CIM Magazine Dec'10/Jan '11 by CIM-ICM Publications

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CONTENTS CIM MAGAZINE | DECEMBER 2010/JANUARY 2011 | DÉCEMBRE 2010/JANVIER 2011

NEWS

A multinational achievement Cementation Canada is

Capital allocation emerges as key sector risk

Ernst & Young report on business risks locates potential pitfalls facing the mining industry by P. Diekmeyer Films bring out the best of mining The first annual mining film festival showcases the beauty and ruggedness of Quebec’s northern mining towns by M. Eisner

proud to play its part in the Chilean mine rescue by H. Ednie

Experts debate solutions surrounding CSR initiatives Range of voices discuss new ways of working with the extractive industry to improve CSR methods in Africa by V. Heffernan

18 20

Misaligned risks and rewards A study finds that compensation for mining executives could benefit from some re-engineering by G. Griffiths Kimberley process needs refining The Kimberley Process Certification Scheme, created to stop the flow of blood diamonds, requires a review by H. Ednie

UPFRONT 22

24 26

Canada brings mine training to Mongolia The Mongolian University of Science and Technology, UBC, and Edumine team up to provide online mining training for Ivanhoe’s Oyu Tolgoi employees by P. Caulfield Intensive energy efficiency Aluminerie Alouette smelter is a model operation on how to keep energy consumption low and production up by H. Ednie Integrated, efficient solution BESTECH’s NRG ECO-1 system gives mines a versatile tool for managing their energy, equipment and safety processes by A. Lopez-Pacheco

A sustainable structure The Centre for Excellence in Corporate Social Responsibility aims to create a solid foundation for CSR resources, research and consultation by D. Zlotnikov

Words to the wise Ian Campbell, founder of StockResearchPortal.com, gives his outlook on resource sector investing for 2011 by P. Diekmeyer

OUTLOOK 2011 / PERSPECTIVES POUR 2011

33 4 | CIM Magazine | Vol. 5, No. 8

The risk of remaining silent Corporate social responsibility has become a fundamental value that mining companies must address in their policies and actions by D. Zlotnikov

Le risque de garder le silence De nos jours, la responsabilité sociale des entreprises est devenue une valeur fondamentale dont les compagnies minières doivent tenir compte dans leurs politiques et leurs actions

COLUMNS

43 COAST TO COAST 43

81 82 84 86 88 90 92 94 96 98 100 102 104 106 138

Supply Side by J. Baird MAC Economic Commentary by P. Stothart Eye on Business by V. Schweitzer HR Outlook by R. Montpellier Standards by G. Gosson Innovation by T. Hynes, E. Özberk Metals Monitor by the staff of MEG First Nations by J. C. Reyes Safety by H. Ednie Engineering Exchange by H. Ednie Women in Mining by H. Ednie Canadians Abroad by H. Ednie Student Life by K. Breault Mining Lore by C. Baldwin Voices from Industry by T. Andrews

OUTLOOK 2011 The Canadian mining sector is expected to thrive as strong demand for metals from China continues and the US economy begins to show signs of recovery

CIM NEWS

by S. Stecyk

Newfoundland and Labrador Strong growth and investment continue to increase development and expansion of mining projects in the province by the staff of the Mines Branch,

110

Deborah Smith-Sauvé looks to further the Foundation’s presence and purpose by M. Eisner

Department of Natural Resources, Government of Newfoundland and Labrador

46 48 50 53 56 60 62 64

Nova Scotia Industrial mining and aggregates dominate as exploration and mineral claim staking are revived by D. Khan New Brunswick Slowing production in older and closed mines precipitates the search for mineral and natural gas deposits by S. McClenaghan, K. Thorne and L. Fyffe Québec Une année de croissance et de développement malgré les préoccupations de l’industrie concernant la réglementation gouvernementale et les défis des ressources humaines par A. Lavoie Quebec A year of growth and development amid industry concerns over government regulation and human resource challenges Ontario As resource prices climb new discoveries and mining projects thrive in Northern Ontario by B. Greenwell Manitoba The search for base metals increases as optimism returns to the province and old mines are revived by C. Beaumont-Smith and J. Bamburak Saskatchewan Focus on potash and uranium remains, while geoscience research advances by Saskatchewan Ministry of Energy and Resources Alberta Mineral permitting for diverse commodities flourishes as coal production climbs

110 112

British Columbia Opportunities abound as new mine construction continues and mining

FCMM : Une nouvelle direction / Nouvelle directrice planifie propulser la Fondation vers de nouveaux sommets Future mineral resource discoveries Retired geologist and CIM Distinguished Lecturer James Franklin remains dedicated to mineral research and innovation by A. Lopez-Pacheco

116 117 120

Easing into retirement Philip Olson’s devotion to geology is rewarded with this year’s Julian Boldy Memorial Award by C. Baldwin CIM’s blueprint CIM sets forward its new initiatives to improve its service to its membership by A. Nichiporuk Notes from the road CIM President Chris TwiggeMolecey in Mongolia

121

Students and industry mingle at Tastes of Toronto event CIM Toronto Branch holds annual

123

Le plan directeur de l’ICM L’ICM présente ses

networking affair by R. Hutson

by R. Eccles

CMMF: Moving in new directions New manager

nouvelles initiatives visant à améliorer le service aux membres

projects move through the environmental assessment process by D. Grieve, J. Lewis, B. Madu, B. Northcote and P. Wojdak

72 74

Yukon Hard rock claims spike as gold fever strikes in the home of the Klondike by M. Burke Northwest Territories Diamonds, gold, tungsten and rare earth elements among the

127 132

northern lights by D. Campbell Nunavut The newest territory joins the list of producers and exploration promises a bright future by K. Costello and M. Senkow

TECHNICAL SECTION 134 135

HIGHLIGHTS / POINTS SAILLANTS 78

2010 CIM Magazine reader survey

108

Sondage auprès des lecteurs de CIM Magazine 2010

114

CIM Student funding opportunities / ICM : soutien financier aux étudiants

127

CIM Calendar of events / Calendrier des activités de l’ICM

CIM Calendar of Events 2011 CIM National Office & CIM Council

Canadian Metallurgical Quarterly CIM Journal

IN EVERY ISSUE 6 8 126 126 136

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

139

CIM MEMBERSHIP DIRECTORY / RÉPERTOIRE DES MEMBRES DE L’ICM Available to CIM members only / Disponible aux membres de l’ICM seulement November 2010 | 5

editor’s letter Leaving our mark f one had to choose a symbol that stood for Canada and set us apart this past year, it would probably be the Olympic inukshuk that featured so prominently at the Winter Games in Vancouver. There was some controversy over its choice, but then again, how does one select a single image to symbolize a country as immense and diverse as ours? This stone marker is just one piece of the Canadian “cultural mosaic.” I recall first being exposed to the notion of Canada as a mosaic as an undergraduate student in political science at Memorial University in Newfoundland back in the 1980s. The premise is that Canada is strengthened by its cultural diversity — a distinct alternative to the American “melting pot.” At our best, Canadians aspire to acceptance and inclusion, although admittedly, there have certainly been missteps where reality has strayed from this ideal. Still, overall, the mosaic is a concept that has long served as a cultural touchstone. It, like the inukshuk, provides direction. The Canadian mining industry’s impact and influence on the global landscape has been the topic of much discussion over the past year. But on whatever side of the debate one finds oneself, there is little question that our industry’s influence is as critical as it is widespread. We have an opportunity to demonstrate the cultural mosaic ideology on a global scale as we engage with an ever-increasing number of communities and cultures that are promising to make the universal mosaic even more dynamic. We have an opportunity to leave our mark. In our feature article, “The risk of remaining silent — engagement and good faith key to communicating the mining message,” writer Dan Zlotnikov takes a look at how the Canadian mining industry is addressing — and needs to address — the expectations and scrutiny of those inside and outside our borders on topics around sustainability. He finds that as our reach expands globally, old paradigms are shifting. No longer can CSR be something we do; it must become part of who we are and something that we leave behind wherever we do our work. We also take our comprehensive annual cross-country commodity road trip, exploring the peaks and valleys of the 2010 terrain in each of the provinces and territories, and postulate on the sector’s landscape for 2011. A broader commodity outlook comes compliments of Ian Campbell, president and CEO of StockResearchPortal.com, who shares his views on what could be the hot topics and trends for the coming year. Also, be sure to check out the results of our CIM Magazine Readers’ Survey to see how our editorial evolution is enhancing satisfaction and making the magazine even more relevant for our readers. For us at CIM Magazine, the annual Outlook issue is our inukshuk, where we look back over the past year, get our bearings and venture into a new editorial calendar. The past 12 months have seen the addition of two new members to the editorial team and a new bundle of joy for editor Ryan Bergen. I would like to take this opportunity to thank the incredibly dedicated and talented CIM Magazine team, who continue to help make mine one of the best “gigs” a person could hope for. And to our readers, on behalf of the entire CIM national office staff, I would like to wish you all good health, peace and prosperity in 2011.

Angela Hamlyn, Editor-in-chief 6 | CIM Magazine | Vol. 5, No. 8

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

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

Andrea Nichiporuk, anichiporuk@cim.org Technical Editor Joan Tomiuk, jtomiuk@cim.org Contributing Editor Robertina Pillo, rpillo@cim.org Publisher CIM Contributors Tony Andrews, Jon Baird, Correy Baldwin, Jim Bamburak, Chris Beaumont-Smith, Louise Blais-Leroux, Kévin Breault, Mike Burke, Peter Caulfield, Darren Campbell, Karen Costello, Peter Diekmeyer, Roy Eccles, Heather Ednie, Marlene Eisner, Kate Forrest, Les Fyffe, Greg Gosson, Brock Greenwell, Dave Grieve, Genny Griffiths, Bruce Harrison, Virginia Heffernan, Rick Hutson, Tom Hynes, Dan Khan, André Lavoie, Jim Lewis, Alexandra Lopez-Pacheco, Bruce Madu, Sean McClenaghan, Ryan Montpellier, Bruce Northcote, Juan Carlos Reyes, Virginia Schweitzer, Matthew Senkow, Paul Stothart, Kathleen Thorne, Paul Wojdak, Dan Zlotnikov and staff of the Government of Newfoundland and Labrador, Department of Natural Resources Mines Branch, the Saskatchewan Ministry of Energy and Resources and Metals Economic Group Published 8 times a year by CIM, 1250 – 3500 de Maisonneuve Blvd. West; Westmount, QC, H3Z 3C1 Tel.: 514.939.2710; Fax: 514.939.2714; www.cim.org; Email: magazine@cim.org Subscriptions Included in CIM membership ($150.00); Non-members (Canada), $168.00/yr (GST included; Quebec residents add $12.60 PST; NB, NF and NS residents add $20.80 HST); U.S. and other countries, US$180.00/yr; Single copies, $25.00. Advertising Sales Dovetail Communications Inc. 30 East Beaver Creek Rd., Ste. 202; Richmond Hill, Ontario L4B 1J2; Tel.: 905.886.6640; Fax: 905.886.6615; www.dvtail.com National Account Executives 905.886.6641 Janet Jeffery, jjeffery@dvtail.com, ext. 329 Neal Young, nyoung@dvtail.com, ext. 325

This month’s cover Artwork by Clò Communications Layout and design by Clò Communications Copyright©2010. All rights reserved. ISSN 1718-4177. Publications Mail No. 09786. Postage paid at CPA Saint-Laurent, QC. Dépôt légal: Bibliothèque nationale du Québec. The Institute, as a body, is not responsible for statements made or opinions advanced either in articles or in any discussion appearing in its publications.

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president’s notes The future and the fundamentals Despite the famous admonition, “All predictions are risky, particularly about the future,” I have decided to take out my crystal ball for our Outlook 2011 issue. It is increasingly clear that China and its mineral needs will be a key driver of our short-term future. In addition, this year’s China Mining Conference revealed there is a strong political will within China to pursue more sustainable and socially responsible mining practices. This represents a substantial opportunity for our environmental and CSR practitioners. When looking at Chinese investments internationally, the Chinese approach to project development is fundamentally different from the Western approach, and this can cause stress and frustrations. To minimize this, the CIM International Branch has launched three initiatives: • The first was in November when we co-hosted the very successful “CIM Mine Finance and Capital Markets” day in Beijing. • The second was to sign a MOU with the China Non-Ferrous Metals Industry Association to organize activities sharing best practices in

CSR, the environment, safety and recycling. Over time, we expect to build meaningful technical exchanges with the huge Chinese mining and minerals sector from these two platforms. • Third, our reserve definition and valuation committees continue to have discussions with various Chinese bodies to try to harmonize the Chinese approaches and definitions with ours. Closer to home, I was fortunate enough to spend a couple of days at the Newfoundland Branch annual meeting. What a dynamic event with over 700 attendees and a strong M4S program for the local schools. From the excellent technical program, it was also clear that rare earths are not so rare. Returning to where I began, in my view, 2011 will be a great year. Chinese growth will continue (albeit at a likely reduced rate closer to eight per cent), and commodities will still be required to support it. However, we must enjoy it while we can. The Chinese government is vigorously pursuing its stated goal of material and energy self-sufficiency. I would suggest this is a serious concern for the longer term. In the short- to medium-term, however, this is good news for us. I wish you and your families the best for the holiday season and the year ahead.

Chris Twigge-Molecey CIM President

L’avenir et les facteurs économiques fondamentaux Malgré l’avertissement : « Toute prévision comporte un risque, en particulier celle qui concerne l’avenir », j’ai décidé de sortir ma boule de cristal et d’aborder nos perspectives pour 2011. Il est de plus en plus évident que la Chine et ses besoins en minéraux joueront un rôle prépondérant dans notre avenir à court terme. En outre, le congrès sur l’exploitation minière de la Chine de cette année a révélé l’existence d’une réelle volonté politique de poursuivre au sein du pays des pratiques plus durables et socialement responsables dans le secteur minier. Il s’agit là d’une formidable occasion pour nos spécialistes de l’environnement et de la RSE. En ce qui concerne les investissements chinois à l’échelle internationale, l’approche de la Chine en matière de développement de projets est fondamentalement différente de l’approche occidentale, ce qui sera sans doute source de stress et de frustrations. Pour minimiser cet effet, la section internationale de l’ICM a lancé trois initiatives. La première a été lancée en novembre, lors du congrès international sur les finances et les marchés des capitaux dans le secteur minier (International Mining Finance and Capital Markets Conference) couronné de succès qui s’est tenu à Beijing et que nous avons coorganisé. La deuxième initiative a été la signature d’un protocole d’entente avec la China Non Ferrous Industry Association afin d’organiser des activités visant à partager les pratiques exemplaires en matière de RSE, d’environnement, de sécurité et de recyclage. Au fil du temps, nous prévoyons entretenir des échanges techniques constructifs avec le vaste secteur chinois des mines et des minéraux provenant de ces deux plateformes. 8 | CIM Magazine | Vol. 5, No. 8

Enfin, la troisième initiative revient à nos comités sur l’évaluation et sur les définitions des réserves qui poursuivent les pourparlers avec divers organismes chinois afin d’essayer d’harmoniser leurs approches et leurs définitions avec les nôtres. À plus petite échelle, j’ai eu la chance de participer pendant quelques jours à la réunion annuelle de la section de Terre-Neuve. Cet événement a rassemblé plus de 700 participants et a donné lieu au lancement d’un important programme M4S destiné aux écoles locales. Cet excellent programme technique a également permis de mettre en évidence que les terres rares ne sont pas aussi rares qu’on le pense. Comme je l’ai dit en premier lieu, je pense que l’année 2011 sera exceptionnelle. La croissance de la Chine se poursuivra (malgré un taux de croissance réduit à près de 8 %) et les produits de base seront toujours nécessaires au maintien de cette croissance. Nous devons donc en profiter pendant qu’il est temps. Le gouvernement chinois poursuit avec vigueur son objectif défini d’autosuffisance énergétique et matérielle. Je dirais simplement que cela suscitera d’importantes préoccupations à plus long terme. Toutefois, à court et moyen termes, il s’agit d’une bonne nouvelle pour notre secteur. Je vous souhaite ainsi qu’à votre famille un merveilleux temps des Fêtes et une excellente année 2011. Chris Twigge-Molecey Président de l’ICM

news A multinational achievement Canadian driller played its role in Chilean rescue By Heather Ednie

Photo courtesy of Cementation Canada Inc.

Among the many achievemethod, all helped to ments surrounding the mine advance the schedule,” rescue in Chile, a team that Slack explained, adding he included staff from Cementathought that the Chilean tion Canada had the honour government was very smart of carrying out the Plan A in their approach to the resdrilling program. cue. “They took three very Cementation’s Chilean different types of technolopartner, Terraservice, was the gies and let them operate, group that broke through recognizing that each with a 12.5-centimetre method had different chalreverse circulation hole on lenges and opportunities.” August 22 and confirmed State-owned mining that the miners were still company Codelco manalive. The following day, aged the rescue. “The Terracem (a joint venture whole mining community company owned by Terraserwas on call and would vice and the Murray & have gone to help,” said Roberts Cementation Group) Slack. “We happened to be mobilized one of Cementalocal and ready. The tion Canada’s Strata 950 raise ground was pretty good in boring drills used at the Andthe areas we were drilling; ina copper mine to excavate it was a straightforward a 72-centimetre diameter operation.” access hole to reach the men The show of support 700 metres below surface. for the effort was outTechnical assistance was prostanding. Slack spent a lot vided from Cementation’s of time managing the operations in South Africa, communication efforts of Australia and Canada, along Cementation Canada on-site supervisor Glen Fallon (left) speaks with Laurence a vast number of colGolborne, Chilean Minister of Mines. with the on-site supervision leagues and peers wanting of Cementation Canada to lend a helping hand. “In employee Glen Fallon of North Bay, The Cementation plan to excavate our business, one raise bore hole is not the drilled hole was a two-step a big project,” he said. “In this particOntario. Ultimately, the miners were process. Once the initial pilot hole was ular one, operations from around the completed using directional drilling world were all working together. I brought to the surface through a sectechniques, it would have been up- helped coordinate the effort. We had ond of three drill holes. The third reamed to a final diameter of 72 cengroup on-site were oil drillers Precilots of emails — even from strangers sion Drilling from Calgary. timetres. On October 9, when the Plan — with suggestions and helpful “As ‘Plan A’ we were drilling the B drill broke through, this hole had advice.” hole with the intention to open it up reached over 600 metres in depth. Slack is proud of his team and Slack added that had the Plan B deeply relieved the workers were and ream it,” said Cementation presidrilling encountered any difficulties, the saved, but he said there are unresolved dent Roy Slack, who was on-site at the mine during the first week of SeptemCementation plan would have reached issues surrounding the incident. ber. “However, when ‘Plan B’ — a well the miners during the second week of “From a safety perspective, this is a drill opening an existing five-inch November, ahead of the announced good news story as the miners are alive four-month plan. “Modifications to our and well. But the question is: How do hole, operated by the Chilean company GeoTech — got near, we put our approach, including the design of an we make sure such a thing doesn’t operation on hold.” up-reaming instead of a down-reaming happen again?” CIM 10 | CIM Magazine | Vol. 5, No. 8

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news Capital allocation emerges as key sector risk Ernst & Young report notes effect of retiring and risk-averse boomers By Peter Diekmeyer

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

The 2010 Ernst & Young business risk report

Business risks facing mining and metals

Photo courtesy of Ernst & Young

As the mining industry recovers from spillover effects of the global economic recession, the risks that sector players face are changing. Supply side capacity issues, such as capital allocation, skills shortages and resource nationalism are heightening, while other concerns such as managing costs, maintaining a social licence to operate and climate change concerns are taking a secondary role. Those are the main conclusions reached by the professional services firm Ernst & Young in their annual assessment of key risks facing mining and metals companies. “Capital markets are becoming more open to financing attractive projects than they once were,” said Tom Whelan, leader of Ernst & Young’s national mining practice. “However the ability to borrow remains a problem. That is forcing companies to think harder about precisely where they want to allocate their resources.” The challenges are particularly acute for smaller projects, Whelan said. To make up for the lack of easily accessible capital, mining sector players are focusing on non-traditional strategies to build revenues. These include paying for acquisitions by issuing equity (as was done in recent deals involving Barrick, Kinross and Goldcorp), initiating joint ventures and making strategic partnerships. Skills shortages are another longtime industry challenge that have only gotten worse with the passing of another year. “The Canadian mining sector needs to attract 100,000 new workers over the next 10 years,” said Whelan. “The average age of Canadian mine workers is the late 40s. As they retire, they will need to be replaced.” Mining engineers are a particularly scarce resource. “Less than 1,000 mining engineers graduate each year so recruiting them is a major challenge,”

Business risks facing the mining industry Capital allocation • Skills shortage • Cost management • Resource nationalism • Maintaining a social licence to operate • Infrastructure access • Access to secure energy • Access to capital • Price and currency volatility • Climate change concerns Whelan added. “Even if you do hire one, you can’t just graduate them and stick them into a position of responsibility. They need to pick up experience first. With Canadian companies operating in increasing numbers of jurisdictions, the breadth of experience required is increasing.” Resource nationalism is another issue that has come closer to the forefront. “If we had to rewrite the report today, this issue might have emerged at the top of the list,” said Whelan. “The tight economy has put a lot of pressure on governments everywhere to maximize their existing resources. Many

countries are in particularly bad shape and are looking for solutions to get out of it.” These solutions range from reviewing existing agreements with mining companies to try to squeeze more money out of them, introducing new or “special” taxes, fees or levies, and sometimes near-expropriations. As a result, Whelan urges companies to take a particularly hard look before they enter new jurisdictions. According to one long-time industry veteran, the Ernst & Young report mirrors the struggles confronting sector players. “This is an excellent list,” said Chad Williams, president and CEO of Victoria Gold, a high-growth mining sector exploration and development player. “We face a lot of the challenges included in it and the order is also reflective of what we ourselves are seeing.” According to Williams, Victoria Gold’s main operations are in secure jurisdictions, so resource nationalism has not been a challenge for the company to date. However, both capital allocation and skills shortages have emerged as key issues. “A few of the major companies can raise $2 million or more when they need to fund major projects, but the rest are having problems,” said Williams. “The fact that boomer investors, who have in the past funded many small capitalization companies, are becoming more risk averse as they age, is exacerbating the problem.” Williams agreed that skills shortages too will be a big problem. “One major player in our sector spent over a year looking for a CEO, but couldn’t find one with mining sector experience, so they ended up hiring someone from outside the industry,” he said. “I believe that if current trends continue, mining sector output could fall over the next 20 years due to a lack of manpower.” View the report at: http://bit.ly/ ErnstandYoung. CIM

MINING SAFELY. MINING MORE. MINING RIGHT.

Miners everywhere face similar challenges. Running a safe operation is your highest priority. Nothing matters more. Meeting production and profitability targets is also critical. The pressure is always on to deliver more tons at a lower cost. Environmental responsibility is another key concern. We are all challenged to do the right thing, meeting demand for minerals and metals in a manner that sustains the earth. Caterpillar and your Cat® Dealer understand your priorities. We welcome the opportunity to put our products, services and technologies to work in your operation. Together we can achieve all your business objectives—Mining safely. Mining more. Mining right. To learn more contact your Cat Dealer or visit www.cat.com/mining

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news Films bring out the best of mining First mining film festival a success

Dramatic music, giant trucks, wild animals, laughter and tears, and breathtaking landscapes — it was not Cecil B. DeMille, but the first annual mining film festival delivering a cast of characters and a visual celebration of mining. Festival organizer and IDNR-TV producer Ivor Barr and his camera crew travelled in and around Quebec’s northern region and created five short films for an up close and personal view of mining at its best. Held last November at the Cinema du Parc in Montreal, it was billed as the first mining film festival, “to raise awareness of the mining industry from a different perspective, free of prejudice and preconceptions… the Festival that gets to the bottom of things!” The event attracted students, industry leaders, government officials and media, all of whom enjoyed a prescreening cocktail/networking hour. The crowd then filtered into the 170seat theatre and listened to speeches by Barr and his invited guests, Pierre Corbeil, minister responsible for northern

Oil Sands

& Heavy Oil

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

Photo courtesy of Marlene Eisner

By Marlene Eisner

Guests of honour at the first annual mining film fest held in Montreal included Pierre Corbeil (left), minister responsible for northern Quebec, and Fernand Trahan, mayor of Val-d’Or.

Quebec; Fernand Trahan, the mayor of Val-d’Or; and Scott Jobin-Bevans, president, Prospectors and Developers Association of Canada (PDAC). Each of the five films presented — Meadowbank, Québec a de la veine, Il était une fois Malartic, Baker Lake and Troilus — had a unique story line,

from the history of the mining town of Malartic and the resurrection of the town by Osisko to the frigid beauty and challenges in the Far North at Meadowbank and Baker Lake in Nunavut, and the community involvement of the Mistissini Cree and Inmet Mining at Troilus.

news Barr said he created the film festival to reveal a side of mining that is rarely seen by the public or reported in the news. “We invited the media at large, industry people and students because it’s important for them to know the reality of mining,” he explained. “I think by showing some realities in a different way, with a different perspective, they see something positive. We help them to understand the morality of this industry, to see that the people who are involved in mining are educated, and that they are very skilled.” Jobin-Bevans said he was impressed with what he saw. “He [Barr] has the right idea that we do a lot of good things and we have to get the message out to the general public.” As co-chair of the PDAC Human Resources Committee, Jobin-Bevans said he was pleased to see at least 20 mining students at the cocktail hour and in the theatre. 12/6/10

École Polytechnique mining director Richard Simon attended with some students, as did Angelina Mehta, McGill University’s mining engineering program manager. Mehta had encouraged her students to attend the event for two reasons: “One, it is a networking opportunity. Agnico-Eagle and Osisko are very strong supporters of our program and have hired our students to do their work terms there,” she said. “I also wanted them to be exposed to the movies. I didn’t know what message would come across, but any supplement about the industry is important.” Second-year mining engineer student Olivier Hamel said he expected the films to be a positive presentation to the public to make mining “appear good and environmentally responsible.” But what he did not expect was the spirit of cooperation between the

native communities and industry. “I learned some interesting things and I was impressed by the stories, which had a good impact on me,” said Hamel. “There is something to be said about mines being environmentally responsible, but what also got to me was how much the mining companies are involved in the community, how they make efforts to employ the community and how the community wants to work for them.” Hamel has already been exposed to mining through a work term at Mouska Mine in the Abitibi region, so much of what he saw was not new. “People outside of mining should be exposed to these movies because it shows another side of the mines that are not talked about,” he said. “These films make you believe that mines are actually run by human beings that care about not harming people and not harming the environment.” CIM

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December 2010/January 2011 | 15

news Experts debate solutions surrounding CSR initiatives CSR in Africa seminar looks for new approaches

As a private members bill designed to make Canadian mining companies more accountable on human rights and environmental practices headed for defeat in the House of Commons on October 27, corporate social responsibility (CSR) experts gathered in Toronto to discuss alternative solutions during the fourth annual conference on Risk Mitigation and CSR in Africa and Emerging Markets. Organized by the Canada-South Africa Chamber of Business and MineAfrica, the day-long seminar targeted the extractive industries, particularly Canadian companies that invested more than $23 billion in the African mining sector in 2009. More than 80 participants (including 18 speakers) — compared to 50 attendees at the first conference held in 2007 — took part in the “uncomfortable conversations” that ensued. Although the proposed keynote speaker, Minister of International Trade Peter Van Loan, was called away to attend the third reading of Bill C-300 — later defeated by a vote of 140 to 134 — the seminar drew on the wide range of legal, financial, government, industry and NGO speakers’ perspectives to map out a multi-stakeholder approach to CSR. “We hope this holistic approach will come to be identified as the Canadian way,” said Donald Bobiash, director general of the African Bureau of Foreign Affairs and International Trade, as he addressed the audience in lieu of Van Loan. Indeed, collaboration is the only way to tackle the complex issues surrounding CSR, said Michael ShtenderAuerbach, vice-president of social risk consulting for UK-based Control Risks. He compared the encouraging global momentum on human rights being spearheaded by John Ruggie, the special representative of the UN Secretary-General on business and human 16 | CIM Magazine | Vol. 5, No. 8

Photo courtesy of MineAfrica Inc.

By Virginia Heffernan

Industry and government attendees at CSR seminar (from left to right): Signi Schneider and Lindsey MacRae, Export Development Canada; Joe Spytek, ITC Global; and Judith St. George, Department of Foreign Affairs and International Trade.

rights, to the “flawed” approach to human rights put forward by Bill C-300. “Following the debate around Bill C-300 has been frustrating,” ShtenderAuerbach said, scolding the mining sector for its antagonistic attitude towards the Bill. “We need NGOs, governments and industry to get together, not hand out pamphlets,” he added, referring to the hundreds of antiC-300 buttons and flyers distributed at the Prospectors and Developers Association of Canada’s annual convention in March 2010. From an industry perspective, one of the complaints about current CSR guidelines is that they are difficult for junior mining companies to apply because they lack the knowledge, experience and access to concrete examples of successful CSR programs. “There is no way you can google your way through the CSR landscape,” concurred Jean Vavrek, CIM executive director and a driving force behind the creation of the Centre for Excellence in CSR, one of the four pillars of the Canadian government’s CSR action plan. “Exploration companies have no

way of knowing who has done what or whom to talk to,” he said. To break down this barrier, the new centre (www.cim.org/csr/) is setting itself up as a web-based hub of knowledge on CSR practices and approaches in the extractive sector. Another pillar of the federal action plan was to establish an office for an extractive sector CSR Counsellor. In October 2009, Marketa Evans, former executive director of the Munk Centre for International Studies, was given this CSR mandate. Her office recently launched a voluntary review process to handle dispute resolution for extractive companies working abroad. Although there are already more than 300 such mechanisms worldwide, Evans and her team wanted to create a non-judicial process to foster a more open dialogue without the need for lawyers. “The more quasijudicial the process, the higher the standard of evidence and the higher the barriers,” Evans told the seminar audience. Her office aims to act as broker between individuals or communities and mining companies that are at loggerheads. CIM

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news Misaligned risks and rewards Study discovers wrinkles in mining executive pay By Genny Griffiths A study released in November by The Bedford Consulting Group offers a detailed look at compensaCANADIAN MINING INDUSTRY tion practices for executives and directors in Canada’s mining industry and unearths some surprises about how CEOs and board members are — or are not — rewarded for their work. Combining base salary, bonuses and share-based rewards, the report notess the industry’s highest-paid CEOs (the top 25 per cent of companies with a market capitalization of $4 billion or more) bring in more than $6.9 million a year in salaries, bonuses and share-based rewards. OCTOBER 2010

Courtesy of Bedford Group

DIRECTOR’S AND EXECUTIVE REMUNERATION REPORT

COMMISSIONED BY

On the opposite side of the coin are audit committee members, nearly 60 per cent whom do not receive a retainer for their extra work, and 20 per cent receive no extra compensation of any kind. Audit committee chairs are only somewhat better compensated, with 88 per cent receiving an additional retainer, at a median value ranging from $14,900 in smaller companies to $27,500 in the largest ones. “The audit committee chair and members bear a great deal of responsibility for approving the accuracy and appropriateness of the company’s financial condition,” said Howard Lichtman, Bedford’s chief marketing officer. “We wonder if these companies are rewarding the risks appropriately.” The authors of the report surveyed 105 companies listed on the Toronto Stock Exchange, with a focus on juniors and development firms. It is a cohort that Lichtman said had lacked hard numbers. The companies were divided into four tiers to provide meaningful peer group data to industry professionals. The study showed that managers’ compensation

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news packages grow “in lock step” with the company’s market capitalization level. The median salary for a CEO at a company rated in the $50 to $500 million category is $270,900; $500 million to $1 billion, $375,000; $1 to $4 billion, $497,500; and more than $4 billion, $925,000. In keeping with other industries, the ratio of stock options, shares and bonuses to fixed pay for CEOs also grows in proportion to the company. In the under-$500 million category, this “pay for performance” totals 53 per cent of a CEO’s total compensation package; in the over-$4 billion category, the number climbs to 86 per cent. Some years are lean and some years are fat; those are the risks and rewards for being in charge. “When all is said and done, the CEO is accountable for the combined results of all the managers who report to her or him, which in turn represents the overall results of the company,” said Lichtman. The study also tracked the trend of reduced or non-existent bonuses for CEOs at struggling companies, with 42 per cent of companies not offering bonuses for CEOs last year. In addition, 13 per cent did not grant CEOs share-based rewards. For the top-tier executives studied, that means a multi-million dollar pay cut. Rewarding executives for performance is a simple way to reduce conflict by aligning their interests with the interests

of shareholders, said Wei Wang, assistant professor of finance at Queen’s School of Business, who is currently researching the retention and compensation of managers at firms in bankruptcy. The same is true of board members, but according to the report, their ratio of share-based pay to fixed pay actually decreases as the size of the companies studied increases. In the under-$500 million bracket, 70 per cent of the total compensation for board members is share based, while at the biggest companies — the $4 billion-plus bracket — just 40 per cent of remuneration is linked to share value. This is unusual, said Wei. Normally, studies show board member compensation to be increasingly tied to share value as companies grow because bigger companies tend to have big institutional investors on their boards, and those investors want share-based rewards. For smaller cap companies without much revenue, “shares are the carrot on the stick,” said Lichtman. They have to attract able board members. “As you move into the $4 billion range, a mining company’s compensation structure begins to resemble that of any large corporation. Bedford hopes to repeat this survey in the future, making it possible to compare year-on-year data. To download Bedford’s original report, “Hitting Pay Dirt,” go to www.bedfordgroup.com/bedford/pdfs/paydirt.html. CIM

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news Kimberley process needs refining Certification scheme a work in progress By Heather Ednie

Photo courtesy of De Beers Canada

The certification scheme the artisanal diamond to regulate the trade in fields of Zimbabwe,” he rough diamonds is flawed. added. “De Beers does This is the conclusion that not operate in Zimauthor Ian Smillie, one of babwe but, as a responthe main architects behind sible industry leader and the initiative to rid the founding member of the world of rough diamonds, World Diamond Council makes in his new book (WDC), we are working Blood on the Stone: Greed, with all stakeholders Corruption and War in the towards a constructive Global Diamond Trade. and sustainable solution The Kimberley Process to the issue.” Certification Scheme De Beers has been a (KPCS) is designed to pre- The Kimberley Process Certification Scheme prevents conflict diamonds from entering the leading advocate for a vent rough diamonds from legitimate diamond supply chain. working group on KP being used to finance reform. As a member of armed conflicts and rebel movements. couldn’t keep denying the situation, the WDC, De Beers calls upon governAll diamonds from a given country and when the UN Security Council ments to review and renew their commust go out with that government’s took interest in 2000, the idea of a cermitment to the KPCS by providing it certificate — creating an auditable trail tification system for rough diamonds with the support and resources it of where the diamonds come from. took form, and only three years later needs, and by establishing coherent “For example, if Guinea says they the KPCS was launched,” Smillie and strategic engagement between exported 1,000 carats worth $1 million recalled. those responsible for KPCS compliance to Israel, it should show on Israel’s Seven years later, the weaknesses of and other branches of government, report too,” Smillie said. “The whole the scheme are clear to Smillie. “It’s including security forces, customs and process was negotiated by governbased on consensus, so 100 per cent border control authorities, and the ments, with industry and NGOs particagreement is required to suspend a judiciary. ipating, and is strengthened by the country,” he explained. In the UN “What is clear is that the KPCS has national regulations created to support Security Council, only five countries proven that it does have teeth,” said it,” he explained. But the KPCS is not have veto power; in the Kimberly Lavoie. “It is the only international working because governments will not Process, all 75 do. organization that has been able to get tough with each other. Chantal Lavoie, acting CEO and call the Zimbabwean government to Smillie, development consultant COO, De Beers Canada, defended the account and effect positive change and chair of the board of the Diamond KPCS and argued that it has evolved in the way it manages its diamond Development Initiative, first became into an effective mechanism for stemsector.” active in the movement to address the ming the trade in conflict diamonds, If these reforms and improvements conflict diamond issue over a decade and is recognized as a unique conflict- to the system don’t happen, Smillie ago as part of a team for Partnership prevention instrument to promote said they may need to look at a real, Africa Canada, which launched a peace and security. “That has been the tough consumer campaign. “The time report, “The Heart of the Matter,” KPCS’s most remarkable contribution may come soon to start telling people detailing proof that smuggling, crime to the restoration of peace in Central that diamonds can’t be trusted,” he and terror was infecting the diamond and West Africa,” he said. said. “My druthers are to not go after trade. Lavoie, however, acknowledged industry — they’ve been pretty good, To address the situation, a public that the KPCS has its limits. “The and are pushing for human rights campaign was launched to grab the KPCS has come under increasing critinclusion. We have to go after the govmedia’s attention — and to make the icism from sections of the internaernments. However, industry would diamond industry respond. “De Beers tional community following revelalikely be the first unfortunate victim of was the one that began to realize they tions of alleged human rights abuses in such a campaign.” CIM 20 | CIM Magazine | Vol. 5, No. 8

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upfront E D U CAT I O N / O U T R E AC H by Pe te r C a u l f i e l d

Canada brings mine training to Mongolia Program will develop mining professionals for Oyu Tolgoi and other projects Ramping up

Photo courtesy of Ivanhoe Mines Ltd.

To meet this goal, virtual campuses accessible through Oyu Tolgoi’s human resources department and the Mongolian University of Science and Technology’s (MUST) mining department were up and running in October. The first students have already enrolled in Canadian-developed online mining courses, designed to provide applied training and skills development to professionals in Mongolia’s rapidly growing mining industry. The curriculum has two parts: 160 hours of online courses that will be provided by EduMine, and nine days of short courses that will be delivered by about 20 University of British Columbia (UBC) professors at Mongolian Minister of Mineral Resources and Energy Dashdorj Zorig tries out the jumbo simulator at Oyu Tolgoi Mine. MUST’s campus in Ulan Bator. Simon Houlding, vice-president of professional development for EduMine’s parent, he Oyu Tolgoi property in southern Mongolia conInfoMine, says the online courses, which cover both theory tains approximately 81 billion pounds of copper and 46 million ounces of gold in Measured, Indicated and practice, were developed by industry specialists and and Inferred resources. This represents one of the include such topics as bench-phase design for open pit minworld’s largest undeveloped copper-gold projects; the cur- ing, cyanide management in mining, and mine health and rent resources are expected to support open pit and safety. Professor Bern Klein, head of UBC’s Institute of underground mining for approximately 60 years. It could Mining Engineering, says students must successfully comalso contend for the world’s largest human resources plete the online course work before moving on to the short challenge. courses. In October 2009, Vancouver-based Ivanhoe Mines and The UBC-MUST-EduMine program has five different its partner Rio Tinto signed a long-term investment agree- streams: surface mining, underground mining, mineral ment with the government of Mongolia for the processing, mining environment and communities, and construction and operation of Oyu Tolgoi. Among the mine management and economics. Klein says the course terms is an agreement that at least 90 per cent of the will prepare mining professionals for the open pit and employees at Oyu Tolgoi be Mongolian citizens. block caving underground bulk mining techniques that During the construction and expansion phases, at least will be undertaken at Oyu Tolgoi, which is currently 60 per cent of the employees must be Mongolian nationals; scheduled to go into operation in 2013. they need to comprise 75 per cent of the workforce Graduates of the program will receive a Certificate in engaged in mining and mining-related work. In addition, Mining Studies from UBC. “We expect to put several hunwithin five years, at least half of the engineers must be dred engineers through the certificate program in about Mongolian, with an increase to at least 70 per cent within five years,” says Klein. “Ivanhoe wants to hire engineers for 10 years. Oyu Tolgoi and get them trained quickly.”

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upfront E D U CAT I O N / O U T R E AC H

Virtual campuses The program is a joint offering of the UBC’s Norman B. Keevil Institute of Mining Engineering, Vancouver-based EduMine and MUST, which is a multidisciplinary centre of education, training and scientific research, with campuses in Ulan Bator, Mongolia’s capital, and Erdenet, a recently built mining community. “EduMine has set up virtual campuses at MUST and at the Oyu Tolgoi mine site,” Klein explains. “After the students have paid their fees for the program, EduMine is notified and it emails the students their password. They can then log into the EduMine website, which will give them access to all the online courses.” “One of the challenges we face is the fact that the courses will be delivered in English,” Klein adds. “But we’re optimistic that we’ll ultimately be successful.” All of the course material in the program will be delivered in English, except for the online Mining 101, which has been translated into Mongolian and which introduces Englishlanguage mining terminology. Klein explains that although older Mongolians speak Russian as a second language, the younger ones are learning English. “Mongolians want to reach out to the world, and they realize they need to speak English in order to do it,” he says. “They are eager to learn, and the program will introduce them to state-of-the-art mining skills the country needs to meet the human resources demands of its rapidly growing and modern mining industry.”

complete. The first short course for those who have completed the online portion will be in June 2011; the first graduates are expected in fall 2011. No decision has been made yet about the program’s duration.

Reaching beyond borders Mongolia is much more modern and progressive than its size (population three million) or its location (between Russia and China) might suggest. Julian Dierkes, associate professor at UBC’s Institute of Asian Research, has visited Mongolia several times and says the country is changing rapidly and becoming increasingly urban.“Many people speak foreign languages, including English, German, Japanese and Korean,” says Dierkes. “And not just in the capital, Ulan Bator, but in outlying areas of the country.” In addition, Mongolia is very outward-looking and open to the world. “Mongolia is the only post-socialist democracy in Asia,” Dierkes says. “The country is a working democracy, with a real commitment to the democratic political process.” Klein says Mongolia has been actively forging links with Canadian exploration and mining companies and educational institutions. Earlier this fall, the Mongolian prime minister and government officials travelled to Canada and took part in a roundtable on mining in Vancouver that was sponsored by the Asia-Pacific Foundation of Canada. CIM

A joint venture Discussions about the program began nearly four years ago. “When Rio Tinto got involved in Oyu Tolgoi through our partnership with Ivanhoe, we recognized there was a need to raise the professional standards of the people who will be working on the project,” explains Allan Moss, Rio Tinto’s general manager of copper technology and member of UBC’s mining faculty industry advisory committee. He suggested modifying its Certificate of Mining Studies program to meet that need. In 2008, the project began to take shape with the involvement of UBC, Rio Tinto’s human resource professionals and EduMine. The cost of the program is $9,500 per student. That tuition cost will be covered by the Oyu Tolgoi Mine for the employees it enrolls in the course. Revenues will be split between UBC, EduMine and MUST. From start to finish, the course will take each student eight months to December 2010/January 2011 | 23

upfront PROCESSING by Heather Ednie

Intensive energy efficiency Aluminerie Alouette makes energy reduction an operational victory Continuous improvement

Photo courtesy of Aluminerie Alouette

Alouette’s first phase of construction, completed in 1992, included 264 pots (one production line) at a capacity of 215,000 tonnes, and a power contract for 395 MW. With funds available for expansion, the strategy was to improve capacity while using the same power consumption. By 2003, they had increased capacity to 245,000 tonnes. The production increase was achieved by raising the pot current from 300 to 330 kA (between 1996 and 1999). During that time, the improvement of the cathode block material allowed the smelter to significantly reduce cell voltage drop. With the higher thermal conductivity of the new material, it was possible to keep the The Aluminerie Alouette smelter, located near Sept-Îles, Quebec, consists of nearly 600 pots, which pot in thermal balance, even at the higher together produce 570,000 tonnes of aluminum each year. current. “Most of the smelters switched to the new cathode grade,” recalls Hugo Levesque, R&D superintendent, Aluminerie Alouette. “In luminerie Alouette is a global leader for both what it that time, it was a question of speed. This new information produces and how smartly it consumes. The largest was known all around the world, and the fastest smelter to aluminum smelter in the Americas creates over switch was getting most of the benefit. Alouette made the 570,000 tonnes of ingots and sows annually. It is also decision to replace all of its pots in the production line.” boasts the lowest specific energy consumption for aluIn 2004, the government of Quebec awarded Alouette minum production worldwide. with a power block of 500 MW. “We were recognized as the Created in 1989, Alouette runs as an independent operbest value-added option in Quebec, with the best economic ating company, owned by a consortium composed of Rio Tinto Alcan, Austria Metall, Hydro Aluminium, SGF and impact for the province,” says Jules Côté, vice-president of Marubeni. A primary smelter, it imports alumina from operations, Aluminerie Alouette. “With that award, our total Australia, Brazil and Guinea, and reduces it to aluminum power block grew to 895 MW.” using Pechiney electrolysis technology, which is based on The major increase in power availability allowed for the the Hall-Héroult process. The reduction process requires Phase 2 plant expansion, completed in 2005 at a capital cost carbon anodes, which are also produced on-site at the anode of $1.45 billion. A new line was installed in the plant, plant. In the first stage of the anode plant, the paste plant, including 312 pots; as well, and a test section of 18 pots was anodes are created from petroleum coke and pitch before created, for technology development. going to the baking furnace, and then to the rodding shop to A gate process allows Alouette R&D staff to run experihave stems attached. The pot rooms consist of four halls, of ments in the test section and, when viable, scale up to the approximately one kilometre in length, for a total of 594 production line. “It’s a rigorous process, ensuring no interruppots constructed with steel shells lined with refractories. tions to production,” says Côté. “The vision we had when Using the electrolysis process, alumina is dissolved in installing our test section and developing our R&D departcryolite and electrolyzed around 960° Celsius. Liquid alu- ment was to ensure we maintain our competitive edge.” minum is siphoned into crucibles after settling, with each The six-person R&D department is fully integrated into pot producing approximately 2.7 tonnes daily. The chemical the production side. They work closely with operations, reaction eats away at the anodes, leaving behind carbon holding daily meetings to ensure transparency. “R&D is butts to be recycled into new anode production when anode part of our culture, part of our daily business,” says Côté. replacement is done, typically every 26 days. In the cast The primary R&D aim at Alouette is to produce more methouse, three carrousel casters produce 750-kilogram sows als with less energy and is the key to a sustainable from the liquid aluminum. operation, he adds.

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upfront PROCESSING

Under development The medium-term focus is to decrease specific energy consumption (SEC) from 12.8 to 12.5 MWh per tonne. This goal is linked to the fixed power contract allowed by Hydro Quebec. Reduced SEC not only will allow the production of more aluminum with the same power contract, but answers Alouette’s vision of an industry that is more energy-friendly. “With the current worldwide aluminum production reaching 35 million tonnes, a savings of 1 MWh per tonne would correspond to a reduction of 35 million MW per year,” explains Levesque. The SEC is a function of the current efficiency and the pot voltage. So at Alouette, all the pot material compositions are investigated to find potential pot voltage improvement. For example, the total anode voltage drop is around 500 millivolts (mV). A reduction of only 50 mV corresponds to a reduction of 0.150 MWh per tonne. Work also focuses on keeping the current efficiency under control. “Alouette is not in the benchmark group in this measure, and a lot of work is done on the alumina feeding strategy to the pot,” Levesque says. “At low SEC, the pot control becomes more challenging, and the tools need to be improved to address this.” Another research area focuses on decreasing heat loss in the pots. “By reducing the heat lost, we can transfer that energy to produce more metal,” Côté says. When changing the pot design, the heat losses and heat fluxes of the sidewalls and bottom can be evaluated using several thermocouples around the pot. Data is extracted, logged and then analyzed by the R&D team. Reducing the heat loss can be done by isolating the cell with new component design and/or materials. “The challenge is to keep the thermal balance when the isolation is tried,” Levesque adds. “We use modelling tools to predict the results, but we often have surprises when the tests are performed on the real cell.” While energy efficiency is the priority, reducing the carbon footprint of the smelter is also a key objective. In response, a high-performance, low-emission anode is under development. Currently, each anode at Alouette is replaced on a 32-hour cycle. However, during the anode’s lifetime, side reactions occur, like the carbon consumed by the air burn and CO2 reactivity, which can also consume carbon under the anode. “Our aim is to reduce those side reactions and to use all the carbon procured for the right use,” Levesque says. The current net carbon consumption at Alouette is 404 kilograms of carbon per tonne of aluminum. A reduction of five kilograms of carbon per tonne would represent 2,800 tonnes of carbon saved annually. To reach this objective, the R&D team works on both operational practices and the fundamental science related to the anode fabrication and its chemical composition.

Scientific gains Since the completion of the Phase 2 development in 2005, annual production has been raised by 25,000 tonnes. In 2006, the plant produced a current of 340 kilo amps (kA),

while today it has increased to 360 kA, all with the same energy consumption and no capital expenditure investment. This process improvement has been mainly achieved as a consequence of Alouette’s R&D activities in the pilot plant. “Several high-risk trials have been performed on the pots,” says Levesque. “We challenged the perceived paradigms of the aluminum industry to ensure the right decisions were taken in our development strategy.” “If you look around the world at different smelters, we are the benchmark in terms of energy consumption,” Côté adds, “and we want to keep this benchmark figure. We believe, in the long term, energy will be more and more of a focus.”

Excelling into the future Alouette has laid out specific goals for the R&D team to strive for, on an ambitious timeline. The pot line, which currently runs at 360,000 amps, is targeted to reach 400,000 amps at 12.5 MWh per tonne. As well, pot life is to be extended from its current 1,900 days to 2,500 days. “We’re pushing very hard on the timeframe,” admits Côté. “We want to implement these changes fully in production within five years. Currently, we’re finalizing engineering for the prototype, and then we’ll build it and install by spring. After testing, we’ll adjust, and then begin to scale up to production.” CIM

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upfront TECHNOLOGY by Alexandra Lopez-Pacheco

Integrated, efficient solution Mines adopting energy management system A collaborative effort

Photo courtesy of BESTECH

When BESTECH was developing the technology, it formed a consortium of industry experts and organizations to establish best practices and standards. The consortium members include organizations such as the Centre for Mining Excellence (CEMI) as well as mining giants Vale and Xstrata Nickel. This year, the technology was installed at Vale’s Coleman Mine and Xstrata Nickel’s Fraser Mine, both in Sudbury. “We worked together with BESTECH on what was needed in the industry and they’ve completed the development of a ventilation management tool for us,” says Cheryl Allen, chief engineer, ventilation, Vale mines mill technical services, Canadian operation. “BESTECH designed a system that can be tailored to suit the Guy Faubert (BESTECH electrician) and Paul Huffels (BESTECH safety supervisor) installing a rack-mounted needs of each mine.” IZC at Vale’s Coleman Mine. The Intelligent Zone ControllerTM is the brains of the underground network and Part of the company’s goal was to creone of the components of the NRG1-ECO system. ate a technology with as open an IT architecture as possible, so that it could integrate with technology already in use at any mine. he mining industry in Canada has more than its fair In addition, the company offers mines assistance with share of challenges today — from stringent environenergy-efficiency grants and rebate applications for both the mental and regulatory pressures to an urgent need initial site assessments and commissioning of NRG1-ECO. to improve operational costs, productivity and “We work with our clients to provide all the necessary syssafety, all while having to mine deeper than ever before. tem training for NRG1-ECO stakeholders at a mine,” says Aware of these challenges, BESTECH, a provider of engineering, automation, software development and envi- Dan Dumais, BESTECH energy specialist.“A comprehensive ronmental monitoring services, developed NRG1-ECO education and employee awareness system is also available (energy consumption optimization), a multi-faceted to ensure the sustained use of NRG1-ECO in their mine.” approach, which helps mining companies manage their processes, safety, equipment and energy usage more Control and versatility efficiently. NRG1-ECO includes five control strategies. “The proNRG1-ECO combines hardware and software to manage gramming parameters for the control systems are based on the many pieces of automated equipment in a mine. “It’s a the needs of each mine site and designed according to their complete energy management system and can be applied to specifications,” says Tran. “Each mine site has its own protoprocesses such as compressors, pumps and any other sys- col and our team customizes their system to reflect that.” tems in a mine that could benefit from a reduction in energy One of the first controls that mines utilize is time-of-day consumption,” says Trang Tran, BESTECH’s manager of scheduling where windows of opportunities exist between software products development. shift changes, holidays and other regular set times to control Typically a mine’s ventilation system operates continously devices. Ventilation technicians preset the execution of at peak capacity. NRG1-ECO’s VOD (ventilation-on-demand) batches, based on the mine’s planned activities per day, week module enables the mine to instantly control the ventilation or month. It can also control the devices by scheduling an system’s air flow to where and when it is needed. This allows automatic reduction that allows the system to reduce energy a mine to reduce its ventilation costs by as much as 30 per cent consumption. — which represents significant savings given that ventilation “The second control strategy is the real-time control. This costs make up almost 50 per cent of a mine’s energy costs. allows mine personnel to turn devices on and off in real

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

upfront TECHNOLOGY

time, either through a web-based user interface or through human machine interface screens that sit in the control room,” says Tran. An event-based control allows the site operators to configure the system to automatically react to a fire or high carbon monoxide level, for example. When the system detects an incident, it knows the actions that need to take place. Those events often relate to safety, and can also include details such as a vent door being left open by mistake. A environmental monitoring control includes instruments underground that measure different environmental parameters, such as high levels of carbon or nitrogen oxide and the temperature and airflow in a certain area. “Based on real-time data collected, the system can control or reissue air flow requirements for the current real-time environmental needs,” says Tran. Finally, the system integrates with industry tagging systems and monitors and adjusts air flow in real time and responds to incoming sensor data as well as the location of tagged mine personnel and equipment. It then adjusts ventilation to meet their needs,” says Tran. The Intelligent Zone ControllerTM (IZC) is the brains of the underground network. It increases the system responsiveness as data can be analyzed and processed internally and does not have to be transmitted to surface for decisionmaking. In the case of an interruption in communication with the controls above ground, the IZC can execute commands to the devices to operate in fail-safe mode.

BESTECH’s new technology is attracting the attention of other mining giants, including North America’s fastest growing senior gold producer, Goldcorp Inc. “We looked at two different systems,” says Imola Götz, chief engineer, Hoyle Pond Mine, Goldcorp.“It seemed BESTECH was offering a complete package from ground up. We’re hoping to go ahead with NRG1-ECO in a two-staged approach: first, have the system up and running on two levels in the Hoyle Pond Mine in Timmins, and if that proves to be satisfactory, then we will expand it to the rest of the mine.” CIM

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Better information, better decisions NRG1-ECO also stores all the data it processes for its real-time monitoring. The system provides mine intelligence regarding device performance, adherence to established systems and processes, and offers analysis of a mine’s key performance indicators. “If you are monitoring your processes then you can make informed decisions,” says Allen. “With the NRG1-ECO system, you have better monitoring and control and that allows you to make decisions, helps your management make better decisions, and it helps the people working day-to-day with the systems understand their environment. If you’re continually measuring, you should also be able to be continuously improving what you’re doing.”

Canadian Mining HR Professionals and Innovators Group 1VPU [OL KPZJ\ZZPVU! O[[W! SPURK PU TPUPUNOY

December 2010/January 2011 | 27

upfront S U S TA I N A B I L I T Y by D a n Z l o t n i kov

A sustainable structure Setting the foundation for the Centre for Excellence in CSR

Image: iStock

Getting the groundwork done right is especially vital because the expectations for the projects are high. According to Judith St. George, director general at DFAIT, the federal government wants “to see the Centre for Excellence become the most upto-date and authoritative ‘go-to’ source of information and expertise on socially and environmentally sustainable projects.” Jean Vavrek, executive director of CIM, reiterates the Centre’s importance. “The Centre for Excellence is about a lot more than just a website,” he says. “It needs to get rounded into a wide range of face-toface activities and become a focal point where people come together for ongoing exploration, discovery and dialogue. I think the Centre will also become a source of ongoing educational activities.” “It’s not just an industry/civil society The four pillars of the federal government’s corporate social responsibility strategy: support host country dialogue that happens in various fora,” capacity building, promote key international CSR performance guidelines, support the creation of a Centre for adds Ian Thomson, program coordinator Excellence in CSR, set up the Office of the Extractive Sector CSR Counsellor for ecological justice and corporate accountability at the ecumenical organizahe Centre for Excellence in Corporate Social tion KAIROS Canada, and a representative of the Canadian Responsibility, officially launched in 2010, was cre- Network on Corporate Accountability — an alliance of over ated to be one of the four pillars of the Government 20 NGOs and CSOs. “We don’t need yet another space to of Canada’s overall CSR strategy. To ensure the Centre engage in those sorts of dialogues because they exist already. can bear the weight of its responsibility, experts from indus- What makes this special is the fact that we can actually talk try, the public sector, academia, Aboriginal communities and about government policy, NGO approaches, industry praccivil society organizations have been hard at work develop- tices, all in the same space and how they are all ing the framework, strategy and governance structure to intersecting.” make the Centre a comprehensive and credible source for CSR resources, research and consultation. A multitude of voices Currently, the Centre’s public face is an informational Collaboration and engagement have also defined the crewebsite that offers guidance to companies looking to create ation of the Centre and its Interim Executive Committee or expand upon their CSR programs, along with a directory (IEC). Over the past year, strong voices and minds have of CSR-related companies, organizations and government committed to a multi-stakeholder advisory structure, laying agencies. The site also hosts a growing list of country pro- the foundation for the implementation of a permanent execfiles that provides a primer on socio-economic issues and utive committee in early 2011. CSR resources for various mining jurisdictions. The range of voices and perspectives give the Centre The addition of information to the website has slowed in weight and balance, says Lee Nehring, vice-president of susrecent months, however, while behind the scenes, the tainability at Xstrata Nickel, and IEC member. “The Centre has been the focus of extensive multi-party efforts members bring a range of possibilities,” she says. “They and discussions as the future focus of this initiative contin- come from industry, from industry associations, labour ues to be defined. organizations, ecumenical organizations, mining-specific To establish the Centre, the Department of Foreign NGOs, public policy groups and academia. With that Affairs and International Trade (DFAIT) provided $150,000 expanded view, it makes it much easier for us to recognize in funding, spread across three years, and tasked CIM, as both the fundamentals of CSR practices and the importance Secretariat, with helping to lay the groundwork. of excellent practices for Canadian mining.”

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

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

The spectrum of voices is essential says IEC member Ian Thomson. “We expect the Centre to be a place where the various groups can come together in dialogue and try to advance their mutual understanding around the issues,” he says. IEC member Stephen Kibsey, vice-president of equity risk management with fund manager La Caisse, comments that “as investors, we can provide the questions that need to be answered regarding CSR-related practices and issues, and through our dialogue with mining corporations we can transmit to them what our concerns are about their CSR programs.” The role of the IEC, says Ron Nielsen, committee member and senior director with International Centre for Business Innovation and Sustainability, is less about initiating specific CSR projects and more about creating the framework for future executives to do so. But the issues before the IEC are numerous and crucial. “The interim executive has been preoccupied with setting up the organizational structure and arrangements within which the Centre will function, outlining an initial sense of what the mission is, putting in place a lot of the governance requirements,” Nielsen explains. “The entity needed to be established in terms of the levels of organized structure that are going to be in place, how decisions will be taken, how the Centre will be deciding on what its focus should be, and how you bring people into roles of that nature.” If the expectations are high, so is the interest. Members of the IEC represent an impressive array of credentials and insight. Andrea Baldwin, vice-president of member experience for Canadian Business for Social Responsibility (CBSR), points out that while the Centre’s current focus is on the extractive industries, there are positive implications for other industries as well. She explains that over 75 per cent of CBSR’s 110 member companies are not part of the extractive sector. CBSR expects that they will benefit from the Centre for Excellence all the same. “We see that many CSR best practices apply across sectors and support a vision that, over time, the Centre could expand to include research, tools and case studies from other sectors as well,” she says. The specifics of how the Centre will work to fulfil the government’s — and the many stakeholders’ — expectations are still being worked out, but the goal, says St. George, is for a Centre that is “led, supported and sustained by its stakeholders,” adding that “the Government of Canada hopes the Centre for Excellence will continue to grow, and be an authoritative, effective multi-stakeholder organization that will be accountable to its membership.” Nehring, ultimately sees the Centre as a destination for more than just mining companies. Her vision is that “as a result of entering the website, you would be opening the door to both the theory and demonstrated practice around something that you, as a small-, medium- or large-sized company, or a community, or even public policy official could actually use to solve an immediate problem.” CIM

ACHIEVEMENTS

Supplying savings pays

Rio Tinto Alcan has granted a “Bravo!” award to one of the company’s major suppliers, Kinecor LLP, for its strong commitment to reducing overall costs, innovative solutions, suggestions for improvement, active participation, optimization process and energy-saving efforts. The Kinecor Chicoutimi Branch has played an integral role in achieving these objectives. Since 2005, Kinecor’s Document Cost Savings program has reported over $45 million in customer savings. Rio Tinto’s “Bravo!” Award

Praising pioneering prowess Norman B. Keevil, chairman of the board of Teck Resources Limited, was recently honoured with the Fraser Institute’s T. Patrick Boyle Founder's Award during a gala dinner at the Fairmont Waterfront Hotel in Vancouver. The award recognizes excellence and accomplishment in the promotion of economic freedom and free-market ideas. Under Keevil's leadership, Teck evolved from relatively humble beginnings to become a major resource conglomerate with a $24 billion market capitalization. Recognized around the world for excellence in every facet of its work, the company is actively mining across North and South America and exploring opportunities in Australia and parts of Europe and Africa. Congratulating Keevil, Brett Skinner, president, Fraser Institute said, “Dr. Keevil exhibits a level of entrepreneurial prowess that few can match.” He added, “under his leadership, Teck has not only contributed immensely to the economic success of British Columbia and Canada, but also created employment opportunities for thousands of people around the world.” In accepting the award, Keevil thanked his family, friends, and associates for their indispensable contributions to the success of Teck. “I have to share this award with everybody who's worked with me. At Teck, our people are just as valuable as our ore reserves,” he said.

Norman Keevil, chairman of the board of Teck Resources Limited accepts the Fraser Institute’s T. Patrick Boyle Founder's Award during a gala dinner.

December 2010/January 2011 | 29

upfront Q&A by Peter Diekmeyer

Words to the wise Natural resources the portal to value for independent-minded investors investors need well-filtered, accurate, easy-to-understand data. This is one of the main reasons that I founded StockResearchPortal.

Photo courtesy of Ian Campbell

CIM: What is your outlook for raw materials demand during the coming months? Campbell: Raw materials demand is generally a function of economic growth. On that score the picture is mixed. I do not see the U.S. economy, the traditional motor of global economic growth, recovering any time soon. The recent mid-term elections (which returned the House of Representatives to Republican control) will only increase gridlock in Washington and make it harder for politicians there to get anything done. The U.K., for its part, appears to be suffering from the same economic malaise, as are many Western economies in one form or another. As a result, the world is increasingly dependent on emerging markets to fuel growth. That said, over the longer term, the raw materials demand outlook is quite bullish. The world population, which was just 1.1 billion people in 1910, is now at 7.5 billion and is expected to grow to 10 billion by 2020. In addition, many people in the emerging economies are moving into the middle class and are adopting Westernstyle, high-consumption lifestyles. The hard goods that they will be buying will have large material inputs.

an Campbell, a chartered accountant and chartered business valuator, is the founder of StockResearchPortal.com. The site, launched in 2008, provides current and comprehensive information on the approximately 1,600 oil and gas and mining companies listed on Toronto's stock and venture exchanges and currently counts 15,000 subscribers. In addition to market and commodity data, the web destination also holds information on investment education, valuation education, macroeconomic news and commentary, targeted industry commentary, and company-specific intelligence on base metal, coal, diamond, gold, potash, silver, uranium, oil and gas, other resource companies, as well as income trusts. Campbellâ&#x20AC;&#x2122;s work with StockResearchPortal.com provides him with a unique platform to follow industry developments. He recently shared his insights with CIM Magazine.

CIM: What are your views on the resources sector as a place to trade and invest? Campbell: I decided that the resources sector was the place to be in the fall of 2005, and nothing has happened since then to make me change my mind. Naturally, investors need to continuously monitor the macro-economic picture to make sure that it does not change. Right now, the geo-political outlook is filled with uncertainty. If some extraordinary event or conflict were to occur, that could change everything. As far as investments go, I believe that those who take responsibility for making their own decisions going forward are going to outperform others. To do that, individual 30 | CIM Magazine | Vol. 5, No. 8

CIM: We keep reading that Chinese demand is driving the industry â&#x20AC;&#x201D; what is the strength of this trend going forward and what will this mean for the Canadian minerals industry? Campbell: China is a force to be reckoned with. It has an inexpensive workforce and a strong government that can make and implement its decisions quickly. Not surprisingly, its economy has been growing rapidly for an extended period of time. To fuel that growth, the country has an enormous need for raw materials. But China affects the sector in other ways, too. The country is also sitting on close to $2 trillion in foreign currency reserves and is actively looking for places to invest that money, notably in the raw materials and extraction sector. CIM: What other trends are affecting the industry? Campbell: Mining companies, as always, continue to be vulnerable on the revenue side because they have very little control over the prices, which are, for the most part, set on the world markets. While companies can hedge their prices,

upfront Q&A

these strategies are not necessarily “accounting earnings friendly.” Mining and metals players also have significant vulnerabilities on the cost side. These come from a wide variety of areas. For one, price inflation, which has not showed up in statistics on the consumption front, has hit raw material producers hard. Many companies are recording significant rises in production costs due to factors such as increasing energy prices. Intense publicity surrounding the Chilean mine disaster will no doubt heighten pressure on mines to devote far more attention to safety issues. This, too, will have an effect on the cost side. Beyond that, resource nationalism is also rearing its head in many countries, for a variety of reasons. Here in Canada, government intervention to slow BHP Billiton’s recent attempts to buy PotashCorp in Saskatchewan is emerging as an example of what I call “resource protectionism,” through which countries are increasingly seeking to keep control of what they feel are strategic assets. CIM: What are some of the hot and not-so-hot commodities? Campbell: The hottest topic right now is gold prices, which, as we are talking (mid-November), appear to be hitting new highs every week. These new highs are in large part a function of the weakening U.S. dollar and economy, as well as gold’s traditional role as a hedge during times of uncertainty, such as those we have been seeing lately. I believe that these trends will continue, which in turn augurs well for gold. CIM: What about other metals? Campbell: The outlook for base metals also appears to be quite bullish. Copper in particular is doing well and will likely continue to do so. Like all other base metals, such as aluminum, nickel and zinc, an increasing share of the demand for copper comes from emerging markets. These markets in turn are growing faster than the global economy as a whole. Silver too is profiting from this trend; because

silver is a conductive metal, the lion’s share of silver production right now is used in industrial applications such as circuit boards and so on. That means as goes the economy, so goes silver demand. But silver also has additional value as a store of wealth and has traditionally benefited from flightto-safety periods, in part, because it has tended to track gold prices. That said, lately the paths of these two metals have diverged, and silver is now trading at more than one-fiftieth the price of gold. People who regard silver as a monetary asset would say that the asset is under-priced. CIM: Do you see outsized opportunities in any particular mining stocks? Campbell: One trend that I am looking at right now is what I see as a disconnect between the price of gold and the broad equity markets. As we speak, equity indexes are doing quite well. This would imply that the markets are bullish going forward. However, gold prices, which many investors regard as a safe haven during volatile times, are also strong. To me, those are contradictory messages. If the economy does hit a rough patch of sub-potential growth next year, the balance of probabilities is that most, if not all, stocks will have a hard time, too. This will of course affect explorers and producers, because when stocks do poorly, their ability to raise capital is often constrained. CIM: Will acquisitions and partnerships continue to play as large a role going forward as they have in the past? Campbell: Yes. Acquisitions activity will be high because of the increasing scarcity of resources such as oil, gold, copper nickel and many others. As a result, as I mentioned earlier, both countries and companies are increasingly looking to secure longer term supplies for strategic reasons. China, in particular, will no doubt devote a significant portion of its foreign currency holdings to make large acquisitions. CIM

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outlook 2011

The risk of remaining silent Engagement and good faith key to communicating the mining message By Dan Zlotnikov

or anyone curious about the air quality around Syncrude’s upgrader facilities near Ft. McMurray, the answer is not far away. At about nine in the morning on Monday, December 6, for example, the UE-1 air quality monitoring station reported concentrations of 17 parts per billion of nitrogen dioxide and 2.4 parts per billion (ppb) of sulphur dioxide, well below their respective guideline levels of 212 ppb and 172 ppb. The levels may be different today. To find out, just visit the Wood Buffalo Environmental Association (WBEA) website. The monitoring station is one of 15 being run by the WBEA, a joint initiative by oil sands operators, the Alberta government, non-governmental organizations (NGOs) and local Aboriginal communities. The data are regularly updated and available online for anyone to see.

In the communications battle raging over the oil sands, the WBEA — whose programs include terrestrial as well as human exposure monitoring — has done much to build trust and goodwill between the oil sands operators and the local residents. In foreign jurisdictions, the industry is under similar scrutiny — despite the recent defeat of Bill C-300. At the same time, the International Monetary Fund projects that Asian GDP will be seven per cent for both 2010 and the year to come. For the foreseeable future, the importance of communication, transparency and trust is only likely to increase as demand for minerals rebounds. The marketplace is beginning to reflect this reality and the success of resource companies depends on how ready they are to meet this challenge. December 2010/January 2011 | 33

Photo courtesy of Goldcorp

Goldcorp’s human resources coordinator Daniel Guay chats with local Cree elders Isaac and Jane Visitor at the company's Eleonore project in Wemindji, Quebec.

outlook 2011 tancy ÉEM. “It just becomes a burden, and we should take a traditional perspective on what we’re doing.” But at GDP* 2010 GDP* 2011 China 10.5 9.6 The contenders the same time, failure to live up to the India 9.7 8.4 accepted CSR standards is only going Brazil 7.5 4.1 to become more costly for a company Russia 4 4.3 as time goes on, ranging from higher The majors Euro area 1.7 1.6 insurance premiums to longer delays in 2.6 2.3 United States securing government permits for a Japan 2.8 1.5 project. Germany 3.3 2 “If you take an enlightened view, all The miners Chile 5 6 of these efforts are going to help you Canada 3.1 2.7 Australia 3 3.5 perform and be in a stronger position, South Africa 3 3.5 have a better reputation, improve your Source: IMF World Economic Outlook | Oct. * Projected employees’ commitments to your efforts and just give you advantages Poor second cousin to top priority on a number of fronts that are to your benefit,” Nielsen Communicating a company’s corporate social responsi- explains. “But if you rely on a traditional ‘business as bility (CSR) efforts is not a simple process. In fact, with the usual, this is the way we’ve always done it’ approach and various standards, agreements and compacts out there, then try to layer CSR on top, it’s always going to be an the compliance obligations a company must undertake can uphill battle.” seem unreasonable. Avoiding such battles, may require an olive branch and “That’s the complaint that is often levelled against CSR a measure of candour. “It’s a lot easier to engage with comefforts,” says Ron Nielsen, senior director of the Interna- panies that will say ‘we’ve got a problem in these specific tional Centre for Business Innovation and Strategy and areas and we’d like to talk about how to resolve it,’ than senior associate with sustainable management consul- companies that continually deny that there’s any problem in the face of mounting evidence,” says Jamie Kneen, outreach and communications coordinator for the civil society organization MiningWatch Canada. “I think that’s the first ǁǁǁ͘ŬůŽŚŶ͘ĐŽŵ step in terms of engagement.”

Economic forecast

Getting the word out

Down to Earth. Up to the Challenge.

Klohn Crippen Berger (KCB) celebrates 60 years of engineering ƐĞƌǀŝĐĞ ĂŶĚ ŝŶŶŽǀĂƟŽŶ͘ < ŽīĞƌƐ Ă ĨƵůů ƌĂŶŐĞƐ ŽĨ ƐĞƌǀŝĐĞƐ ŝŶ Žŝů ĂŶĚ ŐĂƐ͕ ŵŝŶŝŶŐ͕ ĞŶǀŝƌŽŶŵĞŶƚĂů͕ ǁĂƚĞƌ͕ ƉŽǁĞƌ ĂŶĚ ƚƌĂŶƐƉŽƌƚĂƟŽŶ͘ KƵƌ ĐŽŵŵŝƩŵĞŶƚ ƚŽ ĞǆĐĞůůĞŶĐĞ ŝƐ ƚŚĞ ĚƌŝǀŝŶŐ ĨŽƌĐĞ ďĞŚŝŶĚ ĞǀĞƌǇƚŚŝŶŐ ǁĞ ĚŽ͘ /Ŷ ĨĂĐƚ͕ ŽƵƌ ƉƌŽũĞĐƚƐ ĐŽŶƟŶƵĞ ƚŽ ƐƚĂŶĚ ƚŚĞ ƚĞƐƚ ŽĨ ƟŵĞ ĂŶĚ͕ ƚŽĚĂǇ͕ ǁĞ ǁŽƌŬ ŽŶ ŵĂŶǇ ƐŝƚĞƐ ƚŚĂƚ ǁĞ ŚĞůƉĞĚ ĚĞǀĞůŽƉ decades ago. tĞ ĂƌĞ ƉƌŽƵĚ ŽĨ ŽƵƌ ůĞŐĂĐǇ ĂŶĚ ǁŝůů ĐŽŶƟŶƵĞ ƚŽ ďƵŝůĚ Ă ďĞƩĞƌ ǁŽƌůĚ ƚŚƌŽƵŐŚ ĞǆĐĞůůĞŶĐĞ͕ ŝŶŶŽǀĂƟŽŶ ĂŶĚ ƚĞĂŵǁŽƌŬ͘

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

Mining’s critics have done a very good job of using the numerous communications tools at their disposal, says Oil Sands Developers Group president Don Thompson. “I think all groups, whether they are environmental advocates or not, have become, in recent times, much more organized as a result of the growing predominance of social media,” he says. “I think that has made a tremendous difference in terms of how rapidly these groups are able to coordinate their activities to reach consensus on issues and to move to action.” Kneen agrees. “There is a sharing of experience, and I would say that is both in terms of the benefits and in terms of the negatives,” he says. “There is a network of organizations, communities and academics working on impact benefit agreements, for instance. There are also networks in different countries and in regions trying to deal with some of the negative impacts and looking at both the technical and the social aspects, and sharing information.” The industry, likewise, is flexing its media muscle. Goldcorp, whose operations are located in six countries in the Americas, released its CSR-focused publication “Above Ground” this past summer. “The objective of the publication is to share our good news, good stories and our good practices,” says Dina Aloi, vice-president of corporate social responsibility for Goldcorp.

outlook 2011

Photo courtesy of Barrick Gold

Barrick partnered with Christian development organization World Vision to provide health outreach programs to communities near Barrick’s mines in Peru.

The publication is a complement to the established annual corporate sustainable development report, which, says Aloi, “is quite thorough in discussing what we are doing about sustainable development, where we have exceeded our expectations, where we have not quite gotten there, and where we’re going to be taking it the next year. So that’s a very different report, with a different theme and a different objective.” But perhaps even more importantly, she says, the company has not only been open with its information, it has also asked stakeholders for input on what information they wanted to see. “I started in early 2009 as vice-president of corporate social responsibility, and one of the things I heard when I started reaching out to stakeholders was ‘we never heard from you before,’ and there was a lot of mixed information out there,” explains Aloi. “People are asking about water issues. We’re sending them reports and publishing reports on our website in English and in Spanish. We feel it is very important to be transparent. And that may be something we weren’t doing in the past — actually talking to people.” Aloi says the exposure to critical eyes has benefitted the company as it worked on its human rights policy. “We reached out to a number of NGOs that were experts in human rights, both nationally and internationally, and we asked them for feedback on the draft of our human rights policy. A number of them revised it and came back to us with suggested changes,” she explains. “We do that with NGOs working in community development too. We went to one and asked: ‘Can you help us make sure our community investments support sustainable development?’ They helped us develop a tool for evaluating investments, so when we say we’re doing sustainable community development, we can be assured we are contributing to sustainable prosperity.”

CSR gains weight In the investment community, corporate social responsibility is growing more defined as a fundamental value. “A CSR program is very significant, and it’s not just when

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Photo courtesy of the Banro Foundation

The Banro Foundation along with a Congolese NGO installed a potable water delivery system serving four communities near the Banro Corporation's Twangiza development project.

NGOs “don’t all bite”say CSR experts BY VIRGINIA HEFFERNAN

“Our partners on the ground are telling us to get involved with mining companies,” says Kevin McCort, president and CEO of CARE Canada, a charity that spends more than $150 million per year in the poorest countries of the world. “They want us to work with you to manage the flow of resources from mining investments in ways that generate value for the community.” McCort was addressing the mining industry at a seminar on risk mitigation and corporate social responsibility in emerging markets. The need for collaboration is especially acute in nations where communities are deeply suspicious of public security forces. In cases, local NGOs can act as a third-party voice for mining companies often held responsible when the military intervenes to break up roadblocks or remove trespassers. ”Your biggest concern is that the situation will escalate and public security forces — supposedly acting on your behalf — are later accused of human rights abuses,” says Signi Schneider, director of the political and human rights risk department at Export Development Canada (EDC). “There will be an argument that you are complicit.” Instead, she says, mining companies would do well to work directly with the community and NGO representatives to prevent such incidents. She gave an example of a mining company and the community working together in a conflict zone to alert each other to the imminent arrival of a military they both considered a threat. They had a mutual plan that included disabling trucks and securing any other valuables the military might steal. But mining companies should complete a thorough due diligence before they approach an NGO for CSR partnership, says Mark Blumberg, a partner at Blumbergs LLP, who helps Canadian NGOs fulfil their CSR obligations under the Canadian Income Tax Act. One of the most important factors, he says, is that the corporate cultures of the NGO and the mining company are compatible because “the difference between the two can be like the difference between alien and human.” Companies can get a good sense of the NGO’s suitability by getting references from other partners, reviewing T3010 information and financial statements, and conducting a basic legal review of the NGO to make sure it is registered and to determine how it conducts its foreign activities. Another approach is to set up an independent charity within the target country that can work directly with local NGOs. For example, the Banro Foundation, controlled by Toronto-based Banro Corporation, works with six Congolese NGOs to provide training in skills such as carpentry, masonry, motor mechanics, agriculture and tailoring to former artisanal miners at the Twangiza development site. “You have access to a wealth of experience in the NGOs and we don’t all bite,” says McCort. 36 | CIM Magazine | Vol. 5, No. 8

mining companies are trying to raise funds — it will also have an impact on the ongoing value of a mining company,” says Stephen Kibsey, vice-president of equity risk management at Caisse de dépôt et placement du Québec. “As the shares trade in the market, whether things get better or worse in their CSR program, we believe it will be reflected in the intrinsic value of the company and then in the market value as well.” Kibsey describes the Caisse as a mainstream investor and says the institutional fund manager, which has over $100 billion in net assets, considers a wide range of risk factors when evaluating a mining company, but CSR record is given a fair weight in the assessment.

The index card One established source for in-depth information on companies’ CSR efforts, as well as their environmental and governance efforts, is the Dow Jones Sustainability World Index (DJSI World), which tracks the top 10 per cent of sustainable companies globally. The 11-year-old DJSI World is compiled from a starting “universe” of the world’s 2,500 largest companies by freefloat market capitalization. The companies’ economic, environmental and social performance are systematically analyzed, and those in the top 10 per cent with regard to sustainability are included in the index. Increasing demand for a broader sustainability benchmark compelled the investment-focused firm Sustainable Asset Management (SAM) to create a supplemental index in November — the DJSI World Enlarged — that effectively increases the threshold to include the top 20 per cent of sustainable companies, which it analyzes in partnership with Dow Jones Indexes. “We had a lot of investor demand for something broader with which to gauge their sustainability investments, as some investors found the DJSI World too narrow,” explains Allie Boyer, SAM’s spokesperson. “We also have a major global asset manager who is interested in linking an ETF to the new index in the near future.” But Boyer emphasizes that the inclusion of a company in the Enlarged Index is not the same as inclusion in the DJSI World. “It’s important to keep the distinction — we want to keep the class of the DJSI World,” she says. “Being in the top 10 per cent is

outlook 2011 really the goal for companies. Inclusion in the DJSI World Enlarged is good; however, we want companies to keep striving and continually improving their sustainability performance.” Barrick Gold, the world’s largest gold producer, recently announced its inclusion in the DJSI World Index for the third year running. Nancy White, Barrick’s director of communications for responsible mining, offers the operator’s perspective on the Index: “The Dow Jones Sustainability Index is one of the most respected rankings of its kind, so being named a world leader is a significant recognition. It means that our environment, governance, safety and community programs have been evaluated against rigorous criteria and found to be world class,” she says. “DJSI provides an objective tool for socially responsible investment groups and investors to assess the social and environmental performance of companies like ours.” The objective analysis helps the companies as well, adds Boyer. “At the end of the assessment period when everything is announced, the companies receive a company scorecard that lets them know how they did in comparison to their peers, for them to really reflect back on their work,” she explains.

The spirit if not the letter Despite its vocal and well-organized opposition to Bill C-300, the industry is not resting on its laurels when it comes to the issue of accountability. Paul Hébert, vicepresident, government affairs with the Mining Association of Canada (MAC), points to MAC’s Toward Sustainable Mining (TSM) initiative for companies operating in Canada. Participation in the initiative is mandatory for all MAC member companies, and Hébert explains that TSM includes independent, third-party verification of performance results across a range of areas including crisis man-

agement, energy and greenhouse gas emission management. “The TSM program is something that MAC members are very proud of,” Hébert says. “It allows us to really focus on performance. Performance and continuous improvement are the ultimate reflection of industry’s commitment to CSR. TSM has been, and continues to provide that quantitative and qualitative evidence of these values.” TSM also includes active participation from NGOs, via the Community of Interest (COI) advisory panel. The panel, comprised of representatives from a range of stakeholder groups, plays a crucial role in the TSM process, says Hébert. “The purpose of the TSM COI panel is to provide direction, comment and advice to MAC and its membership on the progress, development and implementation of the TSM principles throughout the mining sector. It also ensures that the process is transparent, verifiable, works to protect the environment by improving mining practices in Canada and improves all aspects of mining in the Canadian communities where it is taking place,” he explains.

Dialogue in pursuit of leadership The fight over Bill C-300 is over, but industry experts and mining critics agree it is far from the last act. Canadian operators are demonstrating, however, that there are alternatives to the conflict. If the industry wishes to maintain its leadership role on the world stage, it must embrace transparency — especially in its CSR activities — for the sake of its reputation and the fortunes of its constituents. And if a mining company happens to lose its way on the path to CSR excellence, its people need only pause and listen — surely there can be no better compass than the voice of the critics. Or, they could take a chance and ask for a little direction. CIM

December 2010/January 2011 | 37

perspectives pour 2011

Le risque de garder le silence L'implication et la bonne volonté : la clé pour communiquer le message minier

la mi-novembre, la station de suivi de la qualité de l’air UE-1 de Syncrude, à proximité de Fort McMurray, rapportait des concentrations de dioxyde d’azote et de dioxyde de soufre bien en deçà des niveaux maximums permis. Vous pouvez connaître les teneurs en tout temps dans leur site Web sur la qualité de l’air. La station de suivi est l’une de 15 gérées par la Wood Buffalo Environmental Association (WBEA), une initiative conjointe des exploitants des sables bitumineux, du Gouvernement de l’Alberta, d’ONG et de communautés autochtones locales. Dans la controverse des communications concernant les sables bitumineux, la WBEA a beaucoup travaillé pour établir la confiance et la bonne volonté entre les exploitants et les résidents locaux. Pendant ce temps, le Fonds monétaire international prédit que le PIB asiatique aura une croissance de sept pour cent en 2010 et 2011. L’importance des communications, de la transparence et de la confiance ne fera qu’augmenter alors que la demande pour les minéraux s’accroîtra. Les marchés commencent à refléter cette réalité et la réussite des compagnies dépendra de leur préparation à rencontrer ces défis. Il n’est pas facile de communiquer les efforts de responsabilité sociale des entreprises (RSE). Avec toutes les normes et ententes existantes, les obligations de conformité d’une compagnie peuvent sembler non raisonnables. « C’est la plainte la plus courante, cela semble uniquement un fardeau », dit Ron Nielsen, directeur principal du International Centre for Business Innovation and Strategy et associé principal de la firme de développement durable ÉEM. Toutefois, avec le temps, le non-respect

des normes acceptées de comportement RSE deviendra onéreux pour une compagnie, allant de primes d’assurance plus élevées à des délais plus longs pour obtenir les permis gouvernementaux. « Ces efforts aideront votre rendement, vous serez en meilleure position et aurez une meilleure réputation, et vous améliorerez l’engagement de vos employés », explique M. Nielsen. « Si vous vous fiez à une approche commerciale traditionnelle et travaillez toujours de la même façon en ajoutant la RSE, ce sera toujours une lutte. » « Il est plus facile de travailler avec des compagnies qui avouent avoir un problème et demandent de l’aide qu’avec des compagnies qui nient continuellement qu’il existe un problème malgré l’évidence croissante », dit Jamie Kneen coordinateur des communications pour le groupe Mines Alerte Canada.

Faire passer le message Don Thompson, président du Oil Sands Developers Group, dit : « Je crois que tous les groupes, défenseurs de l’environnement ou autres, sont très bien organisés en raison de la prédominance croissante des médias sociaux. Cela fait une grande différence en termes de la vitesse à laquelle ils peuvent coordonner leurs activités et inciter à l’action », dit-il. M. Kneen est d’accord : « Il existe un partage d’expériences, négatives et positives. Des réseaux d’organismes, de communautés et d’académiciens travaillent sur les ententes touchant les répercussions et les avantages et sur les aspects techniques et sociaux. » December 2010/January 2011 | 39

Photo courtoisie de Goldcorp

Femmes maya travaillant dans une pépinière à proximité de la mine Marlin de Goldcorp au Guatemala

perspectives pour 2011 L’industrie aussi mise sur les médias Goldcorp a publié Above Ground portant sur la RSE : « Le but de la publication est de partager nos bonnes nouvelles et nos bonnes pratiques », dit Dina Aloi, vice-présidente de la responsabilité sociale des entreprises chez Goldcorp. Cette publication complète le rapport annuel sur la RSE. « Il décrit ce que nous faisons concernant le développement durable, où nous avons dépassé les attentes et où nous n’avons pas tout à fait atteint le but. » La compagnie non seulement divulgue de l’information, elle demande aussi aux intervenants ce qu’ils désireraient voir. « Lorsque je parlais aux intervenants, on me disait : ‘Vous ne nous avez jamais parlé auparavant,’ et il y avait beaucoup d’information contradictoire. Les gens posent des questions sur l’eau, nous leur envoyons des rapports; nous publions en anglais et en espagnol sur notre site Web. Il est très important d’être transparent. » Selon Mme Aloi, le coup d’œil critique a été bénéfique pour la compagnie alors qu’elle travaillait sur les politiques de droits humains. « Nous avons contacté des organismes non gouvernementaux, experts en droits humains, et nous leur avons demandé une rétroaction sur notre politique de droits humains. » « Nous avons aussi contacté des ONG travaillant en développement des communautés afin de nous assurer que nos investissements dans la communauté soutiennent le développement durable. Ces organismes nous ont aidés à développer un outil pour évaluer les investissements; nous sommes donc certains que nous contribuons à la prospérité durable. » La RSE se définit de plus en plus comme une valeur fondamentale. « Un programme de RSE aura un impact sur la valeur d’une compagnie minière », dit Stephen Kibsey, vice-président, gestion des risques – Marchés boursiers, Caisse de dépôt et placement du Québec. Selon lui, la Caisse, dont les actifs nets dépassent 100 milliards de dol-

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

lars, examine de nombreux facteurs de risque lorsqu’elle évalue une compagnie minière; mais elle considère aussi le dossier RSE. Une source d’information sur les efforts de RSE des entreprises est le Dow Jones Sustainability World Index (DJSI World). Cet indice suit les meilleures compagnies durables à travers le monde. Le rendement économique, environnemental et social de ces compagnies est analysé systématiquement et les compagnies formant le 10 pour cent supérieur en durabilité sont incluses dans l’indice. Une demande croissante pour un point de référence élargi a poussé la firme Sustainable Asset Management (SAM) à créer un indice supplémentaire, soit le DJSI World Enlarged, qui inclut les compagnies formant le 20 pour cent supérieur; ces dernières sont analysées conjointement aux indices Dow Jones. « Certains investisseurs considéraient le DJSI World trop limité », explique Allie Boyer, porte-parole pour SAM. Elle souligne cependant que l’inclusion d’une compagne dans le DJSI World Enlarged n’est pas identique à être dans le DJSI World. C’est le but d’une compagnie d’être dans le 10 pour cent supérieur. L’inclusion dans le DJSI World Enlarged les pousse cependant à s’améliorer. La Corporation minière Barrick a récemment annoncé qu’elle était incluse dans le DJSI World pour une troisième année consécutive. Nancy White, directrice des communications, Exploitation responsable, dit : « Le Dow Jones Sustainability Index est l’un des classements les plus respectés. Cela signifie que nos programmes environnementaux, communautaires, de sécurité et autres ont été évalués selon des critères rigoureux. » Malgré son opposition bien organisée contre le projet de loi C-300, l’industrie se dirige vers une obligation de rendre compte. Paul Hébert, vice-président, affaires gouvernementales, Association minière du Canada (AMC), souligne l’initiative Vers le développement minier durable (VDMD) pour les compagnies exploitant au Canada. Les compagnies membres de l’AMC doivent obligatoirement participer à cette initiative; le rendement et l’amélioration continue constituent le reflet de l’engagement de l’industrie envers la RSE. Les ONG participent aussi au programme VDMD par le Groupe consultatif des communautés d’intérêt. Ce groupe consultatif, formé de représentants des groupes d’intervenants, conseille l’AMC et s’assure que le processus de RSE est transparent, vérifiable, qu’il travaille à protéger l’environnement en améliorant les pratiques minières au Canada et qu’il améliore tous les aspects de l’exploitation minière dans les communautés canadiennes où il y a des mines. La lutte contre le projet de loi Bill C-300 est terminée mais les experts de l’industrie et les critiques s’entendent pour dire que c’est loin d’être fini. Les exploitants canadiens démontrent toutefois qu’il existe d’autres options que les conflits. Si l’industrie veut maintenir son rôle de leader mondial, elle doit être transparente, surtout en ce qui concerne les activités de RSE. ICM

Le 23 mai 2011 Palais des congrès de Montréal Montréal (Québec) Billets 1.800.667.1246 / www.cim.org

GALA DE REMISE

DE PRIX

20 11

PaGAGnini Un accord entre la musique classique et l’humour Les musiciens de PaGAGnini offrent une interprétation tout en humour de certaines des plus grandes pièces de l’histoire de la musique. Le violoniste virtuose Ara Malikian, de concert avec trois autres musiciens, interprète les compositions de génies de la musique comme Mozart, Pachelbel, Chopin et, bien sûr, Paganini, tout en faisant la part belle à certains styles populaires comme le rock ou le folk. Les musiciens jouent, dansent, rient, pleurent et échangent avec l’assistance, faisant de PaGAGnini un spectacle d’humour original où le violon et le violoncelle se transforment spontanément en instruments nouveaux et inédits.

http://www.flixxy.com/classical-music-comedy.htm PRÉSENTÉ PAR

ET SES DÉPOSITAIRES CANADIENS

“Un spectacle fascinant qui galvanise les foules et provoque des rires et du plaisir à n’en plus finir. C’est du théâtre à l’état pur.”

“Cette parodie hilarante d’un récital classique a un effet jubilatoire sur les foules.”

“Pagagnini n’est pas un spectacle qu’on aime, c’est un spectacle qu’on adore.”

– ABC

– El Pais

– The Gazette, Montréal

OUTLOOK 2011 Global forces, local concerns BY STEVE STECYK

he mining sector earned its share of the headlines in 2010. Mergers and acquisitions were a hot topic, as companies sought out new exploration projects and tried to expand entrenched developments. BHP Billiton’s attempted takeover of PotashCorp raised fundamental questions about the strategic value of the country’s resources and the “net benefits” foreign operators must ensure if they want to acquire and develop them. Environmental concerns prompted the federal government’s rejection of Taseko Mines’ provincially approved Prosperity Mine, compelling the company to possibly return with a revamped plan for the mine. It also underlined the need for better regulatory coordination among the levels of government. In short, it was a busy and interesting 12 months for an industry that has reclaimed the spotlight in this country. “Mining used to be regarded as the old economy or belonging to yesterday’s economy,” says Paul Stothart, vicepresident of economic affairs at the Mining Association of Canada. “I think that vision has changed. Over the last ten years, across the country, there has been recognition that mining, oil and gas are long-term areas of strength for Canada — areas that generate wealth and tax revenues.” In the short term, Stothart expects the industry’s strength will be tested by global economics. He notes that the United States, our largest trading partner, will remain our biggest market for minerals and metals. “The Bank of Canada is looking for growth in the U.S. to remain fairly modest in 2011 and then start to move more strongly in 2012,” Stothart says. Attention will still remain firmly focused on China as it continues with its internal infrastructure projects and its role as a world manufacturer — two areas which require a strong supply of raw materials. “Regardless of where Canada is selling its minerals, world prices are going to be driven primarily by Chinese demand for minerals,” Stothart adds.

However, the spectre of inflation looms. In October, inflation in China jumped to 4.4 per cent, the highest level in two years. In response, the Chinese central bank hiked the reserve rates at six of the country’s largest banks. “They may do things with interest rates or other levers to try to moderate their growth, but they can’t slow down too much,” explains Stothart. “They need growth to be in the nine to 10 per cent range to accommodate domestic pressures and realities.”

What does this all mean for the Canadian mining sector? “It depends on the commodity,” Stothart says. “Certainly it is positive for Teck, a major producer of metallurgical coal. They have a strong relationship in China and the Chinese want as much of that product as they can get.” Stothart foresees that the burgeoning Chinese middle class will fuel demand, as well. “Copper, nickel, zinc, anything driven by infrastructure will be very important,” he says. “I think that copper will be the best indicator, because it goes into wiring, communications, buildings, automobiles and other basics.” The strong price of gold continues to drive exploration in Canada as well as the reopening of previously closed mines across the country. Whether gold prices continue to rise is anyone’s guess. “Gold is driven by global economic and political uncertainty, so it is hard to predict where prices are heading,” says Stothart. “One can find analysts on both sides of this debate.” As the global search for metals and minerals carries on, the mining sector will play a valuable role in Canada’s economic recovery. Given the fundamental drivers of mineral demand internationally, Canada is in an excellent position to capitalize on its strengths in the coming year, to become an even stronger force within the global mining industry. December 2010/January 2011 | 43

Photo courtesy of Teck Resources Limited

Expansion and exploration seed mining landscape project. Castillian Resources is reevaluating unmined extensions near the former Hope Brook Mine, as well as other mineralization that was uneconomic at 1980s gold prices. Early-stage exploration targeting a variety of gold deposit types throughout Newfoundland is being conducted by several other companies, including Mountain Lake, Metals Creek, Silver Spruce, Cornerstone and Manson Creek. One of the principal developments in the gold mining sector for 2010 was Anaconda Mining’s commissioning of a redeveloped mill at the Pine Cove Gold Mine.

Asian appetite for base and ferrous metals grows Economic and population growth in India and China continue to strengthen Hauling ore at Duck Pond demand for Newfoundland and Labrador’s historically significant base and ferrous he mining industry in Newfoundland and Labrador metals, as well as for new commodities such as antimony, has enjoyed strong growth in 2010, with major capi- uranium and rare earth metals. Examples in central Newtal investments in new and expanding projects, and foundland, such as Teck Resources’ Duck Pond operation exploration successes in both emerging and former pro- and Rambler Metals and Mining’s Ming Mine development, ducing projects. Grassroots and advanced exploration are are benefiting from strong prices and increasing demand. targeting a broad range of commodities, reflecting the Paragon continues to intersect high-grade base metals at wide geological diversity and strong mineral potential of its Lemarchant project near the Duck Pond copper-zinc Newfoundland and Labrador. mine, and Thundermin and Cornerstone have increased Principal among ongoing capital construction projects the drill-indicated resource at the Little Deer copper projare Vale’s nickel metallurgical processing plant, at a total ect. Other projects with recently reported resource expenditure of US$2.82 billion, and Rio Tinto’s $435 mil- estimates include those targeting zinc-lead (Messina, lion expansion of the Iron Ore Company of Canada’s Mountain Lake, Buchans Minerals and Prominex). operations in western Labrador. These two mega-projects Likewise, Labrador Iron Mines and New Millennium alone will help ensure the health and long-term growth of Capital Corporation are well-poised to avail of high iron the sector. demand as they move towards production at separate direct-shipping iron ore (DSO) projects in western There’s gold in them hills! Labrador. Alderon is also advancing its Kamistiatusset projAll-time high gold prices, driven by continuing global ect, located in the heart of this world-class iron ore district. uncertainty and volatility in currency markets, have had a positive impact on advanced gold exploration projects throughout PRELIMINARY ESTIMATE OF the island of Newfoundland. Examples include Marathon VALUE OF MINERAL PRODUCTION 2009 PGM and Mountain Lake Resources’ Valentine Lake project, NEWFOUNDLAND & LABRADOR where drilling of a substantial bulk tonnage gold-bearing vein system has returned very promising results. Metallic minerals $2,244,082,000 Elsewhere on the island, Northern Abitibi Mining continNon-metallic minerals $45,715,000 ues to encounter high-grade vein and lower grade bulk tonnage mineralization at its Viking project. Crosshair ExploTotal $2,289,796,000 ration and Paragon Minerals plan to extract a bulk sample of Data courtesy of the Mining Association of Canada the high-grade Jaclyn vein at the Golden Promise

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

China Minmetals has reached full production at its Beaver Brook antimony operations in central Newfoundland at a time when antimony prices are rising dramatically. Aurora Energy has received a positive preliminary economic assessment for the proposed Michelin uranium project in central Labrador. Canada Fluorspar plans to reactivate existing underground fluorspar mines at St. Lawrence and has been released from environmental assessment and is completing final design work. The company hopes to be in production in 2012.

Quest for rare earth and minerals Exploration for rare earths/rare metals is primarily in Labrador where properties have been acquired by Quest, Rare Earth Metals, Midland and Search. On the island part of the province, exploration is being carried out by JNR, Altius, Kirrin Resources and RockBridge Resources. Buchans Minerals and Benton Resources have discovered magmatic nickel-copper-sulphide zones on their Long Range property, and Vale is exploring for sediment-hosted copper on the Bonavista Peninsula. Four Corners is evaluating a newly discovered vanadium occurrence in western Newfoundland, while Crosshair is resampling drill core to increase the vanadium resource at its Central Mineral Belt project in Labrador. Supporting sustainability and exploration The provincial government continued its mine-site remediation program in 2010. Work on the historic Rambler and Baie Verte mine sites has been largely completed and a

TOTAL CAPITAL EXPENDITURES FOR MINERAL RESOURCE DEVELOPMENT Exploration

$34,049,126

Deposit appraisal

$19,470,909

Mine complex development

$136,047,957

Total

$189,567,992 Data courtesy of the Mining Association of Canada

new project undertaken to address environmental and safety issues associated with the former Buchans Mine. The government also continues to enforce the proper planning for closure and rehabilitation of current mines, including the provision of adequate financial assurance. In addition to delivering ongoing programs in the areas of geoscience, online geo-data delivery, promotion and industry assistance, the government launched several new initiatives in 2010. These include a resource evaluation of the Julienne Lake iron deposit in western Labrador, the development of an online exploration approval system and initiation of the province’s first-ever minerals strategy. This strategy will focus on expanding exploration and production activity and creating additional employment opportunities, while also ensuring environmental protection and the sustainable development of mineral resources. BY THE STAFF OF THE MINES BRANCH, DEPARTMENT OF NATURAL RESOURCES, GOVERNMENT OF NEWFOUNDLAND AND LABRADOR

PRODUCING MINES IN NEWFOUNDLAND & LABRADOR (2009) COMPANY

MINE SITE

ACTIVITY TYPE

Beaver Brook Antimony Mines

Beaver Brook

U, C

Rambler Metals and Mining Plc

Nugget Pond

Anaconda Mining Inc.

Pine Cove

O, C

LOCATION

COMMODITY

Glenwood

Snook’s Arm

Baie Verte

Teck Resources Limited

Duck Pond

Millertown

Cu, Zn

Vale

Voisey’s Bay

O, C

Voisey’s Bay

Ni, Cu, Co

Wabush Mines

Scully

O, C

Wabush

Iron Ore Company of Canada

Carol Lake

Labrador City

Hurley Slateworks Company

Burgoyne’s Cove

Atlantic Barite Ltd.

Buchans

Galem Gypsum Mines Ltd.

Coal Brook

Atlantic Minerals

Lower Cove

O O

Burgoyne’s Cove

Slate

Buchans

Barite

St. George’s Bay

Gypsum

Lower Cove

Limestone, dolomite

O, C

Labrador Inuit Development Corporation

Ten Mile Bay

Nain

Anorthosite

Iron Ore Company of Canada

Plateau Dolomite

Labrador City

Dolomite

Shabogamo Mining and Exploration

Roy’s Knob

Labrador City

Silica

O = Open pit

U = Underground

C = Concentrator Data courtesy of the Mining Association of Canada

December 2010/January 2011 | 45

Industrial minerals and aggregates sustain production

Photo courtesy of NS Department of Natural Resources

Gypsum and coal Gypsum mining in Nova Scotia has been one of the most consistent industries over the past 100 years. The quality and size of Nova Scotia gypsum deposits, combined with economical water-based transport options, has made Nova Scotia the North American leader in gypsum production for decades. The outlook for natural gypsum-mined rock has changed quickly over the past few years, mainly as a result of the substitution of natural gypsum with a by-product called “synthetic gypsum,” which is generated at a number of electrical power generating plants that burn coal containing sulphur. Historically, gypsum mining and coal usage were never directly related; however, recent environmental air-emission standards have required a number of coal-fired power plants in the United States and Canada to reduce emission limits for sulphur dioxide released through flue gases. A consequence of this regulation has been the production of synthetic gypsum following the “scrubbing” of flue-gas emissions. CGI Inc. operates a gypsum and anhydrite mine at Miller Creek supplying rock to wallboard and cement manufacturing facilities on the east coast of North America. Some power plants produce large volumes of synthetic gypsum, which initially was managed through the establishment of land-fills. More recently, gypollowing a six-year period of steady growth, mineral sum wallboard producers have begun to collaborate with production in Nova Scotia was 25 per cent lower in power-plant operators by replacing naturally occurring gyp2009 and 2010 than in 2008. This decline was sum rock with synthetic gypsum created from the largely attributed to a substantial downturn in gypsum minpower-plant emission. Although this arrangement benefits ing and suspension of production in 2009 at the province’s only base metals mine at Gays River. both industries, gypsum mining activity throughout the world Nova Scotia’s minerals industry is currently dominated has been impacted negatively by this change. The rate of by the production of industrial minerals and structural substitution is expected to increase until the practice of fluematerials throughout the province. Production of commodi- gas scrubbing at power plants is no longer required and ties such as coal, salt, anhydrite, limestone and silica sand synthetic gypsum is no longer produced as a by-product. have remained relatively consistent in recent years. Coal is expected to be the primary fuel source for elecConstruction aggregates produced from crushed rock trical power generation in Nova Scotia for the foreseeable and sand and gravel deposits have also remained consis- future, although a number of alternatives are being develtent and now represent one-third of the value of all minerals oped or proposed, including wind, tidal and solar-based produced in the province, overtaking gypsum production as options. A special lease for coal was issued in 2009 to the the highest value commodity. The province exports approximately a third of construction aggregates produced. Exploration expenditures and mineral claim-staking PRELIMINARY ESTIMATE OF VALUE OF MINERAL were also down from 2008 levels during 2009 and 2010. PRODUCTION FOR 2009 NOVA SCOTIA However, increasing commodity prices for gold, base metals and rare earth minerals have resulted in renewed Metallic minerals — interest in exploring for these commodities. The Touquoy Non-metallic minerals $380,082,000 gold mining project continues to refine its mining plans as a detailed feasibility study is being conducted. The project Total $380,082,000 was approved through the provincial environmental Data courtesy of the Mining Association of Canada assessment process in 2008.

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

developers of the Donkin coal mine project where, to date, underground exploration has been initiated and a mine feasibility evaluation undertaken. News releases from the project indicate that several million tonnes per year of metallurgical coking coal could be produced, and barge and rail transportation options are currently under consideration.

Social/environmental trends Since 1981, government policy has imposed a moratorium on exploration for uranium. In November 2009, the provincial government passed the Uranium Exploration and Mining Prohibition Act, which prohibits mining of mineral deposits where the average concentration of uranium exceeds 100 ppm (parts per million). In 2010, Mineral Resources Act regulations were amended to clarify how encounters of uranium would be managed to allow for exploration of other metals and commodities that could also contain low levels of uranium. In April 2009, the provincial government extended a hold on new surface coal mining projects in Cape Breton County to allow for further study of the environmental effects of this type of mining activity in the region. The Nova Scotia Department of Natural Resources (NSDNR)led Surface Coal Mine Reclamation Enhancement Initiative (SCMREI) was extended for an additional three-year period to evaluate reclamation practices taking place at the Point Aconi surface coal mine. The mine operator is

TOTAL CAPITAL EXPENDITURES FOR MINERAL RESOURCE DEVELOPMENT- PRELIMINARY ESTIMATES FOR 2009 Exploration

$5,923,818

Deposit appraisal

$4,258,000

Mine complex development

$20,742,844

Total

$30,924,662 Data courtesy of the Mining Association of Canada

currently implementing some of the leading practices identified by SCMREI, including the transplantation of large areas of existing forest vegetation. The results of concurrent reclamation practices at the Point Aconi Mine will be used by the government to develop future policy on surface coal mining in the province. After a three-year public consultation process, NSDNR is in the final phase of preparing a natural resources strategy to provide guidance for each of the theme areas: minerals, forests, parks and biodiversity. It is expected that the strategy will be completed in late 2010 and early 2011 with a focus on improving integrated resources management processes. BY DAN KHAN, PLANNING AND DEVELOPMENT OFFICER, NOVA SCOTIA DEPARTMENT OF NATURAL RESOURCES, MINERAL DEVELOPMENT AND POLICY SECTION

PRODUCING MINES IN NOVA SCOTIA (2009) COMPANY

MINE SITE

ScoZinc Ltd. (Acadian Mining Coporation) Scotia

ACTIVITY TYPE

O, C

LOCATION

COMMODITY

Gays River

Zn, Pb

Atlantic Industrial Minerals Inc.

Glen Morrison

Cape Breton

Limestone

Georgia-Pacific Canada Inc.

Sugar Camp

Melford

Gypsum

Georgia-Pacific Canada Inc.

Melford

Gypsum

CGC Inc.

Little Narrows

Gypsum

Mosher Limestone Company Limited

Upper Musquodoboit

Limestone

Lafarge Canada Inc.

Brookfield

O, P

Brookfield

Limestone

The Canadian Salt Company Limited

Pugwash

Limestone

National Gypsum (Canada) Ltd.

Milford

Gypsum

Shaw Resources Ltd.

Nova Scotia Sand and Gravel

Nine Mile River

Silica

Fundy Gypsum CompanyUSG Canadian Mining Ltd.

Wentworth and Miller Creek

Wentworth

Gypsum

Sifto Canada

Nappan

Salt

Black Bull Resources

White Rock

Quartz

3061831 Nova Scotia Ltd.

Florence

Big Pond

Coal

Pioneer Coal Ltd.

Point Aconi

Coal

Pioneer Coal Ltd.

Stellarton

Coal

O = Open pit

U = Underground

C = Concentrator

Solution Mining

P = Plant Data courtesy of the Mining Association of Canada

December 2010/January 2011 | 47

Advanced development and new production on the horizon Mount Pleasant Mine. Geodex Minerals Ltd. entered into an agreement with Northcliff Exploration Ltd. on the Sisson Brook W-Mo deposit that could see production coming as early as 2012.

Photo courtesy of Maurice Mazerolle

Base metals A recent preliminary economic assessment study outlines a 20-year lifespan for Halfmile Lake Mine, to be supplemented by 11 years of production from the nearby Stratmat zinc-lead project. Stratabound Minerals Corp. continued drilling on its Captain and Captain North Extension deposits in the Bathurst Camp, with an additional 3,200-metre drill program currently underway. SLAM Exploration Ltd. recently acquired the Silverjack property. The high-grade silver-lead-zinc-copper property comprises three claims Aerial view of PotashCorp’s new Picadilly Mine (bottom) and the existing Penobsquis operation (top) covering 48 hectares adjacent to the Nash Creek property in northern New Brunswick. he value of the province’s mineral production in 2009 Puma Exploration reported results from two drill holes was estimated at $1.1 billion compared to $1.4 bilon the Turgeon copper-zinc VMS deposit in northern New lion in 2008. The drop is due to reduced base-metal Brunswick. Puma has initiated a deep drilling program to production following the closure of the Caribou and Resconfirm the extension of mineralization at depth and the tigouche mines, as well as decreasing reserves at Xstrata’s continuity of mineralized zones and continued exploration Brunswick Mine. Nevertheless, ongoing development of on its adjacent Nicholas-Denys property. mineral and natural gas deposits are cause for optimism. The largest and most advanced of these projects is PotashCorp’s Picadilly Mine. This mine, anticipated to com- Gold mence production in 2012, will reach full production of two Blue Note Mining Inc. extended drilling on its Williams million tonnes per year following a three-year ramp-up Brook property, 90 kilometres west of Bathurst, testing phase. In the Bathurst Camp, development work on the Halfmile Lake zinc-lead deposit by Kria Resources Ltd. is PRELIMINARY ESTIMATE OF VALUE OF MINERAL expected begin production in 2011 with ore to supply PRODUCTION FOR 2009 Xstrata’s Brunswick mill. Base metal potential in the NEW BRUNSWICK Bathurst Camp has also attracted the interest of Votorantim Metals Canada Inc., which has finalized an option/joint Metallic minerals $749,603,000 venture agreement with El Niño Ventures Inc. and Xstrata Non-metallic minerals x Zinc Canada. This agreement will see $20 million in exploration expenditures over seven years. Coal x In southern New Brunswick, Adex Mining Inc. has signed Total Mining $1,090,375,000 an agreement with Great Harvest Canadian Investment Company Ltd. to fund a definitive feasibility study of the x = confidential Data courtesy of the Mining Association of Canada

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

TOTAL CAPITAL EXPENDITURES FOR MINERAL RESOURCE DEVELOPMENT- PRELIMINARY ESTIMATES FOR 2009 Exploration

$9,260,705

Deposit appraisal

$750,520

Mine complex development

$437,266,172

Total

$447,277,397 Data courtesy of the Mining Association of Canada

shallow gold mineralization associated with quartz veins and potassic-altered rhyolite. Castle Resources Inc. began a 3,300-metre infill drilling program on the West Gabbro Zone (WGZ) of the Elmtree Gold property in northern New Brunswick. Micon International Ltd. completed a preliminary economic assessment on the Elmtree gold project, indicating a pre-tax internal rate of return (IRR) of 25 per cent using $900 Au/oz and a pre-tax IRR of 63 per cent using $1,100 Au/oz, based on open pit mining of 1.117 million tonnes at an average gold grade of 2.41 g/t Au, with 90% Au recovery and a stripping ratio of 6.3:1.

Polymetallic minerals Geodex updated their NI 43-101-compliant resource estimates for the Sisson Brook W-Mo deposit in westcentral New Brunswick. Adex Mining Inc. continues with metallurgical testing on the W-Mo Fire Tower and Sn–In–Zn North Zones, with a development strategy of onsite production of “marketable” metal products (i.e., indium sponge and zinc metal) instead of bulk metal concentrates. Nickel Continental Nickel Ltd. conducted a 10-hole, 1,356metre drilling program to follow up on newly identified EM anomalies on the historic St. Stephen nickel property in southern New Brunswick. Drill holes intersected massive, semi-massive and disseminated sulphides, with notable mineralization at Anomaly G and the Triple J anomaly.

Antimony Rockport Mining Corporation has uncovered significant antimony mineralization during trenching and drilling programs on their Bald Hill property in southern New Brunswick. At their Main and Parallel zones, they have calculated a combined NI 43-101 potential quantity and grade consisting of 725,000 to one million tonnes at 4.11% to 5.32% Sb. Non-metallic minerals and petroleum Great Western Minerals Group Ltd. reported results from an 11-hole, 2,382-metre drilling program (BR09-1 to 11) targeting rare-earth-element (REE) mineralization on the Benjamin River property in northern New Brunswick. PetroWorth Resources Inc. signed a letter of intent with Enbridge Gas NB Inc. to construct a 22-kilometre pipeline from the Rosevale natural gas field to the city of Moncton. They are in the midst of drilling two horizontal gas wells in the Frederick Brook shale on their Rosevale property. Corridor Resources Inc. entered into an agreement with Apache Canada Ltd. to assess their land holdings in hopes of producing oil and natural gas resources in southern New Brunswick. Over 18 months, Apache plans to invest at least $25 million to evaluate the commercial potential of natural gas development in the Frederick Brook shale in the Elgin area and light oil development in the recent Caledonia oil discovery. Southwestern Resources Canada Ltd. was granted exclusive licences to conduct an exploration program covering over 2.5 million acres to test for the presence of new hydrocarbon basins in central and southeastern New Brunswick. Over the next three years, Southwestern has committed to spending $47 million, of which more than 80 per cent will be spent on gathering and processing geochemical, gravity, magnetic and seismic data. BY SEAN MCCLENAGHAN, KATHLEEN THORNE, AND LES FYFFE, GEOLOGICAL SURVEYS BRANCH, NEW BRUNSWICK DEPARTMENT OF NATURAL RESOURCES

PRODUCING MINES IN NEW BRUNSWICK (2009) COMPANY

MINE SITE

ACTIVITY TYPE

LOCATION

COMMODITY

Xstrata Zinc Canada

Brunswick

U, C

Bathurst

Pb, Zn, Cu, Ag, Au

Potash Corporation of Saskatchewan

New Brunswick (Sussex)

U, P

Sussex

Potash, salt

Graymont

Havelock

O, P

Havelock

Lime, limestone

Brookville Manufacturing Company

Brookville

O, P

Brookville

Dolomitic lime

Elmtree Resources Ltd.

Sormany

O, P

Sormany

Limestone

Atlantic Silica Inc.

Poodiac

Silica

O = Open pit

U = Underground

C = Concentrator

P = Plant Data courtesy of the Mining Association of Canada

December 2010/January 2011 | 49

La filière minérale est un moteur important de la reprise économique répartissent pour 57 % dans le Nord-duQuébec, 32 % en Abitibi-Témiscamingue et 8 % sur la Côte-Nord. L’or demeure la principale substance recherchée. Toutefois, l’exploration pour de nouvelles substances croît : terres rares et métaux de haute technologie.

Photo courtoisie de Association minière du Québec

Innovation minière Les entreprises de la filière minérale font des achats auprès de plus de 3800 fournisseurs de biens et de services situés dans toutes les régions du Québec, dont 1800 à Montréal et 250 à Québec. Plusieurs universités (notamment INRS, McGill, Polytechnique, Laval, UQAC, UQAM et UQAT) sont actives par le biais de programmes (8) ou de chaires de recherche (20). De plus, on compte au moins six consortiums de recherche, dont CONSOREM, COREM, DIVEX et SOREDEM. Au Québec, un système de partage d’information et de travaux entre entreprises, universités et centres de recherche constitue un avantage compétitif durable pour la filière minérale.

Le secteur du fer connaît un développement important au Québec

’industrie minérale au Québec compte plus de 52 000 emplois directs et indirects, une masse salariale évaluée à près de 2 milliards $ (sans compter les fournisseurs), des exportations totalisant près de 8 milliards $, une contribution au PIB de la province de 7 milliards $, des entrées fiscales nettes annuelles moyennes (depuis 2000) de plus de 280 millions $ pour le gouvernement du Québec et des projets d’investissements de 4,5 milliards $ d’ici 2013. Les nouveaux projets de développement se retrouvent dans les régions du Norddu-Québec (7), en Abitibi-Témiscamingue (3) et sur la Côte-Nord (1)1. Avec près de 30 mines en activité, cette industrie constitue un moteur économique de premier plan (production axée surtout sur le fer, le nickel et le cuivre, les métaux précieux tels que l’or et l’argent et les minéraux industriels soit le titane, le sel, le graphite, le niobium, la silice et le chrysotile). Elle compte également plus de 200 sociétés minières distinctes avec des dépenses d’exploration de près de 349 millions $ en 2009 et qui devraient atteindre plus de 500 millions $ en 2010. Ces dépenses se 1

La filière minérale au Québec, contribution socio-économique au développement du Québec et de ses régions, 2010, E&B DATA, Association minière du Québec, Association de l’exploration minière du Québec

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

Un budget qui préoccupe l’industrie Le milieu minier est fort préoccupé par certaines mesures contenues dans le dernier budget provincial. Au Québec, les droits miniers versés par les entreprises minières au gouvernement augmentent de 327 millions $ à 570 millions $ sur cinq ans. Il s’agit d’une augmentation marquée de 74 % des droits miniers payés par les entreprises. Globalement, incluant ces droits miniers, le secteur minier contribuera ainsi pour plus de 1 milliard $ aux revenus du gouvernement au cours des cinq prochaines années. CALCUL PRÉLIMINAIRE DE LA PRODUCTION MINÉRALE EN 2009

QUÉBEC Minéraux métalliques

4,624,394,000 $

Minéraux non métalliques

1,592,677,000 $

Total

6,217,071,000 $ Information courtoisie de Mining Association of Canada

MINES EN PRODUCTION AU QUÉBEC (2009) COMPAGNIE

SITE DE LA MINE

ArcelorMittal Mines Canada Inc.

TYPE D’ACTIVITÉ

Mount-Wright

Consolidated Thompson Iron Mines Ltd. Bloom Lake

EMPLACEMENT

SUBSTANCE

O, C

Fermont

O, C

Labrador City

Saint-Honore-de Chicoutimi Nb, Ta

IAMGOLD Corporation

Niobec

S, C

Xstrata Nickel Canada

Raglan

O, S, C

Inmet Mining Corporation

Troilus

O, C

Ressources Métanor inc.

Barry

Ressources Métanor inc.

Bachelor Lake

Desmaraisville

Au, Ag

Louvem Mines Inc./Mines Richmont inc.

Beaufor

Val-d’Or

Au, Ag

Corporation miniére Alexis

lac Herbin

Val-d’Or

Au, Ag

Xstrata Zinc Canada

Perserverance

Matagami

Zn, Cu, Au, Ag

S, C

Katinniq

Ni, Cu, Co, PGMs

Chibougamau

Au, Ag, Cu

Barry Twp.

Au, Ag

Mines Agnico-Eagle Ltée

Goldex

S, C

Val -d’Or

Au, Ag

Mines d’or Wesdome

Kiena

S, C

Val-d’Or

Au, Ag

North American Palladium

Sleeping Giant

S, C

North of Amos

Au, Ag

Mines Richmont inc.

Camflo

Malartic

Au, Ag

Mines Agnico-Eagle Ltée

Laronde and Laronde II

S,C

Cadillac

Zn, Cu, Au, Ag, Pb

IAMGOLD Corporation

Doyon

S, C

Cadillac

Au, Ag

Mines Agnico-Eagle Ltée

Lapa

Val-d’Or

IAMGOLD Corporation

Mouska

Cadillac

Au, Ag, Cu

Mines Aurizon Ltée

Casa Berardi

S,C

Berardi Twp.

Au, Ag

First Metals Inc.

Fabie Bay

O, S

Hébécourt

Cu, Zn, Au, Ag

The Canadian Salt Company Limited

Seleine

Îles-de-la Madeleine

Sel

QIT-Fer et Titane inc.

Tio

Hâvre Saint-Pierre

Ilménite

Le Groupe Berger Ltée.

Sainte-Modeste

Vermiculite, perlite

Elkem Metal Canada Inc.

Sitec inc.

Petit lac Malbaie

Silice, Carbure de silicium

9184-6808 Québec inc. (LAB Chrysotile)

Black Lake

O, U

Thetford Mines

Chrysotile

Graymont Inc.

Marbleton

O,U

Marbleton

Limestone, lime

Mine Jeffrey Inc.

Jeffrey

O,U

Asbestos

Chrysotile

Junex Inc.

Bécancour

Graymont Inc.

Bedford

O, U

Bedford

Calcaire, chaux

OMYA (Canada) Inc.

Saint-Armand

O, U

Saint-Armand

Carbonate de calcium

St. Lawrence Cement Inc.

Joliette

Calcaire

Graymont Inc.

Joliette

O, U

Joliette

Calcaire, chaux

Silco Sands Inc.

Saint-Clotilde

Beauharnois

Silice, ferrosilicon

La Compagnie Bon Sable Ltée

Ormstown

Silice

La Compagnie Bon Sable Ltée

Saint-Joseph-du-Lac

Silice

(exploitation par Bécancour dissolution),0

Sel

Unimin Canada Ltd.

Saint-Donat-de-Montcalm

O, U

Saint-Donat-de-Montcalm Silice

Unimin Canada Ltd.

Saint-Canut

O, U

Saint-Canut

Silice

Suzorite Mica Products

Letondal

Suzor Twp.

Mica

Timcal Canada Inc.

Saint-Aimé-duLac-des-Îles

Graphite

Temisca Inc.

Saint-Bruno-de-Guigues

O = Ciel ouvert

S = Souterraine

C = Concentrateur

O, U O

Saint-Bruno-de-Guigues Silice

U = Usine Information courtoisie de Mining Association of Canada

December 2010/January 2011 | 51

Révision de la Loi sur les mines En Commission parlementaire sur le projet de loi 79, les représentants de l’industrie et les entreprises minières ont réclamé une politique d’exploration minière efficace à long terme, un meilleur encadrement de la restauration des sites ainsi qu’une stratégie de la gestion des ressources qui soit sous la responsabilité de l’État. Après la tenue d’audiences publiques en mai et en août 2010, le débat sur ce projet de loi modifiant la Loi sur les mines se poursuit maintenant à l’Assemblée nationale et le secteur minier a clairement signifié son souhait de voir une réforme qui tiendra compte des nombreux défis confrontant l’industrie. Enjeux et défis pour l’industrie Au Québec, le recrutement et l’intégration de nouveau personnel sont au cœur des préoccupations des entreprises minières qui connaissent une période d’activité dynamique avec de nombreux projets en développement, le démarrage de nouvelles mines et l’augmentation du nombre des emplois. Une étude en cours par l’Institut de recherche Robert-Sauvé en santé et sécurité du travail (IRSST) vise à documenter les conditions d’une intégration sécuritaire et compétente des nouveaux travailleurs de cette industrie qui, depuis 20 ans, a diminué son taux de fréquence des accidents de 76 %. Un autre défi de l’industrie est le développement minéral associé aux communautés et intégré dans le

TOTAL DES DÉPENSES EN IMMOBILISATIONS POUR LE DÉVELOPPEMENT DES RESSOURCES MINÉRALES ESTIMATIONS PRÉLIMINAIRES POUR 2009 Exploration

201,157,841 $

Évaluation des gisements

228,568,172 $

Développement de complexes miniers

895,571,244 $

Dépenses totales

1,325,297,257 $ Information courtoisie de Mining Association of Canada

milieu, tel que proposé dans la nouvelle Stratégie minérale du gouvernement du Québec. La relance de travaux d’exploration pour l’uranium ainsi que le développement de projets de mines en milieu urbain soulèvent des préoccupations. L’industrie appuie les mesures législatives qui imposent aux entreprises de consulter lors de la mise en œuvre d’un projet minier. Les entreprises minières travaillent déjà en partenariat avec de nombreuses communautés et les gestionnaires miniers d’aujourd’hui sont très conscients de leurs responsabilités à cet égard. PAR ANDRÉ LAVOIE, DIRECTEUR COMMUNICATIONS ET AFFAIRES PUBLIQUES ASSOCIATION MINIÈRE DU QUÉBEC

ES 1 5 0 SOYEZ UNADNTS EXCLUSIFS À IP PARTIC

MONTRÉA

VANCOUVER2010 un véritable succès FACE À FACE : LE « SPEED DATING » D’AFFAIRES À NE PAS MANQUER MARDI, LE 24 MAI 2011

L 2 0 11

80 % des participants ont qualifié Face à Face d’excellente rencontre d’affaires 85 % des participants y ont développé de nouveaux contacts d’affaires

SUIVEZ CES LEADERS DE L’INDUSTRIE ET ÉLARGISSEZ VOTRE RÉSEAU D’AFFAIRES : « La première édition de Face à Face à Vancouver fut au delà de nos attentes. À Montréal, en 2011, nous les dépasserons. »

Jean Béliveau Directeur Général Mine Kittilä Mines Agnico-Eagle Limitée

« Le format de Face à Face est excellent et je crois que son futur est prometteur. Notre industrie va adopter Face à Face et nous, chez Endress+Hauser, supporterons cette initiative. »

Roland Quenneville Développement des affaires Endress+Hauser

www.cim.org/montreal2011/index_fr.cfm abellefeuille@cim.org

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

Photo courtesy of the Quebec Mining Association

Mineral industry a driving force in economic recovery

Agnico-Eagle’s flagship Laronde Mine, active since 1988, still has among the largest gold reserves operating in Canada.

he Quebec minerals industry provides more than 52,000 direct and indirect jobs, has an estimated payroll of nearly $2 billion (without counting suppliers), brings in nearly $8 billion in exports, contributes $7 billion to the province’s GDP, has an average annual net financial inflow (since 2000) of more than $280 million for the government of Quebec, and will undertake investment projects worth $4.5 billion before 2013. There are new development projects located in the Nord-du-Québec, Abitibi-Témiscamingue and Côte-Nord regions. With more than 30 active mines, this industry constitutes a major economic driving force. Production is centred primarily on iron, nickel, copper, precious metals such as gold and silver, and industrial minerals, including titanium, salt, graphite, niobium, silica and chrysotile. It also comprises more than 200 separate mining companies with exploration expenditures that were close to $349 million in 2009 and are expected to surpass $500 million in 2010. These expenditures break down into 57 per cent in Nord-du-Québec, 32 per cent in Abitibi-Témiscamingue and eight per cent in Côte-Nord. Gold remains the most sought-after substance. However, exploration for new substances, such as rare earths and high-tech metals, is on the rise.

Mining innovation Companies in the mining industry purchase from more than 3,800 suppliers of goods and services located all across Quebec, with 1,800 in Montreal and 250 in Quebec City. Many universities (notably INRS, McGill, Polytechnique, Laval, UQAC, UQAM and UQAT) are involved through programs or research chairs. In addition, there are at least six research consortiums, including CONSOREM, COREM, DIVEX and SOREDEM. In Quebec, the existence of an information and work-sharing system between businesses, universities and research centres represents a sustainable competitive advantage for the minerals industry.

Industry concerns over the budget The mining sector is extremely concerned about certain measures contained in the latest provincial budget. In Quebec, mineral rights paid by mining companies to the government will increase by $327 million to $570 million over five years. This represents a marked increase of 74 per cent in the mineral rights paid by companies. Overall, once mineral rights are taken into account, the mining sector will be contributing more than $1 billion to government revenues over the next five years. Review of the Mining Act At a parliamentary committee meeting on Bill 79, industry and mining company representatives asked for a mining PRELIMINARY ESTIMATE OF VALUE OF MINERAL PRODUCTION FOR 2009

QUEBEC Metallic minerals

$4,624,394,000

Non-metallic minerals

$1,592,677,000

Total

$6,217,071,000 Data courtesy of the Mining Association of Canada

December 2010/January 2011 | 53

PRODUCING MINES IN QUEBEC (2009) COMPANY

MINE SITE

ACTIVITY TYPE

LOCATION

COMMODITY

ArcelorMittal Mines Canada Inc.

Mount Wright

O, C

Fermont

Consolidated Thompson Iron Mines Ltd.

Bloom Lake

O, C

Labrador City

IAMGOLD Corporation

Niobec

U, C

Saint-Honore de Chicoutimi

Nb, Ta

Xstrata Nickel Canada

Raglan

O, U, C

Katinniq

Ni, Cu, Co, PGMs

Inmet Mining Corporation

Troilus

O, C

Chibougamau

Au, Ag, Cu

Metanor Resources Inc.

Barry

Barry Twp.

Au, Ag

Metanor Resources Inc.

Bachelor Lake

Desmaraisville

Au, Ag

Louvem Mines Inc./Richmont Mines Inc.

Beaufor

Val-d’Or

Au, Ag

Alexis Minerals Corporation

lac Herbin

Val-d’Or

Au, Ag

Xstrata Zinc Canada

Perserverance

U, C

Matagami

Zn, Cu, Au, Ag

Agnico-Eagle Mines Limited

Goldex

U, C

Val-d’Or

Au, Ag

Wesdome Gold Mines Ltd.

Kiena

U, C

Val-d’Or

Au, Ag

North American Palladium

Sleeping Giant

U, C

North of Amos

Au, Ag

Richmont Mines Inc.

Camflo

Malartic

Au, Ag

Agnico-Eagle Mines Limited

Laronde and Laronde II

U,C

Cadillac

Zn, Cu, Au, Ag, Pb

IAMGOLD Corporation

Doyon

U, C

Cadillac

Au, Ag

Agnico-Eagle Mines Limited

Lapa

Val-d’Or

IAMGOLD Corporation

Mouska

Cadillac

Au, Ag, Cu

Aurizon Mines Ltd.

Casa Berardi

U,C

Berardi Twp.

Au, Ag

First Metals Inc.

Fabie Bay

O, U

Hébécourt

Cu, Zn, Au, Ag

The Canadian Salt Company Limited

Seleine

Îles-de-la Madeleine

Salt

QIT-Fer et Titane Inc.

Tio

Hâvre Saint-Pierre

Ilmenite

Le Groupe Berger Ltée

Sainte-Modeste

Vermiculite, perlite

Elkem Metal Canada Inc.

Sitec inc.

Petit Lac Malbaie

Silica, silicon, carbide

9184-6808 Québec Inc. (LAB Chrysotile)

Black Lake

O, P

Thetford Mines

Chrysotile

Graymont Inc.

Marbleton

O, P

Marbleton

Limestone, lime

Jeffrey Mine Inc.

Jeffrey

O, P

Asbestos

Chrysotile

Junex Inc.

Bécancour

Salt

Graymont Inc.

Bedford

Limestone, lime

OMYA (Canada) Inc.

Saint-Armand

Calcium carbonate

St. Lawrence Cement Inc.

Joliette

Limestone

Graymont Inc.

Joliette

O, P

Joliette

Limestone, lime

Silco Sands Inc.

Saint-Clotilde

Beauharnois

Silica, ferrosilicon

La Compagnie Bon Sable Ltée

Ormstown

Silica

La Compagnie Bon Sable Ltée

Saint-Joseph-du-Lac

Silica

(solution mining), O O, P calcium carbonate

Unimin Canada Ltd.

Saint-Donat-de-Montcalm

O, P

Saint-Donat-de-Montcalm Silica

Unimin Canada Ltd.

Saint-Canut

O, P

Saint-Canut

Silica

Suzorite Mica Products

Letondal

Suzor Twp.

Mica

Timcal Canada Inc.

Saint-Aimé-duLac-des-Îles

Graphite

Temisca Inc.

Saint-Bruno-de-Guigues

O = Open pit

U = Underground

C = Concentrator

O, P O

Saint-Bruno-de-Guigues Silica

P = Plant Data courtesy of the Mining Association of Canada

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

exploration policy that is effective over the long term. They also demanded better management of site restoration and a strategy for managing resources that comes under the responsibility of the government. Public hearings were held in May and August 2010, and the debate on the bill to modify the Mining Act has now moved to the National Assembly. The mining sector has clearly signalled its wish to see reforms that take into consideration the numerous challenges faced by the industry.

TOTAL CAPITAL EXPENDITURES FOR MINERAL RESOURCE DEVELOPMENT- PRELIMINARY ESTIMATES FOR 2009 Exploration

$201,157,841

Deposit appraisal

$228,568,172

Mine complex development

$895,571,244

Total

$1,325,297,257 Data courtesy of the Mining Association of Canada

Issues and challenges for the industry In Quebec, the recruitment and integration of new personnel are central preoccupations for mining companies, which are experiencing a period of dynamic activity in the form of numerous projects under development, the opening of new mines and an increase in the number of jobs. A study being carried out by the l’Institut de recherche Robert-Sauvé en santé et sécurité du travail (IRSST) aims to document the conditions needed to safely and efficiently integrate new workers in an industry that has reduced its accident rate by 76 per cent over the past 20 years. Another challenge for the industry is to foster mineral development that works with communities and is

integrated within the region, as proposed in the Quebec government’s new Mineral Strategy. The revival of uranium exploration work and the development of mining projects in urban environments have raised concerns. The industry supports legislative measures that require companies to hold consultations when a mining project is being implemented. Mining companies already work in partnership with many communities, and mining managers today are very conscious of their responsibilities in this respect. TRANSLATED FROM THE ORIGINAL FRENCH AUTHORED BY ANDRÉ LAVOIE, DIRECTOR, COMMUNICATIONS AND PUBLIC AFFAIRS, QUEBEC MINING ASSOCIATION (QMA)

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December 2010/January 2011 | 55

Photo courtesy of KWG Resources

Exploration soars and mines reopen as metal prices recover

Drilling at the Ring of Fire in Northern Ontario

he exploration and mining industries continue to flourish in Ontario at all stages, from prospecting through to mine expansion, thanks to higher gold prices, new discoveries in the Ring of Fire area and Ontario’s rich geological potential. The province is well above historical levels of active claim units, and the Thunder Bay mining division leads Ontario. Over 300 companies are actively exploring more than 600 properties across the province. Most of the base metal mines are back to full production and most of the gold mines are expanding operations. Ontario has 27 metal mines, all located in northern Ontario. These include 12 gold mines, 14 base metal mines, one platinum group metals mine as well as a worldclass diamond mine located in Ontario’s Far North. There are 11 major industrial operations, six of which are located in southern Ontario. The total value of mineral production in Ontario in 2009 decreased to $6.3 billion from $9.6 billion in 2008. This decrease is attributable in part to reduced base metal production and lower base metal prices. The value of gold production increased in 2009, due to higher production and higher prices. The value of non-metallic minerals

declined from $2.6 to $2.5 billion in 2009, because of limited demand from the construction industry. Employment in mining and exploration in Ontario fell in 2009 but is now bouncing back as most gold mines are expanding and other metal mines have resumed production. The outlook for 2011 is more positive as the economy recovers and demand continues to grow. However, labour shortages may become a problem with the improved outlook in mining and exploration. Active claim units in Ontario for 2009 are approximately 340,000, well above historical levels. Numerous mineral discoveries of chromite, base metals and other minerals in the Ring of Fire area led to Ontario’s largest claim-staking rush ever. Revised exploration spending estimates show that Ontario should reach a new record level of $825 million in 2010. This is a sharp recovery from 2009 when exploration dipped to $536 million after reaching $799 million in 2008. Junior companies are responsible for about half of the exploration work, declining from 66 per cent in 2009. Gold remains the primary focus of exploration in the province because of Ontario’s rich history of gold mining, buoyant gold prices and the stream of new discoveries.

PRELIMINARY ESTIMATE OF VALUE OF MINERAL PRODUCTION FOR 2009

ONTARIO Metallic minerals

$3,789,984,000

Non-metallic minerals

$2,540,162,000

Total

$6,330,146,000 Data courtesy of the Mining Association of Canada

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

PRODUCING MINES IN ONTARIO (2009) COMPANY

MINE SITE

Kirland Lake Gold Inc. Apollo Gold Corporation Vale Xstrata Nickel Canada Vale Vale Vale Vale Vale FNX Mining Company Inc. Goldcorp Inc. Goldcorp Inc. Goldcorp Inc. Liberty Mines Inc. Vale Xstrata Nickel Canada Xstrata Nickel Canada Xstrata Nickel Canada FNX Mining Company Inc. FNX Mining Company Inc. Xstrata Copper Canada Xstrata Nickel Canada Richmont Mines Wesdome Gold Mines Ltd. Teck Resources Limited Teck Resources Limited Goldcorp Inc. Goldcorp Inc. OMYA (Canada) Inc. Lafarge Canada Inc. ESSROC Canada Inc. Sherritt International Corporation St. Lawrence Cement Inc. Unimin Canada Ltd. Regis Resources Inc. St. Mary’s CBM (Canada) Inc. Hutcheson Sand and Gravel Ltd. CGC Inc. E.C. King Contracting Ltd. Extender Minerals of Canada Limited St. Mary’s CBM (Canada) Inc. Great White Minerals Ltd. Unimin Canada Ltd. Sifto Canada Inc. Rio Tinto Group Agrium Inc. The Canadian Salt Company Limited The Canadian Salt Company Limited De Beers Canada Inc. O = Open pit

U = Underground

ACTIVITY TYPE

Macassa U, C Black Fox O, C Garson U Thayer-Lindsley U Stobie U Clarabelle C Copper Cliff North U Copper Cliff South U Creighton U Podolsky U Hoyle Pond U Pamour O Dome U, C Redstone U, C McCreedy East/Coleman U Fraser U Strathcona C Onaping/Craig U Levack U McCreedy West U Kidd Creek U, C Montcalm U Island Gold U Eagle River U, C David Bell U, C Williams U, O, C Musselwhite U, C Red Lake U, C Tatlock O Bath O Picton O Madoc (Henderson) O, U Ogden Point O Blue Mountain O, P Vermiculite O Bowmanville O Huntsville O Hagersville U Sydenham O North Williams U St. Mary’s O Fripp O Badgeley Island O Goderich U Penhorwood O Kapuskasing O Windsor Solution mining Ojibway U Victor O, P

C = Concentrator

LOCATION

Kirkland Lake Area Matheson Sudbury Sudbury Sudbury Sudbury Sudbury Sudbury Sudbury Norman Twp. South of Porcupine Timmins Timmins Southeast of Timmins Sudbury Sudbury Sudbury Sudbury Sudbury Sudbury Timmins Timmins Dubreuilville Wawa Marathon Marathon Thunder Bay Balmertown Tatlock Bath Picton Madoc Ogden Point Blue Mountain Cavendish Bowmanville Huntsville Hagersville Sydenham North Williams St. Mary’s Fripp Midland Goderich Penhorwood Kapuskasing Windsor Windsor James Bay Lowlands

COMMODITY Au, Ag Au, Ag Ni, Cu, Co, PGMs, Au, Ag, Se, Te Ni, Cu, Co, PGMs, Au, Ag, Se, Te Ni, Cu, Co, PGMs, Au, Ag, Se, Te Ni, Cu, Co, PGMs, Au, Ag, Se, Te Ni, Cu, Co, PGMs, Au, Ag, Se, Te Ni, Cu, Co, PGMs, Au, Ag, Se, Te Ni, Cu, Co, PGMs, Au, Ag, Se, Te Ni, Cu, PM Au, Ag Au, Ag Au Ni Ni, Cu, Co, PGms, Au, Ag, Se, Te Ni, Cu, Co, PGMs Ni, Cu, Co, PGMs, Au, Ag, Se, Te Ni, Cu, Co, PGMs, Au, Ag, Se, Te Cu, Ni, PM Ni, Cu, Co, PGMs, Au, Ag, Se, Te Cu, Zn, Ag, Se, Te, In, Cd Ni, Cu, Co, PGM Au Au Au Au Au, Ag Au, Ag Calcium carbonate Limestone Limestone (cement) Talc, dolomite Limestone (cement) Nepheline syenite Vermiculite Limestone Silica Gypsum Dolomitic lime Barite Limestone (cement) Silica Silica Salt Talc Phosphate Salt Salt Diamonds

P = Plant Data courtesy of the Mining Association of Canada

Exploration spending on precious metals climbed from $389 million to $620 million in 2010, while spending on base metals only increased from $80 million to $115 million. The most exciting exploration play in Ontario is the Ring of Fire, where the initial exploration for diamonds in 2002 led to numerous discoveries, including base metals and chromite. Cliffs Natural Resources is the key player in the area after acquiring Freewest Resources and Spider Resources this year to control much of the chromite resource. The acquisition now assures control of the primary deposit, Black Thor, which has an estimated chromite resource of 74 million tonnes using 40% Cr2O3. Other key players include Noront Resources, KWG Resources and Probe Mines. Mine logistics are being examined, including engineering services for the construction of a rail line to the Ring of Fire area. The total size of the base metal deposit was estimated earlier this year at 11.2 million tonnes grading 2% nickel and 1% copper (Measured, Indicated and Inferred) and new drilling continues to expand the resource.

Advanced exploration projects Gold is the key driver behind advanced exploration projects across Northern Ontario, from Red Lake to Kirkland Lake. In the west, Rubicon Minerals’ Phoenix gold project is progressing rapidly as the company continues extensive underground development work, such as excavating a drift to establish drill stations for underground delineation work. Near Kirkland Lake, Northgate Minerals has begun construction on its main process building at the Young-Davidson gold mine project after receiving acceptance of their closure plan. The mine is expected to produce about 180,000 ounces annually for 15 years when it goes into production in 2012. Other advanced gold projects that are expanding reserves and moving into mine potential include Rainy River’s Rainy River gold project in the Kenora district, Detour Gold’s Detour Lake project north of Timmins, Claude Resources’ Madsen gold project in the Red Lake area, PC Gold’s Pickle Crow gold project in the Uchi Gold Belt 400 kilometres north of Thunder Bay and Kodiak Exploration’s Hercules gold project in the BeardmoreGeraldton area. Mine development Existing gold mines continue with ambitious expansion plans to increase production by developing new deposits. At the Red Lake gold mine, Goldcorp hopes to increase production significantly as new ore bodies such as the Bruce Channel Discovery are developed and brought into production. Production could reach one million ounces of gold over the next few years. At the Musselwhite gold mine, Goldcorp has identified the PQ Deeps and the Lynx gold zones, which will help them sustain gold production. Lake Shore Gold is putting their Timmins gold project into production this year, which will be processed at the 58 | CIM Magazine | Vol. 5, No. 8

TOTAL CAPITAL EXPENDITURES FOR MINERAL RESOURCE DEVELOPMENT- PRELIMINARY ESTIMATES FOR 2009 Exploration

$338,469,179

Deposit appraisal

$131,896,039

Mine complex development

$895,295,401

Total

$1,365,660,619 Data courtesy of the Mining Association of Canada

refurbished Bell Creek mill where the company also intends to process ore from production from their other properties in the area. Xstrata Nickel opened the Nickel Rim South Mine in early 2010. This $1 billion project is expected to produce 18,000 tonnes of nickel from annual production of 1.25 million tonnes of ore. Xstrata has also reopened the Fraser Mine in the Sudbury area. Vale has resumed production at its five Sudbury area mines after a lengthy labour dispute. Vale is still conducting extensive exploration in the Sudbury area and construction work is underway on the Totten Mine project. Xstrata Copper closed their Kidd Creek metallurgical plant in Timmins earlier this year but will continue to operate the mine. Outside of Thunder Bay, North American Palladium has resumed production at its Lac des Iles PGM mine and began producing from the Offset Zone at the Lac des Iles palladium mine. This production should more than double their output by 2014. This is one of only two palladium mines in the world and Canada’s only primary platinum group metals producer.

Regulatory development The modernization of Ontario’s Mining Act includes a graduated regulatory approach for exploration, Aboriginal consultation throughout the mining sequence, reducing the impact of mineral exploration on the environment, introducing map staking and modernizing the way companies stake and explore their claims, including consultation with private land owners and Aboriginal communities. These initiatives will help Aboriginal communities realize their economic and social aspirations and provide industry with certainty of rules and clarity and timeliness of process that industry needs to make investment decisions. The bill has received Royal Assent and regulations are being developed. The Ontario Geological Survey branch of the Ministry of Northern Development, Mines and Forestry provides extensive information on Ontario’s geology and its worldclass mineral resources. Geological data is available at GeologyOntario, a comprehensive website that provides electronic access to geoscientific data, including maps, publications and assessment reports. http://www.mndm.gov.on.ca/mines/geologyontario/default_e.asp BY BROCK GREENWELL, ONTARIO MINISTRY OF NORTHERN DEVELOPMENT, MINES AND FORESTRY

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Past producers among current projects

Photo courtesy of Manitoba Geological Survey

drilled borehole targets on their Reed Lake volcanogenic massive sulphide (VMS) property and began initial fieldwork in preparation for a winter drill program at their Tower VMS property. Crowflight Minerals Inc. temporarily suspended production at their Bucko Lake nickel project in October to allow operational changes. Crowflight has successfully increased the Proven and Probable reserves of contained nickel at Bucko Lake 22 per cent from the figures in the 2007 feasibility study. Victory Nickel Inc. is advancing the Minago nickel project towards development with the initiation of the permitting process. Recent drilling identified high-grade zones within the open pit shell that were originally thought to be waste. Prophecy Resources Corp. initiated a 3,000-metre drill program at the Lynn Lake nickel project to test five recently identified induced polarization (IP) anomalies. Mustang Minerals Corp. continues work on the ongoing feasibility study of the Maskwa deposit near Lac du Bonnet and exploration work at the nearby Mayville property.

Drill core from Gossan Resources Inwood magnesium project

anitoba’s mining industry has experienced a modest recovery from the global economic downturn that occurred in the latter half of 2008 and in 2009. Exploration and deposit appraisal expenditures totalled $97.8 million in 2009, down from the 2008 peak of $152 million, and are projected to drop slightly in 2010 to $85.9 million. This drop, however, does not reflect the considerable exploration and development successes in Manitoba’s minerals sector in 2010.

Base metals Base-metal exploration and development highlights in 2010 reflect optimism, resulting from exploration success, and sadness, generated by the closure of HudBay Minerals Inc.’s Flin Flon copper smelter and the recently announced closure of Vale’s nickel smelter and refinery in 2015. HudBay Minerals is proceeding with the 777 North expansion project, which will provide additional feed to its Flin Flon concentrator and zinc plant and additional exploration opportunities. The company will also construct a 3,500-tonne-per-day underground mine and upgrades to their Snow Lake concentrator. The project is projected to cost $560 million, with initial production commencing in late 2012 and full production in 2014. HudBay is advancing two exploration projects with joint-venture partners at Reed Lake and Lost Lake that the company anticipates will proceed to the feasibility study stage. Rockcliff Resources Inc. continued the evaluation of the Rail deposit, southwest of Snow Lake. The company also 60 | CIM Magazine | Vol. 5, No. 8

Precious metals Precious metal exploration and development in Manitoba continues to focus on the re-evaluation of past-producing gold mines. Alexis Minerals Corporation acquired Garson Gold Corp. in a friendly takeover in late 2009 and completed a feasibility study for the reopening of the Snow Lake Mine (formerly the New Britannia Mine). Alexis plans to begin pre-production development in January. St. Eugene Mining Corporation Ltd. completed the acquisition of the Tartan Lake gold mine northeast of Flin Flon. The company is upgrading the Tartan Lake historic PRELIMINARY ESTIMATE OF VALUE OF MINERAL PRODUCTION FOR 2009

MANITOBA Metallic minerals Non-metallic minerals Total

$1,176,771,000 $143,733,000 $1,320,504,000 Data courtesy of the Mining Association of Canada

gold resources base to a NI 43-101-compliant resource in advance of mine de-watering, and the initiation of an underground exploration and test mining program. Auriga Gold Corp. is acquiring the past-producing Puffy Lake gold mine and adjacent Nokomis gold property south of Sherridon from Pioneer Metals ULC. The mine produced 28,000 ounces of gold in 1988 and 1989. Carlisle Goldfields Limited plans to restart exploration activity at the MacLellan gold mine in Lynn Lake. The mine produced 144,000 ounces of gold between 1986 and 1989. Bison Gold Resources Inc. continued to explore the past-producing Ogama Mine on their central Manitoba property southeast of Bissett. The mining operation produced 45,440 ounces of gold from 1948 to1951. San Gold reported record production levels in 2010. The improved performance is the result of increased production levels from the high-grade, ramp-accessible Hinge Mine. An aggressive, multi-year exploration program has delineated a number of high-grade, near-surface gold zones within easy Hinge Zone ramp access. Copper Reef Mining Corporationâ&#x20AC;&#x2122;s 21-hole drill program at its Gold Rock property confirmed down-dip mineralization continuity of the Gold Rock vein and successfully delineated additional structures parallel to the vein. Wildcat Exploration Ltd. is aggressively exploring their expanding portfolio of Rice Lake gold projects. The company also announced the acquisition of the South Thompson nickel property, located approximately 55 kilometres south of Thompson in the Thompson Nickel Belt.

Specialty and industrial minerals Under an agreement made last year, Goldsource Mines Inc. provided Westcore Energy Ltd. with specific drill sites having a high probability of intersecting significant intervals

TOTAL CAPITAL EXPENDITURES FOR MINERAL RESOURCE DEVELOPMENT- PRELIMINARY ESTIMATES FOR 2009 Exploration

$53,069,631

Deposit appraisal

$30,706,558

Mine complex development

$180,124,762

Total

$263,900,951 Data courtesy of the Mining Association of Canada

of coal; three of these targets successfully returned very thick intercepts of coal during the 2009-2010 winter drilling program. The coal ranked from Lignite A to Subbituminous C. In May 2009, Gossan Resources Limited confirmed that the Zuliani (high-efficiency magnesium) process produces magnesium metal, under atmospheric conditions, at exceptionally high raw material efficiencies. Larger scale testing was to begin this year. The company also drill-outlined two zones of high-purity silica sand near Manigotagan. A series of proppant tests indicated the sand exceeds all of the minimum oil and gas industry frac sand standards. Tantalum Mining Corporation of Canada Limited (TANCO) is currently mining pollucite, which contains cesium, to produce cesium formate, a drilling fluid for the petroleum industry. Staff levels have increased back to 67 employees, and could increase by another 30, following layoffs in 2009. Resumption of spodumene production is also contemplated. BY CHRIS BEAUMONT-SMITH, MINERALS POLICY AND BUSINESS, AND JIM BAMBURAK, MANITOBA GEOLOGICAL SURVEY, MANITOBA INNOVATION, ENERGY AND MINES

PRODUCING MINES IN MANITOBA (2009) COMPANY

MINE SITE

Tantalum Mining Corporation of Canada Limited

Bernic Lake

San Gold Corporation

Hinge

San Gold Corporation

Rice Lake

Vale

Thompson

Vale

Birchtree

Crowflight Minerals Inc. HudBay Minerals

ACTIVITY TYPE

COMMODITY

Lac-du-Bonnet

Ta, Li, Cs, Rb

Bissett

U, C

Thompson

Ni, Cu, Co, PGMs

Thompson

Ni, Cu, Co, PGMs

Bucko Lake

U, C

Wabowden

Ni, Cu, Co, PGMs

Chisel North

U, C

Snow Lake

Cu, Zn

HudBay Minerals

Callinan/777

Flin Flon

Cu, Zn, Au, Ag

HudBay Minerals

Trout Lake

Flin Flon

Cu, Zn, Au, Ag

Graymont Inc.

Faulkner

O, P

Faulkner

Limestone, lime

Certain Teed Gypsum Canada Inc.

Amaranth

Harcus

Gypsum

Lehigh Cement Company

Mafeking

Limestone

O = Open pit

U = Underground

C = Concentrator

U, C

LOCATION

P = Plant Data courtesy of the Mining Association of Canada

December 2010/January 2011 | 61

Province strengthens its position on potash and uranium province’s mining industry. To that end, the province continues to review and improve its regulatory processes. The government is currently reviewing its uranium royalty system to ensure that Saskatchewan remains among the world’s largest uranium producers and is competitive in attracting new exploration and development. Photo courtesy of Enterprise Saskatchewan

Mineral exploration continues There are currently a number of exploration projects underway in Saskatchewan, from the early grassroots stages to advanced development. Some examples of advanced-stage projects include: the Hoidas Lake rare earth elements project; the Star-Orion South kimberlite project; the La Ronge gold Miner uses remote controller to run scoop tram at McArthur River, the world’s largest high-grade uranium project; as well as the Cigar Lake, Mildeposit mine. lennium and Midwest uranium projects. n 2010, expenditures on mineral exploration in As of August 31, 2010, the amount of land under disSaskatchewan are expected to be approximately $355 position for mineral exploration, pursuant to The Mineral million, the bulk of which will be targeted for potash, ura- Disposition Regulations, 1986, totalled 5.7 million nium and coal projects, with lesser diamond, gold, base hectares. There were also 4.3 million hectares of land metal, platinum group and rare earth elements exploration. under disposition for potash exploration and development, This represents a significant increase from the almost pursuant to The Subsurface Mineral Regulations, 1960, $277 million spent in 2009, and would be the second- with an additional 4.1 million hectares disposed under The highest annual exploration expenditure total in provincial Coal Disposition Regulations, 1988. history, behind the 2008 record of $474 million. Exploration activity levels in the province have been on a Mapping out new deposits continual upward trend with an estimated $1.88 billion in Another key aspect to growing the mining sector is the expenditures since 2004, compared to the collective Saskatchewan Geological Survey’s geoscience program. $674.5 million spent in the 20 years prior to 2004. The survey is undertaking leading-edge geoscience research to better understand Saskatchewan’s mineral Saskatchewan affirms commitment to mining potential, thereby helping to reduce exploration risks. The In 2009, Saskatchewan remained a global leader in province is also continuing to develop high-quality, easily potash and uranium production, traditionally accounting for accessible online geological databases so potential 30 per cent of global potash production and 20 per cent investors can do a lot of their research remotely, regardless of global primary uranium production. An unprecedented of where they are located. drop in potash sales volumes resulted in a fall in total value of provincial mineral sales to $4.6 billion, down from the PRELIMINARY ESTIMATE OF VALUE OF record $8.6 billion sold in 2008. A strong rebound in MINERAL PRODUCTION FOR 2009 potash sales volumes in the first-half of the year provide a SASKATCHEWAN clear indication that 2010 provincial mineral sales values Metallic Minerals $1,441,199,000 will once again be among the highest in Canada. Saskatchewan is the third largest coal-producing Non-Metallic x province and in 2009 had 46,800 ounces of gold producCoal x tion. The province also had production of sodium sulphate, silica sand, bentonite, kaolin, aggregate and salt. Total $5,010,467,000 The Government of Saskatchewan is firmly committed to Data courtesy of the Mining Association of Canada sustaining and enhancing the competitiveness of the x = confidential

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

These initiatives have proven to be particularly useful to junior mining companies, which are often less resistant to exploration risks. One example of this type of work is a program that has been undertaken for the past few years, in partnership with Natural Resources Canada, to provide modern airborne magnetic and radiometric data for the Athabasca Basin. The Athabasca Basin is home to the largest high-grade uranium deposits in the world and has been the main focus of uranium exploration in the province. The data, when combined with data from other research projects on the Athabasca Basin, have proven to be a valuable exploration tool for junior and senior exploration companies alike. The government also continues to develop new tools, such as the Mineral Administration and Registry System (MARS), which will allow clients to obtain mineral rights online. This tool will help level the playing field for all exploration companies by removing the costs and hardships of manual staking.

TOTAL CAPITAL EXPENDITURES FOR MINERAL RESOURCE DEVELOPMENT- PRELIMINARY ESTIMATES FOR 2009 Exploration

$153,112,877

Deposit appraisal

$147,600,282

Mine complex development

$2,243,048,000

Total

$2,543,761,159 Data courtesy of the Mining Association of Canada

The provincial Government of Saskatchewan remains dedicated to its mandate of responsible and sustainable development of its mineral resources and continues to strive to provide the minerals industry with the tools and regulations to help achieve these ends. SUBMITTED BY THE SASKATCHEWAN MINISTRY OF ENERGY AND RESOURCES

PRODUCING MINES IN SASKATCHEWAN (2009) COMPANY

MINE SITE

ACTIVITY TYPE

LOCATION

COMMODITY

Claude Resources Inc.

Seabee

U, C

Saskatoon

Au, Ag

Cameco Corporation

Rabbit Lake

U, C

Rabbit Lake

AREVA Resources Canada Inc.

McClean Lake

O, C

Wollaston Lake

Cameco Corporation

McArthur River

North of Key Lake

Cameco Corporation

Key Lake

North of Highrock Lake

Potash Corporation of Saskatchewan Inc.

Rocanville

Potash

The Mosiac Company

K-1 and K-2

U, P

Esterhazy

Potash, salt

Winn Bay Sand Limited Partnership

Hanson lake

O, P

Hanson Lake

Silica

Big Quill Resources Inc.

Wynyard

Potassium sulphate

Canadian Clay Products Inc.

Wilcox

Clays, bentonite

The Mosiac Company

Belle Plaine

Belle-Plaine

Potash, salt

Potash Corporation of Saskatchewan Inc.

Lanigan

Potash

Zeox Corporation

Palo

O, P

Whiteshore Lake

Sodium sulphate

The Mosiac Company

Colonsay

U, P

Colonsay

Potash, salt

Potash Corporation of Saskatchewan Inc.

Allan

U, P

Allan

Potash

Potash Corporation of Saskatchewan Inc.

Patience

Blucher

Potash

Saskatchewan Minerals

Chaplin Lake

Sodium sulphate

Potash Corporation of Saskatchewan Inc.

Cory

Saskatoon

Potash

Agrium Inc.

Vanscoy

Potash, salt

Sifto Canada

Unity

Salt

Prairie Mines & Royalty Limited

Bienfait

Coal

Prairie Mines & Royalty Limited

Boundary Dam

Estevan

Coal

Prairie Mines & Royalty Limited

Poplar River

Coronach

Coal

O = Open pit

U = Underground

C = Concentrator

O, U, P P U, P U

U O, P

Solution Mining

P = Plant Data courtesy of the Mining Association of Canada

December 2010/January 2011 | 63

An array of mineral exploration projects dot landscape

Photo courtesy of Alberta Geological Survey

Mine in August 2009 increased Albertaâ&#x20AC;&#x2122;s coal production to 12 producing mines. Coalspur Mines Ltd. is currently developing the Vista Coal project, a large-scale, thermal coal project near Hinton in west-central Alberta. Several companies, including Swan Hills Synfuels and Laurus Energy Inc., are investigating opportunities to convert coals normally considered too deep for conventional mining in the Swan Hills area of west-central Alberta into gas by in situ coal gasification.

Metalliferous black shale, potential source of base and precious metals

s of October 2010, Alberta had active mineral permits for metallic and industrial minerals on about nine million hectares of land. Based on corporate websites and news releases, mineral exploration companies searched for a diverse suite of commodities in Alberta, including diamonds, uranium, polymetallic black shale, iron, placer gold, Ti-bearing minerals, magnetite and lithium. Industrial mineral production included aggregate, sulphur, peat, salt and silica.

Coal As of July 2010, there were about 1,170 coal leases covering 940,000 hectares. Coal production remains strong in Alberta with 12 mines having produced some 38 million tonnes during 2009. Production in 2009 was dominated by sub-bituminous coal (~25.1 million tonnes), followed by bituminous metallurgical coal (~4.3 million tonnes) and bituminous thermal coal (~9.1 million tonnes). The re-opening of Coal Valleyâ&#x20AC;&#x2122;s Obed 64 | CIM Magazine | Vol. 5, No. 8

Rare metals Several companies have expressed interest in lithium from formation waters in the Swan Hills area in west-central Alberta. The interest is due to mid1990s government reports showing that lithium concentrations of up to 140 mg/L in formation waters are associated with carbonate build-ups of the Leduc Formation in the Woodbend Group and the Swan Hills Formation of the Beaverhill Lake Group. During 2009, at least two exploration companies, including Channel Resources Ltd. and First Lithium Resources Inc., verified the lithium potential of the Swan Hills formation waters when they reported compositions of up to 112 mg/L lithium from brine-sampling programs of producing wells in the area. In addition to lithium, these companies also reported elevated boron (223 mg/L) and potassium (5,870 mg/L), and therefore the potential for a multi-element separation plant. Channel Resources has extracted a sample of approximately 2,000 litres of brine to test recovery methods and plans to generate resource estimates for lithium, potassium and other elements at its Fox Creek property.

Uranium The western portion of the Athabasca Basin, which is underexplored but analogous to the highly mineralized unconformity style Eagle Point-Cigar Lake-McArthur RiverPRELIMINARY ESTIMATE OF VALUE OF MINERAL PRODUCTION FOR 2009

ALBERTA Metallic Minerals Non-metallic minerals

$1,969,000 $951,860,000

Coal

$1,061,690,000

Total

$2,015,519,000 Data courtesy of the Mining Association of Canada

PRODUCING MINES IN ALBERTA (2009) COMPANY

The Canadian Salt Company Limited Hammerstone Corporation Suncor Energy Inc. Rio Petro Ltd. Hammerstone Corporation Hammerstone Corporation Canexus Chemicals Canada Ltd. Ward Chemicals Tiger Calcium Services Graymont Inc. Graymont Inc. Lafarge Canada Burnco Rock Products Prairie Creek Quarries Ltd. Graymont Inc. Lehigh Cement Company Prairie Mines & Royalty Limited Prairie Mines & Royalty Limited Alberta Power (2000) Ltd. Dodds Coal Mining Company Prairie Mines & Royalty Limited Keephills Aggregate Company Ltd. Prairie Mines & Royalty Limited Prairie Mines & Royalty Limited Coal Valley Resources Inc. Teck Coal Coal Valley Resources Inc. Grande Cache Coal Corporation Suncor Energy Inc. Syncrude Canada Ltd. Syncrude Canada Ltd. Shell Canada Energy O = Open pit

U = Underground

MINE SITE

ACTIVITY TYPE

Lindbergh Steepbank Fort McMurray West Sunnybrook Muskeg River Aurora Redwater Calling Lake Mitsue Summit Exshaw Exshaw Clearwater Cougar Ridge Fish Creek Mcleod Sheerness Paintearth Vesta Dodds Coals Genesee Burtonsville Highvale Whitewood Coal Valley Cardinal River Obed Mountain Grande Cache Millenium Mildred Lake Aurora North Muskeg River

Solution mining O O Solution mining O O Solution mining Solution mining Solution mining O, P O, P O, P O, P O, P O, P O O O O O O O O O O O O O, U O O O O

C = Concentrator

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LOCATION

COMMODITY

Elk Point North of Fort McMurray Fort McMurray Cessford North of Fort McMurray Fort McMurray Bruderheim North of Athabasca Slave Lake Coleman Exshaw Exshaw Clearwater River Rocky Mountain House Nordegg Cadomin Hanna Forestburg Cordel Dodds Warburg Burtonsville Seba Beach Warburg Edson Hinton North of Hinton Grande Cache Fort Mackay Fort Mackay Fort Mackay Fort Mackay

Salt Limestone Limestone Salt Limestone Limestone Salt Salt Salt Limestone, salt Limestone, Lime Limestone Limestone Limestone Limestone Limestone Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Coal Ugraded crude oil Ugraded crude oil Ugraded crude oil Ugraded crude oil

P = Plant

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December 2010/January 2011 | 65

TOTAL CAPITAL EXPENDITURES FOR MINERAL RESOURCE DEVELOPMENT- PRELIMINARY ESTIMATES FOR 2009 Exploration

$5,020,863

Deposit appraisal

$6,420,000

Mine complex development

$194,891,306

Total

$206,332,169 Data courtesy of the Mining Association of Canada

Key Lake uranium belt, continues to attract exploration interest. Some of the companies actively exploring in the area since 2007 include Fission Energy Corp. (North Shore property), CanAlaska Uranium Ltd. (Alberta project on the western arm of Lake Athabasca) and Brazilian Gold Corporation (Rea project). In addition to interest in the Athabasca Basin, several companies, including Fission Energy Corp., Ultra Energy Ltd. and North American Gem Ltd., are investigating roll front-type uranium mineralization in other parts of Alberta, including the Caribou Mountains in northern Alberta and various portions of southern Alberta.

Titanium Titanium Corporation Inc. and Sustainable Development Technology Canada announced the successful completion of the first phase of its oil sands tailings pilot demonstration project in October 2010. Titanium Corporation hopes

to develop technology to recover heavy minerals, hydrocarbons and water from oil sands tailings in the Fort McMurray area of northeastern Alberta. The next phase of the project will include a pilot plant to evaluate froth treatment tailings from three oil sands operating sites.

Polymetallic black shale During September 2010, DNI Metals Inc. expanded its property interest of polymetallic black shale in the Athabasca area of northeastern Alberta and implemented Stage 2 leaching tests based on the favourable results reported from the Stage 1 work. The recoveries demonstrate that metals can be readily extracted from black shale via bioleaching and that recoveries are high enough to compel expansion of the test work. Diamonds In March 2010, Canterra Minerals Corporation completed a 54 drill hole program comprising 8,328 metres to test five high-interest kimberlite bodies in the Buffalo Head Hills kimberlite field in north-central Alberta. The work, which was completed as part of a joint venture agreement with Shore Gold Inc. and EnCana Corporation, is expected to lead to the development of three-dimensional models for the K5, K6, K14, K91 and K252 kimberlites. Diamond results are pending. In late 2009, Shear Minerals Ltd. commenced drilling at the Liege diamond project, located about 80 kilometres east of the Buffalo Head Hills kimberlite field. Shear tested three initial priority targets based on pipe-like features identified from seismic, high-resolution airborne and ground geophysical surveying completed between 2006 and 2008. The results of the drilling have not been disclosed. Industrial minerals In June 2010, Athabasca Minerals Inc. received its second straight honour of being the top aggregate producer in Canada, as published in Aggregates and Roadbuilding magazine. With industrial mineral land holdings in the Fort McMurray and Peace River areas of northern Alberta, Athabasca Minerals delivered some 6.6 million tonnes of aggregate. The company is also pursuing other industrial mineral commodities, including silica sand, limestone, gypsum and salt. BY D. ROY ECCLES, ENERGY RESOURCES CONSERVATION BOARD, ALBERTA GEOLOGICAL SURVEY, AND GARY V. WHITE, ALBERTA DEPARTMENT OF ENERGY, COAL AND MINERAL DEVELOPMENT

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

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Mine expansions and developments continue The outlook for British Columbia is one of opportunity, with continuing mine construction at the New Afton and Copper Mountain projects. Now under the ownership of Thompson Creek Metals Company Inc., construction has started at the Mt. Milligan deposit, which is expected to begin production in 2013. Teck Coal Limited is undertaking a feasibility study to assess reopening the Quintette Mine. A total of 23 mining projects are in the provincial environmental assessment process and several are also in the federal process, for example, Compliance Energy Corporation’s Raven coal project on Vancouver Island.

Mineral exploration deepens Exploration spending is expected to rebound substantially from 2009 levels. An Teck’s proposed second phase expansion at Line Creek is currently in the environmental assessment process. early projection suggests $220 to $300 million for 2010. There has been a clear multi-year ritish Columbia entered 2010 with eight major trend towards deep exploration at copper-gold porphyry metal mines and nine major coal mines in operation. deposits that started with New Afton. Imperial Metals carried During the year, Roca Mines Inc. received a permit out a large exploration program on the Red Chris project tarto increase production at the MAX molybdenum mine to geting high-grade copper and gold mineralization below the 1,000 tonnes per day. Western Coal Corp. re-started oper- proposed open pit. Thompson Creek Metals is similarly ations at the Willow Creek coal mine, while Barkerville Gold exploring below the known reserves at the Mt. Milligan copMines Ltd. resumed mining activity at the QR gold mine. per-gold mine project. Northgate Minerals Corporation is Expansion is underway at a number of mines, including defining the higher grade core of the Kemess North copperEndako and Gibraltar. All four mines in the northeastern gold porphyry deposit and considering the potential for an coal fields are making capital investments to expand pro- underground project. duction. With continuing production and strong commodity The Sulphurets gold-copper district was very active as prices, gross mining revenue in 2010 is anticipated to Silver Standard Resources drilled their Brucejack and exceed 2009 levels. Snowfield projects and Seabridge Gold continued to

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advance the KSM project. Gold Fields Horsefly Corporation conducted a large drill program at the Woodjam South and Woodjam North properties, targeting copper-goldmolybdenum porphyry mineralization.

Projects targeting gold were numerous in 2010, including Blackwater-Davidson of Richfield Ventures Corp., where a major drill program followed up a 2009 breakthrough identifying a bulk tonnage target. Amarc

PRODUCING MINES IN BRITISH COLUMBIA (2009) COMPANY

MINE SITE

ACTIVITY TYPE

LOCATION

COMMODITY

Forty Two Metals inc. (Roca Mine Inc.)

Max

U, C

Trout Lake

Craigmont Mines Ltd.

Craigmont

O, C

Merritt

Teck Resources Limited

Highland Valley

O, C

Logan Lake

Cu, Mo

Imperial Metals Corporation

Mount Polley

O, C

Northeast of Williams Lake

Au, Cu

Cross Lake Minerals

Southeast of Quesnel

Taseko Mines Limited

Gibraltar

O, C

Northeast of Williams Lake

Cu, Mo

Thompson Creek Mining Limited

Endako

O, C

Fraser Lake

Northgate Minerlas Corporation

Kemess

O, C

Smithers

Au, Cu

Imperial Metals Corporation

Huckleberry

O, C

Houston

Cu, Mo, Au

Georgia -Pacific Canada Inc.

Canal Flats

Gypsum

Baymag Inc.

Mount Brussilof

Magnesite (fused), magnesia (products)

O, U, C

Certain Teed Gypsum Canada Inc.

Elkhorn

Windermere

Gypsum

Imasco Minerals

Crawford Bay

Dolomite, limestone

Heemskirk Canada Limited

Moberly

Golden

Silica

Mighty White Dolomite Ltd.

Rock Creek

O, P

Rock Creek

Dolomite

Imasco Minerals

Lost Creek

Lafarge Canada Inc.

Harper Ranch

Absorbent Products Ltd.

Lost Creek

Limestone

O, P

Kamloops

Limestone

Bud

Princeton

Calcium, clay

Industrial Minerals Processors

Z-2

Cache Creek

Zeolite

Graymont Inc.

Pavilion Lake

O, P

Pavilion Lake

Limestone, lime

Lightweight Advanced Volcanic Aggregates Inc.

Mount Meager

Mont Meager

Pumice

Imperial Limestone Co. Ltd

Imperial Limestone

Texada Island

Limestone

Texada Quarrying Ltd . (Lafarge Canada Inc.)

Gillies Bay

Texada Island

Limestone

Ash Grove Cement Company

Blubber Bay

Texada Island

Limestone

Fireside Minerals Ltd.

Fireside

Barite

Imasco Minerals

Benson Lake

Limestone

Teck Resources Limited

Coal Mountain

Sparwood

Coal

Teck Resources Limited

Line Creek

Sparwood

Coal

Teck Resources Limited

Elkview

Sparwood

Coal

Teck Resources Limited

Greenhills

Sparwood

Coal

Teck Resources Limited

Fording River

Elkford

Coal

Northern Energy and Mining Inc.

Trend

Tumbler Ridge

Coal

Western Canadian Coal Corporation

Wolverine

O, U

Tumbler Ridge

Coal (metallurgical)

Western Canadian Coal Corporation

Brule

Tumbler Ridge

Coal

Hillsborough Resource Limited

Quinsam

Campbell River

Coal

Absorbent Products Ltd.

Red Lake

Diatomite, Bentonite, leonardite

O = Open pit

U = Underground

C = Concentrator

P = Plant Data courtesy of the Mining Association of Canada

December 2010/January 2011 | 69

PRELIMINARY ESTIMATE OF VALUE OF MINERAL PRODUCTION FOR 2009

BRITISH COLUMBIA Metallic minerals Non-metallic minerals

TOTAL CAPITAL EXPENDITURES FOR MINERAL RESOURCE DEVELOPMENT- PRELIMINARY ESTIMATES FOR 2009 Exploration

$1,828,375,000 $588,682,000

Coal

$3,316,510,000

Total

$5,733,567,000

Deposit appraisal

$103,837,625 $94,185,332

Mine complex development

$582,354,444

Total

$780,377,401 Data courtesy of the Mining Association of Canada

Data courtesy of the Mining Association of Canada

Resources Ltd. conducted a large grassroots exploration program following identification of a bulk tonnage gold target at the Newton property in 2009. Drilling of targets at Newton is also planned. Among smaller exploration programs, Sona Resources Corp advanced its Elizabeth gold-vein project in an effort to provide start-up mill feed at its idle Blackdome Mine, and Almaden Minerals Ltd. progressed towards a second era of mining at its Elk epithermal gold-vein project. High coal prices continued to spur exploration. Two of the larger coal exploration projects in 2010 were Canadian Dehua International’s Murray River project and Centermount Coal ’s Bingay Creek project.

Asian investment grows Investment in the mining industry, particularly by Asian companies, continues to expand, for example, Anthill Resources’ acquisition of a 15 per cent interest in Yellowhead Mining Inc. (owner of the Harper Creek copper-gold-silver project), a $15.5 million investment by Tianjin Huakan Group in Merit Mining Corp., Centermount Coal’s acquisition of the Bingay Creek metallurgical coal property, and the Huiyong Group’s $25 million investment in Canadian Dehua International’s Murray River project. Silvercorp Metals Inc. acquired the Silvertip silver-lead-zinc project with the intention of putting it into production. In addition, Itochu Corporation and Mitsui Mining and Smelting agreed to option an interest in the Ruddock Creek zinc-lead project, and KGHM Polska Miedz S.A. and Abacus Mining & Exploration Corp. announced a joint venture to advance the Afton-Ajax copper-gold project. Geoscience plays integral role The provincial government in British Columbia recognizes the importance of exploration in maintaining a strong mining industry by supporting two public geoscience agencies — the British Columbia Geological Survey, operating within government, and Geoscience BC, an industry-led, non-government organization. Policy initiatives, such as the British Columbia Mining Flow-through Share Tax Credit that has been extended to December 2013, are also designed to help stimulate exploration activity. British Columbia has streamlined government processes for critical natural resource industries to better attract global investment and is moving forward with establishing a “one project, one process” model. Starting in 2010, the province will consider sharing new mineral tax revenue with First Nations when there are mining projects or mine expansions. The first two agreements are with the Stk’emlupsemc of the Secwepemc Nation, related to the New Afton Mine development, and another with the McLeod Lake Indian Band for the Mt. Milligan project. BY DAVE GRIEVE, BRUCE MADU, BRUCE NORTHCOTE, PAUL WOJDAK AND JIM LEWIS, BC MINISTRY OF ENERGY, MINES AND PETROLEUM RESOURCES

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

Photo courtesy of Government of Yukon

Gold prices freshen exploration activity The similarity of the stratigraphy of the Cambrian to Devonian rocks of the Selwyn Basin to the Great Basin of Nevada has long been recognized; however, the discovery at Osiris is the first occurrence in the region that highlights the “Carlin” potential of the basin. This discovery in the Selwyn Basin stratigraphy increases the gold potential of a vast area of eastern Yukon. Another new discovery in rocks of the Selwyn Basin that is generating excitement is the Northern Tiger Resources’ 3-Ace highgrade gold vein property in southeast Yukon.

In development There are many other projects in Yukon that could see development decisions in the next few years. Western Copper Corporation is appealing the decision of the Yukon Water Board to deny their application for a water license for the Carmacks Copper deposit. The company has been granted the Quartz Mining License for the project. North American Tungsten Corporation has completed a positive feasibility study and submitted their project proposal for the MacTung tungsten deposit to the Yukon Environment and Socio-economic Assessment Board. Other Yukon projects that are completing feasibility studies include Victoria Gold at the Dublin Gulch project, which contains the 2.7 million ounce Eagle Zone gold deposit. Victoria Gold is installing a $5 million

Capstone Resource Corporation’s Minto copper mine continues to make new discoveries that expand the resources at the mine site.

ith gold prices climbing steadily in 2010, exploration for gold in Yukon hit levels not seen in decades. Relentless claim staking kept mining recorders’ offices busy throughout the year. Over 35,000 new hard rock claims were staked in Yukon during the first nine months of 2010, and staking continues. Gold was, by far, the most sought-after commodity at 60 per cent of total exploration expenditures, which are expected to exceed $150 million.

Exploration Two new gold districts have emerged in Yukon over the past three years: the White Gold District in the Dawson Range of West Yukon and the Selwyn Basin Gold District, which is anchored by the Rau property (over 1,300 square kilometres) in the stratigraphy of the Selwyn Basin in eastcentral Yukon. The White Gold District has continued to experience a staking rush subsequent to the discovery of the Golden Saddle deposit that is now owned by Kinross Gold. Over 20 companies have acquired significant land holdings in the district. At the Rau property (ATAC Resources), the newly discovered Osiris Zone bears many of the characteristics of Carlin-style gold occurrences, a deposit style that has been sought not only in Yukon but worldwide. 72 | CIM Magazine | Vol. 5, No. 8

PRELIMINARY ESTIMATE OF VALUE OF MINERAL PRODUCTION FOR 2009

YUKON Metallic minerals Non-metallic minerals Total

$245,017,000 $5,943,000 $250,960,000 Data courtesy of the Mining Association of Canada

PRODUCING MINES IN YUKON (2009) COMPANY

MINE SITE

Capstone Mining Corporation O = Open pit

U = Underground

Minto C = Concentrator

ACTIVITY TYPE

O, C

LOCATION

Carmacks

COMMODITY

Cu, Au

P = Plant

all-weather 200-person camp at the site during the winter of 2010. Base metal exploration is still a significant contributor to Yukon. A $100 million investment was made in 2010 by Yunnan Chihong Zinc and Germanium Co. Ltd. to form a 50/50 joint venture corporation with Selwyn Resource Ltd. to advance development of the company’s Selwyn zinclead project located in eastern Yukon. The investment will fund completion of feasibility studies on the deposit. The Andrew zinc-lead deposit of Overland Resources, an Australian-based exploration company, is also undergoing feasibility studies in 2010.

Operations Mine development expenditures in Yukon are estimated at $150 million for 2010. Alexco Resource Corp. has completed the preproduction development of the underground mine at the Bellekeno (silver-lead-zinc) deposit and begun commissioning its 400-tonne-per-day conventional flotation concentrator mill. Yukon Zinc’s Wolverine Mine (zinc-silver-gold-lead-copper) has had its production startup date pushed back to March 2011. Mine development expenditures for mill expansions continue at the Capstone Resource Corporation’s Minto copper mine as the company continues to make new discoveries that expand the resources at the mine site.

Nations and Yukoners, to meet the current and future needs of the mining and resource sectors. The modern-day gold rush does not appear to be slowing down, which should lead to another excellent year for Yukon’s exploration industry. The general rise in commodity prices has led to the opening of new mines in Yukon and the re-opening of past producing deposits. The pipeline of projects entering the permitting process in Yukon or conducting feasibility studies ensures that there could be several more decisions on new mines in the next few years. BY MIKE BURKE, MINERAL SERVICES DIVISION, YUKON GEOLOGICAL SURVEY, GOVERNMENT OF YUKON

Focused on growth With six percent of Canada’s land mass and a population of only 34,000 people, Yukon faces obvious challenges in the supply of labour to the expanding mining industry and exploration. The Yukon Mine Training Association was formed, with the central goal of training and development of a skilled workforce made up of First TOTAL CAPITAL EXPENDITURES FOR MINERAL RESOURCE DEVELOPMENT- PRELIMINARY ESTIMATES FOR 2009 Exploration

$64,586,114

Deposit appraisal

$11,873,305

Mine complex development

$49,000,000

Total

$125,459,419 Data courtesy of the Mining Association of Canada

December 2010/January 2011 | 73

Diamonds sparkle under northern lights

Photo courtesy of Diavik Diamond Mines

Located 220 kilometres northeast of Yellowknife, Snap Lake is Canada’s first completely underground diamond mine and was De Beers’ first mine outside of Africa. De Beers Canada is also involved in a joint venture with Mountain Province Diamonds Inc. in the Gahcho Kué project. This would be the territory’s fourth producing diamond mine and is currently under environmental impact review. The Gahcho Kué project has a total indicated resource of approximately 23.6 million carats. The Northwest Territories’ diamond industry was not immune to the effects of the Surrounded by the waters of Lac de Gras, the Diavik Diamond Mine consists of two open pits. In 2012, the open pits will recent global economic crisis, be complete and Diavik will be an all underground mine. as production numbers for all three producing mines were down in 2009 compared to 2008. The outlook for diamond iamonds are currently the lynchpin of the mining mining remains positive, though, as improved economic industry in the Northwest Territories. It is the largest conditions led to the cancellation of planned winter shutproducer of diamonds in the Americas, and the third downs at both the Diavik and Snap Lake mines. largest producer by volume on the planet. The Northwest Territories’ mining potential does not end with diamonds. Exciting opportunities exist within the terri- More than diamonds tory in gold, lead, zinc, copper, tungsten, silver, platinum and The fourth producing mine in the Northwest Territories is rare earth elements. Lightly explored, and with its potential North American Tungsten Corporation’s Cantung Mine, which largely untapped, the NWT is a treasure trove for the min- has been producing tungsten since 1962. The mine shuting industry. down in September 2009. However, in September 2010, the The Northwest Territories currently has three commer- company announced that it was reopening the mine and cially producing diamond mines, and a fourth mine is expanding its reserves. The mine, located just east of the undergoing an environmental review. BHP Billiton Canada NWT-Yukon border, has mined approximately 100,000 Inc.’s EKATI Diamond Mine started the diamond boom and tonnes of tungsten per quarter for the last two years. has been in production since 1998. It was Canada’s first diamond mine; production in 2009 was approximately 3.2 million carats. PRELIMINARY ESTIMATE OF VALUE OF MINERAL PRODUCTION FOR 2009 The territory’s second diamond mine, Diavik, has been in NORTHWEST TERRITORIES production since 2003. It is located near the EKATI site, 300 kilometres northeast of Yellowknife, and has produced Metallic minerals $50,100,000 over 50 million carats of diamonds since it opened. The mine’s production for 2009 totalled approximately 3.3 milNon-metallic minerals $1,459,528,000 lion carats. Total $1,509,628,000 De Beers Canada’s Snap Lake Mine is the NWT’s third Data courtesy of the Mining Association of Canada diamond mine and has been in production since 2008.

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

PRODUCING MINES IN THE NORTHWEST TERRITORIES (2009) COMPANY

MINE SITE

North American Tungsten Corporation

CanTung

Diavik Diamond Mines Inc.

Diavik

BHP Billiton Diamonds Inc.

EKATI

De Beers Canada Inc.

Snap Lake

O = Open pit

U = Underground

C = Concentrator

ACTIVITY TYPE

U, C

LOCATION

COMMODITY

Cantung

O, U, P

Lac de Gras

Diamonds

O, U, P

Lac de Gras

Diamonds

Snap Lake

Diamonds

U, P

P = Plant

TOTAL CAPITAL EXPENDITURES FOR MINERAL RESOURCE DEVELOPMENT- PRELIMINARY ESTIMATES FOR 2009 Exploration

$18,151,057

Deposit appraisal

$20,863,021

Mine complex development

$464,156,268

Total

$503,170,346 Data courtesy of the Mining Association of Canada

Traditionally, gold mining has been of the utmost importance to the territory, and recent exploration suggests that the mineral is ready to make its return to prominence. Tyhee Development Corporation’s Yellowknife gold project is currently undergoing an environmental assessment. Located 90 kilometres north of Yellowknife, it has an estimated 1.2 million ounces of gold resources. As well, Fortune Minerals’ NICO project is currently moving through the permitting process. The project is located 160 kilometres north of Yellowknife and contains 21.8 million tonnes of Proven and Probable gold, cobalt and bismuth reserves suitable for a 15-year mine life. Another project that has great potential is Seabridge Gold’s Courageous Lake project, located 240 kilometres northeast of Yellowknife. With 4.2 million Measured and Indicated reserves of gold, the project represents one of the largest undeveloped gold reserves in Canada. Seabridge spent $20 million this past year advancing the project. The Northwest Territories is also poised to benefit from the global green revolution, as Avalon Rare Metals’ Nechalacho project is a promising rare earth elements discovery. These materials are used in many projects integral to “green” technologies, including wind turbines and hybrid cars, which are in great demand. The Nechalacho project, located 100 kilometres southeast of Yellowknife, has an estimated nine million tonnes of Inferred Resources, with a potential resource base of 14.8 million tonnes of Indicated Mineral Resources and an estimated 175.5 million tonnes of Inferred mineral resources. The proposed mine could have a life of 15 years or more. Avalon is currently working on a prefeasibility study and hopes to have the mine producing by 2013.

Government assistance One example of Government of the Northwest Territories (GNWT) support to industry is its partnership with the federal government to gather new geosciences data. It is estimated that every $1 million of government investment in the geosciences knowledge base stimulates $5 million in private-sector expansion. Another mining initiative is the Northern Mining Workforce Memorandum of Understanding initiative. Signed in 2008, its partners include the GNWT’s departments of Industry, Tourism and Investment, Education Culture and Employment, and three diamond mines. Its goal is to develop the skills of Northwest Territories workers and to attract and retain the workforce. BY DARREN CAMPBELL, PUBLIC AFFAIRS AND COMMUNICATIONS, GOVERNMENT OF THE NORTHWEST TERRITORIES

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December 2010/January 2011 | 75

New mine a milestone for young territory Nunavut’s mineral potential is diverse, as reflected by the variety of commodities being sought and the distribution of projects across the territory’s three regions: Kitikmeot, Kivalliq and Qikiqtaaluk. More than 23 million hectares of mineral tenure on Crown land is being explored for precious metals, diamonds, uranium, base metals, iron, REE and Ni-Cu-PGM. Approximately 5.4 million hectares of mineral tenure has been acquired in the past 18 months.

Photo courtesy of Diamonds North

Gold exploration dominates landscape Exploration for precious metals, most significantly gold, represents more than 50 per cent of 2010 expenditures. Agnico-Eagle Mines Ltd. (AEM) leads in this area. The company began commercial production in March at the Meadowbank gold mine, located north of Baker Lake (Kivalliq), and increased its Nunavut presence later in the year with its acquisition of Comaplex Minerals Corporation in July 2010. This has given the company 100 per cent control of the Meliadine property, northwest of Rankin Inlet (Kivalliq), which hosts six known deposits that boast Measured and Indicated resources of 3.3 million ounces of gold, with an additional 1.7 million ounces Inferred. AEM has announced a two-and-a-half-year program to improve the resource estimate and refine the existing mine plan through a 200,000metre drill program and underground exploration to commence in 2011.

Bulk sampling of Beluga 3 kimberlite using an RC drill at Amaruk property

he forecast for 2011 is one of continued interest and activity by the mining and exploration industry in Nunavut. According to NRCan’s expenditure surveys, industry has invested an estimated $2.13 billion (actual dollars) in Nunavut since 1999. With the advancement of several projects through the regulatory process and new discoveries, the territory is gearing up for a period of increased growth and development. The rise in commodity prices and stability in financial markets sparked a significant resurgence in exploration activity across the territory over 2009 levels. Exploration and deposit appraisal expenditures of $280.6 million are anticipated for 2010 (based on NRCan industry surveys), an increase of 49 per cent from 2009.

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

PRELIMINARY ESTIMATE OF VALUE OF MINERAL PRODUCTION FOR 2009

NUNAVUT Metallic minerals

Non-metallic minerals

Total

$0 Data courtesy of the Mining Association of Canada

PRODUCING MINES IN NUNAVUT (2009) COMPANY

MINE SITE

ACTIVITY TYPE

LOCATION

COMMODITY

NOTE: THERE WERE NO MINES IN 2009 IN NUNAVUT. FOR 2010, NUNVAUT HAS ONE MINE IN OPERATION — AGNICO-EAGLE’S MEADOWBANK GOLD MINE

Hope Bay Mining Ltd. (a subsidiary of Newmont Mining Corporation) has continued work in the 80-kilometre length of the Hope Bay greenstone belt in the Kitikmeot region. Newmont is proposing phased development of the known gold deposits that could lead to more than 10 years of gold production from the Hope Bay belt. To date, exploration efforts have identified four gold deposits with overall potential for more than nine million ounces of gold within the greenstone belt. Underground development began in late 2010. Sabina Gold & Silver Corporation continued work on its Hackett River project (silver-rich base metal) and Back River project (gold) in the western Kitikmeot region. The 2010 program at Hackett discovered high-value mineralization proximal to the East Cleaver and Main deposits, and extended the Boot deposit. Within the Back River property, Sabina focused on the Goose Lake claim block. Two new gold discoveries were made within five kilometres of the Goose Lake deposit. An updated resource figure is being prepared for this deposit incorporating new drill results; pending results of the resource calculation, a scoping study is planned to commence early in 2011. Other advancing gold exploration projects include North Country Gold Corp.’s Committee Bay project, Diamonds North Resources Inc. (Amaruk Gold, Halkett Inlet) and Commander Resources’ Baffin Island gold project. MMG Resources Inc. (MMG) will conduct a prefeasibility study on the deposit at Izok Lake (Kitikmeot). MMG also signed a letter of intent with Diamonds North Resources Inc. (Diamonds North) to conduct exploration on the Amaruk nickel project. The most advanced uranium exploration project, AREVA Resources Canada Limited’s Kiggavik project, is undergoing an environmental assessment as part of the regulatory process to bring the project into production. Other active uranium exploration projects include Cameco Corporation’s Thelon Basin claims, Kivalliq Energy Corporation’s Lac Cinquante project and Forum Uranium Corporation’s North Thelon project.

New kimberlite discoveries Peregrine Diamonds Ltd. discovered 36 new kimberlites on the Hall Peninsula (southern Baffin Island, Qikiqtaaluk

region): 34 on the Chidliak property and two on its adjacent Qilaq property, bringing the total known kimberlites in the region to 52. Other diamond exploration programs continued in the Kivalliq and Kitikmeot regions. Peregrine and Indicator Minerals Inc. completed sampling and drilling programs on the Nanuq and Nanuq North properties, respectively. Shear Minerals Ltd. purchased the Jericho diamond mine and other related assets of Tahera Diamond Corp. and Benachee Resources Inc. Shear plans to increase the historical resource base and complete a new economic assessment of Jericho in late 2011. In addition, Shear and partner Rio Tinto discovered a new kimberlite on the Chesterfield property. Diamonds North is awaiting results from the processing of a 25-tonne bulk sample of the Beluga-3 kimberlite located on the company’s 100 per cent-owned Amaruk property.

TOTAL CAPITAL EXPENDITURES FOR MINERAL RESOURCE DEVELOPMENT- PRELIMINARY ESTIMATES FOR 2009 Exploration

$99,429,230

Deposit appraisal

$95,460,039

Mine complex development

$227,687,764

Total

$422,577,033 Data courtesy of the Mining Association of Canada

Exploration continued at Baffinland Iron Mines Corporation’s Mary River iron ore project on northern Baffin Island. Four more deposits were discovered in 2010, bringing the property total to nine. In September 2010, the company received an unsolicited takeover bid from Nunavut Iron Ore Acquisitions Ltd. In November, a support agreement was formed with ArcelorMittal S.A. to submit a solicited takeover bid for the company, which has the unanimous support of the Baffinland board of directors. Advanced Explorations Inc. is also exploring for iron on its Roche Bay and Tuktu properties, located on the Melville Peninsula. BY KAREN D. COSTELLO AND MATT SENKOW, INDIAN AND NORTHERN AFFAIRS CANADA, IQALUIT, NUNAVUT WWW.AINC-INAC.GC.CA/NUNAVUT

December 2010/January 2011 | 77

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A VALUED INDUSTRY RESOURCE 2010 READER SURVEY HIGHLIGHTS

hat do readers want to see more of… less of? How are we improving over time to satisfy those demands? What can we do better? Every editor strives to answer those questions each time he or she faces the blank slate of a brand new issue. Determining the editorial lineup for the following year takes place over many months and involves a variety of factors. Primary among them is the feedback we receive from our readers — be it face to face or via emails, telephone calls and even the occasional hand-written letter. However, the most comprehensive mechanism we have for gauging reader satisfaction is through a survey, conducted every two years.

The changing face of industry The 2010 CIM Magazine Reader Survey revealed a few surprising changes, namely in terms of demographics. The number of female readers rose by five per cent since 2008. Continuous efforts to appeal to a wider, more varied audience have also resulted in an increase of eight per cent in readers under 25 years of age and five per cent for those 25 to 34.

New and improved content The editorial content is the lifeblood of a magazine. Over the past couple of years, CIM Magazine has undertaken a number of changes and enhancements geared towards increasing the quality of the publication and its content, including: O Increasing the number, variety and caliber of sources O Incorporating more analytical and technical information O Securing contributors in key geographical areas for first-hand reporting O Developing a more structured template O Adding a new Upfront Section Based on an increase in reader satisfaction, we are confident that we are heading in the right direction.

How much of an issue do you read on average?

More than half

2008

2010

CHANGE

52%

67%

+15%

CIM provides info that is relevant to my profession

Agree/ Strongly agree

2008

2010

CHANGE

59%

72%

+13%

2008

2010

CHANGE

74%

82%

+8%

CIM provides valuable information

Agree/ Strongly agree

One survey respondent commented that “CIM is my best insight not only into the technological side of the industry, but also into the historical and social aspects.” Another noted that “The French technical articles in CIM Magazine have helped me familiarize myself with French mining technical terms. I do not have exposure to these at university.” There have also been significant increases in terms of topics of interest, the biggest being a whopping 45 per cent jump in the number of people who read the Features Section.

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Topics of interest 2008

2010

% (+/–)

Features

38%

83%

+45

Student Life

12%

24%

+12

Engineering Exchange

22%

34%

+12

Canadians Abroad

21%

27%

Mining Lore

43%

47%

Safety

24%

28%

Readers find CIM Magazine content a valuable resource

82% AGREE THAT CIM MAGAZINE PROVIDES THEM WITH VALUABLE INFORMATION

Other survey highlights The most popular editorial topics are: 83% 73% 70% 52% 49% 47% 47% 44% 38% 35%

Features Technical Section Technology News History Section Innovation Mining Lore New Frontiers Voices from Industry Eye on Business

72% Check out the 2011 Editorial Calendar now available online

www.cim.org 68% RETAIN MAGAZINES FOR FUTURE REFERENCE

Our readers are in the prime of their careers: 90% 70% 65% 56% 48%

have a university or post-graduate degree are managers (one in four being a senior-level executive) are between the ages of 25 and 59 earn more than $100,000 a year are between the ages of 35 and 59

67% READ MORE THAN HALF OF EVERY ISSUE

Core area of operation of respondents: 17% 17% 17% 9% 7% 7% 4%

FIND CONTENT IS RELEVANT TO THEIR PROFESSION

Consulting Engineering Mining Company Exploration Manufacturing or Distribution Research & Development Mining Services

63% REFER BACK TO AN ISSUE OF CIM MAGAZINE 1-5 TIMES PER YEAR

Congratulations to this year’s survey winners! 1st PRIZE

A full CIM Conference & Exhibition 2011 attendance package (approx. value $1,000) Pat Dwyer, CALGARY, ALBERTA

2nd PRIZE

A Kindle Randy Blaskovich, TRAIL, BRITISH COLUMBIA

3rd PRIZE

An iPod nano

62%

Fergus Kerr, SUDBURY, ONTARIO

OF READERS VISIT A WEBSITE AS A RESULT OF READING CIM MAGAZINE

supply side | COLUMNS

Marketers to mining need to know their clients’ challenges Jon Baird Marketers should always seek to margins by reducing the cost of fines, cater to the needs of their clients. Thus, insurance, stoppages and litigation. mining suppliers designing marketing Improving performance and opertools such as brochures, web sites or ational effectiveness (67 per cent): other communications materials need The importance of this issue is not to know how their clients view the surprising, since it is critical for the challenges facing their companies in viability and well-being of a mining order to propose optimum solutions. corporation, particularly in periods of Early in 2010, Mincom (www.minlow commodity prices. While technicom.com) published the findings of a cal solutions already exist to make study designed to gauge the percepimprovements in efficiency, the study tions of key stakeholders in the mining proposes that real progress may be industry. The study polled top-level hampered by “lack of visibility into executives in over 100 leading North the overall process” and that inteAmerican mining companies asking grated IT systems are necessary “to what were the most pressing chaldeliver unified information across lenges facing their enterprises. multiple facilities.” The executives were given seven Managing capital projects (46 per challenges and asked to identify their cent): Large-scale capital projects are top three. The challenges offered an important part of the mining induswere: ensuring workplace safety; try. Management of these needs to be improving performance and opera- supported by integrated systems that tional effectiveness; managing capital enable complete visibility and streamprojects; recruiting and retaining a lined management. skilled workforce; addressing enviRecruiting and retaining a skilled ronmental concerns; mergers and workforce (38 per cent): This issue has acquisitions; and risk associated with an impact on the whole mining industry exploration programs. as older, skilled workers retire and Following are the top challenges as younger workers with the necessary seen by the mining company executives. training are increasingly difficult to find. Ensuring workplace safety: Some Automation and design of products and 71 per cent of respondents identified technologies that are easier to use are ensuring workplace safety as one of seen to be approaches to this challenge. their top challenges. Two areas of parAddressing environmental conticular importance to safety are reliable cerns (37 per cent): In the last few assets and high-quality work practices. years, the mining industry has become Reliability of machinery is critical more and more aware of the need to because of mining’s remote, often dangain a social license to operate. This gerous, work situations and the potenentails each company setting a high tially catastrophic nature of equipment failures. Author Jon Baird, As for work practices, managing director of high-quality work is typiCAMESE and the cally safe work. Thus, immediate past president empowered workers not of PDAC, is interested in only safeguard themselves; collective approaches to they prolong the life of enhancing the Canadian expensive assets, boost probrand in the world of ductivity and protect mining.

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

standard of corporate social responsibility not only to the natural environment, but also to communities that are key stakeholders. Mergers and acquisitions (16 per cent) and risk associated with exploration (12 per cent) were rated in importance far behind the above challenges, although even these needs could provide good markets for suppliers. CIM

Marketing events in 2011 CAMESE has organized an average of 10 Canada Pavilions at international mining events over the last 15 years. Some of the benefits of participating at exhibitions along with other Canadian mining suppliers under the CAMESE umbrella include: • Prime locations and the Canadian identity to increase traffic in our pavilions. • Complete assistance to exhibitors on logistics related to the trade show. • Fully equipped booths of various sizes at competitive prices. • Depending on the show, customdesigned decoration, common areas for meetings and other amenities. • Supervised poster displays combining literature distribution and sales lead generation. • Inclusion in Canadian events ancillary to the shows, such as commercial briefings, technical visits and business networking receptions. International events planned for 2011 are: Mining World Russia; Arminera Argentina; Exponor Chile; AIMEX Australia; Extemin Peru; Exposibram Brazil; Mining Indonesia; China Coal & Mining and Expominera Mexico. For more information on these exhibitions as well as CAMESE’s annual Mining Procurement Forum planned for Markham, Ontario, on November 22 and 23, 2011 visit: www.camese.org. December 2010/January 2011 | 81

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| MAC economic commentary

Corporate social responsibility and Bill C-300 — a post-mortem Paul Stothart Bill C-300, the proposed Corporate Accountability of Mining, Oil and Gas Corporations in Developing Countries Act, was defeated in a House of Commons vote on October 27, 2010, by 140 votes to 134. While this ends the life of Bill C-300, which was originally tabled by Liberal MP John McKay in February 2009, this will not spell the end of private members bills (PMBs) on the general issue of corporate accountability. There are several factors that support a likelihood of future bills on related themes over the coming years. First, the notion of advancing social and environmental responsibility in Canada and abroad carries the same controversy as supporting apple pie. Politicians, companies, the general public and NGOs are on the same page in this respect and there is no apparent political downside for private members to propose or support legislation toward this end. This was a core reality with respect to Bill C-300,

as numerous parliamentarians stated to MAC that they were not willing to be seen as “voting against social progress,” especially on legislation that in their view would not make it

“

First, the notion of advancing social and environmental responsibility in Canada and abroad carries the same controversy as supporting apple pie.

through the Senate side of the legislative process in any event. They could therefore please their political constituents, while remaining confident that the flawed legislation would not actually become law. Second, PMBs do not generally have to withstand the same degree of

mac facts

• The direct, indirect and induced effects of mining account for 12% of Saskatchewan’ GDP. • At the end of 2008, there were 71 metal mines in Canada. Quebec has the largest number with 24, followed by Ontario with 16 and British Columbia with 12. • Canadian mineral production was valued at $45.3 billion in 2008, of which $9.7 billion as generated in Saskatchewan and $9.6 billion in Ontario. • The Saskatchewan share of Canadian mineral production has grown since 1998 due to the increased market price of uranium and potash. • Ontario, Quebec and British Columbia were the top three jurisdictions for gold production in 2009. 82 | CIM Magazine | Vol. 5, No. 8

scrutiny that faces government legislation. As well, by definition, PMBs do not represent a party’s policy, although they can still collect wide political support across opposition members. Where government legislation is drafted by legislative experts, passed through a legal scrubbing and vetted through federal financial gatekeepers, a comparable level of responsibility is not placed upon PMBs. This became a significant consideration on Bill C-300, which by any serious assessment was felt to be unconstitutional and out-of-order for (illegally) placing significant new financial obligations upon the government. Given this low hurdle, the Bill’s disregard for the notion of fairness and due process were not obstacles for Mackay in his design and lobbying efforts. Third, the political climate in Ottawa, of minority government, combined with the fact that PMBs are largely within the purview of parliamentarians as individuals also serves to enhance the attractiveness of this tool. Individual members can use PMBs to carve out niches for themselves and to build a constituency in popular fields, without being subject to political oversight. The combination of these three factors means that PMBs are a relatively easy way to score political points and to engender support from social and church groups, among others, without having to withstand legal, constitutional or financial scrutiny. A further consideration that was critical to the formulation of Bill C-300 was the fact that the federal government took a full two years to respond to a complex set of recommendations in a unanimous report from industry and NGOs on international corporate social responsibility. Given the lengthy delay before

MAC economic commentary | COLUMNS the government tabled its strategy, it is not surprising that a number of private bills from opposition parliamentarians, including C-300, were tabled to fill a policy vacuum and spur a government response. Looking ahead, it is evident that the mining industry will have to continue to improve in its commitment to social responsibility and, above all, in its communication of core messages. The industry will continue to face opposition from environmental and social groups, and from church organizations. These communities themselves are influential — many have broad onthe-ground communications networks and well-coordinated multinational fundraising channels combined with a mastery of social media. Their ownership of the “social responsibility” label serves to further heighten the communications challenge facing the extractive sector. Toward this end, even if the mining industry was pre-disposed to allocate millions of advertising dollars, it is unlikely that a glossy public marketing campaign would be effective in conveying its core messages. Rather, a lower profile and multi-faceted approach is called for at this time, including: • Companies should continuously work to maximize their social, environmental and economic benefits, while minimizing the social and environmental impacts of mining. • Companies should continue to highlight their investments in helping pay for schools, roads, hospitals, clinics, community halls, and child health and nutrition programs in developing countries. Along with the core economic benefits (jobs, taxes, exports) that it brings to developing countries, the industry should highlight these social aspects to parliamentarians, journalists and academics. • Related to the above point, companies, along

with MAC and PDAC, must become more adept at using social media channels to provide facts and convey their perspective. • The industry should highlight its critical role as a key ingredient in the emerging clean energy economy. New technologies in wind, solar, geothermal, hybrid engines, batteries and lightweight materials require metals and minerals. Highlighting this argument serves as a consistency check, as NGOs seeking clean-energy technologies should also support global mineral development. • The industry should remain engaged in dialogue regarding the national CSR Counsellor office, the OECD guidelines (and national contact point) for multinational enterprises, the evolving UN human rights work of John Ruggie, the Centre for Excellence in Corporate Social Responsibility, and the International Finance Corporation’s social performance standards and complaints mechanism. • Finally, the industry should be open to re-examining recommendations that emerged from the 2007 CSR advisory process — should key stakeholders within government and NGOs view this as a desired path forward. Taken in isolation, these measures will not prevent the emergence of future private members bills on social, environmental and developing country themes. However, taken in combination, and if sustained over time, they will help ensure that the industry is able to convey an accurate and fair message to Canadian decision-makers. CIM

Author Paul Stothart is vicepresident, 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.

A busy year ahead MAC’s plans for 2011 include: Working with governments and NGOs to support development of new air pollutant policies. • Supporting technology and innovation activities in tailings management, mineral exploration and processing efficiency. • Collaborating with governments and NGOs on water, acid rock drainage and tailings management policy issues. • Working to advance Canada’s competitiveness in tax, project review, infrastructure, geological mapping and related areas. • Working to enhance industry capabilities in more diversified and modernized communications channels • Supporting industry’s social license through measuring progress against mandatory Towards Sustainable Mining protocols and indicators. • Providing input to India trade negotiations, China investment discussions and other international trade and investment initiatives.

December 2010/January 2011 | 83

COLUMNS

| eye on business

Changes in Canada and U.S. legislative landscape Affect on Canadian mining companies in 2011 and beyond Virginia Schweitzer Recent changes, and proposed changes, in legislation in Canada and the United States will affect the business, operations and disclosure requirements of Canadian mining companies in the upcoming year and beyond. This article provides a brief summary of some of these current or proposed legislative changes.

NI 43-101: proposed changes for 2011 On April 23, 2010, the Canadian Securities Administrators (CSA) published for comment proposed changes to National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101). The proposed changes were developed in consultation with the mining industry and are expected to streamline and clarify required disclosure. They include: • Permitting an issuer to have a Qualified Person (QP) who approved the disclosure of the scientific and technical information, as an alternative to naming the QP who per-

•

formed or supervised the preparation of the information. Expanding the definition of “preliminary economic assessment” to include an economic analysis of the potential viability of a mineral resource at any stage of the project that includes, or is based on, Inferred Mineral Resources or a permitted estimate. Eliminating the requirement upon becoming a reporting issuer to file updated certificates and consents of a QP when relying on a previously filed technical report, provided the report is current and it meets the applicable independence requirements. An exemption from the filing of a technical report for an issuer that holds only a royalty interest in a property in certain circumstances where information regarding the property is already publicly available. Changes to the definition of “historical estimates” to permit disclo-

sures of estimates prepared by third parties regardless of when prepared, subject to certain conditions. • An extension in the filing deadline of a technical report from 45 days to six months for first-time disclosure, if the prior owner of the property has previously filed a technical report and it remains current. • Revisions to the technical report requirements to make the form more suitable for advanced-stage and producing properties. • An expansion of the acceptance of certain foreign regulatory authorities, foreign standards regarding the classification of reserves and resources and professional qualifications. The CSA is also considering eliminating the current requirement to file a technical report concurrently with the filing of a short form prospectus. The period for comments on the proposed amendments closed on July 23, 2010 and it is expected that the amendments to NI 43-101 will be finalized and become effective in 2011.

CSA Staff Notice 41-305: IPO share structure issues On September 24, 2010, the CSA released a Staff Notice describing certain factors that are considered by Canadian regulators when assessing a proposed share structure in an initial public offering (IPO) and whether the proposed structure would be contrary to public interest resulting in the refusal of a receipt. Among the concerns is the issuance of a large number of shares for nominal cash consideration to founders, particularly when the business has a limited history of operations and the IPO financing is relatively small. This is a common profile of junior mining companies that are considering an IPO. The regulators believe this could lead to future 84 | CIM Magazine | Vol. 5, No. 8

eye on business | COLUMNS market manipulation and excessive dilution of invested capital at the time of the IPO. Several factors will be considered by the regulators including the share price, the number of shares outstanding and the involvement of the founders to ensure that the capital from the IPO purchasers is not significantly disproportionate to their equity interest.

Dodd-Frank Wall Street Reform and Consumer Protection Act – United States New disclosure requirements will apply to Canadian mining companies whose securities are publicly traded in the United States as a result of the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) in the United States on July 21, 2010. • Under Dodd-Frank, an issuer that is an operator of a mine is required to include in its quarterly and annual disclosure, information regarding mine safety matters, violations of standards and enforcement actions under the U.S. Mine Safety and Health Act. • Dodd-Frank requires that issuers engaged the commercial development of oil, natural gas or minerals that includes exploration, extraction, processing, exporting or the acquisition of a license for any of these activities disclose in their quarterly and annual disclosure with the U.S. Securities and Exchange Commission (SEC) any non de minimis payments related to that commercial development made by the issuer to any foreign government or the U.S. federal government. The final disclosure rules are due from the SEC by April 17, 2011, and the disclosure requirement will take effect one year after the final rules are issued. • Additionally, any issuer that uses conflict minerals in its products will be required to determine if the minerals originated in the Democratic Republic of Congo (DRC) or any country bordering the DRC and then file a report with the SEC,

among other things, delineating the source and the chain of custody of the minerals. Foreign private issuers will be required to include the mandated disclosure in Form 20-F or Form 40-F annual reports.

Far North Act, 2010 – Ontario

Nations. There are concerns that the act will limit development by compromising the mining sector’s ability to operate in the Far North as a result of reducing the available land base in the Far North by 50 per cent. In addition, lack of regulation and funding to implement the proposed land-use planning regime has already created a climate of uncertainty for industry and investors as to future project development and timing. Although in favour of community-based land-use planning, First Nations are objecting to the new legislation as it imposes regulation that may override existing Aboriginal treaty rights and may also limit First Nations involvement in the economic development of the Far North. CIM

In Ontario, the Far North Act, 2010 was passed on September 23, 2010. The Ontario government has touted this legislation as promoting economic development, cooperation with First Nations and environmental protection in the Far North, which encompasses approximately 225,000 square kilometres and includes the “Ring of Fire.” The legislation is designed to protect land north of the 50th parallel from industrial development without comAuthor Virginia Schweitzer is a munity-based landpartner at Fasken Martineau in use planning that Ottawa. Her practice includes directly involves corporate finance, M&A, securities, First Nations. There and mining and technology law. has been significant She advises corporations, including resistance to the legnon-profit organizations, on islation from all seccorporate governance and tors, including the restructuring matters. She also acts mining industry, as corporate secretary for several municipalities in the boards of directors. Far North and First

December 2010/January 2011 | 85

COLUMNS

| HR outlook

Stakeholder consultations define HR priorities for 2011 Ryan Montpellier

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

and create consistent, quality training for the mining and minerals exploration industry in Canada, has three components: National Occupational Standards, certification and accreditation of training. The strategy for the program is to build the systems for certification and training accreditation based on industry-defined standards. To date, under the guidance of industry development committees, MiHR has developed four National Occupational Standards: Underground Hard Rock Miner, Surface Miner, Minerals Processing Operator and Diamond Driller. The certification program is being piloted this year. MiHR is currently identifying and training workplace assessors, creating the assessment tools and testing and evaluating the program. Seven mine sites across Canada are participating in the Certification Pilot program, including: • Xstrata Zinc’s Brunswick Mine in Bathurst, New Brunswick • Cementation at Totten Mine in Sudbury, Ontario, and at Trout Lake Mine in Manitoba • Rio Tinto’s Diavik Diamond Mine in the Northwest Territories • Teck Coal’s Greenhills Operation in British Columbia • Northgate Minerals Corp. at the Kemess South Mine, British Columbia • Teck Resources–Highland Valley Copper in British Columbia It is anticipated that this group, composed of 60 to 100 miners, will become the first nationally certified underground miners, surface miners and minerals processing operators. A national rollout will begin in mid-2011. Photo courtesy of MiHR

Nearing the end of 2009, economic indicators began to point towards recovery in the mining sector. While companies were focused on managing through the recession, planning for the next decade was not an immediate priority. Yet the demographic pressures of our industry have not changed — even in our most pessimistic forecast, the industry will need 60,000 workers to replace retirees and ongoing departures. If we consider a period of relative stability in the sector, the number of recruits needed balloons to 100,000 by 2020. In addition, if we continue to be governed exclusively by fluctuations in commodity prices, we will never get off the cyclical rollercoaster. Central to achieving an effective workforce is industry collaboration. MiHR has mobilized industry to work more collaboratively than in the past on issues that apply to Working together: Two employees discuss plan details at a plant located on a mine site in Saskatchewan. everyone: diversity, mobility, standardization and certification. Mining companies are now further ahead, industry stakeholders identified the willing to open up their HR departfollowing HR issues as priorities: the ments and adopt new methods to grow need to facilitate worker mobility and the overall workforce — and to comskills standardization; developing a pete as employers of choice. counter-cyclical strategy to ensure As one facet of MiHR’s continued industry is positioned to address future commitment to industry collaboralabour shortages, despite the economic tion, it holds annual forums to bring cycle it is in; and, finally, managing the together senior industry stakeholders aging workforce. to learn about the Council’s products MiHR uses these collaborative sesand resources. Through facilitated sions to develop programs, tools and sessions, participants will learn how resources that provide industry with to implement these products and practical and effective solutions to resources, and to identify and discuss address the HR issues identified as prifuture needs and opportunities for orities. Since the time of these consulsupporting the mining industry’s HR tations, key programs have been implechallenges. mented. Towards the end of 2009 and The Canadian Mining Credentials throughout 2010, consultations were Program (CMCP), developed to held in western, central and eastern increase recognition of skills and comCanada. From these consultations, petencies, support worker mobility

HR outlook | COLUMNS To help industry manage the aging workforce and develop a long-term workforce planning strategy, MiHR has released the “Canadian Mining Industry Employment and Hiring Forecasts 2010” report and HR Forecasts (www.mininghrforecasts.ca), a national online tool that will allow users to create custom employment forecasts and feed them into their strategic plans and scenario models. Developed under MiHR’s Mining Workforce Information Network (MIWIN), these two new resources provide the most extensive research and analysis on Canada’s mining labour market and workforce planning to date. These resources will also better align industry’s needs with education, bolstered by the career awareness from our ongoing attraction program, “Explore for More.” Good labour market information means we can stop asking: “How long will the upturn

last?” relying instead on counter-cyclical strategies that mitigate the effects of the sector’s volatility. By working together, we have accomplished a great deal over the past year and it is critical that we maintain this momentum because there is more work to do. With 2011 upon us, MiHR will be further engaging industry stakeholders through its Innovative HR Practice Recognition Program. This online compendium will recognize, reward and showcase innovative mining HR practices, change perceptions and position mining as an excellent industry to work in. Employers contributing to the website will benefit from an enhanced profile and industry status, as well as valuable insight into the industry’s most innovative HR practices in areas such as diversity and inclusion, skills, training and employee devel-

opment, compensation and wellness and social responsibility. Through the exchange of knowledge and best practices, we can, collectively, implement the strategies needed to ensure an appropriately skilled workforce is in place for 2011 and the years to follow. CIM Applications are now open for MiHR’s Innovative HR Practice Recognition Program. To apply, go to www.MiHRInnovate.ca and share your company’s HR success stories.

Author Ryan Montpellier is the executive director of MiHR. Currently, he sits on a number of boards and provincial committees dealing with labour shortages in the mining sector.

December 2010/January 2011 | 87

COLUMNS

| standards

The inclusion of Inferred Mineral Resources in economic analyses Greg Gosson It is common practice in the mining industry to assess the economic viability of a mineral deposit/project at various development stages. The purpose of an economic assessment may be for internal planning purposes to allow company management to determine the priority of the project in comparison to other projects competing for management time and budget, or an economic assessment may be disclosed to the public to maintain investor interest in the activities of the company and to allow financing to be raised to advance the project.

allow detailed mine planning and there can be no direct link from Inferred Mineral Resources to any category of Mineral Reserves. The category of “Possible Reserves” was effectively expunged from the mining lexicon late in the last century. NI 43-101 followed CIM’s guidance with a general prohibition on the disclosure of the results of an economic analysis that includes Inferred Mineral Resources under Section 2.3 (1)(b): “An issuer must not make any disclosure of the results of an economic analysis that includes inferred mineral resources.”

NI 43-101 restrictions on public disclosure

Carve-out for preliminary assessments

Disclosure of the economic analyses of mineral projects to the Canadian public is governed by National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43101). Canadian Securities Administrators have incorporated by reference into NI 43-101 the definitions of Mineral Resources and Mineral Reserves in CIM Definition Standards for Mineral Resources and Mineral Reserves (2005). In their guidance to the definition of Inferred Mineral Resources, CIM has taken a strong position against the inclusion of Inferred Mineral Resources in economic analyses that will be disclosed to the public: “Confidence in the estimate is insufficient to allow the meaningful application of technical and economic parameters or to enable an evaluation of economic viability worthy of public disclosure. Inferred Mineral Resources must be excluded from estimates forming the basis of feasibility or other economic studies.” All of the recognized Western reporting codes agree that the confidence in the estimate of Inferred Mineral Resources is not sufficient to

The practical reality in the mining business is that investors want to have an understanding of the economic potential of a mineral project, even at a preliminary stage of assessment. At this early stage, a significant portion of the Mineral Resources may be in the Inferred category — particularly for deeper deposits only amenable to exploitation using underground mining methods. To restrict the economic analyses to just the Measured and Indicated Mineral Resource categories could result in a meaningless and potentially misleading result. Canadian Securities regulators recognized this investor need for information and provided a carve-out for studies at the level of Preliminary Assessments. Mining companies may disclose the results of economic analyses that include Inferred Mineral Resources at an early stage of the mineral project. “Early stage” was defined as being prior to the completion of a Preliminary Feasibility Study. There were certain conditions to the carve-out: • Results of the Preliminary Assessment must be material to the company

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

• Cautionary language must be included with the disclosure of the Preliminary Assessment. • The disclosure must include the basis of the Preliminary Assessment and the assumptions used. • The disclosure would require the filing of a technical report supporting the Preliminary Assessment.

Proposed relaxation of restrictions in NI 43-101 Canadian Securities Administrators have proposed removing the restriction that a Preliminary Assessment could only be disclosed prior to the completion of a Preliminary Feasibility Study. If these changes to NI 43101 are adopted, a company would be able to re-scope a mineral project that had a Preliminary Feasibility or Feasibility Study completed. For example, a Preliminary Feasibility Study of an all-open pit mining scenario could be reassessed as a Preliminary Economic Assessment of a combined open pit and underground mining operation. Under the changed rule, Inferred Mineral Resources could be included in the Preliminary Economic Assessment. One condition of this relaxed rule is that a company would have to explain to the investing public what the results of the Preliminary Economic Assessment means with respect to the previously disclosed Preliminary Feasibility Study. Should investors still rely on the results of the Preliminary Feasibility Study, or is the company completely rethinking how they may develop the project? If adopted, these changes to NI 43-101 will only take effect in mid-2011.

SEC restrictions on disclosure Under NI 51-102 Continuous Disclosure Obligations, mining and exploration companies filing an Annual Information Form (AIF) in

standards | COLUMNS

Author Greg Gosson is technical director, geology and geostatistics, Mining and Metals Consulting, for AMEC Americas Limited.

ACHIEVEMENTS

Photo courtesy of Ludy Mennie

Canada must include all material information on their mineral projects. This may include the results of Preliminary Assessments. It is common practice for Canadian reporting companies to file their AIF with “a wrap” as their annual report with the United States Securities and Exchange Commission (SEC). Mining and exploration companies should consider the restrictions the SEC places on the disclosure of economic analyses that include Inferred Mineral Resources. Although SEC Industry Guide 7 makes some allowance for companies subject to NI 43-101, everything permitted under NI 43-101 is not necessarily acceptable to the SEC. Comment letters issued by SEC staff to mining companies on forms filed with the SEC are posted for public view on EDGAR (Electronic Data Gathering, Analysis, and Retrieval system). The SEC staff uses a combination of SEC Industry Guide 7 and accounting legislation to restrict the disclosure of economic analyses that are based on Mineral Resources as opposed to Mineral Reserves. This is particularly the case for mine production schedules or financial analyses that include Inferred Mineral Resources. If Inferred Mineral Resources are included in the economic analysis of the Preliminary Assessment, SEC staff may require the company to refile their annual report with the Preliminary Assessment removed. Even a Preliminary Assessment that is restricted to Measured and Indicated Mineral Resources could be challenged by SEC staff if they consider there to be insufficient basis to the study, or if they perceive a significant risk that the economic results cannot be realized. CIM

Mike Latimer, mine manager, Lehigh Materials, Sechelt (left), and Mike Van Ham, president, SYLVIS Environmental (right).

Aiming high for reclamation

Lehigh Materials’ Sechelt Mine has won the 2010 British Columbia Jake McDonald Reclamation Award. Located on BC’s Sunshine Coast, the mine was recognized for its innovative and comprehensive program to mitigate the community’s concerns of dust, noise, lights and visual aesthetics while enhancing the diversity of wildlife and vegetation on more than 50 hectares of reclaimed land at the mining site. By incorporating extensive on-site research and community involvement, the company has taken a unique and sustainable approach in its reclamation efforts.

Executing engineering excellence

Engineering excellence was recently celebrated at the 63rd Annual Ontario Professional Engineers Awards Gala at the International Centre in Mississauga. This year’s recipients included two from our industry. Mansoor Barati, assistant professor, Department of Materials Science and Engineering, University of Toronto, was presented with the Young Engineer Award, for his inspiring commitment to education and leadership in the research of environmentally sustainable processes. Lauded for her leading role in Vale’s recent $1 billion expansion project, Daryl Mcnamara, project manager, Vale, received the Management Award for her efforts in steering the expansion through cutbacks, challenging global economic conditions and into implementation. Presented annually by the Ontario Society of Professional Engineers and Professional Engineers Ontario, the Professional Engineers Awards Program recognizes excellence across a broad range of engineering endeavours, including innovation, professional leadership and entrepreneurship.

A growing mosaic

The Saskatchewan Chamber of Commerce has awarded The Mosaic Company an ABEX Award for Growth & Expansion at the 27th Annual ABEX Awards event, celebrating outstanding achievements in business excellence in the province of Saskatchewan. Mosaic received the award for demonstrating exceptional performance in making capital investment. The company was lauded for funding growth opportunities and internal investments to sustain peak operational efficiency and creating value for its shareholders. In 2009, Mosaic commenced the second phase of a long-term expansion project in the province, and recently completed a 1.1 million tonne expansion in Esterhazy, SK. December 2010/January 2011 | 89

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| innovation

The path ahead CMIC’s progress and plans for 2011 Tom Hynes The Canada Mining Innovation Council (CMIC) has been working tirelessly towards strengthening Canada’s role as a global leader in research and innovation. Governed by a 20-person board of directors made up of industry, government, academia, research organizations and industry associations, CMIC is ready for what promises to be their busiest year to date. Six major initiatives are currently in the works in the areas of exploration, energy, mining, tailings, processing and “green” mining, all of which are at various stages of advancement. The Exploration Initiative has now progressed to the point where research proposals are ready to be defined. The priority for 2011 will be to move all of these initiatives substantially forward, at the best possible speed, to meet the expectations that member communities (corporate, government and research) have for CMIC’s research agenda. More specifically, the overall research program objective is to bring the Exploration Innovation Consortium to the implementation phase (i.e. research funding) and to bring all the other initiatives at least to the pre-implementation phase (i.e. with established champions, working groups, objectives and prioritized research topics defined).

Funding initiatives and programs CMIC’s intent is, if possible, to have all research funding go exclusively towards implementing and managing research programs. Where other funding models take a percentage of research funding to cover organizational costs, CMIC prefers to have organizational costs covered by membership fees and contributions from key stakeholders. This will require the development of a larger membership base, but will also put more resources directly into the research projects it sponsors.

Initiatives in 2011: the breakdown For its Exploration Initiative, CMIC plans to: • Establish and implement the organizational structure the Exploration Innovation Consortium will use to define research priorities, select research proposals, arrange industry funding support to secure matching external funding, and manage research deliverables and timelines. • Hire a research manager to oversee the research agenda. • Begin at least three research projects aligned with the goals of the Exploration Innovation Consortium. For its other initiatives, CMIC intends to:

Many thanks to the following: Academia and research organizations Canadian Mining Education Council • McGill University • University of British Columbia • University of Toronto • University of Alberta • Université du Québec à Montréal • Queen’s University • Centre for Excellence in Mining Innovation • Consortium de recherche en ressources minérales • Saskatchewan Research Council Governments Saskatchewan Ministry of Energy and Resources • British Columbia Ministry of Energy, Mines and Petroleum Resources • Ministère des Ressources naturelles et de la Faune du Québec • Ontario Ministry of Northern Development and Mines

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• Appoint an industry champion to take the lead in driving each individual initiative. • Appoint a working group of representatives from CMIC industry member organizations to work with the champion to define the research agenda of the initiative. • Establish and implement the organizational structure for each initiative in order to define research priorities, select research proposals, arrange industry funding support to secure matching external funding, and manage research deliverables and timelines. • Ensure effective communication with interested stakeholders across the country. • Build partnerships with other organizations that have complementary interests in these areas. • Define the major areas of research needed to meet the future needs of the Canadian mining industry through consultations and national workshops.

Other areas of focus In addition to its research initiatives, CMIC will develop the other themes highlighted in the Pan-Canadian Mining Research and Innovation Strategy. In early 2011, it will hold a workshop

Mining, exploration and consulting companies, and industry associations Cameco Corporation • Canadian Association of Mining Equipment & Services for Export (CAMESE) • Prospectors and Developers Association of Canada (PDAC) • Surface Mining Association for Research and Technology (SMART) • Teck Resources Ltd. • Vale Ltd. • 3M Mining and Mineral Extraction • Barrick Gold Ltd. • Xstrata Nickel Ltd. • Hatch & Associates Ltd. • HudBay Minerals Inc. • Kinross Gold Corp. • De Beers Canada Ltd. • UR Energy Inc. • Gold Fields Ltd. • Altius Minerals Corp. • Goldcorp Inc. • Western Potash Corp. • Cliffs Natural Resources Exploration Ltd. Special support Natural Resources Canada • Canadian Institute of Mining, Metallurgy and Petroleum (CIM) • Mining Association of Canada (MAC)

innovation | COLUMNS to define its two- to three-year implementation plan to increase the supply of graduates to meet industry needs. Throughout the year, CMIC will also continue to sustain a culture of innovation and collaboration in the mining research community, and continue to enrol new audiences and key decisionmakers to support mining research and innovation. To keep its members up to speed on its activities, CMIC issued its first electronic newsletter in July 2010. These newsletters will be published eight to nine times per year and will supplement InnovaMine, a hard copy newsletter published approximately twice per year. CMIC will also be launching its new website in the first half of 2011.

Securing growth The progress CMIC has made since its inception was made possible by its strong and committed membership base. Members have been proactive and engaged, and have fostered the collegiality and cooperation that is a necessary part of moving CMIC plans forward. Membership has increased substantially this year, especially in recent months. CMIC is targeting continued membership growth in 2011. In particular, it foresees major expansion in exploration company membership, as the first exploration research projects are implemented and as the rest of industry becomes aware of the work that is being done to secure and maintain

Canada’s position as a leader in research and innovation. If you would like to receive the CMIC newsletter, please contact Michel Plouffe at info@cmic-ccim.org. CIM

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.

ude A great deal of gratin it Özberk An open letter by CMIC president

Eng

ral years and we grown substantially in the past seve has IC) (CM ncil Cou tion ova am The Canada Mining Inn s become more widely known. I as the organization and its program ing tinu t con wan sion and gres y, pro toda t is tha it t see fore e CMIC wha and organizations that have mad ple peo the with com ed ing ciat min asso n be adia to proud alf of the Can thank them for their efforts on beh and ns utio e trib hav con r who thei e ple ledg peo to acknow avoid embarrassing the tions rather than individuals to munity. I will focus on organiza w who you are and thank you! done so much for us — you kno ch to help define our organizations. You have done so mu arch rese and ia dem aca with first t I would like to star ard on our research path. steer us into productive routes forw research capacity and have helped needs of Canada’s e helped determine the research hav t tha s tner par t men ern gov d with alternate Next, I want to thank our on how best to proceed when face ice adv ble lua inva d vide pro e public sector, and who hav approaches. t are directing and that will implethe companies and associations tha e ledg now ack also I t tha l ntia It is esse t CMIC is undertaking. ment the research initiatives tha , but that have contributed tions that, though not members niza orga ral seve the nk tha to Finally, I need continue to support it today. greatly to CMIC’s creation and helping us develop or a more recent member, you are ter por sup e tim g lon a are you t its productivity, To everyone, whether ant and helping the industry mee vibr ada Can in y ustr ind ing miningthe tools to keep the min extend a warm welcome to any obligations. I would also like to al soci and s and tal rest men inte r iron you env uss ty, disc safe happy to to join us in 2011 – we will be like ld wou who s tion niza orga related areas of mutual benefit. Very best regards, E.Ö. December 2010/January 2011 | 91

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| metals monitor

The MEG Industry Monitor Metals Economics Group’s analysis of the developing supply pipeline The staff of Metals Economics Group

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• Number and value of initial resource announcements. • Number, value and type of latestage project milestone announcements — projects entering feasibility, making production decisions, entering production, or being put on hold at any of these stages. • Significant junior and intermediate company financings (the financing market most closely linked to exploration spending). • Project and company acquisitions. To gauge levels of activity, the MEG Industry Monitor combines the numbers of new drill results, resource announcements, positive project milestones and financings in a comparable monthly Pipeline Activity Index (PAI) — for all metals and, separately, for base metals and gold. To provide further useful context, the PAI is plotted against a blend of precious and base metals prices, weighted by the percentage of overall exploration expenditures dedicated to each metal, and against the changes in monthly aggregate market capitalization of publicly listed precious and base metals companies worldwide.

MEG Pipeline Activity Index and Indexed Metals Price

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month-to-month basis? Where? By whom? • How does this activity compare with the recent past and with the same period a year ago? • What does it tell us about emerging areas of activity and opportunity? The MEG Industry Monitor takes a wealth of information from a number of different MEG services including MineSearch, Exploration Activity Services and Acquisitions Services. An integrated package of visual presentations and commentaries is presented. • Monthly totals of significant drill results announcements based on grade/length intervals and further divided into new finds, new zones or satellite deposits, and work at existing projects.

MEG’s Pipeline Activity Index reaches a high

In developing effective strategies, explorers, acquirers, suppliers, financiers and planners need an up-to-date view of the emerging mine supply pipeline, and of trends in financings and acquisitions, at both macro and ground levels. The bimonthly MEG Industry Monitor assembles and collates exhaustive current data on exploration, development, financings and acquisitions available from Metals Economics Group (MEG). The service reveals trends, provides an overview of where and how the whole supply pipeline is developing, and facilitates exploration of key strategic questions: • Where is today’s successful drilling concentrated? • What new gold and base metals reserves are being added to different stages of the pipeline on a

Metals Economics Group’s Pipeline Activity Index (PAI) rose to a 2010 high in October. Gains in the PAI resulted from a jump in the number of completed gold financings and a steadily increasing number of significant drill results. Initial resource announcements equaled their highest bimonthly total in a year. The industry’s aggregate market

metals monitor | COLUMNS

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value also reached a high water mark of $2.07 trillion in October — its first time above $2 trillion since May 2008. Continuing the upward trend that began in May-June 2010, the number of significant drill results increased again in the latest two-month period. Gold results reached their highest bimonthly total in more than two years and base metals results reached their highest total since SeptemberOctober 2008. Regionally, North American projects consistently accounted for the highest proportion of significant gold results, while Latin America and Australia-Pacific together accounted for more than 50 per cent of base metals results. The overall value of the initial resources reported in the latest period represents the highest bimonthly total in the last 12 months, led by the Tumpangpitu porphyry deposit at Intrepid Mines’ Tujuh Bukit coppergold project in Indonesia. Although still not reaching levels seen in earlyto mid-2008, the number of initial resource announcements reported in the September-October period is a considerable improvement over JulyAugust. The improvement may indicate that the increased drill activity observed since early 2010 may begin

to translate into more initial resource announcements. The resource value of late-stage projects in September-October 2010 was down substantially from the previous period due to BHP Billiton’s Olympic Dam Mine resuming full production in August, following a failure in the main haulage system in late 2009. The number of significant financings completed by junior and intermediate companies was up 30 per cent from July-August, largely driven by the gold financings completed in October. The average amount raised

Number of Gold Financings Completed

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per gold financing decreased almost 40 per cent from JulyAugust, serving as evidence that record-breaking gold prices are feeding the investor appetite for smaller juniors with prospective early-stage projects. Base metals financing increased slightly from JulyAugust, as the value of equity financings more than doubled, offsetting a decrease in debt financings. The ten IPOs that closed in September-October raised a combined $96.6 million, including $60 million raised on the AIM by Central Asia Metals for its copper project in Kazakhstan and its copper-gold and molybdenum projects in Mongolia. Gold and base metals IPOs (each raising at least $2 million) completed in 2010 now total 41. To register for a trial of the MEG Industry Monitor, including the PAI, go to www.metalseconomics.com/ IM. CIM © Metals Economics Group, 2010

Gold Financings

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. (www.metalseconomics.com)

MOVING ON UP Stephen J. J. Letwin has been appointed as IAMGOLD’S president and CEO. A certified general accountant, Letwin was most recently the executive vicepresident, Gas Transportation & International with Enbridge Inc. He was responsible for all aspects of the company’s natural gas operations. Before joining Enbridge in 1999 as president and COO, Energy Resources, Letwin served as CFO with TransCanada Pipelines Limited, Numac (Westcoast Energy), and Encor Energy. Dumas Contracting Ltd. has appointed Owen Davies to the position of CFO. A chartered accountant with over eleven years experience in the mining and investment banking sectors, Davies was previously CFO and executive vice-president of The Procon Group of Companies responsible for the areas of treasury, capital markets, strategic initiatives and corporate restructuring. Prior to Procon, Davies was assistant vice-president, Corporate Finance and Investment Banking at PricewaterhouseCoopers. December 2010/January 2011 | 93

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| first nations

Outlook 2011: First Nations exerting more influence on mining development Juan Carlos Reyes On November 2, 2010, federal Environment Minister Jim Prentice announced that the government had rejected a proposed development in British Columbia by Vancouver-based Taseko Mines. Two days later, B.C. Premier Gordon Campbell announced his resignation. It is quite likely that the Prime Minister’s decision to block the massive development in one of the province’s hardest hit areas was probably the last straw for the premier. This story helps illustrate the increasing influence First Nations have in the mineral development industry. The province had approved the $800 million development in January 2010, pointing out the hundreds of jobs and millions of dollars worth of tax revenue the project would generate. But an unprecedented opposition by the Tsilhqot'in First Nation in

the area was so impassioned that one elder from the community claimed she was willing to protest in her wheelchair armed with her shotgun. Others stated solemnly that they were willing to give up their lives in order to protect this land. The inflammatory conditions resulting from the opposition by First Nations are what likely forced the Harper government to reject this project. After all, what government wants to have a fullblown war with First Nations over development, especially before an election? Earlier this year, the financial sector got a wake-up call about the importance of building strong relationships with First Nations. Flowthrough shares (FTSs) allow the exploration industry to raise capital by passing on a tax benefit available to the industry to the purchaser of

FTSs. But if the money raised by the company is not spent, the purchaser of the FTS does not get the benefit. This is a critical detail for the financial sector, and it is what had some people sweating during this past winter’s Ring of Fire blockade by Webequie and Marten Falls First Nations. Bay Street is becoming acutely aware of the power and influence that First Nation communities yield in the resource sector, and the heat is on to ensure that relationships and consultations continue to stay top of mind for industry and government. Communities are increasingly realizing that in order to assert their treaty rights, they have to be more assertive about their lands — an often costly proposition for both sides. It is not ideal and it might lead to the unhealthy situation in which communities feel that their only recourse is

Building relationships in 2011 Preparations are well underway on Learning Together's 6th annual conference taking place on April 6-7, 2011, in Prince Albert, Saskatchewan. Learning Together is a grassroots, 100 per cent Aboriginal, community-based conference that provides a wealth of information, networking, sharing and relationship building to help Aboriginal communities take full advantage of the opportunities available within the mining and exploration industry.

• Learn the steps the minerals industry needs to take to build meaningful, trusting relationships with Aboriginal communities through workshops, case studies, plenary sessions and networking programs. • Learn about the opportunities and issues for communities in the mining and exploration industry.

Using a unique networking approach, the conference allows participants to: • Learn about one another in a richly personal manner. • Hear about the problems and solutions that other communities are facing — about their differences, similarities, needs and wants — during the ever-popular open forums.

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Be a part of this innovative conference. To learn more visit www.learning-together.ca.

to deny, through physical means, any access to projects. A recent study by Harvard Law School of the effects of mining on First Nations in British Columbia — which focused on the experiences of the Takla Lake First Nation — concluded that mining laws are in contravention of international and constitutional laws, stacked against First Nations, favour industry, and lack any consideration of shared decision-making, revenue-sharing or fair compensation. In order to fix this problem, the report recommends that mining companies must acknowledge that indigenous peoples have special rights and interests, and take them into account in their transactions with First Nations. They can do so by increasing consultation efforts and negotiating, in a fair and transparent manner, to share the benefits of mining. But it needs to be a two-way street. First Nations need to internally determine their needs, and what types of consultation and benefits they need, and then clearly convey these preferences to industry and government. In spite of all the signs that show the need for improved communication, there is still immense resistance from even the big industry

players to properly consult and work with communities. Moving forward, there needs to be a greater investment by government and industry to educate communities and industry on how to work and consult with First Nation communities. But how do these parties learn to communicate with each other in a productive way? Well, there are some exciting things happening in this area. At Learning Together (www. learning-together.ca), for example, we are working on a project to help increase the number of Aboriginal workers employed in the mining industry. In partnership with Goldcorp, we have developed a pilot program to work within communities to assess and identify candidates, to provide training, support and mentors, and to properly prepare community members to work in all areas of the industry. This project helps to address one of the biggest issues that communities and industry face: community members jumping into employment positions for which they are neither trained nor suited. Once the pilot program is complete, we plan to develop a national strategy to improve the employment outlook across the country. 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.

mac facts

• British Columbia, Manitoba and Ontario were the top three copper producers in Canada in 2009. • All of Canada’s nickel is produced in Ontario, Manitoba, Quebec and Newfoundland and Labrador. • The opening of Voisey’s Bay in 2006 moved Newfoundland and Labrador to second place in its first year of nickel production. December 2010/January 2011 | 95

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| safety

Safety is everyone’s business Spanning boundaries with a strong safety culture

Photo courtesy of Cementation Canada

Heather Ednie

A crew at Diavik Diamond Mine in a daily safety line-up meeting (PASS) prior to going on shift.

“Safety isn’t a thing you do; it is a way you do things. Safety is how we do things,” says Roy Slack, president and director of Cementation Canada. The company recently completed 18 months with no lost time injuries, and has prioritized safety and made it their operational framework. Cementation is an underground mine contractor and engineering company specializing in mine development, shaft sinking and largediameter raise boring. The nature of the company’s work calls for its employees to work at numerous mine sites that are owned by different corporations in a variety of countries, which makes it challenging to enforce a strong safety culture throughout its projects. “Even though as a company safety is the first value we work to, every site has its own culture that needs to be aligned,” Slack says. “We must continually demonstrate our commitment — making safety the first item discussed 96 | CIM Magazine | Vol. 5, No. 8

at all meetings, placing it on every agenda, talking about it with our people. It’s really an evangelical process, to bring people on board to our vision that ‘zero’ is possible.”

Setting up a new site When Cementation is awarded a new contract, its first step is to review the safety programs of all involved parties and identify the best elements of each one. Only once this is done do team members — the project manager and representatives from business development, safety and operations — meet to develop a site-specific health and safety plan. “No two jobs are the same,” says project manager Pat Bartley. “We recognize that and build a new plan each time.” The next step in the process is to present the plan to the client on site. “We will compare our two safety plans and take the best elements of each to build a master plan for the project,” Bartley says. “In general, it’s usually

basically the same, although some details will change. Only once we’ve reached an agreement will I move my people to site.” With a wide variety of projects spanning such a diversity of sites, employee safety orientation is an important step towards embedding Cementation’s safety culture. “As we move employees around, we’ve established a standard orientation for all projects, wherein the basic structure of the program remains the same, but it is customized by the project manager with the client,” Slack explains. “Employees are oriented at every site they join and reorientation is done annually, across the board.” Safety orientation is also provided to all subcontractors and their employees who work on site.

Pass or fail and nothing in between In addition to the safety plan, supervisors get together and develop a compliance plan, which dictates

safety | COLUMNS the actual safety-related actions required from each supervisor. It includes: • Daily safety huddles • Personal contacts (safety information sharing in an informal structure) • Addressing employees’ safety concerns • Personal protection equipment (PPE) audits (minimally three or four per year for all employees to ensure their equipment is up to standard) • Safety meetings with the crews • Job observations Supervisors must submit monthly reports on their compliance plans and the only acceptable score is 100 per cent. “For example, if you’re supposed to do 30 safety huddles per month and you only do 29, you fail and will be asked to explain,” Bartley says. “These cooperatively built plans help ensure safety remains at the top of the agenda across the operations.” The employees themselves are also required to be actively involved in safety measures. For every task, a job hazard analysis (JHA) must be done. “For example, take a crew that is to pour a concrete form,” Bartley explains. “Together, the crew must list all steps in the task, the tools required and the possible hazards — and address them — therefore mitigating risk before starting the job.” Another action required of all employees is to abide by the “stop and correct” approach to safety. “At one time in this industry, it was ‘Damn the torpedoes, let’s get the job done,’” Bartley recalls. “Now, across industry and especially at Cementation, that’s unacceptable. If you find something wrong, you must stop and fix it before going on. For example, if you walk by a pipe and think, ‘That pipe might fall,’ you must stop and fix it — don’t leave anything to chance.”

A brotherhood of miners The family mentality that thrives in the mining industry is such that, at the end of the day, you make sure that everyone you work with gets to go home to his or her family. For Bartley, whose career in the mining industry began in 1973, it is an approach he takes to heart. “When you take on a job like this — requiring that you’re away from home with a crew — they become your family,” he says. “If someone in your crew gets hurt, you get hurt. You genuinely care for each other.” Long gone are the days of injuries and fatalities being par for the course in mining, and industry veteran Bartley could not be happier. “When I started, you would expect that fatalities would happen,” he recalls. “Today, even the smallest of injuries are unacceptable.” And with a firm safety culture in place, Cementation boss Roy Slack says that people who do not have the same commitment to safety eventually end up leaving the team. “Once the culture is developed and the employees buy in, peer pressure for people to be safe is strong,” he says. “Everyone makes a personal commitment to their own and their coworkers’ safety.” For information on Cementation’s involvement in the Chilean miners’ rescue, see p. 10 in the news section of this issue of CIM Magazine. CIM

Safety — the bottom line Site safety is a critical part of every contract, every negotiation. For Cementation, a client’s approach to safety is a critical factor in choosing what projects to bid on. Meanwhile, during the bidding process, mining companies look at Cementation’s safety programs and record as part of the decision-making process. Over the last two decades, Bartley has seen safety climb up the list of priorities for the whole of industry. Mining safely is no longer a vision; it is a reality. “Especially with the larger companies, today, safety is profit,” Bartley explains. “That’s the bottom line now. And as a contractor, we feel it. I haven’t felt pressure to do something unsafely — we wouldn’t anyway, but there’s absolutely no allowance for the ‘grey areas’ anymore.” For Cementation, safety is crucial. “The more incidents we have, the less likely we are to get future work,” Bartley adds. In fact, one of the biggest factors taken into consideration during the selection process is a contractor’s safety record. “If we demonstrate a great safety record, we have a good chance of getting the contract,” he says. December 2010/January 2011 | 97

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| engineering exchange

Going for the gold Optimized planning means high production for Detour Lake

Photo courtesy of Detour Gold Corporation

Heather Ednie

Detour Lake construction camp

There are few mining operations the size of the Detour Lake open pit gold mine that are poised for development in Canada. And unlike most big mining projects these days, this one, in northeastern Ontario, carries minimal risk and has faced few major technical complications. And that makes it a bit unusual, says Paul Chawrun, director of technical services at Detour Gold. “It’s not as technically challenging as other world-class operations,” explains Chawrun, noting Detour will employ conventional mining methods. “In fact, the greatest benefit is that it’s a low-risk, high recovery operation with a solid workforce base — being more of a ‘standard’ operation is what stands out today. It’s a matter of doing a lot of leg work because it’s a big deposit. The sheer size led to a lot of testing to prove it out.” Sound geology and an emphasis on utilizing currently available technology are allowing the company to seize an opportunity that is, well, golden. 98 | CIM Magazine | Vol. 5, No. 8

The Detour Lake Mine was first operated by Placer Dome between 1983 and 1999, initially as a small open pit that was then converted into an underground mine. However, when the price of gold tumbled in 1998, the operation was shut down and reclaimed. The property became available in mid-2006 and Detour Gold Corporation acquired it in January 2007 with the vision of developing the deposit as a bulk mineable, low-grade operation. In just over three years, Detour Gold succeeded in proving that Detour Lake was both technically feasible and economically valid after delivering a positive feasibility study in May 2010. The project recently received the green light from the provincial government to begin construction while detailed engineering and procurement are going full speed ahead.

Mapping the mine strategy Detour Gold contracted BBA to carry out the feasibility study and

detailed engineering of the project. Patrice Live, project manager – mining for BBA, says a combination of factors made the project feasible, namely, optimizing the grade and stripping ratios, limiting the dilution coefficient and maximizing the cash flows of the operation, particularly in the early years to accelerate project payback. “We executed a vast series of studies and simulations, looking at dozens of scenarios to maximize the best option for the mining scheduling,” Live says. “We have developed an optimized project that is feasible and solid.” The pit design completed by BBA resulted in a mine plan containing 347.5 million tonnes grading 1.02 g/t gold (including low-grade stockpiled ore). The mine plan maximizes head grade recovery in the early years for a faster payback of capital. Total gold production over a 16-year mine life is estimated to be 10.4 million ounces, averaging 649,000 ounces per year

engineering exchange | COLUMNS (plus 200,000 ounces of silver). The life-of-mine wasteto-ore ratio is estimated at 3.3 to 1. “Pit development is staged to optimize ore grade to maximize our cash flow at US$850 per ounce,” adds Chawrun. “Our mineral resource continues to grow as the deposit is open at depth and to the west.” A future expansion plan would be considered at a gold price of greater than US$1,000 per ounce. The expansion means lowering the cut-off grade, leading to a lower waste to ore ratio. Currently, BBA oversees the engineering process. A number of pieces of equipment have already been ordered, including 795F (diesel/electric) 320tonne trucks from Caterpillar. “They are new machines, but have undergone very serious testing in several countries under different climates over the last five years,” Live says. Because Detour Gold aims to make the mine a world-class operation, it wanted to equip it with the latest proven technology. “In the first year, we will require six trucks. Then, the fleet will be increased to 18 for full production and increased more as needed. After careful scrutiny and analysis, the BI RH-340B hydraulic shovels have been selected as the primary ore-loading tool to reduce the dilution coefficient and maximize recovery. Cable shovels are likely to be the next primary loading equipment to be selected.”

Optimizing the mill plan As the original mine complex was completely demolished and almost all infrastructures removed, Detour Gold has to rebuild the site from scratch, including erecting a new mill with two independent lines totalling 61,000 tonne per day capacity. Like the mine, the main challenge was to optimize the capital and operating costs, as well as productivity, through technology and innovative design. “The mill design includes two SAG mills and two ball mills,” explains André Allaire, director – mining and

Aerial view of the brownfield nature of the site. The new open pit will cover the old pit, West Pit area and extend west of the Calcite Zone (3 kilometres in length). Photo courtesy of Detour Gold Corporation.

metals for BBA, who was the company’s project manager for the feasibility study of the project. “Detour Gold purchased the largest twin pinion SAG mills available from FLSmidth. Having two lines gives Detour Gold additional flexibility during periods of maintenance.” Size, however, was not the only deciding factor in the mill’s design. The Detour Lake material has a low grinding capacity for SAG mills and therefore results in an approximate 45,000 tonne per day capacity for the two mills. However, with the addition of a 1,000 kW gyratory crusher, followed by two 745 kW cone crushers before the SAG mills, the capacity increased significantly. “It helps the SAG mills by reducing the feed size from a P80 of 165 millimetres to a P80 of 50 millimetres,” Allaire explains. “The SAG mill throughput is largely increased because the Detour gold ore is considered hard to break.” “Precrushing isn’t common in Canada, but we’ve proven its merit at both the Troilus operation and AgnicoEagle’s Goldex operation,” Allaire adds. “We investigated other options, such as high-pressure grinding rolls (HPGR), but they could not be justified compared to conventional methods. In the end, adding the pre-crushing units gives the best solution in terms of price and profitability.” After crushing, the material travels to a gravity recovery circuit, then on to an intensive leach reactor for the

recovered gold, and the remainder to a CIP (carbon-in-pulp) carousel circuit, prior to stripping. The carrousel CIP is relatively new to North America, found here only at Agnico-Eagle’s Meadowbank and Osisko’s upcoming Canadian Malartic project. In a conventional CIP system, the slurry and carbon move counter current to each other. In the carousel system, the carbon stays within each tank and the pulp is piped tank to tank. Once fully loaded, the tanks are emptied out. “The tanks will be emptied once every 14 days,” Allaire adds. “With two systems including seven tanks each, that translates into emptying a tank each day.” Allaire said the carousel technology was adopted because the CIP tanks are three to six times smaller than a conventional CIP, making it much easier to fit them inside the building. As well, the gold loading on the carbon is higher, reducing the gold inventory in the plant and the stripping circuit size.

Let’s get it started Currently, about 80 of BBA’s employees are working on the Detour Lake detailed engineering, overseeing the planning and construction of the powerline and executing procurement. “In Eastern Canada, there are not that many large operations like Detour Lake,” Allaire says. “BBA is a new player with much experience and it’s exciting to be building these large projects, and building our own company at the same time.” AMEC is responsible for the construction management, with much of the same team that built the Victor Mine for De Beers. Production is scheduled to begin in the first quarter of 2013. Detour Gold received provincial permits this past November to go ahead with construction while they continue with the regulatory process on a number of other areas. Detour Gold will be in full construction mode starting in January 2011. CIM December 2010/January 2011 | 99

COLUMNS

| women in mining

For the love of… helicopters? Senior geologist knows life is what you make it

Birgit Rameseder lives by the credo that life is what you make it. The De Beers geologist has capitalized on opportunities as they arose throughout her career. She exudes an enthusiasm for life and a driving will that carves out a path to success. From helicopterhopping at exploration camps to being the senior mine geologist on site at a mine, she has experienced many sides of the mining industry and looks forward to what new adventures may come her way. Originally from Germany, Rameseder began her studies in geology there before coming to Canada to undertake a master’s degree at the Université du Québec à Montréal. Much to her surprise, the topic of her thesis — gold deposits in eastRameseder is a member of the emergency rescue team at Victor Mine. Photo taken during ERT high-angle training. ern Quebec — attracted unlikely attention. “At one point, the team was pancollection of stories to tell involving “I was seconded to the mine for a short ning for gold in a river and a reporter bears, wolverines, etc.” term, but I’m still here,” she says. wanted to run an article, with photo, A few years later, Rameseder began in the local paper,” she recalls. “Next managing her own projects with De Camp vs mine site thing I knew, CBC Radio called wantHaving worked in both exploration Beers, the first of which required moving to run a story about panning for ing the exploration camp every 10 camps and on site at the mine, gold in the Eastern Townships. I days. Her next stop was the Fort à la Rameseder says she has experienced the best of both worlds. “At the camps, thought it was a joke, but it was real.” Corne camp in Saskatchewan, where your roles are so diverse and you’re she remained until 2006. There, she Camp life was the on-site rep responsible for dealing with all aspects — geology, Rameseder’s career began like that ensuring the 120-person camp ran logistics, HR and so on. I had to make of many geologists — at an explosmoothly, and for overseeing the entire sure there was enough fuel and food to ration camp. In 2001, she found herworkflow that defines an exploration keep everyone happy and the camp self exploring the territories while project in the field. running. Meanwhile, at the mine, I’m working for De Beers; she continued working with the different departments After five years of working in the this work throughout the next few field out west, Rameseder came to and sometimes see myself as the mediyears. “One of the reasons why I came ator between mining and processing.” Toronto — but it turned out to be a back up north was because I’m fasciA key difference between the two brief stint. In 2007, she headed to the nated by helicopters,” she admits. “I’d De Beers Victor operation in northern situations lies in the increased amount fly in on a helicopter every day and of structure at a mine site. Out in the Ontario to run the exploration prostay in exploration camps. I particismall exploration camps, solutions are gram while the mine was under conpated in summer programs and winter struction. Today, she remains at Victor, engineered using only the tools, techdrilling initiatives. I now have a albeit now as the senior mine geologist. nology and personnel available on site. 100 | CIM Magazine | Vol. 5, No. 8

Photo courtesy of B. Rameseder

Heather Ednie

women in mining | COLUMNS “It’s like the Red Green Show — you figure it out and make a solution happen,” Rameseder notes. “At the mine, however, you have to follow certain channels and there is much more structure. It took me about a year to get used to that.”

Grabbing the bull by the horns Never one to shy away from a challenge, Rameseder has made a practice of taking advantage of opportunities as they arise. Recently, she has started a training program on the valuation of rough diamonds. “I learned early on that you need to show an interest and do your best, or just make it happen yourself,” she says. “Take my training in diamond valuation — I showed an

interest and asked for exposure or training. My supervisor was open to it when the opportunity arose.” At Victor, Rameseder is on a twoweek on/two-week off rotation, and her home base is Toronto. Many of her weeks off, though, have been spent travelling to Singapore, Asia, Honduras and home to Germany — until recently. Rameseder has started an executive MBA program at the University of Western Ontario, adding fulltime studying to her load for the duration of the 18-month program. Rameseder might have chosen geology as a career, but it is not what she had set out to do. “I wanted to study archaeology after reading books on the Valley of the Kings, but realized there

weren’t any jobs. I tried different routes, and found a new path.” And so far, that path has been carved out of the Canadian tundra. Yet, all of the moving around has not phased her. “It’s funny, during my 12 years in Canada, I’ve had four health cards and four driver’s licences,” she jokes. So, what’s next? Always open to opportunity, Rameseder does not lock herself down to major long-range plans. “Where will I be in five years? I’m not too sure, honestly,” she says. “Again, I’ll play it by ear and see what comes up. I’ve learned that if you map out too many plans, you’re set up for nothing but disappointment.” And so far, this invigorating approach has worked wonders. CIM

December 2010/January 2011 | 101

COLUMNS

| canadians abroad

Mining Santa’s workshop Agnico-Eagle’s Plummer works among the reindeer in Finland Heather Ednie In the fall of 2008, Carol Plummer was relocated to Agnico-Eagle Mines’ (AEM) Kittilä operation in Finland, where she embraced the challenges of life across the seas. The former mine manager at AEM’s Lapa Division in Quebec was to oversee the completion and commissioning of surface facilities, mine and pit development, and the safe startup of the 3,000 tonne per day gold operation. Life in the Arctic Circle presented plenty of highlights and challenges, but Plummer had the savvy and smarts to make the best of them and enjoy the experience. Sending Plummer to Finland to run the Kittilä operation in its first years of life was a strategic move for AgnicoEagle; a Canadian mine manager would ensure the company culture would be developed overseas. “Our company culture is based on competence and respect, thus it translates well globally,” Plummer explains. “Agnico-Eagle has gone from having one mine to six mines in the last few years. Key people have been transferred from the core group to each of the new mines, to assist with the transfer of AEM culture.”

Babel fish Plummer thrived for many years in the bilingual environment of Agnico-Eagle’s Quebec operations, but language was more of a barrier at Kittilä. Finnish is a difficult language to learn, as neither the vocabulary nor the grammar resembles English or French. “Although I have learned some words, I am not able to speak or understand Finnish,” she admits. Plummer says she would prefer to speak the same language as the employees as it would foster communication and understanding. “Since that’s not possible, we find other ways. We have two full-time translators on site, with the goal of ensuring clear communication and that new procedures meet the needs of both the operators and our AEM standards.” Plummer’s appetite dictated some of the first Finnish she learned. “In grocery stores, you have to weigh your own fruits and vegetables, and put the price sticker on the bag,” she explains. Having to sort through a number of bins and stickers to find the correct code can pose quite the challenge. “Once I learned my colours it became much easier to pick the correct code for red peppers versus yellow or green ones.” 102 | CIM Magazine | Vol. 5, No. 8

Selecting meat was an even greater shopping challenge. Several times Plummer thought she was buying pork and it turned out to be ham. “This also happened with a turkey breast and something I am still sure was a roast beef,” she recalls. “My husband would ask what was for supper and then add, ‘are you sure?’ For the first six months here, I would often say ‘I think we are having…’ and we’d see once it came out of the oven.”

Home away from home The Kittilä Mine is located 150 kilometres north of the Arctic Circle, but in terms of flora and fauna, infrastructure and services resembles northern Quebec and Ontario, which are home to Plummer. “There are lots of trees, lakes, hills and wildlife,” she explains, although some of the wildlife differs from the critters spotted near Val-d’Or. “The reindeer are all owned by the local people, but are allowed to roam free for most of the year to forage. Thus, it is common to be caught in a ‘reindeer traffic jam’ on the way to work as they wander along the road.” One key advantage is found at the local airport — a portal to Europe — which boasts regular flights to Helsinki yearround and direct international flights during the high season. “We have enjoyed visiting a bit of Europe while living here,” she confesses. “I still enjoy telling people that last year we flew to Paris for the weekend. We left Kittilä after lunch and were there in time for supper! This is not something that you can do from Canada … unless you have access to a private jet.”

The right ingredients The mining industry in Finland has been slow for a number of years, leading to a shortage of miners, operators and engineers. However, although there were few people with mining experience available when AEM began to build the mine, the Finnish workers in general are well educated and eager to learn and adapt. AEM quickly found a solution — they hired a variety of people who were interested in learning, along with a handful of key individuals with a lot of experience. “We started training programs well before the mine opened and brought in experienced operators from Canada for a short period to help with the start-up,” Plummer adds.

canadians abroad | COLUMNS

Photo courtesy of C. Plummer

a couple of days beforehand — it works, but takes away from the spontaneity.” Plummer, her husband Denis (who is one of the mine’s safety counsellors) and their border collie have embraced the experience wholeheartedly, but she admits it has not always been easy. “My husband and I found it difficult to be so far from our families, especially our two grandsons,” she explains. “I might consider an overseas assignment again in the future, but would like to spend a few years based in Canada while my grandchildren are small.” Plummer has recently returned to Quebec as general manager of the Kittilä expansion project, and is building on the knowledge she gained while in “reindeer land.” “Kittilä is the largest mine I have been in charge of, and it is also the first time I have had an operating mill in addition to the mine,” she says. “I am sure that all of this will serve me well in my future career.” CIM

Reindeer roaming free.

An additional perk to operating in Finland is that the educational system there is very open to providing services to the mining industry by holding courses to meet specific needs. “We have hired people from trades courses, supervisor training courses and currently have four engineers who graduated in other fields completing a mining engineering course at the University of Helsinki,” Plummer says. In essence, Finland’s workforce is willing and able to “train up” to the high standards AEM demands. According to Plummer, the similarities between Canada and Finland are many, especially in terms of peoples’ values and interests. “As with our employees around the world, people take pride in a job well done,” she explains, adding that family, sports, hunting and fishing are all important to AEM employees in both countries. “Last year, both the Olympics and hockey playoffs were a major topic of conversation,” she recalls. “There was lots of joking and friendly competition between the guys in the hockey pool.”

Needing a red-nosed reindeer The move overseas was not without its challenges. Plummer says living in the Far North, with 24-hour daylight in the summer and 24-hour darkness in the winter, can be tough. “The daylight is great, since I can go out cycling in the early morning with full sunlight and no traffic,” she says. “However, the darkness of the winter is difficult to get used to. I find that during the week it is fine, since I am used to arriving at the mine in the dark and leaving in the dark during Canadian winters. But the weekends are a bit different, when you are looking out the window at noon into a deep dusk that makes your body think it is only 6 a.m.” Another challenge arises from the time difference (seven hours with Montreal and Toronto), which makes keeping in touch with family and friends difficult. “Skype is a wonderful thing, but people have to have their computers turned on for it to work,” she laughs. Gone are the days of ringing up loved ones in the evening for a chat. “Instead, I catch people when they are lingering over coffee on a weekend morning, by which time we are getting ready for supper,” she explains. “Sometimes we set up a time to call via email December 2010/January 2011 | 103

COLUMNS

| student life

Sending the right person for the job The need for engineers to serve as recruiters

Credit: Marc Robitaille. Picture provided by Laval University’s placement centre.

Kévin Breault

Students during their internship in a pharmaceutical laboratory.

Internships are as beneficial to companies as they are to the interns. They allow students to experience the day-to-day running of an operation, acquire and improve skills, grow their knowledge base and establish industry contacts that will serve them throughout their careers. Internships also give employers the opportunity to see students in action, train them to their standards with a goal of potentially recruiting them as future employees. So, in light of all these benefits, why is it that so many companies send HR personnel instead of engineers to universities to do their recruiting? As president of my university’s chemical engineering student society, I monitored all of the internships my colleagues completed throughout the past two years. In response to numerous negative comments from students about the hiring process, the difficulty in reaching supervisors before the internships began and not being assigned hands-on tasks, I, along with the university’s placement centre and 104 | CIM Magazine | Vol. 5, No. 8

the chemical engineering department, looked into identifying the root cause of the problems. One of the commonalities we discovered was that all of the “unsuccessful” internships were carried out at companies who had sent HR personnel to the campus to do their recruiting. With this in mind, I contacted these companies and suggested that, in the future, it might be beneficial to send engineers to recruit students. Although the idea had already occurred to them, I was told that it is easier to send HR personnel because engineers often work at great distances from university campuses and as such, their work schedules didn’t allow for the time away. Very few companies seem to truly understand the importance of sending the right people — the ones who can actually speak about the specifics of a job when talking to students. Some even send

young HR personnel and equip them with informational lists, but again, their knowledge of the specifics is limited. Sticking to useless criteria, forgetting important aspects of a job, not knowing explicitly what a supervisor is looking for; these all affect the success of recruitment efforts. Based on my observations, when HR personnel recruit students, the success rate of studentcompany pairings hovers around 10 per cent. However, when engineers do the recruiting, success levels are much higher, with some exceptions, of course. I am convinced that it would be beneficial to companies to invest their engineers’ time in recruitment efforts. I also think that the best people to send are the young engineers, having recently graduated from university themselves — they know the ins and outs of the job and know what information matters most to students. However, they do need to be open to speaking with candidates in other fields, as jobs could easily be accessible to students in other disciplines. If costs are a factor for employers, they could approach recruitment fair participation logistically, piggybacking it to employee vacation time. In the face of a human resources crisis, there has never been a better time for companies to revisit their approach to recruiting. Finding the right fit for the right job will save the company time and money in the long term. It is an investment worth making. CIM

Author Kévin Breault is a chemical engineering student at Université Laval graduating in December 2010. He based this article on his past experience with HR personnel in his two consecutive roles as president of the student society.

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 demanddriven production scheduling and geological risk. Instructor: Roussos Dimitrakopoulos, McGill University, Canada • Date: May 2011 • City: Montreal • 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 available. Instructor: Cindy Tonkin, Gemcom, Australia, Roussos Dimitrakopoulos, McGill University, Canada, and Gerald

Whittle, Whittle Consulting, Australia • Date: May 31-June 3, 2011 • City: Montreal

An Introduction to Cutoff Grade Estimation: Theory and Practice in Open Pit and Underground Mines Cutoff grades are essential in determining the economic feasibility and mine life of a project. Learn how to solve most cutoff grade estimation problems by developing techniques and

graphical analytical methods, about the relationship between cutoff grades and the design of pushbacks in open pit mines, and the optimization of block sizes in caving methods. Instructor: Jean-Michel Rendu, Executive Consultant, Snowden, Australia • Date: September 7-9, 2011 • City: Montreal

Geostatistical Mineral Resource/Ore Reserve Estimation and Meeting the New Regulatory Environment: Step by Step from Sampling to Grade Control Learn about the latest regulations on public reporting of resources/reserves through state-of-the- art statistical and geostatistical techniques, how to apply geostatistics to predict dilution and adapt reserve estimates to that predicted dilution, how geostatistics can help you categorize your resources in an objective manner, and how to understand principles of NI43-101 and the SME Guide. Instructor: Marcelo Godoy, Golder Associates, Chile, Jean-Michel Rendu, Executive Consultant, Snowden, Australia, and Roussos Dimitrakopoulos, McGill University, Canada • Date: September 12-16, 2011 • City: Montreal

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

From radium to uranium The changing face of Eldorado Correy Baldwin

ould you consider using toothpaste laced with radium? Apparently it makes your teeth whiter. Or so it was thought in the 1920s, when radium was seen to hold vast medicinal and rejuvenating powers. Twenty years after the French physicist Marie Curie discovered radium in 1898, radiumbased medicines and other products were taking the world by storm. Radium was seen as a miracle cure for cancer, although over-the-counter drugs were widely available as well, the most popular being, unfortunately, radium-enriched suppositories. Radium also found its way into drinking water, bath water, cosmetics, perfume and chocolate. It could even boost sexual virility — to be taken (again) as a suppository or by An advertisement for Tho-Radia, a radioactive face cream use of the disturbingly named Scrotal Radiendocrinator, a sort of Canadian prospector discovered radioactive athletic strap. pitchblende — a uranium-bearing ore This may sound ludicrous to us — on Great Bear Lake in the Northnow but at the time, the harmful west Territories. effects of radiation were not known. Quite the opposite — the commer- The rise and fall of Canadian cial potential of radium was radium Quebecois brothers Gilbert and immense, and its economic value likewise. By the 1930s it was worth Charlie LaBine had taken what capital $75,000 per gram, more than gold or remained from their failed Eldorado gold mine in Manitoba and turned to diamonds. At the time, Belgium had a monop- prospecting the Canadian North. The oly on this lucrative market: extract- venture paid off when Gilbert’s pitching radium from its rich uranium blende discovery turned out to be one deposits in the Belgian Congo. But of the richest known uranium this changed in 1930 when a deposits in the world. 106 | CIM Magazine | Vol. 5, No. 8

Together, the LaBine brothers set about opening the Port Radium Mine on Echo Bay. They also built the Eldorado radium refinery, converting an abandoned seed mill on the harbour in Port Hope, Ontario — a location that provided them access to the railway and plenty of water, which was necessary for the refining process. When Eldorado opened for production in 1933, it was the only radium refinery in North America. The refining process was intensive. Pitchblende only contains extremely small quantities of radium, and many tonnes of the ore were required to produce even a gram of radium. In its first year, Eldorado shipped 74 tonnes of ore across the country, from which a little more than three grams of radium were produced. But at $75,000 per gram, it was worth it. Or was it? It was not long before people came to realize the horrible effects of radiation exposure. For the people who used radium-enriched products, for Eldorado’s miners and refinery workers, and for the Dene men hired to carry cloth sacks of radioactive ore from the mine to the shipping sites — for anyone who was exposed to the radium — it was not worth it. As people fell ill, the market for radium-enriched products collapsed and the price of radium plummeted. In 1940, Eldorado was forced to close its Port Radium Mine.

The Manhattan project comes calling But this would not be the end of Eldorado. The onset of the Second World War had thrown commercial markets into disarray, contributing to Eldorado’s woes, but it would also provide the company with a new life. The war had fuelled the nuclear arms race — a race that began when German scientists discovered that splitting uranium atoms released massive amounts of energy. When the American government sought a reliable supply of uranium for their own nuclear weapons program, they turned to Canada, and to Eldorado. Eldorado was set to answer this call; until then, uranium was simply a waste product of radium refining,

and the Eldorado refinery was surrounded by mounds of yellow uranium tailings. But this was not the golden age of the free market. When Eldorado was contracted to supply the United States with uranium, the Canadian government took control of Eldorado, and of the contract — and did it all in secret. Likewise, all prospecting, mining and processing of uranium came under government control. The Port Radium Mine was reopened and the Port Hope refinery went back into production, all under a veil of secrecy. Even the employees were kept in the dark about what they were working on, and where the uranium would end up. When the nuclear bombs fell on Hiroshima and Nagasaki in 1945, effectively ending the war, the

Eldorado workers were oblivious to the part they had played. Although the Second World War was now over, the Cold War was just beginning, and the demand for uranium was higher than ever. Eldorado — by now an official Crown corporation — continued to supply uranium to the U.S. Atomic Energy Commission. Eldorado prospered throughout this period and was finally decommissioned in 1984. Although the company was a success, it left behind a questionable legacy. The Scrotal Radiendocrinator has long faded from memory, but it is less easy to ignore the key role that Canadian uranium played in the Second World War, as well as the controversy over the fate of Eldorado’s radioactive waste, which continues to haunt Port Hope residents today. CIM

T H E 150 BE ONE OFARTICIPANTS AT SELECT P

L2 MONTREA

VANCOUVER2010

a great success FACE TO FACE: BUSINESS “SPEED DATING” NOT TO BE MISSED TUESDAY, MAY 24, 2011

01 1

80% of participants said Face to Face was an excellent business meeting 85% of participants developed new business contacts

FOLLOW THESE LEADERS AND EXPAND YOUR BUSINESS NETWORK: “The first edition of Face to Face in Vancouver exceeded our expectations. We believe the Montreal 2011 event will yield even greater results.”

“The Face-to-Face format is excellent and I believe it has a promising future. Our industry will embrace Face to Face and we, at Endress+Hauser, will be supporting this initiative.”

Jean Béliveau General Manager Kittilä Mine Agnico-Eagle Mines Limited

Roland Quenneville Business Development Endress+Hauser

www.cim.org/montreal2011 abellefeuille@cim.org

December 2010/January 2011 | 107

UNE RESSOURCE UTILE POUR L’INDUSTRIE FAITS SAILLANTS DU SONDAGE AUPRÈS DES LECTEURS 2010

uels sujets les lecteurs souhaitent voir abordés plus souvent et moins souvent? Quelles améliorations apportons-nous ponctuellement pour répondre à ces demandes? Que pouvons-nous améliorer? Tout rédacteur s’efforce de répondre à ces questions chaque fois qu’il doit traiter un nouveau sujet et qu’il fait face à une page blanche. Le processus visant à déterminer la liste d’articles pour l’année à venir s’étale sur plusieurs mois et tient compte de nombreux facteurs. Parmi ceux-ci, figurent principalement les commentaires recueillis auprès des lecteurs, que ce soit en personne ou par courriels, par téléphone et parfois même par lettre manuscrite. Toutefois, l’outil le plus complet dont nous disposons pour évaluer la satisfaction des lecteurs est le sondage, réalisé tous les deux ans.

Une industrie en constante évolution Le sondage auprès des lecteurs 2010 de CIM Magazine a révélé quelques changements surprenants, notamment sur le plan des données démographiques. Le nombre de lectrices a augmenté de 5 % par rapport à 2008. Les efforts soutenus visant à attirer un lectorat plus vaste et plus varié se sont également traduits pas une hausse de 8 % du lectorat de moins de 25 ans, et de 5 % de celui entre 25 et 34 ans.

Combien de numéros lisez-vous en moyenne?

Plus de la moitié

2008

2010

VARIATION

52 %

67 %

+15 %

CIM fournit des renseignements qui sont utiles à ma profession.

D’accord/ Entièrement d’accord

2008

2010

VARIATION

59 %

72 %

+13 %

CIM fournit des renseignements utiles.

D’accord/ Entièrement d’accord

2008

2010

VARIATION

74 %

82 %

+8 %

Un nouveau contenu amélioré Le contenu rédactionnel est l’élément essentiel d’un magazine. Au cours des dernières années, CIM Magazine a apporté un certain nombre de changements et d’améliorations axés sur l’augmentation de la qualité et du contenu des publications, notamment : O Accroître le nombre, la variété et la qualité des sources; O Intégrer davantage de renseignements analytiques et techniques; O S’assurer que les collaborateurs se trouvent dans une région clé pour les comptes rendus directs; O Établir un modèle plus structuré; O Ajouter une nouvelle section « Upfront ». D’après l’augmentation de la satisfaction du lectorat, nous sommes convaincus d’être sur la bonne voie.

L’un des répondants au sondage a déclaré ce qui suit : « CIM représente ma meilleure source d’information sur l’industrie, non seulement sur le plan technologique, mais également sur les aspects historique et social. » Un autre répondant a indiqué ceci : « Les articles techniques en français du CIM Magazine m’ont aidé à me familiariser avec les termes techniques français du secteur minier. Je n’ai pas accès à cette terminologie à l’université. » Nous avons observé une hausse significative au chapitre des sujets d’intérêts, la plus marquante étant une augmentation de 45 % du nombre de personnes lisant la section « Features », ce qui vient confirmer cette tendance.

Sujets d’intérêt 2008

2010

38%

83%

+45

« Student Life/Vie étudiante » 12%

24%

+12

« Engineering Exchange »

22%

34%

+12

« Canadians Abroad »

21%

27%

« Mining Lore »

43%

47%

« Safety »

24%

28%

« Features »

% (+/–)

Le lectorat estime que le contenu de CIM Magazine est une ressource précieuse

82 % SONT D’AVIS QUE CIM MAGAZINE LEUR FOURNIT DES RENSEIGNEMENTS PRÉCIEUX

Autres faits saillants du sondage Les thèmes les plus populaires : 83 % 73 % 70 % 52 % 49 % 47 % 47 % 44 % 38 % 35 %

« Features » « Technical Section » « Technology » « News » « History » « Innovation » « Mining Lore » « New Frontiers » « Voices from Industry » « Eye on Business »

72 % Consultez le calendrier éditorial de 2011 maintenant offert en ligne

www.cim.org

68 %

Nos lecteurs se trouvent au début de leur carrière : 90 % 70 % 65 % 56 % 48 %

ont un diplôme universitaire de deuxième ou de troisième cycle sont cadres (un sur quatre occupe un poste de cadre supérieur) ont entre 25 et 59 ans gagnent plus de 100 000 $ par année ont entre 35 et 59 ans

Principaux domaines d’activités des répondants : 17 % 17 % 17 % 9 % 7 % 7 % 4 %

PRIX

Une inscription complète au Congrès et Salon commercial 2011 de l'ICM (valeur approx. 1 000 $) Pat Dwyer, CALGARY, ALBERTA

CONSERVENT LES MAGAZINES POUR CONSULTATION ULTÉRIEURE

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cim news CMMF: Moving in new directions By Marlene Eisner

For the last 38 years, the Canadian Mining and Metallurgical Foundation (CMMF) has been nurtured and run by a dedicated group of industry professionals. Relying on volunteers has its positive side — virtually all funds raised go to drive the Foundation’s mission to support educational activities — but it also has its challenges. Recent events have allowed the Foundation to rise to those challenges with a winning solution. “A substantial gift from McIntosh Engineering was received, as well as a bequest from the Hurd estate and help from CIM,” explains CMMF manager, Deborah Smith-Sauvé. “Those three things gave the Foundation the support it needed to hire someone, so I came on board in April.” With 25 years of experience in administration, communication and fundraising under her belt, SmithSauvé is exactly what the Foundation was looking for to help move it forward to new levels. Upon her arrival, she evaluated the situation and decided it was time for a major overhaul. “When I looked at what needed to be done, I said ‘everything,’” she says with a chuckle. The main objective was to update communication and marketing tools to spread the word about the Foundation and promote its work. “People have to know what we do, who we represent, how their funds are going to 110 | CIM Magazine | Vol. 5, No. 8

be managed and why they should give to us,” explains Smith-Sauvé. “They want to know why your charity is worth their support.” “There was no one here to take care of it,” she adds. “I am a professional fundraiser and I love it. I also love people, and fundraising is about people and about making friends.” Smith-Sauvé has launched the first edition of the CMMF newsletter, and the new website will soon be up and running. She has also initiated the first official “giving campaign” where the Foundation will actively go and ask people to give. Within the campaign is a component called gifts of security — such as flow-through shares, stocks and bonds, which Smith-Sauvé is excited to promote. “Flow-through shares are a great gift since they have extra incentives and are particular to the industry in the area of mineral exploration,” she says. By transferring stock, donors receive a greater tax benefit, while the

Foundation can then decide to keep the stock, or sell it immediately. “Each portfolio is different and I always send people to their stockbrokers or portfolio managers so they can advise them,” she adds. “I want what’s best for the donor, so they can give the best gift that’s good for them.” Looking forward to 2011, the Foundation will be examining its scholarships, and Smith-Sauvé says the goal is to expand and promote them, as well as raise funds to support more requests by organizations. “Next year, we want more people to apply to all of our scholarships so we have a better pool to award the scholarships to,” she says. “The goal is to be as instrumental as we can be, more front and centre, more present, and participate more in conferences, so people can come and meet with us.” Communication, outreach, promotion and education — this is a solid pathway towards helping the Foundation grow. CIM

FCMM : Une nouvelle direction Depuis 38 ans, la Fondation canadienne des mines et de la métallurgie (FCMM) est dirigée par un groupe de professionnels du secteur qui veillent avec dévouement à son développement. Le fait de compter sur des bénévoles comporte des avantages — pratiquement tous les fonds recueillis sont utilisés par la Fondation pour remplir sa mission qui est de soutenir les activités éducatives — mais aussi des inconvénients. Des événements récents ont permis à la Fondation de relever ces défis à l’aide d’une solution gagnante. « Nous avons reçu un don important de McIntosh Engineering, ainsi qu’un legs de la succession de Donald Hurd et de l’aide de l’ICM. Ces trois choses ont fourni à la Fondation le soutien financier dont elle avait besoin pour engager quelqu’un, c’està-dire moi, qui suis entrée en fonction

en avril », indique la directrice de la FCMM, Deborah Smith-Sauvé. Mme Smith-Sauvé, qui cumule 25 années d’expérience en administration, en communication et en collecte de fonds, incarne exactement l’aide dont la Fondation avait besoin pour la propulser vers de nouveaux sommets. Dès son arrivée, elle a décidé, après avoir évalué la situation, que le temps était venu de procéder à une grande réorganisation. « Quand j’ai examiné ce qui devait être fait, je me suis dit “tout” », précise-t-elle avec un petit rire. Le principal objectif était de mettre à jour les outils de communication et de marketing qui sont utilisés pour faire connaître la Fondation et promouvoir ses activités. « Les gens doivent savoir ce que nous faisons, qui nous représentons,

MIS

devient

cim news

M4S

LE TRÈS ACCLAMÉ SALON MINES DANS LA SOCIÉTÉ ARBORE UNE NOUVELLE IDENTITÉ ET VOUS POUVEZ INFLUENCER LA MAIN D’ŒUVRE DE DEMAIN AUJOURD’HUI. Renommé M4S pour mieux refléter la totalité des activités minières à travers les mines, minéraux, métaux et matériaux, sa mission demeure d’éduquer le public sur l’impact qu’a l’exploitation minière dans notre vie quotidienne. M4S, à sa 6e édition, est l’endroit idéal où informer les gens du public des possibilités de carrières dans l'industrie minière.

VOTRE PARTICIPATION À M4S EST GRATUITE! Organisé dans le cadre du congrès et du salon 2011 de l'ICM, l'événement canadien par excellence, le salon M4S permet aux organisations de faire preuve de leadership dans tous les aspects du cycle minier, dont : Exploration, Traitement, Transformation et produits, Exploitation, Développement durable, Éducation, Sécurité, Arpentage, Uranium.

l’Institut canadien des mines de la métallurgie et du pétrole

comment leur argent sera administré et pourquoi ils devraient nous faire un don. Ils veulent savoir ce qui rend notre œuvre de bienfaisance digne de leur soutien », explique Mme SmithSauvé. « Il n’y avait personne ici pour le faire. Je suis une spécialiste du financement et j’adore les collectes de fonds. J’aime les gens, et ce qui compte dans une activité de financement, ce sont eux, ainsi que les nouveaux amis que l’on peut rencontrer. » C’est à Mme Smith-Sauvé qu’on doit la première édition du bulletin de la FCMM et la création du nouveau site Web qui sera mis en ligne sous peu. Elle a également lancé la première « campagne de dons » officielle dans le cadre de laquelle la Fondation sollicitera activement les gens pour qu’ils fassent un don. La campagne comprend également un volet axé sur le don de valeurs mobil-

Pour participer à M4S du 23 au 25 mai 2011 à Montréal, communiquez avec Karine Robichaud / krobichaud@cim.org ou (514) 939-2710, poste 1332

ières, telles des actions accréditives, des actions et des obligations, dont la promotion enthousiasme Mme Smith-Sauvé. « Les actions accréditives représentent un don très avantageux puisqu’elles comportent des incitatifs supplémentaires et qu’elles sont une particularité de l’industrie dans le domaine de l’exploration minière », mentionne-t-elle. En transférant des actions, les donateurs bénéficient d’un avantage fiscal plus important, tandis que la Fondation peut décider de conserver les actions ou de les vendre immédiatement. « Chaque portefeuille est différent, et je recommande toujours aux gens de se faire conseiller par leur courtier en valeurs mobilières ou leur gestionnaire de portefeuille. Je veux ce qu’il y a de mieux pour les donateurs afin qu’ils soient en mesure de faire le meilleur don possible pour eux. »

En 2011, la Fondation fera le point sur son programme de bourses d’études dans le but, précise Mme SmithSauvé, de lui donner plus d’ampleur et d’en faire la promotion, tout en recueillant des fonds afin de répondre à plus de demandes de la part des organisations. « L’an prochain, nous voulons, pour l’ensemble de nos bourses, que plus de candidats présentent une demande afin que nous disposions d’un meilleur bassin pour attribuer nos bourses », précise Mme Smith-Sauvé. « Notre objectif est d’être aussi actifs que possible, plus visibles et présents, et de participer à un plus grand nombre de conférences pour que les gens puissent venir nous rencontrer. » Communication, présence sur le terrain, promotion et éducation — voilà d’excellentes façons de contribuer à la croissance de la Fondation. ICM

December 2010/January 2011 | 111

cim news

| distinguished lecturer

Future mineral resource discoveries New knowledge needed for discovery By Alexandra Lopez-Pacheco Having worked for more than 40 years as an exploration geologist, James Franklin remains passionate about ensuring the strength and success of Canada’s mining industry. In fact, although Franklin technically retired in 1998 from his position as chief geoscientist of the Geological Survey of Canada (GSC), where he was responsible for coordinating GSC’s entire scientific program, James Franklin he has been working full time — and often overtime — ever since. Today, he is a director or science advisor at three exploration companies, and sits on numerous boards for professional and scientific groups. His contribution and dedication to mineral resources research and innovation dates back to the beginning of his

career, when he was a professor at Lakehead University and a consultant for Noranda until 1975, when he joined the Geological Survey of Canada (GSC). From 1983 until 1993, he coordinated the GSC’s marine minerals program, an integrated research program that culminated in the discovery of a major deposit at Middle Valley on Canada’s Juan de Fuca Ridge, and two legs of ODP drilling there. Currently, as part of this season’s CIM Distinguished Lecturer Series, Franklin is speaking on the need for a new, collaborative, structured and focused approach to research and knowledge sharing for future mineral resource discoveries. CIM: Why is investing in exploration research and development so important today and going forward? Franklin: What we have to do overall in our industry is become much more efficient at finding deposits than in the past. The success rate per dollar spent is incredibly poor in our business and it’s getting harder to find deposits. Yet, this is important to Canada — the world leader in exploration.

THE CIM-BEDFORD CANADIAN

Young Mining AWARDS Leaders 2011 Call

for Nominations

DO YOU KNOW A YOUNG INDUSTRY VISIONARY, INNOVATOR OR OUTSTANDING ACHIEVER? This is your opportunity to honour and encourage an inspirational young Canadian whose high energy and foresight constantly raises the bar in areas such as operations, emerging technology or team management. Nominees must be either Canadian citizens or landed immigrants, 39 years of age or under, and working for any mining company, engineering or consulting firm, contractor, or supplier in the mining industry, anywhere in the world. Nominators must also work in the industry. Winners will be recognized at the CIM Conference & Exhibition. Visit www.bedfordgroup.com/awards or www.cim.org/awards/CIM-Bedford.cfm for details. Nominate today! Deadline February 26, 2011.

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

cim news

CIM: Is there not a lot of research being done and published? Franklin: The research being done on mineral deposits doesn’t attack the key problems related to discovery as intensively as it could, to explain with greater precision where ore resources can be found. That’s not a criticism of the people doing it, there are just not enough people doing it. CIM: What changes need to take place to improve R&D? Franklin: The Canadian mining industry always knew that improvement wasn’t going to happen unless it takes a stronger leading role in both directing the research and, to some extent, funding it. The wake-up call has come in part because the Australians figured this out way ahead of us. Australia has reorganized its geosciences research, so that it is much better focused than it is in Canada. The Canada Mining Innovation Council, of which I’m a member, is working towards making Canada a leader in research and innovation. We are going to provide a framework of research needs and organize funding to ensure that we obtain the results that will hopefully answer our questions. In other words, we’re not asking researchers to provide the proposals. We’re going to create a set of comprehensive proposals and ask them to bid on or become involved in that research. We’re also going to manage the output of that research in a more firm way, so that the results are delivered to the consumer, i.e. the industry, in a way that makes it more practical to use. No one is arguing about this. The research providers — the universities and government agencies that conduct research, and some private sector groups — are all saying this is great because we’ll finally see a greater involvement by industry. And, for its part, industry is saying that it will finally get done what it thinks needs to be done. CIM: Where are things now with this initiative? Franklin: I’ve been doing this for a long time. This is the third or fourth effort I’ve been involved in trying to

marshal industry, government and universities into one virtual room and say “Look, let’s get it together and see if we can do better.” All the other attempts have failed, because we didn’t create the infrastructure to do this. So, we have to set up an enterprise that is self sufficient, that will meet government and university standards in terms of the quality of work, but the management is going to have to be standalone and that’s going to take money. That’s the cusp of where we’re at right now. CIM

MIS

becomes

CIM: What areas of R&D do you think need to be prioritized? Franklin: We need research in three primary areas. One is a better understanding of the geological models that explain the presence of ore deposits and we need to be able to translate aspects of those models back out into our observational geology. We have lots of people out there mapping. They’re among the best in the world. But are these people equipped with knowledge of the key attributes that explain the presence of ore deposits, those little subtle things that might have affected the rock? Have we got this nailed? No, we don’t. That’s the first part. The second part is we need to develop the tools. We need to think outside of the conventional box of existing technologies. And the third thrust has to do with data. We generate huge amounts of data now. How do we manipulate through that vast amount of information to generate new knowledge that will lead to discovery? We need to improve the way in which we interpret these data, and spend less time on simply archiving and plotting it.

M4S

CIM’S HIGHLY ACCLAIMED MINING IN SOCIETY SHOW BEARS A NEW IDENTITY AND YOU CAN INFLUENCE TOMORROW’S WORKFORCE TODAY. Now in its sixth year of educating the general public about mining, its impact on our daily lives and the wide variety of exciting careers in the industry, this show has been given a new name that better reflects the scope of the industry it promotes: M4S – Mining for Society; the 4 M’s stand for Mining, Minerals, Metals and Materials.

EXHIBITING IN M4S IS FREE! Running in conjunction with the CIM Conference & Exhibition 2011, M4S provides organizations with the opportunity to demonstrate industry leadership in all aspects of the mining cycle to youth, educators, guidance counselors, Aboriginals, women, new Canadians and the public at large. Unlike traditional shows, M4S is composed of themed interactive pavilions including: Exploration, Processing, Products and Fabrication, Mining, Sustainability, Education, Safety, Land surveying and Uranium. To participate in M4S Montreal 2011, from May 23 to 25, contact Karine Robichaud / krobichaud@cim.org or (514) 939-2710, ext. 1332. Canadian Institute of Mining, Metallurgy and Petroleum

December 2010/January 2011 | 113

cim news

| scholarships

2011 CIM student funding opportunities ICM : soutien financier aux étudiants 2011 Paying for school just got easier | Financer ses études est maintenant plus facile

Take advantage of the wealth of scholarships, bursaries and awards available through CIM, its societies and branches, as well as the Canadian Mining and Metallurgical Foundation.

Profitez de la vaste gamme de bourses d’études, bourses de perfectionnements et prix offerts par l’ICM, ses Sociétés et ses Sections, ainsi que la Fondation canadienne des mines et de la métallurgie. Pour une liste complète des opportunités offertes et pour plus d’information sur l’admissibilité et les modalités d’inscription, consultez le

For a comprehensive list of opportunities and more details on eligibility and how to apply, visit

www.cim.org

Scholarships/Bursaries Bourses/Prix

www.cim.org

Amount/Number (Montant/Nombre)

Apply by/ Date limite

For more information/ Pour plus d’information

Sponsors/ Commanditaires

Cobalt Branch CIM Instrumentation Entrance Scholarship Cobalt Branch CIM Mining Entrance Scholarship Walter Bish Scholarship Edmonton Branch Mining Engineering Scholarships Edmonton Branch Resource Industry Scholarship Bourse d’études a l’intention des étudiants en géologie, génie géologique, génie minier et génie métallurgique ICM-TM Bourses d’études à l’intention des étudiants en technologie minérale ICM-TM Bourse de l’Institut canadien des mines, de la metallurgie et du petrole CIM Saskatoon Branch Dependent Children and Student Member Scholarship Program Caterpillar Inc. and its Canadian Dealers Scholarship Scotiabank and Scotia Capital Markets Scholarship Taking Flight Scholarship

$200 (1)

January 15

hillierd@northern.on.ca

CIM Cobalt Branch

$200 (1)

January 15

hillierd@northern.on.ca

CIM Cobalt Branch

$1,500 (1) $2,000 (2)

January 18 January 18

Fpoelzer@nacg.ca homman@ualberta.ca

CIM Coal and Industrial Minerals Society CIM Edmonton Branch

$1,000 (1)

January 18

homman@ualberta.ca

CIM Edmonton Branch

$1,500 (1)

date — 21 janvier

mleroux@cegepth.qc.ca

Section Thetford Mines de l’ICM

$750 (1)

date — 21 janvier

mleroux@cegepth.qc.ca

Section Thetford Mines de l’ICM

$600 (2)

jacqueline.savoie@borealc.on.ca

CIM Sudbury Branch

$5,000 (multiple)

January 31 and September 30 February 15

jade.douglas@wardrop.com

CIM Saskatoon Branch

$2,000 (1)

April 15

dsauve@cim.org

$2,000 (1)

April 15

dsauve@cim.org

CMMF/Caterpillar Inc. and its Canadian dealers CMMF/Scotiabank and Scotia Capital

$1,000 (4)

April 15

smajor@cim.org

CIM Scholarship for RDPC High School Students

$600 (1)

April 30

Thompson Communities Foundation

De Beers Canada and Diavik Diamond Mine (a JV between Rio Tinto and Harry Winston) CIM Thompson Branch

scholarships

Scholarships/Bursaries Bourses/Prix

Amount/Number (Montant/Nombre)

Apply by/ Date limite

For more information/ Pour plus d’information

| cim news

Sponsors/ Commanditaires

D.A.R. Kay Memorial Iron & Steel Section Award CIM Scholarship (Crowsnest) CIM Trades Scholarship Rory Kempster Memorial Earth Science Scholarship John Kovala Memorial Scholarship Hydrometallurgy Undergraduate Scholarship CIM Northern Gateway Branch Student Awards Program CIM Northern Gateway Branch Student Awards Program Student Poster Prize Gordon M. Ritcey Award

$2,500 (1)

April 30

MetSoc@cim.org

$3,000 (1) $1,000 (1) $2,000 (1)

May 1 May 1 May 31

gail.rousseau@sd5.bc.ca gail.rousseau@sd5.bc.ca brose@xstratazinc.ca

$1,000 (1) $2,500 (2)

May 31 May 31

ron.sinkiewicz@goldcorp.com www.hydrometallurgysection.org

$2,500 (1)

June

Guidance Counsellor

CIM Red Lake Branch Hydrometallurgy Section of Metallurgical and Materials Society of CIM CIM Northern Gateway Branch

$ 500 (11)

June

Guidance Counsellor

CIM Northern Gateway Branch

$1,000 (1) $3,000 (1)

July 1 June 15

bfarah@cim.org alam@mun.ca

André Laplante Memorial Scholarship Canadian Institute of Mining (Kamloops Branch) Bursary Canadian Institute of Mining (Kamloops Branch) Bursary Ian Muirhead Memorial Scholarship

$5,000 (1) Varies

June 17 August 31

jzinck@nrcan.gc.ca rallen@smsequip.com

Metallurgical and Materials Society of CIM Hydrometallurgy Section of Metallurgical and Materials Society of CIM CIM Canadian Mineral Processors Society CIM South Central BC Branch

$750 (2)

September 17

www.tru.ca/finaid

CIM South Central BC Branch

$3,000 (1)

September 30

hooman@ualberta.ca

$1,998 (1) $1,500 (1) $2,000 (1) $500 (1) 1st prize $2,000 + Expenses to CMP Conference 2nd prize $1,000 3rd prize= $750 $800 (1)

September 30 September 30 September 30 September 30 October 1

jacek.paraszczak@gmn.ulaval.ca jacek.paraszczak@gmn.ulaval.ca jacek.paraszczak@gmn.ulaval.ca engineering@dal.ca amaratunga@bell.net

CIM Edmonton Branch & Alberta Chamber of Resources & University of Alberta School of Mines CIM Maintenance and Engineering Society CIM Maintenance and Engineering Society CIM Maintenance and Engineering Society The Mining Society of Nova Scotia of CIM CIM Canadian Mineral Processors Society

October 8

financialaid@laurentian.ca

CIM Sudbury Branch

Varies

October 8

financialaid@laurentian.ca

CIM Sudbury Branch

$1,000 (1)

October 15

michelle.snow@cna.nl.ca

CIM Newfoundland Branch

$1,000 (1)

October 15

michelle.snow@cna.nl.ca

CIM Newfoundland Branch

$5,000 (3)

October 15

dsauve@cim.org

CMMF/McIntosh Engineering Inc.

$12,000 (5)

October 15

dsauve@cim.org

CMMF/McIntosh Engineering Inc.

$1,000 (2)

October 23

richard.simon@polymtl.ca

CIM Montreal Women’s Association

$630 (1) $410 (1)

November 25 November 25

christine.cowtan@cambriancollege.ca christine.cowtan@cambriancollege.ca

CIM Sudbury Branch CIM Sudbury Branch

$1,150 (1)

November 25

financialaid@laurentian.ca

CIM Sudbury Branch

$750 (1) $1,500 (1) $3,000 (1)

date -25 novembre date -25 novembre November30

mbruneau@cablevision.qc.ca mbruneau@cablevision.qc.ca dsauve@cim.org

Section Harricana de l’ICM Section Harricana de l’ICM La Fondation canadienne des mines

$2,500 (1)

December 4

sf.mctavish@sympatico.ca

CIM Canadian Mineral Processors Society Toronto Branch

Centennial Scholarship J.D. Pat Patterson Memorial Scholarship Ken Hildebrant Memorial Scholarship Donald W. MacFadgen Memorial Scholarship CMP Essay Contest

CIM (Sudbury Branch) Rudolph (Rudy) Kneer Memorial Bursary CIM - Maintenance Division Bursary for Engineering Canadian Institute of Mining, Metallurgy and Petroleum Bursary (Newfoundland Branch) Canadian Institute of Mining, Metallurgy and Petroleum Entrance Scholarship (Newfoundland Branch) McIntosh Engineering Scholarship - technical (three year program for underground mining) McIntosh Engineering Scholarship - university (four year program for underground mining) CIM Montreal Women’s Association Scholarships Jim Harling Memorial Bursary Canadian Institute of Mining and Metallurgy Bursary (Sudbury Branch) Canadian Institute of Mining and Metallurgy Bursary (Sudbury Branch) Les bourses d’études Roch Bélanger Les bourses d’études Roch Bélanger Bourse Irene et Arthur Foley/ Irene and Arthur Foley Scholarship for Polytechnique et de la métallurgie Toronto Branch Canadian Mineral Processors Mineral Processing Scholarship

Iron and Steel Section of the Metallurgical and Materials of CIM CIM Crowsnest Branch CIM Crowsnest Branch CIM New Brunswick Branch

cim news

| award winner

Easing into retirement Phil Olson’s dedication to industry is far from waning By Correy Baldwin

It was a love of the outdoors that first drew Philip Olson, this year’s Julian Boldy Memorial Award recipient, to geology. Olson studied geology at the University of Saskatchewan, the province to which his family moved during his youth to work in the potash industry. He also met his wife in Saskatchewan. He has, he says, “developed an attachment to this province where the outdoors is never far away and rarely obscured by trees.” Olson went on to a varied and impressive career in exploration geology. The field suited him; not only did it provide opportunities for working outdoors, but it allowed him to work “in a field that is challenging but on occasion returns meaningful rewards.” After working throughout central and eastern Canada, he eventually returned to Saskatchewan in 1996 to explore for gold with Claude Resources. “I would be remiss,” says Olson, “if I didn’t acknowledge the freedoms Claude gave me in participating in local and regional associations.” He served for three years as a councillor for the Association of Professional Engineers and Geoscientists of 116 | CIM Magazine | Vol. 5, No. 8

Saskatchewan and for seven years as exploration chair for the Saskatchewan Mining Association. The latter position naturally led him to join the Saskatchewan Mineral Exploration Government Advisory Committee as co-chair, at a time when the committee was reformulating and revamping the province’s exploration guidelines. “I think I was also viewed as the token representative of junior mining in the Prairies,” says Olson, who was then appointed industry representative to the Mining Technical Advisory and Monitoring Committee — the group that oversaw the refining and implementation of National Instrument 43-101. “It was educational to work with this group to develop a universal set of guidelines that would apply to mineral deposits that were very different in character.” Olson also became actively involved with CIM’s Geological Society, serving as both councillor and field trip coordinator. “Field trips,” he says, “are an integral part of ongoing education.” The importance of education was a sentiment likely first picked up from the memorable summers that he spent during university as a field assistant with the Saskatchewan Geological Survey, learning from “great teachers who were passionate about geology.” After studying at the University of Saskatchewan’s Regina campus, Olson got a taste for working in the field, as an exploration geologist in northern Manitoba. Then came a Master’s of Science degree obtained at the University of Manitoba and further graduate studies at the University of New Brunswick. He then went to northern Ontario, eventually settling down in Timmins for 10 years and finding employment with the Corona group, and then with Giant Yellowknife Mines, Falconbridge

at Kidd Creek, and later Hemlo Gold. Northern Ontario was already home to Olson, who grew up in the mining towns of Red Lake and Elliot Lake while his father worked as a mining engineer in the gold and uranium sectors, respectively. Uranium was Olson’s first connection to the mining industry, and he would return to it years later when he left Claude Resources in 2005 to help launch Titan Uranium Inc., a junior uranium explorer for which Olson served as president, then president and CEO, and finally chairman and CEO. “I don’t think any position in my career was more challenging and fulfilling than my time at Titan,” he recalls. “Uranium exploration, particularly for high-grade deposits in Saskatchewan, is an extraordinarily challenging and expensive proposition. The risk/reward relationship for investment defies logic and the uranium market is opaque.” Titan has capped off a varied and impressive career. Olson’s dedication and strong sense of duty to his field has motivated his involvement in the advancement of exploration geology. He is modest about his accomplishments and quick to acknowledge the contributions of those he has worked with. “I have been fortunate,” he says, “to work in an industry where most fellow workers have been quick to volunteer their time and efforts.” Although Olson retired from Titan Uranium in 2009 after more than 30 years in the industry, he maintained his connection to the industry via directorships with Detour Gold Corporation, Pelangio Exploration Inc., and Prairie Hunter Energy Corp. Olson says he is “easing into retirement,” although he is doing so with well-deserved recognition from his peers. CIM

cim news

CIM’S BLUEPRINT Designing the roadmap to a prosperous and sustainable future By Andrea Nichiporuk

year has passed since CIM first informed its members about undergoing a blueprint exercise, whereby the Institute took a step back, reevaluated its purpose and planned for the future. With a goal of ensuring CIM’s longevity and growing relevance to the global mining industry, a concrete plan of action — a roadmap — was set forth. This elaborate plan cannot be carried out solely at the national level; engaging all of CIM’s constituents is crucial to its successful completion.

Vavrek. “There will be no side-stepping CIM when it comes to everything related to this industry. When you think ‘mining,’ you will immediately think of CIM.” How will this be achieved? By being the community for leading industry expertise. “Our approach to establishing practices and gathering knowledge is becoming more targeted, including doing the necessary research. We’re making a clear commitment to bring solutions to any and all problems. If we can’t help you, we’ll connect you with the people who can,” says Vavrek.

So, what does this mean for you, our members?

Enhancing the CIM experience CIM — your one-stop shop “On the global front, Canada’s mining industry makes a big impact,” says Chris Twigge-Molecey, president of CIM. “Our industry professionals are spread around the globe sharing knowledge and expertise at every conference they attend and at every exploration camp and mine site they visit. However, the impact could be even greater — and this is where CIM comes in.” “The Institute is taking steps that will allow us to provide knowledge, timely information and expertise worldwide,” explains CIM executive director Jean

Every strategic plan set forth by CIM Council since the mid-1990s has reconfirmed the Institute’s initial purpose established back in 1898, that of knowledge sharing, building industry expertise and networking. CIM’s current roadmap strives for the very same thing. Playing a significant part in this undertaking is the overhaul of CIM’s information technology infrastructure — the foundation upon which all of CIM’s practices, processes, services and products will evolve and grow. All things considered, this massive project is moving along fairly smoothly. December 2010/January 2011 | 117

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Major accomplishments to date include: • The visual designs of the new CIM website are complete (see the November 2010 issue of CIM Magazine for a sneak peek). In 2011, this new website, which will be integrated with the new association/ contact relationship management system (CRM), exhibitor management system and document management system, will give all of CIM’s constituents the same level of access and the ability to modify their member profiles directly online. It will also enable them to select attributes and functions to customize their web experience. It will be equipped with a powerful search engine, covering all facets of the site — publications, member information, societies/branches, events, etc. Users will be able to refine searches and accurately find information of true value. • The membership component of the CRM has gone live — a major milestone in the IT project —and CIM’s membership department is now working fully in this new system. Over the coming year, members will be able to customize their profiles allowing CIM to tailor the information, products and services it shares with them according to their specific needs and interests. • The stand-alone version of the exhibitor management system (EXPOCAD and EXPOCAD FX) has been implemented. This tool, now available for the MEMO 2011 exhibition, features an interactive floor plan allowing future exhibitors to select booths more strategically and make their purchases directly online. “Our goal is to help our exhibitors market themselves and their products and services more efficiently,” says CIM deputy director Jean-Marc Demers of the new exhibitor management system. “To this end, we are looking to position our environment as a vehicle to enhance the value and the experience as opposed to simply listing a company profile and contact details.” Through focus groups to be held during the CIM Conference & Exhibition 2011 in Montreal this coming May, CIM will be looking to its exhibitors for feedback on how it can help market them. During the coming year, members can also expect to see: a new integrated peer review system for technical papers, conference abstracts and proceedings; and a new integrated system for nominating members for CIM awards, which will also 118 | CIM Magazine | Vol. 5, No. 8

be used for endorsing nominations and to support the judging process. As the new website and systems will be integrated in stages throughout 2011 (and into 2012), it is likely that, at times, users may find themselves redirected to the old website. This will happen less frequently as time goes by.

Connecting you to the world The tools and systems CIM is putting in place are designed to make it easier for members of the global mining industry to connect and share knowledge and best practices. During the past nine months, CIM has increased its focus on social media to expand its reach and make it easier for people to be involved with the Institute. As the new tools and systems come online, CIM will be expanding beyond traditional membership and moving towards web-based membership services, for a more enhanced and customized experience. “We have no choice but to move in this direction, to become a global player and grow our relevance and reach,” adds Vavrek. “It’s about being an advocate for the industry in Canada and worldwide.” Industry events CIM has also been working hard to develop relationships at home and abroad, partner with other associations on global events and bring international conferences to Canada — and these efforts have paid off. Over the coming years, in addition to its existing conferences — CIM Conference & Exhibition, Conference of Metallurgists (COM), MEMO and Symposium on Mining and the Environment — members will benefit from CIM’s involvement in an expanding range of cohosted international conferences including: • SAG (Vancouver, September 2011) • CIM/SME conference on safety and reliability, 1st edition (Calgary, September 2011) • World Gold (Montreal, October 2011) • China Mining: Finance Mining Day (Beijing, November 2011) • Rock Engineering Symposium (Edmonton, May 2012) • MassMin 2012 (Sudbury, June 2012) • International Mine Management Conference, led by AusIMM (Melbourne, fall 2012) • NorCat Planetary/Space Symposium (Sudbury, 2013; integrated with CIM Conference & Exhibition) • CIM/SME conference on safety and reliability, 2nd edition (Denver, fall 2013) • International Symposium on Automation and Robotics in Construction – ISARC (Montreal, fall 2013) • World Mining Congress – WMC (Montreal, AugustSeptember 2013)

cim news

• Materials Science & Technology Conference and Exposition – MS&T (Montreal, 2013) • International Mine Management Conference, held jointly with AusIMM (TBA, October 2014) • 13th ISRM International Congress (Montreal, 2015) • International Mineral Processing Congress – IMPC (Quebec City, fall 2016) • And even more, so stay tuned CIM will be renewing its efforts on existing initiatives, including safety, corporate social responsibility, environment, reliability, innovation and standards, and will be calling upon its societies and branches to collaborate in these areas. The Institute has also invigorated its commitment to increasing the number of peer-reviewed technical papers at all of its events. Continuing its investment in education and outreach, CIM’s highly acclaimed Mining in Society show (free and open to the general public) is also being revamped and given a new name to better represent the scope of the industry it promotes: M4S — Mining for Society. The four Ms stand for mines, minerals, metals and materials. Paper-based publications Another way CIM connects its members to the global mining industry is through its publications — CIM Magazine, CIM Journal, special volumes, the Online Technical Paper Library, and its website and sub-sites. Keeping its members atop of industry developments and the latest in technical advancements has always been a priority for the Institute and as such, plays a prominent role in the current roadmap. Over the coming years, CIM is planning to publish new technical volumes and possibly update a couple of existing ones, make over 100 years of technical information published in the former CIM Bulletin available online, and continue to grow its flagship publications CIM Magazine and CIM Journal.

One CIM The implementation of new tools and systems will make it easier for CIM to improve its communications and relationships with members, societies and branches. Over the coming three to six months, agreements will be finalized with the societies, branches and CIM Council on governance policies, reporting and accountability. “Our members are our biggest and best asset,” comments Vavrek. “We want to make it easier and more satisfying for all of our members, at every level, to contribute to us, our initiatives and our industry.”

By volunteering time to CIM, industry professionals can accumulate professional development credits (see p. 74 of CIM Magazine’s March/April 2010 issue for details). Areas where you can contribute include: • Confirm key areas of expertise and topics where you see the need for peer-reviewed content. • Send in feedback about our events, publications, initiatives, articles, etc. • Tell us what you need: Should we bring speakers and events closer to you? At what frequency? On what topics? • Identify potential future CIM members or areas to seek recruitment. • Identify key contributors and potential volunteers; the weight of volunteering is too often carried by the same few individuals. • Recruit new people to join your branch or society executive. • Identify individuals who would make great technical paper peer reviewers. • Increase our roster of experts in various subject matter. For example, we are looking to expand our advisory groups and network of experts who can contribute story ideas for CIM Magazine, pull together strong technical sessions at CIM conferences, etc. • Identify events you think CIM should collaborate on, in Canada and abroad. “The best way people can help right now is by encouraging and supporting peers to join CIM, be it at the local branch level, at the national level or as a CYBER member for those residing outside North America,” says Vavrek. Everyone benefits by increasing CIM’s pool of resources. “Being able to tap into the collective brain power that makes up CIM is an asset we need to grow,” he adds. An association is only as good as the people who contribute to it. CIM’s success depends upon all of its constituents banding together towards a common goal — ensuring CIM’s continued success, relevance and growth. CIM

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Notes from the road By Ryan Bergen CIM president Chris Twigge-Molecey recently made a stop in the Mongolian capital of Ulan Bator to meet with members of the newly formed Mongolian Mining Club, faculty and staff members from the Mongolian University of Science and Technology’s School of Mining Engineering, as well as its Mining Institute, a semi-independent research and consulting body. Following a presentation by Twigge-Molecey on CIM, its activities and future plans, the group sat down to discuss potential ways of collaborating. “They showed a particular interest in collaborating on the reconciliation of their reserve and resource standards (which are based on the Russian approach) with JORC and NI 43-101, and they want to understand how to set up a QP qualification,” he said. “Additionally, we discussed CSR and how, in Canada, we reconcile the interests of the local communities with those of the mining companies, which is also a big issue there.”

From left to right: B. Enkhbaatar, Mongolian Mining Club president, CIM president Chris Twigge-Molecey and Baldan Purevtogtoh, director of the Mongolian University of Science and Technology Mining Institute

NE MANQUEZ PAS LA CHANCE DE FAIRE PARTIE DU PLUS GRAND SALON COMMERCIAL DE L’ICM. TOUT PRÈS DE 80% DE L’ESPACE EST DÉJÀ VENDU.

ALMOST 80% OF THE FLOOR SPACE IS SOLD!

VOICI CE QUE DISENT VOS CLIENTS : « Il s’agit du congrès industriel le plus utile auquel j'ai assisté au Canada. Le réseautage était brillant. »

« La conférence était stimulante, l’endroit était

splendide et l'organisation, impeccable. »

“Le Congrès et Salon commercial annuel de l’ICM attire de nombreux participants et tous les secteurs miniers y sont représentés. On y traite des enjeux les plus importants et les plus pertinents de l’industrie minière.”

Pour de plus amples informations ou pour faire une réservation en ligne, veuillez visiter www.cim.org/montreal2011 ou contact Martin Bell: 514.939.2710 ext. 1311, mbell@cim.org 120 | CIM Magazine | Vol. 5, No. 8

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Students and industry mingle at Tastes of Toronto event By Rick Hutson

The CIM Toronto Branch held its 4th annual Tastes of Toronto networking event this past October at the National Club in downtown Toronto. More than 80 students had the opportunity to meet with more than 110 industry executives during an evening of rich conversation shared over drinks and gourmet appetizers. CIM president Chris Twigge-Molecey attended the event and spoke to the group on the Institute’s future direction and priorities. Earlier in the day, the Management and Economics Society of CIM held a Career Options seminar at the Scotia Plaza featuring industry speakers discussing topics pertinent to the students’ future careers in mining. The seminar was followed by the ever-popular “Rick and Larry Show,” where speakers Rick Hutson and Larry Smith provided relevant information on networking, resumé writing, creating effective business cards and other useful career-building tips and hints. The students then headed over to the National Club to put the invaluable advice into action.

The CIM Toronto Branch would like thank the industry sponsors who made this event possible. Because of their generous support, students were able to enjoy this unique event free of charge. The branch looks forward to its next student–industry luncheon mixer to be held on February 24, 2011. Platinum Sponsors: • SNC-Lavalin and Wardrop Engineering Gold Sponsors: • PDAC, IBK Capital, Excellon Resources, FrancoNevada and Kinross Gold Silver Sponsors: • Hatch, Deloitte, De Beers Canada, Aker Solutions, Golder Associates, Northgate Minerals and Zurich Canada CIM

O Author Rick Hutson is the chair of the CIM Toronto Branch.

December 2010/January 2011 | 121

May 23, 2011 Palais des congrés de Montreal Montreal, Quebec Tickets 1.800.667.1246 / www.cim.org

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PLAN DIRECTEUR DE L’ICM Conception du plan directeur pour un avenir prospère et durable

l s’est déjà passé une année depuis que l’ICM a présenté une ébauche du plan directeur à ses membres; l’Institut a pris un peu de recul, réévalué sa raison d’être et planifié pour l’avenir. Ayant comme but d’assurer la longévité de l’ICM et une pertinence croissante pour l’industrie minière mondiale, un plan d’action concret – une feuille de route – a été élaboré. Ce plan détaillé ne peut pas être mis en œuvre uniquement au niveau national; il est impératif de mobiliser tous les secteurs de l’ICM pour réussir. Qu’est ce que cela signifie pour vous, nos membres?

CIM — votre guichet unique

temps approprié et de l’expertise à l’échelle mondiale », explique le directeur exécutif de l’ICM Jean Vavrek. « Vous ne pourrez pas ignorer l’ICM lorsqu’il s’agira de quoi que ce soit relié à cette industrie. Lorsque vous penserez ‘mines’, vous penserez immédiatement à l’ICM. » Comment accomplirons-nous cela? En étant LA communauté pour l’expertise de l’industrie. « Notre approche à la connaissance et aux pratiques devient plus ciblée. Nous nous engageons résolument à trouver des solutions à tous les problèmes. Si nous ne pouvons pas vous aider, nous vous mettrons en contact avec ceux qui le peuvent », dit M. Vavrek.

« À l’échelle mondiale, l’industrie minière canadienne a beaucoup d’impact », dit Chris Twigge-Molecey, président de l’ICM. « Les professionnels de notre industrie sont partout et ils partagent connaissances et expertise à tous les congrès auxquels ils participent et à chaque camp ou site minier qu’ils visitent. Toutefois, cet impact pourrait être encore plus marqué – et c’est là que l’ICM entre en jeu. »

Tous les plans stratégiques émis par le Conseil de l’ICM depuis le milieu des années 1990 ont reconfirmé l’objectif initial établi en 1898, soit de partager les connaissances, accroître l’expertise de l’industrie et le réseautage. La feuille de route actuelle de l’ICM vise exactement les mêmes choses.

L’Institut entreprend des démarches « qui nous permettront de fournir des connaissances, de l’information en

Une partie importante de cette réalisation a été la révision générale de l’infrastructure de la technologie de

Rehausser l’expérience ICM

December 2010/January 2011 | 123

cim news l’information de l’ICM — la base sur laquelle évolueront et croîtront toutes les pratiques et tous les processus, services et produits de l’ICM. Pris dans son ensemble, ce vaste projet progresse bien. Les principaux accomplissements à ce jour comprennent : • La conception visuelle du nouveau site Web de l’ICM est terminée (voir le numéro de novembre 2010 du CIM Magazine pour un aperçu). En 2011, ce nouveau site Web, qui sera intégré avec le nouveau système de gestion des relations avec les associations/personnes-ressources (CRM), le système de gestion des exposants et le système de gestion des documents, donnera à toutes les composantes de l’ICM le même niveau d’accès et la possibilité de modifier leur profil de membre directement en ligne. Il leur permettra aussi de personnaliser leur expérience Web. Il sera muni d’un puissant engin de recherche, couvrant tous les aspects du site — les publications, l’information sur les membres, les sociétés/sections, les activités, etc. Les usagers pourront peaufiner leurs recherches et trouver de l’information utile et précise. • Le volet adhésion du CRM est maintenant en service — une étape majeure dans le projet d’infotechnologie. Au cours de la prochaine année, les membres pourront personnaliser leur profil, permettant ainsi à l’ICM d’adapter l’information, les produits et les services selon leurs besoins et leurs intérêts spécifiques. • La version autonome du système de gestion des exposants (EXPOCAD et EXPOCAD FX) a été mise en service. Cet outil, disponible pour le salon MEMO 2011, comprend un plan interactif permettant aux exposants de choisir les stands de manière plus stratégique et de les réserver en ligne. « Notre but est d’aider nos exposants à mettre en marché leurs produits et leurs services plus efficacement », dit Jean-Marc Demers, directeur adjoint de l’ICM, à propos du nouveau système de gestion des exposants. « À cette fin, nous cherchons à faire de l’environnement un moyen de rehausser la valeur et l’expérience par rapport à simplement afficher le profil et les coordonnées d’une compagnie. » L’ICM cherchera à obtenir de la rétroaction des exposants par des rencontres de groupes ciblés lors du prochain Congrès et Salon commercial 2011 à Montréal en mai prochain. Au cours de la prochaine année, les membres verront : un nouveau système de révision des arti-

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cles techniques par les pairs, des résumés de conférences et un nouveau système intégré pour nommer des membres aux prix de l’ICM; ce système servira aussi pour appuyer les nominations et soutenir le processus de notation. Comme le nouveau site Web et les nouveaux systèmes seront intégrés par étapes, les usagers seront parfois redirigés vers l’ancien site.

Vous brancher au monde entier Les outils et les systèmes mis en place par l’ICM sont conçus pour faciliter le réseautage et le partage des connaissances et des meilleures pratiques entre les membres. Au cours des neuf derniers mois, l’ICM a ciblé encore plus les médias sociaux pour élargir sa portée et faciliter l’implication des gens dans l’Institut. À mesure que les nouveaux outils et systèmes viendront en ligne, l’ICM ira au-delà de l’adhésion traditionnelle vers les services en ligne aux membres. « Nous n’avons pas le choix d’aller dans cette direction, pour devenir un joueur sur la scène mondiale et développer notre pertinence et notre portée », ajoute M. Vavrek. « Il s’agit de parler au nom de l’industrie, au Canada et à l’étranger. » Activités de l’industrie L’ICM travaille aussi à développer des relations au pays et à l’étranger, à former des partenariats avec d’autres associations pour des événements à l’échelle mondiale et pour tenir des congrès internationaux au Canada — et ces efforts ont été fructueux. Au cours des prochaines années, et en plus des conférences existantes — Congrès et Salon commercial de l’ICM, Conférence des métallurgistes (COM), MEMO et le Symposium sur les mines et l’environnement — les membres bénéficieront de l’implication de l’ICM dans un nombre croissant de congrès internationaux, incluant : • SAG (Vancouver, septembre 2011) • Congrès CIM/SME sur la sécurité et la fiabilité, 1re édition (Calgary, septembre 2011) • World Gold (Montréal, octobre 2011) • China Mining: Finance Mining Day (Beijing, novembre 2011) • Rock Engineering Symposium (Edmonton, mai 2012) • MassMin 2012 (Sudbury, juin 2012) • International Mine Management Conference, AusIMM (Melbourne, automne 2012) • NorCat Planetary/Space Symposium (Sudbury, 2013; avec le Congrès et Salon commercial ICM) • Congrès CIM/SME sur la sécurité et la fiabilité, 2e édition (Denver, automne 2013) • International Symposium on Automation and Robotics in Construction – ISARC (Montréal, automne 2013) • World Mining Congress – WMC (Montréal, aoûtseptembre 2013)

cim news • Materials Science & Technology Conference and Exposition – MS&T (Montréal, 2013) • International Mine Management Conference, tenu conjointement avec AusIMM (à communiquer, octobre 2014) • 13th ISRM International Congress (Montréal, 2015) • International Mineral Processing Congress – IMPC (Québec, automne 2016) • et encore plus. L’ICM renouvellera ses efforts portant sur les initiatives existantes, incluant la sécurité, la responsabilité sociale des entreprises, l’environnement, la fiabilité, l’innovation et les normes; l’Institut demandera à ses sociétés et sections de collaborer dans ces domaines. L’augmentation du nombre d’articles techniques révisés par les pairs lors de toutes ses activités sera ciblée. Afin de poursuivre son investissement en éducation et en sensibilisation, l’activité Les mines dans la société (gratuite et ouverte au public) sera restructurée et on lui donnera un nouveau nom qui représentera mieux la portée de l’industrie qu’elle représente : M4S — Mining for Society, les 4 M signifiant mines, minéraux, métaux et matériaux. Publications en copie papier Les publications de l’ICM relient aussi les membres et l’industrie minière mondiale — le CIM Magazine, le CIM Journal, les volumes spéciaux, la bibliothèque en ligne d’articles techniques, son site Web et les sous-sites. L’Institut a toujours eu comme priorité d’informer ses membres sur les développements et les plus récentes avancées techniques; c’est prioritaire dans la feuille de route actuelle. Au cours des prochaines années, l’ICM planifie de publier de nouveaux ouvrages techniques et possiblement une mise à jour d’autres documents, de placer en ligne l’information technique contenue dans la centaine d’années de publication du CIM Bulletin, et de continuer à faire progresser ses publications de premier plan, le CIM Magazine et le CIM Journal.

ment professionnel (voir p. 74 de l’édition mars/avril 2010 du CIM Magazine pour les détails). Vous pouvez contribuer en : • signalant les principaux domaines d’expertise et les sujets pour lesquels vous voyez un besoin de révision par les pairs. • envoyant votre rétroaction concernant nos activités, nos publications, nos initiatives, nos articles, etc. • nous signalant ce dont vous avez besoin : des conférenciers, des activités? À quelle fréquence, sur quels sujets? • identifiant de futurs membres ICM possibles ou les secteurs dans lesquels faire du recrutement. • identifiant les principaux contributeurs et les bénévoles potentiels; ce sont trop souvent les mêmes bénévoles qui font tout. • recrutant de nouvelles personnes à la direction de votre section ou de votre société. • identifiant les individus qui seraient de bons réviseurs d’articles techniques par les pairs. • développant notre banque d’experts en divers sujets. Par exemple, nous cherchons à élargir nos groupes conseils et notre réseau d’experts qui peuvent contribuer des idées d’articles pour le CIM Magazine, planifier de solides sessions techniques lors de congrès ICM, etc. • identifiant les activités auxquelles vous croyez que l’ICM devrait participer, au Canada et à l’étranger. « Pour le moment, la meilleure façon d’aider est d’encourager des collègues à se joindre à l’ICM, à l’échelle de la section, au niveau national ou en tant que membre en ligne pour les personnes à l’extérieur de l’Amérique du Nord », dit M. Vavrek. Tous bénéficieront d’accroître les ressources de l’ICM. « Pouvoir tirer profit du collectif que constitue l’ICM est un actif que nous devons développer. » La valeur d’une association dépend uniquement des gens qui y contribuent. Le succès de l’ICM sera fonction de la concertation de toutes ses constituantes envers un but commun — assurer le succès continu, la pertinence et la croissance de l’ICM. ICM

Un ICM La mise en place de nouveaux outils et systèmes faciliteront les communications et les relations de l’ICM avec ses membres, ses sociétés et ses sections. Au cours des prochains trois à six mois, des ententes seront conclues avec les sociétés, les sections et le Conseil de l’ICM concernant les politiques de gouvernance, de divulgation et de responsabilité. « Nos membres constituent notre meilleur et plus important actif », commente M. Vavrek. « Nous voulons que ce soit plus facile pour tous nos membres, à tous les niveaux, de contribuer à nos initiatives et à notre industrie. » En donnant du temps à l’ICM, les professionnels de l’industrie peuvent accumuler des crédits de développeDecember 2010/January 2011 | 125

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CIM welcomes new members Adeyemi Ilori, Patrick, Austria Akca, Serdar, Turkey Alexander, James, Ontario Alvarez Ibarra, Alfredo, Mexico Arroyo, Fernando, British Columbia Ayewa, Charles, USA Bashir Bhutta, Mubashir, Pakistan Basova, Alexandra, Manitoba Beldinova, Zhanat, Zyrgyzstan Boucher, Marc, Ontario Chavez, Armando, Mexico Collins, Donkor, Ghana Connaughton, Gerry, British Columbia Courtney, Peter, Australia Craig, Anthony, USA Crandall, Thomas, USA da Silva Maia, Geraldo, Brazil Daxberger, Heidi, Ontario Di Ilio, Alexander, Ontario Duncan, Jeff, Ontario Eghbalnia, Maziar, British Columbia Elliott, Tim, United Kingdom Farber, Boris, USA Feathers, Brad, USA Fermaniuk, Brent, Alberta Festa-Bianchet, Andrea, Ontario Fox, Andrew, New Brunswick Geldart, John, Ontario Gercek, Efe, Ontario Gillam, Andrew, British Columbia Gooden, John C., USA Gooden, Gary, USA Harrison, Ed, USA Hornick, Dave, British Columbia Hoskin, Andrew, British Columbia Hynes, Eden, Ontario Iliev, Ilian, Ontario Imeson, Dan, Ontario Iqbal, Muhammad, Ontario Jeltema, Charli, USA

Jonsson, Waldemar, British Columbia Kelly, Colter, Ontario Kemppainen, Juha, Finland Kilpatrick, Richard, Ontario Kirby, Barbara, Ontario Klymowsky, Rene, Germany Knudson, Jordon, British Columbia Kohtanen, Erkki, USA Larsen, Hali, Ontario Laurint, Mark, USA Lecomte, Bradley, British Columbia Leigh, Ellen, Ontario Li, Lin, Alberta Licerio, Tomas, Mexico Linares, Javier, Peru Linnararinne, Harry, Finland Lotz, Pierre, British Columbia Magee, Angelique, Ontario Martin, Steve, USA McAlister, Steve, British Columbia McNamara, Galen, Ontario McVeigh, Robert, New Brunswick Mecir, Tony, Alberta Meghji, Imran, Ontario Melanson, Dave, Ontario Meyers, Michael, British Columbia Miguel, Sabrina, Ontario Mikhaylov, Denis, Austria Murray, Jeff, British Columbia Muzingu Luanda, Michel, South Africa Myers, Tim, USA Mykytyuk, Yuliya, Manitoba Norris, Glenn, Ontario O’Brien, Beverly, Newfoundland Palmer, Lori, USA Paoletti, Lilliana, Ontario Parks, Todd, British Columbia Phillippe, Jean-François, Ontario Pineda, Rene, Ontario Plamondon, Mark, Alberta

Preusse, Mark, Alberta Proulx, Eve-Marie, British Columbia Rabiei Faradonbeh, Moosa, Alberta Renaud, Lisa, Ontario Ristau, Ken, Alberta Safir, Leila, Austria Segovia, Rubén, Switzerland Seidaliyev, Anuar, Kyrgyzstan Shamila, Abdulftah, Alberta Sharma, Jyotsna, Alberta Smith, John, United Kingdom Smith, Colin, British Columbia Stedman, Tom, USA Stewart, Steve, USA Steyn, Louis, USA Strathdee, Greg, Nova Scotia Strickland, Forrest, USA Tahmasebi, Rasool, Ontario Tavakoli Khaledi, Mohammadreza, Iran Tavares, Aline, Brazil Therrien, Steven, Ontario Tom-Ying, Roderick, Ontario Topinka, Greg, Alberta Tuerke, Robert, Ontario Tymstra, Cameron, Ontario Ulyanov, Andrei, Ontario Unruh, David, British Columbia Vardhan Akkineni, Vishnu, United Kingdom Vic, Brian, Ontario Vidal, Paula, Alberta Wang, Xinyi, British Columbia Wasmund, Eric, Ontario Way, Ramsey, Newfoundland Woodward, James, USA Xie, Benjamin, Alberta Youngs, Brian, Ontario Yu Fan, Dong, Manitoba Zheng, Ann, Ontario

Obituaries David H. Anderson joined CIM in 1959 and achieved Life Member status in 1995. He passed away on April 19, 2010. Stephen Brosseau, a member of CIM since 1996, died on September 24, 2010. William E. (Bill) MacDonald joined the Mining Society of Nova Scotia in 1958, was a past president of the society from 1965 to 1966 and became a Life Member in 1993. He passed away on November 10, 2010. John D. Dinsdale became a member of CIM in 1990. Alvin Edgar Storey joined CIM in 1954 and became a life member in 1992. He died on October 10, 2010. Susan Zador, a member of CIM since 1985, died on October 3, 2010.

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CIM CALENDAR OF EVENTS 2011 CALENDRIER DES ACTIVITÉS DE L’ICM 2011

A COMMUNITY FOR LEADING INDUSTRY EXPERTISE UNE COMMUNAUTÉ POUR UNE EXPERTISE DE PREMIER PLAN CONFERENCES/CONGRÈS 43nd ANNUAL CANADIAN MINERAL PROCESSORS OPERATORS’ CONFERENCE

MINING SOCIETY OF NOVA SCOTIA 124th ANNUAL MEETING

43E CONFÉRENCE ANNUELLE DES MINÉRALURGISTES DU CANADA JANUARY 18-20, OTTAWA, ON

www.miningsocietyns.ca

www.cmpsoc.ca

CIM CONFERENCE & EXHIBITION

JUNE 8-11, CAPE BRETON, NS

CONFERENCE OF METALLURGISTS CONGRÈS DES MÉTALLURGISTES COM 2011 OCTOBER 2-5, MONTREAL, QC

CONGRÈS & SALON COMMERCIAL DE L’ICM 2011 MAY 22-25, MONTREAL, QC

www.metsoc.org/com2011

www.cim.org/montreal2011

OCTOBER 2-5, MONTREAL, QC

WORLD GOLD 2011 www.metsoc.org/COM2011/world-gold.asp

THE MAINTENANCE ENGINEERING/MINE OPERATORS’ CONFERENCE COLLOQUE SUR L’INGÉNIERIE DE MAINTENANCE ET L’EXPLOITATION MINIÈRE (MEMO 2011) NOVEMBER 6-9, SASKATOON, SK www.cim.org/memo2011

SYMPOSIUM ON MINES AND THE ENVIRONMENT/SYMPOSIUM ENVIRONNEMENT ET MINES 2011 6-9 NOVEMBRE, ROUYN-NORANDA, QC www.cim.org

NEWFOUNDLAND AND LABRADOR Newfoundland Contact: Len Mandville (lenmandville@gov.nl.ca) City: St. John’s, NL

Montréal Responsable : Martin Poirier (mpoirier@semafo.com)

November 3-5

Septembre Tournoi de golf annuel Conférences techniques, McGill Faculty Club Février, Mars, Avril, Octobre

Mineral Resources Review 2011, Delta St. John’s Hotel and Conference Centre

CIM Newfoundland Branch

Lieu : Montréal, QC

Québec Responsable : Pierre Verpaelst (pierre.verpaelst@mrnf.gouv.qc.ca) Lieu : Université Laval, Québec, QC

24 janvier

21 février 21 mars 18 avril

NEW BRUNSWICK New Brunswick Contact: Barbara Rose (BRose@xstratazinc.ca)

March June September 22-24 November 7

Student/Industry Meet-and-Greet, University of New Brunswick (Fredericton, NB) Petroleum Golf Tournament (St. Ignace, NB) 36th Annual CIM New Brunswick Branch Convention (Bathurst, NB) Annual General Meeting, Delta Fredericton (Fredericton, NB)

Québec Nord-Est Responsable : Luc Gagnon (lgagnon@catecn.qc.ca) Lieu : Sept-Îles, QC

Activités à confirmer Rouyn-Noranda Responsable : Claude Gagnier (claudegagnier@hotmail.com) Lieu : Rouyn-Noranda, QC

11 janvier Février

17 mars 25 avril au 1 mai

QUÉBEC

Conférence : Technologie moderne en matière de schémas de traitement, Norm Lotter, Éminent conférencier de l’ICM Assemblée générale annuelle et Conférence du CGQ Conférences des étudiants de 4 programmes de l’Université Laval Conférence : SODEMEX et SIDEX — Dynamique de deux fonds miniers institutionnels du Québec, par Denis Landry, SODEMEX et Michel Champagne, SIDEX

Conférencier : Daniel Adam, Mines Richmont, UQAT Conférence : D’un extrême à l’autre : l’histoire du secteur minier, Michael Doggett, Éminent conférencier de l’ICM, UQAT (à confirmer) Conférencier : Martin Demers, Mines Aurizon Semaine minière du Québec (activités à déterminer)

Chapais-Chibougamau Responsable : Patrick Houle (patrick.houle@mrnf.gouv.qc.ca)

18-19 mai

Symposium Mines Baie James 2011 (Chibougamau et Mistassini, QC)

Harricana Responsable : Gérald Lefrançois (gerald@corriveaujl.com) Lieu : Val-d’Or, QC

19 janvier 16 février 18 mars 27 avril 4 juin

Conférence : Projet Québec Lithium de Canada Lithium Corp., Hôtel Forestel Conférence : Projet Méliadine de Mines AgnicoEagle Limitée, Hôtel Forestel Partie d’huîtres Conférence : Projet à confirmé, Hôtel Forestel Tournoi de Golf, Le club sport Belvédère CIM Harricana Branch

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

Saguenay Responsable : Steve Thivierge (steve_thivierge@iamgold.com) Lieu : Chicoutimi, QC

Février

5 à 7 ICM et Assemblée générale annuelle, UQAC Fin avril Semaine minière du Québec (discussion ouverte sur un thème, invités de marque, Bar des mines, La Tour à Bières) Avril Party de crabes annuel de l’ICM, Marina du Vieux-Port Septembre Visite industrielle Octobre Souper Oktoberfest annuel de l’ICM, La Tour à Bières Novembre Party d’huîtres annuel de l’ICM, Pavillon Murdoch Conférences techniques, UQAC Février, Mars, Décembre Thetford Mines Responsable : Normand Boutet (lab.adm.nb@bellnet.ca ) Lieu : Thetford Mines, QC

29 janvier

Tournoi annuel de curling, Club de golf et curling de Thetford Mines Fin avril Semaine minière du Québec (activités à confirmer) Mai Tournoi annuel de golf au Club de golf et curling de Thetford Mines Conférences techniques Février, Mars, Septembre, Octobre, Novembre

ONTARIO Cobalt Contact: Todd Steis (todd.steis@mti.ca) Place: Canadian Legion Branch 54, Haileybury, ON

January 20 & September 16 Seafood Night Monthly Meetings February 17, March 17, October 21, November 18 Hamilton Contact: Tracy MacPherson (tracy.macpherson@arcelormittal.com) City: Hamilton, ON

Technical Meetings February, April, October/November Greater Toronto Area West Branch Contact: Catharine Shaw (Catharine_Shaw@golder.com) City: Mississauga, ON

January 13

Technical Luncheon Meeting: “The Good, the Bad and the Ugly: the Supply Chain of the Mining Sector” Technical Luncheon Meetings, second Tuesday of the month February, March, April, May, June, September, October, November

CIM Northern Gateway Branch Northern Gateway Contact: George Flumerfelt (george.flumerfelt@jsrl.com) City: North Bay, ON

May June September

Mining Week Boat Cruise, North Bay Waterfront Marina Docks Golf Tournament, Highview Golf Course

Ottawa Contact: Jean-François Fiset (jefiset@nrcan.gc.ca) City: Ottawa, Ontario

Events still in planning stage Red Lake Contact: Ron Sinkiewicz (Ron.Sinkiewicz@goldcorp.com) City: Red Lake, ON

Winter

Dinner Talk (CIM Distinguished Lecturers Series) with Michael Doggett*, James Franklin*and David Rodier *, Lakeview Restaurant Spring Dinner Talk (Mining Act Modernization Followup) with Marc Leroux*, Lakeview Restaurant June 8 2011 Exploration Roundup, Cochenour Hall Mid-July Annual Golf Tournament, Red Lake Area Golf & Country Club October Annual General Meeting/Seafood Night, Campbell Rec Centre – Curling Rink and Lounge November Annual Lobsterspiel, Campbell Rec Centre – Curling Rink and Lounge *Speakers and dates to be confirmed Sudbury Contact: Adam Tonnos (adam@corporatesymphony.ca ) City: Sudbury, ON

February 12

Annual Sweetheart Dinner & Dance, Caruso Club June 11 Annual Lobster Dinner & Dance, Caruso Club August 7 Rudolph Kneer Memorial Golf Tourney, Lively Golf & Country Club Technical Lecture Series Presentations January 20, March 24

December 2010/January 2011 | 129

Sudbury Geological Discussion Group Contact: Phil Thurston (pthurston@laurentian.ca) City: Sudbury, ON

Monthly Meetings January, February, March, April, May, September, October, November

CIM Toronto Branch

MANITOBA Thompson Contact: Inge Robinson (Inge.Robinson@valeinco.com) City: Thompson, MN

Events still in planning stage Winnipeg Contact: Hannah Giesbrecht (hgiesbrecht@mgisecurities.com) City: Winnipeg, MN

Monthly Meeting, 3rd Thursday of the month January, February, March, April, May, September, October, November, December

SASKATCHEWAN Saskatoon Contact: Paul Labbé (Paul.Labbe@WorleyParsons.com) City: Saskatoon, SK

Toronto Contact: Rick Hutson (rick@cjstafford.com) City: Toronto, ON

January 20 February 24

March 9 May 19 August 31 September 22 October 20 December 8

Luncheon and Annual General Meeting, National Club Annual Student-Industry Luncheon with guest speaker James Franklin, CIM Distinguished Lecturer, Royal York Hotel Joint CIM–PDAC Luncheon, PDAC Convention Joint Women in Mining – CIM Toronto Branch Luncheon, National Club Frank Grieco Golf Day, Glenn Abbey Golf Club Joint MES –Toronto Branch Luncheon 4th Annual Tastes of Toronto Networking Event, National Club Annual SNC-Lavalin Hamilton Lecture Series – Monthly Luncheon, National Club

Luncheon Meetings April 21, June 9, November 17 Thunder Bay Contact: Mark Smyk (mark.smyk@ontario.ca) City: Thunder Bay, ON

January 14 January 18 February February March/April September October November December

Copper Nickel PGE Workshop, Masonic Lodge Mineral Resources Investment Showcase, Valhalla Inn Guest speaker David Rodier, CIM Distinguished Lecturer Curling Funspiel Annual Student Paper Night Mineral Resources Investment Showcase Technical Meeting Mineral Resources Investment Showcase Christmas Party

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

January 20 February 24 March 17 April 21 July 8 September 15 October 20 November 17 November 25

Environment Night Uranium Night Student Paper Night Spring Social Annual Golf Tourney, The Willows Golf & Country Club General Interest Night Potash Night Mineral Processors Night Annual Ball, Delta Bessborough Hotel

Saskatoon Geology Section Contact: Gary Yeo (GYeo@denisonmines.com) City: Saskatoon, SK

January 19

Guest speaker Steve Scott, CIM Distinguished Lecturer Branch Luncheon Meeting s February 15, March 23, April 20, May 25

ALBERTA Calgary Contact: Louise Michaud (lmichaud@marston.com) Place: The Fairmont Palliser Hotel, Calgary, AB

Monthly Technical Meeting January 12, February 9, March 9, April 13, May 11, June 8, September 7, October 12, November 9, December 7 Edmonton Contact: Fenna Poelzer (fpoelzer@nacg.ca) Place: University of Alberta Faculty Club, Edmonton, AB

January 10 February 17 March 17

Guest speaker James Franklin, CIM Distinguished Lecturer Guest speaker Michael Doggett, CIM Distinguished Lecturer Student Night showcasing scholarship winners’ presentations

April 11

Guest speaker Siri Fernando, City of Edmonton Capital Projects Annual General Meeting

December 12 Monthly Meetings September 12, October 3, November 14, December 12

Oil Sands Contact: Christian West (west.christian@syncrude.com) City: Fort McMurray, AB

January 29 April

Trail Marvin Neufeld (marvin.neufeld@teck.com) City: Trail, BC

April Annual General Meeting Technical Presentations February, May, September, November Vancouver Contact: Tom Broddy (TomB@tkomines.com) City: Vancouver, BC

Curling Funspiel, MacDonald Island Park Technical Talk & Annual General Meeting, Father Mercredi High School June 18 Golf Tournament, Fort McMurray Golf Club Technical Talks, Father Mercredi High School February, March, September, November

Vancouver Branch Annual Student Awards Night Monthly Luncheon Meetings, 3rd Thursday of the month March, April, May, June, September, October

BRITISH COLUMBIA

NORTHWEST TERRITORIES

November

Crowsnest Contact: Chris Ryan (Chris.Ryan@teck.com)

Yellowknife Contact: David Watson (david_watson@gov.nt.ca) City: Yellowknife, NT

February March April June 23

January August November

CIM Distinguished Lecturer Night (Fernie, BC) Annual Curling Funspiel (Sparwood, BC) Mine Manager’s Night (Fernie, BC) Annual Golf Tournament and Scholarship Fundraiser (Fernie, BC)

Seafood Night Golf Tournament Activities in conjunction with Yellowknife Geoscience Forum 2011

General Meeting February, March, April, May, September, October, December

INTERNATIONAL Bishkek – Central Asia Contact: Kenneth Arne (kenarne1@yahoo.com) City: Bishkek, Kyrghyzstan

Events still in planning stage

CIM Crowsnest Branch

North Central BC Contact: Joe Hines (jhines@tcrk.com)

February 5 June 22-24

Los Andes – Chili Contact: John Selters (jselters@vtr.net) City: Santiago, Chile

Monthly Meetings, Radisson Hotel March, April, May, June, July, August, September, October, November, December

CIM North & South Central BC Branch Curling Bonspiel 2011 (Williams Lake, BC) CIM North Central BC Branch Annual General Meeting (Prince George, BC)

South Central BC Contact: Richard Weymark (Richard.Weymark@teck.com)

February 5 September 15-17

CIM North & South Central BC Branch Curling Bonspiel 2011 (Williams Lake, BC) CIM South Central BC Branch Annual General Meeting and Convention, Kamloops Towne Lodge, Kamloops, BC

www.cim.org

CIM Los Andes Branch

December 2010/January 2011 | 131

cim news CIM National Office | Bureau national de l’ICM

514.939.2710

Seated: from left to right: Laura Foley, Martin Bell, Robertina Pillo, Brigitte Farah, Serge Major, Angela Hamlyn; front row: Chantal Murphy, Daniella Le Gresley, Alexandra Cyr, Jo-Anne Watier, Jean Vavrek, Andrea Nichiporuk, Lise Bujold; back row: Rosy Saadeh, Jean-Marc Demers, Steve Stecyk, Lorent Dione, Elaine Kinsella, Karine Robichaud, Deborah Smith-Sauvé, Ryan Bergen; inset: Anne Brosseau, Joan Tomiuk, Ronona Saunders, Gérard Hamel. (Missing from photo: Kim Couture, Mireille Goulet)

Executive | Exécutif Jean Vavrek Jean-Marc Demers Serge Major Angela Hamlyn Lise Bujold Gérard Hamel Mireille Goulet

Executive Director/Directeur exécutif Deputy Director/Directeur exécutif adjoint Director, Finance and Administration/ Directeur, finances et administration Director, Media and Communications/ Directrice, médias et communications Director, Conference and Exhibitions/ Directrice, conférences et expositions Director, IS&T/Directeur, TI&S Executive Coordinator/Coordonnatrice exécutive

1301 1314 1318

jvavrek@cim.org jmdemers@cim.org smajor@cim.org

1303

ahamlyn@cim.org

1308 1325 1302

lbujold@cim.org ghamel@cim.org mgoulet@cim.org

1311

mbell@cim.org

1333

dlegresley@cim.org

1309 1332

cmurphy@cim.org krobichaud@cim.org

Events and Supply Management | Événements et gestion des fournitures Martin Bell Daniella Le Gresley Chantal Murphy Karine Robichaud

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

Sales Manager, Exhibitions/ Directeur des ventes, salons commerciaux Registration & Customer Care Coordinator/ Coordonatrice, inscriptions et soutien à la clientèle Meetings Coordinator/Coordonnatrice de congrès Events Outreach Coordinator/ Coordonatrice, communications événementielle

cim news Finance and Administration | Finances et administration Anne Brosseau Kim Couture Alexandra Cyr Elaine Kinsella Laura Foley Jo-Anne Watier

Accounts Payable and Special Volumes/ Comptes payables et volumes spéciaux Receptionist/Réceptionniste Cash receipts/Encaissements Accounts Receivable/Comptes à recevoir Membership Database Coordinator/ Coordonnatrice, base de données des membres Membership Assistant/Adjointe, services aux membres

1313

abrosseau@cim.org

1300 1328 1312 1307

kcouture@cim.org acyr@cim.org ekinsella@cim.org lfoley@cim.org

1322

jwatier@cim.org

Web Developer/Développeur web

1326

ldione@cim.org

1324 1323 1316

rbergen@cim.org anichiporuk@cim.org rpillo@cim.org

1330 1331 1310

rsaadeh@cim.org sstecyk@cim.org jtomiuk@cim.org

IT | TI Lorent Dione

Media and Communications | Médias et communications Ryan Bergen Andrea Nichiporuk Robertina Pillo

Rosy Saadeh Steve Stecyk Joan Tomiuk

Section Editor/Chef de rubrique Section Editor/Chef de rubrique Coordinator, Communications, Awards and Branches/ Coordonnatrice, communications, prix d’excellences et sections locales Web Editor/Éditrice web Section Editor/Chef de rubrique Technical Editor/Rédactrice technique

Metallurgy and Materials Society of CIM | Société de la métallurgie et des matériaux de l’ICM Brigitte Farah Ronona Saunders

Manager, Administration and Meeting Planning/ Directrice, administration et planification de conferences Coordinator, Marketing and Publications/ Coordonnatrice, marketing et publications

1329

bfarah@cim.org

1327

rsaunders@cim.org

Canadian Mining and Metallurgical Foundation | Fondation canadienne des mines et de la métallurgie Deborah Smith-Sauvé

Manager/Directrice

Advertising Sales 905.886.6641 Janet Jeffery Neal Young

1334

dsauve@cim.org

Sales representatives | Représentants des ventes

Account Manager/Directeur de comptes, Dovetail Communications Account Manager/Directeur de comptes, Dovetail Communications

CIM COUNCIL | CONSEIL DE L’ICM 2010-2011 Executive | Exécutif President | Président Chris Twigge-Molecey

jjeffery@dvtail.com nyoung@dvtail.com

Vice-presidents | Vice-présidents District 1 Paul Smith

President-Elect | Président élu Chuck Edwards Incoming President-Elect | Président élu entrant Terence Bowles Immediate Past President | Président sortant Michael Allan Finance Chair | Président des finances Michael Cinnamond

District 2 Daniel Gagnon District 3 Paul Hébert District 4 Robert Carey District 5 David Leslie District 6 Christopher Ryan International Peter Lahucik

Director at Large | Administrateur général Jim Popowich

CIM Societies | Sociétés de l’ICM Janet Zinck Bruce Bernard TBA Garth Kirkham Mel Harju Alicia Ferdinand Nathan Stubina Tony George Robert MacDonald John Rhind James Archibald Zoltan Lukacs

Canadian Mineral Processors Society | Société canadienne du traitement des minerais Coal and Industrial Minerals Society | Société du charbon et des minéraux industriels Environmental Society | Société de l’environnement Geological Society | Société de la géologie Maintenance and Engineering Society | Société de l’ingénierie et de l’entretien Management and Economics Society | Société de gestion et de l’économie minérale Metallurgical Society | Société de la métallurgie Metal Mining Society | Société de l’exploitation des mines et des métaux Mining Society of Nova Scotia | Société minière de la Nouvelle-Écosse Oil Sands Society | Société des sables bitumineux Rock Engineering Society | Société de la mécanique des roches Society for Innovative Mining Technology | Société des technologies minières innovatrices December 2010/January 2011 | 133

technical abstracts CANADIAN METALLURGICAL QUARTERLY Effect of Microstructural Variation on Hardness Degradation of 2.25Cr-1Mo Steel and Its Impact on Residual Life Assessment B.B. Jha, B.K. Mishra, Advanced Materials Technology Division, IMMT, Bhubaneswar, India, and S.N. Ojha, Department of Metallurgical Engineering, IT-BHU, Varanasi, India

Effect of Elevated Strip Entry Temperature on the Formation of the Aluminum Rich Inhibition Layer at the Substrate Coating Interface During Continuous Galvanizing G.K. Mandal, S.K. Das, National Metallurgical Laboratory (CSIR), Jamshedpur, Jharkhand, India, R. Balasubramaniam and S.P. Mehrotra, Indian Institute of Technology, Kanpur, India

Electrical, Magnetic and Thermal Characterization of Amorphous Fe-Co-Cr-B-Si Alloys Iulia Solomon, Dunarea de Jos Galati University, Galati, Romania, and Nicolae Solomon, Suceava University, Suceava, Romania

Effect of Cobalt on the Corrosion Behaviour of Amorphous Fe-Co-Cr-B-Si Alloys in Dilute Mineral Acids Iulia Solomon, Dunarea de Jos Galati University, Galati, Romania, and Nicolae Solomon, Stefan cel Mare Suceava University, Suceava, Romania

ABSTRACT This paper examines the variation in hardness of different phases of 2.25Cr-1Mo steel as a result of thermal aging. The severity of thermal ageing has been expressed in terms of a Larson-Miller parameter (LMP). Microstructural examinations were carried out using Optical and Scanning Electron Microscopy (SEM) techniques. Transmission Electron Microscope (TEM) and Electron Probe Micro Analyzer (EPMA) have been used to identify different phases besides analysis of their shape, size and distribution. Hardness degradation of both phases (bainite and ferrite) has been examined in terms of microstructural degradation due to thermal aging. Finally, a modified approach has been suggested for accurate prediction of residual life of components made up of 2.25Cr-1Mo steel and operating at high temperatures. ABSTRACT During continuous hot dip galvanizing, the use of higher line speeds and thicker gauge strip often results in the steel strip entering the bath at a temperature significantly higher than that of the zinc bath. This investigation evaluates the microstructures of galvanized steel produced in a zinc bath containing 0.2 wt% dissolved aluminum essentially to study the effect of elevated strip entry temperatures on the formation of an aluminum rich inhibition layer at the substrate-coating interface. It is concluded that the inhibition layer consists of the orthorhombic Fe2Al5Znx (0<x<1) phase and the morphology of the interfacial layer progresses from a fine crystalline to coarse grain structure with increasing strip entry temperature. Higher strip entry temperature facilitates the formation of zeta (ζ) phase in the coatings. It is also observed that the overall inhibition layer thickness increases with increasing strip entry temperature. ABSTRACT This paper presents the influence of temperature variation and iron substitution with Co on the structure, electrical and magnetic properties of amorphous Fe75xCoxCr1B7Si17 alloys, obtained by the melt-spinning technique. The amorphous structure of tested materials was examined by X-ray diffraction, Mössbauer spectroscopy and scanning electron microscopy methods. The thermal behaviour associated with the crystallization temperature of the glassy samples was measured using differential scanning calorimetry. The electrical resistivity of the amorphous alloys was measured between -160° and 750°C under neutral atmosphere. The electrical and magnetic properties were determined by Wheatstone bridge and by the Bitter technique and the Ferrotester method, respectively. Experimental results confirmed the utility of the applied investigation methods and the influence of the Co content and annealing process on the structure, electrical and magnetic properties of examined amorphous alloys. The studied amorphous alloys are soft magnetic materials and exhibit excellent electrical properties. ABSTRACT This paper investigates the effect of increasing cobalt content on the corrosion resistance of the Fe-Co-Cr-B-Si alloys in dilute mineral acids. The corrosion rates in 0.5N HCl, 1N HCl and 1N H2SO4 significantly decrease with an increase in Co content. The high corrosion resistance of the Fe-Co-Cr-B-Si alloys is also due to the formation of a chromiumenriched passive film. Generally, the corrosion resistance of chromium-bearing alloy is improved by alloying with various metalloids but it is lowered by the addition of boron and silicon. The corrosion behaviour of the amorphous Fe75-xCoxCr1B7Si17 alloys obtained by the melt-spinning technique was studied using the gravimetric method. The best results were obtained with Fe65Co10Cr1B7Si17 alloy. The studied amorphous alloy ribbons exhibit not only excellent physical properties, which are useful for many electric and magnetic applications such as magnetic sensors, power transformers, etc., but also a very good corrosion resistance which extend their application domain. Excerpts taken from abstracts in CMQ, Vol. 49, No. 3. Subscribe—www.cmq-online.ca

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

technical abstracts CIM JOURNAL Factors affecting overall effectiveness of teleoperated loading and haulage equipment in underground metal mines J. Paraszczak, Université Laval, Québec City, Québec

ABSTRACT Application of teleoperated and automated (or “autonomous”) mobile equipment in underground metal mines represents a promising avenue for overcoming some of the challenges facing the industry. This paper addresses the overall effectiveness of autonomous loading and haulage equipment compared with conventional man-operated machines. Factors affecting availability, utilization and production rate are explored and an emphasis is placed on some problems and risks not present in conventional man-operated systems, as well as on the character and criticality of autonomous equipment. The need for a more in-depth analysis of factors affecting overall autonomous equipment effectiveness is stressed; these factors should be taken into consideration at the stage of feasibility studies. The paper concludes with recommendations and directions for future research. RÉSUMÉ L’utilisation d’équipements mobiles opérés à distance et automatisés (ou « autonomes ») dans les mines de métaux souterraines représente une approche intéressante pour surmonter quelques-uns des défis auxquels l’industrie est confrontée. Le présent article traite de l’efficacité globale des équipements de chargement et de roulement autonomes par rapport aux machines conventionnelles opérées manuellement. Les facteurs touchant la disponibilité, l’utilisation et le taux de production sont examinés et certains problèmes et risques absents des systèmes opérés manuellement, ainsi que de la nature et de la criticité des équipements autonomes, sont mis en évidence. On souligne le besoin d’une analyse plus en profondeur des facteurs touchant l’efficacité globale des équipements autonomes; ces facteurs devraient être pris en compte à l’étape des études de faisabilité. L’article conclut par des recommandations et des orientations pour de futures recherches.

Improving column flotation cell operation in a copper/ molybdenum separation circuit J. R. Hernandez-Aguilar and J. Basi, Teck Highland Valley Copper Partnership, Logan Lake, British Columbia, J. A. Finch, McGill University, Montreal, Quebec

ABSTRACT Testing the effects of bubble size (Db) in an Mo cleaning flotation column at Highland Valley Copper mine indicated that increasing the proportion of small (< 1 mm) bubbles significantly improved column metallurgical response, compared to typical operation. The results were a three-to-four-fold Mo recovery increase and a 1 to 2% Mo (absolute) concentrate grade increase. The improved column operation produced a 4% Mo plant recovery increase. This study also showed that modelling the flotation rate constant (k) as an inverse square function of Db was more accurate than considering k to be inversely proportional to Db. RÉSUMÉ L’analyse de l’effet de la dimension des bulles (Db) dans une colonne de flottation pour relaver le Mo à la mine de cuivre Highland Valley a indiqué que, par rapport à une opération typique, une augmentation de la proportion de petites bulles (< 1 mm) augmentait grandement la réponse métallurgique de la colonne. Les résultats signalent une augmentation de la récupération du Mo de trois à quatre fois et une augmentation de la teneur (absolue) du concentré de 1 à 2 %. L’opération améliorée de la colonne a conduit à une augmentation de la récupération de Mo à l’usine de 4 %. L’étude a aussi démontré que la modélisation de la constante du taux de flottation (k) en tant qu’une fonction de l’inverse du carré de Db était plus précise que de considérer k comme étant inversement proportionnel à Db.

Excerpts taken from abstracts in CIM Journal, Vol. 1, No. 3. Subscribe—www.cim.org

December 2010/January 2011 | 135

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

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IN THE NEXT ISSUE FEBRUARY 2011

INNOVATION

Opening up to innovation: A look at what is driving new ideas in the industry – and what is holding them back

Mine profile • Osisko’s Canadian Malartic mine — a gold standard in project development and execution • An interview with Douglas Magoon, executive chairman of AMIRA International • Commodity Spotlight: Tantalum

Plus Get a read on the upcoming CIM Conference & Exhibition 2011 with the preliminary program

December 2010/January 2011 | 137

voices from industry Bill C-300 was defeated… now what? By Tony Andrews, executive director, Prospectors and Developers Association of Canada ill C-300, which has been laid to rest, served as an immense distraction to the mining industry, but did not result in any constructive or substantive progress on the subject of accountability or corporate social responsibility (CSR). Still, it did serve as a wake-up call to our industry and as we breathe a collective sigh of relief, we need to realize the legislation’s defeat leaves us little time to celebrate. With C-300 gone, many think that now there is no accountability for the mining industry. Nothing could be further from the truth. There are multiple levels of accountability. Companies are held accountable by host country governments and a plethora of international institutions. Local communities also hold companies accountable. And then there are investors, partners and civil society in general that keep a close watch on mining company activities. However, we must recognize that Bill C-300’s demise has created a legislative vacuum that needs to be filled. If we are not proactive, someone else will again try to determine our fate for us. Here is what I propose we do: • Support and strengthen the Canadian government’s CSR strategy. • Create a council of eminent persons to deal with complex, difficult issues related to CSR, such as accountability when they arise. • Continue Canada’s CSR leadership and continuous improvement in CSR performance. • Create a new mechanism for improving industry’s communications about our leading CSR practices and our good CSR works. First, the federal government must devote sufficient time and resources to its Building the Canadian Advantage strategy. The office of the CSR counsellor for the extractive industries has been set up and is operational, with a review process that is accessible, effective, independent, responsive, transparent and predictable. However, the government has not done nearly enough on one of the most crucial parts of its strategy — host country governance capacity building. Industry can do all the CSR it wants, but if there is no parallel progress in host country governance capacity building, it is going to be of limited success. Government and industry must work together on this. The Department of Foreign Affairs and International Trade and the Canadian International Development Agency need to prioritize. Rather than spreading limited resources over a broad range

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of initiatives, would it not make sense to focus more on resource-rich countries most in need of governance assistance and where there is a significant Canadian exploration and mining presence? Why not focus on the sector where Canada is a world leader? Using this approach, government and industry can really make a tangible difference in improving governance. My second proposal would serve as an alternative to using the arena of partisan politics for making progress on serious, complex issues. We should establish a council of eminent persons, to seriously and objectively consider and debate on subjects such as accountability. Governments, the mining industry and stakeholders would then have a basis of knowledge based on experience and expertise on which to make substantive progress. My next suggestion has to do with industry’s leadership in CSR. No matter how far we have progressed over the past few decades, the mining industry carries on the burden of its fundamental contribution to society being little understood. Many people look at the industry’s activities over their shoulders. But today, Canadian mining companies play a large role in some of the poorest areas of the world, building capacity, enabling education, creating social services and infrastructure and stimulating economy and employment. We must strive to become even better as leaders in corporate social responsibility. The PDAC has created e3 Plus: A framework for responsible exploration to help companies continuously improve their social, environmental, and health and safety performance. The knowledge component of it exists and we are now developing the accountability portion, including performance objectives, reporting guidelines and the verification system. We hope to have the first version in place by March 2012. We are also planning to implement a global training network around e3 Plus. A key lesson that emerged from Bill C-300 is that the Canadian mining industry needs to communicate more effectively. There is no shortage of negative narratives on mining, despite the fact that Canadian companies have an impressive track record operating abroad. We just tend to focus on doing the work instead of talking about it. Some companies have unfortunately learned the hard way that tooting their own CSR horns can attract a negative pushback from anti-mining NGOs. Finally, I propose that the mining industry should establish a vehicle for communicating more effectively with key influencers, such as government ministers and policymakers, about its CSR programs and practices. We must make government and others aware of the good work that we have done and continue to do. CIM

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