont permis à Teranga de traverser des périodes mazout lourd de 36 mégawatts, dont la capacité initiale de de baisse de prix de l’or et d’augmentation des dépenses de 30 mégawatts a été augmentée lors de l’expansion du capital d’immobilisations et ont permis à Teranga d’acquérir broyeur. Une moyenne de 25 cents par kilowatt-heure des gisements satellites. représente un coût important « comparé à six cents au Par contre, Young affirme qu’il est temps pour Sabodala Québec », observe Young. « De ce point de vue, ceci nous de contribuer davantage aux coffres du Sénégal : l’entreprise place dans une position désavantageuse, mais nos infra- a volontairement augmenté le taux de redevances de trois structures sont tout de même assez bonnes, particulière- pour cent à cinq pour cent et ne cherchera pas à prolonger ment pour un endroit éloigné comme le Sénégal. » le congé d’impôt présentement en vigueur se terminant en Le site offre l’hébergement à 940 des 1 200 des employés mai 2015. Teranga tente de faciliter le développement de la mine. Les sénégalais constituent 90 pour cent des économique dans l’est de la région de Kedougou où elle employés de Sabodala (l’autre 10 pour cent représente une exerce ses activités, en construisant des routes d’accès et des main-d’œuvre expatriée composée de 22 nationalités). installations d’approvisionnement en eau que les collectivYoung affirme que l’entreprise a comme objectif d’em- ités environnantes peuvent utiliser. « Vous devez aller là où se trouve la géologie, mais il baucher localement dans la mesure du possible. Les ouvriserait souhaitable de considérer les juridictions qui ont des ers moins spécialisés provenant des collectivités antécédents et une réputation de démocratie et de stabilité, environnantes sont transportés par autobus. ouvertes à l’industrie minière et sécuritaires avec une mainEnglish dit que l’entreprise fait venir par bateau l’experd’œuvre qualifiée », dit Young. « Même si le Sénégal n’a pas tise hautement qualifiée depuis Dakar, tout en essayant de mettre sur pied dans l’est du pays un corps local de tra- nécessairement de main-d’œuvre qualifiée, il possède tout vailleurs spécialisés. La mine embauche 76 femmes sur le le reste. » ICM

October 2013 | 71

elcome to Dakar, a city of one million stretched out along Senegal’s Cap-Vert Peninsula, where the traditional culture and colourful local garb meet urban life and sharply tailored suits. Here, French mixes with Wolof and other native dialects. And visitors will soon discover that above all, it is the city of “teranga,” the traditional Senegalese term for hospitality. Dakar is the closest major centre to Teranga Gold’s Sabodala mine (p. 66) and just 150 kilometres from TiZir’s Grande Côte mineral sands project.

TRAVEL Dakar By Krystyna Lagowski

STAY

The best hotels line the waterfront in the upscale Fann Corniche neighbourhood. These include the Radisson Blu in the embassy district which is 13 kilometres from the airport. The hotel has access to the beach and features an Olympicsized pool, a poolside

Courtesy of Radisson Blu

WHERE TO

bar and an underground shopping mall. Four kilometres further from the airport, the Terrou-bi Dakar is also in the Fann Corniche and features a private beach. The waters off Dakar boast marlin and sailfish, and the hotel concierge can help you arrange a day out on the water.

www.radissonblu.com/hotel-dakar www.terroubi.com

DINE

Courtesy of La Fourchette

72 | CIM Magazine | Vol. 8, No. 7

There are plenty of good dining options in the plateau neighbourhood, a 10minute cab ride from Fann Corniche. Traditional Senegalese food takes advantage of abundant fish but also offers many types of meat stew, usually served with rice or couscous.

La Fourchette

Chez Loutcha

Thomas Sly

Jose Pereira

WHERE TO

(4 rue Parent) combines French, Asian and Mexican cuisine. Here, a sushi or sashimi starter can be followed by a chilli main. Meals from $29 to $60

Toukouleur

(101 rue Moussé Diop) is a historic downtown Dakar eatery, where you find local fare in generous portions. Sample everything from Cape TIP Verdian to Senegalese 10% and other gratuity African in a restaurant is considered dishes. generous. Meals from $4 to $15

(122 rue Moussé Diop) features ample patio seating, dark red interior and an openplan kitchen, so you can watch as dishes like carpaccio of thiof (white grouper) and shoulder of lamb with aubergine are prepared. Meals from $21 to $26.

Presse Café (at the corner of Boulevard des Madeleines and rue Carnot) is a Canadian-owned coffeehouse that serves the tastes of home.

HOW TO GET THERE

Delta, South African, Air Canada, KLM, United, and Air France fly to Dakar from Canada, with one or more stops. The trip is between 14 hours to 27 hours in length, and ranges from about $1,600 for economy to around $8,400 for first class.

Radio Nederland Wereldomroep

WHERE TO

EXPLORE

Arrive well ahead of the ferry departure for L’île de Gorée, as it fills up quickly.

haunts the island’s past. L’île de Gorée is designated a UNESCO World Heritage site and includes “the Castle,” a fortress originally built by the Dutch in the 17th century. The stunning Botanical Gardens, planted by the French in 1667, and the Hostellerie du Chevalier de Boufflers, a quaint hotel and restaurant named after the first French governor of Senegal are both worth the visit.

Start by purchasing a small phone and get a local number to avoid expensive charges. Use Wi-Fi and Skype wherever possible. Check with your Canadian provider to get the best package for Africa. Cash is king. However, credit cards are accepted, and ATMs usually work, although not always. Although the euro is the most commonly exchanged currency, you can exchange both Canadian and U.S. dollars. It is wise not to take more than 50,000 XOF (West African CFA francs – about C$100) out of

the country. If customs officers threaten to confiscate your cash, simply ask for a minute to call your friends at the Canadian Embassy.

Pre-reserve a shuttle to the airport with your hotel concierge.

At the airport, most people must take a shuttle bus to customs. Lines can be long, especially if the plane is landing in the evening. Try to be last on the bus, so you can be first out! Ensure your customs form is completed.

The best way to get around is by cab. Many are in need of repair but can still be safe. Use good judgement.

The customs process is fast – you will be asked for an electronic fingerprint of your right index finger, and your photo will be taken.

Cordelia Persen

TO CONTACT

TIP $1 = 477 XOF as of 09.19.2013

HOW TO

FIT IN

Avoid writing on your or someone else’s business card.

Some general tips for business communi- Eye contact, especially with elders, can be cation: seen as arrogant. If you are handed a business card, study it Business meetings are for a moment before quite formal, especially at the outset. tucking it away.

WHO

The cab ride from the airport to the Radisson Blu should not be more than 5,000 XOF, or about C$10. A trip into town should be about 2,000 to 3,000 XOF.

SPECIAL REPORT

Discover Senegal’s history at L’île de Gorée, just a 30minute ferry ride from Dakar. Here, the pace is slower and the handsome streets are lined with pastelcoloured colonial buildings. La Maison des Esclaves, one of the oldest buildings on the island, is a museum that recounts the story of the notorious slave trade TIP that

AROUND

Initsogan

Jose Pereira

GETTING

The Senegalese are non-confrontational and may avoid an unpleasant topic for as long as possible. Senegalese businesspeople may agree to unrealistic deadlines in order to close a deal.

CANADIAN EMBASSY Rue Galliéni x Amadou Cissé Dia, +221 (0)33 889 4700, dakar@international.gc.ca U.S. EMBASSY Route des Almadies, +221 (0)33 879 4000, dakar.usembassy.gov LÉOPOLD SÉDAR SENGHOR INTERNATIONAL AIRPORT +221 (0)33 820 07 80, +221 (0)33 820 10 41 CLINIQUE DU CAP HOSPITAL Avenue Pasteur BP 583, +221 (0)33 889 0202

October 2013 | 73

CIM community

CIM ramps up activities in West Africa Dakar branch hosts events, looking to build local expertise in Senegal

ICM intensifie ses activités en Afrique de l’Ouest La section de Dakar organise régulièrement des événements pour développer une expertise locale au Sénégal

by Herb Mathisen

par Herb Mathisen

Courtesy of Embassy of Canada to Senegal/ Avec l’aimable autorisation de l’ambassade du Canada au Sénégal

Although it is new Bien que ce soit nouveau pour la région, l’ICM to the region, CIM is accélère ses travaux en ramping up its work in Afrique de l’Ouest pour West Africa in support soutenir les efforts of local efforts to build déployés au niveau local a strong and responsiafin d’établir une industrie ble mining industry, minière vigoureuse et resand to create and ponsable et pour nouer et strengthen partnerrenforcer des partenariats ships between West entre les professionnels du African and Canadian secteur minier de l’Afrique mining professionals. de l’Ouest et du Canada. CIM’s first major La première étape step toward this goal, importante de l’ICM vers its Dakar branch, is From left, Carlos Rojas-Arbulu, embassy of Canada to Senegal, Mamoudou Diallo, director general of SEMAFO Guinée, Elie Justin Ouédraogo, Burkina Faso Chamber of Mines president, and Jean Vavrek, cet objectif, soit la section now up and running. de Dakar, est maintenant Oumar Toguyeni, CIM CIM executive director at PDAC 2012 / Carlos Rojas-Arbulu, de l’ambassade du Canada au Senegal, Mamoudou Diallo, directeur general, SEMAFO Guinée, Elie Justin Ouédraogo, Président de la Chambre sur pied et opérationnelle. Dakar Branch presi- des Mines du Burkina Faso, et Jean Vavrek, directeur executive de l’ICM à PDAC 2012. Oumar Toguyeni, président, said one of the dent de la section de Dakar de l’ICM, affirme qu’une des plus imporbranch’s most important priorities is to promote and explain tantes priorités de la section locale est de promouvoir et d’expliquer le mining to key business people, communities and governsecteur minier aux décideurs clés du secteur des affaires, aux diffément leaders in Senegal. “In many parts of the world, there rentes communautés locales et aux dirigeants du gouvernement du is a misconception that mining companies do not care about Sénégal. « Dans de nombreuses régions du monde, on croit à tort que the environment, contribute very little to the local and les sociétés minières ne se soucient pas de l’environnement, contricountry economy, and that [they] make super profits,” he buent peu à l’économie locale et nationale et réalisent des bénéfices said. Senegal has long been a producer of industrial minerénormes », affirme-t-il. Le Sénégal est depuis longtemps un producals, with production centring primarily on phosphate. But teur de minerais industriels, centré essentiellement sur la production gold exploration has picked up of late, and Senegal is now de phosphate. L’exploration aurifère progresse toutefois depuis peu et home to the Sabodala mine, which Teranga Gold commisle Sénégal abrite maintenant la mine Sabodala, mise en activée par sioned in 2009 (p. 66). Iamgold’s Boto project is also in Teranga Gold en 2009 (p. 69). Le projet Boto d’Iamgold est aussi en development. développement. In early September, as its first formal event, the branch Au début septembre, lors de sa première activité officielle, la sechosted a delegation of nearly 100 business people from Quetion locale a organisé une rencontre avec près de 100 gens d’affaires bec, headed by the provincial government’s Minister of Interdu Québec, en présence de M. Jean-François Lisée, Ministre des Relanational Relations and External Trade, Jean-François Lisée. tions internationales et du Commerce extérieur. La délégation s’est This delegation also travelled to Burkina Faso and the Ivory aussi rendue au Burkina Faso et en Côte d’ Ivoire. La section de Dakar Coast. The Dakar branch held a workshop on the particulara organisé un atelier au sujet des différentes particularités de l’indusities of the local mining industry, with an additional focus on trie minière local, axé davantage sur l’environnement et l’énergie. environment and energy. Ce voyage a permis de reconnaître des dirigeants d’entreprises The trip also helped identify serious local business leaders locales responsables, ouvrant la porte aux occasions futures d’entrefor future networking ventures. “One of the other opportuniprise commune. « Une des autres possibilités qui s’offre à nous, ties that we have,” said CIM executive director Jean Vavrek, “is affirme le chef de la direction de l’ICM, Jean Vavrek, est le soutien que support to bring a delegation of leaders – probably five to 10 nous donnerons à une délégation de cinq à dix dirigeants de – from West Africa to the Québec Mines conference in 74 | CIM Magazine | Vol. 8, No. 7

CIM community

Quebec City, in November,” adding the expenses are partially funded by a federal government sponsorship program. “They’re typically business people that are either involved in the mining industry or want to be and are near-ready,” he explained. “They want to find other businesses that they can learn from and partner with.” Delegates are looking to do joint ventures, transfer intellectual property or become a franchisee, Vavrek said, adding they are also searching for suppliers that provide service levels equal to those enjoyed by Canadians and Australians. CIM will also consider bringing delegations to Canada for the third annual Franco Mines event at PDAC next February and for the CIM 2014 Convention in Vancouver next May. Additionally, the Dakar branch is seeking to develop local expertise in Senegal. “Our branch has identified that we really need to look at shaping programming, training and processes so that geologists, mining engineers and professionals in West Africa can be recognized as Qualified Persons (QP) under National Instrument 43-101,” said Vavrek. “Not having access to QPs locally is adding a burden of costs and delays process,” he explained. “Right now there is not an easy way for graduates and professionals coming out of West African universities to acquire some of the entry-level credentials [required] to build up with other experience to be recognized as a QP.” The branch is also organizing a late-November symposium on mining, environment and agriculture. This is an area where CIM can leverage the mining industry’s wealth to assist local business development, Vavrek said. “The mining industry is interested in being a platform, as well as an incubator, for small- and medium-sized businesses, some involved directly in the operation and the supply [of mines],” he said. Land use has traditionally been a source of conflict between some farm land owners and the mining industry, added Vavrek. “So we’re trying to be a lot more intentional about how we develop that relationship.” The Dakar branch has not been fully incorporated yet, but Vavrek expects that to be completed later this fall. He said the lessons learned during the examination and development of the governance process will help CIM as it looks to grow internationally. “I think what we learn from that is going to help us accelerate [our efforts] in other branches in West Africa and even in formalizing some of the branches in Latin America,” he said. CIM recently established a branch in Lima, Peru and has a branch in Los Andes, Chile. Toguyeni said the Dakar branch will help CIM in its efforts to grow membership and increase the number of branches in West Africa. Ideally, said Vavrek, this work will culminate in the development of an International Francophone Mining Institute – or an African Francophone Mining Institute – to be unveiled at the upcoming Francophonie summit in Senegal in fall 2014. “We’ve got an objective: we want CIM to grow,” said Vavrek. “We think we can bring leadership. At the end of the day, we think this is going to be good for Canada.” CIM

l’Afrique de l’Ouest, qui se rendra à Québec pour participer au congrès Québec Mines en novembre », ajoutant que les frais sont financés en partie par un programme de commandite du gouvernement fédéral. « Ce sont habituellement des gens d’affaires actifs dans l’industrie minière ou qui veulent en faire partie à court terme », explique-t-il. « Ils souhaitent rencontrer d’autres entreprises pour profiter de leurs connaissances et aussi devenir associés. » Les délégués cherchent à créer des coentreprises, partager la propriété intellectuelle ou devenir franchisé, souligne Vavrek, ajoutant qu’ils sont aussi à la recherche de fournisseurs qui offrent des niveaux de service comparables à ceux donnés aux Canadiens et aux Australiens. L’ICM examine aussi la possibilité d’inviter des délégations au Canada pour le troisième congrès annuel Franco Mines à la PDAC en février et pour le Congrès de l’ICM 2014 à Vancouver, en mai. De plus, la section de Dakar cherche à développer une expertise locale au Sénégal. « Selon notre section locale, il est devenu primordial de façonner la programmation, la formation et les procédés afin que les géologues, les ingénieurs miniers et les professionnels d’Afrique de l’Ouest puissent être reconnus comme des personnes qualifiées en vertu du NI 43-101 sur les informations relatives aux projets miniers », affirme Vavrek. « Ne pas avoir accès à du personnel qualifié augmente la charge des coûts et retarde le processus », souligne-t-il. « Aujourd’hui, il n’est pas facile pour les diplômés et les professionnels qui terminent leurs études dans les universités de l’Afrique de l’Ouest d’avoir accès aux compétences [exigées] de niveau d’entrée qui, jumelées à d’autres expériences, leur permettra d’être reconnus comme une personne qualifiée. » À la fin novembre, la section locale organise également un symposium sur l’industrie minière, l’environnement et l’agriculture. Voilà un domaine dans lequel l’ICM peut mettre à profit la santé financière de l’industrie minière pour faciliter le développement d’entreprises locales, affirme Vavrek. « L’industrie minière est intéressée à être une plate-forme, ainsi qu’un incubateur pour les petites et moyennes entreprises, certaines participant directement à l’exploitation et à l’approvisionnement des mines », affirme-t-il. Depuis toujours, l’utilisation du territoire a été une source de conflit entre certains propriétaires de terres agricoles et l’industrie minière, ajoute Vavrek. « Nous prenons tous les moyens pour se concentrer davantage à établir des relations viables. » La section de Dakar n’est pas encore entièrement intégrée, mais Vavrek s’attend à ce qu’elle le soit d’ici la fin de l’automne. Les leçons tirées de l’examen et du développement du processus de gouvernance, aidera l’ICM durant son projet de croissance internationale, ajoute-t-il. « Ce que nous apprendrons de ce processus nous permettra d’intensifier nos efforts dans d’autres sections locales de l’Afrique de l’Ouest, et même dans le processus de formalisation de certaines sections locales de l’Amérique latine », affirme-t-il. L’ICM a récemment établi une section locale à Lima au Pérou et en possède une autre à Los Andes au Chili. Toguyeni affirme que la section de Dakar aidera l’ICM à augmenter l’adhésion de nouveaux membres et à augmenter le nombre de sections locales en Afrique de l’Ouest. Il serait souhaitable, dit Vavrek, que tout ce travail aboutisse à la création d’un institut minier francophone ou d’un institut minier franco-africain, qui serait dévoilé lors du prochain sommet francophone à l’automne 2014 au Sénégal. « Nous avons un objectif : nous voulons que ICM poursuivre sa progression », affirme Vavrek. « Nous croyons pouvoir faire preuve de leadership. En fin de compte, ce projet sera bénéfique pour le Canada. » ICM October 2013 | 75

CIM community

Knowledge at your fingertips CIM puts 115 years of technical papers online

Les connaissances au bout des doigts L’ICM met en ligne 115 années de documents techniques

Herb Mathisen

by/par Herb Mathisen

College de Maisonneuve students, from front, Ariel Paradis, Guy Croteau and Laurent Bouthillier scan and enter technical papers into CIM’s online archive. / Les étudiants du Collège de Maisonneuve, en première ligne Ariel Paradis, Guy Croteau et Laurent Bouthillier, qui scannent et saisissent les documents techniques dans les archives en ligne de l’ICM.

Despite, and perhaps because of, CIM’s long history and position as a major repository of mining knowledge, much of the organization’s vast technical paper archive sat stored away in a basement in Westmount, Quebec. While it was possible to order a paper, the process was slow and labour-intensive, requiring someone to go into the archive, find the document, scan it and send it off on a CD. However, CIM is now close to putting its entire technical paper archive online. Serge Major, CIM’s director of finance and administration, said the project’s genesis goes back to a Council of Engineering and Scientific Society Executives conference he attended in 2004. The event’s keynote speaker said a typical engineer would spend the equivalent of one day per week searching for research and reference documents. “When I heard that, I said, ‘Wow, there’s something for CIM in there,’” he recalled. At that point, the Institute only had online archives that dated back a few years, as conference proceeding papers and publications had only recently started to go online. When Major returned from the conference, he began looking at how to put the remaining technical papers – found in various publications and conference proceedings throughout CIM’s 115-year history – online, within easy reach of members. Conference proceedings and publications documents from roughly 2000 onward were already rendered electronically. 76 | CIM Magazine | Vol. 8, No. 7

Malgré, ou peut-être en raison de la longue histoire de l’ICM et de sa position en tant que principal référentiel de connaissances sur l’exploitation minière, la plupart des vastes archives de documents techniques de l’organisation sont restées entreposées dans un sous-sol de Westmount, au Québec. Il était possible de commander un document, mais le procédé était lent et laborieux car quelqu’un devait consulter les archives, trouver le document, le scanner et l’expédier après l’avoir transféré sur un CD. L’ICM est aujourd’hui en phase de mettre en ligne l’intégralité de ses archives de documents techniques. Serge Major, le directeur des finances et de l’administration de l’ICM, explique que l’origine de ce projet remonte à la conférence du Council of Engineering and Scientific Society Executives (CESSE, le Conseil des dirigeants de la société des ingénieurs et scientifiques) à laquelle il avait participé en 2004. Le conférencier principal de cet événement y expliquait qu’un ingénieur passe généralement une journée par semaine à faire des recherches et à consulter des documents de référence. « Lorsque j’ai entendu cela, je me suis dit que l’ICM avait matière à exploiter », se rappelle-t-il. À ce moment-là, les archives que l’Institut avait mises en ligne ne remontaient qu’à quelques années en arrière, car les comptes rendus et les publications des conférences commençaient à peine à être disponibles sur Internet. À son retour de la conférence, M. Major a commencé à chercher le moyen de mettre en ligne le reste des documents techniques

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Going back into the past proved fascinating. For instance, Guy Croteau watched the sophisticated machines in the 1970s from Ingersoll Rand, which advertised in most issues of the CIM Bulletin, become basic drills and jack hammers as the archiving moved toward the start of the century. “I was amazed by the regularity of the ads over so many years and to see the change in machinery as well,” he said. Croteau also came across an ad from Montreal’s glamorous Ritz-Carlton Hotel, boasting a single room with bath rate starting at $3. The year? 1916. / Revenir en arrière a été une expérience fascinante. « J’étais stupéfait de la régularité des annonces sur autant d’années et aussi de l’évolution de l’équipement », déclare-t-il. Guy Croteau est aussi tombé sur une publicité du très somptueux hôtel Ritz-Carlton Montréal, qui proposait des chambres individuelles avec salle de bains à un tarif commençant à 3 $. L’année ? 1916.

“We started very slowly by doing a survey of how many papers we were looking at,” Major explained. “We estimated there were about 25,000 papers.” The digitization project began in 2005 but was itself an onerous process, with one part-time employee reading each document and manually listing and entering keywords. Last June, however, CIM hired three archiving and documentation technician students – Laurent Bouthillier, Guy Croteau and Ariel Paradis – from Montreal’s College de Maisonneuve to go through the troves of CIM publications and scan each of the technical papers using new character recognition and data inventory software, vastly speeding up the electronic archiving process. Lorent Dione, CIM web programmer, explained the new software grabs the 100 most important terms from the document, along with names and locations, and registers them as keywords. These are added to the keywords chosen by the author. In addition to the newly archived material, every technical paper already online and contained in conference proceedings will also be run through the software to bring up the extra auto-generated keywords. The team succeeded in putting more than 7,000 documents online in just three months. This project has not only accelerated the online archiving process but it will also make the user experience simpler. A new search interface is scheduled to go live later this year to make finding documents quicker and easier. Dione said the software is more intuitive than the current version employed on the website. Users will notice a cleaner and more practical search function that allows searches by author, presenter, publication, conference and keyword. Major said he expects the entire archive, dating back to 1898, to be available by the end of the year. CIM

(qu’il a trouvés dans divers comptes rendus et publications de conférences des 115 années d’existence de l’ICM), permettant aux membres d’y avoir accès facilement. Les comptes rendus et les publications des conférences datant de 2000 et plus tard étaient déjà présentés sous forme électronique. « Nous avons tout doucement commencé à déterminer le nombre de documents que nous avions à traiter », explique M. Major. « Nous sommes arrivés à une estimation d’environ 25 000 documents. » Le projet de numérisation a débuté en 2005, mais il s’agissait d’un procédé coûteux auquel s’attelait un employé à mi-temps qui lisait chaque document, puis classait et saisissait manuellement les mots-clés correspondants. Mais l’ICM a embauché en juin l’année dernière trois étudiants techniques spécialisés en documentation et archivage (Laurent Bouthillier, Guy Croteau et Ariel Paradis) du Collège de Maisonneuve de Montréal, afin qu’ils se penchent sur les trésors de publications dont disposait l’ICM et qu’ils scannent chaque document technique à l’aide des nouveaux logiciels de reconnaissance des caractères et de recensement des données, ce qui a considérablement accéléré le processus d’archivage. Lorent Dione, programmeur-analyste web à l’ICM, explique que ce nouveau logiciel sélectionne les 100 termes les plus importants du document ainsi que les noms et lieux, et les marque comme mots-clés. Ils sont ensuite ajoutés aux mots-clés choisis par l’auteur. En plus de ces nouveaux documents archivés, chaque document technique déjà en ligne et apparaissant dans les comptes rendus de conférences sera traité par le logiciel afin d’y ajouter les motsclés supplémentaires générés automatiquement. En seulement trois mois, l’équipe est parvenue à mettre en ligne plus de 7 000 documents. Ce projet a non seulement accéléré le processus d’archivage, mais il facilitera considérablement la tâche de l’utilisateur. Une nouvelle interface de recherche est prévue pour cette année, afin de rendre la recherche de documents plus rapide et plus simple. M. Dione explique que le logiciel est plus intuitif que la version actuellement utilisée sur le site Internet. Les utilisateurs disposeront désormais d’une fonction de recherche plus simple et plus pratique qui leur permettra d’effectuer des recherches par auteur, participant, publication, conférence et mot-clé. D’après M. Major, l’intégralité des documents techniques, qui remontent à 1898, seront archivés et disponibles d’ici la fin de l’année. ICM October 2013 | 77

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Garth Kirkham named incoming president-elect CIM’s 2015-16 president wants organization to become the world’s go-to standards resource by Krystyna Lagowski

Garth Kirkham nommé président élu entrant Le président de l’ICM pour 2015-2016 souhaite que l’organisation devienne la ressource mondiale de prédilection en matière de normes Par Krystyna Lagowski

The Image Commission

When Garth Kirkham attended Lors d’une représentation auquel Garth Kirkham a assisté dernièrement à a performance at his daughter’s l’école secondaire de premier cycle de sa junior high school recently, stufille, les élèves sur scène, armés de casques dents onstage, dressed up in hard de protection et de pioches, présentaient hats and holding pickaxes, porles mineurs d’une façon bien négative et trayed miners in a negative and destructrice. Ce spectacle lui a rappelé destructive light. The spectacle combien ce secteur doit œuvrer à amélioreminded him of the work the rer son image auprès du public. industry must do to improve its M. Kirkham, qui a été nommé président public image. élu entrant de l’ICM par le Conseil en juillet Named CIM’s incoming presidernier, espère pouvoir influencer la vision dent-elect by council in July, qu’ont les gens de l’exploitation minière en Kirkham hopes to influence peoleur expliquant que le monde a aujourple’s views on mining by explaining d’hui besoin de ressources minérales pour how the modern world requires fonctionner, et que le travail des géoscienmineral resources to function, and Vancouver-based geoscientist Garth Kirkham is CIM’s incoming tifiques, des mineurs et des ingénieurs how the job of geoscientists, min- president-elect. He hopes to bring CIM’s expertise on standards and definitions to the forefront during his 2015-16 consiste à localiser, extraire et produire ces ers and engineers is to locate, term. / Le géoscientifique de Vancouver Garth Kirkham est le ressources de manière responsable. « Hisextract and produce those président élu entrant de l’ICM. Il espère mettre en valeur toriquement parlant, on constate que les resources in a responsible manner. l’expertise de l’ICM sur les normes et les définitions pendant son mandat en 2015-2016. normes et meilleures pratiques ont été “Historically, standards and best relativement médiocres », reconnaît le résipractices have been poor,” the Vandant de Vancouver. « Notre mission à l’ICM est de revaloriser ces couver resident concedes. “Our mission at CIM is to normes et de communiquer en quoi consistent nos activités. » bring those standards up to the highest level, and to comM. Kirkham assumera la fonction de président pour la période municate what we’re doing.” 2015-2016 et s’attellera à promouvoir les pratiques exemplaires ainsi Kirkham will serve as president in 2015-16 and he qu’à mettre au premier plan les normes et définitions de l’ICM. « L’ICM will focus on promoting best practices and bringing est la ressource par excellence pour ce genre de choses, au service de CIM’s standards and definitions to the forefront. “CIM is l’industrie et du public. » Les meilleures pratiques, ajoute-t-il, sont touthe go-to resource for those kinds of things, serving both jours un travail inachevé. « Les situations changent, aussi les meilleures the industry and the public,” he says. Best practices, pratiques évoluent. » En l’occurrence, la dépréciation des marchanKirkham adds, are always a work in progress: “Situations dises a entraîné une dévalorisation conséquente des actifs des entrechange so better practices evolve.” A case in point is how prises. Un sous-comité de l’ICM étudie maintenant la façon dont les lower prices for commodities have resulted in companies entreprises peuvent améliorer leur déclaration des coûts et rendre le writing down huge assets. A CIM subcommittee is now processus encore plus transparent pour le public et le gouvernement. examining how companies can improve their cost report« Le gouvernement s’attend à ce qu’une mine génère des milliards ing and make the process more transparent for the public de dollars, mais il ne tient pas compte des coûts d’exploitation », and government. explique M. Kirkham. Certes, les sociétés minières se consacrent aux “There’s an expectation from government that a mine activités minières, mais elles doivent aussi en tirer un certain profit. will make billions of dollars, but they don’t take operatAinsi, M. Kirkham explique que le secteur doit continuer à développer ing costs into account,” says Kirkham. Mining companies des méthodes d’exploitation durables, du point de vue environneare in the business of mining, but they must also make mental autant qu’économique. some profit. For this reason, Kirkham says the sector 78 | CIM Magazine | Vol. 8, No. 7

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needs to continue to develop ways of operating in a sustainable manner, both from an environmental and economic point of view.

Geoscience matters A geoscientist with nearly 30 years of experience, Kirkham believes his peers are often under-represented in professional organizations such as CIM. He stresses that geoscientists must understand the issues that engineers face and vice versa. To this end, he has been working with colleagues to add more geology content to the CIM Convention technical program in order to provide more opportunities for cross-pollination. “I served for a number of years on CIM Council, so I’m very familiar with how CIM works, and that’s how I can help go forward as president,” he said. Kirkham wants to continue pushing efforts on best practices, building CIM’s reputation as the preeminent organization for resources and information. In addition to his work with CIM, Kirkham is also an active member of the Association of Professional Engineers and Geoscientists of British Columbia.

New world Incumbent CIM president Bob Schafer describes Kirkham as someone who is not afraid of taking on difficult projects or getting involved in tricky situations. “As an entrepreneurial consultant, he’s self-reliant and willing to work through tough tasks,” Schafer says. “And as a geologist, he’s very conversant in a variety of commodities and geologic environments.” Kirkham’s skills do not end there. “Garth has insights and ideas that he’s not afraid to put forward,” says Jean Vavrek, CIM executive director. “He’s courageous, forward-looking and asks the right questions. Garth is very generous with his time and knowledge, and in many ways, I think he exemplifies what CIM is all about in terms of fellowship.” Vavrek appreciates that Kirkham is involved in various geological societies and that he has governance experience in other associations. “CIM needs different points of view as well as expertise in governance,” he says. “We’re also looking for leadership in our work on reporting standards, and Garth’s background in defining resource reserves, and as a board member of mining and exploration companies, fits our strategic direction.” Specifically, Vavrek points to consultation work being done by securities administrations and provincial securities commissions around National Instrument 43-101, for which CIM provides definition guidance on various commodities. Kirkham sees the industry in a state of flux and believes that by the time he becomes president in 2015, the organization will have to be nimble, offering value in everything it does. He admits that his approach is very direct: “As volunteers, we all have day jobs, and I want to make sure that the time people spend volunteering is respected.” CIM

La géoscience compte Géoscientifique depuis près de 30 ans, M. Kirkham est d’avis que ces pairs sont souvent sous-représentés dans les organisations professionnelles telles que l’ICM. Il insiste sur le fait que les géoscientifiques doivent comprendre les problèmes auxquels sont confrontés les ingénieurs, et vice-versa. Ainsi, il s’est efforcé avec l’aide de ses collègues d’ajouter davantage de contenu géologique au programme technique du Congrès de l’ICM afin de multiplier les possibilités de pollinisation croisée. « J’ai siégé au Conseil de l’ICM pendant de nombreuses années, aussi je connais bien le fonctionnement de cette organisation et c’est la raison pour laquelle je pourrais l’aider à progresser durant mon mandat de président », déclare-t-il. M. Kirkham souhaite continuer à renforcer les efforts sur les meilleures pratiques et à forger la réputation de l’ICM en tant qu’organisation prééminente pour les ressources et les informations. Outre son travail avec l’ICM, M. Kirkham est également membre actif de l’Association of Professional Engineers and Geoscientists of British Columbia (APEGBC, l’association des ingénieurs et géoscientifiques professionnels de Colombie-Britannique).

Un nouveau monde Bob Schafer, le président sortant de l’ICM, décrit M. Kirkham comme quelqu’un qui n’a pas peur d’accepter des projets difficiles ou de s’impliquer dans des situations délicates. « En tant que conseiller en entrepreneuriat, il est autonome et prêt à travailler sur des tâches complexes », déclare M. Schafer. « Et en tant que géologue, il connaît bien tout un éventail de marchandises et d’environnements géologiques. » Mais les qualifications de M. Kirkham ne s’arrêtent pas là. « Garth a des intuitions et des idées qu’il n’hésite pas à exposer », déclare Jean Vavrek, directeur exécutif de l’ICM. « Il est courageux, tourné vers l’avenir et pose les bonnes questions. Garth est toujours prêt à partager son temps et ses connaissances et il est l’exemple même, à bien des égards, de ce que l’ICM représente en termes d’association. » M. Vavrek apprécie beaucoup que M. Kirkham soit affilié à diverses sociétés et qu’il ait de l’expérience dans la gouvernance d’autres associations. « L’ICM a besoin de points de vue différents ainsi que d’une expertise en matière de gouvernance », explique-t-il. « Un certain leadership est également nécessaire pour nos travaux sur les normes de rapport, aussi l’expérience de Garth dans la définition des réserves de ressources et en tant que membre du Conseil dans des sociétés d’exploitation et d’exploration minières correspond tout à fait à notre orientation stratégique. » Plus spécifiquement, M. Vavrek évoque les travaux de consultation menés par les commissions des titres du marché, des administrations des valeurs mobilières et des valeurs mobilières provinciales entourant l’instrument national NI 43-101 pour lequel l’ICM fournit son aide au titre de la définition de diverses marchandises. M. Kirkham envisage l’industrie comme un milieu en constante évolution et est d’avis qu’au moment où il commencera son mandat, en 2015, l’organisation devra faire preuve d’une grande vivacité et offrir de la valeur dans tout ce qu’elle propose. Il reconnaît que cette approche est très directe : « En tant que volontaires, nous avons tous un emploi, et je souhaite m’assurer que le temps consacré par chacun d’entre nous à l’organisation est respecté. » ICM October 2013 | 79

Certification in Ore Reserve Risk and Strategic Mine Planning Optimization Spread over a period of four months, this four-week course is designed for busy mining professionals who wish to update their skills and knowledge base in modern modelling techniques for ore bodies and new risk-based optimization methodologies for strategic mine planning. Gain practical experience by applying the following hands-on concepts and technical methods: methods for modelling ore bodies; stochastic simulations, case studies and models of geological uncertainty; and demand-driven production scheduling and geological risk. INSTRUCTOR Roussos Dimitrakopoulos, McGill University, Canada • DATES Week 1: May 5-9, Week 2: June 2-6, Week 3: July 7-11, Week 4: August 25-28, 2014 • LOCATION Montreal, Quebec, Canada • INFO http://www.mcgill.ca/continuingstudies/programs-and-courses/engineering-0/certification-ore-reserverisk-and-mine-planning-optimization

An Introduction to Cutoff Grade: Theory and Practice in Open Pit and Underground Mines (with a new section on blending optimization strategy) Cutoff grades are essential in determining the economic feasibility and mine life of a project. Learn how to solve most cutoff grade estimation problems by developing techniques and graphical analytical methods, about the relationship between cutoff grades and the design of pushbacks in open pit mines, and the optimization of block sizes in caving methods. INSTRUCTOR Jean-Michel Rendu, USA • DATE September 3-5, 2014 • LOCATION Montreal, Quebec, Canada

Geostatistical Mineral Resource Estimation and Meeting the New Regulatory Environment: Step by Step from Sampling to Grade Control Learn about the latest regulations on public reporting of resources/reserves through state-of-the-art statistical and geostatistical techniques; how to apply geostatistics to predict dilution and adapt reserve estimates to that predicted dilution; how geostatistics can help you categorize your resources in an objective manner; and how to understand principles of NI 43-101 and the SME Guide. INSTRUCTORS Marcelo Godoy, Golder Associates, Chile; and Roussos Dimitrakopoulos, McGill University, Canada • DATE September 8-12, 2014 • LOCATION Montreal, Quebec, Canada

Quantitative Mineral Resource Assessments: An Integrated Approach to Planning for Exploration Risk Reduction Learn about exploration risk analysis for strategic planning. Understand how to demonstrate how operational mineral deposit models can reduce uncertainties; make estimates of the number of undiscovered deposits; and integrate the information and examine the economic possibilities. INSTRUCTOR Don Singer, USA • DATE September 29-October 1, 2014 • LOCATION Montreal, Quebec, Canada

Strategic Risk Management in Mine Design: From Life-of-Mine to Global Optimization Learn how you can have a significant, positive impact on your company’s bottom line by utilizing strategic mine planning methodologies and software; improve your understanding of strategic mine planning and life-of-mine optimization concepts, as well as your understanding of the relationship of uncertainty and risk, and how to exploit uncertainty in order to maximize profitability. Note: The strategic mine planning software used is Whittle. An optional half-day skills refresher workshop on Whittle may be available. INSTRUCTORS Tarrant Elkington, Snowden, Australia; and Roussos Dimitrakopoulos, McGill University, Canada • DATE October 2014 • LOCATION Montreal, Quebec, Canada

TECHNICAL ABSTRACTS

CIM

journal

Excerpts taken from abstracts in CIM Journal, Vol. 4, No. 3. To subscribe, to submit a paper or to be a peer reviewer—www.cim.org

Evolution of gold gravity recovery in grinding circuits – a critical review S. Koppalkar, MET-CHEM, Montreal, Quebec, Canada; A. Bouajila, G Mining Services Inc., Brossard, Quebec, Canada; and C. Gagnon and S. Makni, COREM, Quebec, Quebec, Canada

ABSTRACT This paper briefly reviews the gravity recovery between conventional and centrifugal gravity separators. The advantages of semicontinuous gravity separators is discussed, as will techniques for upgrading the gravity concentrates. The research efforts in optimizing semicontinuous gravity separators will be recalled. An innovative gravity circuit for eliminating or minimizing the use of complex processing schemes will be reviewed. Efforts to devise possible remedies for improving plant gravity recovery will be discussed.

RÉSUMÉ Le présent article revoie la récupération par gravité au moyen de séparateurs conventionnels et centrifuges. L’avantage des séparateurs gravimétriques en semi-continu est traité, de même que les techniques pour valoriser les concentrés obtenus par gravité. Les efforts de recherche pour optimiser les séparateurs gravimétriques en semi-continu sont examinés de nouveau. Un circuit par gravité innovateur pour éliminer ou minimiser l’utilisation de schémas complexes de traitement est étudié. La recherche pour trouver des solutions possibles afin d’améliorer la récupération par gravité dans les usines est abordée.

Pilot plant pressure oxidation of a refractory gold-silver concentrate M. J. Collins, D. Yuan, I. M. Masters, and R. Kalanchey, Sherritt Technologies, Sherritt International Corporation, Fort Saskatchewan, Alberta, Canada; and L. Yan, Sherritt International Corporation, Beijing Representative Office, Beijing, P. R. China

ABSTRACT Pressure oxidation tests have been conducted by Sherritt for a refractory gold-silver project in China. The feed contained 39 g/t Au and 970 g/t Ag; the major gold-bearing minerals were pyrite and arsenopyrite. Because the feed contained a significant amount of silver, the test program included investigation of methods to enhance silver recovery. The “lime boil” process proved successful and was incorporated into the flowsheet. Gold extraction from the lime boil product solids was 95%-98%; silver extraction was up to 94%.

RÉSUMÉ Sherritt a effectué des essais d’oxydation sous pression dans le cadre d’un projet de minerai or-argent réfractaire, en Chine. L’alimentation comportait 39 g/t Au et 970 g/t Ag; les principaux minerais aurifères étaient la pyrite et l’arsénopyrite. Comme l’alimentation comportait une quantité importante d’argent, le programme d’essai comprenait l’investigation de méthodes pour rehausser la récupération de l’argent. Le processus de « bouillir dans une solution de chaux » s’est avéré une réussite et il a été incorporé dans le schéma de production. L’extraction de l’or à partir des solides produits par l’ébullition dans une solution de chaux a atteint 95-98 % et l’extraction de l’argent a atteint 94 %.

October 2013 | 81

TECHNICAL ABSTRACTS

canadian metallurgical quarterly Excerpts taken from abstracts in CMQ, Vol. 53, No. 3. To subscribe – www.cmq-online.ca

Leaching of lanthanides from various weathered elution deposited ores G. A. Moldoveanu and V. G. Papangelakis, Department of Chemical Engineering and Applied Chemistry, University of Toronto, Toronto, Ontario, Canada

ABSTRACT Lanthanides adsorbed on clay minerals were easily recovered by ion exchange leaching with inorganic monovalent salt solutions under ambient conditions. The leaching efficiency (as per cent extraction) of various salts at 0·5M and 25°C was investigated as a function of cation type and salt system (sulphates versus chlorides). The selected lixiviant concentration was based on a 3:1 stoichiometric ratio between total lanthanide content and the exchange cation. Leaching efficiency decreased in the order Cs+>NH4+>Na+>Li+, from 90% to 60% respectively, with sulphates exhibiting 10% higher extraction than chlorides; differences in lanthanide desorption were explained in terms of differences in cation hydration energies. (NH4)2SO4 was identified as the optimum lixiviant and a procedure was established to investigate the influence of temperature, pH and agitation on desorption kinetics and lanthanide extraction levels. It was determined that maximum extraction required a pH level below 5 and moderate temperatures (<50°C).

RÉSUMÉ Les lanthanides adsorbés sur les minéraux d’argile ont été facilement récupérés par lessivage à échange d’ion avec des solutions de sel monovalent inorganique, en conditions ambiantes. On a examiné le rendement du lessivage (pourcentage d’extraction) de sels variés, à 0·5M et 25°C, en fonction du type de cation et du système de sel (sulfates ou chlorures). La concentration choisie de lixiviant était basée sur un rapport stœchiométrique de 3:1 entre la teneur totale en lanthanide et le cation d’échange. Le rendement du lessivage diminuait dans l’ordre de Cs+>NH4+>Na+>Li+, de 90% à 60%, respectivement, les sulfates exhibant une extraction environ 10% plus élevée que celle des chlorures; on expliquait la différence dans la désorption de lanthanide en termes de différence d’énergie d’hydratation du cation. On a identifié (NH4)2SO4 comme lixiviant optimal et l’on a établi une procédure d’étude de l’influence de la température, du pH et de l’agitation sur la cinétique de désorption et sur les niveaux d’extraction de lanthanide. On a déterminé que l’extraction maximale nécessitait un pH au-dessous de 5 et des températures modérées (<50°C).

Mineralogical characterisation using QEMSCAN of the Nechalacho heavy rare earth metal deposit, Northwest Territories, Canada T. Grammatikopoulos, SGS Canada Inc, Advanced Mineralogy Facility, Lakefield, Ontario, Canada; W. Mercer, Avalon Rare Metals Inc., Toronto, Ontario, Canada; and C. Gunning, SGS Canada Inc., Advanced Mineralogy Facility, Lakefield, Ontario, Canada

ABSTRACT The Nechalacho rare metal deposit, located in the Northwest Territories, Canada, is currently being taken through a feasibility study by Avalon Rare Metals Inc. QEMSCAN analysis, coupled with supplementary mineral chemistry, and major and trace element analyses, were utilised to identify and quantify the mineralogy of the deposit, and determine REE distribution among the minerals. Geologically, the analysis illustrates distinct styles of REE-Zr mineralization. Fergusonite and zircon are the primary HREE, whereas monazite, allanite, synchysite and bastnaesite the LREE carriers, and identification of fergusonite poor and rich zones. Metallurgically, the QEMSCAN analysis quantifies the liberation of the REE, which is adequate for mineral beneficiation at a K80 below 75 m, and predicts a range of REE grades and recoveries that can be compared to the actual metallurgical values.

82 | CIM Magazine | Vol. 8, No. 7

RÉSUMÉ Avalon Rare Metals Inc. est présentement en train d’effectuer une étude de faisabilité du dépôt de métal rare de Nechalacho, situé dans les Territoires du Nord-Ouest, au Canada, au moyen de l’analyse de QEMSCAN, couplée à la chimie minérale supplémentaire et à des analyses des principaux éléments et des oligo-éléments. Ces analyses sont utilisées pour identifier et quantifier la minéralogie du dépôt et pour déterminer la distribution d’ETR des minéraux. Géologiquement, l’analyse illustre des styles distincts de minéralisation d’ETR-Zr, la dominance de la fergusonite et du zircon comme ETR primaires lourds, et de la monazite, de l’allanite, de la synchysite et de la bastnaésite comme porteurs d’ETR légers, ainsi que l’identification de zones pauvres ou riches en fergusonite. Du point de vue de la métallurgie, l’analyse de QEMSCAN quantifie la libération d’ETR adéquate pour l’enrichissement minéral à un K80 au-dessous de 75 m et prédit une gamme de qualités et de récupérations d’ETR qui peuvent être comparées aux valeurs métallurgiques actuelles.

TECHNICAL ABSTRACTS

canadian metallurgical quarterly

Surface characterisation of fergusonite K. W. Malas, A. Jordens, M. Mirnezami, P. Chu, R. Gauvin, and K. E. Waters, Department of Mining and Materials Engineering, McGill University, Montreal, Quebec, Canada

ABSTRACT There is currently very little information on the physicochemical properties of rare earth element bearing minerals, or on their processing. With the increasing demand for rare earths, this is something that needs to be addressed. This paper introduces some surface chemistry analysis of fergusonite (YNbO4) and the bubble particle attachment.

RÉSUMÉ Il y a présentement très peu d’information concernant les propriétés physico-chimiques des minéraux porteurs d’élément de terre rare, ou de leur traitement. Avec l’augmentation de la demande des terres rares, on a besoin d’examiner cette question. Cet article introduit une certaine analyse de la chimie de surface de la fergusonite (YNbO4) et de l’attachement de bulle-particule.

Conductivity enhancement of yttria doped ceria by spark plasma and AC-assisted sintering methods B. Pesic, F. Battick, and K. S. Raja, University of Idaho, Moscow, Idaho, U.S.A.

ABSTRACT CeO2 doped with lower valence cations, such as Y3+, Sm3+, Gd3+, etc., is considered as electrolyte material for low temperature solid oxide fuel cells. Doping introduces additional oxygen vacancies and improves ionic conductivity. This work describes the preparation of yttria calcia doped ceria precursor material, its sintering in DC and AC field methods, and characterisation of sintered electrolytes with respect to the ionic conductivity. It was found that the applied field during sintering, either via pulsed DC (spark plasma), or AC, produced marginal effects on yttria doped ceria microstructure. However, it should be noted that because the sintering conditions were not optimised there is room for substantial conductivity improvements.

RÉSUMÉ On considère le CeO2 dopé avec des cations à valence plus faible, comme le Y3+, le Sm3+, le Gd3+, etc., comme matériau électrolyte pour les piles à combustible d’oxyde solide à basse température. Le dopage introduit des lacunes additionnelles d’oxygène et améliore la conductivité ionique. Ce travail décrit la préparation de matériau précurseur d’oxyde cérique dopé à l’oxyde d’yttriumcalcia, son frittage par des méthodes de champ CD et CA et la caractérisation des électrolytes frittés par rapport à la conductivité ionique. On a trouvé que le champ appliqué lors du frittage, soit par CD à impulsion (plasma à étincelles) ou par CA, produisait des effets marginaux sur la microstructure de l’oxyde cérique dopé à l’oxyde d’yttrium. Cependant, on doit noter que parce que les conditions de frittage n’étaient pas optimisées, il y a place pour des améliorations substantielles de la conductivité.

Prediction of hydrogen chloride pressure to avoid hydrolysis in dehydration of dysprosium trichloride hexahydrate (DyCl3.6H2O)

W. Judge and G. J. Kipouros, Materials Engineering, Process Engineering and Applied Science, Dalhousie University, Halifax, Nova Scotia, Canada

ABSTRACT The prevalent metal extraction processes for most reactive metals and their alloys are fused salt electrolysis and metallothermic reduction. An estimation and prediction model is presented for the vapour pressures of reactive metal chloride hydrates in an attempt to deduce the conditions necessary for dehydration to proceed without hydrolysis. Thermodynamic data including heat capacities, standard entropies, and standard enthalpies are estimated/predicted for all conceivable intermediate hydrate compounds. Estimations are based on published data as well as trends proven in similar systems. The thermodynamic estimations and predictions are presented for dysprosium chloride hydrates.

RÉSUMÉ Les procédés courants d’extraction de métal des métaux les plus réactifs et de leurs alliages sont l’électrolyse en bain de sel fondu et la réduction métallo-thermique. On a estimé ou prédit les données thermodynamiques incluant les capacités calorifiques, les entropies standards et les enthalpies standards de tous les composés hydrates intermédiaires concevables. Les estimations sont basées sur les données publiées ainsi que sur les tendances démontrées dans des systèmes similaires. On présente les estimations et les prédictions thermodynamiques des hydrates de dysprosium chlorure.

October 2013 | 83

TECHNICAL ABSTRACTS

canadian metallurgical quarterly

Effects of La addition on microstructure and mechanical properties of SN-58BI solders joints with OSP pads Y. Y. Shiue and T. H. Chuang, National Taiwan University, Taipei, Taiwan

ABSTRACT Rapid whisker growth was significantly alleviated in a Sn 58Bi alloy doped with 0·5 wt-% La. Experimental results showed that many thin, plate form intermetallic phases appeared in the solder matrix. The absence of tin whiskers was correlated to the shape effect of RE containing intermetallic plates. After reflowing, Cu6Sn5 intermetallic compounds appeared at the solder/pad interfaces of Sn 58Bi and Sn 58Bi 0·5La packages with OSP pads, which grow linearly during the aging at 75 and 100°C for various times ranging from 100 to 1000 h. In addition, the interfacial intermetallics layers in Sn 58Bi 0·5La solder joints were also observed thinner than those in undoped Sn 58Bi joints. However, RE containing interfacial intermetallic compounds in Sn 58Bi 0·5La solder joints led to lower bonding strengths in both ball shear tests (0·4 mm s−1) and high speed ball shear tests (2000 mm s−1). All the reflowed and aged solder joints of both packages were ruptured through the solder balls indicating brittle characteristic.

RÉSUMÉ On a réduit significativement la croissance rapide de barbe dans un alliage de Sn-58Bi dopé avec 0·5% en poids de La. Les résultats expérimentaux ont montré que plusieurs phases intermétalliques fines en forme de plaque apparaissaient dans la matrice du métal d’apport. On a corrélé l’absence de barbes d’étain aux effets de la forme des plaques intermétalliques contenant de la terre rare. Après la refusion, les composés intermétalliques de Cu6Sn5 apparaissaient à l’interface du métal d’apport et des pastilles des paquets de Sn-58Bi et de Sn-58Bi-0·5La avec pastilles d’OSP, lesquels s’accroissent linéairement lors du vieillissement à 75 et à 100°C pour des durées variées allant de 100 à 1000 heures. De plus, on a observé que les couches intermétalliques de l’interface dans les joints à brasure tendre de Sn-58Bi-0·5La étaient plus minces que celles des joints non dopés de Sn-58Bi. Cependant, les composés intermétalliques de l’interface contenant de la terre rare dans les joints à brasure tendre de Sn-58Bi-0·5La menaient à des résistances de cohésion plus faibles tant dans les épreuves de cisaillement de bille (0·4 mm s-1) que dans les épreuves de cisaillement de bille à haute vitesse (2000 mm s-1). Tous les joints à brasure tendre avec refusion et vieillissement des deux paquets se fracturaient à travers les billes de soudure, indiquant une caractéristique fragile.

Thermodynamic modelling of Mn-Y and Mn-Gd systems for application of RE in Mg alloy development J. Kim and I.-H., Jung, Department of Mining and Materials Engineering, McGill University, Montreal, Quebec, Canada

ABSTRACT Mg alloys are extensively used as light structural materials in the modern industry. Mn and RE metals are effectively used as alloying elements to enhance the properties of Mg alloys. Therefore, the thermodynamic database of those alloys is important in the design and processing of Mg alloys. Critical evaluation and optimisation of all available literature data for the Mn-Y and Mn-Gd systems were conducted to obtain reliable thermodynamic functions of all solid and liquid phases. Recent experimental data were taken into account and the phase diagram and thermodynamic properties were slightly revised for the Mn-Y system and considerably altered for the Mn-Gd one from previous studies. Both systems have quite similar thermodynamic properties and phase diagrams. The systematic trend observed in RE elements for Mn-RE systems is discussed.

84 | CIM Magazine | Vol. 8, No. 7

RÉSUMÉ On fait un usage considérable des alliages de Mg comme matériaux de construction légers dans l’industrie moderne. Le Mn et les métaux de TR sont utilisés effectivement comme éléments d’alliage pour améliorer les propriétés des alliages de Mg. Par conséquent, les bases de données thermodynamiques de ces alliages sont importantes dans la conception et le traitement des alliages de Mg. On a effectué une évaluation critique et l’optimisation de toutes les données disponibles dans la littérature pour les systèmes Mn-Y et Mn-Gd afin d’obtenir des fonctions thermodynamiques fiables de toutes les phases solides et liquides. On a pris en compte des données expérimentales récentes et l’on a révisé légèrement le diagramme de phases et les propriétés thermodynamiques du système Mn-Y et l’on a modifié considérablement celui du Mn-Gd provenant d’études antécédentes. Les deux systèmes ont des propriétés thermodynamiques et des diagrammes de phases plutôt similaires. On discute de la tendance systématique observée chez les éléments de terre rare des systèmes Mn-TR.

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October 2013 | 85

Ben-My-Chree: the life and times and romance of a mountain couple by Correy Baldwin

86 | CIM Magazine | Vol. 8, No. 7

Unknown author

he image most of us have of the gold Kate. They lived on it for more than a rush is of crude, unhygienic shacks, decade, while Kate tended gardens on the likely full of crude, unhygienic men. lake shore. Together, they managed a life The Klondike does not conjure up images both rustic and elegant, full of tea parties of beautiful country homes surrounded by and hunting trips into the bush. English gardens full of peonies and When the railway was constructed, the delphiniums. Yet this is the sight that Partridges shut down their mill. But in greeted guests to the mountain home of 1911, Otto met a local prospector, Stanley Otto and Kate Partridge, former KlonMcLellan, who had found gold high up dikers, who by all accounts were excellent above Tagish Lake. Otto helped finance a gardeners, exceptional hosts, and utterly mine, providing supplies in exchange for a devoted to each other. stake in the operation. Otto first came to North America in The Partridges moved their houseboat 1874 at 19. Having already worked in to the site to help set up McLellan’s mine. shipping for five years, he travelled to San The ore was good but the venture, which Francisco, from the Isle of Man, to work Kate and Otto Partridge in their flower gardens at employed around 60 workers, would Ben-My-Chree. with a schooner trading company at the hardly last one season. That October, an request of his brother. But with his brother avalanche and rockslide ripped through nowhere to be found when he arrived, he joined the U.S. army the site, burying the mine workings and killing several people, and served for three years before returning to England to collect including McLellan and his wife, Anne. an inheritance. It was then that Otto met and fell in love with The tragedy devastated the Partridges. But while they never Kate. The couple settled in San Francisco, where the newlyweds, attempted to reopen the mine, they couldn’t bring themselves to both interested in horticulture, ran a fruit farm. leave the area. Not far away, at the southern tip of the lake, they But in 1897, news of the Klondike Gold Rush reached built a home, which Otto christened, once again, Ben-My-Chree. them, and the couple packed up their worldly belongings to There in a valley among the towering mountain peaks and venture North. Kate stayed behind, waiting for Otto to send glacier-fed streams, the Partridges returned to their first love: word that the tales of instant riches were true. gardening. Together they nurtured two acres of formal garOtto’s interest wasn’t the placer deposits of Yukon but dens, including 40 varieties of flowers. Under their care, rather the transportation required to get there. He had heard despite the harsh environment and short growing season, the about the arduous journey into the Klondike and knew that garden flourished. river boats would be needed. This opportunity would let him In 1916, tourists began visiting the increasingly impressive put his shipping background to good use. Stashing $20,000 in Ben-My-Chree, and soon it was an essential stop on any northa bale of oakum, a fibre used in shipbuilding, he boarded a ern tour. The Partridges hosted such dignitaries as President ship to Skagway, Alaska, crossed the Chilkoot Pass, and made Theodore Roosevelt, along with a throng of silent movie stars his way to Bennett Lake, where the journey to Dawson City by and other celebrities. lake and river began. The gardens alone were worth the visit, but so too were At Bennett, Otto oversaw the construction of the gold rush’s the Partridges, whose generous hospitality had become first three stern-wheel steamboats: the Ora, the Flora and the famous. Otto was an exceptional storyteller, and Kate enterNora. Launched in the summer of 1898, the ships were imme- tained on her harmonium – the portable organ she had cardiately indispensible, and for five full seasons remained the ried on her back over the Chilkoot Pass. They were also quickest and most reliable stern-wheelers shipping passengers generous with their homemade rhubarb wine. Winters were and supplies into the Klondike. quiet, with outings on their dogsled to entertain them until Kate joined Otto later that summer and was one of the few the next summer. women to cross the Chilkoot Pass. The couple ran a sawmill on This was their life for nearly 20 years. Both died in 1930 – Bennett Lake, supplying railroad ties for the railway being built Otto at 73 and, five months later, Kate at 77. Tours to their into Yukon. Otto built the couple a houseboat, naming it Ben- famous home continued, stopping only in 1956. The gardens My-Chree – Manx-Gaelic for “girl of my heart,” as a tribute to of Ben-My-Chree now run wild. CIM

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