CIM Magazine November 2011

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CONTENTS|CONTENU CIM MAGAZINE | NOVEMBER 2011 | NOVEMBRE 2011

NEWS 12

“Forever is a very long time” International mine closure

14

Everyone under the same umbrella John Ruggie about

conference makes its Canadian debut by R. Bergen the U.N.’s framework for business and human rights by P. Braul and A. Baldwin

16 18 20

12

22

Mining conference cultivates sustainable thinking Efficient Swedish firms connect in Canada and encourage risk taking by K. Lagowski On the campaign trail Mining Association of Canada initiates consciousness-raising ad series in Ottawa by H. B. George Online resource opens door to exploration CanGeoRef organizes Canadian geosciences literature in one database and reduces the cost of access by P. Braul Social licence under the microscope Oil sands outreach advisor Don Thompson questions the focus of anti-industry protests by G. Lanktree

UPFRONT 24

Thickened tailings pave the way Site rehabilitation at Osisko’s Canadian Malartic Mine key to fast-track production success by P. Diekmeyer

26

Shooting for the Moon Commercial space explorers urge the government and miners to get on board by G. Lanktree

28

Working with what you have Partnership of industry and academia produces a suite of tailings impoundment cover technologies by H. Ednie

32

Extractive metallurgy for the next century Processing startup Neomet Technologies pushes for smaller footprint and greater returns from ore and waste by D. Zlotnikov

34

Tired of fatigue-related accidents? Mines are implementing new fatigue monitoring technologies to identify drowsy operators by P. Diekmeyer

36

A return on ambition Sean Roosen on his early days, Osisko’s flagship mine and charting a course for the future

24

by R. Andrews

PRELIMINARY PROGRAM • PROGRAMME PRÉLIMINAIRE

44th Annual Canadian Mineral Processors Operators’ Conference Conférence annuelle des minéralurgistes du Canada January 17-19, 2012 • 17-19 janvier 2012 Westin Hotel • Ottawa, Ontario

84 4 | CIM Magazine | Vol. 6, No. 7


COLUMNS | CHRONIQUES

38 FEATURE | ARTICLE VEDETTE 38

Pushing back the frontier Quebec’s plan to advance northern development is rich with potential – and uncertainty by A. Lopez-Pacheco

45

Repousser les frontiers Le plan du Québec pour développer le Nord est plein de potentiel

58 60 60 62 64 64 66 66 68 68 70 72 73 75 76 76 97 98

MAC Economic Commentary by P. Stothart Supply Side by J. Baird Du coté de l’offre HR Outlook by L. Forcellini Innovation by T. Hynes L’innovation Standards by L. Arseneault and A. Lee Normes par L. Arsenault et A. Lee Women in Mining by H. Ednie Les femmes en exploitation minière Regard sur les affaires par C. Kazaz et J. Masson Eye on Business by C. Kazaz and J. Masson Metals Monitor by the staff of Metals Economics Group Aboriginal Perspectives by J. C. Reyes Mining Lore by C. Baldwin Folklore minier Voix de l’industrie par S. Simard Voices from Industry by S. Simard

– et d’incertitudes

CIM NEWS | NOUVELLES DE L’ICM

COMMODITY FOCUS 56

78

United front Distinguished Lecturers hit the road

Brilliant in uncertain times As demand

in the name of workforce recognition and retention

outstrips supply, the diamond market enters a new era by P. Braul

by M. Eisner

80

56 FEATURED PROJECT | PROJET EN VEDETTE

Teaching the ropes George Delorme earns industry respect for his contributions as a rope specialist by M. Eisner

82

Two cities: a new tale begins CIM streamlines its operations and budget with a revamped conference plan by H. B. George

83

Deux villes : une nouvelle histoire commence l’ICM rationalise ses opérations et son budget grâce à une stratégie de congrès réorganisée

48

Steely Determination A high-grade iron project in northeastern Quebec and Labrador spurs an ambitious partnership between New Millennium Iron Corp. and Tata Steel by E. Moore

52

Une volonté de fer Un projet sur le minerai de fer à haut teneur dans le nord-est du Québec et du Labrador entraine un partenariat ambitieux entre New Millennium Iron Corp. et Tata Steel

HISTORY 88 91

Australia (Part 1) by R. J. Cathro History of asbestos by F. Habashi

TECHNICAL SECTION 93 94

CIM Journal Canadian Metallurgical Quarterly

IN EVERY ISSUE 6 8 10 78 79 81 95

48

Editor’s message President’s note / Mot du president LinkedIn comments Welcoming new members Obituaries Calendar Professional directory


editor’s letter Bearing north Plans are nothing; planning is everything ~ Dwight D. Eisenhower

Editor-in-chief Angela Hamlyn, editor@cim.org Managing Editor Joan Tomiuk, jtomiuk@cim.org Senior Editor Ryan Bergen, rbergen@cim.org Section Editors Features:

ccording to the history books, explorer Jacques Cartier thought that he had hit pay dirt when he discovered what he believed to be diamonds and gold on the slopes of Cap aux Diamant (Cape Diamond) in the Cap-Rouge area of central Quebec in 1541. When he returned to France, he learned that the sparkling stones he had carried back from his expedition were actually quartz crystals and iron pyrite. Cartier’s geological faux pas gave rise to the French saying: “faux comme les diamants du Canada” (as false as Canadian diamonds). Today, Canadian diamonds account for approximately 17 per cent of the world’s production. Although operations are currently concentrated in the Northwest Territories and Northern Ontario, Cartier would no doubt feel vindicated as Stornoway Diamond Corporation’s Renard project is on track to become Quebec’s first diamond mine. The potential that Cartier imagined centuries ago is certainly being realized today as the Quebec minerals industry represents a business in excess of $6 billion and accounts for more than 50,000 direct jobs. However, Mother Nature surely did not have convenience in mind when she deposited Quebec’s mineral riches, many of which reside north of the 49th parallel. In this issue, we take a close look at the Quebec mining industry in the context of Le Plan Nord, an ambitious $80 billion economic, social and environmental plan to develop the mining, forestry and energy resources of Northern Quebec over the next 25 years. Writer Alexandra Lopez-Pacheco speaks with representatives from industry, government and communities as she explores some of the prospects and pitfalls of what has been referred to as “the project of a generation.” No matter what side of the debate one finds oneself, it seems clear that the particulars of how the plan is carried out will undoubtedly have tremendous consequences on this, and future generations. This issue’s featured project profiles how Indian conglomerate Tata Steel and New Millennium Iron Corporation (NML) are realizing their own ambitious plans as they join forces to develop a high-grade iron project in northeastern Quebec and Labrador. Through the joint venture called Tata Steel Minerals Canada, Tata Steel will get access to a valuable iron source it needs for its European operations, and NML to the capital it needs to develop a 210-kilometre-long chain of deposits. Be sure to check out the “last call” for CIM award nominations – closing on December 15. Don’t miss this opportunity to shine the light on the achievements of colleagues who are making a difference in the many facets of the industry. Finally, nominations are also being sought for some key CIM Council positions, including president-elect (2012-2013) and vice-president districts 2, 4 and 6. Nominations are due by December 31 and more information can be found on page 53 (English) and page 62 (French).

A

Angela Hamlyn, Editor-in-chief 6 | CIM Magazine | Vol. 6, No. 7

Ryan Bergen, rbergen@cim.org News and Upfront:

Peter Braul, pbraul@cim.org Columns, CIM News, Histories and Technical Section:

Andrea Nichiporuk, anichiporuk@cim.org Hartley Butler George, hbgeorge@cim.org Web Editor Nathan Hall, nhall@cim.org Publisher CIM Contributors Richard Andrews, Luc Arsenault, Jon Baird, A. Baldwin, Correy Baldwin, R. J. Cathro, Peter Diekmeyer, Heather Ednie, Marlene Eisner, Lindsay Forcellini, Fathi Habashi, Tom Hynes, Charles Kazaz, Krystyna Lagowski, Graham Lanktree, Alexandra Lee, Alexandra LopezPacheco, Jean Masson, Eavan Moore, Juan Carlos Reyes, Serge Simard, Staff of Metals Economics Group, Paul Stothart, Dan Zlotnikov Published 8 times a year by CIM 1250 – 3500 de Maisonneuve Blvd. West Westmount, QC, H3Z 3C1 Tel.: 514.939.2710; Fax: 514.939.2714 www.cim.org; Email: magazine@cim.org Subscriptions Included in CIM membership ($150.00); Non-members (Canada), $168.00/yr (GST included; Quebec residents add $12.60 PST; NB, NL and NS residents add $20.80 HST); U.S. and other countries, US$180.00/yr; Single copies, $25.00. Advertising Sales Dovetail Communications Inc. 30 East Beaver Creek Rd., Ste. 202 Richmond Hill, Ontario L4B 1J2 Tel.: 905.886.6640; Fax: 905.886.6615; www.dvtail.com National Account Executives 905.886.6641 Janet Jeffery, jjeffery@dvtail.com, ext. 329 Neal Young, nyoung@dvtail.com, ext. 325 Michael Hackett-Pedler, mhackett-pedler@dvtail.com, ext. 317

This month’s cover Looking out on Hudson Bay from Inukjuak, Quebec David Rouault/Rouault.net Layout and design by Clò Communications Inc. www.clocommunications.com Copyright©2011. All rights reserved. ISSN 1718-4177. Publications Mail No. 09786. Postage paid at CPA Saint-Laurent, QC. Dépôt légal: Bibliothèque nationale du Québec. The Institute, as a body, is not responsible for statements made or opinions advanced either in articles or in any discussion appearing in its publications.

Printed in Canada



president’s notes Wanted: Trusted counselors Mentoring has a long history. In Homer’s Iliad, Odysseus entrusted the education of his son Telemachus to his old friend, Mentor. And, although revealed to us more recently, “a long time ago in a galaxy far, far away” Obi-wan Kenobi mentored Anakin Skywalker and his son Luke. To help solve the enormous challenge of our current shortage of skilled, dedicated people, our industry will need similar heroes. Mentoring by our more experienced members will be essential to welcome, nurture and develop new protégés. As a trusted counselor, a mentor must be willing and prepared to discuss a protégé’s needs and hopes openly, objectively and in confidence. CIM is rolling out our new Leadership Development Program to ensure that our industry is defined by leadership excellence in addition to technical excellence. Exceptional leadership will be developed and defined by good mentorship and that is why CIM’s leadership program will provide senior industry executive mentors for participants, and also guide the development of each participant’s own mentoring skills. Jethro Tull sang to us, “Your wise men don’t know how it feels to be thick as a brick.” All of us mentors need to pay attention to this. We are mentors in part because of our greater experience; however, if presented crudely or arrogantly, this may intimidate our protégés. To paraphrase from a recent on-target phrase from The Economist, I humbly ask our mentors to be courteous and gentle, and to remind yourselves how ignorant it is to have forgotten what it felt like to have but little experience.

Chuck Edwards CIM President

Conseillers de confiance recherchés Le mentorat ne date pas d’hier. Déjà, dans l’Illiade d’Homère, Ulysse confia l’éducation de son fils Télémaque à son vieil ami, Mentor. Et, bien que nous l’ayons appris plus récemment, « il y a bien longtemps dans une galaxie lointaine, très lointaine » Obi-wan Kenobi a été le mentor d’Anakin Skywalker, puis de son fils Luke. Voilà le genre de héros dont notre industrie aura besoin pour contribuer à résoudre l’énorme défi posé par la pénurie actuelle de personnes compétentes et dévouées. Il est essentiel que nos nouveaux protégés bénéficient de l’encadrement de nos membres les plus expérimentés qui veilleront à leur perfectionnement. À titre de conseiller de confiance, un mentor doit être prêt à discuter ouvertement, objectivement et en toute confiance des besoins et des espoirs de son protégé. L’ICM met en œuvre son nouveau programme de perfectionnement du leadership pour que notre industrie soit synonyme d’excellence en leadership, mais aussi d’excellence technique. Un leadership exceptionnel sera développé et défini par un bon encadrement. C’est pourquoi le programme élaboré par l’ICM fera

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bénéficier les participants de l’encadrement de cadres supérieurs de l’industrie et orientera le développement des propres aptitudes de chaque participant pour le mentorat. Jethro Tull nous a chanté, «Your wise men don’t know how it feels to be thick as a brick » (vos hommes sages ignorent ce que c’est que de se sentir épais comme une brique ). En tant que mentors, nous devons tous faire attention à cela. Nous sommes des mentors, en partie à cause de notre plus grande expérience, mais si nous manquons de délicatesse et faisons preuve d’arrogance, nous pourrions intimider nos protégés. Pour paraphraser une formule récente particulièrement vraie de The Economist, je prie humblement nos mentors de se montrer courtois et aimables et de se souvenir que c’est faire preuve d’ignorance que d’oublier comment on se sent quand on a peu d’expérience.

Chuck Edwards Président de l’ICM



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CIM gets LinkedIn

CIM’s LinkedIn group provides enlightening feedback CIM currently boasts over 3,000 members on LinkedIn. Join us today and get involved in the compelling dialogue. Below are a few of the myriad LinkedIn comments received daily in response to CIM Magazine’s editorial topics.

What makes a great leader? Leading by example: August 2011, Vol. 6, No. 5, p. 26 Great leaders are tested when relationship problems surface. Process or equipment problems do not have emotions as their root cause. Repairs or redesign can be accomplished objectively to eliminate these problems and are expected as part of meeting production goals. However, relationship problems between departments or members of the management team are often ignored for years because they are rooted in emotions and the “power structure.” Great leaders understand that they may be the only people that can initiate actions that solve relationship problems. Their courage and commitment during the process set powerful examples for the rest of the workforce and management team, making it possible to address similar issues in other areas – maybe for the first time. As a result, work, trust and a sense of teamwork increase.

In the beginning, there was nature – wild and untamed. In the forest, animals were always afraid: afraid they might not find food and starve to death, and afraid that they may become food and be killed. The world today can be equated with the jungle. Like animals, executives feel they have to compete in order to survive and thrive. The more cunning among us seem to reach higher in the food chain. It’s time to change: an ideal boss today must make sure there is perfect harmony in the organization and every employee must feel safe and secure. Everyone should be giving their best and feel appreciated. No one should be jealous, territorial or feel exploited. There should be warmth and affection all around. Praveen Kumar, Chief Mining Engineer, Zamin Resources Limited, Uruguay

Kay Sever, President of OptimiZ Consulting LLC, Phoenix, Arizona

A sense of humor helps a lot. A leader should also be willing to be approachable. I have always found the most effective leaders didn’t need to raise their voices but still managed to get their goals conveyed. Unfortunately, there are too many people without an innovative and curious disposition. A leader has to have a sense of the potential in a situation. It is simply not good enough to say, “we have a budget and all we have to do is stick to it.”

To be a good leader, one should also be a good follower. Ariel Santiago, Quarry Manager, Lafarge Republic Teresa plant, Philippines, Asia

A good leader must walk the talk. He or she must be an example to his or her workforce. Simon Kuta, Regional Content Officer, Barrick Gold Corporation, Tanzania, Africa

John Cairns, Senior Mining Engineer, wardrop Engineering, Saskatchewan, Canada

At the end of the day, I’ve learned much more from the bad leaders that I’ve worked under, than the good leaders. Make notes on the bad leaders that you work under and vow not to inflict those issues upon your tutelage. Learn from others’ mistakes and don’t repeat them. Pass the knowledge on… Jonathan West, wireless Program Project Manager, denver, Colorado

There are several characteristics that can make up a leader but being able to take the initiative, pulling a team together, not thinking of yourself and rather the company (or team)...these are indications of a good leader. Andrea Sedgwick, R&d Mining Lead, Total E&P Canada, Calgary, Alberta

Controversial project at Fish Lake: Do you think the federal government should go for it? New Prosperity plans would save lake: August 2011, Vol. 6, No. 5, p. 18 Great article. I hope the First Nations people understand that the original plan was the only economically feasible solution at the beginning of the project, but now that copper and gold prices have escalated, Taseko can implement a more environmentally friendly solution. Let’s see if the federal government will approve this plan. Tony Francelj, Business Segment Manager, Siemens, Atlanta, Georgia

I believe it’s a very viable project. I hope the outcome is positive and they get the go-ahead. Taseko has done a great job in bringing all of the parties together. The result will mean needed jobs in the employment-stressed community for many years to come. Rick Monsigneur, Strategic Account Executive, Baldor Electric, Vancouver, Canada

SCAN THE QR CODE wITH yOUR SMART PHONE TO BE TAkEN dIRECTLy TO CIM’S LINkEdIN PAGE.

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news “Forever is a very long time” International mine closure conference makes its Canadian debut By Ryan Bergen

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Once an open pit clay mine, the Eden Project in Cornwall, England, is now an environmental tourism destination and educational charity.

Courtesy of Eden Project/Tamsyn Williams

To satisfy the requirements of the Ghanaian government and recover its bond, Golden Star Resources, the operator of the Wassa Mine, planted trees where mining operations had been completed. To satisfy their needs, the surrounding residents cut down those trees and planted corn before the bond could be recovered. Mark Thorpe, vice-president of sustainability at Golden Star, explained that the company has since adapted its reclamation efforts, engaged the local residents and found a more practicable solution that addresses the socio-economic and environmental aspects that modern mining operations contend with as a part of the mine closure and reclamation process. The lessons learned by Golden Star were some of many that were shared at the International Conference on Mine Closure held in Lake Louise, Alberta, in September. This was the sixth edition of the conference, but the first time that it was hosted in the Northern Hemisphere. The change of venue was warranted: the 600 spaces for delegates were claimed weeks before the event. The attendees came from around the world and included a delegation of government officials from Papua New Guinea looking to integrate best practices into development of its closure regulations. In his opening remarks, Les Sawatsky, a principal at Golder Associates and the conference chair, laid out the daunting challenge facing the industry, which has a much longer history of opening mines than closing them effectively. “What gives us the right to expect future generations to maintain thousands of closed mines that are vulnerable to failure with catastrophic consequences? To me, it is inconceivable that any provision to protect vulnerable closed mines with a

plan for perpetual maintenance will be heeded or remembered after a thousand years, or even a hundred years.” Beyond the moral imperative, Bruce Kelley, global practice leader for environment at Rio Tinto, presented a compelling business case for early and comprehensive mine closure planning. The multinational miner, he explained, has closure liabilities in the billions of dollars. The social licence of each new mine site is tied to the effective closure of other sites, and with a geographical footprint of 40,000 square kilometres, the company cannot escape notice. “Closure,” said Kelley, “is a core business function.” Andrew Robertson, president of Robertson GeoConsulants, pointed out that mines are only growing larger, which means the disturbance of more land, the creation of more waste and the construction of higher tailings dams – all of which increase the level of risk. With this sobering introduction, Robertson outlined a top 10 list

of problems associated with the practice of mine closure, where, he said “there have been more ‘oops’ moments than ‘eureka!’ moments.” The perpetual forces of nature and unforeseen catastrophic events have their places on the list, but the majority of shortcomings are related to inadequate planning, underfunding and undue “optimism for the effectiveness of new, novel and sensitive technology.” What constitutes successful closure continues to evolve. Technical sessions focused on the nuts and bolts of reclamation such as soils and pit lakes, but there was also a discussion of the aesthetic aspect of reclaimed land and a strong emphasis on addressing the socio-economic impact of closure on the communities around the mine. Golden Star, confronted with its closure dilemma, ultimately created a palm oil plantation that has created a source of revenue for the local residents and satisfied its reclamation requirements.


news Following the conference, Gord McKenna, a geotechnical engineer with BGC Engineering and a presenter, reiterated the growing attention to community engagement across the industry. “My sense is that the greatest recent revolution is in the social aspects of mining and mine closure and the need to work closely and continually with local communities,” he said. “True collaboration and shared decision-making was a new theme this year.” “I was pleasantly surprised,” said Sawatsky after the event, “to hear a number of plenary speakers caution the delegates to avoid being too optimistic in predicting performance of their mine closure plan, and to plan for the occurrence of extreme events that will certainly occur sometime in the future, albeit infrequently. Closed mines should be designed to function with minimal negative environmental impact, forever. Forever is a very long time.” CIM

MOVING ON UP Jerry Janik became the general manager of Ontario Graphite Limited’s Kearney Graphite Mine in September. He brings more than 20 years of mining industry experience, namely in quality control, mine planning, tailings deposition, production, project management, process improvement, permitting and new product development. The reopening of the mine is planned for mid-2012. He will have overall responsibility for the facility’s operation, including ensuring adherence to high standards in quality, environmental stewardship and employee safety. *** Jonathan Wilkinson joined BioteQ Environmental Technologies, Inc. as its CEO, replacing Brad Marchant. Wilkinson has extensive experience in the clean technology sector and public markets, leading companies through growth and change. He joins BioteQ from Nexterra Systems Corporation, where he was the senior vice-president of business development. *** Walter Energy has named Walter Sheller CEO of the company. Scheller, who previously was president of the company’s U.S. operations, replaces interim CEO Joseph Leonard. He was also elected to the board of directors.

November 2011 | 13


news Everyone under the same umbrella John Ruggie addresses concerns about business and human rights

Mike Pinder

By Peter Braul and Andrea Baldwin

On September 15th, a multi-stakeholder group met to hear Professor John Ruggie speak about his work at the UN developing a human rights framework for policy creation.

Professor John Ruggie’s “Protect, Respect, Remedy” framework for human rights and business has been a long time coming. It was welcomed by the United Nations in 2008, and the “Guiding Principles” for implementation were endorsed this year. In all, Ruggie and colleagues have spent

14 | CIM Magazine | Vol. 6, No. 7

more than six years on these issues, and the United Nations Secretary-General’s former Special Representative on Human Rights and Business spoke about his work to a multi-stakeholder group on September 15 on behalf of the Centre for Excellence in CSR. His presentation there was one of many

stops to provide encouragement and build support for the dialogue and effort still needed to drive widespread changes. The three core principles of the framework consist of the obligation of the state to protect against human rights abuses by third parties, including businesses; the corporate responsibility to respect human rights; and the need for greater access by those who have been wronged to effective remedy. “Human rights and treating people with dignity are core to social sustainability – we assumed that and built from there,” Ruggie told the group, which included academics, non-governmental organization (NGO) participants, consultants, government observers and industry representatives. The event was held under “Chatham House Rules,” so it is not possible to identify individual stakeholders and their comments. Most present praised the work recognizing that the Guiding Principles have provided a much needed foundation for further work. Many confirmed their support for a process


news John Ruggie, the former Special Representative on Human Rights and Business for the United Nations Secretary-General speaking about the guiding principles he developed.

Mike Pinder

that encourages preventive and remedial measures. Ruggie’s recent work, attempting to push the Organisation for Economic Co-operation and Development (OECD) and other multi-lateral bodies towards common standards, was also applauded. Concerns were focused on how to make the framework easier to implement and how to address perceived shortcomings in the guidance on judicial and non-judicial remedies. Much of the discussion focused on the responsibilities of the different actors: the legal obligations of government under international human rights law, and companies responsible for managing the adverse impacts of their own activities and business relationships connected to these activities. Some noted an increasing need for clarity in the role of civil society – groups outside formal government and market structures such as NGOs, professional associations

and community groups. Currently, civil society is only mentioned in the Guiding Principles with respect to implementation of effective grievance

mechanisms, a responsibility that it shares with industry and government. Some of the most striking discussion spurred by Ruggie’s talk focused on the Canadian government’s opportunity to play a more significant role internationally and at home. Attendees saw the potential for the Canadian government to support host country interventions, capacity building and many other initiatives as the framework begins to be put in place worldwide. Ruggie and his colleagues have already moved on to the next steps towards implementation. Several members of his UN team have formed a new non-profit organization called Shift, a centre for business and human rights practice; Ruggie will chair its board of directors. He will also take over as Chair of the Institute for Human Rights and Business’ International Advisory board in January 2012. CIM

November 2011 | 15


news Mining conference cultivates sustainable thinking Reinforcing the Swedish-Canadian alliance By Krystyna Lagowski

Courtesy of Atlas Copco

The first all-day SwedishAtlas Copco’s newest mine trucks use an engine that is seven to 12 per cent more efficient. Canadian mining conference, headlined “Innovative, sustainable and profitable mining,” was staged September 21 at the Hilton Toronto Hotel. Sweden’s key industry players designed the event to showcase their strengths and build on alliances between the two nations. As such, there was a strong presence from both Swedish and Canadian governments, as well as close to 200 Canadian mining executives and decision-makers. Throughout the day, there were presentations from a host of senand EKN, all highlighted their excelAtlas Copco Construction and Mining ior officials from Swedish mining and lence in everything from ore trucks to Canada, noted that his organization mining-related firms. Atlas Copco, fan bearings. has just become a member of the Dow Volvo and other manufacturers, as well Reg Labelle, national sales and Jones Sustainability Index, which proas Swedish export credit firms SEK business development manager for vides a benchmark for asset managers

GIVING BACK

UNB unveils Quartermain Earth Science Centre The University of New Brunswick (UNB) in Fredericton is now home to the Quartermain Earth Science Centre thanks to a $1 million contribution by UNB alumnus and mining executive, Robert Quartermain. After a lifetime of searching for the earth’s rarest minerals, Quartermain, Pretium Resources’ president and CEO, is sharing his passion for geology with the public. The Quartermain Centre opened in October and will showcase earth science teachings, research and outreach.

Courtesy of UNB/Rob Blanchard

Located in UNB’s forestry and geology building, the centre includes dinosaur replicas, a large-scale display showing a journey to the centre of the earth, a working seismograph and a mineral showcase. It also contains a new computer lab and will serve as a storehouse for items and information that are important to the area’s geology. The centre’s curator, Adrian Park, will also offer tours, making it a valuable outreach tool for the university.

16 | CIM Magazine | Vol. 6, No. 7

Quartermain not only donated funds to renew the department of earth sciences and develop the centre, but he has also set aside funds to support the development of the facility. His past contributions to UNB include: establishing the Silver Standard Arnie McAllister Fund, which provides the opportunity for students to visit geological sites around the world; creating the Robert Quartermain Geology Scholarships; and providing a leadership gift in support of the Quartermain Sports Medicine Centre.


news that are investing in sustainable companies. Labelle offered a number of examples of Atlas Copco products that are already designed with energy efficiency in mind: the engine for their newest mine truck is seven to 12 per cent more fuel efficient, and the latest compressor energy recovery unit for rotary screw compressors enables up to 94 per cent of the energy from wasted compression heat to be recovered. Atlas Copco already does major business in Canada (18 per cent of its revenue comes from North America) but they hope upcoming improvements in technology will increase that. The company has set its sights on improving energy efficiency by 20 per cent over the next nine years. Four per cent of the annual budget will be dedicated to research and development in order to help reach that goal. Joao Ricciarelli, president of SKF Canada, explained how SKF evolved from a Swedish bearing business to an expert in international asset efficiency optimization. In 2010, SKF had sales of $9.3 billion, investing 3.5 per cent in research and development. “A bearing is worth only a cent,” said Ricciarelli, “but the money and effort and the impact on energy and sustainability to replace that cent is outrageous. That’s why we work closely with our customers to develop strategic solutions to get the most out of their equipment.” He gave the example of one company with a problematic iron ore grinding mill. When SKF did a design review, it found there was a seal problem and developed a solution, which reduced grease consumption from 1,000 kilograms to 15 kilograms per year, a substantial savings in both economic and environmental cost. Ricciarelli commented that he would like to see Canadians become less risk-averse. “Swedes are conservative, but Canadians are even more conservative,” he said. “In Sweden, we have had to overcome our risk-averse attitude in order to try new and different approaches, which have been tried

and tested around the world. SKF has over two million customers all over the world, and we would like to work more with Canadians.” Sweden’s geology is similar to Canada’s in many ways, and for centuries mining has been a huge industry there. Just as Canada rests on the Canadian Shield, Sweden is located on the Fennoscandian Shield, which is laden with iron, nickel and copper deposits. And also like Canada, the mining industry in Sweden is bustling with new mines as well as revitalized old ones. Currently, there are 13 metal mines in production in Sweden, 50 industrial mineral mines and 60 quarries. Iron, copper, zinc, lead, silver and gold are all being produced. Up to 24 per cent of the world’s minerals are consumed in Europe, but only four per cent are produced there. In order to compete outside the small Swedish market, Swedes are faced with a continuous search for efficiency, technological development and increased productivity. The same drive to com-

pete has Sweden investing heavily in exploration and prospecting, especially in the north, and looking to strengthen its connections with Canada. It has also been exploring opportunities elsewhere – a similar mining conference took place in Australia in November, and there are plans for a Chilean edition in the near future. Much of Sweden’s success in the mining industry started in the 1970s, said Magnus Andersson of the Swedish Trade Council, when the country was dependent on oil. As the oil crisis came, the country was forced to make radical changes; it established renewable energy policies, encouraged by tax incentives and legislation. “Since the Kyoto agreements, CO2 emissions in Sweden have been reduced by 10 per cent, but at the same time, we have had continuous economic growth,” he said. Andersson added that Canada’s CO2 emissions have increased by 25 per cent. He said Sweden’s success offers proof that sustainability and innovation can be profitable. CIM

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November 2011 | 17


news On the campaign trail MAC rallies government support with clever mining endorsements By H. B. George If you are travelling to Ottawa this fall, you might notice the mining industry’s presence in more ways than one – at least, that is what the Mining Association of Canada (MAC) is hoping. MAC has released a new marketing campaign across the city with the slogan, “Before it’s yours, it’s mined,” to remind the public of the industry’s broad reach. The campaign is timed to coincide with Ottawa’s Mining Day on the Hill, an annual event that brings together mining industry representatives and federal decision-makers for a day of meetings. It aims to show the public the many facets of our world that are touched by the industry: from green energy and life-saving nutrition programs in Africa, to economic growth and everyday technology.

18 | CIM Magazine | Vol. 6, No. 7

Nine different ads commissioned by MAC are featured across Ottawa.

Throughout October and November, a series of nine different ads are being featured in the Ottawa airport and bus shelters across the city. The bus shelters were selected because of their proximity to key government departments, with the intention that the campaign’s message will resonate with the bureaucrats and ministers who work nearby. GWP Brand Engineering, the creative minds behind this campaign, wanted to reach both the general public and the government to create a baseline of awareness. MAC estimates that over the next five years, more than $137 billion could be invested in new and expanding mining projects. To do this, the industry will need government support in the form of regulatory efficiency, investment in infrastructure and human resources. Paul Hébert, MAC’s vice-president of government affairs, believes MAC will get more from its government requests if the audience has a better understanding of the contributions mining makes. “Mining is absent from the consciousness of people in urban centres despite the fact that it is omnipresent in their lives,” he said. “We rely on these commodities everyday. For example, you don’t get any more Canadian than hockey. Without mining, you don’t have skates, equipment, a net – you don’t have our national game.” Hébert says this is just the beginning of the kind of outreach MAC has planned for the future. “The mining industry is experiencing an opportunity it hasn’t had since the economic boom of the 1950s,” he explained. “Emerging economies are creating new possibilities. If industry and government get it right, together, we can capitalize on this opportunity for the benefit of all Canadians.” CIM


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news Online resource opens door to exploration CanGeoRef will provide “one-portal access to all Canadian geoscience literature”

A searchable database of Canadian geoscience literature called CanGeoRef was launched September 15 by the Canadian Federation of Earth Sciences (CFES). The new service is expected to be a one-stop shop for academics and professionals doing research in the geosciences in Canada. Since the 1960s, The American Geological Institute (AGI) has been curating a global, searchable database of geoscience information called GeoRef; however, it has some gaps in its Canadian coverage, so CFES saw room for improvement. In collaboration with AGI, CFES took about a year and a half to assemble their new database. Data entry, the laborious task of collecting, formatting and inputting the references, was contracted out to Victora-based Purple Rock Inc., whose staff worked with information specialists in all provincial and territorial governments to ensure the smooth transfer of data. While GeoRef is a good source for many users, the Canadian content of the database has not been complete since the mid-1990s. “In the early days of digitization, these processes [of curating information] often became very expensive,” explains Elisabeth Kosters, the executive manager of CFES and the self-described “central spider” in the CanGeoRef

Courtesy of CanGeoRef

By Peter Braul

CanGeoRef’s online portal is an affordable, searchable database of Canadian geoscience literature. The Canadian Federation of Earth Sciences collaborated with the American Geological Institute to create the new service.

web. She says the provinces and territories went their separate ways for economic reasons, leaving GeoRef lacking. The Canadian data was still available, but only for those who knew where to get it and were adept at sifting through the various sources – from university collections to government agencies. “For each province, it was very well organized, but they weren’t linked,” says Kosters. The new database will allow users to access all of the Canadian literature published since the early 1800s and aims to be more affordable than GeoRef – a boon for the smaller companies operating here. “Many small or midsized organizations can’t afford subscriptions to GeoRef; it’s thousands of dollars,” says Kosters. In contrast, access to the Canadian database starts at US$65 for individual consultants, with prices that scale up depending on the size of the company or institution that subscribes. And though the information on CanGeoRef is sure to appeal to Canadians, Kosters expects the service to attract users from the 12 states that flank Canada’s borders as well. According to François Goulet, an exploration consultant based in Montreal, the new database will be “useful because it is a one-place search.” He says the all-inclusive aspect of services like CanGeoRef and GeoRef takes away the uncertainty that occurs when information is scattered in many locations. “If you can’t find it in GeoRef, you will have a hard time finding what you need.” There are already over 200,000 references in CanGeoRef, but the database will continue to incorporate more provincial and territorial journal literature, meeting proceedings and abstracts, maps, books, reports and academic theses until phase one is complete in 2013. Phase two will see the assessment reports from all of the provinces and territories added to the database. CIM

20 | CIM Magazine | Vol. 6, No. 7


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news Social licence under the microscope A problem with the oil sands or a question of policy?

Don Thompson was driving down a congested Highway 401 in late September when he heard on the radio that about 300 people had gathered on Parliament Hill in Ottawa to oppose Alberta’s oil sands and the Keystone XL pipeline. “I reflected on the fact that there were probably 300 people a minute passing that spot on the highway, and they do this every day,” said Thompson, the executive advisor of sustainability and outreach at Canadian Oil Sands Limited. It is not hard to understand why, according to recent polls, “75 per cent of Canadians support development, as long as it’s done in an environmentally responsible manner,” Thompson said. “The vast majority of Canadians understand that they need a safe, reliable, affordable source Media coverage of resistance against Alberta's oil sands has ignored research showing that the majority of Canadians of energy to make their own support responsible development. lives work. I think most [of the protesters] are more concerned with best the industry can do is solve 20 has now given the industry clear guidethe ongoing use of fossil fuels than percent of the problem,” he said. “We lines and timelines for when they they are about the oil sands per se,” he would like the tailings ponds solidified. can’t do it alone, and we need all segadded. And dependence on those fuels ments of society to contribute.” “This has helped the industry to make is not something oil producers can do “We can maintain the same lifestyle informed decisions on how to improve a lot about. “I’m not convinced that with less energy consumption, using its environmental management,” he people are against oil sands as much as better technology,” Thompson added. said. “Companies have demonstrated “But the unfortunate thing is that the that they can solidify a tailings pond.” they are against what they represent. For the industry, there is an acute Despite the fact that there are a small transition is going to take a long time. It’s not responsible to say we should go need for good communication. U.S. number of people who are against the President Obama’s decision on the fate off fossil fuels in X number of years.” oil sands, they are going to be part of of Keystone XL is due this month, and “I think, the industry is recognizing the energy mix for some long while.” the stakes are high for both industry that it needs to do more to have its On the other hand, activists are and the public to engage each other social licence to work in the oil sands,” calling for a rapid switch to renewable successfully. said Nathan Lemphers, a senior policy energy sources. “We have moved to a Ultimately, said Thompson, we analyst with the Pembina Institute. particularly vicious and dirty technolshould not be discussing whether or not, Progress, he said, is being made ogy, which destroys the environment,” but how, the oil sands go ahead. “‘Oil or through cooperation between regulasaid protester and Carleton University no oil’ is not the question. We cannot tors and the industry, citing the professor Manfred Bienefeld. run our world today without oil,” he example of the Alberta Energy But according to Thompson, 80 per stated. “The question is: ‘if not from Resources Conservation Board’s Direccent of greenhouse gas emissions tive 74, a tailings pond performance Canada, then from where?’ And I think come from our consumption, and not CIM sometimes people get confused.” criteria, with which the government the production of fossil fuels. “The 22 | CIM Magazine | Vol. 6, No. 7

Graham Lanktree

By Graham Lanktree


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CIM’s LinkedIn group provides enlightening feedback CIM currently boasts over 3,000 members on LinkedIn. Join us today and get involved in the compelling dialogue. Below are a few of the myriad LinkedIn comments received daily in response to CIM Magazine’s editorial topics.

What makes a great leader? Leading by example: August 2011, Vol. 6, No. 5, p. 26 Great leaders are tested when relationship problems surface. Process or equipment problems do not have emotions as their root cause. Repairs or redesign can be accomplished objectively to eliminate these problems and are expected as part of meeting production goals. However, relationship problems between departments or members of the management team are often ignored for years because they are rooted in emotions and the “power structure.” Great leaders understand that they may be the only people that can initiate actions that solve relationship problems. Their courage and commitment during the process set powerful examples for the rest of the workforce and management team, making it possible to address similar issues in other areas – maybe for the first time. As a result, work, trust and a sense of teamwork increase.

In the beginning, there was nature – wild and untamed. In the forest, animals were always afraid: afraid they might not find food and starve to death, and afraid that they may become food and be killed. The world today can be equated with the jungle. Like animals, executives feel they have to compete in order to survive and thrive. The more cunning among us seem to reach higher in the food chain. It’s time to change: an ideal boss today must make sure there is perfect harmony in the organization and every employee must feel safe and secure. Everyone should be giving their best and feel appreciated. No one should be jealous, territorial or feel exploited. There should be warmth and affection all around. Praveen Kumar, Chief Mining Engineer, Zamin Resources Limited, Uruguay

Kay Sever, President of OptimiZ Consulting LLC, Phoenix, Arizona

A sense of humor helps a lot. A leader should also be willing to be approachable. I have always found the most effective leaders didn’t need to raise their voices but still managed to get their goals conveyed. Unfortunately, there are too many people without an innovative and curious disposition. A leader has to have a sense of the potential in a situation. It is simply not good enough to say, “we have a budget and all we have to do is stick to it.”

To be a good leader, one should also be a good follower. Ariel Santiago, Quarry Manager, Lafarge Republic Teresa plant, Philippines, Asia

A good leader must walk the talk. He or she must be an example to his or her workforce. Simon Kuta, Regional Content Officer, Barrick Gold Corporation, Tanzania, Africa

John Cairns, Senior Mining Engineer, wardrop Engineering, Saskatchewan, Canada

At the end of the day, I’ve learned much more from the bad leaders that I’ve worked under, than the good leaders. Make notes on the bad leaders that you work under and vow not to inflict those issues upon your tutelage. Learn from others’ mistakes and don’t repeat them. Pass the knowledge on… Jonathan West, wireless Program Project Manager, denver, Colorado

There are several characteristics that can make up a leader but being able to take the initiative, pulling a team together, not thinking of yourself and rather the company (or team)...these are indications of a good leader. Andrea Sedgwick, R&d Mining Lead, Total E&P Canada, Calgary, Alberta

Controversial project at Fish Lake: Do you think the federal government should go for it? New Prosperity plans would save lake: August 2011, Vol. 6, No. 5, p. 18 Great article. I hope the First Nations people understand that the original plan was the only economically feasible solution at the beginning of the project, but now that copper and gold prices have escalated, Taseko can implement a more environmentally friendly solution. Let’s see if the federal government will approve this plan. Tony Francelj, Business Segment Manager, Siemens, Atlanta, Georgia

I believe it’s a very viable project. I hope the outcome is positive and they get the go-ahead. Taseko has done a great job in bringing all of the parties together. The result will mean needed jobs in the employment-stressed community for many years to come. Rick Monsigneur, Strategic Account Executive, Baldor Electric, Vancouver, Canada

SCAN THE QR CODE wITH yOUR SMART PHONE TO BE TAkEN dIRECTLy TO CIM’S LINkEdIN PAGE.

10 | CIM Magazine | Vol. 6, No. 7

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news “Forever is a very long time” International mine closure conference makes its Canadian debut By Ryan Bergen

12 | CIM Magazine | Vol. 6, No. 7

Once an open pit clay mine, the Eden Project in Cornwall, England, is now an environmental tourism destination and educational charity.

Courtesy of Eden Project/Tamsyn Williams

To satisfy the requirements of the Ghanaian government and recover its bond, Golden Star Resources, the operator of the Wassa Mine, planted trees where mining operations had been completed. To satisfy their needs, the surrounding residents cut down those trees and planted corn before the bond could be recovered. Mark Thorpe, vice-president of sustainability at Golden Star, explained that the company has since adapted its reclamation efforts, engaged the local residents and found a more practicable solution that addresses the socio-economic and environmental aspects that modern mining operations contend with as a part of the mine closure and reclamation process. The lessons learned by Golden Star were some of many that were shared at the International Conference on Mine Closure held in Lake Louise, Alberta, in September. This was the sixth edition of the conference, but the first time that it was hosted in the Northern Hemisphere. The change of venue was warranted: the 600 spaces for delegates were claimed weeks before the event. The attendees came from around the world and included a delegation of government officials from Papua New Guinea looking to integrate best practices into development of its closure regulations. In his opening remarks, Les Sawatsky, a principal at Golder Associates and the conference chair, laid out the daunting challenge facing the industry, which has a much longer history of opening mines than closing them effectively. “What gives us the right to expect future generations to maintain thousands of closed mines that are vulnerable to failure with catastrophic consequences? To me, it is inconceivable that any provision to protect vulnerable closed mines with a

plan for perpetual maintenance will be heeded or remembered after a thousand years, or even a hundred years.” Beyond the moral imperative, Bruce Kelley, global practice leader for environment at Rio Tinto, presented a compelling business case for early and comprehensive mine closure planning. The multinational miner, he explained, has closure liabilities in the billions of dollars. The social licence of each new mine site is tied to the effective closure of other sites, and with a geographical footprint of 40,000 square kilometres, the company cannot escape notice. “Closure,” said Kelley, “is a core business function.” Andrew Robertson, president of Robertson GeoConsulants, pointed out that mines are only growing larger, which means the disturbance of more land, the creation of more waste and the construction of higher tailings dams – all of which increase the level of risk. With this sobering introduction, Robertson outlined a top 10 list

of problems associated with the practice of mine closure, where, he said “there have been more ‘oops’ moments than ‘eureka!’ moments.” The perpetual forces of nature and unforeseen catastrophic events have their places on the list, but the majority of shortcomings are related to inadequate planning, underfunding and undue “optimism for the effectiveness of new, novel and sensitive technology.” What constitutes successful closure continues to evolve. Technical sessions focused on the nuts and bolts of reclamation such as soils and pit lakes, but there was also a discussion of the aesthetic aspect of reclaimed land and a strong emphasis on addressing the socio-economic impact of closure on the communities around the mine. Golden Star, confronted with its closure dilemma, ultimately created a palm oil plantation that has created a source of revenue for the local residents and satisfied its reclamation requirements.


news Following the conference, Gord McKenna, a geotechnical engineer with BGC Engineering and a presenter, reiterated the growing attention to community engagement across the industry. “My sense is that the greatest recent revolution is in the social aspects of mining and mine closure and the need to work closely and continually with local communities,” he said. “True collaboration and shared decision-making was a new theme this year.” “I was pleasantly surprised,” said Sawatsky after the event, “to hear a number of plenary speakers caution the delegates to avoid being too optimistic in predicting performance of their mine closure plan, and to plan for the occurrence of extreme events that will certainly occur sometime in the future, albeit infrequently. Closed mines should be designed to function with minimal negative environmental impact, forever. Forever is a very long time.” CIM

MOVING ON UP Jerry Janik became the general manager of Ontario Graphite Limited’s Kearney Graphite Mine in September. He brings more than 20 years of mining industry experience, namely in quality control, mine planning, tailings deposition, production, project management, process improvement, permitting and new product development. The reopening of the mine is planned for mid-2012. He will have overall responsibility for the facility’s operation, including ensuring adherence to high standards in quality, environmental stewardship and employee safety. *** Jonathan Wilkinson joined BioteQ Environmental Technologies, Inc. as its CEO, replacing Brad Marchant. Wilkinson has extensive experience in the clean technology sector and public markets, leading companies through growth and change. He joins BioteQ from Nexterra Systems Corporation, where he was the senior vice-president of business development. *** Walter Energy has named Walter Sheller CEO of the company. Scheller, who previously was president of the company’s U.S. operations, replaces interim CEO Joseph Leonard. He was also elected to the board of directors.

November 2011 | 13


news

cim.org/csr

Everyone under the same umbrella John Ruggie addresses concerns about business and human rights

Mike Pinder

By Peter Braul and Andrea Baldwin

On September 15th, a multi-stakeholder group met to hear Professor John Ruggie speak about his work at the UN developing a human rights framework for policy creation.

Professor John Ruggie’s “Protect, Respect, Remedy” framework for human rights and business has been a long time coming. It was welcomed by the United Nations in 2008, and the “Guiding Principles” for implementation were endorsed this year. In all, Ruggie and colleagues have spent

14 | CIM Magazine | Vol. 6, No. 7

more than six years on these issues, and the United Nations Secretary-General’s former Special Representative on Human Rights and Business spoke about his work to a multi-stakeholder group on September 15 on behalf of the Centre for Excellence in CSR. His presentation there was one of many

stops to provide encouragement and build support for the dialogue and effort still needed to drive widespread changes. The three core principles of the framework consist of the obligation of the state to protect against human rights abuses by third parties, including businesses; the corporate responsibility to respect human rights; and the need for greater access by those who have been wronged to effective remedy. “Human rights and treating people with dignity are core to social sustainability – we assumed that and built from there,” Ruggie told the group, which included academics, non-governmental organization (NGO) participants, consultants, government observers and industry representatives. The event was held under “Chatham House Rules,” so it is not possible to identify individual stakeholders and their comments. Most present praised the work recognizing that the Guiding Principles have provided a much needed foundation for further work. Many confirmed their support for a process


news John Ruggie, the former Special Representative on Human Rights and Business for the United Nations Secretary-General speaking about the guiding principles he developed.

Mike Pinder

that encourages preventive and remedial measures. Ruggie’s recent work, attempting to push the Organisation for Economic Co-operation and Development (OECD) and other multi-lateral bodies towards common standards, was also applauded. Concerns were focused on how to make the framework easier to implement and how to address perceived shortcomings in the guidance on judicial and non-judicial remedies. Much of the discussion focused on the responsibilities of the different actors: the legal obligations of government under international human rights law, and companies responsible for managing the adverse impacts of their own activities and business relationships connected to these activities. Some noted an increasing need for clarity in the role of civil society – groups outside formal government and market structures such as NGOs, professional associations

and community groups. Currently, civil society is only mentioned in the Guiding Principles with respect to implementation of effective grievance

mechanisms, a responsibility that it shares with industry and government. Some of the most striking discussion spurred by Ruggie’s talk focused on the Canadian government’s opportunity to play a more significant role internationally and at home. Attendees saw the potential for the Canadian government to support host country interventions, capacity building and many other initiatives as the framework begins to be put in place worldwide. Ruggie and his colleagues have already moved on to the next steps towards implementation. Several members of his UN team have formed a new non-profit organization called Shift, a centre for business and human rights practice; Ruggie will chair its board of directors. He will also take over as Chair of the Institute for Human Rights and Business’ International Advisory board in January 2012. CIM

November 2011 | 15


volvo.com atlascopco.ca ekn.se sek.se

news Mining conference cultivates sustainable thinking Reinforcing the Swedish-Canadian alliance By Krystyna Lagowski

Courtesy of Atlas Copco

The first all-day SwedishAtlas Copco’s newest mine trucks use an engine that is seven to 12 per cent more efficient. Canadian mining conference, headlined “Innovative, sustainable and profitable mining,” was staged September 21 at the Hilton Toronto Hotel. Sweden’s key industry players designed the event to showcase their strengths and build on alliances between the two nations. As such, there was a strong presence from both Swedish and Canadian governments, as well as close to 200 Canadian mining executives and decision-makers. Throughout the day, there were presentations from a host of senand EKN, all highlighted their excelAtlas Copco Construction and Mining ior officials from Swedish mining and lence in everything from ore trucks to Canada, noted that his organization mining-related firms. Atlas Copco, fan bearings. has just become a member of the Dow Volvo and other manufacturers, as well Reg Labelle, national sales and Jones Sustainability Index, which proas Swedish export credit firms SEK business development manager for vides a benchmark for asset managers

GIVING BACK

UNB unveils Quartermain Earth Science Centre The University of New Brunswick (UNB) in Fredericton is now home to the Quartermain Earth Science Centre thanks to a $1 million contribution by UNB alumnus and mining executive, Robert Quartermain. After a lifetime of searching for the earth’s rarest minerals, Quartermain, Pretium Resources’ president and CEO, is sharing his passion for geology with the public. The Quartermain Centre opened in October and will showcase earth science teachings, research and outreach.

Courtesy of UNB/Rob Blanchard

Located in UNB’s forestry and geology building, the centre includes dinosaur replicas, a large-scale display showing a journey to the centre of the earth, a working seismograph and a mineral showcase. It also contains a new computer lab and will serve as a storehouse for items and information that are important to the area’s geology. The centre’s curator, Adrian Park, will also offer tours, making it a valuable outreach tool for the university.

16 | CIM Magazine | Vol. 6, No. 7

Quartermain not only donated funds to renew the department of earth sciences and develop the centre, but he has also set aside funds to support the development of the facility. His past contributions to UNB include: establishing the Silver Standard Arnie McAllister Fund, which provides the opportunity for students to visit geological sites around the world; creating the Robert Quartermain Geology Scholarships; and providing a leadership gift in support of the Quartermain Sports Medicine Centre.


news that are investing in sustainable companies. Labelle offered a number of examples of Atlas Copco products that are already designed with energy efficiency in mind: the engine for their newest mine truck is seven to 12 per cent more fuel efficient, and the latest compressor energy recovery unit for rotary screw compressors enables up to 94 per cent of the energy from wasted compression heat to be recovered. Atlas Copco already does major business in Canada (18 per cent of its revenue comes from North America) but they hope upcoming improvements in technology will increase that. The company has set its sights on improving energy efficiency by 20 per cent over the next nine years. Four per cent of the annual budget will be dedicated to research and development in order to help reach that goal. Joao Ricciarelli, president of SKF Canada, explained how SKF evolved from a Swedish bearing business to an expert in international asset efficiency optimization. In 2010, SKF had sales of $9.3 billion, investing 3.5 per cent in research and development. “A bearing is worth only a cent,” said Ricciarelli, “but the money and effort and the impact on energy and sustainability to replace that cent is outrageous. That’s why we work closely with our customers to develop strategic solutions to get the most out of their equipment.” He gave the example of one company with a problematic iron ore grinding mill. When SKF did a design review, it found there was a seal problem and developed a solution, which reduced grease consumption from 1,000 kilograms to 15 kilograms per year, a substantial savings in both economic and environmental cost. Ricciarelli commented that he would like to see Canadians become less risk-averse. “Swedes are conservative, but Canadians are even more conservative,” he said. “In Sweden, we have had to overcome our risk-averse attitude in order to try new and different approaches, which have been tried

and tested around the world. SKF has over two million customers all over the world, and we would like to work more with Canadians.” Sweden’s geology is similar to Canada’s in many ways, and for centuries mining has been a huge industry there. Just as Canada rests on the Canadian Shield, Sweden is located on the Fennoscandian Shield, which is laden with iron, nickel and copper deposits. And also like Canada, the mining industry in Sweden is bustling with new mines as well as revitalized old ones. Currently, there are 13 metal mines in production in Sweden, 50 industrial mineral mines and 60 quarries. Iron, copper, zinc, lead, silver and gold are all being produced. Up to 24 per cent of the world’s minerals are consumed in Europe, but only four per cent are produced there. In order to compete outside the small Swedish market, Swedes are faced with a continuous search for efficiency, technological development and increased productivity. The same drive to com-

pete has Sweden investing heavily in exploration and prospecting, especially in the north, and looking to strengthen its connections with Canada. It has also been exploring opportunities elsewhere – a similar mining conference took place in Australia in November, and there are plans for a Chilean edition in the near future. Much of Sweden’s success in the mining industry started in the 1970s, said Magnus Andersson of the Swedish Trade Council, when the country was dependent on oil. As the oil crisis came, the country was forced to make radical changes; it established renewable energy policies, encouraged by tax incentives and legislation. “Since the Kyoto agreements, CO2 emissions in Sweden have been reduced by 10 per cent, but at the same time, we have had continuous economic growth,” he said. Andersson added that Canada’s CO2 emissions have increased by 25 per cent. He said Sweden’s success offers proof that sustainability and innovation can be profitable. CIM

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November 2011 | 17


news

mining.ca

On the campaign trail MAC rallies government support with clever mining endorsements By H. B. George If you are travelling to Ottawa this fall, you might notice the mining industry’s presence in more ways than one – at least, that is what the Mining Association of Canada (MAC) is hoping. MAC has released a new marketing campaign across the city with the slogan, “Before it’s yours, it’s mined,” to remind the public of the industry’s broad reach. The campaign is timed to coincide with Ottawa’s Mining Day on the Hill, an annual event that brings together mining industry representatives and federal decision-makers for a day of meetings. It aims to show the public the many facets of our world that are touched by the industry: from green energy and life-saving nutrition programs in Africa, to economic growth and everyday technology.

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Nine different ads commissioned by MAC are featured across Ottawa.

Throughout October and November, a series of nine different ads are being featured in the Ottawa airport and bus shelters across the city. The bus shelters were selected because of their proximity to key government departments, with the intention that the campaign’s message will resonate with the bureaucrats and ministers who work nearby. GWP Brand Engineering, the creative minds behind this campaign, wanted to reach both the general public and the government to create a baseline of awareness. MAC estimates that over the next five years, more than $137 billion could be invested in new and expanding mining projects. To do this, the industry will need government support in the form of regulatory efficiency, investment in infrastructure and human resources. Paul Hébert, MAC’s vice-president of government affairs, believes MAC will get more from its government requests if the audience has a better understanding of the contributions mining makes. “Mining is absent from the consciousness of people in urban centres despite the fact that it is omnipresent in their lives,” he said. “We rely on these commodities everyday. For example, you don’t get any more Canadian than hockey. Without mining, you don’t have skates, equipment, a net – you don’t have our national game.” Hébert says this is just the beginning of the kind of outreach MAC has planned for the future. “The mining industry is experiencing an opportunity it hasn’t had since the economic boom of the 1950s,” he explained. “Emerging economies are creating new possibilities. If industry and government get it right, together, we can capitalize on this opportunity for the benefit of all Canadians.” CIM


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news

geoscience.ca

Online resource opens door to exploration CanGeoRef will provide “one-portal access to all Canadian geoscience literature”

A searchable database of Canadian geoscience literature called CanGeoRef was launched September 15 by the Canadian Federation of Earth Sciences (CFES). The new service is expected to be a one-stop shop for academics and professionals doing research in the geosciences in Canada. Since the 1960s, The American Geological Institute (AGI) has been curating a global, searchable database of geoscience information called GeoRef; however, it has some gaps in its Canadian coverage, so CFES saw room for improvement. In collaboration with AGI, CFES took about a year and a half to assemble their new database. Data entry, the laborious task of collecting, formatting and inputting the references, was contracted out to Victora-based Purple Rock Inc., whose staff worked with information specialists in all provincial and territorial governments to ensure the smooth transfer of data. While GeoRef is a good source for many users, the Canadian content of the database has not been complete since the mid-1990s. “In the early days of digitization, these processes [of curating information] often became very expensive,” explains Elisabeth Kosters, the executive manager of CFES and the self-described “central spider” in the CanGeoRef

Courtesy of CanGeoRef

By Peter Braul

CanGeoRef’s online portal is an affordable, searchable database of Canadian geoscience literature. The Canadian Federation of Earth Sciences collaborated with the American Geological Institute to create the new service.

web. She says the provinces and territories went their separate ways for economic reasons, leaving GeoRef lacking. The Canadian data was still available, but only for those who knew where to get it and were adept at sifting through the various sources – from university collections to government agencies. “For each province, it was very well organized, but they weren’t linked,” says Kosters. The new database will allow users to access all of the Canadian literature published since the early 1800s and aims to be more affordable than GeoRef – a boon for the smaller companies operating here. “Many small or midsized organizations can’t afford subscriptions to GeoRef; it’s thousands of dollars,” says Kosters. In contrast, access to the Canadian database starts at US$65 for individual consultants, with prices that scale up depending on the size of the company or institution that subscribes. And though the information on CanGeoRef is sure to appeal to Canadians, Kosters expects the service to attract users from the 12 states that flank Canada’s borders as well. According to François Goulet, an exploration consultant based in Montreal, the new database will be “useful because it is a one-place search.” He says the all-inclusive aspect of services like CanGeoRef and GeoRef takes away the uncertainty that occurs when information is scattered in many locations. “If you can’t find it in GeoRef, you will have a hard time finding what you need.” There are already over 200,000 references in CanGeoRef, but the database will continue to incorporate more provincial and territorial journal literature, meeting proceedings and abstracts, maps, books, reports and academic theses until phase one is complete in 2013. Phase two will see the assessment reports from all of the provinces and territories added to the database. CIM

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news

transcanada.com cdnoilsands.com pembina.org

Social licence under the microscope A problem with the oil sands or a question of policy?

Don Thompson was driving down a congested Highway 401 in late September when he heard on the radio that about 300 people had gathered on Parliament Hill in Ottawa to oppose Alberta’s oil sands and the Keystone XL pipeline. “I reflected on the fact that there were probably 300 people a minute passing that spot on the highway, and they do this every day,” said Thompson, the executive advisor of sustainability and outreach at Canadian Oil Sands Limited. It is not hard to understand why, according to recent polls, “75 per cent of Canadians support development, as long as it’s done in an environmentally responsible manner,” Thompson said. “The vast majority of Canadians understand that they need a safe, reliable, affordable source Media coverage of resistance against Alberta's oil sands has ignored research showing that the majority of Canadians of energy to make their own support responsible development. lives work. I think most [of the protesters] are more concerned with best the industry can do is solve 20 has now given the industry clear guidethe ongoing use of fossil fuels than percent of the problem,” he said. “We lines and timelines for when they they are about the oil sands per se,” he would like the tailings ponds solidified. can’t do it alone, and we need all segadded. And dependence on those fuels ments of society to contribute.” “This has helped the industry to make is not something oil producers can do “We can maintain the same lifestyle informed decisions on how to improve a lot about. “I’m not convinced that with less energy consumption, using its environmental management,” he people are against oil sands as much as better technology,” Thompson added. said. “Companies have demonstrated “But the unfortunate thing is that the that they can solidify a tailings pond.” they are against what they represent. For the industry, there is an acute Despite the fact that there are a small transition is going to take a long time. It’s not responsible to say we should go need for good communication. U.S. number of people who are against the President Obama’s decision on the fate off fossil fuels in X number of years.” oil sands, they are going to be part of of Keystone XL is due this month, and “I think, the industry is recognizing the energy mix for some long while.” the stakes are high for both industry that it needs to do more to have its On the other hand, activists are and the public to engage each other social licence to work in the oil sands,” calling for a rapid switch to renewable successfully. said Nathan Lemphers, a senior policy energy sources. “We have moved to a Ultimately, said Thompson, we analyst with the Pembina Institute. particularly vicious and dirty technolshould not be discussing whether or not, Progress, he said, is being made ogy, which destroys the environment,” but how, the oil sands go ahead. “‘Oil or through cooperation between regulasaid protester and Carleton University no oil’ is not the question. We cannot tors and the industry, citing the professor Manfred Bienefeld. run our world today without oil,” he example of the Alberta Energy But according to Thompson, 80 per stated. “The question is: ‘if not from Resources Conservation Board’s Direccent of greenhouse gas emissions tive 74, a tailings pond performance Canada, then from where?’ And I think come from our consumption, and not CIM sometimes people get confused.” criteria, with which the government the production of fossil fuels. “The 22 | CIM Magazine | Vol. 6, No. 7

Graham Lanktree

By Graham Lanktree


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upfront S U S TA I N A B I L I T Y by Pe te r D i e k m eye r

Thickened tailings pave the way Site rehabilitation a critical element at Osisko’s Canadian Malartic mine 65 per cent and 70 per cent solid. The finished tailings produced will be non-acid generating and pumped over to the disposal site through a pipeline.” The thickened tailing’s hydric properties allow them to remain saturated with water. This, in turn, enables them to slow the diffusion of oxygen and to curb acid drainage generated from previous operations.

Building a mountain

Courtesy of Osisko

The thickened tailings will be spread out to cover the existing tailings pond and then piled high on top of it. “We are building a small mountain,” says David. “It will be 54 metres high, 2.5 kilometres long and cover 450 hectares Stage II (field trials) of a Osisko-NSERC-UQAT research and development project analyzing vegetation success on that will eventually be covered in thickened tailings and mine waste rock. vegetation.” Generating thickened tailings hen managers from Montreal-based mining takes more time and requires more equipment than producdeveloper Osisko Mining Corporation first began ing conventional tailings. The major change that Osisko to study the Canadian Malartic gold deposit, one made to its mill circuit consisted of the addition of a second of their first hurdles was how they would deal thickener, which is basically a settling pond, to improve with effluent disposal. “We faced a considerable challenge in water recovery efficiency. The resulting effluent is solid slurry getting the project through hearings held by Quebec’s that is sent to the detox plant. There, the cyanide within is Bureau d’audiences publiques sur l’environnement,” says Jean- destroyed and the remaining matter is then pumped to the Sébastien David, Osisko’s vice-president of sustainable tailings pond. This “solid” slurry is thus “stackable,” a major development. “The process took place in a politically improvement over conventional slurry, because it requires a charged atmosphere, so we knew that the solutions that we far smaller disposal area. proposed had to be perfect.” Yet according to David, despite the increased costs of the In the past, a number of companies had worked on what thickened tailings disposal process, there is a strong busiis now the Canadian Malartic property, and Osisko inherited ness case to be made for it. “It will enable us to remain a tailings pond left over from their operations. To manage within the existing brownfield area,” he says. “Otherwise, the overall footprint of the operation, the company officials we would have had to build huge dams or dig a new reserdecided to convert the effluent produced by Osisko’s voir to hold a traditional tailings pond.” The new method’s positive environmental impact has planned mining operations into thickened tailings, a pastebeen a key element in getting the operation approved. The like substance that, in the past, had mostly been used to backfill old underground mines. Quebec government gave the project final authorization on As the name implies, thickened tailings are similar to the August 19, 2009. standard tailings effluent produced by mining operations, except that much of the water content has been drained out. In A partnership to clean up the site Osisko’s case, this will be done at the mill site prior to disposal. Key to the initiative was a partnership deal that Osisko “Standard tailings are 40 to 50 per cent solid,” says David. struck with the Quebec Ministry of Natural Resources and However, in the case of thickened tailings, that ratio can be Wildlife to split the cost of cleaning up a legacy tailings site increased to the level desired, which is usually between already on the property, just adjacent to the outskirts of the

W

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

town of Malartic. The work will consist broadly of covering and neutralizing the existing acid-generating tailings with the non-acid generating thickened tailings produced by the Canadian Malartic Mine. To do this, water in the entire existing tailings pond will be fully drained into a reclamation pond, where it will then be recycled and used in Osisko’s mining operations. Company officials are particularly proud of the fact that this reclaimed water will, combined with underground water from the mine, supply the mining facility’s production needs. When full production rates are reached, the new mine is expected to generate 55,000 tonnes of thickened tailings per day. At that pace, all of the legacy East Malartic site will be covered with a three-metre-thick layer within three years. A contour dyke will be built around the deposit to make sure that the mixture does not spread. Then, additional layers will be added, one at a time, as the thickened tailings accumulate, and each layer will have a rock berm built around it. Because of its costs, the disposal method is only rarely used, says David. The Kidd Creek Mine in Timmins, Ontario, is one of the few in the country that have resorted to the process, due to the geographical impracticality of building a conventional tailings pond there. This will be the first time that thickened tailings will be used in this manner in Quebec.

According to Quebec government documents, the Malartic cleanup deal was central to enabling Osisko to “begin operations at the site immediately, to minimize the amount of natural resources (such as sand, gravel, clay and so on) that would be needed to rehabilitate the site and to sidestep the need to build a new large-scale mine tailing site, which would disturb other regions.”

A win-win situation The deal was also good for the Quebec government, which had been responsible for the East Malartic site since 2004, following the bankruptcy of McWatters Mining Company, its previous owner. The government, which would have been on the hook for the $23 million in projected costs needed to rehabilitate the site, will now have considerable resources to invest elsewhere. According to David, in all, 860 hectares will be reforested at the Malartic site. This will include 700 hectares for the tailings pond, 25 hectares of roads and the mine plant site, 35 hectares around the open pit, and 100 hectares of the polishing pond area. This, in turn, will effectively provide a new carbon sink. The thickened tailings project comes at a cost – according to a recent investor relations presentation published by Osisko, the company has budgeted tailings and water management expenses at $26.2 million. CIM

November 2011 | 25


upfront NEW FRONTIERS by Graham Lanktree

Shooting for the Moon The business case for heading into space

Courtesy of Astrobotic Technology

become the first private venture to put a lander on the Moon and explore 500 metres with a rover by 2015. Expectations of what the teams will find range from abundant water and ice to valuable platinum group and rareearth metals, to helium-3, nickel and iron, which could serve as building blocks for lunar habitats and further mining ventures. “At this point, no one has gone to do the prospecting,” says Gump, who points out that the solar system’s nickel-iron asteroids contain large amounts of platinum group metals. If these asteroids have impacted the Moon at a low enough speed, he reasons, the craters will hold a good portion of those same minerals. Ultimately, Gump says, the destination will be dictated by the interests of those who commission a trip to the Moon. “We need to find ways to Astrobotic’s scouting rover will be delivered to the Lunar surface with a lander. Once dismounted, the machine quickly look around using a rover will be remotely controlled from Earth to create a high-resolution terrain map of the areas it visits. or lander to find out where the best targets for taking samples are,” he says. “We could really use mining industry expertise 1.5-metre-tall, 72.5-kilogram robot is set to revisit and techniques for prospecting. The information and an Apollo landing site in the near future. Roving approaches that we have now are all coming from planetary among the craters, collecting rock samples and sniffscientists.” ing for water, the bot will broadcast a steady stream of 3D high-definition video back to eager eyes on Earth. This is the first in of a string of Moon visits being A Moon-based marketplace launched by the budding commercial space industry. And Gump says Astrobotic is open to joint ventures. In one word is that they are looking for Canada’s mining industry scenario, which he calls “an attractive way to share the cost,” to hitch a ride. NASA would pay for the first few drill holes and core sam“Already we’ve been awarded a contract by NASA to ples collected on the Moon and a mining company could develop a prototype rover to mine for ice and methane ice on pay for subsequent drilling. the Moon,” says David Gump, president of Astrobotic Tech“A joint venture would be very appropriate,” agrees Dale nology Inc., a spin-off of Carnegie Mellon University’s Robot- Boucher, senior director of product development at ics Institute. The company specializes in delivering payloads NORCAT, a Canadian mining non-profit that works as an to the lunar surface and anticipates an April 2014 date for put- economic engine for the industry, in part by developing new ting NASA’s rover on the Moon. “We would very much like to technologies. “Canadian mining companies are in a very engage with the mining industry to see if they’d like to turn good position to lead the pack,” he says, because of their this project into something more commercial,” he adds. internationally renowned expertise in every step of the Astrobotic is one of two front-runners among 26 teams mining cycle, long-term backing and management that now shooting for the Moon and a portion of the $30 million understands how much a project costs, how much time it purse put up by Google’s Lunar X Prize – a competition to will take and how to find the end market.

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upfront NEW FRONTIERS

“But because of the cost, it doesn’t make sense to mine on the Moon and bring minerals back to Earth,” Boucher says. “What has happened in the past year or two, however, is that there’s now a burgeoning market for customers right on the Moon.” NASA and other space agencies are considering a fuelling station between the Earth and Moon as a jumping-off point for missions to Mars and other parts of the solar system. Electrolyzer technology can break down water mined on the Moon into hydrogen and oxygen, which can then produce powerful rocket propellant. So far, enough water has been discovered on the surface to launch a shuttle every day for the next 2,000 years. “If a Canadian mining company got involved, it could evolve technologies that would provide this basic product,” Boucher says. “Water, ice and those kinds of resources provide a bigger bang for the buck over minerals right now.” In the past decade, NORCAT has partnered with space agencies and been awarded patents for dry-drilling technologies, a hydrogeology drill and semi-automated excavation systems. “There is great potential to spin these technologies back into terrestrial mining,” Boucher says. “Some very significant technologies will evolve if the mining industry contributes financing and experts to commercial space ventures.” The importance of the Canadian mining sector’s knowledge is hard to understate, says John A. Chapman, a former executive of Manalta Coal Ltd., and investor in two of Astrobotic’s competitors: Moon Express and Odyssey Moon. “Our Canadian expertise isn’t only technical, but also in the financial, accounting, legal and political aspects of mining,” he explains. To maintain and expand that expertise, Chapman adds, the mining industry would benefit from early involvement in commercial space ventures. “We have been willing to take significant risks here on Earth, so why not on the Moon or Mars?” A JOINT VENTURE WITH

Extraterrestrial tax incentives According to Chapman, the government has a role to play too. “Canada is a big player in mining on the international stage because of flow-through financing that the government has promoted for Canadian endeavors,” he says. Companies whose principal business is exploration for minerals in Canada can issue flowthrough shares, which allow them to transfer tax deductions, such as

their Canadian exploration expenses, to investors who can apply 100 per cent of the value against their personal or corporate income tax. “The flow-through mechanism helps corporations raise capital for exploration by giving investors a special incentive to purchase shares,” says Philippe Brideau, a spokesperson for the Canada Revenue Agency. Many provinces offer additional credit to fund exploration, and the combination of these instruments has raised billions of dollars for Canada’s mining industry. “There’s a strong argument to be made,” Chapman says, “that these should be extended to extraterrestrial exploration as well.” While the government plays catch-up, mining companies can focus on getting early cash flow by miniaturizing existing technologies, Chapman says. Already in the works at Moon Express is a ranging mini-radar system that once weighed several pounds and has been condensed to several grams. “Some of the questions that the mining industry could help with,” he adds, “are how to apply established geological, geochemical and geophysical mineral exploration systems to lunar and Martian environments.” Such endeavors may also be a great way to attract university graduates to the industry’s waning engineering ranks. “It would raise their profile for recruiting right away,” says Gump. But the first step is to spread the word that the mining industry’s expertise is greatly needed to increase the chances of success in the budding commercial space industry. “We would love for them to talk to us about the ideas they have for what needs to be done,” Gump adds. CIM

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upfront ENGINEERING EXCHANGE by Heather Ednie

Working with what you have New tailings impoundment cover technologies help prevent AMD Courtesy of the Industrial NSERC Polytechnique-UQAT Chair in Environment and Mine Wastes Management

cover; each layer is constructed with materials of different grain size, and each has its own specific role to play. The number of layers typically varies from two to five, depending on site, climate, topography and mineralogy. “The cover at the LTA mine site uses natural materials – no geosynthetic materials were involved,” says AnneMarie Dagenais of Golder Associates, another Chair partner that was involved in planning and construction of the LTA cover. “It’s better to use local materials when available,” she adds. “In the case of the LTA site, there was an old tailing storage area besides the one being remediated. The tailings from this neighbouring site have very low sulphide content and are not acid generating, so we used Technician Nil Gaudet, who works with the Chair in Rouyn-Noranda, and French exchange student those as a water retention material for Étienne Borghi take readings of volumetric water content with a TDR probe at one of the monitoring stations. the LTA cover.” The use of low sulphide tailings in layered covers was originally ew things pose more of a threat to a mine’s legacy proposed by researchers from the Chair. than acid mine drainage (AMD). Over the course of In a CCBE, the capillary barrier effect happens in unsata mine’s life, and especially once the bustle of activ- urated conditions when a fine-grained material layer is ity dies away, the creation of acid in many tailings placed over a coarser one. These two types of material have impoundments is prevented by ever-evolving cover tech- different hydrogeological properties which, when comnologies. For the last 10 years, the Industrial NSERC bined, can restrict the flow of water from the upper layer Polytechnique-UQAT Chair in Environment and Mine to the lower one. The coarser material drains quickly and Wastes Management has focused on improving tailings limits downward movement of water from the fine-grained impoundment covers, and thereby the future of today’s material layer located above. The upper, finer layer remains mine sites. nearly saturated and prevents the flow of oxygen through Chair holders Michel Aubertin in Montreal and Bruno to the reactive tailings beneath. Bussière in Rouyn-Noranda, along with industry partners, The LTA cover consists of three layers: have been exploring how there is no one-size-fits-all cover • Bottom layer of coarse materials (sand), about 0.5 solution. Depending on site characteristics, the approach metres thick. to cover design must account for factors such as climate, • Middle layer of fine-grained materials (non-acid genermineralogy and topography, and be adjusted to meet the ating tailings from nearby Malartic Goldfield site), specific needs of the location. As a result, designs can conabout 0.8 metres thick. sist of single or multiple layers of different materials • Top layer of coarse materials (sand and gravel), at least intended to control the flow of water and prevent oxygen 0.3 metres thick. from reaching the tailings, which causes AMD. “The top layer protects against erosion by wind or water run-off from the slope,” Dagenais says. “It also prevents Multi-layer cover interaction between the middle layer and the atmosphere, When Barrick Gold reclaimed Les Terrains Aurifères limiting evaporation from this fine-grained layer.” (LTA), a tailing storage facility located near Malartic, QueThe LTA cover was constructed in 1996, and has been bec, sulphides were identified in some of the residues – a monitored for performance evaluation since. To date, all key factor in the creation of AMD. In response, Barrick, a expectations have been exceeded. One area that required partner with the Chair, opted to construct a cover with more specific attention, and has been investigated and capillary barrier effects (CCBE). This is a multi-layered monitored in more detail by the Chair, is the potential loss

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28 | CIM Magazine | Vol. 6, No. 7


upfront ENGINEERING EXCHANGE

of saturation during dry periods caused by the slopes in the major legacy issue for the Quebec government, with an landscape surrounding the site. Monitoring has shown that estimated 1.5 million tonnes of acid-generating tailings this occurs in very short periods, in limited areas, and so deposited, without containment, over a 76-hectare area has little overall impact on the ability of the LTA cover to behind the mill. The tailings had been spilling off the prevent AMD. The effect of bio intrusion on the cover, mine site, across three separate areas in a shallow valley, such as animals digging holes or tree roots, is also moni- to travel downstream into the Arnoux River. The Quebec tored and, where applicable, mitigating measures are government began remediation in 2008, and Chair partapplied. ner SNC-Lavalin designed the reclamation plan in “When we did the initial evaluation, although this technique required more detailed planning and design, after gaining confidence in our ability to mitigate the construction risks, it showed promise of being a more effective solution compared to the traditional, long-term, collect-and-treat solution,� says Jacques McMullen, Barrick’s senior vice-president of special projects. “Now, more than a decade later, maintenance-wise, everything is fine. We’ve had to do a few minor touch-ups on the slopes, but nothing major. On an annual basis, we have to do vegetation control to prevent trees from growing, as their roots could interrupt the effectiveness of the cover design. But, that’s just a simple contract with a local farmer.� As a result, says McMullen, Barrick has implemented a somewhat similar concept in Nevada, in collaboration with researchers from +GLC ?LB NPMACQQ P?U K?RCPG?JQ KMPC CDj AGCLRJW the Chair, and is looking at the possibility of other applications, wherever 2FC +GLGLE 'LBSQRPW applicable.

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Single-layer cover In some cases, though, a layered cover is not the best answer. At the Aldermac mine site, 15 kilometres west of Rouyn-Noranda, collaborators with the Chair elevated the water table and used a single-layer cover made of a granular soil. Recent research from the Chair has shown that elevated water tables create an oxygen barrier; the cover works to prevent desaturation of materials beneath. “When the water table level is elevated above the tailings surface, the tailings stay saturated by constant infiltration through the granular cover,� explains Aubertin. “The water level is controlled by spillways and ditches.� Aldermac ceased production in 1943, and the abandoned site represented a

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November 2011 | 29


MINING AND METALS | ENERGY Conceptual and Feasibility Studies Reports NI 43-101 Technical ech Mine Planning and Design Plant Design and Simulation Project Management EPCM Projects Commissioning Assistance Process Optimization and Control To join our our team team of ofexperts, experts, go to bba.ca/careers or LinkedIn.

30 | CIM Magazine | Vol. 6, No. 7

partnership with Journeaux, Bédard & Associates and Écogénie Inc. Researchers from the Chair were also involved in reviewing the plan. “We first cleaned six kilometres of the river and then worked on the different zones in the valley,” says Denis Isabel, vice-president of mine restoration and geotechnical services at SNCLavalin. In the northern sector of the mine site, the largest area to be reclaimed, a single-layer cover was built. The tailings were already mostly saturated due to high groundwater level, so existing dykes were enhanced and new ones were built to establish a reliably heightened groundwater level. The tailings were covered with sand and gravel to maintain the water table above the tailings surface. The water level is kept below the cover surface. “You can walk on it,” says Isabel. “The top is just sand, but if you dig down a few feet, you hit water. We’re planting trees and other vegetation on top. It is half seeded with grass and half revegetated with other local species – trees, cattails, etc.” A cover like this requires a lot of coarse-grained soil, but it was readily available. “There’s a large sand and gravel deposit right at hand,” Isabel says. “So all the materials were on site, they just needed to be moved around.” The three-year cover construction project was completed this past summer with the creation of a few ditches, a small pond and addition of vegetation. As with the LTA cover, the Aldermac reclamation work will be monitored by the Chair’s team. Data collected in the field will be used to assess the site’s response and evaluate whether goals are being met.

A legacy of innovation Cover technology can be adapted to various site conditions; the key is to select the right design by considering all influencing factors, including which soils are available locally. “These projects also serve to develop innovative monitoring technologies like direct oxygen consumption tests and surface geophysical surveys to assess the actual behaviour of the sites,” Aubertin adds. “Field data are very useful in validating initial assumptions and can sometimes be used to refine the calculation tools being applied for analysis and design.” The development of innovative cover technology is one of many projects that have been conducted by the Industrial NSERC Polytechnique-UQAT Chair since its inception 10 years ago. Other key components of the research program include new methods for surface and underground disposal of tailings, improved design of waste rock piles to favour geotechnical and geochemical stability, more robust and efficient passive treatment systems, and the development of physical and numerical modelling tools. These various projects are complementary to each other, Aubertin says. “The common goal for all these projects is to help the industry, and especially the Chair’s partners, by promoting efficient methods to manage waste materials produced by mining operations.” CIM



upfront PROCESSING by Dan Zlotnikov

Extractive metallurgy for the next century Recovering the maximum value from ores and wastes

Operations are ongoing at Neomet's mini-plant facility. The company will expand to a one-tonne-per-day pilot plant in 2012.

roducing one valuable commodity often means treating another as waste. Because ores can contain a multitude of metals and minerals, removing only the most precious of them usually creates tailings rich with other resources. And while many of these may be abundant enough to be commercially valuable, traditional technology has not been able to extract them efficiently. Enter Neomet Technologies, a company dedicated to cutting-edge, processes that promise to significantly change this status quo for the better. “We think we can do things differently,” says Bryn Harris, the company’s president and chief science officer. ”We also strongly believe that there’s a lot the mining industry can do, especially with our technology, not only to improve its image, but also to be more efficient and effective.” Harris explains that Neomet’s process would allow an operator to precipitate and recover individual metals selectively at concentrations of over 95 per cent, turning what previously were waste products into potentially highly valuable revenue sources. Traditional acid leach processes generally only allow for the collection of one target mineral, so you can imagine the scale of waste industry-wide. The underlying principle of the Neomet process, says Harris, is in the application of chloride chemistry – using hydrochloric rather than sulphuric acid to leach metals out of ore – and the attendant advantages that working in a chloride medium offer.

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32 | CIM Magazine | Vol. 6, No. 7

Photo courtesy Neomet.

Courtesy of Neomet

According to Harris, pyrohydrolysis, which is the use of heat and water vapour, has often been the process of choice to recover and recycle hydrochloric acid. The technique was developed shortly after World War II. But that approach has high energy demands – the process takes place at 700 to 900°C – and is unable to recover acid in concentrations greater than 18 per cent. Neomet has revamped those techniques, and their process requires much lower temperatures – just 180 to 200°C. With the new technology, operators can recover 100 per cent of the acid at concentrations as high as 35 to 36 per cent. That means acid can be immediately returned to the leach stage as it evaporates. The process uses a proprietary solvent matrix, which has a very high boiling point, to regenerate and recycle the acid. Traditional metal chloride hydrolysis processes for the recovery of hydrochloric acid take place at high temperatures, like those necessary for pyrohydrolysis, or require the use of a pressurized autoclave. But their solvent lets Neomet use what Harris terms an “atmospheric autoclave,” which does not require higher than atmospheric pressure to achieve results, and consequently saves money.

Diminishing the tailings footprint Neomet also promises a greener future in the form of significantly diminished and less hazardous tailings ponds. Harris points out just how much waste is generated by existing approaches. “Nickel laterites maybe have one per cent nickel,” he says. “So you dig a tonne of laterite, you recover your 10 kilograms of nickel and throw the rest away. But not only that, you’ve treated it with sulphuric acid, so for every tonne of laterite you dig up, you’re probably throwing a tonne and a half of residue material away.” And a lot of that waste is useable iron ore. “Nickel laterites have up to 30 per cent iron in them,” Harris explains. “Vanadium ores always have loads of iron in them. Typically in Quebec, there is 40 to 50 per cent iron in the ore.” Recover that iron, and your tailings pond shrinks accordingly. “Just think of all the jarosite ponds and the red mud ponds,” he adds. “We won’t have those because we will be recovering all of the iron.” Instead of iron-rich tailings, the Neomet process will produce hematite, a marketable iron product. “We’re making very high-grade hematite, rather than what the sulphuric acid processes do, which is to produce an iron hydroxide sludge that has to be ponded and thrown away,” says Harris.


upfront PROCESSING

Recovering the iron holds much appeal for Nevado Resources, an advanced-stage exploration company that owns La Blache, a property in south-central Quebec. At La Blache, assay results indicate not only significant concentrations of vanadium and titanium, but also as much as 55 per cent iron. Michael Curtis, Nevado’s CEO, says that while the property’s titanium and vanadium content alone are enough to make the project economical, the company’s aim is to make use of all the available minerals by applying the Neomet process. While Curtis’ main focus is not iron, he will gladly sell it. The lower cost iron would essentially be a profitable byproduct at La Blache, but Curtis adds that the environmental benefits of the Neomet approach were a very significant consideration for him. ”Since we’re a commercial company, it has to be economical,” he says. “But being economical and green were two major points.”

It’s not easy being green “Environmental sounds great, sustainable development sounds great, but they don’t necessarily put bread on the table,” says Harris. “So if it’s not economical, it’s not going to go,” which is why Neomet plans to market the process primarily on its economic advantages. First, though, the company must show that the process remains economical on a commercial scale. Nevado is one of several “vanguard” companies interested in the Neomet process, and which are working with them to scale it up, says Harris, although he is not at liberty to disclose names of others at this time. He also says that the current plan is to move from the mini-plant stage to a one-tonne-per-day pilot plant during 2012. The plant, which Neomet will use to process ores from both Nevado and other clients, will be the next major step in demonstrating the viability of the process. CIM

Bryn Harris’ career as a pioneer The Neomet process is not the first time Harris and his colleagues have offered something new. One of their major successes dates all the way back to 1985, when Harris worked for Noranda. Around that time, he says, Noranda’s Canadian Copper Refinery (CCR) in the east end of Montreal, which started operations in the 1930s, was running into problems with its classical electrolytic gold refining process. While primarily meant to produce copper, CCR also recovered and refined gold from the copper refinery byproduct, known as anode slimes. “You have to go back to realize that the classical gold refining process, especially for anode slimes, was pretty horrendous,” says Harris. “It was very unpleasant and lost not only a lot of gold, but also a lot of the platinum and palladium that came along with the gold, in the process.” According to Harris, the challenge facing CCR was the dramatically increasing presence of platinum and palladium in the mine bullion, which was occurring because the copper smelters had started treating electronic scrap, now known as e-waste. “The build-up of platinum and palladium in their circuit required the electrolyte to be changed every 14 hours, which is about as fast as they could do it,” he explains. To put this in perspective, at the time, other gold refineries such as the Royal Canadian Mint had to change their electrolyte once every six months. Without a process change, he adds, “they would have had to basically shut down and send the material off site for processing,” to a facility with a dedicated refining circuit for extracting platinum group metals. Harris’ solution was to move away from traditional electrorefining and into pure hydrometallurgical extraction, recovering gold directly from an HCl solution. This innovative approach, which produced “five nines” pure gold, won the Canada Business Award for Innovation in 1987, and allowed the refinery to recoup all of its capital costs five weeks after startup. With Neomet’s latest development, Harris is proposing to move the advantages offered by chloride chemistry from the refinery to the mine face. Previously, replacing cyanide with hydrochloric acid would have been prohibitively expensive, he explains. But with Neomet’s technology now allowing for recovery and regeneration of the acid, the success of CCR can now be applied inside the mine itself.

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November 2011 | 33


upfront TECHNOLOGY by Peter Diekmeyer

Tired of fatigue-related accidents? Companies are using new technology to identify drowsy operators haul and water trucks, used by between 800 and 1,000 operators. Gradual implementation will enable participants to adjust to lessons learned from early experiences. “Our research indicates that systems such as this one are clearly needed,” says Bongers, who notes that the mining industry’s macho image and an employee tradition of stoically working long hours make it hard for sector personnel to gauge precisely when relief is needed. “During two preliminary field trials that we conducted, of 53 operators observed over the course of four weeks, seven were found to have been affected by extremely high levels of fatigue,” he explains. The monotony of many driving jobs increases the risk of fatigue.

n recent years, research has been pointing to fatigue as a major and often under-reported cause of accidents, both on the road and in the mines. The incidence of catastrophic work accidents increases dramatically when operators are tired, and mining companies are racing to find new ways to address this issue. “Thousands of people die on the road each year due to driver fatigue, many of them innocent people who were not in the vehicle with the fatigued driver,” says Daniel Bongers of EdanSafe, a company which markets the SmartCap Fatigue Management system. “The mining industry too is suffering from the problem,” he explains. “One estimate is that between 30 and 35 per cent of all mining site lost time incidents (LTIs) are attributable to operator fatigue. But even that figure may be low because people, in general – and miners in particular – loathe admitting when they are tired.” As its name implies, EdanSafe’s solution to the problem – the SmartCap Fatigue Management system – relies on sensors placed in baseball caps that users wear while they work. These sensors evaluate how drowsy they are based on their brainwave measurements.

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A clear and growing need The system is currently being phased in at Anglo American’s Drayton coal mine site in Australia and will then be extended to a total of four sites around the country. When the process is complete, the system will be in place on 200 34 | CIM Magazine | Vol. 6, No. 7

Seeing Machines DSS technologies Not all fatigue management systems operate by measuring brainwaves; in fact, a variety of new systems are evolving and being tested in the mining industry. For example, according to a presentation by Mark Bartlett of Freeport McMoRan at a recent CIM conference, the company is currently installing Seeing Machines DSS driver monitoring technology at several of its mines, based on a computerized process that monitors fatigue by tracking features on human faces. More specifically, DSS uses remote sensors on vehicle dashboards to measure when drivers are opening and closing their eyes. The technology then uses this information to figure out how drowsy the driver is. When a short period of light sleep known as a “micro-sleep incident” occurs, an alarm sounds and the driver’s chair vibrates. This immediately causes the operator to open his or her eyes. In cases where there are multiple sleep events, a series of escalating preventative measures are taken. For example, after the second event, the driver’s dispatcher is notified. After a third occurrence, the driver is asked to park his or her vehicle and have a chat with their supervisor, who then either puts the driver back on alert or provides them with an opportunity to take a nap if needed. “Our goal is to reduce or eliminate fatigue-related injuries and fatalities,” says Bartlett, “We want everyone to go home to their family whole.”

An advisory system for tired drivers According to Ian Thomas, the director of Fatigue Management International, extensive research shows


that tiredness levels tend to vary in humans at very specific times of the day. “The early hours of the morning and the middle of the afternoon are the times when people are more susceptible to becoming tired,” he says, “so if you wanted to monitor the times of greatest exposure to accidents at the early signs of it happening, it would be quite easy.” Fatigue Management’s Advisory System for Tired Drivers (ASTID) does just that. “We know from research that all drivers make small adjustments to keep their vehicles on the road, and as they get tired, those adjustments get far brusquer,” says Thomas. “So when those sharp corrective movements occur during times of peak potential driver vulnerability, you know you have a problem.” According to Thomas, Fatigue Management International saw real issues within the mining industry. “Many typical sleepiness episodes can be worked through when drivers are in a town type of environment where there are multiple distractions to stimulate alertness to keep them awake,” he explains. “In mining, however, the continuous monotony of haul routes only exacerbates the onset of driver tiredness with potentially disastrous financial and human loss.” ASTID has already gone through extensive trials in Australia, North and South America, and was evaluated as the number one technology in the Caterpillar Fatigue Technology report, so demand for the system is strong. The company is currently installing its systems and providing extensive consulting services to Kumba Iron Ore, a subsidiary of Anglo American in South Africa, and is pursuing opportunities with numerous other interested parties. “Due to its unobtrusive nature and its real-time integration with dispatching systems, there is little resistance to the technology’s deployment, as it is accepted that the system is there for the drivers’ benefit and ultimate safety,” concludes Thomas.

A technology whose time has come? Even strong proponents of fatigue management technology agree that there are challenges involved in installing and using these systems. For example, EdanSafe countered potential resistance to its products by making them part of a baseball cap that operators could wear. Others object to what they feel are intrusive technologies that monitor basic private information. There are also implementation questions such as dealing with potential false positives. Yet despite the stakes involved, the potential benefits that these systems bring are so high that they almost certainly represent the wave of the future. “I am very impressed with the way that the mining industry as a whole is dealing with the challenges of fatigue management,” says EdanSafe’s Bongers. “For one, we have never had to seek out any new clients, they have always come to us. And furthermore, no client even asks about the system’s costs or how it will impact productivity. Safety is always the main concern.” CIM November 2011 | 35


upfront Q&A by Richard Andrews

A return on ambition Osisko CEO Sean Roosen overcomes the odds to fulfill his dream luctuating gold prices, shifting regulations, grumbling neighbours and global opportunities – as CEO of Montreal-based Osisko Mining Corporation, Sean Roosen knows very well the risks and rewards that come with leading an exploration company through development and into production. Osisko’s flagship project is the Canadian Malartic gold mine in western Quebec’s Abitibi mining district. With Proven and Probable Reserves of 10.7 million ounces, the open pit mine is said to represent the single biggest gold reserve in production in Canada. It is also the bedrock for the company that is focused on building a gilded future. Roosen spoke to CIM about how he deals with challenges in the quest for gold.

camp when I was 18 years old. I always wanted to run my own company and, finally, after all these years, here it is.

Courtesy of Osisko

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To take a junior mining company and transition it to a producing mining company has been my goal since I started in this business.

CIM: What first attracted you to mining? Roosen: At 17, I went to Ontario’s Haileybury School of Mines where I was exposed to the world of geology and mining. I went on to work in underground mining, on drill rigs, and got the exploration bug when I went to Ivory Coast to manage field operations in 1987. I also explored for diamonds but always ended up in gold. I prefer bigger mines, which is why I’m doing what I do now. CIM: The pouring of the first gold bar at Canadian Malartic last April closely followed your fifth anniversary as Osisko CEO. What have been the highlights of those first five years? Roosen: I’d say moving from an exploration project to a producer, considering the major challenges of developing a $1 billion project in an urban area. Developing Canadian Malartic was a complex project. The deposit is low grade and hosted in hard rock, and on top of that was partially located under a town. We had to move 205 homes as well as other institutional buildings. Not every company would take on such technical and social challenges, but we were confident the deposit was there and that we could overcome the obstacles. To take a junior mining company and transition it to a producing mining company has been my goal since I started in this business. I was reading books by Warren Buffet in 36 | CIM Magazine | Vol. 6, No. 7

CIM: To develop Canadian Malartic, Osisko raised over $400 million in an oversubscribed bought deal at the peak of the financial crisis in February 2009. How did you pull that off? Roosen: Because we were coming out of nowhere, we always tried a little harder than the next company. We worked hard and waited for an opportunity. We’d say: “Let’s market 364 days of the year and find out which day of the year we can finance.” We set out to be one of the premium companies when it came to shareholder awareness because we spent so much time with our shareholders. We under-promised and over-delivered, and we drilled fast and hard – almost a million metres since 2005.

CIM: How dependent is Canadian Malartic on gold maintaining or increasing its current value? Roosen: We hope for the best, and plan for the worst, but it’s a very robust deposit. We’re currently working on a $1,000 an ounce pit shell (mining plan) for the next two or three years. We did our original feasibility at $775 per ounce and we’ve estimated IRR’s (internal rate of returns) of over 25 per cent at that gold price. Obviously, cost structures have moved since then, but so have gold prices. If there is a constraining gold price, the high cost producers will be the first ones to go off line. But as a wise man once said: the only thing that will fix a low gold price is a low gold price. Low prices will shut a lot of the higher cost mines and constrain supply, which again will cause a rise in the price of gold. We will be a lowest quartile producer, so we feel fairly insulated from the possibility of falling gold prices.

CIM: You once described Quebec as one of the best mining jurisdictions in the world to carry out investment. How then do you view proposed legislation that would force exploration companies to win project approval from local and municipal authorities, in addition to federal and provincial governments? Roosen: We are strong advocates of responsible and socially conscious mining. However, we’re very concerned about


upfront Q&A

these new proposals. The proposed changes would be putting the onus on municipal governments that don’t have the resources or expertise to evaluate these projects, and are likely to have a purely local perspective. There are already more than enough industry regulations and approvals required for exploration. The push for additional legislation could have a very significant impact on investment in the province – it’s an idea that needs to be rethought. CIM: What specific implications could the proposed B14 bill hold for Osisko? Roosen: We’re already a functioning mine in Malartic so it would have no significant impact there. However the proposal might make us reflect about further exploration investment in areas where we’re not sure about the municipal approach. CIM: Despite company policy to be a good neighbour, some Malartic residents have complained about noise from mine operations. What’s your response? Roosen: With less than a handful of not-yet-satisfied individuals in a town of 3,700 people just a few months into operations, we feel we’ve done a good job managing community and mining side by side. Everybody in Malartic had the chance to think about the project and to have input in the public hearing process. We held about 22 town hall meetings before the official public hearing, to understand people’s concerns and priorities. We had over 85 per cent approval from the local community. If you talk to the mayor, the mine’s economic effect on Malartic has been extraordinary. It has created jobs, increased the population and helped the town manage its debts and lower its taxes.

work and we look forward to an intensive exploration program on the property over the coming year. CIM: How does dealing with government in Argentina compare with Canada? Roosen: Argentina is similar to Canada in that mining laws vary from province to province. Some states in Argentina are particularly good at dealing with mining, others are less optimistic about it. La Rioja has a rich mineral endowment. They see their future in the mining industry and need the development to assist their economy. Politics in Argentina are probably a little more robust than here in Canada. However, I spent 13 years in Africa and three years in central Asia, so Argentina looks pretty good to me. It all depends on perspective. CIM: What other projects are planned? Roosen: Osisko has a drill and build philosophy. We’re pursuing exploration on a number of properties, including the Hammond Reef gold project in northern Ontario, which has the potential, together with production from Canadian Malartic, to allow Osisko to become a one-million-ounceper-year gold producer by 2016. CIM

A consortium of applied research for the treatment and processing of mineral substances, COREM relies on its dynamic alliance with members and partners to improve the competitiveness of industrial operations through the development and transfer of technological innovations, which are consistent with sustainable development objectives.

CIM: How have you addressed the noise complaints? Roosen: We’ve complied with Quebec noise regulations. We set up a noise attenuation project with a green perimeter between the town and the mine. The noise level on the town side of the perimeter is 43 to 46 decibels. My boardroom, with the air conditioning turned off, runs at 51 decibels. I think we’ve done our job.

COREM is in a position to offer a highly stimulating professional challenge to those who are passionate about their work and wish to undertake the pursuit of excellence. Dynamic and creative persons who would enjoy working within a multidisciplinary team are invited to submit their applications to work at COREM. • Scientific Director - Technology

CIM: Osisko has signed an agreement with a state government in Argentina for joint development of the Famatina gold property in La Rioja Province. Does that mean you plan to move out of the mid-tier league to become a major international player? Roosen: We feel we have the opportunity and resources to build two or three more world-class operations. Argentina is a fantastic piece of geology and we’re very excited at the addition of another high-quality project to our current portfolio of properties. We believe Famatina hosts very promising targets with excellent potential for future development. We’ve assembled a highly experienced team to oversee the

• Director – Nonferrous Sector • Researchers XComminution XFlotation XMineralogy • Engineer – Instrumentation and control • Mineral Resources Technician Visit the “Career opportunities” section of our website www.corem.qc.ca

November 2011 | 37


osisko.com

upfront S U S TA I N A B I L I T Y by Pe te r D i e k m eye r

Thickened tailings pave the way Site rehabilitation a critical element at Osisko’s Canadian Malartic mine 65 per cent and 70 per cent solid. The finished tailings produced will be non-acid generating and pumped over to the disposal site through a pipeline.” The thickened tailing’s hydric properties allow them to remain saturated with water. This, in turn, enables them to slow the diffusion of oxygen and to curb acid drainage generated from previous operations.

Building a mountain

Courtesy of Osisko

The thickened tailings will be spread out to cover the existing tailings pond and then piled high on top of it. “We are building a small mountain,” says David. “It will be 54 metres high, 2.5 kilometres long and cover 450 hectares Stage II (field trials) of a Osisko-NSERC-UQAT research and development project analyzing vegetation success on that will eventually be covered in thickened tailings and mine waste rock. vegetation.” Generating thickened tailings hen managers from Montreal-based mining takes more time and requires more equipment than producdeveloper Osisko Mining Corporation first began ing conventional tailings. The major change that Osisko to study the Canadian Malartic gold deposit, one made to its mill circuit consisted of the addition of a second of their first hurdles was how they would deal thickener, which is basically a settling pond, to improve with effluent disposal. “We faced a considerable challenge in water recovery efficiency. The resulting effluent is solid slurry getting the project through hearings held by Quebec’s that is sent to the detox plant. There, the cyanide within is Bureau d’audiences publiques sur l’environnement,” says Jean- destroyed and the remaining matter is then pumped to the Sébastien David, Osisko’s vice-president of sustainable tailings pond. This “solid” slurry is thus “stackable,” a major development. “The process took place in a politically improvement over conventional slurry, because it requires a charged atmosphere, so we knew that the solutions that we far smaller disposal area. proposed had to be perfect.” Yet according to David, despite the increased costs of the In the past, a number of companies had worked on what thickened tailings disposal process, there is a strong busiis now the Canadian Malartic property, and Osisko inherited ness case to be made for it. “It will enable us to remain a tailings pond left over from their operations. To manage within the existing brownfield area,” he says. “Otherwise, the overall footprint of the operation, the company officials we would have had to build huge dams or dig a new reserdecided to convert the effluent produced by Osisko’s voir to hold a traditional tailings pond.” The new method’s positive environmental impact has planned mining operations into thickened tailings, a pastebeen a key element in getting the operation approved. The like substance that, in the past, had mostly been used to backfill old underground mines. Quebec government gave the project final authorization on As the name implies, thickened tailings are similar to the August 19, 2009. standard tailings effluent produced by mining operations, except that much of the water content has been drained out. In A partnership to clean up the site Osisko’s case, this will be done at the mill site prior to disposal. Key to the initiative was a partnership deal that Osisko “Standard tailings are 40 to 50 per cent solid,” says David. struck with the Quebec Ministry of Natural Resources and However, in the case of thickened tailings, that ratio can be Wildlife to split the cost of cleaning up a legacy tailings site increased to the level desired, which is usually between already on the property, just adjacent to the outskirts of the

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

town of Malartic. The work will consist broadly of covering and neutralizing the existing acid-generating tailings with the non-acid generating thickened tailings produced by the Canadian Malartic Mine. To do this, water in the entire existing tailings pond will be fully drained into a reclamation pond, where it will then be recycled and used in Osisko’s mining operations. Company officials are particularly proud of the fact that this reclaimed water will, combined with underground water from the mine, supply the mining facility’s production needs. When full production rates are reached, the new mine is expected to generate 55,000 tonnes of thickened tailings per day. At that pace, all of the legacy East Malartic site will be covered with a three-metre-thick layer within three years. A contour dyke will be built around the deposit to make sure that the mixture does not spread. Then, additional layers will be added, one at a time, as the thickened tailings accumulate, and each layer will have a rock berm built around it. Because of its costs, the disposal method is only rarely used, says David. The Kidd Creek Mine in Timmins, Ontario, is one of the few in the country that have resorted to the process, due to the geographical impracticality of building a conventional tailings pond there. This will be the first time that thickened tailings will be used in this manner in Quebec.

According to Quebec government documents, the Malartic cleanup deal was central to enabling Osisko to “begin operations at the site immediately, to minimize the amount of natural resources (such as sand, gravel, clay and so on) that would be needed to rehabilitate the site and to sidestep the need to build a new large-scale mine tailing site, which would disturb other regions.”

A win-win situation The deal was also good for the Quebec government, which had been responsible for the East Malartic site since 2004, following the bankruptcy of McWatters Mining Company, its previous owner. The government, which would have been on the hook for the $23 million in projected costs needed to rehabilitate the site, will now have considerable resources to invest elsewhere. According to David, in all, 860 hectares will be reforested at the Malartic site. This will include 700 hectares for the tailings pond, 25 hectares of roads and the mine plant site, 35 hectares around the open pit, and 100 hectares of the polishing pond area. This, in turn, will effectively provide a new carbon sink. The thickened tailings project comes at a cost – according to a recent investor relations presentation published by Osisko, the company has budgeted tailings and water management expenses at $26.2 million. CIM

November 2011 | 25


astrobotic.net

upfront NEW FRONTIERS by Graham Lanktree

Shooting for the Moon The business case for heading into space

Courtesy of Astrobotic Technology

become the first private venture to put a lander on the Moon and explore 500 metres with a rover by 2015. Expectations of what the teams will find range from abundant water and ice to valuable platinum group and rareearth metals, to helium-3, nickel and iron, which could serve as building blocks for lunar habitats and further mining ventures. “At this point, no one has gone to do the prospecting,” says Gump, who points out that the solar system’s nickel-iron asteroids contain large amounts of platinum group metals. If these asteroids have impacted the Moon at a low enough speed, he reasons, the craters will hold a good portion of those same minerals. Ultimately, Gump says, the destination will be dictated by the interests of those who commission a trip to the Moon. “We need to find ways to Astrobotic’s scouting rover will be delivered to the Lunar surface with a lander. Once dismounted, the machine quickly look around using a rover will be remotely controlled from Earth to create a high-resolution terrain map of the areas it visits. or lander to find out where the best targets for taking samples are,” he says. “We could really use mining industry expertise 1.5-metre-tall, 72.5-kilogram robot is set to revisit and techniques for prospecting. The information and an Apollo landing site in the near future. Roving approaches that we have now are all coming from planetary among the craters, collecting rock samples and sniffscientists.” ing for water, the bot will broadcast a steady stream of 3D high-definition video back to eager eyes on Earth. This is the first in of a string of Moon visits being A Moon-based marketplace launched by the budding commercial space industry. And Gump says Astrobotic is open to joint ventures. In one word is that they are looking for Canada’s mining industry scenario, which he calls “an attractive way to share the cost,” to hitch a ride. NASA would pay for the first few drill holes and core sam“Already we’ve been awarded a contract by NASA to ples collected on the Moon and a mining company could develop a prototype rover to mine for ice and methane ice on pay for subsequent drilling. the Moon,” says David Gump, president of Astrobotic Tech“A joint venture would be very appropriate,” agrees Dale nology Inc., a spin-off of Carnegie Mellon University’s Robot- Boucher, senior director of product development at ics Institute. The company specializes in delivering payloads NORCAT, a Canadian mining non-profit that works as an to the lunar surface and anticipates an April 2014 date for put- economic engine for the industry, in part by developing new ting NASA’s rover on the Moon. “We would very much like to technologies. “Canadian mining companies are in a very engage with the mining industry to see if they’d like to turn good position to lead the pack,” he says, because of their this project into something more commercial,” he adds. internationally renowned expertise in every step of the Astrobotic is one of two front-runners among 26 teams mining cycle, long-term backing and management that now shooting for the Moon and a portion of the $30 million understands how much a project costs, how much time it purse put up by Google’s Lunar X Prize – a competition to will take and how to find the end market.

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upfront NEW FRONTIERS

“But because of the cost, it doesn’t make sense to mine on the Moon and bring minerals back to Earth,” Boucher says. “What has happened in the past year or two, however, is that there’s now a burgeoning market for customers right on the Moon.” NASA and other space agencies are considering a fuelling station between the Earth and Moon as a jumping-off point for missions to Mars and other parts of the solar system. Electrolyzer technology can break down water mined on the Moon into hydrogen and oxygen, which can then produce powerful rocket propellant. So far, enough water has been discovered on the surface to launch a shuttle every day for the next 2,000 years. “If a Canadian mining company got involved, it could evolve technologies that would provide this basic product,” Boucher says. “Water, ice and those kinds of resources provide a bigger bang for the buck over minerals right now.” In the past decade, NORCAT has partnered with space agencies and been awarded patents for dry-drilling technologies, a hydrogeology drill and semi-automated excavation systems. “There is great potential to spin these technologies back into terrestrial mining,” Boucher says. “Some very significant technologies will evolve if the mining industry contributes financing and experts to commercial space ventures.” The importance of the Canadian mining sector’s knowledge is hard to understate, says John A. Chapman, a former executive of Manalta Coal Ltd., and investor in two of Astrobotic’s competitors: Moon Express and Odyssey Moon. “Our Canadian expertise isn’t only technical, but also in the financial, accounting, legal and political aspects of mining,” he explains. To maintain and expand that expertise, Chapman adds, the mining industry would benefit from early involvement in commercial space ventures. “We have been willing to take significant risks here on Earth, so why not on the Moon or Mars?” A JOINT VENTURE WITH

Extraterrestrial tax incentives According to Chapman, the government has a role to play too. “Canada is a big player in mining on the international stage because of flow-through financing that the government has promoted for Canadian endeavors,” he says. Companies whose principal business is exploration for minerals in Canada can issue flowthrough shares, which allow them to transfer tax deductions, such as

their Canadian exploration expenses, to investors who can apply 100 per cent of the value against their personal or corporate income tax. “The flow-through mechanism helps corporations raise capital for exploration by giving investors a special incentive to purchase shares,” says Philippe Brideau, a spokesperson for the Canada Revenue Agency. Many provinces offer additional credit to fund exploration, and the combination of these instruments has raised billions of dollars for Canada’s mining industry. “There’s a strong argument to be made,” Chapman says, “that these should be extended to extraterrestrial exploration as well.” While the government plays catch-up, mining companies can focus on getting early cash flow by miniaturizing existing technologies, Chapman says. Already in the works at Moon Express is a ranging mini-radar system that once weighed several pounds and has been condensed to several grams. “Some of the questions that the mining industry could help with,” he adds, “are how to apply established geological, geochemical and geophysical mineral exploration systems to lunar and Martian environments.” Such endeavors may also be a great way to attract university graduates to the industry’s waning engineering ranks. “It would raise their profile for recruiting right away,” says Gump. But the first step is to spread the word that the mining industry’s expertise is greatly needed to increase the chances of success in the budding commercial space industry. “We would love for them to talk to us about the ideas they have for what needs to be done,” Gump adds. CIM

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November 2011 | 27


snclavalin.com barrick.com nserc-crsng.gc.ca

upfront ENGINEERING EXCHANGE by Heather Ednie

Working with what you have New tailings impoundment cover technologies help prevent AMD Courtesy of the Industrial NSERC Polytechnique-UQAT Chair in Environment and Mine Wastes Management

cover; each layer is constructed with materials of different grain size, and each has its own specific role to play. The number of layers typically varies from two to five, depending on site, climate, topography and mineralogy. “The cover at the LTA mine site uses natural materials – no geosynthetic materials were involved,” says AnneMarie Dagenais of Golder Associates, another Chair partner that was involved in planning and construction of the LTA cover. “It’s better to use local materials when available,” she adds. “In the case of the LTA site, there was an old tailing storage area besides the one being remediated. The tailings from this neighbouring site have very low sulphide content and are not acid generating, so we used Technician Nil Gaudet, who works with the Chair in Rouyn-Noranda, and French exchange student those as a water retention material for Étienne Borghi take readings of volumetric water content with a TDR probe at one of the monitoring stations. the LTA cover.” The use of low sulphide tailings in layered covers was originally ew things pose more of a threat to a mine’s legacy proposed by researchers from the Chair. than acid mine drainage (AMD). Over the course of In a CCBE, the capillary barrier effect happens in unsata mine’s life, and especially once the bustle of activ- urated conditions when a fine-grained material layer is ity dies away, the creation of acid in many tailings placed over a coarser one. These two types of material have impoundments is prevented by ever-evolving cover tech- different hydrogeological properties which, when comnologies. For the last 10 years, the Industrial NSERC bined, can restrict the flow of water from the upper layer Polytechnique-UQAT Chair in Environment and Mine to the lower one. The coarser material drains quickly and Wastes Management has focused on improving tailings limits downward movement of water from the fine-grained impoundment covers, and thereby the future of today’s material layer located above. The upper, finer layer remains mine sites. nearly saturated and prevents the flow of oxygen through Chair holders Michel Aubertin in Montreal and Bruno to the reactive tailings beneath. Bussière in Rouyn-Noranda, along with industry partners, The LTA cover consists of three layers: have been exploring how there is no one-size-fits-all cover • Bottom layer of coarse materials (sand), about 0.5 solution. Depending on site characteristics, the approach metres thick. to cover design must account for factors such as climate, • Middle layer of fine-grained materials (non-acid genermineralogy and topography, and be adjusted to meet the ating tailings from nearby Malartic Goldfield site), specific needs of the location. As a result, designs can conabout 0.8 metres thick. sist of single or multiple layers of different materials • Top layer of coarse materials (sand and gravel), at least intended to control the flow of water and prevent oxygen 0.3 metres thick. from reaching the tailings, which causes AMD. “The top layer protects against erosion by wind or water run-off from the slope,” Dagenais says. “It also prevents Multi-layer cover interaction between the middle layer and the atmosphere, When Barrick Gold reclaimed Les Terrains Aurifères limiting evaporation from this fine-grained layer.” (LTA), a tailing storage facility located near Malartic, QueThe LTA cover was constructed in 1996, and has been bec, sulphides were identified in some of the residues – a monitored for performance evaluation since. To date, all key factor in the creation of AMD. In response, Barrick, a expectations have been exceeded. One area that required partner with the Chair, opted to construct a cover with more specific attention, and has been investigated and capillary barrier effects (CCBE). This is a multi-layered monitored in more detail by the Chair, is the potential loss

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upfront ENGINEERING EXCHANGE

of saturation during dry periods caused by the slopes in the major legacy issue for the Quebec government, with an landscape surrounding the site. Monitoring has shown that estimated 1.5 million tonnes of acid-generating tailings this occurs in very short periods, in limited areas, and so deposited, without containment, over a 76-hectare area has little overall impact on the ability of the LTA cover to behind the mill. The tailings had been spilling off the prevent AMD. The effect of bio intrusion on the cover, mine site, across three separate areas in a shallow valley, such as animals digging holes or tree roots, is also moni- to travel downstream into the Arnoux River. The Quebec tored and, where applicable, mitigating measures are government began remediation in 2008, and Chair partapplied. ner SNC-Lavalin designed the reclamation plan in “When we did the initial evaluation, although this technique required more detailed planning and design, after gaining confidence in our ability to mitigate the construction risks, it showed promise of being a more effective solution compared to the traditional, long-term, collect-and-treat solution,� says Jacques McMullen, Barrick’s senior vice-president of special projects. “Now, more than a decade later, maintenance-wise, everything is fine. We’ve had to do a few minor touch-ups on the slopes, but nothing major. On an annual basis, we have to do vegetation control to prevent trees from growing, as their roots could interrupt the effectiveness of the cover design. But, that’s just a simple contract with a local farmer.� As a result, says McMullen, Barrick has implemented a somewhat similar concept in Nevada, in collaboration with researchers from +GLC ?LB NPMACQQ P?U K?RCPG?JQ KMPC CDj AGCLRJW the Chair, and is looking at the possibility of other applications, wherever 2FC +GLGLE 'LBSQRPW applicable.

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Single-layer cover In some cases, though, a layered cover is not the best answer. At the Aldermac mine site, 15 kilometres west of Rouyn-Noranda, collaborators with the Chair elevated the water table and used a single-layer cover made of a granular soil. Recent research from the Chair has shown that elevated water tables create an oxygen barrier; the cover works to prevent desaturation of materials beneath. “When the water table level is elevated above the tailings surface, the tailings stay saturated by constant infiltration through the granular cover,� explains Aubertin. “The water level is controlled by spillways and ditches.� Aldermac ceased production in 1943, and the abandoned site represented a

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November 2011 | 29


MINING AND METALS | ENERGY Conceptual and Feasibility Studies Reports NI 43-101 Technical ech Mine Planning and Design Plant Design and Simulation Project Management EPCM Projects Commissioning Assistance Process Optimization and Control To join our our team team of ofexperts, experts, go to bba.ca/careers or LinkedIn.

30 | CIM Magazine | Vol. 6, No. 7

partnership with Journeaux, Bédard & Associates and Écogénie Inc. Researchers from the Chair were also involved in reviewing the plan. “We first cleaned six kilometres of the river and then worked on the different zones in the valley,” says Denis Isabel, vice-president of mine restoration and geotechnical services at SNCLavalin. In the northern sector of the mine site, the largest area to be reclaimed, a single-layer cover was built. The tailings were already mostly saturated due to high groundwater level, so existing dykes were enhanced and new ones were built to establish a reliably heightened groundwater level. The tailings were covered with sand and gravel to maintain the water table above the tailings surface. The water level is kept below the cover surface. “You can walk on it,” says Isabel. “The top is just sand, but if you dig down a few feet, you hit water. We’re planting trees and other vegetation on top. It is half seeded with grass and half revegetated with other local species – trees, cattails, etc.” A cover like this requires a lot of coarse-grained soil, but it was readily available. “There’s a large sand and gravel deposit right at hand,” Isabel says. “So all the materials were on site, they just needed to be moved around.” The three-year cover construction project was completed this past summer with the creation of a few ditches, a small pond and addition of vegetation. As with the LTA cover, the Aldermac reclamation work will be monitored by the Chair’s team. Data collected in the field will be used to assess the site’s response and evaluate whether goals are being met.

A legacy of innovation Cover technology can be adapted to various site conditions; the key is to select the right design by considering all influencing factors, including which soils are available locally. “These projects also serve to develop innovative monitoring technologies like direct oxygen consumption tests and surface geophysical surveys to assess the actual behaviour of the sites,” Aubertin adds. “Field data are very useful in validating initial assumptions and can sometimes be used to refine the calculation tools being applied for analysis and design.” The development of innovative cover technology is one of many projects that have been conducted by the Industrial NSERC Polytechnique-UQAT Chair since its inception 10 years ago. Other key components of the research program include new methods for surface and underground disposal of tailings, improved design of waste rock piles to favour geotechnical and geochemical stability, more robust and efficient passive treatment systems, and the development of physical and numerical modelling tools. These various projects are complementary to each other, Aubertin says. “The common goal for all these projects is to help the industry, and especially the Chair’s partners, by promoting efficient methods to manage waste materials produced by mining operations.” CIM



neomet.com nevadoresources.com

upfront PROCESSING by Dan Zlotnikov

Extractive metallurgy for the next century Recovering the maximum value from ores and wastes

Operations are ongoing at Neomet's mini-plant facility. The company will expand to a one-tonne-per-day pilot plant in 2012.

roducing one valuable commodity often means treating another as waste. Because ores can contain a multitude of metals and minerals, removing only the most precious of them usually creates tailings rich with other resources. And while many of these may be abundant enough to be commercially valuable, traditional technology has not been able to extract them efficiently. Enter Neomet Technologies, a company dedicated to cutting-edge, processes that promise to significantly change this status quo for the better. “We think we can do things differently,” says Bryn Harris, the company’s president and chief science officer. ”We also strongly believe that there’s a lot the mining industry can do, especially with our technology, not only to improve its image, but also to be more efficient and effective.” Harris explains that Neomet’s process would allow an operator to precipitate and recover individual metals selectively at concentrations of over 95 per cent, turning what previously were waste products into potentially highly valuable revenue sources. Traditional acid leach processes generally only allow for the collection of one target mineral, so you can imagine the scale of waste industry-wide. The underlying principle of the Neomet process, says Harris, is in the application of chloride chemistry – using hydrochloric rather than sulphuric acid to leach metals out of ore – and the attendant advantages that working in a chloride medium offer.

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32 | CIM Magazine | Vol. 6, No. 7

Photo courtesy Neomet.

Courtesy of Neomet

According to Harris, pyrohydrolysis, which is the use of heat and water vapour, has often been the process of choice to recover and recycle hydrochloric acid. The technique was developed shortly after World War II. But that approach has high energy demands – the process takes place at 700 to 900°C – and is unable to recover acid in concentrations greater than 18 per cent. Neomet has revamped those techniques, and their process requires much lower temperatures – just 180 to 200°C. With the new technology, operators can recover 100 per cent of the acid at concentrations as high as 35 to 36 per cent. That means acid can be immediately returned to the leach stage as it evaporates. The process uses a proprietary solvent matrix, which has a very high boiling point, to regenerate and recycle the acid. Traditional metal chloride hydrolysis processes for the recovery of hydrochloric acid take place at high temperatures, like those necessary for pyrohydrolysis, or require the use of a pressurized autoclave. But their solvent lets Neomet use what Harris terms an “atmospheric autoclave,” which does not require higher than atmospheric pressure to achieve results, and consequently saves money.

Diminishing the tailings footprint Neomet also promises a greener future in the form of significantly diminished and less hazardous tailings ponds. Harris points out just how much waste is generated by existing approaches. “Nickel laterites maybe have one per cent nickel,” he says. “So you dig a tonne of laterite, you recover your 10 kilograms of nickel and throw the rest away. But not only that, you’ve treated it with sulphuric acid, so for every tonne of laterite you dig up, you’re probably throwing a tonne and a half of residue material away.” And a lot of that waste is useable iron ore. “Nickel laterites have up to 30 per cent iron in them,” Harris explains. “Vanadium ores always have loads of iron in them. Typically in Quebec, there is 40 to 50 per cent iron in the ore.” Recover that iron, and your tailings pond shrinks accordingly. “Just think of all the jarosite ponds and the red mud ponds,” he adds. “We won’t have those because we will be recovering all of the iron.” Instead of iron-rich tailings, the Neomet process will produce hematite, a marketable iron product. “We’re making very high-grade hematite, rather than what the sulphuric acid processes do, which is to produce an iron hydroxide sludge that has to be ponded and thrown away,” says Harris.


upfront PROCESSING

Recovering the iron holds much appeal for Nevado Resources, an advanced-stage exploration company that owns La Blache, a property in south-central Quebec. At La Blache, assay results indicate not only significant concentrations of vanadium and titanium, but also as much as 55 per cent iron. Michael Curtis, Nevado’s CEO, says that while the property’s titanium and vanadium content alone are enough to make the project economical, the company’s aim is to make use of all the available minerals by applying the Neomet process. While Curtis’ main focus is not iron, he will gladly sell it. The lower cost iron would essentially be a profitable byproduct at La Blache, but Curtis adds that the environmental benefits of the Neomet approach were a very significant consideration for him. ”Since we’re a commercial company, it has to be economical,” he says. “But being economical and green were two major points.”

It’s not easy being green “Environmental sounds great, sustainable development sounds great, but they don’t necessarily put bread on the table,” says Harris. “So if it’s not economical, it’s not going to go,” which is why Neomet plans to market the process primarily on its economic advantages. First, though, the company must show that the process remains economical on a commercial scale. Nevado is one of several “vanguard” companies interested in the Neomet process, and which are working with them to scale it up, says Harris, although he is not at liberty to disclose names of others at this time. He also says that the current plan is to move from the mini-plant stage to a one-tonne-per-day pilot plant during 2012. The plant, which Neomet will use to process ores from both Nevado and other clients, will be the next major step in demonstrating the viability of the process. CIM

Bryn Harris’ career as a pioneer The Neomet process is not the first time Harris and his colleagues have offered something new. One of their major successes dates all the way back to 1985, when Harris worked for Noranda. Around that time, he says, Noranda’s Canadian Copper Refinery (CCR) in the east end of Montreal, which started operations in the 1930s, was running into problems with its classical electrolytic gold refining process. While primarily meant to produce copper, CCR also recovered and refined gold from the copper refinery byproduct, known as anode slimes. “You have to go back to realize that the classical gold refining process, especially for anode slimes, was pretty horrendous,” says Harris. “It was very unpleasant and lost not only a lot of gold, but also a lot of the platinum and palladium that came along with the gold, in the process.” According to Harris, the challenge facing CCR was the dramatically increasing presence of platinum and palladium in the mine bullion, which was occurring because the copper smelters had started treating electronic scrap, now known as e-waste. “The build-up of platinum and palladium in their circuit required the electrolyte to be changed every 14 hours, which is about as fast as they could do it,” he explains. To put this in perspective, at the time, other gold refineries such as the Royal Canadian Mint had to change their electrolyte once every six months. Without a process change, he adds, “they would have had to basically shut down and send the material off site for processing,” to a facility with a dedicated refining circuit for extracting platinum group metals. Harris’ solution was to move away from traditional electrorefining and into pure hydrometallurgical extraction, recovering gold directly from an HCl solution. This innovative approach, which produced “five nines” pure gold, won the Canada Business Award for Innovation in 1987, and allowed the refinery to recoup all of its capital costs five weeks after startup. With Neomet’s latest development, Harris is proposing to move the advantages offered by chloride chemistry from the refinery to the mine face. Previously, replacing cyanide with hydrochloric acid would have been prohibitively expensive, he explains. But with Neomet’s technology now allowing for recovery and regeneration of the acid, the success of CCR can now be applied inside the mine itself.

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November 2011 | 33


smartcap.com.au seeingmachines.com fmig.org

upfront TECHNOLOGY by Peter Diekmeyer

Tired of fatigue-related accidents? Companies are using new technology to identify drowsy operators haul and water trucks, used by between 800 and 1,000 operators. Gradual implementation will enable participants to adjust to lessons learned from early experiences. “Our research indicates that systems such as this one are clearly needed,” says Bongers, who notes that the mining industry’s macho image and an employee tradition of stoically working long hours make it hard for sector personnel to gauge precisely when relief is needed. “During two preliminary field trials that we conducted, of 53 operators observed over the course of four weeks, seven were found to have been affected by extremely high levels of fatigue,” he explains. The monotony of many driving jobs increases the risk of fatigue.

n recent years, research has been pointing to fatigue as a major and often under-reported cause of accidents, both on the road and in the mines. The incidence of catastrophic work accidents increases dramatically when operators are tired, and mining companies are racing to find new ways to address this issue. “Thousands of people die on the road each year due to driver fatigue, many of them innocent people who were not in the vehicle with the fatigued driver,” says Daniel Bongers of EdanSafe, a company which markets the SmartCap Fatigue Management system. “The mining industry too is suffering from the problem,” he explains. “One estimate is that between 30 and 35 per cent of all mining site lost time incidents (LTIs) are attributable to operator fatigue. But even that figure may be low because people, in general – and miners in particular – loathe admitting when they are tired.” As its name implies, EdanSafe’s solution to the problem – the SmartCap Fatigue Management system – relies on sensors placed in baseball caps that users wear while they work. These sensors evaluate how drowsy they are based on their brainwave measurements.

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A clear and growing need The system is currently being phased in at Anglo American’s Drayton coal mine site in Australia and will then be extended to a total of four sites around the country. When the process is complete, the system will be in place on 200 34 | CIM Magazine | Vol. 6, No. 7

Seeing Machines DSS technologies Not all fatigue management systems operate by measuring brainwaves; in fact, a variety of new systems are evolving and being tested in the mining industry. For example, according to a presentation by Mark Bartlett of Freeport McMoRan at a recent CIM conference, the company is currently installing Seeing Machines DSS driver monitoring technology at several of its mines, based on a computerized process that monitors fatigue by tracking features on human faces. More specifically, DSS uses remote sensors on vehicle dashboards to measure when drivers are opening and closing their eyes. The technology then uses this information to figure out how drowsy the driver is. When a short period of light sleep known as a “micro-sleep incident” occurs, an alarm sounds and the driver’s chair vibrates. This immediately causes the operator to open his or her eyes. In cases where there are multiple sleep events, a series of escalating preventative measures are taken. For example, after the second event, the driver’s dispatcher is notified. After a third occurrence, the driver is asked to park his or her vehicle and have a chat with their supervisor, who then either puts the driver back on alert or provides them with an opportunity to take a nap if needed. “Our goal is to reduce or eliminate fatigue-related injuries and fatalities,” says Bartlett, “We want everyone to go home to their family whole.”

An advisory system for tired drivers According to Ian Thomas, the director of Fatigue Management International, extensive research shows


that tiredness levels tend to vary in humans at very specific times of the day. “The early hours of the morning and the middle of the afternoon are the times when people are more susceptible to becoming tired,” he says, “so if you wanted to monitor the times of greatest exposure to accidents at the early signs of it happening, it would be quite easy.” Fatigue Management’s Advisory System for Tired Drivers (ASTID) does just that. “We know from research that all drivers make small adjustments to keep their vehicles on the road, and as they get tired, those adjustments get far brusquer,” says Thomas. “So when those sharp corrective movements occur during times of peak potential driver vulnerability, you know you have a problem.” According to Thomas, Fatigue Management International saw real issues within the mining industry. “Many typical sleepiness episodes can be worked through when drivers are in a town type of environment where there are multiple distractions to stimulate alertness to keep them awake,” he explains. “In mining, however, the continuous monotony of haul routes only exacerbates the onset of driver tiredness with potentially disastrous financial and human loss.” ASTID has already gone through extensive trials in Australia, North and South America, and was evaluated as the number one technology in the Caterpillar Fatigue Technology report, so demand for the system is strong. The company is currently installing its systems and providing extensive consulting services to Kumba Iron Ore, a subsidiary of Anglo American in South Africa, and is pursuing opportunities with numerous other interested parties. “Due to its unobtrusive nature and its real-time integration with dispatching systems, there is little resistance to the technology’s deployment, as it is accepted that the system is there for the drivers’ benefit and ultimate safety,” concludes Thomas.

A technology whose time has come? Even strong proponents of fatigue management technology agree that there are challenges involved in installing and using these systems. For example, EdanSafe countered potential resistance to its products by making them part of a baseball cap that operators could wear. Others object to what they feel are intrusive technologies that monitor basic private information. There are also implementation questions such as dealing with potential false positives. Yet despite the stakes involved, the potential benefits that these systems bring are so high that they almost certainly represent the wave of the future. “I am very impressed with the way that the mining industry as a whole is dealing with the challenges of fatigue management,” says EdanSafe’s Bongers. “For one, we have never had to seek out any new clients, they have always come to us. And furthermore, no client even asks about the system’s costs or how it will impact productivity. Safety is always the main concern.” CIM November 2011 | 35


osisko.com

upfront Q&A by Richard Andrews

A return on ambition Osisko CEO Sean Roosen overcomes the odds to fulfill his dream luctuating gold prices, shifting regulations, grumbling neighbours and global opportunities – as CEO of Montreal-based Osisko Mining Corporation, Sean Roosen knows very well the risks and rewards that come with leading an exploration company through development and into production. Osisko’s flagship project is the Canadian Malartic gold mine in western Quebec’s Abitibi mining district. With Proven and Probable Reserves of 10.7 million ounces, the open pit mine is said to represent the single biggest gold reserve in production in Canada. It is also the bedrock for the company that is focused on building a gilded future. Roosen spoke to CIM about how he deals with challenges in the quest for gold.

camp when I was 18 years old. I always wanted to run my own company and, finally, after all these years, here it is.

Courtesy of Osisko

F

To take a junior mining company and transition it to a producing mining company has been my goal since I started in this business.

CIM: What first attracted you to mining? Roosen: At 17, I went to Ontario’s Haileybury School of Mines where I was exposed to the world of geology and mining. I went on to work in underground mining, on drill rigs, and got the exploration bug when I went to Ivory Coast to manage field operations in 1987. I also explored for diamonds but always ended up in gold. I prefer bigger mines, which is why I’m doing what I do now. CIM: The pouring of the first gold bar at Canadian Malartic last April closely followed your fifth anniversary as Osisko CEO. What have been the highlights of those first five years? Roosen: I’d say moving from an exploration project to a producer, considering the major challenges of developing a $1 billion project in an urban area. Developing Canadian Malartic was a complex project. The deposit is low grade and hosted in hard rock, and on top of that was partially located under a town. We had to move 205 homes as well as other institutional buildings. Not every company would take on such technical and social challenges, but we were confident the deposit was there and that we could overcome the obstacles. To take a junior mining company and transition it to a producing mining company has been my goal since I started in this business. I was reading books by Warren Buffet in 36 | CIM Magazine | Vol. 6, No. 7

CIM: To develop Canadian Malartic, Osisko raised over $400 million in an oversubscribed bought deal at the peak of the financial crisis in February 2009. How did you pull that off? Roosen: Because we were coming out of nowhere, we always tried a little harder than the next company. We worked hard and waited for an opportunity. We’d say: “Let’s market 364 days of the year and find out which day of the year we can finance.” We set out to be one of the premium companies when it came to shareholder awareness because we spent so much time with our shareholders. We under-promised and over-delivered, and we drilled fast and hard – almost a million metres since 2005.

CIM: How dependent is Canadian Malartic on gold maintaining or increasing its current value? Roosen: We hope for the best, and plan for the worst, but it’s a very robust deposit. We’re currently working on a $1,000 an ounce pit shell (mining plan) for the next two or three years. We did our original feasibility at $775 per ounce and we’ve estimated IRR’s (internal rate of returns) of over 25 per cent at that gold price. Obviously, cost structures have moved since then, but so have gold prices. If there is a constraining gold price, the high cost producers will be the first ones to go off line. But as a wise man once said: the only thing that will fix a low gold price is a low gold price. Low prices will shut a lot of the higher cost mines and constrain supply, which again will cause a rise in the price of gold. We will be a lowest quartile producer, so we feel fairly insulated from the possibility of falling gold prices.

CIM: You once described Quebec as one of the best mining jurisdictions in the world to carry out investment. How then do you view proposed legislation that would force exploration companies to win project approval from local and municipal authorities, in addition to federal and provincial governments? Roosen: We are strong advocates of responsible and socially conscious mining. However, we’re very concerned about


upfront Q&A

these new proposals. The proposed changes would be putting the onus on municipal governments that don’t have the resources or expertise to evaluate these projects, and are likely to have a purely local perspective. There are already more than enough industry regulations and approvals required for exploration. The push for additional legislation could have a very significant impact on investment in the province – it’s an idea that needs to be rethought. CIM: What specific implications could the proposed B14 bill hold for Osisko? Roosen: We’re already a functioning mine in Malartic so it would have no significant impact there. However the proposal might make us reflect about further exploration investment in areas where we’re not sure about the municipal approach. CIM: Despite company policy to be a good neighbour, some Malartic residents have complained about noise from mine operations. What’s your response? Roosen: With less than a handful of not-yet-satisfied individuals in a town of 3,700 people just a few months into operations, we feel we’ve done a good job managing community and mining side by side. Everybody in Malartic had the chance to think about the project and to have input in the public hearing process. We held about 22 town hall meetings before the official public hearing, to understand people’s concerns and priorities. We had over 85 per cent approval from the local community. If you talk to the mayor, the mine’s economic effect on Malartic has been extraordinary. It has created jobs, increased the population and helped the town manage its debts and lower its taxes.

work and we look forward to an intensive exploration program on the property over the coming year. CIM: How does dealing with government in Argentina compare with Canada? Roosen: Argentina is similar to Canada in that mining laws vary from province to province. Some states in Argentina are particularly good at dealing with mining, others are less optimistic about it. La Rioja has a rich mineral endowment. They see their future in the mining industry and need the development to assist their economy. Politics in Argentina are probably a little more robust than here in Canada. However, I spent 13 years in Africa and three years in central Asia, so Argentina looks pretty good to me. It all depends on perspective. CIM: What other projects are planned? Roosen: Osisko has a drill and build philosophy. We’re pursuing exploration on a number of properties, including the Hammond Reef gold project in northern Ontario, which has the potential, together with production from Canadian Malartic, to allow Osisko to become a one-million-ounceper-year gold producer by 2016. CIM

A consortium of applied research for the treatment and processing of mineral substances, COREM relies on its dynamic alliance with members and partners to improve the competitiveness of industrial operations through the development and transfer of technological innovations, which are consistent with sustainable development objectives.

CIM: How have you addressed the noise complaints? Roosen: We’ve complied with Quebec noise regulations. We set up a noise attenuation project with a green perimeter between the town and the mine. The noise level on the town side of the perimeter is 43 to 46 decibels. My boardroom, with the air conditioning turned off, runs at 51 decibels. I think we’ve done our job.

COREM is in a position to offer a highly stimulating professional challenge to those who are passionate about their work and wish to undertake the pursuit of excellence. Dynamic and creative persons who would enjoy working within a multidisciplinary team are invited to submit their applications to work at COREM. • Scientific Director - Technology

CIM: Osisko has signed an agreement with a state government in Argentina for joint development of the Famatina gold property in La Rioja Province. Does that mean you plan to move out of the mid-tier league to become a major international player? Roosen: We feel we have the opportunity and resources to build two or three more world-class operations. Argentina is a fantastic piece of geology and we’re very excited at the addition of another high-quality project to our current portfolio of properties. We believe Famatina hosts very promising targets with excellent potential for future development. We’ve assembled a highly experienced team to oversee the

• Director – Nonferrous Sector • Researchers XComminution XFlotation XMineralogy • Engineer – Instrumentation and control • Mineral Resources Technician Visit the “Career opportunities” section of our website www.corem.qc.ca

November 2011 | 37


Pushing back the frontier Quebec’s plan to advance northern development is rich with potential – and uncertainty By Alexandra Lopez-Pacheco

The aurora borealis above Inukjuak, Quebec Credit: David Rouault/Rouault.net


plan nord

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n May of this year, Quebec Premier Jean Charest boat and plane. “Logistics is the principal consistent chalannounced the launch of a massive and ambitious $80 lenge for us,” says Mike Welch, vice-president, Xstrata billion economic, social and environmental plan to Nickel Raglan Mine. “There’s also the unpredictable develop Northern Quebec over the next 25 years. Plan weather to deal with. The main production and accommoNord covers all the territory in Quebec north of the 49th dation site is approximately 100 kilometres south from parallel, which represents 72 per cent of the province’s our port facility at Deception Bay, so wind, snow and whiteland. And it is land that is rich with natural resources and outs can interrupt the transport of concentrate and untapped potential, including such mineral resources as supplies.” And, adds Welch, “There is always the intense nickel, cobalt, platinum, diamonds, zinc, iron ore and ura- winter cold. There is no drilling-dry; therefore, we use a nium, but poor when it comes to infrastructure, which brine solution underground to keep the water from freezmakes developing these resources hugely expensive, ing.” sometimes prohibitively so. Plan Nord is the vision that can change that, not just for the mining sector but also for such Expanding the network of roads Since 2006, in the Otish Mountains, some 275 kilomeindustries as forestry, energy and tourism. According to Clément Gignac, the province’s minister tres north of Chibougamau and 210 kilometres northeast responsible for Plan Nord, “since we presented Plan Nord of Mistissini, Strateco Resources has also been beating the last spring, we have been receiving tons of demands to odds with its Matoush project, which the company says is present it to political figures and potential foreign investors, one of the world’s highest grade uranium projects. But to and to talk about the mining potential and different aspects do so, it has already spent $65 million. The company is of mining policies in Quebec.” now awaiting federal approval to build an underground “For mining exploration and miners in Quebec, Plan Nord exploration ramp. is a fantastic opportunity,” says Ghislain Poirier, president of “We have access to our project by air and with a winter the Association de l’exploration minière du Québec (AEMQ), road from January to March, which costs us between who for two years sat as the representative of the mining $800,000 and $1 million per year,” says Guy Hébert, the exploration sector on the Plan Nord Partners Table, which company’s president and CEO. Plan Nord, whose top objecincluded 25 representatives from various industries, tives include making Northern Quebec more accessible, is Aboriginal Peoples and other stakeholders in the region, and about to change that. Construction for the $331.6 million was set up by the government to develop the plan. “Many extension of Route 167 between Témiscamie and the Otish explorers are very confident that if we succeed with Plan Nord, the entire province of Quebec will benefit, because the potential for resources is not big, it’s huge. And the international mining community has recognized this for many years. It’s one of the best regions to explore – it’s a dream for an explorer.” It is a dream that some mining companies over the years have pursued, but to do so, they have had to beat the odds, tackling the challenges with tenacity and tremendous investments. At the extreme northern tip of the province in Nunavik, for example, there is Xstrata Nickel’s Raglan Mine, which has been in operation since 1998 and includes a two-kilometre-long landing The mining environment is considered the most rugged and exposes heavy equipment strip. The company purchased a to the harshest applications in the world. To perform within this environment your Boeing 737 and made it gravel-strip organisation needs quality equipment and a premier dealer to deliver reliable support capable. The combination cargo/pastime after time. By combining Komatsu’s innovative technology with SMS Equipment senger aircraft transports critical support organisation, you can count on supplies, fresh produce and all employmoving more material in less time. ees and contractors. The mine, which Reduce your production cost per ton now consists of three mines, another and increase your profit. close to starting up and two more startEastern Region: 1 800 881-9828 • Western Region: 1 866 458-0101 ing construction in 2012, has access to a 150-kilometre year-round road netwww.smsequip.com work, but the site is accessible only by November 2011 | 39


Courtesy of NML

Courtesy of Stornoway Diamonds

Courtesy of Stornoway Diamonds

plan nord

Left and top right: By this time next year, the extension of Route 167 will provide road access to Stornoway Diamonds’ Renard project; bottom right: Exploration continues at New Millennium Iron’s property near Schefferville.

Mountains is expected to begin soon and will benefit not just Strateco but also Stornoway Diamonds’ Renard project, among others. As part of Plan Nord, the government plans to recoup 50 per cent of its investment, asking industrial users to chip in both in construction costs as well as covering the maintenance costs once the road is built. “With the road, which we should be connected to by the fall of 2012, we’ll not only save money from our winter road,” says Hébert, “but having permanent access to transportation also saves a lot of money in storage as well and reduces your need to store inventory.” This extension is an example of the type of transportation initiatives Poirier’s organization believes the government should pursue. “Route 167 will serve at least four potential mining projects, as well as a national park and a potential windmill farm being developed in the area,” he says. “I think building multi-services roads is the way to develop the North rather than on a project-by-project basis. But there is no certainty yet that this is the way Plan Nord will always materialize. The fact is that while there is a lot of buy-in for Plan Nord among stakeholders from industries and communities, to date, the plan remains a framework, with few specifics and details. “I think the first tool needed to develop the implementation is the Crown

40 | CIM Magazine | Vol. 6, No. 7

corporation, La Société du Plan Nord,” says Poirier. “That entity will be created in the current parliamentary session.”

Aboriginal engagement Currently, Plan Nord is the driver of very intensive consultations within the Cree Nation of Eeyou Istchee, says Grand Chief Matthew Coon Come of The Grand Council of the Crees. The Cree Nation, which in Quebec consists of nine villages, located on the coast of James Bay (Chisasibi, Eastmain, Waskaganish and Wemindji) and Hudson Bay (Whapmagoostui), as well as inland (Mistissini, Nemiscau, Oujé-Bougoumou and Waswanipi), outlined its expectations to the Quebec government in its own document, “The Cree Vision of Plan Nord,” early in 2011. “Of course, Plan Nord will be a continuing process, not a single list of projects, and how it is implemented will be critical to its success. The Crees look forward to working together with Mr. Charest in the implementation of Plan Nord to ensure that it provides concrete benefits to the Crees in critical areas such as housing, infrastructure and energy, as well as benefits for our neighbours in the region,” says Coon Come, whose nation signed an agreement with the Quebec government this May that addressed one of its concerns: the need for a new model of governance.


Major mining projects in advanced phase 84°

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Gold, copper, zinc 38- Bracemac-McLeod (Xstrata-Donner Metals) 39- Lac McLeod (Western Troy Capital) 40- Langlois (Nyrstar Canada) 41- LaRonde Extension (Agnico-Eagle) 42- PD1 (Xstrata)

Ungava Bay

58°

Iron, iron and titanium, Seavanadium Labrador 43- DSO (New Millennium) 44- KéMag (Taconite) (New Millennium) 45- Blackrock (Blackrock Métal) Nickel, copper 46- Dumont Nickel (Royal Nickel) 47- Nunavik Nickel (Jien Canada Mining) Niobium, tantalum 48- Crevier (MDN) 49- Niocan (Niocan) Chrysotile 50- Mine Jeffrey (Mine Jeffrey)

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Uranium 55- Matoush (Strateco) Lithium 56- Eastmain - Rose (Critical Elements) 57- James Bay Lithium (Lithium One) 58- Québec Lithium (Canada Lithium) 59- Whabouchi (Exploration Nemaska)

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60°

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Produced by Ministère des Ressources naturelles et de la Faune Direction de l'information géologique du Québec Note: This document has no legal value. © Gouvernement du Québec, July 2011

November 2011 | 41


plan nord Most of the communities in the region are small and in need of development in everything from paved roads to quality housing to wireless communication, which either does not exist in some communities or has inconsistent reception. “One of the things that Plan Nord will provide is a ‘foot in the door’ to provide a change for the better in social conditions,” says Xstrata’s Welch. “Something drastic needs to change in terms of housing. We put money into the profit sharing agreement and although we don’t have a whole lot of say in how that money gets dispersed, we would like to be a catalyst to help guide successful outcomes a bit more and drive socio-economic development. We need to work with the local communities and governments to do that. Basic education, health and housing – these are big issues. Start there. So we need to get more creative with the Plan Nord funding to help guide that, and that’s going to be a huge challenge for everyone.” Ghislain Picard, Regional Chief of the Assembly of First Nations of Quebec and Labrador, believes the government will need to engage in more meaningful and open consultation with all Aboriginal communities. From his perspective, the government has emphasized consultation with aboriginal nations such as the Cree and the Inuit that have signed major land claim settlements. Picard says smaller nations such as his, the Innu Nation, which consists of nine communities in the Côte-Nord and Saguenay-Lac-Saint-Jean

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regions, do not have as much clout in negotiations. “To me, if the government was more open to discussing and negotiating all aspects affected by Plan Nord, we’d be the first to applaud,” he says.

Common cause One of the other challenges both communities and mining companies in the region face is energy. Under Plan Nord, the government will develop 3,500 MW of clean, renewable energy, most of it as hydroelectricity, but also 300 MW of wind power and 200 MW from other renewable energy sources. In fact, the government plans to invest an estimated $25 billion in energy development. The plan also states that Hydro-Québec will support the development of industrial projects such as in the mining sector. “Hydro-Québec did a survey for us,” says Strateco’s Hébert. “The cost to be connected to the grid from the south would be $150 million. That’s too costly for us. Maybe we’ll be able to do it from the north but not for the next five to 10 years.” “It’s one thing to develop roads,” says Poirier, “but if there is no energy for the industrial users, we cannot develop the North efficiently, instead a multi-services approach should be developed here too.” Gignac says each decision on power projects will depend on economics. “Like all Hydro-Quebec projects, they will be based on the company’s three criteria for fea-

MINING

559-A, boul. Témiscamingue, Rouyn-Noranda (Québec), Canada J9X 7C8 T : 1 888 797-2009 | F : 819 797-4441 | info@mecanicad.ca | www.mecanicad.ca

42 | CIM Magazine | Vol. 6, No. 7


plan nord sibility: they must be profitable, environmentally acceptable and favourably received by local communities,” he explains.

HR: the inevitable struggle Everyone agrees that the biggest challenge for mining companies today and in the years to come as Plan Nord develops will be labour. The government has allocated $65 million over the next five years for training and development of skilled labour in the region and plans to promote close collaboration among all partners, including educational and training institutions, businesses, local communities and the regional councils of labour market partners. Within government administration, Gignac says, the ministry will not add to its workforce but improve the information technology tools its people use. The labour challenges for remote mines, however, will be acute. “We have to have two people for every position because of our two weeks on/two weeks off rotation,” says Hébert. Despite agreements with local colleges and their own training programs for Aboriginal communities, the mines are all facing a severe skilled labour shortage and will likely continue having to fly people in, including from other provinces, or in some cases, from other countries. “It takes a long time to train the right people in the local communities,” says Guillaume Marquis, 48e Nord International president, whose organization works closely in building rela-

tionships with Aboriginal communities and provides support to Abitibi-Témiscamingue enterprises. “It could take another 10 years to really develop the skills and education there.” The challenges aside, the opportunities for all are tremendous, says Marquis. Indeed, there is great excitement among all stakeholders. “The government will recover its investment very rapidly,” says Poirier. “In addition to contributions from industrial users, there are also taxes and royalties. Never forget that people working in these mines will receive good salaries, and the industrial users will create wealth locally and at the provincial level with tax and royalties. The royalty regime in Quebec is very different from 18 months ago. We recognize that we were the lowest across the country in terms of total royalties and taxes, but we have now risen quickly to third from the top of the list. This year, the royalties are 14 per cent and next year they will be 16 per cent. Think about it: this year the government collected $300 million in royalties. It’s more than what it has recovered in the last 10 years. Moreover, the government’s forecasts are $365 million per year for the next four years.”

Regulatory risk At the same time that the government announced Plan Nord, however, it released news that according to Poirier will mean a huge threat to mining exploration in Quebec.

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November 2011 | 43


“In May 2011, the government proposed Bill 14 to replace the Mining Act, and there are some elements in that bill that we cannot live with,” he says. “The main one is Article 91, which gives local municipalities the right to say yes or no to any mining project. Imagine, now we have to live with 1,200 different municipal governments that have the power to say yes or no for mining exploration. You can spend millions and millions of dollars in one area and even if a local government has said yes, what happens when the next mayor is elected? Mining exploration is a very risky business and that level of uncertainty means forget mining in Quebec. If your property is facing a threat like that, you won’t be able to raise money.” AEMQ is in talks with the government to find a solution, but for now, these are the best of times and the worst of times for mining companies in Quebec. CIM

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44 | CIM Magazine | Vol. 6, No. 7

Double the recognition Steve Scott, a 2009-2010 CIM Distinguished Lecturer, was presented with the 2010 Haddon Forrester King Medal this past September in Canberra, Australia. Scott spoke about his working life in a talk entitled “My scientific journey from experimentalist to ocean explorer.” Current and former colleagues, former students, Haddon King’s family, Rio Tinto and representatives from the mining, geoscientific and university communities from around Australia came together in celebration of Scott’s lifetime of achievement and scientific excellence. The medal, sponsored by Rio Tinto, is one of the Australian Academy of Science’s prestigious career awards, which recognizes original and sustained contributions to earth and related sciences of particular relevance to the discovery, evaluation and exploitation of mineral deposits, including the hydrocarbons. Scott was also the recipient of the Moore Award, presented to him at the 40th Underwater Mining Institute in Hilo, Hawaii, also this past September.


Pushing back the frontier Quebec’s plan to advance northern development is rich with potential – and uncertainty By Alexandra Lopez-Pacheco

The aurora borealis above Inukjuak, Quebec Credit: David Rouault/Rouault.net


plan nord

I

n May of this year, Quebec Premier Jean Charest boat and plane. “Logistics is the principal consistent chalannounced the launch of a massive and ambitious $80 lenge for us,” says Mike Welch, vice-president, Xstrata billion economic, social and environmental plan to Nickel Raglan Mine. “There’s also the unpredictable develop Northern Quebec over the next 25 years. Plan weather to deal with. The main production and accommoNord covers all the territory in Quebec north of the 49th dation site is approximately 100 kilometres south from parallel, which represents 72 per cent of the province’s our port facility at Deception Bay, so wind, snow and whiteland. And it is land that is rich with natural resources and outs can interrupt the transport of concentrate and untapped potential, including such mineral resources as supplies.” And, adds Welch, “There is always the intense nickel, cobalt, platinum, diamonds, zinc, iron ore and ura- winter cold. There is no drilling-dry; therefore, we use a nium, but poor when it comes to infrastructure, which brine solution underground to keep the water from freezmakes developing these resources hugely expensive, ing.” sometimes prohibitively so. Plan Nord is the vision that can change that, not just for the mining sector but also for such Expanding the network of roads Since 2006, in the Otish Mountains, some 275 kilomeindustries as forestry, energy and tourism. According to Clément Gignac, the province’s minister tres north of Chibougamau and 210 kilometres northeast responsible for Plan Nord, “since we presented Plan Nord of Mistissini, Strateco Resources has also been beating the last spring, we have been receiving tons of demands to odds with its Matoush project, which the company says is present it to political figures and potential foreign investors, one of the world’s highest grade uranium projects. But to and to talk about the mining potential and different aspects do so, it has already spent $65 million. The company is of mining policies in Quebec.” now awaiting federal approval to build an underground “For mining exploration and miners in Quebec, Plan Nord exploration ramp. is a fantastic opportunity,” says Ghislain Poirier, president of “We have access to our project by air and with a winter the Association de l’exploration minière du Québec (AEMQ), road from January to March, which costs us between who for two years sat as the representative of the mining $800,000 and $1 million per year,” says Guy Hébert, the exploration sector on the Plan Nord Partners Table, which company’s president and CEO. Plan Nord, whose top objecincluded 25 representatives from various industries, tives include making Northern Quebec more accessible, is Aboriginal Peoples and other stakeholders in the region, and about to change that. Construction for the $331.6 million was set up by the government to develop the plan. “Many extension of Route 167 between Témiscamie and the Otish explorers are very confident that if we succeed with Plan Nord, the entire province of Quebec will benefit, because the potential for resources is not big, it’s huge. And the international mining community has recognized this for many years. It’s one of the best regions to explore – it’s a dream for an explorer.” It is a dream that some mining companies over the years have pursued, but to do so, they have had to beat the odds, tackling the challenges with tenacity and tremendous investments. At the extreme northern tip of the province in Nunavik, for example, there is Xstrata Nickel’s Raglan Mine, which has been in operation since 1998 and includes a two-kilometre-long landing The mining environment is considered the most rugged and exposes heavy equipment strip. The company purchased a to the harshest applications in the world. To perform within this environment your Boeing 737 and made it gravel-strip organisation needs quality equipment and a premier dealer to deliver reliable support capable. The combination cargo/pastime after time. By combining Komatsu’s innovative technology with SMS Equipment senger aircraft transports critical support organisation, you can count on supplies, fresh produce and all employmoving more material in less time. ees and contractors. The mine, which Reduce your production cost per ton now consists of three mines, another and increase your profit. close to starting up and two more startEastern Region: 1 800 881-9828 • Western Region: 1 866 458-0101 ing construction in 2012, has access to a 150-kilometre year-round road netwww.smsequip.com work, but the site is accessible only by November 2011 | 39


Courtesy of NML

Courtesy of Stornoway Diamonds

Courtesy of Stornoway Diamonds

plan nord

Left and top right: By this time next year, the extension of Route 167 will provide road access to Stornoway Diamonds’ Renard project; bottom right: Exploration continues at New Millennium Iron’s property near Schefferville.

Mountains is expected to begin soon and will benefit not just Strateco but also Stornoway Diamonds’ Renard project, among others. As part of Plan Nord, the government plans to recoup 50 per cent of its investment, asking industrial users to chip in both in construction costs as well as covering the maintenance costs once the road is built. “With the road, which we should be connected to by the fall of 2012, we’ll not only save money from our winter road,” says Hébert, “but having permanent access to transportation also saves a lot of money in storage as well and reduces your need to store inventory.” This extension is an example of the type of transportation initiatives Poirier’s organization believes the government should pursue. “Route 167 will serve at least four potential mining projects, as well as a national park and a potential windmill farm being developed in the area,” he says. “I think building multi-services roads is the way to develop the North rather than on a project-by-project basis. But there is no certainty yet that this is the way Plan Nord will always materialize. The fact is that while there is a lot of buy-in for Plan Nord among stakeholders from industries and communities, to date, the plan remains a framework, with few specifics and details. “I think the first tool needed to develop the implementation is the Crown

40 | CIM Magazine | Vol. 6, No. 7

corporation, La Société du Plan Nord,” says Poirier. “That entity will be created in the current parliamentary session.”

Aboriginal engagement Currently, Plan Nord is the driver of very intensive consultations within the Cree Nation of Eeyou Istchee, says Grand Chief Matthew Coon Come of The Grand Council of the Crees. The Cree Nation, which in Quebec consists of nine villages, located on the coast of James Bay (Chisasibi, Eastmain, Waskaganish and Wemindji) and Hudson Bay (Whapmagoostui), as well as inland (Mistissini, Nemiscau, Oujé-Bougoumou and Waswanipi), outlined its expectations to the Quebec government in its own document, “The Cree Vision of Plan Nord,” early in 2011. “Of course, Plan Nord will be a continuing process, not a single list of projects, and how it is implemented will be critical to its success. The Crees look forward to working together with Mr. Charest in the implementation of Plan Nord to ensure that it provides concrete benefits to the Crees in critical areas such as housing, infrastructure and energy, as well as benefits for our neighbours in the region,” says Coon Come, whose nation signed an agreement with the Quebec government this May that addressed one of its concerns: the need for a new model of governance.


Major mining projects in advanced phase 84°

82°

80°

78°

76°

74°

72°

70°

68° B IS AF F LA I N ND

Hu Str d so n ai t

Salluit

66°

64°

62°

60°

Puvirnituq

Gold, copper, zinc 38- Bracemac-McLeod (Xstrata-Donner Metals) 39- Lac McLeod (Western Troy Capital) 40- Langlois (Nyrstar Canada) 41- LaRonde Extension (Agnico-Eagle) 42- PD1 (Xstrata)

Ungava Bay

58°

Iron, iron and titanium, Seavanadium Labrador 43- DSO (New Millennium) 44- KéMag (Taconite) (New Millennium) 45- Blackrock (Blackrock Métal) Nickel, copper 46- Dumont Nickel (Royal Nickel) 47- Nunavik Nickel (Jien Canada Mining) Niobium, tantalum 48- Crevier (MDN) 49- Niocan (Niocan) Chrysotile 50- Mine Jeffrey (Mine Jeffrey)

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44 43

54°

Rare earths, yttrium, zircon 53- B-Zone (Quest Rare Minerals) 54- Zeus (Matamec Explorations)

Schefferville

Uranium 55- Matoush (Strateco) Lithium 56- Eastmain - Rose (Critical Elements) 57- James Bay Lithium (Lithium One) 58- Québec Lithium (Canada Lithium) 59- Whabouchi (Exploration Nemaska)

Radisson NEWF OUNDLAND AND LABRADOR

Wemindji

52°

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60

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54°

28- Belleterre (Conway) 29- Éléonore (Goldcorp) 30- Francoeur (Richmont) 31- Joanna (Aurizon) 32- Lac Bachelor (Métanor) 33- Lac Pelletier (Alexis) 34- Lamaque (Century Mining) 35- Rocmec 1 (Russian Kid) (Rocmec) 36- Vezza (N. A. Palladium) 37- Westwood (lamgold)

60°

Hudson

56°

Gold

Kangiqsujuaq

47

58°

Mining projects

50°

42

51

Matagami

38 36

Chibougamau

32

45

40

Havre-Saint-Pierre

Sept-Îles

52

Île d'Anticosti

48

Lebel-sur-Quévillon

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Rouyn-Noranda

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Îles de la Madeleine

28

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54 46

Québec 46°

Trois-Rivières Thetford Mines ON TARIO

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Produced by Ministère des Ressources naturelles et de la Faune Direction de l'information géologique du Québec Note: This document has no legal value. © Gouvernement du Québec, July 2011

November 2011 | 41


plan nord Most of the communities in the region are small and in need of development in everything from paved roads to quality housing to wireless communication, which either does not exist in some communities or has inconsistent reception. “One of the things that Plan Nord will provide is a ‘foot in the door’ to provide a change for the better in social conditions,” says Xstrata’s Welch. “Something drastic needs to change in terms of housing. We put money into the profit sharing agreement and although we don’t have a whole lot of say in how that money gets dispersed, we would like to be a catalyst to help guide successful outcomes a bit more and drive socio-economic development. We need to work with the local communities and governments to do that. Basic education, health and housing – these are big issues. Start there. So we need to get more creative with the Plan Nord funding to help guide that, and that’s going to be a huge challenge for everyone.” Ghislain Picard, Regional Chief of the Assembly of First Nations of Quebec and Labrador, believes the government will need to engage in more meaningful and open consultation with all Aboriginal communities. From his perspective, the government has emphasized consultation with aboriginal nations such as the Cree and the Inuit that have signed major land claim settlements. Picard says smaller nations such as his, the Innu Nation, which consists of nine communities in the Côte-Nord and Saguenay-Lac-Saint-Jean

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regions, do not have as much clout in negotiations. “To me, if the government was more open to discussing and negotiating all aspects affected by Plan Nord, we’d be the first to applaud,” he says.

Common cause One of the other challenges both communities and mining companies in the region face is energy. Under Plan Nord, the government will develop 3,500 MW of clean, renewable energy, most of it as hydroelectricity, but also 300 MW of wind power and 200 MW from other renewable energy sources. In fact, the government plans to invest an estimated $25 billion in energy development. The plan also states that Hydro-Québec will support the development of industrial projects such as in the mining sector. “Hydro-Québec did a survey for us,” says Strateco’s Hébert. “The cost to be connected to the grid from the south would be $150 million. That’s too costly for us. Maybe we’ll be able to do it from the north but not for the next five to 10 years.” “It’s one thing to develop roads,” says Poirier, “but if there is no energy for the industrial users, we cannot develop the North efficiently, instead a multi-services approach should be developed here too.” Gignac says each decision on power projects will depend on economics. “Like all Hydro-Quebec projects, they will be based on the company’s three criteria for fea-

MINING

559-A, boul. Témiscamingue, Rouyn-Noranda (Québec), Canada J9X 7C8 T : 1 888 797-2009 | F : 819 797-4441 | info@mecanicad.ca | www.mecanicad.ca

42 | CIM Magazine | Vol. 6, No. 7


plan nord sibility: they must be profitable, environmentally acceptable and favourably received by local communities,” he explains.

HR: the inevitable struggle Everyone agrees that the biggest challenge for mining companies today and in the years to come as Plan Nord develops will be labour. The government has allocated $65 million over the next five years for training and development of skilled labour in the region and plans to promote close collaboration among all partners, including educational and training institutions, businesses, local communities and the regional councils of labour market partners. Within government administration, Gignac says, the ministry will not add to its workforce but improve the information technology tools its people use. The labour challenges for remote mines, however, will be acute. “We have to have two people for every position because of our two weeks on/two weeks off rotation,” says Hébert. Despite agreements with local colleges and their own training programs for Aboriginal communities, the mines are all facing a severe skilled labour shortage and will likely continue having to fly people in, including from other provinces, or in some cases, from other countries. “It takes a long time to train the right people in the local communities,” says Guillaume Marquis, 48e Nord International president, whose organization works closely in building rela-

tionships with Aboriginal communities and provides support to Abitibi-Témiscamingue enterprises. “It could take another 10 years to really develop the skills and education there.” The challenges aside, the opportunities for all are tremendous, says Marquis. Indeed, there is great excitement among all stakeholders. “The government will recover its investment very rapidly,” says Poirier. “In addition to contributions from industrial users, there are also taxes and royalties. Never forget that people working in these mines will receive good salaries, and the industrial users will create wealth locally and at the provincial level with tax and royalties. The royalty regime in Quebec is very different from 18 months ago. We recognize that we were the lowest across the country in terms of total royalties and taxes, but we have now risen quickly to third from the top of the list. This year, the royalties are 14 per cent and next year they will be 16 per cent. Think about it: this year the government collected $300 million in royalties. It’s more than what it has recovered in the last 10 years. Moreover, the government’s forecasts are $365 million per year for the next four years.”

Regulatory risk At the same time that the government announced Plan Nord, however, it released news that according to Poirier will mean a huge threat to mining exploration in Quebec.

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November 2011 | 43


“In May 2011, the government proposed Bill 14 to replace the Mining Act, and there are some elements in that bill that we cannot live with,” he says. “The main one is Article 91, which gives local municipalities the right to say yes or no to any mining project. Imagine, now we have to live with 1,200 different municipal governments that have the power to say yes or no for mining exploration. You can spend millions and millions of dollars in one area and even if a local government has said yes, what happens when the next mayor is elected? Mining exploration is a very risky business and that level of uncertainty means forget mining in Quebec. If your property is facing a threat like that, you won’t be able to raise money.” AEMQ is in talks with the government to find a solution, but for now, these are the best of times and the worst of times for mining companies in Quebec. CIM

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44 | CIM Magazine | Vol. 6, No. 7

Double the recognition Steve Scott, a 2009-2010 CIM Distinguished Lecturer, was presented with the 2010 Haddon Forrester King Medal this past September in Canberra, Australia. Scott spoke about his working life in a talk entitled “My scientific journey from experimentalist to ocean explorer.” Current and former colleagues, former students, Haddon King’s family, Rio Tinto and representatives from the mining, geoscientific and university communities from around Australia came together in celebration of Scott’s lifetime of achievement and scientific excellence. The medal, sponsored by Rio Tinto, is one of the Australian Academy of Science’s prestigious career awards, which recognizes original and sustained contributions to earth and related sciences of particular relevance to the discovery, evaluation and exploitation of mineral deposits, including the hydrocarbons. Scott was also the recipient of the Moore Award, presented to him at the 40th Underwater Mining Institute in Hilo, Hawaii, also this past September.


plan nord

Repousser les frontières

Courtoisie de Ressources Strateco

Le plan du Québec pour développer le Nord est plein de potentiel – et d’incertitudes

La route d’hiver du projet de Matoush de Ressources Strateco.

E

n mai dernier, Jean Charest, Premier ministre du Québec, a annoncé le lancement d’un grand plan, économique, social et environnemental de 80 milliards de dollars afin de développer le Nord du Québec au cours des 25 prochaines années. Le Plan Nord couvre tout le territoire québécois au nord du 49e parallèle, soit 72 pour cent de la superficie de la province. C’est un territoire riche en ressources naturelles et en potentiel inexploité, incluant des ressources minérales telles que le nickel, le cobalt, le platine, les diamants, le zinc, le minerai de fer et l’uranium. Cependant, en raison du manque d’infrastructures, le développement de ces ressources est dispendieux, voire prohibitif. Le Plan Nord peut changer cela, non seulement pour le secteur minier mais aussi pour les industries forestières, énergétiques et touristiques. Selon Clément Gignac, le ministre responsable du Plan Nord : « Depuis que nous avons déposé le Plan Nord, nous avons reçu de nombreuses demandes de le présenter aux politiciens et aux investisseurs étrangers potentiels, en plus de parler du potentiel minier et des politiques minières québécoises. » « Pour l’exploration minérale et les mineurs du Québec, le Plan Nord constitue une occasion extraordinaire », dit Ghislain Poirier, président de l’Association de l’exploration minière du Québec (AEMQ) qui, pendant deux ans, a représenté le secteur de l’exploration minérale à la Table des partenaires du Plan Nord, laquelle comportait 25 représentants de diverses industries, des peuples Autochtones et d’autres intervenants. « De nombreux prospecteurs sont confiants que si nous réussissons le Plan Nord, toute la province de Québec en bénéficiera puisque le potentiel de ressources est plus que grand, il est immense. La communauté internationale le sait depuis

longtemps; c’est une des meilleures régions à explorer. C’est un rêve pour un prospecteur. » C’est un rêve que quelques compagnies minières ont poursuivi au cours des ans – mais pour ce faire, elles ont dû surmonter des obstacles et relever les défis à force de ténacité et au coût d’immenses investissements.

Développer le réseau routier Depuis 2006, Ressources Strateco surmonte les obstacles avec son projet Matoush dans le secteur des Monts Otish, à 275 km au nord de Chibougamau et à 210 km au nord-est de Mistissini qui serait, aux dires de la compagnie, l’un des projets d’uranium à plus haute teneur au monde. Pour ce faire, la compagnie a déjà déboursé 65 millions de dollars; elle attend maintenant une approbation fédérale pour construire une rampe souterraine. « Nous pouvons accéder au projet par avion et, de janvier à mars, par une route d’hiver qui nous coûte entre 800 000 à un million de dollars par année », dit Guy Hébert, le président-directeur général de la compagnie. Le Plan Nord va tout changer cela. Au coût de 331,6 millions de dollars, le prolongement de la Route 167 entre Témiscamie et les Monts Otish devrait débuter bientôt et profitera à la fois à Strateco et au projet diamantifère Renard de Stornoway. Dans le cadre du Plan Nord, le gouvernement prévoit récupérer 50 pour cent de ses investissements avec la participation des usagers industriels aux coûts de construction et aux frais d’entretien de la route une fois construite. « Avec la route, non seulement épargnerons-nous l’argent de notre route d’hiver mais un accès permanent au transport nous permettra d’épargner en entreposage », dit M. Hébert. November 2011 | 45


Le prolongement de la route 167 donnera l’accès au projet Matoush de Ressources Strateco. En ce moment, une piste d’atterrissage assure l’accès au site durant les mois d’été.

« Je crois que la construction de routes multiservices est la bonne manière de développer le Nord, plutôt que d’y aller projet par projet », de dire M. Poirier.

Participation autochtone Le Plan Nord donne lieu à d’intenses consultations au sein de la Première nation Cri d’Eeyou Istchee, dit le Grand Chef Matthew Coon Come du Grand Conseil des Cris. La Nation Cri, qui englobe neuf villages situés sur le bord de la baie James (Chisasibi, Eastmain, Waskaganish et Wemindji), de la baie d’Hudson (Whapmagoostui) et à l’intérieur des terres (Mistissini, Nemiscau, Oujé-Bougoumou et Waswanipi), a défini ses attentes envers le gouvernement du Québec dans son propre document, The Cree Vision of Plan Nord, au début de 2011. « Il est évident que le Plan Nord sera un processus continu et non uniquement une liste de projets; son succès sera déterminé par la façon de le mettre en oeuvre », dit M. Coon Come, dont la nation a signé une entente avec le gouvernement du Québec en mai dernier; l’entente touchait notamment le besoin d’un nouveau modèle de gouvernance. La plupart des communautés de la région sont petites et ont besoin de tout à partir de routes pavées à des logements de qualité, en passant par les communications sans fils, lesquelles sont absentes ou dont la réception est défaillante. Ghislain Picard, Chef régional de l’Assemblée des Premières nations du Québec et du Labrador, croit que le gouvernement aura besoin de s’impliquer dans des consultations plus ouvertes et concrètes avec tous les comités autochtones. De son point de vue, le gouvernement a mis l’accent sur les consultations auprès des nations autochtones telles que les Cris et les Inuits qui ont signé de grandes ententes territoriales. Selon M. Picard, les plus petites nations, telles que la sienne qui comprend neuf 46 | CIM Magazine | Vol. 6, No. 7

communautés en Côte-Nord et au Saguenay-Lac-SaintJean, pèsent peu dans les négociations. « Si le gouvernement était plus ouvert à discuter et à négocier tous les aspects du Plan Nord, nous serions les premiers à applaudir », dit-il.

Cause commune L’énergie constitue un autre défi des communautés et des compagnies minières. Dans le cadre du Plan Nord, le gouvernement investira 25 milliards de dollars pour développer 3500 MW d’énergie propre et renouvelable, surtout de l’hydroélectricité, mais aussi 300 MW d’énergie solaire et 200 MW d’autres énergies renouvelables. HydroQuébec soutiendra aussi le développement de projets industriels tels que les projets miniers. « Selon une étude d’Hydro-Québec, le coût pour être relié au réseau du sud serait de 150 millions de dollars. C’est trop cher pour nous. Peut-être devrons-nous nous relier à partir du nord, mais pas d’ici cinq à dix années », dit M. Hébert. « C’est une chose que de développer des routes, mais s’il n’y a pas d’énergie pour les utilisateurs industriels, nous ne pourrons pas développer le Nord de manière efficace; il faut une approche multiservices », dit M. Poirier. Selon M. Gignac, chaque décision concernant les projets énergétiques reposera sur une analyse économique. « Comme tous les projets d’Hydro-Québec, ils seront basés sur trois critères : ils doivent être rentables, acceptables pour l’environnement et bien acceptés par les communautés locales. »

Les ressources humaines : le défi incontournable Tous sont d’accord que le plus grand défi, présent et futur, des compagnies minières au cours du développement

Courtoisie de Ressources Strateco

plan nord


Courtoisie de Ressources Strateco

plan nord

Le projet Matoush est situé dans les monts Otish au centre du Québec.

du Plan Nord, sera la main-d’œuvre. Le gouvernement affectera 65 millions de dollars au cours des cinq prochaines années pour la formation et le développement de main-d’œuvre qualifiée dans la région; il encouragera une étroite collaboration entre les institutions d’éducation et de formation, les commerces, les communautés locales et les conseils régionaux locaux de partenaires du marché du travail. Selon M. Gignac, le ministère n’augmentera pas ses effectifs mais améliorera les outils informatiques de ses employés. Les défis en main-d’œuvre pour les régions éloignées seront sérieux. « Nous devons avoir deux personnes pour chaque poste en raison des rotations deux semaines de travail / deux semaines de congé », dit M. Hébert. Malgré les ententes avec les collèges locaux et leurs propres programmes de formation pour les communautés autochtones, les mines connaissent une grande pénurie de main-d’œuvre qualifiée; elles devront continuer à faire venir des employés par avion, d’autres provinces, voire même d’autres pays. « Il faut beaucoup de temps pour former les bonnes personnes dans les communautés locales », dit Guillaume Marquis, président de 48e Nord international, dont l’organisme travaille à établir des relations avec les communautés autochtones et à soutenir les entreprises de l’Abitibi-Témiscamingue. « Cela pourrait prendre encore dix ans pour véritablement y développer des habiletés et de la formation. » Mis à part ces défis, les occasions sont extraordinaires pour tous, de dire M. Marquis. En effet, l’enthousiasme des intervenants est palpable. « Le gouvernement récupérera très rapidement ses investissements », dit M. Poirier. « En plus des contributions des usagers, il y a aussi les taxes et les redevances. N’oubliez jamais que les gens qui travaillent dans ces mines reçoivent de bons salaires; les utilisateurs industriels créeront de la

richesse localement et au niveau provincial au moyen des taxes et des redevances. Le régime des redevances est très différent d’il y a 18 mois. Nous reconnaissons que la province arrivait en dernier au pays en termes du total des redevances et des taxes, mais nous sommes maintenant les troisièmes du sommet. Cette année, les redevances sont de 14 pour cent et l’an prochain elles seront de 16 pour cent. Pensez-y, cette année le gouvernement a récolté 300 millions de dollars en redevances. C’est plus que ce qu’il a récupéré au cours des dix dernières années. De plus, les prévisions gouvernementales se chiffrent à 365 millions de dollars par année pour les quatre prochaines années. »

Les risques de la réglementation Au moment où le gouvernement a annoncé le Plan Nord, il a aussi annoncé ce que M. Poirier qualifie de grande menace pour l’exploration minière au Québec. « En mai, le projet de loi 14 a été proposé pour remplacer la Loi des mines. Il comporte certains éléments que nous trouvons inacceptables », dit-il. « Il s’agit surtout de l’article 91, qui donne aux municipalités locales le droit d’approuver ou non tout projet minier. Imaginez, nous devons maintenant vivre avec 1200 différents gouvernements municipaux qui ont maintenant un pouvoir de veto sur l’exploration minérale. Vous pouvez dépenser des millions de dollars dans un secteur et même si un gouvernement local a dit oui, qu’arrivera-t-il à l’élection du prochain maire? L’exploration minérale est une entreprise risquée et un tel niveau d’incertitude signifie d’oublier les mines au Québec. Si votre propriété court ce genre de risque, oubliez cela, vous ne pourrez pas amasser de capitaux. » AEMQ est actuellement en pourparlers avec le gouvernement pour trouver une solution – mais, pour le moment, c’est le meilleur et le pire temps pour les compagnies minières au Québec. ICM November 2011 | 47


plan nord

Repousser les frontières

Courtoisie de Ressources Strateco

Le plan du Québec pour développer le Nord est plein de potentiel – et d’incertitudes

La route d’hiver du projet de Matoush de Ressources Strateco.

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n mai dernier, Jean Charest, Premier ministre du Québec, a annoncé le lancement d’un grand plan, économique, social et environnemental de 80 milliards de dollars afin de développer le Nord du Québec au cours des 25 prochaines années. Le Plan Nord couvre tout le territoire québécois au nord du 49e parallèle, soit 72 pour cent de la superficie de la province. C’est un territoire riche en ressources naturelles et en potentiel inexploité, incluant des ressources minérales telles que le nickel, le cobalt, le platine, les diamants, le zinc, le minerai de fer et l’uranium. Cependant, en raison du manque d’infrastructures, le développement de ces ressources est dispendieux, voire prohibitif. Le Plan Nord peut changer cela, non seulement pour le secteur minier mais aussi pour les industries forestières, énergétiques et touristiques. Selon Clément Gignac, le ministre responsable du Plan Nord : « Depuis que nous avons déposé le Plan Nord, nous avons reçu de nombreuses demandes de le présenter aux politiciens et aux investisseurs étrangers potentiels, en plus de parler du potentiel minier et des politiques minières québécoises. » « Pour l’exploration minérale et les mineurs du Québec, le Plan Nord constitue une occasion extraordinaire », dit Ghislain Poirier, président de l’Association de l’exploration minière du Québec (AEMQ) qui, pendant deux ans, a représenté le secteur de l’exploration minérale à la Table des partenaires du Plan Nord, laquelle comportait 25 représentants de diverses industries, des peuples Autochtones et d’autres intervenants. « De nombreux prospecteurs sont confiants que si nous réussissons le Plan Nord, toute la province de Québec en bénéficiera puisque le potentiel de ressources est plus que grand, il est immense. La communauté internationale le sait depuis

longtemps; c’est une des meilleures régions à explorer. C’est un rêve pour un prospecteur. » C’est un rêve que quelques compagnies minières ont poursuivi au cours des ans – mais pour ce faire, elles ont dû surmonter des obstacles et relever les défis à force de ténacité et au coût d’immenses investissements.

Développer le réseau routier Depuis 2006, Ressources Strateco surmonte les obstacles avec son projet Matoush dans le secteur des Monts Otish, à 275 km au nord de Chibougamau et à 210 km au nord-est de Mistissini qui serait, aux dires de la compagnie, l’un des projets d’uranium à plus haute teneur au monde. Pour ce faire, la compagnie a déjà déboursé 65 millions de dollars; elle attend maintenant une approbation fédérale pour construire une rampe souterraine. « Nous pouvons accéder au projet par avion et, de janvier à mars, par une route d’hiver qui nous coûte entre 800 000 à un million de dollars par année », dit Guy Hébert, le président-directeur général de la compagnie. Le Plan Nord va tout changer cela. Au coût de 331,6 millions de dollars, le prolongement de la Route 167 entre Témiscamie et les Monts Otish devrait débuter bientôt et profitera à la fois à Strateco et au projet diamantifère Renard de Stornoway. Dans le cadre du Plan Nord, le gouvernement prévoit récupérer 50 pour cent de ses investissements avec la participation des usagers industriels aux coûts de construction et aux frais d’entretien de la route une fois construite. « Avec la route, non seulement épargnerons-nous l’argent de notre route d’hiver mais un accès permanent au transport nous permettra d’épargner en entreposage », dit M. Hébert. November 2011 | 45


Le prolongement de la route 167 donnera l’accès au projet Matoush de Ressources Strateco. En ce moment, une piste d’atterrissage assure l’accès au site durant les mois d’été.

« Je crois que la construction de routes multiservices est la bonne manière de développer le Nord, plutôt que d’y aller projet par projet », de dire M. Poirier.

Participation autochtone Le Plan Nord donne lieu à d’intenses consultations au sein de la Première nation Cri d’Eeyou Istchee, dit le Grand Chef Matthew Coon Come du Grand Conseil des Cris. La Nation Cri, qui englobe neuf villages situés sur le bord de la baie James (Chisasibi, Eastmain, Waskaganish et Wemindji), de la baie d’Hudson (Whapmagoostui) et à l’intérieur des terres (Mistissini, Nemiscau, Oujé-Bougoumou et Waswanipi), a défini ses attentes envers le gouvernement du Québec dans son propre document, The Cree Vision of Plan Nord, au début de 2011. « Il est évident que le Plan Nord sera un processus continu et non uniquement une liste de projets; son succès sera déterminé par la façon de le mettre en oeuvre », dit M. Coon Come, dont la nation a signé une entente avec le gouvernement du Québec en mai dernier; l’entente touchait notamment le besoin d’un nouveau modèle de gouvernance. La plupart des communautés de la région sont petites et ont besoin de tout à partir de routes pavées à des logements de qualité, en passant par les communications sans fils, lesquelles sont absentes ou dont la réception est défaillante. Ghislain Picard, Chef régional de l’Assemblée des Premières nations du Québec et du Labrador, croit que le gouvernement aura besoin de s’impliquer dans des consultations plus ouvertes et concrètes avec tous les comités autochtones. De son point de vue, le gouvernement a mis l’accent sur les consultations auprès des nations autochtones telles que les Cris et les Inuits qui ont signé de grandes ententes territoriales. Selon M. Picard, les plus petites nations, telles que la sienne qui comprend neuf 46 | CIM Magazine | Vol. 6, No. 7

communautés en Côte-Nord et au Saguenay-Lac-SaintJean, pèsent peu dans les négociations. « Si le gouvernement était plus ouvert à discuter et à négocier tous les aspects du Plan Nord, nous serions les premiers à applaudir », dit-il.

Cause commune L’énergie constitue un autre défi des communautés et des compagnies minières. Dans le cadre du Plan Nord, le gouvernement investira 25 milliards de dollars pour développer 3500 MW d’énergie propre et renouvelable, surtout de l’hydroélectricité, mais aussi 300 MW d’énergie solaire et 200 MW d’autres énergies renouvelables. HydroQuébec soutiendra aussi le développement de projets industriels tels que les projets miniers. « Selon une étude d’Hydro-Québec, le coût pour être relié au réseau du sud serait de 150 millions de dollars. C’est trop cher pour nous. Peut-être devrons-nous nous relier à partir du nord, mais pas d’ici cinq à dix années », dit M. Hébert. « C’est une chose que de développer des routes, mais s’il n’y a pas d’énergie pour les utilisateurs industriels, nous ne pourrons pas développer le Nord de manière efficace; il faut une approche multiservices », dit M. Poirier. Selon M. Gignac, chaque décision concernant les projets énergétiques reposera sur une analyse économique. « Comme tous les projets d’Hydro-Québec, ils seront basés sur trois critères : ils doivent être rentables, acceptables pour l’environnement et bien acceptés par les communautés locales. »

Les ressources humaines : le défi incontournable Tous sont d’accord que le plus grand défi, présent et futur, des compagnies minières au cours du développement

Courtoisie de Ressources Strateco

plan nord


Courtoisie de Ressources Strateco

plan nord

Le projet Matoush est situé dans les monts Otish au centre du Québec.

du Plan Nord, sera la main-d’œuvre. Le gouvernement affectera 65 millions de dollars au cours des cinq prochaines années pour la formation et le développement de main-d’œuvre qualifiée dans la région; il encouragera une étroite collaboration entre les institutions d’éducation et de formation, les commerces, les communautés locales et les conseils régionaux locaux de partenaires du marché du travail. Selon M. Gignac, le ministère n’augmentera pas ses effectifs mais améliorera les outils informatiques de ses employés. Les défis en main-d’œuvre pour les régions éloignées seront sérieux. « Nous devons avoir deux personnes pour chaque poste en raison des rotations deux semaines de travail / deux semaines de congé », dit M. Hébert. Malgré les ententes avec les collèges locaux et leurs propres programmes de formation pour les communautés autochtones, les mines connaissent une grande pénurie de main-d’œuvre qualifiée; elles devront continuer à faire venir des employés par avion, d’autres provinces, voire même d’autres pays. « Il faut beaucoup de temps pour former les bonnes personnes dans les communautés locales », dit Guillaume Marquis, président de 48e Nord international, dont l’organisme travaille à établir des relations avec les communautés autochtones et à soutenir les entreprises de l’Abitibi-Témiscamingue. « Cela pourrait prendre encore dix ans pour véritablement y développer des habiletés et de la formation. » Mis à part ces défis, les occasions sont extraordinaires pour tous, de dire M. Marquis. En effet, l’enthousiasme des intervenants est palpable. « Le gouvernement récupérera très rapidement ses investissements », dit M. Poirier. « En plus des contributions des usagers, il y a aussi les taxes et les redevances. N’oubliez jamais que les gens qui travaillent dans ces mines reçoivent de bons salaires; les utilisateurs industriels créeront de la

richesse localement et au niveau provincial au moyen des taxes et des redevances. Le régime des redevances est très différent d’il y a 18 mois. Nous reconnaissons que la province arrivait en dernier au pays en termes du total des redevances et des taxes, mais nous sommes maintenant les troisièmes du sommet. Cette année, les redevances sont de 14 pour cent et l’an prochain elles seront de 16 pour cent. Pensez-y, cette année le gouvernement a récolté 300 millions de dollars en redevances. C’est plus que ce qu’il a récupéré au cours des dix dernières années. De plus, les prévisions gouvernementales se chiffrent à 365 millions de dollars par année pour les quatre prochaines années. »

Les risques de la réglementation Au moment où le gouvernement a annoncé le Plan Nord, il a aussi annoncé ce que M. Poirier qualifie de grande menace pour l’exploration minière au Québec. « En mai, le projet de loi 14 a été proposé pour remplacer la Loi des mines. Il comporte certains éléments que nous trouvons inacceptables », dit-il. « Il s’agit surtout de l’article 91, qui donne aux municipalités locales le droit d’approuver ou non tout projet minier. Imaginez, nous devons maintenant vivre avec 1200 différents gouvernements municipaux qui ont maintenant un pouvoir de veto sur l’exploration minérale. Vous pouvez dépenser des millions de dollars dans un secteur et même si un gouvernement local a dit oui, qu’arrivera-t-il à l’élection du prochain maire? L’exploration minérale est une entreprise risquée et un tel niveau d’incertitude signifie d’oublier les mines au Québec. Si votre propriété court ce genre de risque, oubliez cela, vous ne pourrez pas amasser de capitaux. » AEMQ est actuellement en pourparlers avec le gouvernement pour trouver une solution – mais, pour le moment, c’est le meilleur et le pire temps pour les compagnies minières au Québec. ICM November 2011 | 47


featured project

Courtesy of NML

Exploration continues along a 210-kilometre-long chain of deposits that straddle the border between Quebec and Labrador.

Steely determination by | Eavan Moore

A high-grade iron project in northeastern Quebec and Labrador will provide the starting point for an ambitious partnership between New Millennium Iron Corp. and Indian giant Tata Steel.

I

If you were a steel producer, now would be a good time to control a high-quality iron ore deposit. With continued strong demand for steel and iron ore, steelmakers are turning back to mine ownership to secure supply in a competitive climate. One of the top 10 producers, Indian conglomerate Tata Steel, has joined a general migration to Canada’s Labrador Trough, with its eyes trained on the extensive iron deposits held by New Millennium Iron Corp. (NML; formerly New Millennium Capital Corp.). For Tata, partnering with NML will create the first captive iron source for its European operations, which use 20 to 25 million tonnes of iron ore each year. For NML, it means capital to begin developing a 210-kilometre-long chain of deposits, dubbed the Millennium Iron Range, which straddles the border between northeast Quebec and Labrador. As a joint venture called Tata Steel Minerals Canada Ltd. (TSMC), the partners are starting small with a high-grade open pit mine known simply as the DSO project, due to go into production next year. Situated some 30 kilometres from Schefferville, Quebec, the project consists of 25 small open pit deposits con48 | CIM Magazine | Vol. 6, No. 7

taining hematite with a 58 to 60 per cent iron content. Like many of the area’s deposits, they sit on land that was mined by the Iron Ore Company of Canada (IOC) from the 1950s to 1980s. An 80 per cent partner in the joint venture, Tata Steel will arrange financing for the first $300 million plus 80 per cent of the remaining cost, which the feasibility study estimates at $35 million. In return, it will offtake 100 per cent of the yearly 4.2-million-tonne output at market price for the life of the mine. That could be at least 15 years, according to Bish Chanda, NML’s senior vice-president of marketing and strategy. Including historical and current NI 43-101-compliant resources of about 80 million tonnes, he estimates the total resource at 120 million tonnes.

DSO: Easy come, easy go DSO stands for “direct shipping ore,” which usually means that the ore is high grade enough to be shipped without processing. But at this project, some upgrading will be required first. “The term DSO, in our case, is a historical term,” explains Chanda. “IOC shipped 58 to 60 per cent grade to the steelmakers. In today’s market, European steelmakers prefer a higher grade.”


featured project On the other hand, it comes packaged with very little of the contaminants phosphorus and alumina. “Many other ores, for example, from Australia or India, have much higher alumina,” says Dean Journeaux, president and CEO of NML. “And so our ore being lower in alumina is a big advantage.” NML anticipates a conventional open pit operation, drilling and blasting to remove the minor overburden, using 180-tonne trucks to haul the ore to a small processing plant. At full capacity, the plant will take in five million natural tonnes per year and produce 4.2 million dry tonnes with a minimum of 64.5 per cent iron. Jigs, spirals and hydroclassifiers will use gravity to upgrade coarse fractions of six millimetres or less, while materials below 0.1 mm will be separated by wet high-intensity magnetic separators (WHIMS). The output is expected to be between 70 and 80 per cent regular sinter fines and 20 to 30 per cent super fines. The tailings produced by this process are fairly benign, says Journeaux. They consist of silica, alumina and hematite remnants, which can be deposited directly into mined-out pits left by IOC. “These pits are currently partly filled with water,” he explains, “so we don’t have to build any new tailings dykes or dams. It’s an ideal tailings disposal strategy.” Overall, the project’s environmental impact appears comparatively mild. “There are no fisheries involved in this case,” observes Chanda. “There’s no flotation. The water is the only ingredient that we use.” So far, TSMC has received approval from Newfoundland and Labrador and begun the approval process in Quebec. The project does not require a federal environmental review.

As a brownfield site, the DSO project has considerable infrastructure in place. Although TSMC swallows high costs for transporting fuel, food, spare parts and fly-in personnel, the Schefferville airport has a 1,500-metre paved runway and the ore will be shipped largely along existing railways to the port of Sept-Îles, Quebec. TSMC’s rail cars will pass through several different hands between the project site and Sept-Îles. “An independent short distance railroad hauls the ore to the Tshiuetin Railway, which is owned by three First Nations,” says Journeaux. “From there, it goes back to the Quebec North Shore and Labrador Railway owned by IOC, and then transfers to the CFA line owned by Wabush Mines. So the fact that we have really four railways complicates the operations. But it’s not a challenge that we can’t meet.” Situated among several First Nations and astride two provinces, TSMC has had a bundle of agreements to negotiate. In addition to railway use contracts and two environmental reviews, it entered negotiations with four affected First Nations. The company signed Impact Benefit Agreements (IBAs) with the close-by Naskapi Nation of Kawawachikamach and Nation Innu Matimekush Lac John. An agreement has been struck with the more distant Innu Takuaikan Uashat mak Mani Utenam in Sept-Îles, while negotiations are in progress with the Innu Nation in Labrador.

Courtesy of NML

Remote but connected

The New Millennium Iron Corp. property includes deposits previously mined by the Iron Ore Company of Canada as well as other areas that have not yet been explored.

Local workforce TSMC has been fortunate with its neighbours; 1,800 First Nations people live only 25 to 30 kilometres away, in the towns of Schefferville and Kawawachikamach, and the company expects to hire at least a quarter of its initial 200 employees locally. “A number of the people living there already work for the band councils and Tshiuetin Railway,” points out Journeaux. “These band councils all have construction equipment. It’s not as big as the mining equipment will eventually be, but in my experience, if you take a person who’s used to driving a highway truck and you put them on a mining truck that is five times bigger, the transition isn’t that difficult, with proper training.” The training effort received a boost from the Labrador Iron Mines’ nearby James project, which began producing in June [see CIM Magazine March/April 2011 issue]. “They’re actually mining right now, therefore, they’re a little bit ahead of us,” says Journeaux. “So they’re making considerable effort to train the people.” November 2011 | 49


featured project

Left to right: New Millennium and Tata Steel employees; In situ ore; Feeding ore into a hopper at the DSO project

On balance, he says, it is good to have another mine operating nearby. “People are always concerned,” adds Journeaux. “What happens if we need 200 employees and they need roughly 200? Are we going to be competing for the same people? The answer is yes, we will be, but as we increase our training, the supply will increase fairly quickly.” The company’s eventual goal is an Aboriginal workforce of 70 per cent, although Journeaux admits that will take some time.

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The remaining personnel will be flown in; to house them, the company is building a 192-bed camp that will also accommodate visitors and employees of the catering, explosives and security companies.

Huddling under the tent Northern winters shaped the project’s site plan. The daily average temperature in Schefferville in January is minus 24.1°C. As early as October, ore with a natural moisture content of eight to 11 per cent freezes to ore cars. Although some northern mines, including the James operation, shut down for the winter, TSMC decided to keep the DSO project open for business yearround. Journeaux lists a few reasons for the choice. “Lying dormant, you can imagine the problems of what you do with your workforce in the winter,” he says. “You make the plant twice as big as it should be, and then your customer who’s looking for this material on a year-round basis also has a problem. Operating part-time is not a good solution, really.” Instead, the ore will be thawed and dried out to less than 2.5 per cent moisture using waste heat from the site’s diesel generator. Only 35 per cent of diesel generator energy actually produces electricity; in winter, much of that excess energy will be recaptured and used for drying the ore, heating process water and heating buildings. To get the most use out of its heating system, New Millennium has decided to house most of its project facilities under one roof. The concept is similar to a design used at nearby Mont-Wright, says Journeaux. “The only difference is the style of the building,” he explains. The design chosen for the DSO project is a vinyl-coated polyester dome, 106 metres wide and 170 metres long, which will hold the operation’s offices, processing facilities, workshops, labs and generator. A few structures will have to remain separate: the crusher and loadout silos will be out of doors, and noise considerations pushed employee housing into a separate camp.


Courtesy of NML

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Initially, it had seemed possible to use local hydropower in the summer months but that proved too difficult. “A small amount of power could have been available during the summer only from the Menihek hydropower station,” says Chanda. “However, this would have necessitated beefing up of the distribution system. We could not justify the cost to revamp the line since no hydropower will be available during the winter.” Construction has commenced at the site, with AECOM hired as the EPCM contractor. “We expect to start actual production sometime late in 2012,” says Journeaux, “and then we’ll ramp up to the full capacity. Normally that would take 12 months.”

Eyes on the prize Meanwhile, NML and Tata Steel are looking ahead to the next phase of their partnership. With only 10 per cent of the Millennium Iron Range explored, NML has already found two deposits, KéMag and LabMag, that together contain an estimated nine billion tonnes of taconite. Proven and Probable reserves come to more than 5.5 billion tonnes at grades of around 30 per cent iron. Journeaux puts these numbers in perspective. “If we were to operate at 20 million tonnes a year, it would have about a hundred-year life,” he says. “It’s a huge, huge resource.” Over 18 to 20 months, plans for the taconite project will take shape. Tata Steel is now funding 64 per cent of the estimated $50 million feasibility study for KéMag and LabMag. “This thing is well underway, and we’re working hand-in-hand in performing that study,” Journeaux says. If the feasibility results of the taconite project are positive, Tata Steel and New Millennium will proceed with production as a joint venture and arrange financing up to $4.85 billion. “If that project is approved and goes for construction, that will be a gigantic move for a small company like us,” says Chanda. CIM

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November 2011 | 51


featured project

Courtesy of NML

Exploration continues along a 210-kilometre-long chain of deposits that straddle the border between Quebec and Labrador.

Steely determination by | Eavan Moore

A high-grade iron project in northeastern Quebec and Labrador will provide the starting point for an ambitious partnership between New Millennium Iron Corp. and Indian giant Tata Steel.

I

If you were a steel producer, now would be a good time to control a high-quality iron ore deposit. With continued strong demand for steel and iron ore, steelmakers are turning back to mine ownership to secure supply in a competitive climate. One of the top 10 producers, Indian conglomerate Tata Steel, has joined a general migration to Canada’s Labrador Trough, with its eyes trained on the extensive iron deposits held by New Millennium Iron Corp. (NML; formerly New Millennium Capital Corp.). For Tata, partnering with NML will create the first captive iron source for its European operations, which use 20 to 25 million tonnes of iron ore each year. For NML, it means capital to begin developing a 210-kilometre-long chain of deposits, dubbed the Millennium Iron Range, which straddles the border between northeast Quebec and Labrador. As a joint venture called Tata Steel Minerals Canada Ltd. (TSMC), the partners are starting small with a high-grade open pit mine known simply as the DSO project, due to go into production next year. Situated some 30 kilometres from Schefferville, Quebec, the project consists of 25 small open pit deposits con48 | CIM Magazine | Vol. 6, No. 7

taining hematite with a 58 to 60 per cent iron content. Like many of the area’s deposits, they sit on land that was mined by the Iron Ore Company of Canada (IOC) from the 1950s to 1980s. An 80 per cent partner in the joint venture, Tata Steel will arrange financing for the first $300 million plus 80 per cent of the remaining cost, which the feasibility study estimates at $35 million. In return, it will offtake 100 per cent of the yearly 4.2-million-tonne output at market price for the life of the mine. That could be at least 15 years, according to Bish Chanda, NML’s senior vice-president of marketing and strategy. Including historical and current NI 43-101-compliant resources of about 80 million tonnes, he estimates the total resource at 120 million tonnes.

DSO: Easy come, easy go DSO stands for “direct shipping ore,” which usually means that the ore is high grade enough to be shipped without processing. But at this project, some upgrading will be required first. “The term DSO, in our case, is a historical term,” explains Chanda. “IOC shipped 58 to 60 per cent grade to the steelmakers. In today’s market, European steelmakers prefer a higher grade.”


featured project On the other hand, it comes packaged with very little of the contaminants phosphorus and alumina. “Many other ores, for example, from Australia or India, have much higher alumina,” says Dean Journeaux, president and CEO of NML. “And so our ore being lower in alumina is a big advantage.” NML anticipates a conventional open pit operation, drilling and blasting to remove the minor overburden, using 180-tonne trucks to haul the ore to a small processing plant. At full capacity, the plant will take in five million natural tonnes per year and produce 4.2 million dry tonnes with a minimum of 64.5 per cent iron. Jigs, spirals and hydroclassifiers will use gravity to upgrade coarse fractions of six millimetres or less, while materials below 0.1 mm will be separated by wet high-intensity magnetic separators (WHIMS). The output is expected to be between 70 and 80 per cent regular sinter fines and 20 to 30 per cent super fines. The tailings produced by this process are fairly benign, says Journeaux. They consist of silica, alumina and hematite remnants, which can be deposited directly into mined-out pits left by IOC. “These pits are currently partly filled with water,” he explains, “so we don’t have to build any new tailings dykes or dams. It’s an ideal tailings disposal strategy.” Overall, the project’s environmental impact appears comparatively mild. “There are no fisheries involved in this case,” observes Chanda. “There’s no flotation. The water is the only ingredient that we use.” So far, TSMC has received approval from Newfoundland and Labrador and begun the approval process in Quebec. The project does not require a federal environmental review.

As a brownfield site, the DSO project has considerable infrastructure in place. Although TSMC swallows high costs for transporting fuel, food, spare parts and fly-in personnel, the Schefferville airport has a 1,500-metre paved runway and the ore will be shipped largely along existing railways to the port of Sept-Îles, Quebec. TSMC’s rail cars will pass through several different hands between the project site and Sept-Îles. “An independent short distance railroad hauls the ore to the Tshiuetin Railway, which is owned by three First Nations,” says Journeaux. “From there, it goes back to the Quebec North Shore and Labrador Railway owned by IOC, and then transfers to the CFA line owned by Wabush Mines. So the fact that we have really four railways complicates the operations. But it’s not a challenge that we can’t meet.” Situated among several First Nations and astride two provinces, TSMC has had a bundle of agreements to negotiate. In addition to railway use contracts and two environmental reviews, it entered negotiations with four affected First Nations. The company signed Impact Benefit Agreements (IBAs) with the close-by Naskapi Nation of Kawawachikamach and Nation Innu Matimekush Lac John. An agreement has been struck with the more distant Innu Takuaikan Uashat mak Mani Utenam in Sept-Îles, while negotiations are in progress with the Innu Nation in Labrador.

Courtesy of NML

Remote but connected

The New Millennium Iron Corp. property includes deposits previously mined by the Iron Ore Company of Canada as well as other areas that have not yet been explored.

Local workforce TSMC has been fortunate with its neighbours; 1,800 First Nations people live only 25 to 30 kilometres away, in the towns of Schefferville and Kawawachikamach, and the company expects to hire at least a quarter of its initial 200 employees locally. “A number of the people living there already work for the band councils and Tshiuetin Railway,” points out Journeaux. “These band councils all have construction equipment. It’s not as big as the mining equipment will eventually be, but in my experience, if you take a person who’s used to driving a highway truck and you put them on a mining truck that is five times bigger, the transition isn’t that difficult, with proper training.” The training effort received a boost from the Labrador Iron Mines’ nearby James project, which began producing in June [see CIM Magazine March/April 2011 issue]. “They’re actually mining right now, therefore, they’re a little bit ahead of us,” says Journeaux. “So they’re making considerable effort to train the people.” November 2011 | 49


featured project

Left to right: New Millennium and Tata Steel employees; In situ ore; Feeding ore into a hopper at the DSO project

On balance, he says, it is good to have another mine operating nearby. “People are always concerned,” adds Journeaux. “What happens if we need 200 employees and they need roughly 200? Are we going to be competing for the same people? The answer is yes, we will be, but as we increase our training, the supply will increase fairly quickly.” The company’s eventual goal is an Aboriginal workforce of 70 per cent, although Journeaux admits that will take some time.

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Factory Insulated Piping Systems

!

Thermocable® Heat-Trace Cable

!

Portable Foam Kits

!

Engineering Assistance

!

District Heating & Cooling Systems

!

LOGSTOR Pre-Insulated PEX-Flex (in coils)

!

ISO 9001:2008 Registered Company

Calmar, Alberta (780) 985-3636

www.urecon.com

50 | CIM Magazine | Vol. 6, No. 7

St-Lazare, Quebec (450) 455-0961

The remaining personnel will be flown in; to house them, the company is building a 192-bed camp that will also accommodate visitors and employees of the catering, explosives and security companies.

Huddling under the tent Northern winters shaped the project’s site plan. The daily average temperature in Schefferville in January is minus 24.1°C. As early as October, ore with a natural moisture content of eight to 11 per cent freezes to ore cars. Although some northern mines, including the James operation, shut down for the winter, TSMC decided to keep the DSO project open for business yearround. Journeaux lists a few reasons for the choice. “Lying dormant, you can imagine the problems of what you do with your workforce in the winter,” he says. “You make the plant twice as big as it should be, and then your customer who’s looking for this material on a year-round basis also has a problem. Operating part-time is not a good solution, really.” Instead, the ore will be thawed and dried out to less than 2.5 per cent moisture using waste heat from the site’s diesel generator. Only 35 per cent of diesel generator energy actually produces electricity; in winter, much of that excess energy will be recaptured and used for drying the ore, heating process water and heating buildings. To get the most use out of its heating system, New Millennium has decided to house most of its project facilities under one roof. The concept is similar to a design used at nearby Mont-Wright, says Journeaux. “The only difference is the style of the building,” he explains. The design chosen for the DSO project is a vinyl-coated polyester dome, 106 metres wide and 170 metres long, which will hold the operation’s offices, processing facilities, workshops, labs and generator. A few structures will have to remain separate: the crusher and loadout silos will be out of doors, and noise considerations pushed employee housing into a separate camp.


Courtesy of NML

World Leader in Tire Protection and Traction Chains

Initially, it had seemed possible to use local hydropower in the summer months but that proved too difficult. “A small amount of power could have been available during the summer only from the Menihek hydropower station,” says Chanda. “However, this would have necessitated beefing up of the distribution system. We could not justify the cost to revamp the line since no hydropower will be available during the winter.” Construction has commenced at the site, with AECOM hired as the EPCM contractor. “We expect to start actual production sometime late in 2012,” says Journeaux, “and then we’ll ramp up to the full capacity. Normally that would take 12 months.”

Eyes on the prize Meanwhile, NML and Tata Steel are looking ahead to the next phase of their partnership. With only 10 per cent of the Millennium Iron Range explored, NML has already found two deposits, KéMag and LabMag, that together contain an estimated nine billion tonnes of taconite. Proven and Probable reserves come to more than 5.5 billion tonnes at grades of around 30 per cent iron. Journeaux puts these numbers in perspective. “If we were to operate at 20 million tonnes a year, it would have about a hundred-year life,” he says. “It’s a huge, huge resource.” Over 18 to 20 months, plans for the taconite project will take shape. Tata Steel is now funding 64 per cent of the estimated $50 million feasibility study for KéMag and LabMag. “This thing is well underway, and we’re working hand-in-hand in performing that study,” Journeaux says. If the feasibility results of the taconite project are positive, Tata Steel and New Millennium will proceed with production as a joint venture and arrange financing up to $4.85 billion. “If that project is approved and goes for construction, that will be a gigantic move for a small company like us,” says Chanda. CIM

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November 2011 | 51


Une volonté de fer Le projet de minerai expédié sans traitement préalable de Tata Steel Minerals Canada Ltd. a déjà été exploité par la Compagnie minière IOC.

E

En ce moment, les producteurs d’acier qui se trouvent également à exploiter un gisement de minerai de fer de qualité supérieure sont avantagés. La forte demande d’acier et de minerai de fer demeurant au beau fixe, les aciéristes renouent avec la propriété minière afin de s’assurer d’un approvisionnement adéquat dans un climat concurrentiel. Un des dix principaux producteurs, le conglomérat indien Tata Steel, s’est joint à une migration générale vers la fosse du Labrador du Canada, attiré par les vastes gisements de fer détenus par New Millennium Iron Corp. (NML, anciennement New Millennium Capital Corp.). Pour Tata, l’association avec NML créera la première source de fer intégrée pour ses exploitations européennes, qui consomment de 20 à 25 millions de tonnes de minerai de fer chaque année. Pour NML, cela se traduit par du capital lui permettant d’entreprendre la mise en valeur d’une chaîne de gisements longue de 210 kilomètres, baptisée Chaîne ferrifère Millennium, qui chevauche la frontière entre le Nord-est du Québec et le Labrador. Les partenaires de la coentreprise, appelée Tata Steel Minerals Canada Ltd. (TSMC), démarrent modestement avec une mine à ciel ouvert à teneur élevée simplement connue sous le nom de projet DSO, dont la production devrait démarrer l’an prochain. Situé à quelque 30 kilomètres de Schefferville, au Québec, le projet regroupe 25 petits gisements à ciel ouvert 52 | CIM Magazine | Vol. 6, No. 7

renfermant de l’hématite contenant de 58 à 60 pour cent de fer. Comme bon nombre des gisements de la région, ceux-ci se trouvent sur un terrain qui a été exploité par la Compagnie minière IOC entre les années 1950 et les années 1980. En tant que partenaire à 80 pour cent de la coentreprise, Tata Steel organisera le financement de la première tranche de 300 M$ plus 80 pour cent des coûts résiduels qui, selon l’étude de faisabilité, devraient se chiffrer à 35 M$. En retour, la société achètera 100 pour cent de la production annuelle de 4,2 millions de tonnes au cours du marché pour la durée de vie de la mine. Celle-ci pourrait être d’au moins 15 ans, selon Bish Chanda, vice-président principal, marketing et stratégie, NML. En prenant en compte des ressources historiques et actuelles conformes à la NC 43-101 qui s’élèvent à quelque 80 millions de tonnes, il estime la ressource totale à 120 millions de tonnes.

Le projet DSO : s’adapter au marché Certaines mesures de valorisation du minerai seront requises dans le cadre de ce projet. M. Chanda explique : « Le terme DSO, dans notre cas, est du passé. IOC expédiait du minerai à teneurs de 58 à 60 pour cent aux aciéristes. Aujourd’hui, les aciéristes européens recherchent des teneurs plus élevées. » En revanche, le minerai expédié contient très peu de contaminants (phosphore, alumine).

Courtoisie de NML

projet en vedette


projet en vedette NML prévoit aménager une exploitation à ciel ouvert classique, effectuer des travaux de forage et de dynamitage pour éliminer la mince couverture et utiliser des camions de 180 tonnes pour transporter le minerai vers une petite usine de traitement. Lorsqu’elle fonctionnera à pleine capacité, l’usine traitera 5 millions de tonnes de minerai brut et produira 4,2 millions de tonnes sèches d’une teneur minimale de 64,5 pour cent en fer. Bacs à pistonnage, spirales de lavage et hydroclassificateurs utiliseront la gravité pour valoriser les fractions grossières de 6 mm et moins, tandis que les matériaux inférieurs à 0,1 mm seront séparés à l’aide de séparatrices à haute intensité en milieu humide. Le produit devrait être composé à environ 70 à 80 pour cent de minerai fin aggloméré et 20 à 30 pour cent de minerai extra fin. Les résidus liés à ce processus sont relativement peu importants, affirme M. Journeaux. Il s’agit de restes de silice, d’alumine et d’hématite, qui peuvent être déposés directement dans les fosses exploitées antérieurement par IOC. « Ces fosses sont partiellement remplies d’eau pour le moment », explique-t-il. « Nous n’aurons donc pas à construire de nouvelles digues ou de nouveaux barrages pour retenir les résidus. » Dans l’ensemble, l’impact environnemental du projet semble relativement mineur. « Dans ce cas-ci, il n’y a pas de pêches en cause », observe M. Chanda. « Nous n’avons pas recours à la flottation. L’eau est le seul agent que nous utilisons. » À ce jour, TSMC a obtenu l’approbation de la province de TerreNeuve-et-Labrador et a entrepris le processus d’approbation au Québec. Le projet ne requiert pas d’examen environnemental à l’échelon fédéral.

Îles. « Un chemin de fer local indépendant transporte le minerai vers la ligne de chemin de fer Tshiuetin, qui appartient à trois Premières Nations », explique M. Journeaux. « Puis, il est pris en charge par le Chemin de fer QNS&L appartenant à IOC. Ensuite, il est transféré à la ligne CFA appartenant à Wabush Mines. Nul besoin de préciser que le fait de faire affaire avec quatre compagnies de chemin de fer complique quelque peu les opérations. Toutefois, le défi n’est pas insurmontable. » Parce que le projet se trouve sur le territoire de plusieurs Premières Nations et à cheval sur deux provinces, TSMC a dû négocier une foule d’ententes. Outre des contrats portant sur l’utilisation des chemins de fer et deux examens environnementaux, la société a dû mener des négociations avec quatre Premières Nations touchées. La société a signé des ententes sur les répercussions et les avantages avec la Nation Naskapi de Kawawachikamach et la Nation Innu Matimekush-Lac John, qui se trouvent tout près. Une entente a été conclue avec la bande plus éloignée Innu Takuaikan Uashat mak Mani Utenam, à Sept-Îles, tandis que des négociations sont en cours avec la nation innue au Labrador.

Éloigné mais non isolé En tant que site préexistant, le projet DSO a des infrastructures considérables en place. Bien que TSMC assume des coûts élevés pour le transport de carburant, de denrées alimentaires, de pièces de rechange, ainsi que pour le transport aérien de personnel, l’aéroport de Schefferville a une piste en dur de 1500 mètres, et le minerai sera expédié par train sur des voies en grande partie existantes jusqu’au port de Sept-Îles, au Québec. Les wagons de TSMC seront pris en charge par diverses compagnies ferroviaires entre le site du projet et SeptNovember 2011 | 53


projet en vedette Une main-d’œuvre locale TSMC est privilégiée en ce qui concerne ses voisins; 1 800 autochtones vivent à seulement 25 à 30 kilomètres de distance à Schefferville et à Kawawachikamach, et la société a l’intention de recruter au moins le quart de ses premiers 200 employés sur place. « Quelques-unes de ces personnes travaillent déjà pour les conseils de bande et le chemin de fer Tshiuetin », fait remarquer M. Journeaux. « Ces conseils de bande possèdent tous de l’équipement de construction. Naturellement, il n’est pas aussi imposant que l’équipement minier que nous utiliserons, mais d’après mon expérience, une personne habituée à conduire un camion routier n’aura pas trop de difficultés, après avoir reçu une formation adéquate, à s’adapter à un camion de chantier cinq fois plus gros. » La société vise à constituer une main-d’œuvre formée de 70 pour cent d’autochtones, mais M. Journeaux reconnaît que cela pourrait prendre un certain temps. Le reste du personnel arrivera par avion. Pour loger ces personnes, la société est en train de construire un camp de 192 lits qui pourra également accueillir des visiteurs et des employés d’entreprises de restauration, de dynamitage et de sécurité.

Au chaud sous la tente Les hivers nordiques ont façonné le plan du site du projet. À Schefferville en janvier, la température moyenne est de -24,1 °C. Dès le mois d’octobre, le minerai, qui contient un taux d’humidité naturelle de 8 à 11 pour cent, gèle contre les parois des wagons. Bien que certaines mines nordiques, dont l’exploitation James, ferment durant l’hiver, TSMC a décidé de poursuivre les activités au projet DSO à longueur d’année. M. Journeaux cite quelques raisons motivant cette décision : « Vous vous imaginez? Il faut savoir quoi faire avec une main-d’œuvre inactive durant l’hiver. Il faudrait que les installations soient deux fois plus grandes que nécessaire. Et c’est aussi un problème pour votre client, qui veut être approvisionné à l’année. L’exploitation à temps partiel n’est vraiment pas une bonne solution. » Le minerai sera plutôt dégelé et asséché jusqu’à ce que son taux d’humidité soit inférieur à 2,5 pour cent en utilisant la chaleur résiduelle du groupe électrogène diesel du chantier. Seulement 35 pour cent de l’énergie produite par la génératrice diesel sert à produire de l’électricité; en hiver, une bonne partie de cette énergie sera captée de nouveau et utilisée pour assécher le minerai, chauffer l’eau de procédé et chauffer les installations. Pour optimiser l’utilisation de son système de chauffage, New Millennium a décidé de loger la plupart de ses installations de projet sous un même toit. Le concept est similaire à celui utilisé à proximité à Mont-Wright, affirme 54 | CIM Magazine | Vol. 6, No. 7

M. Journeaux. « La seule différence réside dans le style de structure », explique-t-il. La conception retenue pour le projet DSO est celle d’un dôme de polyester enduit de vinyle, de 106 mètres de largeur et de 170 mètres de longueur, qui abritera les bureaux, les installations de traitement, les ateliers, les laboratoires et le groupe électrogène de l’exploitation. Quelques structures devront demeurer distinctes : le broyeur et les silos de chargement seront à l’extérieur et en raison du bruit, les logements des employés se trouveront dans un camp distinct. Au début, il semblait possible d’utiliser l’énergie hydroélectrique locale durant les mois d’été, mais cela s’est finalement avéré trop compliqué. « La centrale Menihek aurait pu nous fournir une petite quantité d’énergie durant l’été », a indiqué M. Chanda. « Seulement, cela aurait nécessité le renforcement du réseau de distribution. Nous ne pouvions justifier le coût lié à la modernisation de la ligne étant donné qu’aucune énergie hydroélectrique ne sera fournie durant l’hiver. » La construction a commencé sur le site, et les services d’AECOM ont été retenus en tant qu’entrepreneur IAGC. « Nous estimons que la production comme telle devrait commencer vers la fin de 2012 », a affirmé M. Journeaux, « ensuite nous prendrons les mesures pour atteindre une capacité optimale. Normalement, cela devrait nécessiter 12 mois. »

Les yeux sur la récompense Entretemps, NML et Tata Steel envisagent la prochaine phase de leur collaboration. À peine 10 pour cent de la Chaîne ferrifère Millennium ont été explorés, cependant NML a d’ores et déjà découvert deux gisements, KéMag et LabMag, qui ensemble, renferment quelque 9 milliards de tonnes de taconite. Les réserves prouvées et probables s’élèvent à plus de 5,5 milliards de tonnes d’une teneur d’environ 30 pour cent en fer. M. Journeaux présente un élément de comparaison : « si nous devions extraire 20 millions de tonnes par année, la mine aurait une durée de vie de cent ans », dit-il. « Inutile de préciser que la ressource est gigantesque. » Au cours des 18 à 20 prochains mois, les plans pour le projet de taconite commenceront à prendre forme. Tata Steel finance actuellement 64 pour cent de l’étude de faisabilité estimée à 50 M$ pour KéMag et LabMag. Selon M. Journeaux : « Le processus est bien amorcé, et nous travaillons en étroite collaboration pour mener à bien cette étude. » Si les résultats de l’étude de faisabilité du projet de taconite s’avèrent concluants, Tata Steel et New Millennium lanceront les activités de production en tant que coentreprise et organiseront un financement à hauteur de 4,85 G$. Selon M. Chanda : « Si ce projet est approuvé et procède à l’étape de la construction, cela représentera, pour une petite entreprise telle que la nôtre, un énorme pas en avant. » ICM


Une volonté de fer Le projet de minerai expédié sans traitement préalable de Tata Steel Minerals Canada Ltd. a déjà été exploité par la Compagnie minière IOC.

E

En ce moment, les producteurs d’acier qui se trouvent également à exploiter un gisement de minerai de fer de qualité supérieure sont avantagés. La forte demande d’acier et de minerai de fer demeurant au beau fixe, les aciéristes renouent avec la propriété minière afin de s’assurer d’un approvisionnement adéquat dans un climat concurrentiel. Un des dix principaux producteurs, le conglomérat indien Tata Steel, s’est joint à une migration générale vers la fosse du Labrador du Canada, attiré par les vastes gisements de fer détenus par New Millennium Iron Corp. (NML, anciennement New Millennium Capital Corp.). Pour Tata, l’association avec NML créera la première source de fer intégrée pour ses exploitations européennes, qui consomment de 20 à 25 millions de tonnes de minerai de fer chaque année. Pour NML, cela se traduit par du capital lui permettant d’entreprendre la mise en valeur d’une chaîne de gisements longue de 210 kilomètres, baptisée Chaîne ferrifère Millennium, qui chevauche la frontière entre le Nord-est du Québec et le Labrador. Les partenaires de la coentreprise, appelée Tata Steel Minerals Canada Ltd. (TSMC), démarrent modestement avec une mine à ciel ouvert à teneur élevée simplement connue sous le nom de projet DSO, dont la production devrait démarrer l’an prochain. Situé à quelque 30 kilomètres de Schefferville, au Québec, le projet regroupe 25 petits gisements à ciel ouvert 52 | CIM Magazine | Vol. 6, No. 7

renfermant de l’hématite contenant de 58 à 60 pour cent de fer. Comme bon nombre des gisements de la région, ceux-ci se trouvent sur un terrain qui a été exploité par la Compagnie minière IOC entre les années 1950 et les années 1980. En tant que partenaire à 80 pour cent de la coentreprise, Tata Steel organisera le financement de la première tranche de 300 M$ plus 80 pour cent des coûts résiduels qui, selon l’étude de faisabilité, devraient se chiffrer à 35 M$. En retour, la société achètera 100 pour cent de la production annuelle de 4,2 millions de tonnes au cours du marché pour la durée de vie de la mine. Celle-ci pourrait être d’au moins 15 ans, selon Bish Chanda, vice-président principal, marketing et stratégie, NML. En prenant en compte des ressources historiques et actuelles conformes à la NC 43-101 qui s’élèvent à quelque 80 millions de tonnes, il estime la ressource totale à 120 millions de tonnes.

Le projet DSO : s’adapter au marché Certaines mesures de valorisation du minerai seront requises dans le cadre de ce projet. M. Chanda explique : « Le terme DSO, dans notre cas, est du passé. IOC expédiait du minerai à teneurs de 58 à 60 pour cent aux aciéristes. Aujourd’hui, les aciéristes européens recherchent des teneurs plus élevées. » En revanche, le minerai expédié contient très peu de contaminants (phosphore, alumine).

Courtoisie de NML

projet en vedette


projet en vedette NML prévoit aménager une exploitation à ciel ouvert classique, effectuer des travaux de forage et de dynamitage pour éliminer la mince couverture et utiliser des camions de 180 tonnes pour transporter le minerai vers une petite usine de traitement. Lorsqu’elle fonctionnera à pleine capacité, l’usine traitera 5 millions de tonnes de minerai brut et produira 4,2 millions de tonnes sèches d’une teneur minimale de 64,5 pour cent en fer. Bacs à pistonnage, spirales de lavage et hydroclassificateurs utiliseront la gravité pour valoriser les fractions grossières de 6 mm et moins, tandis que les matériaux inférieurs à 0,1 mm seront séparés à l’aide de séparatrices à haute intensité en milieu humide. Le produit devrait être composé à environ 70 à 80 pour cent de minerai fin aggloméré et 20 à 30 pour cent de minerai extra fin. Les résidus liés à ce processus sont relativement peu importants, affirme M. Journeaux. Il s’agit de restes de silice, d’alumine et d’hématite, qui peuvent être déposés directement dans les fosses exploitées antérieurement par IOC. « Ces fosses sont partiellement remplies d’eau pour le moment », explique-t-il. « Nous n’aurons donc pas à construire de nouvelles digues ou de nouveaux barrages pour retenir les résidus. » Dans l’ensemble, l’impact environnemental du projet semble relativement mineur. « Dans ce cas-ci, il n’y a pas de pêches en cause », observe M. Chanda. « Nous n’avons pas recours à la flottation. L’eau est le seul agent que nous utilisons. » À ce jour, TSMC a obtenu l’approbation de la province de TerreNeuve-et-Labrador et a entrepris le processus d’approbation au Québec. Le projet ne requiert pas d’examen environnemental à l’échelon fédéral.

Îles. « Un chemin de fer local indépendant transporte le minerai vers la ligne de chemin de fer Tshiuetin, qui appartient à trois Premières Nations », explique M. Journeaux. « Puis, il est pris en charge par le Chemin de fer QNS&L appartenant à IOC. Ensuite, il est transféré à la ligne CFA appartenant à Wabush Mines. Nul besoin de préciser que le fait de faire affaire avec quatre compagnies de chemin de fer complique quelque peu les opérations. Toutefois, le défi n’est pas insurmontable. » Parce que le projet se trouve sur le territoire de plusieurs Premières Nations et à cheval sur deux provinces, TSMC a dû négocier une foule d’ententes. Outre des contrats portant sur l’utilisation des chemins de fer et deux examens environnementaux, la société a dû mener des négociations avec quatre Premières Nations touchées. La société a signé des ententes sur les répercussions et les avantages avec la Nation Naskapi de Kawawachikamach et la Nation Innu Matimekush-Lac John, qui se trouvent tout près. Une entente a été conclue avec la bande plus éloignée Innu Takuaikan Uashat mak Mani Utenam, à Sept-Îles, tandis que des négociations sont en cours avec la nation innue au Labrador.

Éloigné mais non isolé En tant que site préexistant, le projet DSO a des infrastructures considérables en place. Bien que TSMC assume des coûts élevés pour le transport de carburant, de denrées alimentaires, de pièces de rechange, ainsi que pour le transport aérien de personnel, l’aéroport de Schefferville a une piste en dur de 1500 mètres, et le minerai sera expédié par train sur des voies en grande partie existantes jusqu’au port de Sept-Îles, au Québec. Les wagons de TSMC seront pris en charge par diverses compagnies ferroviaires entre le site du projet et SeptNovember 2011 | 53


projet en vedette Une main-d’œuvre locale TSMC est privilégiée en ce qui concerne ses voisins; 1 800 autochtones vivent à seulement 25 à 30 kilomètres de distance à Schefferville et à Kawawachikamach, et la société a l’intention de recruter au moins le quart de ses premiers 200 employés sur place. « Quelques-unes de ces personnes travaillent déjà pour les conseils de bande et le chemin de fer Tshiuetin », fait remarquer M. Journeaux. « Ces conseils de bande possèdent tous de l’équipement de construction. Naturellement, il n’est pas aussi imposant que l’équipement minier que nous utiliserons, mais d’après mon expérience, une personne habituée à conduire un camion routier n’aura pas trop de difficultés, après avoir reçu une formation adéquate, à s’adapter à un camion de chantier cinq fois plus gros. » La société vise à constituer une main-d’œuvre formée de 70 pour cent d’autochtones, mais M. Journeaux reconnaît que cela pourrait prendre un certain temps. Le reste du personnel arrivera par avion. Pour loger ces personnes, la société est en train de construire un camp de 192 lits qui pourra également accueillir des visiteurs et des employés d’entreprises de restauration, de dynamitage et de sécurité.

Au chaud sous la tente Les hivers nordiques ont façonné le plan du site du projet. À Schefferville en janvier, la température moyenne est de -24,1 °C. Dès le mois d’octobre, le minerai, qui contient un taux d’humidité naturelle de 8 à 11 pour cent, gèle contre les parois des wagons. Bien que certaines mines nordiques, dont l’exploitation James, ferment durant l’hiver, TSMC a décidé de poursuivre les activités au projet DSO à longueur d’année. M. Journeaux cite quelques raisons motivant cette décision : « Vous vous imaginez? Il faut savoir quoi faire avec une main-d’œuvre inactive durant l’hiver. Il faudrait que les installations soient deux fois plus grandes que nécessaire. Et c’est aussi un problème pour votre client, qui veut être approvisionné à l’année. L’exploitation à temps partiel n’est vraiment pas une bonne solution. » Le minerai sera plutôt dégelé et asséché jusqu’à ce que son taux d’humidité soit inférieur à 2,5 pour cent en utilisant la chaleur résiduelle du groupe électrogène diesel du chantier. Seulement 35 pour cent de l’énergie produite par la génératrice diesel sert à produire de l’électricité; en hiver, une bonne partie de cette énergie sera captée de nouveau et utilisée pour assécher le minerai, chauffer l’eau de procédé et chauffer les installations. Pour optimiser l’utilisation de son système de chauffage, New Millennium a décidé de loger la plupart de ses installations de projet sous un même toit. Le concept est similaire à celui utilisé à proximité à Mont-Wright, affirme 54 | CIM Magazine | Vol. 6, No. 7

M. Journeaux. « La seule différence réside dans le style de structure », explique-t-il. La conception retenue pour le projet DSO est celle d’un dôme de polyester enduit de vinyle, de 106 mètres de largeur et de 170 mètres de longueur, qui abritera les bureaux, les installations de traitement, les ateliers, les laboratoires et le groupe électrogène de l’exploitation. Quelques structures devront demeurer distinctes : le broyeur et les silos de chargement seront à l’extérieur et en raison du bruit, les logements des employés se trouveront dans un camp distinct. Au début, il semblait possible d’utiliser l’énergie hydroélectrique locale durant les mois d’été, mais cela s’est finalement avéré trop compliqué. « La centrale Menihek aurait pu nous fournir une petite quantité d’énergie durant l’été », a indiqué M. Chanda. « Seulement, cela aurait nécessité le renforcement du réseau de distribution. Nous ne pouvions justifier le coût lié à la modernisation de la ligne étant donné qu’aucune énergie hydroélectrique ne sera fournie durant l’hiver. » La construction a commencé sur le site, et les services d’AECOM ont été retenus en tant qu’entrepreneur IAGC. « Nous estimons que la production comme telle devrait commencer vers la fin de 2012 », a affirmé M. Journeaux, « ensuite nous prendrons les mesures pour atteindre une capacité optimale. Normalement, cela devrait nécessiter 12 mois. »

Les yeux sur la récompense Entretemps, NML et Tata Steel envisagent la prochaine phase de leur collaboration. À peine 10 pour cent de la Chaîne ferrifère Millennium ont été explorés, cependant NML a d’ores et déjà découvert deux gisements, KéMag et LabMag, qui ensemble, renferment quelque 9 milliards de tonnes de taconite. Les réserves prouvées et probables s’élèvent à plus de 5,5 milliards de tonnes d’une teneur d’environ 30 pour cent en fer. M. Journeaux présente un élément de comparaison : « si nous devions extraire 20 millions de tonnes par année, la mine aurait une durée de vie de cent ans », dit-il. « Inutile de préciser que la ressource est gigantesque. » Au cours des 18 à 20 prochains mois, les plans pour le projet de taconite commenceront à prendre forme. Tata Steel finance actuellement 64 pour cent de l’étude de faisabilité estimée à 50 M$ pour KéMag et LabMag. Selon M. Journeaux : « Le processus est bien amorcé, et nous travaillons en étroite collaboration pour mener à bien cette étude. » Si les résultats de l’étude de faisabilité du projet de taconite s’avèrent concluants, Tata Steel et New Millennium lanceront les activités de production en tant que coentreprise et organiseront un financement à hauteur de 4,85 G$. Selon M. Chanda : « Si ce projet est approuvé et procède à l’étape de la construction, cela représentera, pour une petite entreprise telle que la nôtre, un énorme pas en avant. » ICM



commodity focus diamonds

BRILLIANT IN UNCERTAIN TIMES by PETER BRAUL

diamonds, which are increasingly cheaper to produce, satisfy nearly all of the demand for industrial-use diamonds.

Courtesy of De Beers

The diamond pipeline

ince their discovery in India in the ninth century BC, diamonds have been one of the most soughtafter luxury goods in the world and in that respect, not much has changed. But deposits discovered in Canada in the 1990s, the gradual reduction of De Beers’ control of the industry and the increasing demand for both gems and industrial diamonds in Asia has made the modern market diverse and robust. From the famous 478-carat Light of Letseng diamond, which sold for US$18.4 million in 2008, to industrial diamond dust, the diamond industry today is as multifaceted as the polished rocks themselves.

S

The polished and the rough Diamonds originate in the Earth’s mantle, an environment where pressures vary between 650,000 and 870,000 psi, and temperatures range between 900 and 1,300°C. They are brought to the surface by volcanic action and are found in kimberlite pipes – vertical ore bodies of cooled magma – and alluvial deposits that have been eroded away from the pipes over millions of years. Diamonds entering the market now are usually between one and three billion years old. Once extracted, the rough diamonds enter a complex grading scheme to determine their value. While the Light of Letseng sold at over $38,000 per carat, industrial stones sell for anywhere from $7 to $200 per carat, and crushing boart for $0.30 a carat. Natural diamonds that are not suitable for jewelry are not in great demand. Improved synthetic 56 | CIM Magazine | Vol. 6, No. 7

Diamonds differ substantially from other commodities in the way they are sold. “Diamonds aren’t traded in an exchange market the way metals are,” says Matt Manson, CEO, president and director of the Stornoway Diamond Corporation. “There’s less speculation, there’s little stockpiling, and there’s no futures or derivatives market.” All that makes for stable prices that do not typically jolt up and down very much over time. Traditionally, there is also a very tight connection between diamond mines and the jewelry sold as the end product. Whereas copper pots cannot be bought directly from Teck Resources, De Beers operates retail jewelry stores in upscale neighbourhoods like Beverly Hills and 5th Avenue in New York. At the beginning of their journey, rough diamonds are sorted either on site or at separate sorting houses – De Beers diamonds are divided into 12,000 different categories, each with its own corresponding value. Sorted rough diamonds then enter the market – known as the pipeline – in parcels containing a variety of stones, not all of them gem-worthy. These are put out to tender or sold at “sights” to selected customers. The customers, known as “diamantaires,” often have family ties to the cutting and polishing business, and are one of the most unique aspects of the industry. Whether bidding on tenders or buying sights, the diamantaires often have longstanding relationships with the mining companies they buy from. “These are the people who will take a rough diamond and, based on their experience, will try to maximize the value when they cut it,” says Patrick Evans, president, CEO and director of Mountain Province Diamonds (MPD). “That’s really more of an art. The rule of thumb is if you’ve got a two-carat diamond, after you’ve cut and polished it, you’re down to a one-carat diamond.” And that one carat can cost the end consumer over $10,000, depending on quality. De Beers once held a near monopoly on the sale of rough natural diamonds, but now most small to mid-sized mining companies are choosing to keep their sales


commodity focus diamonds independent. De Beers continues to sell its diamonds – roughly 40 per cent of the global supply – to a very select group of “sightholders” at its sales and distribution arm, the Diamond Trading Company (DTC). Manson says sight-based systems, which are still used by De Beers, Rio Tinto and several others, can be mutually beneficial, but “in a tender-based system, it’s much more straight ahead.” However, the increased diversity of the market has not necessarily meant perfect transparency. Manson points out that the miners have not given up all control by moving away from the DTC system of selling. “You can control who’s bidding by controlling who is invited to the tender,” he says. In the case of the Gahcho Kué Mine, currently in development in the Northwest Territories, De Beers and MPD have formed a joint venture, with De Beers taking 51 per cent interest. “Mountain Province markets its 49 per cent share of the diamonds independently of De Beers,” explains Evans, who hopes to put his diamonds to tender in the world’s diamond capital, Antwerp. Whether sold by tender or at sights, and regardless of where they are produced, “diamonds are generally sold in Antwerp, Tel Aviv and Mumbai; those are the major cutting centres,” says Evans.

Economic blips versus long-term reality Accustomed to a steady price rise of about three per cent per year, diamond miners have been tossed about by the recession and the European debt crisis. In 2008, demand and prices plummeted, and sales ratcheted back. Almost immediately afterwards, prices skyrocketed. In 2010, prices went up by 30 per cent, and in the first six months of this year, they rose 35 per cent. According to Evans, “that was driven principally by demand growth in India and China.” When prices dropped 25 per cent in August of this year, most were expecting it. “That was a bubble waiting to burst,” advises Richard Wake-Walker of WWW International Diamond Consultants. “Prices had risen inexorably since April 2009, and a correction was long overdue.” But for diamond miners, the long-term forecast is more important than spot prices. Wake-Walker advises that “three per cent growth annually is probably a conservative figure. But that does not mean there will not be wild fluctuations along the way.” Indeed, rough prices are likely to remain volatile, but fundamental economics of supply and demand cannot be ignored. “The inflection point (where demand outstrips supply) was previously expected to be in 2015, but Rio Tinto published some data that showed that the inflection point is at the end of this year,” says Evans. “If China develops a per capita consumption of diamonds that is similar to Taiwan, then you’ll have to double mine supply,” says Manson. “All supply forecasts are showing at least a flattening and then a falloff.”

The Canadian future Diamond mines developing now have the advantage of being both low risk and low cost. Gahcho Kué, for example, has a potential production rate of 4.5 million carats per year over an 11-year mine life, with production scheduled to begin in 2015. “We’re looking at (startup) capital plus working capital of around $600 million,” Evans boasts, of the mine that aims to extract an estimated 49 million carats. “The mine is going to be generating roughly $600 million a year in revenue at today’s prices. That gives us a great deal of comfort.” Stornoway’s Renard project, Quebec’s first diamond mine, is also expected to deliver the first of its 30 million carats in 2015, with total capital costs estimated from a March 2010 study at just over $500 million. And Manson believes that there are many more diamonds to be found. “The credit crisis really cleared out a lot of junior companies,” he says. “There’s only a handful of companies doing primary grassroots diamond exploration in this country anymore. I’m a big champion of the exploration potential in Canada for diamonds.” CIM

• MINING • MINERALS • METALS • MATERIALS mining foR sociETy

M4S

Razor’s edge When the world’s eye surgeons need the sharpest of all knives, particularly in the treatment of cataracts, they turn to diamonds. Synthetic diamond knives used in eye surgery, while usually several millimeters long, are only between 150 and 200 micrometers thick. The secret to the diamond blade’s success is its remarkable rigidity, which allows the blades to be made extra thin. This reduces pressure inside the eye, especially on the cornea, which can result in crush injuries during surgery if the blade used is not sharp enough. Cuts made with diamond knives heal faster and cause less disruption to the rest of the eye than steel blades, which makes recovery more comfortable. Unlike steel blades, diamond knives can be reused, which cuts costs as well. In the United States alone, there are over 1.5 million people every year who require cataract surgery.

November 2011 | 57



commodity focus diamonds

BRILLIANT IN UNCERTAIN TIMES by PETER BRAUL

diamonds, which are increasingly cheaper to produce, satisfy nearly all of the demand for industrial-use diamonds.

Courtesy of De Beers

The diamond pipeline

ince their discovery in India in the ninth century BC, diamonds have been one of the most soughtafter luxury goods in the world and in that respect, not much has changed. But deposits discovered in Canada in the 1990s, the gradual reduction of De Beers’ control of the industry and the increasing demand for both gems and industrial diamonds in Asia has made the modern market diverse and robust. From the famous 478-carat Light of Letseng diamond, which sold for US$18.4 million in 2008, to industrial diamond dust, the diamond industry today is as multifaceted as the polished rocks themselves.

S

The polished and the rough Diamonds originate in the Earth’s mantle, an environment where pressures vary between 650,000 and 870,000 psi, and temperatures range between 900 and 1,300°C. They are brought to the surface by volcanic action and are found in kimberlite pipes – vertical ore bodies of cooled magma – and alluvial deposits that have been eroded away from the pipes over millions of years. Diamonds entering the market now are usually between one and three billion years old. Once extracted, the rough diamonds enter a complex grading scheme to determine their value. While the Light of Letseng sold at over $38,000 per carat, industrial stones sell for anywhere from $7 to $200 per carat, and crushing boart for $0.30 a carat. Natural diamonds that are not suitable for jewelry are not in great demand. Improved synthetic 56 | CIM Magazine | Vol. 6, No. 7

Diamonds differ substantially from other commodities in the way they are sold. “Diamonds aren’t traded in an exchange market the way metals are,” says Matt Manson, CEO, president and director of the Stornoway Diamond Corporation. “There’s less speculation, there’s little stockpiling, and there’s no futures or derivatives market.” All that makes for stable prices that do not typically jolt up and down very much over time. Traditionally, there is also a very tight connection between diamond mines and the jewelry sold as the end product. Whereas copper pots cannot be bought directly from Teck Resources, De Beers operates retail jewelry stores in upscale neighbourhoods like Beverly Hills and 5th Avenue in New York. At the beginning of their journey, rough diamonds are sorted either on site or at separate sorting houses – De Beers diamonds are divided into 12,000 different categories, each with its own corresponding value. Sorted rough diamonds then enter the market – known as the pipeline – in parcels containing a variety of stones, not all of them gem-worthy. These are put out to tender or sold at “sights” to selected customers. The customers, known as “diamantaires,” often have family ties to the cutting and polishing business, and are one of the most unique aspects of the industry. Whether bidding on tenders or buying sights, the diamantaires often have longstanding relationships with the mining companies they buy from. “These are the people who will take a rough diamond and, based on their experience, will try to maximize the value when they cut it,” says Patrick Evans, president, CEO and director of Mountain Province Diamonds (MPD). “That’s really more of an art. The rule of thumb is if you’ve got a two-carat diamond, after you’ve cut and polished it, you’re down to a one-carat diamond.” And that one carat can cost the end consumer over $10,000, depending on quality. De Beers once held a near monopoly on the sale of rough natural diamonds, but now most small to mid-sized mining companies are choosing to keep their sales


commodity focus diamonds independent. De Beers continues to sell its diamonds – roughly 40 per cent of the global supply – to a very select group of “sightholders” at its sales and distribution arm, the Diamond Trading Company (DTC). Manson says sight-based systems, which are still used by De Beers, Rio Tinto and several others, can be mutually beneficial, but “in a tender-based system, it’s much more straight ahead.” However, the increased diversity of the market has not necessarily meant perfect transparency. Manson points out that the miners have not given up all control by moving away from the DTC system of selling. “You can control who’s bidding by controlling who is invited to the tender,” he says. In the case of the Gahcho Kué Mine, currently in development in the Northwest Territories, De Beers and MPD have formed a joint venture, with De Beers taking 51 per cent interest. “Mountain Province markets its 49 per cent share of the diamonds independently of De Beers,” explains Evans, who hopes to put his diamonds to tender in the world’s diamond capital, Antwerp. Whether sold by tender or at sights, and regardless of where they are produced, “diamonds are generally sold in Antwerp, Tel Aviv and Mumbai; those are the major cutting centres,” says Evans.

Economic blips versus long-term reality Accustomed to a steady price rise of about three per cent per year, diamond miners have been tossed about by the recession and the European debt crisis. In 2008, demand and prices plummeted, and sales ratcheted back. Almost immediately afterwards, prices skyrocketed. In 2010, prices went up by 30 per cent, and in the first six months of this year, they rose 35 per cent. According to Evans, “that was driven principally by demand growth in India and China.” When prices dropped 25 per cent in August of this year, most were expecting it. “That was a bubble waiting to burst,” advises Richard Wake-Walker of WWW International Diamond Consultants. “Prices had risen inexorably since April 2009, and a correction was long overdue.” But for diamond miners, the long-term forecast is more important than spot prices. Wake-Walker advises that “three per cent growth annually is probably a conservative figure. But that does not mean there will not be wild fluctuations along the way.” Indeed, rough prices are likely to remain volatile, but fundamental economics of supply and demand cannot be ignored. “The inflection point (where demand outstrips supply) was previously expected to be in 2015, but Rio Tinto published some data that showed that the inflection point is at the end of this year,” says Evans. “If China develops a per capita consumption of diamonds that is similar to Taiwan, then you’ll have to double mine supply,” says Manson. “All supply forecasts are showing at least a flattening and then a falloff.”

The Canadian future Diamond mines developing now have the advantage of being both low risk and low cost. Gahcho Kué, for example, has a potential production rate of 4.5 million carats per year over an 11-year mine life, with production scheduled to begin in 2015. “We’re looking at (startup) capital plus working capital of around $600 million,” Evans boasts, of the mine that aims to extract an estimated 49 million carats. “The mine is going to be generating roughly $600 million a year in revenue at today’s prices. That gives us a great deal of comfort.” Stornoway’s Renard project, Quebec’s first diamond mine, is also expected to deliver the first of its 30 million carats in 2015, with total capital costs estimated from a March 2010 study at just over $500 million. And Manson believes that there are many more diamonds to be found. “The credit crisis really cleared out a lot of junior companies,” he says. “There’s only a handful of companies doing primary grassroots diamond exploration in this country anymore. I’m a big champion of the exploration potential in Canada for diamonds.” CIM

• MINING • MINERALS • METALS • MATERIALS mining foR sociETy

M4S

Razor’s edge When the world’s eye surgeons need the sharpest of all knives, particularly in the treatment of cataracts, they turn to diamonds. Synthetic diamond knives used in eye surgery, while usually several millimeters long, are only between 150 and 200 micrometers thick. The secret to the diamond blade’s success is its remarkable rigidity, which allows the blades to be made extra thin. This reduces pressure inside the eye, especially on the cornea, which can result in crush injuries during surgery if the blade used is not sharp enough. Cuts made with diamond knives heal faster and cause less disruption to the rest of the eye than steel blades, which makes recovery more comfortable. Unlike steel blades, diamond knives can be reused, which cuts costs as well. In the United States alone, there are over 1.5 million people every year who require cataract surgery.

November 2011 | 57


COLUMNS

| MAC economic commentary

Capital spending and the proposed mining-related investment that lies ahead Paul Stothart The single most important contribution that companies can make to Canada is in the form of capital expenditure. In the mining sphere, capital spending pays for new mine construction and increases to existing mine capacity. It generates process and technology improvements and the modernization and expansion of mills, smelters and refineries. It leads to the implementation of new product lines and improved energy efficiency and environmental performance. When companies commit to a particular capital spending program, the direct result is new jobs, contracts and production, as well as more modern and productive facilities. Capital spending plans are driven by an array of variables, including:

58 | CIM Magazine | Vol. 6, No. 7

projected future global market demand and mineral price trends; degree of confidence in existing plant capacity; level of comfort with host government rules and regulations; and the state of a company’s existing financing capabilities. In 2010, the Canadian mining industry made capital investments of $12.6 billion – up 30 per cent from the economically turbulent previous year – and a further 30 per cent increase is projected for 2011. At mine sites, around twothirds of capital spending is related to construction and one-third to machinery and equipment. This ratio is reversed at the smelting/refining stage where only 20 per cent of spending is on construction and the remainder directed towards machin-

ery and equipment. Of note, a further $4.6 billion was spent by the mining industry in 2010 on “repairs,” generally of machinery and equipment. In 2010, the largest capital expenditures in the metal mining sector occurred in gold-silver mines ($2.1 billion), copper-zinc mines ($940 million), nickel-copper mines ($870 million) and iron ore mines ($700 million). The coal mining industry invested $620 million in capital spending, while among the nonmetallics, potash companies invested $2.4 billion and diamond firms $350 million. In the oil sands, which remains among the world’s leading capital investment hubs, some $11.2 billion was spent in 2010 with $14.3 billion projected for 2011. Oil sands spending is entirely captured within the oil and gas sector, although some portion, probably around half, relates to construction and expansion of oil sands mining facilities. Capital investment in recent years has led to the opening of the Duck Pond, Chisel North and Voisey’s Bay metal mines, the Wolverine coal mine, the Victor and Snap Lake diamond mines, and several gold mines, among others. During mid-2011, the Mining Association of Canada drew upon existing websites, press releases and financial statements to compile an estimate of the amount of capital investment in Canada being proposed by the mining industry over the coming decade. In total, some $136 billion in mining-related projects have been proposed for the coming years. This figure includes multiple billions of dollars in projects in each of the following regions: • Nunavut: gold and iron ore projects by Newmont, Baffinland (ArcelorMittal) and others. • Northwest Territories: rare earth, diamond and gold projects by


MAC economic commentary | COLUMNS Avalon, De Beers, Fortune Minerals and others. • British Columbia: coal mines and gold-copper investments by Teck, Imperial, Taseko and others. • Alberta: mined oil sands projects proposed by Suncor, Syncrude and Shell. • Saskatchewan: diamonds, potash and uranium proposals by Shore Gold, BHP Billiton, Cameco and others. • Ontario: nickel, gold and palladium proposals involving Vale, Goldcorp and others. • Quebec: diamond, nickel and gold projects involving Stornoway, Agnico-Eagle and others. • Newfoundland and Labrador: a nickel processing plant investment by Vale. Most Canadian regions offer exciting potential for new mines. For example, the Legacy potash mine is expected to open in Saskatchewan in 2013, while the Cigar Lake uranium project is presently scheduled to start

production that same year. In diamonds, the Chidliak project on Baffin Island, Gahcho Kue project in the Northwest Territories, Aviat field in Nunavut and Renard project in central Quebec all offer promise, with the latter project likely the most advanced. Beyond the private sector, it should be noted that government can also play an important role through capital investment. The ongoing extension of the Highway 37 transmission line in northeast British Columbia is a good example of the positive impacts of public infrastructure investment. This capital cost of $400 million will enhance the economics of an estimated $15 billion in mineral projects. Similarly, the planned extension of the Route des Monts Otish (Route 167) in northern Quebec, which is part of the Quebec government’s $80 billion Plan Nord initiative, will improve future

prospects for development of gold, diamond, copper and uranium projects in the province’s North. It will also create thousands of jobs and benefit remote communities. This type of government involvement opens up new regions for development. While many of these projects within the $136 billion estimate will undoubtedly face obstacles and delays, this figure nonetheless gives a sense of the scale of mining-related jobs, supply contracts and tax revenues that potentially lie ahead in all Canadian regions. CIM

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

GIVING BACK Mining executive leads the way The chairman of Quadra FNX Mining Company, Terry MacGibbon, is the new chair of Laurentian University’s Next 50 Campaign, which aims to raise $50 million to mark the school’s 50th anniversary. The campaign has raised $39 million of its $50-million goal so far. The money will be used to help pay for Laurentian’s key projects: the Indigenous Sharing and Learning Centre, the school of architecture, a school of mines and an expanded endowment fund that will increase opportunities for researchers, graduate students, and student athletes to excel through the creation of chairs, fellowships and scholarships.

Faculty Position in Mining Engineering (MNG E) The Department of Energy and Mineral Engineering (EME; http://www.eme.psu.edu) at The Pennsylvania State University invites applications for a full-time, tenure-track faculty position at the assistant professor level. The principal research and teaching areas for the position are to be in surface mining, underground mining, mine systems analysis, environmental effects of mining and/or mine ventilation. EME is home to Penn State’s undergraduate degree programs in Petroleum and Natural Gas Engineering, Mining Engineering, Environmental Systems Engineering (with options in environmental systems and environmental health and safety) and Energy Engineering, as well as Energy Business and Finance. The successful applicant will help build and maintain excellence in Penn State’s Mining Engineering program. The candidate will teach undergraduate and graduate courses, supervise graduate students at the MS and PhD levels and carry out an active research program in his/her area of specialization. Candidates should have a doctorate degree in mining engineering or a closely related discipline with a strong background in one of the department’s focus areas. Preference will be given to candidates with industrial experience and appropriate certification (e.g., P.E.). The successful candidate should demonstrate strong communication and presentation skills. Although the search is aimed at the Assistant Professor level, more senior candidates may be considered. Demonstrated ability and willingness to establish an externally funded research program, conduct independent research, and publish scholarly research are expected. Penn State is committed to adding at least 25 new faculty in energy in the next three years (please see articles at: http://www.psiee.psu.edu and http://www.psiee. psu.edu/publications/EnergyReport.pdf) and we expect the new faculty to collaborate with other energy and safetyrelated faculty in the University. Applications should include: (1) a curriculum vitae with educational background and employment history; (2) a statement concerning research and teaching interests; (3) names and addresses of at least three referees; and (4) samples of refereed publications. Send applications at the earliest via regular mail or electronically to: Chair Mining Engineering Search Committee, Department of Energy and Mineral Engineering, 117 Hosler Building, University Park, PA 16802, USA; Fax: (814) 863 5709; Email: rlg19@psu.edu. Penn State is committed to affi rmative action, equal opportunity and the diversity of its workforce.

November 2011 | 59


COLUMNS

| supply side

Quebec’s Plan Nord is a major boost for mining suppliers Jon Baird Companies that supply the mining industry, whether they are located in Quebec, the rest of Canada or abroad, should congratulate the Quebec government for its farsighted, 25-year plan to develop the province’s territory that lies north of the 49th parallel and which accounts for 72 per cent of Quebec’s geographic area. Announced in May 2011, after consultation and consensus with northern peoples, industry and environmentalists, Plan Nord calls for a development project that will be economically, socially and environmentally sound. Listing 11 mine development projects totalling more than $8.4 billion in investment, the plan estimates the creation of approximately 11,000 jobs during construction and 4,000 permanent jobs once production starts. The potential for mining suppliers is substantial. Mineral exploration alone offers major spinoffs for suppliers that consult in the geosciences and provide services such as geophysical surveys and diamond drilling. Considering the enormous geological potential in Northern Quebec, coupled with the potential for enabling infrastructure under Plan Nord, prospectors have been attracted to the area in growing numbers. Suppliers that follow project news will be aware of some of the advanced developments that are already offering opportunities, namely: Goldcorp’s Éléonore gold mine will require an investment of $1.4 billion; Stornoway’s Renard project will become Quebec’s first diamond mine at a cost of $450 million; and Xstrata will invest $530 million to develop a new deposit at Raglan. However, even greater investment will take place in the iron ore industry: ArcelorMittal will invest $2.1 60 | CIM Magazine | Vol. 6, No. 7

billion expanding its Mont-Wright and Port Cartier operations; New Millenium and Tata Steel have announced an iron ore project valued at $4 billion; and Adriana Resources and China’s Wuhan Iron and Steel (Group) Corporation (WISCO) are contemplating an investment of $10 billion, which would become the largest mining project in Canadian history. What percentage of the construction and operating expenses of new mines will provide revenues for mining supply companies? It is hard to estimate, since there is no quantitative study of the indirect benefits

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

created by the mining industry. Qualitative evidence would, however, indicate that big benefits will accrue to suppliers. Mining supply has been described by the Conference Board of Canada as a “hidden sector.” This is because supplier firms are considered to be consultants, manufacturers and others that statisticians classify as being outside of the mining industry. Further, even if all such firms were identified, it would be difficult to integrate their data, since some of their revenues may also come from sectors outside of the minerals industry.

Le Plan Nord du Québec : un nouvel élan pour les fournisseurs miniers Les compagnies québécoises, canadiennes ou étrangères qui fournissent l’industrie minière devraient féliciter le gouvernement du Québec pour son plan de développement sur 25 ans de la portion de la province située au nord du 49e parallèle, représentant 72 pour cent de la superficie du Québec. Annoncé en mai 2011, après avoir consulté et obtenu l’accord des peuples nordiques, de l’industrie et des environnementalistes, le Plan Nord vise un développement économique, social et environnemental durable. Comportant 11 projets de développement minier totalisant plus de 8,4 milliards de dollars en investissements, le plan devrait créer environ 11 000 emplois durant la construction et 4000 emplois permanents par la suite. Le potentiel pour les fournisseurs miniers est important.

L’exploration minérale offre à elle seule de nombreuses retombées pour les consultants en géosciences et pour les fournisseurs de services tels que les relevés géophysiques et les forages au diamant. En considérant l’énorme potentiel géologique du Nord du Québec et les infrastructures prévues dans le Plan Nord, les prospecteurs sont de plus en plus attirés vers cette région. Des fournisseurs sont au courant de projets au stade de développement avancé offrant déjà des occasions : la mine d’or Éléonore de Goldcorp qui commandera un investissement de 1,4 milliards de dollars; le projet Renard de Stornoway qui deviendra la première mine de diamants du Québec au coût de 450 millions de dollars et Xstrata qui investira 530 millions de dollars pour développer un nouveau gisement à Raglan.


du côté de l’offre | COLUMNS

Published by the Quebec Mining Association and the Quebec Mineral Exploration Association in 2010, Quebec’s Mineral Industry Cluster identified 3,800 firms in the province that supply the mining industry, of which 1,800 are located in the Montreal region. Acknowledging “major hurdles when it comes to measuring their level of activity,” the report falls short of delivering a quantitative estimate of the impact of mining supply on the economy. In 2010, a study based on an interview methodology carried out for the Ontario North Economic Development Corporation estimated the total value of the mining supply sector in Northern Ontario at $5.6 billion in annual revenue, employing 23,000 people.

In 2007, a study carried out for the Much of the generated economic Ontario Mining Association impact is local to the representative attempted to measure the economic mine; however, in an open economy contribution of a “representative” like Canada’s, the inputs imported mine to the Ontario economy, in both from other provinces and abroad can the construction and operation be quite substantial. This is why Quephases. In addition to the direct eco- bec’s Plan Nord should be celebrated nomic impact of the mine, the study by mining suppliers, not only in Quedelved into the “inputs” bec itself, but around the world. CIM of the mine and the “inputs into the inputs,” many of which come from mining supJon Baird, managing pliers. Briefly, if the director of CAMESE and mine employs 480 the immediate past workers, the total president of PDAC, is employment generated interested in collective is estimated at 2,300 approaches to enhancing jobs, of which some the Canadian brand in the 1,100 could be in minworld of mining. ing supply firms.

Toutefois, l’industrie du minerai de fer connaîtra des investissements encore plus importants : ArcelorMittal investira 2,1 milliards de dollars pour agrandir ses exploitations de Mont Wright et de Port Cartier; New Millenium et Tata Steel ont annoncé un projet de minerai de fer évalué à 4 milliards de dollars et Adriana Resources et la compagnie chinoise WISCO (Wuhan Iron and Steel Group Corporation) étudient un investissement de 10 milliards de dollars, ce qui pourrait mener au plus important projet minier de l’histoire du Canada. Quel sera le pourcentage des dépenses de construction et d’exploitation se traduisant en revenus pour les fournisseurs? C’est difficile à estimer, puisqu’il n’existe aucune étude quantitative des bénéfices indirects créés par l’industrie minérale. Les données qualitatives indiquent toutefois que les fournisseurs devraient faire de bonnes affaires. Le Conference Board of Canada qualifie les fournitures minières de « secteur caché »; en effet, les com-

pagnies fournisseuses comme les consultants, les manufacturiers et autres sont considérées comme externes à l’industrie minière par les statisticiens. Même si toutes ces compagnies étaient identifiées, il serait difficile d’intégrer leurs données, puisqu’une partie de leurs revenus pourrait provenir de secteurs externes à l’industrie minérale. Publié en 2010 par l’Association minière du Québec et l’Association de l’exploration minière du Québec, le rapport de la firme E&B Data « Quebec’s Mineral Industry Cluster » a identifié 3800 compagnies qui fournissent l’industrie minérale, dont 1800 dans la région de Montréal. Reconnaissant des « obstacles majeurs lorsqu’il s’agit de mesurer leur niveau d’activité », le rapport ne quantifie pas l’impact des fournitures minières sur l’économie. En 2010, une étude basée sur une méthodologie d’entrevue effectuée pour le compte de la Ontario North Economic Development Corporation estimait la valeur totale du secteur des fournitures minières dans le Nord de l’Ontario à 5,6 milliards de dollars

author

en revenus annuels, embauchant 23 000 personnes. En 2007, une étude effectuée pour le compte de l’Ontario Mining Association essayait de mesurer la contribution à l’économie ontarienne d’une mine « représentative », dans les phases de construction et d’exploitation. En plus de l’impact économique direct de la mine, l’étude a analysé les « intrants » de la mine et les « intrants aux intrants », dont plusieurs provenaient de fournisseurs miniers. En résumé, si la mine emploie 480 employés, l’embauche totale générée est estimée à 2300 emplois, dont quelque 1100 dans les compagnies de fournitures minières. Une grande partie de l’impact économique généré est local; toutefois, dans une économie ouverte comme celle du Canada, les intrants importés d’autres provinces et de l’étranger peuvent être substantiels. Voilà pourquoi les fournisseurs miniers, non seulement ceux du Québec mais aussi ceux du monde entier, devraient célébrer le Plan Nord du Québec. ICM November 2011 | 61


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| HR outlook

Mining Essentials: 12 weeks can change the future Work readiness training program for Aboriginal Peoples to launch in January

Aboriginal Peoples have a strong history in Canada’s mining industry. As one of the fastest growing segments of the Canadian population and with Aboriginal communities located in close proximity to many mine sites and operations, they provide a large potential pool of workers for the sector. With the support of the Mining Industry Human Resources Council (MiHR), industry has made tremendous strides to address the human resource issue and to continue to grow the talent pool. MiHR and the Assembly of First Nations (AFN) have worked together and partnered with provincial, territorial and national associations, communities, educators and employers to develop Mining Essentials: A Work Readiness Training Program for Aboriginal Peoples to help companies and communities meet joint hiring and employment targets. Last fall, the program was piloted at Anishinabek Employment and Training Services

62 | CIM Magazine | Vol. 6, No. 7

Courtesy of MiHR

Lindsay Forcellini

Canadian Mining Employment and Hiring Forecasts 2011 indicates seven per cent of the mining workforce selfidentify as being of Aboriginal descent, nearly double the rate for the overall labour force.

(AETS) in Thunder Bay, Ontario; Northwest Community College in Hazelton, British Columbia; and

Anishinaabeg of Kabapikotawangag Resource Council in Kenora, Ontario.


HR outlook | COLUMNS Mining Essentials teaches industryvalidated, essential non-technical skills and training required for an individual to be considered for an entry-level position in the mining industry. The program incorporates both industry and traditional cultures for a unique learning experience, thus increasing the probability of graduates of the program gaining employment in one of Canada’s highest paying industrial sectors. Mining Essentials enables companies to benefit from a local, skilled and empowered workforce; it also fosters economic development that results in healthy communities.

Impacts of the pilot program At the International Indigenous Summit on Energy and Mining this past June, National Chief Shawn Atleo reflected on the significance of this collaborative program. “The Hazelton area in northern BC has a number of First Nations communities with high unemployment, despair and far too many suicides,” he said. “When Hazelton was chosen as one of three pilot sites for the mining program, we had over 40 applications for only 12 positions. If we work together we can all win. Our people will be able to escape poverty through the prosperity that these projects will bring.” Of the 22 graduates of the Mining Essentials pilot, nine are now employed in the mining sector and four in other sectors. One of the participants has returned to school and five candidates are actively looking for work. In mid-September, the AFN received a report from Northwest Community College that there has been an 80 per cent success rate for graduates who have either found employment or have gone back to school for advanced training. It is another step in the right direction for an industry that is already outperforming the rest of the economy in the employment of Aboriginal Peoples.

and situations, in conjunction with traditional Aboriginal teaching methods and mediums. It is a 12-week training program that combines two components for an empowering learning experience: 1. Classroom training on essential and work readiness (non-technical) skills, which industry has validated as necessary to be considered for entry-level hires. 2. Enrichment activities that bring industry to life through site visits, hands-on activities, guest speakers, and/or certifications, etc., as defined by the training site and its partners. Training must involve three-way partnerships between communities, educators and industry. A complete listing of committee members and more detailed information about the program is available at www.aboriginalmining.ca.

What’s happening now? The Mining Essentials program is currently being taught at Northern College in Timmins, Ontario, in

partnership with the Wabun Tribal Council and Detour Gold. MiHR and the AFN are now looking to identify more qualified training sites and partners to increase opportunities to deliver Mining Essentials across Canada to launch the program in January 2012. The Mining Essentials Program was developed through the Ready to Mine, Skills Development Project, funded by HRSDC’s Aboriginal Affairs Directorate under the Aboriginal Skills Training Strategic Investment Fund. For more information on Mining Essentials, please contact Pascale Larouche at plarouche@mihr.ca. CIM

author Lindsay Forcellini is marketing and communications coordinator at MiHR.

Program details Mining Essentials teaches skills using industry examples, tools, documents November 2011 | 63


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| innovation

Innovators in la Belle Province Tom Hynes The culture of innovation is alive and thriving in Quebec’s exploration and mining industry – and these advancements are the result of a few remarkable individuals and organizations that are leading the charge in research initiatives.

Academia There are many examples of academia reaching above and beyond as a major source of mining-related innovation, for Quebec and the rest of Canada. For example, McGill mining engineering professor Ferri Hassani — who has helped foster the growth of some of CMIC’s programs — is instrumental in leading the effort to bring the World Mining Congress to Montreal in 2013. The Université du Québec en Abitibi-Témiscamingue (UQAT) is also a major source of mining innovation for the province. Through the Unité de recherche et de service en technologie minérale, professors such as Denis Bois, Bruno Bussières and others, are actively engaged with industry. Their efforts are helping to set the direction mining research should take in the province and the country, in exploration, extraction, processing, environment and underground water. Michel Jébrak and his colleagues do much the same at the Université du Québec à Montréal (UQAM), as do their fellow academics at the Université du Québec à Chicoutimi (UQAC). All three universities – UQAT, UQAM and UQAC – are members of CONSOREM, a mineral exploration research consortium that delves into mineral exploration technologies in Quebec. It represents a link between different members and partners of the minerals industry that come from the industrial, governmental and educational (university) fields. Michel Aubertin and his colleagues at École Polytechnique de Montréal 64 | CIM Magazine | Vol. 6, No. 7

are also blazing new trails in the area of innovation, especially through the NSERC Chair in Environment and Tailings Management. Meanwhile, Laval University is working with DIVEX, a geoscientific research network of about thirty researchers based in Quebec whose objective is to support mineral exploration diversification with the help of scientific research.

Research and services A key figure on the Quebec innovation scene is Pierre Bérubé, president of Abitibi Géophysique. He and his staff are carrying out remarkable work in the field of exploration technology: not

only are their new geophysical monitoring tools impressive but they have also established a unique multi-business set up in Val d’Or, Géopolis, which is made up of 11 “geo-related” companies operating under one roof. This opportunity for creating synergies between the companies is an asset for the Abitibi region, as well as the rest of Quebec. Another major contributor to mining innovation is COREM, a consortium of applied research for the processing and transformation of mineral substances, located in Quebec City. Though COREM has tackled many challenges in the past, its struggles have obviously paid off, as today it has to work hard to keep up with

Les innovateurs de la Belle Province Au Québec, la culture de l’innovation est bien vivante dans l’exploration et l’industrie minière – les avancées découlent de quelques individus et organismes remarquables qui sont à la tête d’initiatives de recherche.

Universités Il existe plusieurs exemples de milieux universitaires qui se démarquent en tant que source importante d’innovation reliée à l’industrie minière, au Québec et dans le reste du Canada. Par exemple, à McGill, le professeur de génie minier Ferri Hassani – qui a soutenu la croissance de quelques programmes du Conseil canadien de l’innovation minière (CCIM) – a travaillé très fort pour obtenir la tenue du World Mining Congress à Montréal en 2013. L’Université du Québec en AbitibiTémiscamingue (UQAT) est aussi une source importante d’innovation minière pour la province. Dans l’Unité de recherche et de service en technologie minérale, les professeurs Denis Bois,

Bruno Bussières et d’autres travaillent en étroite collaboration avec l’industrie. Leurs travaux aident à déterminer l’orientation que devrait prendre la recherche minière dans la province et dans le pays concernant l’exploration, l’extraction, le traitement, l’environnement et l’eau souterraine. Michel Jébrak et ses collègues font passablement la même chose à l’Université du Québec à Montréal (UQAM) et d’autres universitaires suivent la même orientation à l’Université du Québec à Chicoutimi (UQAC). Ces trois universités – UQAT, UQAM et UQAC – sont membres de CONSOREM (Consortium de recherche en exploration minérale) qui étudie les technologies d’exploration minérale au Québec. CONSOREM représente un lien entre les différents membres et partenaires de l’industrie minérale, provenant de l’industrie, du gouvernement et des milieux éducationnels (universités). Michel Aubertin et ses collègues de l’École Polytechnique de Montréal


innovation | COLUMNS

research requests from its member companies. As well, executive director Yves Harvey serves on CMIC’s board as our treasurer. A regionally significant research organization of note is Le Groupe MISA, whose mandate is to drive mining research in the Abitibi-Témiscamingue region of Quebec. MISA has funded considerable work in the area over the past few years, including projects in geosciences, drilling, mining extraction, energy efficiency, environment and HQP training.

CMIC A major player in CMIC’s own programming that I would like to acknowl-

découvrent aussi de nouvelles pistes dans le domaine de l’innovation, surtout par la Chaire de recherche industrielle CRSNG en environnement et gestion des rejets miniers. L’Université Laval travaille avec DIVEX (Diversification de l’exploration minérale au Québec), un réseau géoscientifique d’environ trente chercheurs ayant pour objectif de diversifier l’exploration minérale à l’aide de la recherche scientifique.

Recherche et services Un acteur important de la scène de l’innovation au Québec est Pierre Bérubé, président d’Abitibi Géophysique. Son personnel et lui effectuent des travaux remarquables dans le domaine de la technologie de l’exploration : leurs nouveaux outils de suivi géophysique sont impressionnants et ils ont aussi fondé une entreprise unique à Val-d’Or, Géopolis, qui intègre sous un même toit onze compagnies « reliées à la géologie.» Cette occasion de créer des synergies entre

edge is François Robert, vice-president and chief geologist – global exploration, at Barrick Gold. Robert currently champions CMIC’s exploration initiative and has been instrumental in helping it arrive at a consensus on the major themes upon which exploration research in Canada needs to focus. The committee’s structure, established by Robert and his group, is now being copied by other CMIC initiatives. I applaud the support that mining research receives in Quebec and hope it will continue well

into the future. With numerous proposed large iron projects slated for northern Quebec and adjacent Labrador, it is clear that the iron industry will greatly benefit from new research efforts to ensure the profitability of these immense, remote and difficult to process deposits. CIM

les compagnies constitue un atout pour la région de l’Abitibi et pour tout le Québec. Un autre contributeur important à l’innovation minière est le COREM (Consortium de recherche appliquée en traitement et transformation des substances minérales), situé dans la Ville de Québec. Bien que le COREM ait été confronté à de nombreux défis dans le passé, ses luttes ont porté fruit; en effet, il peine aujourd’hui à répondre à la demande de recherche de ses compagnies membres. De plus, le directeur exécutif, Yves Harvey, est aussi trésorier du CCIM. Un organisme régional important digne de mention est Le Groupe MISA, dont le mandat est de promouvoir la recherche minière en Abitibi-Témiscamingue. MISA a financé de nombreux travaux dans la région au cours des dernières années, incluant des projets en géosciences, en forage, en extraction minière, en efficacité énergétique, en environnement et en formation de personnel hautement qualifié.

CCIM

author

Tom Hynes has worked in the uranium and base metals industries, and has been a provincial regulator and a federal government research manager. He is the executive director of the Canada Mining Innovation Council.

Il ne faudrait pas oublier un important intervenant dans la programmation du CCIM, François Robert, vice-président et géologue en chef – exploration mondiale, à la Société aurifère Barrick. M. Robert parraine actuellement l’initiative d’exploration du CCIM et il a joué un rôle déterminant pour établir un consensus sur les orientations de la recherche en exploration au Canada. La structure du comité, telle qu’établie par M. Robert et son équipe, est maintenant reprise par d’autres initiatives du CCIM. Je me réjouis du soutien que reçoit la recherche minière au Québec et j’espère qu’il continuera longtemps. Avec les nombreux gros projets de minerai de fer prévus pour le Nord du Québec et le Labrador, il est évident que l’industrie du minerai de fer bénéficiera grandement des efforts de recherche qui visent à assurer la rentabilité de ces immenses gisements éloignés et difficiles à traiter. ICM November 2011 | 65


COLUMNS

| standards

NI 43-101 news you need to know Luc Arsenault and Alexandra Lee

The short form trigger The Canadian Securities Administrators (CSA) has published a new version of National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101), which came into effect on June 30, 2011. One significant change relates to the requirement to file a technical report in support of disclosure made in a short form prospectus. Since June 30, 2011, issuers are only required to file a technical report in connection with a preliminary short form prospectus when it contains first-time disclosure of: mineral resources, mineral reserves or the results of a preliminary economic assessment that constitute a material change in relation to the issuer; or a change in this information since the previously filed technical report, if the change constitutes a material change. This change clarifies the situations when a new technical report must be filed and reduces the uncertainty issuers had before. As a result of this relaxed requirement, an issuer will be allowed to file a preliminary short form prospectus that contains scientific or technical information (other than the information described above) on a material property without having to file a technical report supporting that information. This can be done as long as the name of the qualified person who prepared or supervised the preparation of the information that forms the basis for the disclosure or who approved the disclosure, is indicated in the prospectus. The CSA believes that the change made to NI 43-101 will allow quicker access to financing in the context of a short form prospectus. It also considers that this change will not adversely affect investors’ protection, for the following reasons: • A technical report will always be required to support a prospectus that contains first-time disclosure of mineral resources, mineral reserves or the results of a preliminary economic assessment that constitute a material change in relation to the issuer. • A qualified person will be responsible for all scientific and technical information presented in a prospectus. • An issuer will continue to be required to file a technical report to support all scientific and technical information (not only information relating to mineral resources, mineral reserves or the results of a preliminary economic assessment) contained in the issuer’s annual information form (AIF).

French language requirements It is not uncommon for issuers to experience timing issues with short form prospectus offerings due to a lack of understanding of certain requirements relating to the language in which documents must be filed in Quebec. 66 | CIM Magazine | Vol. 6, No. 7

When issuers conduct an offering in Quebec under the short form prospectus regime, the short form prospectus and all documents incorporated by reference must be prepared in French, or in both official languages. This includes technical reports that may have been incorporated by reference into the AIF. Item 5.4 of Form 51-102F2 Annual Information Form prescribes the information that must be included in an AIF or prospectus to describe material mineral properties in order to provide full, true and plain disclosure. There are two ways of complying with this requirement: one that will not require that the technical report be prepared in French and one that will.

Règlement 43-101 : ce que vous devez savoir Luc Arsenault et Alexandra Lee

Obligation de déposer un rapport technique lors du dépôt d’un prospectus simplifié Les Autorités canadiennes en valeurs mobilières (les « ACVM ») ont publié une nouvelle version du Règlement 43-101 sur l’information concernant les projets miniers (le « Règlement 43-101 ») qui est entrée en vigueur le 30 juin 2011. Une des modifications importantes concerne l’obligation de déposer un rapport technique à l’appui de l’information présentée dans un prospectus simplifié. Depuis le 30 juin 2011, un émetteur est tenu de déposer un rapport technique lors du dépôt d’un prospectus simplifié provisoire seulement si celui-ci présente pour la première fois : i) des ressources minérales, des réserves minérales ou des résultats d’une évaluation économique préliminaire qui constituent un changement important en ce qui concerne l’émetteur; ou ii) un changement dans ces renseignements depuis le dernier rapport technique déposé, si ce changement constitue un changement important. Cette modification clarifie les situations où un nouveau rapport technique devra être déposé et réduit l’incertitude que les émetteurs avaient auparavant. Dorénavant, un émetteur pourra déposer un prospectus simplifié provisoire comprenant des renseignements scientifiques ou techniques qui se rapportent à un terrain important, autres que ceux présentés dans les circonstances décrites ci-dessus, sans être tenu de déposer un rapport technique à l’appui de ces renseignements, si le prospectus indique le nom de la personne qualifiée qui a approuvé la présentation des renseignements ou de celle qui les a établis ou en a supervisé l’établissement.


normes | COLUMNS

An issuer may satisfy the requirements of Item 5.4 by providing all the information on its material properties directly in the AIF. In that case, there is no obligation to have the supporting technical report prepared in French, because it has not been incorporated by reference into the AIF. Pursuant to instruction (ii) of Item 5.4, an issuer may also satisfy the requirements of Item 5.4 by reproducing the summary from the technical report in its AIF, if it also incorporates, by reference, its technical report into its AIF. In this case, the issuer will be required to have a technical report prepared in French and filed at the time it files its preliminary short form prospectus. For more information, please consult the April 8, 2011, CSA Notice concerning the replacement of

NI 43-101 and accompanying documents available at www.lautorite.qc.ca, as well as the websites of other CSA jurisdictions. CIM

Les ACVM croient que cette modification permettra de faciliter l’accès au financement par le biais du régime du prospectus simplifié et que cette modification ne portera pas atteinte à la protection des investisseurs pour les raisons suivantes : • un rapport technique sera toujours exigé pour appuyer un prospectus qui fait état pour la première fois de ressources minérales, de réserves minérales ou des résultats d’une évaluation économique préliminaire qui constituent un changement important pour l’émetteur; • une personne qualifiée sera responsable de toute l’information scientifique ou technique présentée dans un prospectus; • un rapport technique continuera d’être exigé pour appuyer toute l’information scientifique ou technique (et non seulement l’information sur les ressources, les réserves et les résultats d’une évaluation économique préliminaire) contenue dans une notice annuelle.

importants afin de présenter cette information de façon complète, véridique et claire. Il y a deux façons de satisfaire à cette obligation : une qui ne requiert pas que le rapport technique soit établi en français et l’autre qui le requiert. Un émetteur peut satisfaire les exigences de la rubrique 5.4 en présentant toute l’information sur ses terrains importants directement dans la notice annuelle. Dans ce cas, il n’aura pas l’obligation d’établir un rapport technique en français puisque ce dernier n’est pas intégré par renvoi dans la notice annuelle. Un émetteur peut également, conformément à l’instruction ii) de la rubrique 5.4, satisfaire les exigences de la rubrique 5.4 en reproduisant le résumé du rapport technique dans sa notice annuelle et en y intégrant par renvoi l’information détaillée figurant dans ce rapport. Dans ce cas, l’émetteur sera tenu d’établir et de déposer un rapport technique en français au moment du dépôt du prospectus simplifié provisoire. Pour en savoir davantage, veuillez consulter l’avis de publication des ACVM du 8 avril 2011 concernant le remplacement du Règlement 43-101 et les documents connexes disponibles au www.lautorite.qc.ca et aux sites Web des autres membres des ACVM. ICM

L’obligation d’établir un rapport technique en français Il arrive que des émetteurs encourent certains délais dans leurs projets de financement par prospectus simplifié à cause d’un manque de compréhension quant aux obligations liées à la langue des documents devant être déposés au Québec. Dans le cadre d’un placement fait au Québec sous le régime du prospectus simplifié, le prospectus simplifié et les documents intégrés par renvoi doivent être établis en français ou dans les deux langues officielles, y compris les rapports techniques si ceux-ci sont intégrés par renvoi dans une notice annuelle. La rubrique 5.4 de l’Annexe 51-102A2, Notice annuelle prescrit l’information que doit comprendre une notice annuelle ou un prospectus pour décrire les terrains miniers

The opinions/statements expressed in this article are those of the authors and do not necessarily represent those of l’Autorité des marchés financiers.

authorS Luc Arsenault is a geologist and Alexandra Lee is a senior policy advisor, both with the Autorité des marchés financiers. The authors participated in the drafting of the new National Instrument 43-101 Standards of Disclosure for Mineral Projects.

Les opinions exprimées dans cet article sont celles des auteurs et peuvent ne pas refléter celles de l’Autorité des marchés financiers.

autEurS Luc Arsenault est géologue et Alexandra Lee est conseillère en réglementation à l’Autorité des marchés financiers. Les auteurs ont participé à l’élaboration du nouveau Règlement 43-101 sur l’information concernant les projets miniers. November 2011 | 67


COLUMNS

| women in mining

Doing it right the first time How Louise Grondin is bridging the gap between mining and communities Heather Ednie beginning, we understood that as the only game in town, we could have a tremendous impact on the communities, be it good or bad,” explains Grondin. “We worked closely with the Hamlet Council to better understand each other. We were bringing hope to a depressed area and we didn’t want to disappoint.” With only a three-year timeline to build the operation, an aggressive construction schedule thrust community relations into high gear. “The [Agnico-Eagle] board visited the village of Baker Lake so that it would be in their minds when making decisions,” she says. “It’s important that they see the community, beyond its infrastructure. In fact, they visit all our operations in turn. It is our role to feed them information about the projects and the communities, but they need this foundation of understanding.”

Bien faire du premier coup Louise Grondin auditing spill response practices at Meadowbank Mine’s Portage pit

Louise Grondin is passionate about her job. AgnicoEagle Limited’s senior vice-president, environment and sustainable development is spearheading the corporate drive to ensure environmental policies are applied across all operations and that all stakeholder relations are prioritized. “In essence, my role is to ensure that environmental and community relations issues are taken care of at the same level as production and safety issues, because it is now part of good management,” she says. “It requires people on the ground at all operations and having environmental management plans in place while looking ahead to evaluate potential risk.” Grondin spends a lot of her time travelling to AgnicoEagle’s various operations in Canada, Mexico and Finland. She ensures everyone adheres to corporate standards, and she herself helps enable greater sharing of best practices, providing a link between the various sites.

Starting off on the right foot “Good management and planning are key,” says Grondin. “If we spend all day fighting fires, we will not move forward. I’m fortunate in that I don’t have to convince people of that – our employees push for best practices.” In 2007, Agnico-Eagle acquired the Meadowbank property in Nunavut and jumped in with both feet, working with Northern and Aboriginal communities. “From the 68 | CIM Magazine | Vol. 6, No. 7

Comment Louise Grondin comble le fossé entre les mines et les communautés Louise Grondin trouve son travail passionnant. En tant que vice-présidente principale, environnement et développement durable, Agnico-Eagle Limitée, elle est responsable de la volonté corporative d’assurer que les politiques environnementales sont mises en œuvre dans toutes les exploitations et que les relations avec les intervenants sont toutes placées au premier rang. « En fait, mon rôle est d’assurer que les questions environnementales et de relations communautaires sont traitées au même niveau que celles de la production et de la sécurité », dit-elle. « Il faut des gens sur le terrain et des plans de gestion environnementale en place dans toutes les opérations, sans négliger l’évaluation des risques potentiels. » Mme Grondin voyage beaucoup entre les diverses exploitations d’Agnico-Eagle au Canada, au Mexique et en Finlande. Elle assure le suivi des normes corporatives, partageant elle-même les meilleures pratiques en établissant des liens entre les sites.

Partir du bon pied « Une bonne gestion et une bonne planification sont la clé », dit Mme Grondin. « Si nous passons toute la journée à éteindre des feux, nous ne pourrons pas avancer. Je suis chanceuse de ne pas avoir à convaincre les gens – nos employés nous poussent vers les meilleures pratiques. »


les femmes en exploitation minière | COLUMNS

Grondin and her team worked with the mayor, making every possible effort to listen to the community and respond to their questions and concerns. “With such an aggressive development plan, we were bringing about big change – and quite fast,” she recalls. “The key to it all is communication.”

A learning opportunity While she spends a lot of her time sharing her experience, Grondin says she learns a lot from the communities as well. For example, the Kittila operation in Finland showed her the importance of cultural awareness. “Yes, language is a bit of a barrier, but the cultural differences came as somewhat of a surprise,” she says. “In general, the Finns are very pragmatic and think more long term than North Americans. For effective communication, we must adapt to the way they think.” Grondin sees potential for growth, even in areas that seem to have a handle on operations. “At the Pinos Altos operation in Mexico, there’s a lot of mining experience – they know what they are doing,” Grondin says. “However,

Agnico-Eagle a acquis la propriété Meadowbank au Nunavut en 2007; la compagnie s’y est pleinement engagée, travaillant avec les communautés autochtones et du Nord. « Dès le début, nous avons compris qu’en tant que seule mine dans la région, nous aurions un immense impact, bon ou mauvais, sur les communautés », explique Mme Grondin. « Nous avons travaillé étroitement avec le conseil du village afin de mieux nous comprendre. Nous apportions de l’espoir à une région défavorisée, nous ne voulions pas décevoir les gens. » L’échéancier de construction serré, seulement trois ans, nous a forcé à développer rapidement nos relations avec la communauté. « Les membres du conseil d’administration [d’Agnico-Eagle] ont visité le village de Baker Lake afin d’en avoir une image claire lorsque des décisions seront prises », dit-elle. « Ils visitent toutes les exploitations; il est important de voir la communauté où nous insérons nos infrastructures. Nous informons le conseil sur les projets et les communautés, mais ils ont besoin d’une bonne compréhension du milieu. » Mme Grondin et son équipe ont travaillé avec le maire, écoutant la communauté le plus possible et répondant aux questions et aux inquiétudes. « Avec un tel plan de développement, nous apportions de grands changements – à un rythme accéléré. La clé du succès est la communication. »

Une occasion d’apprentissage Bien qu’elle passe beaucoup de temps à partager son expérience, Mme Grondin dit qu’elle apprend beaucoup des communautés. Par exemple, l’exploitation Kittila en

we can get much more involved with the small communities, and we’re in a position to help them.” Agnico-Eagle aims to employ as many people as possible from the local areas. ”This can happen through a constant presence in the community, learning about what is going on and what their needs are, and showing them we’re there to stay.” She adds that the Pinos Altos community relations department is partly staffed with residents of the local communities and works closely with them in terms of training, helping schools and providing supplementary health care. More than 99 per cent of the mine employees are from Mexico. As an industry, Grondin believes more must be done to improve the image of mining, and one approach is through the mining associations. “We must place increased peer pressure on the bad actors to adhere to performance standards,” she explains. “Everyone suffers because of the damage done by just a few bad apples. If every company truly understood the impact they have from the very first day on the ground, it would benefit us all. From A to Z, from drilling to closure, it must be done properly. There’s no other acceptable option.” CIM

Finlande lui a montré l’importance de la sensibilisation culturelle. « Oui, la langue constitue une barrière, mais les différences culturelles m’ont un peu surprise », dit-elle. En général, les Finlandais sont très pragmatiques et ils pensent à plus long terme que les Nord-Américains; nous devons nous adapter à leur mode de pensée. » Mme Grondin voit le potentiel de croissance, même là où l’exploitation semble bien rodée. « À la mine Pinos Altos, au Mexique, les mineurs sont très expérimentés », dit Mme Grondin. « Toutefois, nous pouvons nous impliquer beaucoup plus auprès des petites communautés; nous pouvons les aider par une présence constante dans la communauté, en sachant ce qui se passe, en connaissant leurs besoins et en leur montrant que nous sommes ici pour rester. » Elle ajoute que le département des relations communautaires de Pinos Altos comporte des employés des communautés locales avec lesquelles il travaille en étroite collaboration pour la formation, l’aide aux écoles et la fourniture de soins de santé supplémentaires. Plus de 99 pour cent des employés de la mine proviennent du Mexique. Mme Grondin croit qu’il faudrait faire plus pour améliorer l’image des mines; entre autres avec l’aide des associations minières. « Tous souffrent des dommages causés par quelques-uns. Si les compagnies comprenaient vraiment l’impact qu’elles ont dès les premiers jours, des forages à la fermeture, cela serait bénéfique pour tous. Il faut que tout soit fait correctement, de A à Z. Il n’y a pas d’autre option », explique-t-elle. ICM November 2011 | 69


COLUMNS

| regard sur les affaires

Le Plan Nord : Le grand plan pour le Nord du Québec Charles Kazaz et Jean Masson Le projet Renard de Stornoway pourra progressé plus rapidement que prévu grâce au prolongement de la Route 167. Des employés échantillonnent l’eau.

Le territoire Le Plan Nord se déploie sur un territoire immense, soit 72 pour cent du territoire du Québec, près de 1,2 millions km2. Ce territoire se divise en trois régions (i) la Baie-James (Eeyou Istchee) où sont concentrées les communautés cries; (ii) le Nunavik, territoire des Inuits et (iii) la Côte-Nord et la fosse du Labrador, où sont concentrées la nation naskapie et les communautés innues. Une importante portion du territoire est assujettie à des traités et des ententes modernes conclus entre le Québec et les communautés autochtones. Les compagnies minières désireuses de développer des projets dans le Nord du Québec devront établir des relations avec les communautés autochtones.

Les infrastructures Le développement d’un aussi vaste territoire pose des défis considérables en matière d’infrastructures de transport d’énergie et de télécommunications. Les coûts reliés à la construction de ces infrastructures seront considérables en raison de l’immensité du territoire et des conditions environnementales. Le Plan Nord propose de confier à la Société du Plan Nord le mandat de coordonner les investissements publics et d’encourager les partenaires privés à participer au financement des infrastructures à caractère public construites en premier lieu pour leur bénéfice. Une formule de partage de coûts entre les partenaires privés, les utilisateurs et le gouvernement, sera établie pour les projets majeurs. Le Premier plan quinquennal du Plan Nord prévoit d’ailleurs des investissements de 1193 M $ en infrastructures. 70 | CIM Magazine | Vol. 6, No. 7

Courtoisie de Stornoway Diamond Corporation

En mai 2011, le Premier ministre Jean Charest a annoncé le lancement du Plan Nord qui vise le développement du territoire du Québec situé au nord du 49e parallèle sur un horizon de 25 ans. Il s’agit d’un projet visionnaire et ambitieux qui repousse les frontières naturelles du Québec et ouvre l’accès à un territoire riche en ressources naturelles à découvrir et à exploiter. Le territoire couvert par le Plan Nord est immense et son développement comporte de nombreux défis. Dans ce contexte, la capacité du gouvernement de créer un climat social, règlementaire et financier propice aux investissements sera un élément déterminant dans la réalisation du Plan. L’industrie minière devrait être la force motrice de la réalisation du Plan.

Le gouvernement du Québec s’est engagé à développer 3500 MW d’énergie additionnelle au coût estimé de 25 milliards de dollars pour répondre aux besoins des communautés nordiques et des projets industriels. Il n’y a actuellement pas d’indications sur les modalités de financement de ces projets.

Le cadre financier La réalisation du Plan Nord sur une période de 25 ans suppose un appui gouvernemental soutenu dédié aux infrastructures du Plan Nord et nécessite la mise en place d’une structure de financement à caractère permanent et prévisible tant pour le gouvernement que pour les autres parties prenantes. Afin d’atteindre cet objectif, deux mesures méritent d’être notées. En premier lieu, le gouvernement mettra en place le Fonds du Plan Nord qui sera dédié à la réalisation du Plan. Il sera alimenté par une partie des retombées fiscales provenant des activités économiques réalisées sur ce territoire. Dans son budget 2011, le gouvernement envisage de transférer au Fonds plus de 2,1 milliards de dollars de revenus fiscaux au cours des prochains 25 ans. Ensuite, le Québec a annoncé la mise à la disposition d’Investissement Québec d’une somme de 500 M $ qui pourra être utilisée pour des prises de participation dans des projets porteurs et structurants situés dans le territoire du Plan Nord.

La Société du Plan Nord La réalisation d’un projet aussi complexe et ambitieux sur un territoire aussi immense suppose un haut degré de


regard sur les affaires | COLUMNS coordination. Pour faciliter la réalisation du Plan, Québec constituera une nouvelle agence, la Société du Plan Nord. Sa mission sera de contribuer au développement intégré et cohérent du territoire en fonction des plans quinquennaux élaborés par le gouvernement. Elle devra élaborer un plan stratégique soumis à l’approbation du gouvernement. Après approbation, la Société pourra utiliser les fonds qui lui sont consentis à la réalisation financière ou autre des projets contenus dans son plan stratégique

Développement minier Le développement minier sera au cœur du développement économique du territoire. Le territoire du Plan Nord a été témoin de travaux miniers sans précédents en 2009, 50 pour cent des investissements relatifs à l’exploration et à l’exploitation minière, (958 M $), ont été réalisés sur ce territoire.

La protection de l’environnement Le développement durable et la protection de l’environnement sont au cœur du Plan Nord : les réalités nordiques y sont particulièrement sensibles et les écosystèmes du Nord sont complexes en raison du vaste territoire et de la dynamique des changements climatiques qui caractérisent le territoire. Les projets miniers nécessiteront l’obtention de permis octroyés au terme de processus d’analyses environnementales

et sociales rigoureuses réalisées par les organismes qui comprennent des représentants des Premières nations et des Inuits. Un des défis du gouvernement sera de s’assurer que ces agences bénéficieront des ressources qui leur permettront de réaliser les études environnementales à l’intérieur de paramètres raisonnables. Également, un des objectifs du Plan est de soustraire au développement industriel 50 pour cent du territoire et de créer un réseau d’aires protégées couvrant au minimum 12 % du territoire d’ici 2015 En conclusion, le Plan Nord est un projet de société qui définira le Québec pour des générations à venir. Il propose des défis importants à l’ensemble des parties prenantes dont le secteur minier, la force motrice de ce Plan. Nul doute que l’industrie minière, réputée pour son innovation, saura saisir toutes les opportunités qu’offre ce Plan. ICM

autEurS Charles Kazaz et Jean Masson sont des associés de Fasken Martineau DuMoulin et membres de l’Équipe Plan Nord.

November 2011 | 71


COLUMNS

| eye on business

Plan Nord: The grand plan for Northern Quebec Charles Kazaz and Jean Masson In May 2011, Premier Jean Charest announced the launch of the Plan Nord initiative, which provides for the development of Quebec’s territory north of the 49th parallel over the next 25 years. This ambitious project will extend Quebec’s natural frontiers, opening up a vast territory rich in natural resources to discovery and development. The territory covered under the plan is immense and will undoubtedly lead to challenges in respect to development. The government’s ability to create favourable social, labour, regulatory and financial conditions to attract investment will be critical to implementing the plan. Due to its geographical reach, the mining industry is expected to be the driving force behind its execution.

The territory Plan Nord will cover a land mass of almost 1.2 million square kilometres (about 72 per cent of the province). The territory is comprised of three regions: James Bay (Eeyou Istchee), with a concentration of Cree communities; Nunavik, inhabited by Inuit communities; and the North Shore and Labrador Trough, where the Naskapi Nation and Innu communities are situated. A large portion of the plan’s territory is governed by modern treaties between Quebec and Aboriginal communities. Mining companies that seek to develop projects in Northern Quebec must first establish relationships with the Aboriginal communities.

• First, the Fonds du Plan Nord (the “fund”) dedicated to implementing the plan will be established. It will be funded by a portion of the tax revenues it receives from natural resources development. In its 2011 budget, the government indicated that it plans to transfer about $2.1 billion in tax revenues to the fund over the next 25 years. • Second, Quebec has announced that $500 million would be made available to Investissement Québec for equity participation in high-benefit projects leading to the development of the Plan Nord territory.

Société du Plan Nord A new agency, the Société du Plan Nord, will assist in the execution of the plan. Its intended purpose is to contribute to the integrated and coherent development of the area in accordance with five-year “sub” plans prepared by the government. The Société will establish a strategic plan that will be subject to government approval. Once approved, the Société can use the funds it is granted to contribute financially or otherwise to the projects within its strategic plan.

Mineral development It is expected that mineral development will be the core economic activity in the territory, which has seen unprecedented mineral exploration work. In 2009, 50 per cent of all investment in mineral exploration and mining ($958 million) was in the plan’s territory.

Infrastructure

Environmental protection

Development in the territory will require transportation, energy and communications infrastructure. The cost of setting this up will be significant given the vastness of the territory and local environmental conditions. The plan proposes to entrust the Société du Plan Nord with coordinating public investments and encouraging private sector contribution to finance public infrastructure built initially for its benefit. A cost-sharing formula between private partners, users and the government will be established for major projects. The plan’s first phase (five years) will comprise $1.193 billion in investments in infrastructure. In addition, Quebec has committed to developing 3,500 megawatts of additional energy, at an estimated cost of $25 billion, to meet the needs of northern communities and industrial projects. Currently, there is no indication as to how these projects will be financed.

Sustainable development and environmental protection are at the core of the plan. The ecosystems of the North are complex due to the vastness of the territory and the dynamics of the changing climate. Mining projects will require permits after rigorous social and environmental impact assessments are conducted by agencies that include First Nation and Inuit representatives. One of the government’s challenges in implementing the plan will be its ability to properly fund regulatory agencies, so as to conduct environmental reviews in a timely manner. Furthermore, an objective is to prohibit industrial use on 50 per cent of the territory and to create a network of protected areas covering at least 12 per cent of the Plan Nord territory by 2015. Plan Nord is a societal project that will shape Quebec for generations to come. CIM

Financial framework With a projected 25-year lifespan, the plan will require sustained government support to develop infrastructure and ensure ongoing and permanent funding. To this end, we note two measures: 72 | CIM Magazine | Vol. 6, No. 7

authorS

Charles Kazaz and Jean Masson are partners at the Montreal office of Fasken Martineau DuMoulin and members of its Plan Nord Team.


metals monitor | COLUMNS

PAI slides as difficult market conditions outweigh record-breaking drilling activity Metals Economics Group The Metals Economics Group’s Pipeline Activity Index (PAI) decreased for the second consecutive month in July, then slightly improved in August on the back of a record number of significant drill results. Both months remained below the PAI’s 2011 year-to-date average and well short of the March 2011 high, as the increased exploration activity was not enough to counteract uneasy markets that are making raising capital difficult, particularly for base metals companies. The industry’s aggregate market cap increased slightly to $2.35 billion in July, before fears of stagnant global economic growth and a potential double-dip recession dragged market caps down to $2.19 billion in August – the lowest level since November 2010. The number of significant drill results announced hit a record high in August, increasing for the fourth consecutive month. Gold explorers continue to be motivated by record-breaking bullion prices, while copper- and silverfocused exploration has helped drive the number of base metals results to their highest levels since before the 20082009 recession. As has been the case throughout most of 2011, North America and Latin America continue to be the dominant regions for successful drilling, with Africa also contributing significantly to gold results, and Australia-Pacific accounting for 25 per cent of the base metals announcements in July and August. The number of initial resource announcements made in July and August is the lowest two-month total since July-

August 2010. This may partly be explained by seasonal factors, such as a focus on summertime exploration programs. Probe Mines’ Borden Lake project in Ontario, with 4.06 million ounces of contained gold, and Atacama Pacific Gold’s Cerro Maricunga project in Chile, with 3.56 million ounces, were the two largest initial resources announced in the period. The number of significant financings (US$2 million minimum) completed remained relatively steady in July, before market tumult resulted in only 56 financings closing in August – the lowest one-month total in more than a year. The two-month total was 10 per cent higher than the May-June total, but included $438 million raised by Detour Gold for development of its 20-million-ounce Detour Lake gold project in Ontario. Difficult market conditions had an even stronger impact on base metals companies, as the amount raised in JulyAugust failed to top $1 billion for the first time since January-February 2010. CIM

MEG Pipeline Activity Index (PAI), September 2011

Significant drill results announced

For more information on the PAI, visit www.metalseconomics.com.

author

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

Source: MEG Industry Monitor; MineSearch; Exploration Activity Services © Copyright 2011 Metals Economics Group

November 2011 | 73


Upcoming 2011 Seminars NEW — Certification in Ore Reserve Risk and Mine Planning Optimization Spread over a period of four months, this four-week course is designed for busy mining professionals who wish to update their skills and knowledge base in modern modelling techniques for ore bodies and new risk-based optimization methodologies for strategic mine planning. Gain practical experience by applying the following hands-on concepts and technical methods: methods for modelling ore bodies; stochastic simulations, case studies and models of geological uncertainty; and demand-driven production scheduling and geological risk. Instructor: Roussos Dimitrakopoulos, McGill University, Canada • Dates: TBD • City: Montreal, Quebec, Canada • Info: www.mcgill.ca/conted/prodep/ore

Strategic Risk Management in Mine Design: From Life-of-Mine to Global Optimization Learn how you can have a significant, positive impact on your company’s bottom line by utilizing strategic mine planning methodologies and software; improve your understanding of strategic mine planning and life-of-mine optimization concepts, as well as your understanding of the relationship of uncertainty and risk, and how to exploit uncertainty in order to maximize profitability. Note: The strategic mine planning software used is Whittle; an optional half-day skills refresher workshop on Whittle may be available. Instructors: Gelson Batista, MPX, Brazil, and Roussos Dimitrakopoulos, McGill University, Canada • Date: March 2012 • City: Toronto, Ontario, Canada

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, Newmont Mining Corporation, USA • Date: September 2012 • City: Montreal, Quebec, Canada

Geostatistical Mineral Resource/Ore Reserve Estimation and Meeting the New Regulatory Environment: Step by Step from Sampling to Grade Control Learn about the latest regulations on public reporting of resources/reserves through state-of-the-art statistical and geostatistical techniques, how to apply geostatistics to predict dilution and adapt reserve estimates to that predicted dilution, how geostatistics can help you categorize your resources in an objective manner, and how to understand principles of NI 43-101 and the SME Guide. Instructors: Marcelo Godoy, Golder Associates, Chile, JeanMichel Rendu, Newmont Mining Corporation, USA, and Roussos Dimitrakopoulos, McGill University, Canada • Date: September 2012 • City: Montreal, Quebec, Canada

Mineral Project Evaluation Techniques and Applications: From Conventional Methods to Real Options

An Introduction to Cutoff Grade Estimation: Theory and Practice in Open Pit and Underground Mines

Learn the basics of economic/financial evaluation techniques, as well as the practical implementation of these techniques to mineral project assessments, how to gain a practical understanding of economic/ financial evaluation principles, and how to develop the skills necessary to apply these to support mineral project decisions.

Cutoff grades are essential in determining the economic feasibility and mine life of a project. Learn how to solve

Instructor: Michel Bilodeau, McGill University, Canada • Date: October 2012 • City: Montreal, Quebec, Canada


aboriginal perspectives | COLUMNS

First Nations land rights Juan Carlos Reyes Essentially, the most productive time in the relationship between Aboriginal communities and the minerals industry began only a short while ago in 2004. Since then, we have witnessed a broad spectrum of situations, from difficult struggles – imprisonment and moratoriums, for example – to inspirational examples of sustainable revenue sharing. Despite a rocky past, I believe a prosperous future lies ahead. In my last article (CIM Magazine, August 2011 issue), I wrote about the tenacity of the Odawa leader Pontiac before and during Pontiac’s War. His determination in bringing together other leaders to fight for native rights is the reason our Canadian border is as far south as it is. During the war, the British were signing truces with France. They also believed that without making peace with the Aboriginals, they would suffer setbacks. As a result, King George III enacted the Royal Proclamation of 1763, a document that quickly became known as the Aboriginal Bill of Rights. It recognized that Aboriginals lived on traditional lands, but that interest in those lands belonged to groups or nations, not individuals, and therefore only the Crown could buy or accept Aboriginal lands. The proclamation also stipulated that the Crown would require an agreement to obtain lands from Aboriginal Peoples who were under the Crown’s protection. Three quarters of a century later, an alarming situation occurred. The Mica Bay incident of 1849 – where a group of Aboriginals forcibly took over a mining operation – caused the government to mobilize 100 rifles in order to stop what they referred to as the “Indian uprising.” The Governor General, Lord Elgin, saw a direct link between the incident and land cession. He publicly expressed his disappointment in the regional government for not extinguishing Indian claim before

licenses for exploration or grants of lands were permitted. The first legal case dealing with Aboriginal land title and access followed the Mica Bay incident. In 1888, in St. Catherines Milling v. The Queen, the Privy Council held that Aboriginal title over land was allowed only at the Crown’s pleasure and could be taken away at any time. Ironically, although this pivotal case would decide the fate of Canadian Aboriginals for nearly a century, not one Aboriginal was ever invited to appear before the courts. Aboriginal interest in land development would not be seriously considered in court until the 1967 Calder challenge. Frank Calder, of the Nisga’a Nation, challenged the Government of British Columbia, declaring that Aboriginal title to certain lands in the province had never been lawfully extinguished. In 1973, the Supreme Court of Canada ruled that Aboriginal rights to land had existed at the time of the Royal Proclamation. This was the first time the Canadian legal system acknowledged the existence of Aboriginal title to land and that such title existed outside of, and was not simply derived from, colonial law. In deciding whether this legal ownership still existed, the judges were split: three believed that Aboriginals still had title to the land and three argued that the Aboriginals had ceded their title to the Crown. A seventh judge dismissed the case on a technicality. The most significant piece of legislation regarding Aboriginal land and

title rights was introduced in 1982 as section 35 of the Constitution Act. This section provided constitutional protection to existing Aboriginal and treaty rights – the first time any legislation had done so – and created a legal foundation for the recognition of self-governance. Before this section was introduced, Aboriginal rights existed by virtue of the common law, which could be changed and extinguished by legislation. Since section 35, there have been a series of court battles that have established precedence in cases involving Aboriginal land title and access. One of the most important for the minerals industry is the well-known 2004 Supreme Court interpretation of the Crown’s duty to consult and accommodate. Since this decision, companies have sharply focused their efforts towards building and nurturing Aboriginal relationships and today, First Nations are beginning to participate in industrial developments and enjoy advantageous revenue-sharing agreements. One such example is the signing of a historic agreement between the Stk’emlupsemc of the Secwepemc Nation and the Government of British Columbia that will ensure that about one-third of royalties collected from the New Afton gold-silver-copper mine are returned to the community. Given the legal environment and the high demand for minerals in the world, I believe that the next few years will be incredibly exciting for Aboriginal communities involved in the mining industry. CIM

author Juan Carlos Reyes is one of the founders of Learning Together and has been its executive director since 2008. He has nearly 15 years of mining and Aboriginal development expertise, and has worked tirelessly to promote economic development opportunities in the mining industry for Aboriginal communities.

November 2011 | 75


Mining for salamander wool: Quebec, asbestos and the Industrial Age Correy Baldwin

Courtesy of Library and Archives Canada

for it is not true that those cloths are of the hair of an animal which lives in fire, as one says in our country, but is such a thing as I shall say below; it is a vein of earth.”1 Marco Polo was, in fact, describing what is known today as asbestos. The fibrous mineral had long been used to strengthen earthenware pots and to make garments, rope and candle 1

wicks. But it was not until the Industrial Revolution that asbestos became a valuable and highly sought-after material. As industrial production increased during the 1800s, so too did demand for insulation for the steam pipes, turbines, boilers and kilns of the new industrial age. Asbestos, being fireproof and durable, was perfect for the

Travels Of Marco Polo, Penguin Classic, Re-issue edition (February 3, 2004)

Folklore minier A worker handles asbestos fluff in an asbestos factory in Asbestos, Quebec, June 1944. Photographer: Harry Rowed

I

n the 13th century, the explorer Marco Polo travelled through Asia to the kingdom of the Kublai Khan. On the way he passed through Siberia, where locals showed off a fireresistant material that they claimed was woven out of salamander fur. Myth had it that salamanders were immune to fire – the creatures were often seen scattering through the flames of a campfire, a result of their tendency to hide in firewood. Marco Polo was impressed by the material, but doubtful about the claims as to its origins: “In this same mountain is found a good vein from which the cloth which we call of salamander, which cannot be burnt if it is thrown into the fire, is made, and it is of the best that is found in the world. And you may know in truth that salamander which I speak is not a beast nor serpent, 76 | CIM Magazine | Vol. 6, No. 7

Extraire de la laine de salamandre : le Québec, l’amiante et l’âge industriel

A

u 13e siècle, lorsque l’explorateur Marco Polo était en Sibérie, des gens lui ont montré un matériau résistant au feu qu’ils disaient tissé d’une toison de salamandre. Selon la légende, les salamandres sont immunisées contre le feu – elles étaient vues dans les cendres de feux de camps; elles se cachent en effet dans les piles de bois. Marco Polo était impressionné par le matériau mais doutait de son origine. On trouve sur cette montagne certaine mine de terre, qui produit des filets ayant aspect de laine et dont on fait des étoffes qui ne brûlent pas si elles sont jetées dans le feu. À l’égard de la salamandre, ce n’est ni une bête ni un serpent car il n’est pas vrai que ces étoffes proviennent des poils d’un animal

vivant dans le feu, mais tel que je le dis proviennent d’une veine de terre.1 Marco Polo décrivait l’amiante. Ce matériau fibreux était utilisé depuis longtemps pour renfoncer les pots en terre cuite et pour faire des vêtements, des cordes et autres. Il a cependant fallu attendre la Révolution industrielle pour la mise en valeur de l’amiante. Au fur et à mesure de l’augmentation de la production industrielle durant les années 1800, croissait aussi la demande pour des revêtements isolants pour les tuyaux de vapeur, les turbines, les chaudières et les fours du nouvel âge industriel. L’amiante, ignifuge et durable, répondait parfaitement à ces demandes. Lorsque l’amiante a été découvert au Québec


job. When asbestos was discovered in Quebec in 1876, Canadian entrepreneurs were quick to capitalize.

Quebec’s white gold rush Joseph Fecteau made his 1876 discovery in Quebec’s Thetford township, supposedly while out picking blueberries. The first mines were in operation soon after, run by the Johnson brothers and by William King, who founded the town of Kingsville, which was renamed Thetford Mines in 1905. It was the beginning of a “white gold” rush. A railway was built through the area in 1879 and, in 1881, another large asbestos deposit was discovered in nearby Shipton township, at what would become the town of Asbestos. A miner named Evan William discovered the mineral while visiting his parents; it was on property owned by farmer Charles Webb. Neither William nor Webb had the financial means to open

en 1876, les entrepreneurs canadiens en ont vite tiré profit.

La ruée de l’or blanc du Québec Selon une version de l’histoire, Joseph Fecteau aurait découvert de l’amiante dans le canton de Thetford en 1876 alors qu’il cueillait des bleuets. Les premières mines ont démarré peu de temps après, tout d’abord par les frères Johnson et par William King, qui a fondé la ville de Kingsville, renommée Thetford Mines en 1905. Un autre gisement d’amiante a été découvert en 1881 dans le canton de Shipton, devenu par la suite la ville d’Asbestos. Un mineur, Evan William, l’avait découvert sur une propriété détenue par Charles Webb, un fermier; ni l’un ni l’autre n’avaient les moyens d’ouvrier une mine, mais un riche fermier, William Jeffrey pouvait

1

a mine, but a wealthy farmer named William Jeffrey did, and the Jeffrey Mine opened that same year. The unprecedented industrial production of both World Wars provided a boon to the asbestos industry, and the number of asbestos applications kept growing: insulation; firefighting and military uniforms; aprons and oven mitts; concrete; drywall, roofing and other building materials; brake linings, clutch discs and gaskets; even cigarette filters and artificial snow.

Rise and fall of an industry Production at Thetford Mines and Asbestos increased so much that large sections of towns had to be moved several times to accommodate the expanding mine pits – even the downtown areas had to give way to expansion. The Jeffrey Mine became the largest open-face chrysotile asbestos mine in the world, growing to over two kilometres in diametre and 350

le faire. La mine Jeffrey a ouvert la même année. Les deux Grandes Guerres ont été bénéfiques pour l’industrie de l’amiante et de nouvelles utilisations voient alors le jour : isolation, uniformes de pompiers, disques d’embrayage, mitaines pour le four, voire même des filtres à cigarettes et de la neige artificielle.

Montée et déclin d’une industrie La production et la taille des fosses à Thetford Mines et à Asbestos augmentaient tellement que des parties de ces villes ont dû être déménagées à plusieurs reprises. La mine Jeffrey est devenue la plus grande mine d’amiante chrysotile à ciel ouvert au monde, atteignant deux kilomètres de diamètre et une profondeur de 350 mètres. Thetford Mines est devenue la Capitale mondiale de l’amiante et la Cité de l’or blanc.

metres in depth. Thetford Mines became known as the Capitale mondiale de l’amiante (Asbestos Capital of the World) and the Cité de l’or blanc (City of White Gold). It was one of the largest asbestos-producing regions of the world. But the industry’s glory days came to an end with the discovery of serious health risks associated with asbestos. The first documented death related to asbestos was in 1906, and the first diagnosis of asbestosis (a hardening of the lung lining) was in 1924. However, it was not until the 1960s, when asbestos was linked to mesothelioma (a rare form of cancer), that the industry began to feel the heat. The 1970s brought a wave of lawsuits, resulting in greater safety standards and health benefits – but it would not be enough. International restrictions and bans through the 1980s brought about the near collapse of the industry – and of Quebec’s asbestos mining towns. CIM

Cependant, les jours de gloire de l’industrie se sont terminés lorsqu’il a été découvert que l’amiante causait de sérieux risques pour la santé. Le premier décès documenté, relié à l’amiante, date de 1906 et le premier diagnostic d’amiantose (un durcissement du revêtement des poumons) a été établi en 1924. Toutefois, ce n’est que dans les années 1960, lorsque l’amiante a été lié au mésothéliome (une forme rare de cancer), que l’industrie a commencé à avoir des problèmes. Les années 1970 ont vu de nombreuses poursuites en justice, ce qui a conduit à de normes de sécurité plus strictes et à des indemnités de maladies – mais ce ne sera pas assez. Des restrictions et des interdictions internationales durant les années 1980 ont presque anéanti l’industrie et les villes exploitant l’amiante. ICM

Travels Of Marco Polo, Penguin Classic, (réédition 3 février 2004) et www.amiante-info.ch November 2011 | 77


COLUMNS

| MAC economic commentary

mining.ca

Capital spending and the proposed mining-related investment that lies ahead Paul Stothart The single most important contribution that companies can make to Canada is in the form of capital expenditure. In the mining sphere, capital spending pays for new mine construction and increases to existing mine capacity. It generates process and technology improvements and the modernization and expansion of mills, smelters and refineries. It leads to the implementation of new product lines and improved energy efficiency and environmental performance. When companies commit to a particular capital spending program, the direct result is new jobs, contracts and production, as well as more modern and productive facilities. Capital spending plans are driven by an array of variables, including:

58 | CIM Magazine | Vol. 6, No. 7

projected future global market demand and mineral price trends; degree of confidence in existing plant capacity; level of comfort with host government rules and regulations; and the state of a company’s existing financing capabilities. In 2010, the Canadian mining industry made capital investments of $12.6 billion – up 30 per cent from the economically turbulent previous year – and a further 30 per cent increase is projected for 2011. At mine sites, around twothirds of capital spending is related to construction and one-third to machinery and equipment. This ratio is reversed at the smelting/refining stage where only 20 per cent of spending is on construction and the remainder directed towards machin-

ery and equipment. Of note, a further $4.6 billion was spent by the mining industry in 2010 on “repairs,” generally of machinery and equipment. In 2010, the largest capital expenditures in the metal mining sector occurred in gold-silver mines ($2.1 billion), copper-zinc mines ($940 million), nickel-copper mines ($870 million) and iron ore mines ($700 million). The coal mining industry invested $620 million in capital spending, while among the nonmetallics, potash companies invested $2.4 billion and diamond firms $350 million. In the oil sands, which remains among the world’s leading capital investment hubs, some $11.2 billion was spent in 2010 with $14.3 billion projected for 2011. Oil sands spending is entirely captured within the oil and gas sector, although some portion, probably around half, relates to construction and expansion of oil sands mining facilities. Capital investment in recent years has led to the opening of the Duck Pond, Chisel North and Voisey’s Bay metal mines, the Wolverine coal mine, the Victor and Snap Lake diamond mines, and several gold mines, among others. During mid-2011, the Mining Association of Canada drew upon existing websites, press releases and financial statements to compile an estimate of the amount of capital investment in Canada being proposed by the mining industry over the coming decade. In total, some $136 billion in mining-related projects have been proposed for the coming years. This figure includes multiple billions of dollars in projects in each of the following regions: • Nunavut: gold and iron ore projects by Newmont, Baffinland (ArcelorMittal) and others. • Northwest Territories: rare earth, diamond and gold projects by


MAC economic commentary | COLUMNS Avalon, De Beers, Fortune Minerals and others. • British Columbia: coal mines and gold-copper investments by Teck, Imperial, Taseko and others. • Alberta: mined oil sands projects proposed by Suncor, Syncrude and Shell. • Saskatchewan: diamonds, potash and uranium proposals by Shore Gold, BHP Billiton, Cameco and others. • Ontario: nickel, gold and palladium proposals involving Vale, Goldcorp and others. • Quebec: diamond, nickel and gold projects involving Stornoway, Agnico-Eagle and others. • Newfoundland and Labrador: a nickel processing plant investment by Vale. Most Canadian regions offer exciting potential for new mines. For example, the Legacy potash mine is expected to open in Saskatchewan in 2013, while the Cigar Lake uranium project is presently scheduled to start

production that same year. In diamonds, the Chidliak project on Baffin Island, Gahcho Kue project in the Northwest Territories, Aviat field in Nunavut and Renard project in central Quebec all offer promise, with the latter project likely the most advanced. Beyond the private sector, it should be noted that government can also play an important role through capital investment. The ongoing extension of the Highway 37 transmission line in northeast British Columbia is a good example of the positive impacts of public infrastructure investment. This capital cost of $400 million will enhance the economics of an estimated $15 billion in mineral projects. Similarly, the planned extension of the Route des Monts Otish (Route 167) in northern Quebec, which is part of the Quebec government’s $80 billion Plan Nord initiative, will improve future

prospects for development of gold, diamond, copper and uranium projects in the province’s North. It will also create thousands of jobs and benefit remote communities. This type of government involvement opens up new regions for development. While many of these projects within the $136 billion estimate will undoubtedly face obstacles and delays, this figure nonetheless gives a sense of the scale of mining-related jobs, supply contracts and tax revenues that potentially lie ahead in all Canadian regions. CIM

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

GIVING BACK Mining executive leads the way The chairman of Quadra FNX Mining Company, Terry MacGibbon, is the new chair of Laurentian University’s Next 50 Campaign, which aims to raise $50 million to mark the school’s 50th anniversary. The campaign has raised $39 million of its $50-million goal so far. The money will be used to help pay for Laurentian’s key projects: the Indigenous Sharing and Learning Centre, the school of architecture, a school of mines and an expanded endowment fund that will increase opportunities for researchers, graduate students, and student athletes to excel through the creation of chairs, fellowships and scholarships.

Faculty Position in Mining Engineering (MNG E) The Department of Energy and Mineral Engineering (EME; http://www.eme.psu.edu) at The Pennsylvania State University invites applications for a full-time, tenure-track faculty position at the assistant professor level. The principal research and teaching areas for the position are to be in surface mining, underground mining, mine systems analysis, environmental effects of mining and/or mine ventilation. EME is home to Penn State’s undergraduate degree programs in Petroleum and Natural Gas Engineering, Mining Engineering, Environmental Systems Engineering (with options in environmental systems and environmental health and safety) and Energy Engineering, as well as Energy Business and Finance. The successful applicant will help build and maintain excellence in Penn State’s Mining Engineering program. The candidate will teach undergraduate and graduate courses, supervise graduate students at the MS and PhD levels and carry out an active research program in his/her area of specialization. Candidates should have a doctorate degree in mining engineering or a closely related discipline with a strong background in one of the department’s focus areas. Preference will be given to candidates with industrial experience and appropriate certification (e.g., P.E.). The successful candidate should demonstrate strong communication and presentation skills. Although the search is aimed at the Assistant Professor level, more senior candidates may be considered. Demonstrated ability and willingness to establish an externally funded research program, conduct independent research, and publish scholarly research are expected. Penn State is committed to adding at least 25 new faculty in energy in the next three years (please see articles at: http://www.psiee.psu.edu and http://www.psiee. psu.edu/publications/EnergyReport.pdf) and we expect the new faculty to collaborate with other energy and safetyrelated faculty in the University. Applications should include: (1) a curriculum vitae with educational background and employment history; (2) a statement concerning research and teaching interests; (3) names and addresses of at least three referees; and (4) samples of refereed publications. Send applications at the earliest via regular mail or electronically to: Chair Mining Engineering Search Committee, Department of Energy and Mineral Engineering, 117 Hosler Building, University Park, PA 16802, USA; Fax: (814) 863 5709; Email: rlg19@psu.edu. Penn State is committed to affi rmative action, equal opportunity and the diversity of its workforce.

November 2011 | 59


COLUMNS

| supply side

Quebec’s Plan Nord is a major boost for mining suppliers Jon Baird Companies that supply the mining industry, whether they are located in Quebec, the rest of Canada or abroad, should congratulate the Quebec government for its farsighted, 25-year plan to develop the province’s territory that lies north of the 49th parallel and which accounts for 72 per cent of Quebec’s geographic area. Announced in May 2011, after consultation and consensus with northern peoples, industry and environmentalists, Plan Nord calls for a development project that will be economically, socially and environmentally sound. Listing 11 mine development projects totalling more than $8.4 billion in investment, the plan estimates the creation of approximately 11,000 jobs during construction and 4,000 permanent jobs once production starts. The potential for mining suppliers is substantial. Mineral exploration alone offers major spinoffs for suppliers that consult in the geosciences and provide services such as geophysical surveys and diamond drilling. Considering the enormous geological potential in Northern Quebec, coupled with the potential for enabling infrastructure under Plan Nord, prospectors have been attracted to the area in growing numbers. Suppliers that follow project news will be aware of some of the advanced developments that are already offering opportunities, namely: Goldcorp’s Éléonore gold mine will require an investment of $1.4 billion; Stornoway’s Renard project will become Quebec’s first diamond mine at a cost of $450 million; and Xstrata will invest $530 million to develop a new deposit at Raglan. However, even greater investment will take place in the iron ore industry: ArcelorMittal will invest $2.1 60 | CIM Magazine | Vol. 6, No. 7

billion expanding its Mont-Wright and Port Cartier operations; New Millenium and Tata Steel have announced an iron ore project valued at $4 billion; and Adriana Resources and China’s Wuhan Iron and Steel (Group) Corporation (WISCO) are contemplating an investment of $10 billion, which would become the largest mining project in Canadian history. What percentage of the construction and operating expenses of new mines will provide revenues for mining supply companies? It is hard to estimate, since there is no quantitative study of the indirect benefits

camese.org

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

created by the mining industry. Qualitative evidence would, however, indicate that big benefits will accrue to suppliers. Mining supply has been described by the Conference Board of Canada as a “hidden sector.” This is because supplier firms are considered to be consultants, manufacturers and others that statisticians classify as being outside of the mining industry. Further, even if all such firms were identified, it would be difficult to integrate their data, since some of their revenues may also come from sectors outside of the minerals industry.

Le Plan Nord du Québec : un nouvel élan pour les fournisseurs miniers Les compagnies québécoises, canadiennes ou étrangères qui fournissent l’industrie minière devraient féliciter le gouvernement du Québec pour son plan de développement sur 25 ans de la portion de la province située au nord du 49e parallèle, représentant 72 pour cent de la superficie du Québec. Annoncé en mai 2011, après avoir consulté et obtenu l’accord des peuples nordiques, de l’industrie et des environnementalistes, le Plan Nord vise un développement économique, social et environnemental durable. Comportant 11 projets de développement minier totalisant plus de 8,4 milliards de dollars en investissements, le plan devrait créer environ 11 000 emplois durant la construction et 4000 emplois permanents par la suite. Le potentiel pour les fournisseurs miniers est important.

L’exploration minérale offre à elle seule de nombreuses retombées pour les consultants en géosciences et pour les fournisseurs de services tels que les relevés géophysiques et les forages au diamant. En considérant l’énorme potentiel géologique du Nord du Québec et les infrastructures prévues dans le Plan Nord, les prospecteurs sont de plus en plus attirés vers cette région. Des fournisseurs sont au courant de projets au stade de développement avancé offrant déjà des occasions : la mine d’or Éléonore de Goldcorp qui commandera un investissement de 1,4 milliards de dollars; le projet Renard de Stornoway qui deviendra la première mine de diamants du Québec au coût de 450 millions de dollars et Xstrata qui investira 530 millions de dollars pour développer un nouveau gisement à Raglan.


du côté de l’offre | COLUMNS

Published by the Quebec Mining Association and the Quebec Mineral Exploration Association in 2010, Quebec’s Mineral Industry Cluster identified 3,800 firms in the province that supply the mining industry, of which 1,800 are located in the Montreal region. Acknowledging “major hurdles when it comes to measuring their level of activity,” the report falls short of delivering a quantitative estimate of the impact of mining supply on the economy. In 2010, a study based on an interview methodology carried out for the Ontario North Economic Development Corporation estimated the total value of the mining supply sector in Northern Ontario at $5.6 billion in annual revenue, employing 23,000 people.

In 2007, a study carried out for the Much of the generated economic Ontario Mining Association impact is local to the representative attempted to measure the economic mine; however, in an open economy contribution of a “representative” like Canada’s, the inputs imported mine to the Ontario economy, in both from other provinces and abroad can the construction and operation be quite substantial. This is why Quephases. In addition to the direct eco- bec’s Plan Nord should be celebrated nomic impact of the mine, the study by mining suppliers, not only in Quedelved into the “inputs” bec itself, but around the world. CIM of the mine and the “inputs into the inputs,” many of which come from mining supJon Baird, managing pliers. Briefly, if the director of CAMESE and mine employs 480 the immediate past workers, the total president of PDAC, is employment generated interested in collective is estimated at 2,300 approaches to enhancing jobs, of which some the Canadian brand in the 1,100 could be in minworld of mining. ing supply firms.

Toutefois, l’industrie du minerai de fer connaîtra des investissements encore plus importants : ArcelorMittal investira 2,1 milliards de dollars pour agrandir ses exploitations de Mont Wright et de Port Cartier; New Millenium et Tata Steel ont annoncé un projet de minerai de fer évalué à 4 milliards de dollars et Adriana Resources et la compagnie chinoise WISCO (Wuhan Iron and Steel Group Corporation) étudient un investissement de 10 milliards de dollars, ce qui pourrait mener au plus important projet minier de l’histoire du Canada. Quel sera le pourcentage des dépenses de construction et d’exploitation se traduisant en revenus pour les fournisseurs? C’est difficile à estimer, puisqu’il n’existe aucune étude quantitative des bénéfices indirects créés par l’industrie minérale. Les données qualitatives indiquent toutefois que les fournisseurs devraient faire de bonnes affaires. Le Conference Board of Canada qualifie les fournitures minières de « secteur caché »; en effet, les com-

pagnies fournisseuses comme les consultants, les manufacturiers et autres sont considérées comme externes à l’industrie minière par les statisticiens. Même si toutes ces compagnies étaient identifiées, il serait difficile d’intégrer leurs données, puisqu’une partie de leurs revenus pourrait provenir de secteurs externes à l’industrie minérale. Publié en 2010 par l’Association minière du Québec et l’Association de l’exploration minière du Québec, le rapport de la firme E&B Data « Quebec’s Mineral Industry Cluster » a identifié 3800 compagnies qui fournissent l’industrie minérale, dont 1800 dans la région de Montréal. Reconnaissant des « obstacles majeurs lorsqu’il s’agit de mesurer leur niveau d’activité », le rapport ne quantifie pas l’impact des fournitures minières sur l’économie. En 2010, une étude basée sur une méthodologie d’entrevue effectuée pour le compte de la Ontario North Economic Development Corporation estimait la valeur totale du secteur des fournitures minières dans le Nord de l’Ontario à 5,6 milliards de dollars

author

en revenus annuels, embauchant 23 000 personnes. En 2007, une étude effectuée pour le compte de l’Ontario Mining Association essayait de mesurer la contribution à l’économie ontarienne d’une mine « représentative », dans les phases de construction et d’exploitation. En plus de l’impact économique direct de la mine, l’étude a analysé les « intrants » de la mine et les « intrants aux intrants », dont plusieurs provenaient de fournisseurs miniers. En résumé, si la mine emploie 480 employés, l’embauche totale générée est estimée à 2300 emplois, dont quelque 1100 dans les compagnies de fournitures minières. Une grande partie de l’impact économique généré est local; toutefois, dans une économie ouverte comme celle du Canada, les intrants importés d’autres provinces et de l’étranger peuvent être substantiels. Voilà pourquoi les fournisseurs miniers, non seulement ceux du Québec mais aussi ceux du monde entier, devraient célébrer le Plan Nord du Québec. ICM November 2011 | 61


COLUMNS

| HR outlook

mihr.ca

Mining Essentials: 12 weeks can change the future Work readiness training program for Aboriginal Peoples to launch in January

Aboriginal Peoples have a strong history in Canada’s mining industry. As one of the fastest growing segments of the Canadian population and with Aboriginal communities located in close proximity to many mine sites and operations, they provide a large potential pool of workers for the sector. With the support of the Mining Industry Human Resources Council (MiHR), industry has made tremendous strides to address the human resource issue and to continue to grow the talent pool. MiHR and the Assembly of First Nations (AFN) have worked together and partnered with provincial, territorial and national associations, communities, educators and employers to develop Mining Essentials: A Work Readiness Training Program for Aboriginal Peoples to help companies and communities meet joint hiring and employment targets. Last fall, the program was piloted at Anishinabek Employment and Training Services

62 | CIM Magazine | Vol. 6, No. 7

Courtesy of MiHR

Lindsay Forcellini

Canadian Mining Employment and Hiring Forecasts 2011 indicates seven per cent of the mining workforce selfidentify as being of Aboriginal descent, nearly double the rate for the overall labour force.

(AETS) in Thunder Bay, Ontario; Northwest Community College in Hazelton, British Columbia; and

Anishinaabeg of Kabapikotawangag Resource Council in Kenora, Ontario.


HR outlook | COLUMNS Mining Essentials teaches industryvalidated, essential non-technical skills and training required for an individual to be considered for an entry-level position in the mining industry. The program incorporates both industry and traditional cultures for a unique learning experience, thus increasing the probability of graduates of the program gaining employment in one of Canada’s highest paying industrial sectors. Mining Essentials enables companies to benefit from a local, skilled and empowered workforce; it also fosters economic development that results in healthy communities.

Impacts of the pilot program At the International Indigenous Summit on Energy and Mining this past June, National Chief Shawn Atleo reflected on the significance of this collaborative program. “The Hazelton area in northern BC has a number of First Nations communities with high unemployment, despair and far too many suicides,” he said. “When Hazelton was chosen as one of three pilot sites for the mining program, we had over 40 applications for only 12 positions. If we work together we can all win. Our people will be able to escape poverty through the prosperity that these projects will bring.” Of the 22 graduates of the Mining Essentials pilot, nine are now employed in the mining sector and four in other sectors. One of the participants has returned to school and five candidates are actively looking for work. In mid-September, the AFN received a report from Northwest Community College that there has been an 80 per cent success rate for graduates who have either found employment or have gone back to school for advanced training. It is another step in the right direction for an industry that is already outperforming the rest of the economy in the employment of Aboriginal Peoples.

and situations, in conjunction with traditional Aboriginal teaching methods and mediums. It is a 12-week training program that combines two components for an empowering learning experience: 1. Classroom training on essential and work readiness (non-technical) skills, which industry has validated as necessary to be considered for entry-level hires. 2. Enrichment activities that bring industry to life through site visits, hands-on activities, guest speakers, and/or certifications, etc., as defined by the training site and its partners. Training must involve three-way partnerships between communities, educators and industry. A complete listing of committee members and more detailed information about the program is available at www.aboriginalmining.ca.

What’s happening now? The Mining Essentials program is currently being taught at Northern College in Timmins, Ontario, in

partnership with the Wabun Tribal Council and Detour Gold. MiHR and the AFN are now looking to identify more qualified training sites and partners to increase opportunities to deliver Mining Essentials across Canada to launch the program in January 2012. The Mining Essentials Program was developed through the Ready to Mine, Skills Development Project, funded by HRSDC’s Aboriginal Affairs Directorate under the Aboriginal Skills Training Strategic Investment Fund. For more information on Mining Essentials, please contact Pascale Larouche at plarouche@mihr.ca. CIM

author Lindsay Forcellini is marketing and communications coordinator at MiHR.

Program details Mining Essentials teaches skills using industry examples, tools, documents November 2011 | 63


COLUMNS

| innovation

cmic-ccim.org

Innovators in la Belle Province Tom Hynes The culture of innovation is alive and thriving in Quebec’s exploration and mining industry – and these advancements are the result of a few remarkable individuals and organizations that are leading the charge in research initiatives.

Academia There are many examples of academia reaching above and beyond as a major source of mining-related innovation, for Quebec and the rest of Canada. For example, McGill mining engineering professor Ferri Hassani — who has helped foster the growth of some of CMIC’s programs — is instrumental in leading the effort to bring the World Mining Congress to Montreal in 2013. The Université du Québec en Abitibi-Témiscamingue (UQAT) is also a major source of mining innovation for the province. Through the Unité de recherche et de service en technologie minérale, professors such as Denis Bois, Bruno Bussières and others, are actively engaged with industry. Their efforts are helping to set the direction mining research should take in the province and the country, in exploration, extraction, processing, environment and underground water. Michel Jébrak and his colleagues do much the same at the Université du Québec à Montréal (UQAM), as do their fellow academics at the Université du Québec à Chicoutimi (UQAC). All three universities – UQAT, UQAM and UQAC – are members of CONSOREM, a mineral exploration research consortium that delves into mineral exploration technologies in Quebec. It represents a link between different members and partners of the minerals industry that come from the industrial, governmental and educational (university) fields. Michel Aubertin and his colleagues at École Polytechnique de Montréal 64 | CIM Magazine | Vol. 6, No. 7

are also blazing new trails in the area of innovation, especially through the NSERC Chair in Environment and Tailings Management. Meanwhile, Laval University is working with DIVEX, a geoscientific research network of about thirty researchers based in Quebec whose objective is to support mineral exploration diversification with the help of scientific research.

Research and services A key figure on the Quebec innovation scene is Pierre Bérubé, president of Abitibi Géophysique. He and his staff are carrying out remarkable work in the field of exploration technology: not

only are their new geophysical monitoring tools impressive but they have also established a unique multi-business set up in Val d’Or, Géopolis, which is made up of 11 “geo-related” companies operating under one roof. This opportunity for creating synergies between the companies is an asset for the Abitibi region, as well as the rest of Quebec. Another major contributor to mining innovation is COREM, a consortium of applied research for the processing and transformation of mineral substances, located in Quebec City. Though COREM has tackled many challenges in the past, its struggles have obviously paid off, as today it has to work hard to keep up with

Les innovateurs de la Belle Province Au Québec, la culture de l’innovation est bien vivante dans l’exploration et l’industrie minière – les avancées découlent de quelques individus et organismes remarquables qui sont à la tête d’initiatives de recherche.

Universités Il existe plusieurs exemples de milieux universitaires qui se démarquent en tant que source importante d’innovation reliée à l’industrie minière, au Québec et dans le reste du Canada. Par exemple, à McGill, le professeur de génie minier Ferri Hassani – qui a soutenu la croissance de quelques programmes du Conseil canadien de l’innovation minière (CCIM) – a travaillé très fort pour obtenir la tenue du World Mining Congress à Montréal en 2013. L’Université du Québec en AbitibiTémiscamingue (UQAT) est aussi une source importante d’innovation minière pour la province. Dans l’Unité de recherche et de service en technologie minérale, les professeurs Denis Bois,

Bruno Bussières et d’autres travaillent en étroite collaboration avec l’industrie. Leurs travaux aident à déterminer l’orientation que devrait prendre la recherche minière dans la province et dans le pays concernant l’exploration, l’extraction, le traitement, l’environnement et l’eau souterraine. Michel Jébrak et ses collègues font passablement la même chose à l’Université du Québec à Montréal (UQAM) et d’autres universitaires suivent la même orientation à l’Université du Québec à Chicoutimi (UQAC). Ces trois universités – UQAT, UQAM et UQAC – sont membres de CONSOREM (Consortium de recherche en exploration minérale) qui étudie les technologies d’exploration minérale au Québec. CONSOREM représente un lien entre les différents membres et partenaires de l’industrie minérale, provenant de l’industrie, du gouvernement et des milieux éducationnels (universités). Michel Aubertin et ses collègues de l’École Polytechnique de Montréal


innovation | COLUMNS

research requests from its member companies. As well, executive director Yves Harvey serves on CMIC’s board as our treasurer. A regionally significant research organization of note is Le Groupe MISA, whose mandate is to drive mining research in the Abitibi-Témiscamingue region of Quebec. MISA has funded considerable work in the area over the past few years, including projects in geosciences, drilling, mining extraction, energy efficiency, environment and HQP training.

CMIC A major player in CMIC’s own programming that I would like to acknowl-

découvrent aussi de nouvelles pistes dans le domaine de l’innovation, surtout par la Chaire de recherche industrielle CRSNG en environnement et gestion des rejets miniers. L’Université Laval travaille avec DIVEX (Diversification de l’exploration minérale au Québec), un réseau géoscientifique d’environ trente chercheurs ayant pour objectif de diversifier l’exploration minérale à l’aide de la recherche scientifique.

Recherche et services Un acteur important de la scène de l’innovation au Québec est Pierre Bérubé, président d’Abitibi Géophysique. Son personnel et lui effectuent des travaux remarquables dans le domaine de la technologie de l’exploration : leurs nouveaux outils de suivi géophysique sont impressionnants et ils ont aussi fondé une entreprise unique à Val-d’Or, Géopolis, qui intègre sous un même toit onze compagnies « reliées à la géologie.» Cette occasion de créer des synergies entre

edge is François Robert, vice-president and chief geologist – global exploration, at Barrick Gold. Robert currently champions CMIC’s exploration initiative and has been instrumental in helping it arrive at a consensus on the major themes upon which exploration research in Canada needs to focus. The committee’s structure, established by Robert and his group, is now being copied by other CMIC initiatives. I applaud the support that mining research receives in Quebec and hope it will continue well

into the future. With numerous proposed large iron projects slated for northern Quebec and adjacent Labrador, it is clear that the iron industry will greatly benefit from new research efforts to ensure the profitability of these immense, remote and difficult to process deposits. CIM

les compagnies constitue un atout pour la région de l’Abitibi et pour tout le Québec. Un autre contributeur important à l’innovation minière est le COREM (Consortium de recherche appliquée en traitement et transformation des substances minérales), situé dans la Ville de Québec. Bien que le COREM ait été confronté à de nombreux défis dans le passé, ses luttes ont porté fruit; en effet, il peine aujourd’hui à répondre à la demande de recherche de ses compagnies membres. De plus, le directeur exécutif, Yves Harvey, est aussi trésorier du CCIM. Un organisme régional important digne de mention est Le Groupe MISA, dont le mandat est de promouvoir la recherche minière en Abitibi-Témiscamingue. MISA a financé de nombreux travaux dans la région au cours des dernières années, incluant des projets en géosciences, en forage, en extraction minière, en efficacité énergétique, en environnement et en formation de personnel hautement qualifié.

CCIM

author

Tom Hynes has worked in the uranium and base metals industries, and has been a provincial regulator and a federal government research manager. He is the executive director of the Canada Mining Innovation Council.

Il ne faudrait pas oublier un important intervenant dans la programmation du CCIM, François Robert, vice-président et géologue en chef – exploration mondiale, à la Société aurifère Barrick. M. Robert parraine actuellement l’initiative d’exploration du CCIM et il a joué un rôle déterminant pour établir un consensus sur les orientations de la recherche en exploration au Canada. La structure du comité, telle qu’établie par M. Robert et son équipe, est maintenant reprise par d’autres initiatives du CCIM. Je me réjouis du soutien que reçoit la recherche minière au Québec et j’espère qu’il continuera longtemps. Avec les nombreux gros projets de minerai de fer prévus pour le Nord du Québec et le Labrador, il est évident que l’industrie du minerai de fer bénéficiera grandement des efforts de recherche qui visent à assurer la rentabilité de ces immenses gisements éloignés et difficiles à traiter. ICM November 2011 | 65


COLUMNS

| standards

lautorite.qc.ca

NI 43-101 news you need to know Luc Arsenault and Alexandra Lee

The short form trigger The Canadian Securities Administrators (CSA) has published a new version of National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101), which came into effect on June 30, 2011. One significant change relates to the requirement to file a technical report in support of disclosure made in a short form prospectus. Since June 30, 2011, issuers are only required to file a technical report in connection with a preliminary short form prospectus when it contains first-time disclosure of: mineral resources, mineral reserves or the results of a preliminary economic assessment that constitute a material change in relation to the issuer; or a change in this information since the previously filed technical report, if the change constitutes a material change. This change clarifies the situations when a new technical report must be filed and reduces the uncertainty issuers had before. As a result of this relaxed requirement, an issuer will be allowed to file a preliminary short form prospectus that contains scientific or technical information (other than the information described above) on a material property without having to file a technical report supporting that information. This can be done as long as the name of the qualified person who prepared or supervised the preparation of the information that forms the basis for the disclosure or who approved the disclosure, is indicated in the prospectus. The CSA believes that the change made to NI 43-101 will allow quicker access to financing in the context of a short form prospectus. It also considers that this change will not adversely affect investors’ protection, for the following reasons: • A technical report will always be required to support a prospectus that contains first-time disclosure of mineral resources, mineral reserves or the results of a preliminary economic assessment that constitute a material change in relation to the issuer. • A qualified person will be responsible for all scientific and technical information presented in a prospectus. • An issuer will continue to be required to file a technical report to support all scientific and technical information (not only information relating to mineral resources, mineral reserves or the results of a preliminary economic assessment) contained in the issuer’s annual information form (AIF).

French language requirements It is not uncommon for issuers to experience timing issues with short form prospectus offerings due to a lack of understanding of certain requirements relating to the language in which documents must be filed in Quebec. 66 | CIM Magazine | Vol. 6, No. 7

When issuers conduct an offering in Quebec under the short form prospectus regime, the short form prospectus and all documents incorporated by reference must be prepared in French, or in both official languages. This includes technical reports that may have been incorporated by reference into the AIF. Item 5.4 of Form 51-102F2 Annual Information Form prescribes the information that must be included in an AIF or prospectus to describe material mineral properties in order to provide full, true and plain disclosure. There are two ways of complying with this requirement: one that will not require that the technical report be prepared in French and one that will.

Règlement 43-101 : ce que vous devez savoir Luc Arsenault et Alexandra Lee

Obligation de déposer un rapport technique lors du dépôt d’un prospectus simplifié Les Autorités canadiennes en valeurs mobilières (les « ACVM ») ont publié une nouvelle version du Règlement 43-101 sur l’information concernant les projets miniers (le « Règlement 43-101 ») qui est entrée en vigueur le 30 juin 2011. Une des modifications importantes concerne l’obligation de déposer un rapport technique à l’appui de l’information présentée dans un prospectus simplifié. Depuis le 30 juin 2011, un émetteur est tenu de déposer un rapport technique lors du dépôt d’un prospectus simplifié provisoire seulement si celui-ci présente pour la première fois : i) des ressources minérales, des réserves minérales ou des résultats d’une évaluation économique préliminaire qui constituent un changement important en ce qui concerne l’émetteur; ou ii) un changement dans ces renseignements depuis le dernier rapport technique déposé, si ce changement constitue un changement important. Cette modification clarifie les situations où un nouveau rapport technique devra être déposé et réduit l’incertitude que les émetteurs avaient auparavant. Dorénavant, un émetteur pourra déposer un prospectus simplifié provisoire comprenant des renseignements scientifiques ou techniques qui se rapportent à un terrain important, autres que ceux présentés dans les circonstances décrites ci-dessus, sans être tenu de déposer un rapport technique à l’appui de ces renseignements, si le prospectus indique le nom de la personne qualifiée qui a approuvé la présentation des renseignements ou de celle qui les a établis ou en a supervisé l’établissement.


normes | COLUMNS

An issuer may satisfy the requirements of Item 5.4 by providing all the information on its material properties directly in the AIF. In that case, there is no obligation to have the supporting technical report prepared in French, because it has not been incorporated by reference into the AIF. Pursuant to instruction (ii) of Item 5.4, an issuer may also satisfy the requirements of Item 5.4 by reproducing the summary from the technical report in its AIF, if it also incorporates, by reference, its technical report into its AIF. In this case, the issuer will be required to have a technical report prepared in French and filed at the time it files its preliminary short form prospectus. For more information, please consult the April 8, 2011, CSA Notice concerning the replacement of

NI 43-101 and accompanying documents available at www.lautorite.qc.ca, as well as the websites of other CSA jurisdictions. CIM

Les ACVM croient que cette modification permettra de faciliter l’accès au financement par le biais du régime du prospectus simplifié et que cette modification ne portera pas atteinte à la protection des investisseurs pour les raisons suivantes : • un rapport technique sera toujours exigé pour appuyer un prospectus qui fait état pour la première fois de ressources minérales, de réserves minérales ou des résultats d’une évaluation économique préliminaire qui constituent un changement important pour l’émetteur; • une personne qualifiée sera responsable de toute l’information scientifique ou technique présentée dans un prospectus; • un rapport technique continuera d’être exigé pour appuyer toute l’information scientifique ou technique (et non seulement l’information sur les ressources, les réserves et les résultats d’une évaluation économique préliminaire) contenue dans une notice annuelle.

importants afin de présenter cette information de façon complète, véridique et claire. Il y a deux façons de satisfaire à cette obligation : une qui ne requiert pas que le rapport technique soit établi en français et l’autre qui le requiert. Un émetteur peut satisfaire les exigences de la rubrique 5.4 en présentant toute l’information sur ses terrains importants directement dans la notice annuelle. Dans ce cas, il n’aura pas l’obligation d’établir un rapport technique en français puisque ce dernier n’est pas intégré par renvoi dans la notice annuelle. Un émetteur peut également, conformément à l’instruction ii) de la rubrique 5.4, satisfaire les exigences de la rubrique 5.4 en reproduisant le résumé du rapport technique dans sa notice annuelle et en y intégrant par renvoi l’information détaillée figurant dans ce rapport. Dans ce cas, l’émetteur sera tenu d’établir et de déposer un rapport technique en français au moment du dépôt du prospectus simplifié provisoire. Pour en savoir davantage, veuillez consulter l’avis de publication des ACVM du 8 avril 2011 concernant le remplacement du Règlement 43-101 et les documents connexes disponibles au www.lautorite.qc.ca et aux sites Web des autres membres des ACVM. ICM

L’obligation d’établir un rapport technique en français Il arrive que des émetteurs encourent certains délais dans leurs projets de financement par prospectus simplifié à cause d’un manque de compréhension quant aux obligations liées à la langue des documents devant être déposés au Québec. Dans le cadre d’un placement fait au Québec sous le régime du prospectus simplifié, le prospectus simplifié et les documents intégrés par renvoi doivent être établis en français ou dans les deux langues officielles, y compris les rapports techniques si ceux-ci sont intégrés par renvoi dans une notice annuelle. La rubrique 5.4 de l’Annexe 51-102A2, Notice annuelle prescrit l’information que doit comprendre une notice annuelle ou un prospectus pour décrire les terrains miniers

The opinions/statements expressed in this article are those of the authors and do not necessarily represent those of l’Autorité des marchés financiers.

authorS Luc Arsenault is a geologist and Alexandra Lee is a senior policy advisor, both with the Autorité des marchés financiers. The authors participated in the drafting of the new National Instrument 43-101 Standards of Disclosure for Mineral Projects.

Les opinions exprimées dans cet article sont celles des auteurs et peuvent ne pas refléter celles de l’Autorité des marchés financiers.

autEurS Luc Arsenault est géologue et Alexandra Lee est conseillère en réglementation à l’Autorité des marchés financiers. Les auteurs ont participé à l’élaboration du nouveau Règlement 43-101 sur l’information concernant les projets miniers. November 2011 | 67


COLUMNS

| women in mining

agnico-eagle.com

Doing it right the first time How Louise Grondin is bridging the gap between mining and communities Heather Ednie beginning, we understood that as the only game in town, we could have a tremendous impact on the communities, be it good or bad,” explains Grondin. “We worked closely with the Hamlet Council to better understand each other. We were bringing hope to a depressed area and we didn’t want to disappoint.” With only a three-year timeline to build the operation, an aggressive construction schedule thrust community relations into high gear. “The [Agnico-Eagle] board visited the village of Baker Lake so that it would be in their minds when making decisions,” she says. “It’s important that they see the community, beyond its infrastructure. In fact, they visit all our operations in turn. It is our role to feed them information about the projects and the communities, but they need this foundation of understanding.”

Bien faire du premier coup Louise Grondin auditing spill response practices at Meadowbank Mine’s Portage pit

Louise Grondin is passionate about her job. AgnicoEagle Limited’s senior vice-president, environment and sustainable development is spearheading the corporate drive to ensure environmental policies are applied across all operations and that all stakeholder relations are prioritized. “In essence, my role is to ensure that environmental and community relations issues are taken care of at the same level as production and safety issues, because it is now part of good management,” she says. “It requires people on the ground at all operations and having environmental management plans in place while looking ahead to evaluate potential risk.” Grondin spends a lot of her time travelling to AgnicoEagle’s various operations in Canada, Mexico and Finland. She ensures everyone adheres to corporate standards, and she herself helps enable greater sharing of best practices, providing a link between the various sites.

Starting off on the right foot “Good management and planning are key,” says Grondin. “If we spend all day fighting fires, we will not move forward. I’m fortunate in that I don’t have to convince people of that – our employees push for best practices.” In 2007, Agnico-Eagle acquired the Meadowbank property in Nunavut and jumped in with both feet, working with Northern and Aboriginal communities. “From the 68 | CIM Magazine | Vol. 6, No. 7

Comment Louise Grondin comble le fossé entre les mines et les communautés Louise Grondin trouve son travail passionnant. En tant que vice-présidente principale, environnement et développement durable, Agnico-Eagle Limitée, elle est responsable de la volonté corporative d’assurer que les politiques environnementales sont mises en œuvre dans toutes les exploitations et que les relations avec les intervenants sont toutes placées au premier rang. « En fait, mon rôle est d’assurer que les questions environnementales et de relations communautaires sont traitées au même niveau que celles de la production et de la sécurité », dit-elle. « Il faut des gens sur le terrain et des plans de gestion environnementale en place dans toutes les opérations, sans négliger l’évaluation des risques potentiels. » Mme Grondin voyage beaucoup entre les diverses exploitations d’Agnico-Eagle au Canada, au Mexique et en Finlande. Elle assure le suivi des normes corporatives, partageant elle-même les meilleures pratiques en établissant des liens entre les sites.

Partir du bon pied « Une bonne gestion et une bonne planification sont la clé », dit Mme Grondin. « Si nous passons toute la journée à éteindre des feux, nous ne pourrons pas avancer. Je suis chanceuse de ne pas avoir à convaincre les gens – nos employés nous poussent vers les meilleures pratiques. »


les femmes en exploitation minière | COLUMNS

Grondin and her team worked with the mayor, making every possible effort to listen to the community and respond to their questions and concerns. “With such an aggressive development plan, we were bringing about big change – and quite fast,” she recalls. “The key to it all is communication.”

A learning opportunity While she spends a lot of her time sharing her experience, Grondin says she learns a lot from the communities as well. For example, the Kittila operation in Finland showed her the importance of cultural awareness. “Yes, language is a bit of a barrier, but the cultural differences came as somewhat of a surprise,” she says. “In general, the Finns are very pragmatic and think more long term than North Americans. For effective communication, we must adapt to the way they think.” Grondin sees potential for growth, even in areas that seem to have a handle on operations. “At the Pinos Altos operation in Mexico, there’s a lot of mining experience – they know what they are doing,” Grondin says. “However,

Agnico-Eagle a acquis la propriété Meadowbank au Nunavut en 2007; la compagnie s’y est pleinement engagée, travaillant avec les communautés autochtones et du Nord. « Dès le début, nous avons compris qu’en tant que seule mine dans la région, nous aurions un immense impact, bon ou mauvais, sur les communautés », explique Mme Grondin. « Nous avons travaillé étroitement avec le conseil du village afin de mieux nous comprendre. Nous apportions de l’espoir à une région défavorisée, nous ne voulions pas décevoir les gens. » L’échéancier de construction serré, seulement trois ans, nous a forcé à développer rapidement nos relations avec la communauté. « Les membres du conseil d’administration [d’Agnico-Eagle] ont visité le village de Baker Lake afin d’en avoir une image claire lorsque des décisions seront prises », dit-elle. « Ils visitent toutes les exploitations; il est important de voir la communauté où nous insérons nos infrastructures. Nous informons le conseil sur les projets et les communautés, mais ils ont besoin d’une bonne compréhension du milieu. » Mme Grondin et son équipe ont travaillé avec le maire, écoutant la communauté le plus possible et répondant aux questions et aux inquiétudes. « Avec un tel plan de développement, nous apportions de grands changements – à un rythme accéléré. La clé du succès est la communication. »

Une occasion d’apprentissage Bien qu’elle passe beaucoup de temps à partager son expérience, Mme Grondin dit qu’elle apprend beaucoup des communautés. Par exemple, l’exploitation Kittila en

we can get much more involved with the small communities, and we’re in a position to help them.” Agnico-Eagle aims to employ as many people as possible from the local areas. ”This can happen through a constant presence in the community, learning about what is going on and what their needs are, and showing them we’re there to stay.” She adds that the Pinos Altos community relations department is partly staffed with residents of the local communities and works closely with them in terms of training, helping schools and providing supplementary health care. More than 99 per cent of the mine employees are from Mexico. As an industry, Grondin believes more must be done to improve the image of mining, and one approach is through the mining associations. “We must place increased peer pressure on the bad actors to adhere to performance standards,” she explains. “Everyone suffers because of the damage done by just a few bad apples. If every company truly understood the impact they have from the very first day on the ground, it would benefit us all. From A to Z, from drilling to closure, it must be done properly. There’s no other acceptable option.” CIM

Finlande lui a montré l’importance de la sensibilisation culturelle. « Oui, la langue constitue une barrière, mais les différences culturelles m’ont un peu surprise », dit-elle. En général, les Finlandais sont très pragmatiques et ils pensent à plus long terme que les Nord-Américains; nous devons nous adapter à leur mode de pensée. » Mme Grondin voit le potentiel de croissance, même là où l’exploitation semble bien rodée. « À la mine Pinos Altos, au Mexique, les mineurs sont très expérimentés », dit Mme Grondin. « Toutefois, nous pouvons nous impliquer beaucoup plus auprès des petites communautés; nous pouvons les aider par une présence constante dans la communauté, en sachant ce qui se passe, en connaissant leurs besoins et en leur montrant que nous sommes ici pour rester. » Elle ajoute que le département des relations communautaires de Pinos Altos comporte des employés des communautés locales avec lesquelles il travaille en étroite collaboration pour la formation, l’aide aux écoles et la fourniture de soins de santé supplémentaires. Plus de 99 pour cent des employés de la mine proviennent du Mexique. Mme Grondin croit qu’il faudrait faire plus pour améliorer l’image des mines; entre autres avec l’aide des associations minières. « Tous souffrent des dommages causés par quelques-uns. Si les compagnies comprenaient vraiment l’impact qu’elles ont dès les premiers jours, des forages à la fermeture, cela serait bénéfique pour tous. Il faut que tout soit fait correctement, de A à Z. Il n’y a pas d’autre option », explique-t-elle. ICM November 2011 | 69


COLUMNS

| regard sur les affaires

fasken.com

Le Plan Nord : Le grand plan pour le Nord du Québec Charles Kazaz et Jean Masson Le projet Renard de Stornoway pourra progressé plus rapidement que prévu grâce au prolongement de la Route 167. Des employés échantillonnent l’eau.

Le territoire Le Plan Nord se déploie sur un territoire immense, soit 72 pour cent du territoire du Québec, près de 1,2 millions km2. Ce territoire se divise en trois régions (i) la Baie-James (Eeyou Istchee) où sont concentrées les communautés cries; (ii) le Nunavik, territoire des Inuits et (iii) la Côte-Nord et la fosse du Labrador, où sont concentrées la nation naskapie et les communautés innues. Une importante portion du territoire est assujettie à des traités et des ententes modernes conclus entre le Québec et les communautés autochtones. Les compagnies minières désireuses de développer des projets dans le Nord du Québec devront établir des relations avec les communautés autochtones.

Les infrastructures Le développement d’un aussi vaste territoire pose des défis considérables en matière d’infrastructures de transport d’énergie et de télécommunications. Les coûts reliés à la construction de ces infrastructures seront considérables en raison de l’immensité du territoire et des conditions environnementales. Le Plan Nord propose de confier à la Société du Plan Nord le mandat de coordonner les investissements publics et d’encourager les partenaires privés à participer au financement des infrastructures à caractère public construites en premier lieu pour leur bénéfice. Une formule de partage de coûts entre les partenaires privés, les utilisateurs et le gouvernement, sera établie pour les projets majeurs. Le Premier plan quinquennal du Plan Nord prévoit d’ailleurs des investissements de 1193 M $ en infrastructures. 70 | CIM Magazine | Vol. 6, No. 7

Courtoisie de Stornoway Diamond Corporation

En mai 2011, le Premier ministre Jean Charest a annoncé le lancement du Plan Nord qui vise le développement du territoire du Québec situé au nord du 49e parallèle sur un horizon de 25 ans. Il s’agit d’un projet visionnaire et ambitieux qui repousse les frontières naturelles du Québec et ouvre l’accès à un territoire riche en ressources naturelles à découvrir et à exploiter. Le territoire couvert par le Plan Nord est immense et son développement comporte de nombreux défis. Dans ce contexte, la capacité du gouvernement de créer un climat social, règlementaire et financier propice aux investissements sera un élément déterminant dans la réalisation du Plan. L’industrie minière devrait être la force motrice de la réalisation du Plan.

Le gouvernement du Québec s’est engagé à développer 3500 MW d’énergie additionnelle au coût estimé de 25 milliards de dollars pour répondre aux besoins des communautés nordiques et des projets industriels. Il n’y a actuellement pas d’indications sur les modalités de financement de ces projets.

Le cadre financier La réalisation du Plan Nord sur une période de 25 ans suppose un appui gouvernemental soutenu dédié aux infrastructures du Plan Nord et nécessite la mise en place d’une structure de financement à caractère permanent et prévisible tant pour le gouvernement que pour les autres parties prenantes. Afin d’atteindre cet objectif, deux mesures méritent d’être notées. En premier lieu, le gouvernement mettra en place le Fonds du Plan Nord qui sera dédié à la réalisation du Plan. Il sera alimenté par une partie des retombées fiscales provenant des activités économiques réalisées sur ce territoire. Dans son budget 2011, le gouvernement envisage de transférer au Fonds plus de 2,1 milliards de dollars de revenus fiscaux au cours des prochains 25 ans. Ensuite, le Québec a annoncé la mise à la disposition d’Investissement Québec d’une somme de 500 M $ qui pourra être utilisée pour des prises de participation dans des projets porteurs et structurants situés dans le territoire du Plan Nord.

La Société du Plan Nord La réalisation d’un projet aussi complexe et ambitieux sur un territoire aussi immense suppose un haut degré de


regard sur les affaires | COLUMNS coordination. Pour faciliter la réalisation du Plan, Québec constituera une nouvelle agence, la Société du Plan Nord. Sa mission sera de contribuer au développement intégré et cohérent du territoire en fonction des plans quinquennaux élaborés par le gouvernement. Elle devra élaborer un plan stratégique soumis à l’approbation du gouvernement. Après approbation, la Société pourra utiliser les fonds qui lui sont consentis à la réalisation financière ou autre des projets contenus dans son plan stratégique

Développement minier Le développement minier sera au cœur du développement économique du territoire. Le territoire du Plan Nord a été témoin de travaux miniers sans précédents en 2009, 50 pour cent des investissements relatifs à l’exploration et à l’exploitation minière, (958 M $), ont été réalisés sur ce territoire.

La protection de l’environnement Le développement durable et la protection de l’environnement sont au cœur du Plan Nord : les réalités nordiques y sont particulièrement sensibles et les écosystèmes du Nord sont complexes en raison du vaste territoire et de la dynamique des changements climatiques qui caractérisent le territoire. Les projets miniers nécessiteront l’obtention de permis octroyés au terme de processus d’analyses environnementales

et sociales rigoureuses réalisées par les organismes qui comprennent des représentants des Premières nations et des Inuits. Un des défis du gouvernement sera de s’assurer que ces agences bénéficieront des ressources qui leur permettront de réaliser les études environnementales à l’intérieur de paramètres raisonnables. Également, un des objectifs du Plan est de soustraire au développement industriel 50 pour cent du territoire et de créer un réseau d’aires protégées couvrant au minimum 12 % du territoire d’ici 2015 En conclusion, le Plan Nord est un projet de société qui définira le Québec pour des générations à venir. Il propose des défis importants à l’ensemble des parties prenantes dont le secteur minier, la force motrice de ce Plan. Nul doute que l’industrie minière, réputée pour son innovation, saura saisir toutes les opportunités qu’offre ce Plan. ICM

autEurS Charles Kazaz et Jean Masson sont des associés de Fasken Martineau DuMoulin et membres de l’Équipe Plan Nord.

November 2011 | 71


COLUMNS

| eye on business

Plan Nord: The grand plan for Northern Quebec Charles Kazaz and Jean Masson In May 2011, Premier Jean Charest announced the launch of the Plan Nord initiative, which provides for the development of Quebec’s territory north of the 49th parallel over the next 25 years. This ambitious project will extend Quebec’s natural frontiers, opening up a vast territory rich in natural resources to discovery and development. The territory covered under the plan is immense and will undoubtedly lead to challenges in respect to development. The government’s ability to create favourable social, labour, regulatory and financial conditions to attract investment will be critical to implementing the plan. Due to its geographical reach, the mining industry is expected to be the driving force behind its execution.

The territory Plan Nord will cover a land mass of almost 1.2 million square kilometres (about 72 per cent of the province). The territory is comprised of three regions: James Bay (Eeyou Istchee), with a concentration of Cree communities; Nunavik, inhabited by Inuit communities; and the North Shore and Labrador Trough, where the Naskapi Nation and Innu communities are situated. A large portion of the plan’s territory is governed by modern treaties between Quebec and Aboriginal communities. Mining companies that seek to develop projects in Northern Quebec must first establish relationships with the Aboriginal communities.

• First, the Fonds du Plan Nord (the “fund”) dedicated to implementing the plan will be established. It will be funded by a portion of the tax revenues it receives from natural resources development. In its 2011 budget, the government indicated that it plans to transfer about $2.1 billion in tax revenues to the fund over the next 25 years. • Second, Quebec has announced that $500 million would be made available to Investissement Québec for equity participation in high-benefit projects leading to the development of the Plan Nord territory.

Société du Plan Nord A new agency, the Société du Plan Nord, will assist in the execution of the plan. Its intended purpose is to contribute to the integrated and coherent development of the area in accordance with five-year “sub” plans prepared by the government. The Société will establish a strategic plan that will be subject to government approval. Once approved, the Société can use the funds it is granted to contribute financially or otherwise to the projects within its strategic plan.

Mineral development It is expected that mineral development will be the core economic activity in the territory, which has seen unprecedented mineral exploration work. In 2009, 50 per cent of all investment in mineral exploration and mining ($958 million) was in the plan’s territory.

Infrastructure

Environmental protection

Development in the territory will require transportation, energy and communications infrastructure. The cost of setting this up will be significant given the vastness of the territory and local environmental conditions. The plan proposes to entrust the Société du Plan Nord with coordinating public investments and encouraging private sector contribution to finance public infrastructure built initially for its benefit. A cost-sharing formula between private partners, users and the government will be established for major projects. The plan’s first phase (five years) will comprise $1.193 billion in investments in infrastructure. In addition, Quebec has committed to developing 3,500 megawatts of additional energy, at an estimated cost of $25 billion, to meet the needs of northern communities and industrial projects. Currently, there is no indication as to how these projects will be financed.

Sustainable development and environmental protection are at the core of the plan. The ecosystems of the North are complex due to the vastness of the territory and the dynamics of the changing climate. Mining projects will require permits after rigorous social and environmental impact assessments are conducted by agencies that include First Nation and Inuit representatives. One of the government’s challenges in implementing the plan will be its ability to properly fund regulatory agencies, so as to conduct environmental reviews in a timely manner. Furthermore, an objective is to prohibit industrial use on 50 per cent of the territory and to create a network of protected areas covering at least 12 per cent of the Plan Nord territory by 2015. Plan Nord is a societal project that will shape Quebec for generations to come. CIM

Financial framework With a projected 25-year lifespan, the plan will require sustained government support to develop infrastructure and ensure ongoing and permanent funding. To this end, we note two measures: 72 | CIM Magazine | Vol. 6, No. 7

authorS

Charles Kazaz and Jean Masson are partners at the Montreal office of Fasken Martineau DuMoulin and members of its Plan Nord Team.


metalseconomics.com

metals monitor | COLUMNS

PAI slides as difficult market conditions outweigh record-breaking drilling activity Metals Economics Group The Metals Economics Group’s Pipeline Activity Index (PAI) decreased for the second consecutive month in July, then slightly improved in August on the back of a record number of significant drill results. Both months remained below the PAI’s 2011 year-to-date average and well short of the March 2011 high, as the increased exploration activity was not enough to counteract uneasy markets that are making raising capital difficult, particularly for base metals companies. The industry’s aggregate market cap increased slightly to $2.35 billion in July, before fears of stagnant global economic growth and a potential double-dip recession dragged market caps down to $2.19 billion in August – the lowest level since November 2010. The number of significant drill results announced hit a record high in August, increasing for the fourth consecutive month. Gold explorers continue to be motivated by record-breaking bullion prices, while copper- and silverfocused exploration has helped drive the number of base metals results to their highest levels since before the 20082009 recession. As has been the case throughout most of 2011, North America and Latin America continue to be the dominant regions for successful drilling, with Africa also contributing significantly to gold results, and Australia-Pacific accounting for 25 per cent of the base metals announcements in July and August. The number of initial resource announcements made in July and August is the lowest two-month total since July-

August 2010. This may partly be explained by seasonal factors, such as a focus on summertime exploration programs. Probe Mines’ Borden Lake project in Ontario, with 4.06 million ounces of contained gold, and Atacama Pacific Gold’s Cerro Maricunga project in Chile, with 3.56 million ounces, were the two largest initial resources announced in the period. The number of significant financings (US$2 million minimum) completed remained relatively steady in July, before market tumult resulted in only 56 financings closing in August – the lowest one-month total in more than a year. The two-month total was 10 per cent higher than the May-June total, but included $438 million raised by Detour Gold for development of its 20-million-ounce Detour Lake gold project in Ontario. Difficult market conditions had an even stronger impact on base metals companies, as the amount raised in JulyAugust failed to top $1 billion for the first time since January-February 2010. CIM

MEG Pipeline Activity Index (PAI), September 2011

Significant drill results announced

For more information on the PAI, visit www.metalseconomics.com.

author

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

Source: MEG Industry Monitor; MineSearch; Exploration Activity Services © Copyright 2011 Metals Economics Group

November 2011 | 73


Upcoming 2011 Seminars NEW — Certification in Ore Reserve Risk and Mine Planning Optimization Spread over a period of four months, this four-week course is designed for busy mining professionals who wish to update their skills and knowledge base in modern modelling techniques for ore bodies and new risk-based optimization methodologies for strategic mine planning. Gain practical experience by applying the following hands-on concepts and technical methods: methods for modelling ore bodies; stochastic simulations, case studies and models of geological uncertainty; and demand-driven production scheduling and geological risk. Instructor: Roussos Dimitrakopoulos, McGill University, Canada • Dates: TBD • City: Montreal, Quebec, Canada • Info: www.mcgill.ca/conted/prodep/ore

Strategic Risk Management in Mine Design: From Life-of-Mine to Global Optimization Learn how you can have a significant, positive impact on your company’s bottom line by utilizing strategic mine planning methodologies and software; improve your understanding of strategic mine planning and life-of-mine optimization concepts, as well as your understanding of the relationship of uncertainty and risk, and how to exploit uncertainty in order to maximize profitability. Note: The strategic mine planning software used is Whittle; an optional half-day skills refresher workshop on Whittle may be available. Instructors: Gelson Batista, MPX, Brazil, and Roussos Dimitrakopoulos, McGill University, Canada • Date: March 2012 • City: Toronto, Ontario, Canada

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, Newmont Mining Corporation, USA • Date: September 2012 • City: Montreal, Quebec, Canada

Geostatistical Mineral Resource/Ore Reserve Estimation and Meeting the New Regulatory Environment: Step by Step from Sampling to Grade Control Learn about the latest regulations on public reporting of resources/reserves through state-of-the-art statistical and geostatistical techniques, how to apply geostatistics to predict dilution and adapt reserve estimates to that predicted dilution, how geostatistics can help you categorize your resources in an objective manner, and how to understand principles of NI 43-101 and the SME Guide. Instructors: Marcelo Godoy, Golder Associates, Chile, JeanMichel Rendu, Newmont Mining Corporation, USA, and Roussos Dimitrakopoulos, McGill University, Canada • Date: September 2012 • City: Montreal, Quebec, Canada

Mineral Project Evaluation Techniques and Applications: From Conventional Methods to Real Options

An Introduction to Cutoff Grade Estimation: Theory and Practice in Open Pit and Underground Mines

Learn the basics of economic/financial evaluation techniques, as well as the practical implementation of these techniques to mineral project assessments, how to gain a practical understanding of economic/ financial evaluation principles, and how to develop the skills necessary to apply these to support mineral project decisions.

Cutoff grades are essential in determining the economic feasibility and mine life of a project. Learn how to solve

Instructor: Michel Bilodeau, McGill University, Canada • Date: October 2012 • City: Montreal, Quebec, Canada


aboriginal perspectives | COLUMNS

learning-together.ca

First Nations land rights Juan Carlos Reyes Essentially, the most productive time in the relationship between Aboriginal communities and the minerals industry began only a short while ago in 2004. Since then, we have witnessed a broad spectrum of situations, from difficult struggles – imprisonment and moratoriums, for example – to inspirational examples of sustainable revenue sharing. Despite a rocky past, I believe a prosperous future lies ahead. In my last article (CIM Magazine, August 2011 issue), I wrote about the tenacity of the Odawa leader Pontiac before and during Pontiac’s War. His determination in bringing together other leaders to fight for native rights is the reason our Canadian border is as far south as it is. During the war, the British were signing truces with France. They also believed that without making peace with the Aboriginals, they would suffer setbacks. As a result, King George III enacted the Royal Proclamation of 1763, a document that quickly became known as the Aboriginal Bill of Rights. It recognized that Aboriginals lived on traditional lands, but that interest in those lands belonged to groups or nations, not individuals, and therefore only the Crown could buy or accept Aboriginal lands. The proclamation also stipulated that the Crown would require an agreement to obtain lands from Aboriginal Peoples who were under the Crown’s protection. Three quarters of a century later, an alarming situation occurred. The Mica Bay incident of 1849 – where a group of Aboriginals forcibly took over a mining operation – caused the government to mobilize 100 rifles in order to stop what they referred to as the “Indian uprising.” The Governor General, Lord Elgin, saw a direct link between the incident and land cession. He publicly expressed his disappointment in the regional government for not extinguishing Indian claim before

licenses for exploration or grants of lands were permitted. The first legal case dealing with Aboriginal land title and access followed the Mica Bay incident. In 1888, in St. Catherines Milling v. The Queen, the Privy Council held that Aboriginal title over land was allowed only at the Crown’s pleasure and could be taken away at any time. Ironically, although this pivotal case would decide the fate of Canadian Aboriginals for nearly a century, not one Aboriginal was ever invited to appear before the courts. Aboriginal interest in land development would not be seriously considered in court until the 1967 Calder challenge. Frank Calder, of the Nisga’a Nation, challenged the Government of British Columbia, declaring that Aboriginal title to certain lands in the province had never been lawfully extinguished. In 1973, the Supreme Court of Canada ruled that Aboriginal rights to land had existed at the time of the Royal Proclamation. This was the first time the Canadian legal system acknowledged the existence of Aboriginal title to land and that such title existed outside of, and was not simply derived from, colonial law. In deciding whether this legal ownership still existed, the judges were split: three believed that Aboriginals still had title to the land and three argued that the Aboriginals had ceded their title to the Crown. A seventh judge dismissed the case on a technicality. The most significant piece of legislation regarding Aboriginal land and

title rights was introduced in 1982 as section 35 of the Constitution Act. This section provided constitutional protection to existing Aboriginal and treaty rights – the first time any legislation had done so – and created a legal foundation for the recognition of self-governance. Before this section was introduced, Aboriginal rights existed by virtue of the common law, which could be changed and extinguished by legislation. Since section 35, there have been a series of court battles that have established precedence in cases involving Aboriginal land title and access. One of the most important for the minerals industry is the well-known 2004 Supreme Court interpretation of the Crown’s duty to consult and accommodate. Since this decision, companies have sharply focused their efforts towards building and nurturing Aboriginal relationships and today, First Nations are beginning to participate in industrial developments and enjoy advantageous revenue-sharing agreements. One such example is the signing of a historic agreement between the Stk’emlupsemc of the Secwepemc Nation and the Government of British Columbia that will ensure that about one-third of royalties collected from the New Afton gold-silver-copper mine are returned to the community. Given the legal environment and the high demand for minerals in the world, I believe that the next few years will be incredibly exciting for Aboriginal communities involved in the mining industry. CIM

author Juan Carlos Reyes is one of the founders of Learning Together and has been its executive director since 2008. He has nearly 15 years of mining and Aboriginal development expertise, and has worked tirelessly to promote economic development opportunities in the mining industry for Aboriginal communities.

November 2011 | 75


Mining for salamander wool: Quebec, asbestos and the Industrial Age Correy Baldwin

Courtesy of Library and Archives Canada

for it is not true that those cloths are of the hair of an animal which lives in fire, as one says in our country, but is such a thing as I shall say below; it is a vein of earth.”1 Marco Polo was, in fact, describing what is known today as asbestos. The fibrous mineral had long been used to strengthen earthenware pots and to make garments, rope and candle 1

wicks. But it was not until the Industrial Revolution that asbestos became a valuable and highly sought-after material. As industrial production increased during the 1800s, so too did demand for insulation for the steam pipes, turbines, boilers and kilns of the new industrial age. Asbestos, being fireproof and durable, was perfect for the

Travels Of Marco Polo, Penguin Classic, Re-issue edition (February 3, 2004)

Folklore minier A worker handles asbestos fluff in an asbestos factory in Asbestos, Quebec, June 1944. Photographer: Harry Rowed

I

n the 13th century, the explorer Marco Polo travelled through Asia to the kingdom of the Kublai Khan. On the way he passed through Siberia, where locals showed off a fireresistant material that they claimed was woven out of salamander fur. Myth had it that salamanders were immune to fire – the creatures were often seen scattering through the flames of a campfire, a result of their tendency to hide in firewood. Marco Polo was impressed by the material, but doubtful about the claims as to its origins: “In this same mountain is found a good vein from which the cloth which we call of salamander, which cannot be burnt if it is thrown into the fire, is made, and it is of the best that is found in the world. And you may know in truth that salamander which I speak is not a beast nor serpent, 76 | CIM Magazine | Vol. 6, No. 7

Extraire de la laine de salamandre : le Québec, l’amiante et l’âge industriel

A

u 13e siècle, lorsque l’explorateur Marco Polo était en Sibérie, des gens lui ont montré un matériau résistant au feu qu’ils disaient tissé d’une toison de salamandre. Selon la légende, les salamandres sont immunisées contre le feu – elles étaient vues dans les cendres de feux de camps; elles se cachent en effet dans les piles de bois. Marco Polo était impressionné par le matériau mais doutait de son origine. On trouve sur cette montagne certaine mine de terre, qui produit des filets ayant aspect de laine et dont on fait des étoffes qui ne brûlent pas si elles sont jetées dans le feu. À l’égard de la salamandre, ce n’est ni une bête ni un serpent car il n’est pas vrai que ces étoffes proviennent des poils d’un animal

vivant dans le feu, mais tel que je le dis proviennent d’une veine de terre.1 Marco Polo décrivait l’amiante. Ce matériau fibreux était utilisé depuis longtemps pour renfoncer les pots en terre cuite et pour faire des vêtements, des cordes et autres. Il a cependant fallu attendre la Révolution industrielle pour la mise en valeur de l’amiante. Au fur et à mesure de l’augmentation de la production industrielle durant les années 1800, croissait aussi la demande pour des revêtements isolants pour les tuyaux de vapeur, les turbines, les chaudières et les fours du nouvel âge industriel. L’amiante, ignifuge et durable, répondait parfaitement à ces demandes. Lorsque l’amiante a été découvert au Québec


job. When asbestos was discovered in Quebec in 1876, Canadian entrepreneurs were quick to capitalize.

Quebec’s white gold rush Joseph Fecteau made his 1876 discovery in Quebec’s Thetford township, supposedly while out picking blueberries. The first mines were in operation soon after, run by the Johnson brothers and by William King, who founded the town of Kingsville, which was renamed Thetford Mines in 1905. It was the beginning of a “white gold” rush. A railway was built through the area in 1879 and, in 1881, another large asbestos deposit was discovered in nearby Shipton township, at what would become the town of Asbestos. A miner named Evan William discovered the mineral while visiting his parents; it was on property owned by farmer Charles Webb. Neither William nor Webb had the financial means to open

en 1876, les entrepreneurs canadiens en ont vite tiré profit.

La ruée de l’or blanc du Québec Selon une version de l’histoire, Joseph Fecteau aurait découvert de l’amiante dans le canton de Thetford en 1876 alors qu’il cueillait des bleuets. Les premières mines ont démarré peu de temps après, tout d’abord par les frères Johnson et par William King, qui a fondé la ville de Kingsville, renommée Thetford Mines en 1905. Un autre gisement d’amiante a été découvert en 1881 dans le canton de Shipton, devenu par la suite la ville d’Asbestos. Un mineur, Evan William, l’avait découvert sur une propriété détenue par Charles Webb, un fermier; ni l’un ni l’autre n’avaient les moyens d’ouvrier une mine, mais un riche fermier, William Jeffrey pouvait

1

a mine, but a wealthy farmer named William Jeffrey did, and the Jeffrey Mine opened that same year. The unprecedented industrial production of both World Wars provided a boon to the asbestos industry, and the number of asbestos applications kept growing: insulation; firefighting and military uniforms; aprons and oven mitts; concrete; drywall, roofing and other building materials; brake linings, clutch discs and gaskets; even cigarette filters and artificial snow.

Rise and fall of an industry Production at Thetford Mines and Asbestos increased so much that large sections of towns had to be moved several times to accommodate the expanding mine pits – even the downtown areas had to give way to expansion. The Jeffrey Mine became the largest open-face chrysotile asbestos mine in the world, growing to over two kilometres in diametre and 350

le faire. La mine Jeffrey a ouvert la même année. Les deux Grandes Guerres ont été bénéfiques pour l’industrie de l’amiante et de nouvelles utilisations voient alors le jour : isolation, uniformes de pompiers, disques d’embrayage, mitaines pour le four, voire même des filtres à cigarettes et de la neige artificielle.

Montée et déclin d’une industrie La production et la taille des fosses à Thetford Mines et à Asbestos augmentaient tellement que des parties de ces villes ont dû être déménagées à plusieurs reprises. La mine Jeffrey est devenue la plus grande mine d’amiante chrysotile à ciel ouvert au monde, atteignant deux kilomètres de diamètre et une profondeur de 350 mètres. Thetford Mines est devenue la Capitale mondiale de l’amiante et la Cité de l’or blanc.

metres in depth. Thetford Mines became known as the Capitale mondiale de l’amiante (Asbestos Capital of the World) and the Cité de l’or blanc (City of White Gold). It was one of the largest asbestos-producing regions of the world. But the industry’s glory days came to an end with the discovery of serious health risks associated with asbestos. The first documented death related to asbestos was in 1906, and the first diagnosis of asbestosis (a hardening of the lung lining) was in 1924. However, it was not until the 1960s, when asbestos was linked to mesothelioma (a rare form of cancer), that the industry began to feel the heat. The 1970s brought a wave of lawsuits, resulting in greater safety standards and health benefits – but it would not be enough. International restrictions and bans through the 1980s brought about the near collapse of the industry – and of Quebec’s asbestos mining towns. CIM

Cependant, les jours de gloire de l’industrie se sont terminés lorsqu’il a été découvert que l’amiante causait de sérieux risques pour la santé. Le premier décès documenté, relié à l’amiante, date de 1906 et le premier diagnostic d’amiantose (un durcissement du revêtement des poumons) a été établi en 1924. Toutefois, ce n’est que dans les années 1960, lorsque l’amiante a été lié au mésothéliome (une forme rare de cancer), que l’industrie a commencé à avoir des problèmes. Les années 1970 ont vu de nombreuses poursuites en justice, ce qui a conduit à de normes de sécurité plus strictes et à des indemnités de maladies – mais ce ne sera pas assez. Des restrictions et des interdictions internationales durant les années 1980 ont presque anéanti l’industrie et les villes exploitant l’amiante. ICM

Travels Of Marco Polo, Penguin Classic, (réédition 3 février 2004) et www.amiante-info.ch November 2011 | 77


cim news | distinguished lecturers United front Hitting the road in the name of workforce recognition and retention by Marlene Eisner

Barbara Kirby and Jim Utley

CIM: Barbara, what is the Canadian Mining Credentials Certification Program? Kirby: The program was formed in 2005, in response to the publication of the [MiHR] study called “Prospecting the Future.” Out of it came a number of recommendations and implementation strategies, one of which was to develop a system that would help to standardize occupational descriptions, particularly for those that don’t have any kind of recognition system. We currently have four professions that we have analyzed and developed national occupational standards for: underground miner, surface miner, minerals processing operator and diamond driller.

Normand Huberdeau / N. H. Photographes Ltée

Barbara Kirby and Jim Utley share the same message, although they will likely present it from opposite ends of the country. Kirby, the senior director of workforce development at the Mining Industry Human Resources Council (MiHR), and Utley, the vicepresident of human resources at Teck Resources Limited, are CIM Distinguished Lecturers presenting on “The Canadian Mining Credentials Program – Certification: Recognizing and Retaining Skills.”

National Occupational Standards provide the foundation for certifying these occupations. During 2010, seven mine sites across Canada participated in the certification pilot program. Following a series of evaluations, a group of 98 workers were certified in the occupations of Underground Miner, Surface Miner and Minerals Processing Operator in the spring of 2011. Certification will be available nationally for these occupations towards the end of this year.

CIM: How were the standards developed? Kirby: We formed four different industry committees for each of the [four] occupations. Employees from across the country who were job incumbents from companies nominated by employers to sit on the committee conducted the occupational analysis. This included recording day-to-day tasks and areas of competencies they needed in order to do their jobs safely and effectively. After the standards were drafted, we took them to validation meetings for each of the standards in four different locations across Canada and asked employers to invite other employees to evaluate what had been done.

CIM welcomes new members Abeleira, Albert, Saskatchewan Aboulezz, Omar, Ontario Akhter, Salman, Saskatchewan Alain, Morgan, USA Albert, Craig, Saskatchewan Allen, Cameron, Ontario Allen, Dianne, Saskatchewan Altman, Benjamin, USA Arrowsmith, Hubert, USA Arsenault, Al, Saskatchewan Atwani, Ilias, Quebec Bachewich, Brent, Saskatchewan Badea, Alin, Saskatchewan Bagnell, Bill, Saskatchewan Barrette, Guillaume, Quebec Batbold, Munkhtur, Mongolia Belluz, Noris, Ontario Benedetti, Vincent, Quebec Bergbusch, Philip, Saskatchewan Bernard, Dany, Saskatchewan 78 | CIM Magazine | Vol. 6, No. 7

Bierlein, Frank, Australia Bihun, George, Saskatchewan Bogopa, Kitso, Ontario Boisvert, Hughes, Quebec Boshoff, Paul, South Africa Bowal, Brady, Saskatchewan Boyd, Jeff, Ontario Bradford, Russell, Australia Bregha, Daniel, Ontario Broda, Anne, Saskatchewan Brousseau, Karine, Quebec Brown, Julie, Ontario Bunn, Shaun, Australia Calvert, Tom, Ontario Campbell, David, Ontario Campbell, Jason, Saskatchewan Campbell, Kent, Saskatchewan Carino, Art, Saskatchewan Chapman, Peter, Australia Cheema, Imad, Saskatchewan

Clark, Daniel, Saskatchewan Cloutier, Sylvain, Quebec Commanda, Valerie, Saskatchewan Cunningham, Keith, Saskatchewan da Silva, Aluisio, Brazil Dahme, Jocelyn, Ontario Dai, Phung-Minh, Saskatchewan Das Gupta, Sudipta, Saskatchewan DesRoches, David, Saskatchewan de Werk, Marco, Quebec DiFilippo, Steven, Ontario Dodson, Peter, Saskatchewan Eaton, Sarah Jane, Saskatchewan Elder, Peter, Ontario El Mallah, Ahmad, Quebec Engel, Gord, USA England, Kent, Saskatchewan Fenske, Dana, Saskatchewan Ferguson, Marci, Saskatchewan Fernandez, Hazel, Saskatchewan

Filipe Silva, Luiz, Brazil Fischer, Annabelle, Ontario Ford, Merrill, Australia Ford, Simon, Australia Fournier-Ferland, Samuel, Quebec Fu, Lei, Quebec Gabbani, Mike, Ontario Gariépy, Julie, Quebec Garin, Florent, Quebec Gates, Tom, Saskatchewan Gauthier, Nathalie, Quebec Geffroy, François, France Gibb, Sheldon, Saskatchewan Gieni, Lonnie, Saskatchewan Giles, Tamara, Saskatchewan Glover, John, Ontario Gomwe, Tafadzwa, Quebec Gonçalves, João, Brazil Greenwood, Colin, Ontario Grier, David, Saskatchewan


cim news CIM: What was the next step? Kirby: About two-and-a-half years ago, we started to put together a framework of how a worker could qualify against the standard – become certified. We worked with the Canadian Standards Association and they did a series of research projects on how competency-based certification is reached in other sectors. Then, in collaboration with committees, they cut and designed the model to suit the needs of the mining industry.

Obituaries

CIM: Jim, tell us why Teck became involved in the pilot program? Jim Utley: The reason why Teck was supportive and willing to get involved was because of the potential impact this program would have on the industry. For those with experience, the certification program is a great way to identify the skills and competencies they have acquired throughout their career. We certainly have seen the impact on the pilots we’ve done. The feedback has been very positive: 108 miners participated, 98 received credentials and the others are working on theirs. CIM: From an HR standpoint, can you address other benefits of the program? Utley: A big advantage of the program is that it will help us attract young people to the organization. Human resources will soon be in short supply and what we want to demonstrate is that if they join the mining industry, their skills and competencies will be recognized. This will allow them to advance in their careers within the industry. It really comes down to how we can effectively manage the human resources we have in the industry. We need to spend more time on engaging people by recognizing their individual competencies and contributions. As a result, they will feel appreciated, they will feel good about what they have accomplished, and they will feel good about the organization they’re a part of. All these things help to retain people in an organization. CIM

Guo, XuChang, Ontario Haeusler, Lindsay, Saskatchewan Harding, Ben, Ontario Hicken, Anna, Ontario Hinther, Royal, Saskatchewan Hormes, Josef, Saskatchewan Howes, Gordon, Ontario Hryhoriw, Jeff, Saskatchewan Humphreys, Doug, Saskatchewan Ivanova, Irena, Australia Jiang, Quianfeng, Saskatchewan Johnson, Graeme, Ontario Jones, Robin, Australia Joyce, Andrew, Ontario Kambossos, Jim, Ontario Karnes, Philip, Saskatchewan Keil, Jamie, Saskatchewan

Kelly, Warren, Saskatchewan Khayrullina, Tatiana, Ontario Klassen, Meryl, Saskatchewan Krol, Andre, Switzerland Ku, Kamern, Ontario Lalonde, Lynn, Ontario Landine, Pat, Saskatchewan Langdon, Mark, Saskatchewan Langhorne, Amy, Saskatchewan Latourelle-Vigeant, Érika, Quebec Lawrence, Steven, Saskatchewan LeClair, Jean, Ontario Lischynski, Monique L., Saskatchewan Lobada, Agata, Quebec Loden, Lisa, USA Maathuis, Harm, Saskatchewan Maciag, Bryan, Ontario Mackenzie, James, Australia

Macpherson, Dave, Saskatchewan MacRae, Graham, Ontario Major, Rachel, Quebec Marsh, David, Australia Martens, Diane, Saskatchewan Maxton, David, Australia McCallum, Barry, Saskatchewan McKay, Charlene, Saskatchewan Merkowsky, Alan, Saskatchewan Miley, Jamie, Saskatchewan Mobbs, Philip, USA Moffatt-Friesen, Faye, Saskatchewan Morin, Serge, Quebec Moulding, Tim, Saskatchewan Muldoon, Joseph, Saskatchewan Murchie, Mike, Ontario Murillo, John, Saskatchewan

Photo courtesy of Knelson Corporate Office.

CIM: How is this initiative different from a training program? Kirby: This program is not about someone suddenly having more skills than they had yesterday. It’s about acknowledging the skills the person already has and using those skills in the workplace. It’s about worker satisfaction and self-esteem. Our current data shows workers in non-recognized areas have a turnover rate that’s almost twice as high as other workers, so employers recognizing the skills of these employees will be a great retention tool.

Byron Knelson was known throughout the industry for inventing the Knelson gold concentrator, a groundbreaking development for gold processing that is used around the world for fine gold recovery in mines. The concentrator has achieved world recognition in the gravity concentration of ores. Today, there are 24 Canadian mines utilizing Knelson concentrators as an integral part of their recovery systems. These include 11 of the country’s top 15 gold producers. Knelson concentrator gravity circuits are now recovering in excess of 1.25 million ounces of gold annually, approximately 25 per cent of Canada’s total gold output. Knelson received international recognition as well as a number of awards for his work in the field. In 1999, he received the CANMET Technology Transfer Award in recognition of his outstanding contribution to technology advancement in the field of mineral processing. He was also the recipient of the Canadian Export Development Award and held in excess of 30 patents, most of which related to enhanced gravity recovery. He passed away in August. *** Isaac Klassen joined CIM in 1957 and became a Life Member in 1987. November 2011 | 79


cim news

| award winner

Teaching the ropes George Delorme earns industry respect for his contributions as a rope specialist

GIVING BACK Rebuilding, one city at a time

Franklin Lobos and Omar Reygadas are among the 33 Chilean miners rescued last October after spending 69 days trapped in a mine near San Jose, Chile. It is the first time either miner has travelled to Canada. They were accompanied by members of Together for Chile, a group of Canadians who support the country’s rebuilding. The miners promoted the National Folkloric Ballet of Chile (BAFONA) Canada Tour 2011 – a cultural dance performance that raised funds for the reconstruction of a Chilean school destroyed by an earthquake in 2010.

80 | CIM Magazine | Vol. 6, No. 7

Courtesy ATCO Structures & Logistics

ATCO Structures & Logistics and Together for Chile teamed up to bring two rescued Chilean miners to Canada on a promotional tour of seven major cities.

The president of Haggie North America Inc. and CIM Fellow has published 11 technical papers related to safety and the proper use of steel wire rope to optimize rope life. Delorme also writes detailed technical bulletins that have become a respected resource in the industry, so much so that they have been used as part of the rope training courses at Cambrian College. “Yes, it’s a bit of marketing for me,” he says, “but I felt it was important to write these technical bulletins, and once a year, I send a new one out to all the mines.” The Cornwall, Ontario, native graduated with a mechanical engineering technology degree from Algonquin College. He landed his first job right after graduation with Wire Rope Industries, which came to Algonquin Normand Huberdeau / N. H. Photographes Ltée

By Marlene Eisner Over his 43-year career, George Delorme estimates he has visited mines in 22 countries and has been to every underground mine in North America. The 2011 recipient of the Donald J. McParland Memorial Medal – awarded for excellence and innovation in operations engineering – is a specialist in wire rope applications and problem solving for underground and open pit mining. The award recognizes Delorme’s outstanding contributions to the mining industry Delorme receives Donald J. McParland Memorial Medal from thenin the field of wire rope safety, CIM president Chris Twigge-Molecey education and performance, as well as his dedicated service to CIM. way to get people and materials in Being chosen for the award was a and out of the mine.” surprise, says Delorme, because of the Delorme has been an active memsimplicity of wire rope. “My initial ber of CIM since 1975, having served reaction was that I didn’t deserve it,” on the Maintenance and Engineering he says. “It’s not an overly sophisti- Society’s executive committee for 11 cated product, although it is the only years (one of them as its chairman).


cim news looking specifically for someone to help supervise the prestretching of the cables for the Halifax Dartmouth Suspension Bridge. When the project was completed about five months later, Delorme was invited to apply for a position in the company’s mining division. It was 1968 and he was only 24 years old. “I guess they were satisfied with my work,” he laughs. “I had been in the mining division for a month when they asked me to go out to Saskatchewan to assist in the roping-up of a potash mine now called PCS, Allan – but I had no experience. The comical part was I had never been on an airplane, had never even seen a mine and had never been underground.” Delorme was bitten by the mining bug and stayed with Wire Rope Industries for 28 years. In 1996, he was approached by South African-based Haggie Rand, part of Anglo American, and was presented with an offer he could not refuse. “It was a tough decision to leave after all those years, but I knew Haggie and their capabilities. Annually, the company would send some of their management team to most of the wire rope companies around the world and when they visited Canada, I served as their tour guide around the plant.” At 67 years old, Delorme is as busy as ever, with no intention of retiring any time soon – although he says he could use an assistant. He works out of his house in Pincourt, Quebec, and while he still travels, it is mostly in North America. As a young engineering technology graduate in the mid1960s, Delorme had no idea what was awaited him when good fortune drew him into mining. Forty-three years later, he is happy to tell young engineers about the exciting careers that lie ahead of them: “You will have endless opportunities to get into so many areas of the mining industry. There are tremendous possibilities to gain a lot of experience.” CIM

CALENDAR | CALENDRIER CIM EVENTS CIM Calgary Branch: Technical Luncheon December 14 | Calgary, AB Contact: James Faraday, jfaraday@norwestcorp.com CMP 2012 – 44th Annual Canadian Mineral Processors Operators’ Conference | 44e Conférence annuelle des minéralurgistes du Canada January 17-19, 2012 | Ottawa, ON Contact: Janice Zinck, Janice.Zinck@NRCan-RNCan.gc.ca www.cmpsoc.ca CIM Sudbury Branch: General Membership Meeting January 19, 2012 | Sudbury, ON Contact: Christine Bertoli, sudbury@cim.org CIM Saskatoon Branch: Environmental Night January 19, 2012 | Saskatoon, SK Contact: Mike Castleberry, Michael.castleberry@mosaicco.com CIM Sudbury Branch: Sweetheart Dinner & Dance February 11, 2012 | Sudbury, ON Contact: Christine Bertoli sudbury@cim.org CIM Saskatoon Branch: Uranium Night February 16, 2012 | Saskatoon, SK Contact: Mike Castleberry Michael.castleberry@mosaicco.com

GLOBAL EVENTS Multi-million dollar grant for health initiatives in Africa BHP Billiton has provided US$25 million to help improve the health of women and young children in Africa. The company made a donation to a program that will be led by PATH, an international non-profit organization that creates sustainable, culturally relevant solutions to address health issues. As part of its community investment program, BHP Billiton’s charity – Sustainable Communities – made the grant to ”Window of Opportunity,” a new five-year project that aims to improve critical health and development services for pregnant women and children less than two years of age in South Africa and Mozambique. More specifically, PATH will focus on improving antenatal and newborn care, infant nutrition, child development practices, and the quality of health services and provision, as well as fostering community engagement with the improved services, with the help of governmental and civil society partners. The project is estimated to reach 750,000 women and children.

Fray International Symposium on Processing in a Clean Environment December 4-7 | Cancun, Mexico www.flogen.com/FraySymposium 10th Annual Shutdowns Superconference December 6-7 | Calgary, AB www.ShutdownsSuperconference.com Mineral Exploration Roundup 2012 January 23-26, 2012 | Vancouver, BC www.amebc.ca 2012 SME Annual Meeting & Exhibit February 19-22, 2012 | Seattle, Washington, USA www.smenet.org PDAC 2012 International Convention, Trade Show & Investors Exchange – Mining Investment Show March 4-7, 2012 | Toronto, ON www.pdac.ca/pdac/conv Atlantic Heavy Equipment Show March 29-30, 2012 | Moncton, NB, www.ahes.ca Comminution ‘12 April 17-20, 2012 | Cape Town, South Africa www.min-eng.com/comminution12/ November 2011 | 81


cim news

| strategic plan

TWO CITIES: A NEW TALE BEGINS CIM streamlines its operations and budget with a revamped conference plan By H. B. George

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or years, the CIM Conference & Exhibition’s venues have taken up a sizeable chunk of the event’s expense budget, forcing the Institute to re-evaluate its game plan. To continue delivering a stellar conference while maintaining the same level of service and affordable rates for attendees, tough decisions needed to be made. The conference, which currently rotates between Vancouver, Montreal, Edmonton and Toronto, was also beginning to outgrow some of its locations. In 2008, CIM could have sold twice as many exhibitor booths, but the Edmonton venue was too small to accommodate them. Many of these companies wanted to showcase new technologies or seek out potential employees, but there simply was not space for them. “The exhibitors on the waiting list felt this was outrageous,” says Jean-Marc Demers, deputy executive director of CIM. It was obvious that things needed to change. Fears became reality this year while pre-booking the Edmonton 2012 event. “We sold out the Edmonton Exhibition by the end of the first day of the Montreal event,” says Martin Bell, CIM’s exhibition sales manager. “We had to turn away people who had scheduled appointments to pre-book Edmonton. There were a lot of very unhappy people and now, there are almost as many companies on the waiting list as there are confirmed exhibitors.” When Demers first put forth the two-city conference proposal five years ago, there were no takers. However, circumstances like these convinced him that it needed to be revisited. After CIM Council’s approval in August 2011, the plan is finally coming to fruition and the payoff will amount to approximately $1 million in savings over the next decade. Beginning in 2014, the conference will alternate between Vancouver and Montreal until 2023. Although Council wanted to maintain visibility across the country, CIM did not have enough negotiating power to

82 | CIM Magazine | Vol. 6, No. 7

keep more than two cities in the plan. The new slate opened up contracts with preferred dates, favourable commercial agreements and support from the tourism boards, which agreed to use their marketing and communications efforts thus creating a win-win situation. Selecting the cities was a difficult task. CIM looked at prospective venues and the historical performance of the conferences in all four cities. Montreal and Vancouver proved to be the most successful when it came to revenues, with the highest number of paying delegates and overall participation in attendance. Another consideration was the annual PDAC International Convention in Toronto, which runs approximately eight weeks shy of CIM’s conference and typically overshadows the event. As CIM continues to expand its international reach, attendees have found it difficult to justify coming back to Toronto to attend both events. Even though the decision will be beneficial financially, Demers remains sympathetic to the historical aspect associated with the conference venues. “I understand that people have felt abandoned by this new plan, and we still want to look at how we can develop specific content that would be a unique product in Toronto and Edmonton,” he says. “The two-city plan gave us power to negotiate better financial terms. The current downturn of the economy affected both the venues and tourism bureaus. The conditions were right this past year to bring CIM a significant offering in cost control.” The two-city plan also hits one of the main pillars of CIM’s Strategic Plan: to strengthen organizational effectiveness. It has provided an opportunity to change business processes, organize logistics and streamline the planning process. “This plan is all about growth” says Demers. “In order to sustain investments, we need to generate a return. As of 2014, we will reap the benefits of today’s decision.” CIM


plan stratégique

| nouvelle de l’icm

© Ron Stern

DEUX VILLES : UNE NOUVELLE HISTOIRE COMMENCE L’ICM rationalise ses opérations et son budget grâce à une stratégie de congrès réorganisée

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endant des années, les lieux du congrès et du salon commercial de l’ICM ont pris une bonne partie du budget de dépenses d’événement, forçant l’Institut à réévaluer sa stratégie. Afin de continuer à offrir un remarquable congrès tout en maintenant le même niveau de service et les mêmes tarifs abordables aux participants, nous avons dû prendre des décisions difficiles.

pouvoir de négociations pour conserver plus de deux villes. Cette stratégie a permis d’obtenir des contrats avec de meilleures dates, de bonnes ententes commerciales et un bon soutien des conseils du tourisme qui ont accepté d’utiliser leurs efforts de marketing et de communications pour créer une situation qui profite à tous.

Le congrès, qui alterne actuellement entre Vancouver, Montréal, Edmonton et Toronto, a également commencé à devenir trop grand pour ces emplacements. En 2008, l’ICM aurait pu vendre deux fois plus de kiosques d’exposant, mais le hall d’Edmonton était trop petit pour tous les contenir. La plupart de ces entreprises voulaient mettre en valeur leur nouvelle technologie ou rechercher des employés potentiels, mais l’espace était tout simplement trop restreint pour les accommoder. « Les exposants sur la liste d’attente ont trouvé cela scandaleux », déclare Jean-Marc Demers, directeur général adjoint de l’ICM. Il était évident que nous devions apporter des changements.

Choisir les villes n’a pas été facile. L’ICM a pris en compte les lieux potentiels et la performance historique des Congrès dans les quatre villes. Montréal et Vancouver se sont avérées être les villes qui réussissaient le mieux, en ce qui a trait aux revenus, avec le nombre le plus élevé de délégués payants et la plus grande participation générale.

Les inquiétudes se sont concrétisées cette année pendant la pré-réservation pour l’événement d’Edmonton 2012. « Nous avons vendu toutes les places du salon commercial d’Edmonton à la fin de la première journée de l’événement qui se déroulait à Montréal », a déclaré Martin Bell, directeur des ventes du salon de l’ICM. « Nous avons dû renvoyer des gens qui avaient un rendez-vous pour la pré-réservation d’Edmonton. Beaucoup de personnes étaient très mécontentes, et maintenant, il y a presque autant d’entreprises sur la liste d’attente que d’exposants confirmés. » Lorsque Demers a proposé l’idée d’un congrès de deux villes il y a cinq ans de cela, personne n’était d’accord. Cependant, des circonstances comme celle-ci l’ont convaincu qu’il était temps de repenser à son idée. Après avoir obtenu l’approbation du conseil de l’ICM en août 2011, la stratégie se concrétise finalement et les économies qui en découlent approcheront les 1 million de dollars pour les 10 prochaines années. À partir de 2014, le congrès aura lieu en alternance entre Vancouver et Montréal jusqu’en 2023. Bien que le conseil voulait maintenir une visibilité dans tout le pays, l’ICM ne possédait pas assez de

Un autre élément pris en compte était la Convention internationale annuelle de l’ACPE qui se déroule environ huit semaines avant le congrès de l’ICM et qui éclipse habituellement ce dernier. Pendant que l’ICM continue d’étendre sa portée internationale, les participants ont trouvé difficile de devoir revenir à Toronto pour participer aux deux événements. Même si la décision sera bénéfique financièrement, Demers demeure compatissant envers l’aspect historique associé avec les lieux du congrès. « Je comprends que les gens se sont sentis abandonnés par cette nouvelle stratégie, et nous souhaiterions toujours voir comment nous pouvons élaborer un contenu spécifique qui serait un produit unique à Toronto et à Edmonton, », déclare-t-il. « La stratégie de deux villes nous a donné le pouvoir de négocier de meilleurs termes financiers. La baisse actuelle de l’économie a affecté autant les lieux que les agences de tourisme. Cette dernière année, les conditions étaient en place pour apporter à l’ICM une offre importante de contrôle des coûts. » La stratégie de deux villes rejoint l’un des piliers principaux du plan stratégique de l’ICM : renforcer l’efficacité organisationnelle. Elle a fourni une occasion de changer les processus d’affaires, d’organiser la logistique et de rationaliser le processus de planification. « Ce plan vise la croissance », déclare Demers. « Afin de soutenir les investissements, nous devons obtenir des résultats. À partir de 2014, nous allons récolter les bénéfices de la décision prise aujourd’hui. » ICM November 2011 | 83


44 www.cmpsoc.ca

th Annual Canadian Mineral Processors e Operators’ Conference Conférence annuelle des minéralurgistes du Canada

Courtesy of Ottawa Tourism


n behalf of the CMP Board of Directors, I am pleased to invite you to join us in beautiful, historic Ottawa this January for the 44th Annual Canadian Mineral Processors Operators’ (CMP) Conference. For over 40 years, the CMP Conference has provided a forum for discussing best practices and the latest improvements in mineral processing technology. Nearly 500 delegates attended last year’s conference and profited from the outstanding opportunities in networking, knowledge sharing and personal development the CMP Conference consistently offers.

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The Technical Program will be the heart and soul of the conference with 39 technical papers presented by mill operators and mineral processing professionals. In addition to discussions on Canadian milling practices, international speakers will weigh in on the mineral processing challenges they encounter abroad. Following a keynote speech by a world-renowned mineral processing expert, papers will be presented on innovative operating practices, plant optimization projects, as well as potential economic and/or environmental solutions to challenging comminution, flotation, gold and other mineral processing circuits. Short courses on Sunday and Monday will precede the Technical Program. These courses are usually well-attended and seats may be limited. Those interested in attending should book early to avoid disappointment. The CMP Conference includes a variety of invitations to social and professional networking events. On Monday evening, the Student Mixer will offer delegates the chance to meet students from almost every post-secondary institution that offers a mineral processing program. On Tuesday evening, delegates can choose to socialize at the Chairman’s Reception and/or participate in the friendly annual hockey game between delegates from Eastern and Western Canada. Finally, on Wednesday evening, all delegates are invited to the CMP Annual Banquet where we will honour the exceptional contributions of our peers in the advancement of our society and the mineral processing profession as a whole. All events – except the hockey game – will take place at the Westin Hotel in downtown Ottawa. We look forward to you joining us in the capital this January. Donald Leroux Conference chairman u nom du Conseil d’Administration des Minéralurgistes du Canada, il me fait grand plaisir de vous inviter à notre 44e conférence annualle qui se tiendra dans la splendide ville d’Ottawa du 15 au 19 janvier 2012. Depuis plus de 40 ans, nous préservons notre mission de créer un événement où la dissémination de méthodes innovatrices d’opération de concentrateurs et de technologies émergentes sont à l’honneur. Près de 500 délégués ont participé à la conférence l’an dernier pour profiter de cette occasion exceptionnelle de réseautage, de partage d’expériences industrielles et de développement professionnel.

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Encore cette année, le programme technique sera au coeur de l’événement avec près de 40 articles présentés par des opérateurs d’usines et autres professionnels de la minéralurgie. Pendant que plusieurs se concentreront sur des problématiques typiquement canadiennes, d’autres présentateurs discuteront des défis techniques auxquels ils font face à l’étranger. Un professionnel chevronné de la minéralurgie animera la plénière d’ouverture du programme technique. Les présentations feront l’objet d’un large spectre de sujets passionnants dont les méthodes innovatrices d’opération d’usines, l’optimisation de procédés industriels, la conception d’usine ainsi que l’implantation de solutions économiques et respectueuses de l’environnement à défis techniques d’opération en minéralurgie. Des cours intensifs sur différents aspects de la minéralurgie auront lieu le dimanche et le lundi précédant le programme technique. Ces cours sont généralement populaires et les places sont limitées. Il est recommandé de réserver tôt. Plusieurs activités sociales et de réseautage seront également au programme. La Soirée des Étudiants offre aux délégués l’occasion de rencontrer des étudiants de toutes les institutions d’enseignement canadiennes où un programme de minéralurgie est offert. Le mardi soir, les participants peuvent élargir leur réseau professionnel à la très décontractée Réception du Président ou chausser les patins pour participer à la partie amicale de hockey. Finalement, le mercredi soir, tous les délégués sont invités au Banquet Annuel des Minéralurgistes du Canada où sont reconnues officiellement les contributions exceptionnelles des membres de notre société à l’avancement de notre profession. Toutes les activités sociales – sauf évidemment la partie de hockey – et le programme technique ont lieu à l’hôtel Westin Ottawa. En espérant vous voir en grand nombre dans la capitale canadienne en janvier prochain.

General Information | Renseignements généraux This year’s conference, taking place in the Confederation Ballrooms of the Westin Hotel, will feature presentations on various aspects of mineral processing including: operations, plant optimization, flotation, advanced technologies, gold processing and comminution. La conférence se tiendra à Ottawa, à l’Hôtel Westin, Salle de bal Confédération et comprendra des présentations traitant de divers aspects minéralurgiques tels que les opérations minières, l’optimisation des usines de traitement, la flottation, les technologies avancées, le traitement de l’or et la comminution.

Registration | Inscription Pre-registered delegates can pick up their registration kits at the conference desk, located on the 4th Floor of the Westin Hotel, on Monday between 19:00 and 22:00, Tuesday between 7:00 and 15:15, Wednesday between 7:30 and 15:15, and Thursday between 8:00 and 15:15. New registrations will also be taken during these times. The early registration fees (taxes included) are: $500 CIM/AIME/TMS members $100 CIM member retirees (60+) $690 Non-members (includes a one-year membership to CIM) Registration includes access to the three-day meeting, coffee breaks, Tuesday’s luncheon and evening social reception, Wednesday evening’s reception and awards dinner, as well as a copy of the conference proceedings. Note: Pre-registration forms must be received by December 20, 2011. Conference registration and attendance at social events should be indicated on the form or when registering online at www.cmpsoc.ca. Any requests for refunds must be made, in writing, prior to December 20, 2011. After this date an administration fee of $100 will be charged for new and/or cancelled registrations.

Tous les délégués inscrits à l’avance pourront recevoir leur trousse d’inscription en se présentant au bureau d’inscription, 4e étage de l’Hôtel Westin, le lundi soir entre 19 h et 22 h, le mardi de 7 h à 15 h 15, le mercredi de 7 h 30 à 15 h 15 et le jeudi de 8 h à 15 h 15. Les autres délégués qui désirent participer à la conférence pourront également s’inscrire à cet endroit, aux mêmes heures. Les frais de pré-inscription (taxes incluses) sont de : 500 $ pour les membres de l’ICM, TMS et AIME 100 $ pour les membres de l’ICM retraités (60+) 690 $ pour les autres participants (inclus un abonnement d’un an à l’ICM) Ces frais donnent droit : aux conférences, aux pauses-café, au dîner le mardi, à la réception sociale le mardi en soirée, à la réception/souper le mercredi et à une copie des comptes rendus. N.B. : Les formulaires de pré-inscription doivent être reçus avant le 20 décembre 2011. Veuillez vous inscrire à la conférence et aux activités sociales en remplissant un formulaire d’inscription ou encore en ligne au www.cmpsoc.ca. Les demandes de remboursement doivent être faites par écrit avant le 20 décembre 2011. Après cette date, des frais de 100 $ s’appliqueront aux nouvelles inscriptions ainsi qu’aux inscriptions annulées.

Donald Leroux Président de la conférence November 2010 | 85


Provisional Technical Program | Programme technique provisoire TUESDAY, JANUARY 17

Morning Session: Operations 8:00 Opening Remarks 8:15 Plenary — Significant Canadian developments in mineral processing technology over the past 50 years J. E. NESSET 8:55 Applying a customer-based approach at Vale’s Clarabelle mill J. DOUCET, VALE

9:20 Update of Chilean mining projects and technological trends J. ROSES, HATCH CHILE

9:45 Coffee Break 10:15 Concentrate grade and regrind size improvement on the East pit hypogene ore at Kemess Mine M. BRISSETTE, SGS CANADA INC. 10:40 Z1600 Jameson Cell test rig: from rental to revenue A. TAYLOR, VALE 11:05 Canatuan Cu/Zn flotation metallurgy: dealing with zinc pre-activation E. ISRAEL, TVI PACIFIC 11:30 The use of simulation to identify the source of variability in the operation of a hydraulic classifier for iron ore concentrate M. DESNOYERS, ARCELORMITTAL MINES

Afternoon Session: Rare Earths, Industrial and Energy Minerals 13:30 Some observations in metallurgical coal projects T. LU, WARDROP ENGINEERING INC.

13:55 Rare earth and thorium recovery in Canada J. R. GOODE, J. R. GOODE AND ASSOCIATES

14:20 A review of rare earth mineral processing technology J. ZHANG, SASKATCHEWAN RESEARCH COUNCIL

14:45 Coffee Break 15:15 An overview of spodumene beneficiation M. AGHAMIRIAN, SGS CANADA INC.

15:40 An overview of potash flotation M. OLIAZADEH, HATCH CANADA 16:05 Secondary recovery of bitumen using Jameson Downcomers O. NEIMAN, SYNCRUDE CANADA

WEDNESDAY, JANUARY 18

Morning Session: Flotation 8:30 Removal of cyanide as gangue depressant in Cu-Mo ore M. McADAM, SNC-LAVALIN INC.

8:55 Indirect optimization of a pilot flotation column at LaRonde R. DEL VILLAR, LAVAL UNIVERSITY

9:20 A benchmarking tool for assessing flotation cell performance J. E. NESSET, McGILL UNIVERSITY

9:45 Coffee Break 10:15 A review of optimizing strategies for flotation banks M. MALDONADO, McGILL UNIVERSITY

10:40 Nanoparticle flotation collectors: a state-of-the-art for mineral processing S. YANG, McMASTER UNIVERSITY 11:05 Innovations in reagent technology: xanthate replacements and new modifiers T. BHAMBHANI, CYTEC 11:30 Development of processing options for a gold ore using selective arsenopyrite-pyrite flotation D. KONINGEN, GOWEST GOLD LTD.

Afternoon Session: Gold and Hydrometallurgy 13:30 Gold deportment studies with Barrick Gold A. CHATTOPADHYAY, SGS CANADA INC.

13:55 Error associated with the sampling of gold ores C. BAZIN, LAVAL UNIVERSITY

14:20 An overview of the Li2CO3 process flow sheet for concentrates derived from hard rock Li sources S. MACKIE, SGS CANADA INC. 14:45 Coffee Break 15:15 Gold passivation: some fundamental issues to highlight C. OLSEN, COREM

15:40 Characterization and improvement of mass transfer in cyanidation reactors S. GIRGIN, COREM 16:05 Audit results of the gravity circuit at the Goldex concentrator M. FULLAM, KNELSON

THURSDAY, JANUARY 19

Morning Session: Advanced Technologies 8:30 Membrane technology applications in mineral processing plants R. CAMERON, CANMET-MMSL

8:55 On site and in-plant hydrogeochemical mapping: a tool to define performance losses due to water quality S. SOMOT, COREM 9:20 Characterizing ore mircotexture using X-ray micro-tomography C. EVANS, JKMRC

9:45 Coffee Break 10:15 Development and testing of a more effective froth handling pump R. J. VISINTAINER, GIW INDUSTRIES INC. 10:40 Thickener bed level measurement using electrical impedance tomography A. LEKIKOINEN, NUMCORE 11:05 Comparison of flotation-grade dynamics enabled through realtime measurement K. KEET, BLUE CUBE SYSTEMS 11:30 Implementing best practices of metal accounting at the Strathcona mill L. LACHANCE, ALGOSYS

Afternoon Session: Comminution 13:30 Using MillMapper to reduce milling costs and improve performance P. CLARKE, SCANALYSE 13:55 Non-destructive testing - crown gear inspection T. SHUMKA, GLOBAL INSPECTIONS-NDT, INC.

14:20 Considerations for SAG mill sizing in mining projects C. SCHUFFENEGER, HATCH CHILE

14:45 Coffee Break 15:15 Economics of replacing a rod mill with HPGR in a circuit with a ball mill B. CHRISTENSEN, WEIR MINERALS 15:40 Improvements in HPGR and grinding mill technology S. HALL, HOFMANN ENGINEERING

16:05 Predicting the effect of grinding media size distribution on the performance of ball milling using DEM S. MAKNI, COREM


Short Courses | Cours abrégé Three short courses will be offered at CMP 2012: Flotation Fundamentals and Applications, Janusz Laskowski/Sergio Castro, UBC: 2-day course, January 15 and 16 – $700; State-of-the-art Metallurgical Accounting, Frederik Flament, Algosys: 1-day course, January 16 – $350; Statistical Benchmark Surveying, Norman Lotter, Xstrata Process Support: 1-day course, January 16 – $350. Fees include lunch, coffee breaks and course materials. Attendance is limited, so please register early. Trois cours abrégé seront offerts : Flotation Fundamentals and Applications, Janusz Laskowski/Sergio Castro, UBC (deux jours, 15 et 16 janvier, 700 $); State-of-the-art Metallurgical Accounting, Frederik Flament, Algosys (un jour, 16 janvier, 350 $); Statistical Benchmark Surveying, Norman Lotter, Xstrata Process Support (un jour, 16 janvier, 350 $). Les coûts incluent le matériel, les pauses-cafés et les repas. Les places disponibles étant limitées, veuillez vous inscrire le plus tôt possible.

Companion’s Program | Programme d’accompagnement The Companion’s Program includes: Visit to local museums, Coffee & tea social, Wine and food tasting event, plus other other fun activities. The cost of the program is $50 and does not include a ticket to the Wednesday Reception and Awards Dinner.

Social Program | Programme sociale All activities take place at the Westin Hotel, unless otherwise indicated. Tous les activités se déroulent à l’Hôtel Westin, sauf si indiqué autrement.

Monday | Lundi 19:00-22:00 Early conference registration [4th Floor] Inscription anticipée à la conférence [4e étage] 20:00-23:00 Student Mixer [Quebec Room, 4th Floor] Soirée des étudiants [Salle Quebec, 4e étage]

Tuesday | Mardi 7:00-8:00 7:00-15:15

Authors’ Breakfast [Alberta Room] Petit déjeuner des auteurs [Salle Alberta] Registration [4th Floor] Inscription [4e étage] Beer and Sandwich Social [4th Floor] Activité sociale avec bière et sandwichs [4e étage] Hockey Cup Challenge [Carleton University] Partie de hockey [Université Carleton] Chairman’s Reception, featuring CMP’s Got Talent [Governor General’s Ballroom] Réception du président [Salle de bal Gouverneur Général]

Cette année, le programme d’accompagnement offrira : une visite aux musées locaux, une réception sociale (thé et café), une dégustation de vins et divers aliments, ainsi que plusieurs autres activités. Le coût de ce programme est de 50 $ sans toutefois inclure le billet du souper de la réception et remise de prix qui aura lieu le mercredi soir.

12:10

Authors | Auteurs

21:00

Authors, session chairs and regional representatives must register as conference delegates. A speaker’s breakfast will be provided on the day of the presentation at 7:00 a.m. to be held, tentatively, in the Alberta Room. Authors are to contact John Chaulk 613.947.0394, john.chaulk@nrcan.gc.ca) for presentation information.

Wednesday | Mercredi

Tous les auteurs, les présidents de sessions et les représentants régionaux doivent s’inscrire comme délégués à la conférence. Un déjeuner sera servi le jour de leur présentation à 7 h dans le Salon Alberta (à confirmer). Auteurs, veuillez contacter John Chaulk (613.947.0394, john.chaulk@nrcan.gc.ca) pour obtenir de l’information au sujet des présentations.

19:00

7:00-8:15 7:30-15:15 11:55

Accommodations | Hébergement A special rate of $189 (single/double) and $239 (deluxe), with complementary Internet, has been negotiated at the Westin Hotel. The hotel will only guarantee these rooms until January 2, 2012. Last year, our block of rooms sold out in December, so please book you room early to avoid disappointment. Book directly with the Westin Hotel at 613.560.7000, or fax 613.560.2707. Be sure to reference the Canadian Mineral Processors Conference to receive the special rate. You can also make your hotel reservations online through the link on the CMP website. Un nombre limité de chambres a été négocié avec l’Hôtel Westin à un tarif spécial de 189 $ en occupation simple/double et 239 $ pour une chambre de luxe, incluant l’accès à l’Internet sans frais. Veuillez noter que les chambres sont retenues à votre intention jusqu’au 2 janvier 2012. Réserver votre chambre le plutôt possible afin d’éviter des inconvénients. Les réservations peuvent être faites en communiquant directement avec l’Hôtel Westin (tél. : 613.560.7000 ou téléc. : 613.560.2707). Si vous réservez par téléphone, prière d’indiquer que vous participez à la Conférence des minéralurgistes du Canada. Vous pouvez également réserver votre chambre en ligne à partir de notre site internet.

18:00

18:30 19:30

Authors’ Breakfast [Alberta Room] Petit déjeuner des auteurs [Salle Alberta] Registration [4th Floor] Inscription [4e étage] Annual Business Meeting (all welcome) [Confederation Ballroom] Séance administrative annuelle (ouverte à tous) [Salle de bal Confédération] Executive Reception [Colonel By Suite] Réception de la haute direction [Suite Colonel Bay] Reception [4th Floor] Réception [4e étage] Annual Banquet [Confederation Ballroom] Banquet annuel [Salle de bal Confédération]

Thursday | Jeudi 7:00-8:15 8:00-15:15

Authors’ Breakfast [Alberta Room] Petit déjeuner des auteurs [Salle Alberta] Registration [4th Floor] Inscription [4e étage]


HISTORY OF

economic geology Australia (Part 1) By R. J. (Bob) Cathro, Chamainus, British Columbia

“All Australia’s large inland cities of the nineteenth century were mining cities, and gold made Melbourne for half a century the largest coastal city in the land. … This was the last continent found in Europe’s long search for treasure and perhaps in no other continent has European colonization been so affected by the winning of metals. In two periods metals were Australia’s most valuable export. New mining regions virtually rescued every Australian colony at least once from depression. They influenced racial policies, unionism, religious life, equalitarian laws, and politics. One small fact illustrates this pervasion: half of Australia’s prime ministers were either the sons of men who were attracted to Australia through gold or were themselves once residents or representatives of the mining fields. … Wealth from Australian rocks created financial dynasties in London and Melbourne, and a fortune from Queensland gold was indispensable in finding rich oilfields in the Middle East.” ~Blainey, 1963, p. 2

88 | CIM Magazine | Vol. 6, No. 7

One thing that is quite striking about the Australian gold rush is how different it was from the one in California (Cathro, 2007), even though both were occurring at the same time. Although California was “the land of the free” and Australia was established by England as a penal colony, Australian gold miners were lawful and peaceful by comparison. They set a much better example for the future Cariboo and Klondike gold rushes, in British Columbia and Yukon, respectively. Gold was first reported in Australia in 1823 by John McBrien, a government worker who was surveying a road east of Bathurst in the colony of New South Wales. He noted in his field book: “At E. (end of survey line) 1 chain 50 links to (Fish) river and marked gum tree. At this point I found numerous particles of gold convenient to the river.” Like many other reports by shepherds and convicts who were “fossicking” (a Cornish term for prospecting), it was hushed up by a government that was fearful of the impact that gold mining might have on pastoral life. There was no concerted support for mining at the time because of an archaic English law that deemed all gold and silver to be the property of the Crown. As early as 1841, William Branwhite Clarke, an Anglican clergyman from England who had studied geology under Professor Sedgewick at Cambridge (a dangerous combination), saw specks of gold in quartz and granitic rubble while on a mapping trip he began from his home in Sydney. Clarke was a believer that gold was morally and economically undesirable and a menace. He later wrote: “There is no instance of a man making his fortune by opening a gold mine.” Clarke collected many specimens of gold given to him by parishioners and sent some to Sedgewick for the university museum. In 1844, he showed his best specimens to Governor Gipps of New South Wales, who, as expected, responded with indifference. News of the California Gold Rush reached Australia early in 1849 and prompted many Australians to migrate to the United States. When they returned excitedly with samples and stories of gold, it prompted the New South Wales government to provide a reward for a mineable discovery to encourage its citizens to prospect at home. In 1849, the first significant Australian discovery was made in the Victoria district by a shepherd named Thomas Chapman. The young man showed up at a jeweller in Melbourne with 38 ounces of gold, including a nugget weighing 16 ounces, which people believed was found near Avoca, about 140 kilometres northwest of Melbourne. He refused to reveal the exact location of his find. Significant transformations occurred in New South Wales and throughout Australia in 1851. One of the principal figures that year was Edwin H. Hargraves, a 34-year-old English promoter and scamp who had lived half his life in Australia. In Blainey’s words: “He had been a sailor, station overseer, farmer, publican, shipping agent, and cattle owner, succeeding at none of these trades. In 1849, he went to California to dig gold and boasted about how well he did, writing in his autobiography ‘The greater our success was, the more anxious did I become to put my own persuasion to the test, the existence of gold in New South Wales.’ In fact he was not a lucky digger; he was not even energetic. A man of his weight found it exhausting to shovel gravel or work the cradle all day, and of the year he spent in California he actually dug for gold only a few months. He liked instead to potter about the camp or to yarn around the fire, and he would discuss with his friend Davison whether Australia might be rich in gold. They discussed places where gold had been found and McGregor the gold-finder was often in their talk. When in March 1850 Hargraves was lodging in San Francisco to avoid


HISTORY OF

economic geology winter on the goldfields, he wrote to a Sydney merchant: ‘I am forcibly impressed that I have been in a gold region in New South Wales, within three hundred miles of Sydney.’ Always restless, the idea of finding payable gold in his own land obsessed him. With the approach of his second winter in California he thought of snow and iced winds and hastened his plans to return to Sydney. Concern for his wife and five children … added to his restlessness. And so, having failed again in a new occupation, he walked the wooden sidewalks of San Francisco for the last time and joined disappointed Australians who were sailing home.”

Fig. 1 Australian States

Fig. 2 Placer mining towns in New South Wales (from Blainey, 1963)

Hargraves realized that few Australians knew how to explore for alluvial (placer) gold. When he returned home to Sydney, he boasted openly to a jeweller and a lawyer that he would find some gold. After obtaining a grubstake from a merchant, he headed across the Blue Mountains with two assistants to an area in New South Wales where, in 1823, a surveyor had reportedly seen gold and found a few colours (tiny specks) in a waterhole in the valley of Lewis Ponds Creek. After having little success with the pan, he had the crew build a California cradle with which they were soon able to collect a few flakes from each bucket of gravel. Hargraves left the others to continue the work and headed for Sydney to claim the government reward, but he was unsuccessful. While he was away, the miners moved two miles downstream and hit a real paystreak. They soon collected four ounces and named the site Ophir, after the biblical city of gold. It was situated about 45 kilometres northwest of Bathurst and 270 kilometres northwest of Sydney. Hargraves renamed the area FitzRoy Bar after the governor, part of a shrewd plan he devised to force the colonial administration to abolish the Royal status of gold mines and allow prospectors to acquire title to claims. Using his California experience, he publicized the discovery rather than keep it secret, reasoning that by attracting more miners, he would expand the placer camp to such a size that the authorities would be unable to control the activity and excitement. A few days later, Hargraves wrote: “The effect of my appearance in the district has caused a little excitement amongst the people,” and he estimated that 500 were digging for gold. With so many workers leaving their jobs, the local Commissioner of Lands soon feared a rise in violence, similar to what had occurred in California. The government was indecisive and slow to react because it did not believe the reports from Bathurst stating that the discoveries were real and rich. Its first impulse was to stop the rush, but the governor believed that “stopping the rush to the diggings would be as hazardous as trying to stop the waves of the sea.” He tried to control it with an expensive licensing fee, but that caused so many prospectors to leave the Bathurst area that the government became alarmed that the rush might end. Panicked, it hired Hargraves to find other gold-rich areas. When he was unsuccessful, they turned to the eminent geologist/clergyman Reverend Clarke to search. Fortunately for the government, the prospectors took their newfound skills elsewhere, to a 20-mile stretch of the Turon River Valley, about 40 kilometres north of Bathurst. The government licensers could not keep up. By 1852, the population of that district grew to 6,000 and it became the premier goldfield in New South Wales for several years. An Aboriginal shepherd found an outcrop that contained 1,272 ounces of gold, which he showed to November 2011 | 89


HISTORY OF

economic geology

Fig. 3 Placer mining towns in Victoria (from Blainey, 1963)

his employer. It was larger than any mass of gold reportedly found in California. The next mecca was a quartz vein at Maroo Creek, 100 kilometres north of Bathurst, where a piece containing 127 ounces was given the majestic name, “King of the Waterworn Nuggets.” As summer approached, and with so much money being made and thousands more leaving their farm jobs, the Colonial Secretary began to fear that the harvest might rot or the sheep might go unshorn. However, he was reassured during a visit to the diggings: the miners were quiet and respectful, there was little drinking and the men gathered in little groups to pray around Methodist preachers. It turned out that the miners regarded mining as a sort of holiday, and they returned home in time to ensure that the crops and sheep were taken care of. Meanwhile, 1851 was even more momentous for the Victoria district, which on July 1 became independent of New South Wales and was established as the new Colony of Victoria. Within four months, several significant new placer gold camps had been announced and the new colony was well on its way to becoming the leading gold producer in Australia. The first camp was at Clunes, only 120 kilometres northwest of Melbourne and less than 15 kilometres from where Thomas Chapman had found his mysterious gold in 1849. A shepherd named William Campbell found visible gold in the crevices of a weathered quartz vein beside Deep Creek, and James Esmond, who had returned from California on the 90 | CIM Magazine | Vol. 6, No. 7

same ship as Hargraves, began to recover significant amounts of placer gold with a cradle. Other miners arrived steadily after news of the discoveries reached Melbourne, but there was no sudden rush to the site. Gold was also found at Warrandyte, 30 kilometres northeast of the harbour, and at Buninyong, about 40 kilometres south of Clunes and 70 kilometres west of the harbour. The real impetus to Victorian gold mining occurred when a rich layer of alluvial gold was discovered at Ballarat, between Clunes and Buninyong, in September. Up to 1,000 prospectors, described by the superintendent of police as “the scum of Melbourne and the convict scum of Tasmania,” were at work there within a few weeks, each on his allotted eight square feet of ground. The gold occurred at shallow depth in a layer of blue clay up to 12 centimetres thick. The camp grew to at least 2,500, and the “scum” proved to be peaceful and diligent miners, many of whom soon became men of means. However, the rush to Ballarat was brief because a much larger and richer goldfield had been discovered on the slopes of Mount Alexander, a hill north of Castlemaine. Situated 75 kilometres north of Ballarat and 100 kilometres from the harbour, the Castlemaine goldfield covered 40 square kilometres. The gold, which occurred from surface to bedrock in clay up to two metres thick, had eroded from an extensive network of quartz veins and was the richest early placer discovery in the colony. About 8,000 miners were working it by the end of the year and 15,000 by March 1852. Another smaller goldfield was also discovered in 1851 at Bendigo, 25 kilometres further north. Other important Victorian gold camps were found at Daylesford in 1852, Avoca in 1858, Walhalla in 1863 and Stawell in 1872. The world’s largest gold nugget at that time, named “Welcome Stranger,” was found about 15 kilometres northwest of Dunolly (50 kilometres from Castlemaine) in 1869, three centimetres below surface. It measured 61 by 31 centimetres and produced 2,283 ounces (71 kilograms) when it was refined.

Acknowledgments The information presented here has been derived mainly from Blainey (1963), supplemented from various Wikipedia articles on placer gold camps, and from Australian government websites. CIM

References Blainey, G. (1963). The rush that never ended: a history of Australian mining. Melbourne: Melbourne University Press, 414 p. Cathro, R. J. (2007). California here we come. CIM Magazine, Vol. 2, No. 1, p. 66-68.


HISTORICAL

metallurgy History of asbestos By Fathi Habashi, Laval University, Quebec City, Canada

Since ancient times, asbestos has been used as a fireproofing material. In the first century AD, Strabo, a geographer, identified the first Greek asbestos quarry on the Island of Evvoia, where fibrous stone threads were being combed and spun like wool in the process of making cloth-like products. Strabo wrote: “When these are soiled, they are thrown into fire and cleansed, just as linens are cleansed by washing.” The word asbestos comes from the Greek word meaning “inextinguishable.” The Romans, however, called asbestos “amiantus” (meaning unpolluted), reflecting its easy-toclean property; the name is the root of the French word “amiante” used today. The first century historian Pliny the Elder also wrote about asbestos being “quite indestructible by fire.” In 1876, asbestos was discovered in the township of Thetford, Quebec. The tools used to mine the mineral were simple; however, by 1895, mechanization of the process began. This development marked the beginning of a period of unprecedented growth. The growing railroad industry was among the first to make extensive use of asbestos and asbestos-containing products. The demand for the product increased as railroad engineers began to use asbestos materials to line refrigeration units, boxcars and cabooses; it was especially useful for insulating pipes, boilers and fireboxes in the steam locomotives of that era. Other industries as well made extensive use of asbestos materials: shipping; automotive (used in brake pads and shoes and in clutch plates); elevators (used in brakes); and industrial construction, which was by far the largest consumer, as it was used as wall insulation, for floor and ceiling tiles, and in exterior siding and roofing. At the turn of the 20th century, researchers began to notice that a large number of lung problems and deaths occurred in asbestos mining towns. In 1917-1918, several studies indicated that asbestos workers were dying at a young age. In 1924, a woman who had been working with asbestos since the age of 13, died at 33 from what an English doctor called “asbestosis.” Her death led to a study on asbestos workers in England. Evidence showed that 25 per cent of these workers suffered from an asbestos-related lung disease. In 1931, laws were passed to increase ventilation in areas where people were in contact with the material. Throughout the 1930s, major medical journals began to publish articles that linked asbestos to cancer. Another negative aspect was the amount of waste produced from asbestos mining: about 30 tonnes of tailings were discarded per tonne of asbestos produced. Despite its known affects on health and the environment, the use of asbestos was at its highest from the 1940s to

1970s. The warnings and regulations that came about in the 1970s and beyond put an end to most of the material’s production, even though the industry had greatly improved its efforts in improving ventilation and dust control. Asbestos was now being recovered from the crushed and ground rock by aspiration, and the air-tight building housing the equipment was under slight pressure to ensure that no fibers were released into the workplace. This was accomplished by recirculating the clean air sucked in by fans at the top of a building through air-pressurized rooms.

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

Crushing room at Johnson Mine in Quebec (1900). Note: The girls are using hammers to crush the ore.

November 2011 | 91


HISTORICAL

metallurgy

Quebec Premier Maurice Duplessis

Asbestos strikers in Quebec

Charbonneau delivered a fiercely pro-union speech asking all Catholics for donations to help the strikers. Premier Duplessis asked the church to transfer the archbishop because of his pro-union stance, but his request was refused. Archbishop Maurice Roy of Quebec City served as mediator. In June, workers agreed to return to work with few gains. In the long term, both conditions and wages of the workers considerably improved. Trudeau edited The Asbestos Strike, a book portraying the strike as a violent announcement that a new era had begun.

Nationalization of the asbestos industry in Quebec As Minister of Natural Resources in 1976, Yves Bérubé (1940-1993) presided over the creation of a state corporation for research, prospection and promotion of asbestos. In 1978, the National Society of Asbestos, located in Sherbrooke, Quebec, was established as an organization of the Quebec government. The society had a research department directed by Jean Marc Lalancette, a chemistry professor at the University of Sherbrooke, who developed chrysotile phosphate by reacting chrysotile asbestos with gaseous phosphorus oxychloride (POCl3), which, he claimed, reduced its toxicity. Researchers at Laval University also demonstrated that the toxicity of asbestos could be reduced by dyeing the fibers with certain organic dyes. In 1980, the Quebec government decided to nationalize the industry. However, a promotional campaign soon followed, claiming that asbestos was a carcinogenic mineral. This resulted in a drastic decrease in demand and production.

Pierre Elliott Trudeau

Yves Bérubé

measures, regulations, standards, work practices and techniques for the safe use of asbestos. It took part in international conferences offering relevant documentation, advice, or technical, medical and scientific training to asbestos producers and users.

Banning of asbestos In 1986, the Environmental Protection Agency in the United States banned the use of asbestos on the grounds that it is a carcinogenic material. The asbestos producers in Canada, however, sued the agency and, in 1991, the Court of Appeals ruled against the ban citing insufficient proof.

Magnola project In 1996, the magnesium pilot plant at CEZinc in Valleyfield, Quebec, was recovering magnesium from asbestos tailings (which contained 24 per cent magnesium). In 1997, Noranda Inc. approved construction of the $730 million Magnola magnesium plant in Danville, Quebec, to produce magnesium metal from this resource. Construction of the plant began in the spring of 1998 and it entered production in late 2001. The extraction process involved hydrochloric acid leaching, brine purification and drying to produce granular magnesium chloride, which is melted and electrolyzed to produce metallic magnesium. The metallic magnesium is then tapped and cast in ingots. However, due to a depressed economy and the low cost of production in China, the plant was shut down in 2003.

Conclusion When the toxicity issue surrounding asbestos surfaced, the industry took steps to improve working conditions by introducing massive ventilation and air filtration equipment. Regardless, the public’s negative perception of this material still prevails and this has resulted in a greatly decreased demand for related products. CIM

Asbestos Institute The Asbestos Institute was created in 1984 in Montreal as a non-profit organization to promote the adoption and application of appropriate prevention and control

Suggested Readings Habashi, F. (2010). Mining and Civilization. An Illustrated History. Québec City: Métallurgie Extractive Québec, 510 p. Available at: Laval University Bookstore (www.zone.coop).

The section on the asbestos strike in Quebec first appeared in “Social problems in the mining industry,” CIM Magazine, June/July 2011, p. 77-79. 92 | CIM Magazine | Vol. 6, No. 7

Habashi, F. (2011). Researches on Asbestos. Québec City: Métallurgie Extractive Québec, 115 p. Available at: Laval University Bookstore (www.zone.coop).


TECHNICAL ABSTRACTS

CIM Scaling analysis via geometric and performance data for shovel dipper design T. G. Joseph, Alberta Equipment – Ground Interactions Syndicate (AEGIS), University of Alberta, Edmonton, Alberta, and N. Shi, JPi, Edmonton, Alberta

journal

ABSTRACT One-twentieth–scale field trials for conventional and concept dipper designs were compared to mid- and ultra-class–sized conventional dipper performance. Digging effort was used as the performance indicator for comparison. It was shown that linear relationships exist between dipper capacity, suspended hoist load, and peak hoist load. A ratio of conventional and concept dipper performance at the 1/20th scale was then evaluated to allow prediction of the performance of an ultra-class concept design using an independent ultra-class conventional dipper dataset. The outcome indicated a peak hoist requirement of 15.5 pr cent less to achieve the same production as the conventional design. RÉSUMÉ Des essais sur le terrain à une échelle d’un vingtième pour la conception de bennes creusantes conventionnelles et sur mesure ont été comparés au rendement de bennes creusantes conventionnelles de tailles moyennes et géantes. L’effort de creusage a servi en tant qu’indicateur de rendement aux fins de comparaison. Il a été démontré qu’il existe une relation linéaire entre la capacité de la benne, la charge suspendue de levage et la charge maximale de levage. Un rapport de rendement de bennes creusantes conventionnelles et sur mesure à l’échelle 1/20e a ensuite été évalué afin de pouvoir prédire le rendement d’une benne géante, conçue sur mesure, en utilisant un ensemble indépendant de données pour une benne géante. Les résultats indiquent une exigence de charge maximale de levage réduite de 15,5 pour cent pour obtenir la même production qu’une conception conventionnelle.

The power vacuum: The effect of the electricity power crisis on GDP in South Africa in the context of an uncertain coal supply P. Sorensen, Freyaafdrammen, Ansfrere, South Africa

ABSTRACT Electricity production by the Electricity Supply Commission of South Africa (Eskom) is the most important beneficiation process for South African coal. As one of the world’s lowest-cost producers, energy-intensive industries such as ferroalloys and aluminium were introduced. However, the poor were neglected. The White Paper on energy policy (Department of Minerals and Energy, 1998) sought to redress this neglect and also chased economic growth to generate jobs, which resulted in high electricity demand and interruptions. Lifespan estimates of South African coal reserves based upon peak theory vary widely. Approaching peak, coal production in the future will be more expensive and, thus, contribute to more expensive electricity, which could inhibit industrial development unless South Africans work smarter. RÉSUMÉ La production d’électricité par la Electricity Supply Commission of South Africa (Eskom) constitue le plus important procédé de valorisation du charbon sud-africain. Étant l’un des producteurs d’énergie à plus faible coût au monde, des industries énergivores, telles que celles des ferroalliages et l’aluminium, ont été implantées. Cependant, les pauvres ont été négligés. Le Livre Blanc (du Department of Minerals and Energy, 1998) sur la politique énergétique cherchait à corriger cette négligence; il portait aussi sur la poursuite de la croissance économique pour créer des emplois, ce qui a en retour conduit à une forte demande pour de l’électricité et à des interruptions. Les estimés de durée de vie des réserves de charbon d’Afrique du Sud, basés sur la théorie de pic, varient grandement. En approchant du pic, la production de charbon de l’avenir sera plus coûteuse et contribuera donc à de l’électricité plus chère, ce qui en retour pourrait nuire au développement industriel, à moins que les Sud-Africains ne travaillent plus intelligemment.

Artisanal salt mining in Maras-Urubamba, Cuzco, Peru H. Aral, CSIRO Process Science and Engineering, Victoria, Australia; Minerals Down Under National Research Flagship, CSIRO, Australia, M. I. Pownceby, CSIRO Process Science and Engineering, Victoria, Australia; Minerals Down Under National Research Flagship, CSIRO, Australia, and P. Moreno, University of Diego Portales, Santiago, Chile

ABSTRACT The Maras salt terraces, located between Cuzco and Urubamba in the Andes (southern Peru), are living examples of traditional Incan salt production, whereas present-day artisanal miners produce salt from shallow pans by solar evaporation. In these terraces, natural spring water, eight to nine times saltier than seawater, is used to produce the salt. The field observations and chemical analyses show that the poorly crystalline traditional salt is finer in particle size and contains impurities such as dolomite and gypsum. These differences are the result of shallow pond depth, contamination from wall erosion, and the nonsequential mode of salt crystallization. RÉSUMÉ Les terrasses de sel de Maras, situées entre Cuzco et Urubamba dans les Andes (Sud du Pérou), constituent des exemples actuels de production de sel par des méthodes traditionnelles inca, alors que de nos jours, les mineurs artisanaux produisent le sel à partir de bacs peu profonds par évaporation solaire. Dans ces terrasses, de l’eau de source naturelle, de huit à neuf fois plus salée que l’eau de mer, est utilisée pour produire le sel. Les observations sur le terrain et les analyses chimiques montrent que ce sel traditionnel est peu cristallin, a une granulométrie plus fine et contient des impuretés telles que de la dolomie et du gypse. Ces différences sont dues à la faible profondeur de l’étang, la contamination par l’érosion des parois et le mode non séquentiel de cristallisation du sel.

November 2011 | 93


TECHNICAL ABSTRACTS

canadian metallurgical quarterly Advances in fine and coarse particle flotation G. J. Jameson, University of Newcastle, Callaghan, New South Wales, Australia

ABSTRACT Flotation works very well for particles that are typically in the range 20 to 150 m in diameter, for base metal ores. In this range, it is possible to obtain quite high recoveries in conventional flotation machines. Outside this range, the recoveries decline progressively, whether it is with the very fine or coarse end of the size spectrum. In this paper, the reasons for the drop-off in recovery are briefly reviewed, together with strategies for future work. Recent progress in the author’s laboratory is described and . experimental results are presented. RÉSUMÉ La flottation fonctionne très bien pour les particules qui sont typiquement dans la gamme de 20 à 150 m de diamètre, pour les minerais de métal de base. Dans cette gamme, il est possible d’obtenir des récupérations plutôt élevées avec les appareils conventionnels de flottation. En dehors de cette gamme, la récupération diminue progressivement, que ce soit avec les particules très fines ou grossières du spectre de taille. Dans cet article, on analyse brièvement les raisons de cette diminution de la récupération, ainsi que des stratégies pour de futures recherches. On décrit les progrès récents dans le laboratoire de l’auteur et on présente les résultats expérimentaux.

The total air addition and air profile for a flotation bank C. D. Smith, K. Hadler and J. J. Cilliers, Department of Earth Science and Engineering, Royal School of Mines, Imperial College London, London, United Kingdom

ABSTRACT Numerous studies have shown the potential of air rate profiling to significantly improve the flotation performance of a bank of cells. To date many profiles have been implemented, balanced, increasing, decreasing and combinations of these. In this study, plant trials evaluated different air rate profiles and profiling based on PAR (peak in air recovery). The results showed that the highest cumulative mineral recovery was achieved by operating at air rates which gave the PAR for each cell down the bank. Different distributions of the same total air rate to the bank gave the same cumulative upgrade ratio, but lower cumulative recoveries. In this study, the increase in cumulative mineral recovery at the same upgrade ratio was more than 33 per cent. PAR-based optimization of air rates to banks of cells and to the individual cells has been shown to significantly improve flotation performance as it simultaneously determines the optimal air rate to the bank and the optimal distribution of that air. RÉSUMÉ De nombreuses études ont montré le potentiel du profilage du débit d’air pour améliorer significativement le rendement de flottation d’une banque de cellules. À date, on a mis en place plusieurs profils, balancés, en augmentation, en diminution ainsi que des combinaisons de ceux-ci. Dans cette étude, des essais en usine ont évalué différents profils de débit d’air et le profilage basé sur PAR. Les résultats ont montré que l’on obtenait la plus haute récupération cumulative de minéral en opérant à des débits d’air qui donnaient le PAR pour chaque cellule le long de la banque. Différentes distributions du même débit total d’air vers la banque ont donné le même rapport cumulatif d’amélioration, mais des récupérations cumulatives plus faibles. Dans cette étude, l’augmentation de la récupération cumulative de minéral au même rapport d’amélioration était de plus de 33 pour cent. On a montré que le pic de récupération d’air (PAR), basé sur l’optimisation des débits d’air vers les banques de cellules et vers les cellules individuelles, améliorait significativement le rendement de flottation puisqu’il détermine simultanément le débit optimal d’air vers la banque et la distribution optimale de cet air.

Froth recovery factor – what is it and why is it so difficult to measure? J. P. Franzidis and M. C. Harris, Department of Chemical Engineering, University of Cape Town, Rondebosch, Cape Town, South Africa

ABSTRACT The past twenty to thirty years have seen unprecedented research activity aimed at understanding the performance of flotation froths. In 1990, Finch and Dobby coined the term froth recovery factor, Rf, to represent the efficiency of the froth in delivering particles from the pulp-froth interface to the concentrate. Originally defined for flotation columns, Rf has also been found useful in modelling mechanical flotation cells and a number of techniques, based on quite different approaches, have been developed for measuring the froth recovery in industrial flotation cells. None of these techniques are universally successful. This paper reviews the concept of the froth recovery factor and the basis of each of the techniques that have been proposed to measure Rf and examines the reasons for this parameter being so difficult to pin down. RÉSUMÉ Au cours des vingt à trente dernières années, on a observé une activité de recherche sans précédent ayant pour objet la compréhension de la performance des mousses de flottation. En 1990, Finch et Dobby ont créé le terme facteur de récupération de la mousse, Rf, qui représente l’efficacité de la mousse à délivrer les particules de l’interface pulpe-mousse vers le concentré. Défini originalement pour les colonnes de flottation, Rf est également utile dans la modélisation des cellules mécaniques de flottation et un certain nombre de techniques, basées sur des approches plutôt différentes, ont été développées pour mesurer la récupération de la mousse dans les cellules industrielles de flottation. Aucune de ces techniques n’a de succès universel. Cet article étudie le concept du facteur de récupération de la mousse et la base de chacune des techniques proposées pour mesurer Rf et examine les raisons pour lesquelles ce paramètre est si difficile à cerner.

94 | CIM Magazine | Vol. 6, No. 7


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Caterpillar

27

New Millenium Iron Corp.

37

Corem

25

Parts HeadQuarters Inc.

17

Dux Machinery

59

Penn State University

29

Endress+Hauser

35

Redpath Group

13

Fluid Life

51

Rud-Chain, Inc./Erlau

33

Glenridge Equipment Corp.

11

Schneider Electric

19

Hewitt Equipment

39

SMS Equipment - Eastern Region

IBC 7

96 | CIM Magazine | Vol. 6, No. 7

OBC 58

SSAB Surplec HV Solutions

14, 18 Tetra Tech WEI Inc. 50

Urecon

95

Professional Directory BBA BioteQ Duberco Inc Full Force Diamond Drilling Independent Mining Consultants Indotech Industrial Doors Kubota Canada Ltd. Praetorian Construction Management

96

Product Files B.I.D. Canada Bridgestone


voix de l’industrie

Plan Nord : une vision partagée par les partenaires Par Serge Simard, Message du ministre délégué aux Ressources naturelles et à la Faune (Québec) ’est avec fierté que je m’associe à ce numéro deu CIM Magazine consacré entièrement au secteur minier afin de souligner toute l’importance qui est accordé au développement durable dans le contexte du Plan Nord. Le Plan Nord, c’est l’un des plus grands chantiers de développement économique, social et environnemental de notre époque. Il se déploiera sur 25 ans et entraînera des investissements de plus de 80 milliards de dollars. Le Plan Nord est un projet très ambitieux qui se réalisera en concertation avec les communautés concernées tout en tenant compte des défis liés à la nordicité. Les acteurs de l’industrie minière contribueront à la réalisation de ce plan d’envergure en tant que partenaires.

C

construction et l’entretien du prolongement de la route 167 vers les monts Otish, à 350 kilomètres au nord de Chibougamau. Ce tronçon de route permettra notamment à cette compagnie d’aller de l’avant avec le projet Renard : la première mine de diamant au Québec.

La formation La formation de la main-d’œuvre locale est aussi à l’ordre du jour. C’est 80 millions de dollars que le gouvernement entend investir dans les cinq prochaines années pour la formation de la main-d’œuvre. Au moins 11 nouveaux projets de développement minier pourraient être lancés au cours des prochaines années sur ce territoire. À terme, le développement de ces seuls projets engendrera 8,24 milliards de dollars d’investissements et créera 11 000 emplois durant la construction, générant ensuite près de 4 000 emplois par année pendant l’exploitation.

Le cadre fiscal et légal Le potentiel du territoire Bien que le Québec soit riche en ressources minérales et qu’il représente déjà une force minière reconnue mondialement, le potentiel du Nord québécois est loin d’être entièrement connu. Soulignons que même si seulement 40 pour cent du potentiel minier a déjà été répertorié, de grands projets sont déjà en cours sur le territoire du Plan Nord. Chaque année, le gouvernement effectue des travaux de recherche pour évaluer le potentiel minier de différentes régions et identifier des cibles d’exploration. Avec l’avènement du Plan Nord, ces travaux se poursuivront et s’intensifieront au cours des prochaines années. Les possibilités de développement sont très prometteuses dans les secteurs de la Baie-James-Eeyou Istchee, au Nunavik et sur la Côte-Nord.

Les infrastructures Le développement du Nord québécois nécessite un meilleur accès aux communautés, aux territoires et aux ressources qui s’y trouvent. Un des quatre principaux objectifs du Plan Nord est de rendre le Nord accessible. La mise en place d’infrastructures de transport de qualité est un préalable essentiel pour assurer le développement économique et social du Québec. Le gouvernement privilégie les projets qui permettent d’accéder aux territoires au plus grand potentiel économique. Les partenaires privés contribueront financièrement aux projets d’infrastructures liés directement à leurs projets d’investissement. Une entente de partenariat financier a d’ailleurs récemment été conclue avec la Stornoway Diamond Corporation pour la

Par ailleurs, selon le Fraser Institute de Vancouver, qui publie une étude sur les compagnies minières, le Québec se classe parmi les cinq endroits les plus attirants au monde pour investir dans le secteur minier. En fait, le cadre législatif, réglementaire et fiscal moderne et concurrentiel du Québec lui a permis de se retrouver dans le peloton de tête depuis 2001. Tout en tenant compte des diverses réglementations en vigueur, le Québec obtient le pointage le plus élevé pour ce qui est du potentiel minéral le plus favorable à l’investissement.

L’ambitieux Plan Nord La liste des mesures mises en place ou en voie de l’être pour concrétiser la vision que s’est donnée le Québec dans le cadre du Plan Nord est longue. Parmi les 121 initiatives figurant dans son premier plan d’action quinquennal, notons, entre autres, un programme d’acquisition de connaissances géoscientifiques pour stimuler l’exploration, la mise en place de nouvelles infrastructures pour faciliter l’accès au territoire, la création de nouveaux parcs nationaux, etc. La démarche du Plan Nord est unique. Différents pays dans le monde s’inspirent de l’exemple québécois car, pour la première fois, les communautés d’un territoire sont invitées à prendre part à la mise sur pied d’un projet qui définira les 25 prochaines années. Le Plan Nord est un projet ambitieux qui se concrétisera parce qu’il est la manifestation d’une vision élaborée et partagée par les différents partenaires participant à ce chantier. ICM

November 2011 | 97


voices from industry

Plan Nord: a vision shared by all its stakeholders By Serge Simard, Minister for Natural Resources and Wildlife – Quebec

t is a great pleasure for me to be associated with this issue of CIM Magazine, which focuses on Quebec’s mining industry, and to be given the opportunity to highlight the important role sustainable development plays in Plan Nord. Heralded as one of the largest economic, social and environmental projects of our time, Plan Nord is an ambitious plan — it will generate an estimated $80 billion in investments over a 25-year span — that will be implemented jointly with the communities concerned, taking into account the challenges that come with northern development. As partners, the mining industry stakeholders will contribute to the realization of this important plan.

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Corporation for the construction and maintenance of an extension of Highway 167 toward the Otish Mountains, located 350 kilometres north of Chibougamau. The new road will allow the company to move ahead with the Renard project, which will become Quebec’s first diamond mine.

Training Training the local workforce is another item on the Plan Nord agenda, and the Quebec government intends on investing $80 million on training programs during the next five years. At least 11 new mineral development projects are expected to be launched in the coming years; the implementation of just these projects alone will lead to an estimated $8.24 billion in investments and create approximately 11,000 jobs during the construction phase, followed by almost 4,000 jobs each year that the mines are in operation.

Tax and legal framework Potential of the land Rich in mineral resources, Quebec is recognized as a force in the mining world, even though only 40 per cent of its mineral potential has been mapped. Quebec’s North has major promise for mineral development and several major projects are already under way in the area. Each year, the government conducts surveys to assess the mineral potential of various regions and to identify exploration targets. This work will continue at a faster pace throughout the coming years as Plan Nord is implemented. Promising sectors for development have already been identified in James Bay-Eeyou Istchee, in Nunavik and on the north shore of the St. Lawrence River.

Infrastructure The economic and social development of northern Quebec will require improved access to communities, public land and resources in the area. As one of Plan Nord’s main objectives, a high-quality transportation infrastructure will be established. The government is emphasizing projects that provide access to the territories with the greatest economic potential. Privatesector partners will contribute financially to infrastructure projects linked directly to their investment projects. To this end, a financial partnership agreement was recently signed with Stornoway Diamond

98 | CIM Magazine | Vol. 6, No. 7

According to the Fraser Institute, Quebec is one of the five most attractive locations in the world for mining investment. The province’s modern and competitive legislative, regulatory and taxation framework has earned Quebec a place in the top ten jurisdictions since 2001. Taking the various applicable regulations into account, Quebec obtained the highest score for mineral potential under the current policy environment.

Plan Nord: an ambitious program A long list of measures are planned or currently being implemented that will make Quebec’s vision for Plan Nord a reality. The 121 initiatives established for the first five-year plan of action include gathering geo-scientific data to stimulate exploration, building new infrastructures to facilitate access to public land and creating new national parks. Plan Nord’s structure and approach is unique, and various countries around the world are drawing inspiration from it. For the first time in Quebec’s history, the affected communities are being asked to play an active role in a project that will define not only the next 25 years, but also contribute to a region’s prosperity. Although an ambitious plan, it is one that is attainable as it reflects a vision defined and shared by all stakeholders. CIM


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