CIM Magazine August 2012 by CIM-ICM Publications

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CONTENTS|CONTENU CIM MAGAZINE | AUGUST 2012 | AOÛT 2012

TOOLS OF THE TRADE 10

Truck & shovel Compiled by A. Lopez-Pacheco

NEWS 18 22

Industry at a glance Days in Toyland Minexpo 2012 will showcase

Cozying up for the environment Will the

industry strength by E. Moore

latest oil sands alliance bring on a new eco-era? by G. Chandler

Canada Lithium secures mining licence Project closing in on lithium ion battery market by K. Lagowski

CIDA puts plan in motion Extractive industries institute will focus on policy development training by A. Lopez-Pacheco

COLUMNS 30

Supply side Mining supply: local content or

Eye on business Environmental Assessment in

HR Outlook Collaborative approach key to filling

industry talent gap by M. Roberts Standards Small steps beyond the standard build better working relationships with Aboriginals

international competition? by J. Baird Canada’s Arctic by A. Chamberlain

by H. Hampton

Sustainability Copper explorer improves life for Andean Highlands residents by S. Waller

UPFRONT 40 42 44 46 48

4 | CIM Magazine | Vol. 7, No. 5

Mill mods save money Barrick’s systematic approach to comminution efficiency by A. Lopez-Pacheco First impressions Myotte Bellamy Productions brings mines to life before they happen by C. Baldwin EITI and the push for global transparency Is Canada ignoring its leadership role in the extractive industries? by A. Dion-Ortega Measure twice, build once Detour Gold takes the cautious route to mine development by D. Zlotnikov Rocky road to recovery The USGS’ Jack Medlin discusses the revitalization of geological science in Afghanistan by C. Baldwin

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CIM COMMUNITY 73 75

77 79 80

FEATURE | ARTICLE VEDETTE 50 58

Mining in the extreme Smart solutions for operations in tough settings by D. Zlotnikov Les mines aux extrêmes Des solutions simples aux opérations en terrains difficiles par D. Zlotnikov

Fresh air in the underground Vale’s Allen discusses implementation of underground automated ventilation systems by A. Lopez-Pacheco Rising star in “Canada’s game” McIntosh Engineering Scholarship winner determined to be a leader in mining by D. Plouffe It takes time and teamwork Vale Medal winner reveals road to success by C. Chan A sea of opportunity MSNS’ 125th anniversary celebration highlights contribution of mining to Nova Scotia by L. E. Moore MassMin 2012 A massive success | Une grande réussite by/par R. Stephan and/et D. Zeldin

Nine things I learned at MassMin 2012

A CIM Magazine editor shares his key takeaways from Sudbury by P. Braul Leading by example CIM-Bedford Canadian Young Mining Leader Award winners help take industry above and beyond by C. Baldwin and A. LopezPacheco

PROJECT PROFILE | PROJET EN VEDETTE 62 68

So You Think You Know Mining takes off Social media spurs growth of OMA video competition by E. Hoffman

Upper crust Kinross Gold’s high-altitude Maricunga mine by P. Braul Travailler en altitude au Chili La mine Maricunga de Kinross Gold par P. Braul

Laying a strong foundation Hatch and CIM safety award first to focus on construction phase by E. Hoffman

HISTORIES 96

Historical metallurgy The rush for gold: Part I by F. Habashi

TECHNICAL ABSTRACTS 98 100

CIM Journal Canadian Metallurgical Quarterly

IN EVERY ISSUE 6 8 86 103 104 106

Reader survey results A valuable source of information

Editor’s letter President’s notes / Mot du président Calendar Innovation showcase Professional directory Mining Lore by C. Baldwin

Résultats du sondage des lecteurs Une source précieuse d’information

August 2012 | 5

006-006 Editor v4_Q8_004-004 Editor 12-07-17 2:29 PM Page 6

editor’s letter

Going to extremes Miners are certainly not ones to shy away from a challenge, which is fortunate since Mother Nature holds the upper hand in the game of mineral resource hide-and-seek. Under the best circumstances, the safe and efficient extraction and processing of minerals demand remarkable ingenuity. But what about under the worst of circumstances, such as when deposits are located in regions where in winter skin can freeze in matter of minutes, or at altitudes where the air is so thin that miners are under orders not to work too hard? In our feature “Mining in the extreme,” writer Dan Zlotnikov looks at some of the innovative solutions being utilized in the face of such extremes of temperature, altitude and depth. From viscosity modifiers for fluids that enable them to perform better in severe cold, to more basic adaptations, such as the coordination of shift transfers that allow for safer and more efficient transport of people to high altitude mining sites, operators and suppliers are rising to the challenges posed by mining in highly demanding environments. We also take a trek high into the Chilean Andes with CIM Magazine editor Peter Braul to visit Kinross’ Maricunga mine, located 4,500 metres above sea level where temperatures can fluctuate more than 30 degrees on any given day. Despite these difficult conditions and the impacts they have on both workers and equipment, Maricunga is among the company’s lowest cost per ounce operations. We are also pleased to bring you the results from our recent CIM Magazine 2012 Reader Survey. The feedback was very encouraging as it highlights not only that magazines are our readers’ primary source of mining news (more than online news sites and newspapers) but that CIM Magazine, in particular, is perceived as a valuable source of information and kept for future reference. Finally, I would like to invite everybody to check out the newly launched CIM website at www.cim.org, which itself has undergone a rather extreme makeover. We are still experiencing a few growing pains – which is not surprising given the tremendous overhaul on the back end of our system – and not all sections are fully functional; however, we trust you will be pleased with the more user-friendly and visually appealing environment through which you can engage with CIM and its community of leading industry expertise. We are especially excited about the new interactive online version of CIM Magazine, available in both English and French, which will enable us – and you – to see what your industry peers are saying about the topics we cover.

Editor-in-chief Angela Hamlyn, editor@cim.org Managing editor Wah Keung Chan, wkchan@cim.org Senior editor Ryan Bergen, rbergen@cim.org Section editors Features: Ryan Bergen, rbergen@cim.org News and Upfront: Peter Braul, pbraul@cim.org Columns, CIM Community, Histories and Technical Section:

Dinah Zeldin, dzeldin@cim.org Copy editor / Communications coordinator

Zoë Koulouris, zkoulouris@cim.org Web editor Nathan Hall, nhall@cim.org Publisher CIM Contributors Jon Baird, Correy Baldwin, Adam Chamberlain, Crystal Chan, Graham Chandler, CNW, Antoine Dion-Ortega, Fathi Habashi, Howard Hampton, Ernest Hoffman, Krystyna Lagowski, Eavan Moore, Lynn Moore, Alexandra Lopez-Pachecho, Dan Plouffe, Martha Roberts, Karen Rolland, Erik Stout, Mark Stout, Sean Waller, Dan Zlotnikov Published 8 times a year by CIM 1250 – 3500 de Maisonneuve Blvd. West Westmount, QC, H3Z 3C1 Tel.: 514.939.2710; Fax: 514.939.2714 www.cim.org; Email: magazine@cim.org Subscriptions Included in CIM membership ($170.00); Non-members (Canada), $220.00/yr (PE, MB, SK, AB, NT, NU, YT add $11.00 GST, BC add $26.40 HST, ON, NB, NL add $28.60 HST, QC add $32.95 GST + PST, NS add $33.00 HST) Non-Members USA and International: US$240.00/year Single copies, $25.00. Advertising Sales Dovetail Communications Inc. 30 East Beaver Creek Rd., Ste. 202 Richmond Hill, Ontario L4B 1J2 Tel.: 905.886.6640; Fax: 905.886.6615; www.dvtail.com National Account Executives 905.886.6641 Janet Jeffery, jjeffery@dvtail.com, ext. 329 Neal Young, nyoung@dvtail.com, ext. 325

This issue’s cover The cover, designed by Clò Communications, features a photo of Centerra Gold’s high-altitude Kumtor gold mine in Kyrgyzstan. Photo courtesy of Redpath Group Layout and design by Clò Communications Inc. www.clocommunications.com

Angela Hamlyn, Editor-in-chief editor@cim.org

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Copyright©2012. All rights reserved. ISSN 1718-4177. Publications Mail No. 09786. Postage paid at CPA Saint-Laurent, QC. Dépôt légal: Bibliothèque nationale du Québec. The Institute, as a body, is not responsible for statements made or opinions advanced either in articles or in any discussion appearing in its publications.

Printed in Canada

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president’s notes

125 years old and still full of life My first official trip as president of CIM occurred in June when I attended the 125th AGM of the Mining Society of Nova Scotia. It was held in the picturesque area of Ingonish, Cape Breton, surrounded by the Atlantic Ocean. Over 200 people attended the event, which featured an excellent technical program that focused on gypsum, zinc, potash, gold, shale gas and coal, as well as existing and potential operations. I was particularly impressed with the dynamic leadership of the Society, including its outgoing president, Matt Ferguson, and incoming president Willie McNeil, secretary and treasurer Florence Sigut, and Laurie Vaughan, who headed the organizing committee. I even met Rick Mercer who, through video clips from his hit current affairs program, showed us what being a proud Canadian is. The entire event illustrated what the involvement of enthusiastic volunteers can accomplish. I left Nova Scotia encouraged to see that CIM’s oldest Society is alive and well.

Congratulations are also due to MassMin 2012 conference chairs Greg Baiden and Yassiah Bissiri, and the events department at CIM’s national office, who together organized and hosted the world’s pre-eminent mass mining technical conference and exhibition in Sudbury. This was the sixth edition of the conference and the first time the event has come to Canada. CIM’s new website was launched in late June and represents a vast improvement to the user experience. Member profiles can be accessed and updated easily; valuable information can be mined from the membership directory more efficiently, and access to technical papers has also improved. In addition, CIM Magazine will be available in its entirety in English and French and gives readers the opportunity to add their comments to the stories. As with any new platform, there will be some growing pains, so please explore the sites and give us feedback and suggestions. In order to improve our communication to all members, we are also posting the highlights of CIM Council meetings on the CIM website, with a “call-out” in the regular bi-weekly e-news. Any questions that may arise can be directed to either the CIM executive director or your Council representative. Finally, this vacation season, I want to urge you to be careful, both on the road and on the water, and enjoy the well-deserved downtime with family and friends.

Terence Bowles, CIM President

125 ans et en pleine forme ! Mon premier voyage officiel en tant que président de l’ICM a eu lieu en juin lorsque j’ai assisté à la 125e AGA de la Mining Society of Nova Scotia (Société minière de la Nouvelle-Écosse). L’assemblée s’est déroulée dans la pittoresque région d’Ingonish, au Cap-Breton, aux abords de l’océan Atlantique. Plus de 200 personnes ont participé à cet événement, qui proposait un excellent programme technique axé sur le gypse, le zinc, la potasse, l’or, le gaz de schiste et le charbon, ainsi que sur les activités actuelles et potentielles de l’association. J’ai été particulièrement impressionné par le leadership et le dynamisme des individus de la société, notamment le président sortant, Matt Ferguson, de même que le nouveau président, Willie McNeil, la secrétaire et trésorière, Florence Sigut, et Laurie Vaughan qui a chapeauté le comité organisateur. J’ai même eu l’occasion de rencontrer Rick Mercer qui, à l’appui d’extraits vidéo tirés de son émission populaire sur les actualités, nous a montré ce que c’est que d’être canadien et fier de l’être. L’événement tout entier a été l’illustration de ce qui peut être accompli par une poignée de bénévoles enthousiastes. J’ai quitté la Nouvelle-Écosse ravi d’avoir constaté que la plus ancienne société de l’ICM se porte à merveille. Je tiens également à présenter des félicitations bien méritées aux présidents du congrès MassMin 2012, Greg Baiden et Yassiah Bissiri, ainsi qu’au service des Congrès et Salons commerciaux au Bureau national de l’ICM, qui se sont réunis pour organiser le plus important congrès technique et salon professionnel sur l’industrie minière au niveau mondial à Sudbury. Il s’agissait de la sixième édition de ce congrès qui se déroulait au Canada pour la première fois. 8 | CIM Magazine | Vol. 7, No. 5

Le nouveau site Web de l’ICM, mis en ligne à la fin du mois de juin, offre une expérience d’utilisation considérablement améliorée. Il permet d’accéder facilement aux profils des membres et de les mettre à jour ; des précieuses informations peuvent être extraites plus efficacement du répertoire des membres et l’accès aux documents techniques a également été amélioré. En outre, CIM Magazine sera intégralement disponible en français et en anglais et donnera aux lecteurs la possibilité d’ajouter des commentaires aux articles. Comme c’est le cas avec toute nouvelle plateforme, il y aura surement une période d’ajustement ; alors, nous vous invitons à explorer le site et à nous faire part de vos commentaires et suggestions. Afin de mieux communiquer avec tous nos membres, nous afficherons également les faits saillants des réunions du conseil de l’ICM sur le site Web, avec un rappel dans le bulletin d’info électronique diffusé tous les quinze jours. Si vous avez des questions, vous pouvez les adresser soit au directeur exécutif de l’ICM, soit à votre représentant au Conseil. Enfin, en cette période de vacances, je vous invite à faire preuve de prudence, sur les routes comme sur l’eau, et à profiter d’un repos bien mérité en famille et entre amis.

Terence Bowles, Président de l’ICM

Traduit par CNW Group

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OF TOOLS THE TRADE

truck & shovel

◢ Task masters TruckLogic is a truck operator training curriculum developed by Vista Training, Inc., integrating computer-based training modules, PC-based simulation and structured on-the-job training. In a pilot program at Suncor’s oil sands mine in 2010, using TruckLogic resulted in a 50 per cent reduction in incidents and a 4.5 per cent increase in productivity. “TruckLogic is a blended learning approach,” says Chuck Frey, Vista Training’s marketing manager. “Instead of stuffing people’s heads full of information, we break it into chunks, based on tasks. We still have computer-based training for each task, but that’s immediately followed up by a PC simulation exercise for the same task, and then in the field, and that helps cement the learned knowledge because they’re learning and doing.”

◢ Ready for the big leagues There’s a new AC-drive P&H shovel on deck. As with its DC counterpart, the AC 4100XPC provides a 104tonne nominal payload capacity specifically designed for high-production loading of 218-tonne to 363-tonne haul trucks and larger. It has a rugged, reliable and easy to maintain twin-leg dipper handle design combined with rack-and-pinion crowd to obtain high dipper fill factors in difficult digging conditions. And its control system and maintenancefriendly modular design are geared for making the P&H 4100XPC easy to troubleshoot and maintain. “The latest 4100XPC AC shovels are achieving some of the highest productivity and availability metrics in the mining industry,” says Steve Droste, manager of sales and marketing, Joy Global Canada.

◢ Power and agility Hitachi’s new EX2600-6 excavator has Tier-2 engine technology from Cummins that lowers operating costs, increases production and improves reliability. Available in BE backhoe or front shovel configurations, the new model has a seven per cent increase in engine horsepower and up to a 10 per cent increase in hydraulic output over its predecessor. Combined with a redesigned, shorter reach backhoe front, bucket capacity on the backhoe has been increased. “For the shovel front, the increase in performance is due to a reduction in cycle times,” says Brian Mace, manager of mining product marketing and applications at Hitachi Construction & Mining Products. “Advancements in the latest models have incorporated satellite communication devices delivering a summary of machine performance and health to the customer, dealer and Hitachi to assist in monitoring the performance of the machine 24 hours per day.”

10 | CIM Magazine | Vol. 7, No. 5

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OF TOOLS THE TRADE

truck & shovel

◢ Go with the current “In general, mine owners and operators are migrating to AC systems as they are more energy-efficient and utilize less mechanical parts, requiring less personal care and maintenance,” says Nimesh Sharan, GE’s senior product manager for motors. Accordingly, GE launched its new AC Excavator Solution in March 2012. It is a complete electric-drive solution, which includes a family of AC motors, drives, controls, engineering and field services that can be applied by owners of heavy equipment, earth-moving equipment and original equipment manufacturers to their draglines, shovels and blast-hole drills. “Mining companies are increasingly under pressure to find more energy efficient and reliable solutions,” Sharan says. “Our endto-end solution offering is truly unique in the industry and includes up-front application engineering, rugged, field-tested equipment and field engineering support for installations.”

◢ Leading lines

◢ Plate is great South Africa-based Van Reenen Steel (Pty) Ltd. designs, manufactures, and repairs loading tools and truck bodies using steel plate. As part of the repair business, the company passes on issues identified with frequent repairs to its design engineering department. All of that data collection helped design the innovative VR Truck Body, which in 2010 earned Van Reenen Steel the prestigious Swedish Steel Prize for design innovation. “The VR Truck Body has rounded corners, which allow dirt to discharge quickly,” says John van Reenen, the company’s managing director. “The ridge running down the middle of the body allows for better distribution of loads. It has a strong top rail, and lacks liners, since the floor and side plates are made from SSAB’s HARDOX abrasive resistant steel plate.”

12 | CIM Magazine | Vol. 7, No. 5

Made of aramid fibre, FibreMax’s customized pendant lines for shovels are an alternative to steel lines and weigh 90 per cent less. Wilco van Zonneveld, the company’s business development manager, argues they are the better choice. “[Our lines] have been tested for more than two million load cycles without any loss or damage and outperform steel lines by far with a service life that is 15 times that of steel,” Available in any break load and with lengths of up to 140 metres, they are also maintenance-free and are made to exact lengths. The option of an integrated optic fibre provides real-time information and ready-to-use data on the lines’ service life and need for maintenance.

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Ryan Ramage, Mechanical Engineer

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OF TOOLS THE TRADE

truck & shovel

◢Smart muscle Introduced in May by Komatsu America Corp., the PC210LC-10 hydraulic excavator has a high-resolution 7” LCD monitor, for an improved operator experience. “Everything can be controlled through the monitor,” says Brian Yureskes, Komatsu’s product manager. The machine also touts improved travel performance and manoeuvrability with up to 13 per cent more drawbar pull than its predecessor, a wireless fleet monitoring system, a highly efficient hydraulic system that reduces vibration and noise, as well as a high-back, fully adjustable heated seat with air suspension, an auxiliary input for devices like MP3 players and two 12-volt ports. “It also has an eco-guidance system that gives operational advice on fuel consumption as well as records by hours or by day so you can monitor performance,” says Yureskes.

◢ Silky smooth shifts The latest version of Caterpillar’s 777 100-tonne truck series, the 777G, hit the pit this year with seven per cent more torque than its predecessor. New transmission controls produce quick haul cycles with automotivequality shifting and fuel-saving strategies, like configurable economy settings, and an economy mode that automatically optimizes fuel consumption. “New fuelsaving strategies, advanced transmission controls and enhanced braking and traction control contribute to lower cost per tonne,” says Dave Ellington, off-highway truck application specialist for Caterpillar. “The Cat 992K wheel loader and the 777G are an efficient loading and hauling match, and they offer great flexibility in mining operations.”

14 | CIM Magazine | Vol. 7, No. 5

◢ Mining’s modular future? ETF Mining Trucks has reinvented the haul truck for improved production, reduced costs and a smaller environmental footprint. The trucks feature modular designs with swappable components for all models, meaning cabins and tires can be replaced in 15 minutes and axles in less than 45 minutes, as well as all-wheel drive, traction control, ABS and dual range radars for foggy conditions. Other innovations include a self-loading attachment and haul trains, which allow for larger payloads than ultra-class trucks. The company’s first three demonstration trucks will be ready for shipment in September 2012. Serial production deliveries will start in November 2012 but no trucks will be sold. Instead, they will be rented with a “Life Cycle Maintenance and Repair Contract” and a 95 per cent guaranteed service availability because, says CEO Eddy de Jongh, “we believe that capital goods such as our products should be carefully maintained in order to have the best possible technical availability and productivity against the lowest cost per tonne in the industry.”

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OF TOOLS THE TRADE

truck & shovel

◢ A cleaner cleaner Crossover is a new degreaser from Guardian Chemicals Inc., designed primarily for use in the oil sands on heavy oil and bitumen process equipment, mining equipment like shovels and trucks, and maintenance cleaning applications. “Bitumen / heavy oil cleaners are typically solvent or citrus solvent blends, whereas cleaners for dirt, sand, etcetera are typically water-based,” says Jason Westgeest, Guardian Chemicals’ chemist and lab manager, who formulated the new product. “Crossover is a hybrid of these types of cleaners. It is a combination of naturally derived solvents, surfactants and stabilized as a microemulsion.”

◢ Easy on the environment The TH550 and TH540 underground trucks from Sandvik Mining feature an energy-efficient and low-emission EPA Tier 4i/EURO Stage IIIB engine, which consumes less fuel, produces fewer emissions and has improved torque characteristics over its predecessors. “If these engines were left running, for example, in the centre of some large city, the exhaust fumes coming out of the engines would be cleaner than the air they took in from the city,” says Tomi Pikala, marketing support manager at Sandvik Mining. “These trucks can thus provide a healthier environment for all personnel working underground.” New features also include a remodelled cabin with increased operator comfort, including a new ergonomic vibration-reducing seat.

◢ Stay warm this winter Thermex Engineered Systems Inc.’s FleetHeat is not new, but because of concerns over costs and the environment, it is drawing a lot of fresh interest. Up to 16 machines can be kept warm when hooked up to this central heating module, which uses a technology that circulates and heats antifreeze or hydraulic fluid. Conventional technology takes six to eight hours to heat a large engine, while FleetHeat takes an hour. “It provides heat during the night when the machines are not operating. In the morning, they’re ready to start, instead of the operators having to fight with machines that are having cold-start issues or just leaving them idling 24/7 all night, which isn’t a good idea because of high fuel costs and environmental concerns,” says Roger Arnot an engineering manager with Thermex.

Compiled by Alexandra Lopez-Pacheco 16 | CIM Magazine | Vol. 7, No. 5

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news | industry at a glance Rio Tinto Alcan and Alma, QC workers agree to labour deal

Goldcorp reduces 2012 gold production forecast

Rio Tinto Alcan agreed on a new collective labour agreement with the 780 unionized workers at its aluminum smelter in the Saguenay-Lac-Saint-Jean region of Quebec. On July 5, the workers approved the deal, ending a labour dispute that began on December 30, 2011. Outsourcing was the main bone of contention between the aluminum giant and its workers. Rio Tinto planned to replace retiring unionized workers with contract employees and to pay lower wages. The union said the new deal limits outsourcing and increases support for the Alma plant workers. The plant can produce around 438,000 tonnes of aluminum each year, but non-unionized management operated the smelter at one-third capacity during the dispute. The agreement ends on December 21, 2015.

Goldcorp Inc. said it expects to produce between 2.35 million and 2.45 million ounces of gold for the year, down from its earlier estimate of 2.6 million ounces. The gold miner explained the revised forecast is due to the need for rock de-stressing cuts at its Red Lake mine in Ontario at the 41 and 45 levels in the high-grade zone, and prolonged drought conditions that have led to a water shortage at its Penasquito mine in Mexico.

Protest against Conga Project in Peru leads to declaration of state of emergency Peruvian President Ollanta Humala declared a 30-day state of emergency in three provinces – Celendin, Hualgayoc and Cajamarca – in early July, after protests over the Conga copper-gold project turned ugly. Clashes between protestors and police in the town of Celendin left three people dead after hundreds attacked government buildings. The Conga project is a joint venture between Newmont Mining Corporation, the Compania de Minas Buenaventura and the International Finance Corporation. The protests have been centred over the concern by some residents that the project would endanger the region’s water supply. The project is 24 kilometres northeast of the Newmont’s existing Yanacocha gold mine, and is slated to begin production in 2015. According to Newmont, the Conga project would create 5,000 jobs to 7,000 jobs in the construction phase, with priority for employment given to locals, and would include a water management program designed to provide a yearround water supply by moving the water from four lakes high in the mountains into reservoirs the company would build.

Exploration spending boosts BC mining Growth in mineral exploration and high commodity prices helped strengthen the mining industry in British Columbia in 2011, PricewaterhouseCoopers (PwC) reported in its annual BC Mining Survey. Exploration spending, including greenfield and brownfield properties, totalled $431 million, up by 113 per cent on the year. Development properties consumed 78 per cent of those exploration dollars. In terms of commodities, coal played the biggest role last year, generating almost 60 per cent of BC mining revenues, which increased from $7.9 billion to $9.9 billion. PwC said stronger metallurgical coal prices and more shipments were responsible for the increase. Another strong performer was silver, with the average price up 75 per cent. Net mining revenues from silver increased to $811 million in 2011. Lead shipments and concentrates also grew 20 per cent in the year. Meanwhile, net revenues for gold dropped 31 per cent, copper fell almost four per cent and zinc was down eight per cent in 2011.

Cline Mining sues BC government Last May, Cline Mining Corporation filed a lawsuit against the province of British Columbia for expropriation of its Lodgepole, Sage Creek and Cabin Creek coal properties in the southeast of the province, following the passage 18 | CIM Magazine | Vol. 7, No. 5

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FiReP® GRP Bolts

SK 90 Pump

Minova‘s Injection Resin System: High Performance Resin System for High Strength Bonding of Anchors

Traditional bolting systems used for ground support take signiﬁcant time to cure and realize full loading capability. This represents valuable time when machinery and resources could be better utilized to advance further or realize additional production. Minova’s Injection Resin System dramatically reduces the installation time for cable bolts as compared with cement grouting. Curing time is reduced to less than one hour for pre-installed cables to achieve 20te loading. Minova is a global leader in the manufacture of quality steel and chemical strata control and ground support consumables and associated equipment and services for rock bolting, ground consolidation, ventilation and water control in underground mining, infrastructure, tunneling and civil engineering applications.

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Minova Canada A member of the Orica Group

018-021 Briefs v4_Q8_001-001 Cover 12-07-17 1:49 PM Page 20

news | industry at a glance of the Flathead Watershed Area Conservation Act in November 2011. The Toronto-based company wants compensation â&#x20AC;&#x153;in excess of $500 million on a net present value basis over the expected lives of the mines.â&#x20AC;?

GE adds to its mining portfolio General Electric significantly expanded its mining footprint with the A$700-million-acquisition of Australiabased Industrea in June. The company also acquired Fairchild International, based in Glen Lyn, Virginia, in a separate transaction. With these additions, the company now addresses about 35 per cent of the underground mining value chain. While Fairchild has a sharply defined product range â&#x20AC;&#x201C; underground coal mining equipment â&#x20AC;&#x201C; Industrea offers a broad spectrum of products and services. These include underground mining equipment, technologies like

collision avoidance systems, and remote asset monitoring systems and services like mine planning. GE will merge these regional enterprises with their global business, incorporating GEâ&#x20AC;&#x2122;s clean propulsion system, energy storage offerings and system integration capabilities. Last year, GE Transportation initiated several major investments in mining. The company began a US$38-million project to increase capacity and modernize machining at a Pennsylvania plant that produces mining equipment, as well as a US$95-million expansion of a Texas plant that produces AC-motorized wheels for mining equipment.

Xstrata expands air service to Raglan mine Xstrata Nickel announced the addition of an extra flight from Quebec City to its Raglan mine in Nunavik. The increase in air service will support the mineâ&#x20AC;&#x2122;s continued expansion. â&#x20AC;&#x153;The new route will allow us to amplify our

Alternative Alt ernative

Building Building S Solutions olutions

Visit us at MINExpo - Booth #23094

20 | CIM Magazine | Vol. 7, No. 5

recruitment efforts to meet workforce needs,â&#x20AC;? said Xstrata Nickel Raglan mine vice-president Michael J. Welch. In total, five weekly flights to the mine are scheduled, divided to serve Quebec City, Montreal and Rouyn-Noranda. To expand transport capacity further, Xstrata Nickel purchased a second Boeing 737, with scheduled flights to Raglan to begin later this year. The addition to its fleet will allow Xstrata Nickel to shuttle up to 360 passengers and 45 tonnes of cargo to the mine site each week.

Cameco buys German nuclear fuel trader Uranium producer Cameco Corp. announced it will acquire German nuclear fuel products and services trader and broker Nukem Energy GmbH from U.S. private equity firm Advent International for US$136 million. Under the agreement it signed with Advent, Cameco will also cover Nukemâ&#x20AC;&#x2122;s net

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news | industry at a glance

$ $! MINExpoÂŽ 2012$ "$4665

debt of US$164 million as of January 1, 2012. Advent will receive a share of Nukemâ&#x20AC;&#x2122;s future earnings under certain conditions until end-2014. The deal, presently pending regulatory approval, is expected to close in the fourth quarter of 2012. Cameco president and CEO Tim Gitzel said this purchase will help strengthen the companyâ&#x20AC;&#x2122;s position in nuclear fuel markets, and will improve its access to unconventional and secondary sources of supply. Nukem has 35 staff at offices in Alzenau, Germany and Danbury, Connecticut. Following closing, Nukem will operate as an independent company.

ArcelorMittal targets more Canadian output Steelmaking giant ArcelorMittal is exploring the potential to boost iron ore concentrate production at its Canadian operations to 30 million tonnes per annum using existing infrastructure. Production in 2011 was approximately 15 million tonnes. The Luxembourg-based group will commission prefeasibility and feasibility studies for the possible expansion, potential for which was identified through a scoping study completed in April. Today, ArcelorMittalâ&#x20AC;&#x2122;s Quebec operations generate 40 per cent of Canadaâ&#x20AC;&#x2122;s iron ore production.

Evo Morales nationalizes Malku Khota Bolivian President Evo Morales revoked concessions for the exploration-stage Malku Khota silver-indium-gallium project, which was wholly owned by Vancouver-based South American Silver Corp., in July. The news for Malku Khota followed Juneâ&#x20AC;&#x2122;s expropriation of Glencoreâ&#x20AC;&#x2122;s Colquiri operation. Since 2007, Morales has nationalized the countryâ&#x20AC;&#x2122;s natural gas industry and electricity and telecommunications sectors. He has promised to compensate South American Silver between $2 million and $3 million, but the company says it has invested over $16 million in the project since 2007. South American Silver released an update to its NI 43-101 compliant preliminary economic assessment for the project in 2011, showing measured and indicated resources of 230 million ounces of silver, up 60 per cent from the 2009 estimate.

Agnico-Eagle Mines finance guru rejoins Barrick Barrick Gold Corp. appointed Ammar Al-Joundi as senior vice-president of finance and CFO. The move followed the ouster of Aaron Regent as CEO last June. The Toronto-based group hired Al-Joundi from Agnico-Eagle Mines Ltd to replace Jamie Sokalsky, who took over from Regent. Al-Joundi had spent 11 years at Barrick before joining Agnico-Eagle in 2010.

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errata Due to an error in the editing process, there was a mistake in the Presidentâ&#x20AC;&#x2122;s notes of the June/July issue. The correct number of CIM individual members is actually 13,400. August 2012 | 21

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news

Days in Toyland Minexpo 2012 will showcase industry strengths

Since the last Minexpo in 2008, a banking crisis has swept the world, governments have fallen, and commodities markets have danced the Tarantella. Yet when international mining suppliers and clients arrive in Las Vegas this September for Minexpo 2012, many are hoping things will feel like they did four years ago. The stock market crashed just as Minexpo 2008 concluded, recalled Ulf Linder, communications manager at Atlas Copco. “The market was on the peak at the beginning of the show,” he said. “It changed in just one or two days.” In the ensuing evaporation of capital, mining equipment sales dropped, says Mark Sprouls, a spokesperson for Caterpillar Inc. But the ongoing urbanization of emerging economies helped Caterpillar bounce back. “The 2012 situation is good, just as it was preceding Minexpo 2008,” said Sprouls. Caterpillar’s recession-time acquisition of Bucyrus International has given it “the broadest line of mining and materials handling equipment available,” including Cat-branded underground coal mining equipment, which will be on display in September. Katrina Maheu, director of corporate marketing at Dumas Contracting Ltd., reports that her company also successfully expanded its mining services during the recession. With gold prices through the roof, Dumas grew out of its Ontario home, undertaking operations in Latin America and West Africa. The boom in Chinese demand for raw materials also helped Dumas forge a new alliance with Chinese contractor JCHX Mining. Given its new international scope, Dumas decided to exhibit at Minexpo for the first time this year. Maheu said a growing demand for high safety standards makes companies like hers a valuable asset; JCHX was drawn to Dumas in part because of its safety record. “Countries like Canada have extremely 22 | CIM Magazine | Vol. 7, No. 5

Courtesy of Minexpo

By Eavan Moore

Minexpo 2012 will have 850,000 square feet and 1,200 exhibitors at the Las Vegas Convention Center.

high standards when it comes to safety and production techniques,” she remarked, “and I think that often there are concerns around how you take that level of expertise and develop it within other countries.” Derek Lawrence, sales and estimating manager at New Brunswick-based bulk handling manufacturer B.I.D. Canada, will also make his first trip to Minexpo this year. He says the high cost of domestic transport makes international exposure especially attractive. “Highway transportation of equipment in Canada is expensive, and is a limiting factor for our business,” he explained. “However, I can put my product into a shipping container and ship it anywhere in the world via ocean for less cost than I can send a single truckload from New Brunswick to Saskatchewan. So my interest is to increase our profile with engineering consulting firms and mining companies which develop and operate mines and related infrastructure within and outside of North America.” Fortune appears to favour Canadian exporters. A June report from the

Conference Board of Canada forecast strong profitability for Canadian sectors serving the mining industry, and highlights machinery manufacturing exports to the United States. At Atlas Copco, Linder is anxious to sees what unfolds this year. “We are seeing some signs of a slowdown,” he acknowledged. “What will happen is of course difficult to predict. But when it comes to our product range, we are stronger now: we have increased our booth space by 30 per cent, and we have new products to introduce.” Atlas Copco, like Caterpillar and other suppliers, works with its customers to develop new features. The latest machines will showcase more automation and remote mining capability. Visitors will be able to check out technologies that help cope with labour shortages, extreme conditions and safety concerns. With another four years of R&D behind them, suppliers are hinting that they have answered the call to deliver bigger and better solutions to long-term problems. CIM

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news

Cozying up for the environment Will the latest oil sands alliance bring on a new eco-era? By Graham Chandler

24 | CIM Magazine | Vol. 7, No. 5

CONRAD overlaps include water and land reclamation activities. “Overlap will be eliminated during 2012 as those activities move from CONRAD over to COSIA,” said Carolyn Preston, CONRAD’s executive director, “including our Water Focus Group and Environmental and Reclamation Research Group consortium.” When the dust settles, CONRAD will continue but “not be participating in any COSIA projects,” she added. COSIA will inherit most of OSLI’s environmental projects within the year too. “We really see OSLI as an early innovator and enabler of collaboration in the oil sands, and COSIA as the evolution of that effort,” said Vincent Saubestre, OSLI’s executive director. “As COSIA becomes ready to take on projects that fit their environmentally focused mandate, OSLI projects will migrate to COSIA where they can be scaled up with more participants.” The alliances have been effective. “OSLI proved that collaboration could work more quickly and efficiently in non-competitive areas of oil sands development, such as environmental stewardship,” said Saubestre. An example: “in our Faster Forest program, five companies planted about one million trees in three years to speed reforestation on seismic lines and well sites,” he said. CONRAD’s Preston cited its Froth Treatment Consortium, which developed the game-changing paraffinic froth treatment technology. COSIA does not, however, fund research – that will be up to its members. “We won’t be a granting entity; we consider ourselves an overarching collaborative hub,” said Wicklum. “The actual innovation will happen in what we call joint implementation projects or JIPs. To give you an idea of scale, for

Courtesy of COSIA

When Ken Hughes was named Alberta’s energy minister this year, he publicly recognized the province’s need for a social licence to continue resource developments. He was, perhaps, drawing on momentum building within the oil sands industry itself. Two months before Hughes’ appointment, a dozen major oil sands producers formed Canada’s Oil Sands Innovation Alliance, or COSIA, a new consortium aimed squarely at cleaning up the oil sands’ image. COSIA’s mandate, said Dan Wicklum, chief executive of the alliance, “is to accelerate the pace of environmental performance improvement.” The participating companies have pledged to share their experiences and intellectual property with one another in order to further the COSIA cause. With that, he has spent recent months hitting the Dan Wicklum, chief executive of COSIA, has been speaking at speaker circuit promoting those various engagements to raise awareness of the new institute. efforts and raising awareness. COSIA joins a string of oil sands mining operators focused on tailings producer alliances collaborating on pond research. research and development, though The well-defined focus of the OSTC not all are environmentally focused. has allowed it to be the first to integrate And some of the existing organiza- with COSIA. “OSTC has made the decitions will fold into the COSIA man- sion that they would essentially cut and date, including OSLI (Oil Sands paste themselves from independent Leadership Initiative) and OSTC (Oil space and put themselves inside COSIA,” said Wicklum. “So now they Sands Tailings Consortium) and some functions of CONRAD (Canadian Oil operate as the Tailings Environmental Sands Network for Research and Priority Area (Tailings EPA).” That EPA represents a quarter of Development). CONRAD was formed in 1994 as “an what COSIA will do. “We will have four EPAs – tailings, water, land and greenR&D network promoting shared house gases,” explained Wicklum. He research.” Its members include seven expects relevant projects and parts of major oil sands operators and 29 supporting, government and academic the other organizations to map into COSIA as well. “In fact, those organizaorganizations. OSLI’s members are six tions are helping us scope COSIA and leading operators whose main purpose form it. And our goal here is not just to is to drive leadership initiatives and make sure there is no interruption in improvements in the environmental, economic and social performance of the work that’s being done, but to make sure the COSIA model will be even their companies and the industry. OSTC’s seven members are oil sands more enabling for that work.”

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tailings this year we expect to spend about $90 million, done under the auspices of the tailings EPA.” To accomplish its lofty goals, though, COSIA will have to push transparency further. Richard Dixon, executive director at the Centre of Applied Business Research in Energy and the Environment, the energy arm of the Alberta School of Business at the University of Alberta, reckons they will need very clear goals. “The challenge will be to show the outcome performance measures and hold to them,” he said. Wicklum said he shares Dixon’s concern, and that clarifying performance measures is a COSIA mandate. “It’s a first for the sector,” he said, “to set goals and report back publicly on progress.” Finally, according to Dixon, gaining credibility for the industry in a global context is critical. “More and more people are aware that companies green-wash,” he

said, pointing out the need for real expertise. And posing one of the many questions surrounding the

new alliance: “Can they recapture a lot of leadership within the environmental field?” CIM

Precise Product Sized for Maximum Yield

MOVING ON UP Barrick picks Sokalsky to lead Jamie Sokalsky was named president and CEO of Barrick Gold Corp., replacing Aaron Regent. Sokalsky, who joined Barrick in 1993, also replaced Regent on Barrick’s Board of Directors. John L. Thornton, meanwhile, was appointed co-chair of the board. The decision was based on a poor share price performance. Barrick founder and chairman Peter Munk said, “Our board has every confidence in Jamie’s experience and commitment to take our company forward. John’s knowledge and experience of global business affairs are truly exceptional and we are all fortunate that he has agreed to take on this important role.”

Visit Gundlach Gundlach at MINExpo, MINExpo, Central Hall, C4, Booth #7985, #7985, or an y time online Gundlac hCrushers.com/cim any GundlachCrushers.com/cim T OLL-FREE: 1-877-GUNDLA CH TOLL-FREE: 1-877-GUNDLACH Email: BetterCrusher s@GundlachCrushers.com BetterCrushers@GundlachCrushers.com

August 2012 | 25

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Canada Lithium secures mining licence Project closing in on lithium ion battery market

The Quebec Lithium project has been granted a mining licence, and owner Canada Lithium has leapt another crucial hurdle on the way to producing 20,000 tonnes of batterygrade lithium carbonate each year. The Toronto-based mine developer has completed the shell of the processing plant on the site near Val D’Or, and is currently installing heavy equipment. “We’ll be starting to put product through the plant and should be producing our first lithium carbonate by the first quarter of 2013,” said Olav Svela, director of investor relations for Canada Lithium. The property was acquired in 2008 and had been a lithium producer from 1955 to 1965. Plans are to complete pre-stripping of the open pit operation in July and August. The province of Quebec approved the location of the tailings management facility, but the operating permit for the facility has not yet been granted. “It’s a clean-tech mine, so most of the waste is silica sand from the mining itself,” explained Svela. Also in government

26 | CIM Magazine | Vol. 7, No. 5

Courtesy of Canada Lithium

By Krystyna Lagowski

Canada Lithium's Quebec Lithium project is currently under construction near Val D'Or, Quebec.

hands is the federal environmental assessment, for which a comprehensive

study began in June of this year. Based on the feasibility study, Svela anticipates selling the lithium carbonate at about $1,500 per tonne. “We’ve planned for a mine life of about 15 years, but there’s a fair bit of ore in the ground so we might be able to extend that,” he said. “We’re also looking at producing higher end products, such as lithium hydroxide and lithium metal, but that’s down the road.” For now, the primary focus is lithium carbonate, which is in high demand for the making of lithium ion batteries for hybrid and electric vehicles like the Chevy Volt, as well as consumer electronics, including smartphones and tablets. “The majority of the product would be marketed in Korea, Japan and China, since that’s where the major battery manufacturers are,” noted Svela. He estimates 150 people will be employed at the mine when it is in full production. CIM

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IT STARTS WITH A SINGULAR FOCUS ON MINING At Joy Global, weâ&#x20AC;&#x2122;re combining resources to better serve our customers worldwide. With a direct service approach dedicated to one thing and only one thing: mining performance.

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news

CIDA puts plans in motion Extractive industries institute will focus on policy development By Alexandra Lopez-Pacheco Canada’s new International Institute for Extractive Industries and Development is one step closer to realization. In June, the federal government’s Canadian International Development Agency (CIDA) put out a call for proposals from Canadian universities wanting to host the new Institute. Prime Minister Stephen Harper announced the creation of the Institute last fall, stating it “will help developing nations harness their resources to generate sustainable economic growth, thereby reducing poverty.” The Institute will receive $25 million over five years from CIDA for its establishment and initial operating costs. “Many developing countries face challenges in effectively governing and managing their extractive industries, and they often approach Canada for our expertise in this area,” said Justin Broekema, press secretary for the office of the Minister of International Cooperation, which manages CIDA. “Weak capacity to manage resources, including taxation, inspection and regulation, contract negotiation, revenue collection and distribution, is a significant barrier to ensuring that extractive operations in developing countries maximize positive development results to benefit countries and their people.” Following a roundtable last December, consultations with a range of stakeholders in the sector took place between April and May 2012, and included CIM, the Canadian Council for International Co-operation (CCIC), the Canadian Chamber of Commerce, Partnership Africa Canada (PAC) and the Mining Association of Canada (MAC). A common concern emerged from the consultations: the Institute needs to ensure it truly is effective in moving developing nations forward.

28 | CIM Magazine | Vol. 7, No. 5

PAC pointed out the potential for competing interests. “Given that Canada does have such a prominent extractives sector in developing countries, there may be times when recommendations that should be made to the government are not in the best interest of Canadian companies,” said Kady Seguin, programme analyst for Publish What You Pay Canada, which helped draft the submission of its host organization, PAC. The CCIC also highlighted this issue and urged CIDA to establish clear directives that would address it. In its submission as part of the consultation process in early May, CIM expressed concern over similarities between the proposed Institute and the existing Centre for Excellence in Corporate Social Responsibility (CfE). The CfE, which was launched in 2009 and for which CIM is the secretariat, is a pillar of the

Canadian government’s corporate social responsibility (CSR) policy. Later in May, CIM representatives met with former Minister of International Cooperation Bev Oda to discuss initial perceptions, the mandate and operation of the Institute, and the evolution of the CfE. One solution to the overlap, offered by a number of participants, including CIM and PAC, is that the Institute commit to a process of collaboration with stakeholders. “The task of the Institute is to do a gap analysis of where it could potentially benefit and really understand the context in which it is entering,” said Seguin. “As well, there are a lot of multi-stakeholder initiatives already happening. So the Institute needs to ensure it is working within the work that is happening already and incorporating it.” CIM has also raised concern over the Institute residing in a single institution, because it had proposed to cover a very

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broad spectrum of issues. However, over time, the Institute’s Once all the universities’ proposals are submitted by focus narrowed, and former Minister Oda indicated the key September 6, the advisory panel will assess them, and objective would be to provide training and development to one proposal will be recommended to the president of representatives of host countries in natural resources legisla- CIDA. CIM tion and policy development. An interdisciplinary approach will be vital, said Bernhard Klein, head of University of British Columbia’s department of mining engineering. “It’s really important to pay attention to the countries and what the issues are within those countries,” noted Klein. “But you really need to understand more than policy, you need to understand and have experience in the mining sector and its impact and relationships with local communities.” The institutional capacity-building will help complement the work being done by operators, said Nathan Stubina, manager of the Barrick Technology Centre. “Canadian mining is very strong in areas, such as technical skills, CSR, safety and maintenance, so we can share that strength as a great vehicle to help countries out of poverty,” he said. “From Barrick’s perspective, many of the countries we operate in don’t have a lot of technical skills, so we provide the training.” After taking part in three Canadian missions to West Africa, CIM executive director Jean Vavrek said there is both a clear need for governments to develop and retain qualified people, and an important role that Canadian knowledge, pracPersonal success. Career success. Team success. tice and culture can play. “CIM values its relationships with its Suncor Energy is hiring in Fort McMurray: government partners and the work that is being done,” said Vavrek. “The call for Materials engineer – posting number 25893 proposals has opened the door for collabMaterials specialist – posting number 23758 oration. The Francophone context of Suncor will be at MINExpo September 24-26 in Las Vegas many West African countries certainly needs to be considered in developing colGo ahead. Apply now! www.suncor.com /engineering laboration between Anglophone and Francophone bodies as part of the new Institute.” Connect with Three to five Canadian representayour future! tives will be selected over the summer by the president of CIDA to make up ™ Trademark of Suncor Energy Inc. the Institute’s external advisory panel. August 2012 | 29

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S U P P LY S I D E

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Mining supply: local content or international competition? BY JON BAIRD

ost Canadian companies supplying goods and services to the global mining industry have learned that having a local partner makes good business sense. It means they have an advocate who can speak the local language, understand commercial practices and provide after-sales service close to the decision-maker. Indeed, some Canadian firms selling to the global mining industry have dozens of local representatives around the world. However, there is a growing trend in many countries to force mining companies operating in their jurisdictions to source goods and services locally, which could have severe implications for Canadian supply companies. One of the most protectionist jurisdictions in this respect is Argentina. In May 2012, Argentina’s Mining Ministry ordered mining companies to prioritize the purchase of local products and services, as well as to seek prior government approval 120 days before making overseas purchases. More than 600 product types now require an import licence, including mining machinery and chemicals. As of the announcement, mining companies have to submit quarterly estimates of their purchasing needs, which will be approved by a special working group at the ministry. It is feared the government review process may delay the deliveries of mining inputs by six months. Brazil is also seeking to apply local supplier requirements to new mining contracts. The measures would require companies exploring and producing minerals to spend a certain percentage of their investments with local businesses. Simultaneously, they are also endeavouring to develop local industries that can supply the goods and services needed to extract and transport oil and minerals as outputs rise. Brazilian oil producers already have to buy as much as 70 per cent of goods and services locally. South Africa’s Mining Charter has black economic-empowerment targets that are akin to local content regulations. These targets require a total local procurement expenditure of 40 per cent, with local consumable goods at 50 per cent and local services at 70 per cent. Meanwhile, multinational suppliers are required to contribute 0.5 per cent of the amount paid by the local company to a social contribution fund. Elsewhere in Africa, local content regulations are emerging, although they do not appear to be aimed at the mining sector. Nigeria has a Local Content Development Act that promotes local firms’ access to construction contracts, Liberia has a petroleum law that alludes to domestic preference and the hiring of locals, and Ghana has also implemented some local content regulations. Australia has implemented an incentive scheme that allows mining corporations some tariff exemptions and increased government grants. Earlier this year, The Australian reported on the “Buy Australian” rules announced by Australian Prime Minister

30 | CIM Magazine | Vol. 7, No. 5

Julia Gillard for firms seeking government grants and tariff exemptions, after union complaints that big miners were bypassing local suppliers. The Australian went on to report that the government would force firms seeking tariff exemptions to provide additional evidence, to be posted on a government website, that Australian firms received an equal chance at securing project contracts. However, the Australian mining industry continues to reject calls for reforms to mandate the local content requirement. The Minerals Council of Australia claims that in 2009, the mining industry’s total demand for goods and services was $85.7 billion, of which $75.8 billion (88 per cent) was supplied by local industry. For local content to be successfully integrated into supply chains there needs to be longevity of demand. In mining, there tends to be an initial influx of investment in services, equipment and materials during the construction phase. After that, deteriorating equipment will require maintenance or replacement on an ongoing basis, and additional services will be required. This provides a fertile area for building national supply chain industries based on mining sector business over the long term. A central question regarding the trend towards more stringent local content regulations is whether it will stimulate greater competitiveness in the local supply industry or whether it will lead to uncompetitiveness and protectionism. What is the lesson for Canadian mining supply firms exploring international markets? They should strengthen their activities to select, motivate and control local business partners. They should also build into their tendering process provisions to harness and expand engineering and other capabilities indigenous to A page for and about the supply side of the Canadian mining industry the countries they wish to supply. CIM Jon Baird, managing director of CAMESE and a past-president of PDAC, is interested in collective approaches to enhancing the Canadian brand in the world of mining.

MOVING ON UP Fasken Martineau welcomes new partner and associate Frank Mariage and Steve Boucratie joined the Corporate/ Commercial, Mergers & Acquisitions and Mining groups of Fasken Martineau, a business law and litigation firm with global presence. Mariage and Boucratie were named partner and associate, respectively. “The arrival of these high-level lawyers allows us to solidify our position as a leading mining firm in Quebec and in Canada,” said Éric Bédard, managing partner, Quebec region, Fasken Martineau.

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EYE ON BUSINESS

columns

Environmental Assessment in Canada’s Arctic BY ADAM CHAMBERLAIN

ining activity in Canada’s Arctic, especially in Nunavut, is accelerating. Given the relative infancy of mining in these regions and the environmental challenges faced by operating in extreme northern environments, the environmental assessment (EA) process poses unique challenges for mining companies. However, these challenges need not force mining companies headfirst into a wall of red tape. By taking a more active role on the ground with governments, agencies and communities, mining companies may, in certain circumstances, be able to begin work before all aspects of the EA have been finalized. Understanding the capacity of regulatory bodies in the region is instrumental in ensuring the successful completion of the EA process in Nunavut. The Nunavut Impact Review Board (NIRB), a regulatory body created to consider the impacts of large projects like mines, will face challenges handling the surge of incoming projects. The NIRB is fundamental to the development of the Nunavut economy, and while there are knowledgeable people working within the regulator, the

number of projects may exceed what those people have the capacity to shepherd through the approvals process. This issue would be a challenge for a regulatory body regardless of its location but is exacerbated, in the case of the NIRB, by travel requirements and distance issues in Nunavut. While there is no easy solution, proponents of mining or related developments need to be as proactive as possible through all stages of the EA and other related permitting in engaging communities, governments and the regulatory community. This requires focus on the part of the proponent and its partners. Time on the ground getting to know the stakeholders involved in the EA process is at least as important in the Arctic as anywhere else. Commitment to stakeholders is more noticeable when an effort has been made to travel to and get to know the individuals involved. One example of working around EA capacity issues is Baffinland Iron Mines Corporation’s approach to its Mary River project in Nunavut. Baffinland’s project EA (known as “impact assessment” in Nunavut) has continued its progress through the regulatory approvals process over the past months. As the project was nearing the home stretch of the NIRB process in October 2011, Baffinland applied to the NIRB to conduct certain development activities prior to completion of the review of the broader Mary River project. The NIRB’s initial response was that the extent of the preapproval work Baffinland proposed was more significant than what the regulator was willing to contemplate allowing to proceed. Baffinland’s revised application was scaled back significantly and resubmitted. The revised application was accepted by the NIRB, with the single exception of the overwintering of a 10-million-litre fuel barge at Steensby Inlet near the project location at the north end of Baffin Island. Baffinland, however, chose to delay much of the on-site work that had been proposed for the immediate future. The company said the overwintering of fuel was an integral part of the work it planned to accomplish; without it the rest of the work would have to wait for the final Project Certificate to be issued. Although Baffinland did not proceed with the proposed activities, the NIRB’s consideration of work, pre-approval, is a good example of the balancing act EA regulators must undertake, and of the uncertainties faced (and flexibility required) by proponents of large mining or related projects in the Canadian Arctic. Other issues will, no doubt, arise in different contexts related to various projects. Resolving them will require developers to be proactive and to have knowledge of the stakeholders, the EA process and the best practices employed in modern EA. These related challenges, while significant, are largely surmountable. CIM Adam Chamberlain is called to the Bars of Nunavut and Ontario. He is a partner and certified specialist in environmental law at Borden Ladner Gervais LLP. Adam can be reached at achamberlain@blg.com or 416.367.6172.

32 | CIM Magazine | Vol. 7, No. 5

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HR OUTLOOK

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Collaborative approach key to filling industry talent gap BY MARTHA ROBERTS

or the past several years, the Mining Industry Human Resources Council (MiHR) has provided the mining industry with annual hiring requirements forecasts. The latest instalment (2011) projects the need to hire upwards of 100,000 workers over a 10-year horizon. The upcoming 2012 national mining labour market report continues to paint a picture of larger future hiring needs, an ageing workforce, a wave of retirements, and challenges in attracting and engaging key talent groups. The looming labour and skills shortage remains a top priority for mining companies in Canada. It is widely accepted and understood that we are going to need people – but that is only part of the story. Where are all these workers going to come from? MiHR’s 2012 mining labour market outlook addresses this question head on by providing a new forecast of available talent. Gaps are then identified and analyzed by comparing the industry’s projected hiring requirements to available talent for each occupation, revealing some interesting patterns. The nature of the gaps and the approach to filling them differs among occupations. For example, production roles may have a large group of potential workers available, but mining also faces stiffer competition with other industries to attract a greater proportion of those workers. For some niche occupations, there may not be enough workers, period, so the industry must work with education and training providers and/or immigration to ensure enough people choose mining careers, and are trained and ready to enter the workforce. Given the long planning horizon of these solutions, it is important to immediately start laying the groundwork to fill these gaps. Our quest for new talent must also consider a host of other factors, including skill requirements, education and training, credentials, mobility, work experience and safety awareness. New entrants to the labour market come from a

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variety of places, equipped with a variety of skills, competencies and experiences. Many new labour market participants leave schools or graduate and start looking for work; others immigrate; some relocate or travel from province to province; and still others re-enter the labour force after a temporary leave. Therefore, the sources of new talent can differ for each occupation. That said, mining is not the only sector aware of pending labour shortages, nor is it the only sector that is striving to increase its share of a diminishing labour pool. To get ahead of the competition, we will need a game-changing strategy to address the talent gaps we face. Among the strategies we are exploring at MiHR is countercyclical workforce planning – an approach that is meant to transform long-term people planning and to reduce reactionary workforce adjustments based on economic conditions. To achieve this, MiHR is conducting research to better understand patterns of employer behavior in downturn, recovery and boom phases of the economic cycle. In-depth analysis of mining’s workforce adjustments and workforce planning strategies in mining will form the foundation of an industry strategy to reduce employment volatility and proactively manage employment during cyclical economic trends. Other possibilities to address talent gaps centre on mobility and skills recognition – key factors that spurred the development of MiHR’s Canadian Mining Certification Program, which certifies mining workers in previously unrecognized occupations, such as underground miner, minerals processing operator, surface miner and diamond driller, against a national standard – recognizing skills and competencies across provincial borders. Continued strategic efforts to strengthen workforce diversity are also key to filling the gaps. MiHR recommends coordinated initiatives and provides resources to increase representation of women and new Canadians, to improve opportunities for Aboriginal workers and to attract young people to the sector. Success will require a coordinated, cooperative, industrywide approach. We will find ways to fill the gaps, so long as we continue to explore our options together. The full outlook report and gap analysis will be available in fall 2012 at www.mihr.ca. CIM

As director of research, Martha Roberts is responsible for enhancing the labour market information available to mining and mineral exploration stakeholders and investigating the short- and long-term human resources issues facing the industry. Martha holds her PhD in Psychology from the University of Waterloo and has won several awards for her research.

August 2012 | 34

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S TA N D A R D S

Small steps beyond the standard build better working relationships with Aboriginals BY HOWARD HAMPTON

cross Canada, there is much debate about the Crownâ&#x20AC;&#x2122;s duty to consult and accommodate Aboriginal rights and interests in the context of mining and resource development. While the debate is important, above and beyond what the courts may decide and what provincial governments and the federal government may do, mining developers who want to have longer term successes need to think seriously about their consultation, accommodation and relationship-building with Aboriginals.

Research mining and development protocols

Patience, respect and transparency in your working with Aboriginals will take you a long way.

Research the Aboriginals near the general area of your mining interest. The Aboriginal Profile Interactive Map by Aboriginal Affairs Canada, available online, provides basic information about every Aboriginal group in Canada, as well as links to the websites of most Aboriginal and Tribal Councils where you will often find mining and development protocols, which set out procedures an Aboriginal or a Tribal Council would like mining developers to follow regarding any proposed activities on their traditional lands. If an Aboriginal or a Tribal Council sets out consultation guidelines, a mining developer should take notice of them. Failing to do so is likely to be regarded as a sign of disrespect and will not be helpful in establishing a trustful relationship. If an Aboriginal group and its Tribal Council do not have a mining and development protocol, a good first step is to send a letter from your CEO to chief and council and to follow up with a personal phone call asking for a meeting. At the first meeting, the CEO should be open and clear about the project so there is no miscommunication, explaining what the mining interest is, what activities you would like to undertake, and where the activities are located on the traditional Aboriginal lands. It is important to ask chief and council for their views, concerns and priorities. Avoid placing a boilerplate consultation document on the table in early meetings with chief and council, as doing so suggests you do not care about the issues, interests and concerns of the Aboriginals, and regard consultation as mere legal formality.

Share technical data and information The Aboriginal group will raise issues a mining developer should be prepared to discuss. For instance, it will want to 36 | CIM Magazine | Vol. 7, No. 5

know what impact proposed activities will have on the land and on traditional activities like hunting, fishing and trapping. You will be asked how adverse impacts on the land can be mitigated or compensated for, as well as how activities can potentially benefit members of the Aboriginal group in terms of training, employment and business opportunities. The Aboriginal group may ask for technical data and information. It is advisable to share this information, but on the basis that it is strictly confidential. You may also be asked to conduct local studies to provide information on natural resource or environmental issues like water quality. Be prepared to undertake these activities, pursuant to a Letter of Understanding which specifies what is being undertaken, what it will be used for, and what you will pay for.

Be open to discussion

If you are asked to hold a community meeting with Aboriginal members, it is advisable to do so. Ask the chief and council for advice on how a community meeting should be organized, what information to present and how it should be presented. It does not matter that a community meeting was held at a nearby municipality. Aboriginals do not see themselves as just another stakeholder. Aboriginal Treaty and Aboriginal Rights are protected by the Constitution. The meeting should be held in, or as close as possible to the community, unless chief and council advise otherwise. If the community meeting is successful, you may be able to proceed with an exploration agreement. At this stage, the CEO can hand off responsibility for more detailed meetings to a lieutenant who has attended earlier meetings so the trust building continues. If you are not able to move to the next stage immediately, do not assume that you have wasted money and time. Aboriginals have their own dynamics and priorities. Patience, respect and transparency will take you a long way. More than one Aboriginal group has initially been wary of mining development, but given time, has built a good working relationship with the mining industry. CIM Howard Hampton, counsel at Fasken Martineau, works in four main areas:Â government relations, corporate social responsibility, First Nations issues and the global mining group. Before joining Fasken Martineau, he was a member of the Ontario Legislature for 24 years and leader of the New Democratic Party of Ontario for 13 years.

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

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Copper explorer improves life for Andean Highlands residents BY SEAN WALLER

ne of the benefits of working in the mining industry is the opportunity to travel to mining projects across the globe. More often than not these projects are located in remote (at least to us) and often underdeveloped regions. Over the last few years, I have devoted a lot of time to Candente Copper’s project in the Andean Highlands of northern Peru, enabling me to get a first-hand view of the local people, their communities and their lives. Through this experience, I realized the best way to improve the quality of life in this region is through the mining industry. The Andean Highlands are beautiful, but life is not easy. As in many underdeveloped areas of the world, the local residents have little or no opportunity for employment outside of their subsistence lifestyle. Simply put, they have no choice. The lack of employment opportunities is compounded by the lack of basic infrastructure: medical clinics are few, poorly equipped and under-staffed, schools are under-staffed and under-funded, and clean water service does not exist. Our company started hiring local people at our Cañariaco Norte project as soon as we started initial exploration. As exploration activities intensified, so did our commitments to community development. While our community development programs continue to evolve, they have already had an impact on employment opportunities, skill development and training programs, and quality of life and health in the region. I believe community development initiatives should start at the beginning of any exploration phase, long before the decision to build a mine is made.

The agricultural programs are having a particularly positive impact. In 2011, Candente initiated a program to improve quality and increase production of coffee for 400 small farmers in 22 different villages by 2013. We hired a coffee agronomist and field assistants to travel to villages and hold training events with coffee farmers. Recently, Candente contracted Progresso Agrario (Pro-A), a local NGO that works with farmers to increase their yield and quality, and to help develop their ability to market to buyers in eastern Canada and Europe.

Collaboration with NGOs boosts quality of life and builds trust

Targeted skill development and training programs

Candente introduced several international NGOs to the area and supports their efforts by providing introductions to people in the villages, as well as funding and assistance with field logistics. Save the Children International, a global NGO that works to improve children’s lives and protect their rights, now provides a number of villages with training programs on health, hygiene and nutrition in the home, and supports programs offered by the ministries of education and health in the region. The Clinton Giustra Foundation, whose mission is to narrow the wealth gap in the developing world by empowering the poor through effective, results-oriented, economic and social development projects, initiated a program offering free cataract surgeries. The program’s impact is significant because cataracts are the leading cause of blindness in the region. Working with independent NGOs can also be an effective way to help ease community opposition towards a mining company. Participating in NGO relationships with local communities results in more stimulating dialogue and improved transparency about the mineral project, and informs and empowers the community. The implementation of community development programs is a critical step in demonstrating commitment to the community, in building trust and in providing measurable benefits right from the start. Responsible mining development in remote and underdeveloped areas brings with it opportunity, and where there is opportunity, there is choice. And isn’t a choice something everyone deserves? CIM

A mining company cannot hire every eligible person in the community, so a successful community development program must incorporate programs that develop other sectors. Candente added training programs to provide skills in vehicle and light equipment operation, basic electrical and mechanic work, foodservice, educational assistance for students, and agriculture.

Sean Waller is president and director of Candente Copper Corp. He is a registered professional engineer with 30 years of international experience in mining project management, evaluation, design and operation, with a specific focus on large copper scale projects and gold projects. Prior to joining Candente he was with AMEC Americas Limited Mining Division in Vancouver, where he held the positions of vice-president of global business development and senior project manager.

Increased local employment opportunities Providing local employment is the easiest way to give direct benefit to the community. Around our site in Peru, both exploration activities and employment levels have increased. We also developed employment protocols with the local villages to manage expectations regarding the number of positions available and the distribution of jobs between the 48 villages.

38 | CIM Magazine | Vol. 7, No. 5

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upfront PROCESSING by Alexandra Lopez-Pacheco

Mill mods save money Barrick’s systematic approach to comminution efficiency

Courtesy of Barrick Gold

in Australia. “Some people have attempted to modify Bond’s equations to apply to the machines we have today, but to my mind they weren’t adequate.” Over the last 15 years, Morrell has gathered data from more than 130 plants across the globe to develop new rock tests and equations for standards based on modern equipment. His intention was primarily to use these standards for his work as a consultant in the design of new plants. Barrick’s team, however, saw the potential to use Morrell’s equations to benchmark energy efficiency in Barrick’s existing plants. “I Improvements at Barrick’s Cortez grinding circuit in Nevada led to a reduction of about 20 million kWh and 14,000 tonnes of thought it was a novel way greenhouse gas emissions per year. to take one tool for new plants and use it to assess existing plants,” says Morrimary ore grinding accounts for about 55 per cent of rell. But Morrell’s equations only measure a mill’s overall Barrick Gold’s electricity consumption and is the source energy efficiency, based on rock tests in the laboratory. For of over 1.7 million tonnes of greenhouse gasses per Barrick, that was just one piece of the puzzle. The company year. Because of numbers like that, a team headed by wanted other tools to evaluate energy efficiency at its mills Danny Hillier, senior manager of metallurgy at Barrick Gold with far more detail and precision. Australia Pacific, decided to tackle comminution as part of the company’s energy efficiency efforts in 2007. That work has now Appropriate measures paid off, saving the company over $15 million a year in energy. For this, Barrick turned to Robert McIvor from Metcom But before any savings could be achieved, Barrick needed to Technologies Inc. McIvor is a metallurgist and grinding sysovercome some major hurdles, says Lloyd Buckingham, Barrick tems specialist who has developed a method to measure Gold’s manager of metallurgy. “We didn’t have any effective energy efficiency in grinding circuits. standards to measure against,” he explains, “and that’s critical. His method is based on the discovery that there are two If you don’t measure against the standard, you don’t know if independent efficiencies in a grinding circuit: the percentage of you’re doing better, but the standard has to be specific to the the mill energy used on coarse particles versus fine particles, ore you’re grinding in order to benchmark your capabilities.” and how well the energy being applied to the coarse particles Fred Bond, an American engineer renowned for his contri- is being used, based on comparisons to standards. butions to the science of ore crushing and grinding, developed McIvor recognized that circuit production rates play a role a set of standards in the 1950s, but those are not suited to the in these two efficiencies. When the circulating load – or the complexities of modern milling. ratio of the amount of solids going through the ball mill to the “In the last 20 years or so, SAG mills have absolutely amount of solids going through the circuit – is low, the ball mill dominated the industry and they weren’t around when Bond is full of fines, resulting in wasted energy. A high-circulating was around,” says Stephen Morrell, managing director at load, on the other hand, is full of coarse material so the mill SMCC Pty Ltd., a comminution consulting company based wastes little energy on the fines and thus is far more efficient.

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“The ball mill circuit is the last stage of grinding before the mineral separation process so it’s extremely important because you also need to minimize over-grinding – the amount of energy spent on the fine particles. When you overgrind those particles, you may lose recovery downstream.” In his research, McIvor also found that the output of the pump and the performance of the cyclone determine the size of what is going into the mill. “And that is key in terms of how much energy is spent on the right size of particle,” he says. “Overall, if you set up your pumps and cyclones with a very high-circulating load and with very clean material, then you gain efficiency.” McIvor’s systematic approach also looks at the grinding media to make sure it is the right size for the material being ground. “Ball mills and SAG mills are very different,” he says. “The specific problems with SAG mills typically relate to the material not flowing through easily. If there’s a constraint in the discharge system, it causes a large problem with the throughput of the SAG mill. Those problems vary from mine to mine. To improve energy efficiency in such cases, the solution can lie in simply removing the constraint.”

Model mills Using McIvor’s expertise and a number of modelling tools, including JKSimMet and MillSoft, Barrick compiled its comprehensive strategy to achieve energy efficiency. The company has conducted fine-tooth surveys of 15 plants to date and plans to continue with the program across its operations. Each survey costs around $10,000. “Many of the plants have done several surveys,” says Buckingham. “You do the initial survey, look at the opportunities, then make the changes and do the survey after the fact.” Once a circuit has been sampled and benchmarked, the results from the tests are typically returned in a couple of months, and work can begin on the opportunities for improvements. “We usually see turnaround of improvements in 12 to 18 months,” he adds. The improvements and costs have varied greatly from plant to plant. But at African Barrick Gold’s Tulawaka gold mine in Tanzania, for example, energy efficiency went from 60 per cent to about 100 per cent of the new benchmark. “It was very simple,” says Buckingham. “They rerouted their cyclone overflow, which allowed them to avoid over-grinding; that prevented a lot of energy from being wasted. Then they increased the size of the grinding balls in the SAG mill, which overcame critical size issues, where rocks an inch-and-a-half in diameter don’t break up, so they just sit there and grind and grind. They increased the size of the balls and had an incredible improvement in efficiency.” So far, across its mines, Barrick has saved a lot of money as a result of these efforts, but that is not all. “When you improve your energy efficiency, you almost always reduce the consumption of grinding media. We haven’t quantified it, but we see the general trend,” says Buckingham, adding that improved energy efficiency also reduces greenhouse gas emissions and increases throughput. “When we jack up the tonnes, everybody’s happy,” he says. CIM

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August 2012 | 41

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upfront I N V E S TO R R E L AT I O N S b y C o r r e y B a l d w i n

First impressions

Courtesy of Myotte Bellamy Productions

Myotte Bellamy Productions brings mines to life before they happen

A screen capture of a Myotte Bellamy presentation created for Romarco Minerals Inc.

s soon as Romarco Minerals Inc. completed the feasibility study of its Haile gold mine, the hunt for investors was on. Romarco wanted to take the project to trade shows, and it was up to Dan Symons, vicepresident of investor relations, to contract out the production of a video presentation that would entice potential investors. Symons recalled an animated video that he noticed at a La Mancha Resources Inc. booth during a mining conference two years earlier. “I remembered that video,” he says. “The only way to create a video with such depth and scope is to take the time to take all the actual data and plug it in, and not just create a storyboard, like some firms will offer to do.” Symons wanted just that kind of high-quality product. He found out that the video was created by Myotte Bellamy Productions, a Montreal-based animation and effects production company run by business partners John-Michael Bellamy and Alexandra Myotte, and he quickly got in touch.

Complex, not daunting The process was not just about creating an eye-catching presentation, however. For Romarco, it was essential that the presentation display complex information in a clear way. “Mine sequencing is especially important on our project, where we’re doing concurrent reclamation, mining certain open pits and back-filling other ones,” says Symons. “We wanted to be able to show that in a visually dynamic way, as opposed to trying to explain it with an engineering drawing.” 42 | CIM Magazine | Vol. 7, No. 5

“For investors who don’t have the time or patience to read through hundreds of pages of the feasibility study technical report, the video gives them a visual of our proposed mine plan within just a few minutes.” “They were able to essentially recreate what this project will look like over the next 14 years,” says Symons, who is now taking the video around to mining conferences and trade shows. “The video usually catches people’s attention, and they come in and want to talk about the project,” he explains. “It allows us to show the different stages of development on the property and the current mine plan. It gives people a realistic view of the future.” Symons has not been the only one to take note of Myotte Bellamy’s work. The videos have generated interest in not only the mining projects but in Myotte Bellamy as well, which is quickly gaining a reputation for high quality standards. To date, they have worked on eight public projects, as well as a number of private projects, and are scheduled for three more this summer. Fundamentally, explains Bellamy, animation is an approachable and disarming medium. “In a certain way, everyone has been versed in animation, everybody knows what it can do. It brings you to a very open-minded standpoint on how you ingest information,” he says.

The art in mining Myotte and Bellamy met at Concordia University in Montreal and, in 2001, the two created Myotte Bellamy Productions and began providing media content for the entertainment industry. Their first mining contract came in 2008 with Iamgold’s expansion of the Westwood mine in Quebec. The company was attracted by the variety of work Myotte Bellamy was doing with both entertainment- and corporate-driven graphics. “They found that there was a nice fit between the cinema approach and the engineering approach,” says Bellamy. Myotte has an artistic background, whereas Bellamy’s is technical. He studied electro-technology in industrial process control and automation, and had his eyes set on working in the petrochemical industry. He eventually switched into design art and industrial design. Bellamy handles the art direction and the 3D animation sculpting, creating cohesive stories through the presentations.

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upfront I N V E S TO R R E L AT I O N S

Once he is done with the big strokes, explains Bellamy, his partner Myotte makes everything twinkle. “I’m the one doing the finishing work,” says Myotte, “the after-effect integration and special effects – visual motion graphics that require some artistic flair.” “With the combination of both the science and arts side,” says Bellamy, “I think that our clients are well-supported with a more interesting and entertaining product in the end, compared to just a straightforward corporate presentation.” Their clients are often surprised by the creative possibilities. While working on a presentation for an Agnico-Eagle project in northern Canada, Myotte Bellamy created music using throat-singing and animal sounds from the region. And Bellamy finds that sort of work especially rewarding. “We enjoy ourselves when clients allow us to participate in creating the presentation.” “Mining companies are usually very easy to work with,” says Myotte. “They know what they want, and they often give us carte blanche for the visual aspect, and they’re very willing to work with us if we propose something. What they want is for the data that they provide us to be shown accurately, but for everything else they’re very open.”

Dealing with data Along with the creativity, there is also a lot of number crunching. First, Myotte Bellamy must carefully work through a mining company’s surveying data, and only then can they begin working on data for such things as resource positioning and mine development. Romarco’s Symons understood that accurate data was key to creating a quality video. “We wanted to be as close to 100 per cent accurate as we could get with what we were doing,” he says. “To give that very accurate view, you have to be a little further advanced than just an exploration company with a couple of drill holes poked in the ground. You have to do some detailed engineering work.” Sharing great quantities of data can make any company hesitant. “They’re privy to a lot of internal information, particularly to drill data,” says Symons. “At the time we shot the video there was competition for some of the property on our border. Another mining company would have been able to look at that drill information and recognize the direction of the trend. We’ve since acquired that parcel of land, but at the time I had Myotte Bellamy sign a confidentiality agreement.” “We consider all the info that gets in the studio as being confidential,” says Myotte. “And when the project is finished, we always ask the client if we can put it on our website or show it to other clients.”

applications that are currently being developed is allowing greater interaction and control,” says Bellamy, who expects to soon be creating stereoscopic presentations using televisions equipped with 3D engines. He also anticipates using gaming technology to create virtual mines that can be explored in 3D. “Watching a video is only one aspect in the use of 3D,” explains Bellamy. “If there are certain areas of a mine that need to be studied, for instance, we can create the mine as a viewable file, but you control how close you want to get, or what angle you want to have. It’s more interactive.” Interactive technology is suitable not only for investors but for technical crews as well – virtual 3D maps could be used to evaluate current mine developments or plan how to proceed with a project. “The use of real-time 3D capture and visual processing can also allow exploration into areas that could be considered dangerous or hazardous,” Bellamy says. “Handheld 3D scanners can be used within an area to capture both structural data and its paired photographic information.” “All the animation, all the video that we create is very easily transcribed into 3D,” says Bellamy. “We’re able to control things very readily in video and even more so in 3D. We can mix and match them to create a presentation with a lot of impact.” CIM

3D not a horizon anymore What thrills Bellamy most is thinking ahead to what future technology will bring. “It’s quite exciting,” he says. “Most people are still thinking about their media in a very two-dimensional format, but it’s really wide open.” 3D and even holographic projections are now an option. “The speed, detail and the variety of technology in 3D August 2012 | 43

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upfront R E G U L AT I O N b y A n to i n e D i o n - O r te g a

EITI and the push for global transparency

Courtesy of EITI

Is Canada ignoring its leadership role in the extractive industries?

inancial institutions with exposure to oil, gas and mining companies are putting pressure on the Canadian government to implement the Extractive Industries Transparency Initiative (EITI), a global reporting standard created to ensure that the immense wealth generated by the global extractive sector is handled more responsibly and distributed more equitably. Through the EITI, companies disclose payments to governments, which in turn disclose what they receive from companies. These figures are then reconciled during a multi-stakeholder process. Last November, 17 of these financial institutions – managing a total of about US$75 billion in assets – sent the federal government a statement urging it to implement the EITI domestically, and to legally require more financial disclosure from Canadian companies, as the United States has done through the Dodd-Frank Wall Street Reform and Consumer Protection Act. “Although the initial focus of EITI was on emerging economies,” the statement reads, “it is increasingly relevant to developed countries as the extractive industry becomes more globalized.” It goes on to argue that the federal government’s implementation of EITI would both enhance the credibility of the initiative as well as “allow for a more informed public debate over the value of resource extraction in Canada.” Canada is the largest financial donor country to the EITI, and national institutions already follow the spirit, if not the letter, of the EITI, says Line Prud’homme, spokesperson at

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Natural Resources Canada: “Canadian federal, provincial and territorial legislation and regulations, and applicable policies and rules of Canadian stock exchanges, combined with parliamentary and legislative reporting, already promote a high level of transparency and accountability – meeting or exceeding, in every instance, the goals of the EITI.” The precedent, however, is there; Norway is an EITI-compliant country, following its implementation of the financial reporting initiative and the independent validation of its practices.

The Canadian situation The EITI was launched in 2002 and has set a standard for transparency in oil, gas and mining. Complying governments worldwide – currently totalling 14 – disclose the revenues they receive from extractive companies. These in turn publish information about payments made to governments, including bonuses, royalties, taxes and payments-in-kind. Citizens can thus see when these payments are correctly received – a way to ensure governments collect what is owed and to deter corruption in resource-rich countries. The U.S. committed to implement the EITI last September, followed by Australia, which launched a pilot a month later. A public comment period was held in Washington in April, as a first step toward the formation of the multi-stakeholder group that will be responsible for designing the U.S. EITI framework. According to Andrew Bauer, economic analyst at the Revenue Watch Institute, implementing the EITI in a country as big as the United States would cost somewhere in the range of

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upfront R E G U L AT I O N

US$1 million to US$5 million. “This is not a significant amount of money considering the potential public benefits to making these payments public,” he says. In the United States, the EITI will work hand-in-glove with the Dodd-Frank Act to ensure the public sees where money is flowing. The main challenge with implementing reporting requirements like Dodd-Frank in Canada is that, unlike the U.S., it has no national securities regulator but instead 13 different provincial and territorial regulators. According to Bauer, the best would be “to have mandatory disclosure rules that cover every province and territory, and the federal government.” But this has so far proven tricky. Bauer says implementing the EITI in Canada could be modelled on what has happened in Indonesia, which also contains several separate jurisdictions. “Indonesia is currently undergoing the EITI process, and it won’t be covering every province and district, simply because it would be an incredible job to cover everything. They’re focusing on the most resource-rich districts and provinces, and, of course, on the national government.” Michelle de Cordova, director of corporate engagement and public policy at Toronto-based NEI Investments and Ethical Funds, says Canada has traditionally been the leader in transparency and disclosure rules. NEI endorsed the letter to the Canadian government and, according to de Cordova, the national reputation is slipping. “We are keen to see that Canada takes a leadership position on these issues rather than lagging behind other jurisdictions. We want Canada to stay ahead.” “It’s in the interest of investors to have better governance in developing countries and resource-rich countries,” says François Meloche, extrafinancial risk manager at Bâtirente, which also supports domestic implementation of the initiative. “And good governance is a condition for sustainable development, which is good for the citizens of this country but also for investors in the sense that it creates economic activity and wealth, which is good for the companies we invest in.” Nevertheless, some have voiced skepticism over letting the EITI and its supporters have a voice on how countries spend funds generated by extractive industries. In a comment published in the Oil and Gas Journal last February, Michael Socarras, a litigator at Chadbourne & Parke LLP, went so far as to say that the EITI board has been infiltrated by “private interest groups” that use the corruption issue as leverage to “bypass institutions of the nation-state to obtain for themselves [...] a seat alongside government officials.” In a less politicized way, some have expressed doubts about the EITI’s efficacy in countries with poor democratic institutions, such as Afghanistan, which is an EITI-candidate country.

Many majors accustomed to EITI rules Among major mining companies, many have been disclosing payments to governments for years and have already

signed on to the EITI on a voluntary basis, including Talisman Energy, Barrick Gold, Centerra, Goldcorp, Kinross and Iamgold. “It’s important to recognize that there are a lot of Canadian companies that have decided that it’s in their own best interest to be open and transparent, because it reduces corruption and it builds trust within local populations,” says Revenue Watch’s Bauer. He notes that some companies “voluntarily disclose their payments to foreign governments. But it’s certainly the minority.” Indeed, majors may have a special interest in being transparent, since they often operate in remote communities that do not always understand the types of benefits that come with mine development. “One of the big challenges we face is that often our operations are located in very remote areas that have not seen the benefits from government programs that more urbanized areas have,” says David Deisley, executive vice-president of corporate affairs and general counsel at Goldcorp. “One of the concerns that communities have is that revenues generated by taxes and royalties paid by mining companies will end up being spent elsewhere and not benefit them.” There are many Canadian extractive companies that may soon be required to disclose payments to governments because they are registered on U.S. stock exchanges and will thus fall under Section 1504 of the Dodd-Frank legislation. These rules will require that all extractive companies registered with the Securities and Exchange Commission disclose payments to governments on a country-by-country and project-by-project basis.

Standards boost investment According to Meloche of Bâtirente, the existence of multiple standards for transparency may look confusing to investment institutions. “We would prefer that there be harmonization between the different authorities, between the E.U., the U.S. and Canada so that they don’t have different disclosure regimes to comply with,” he points out. The Mining Association of Canada (MAC) holds a similar position. “One of the things that MAC would find important in this whole approach is that there be consistency of application between the United States and whatever we would do in Canada with the EITI,” says Ben Chalmers, vice-president for sustainable development at MAC. “Many of our companies are listed in Canada and the U.S., so it’s very important to us to have a single set of rules to report to, so we wouldn’t have to do multiple reports for multiple jurisdictions.” As well as being simpler, the implementation of one global set of reporting rules could level the playing field. Differences in company disclosure practices can cause the entire industry to be contaminated by the malpractice of the few in the public eye, stresses de Cordova. “If not all the companies are participating in a transparency initiative in a country, there is a risk that poor practice by some can contribute to instability that affects all the companies operating in the environment. For us, it’s one aspect of trying to reduce risk in the extractives investment area.” CIM August 2012 | 45

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upfront MILL DESIGN by Dan Zlotnikov

Measure twice, build once

Courtesy of Detour Gold

Detour Gold takes the cautious route to mine development years prior to joining Detour Gold in early 2010. “We wanted to make sure that our consultants removed the maximum amount of risk possible from the project, and it was the reviewers' job to crosscheck that,” he explains. Some sort of audit of a feasibility study is almost a given, says André Allaire, vicepresident of markets, mining and metals at BBA. But, he notes, those reviews are usually done by investors. Allaire points out that with BBA’s studies posted on SEDAR or their clients’ websites as part of NI 43-101 compliance, new investors will frequently audit the technical work. Clients like Detour Gold do not frequently request audits. “As it happens, it was very beneficial, and we certainly support Detour’s aversion to risk,” Allaire says. “We got audited by different specialists. These people are “We could have done it with just one 40-foot SAG mill,” says Detour's Pierre Beaudoin, but he and his team very knowledgeable, so it gives rise to decided to build two, smaller, parallel circuits to avoid relying heavily on one giant piece of equipment. good discussions and further improvement for the design. It builds confidence, hen Detour Gold’s Detour Lake project comes both for the client and the consultant.” In all, Detour brought in eight world-class experts in their online in the first quarter of next year, the operation is expected to process 55,000 tonnes of low-grade respective fields: comminution, metallurgy, block modelling, ore per day and turn out an average of 650,000 open pit mining, capital cost estimation, pit slope, tailings design and water management. They were each assigned a part ounces of gold every year of its 20-year life. Pierre Beaudoin, Detour Gold’s senior vice-president of cap- of the study and, for the most part, Beaudoin told them: “You ital projects, is mindful that the industry has seen projects fail have two months, please find holes in it.” to meet predicted results in the past. Many have ended up having to add equipment or make other costly changes before Small sacrifice to avoid surprises At an average cost of $50,000, the reviews represent a wise projects could reach nameplate throughputs. These harrowing tales have taught Detour’s team some invaluable lessons and investment. Beaudoin says they add the confidence needed prior to the “go” decision and significantly reduce the risk of made them extra cautious in the design of this new mine. According to Beaudoin, not all mining companies are risk- an unpleasant surprise when the mine ramps up. He points out that a high degree of certainty was especially averse enough when they approach feasibility studies. While large companies can sometimes get away with slow ramp-ups, important in the case of Detour Lake, as the ore body is lowsingle-asset juniors like Detour cannot afford the same luxu- grade and in hard rock: low-grade ore leaves the operator a ries. That is why Beaudoin and his team opted for two separate smaller margin for error, and highly competent ore translates process streams instead of going with one large SAG mill, and into lower mill efficiency. “With low grades, you don't have the why they delayed delivering BBA’s feasibility study results by luxury high-grade deposits afford. It's crucial your design is robust to ensure low operating costs,” he explains. three months to conduct third-party reviews. Paul Staples, director of technical solutions at Ausenco’s Delays are better at early stages Canadian Minerals and Metals division, adds that the first couDelaying a new project is never a popular decision, but the ple of years of production are an especially sensitive time for payback can be worth it if it is done in the early stages. Beau- operators who are trying to pay back the capital investment. “If doin says an independent review of the feasibility study was you're not making that cash flow in the first couple of years, it standard procedure at Barrick Gold, where he had spent 16 can be quite a dramatic issue,” he explains.

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upfront MILL DESIGN

A Vancouver-based team from Ausenco reviewed the comminution circuit plans for Detour Lake, and they recommended adding a secondary crushing stage before milling and increasing the size of the gyratory crusher to account for possible future expansions. “In the last few years we've seen development of new mines with extremely hard and competent ores, and the existing database on these ores is quite small,” says Staples. “A lot of what the designers are doing is extrapolating into the extreme ranges of ore hardness, without adequately considering the operational challenges and loss of power efficiency these ores bring. The result is that the comminution circuit can be undersized,” Staples explains. The changes added an extra $40 million to the cost of the mine, but that short-term expense likely saved several times that amount in the long run. “If you were to do that after the fact, it would end up costing you $80 million instead of $40 million,” Beaudoin says. “And that is only the capital.”

Low grades need more care Beaudoin is convinced that many other projects would benefit from the added risk-mitigation provided by a robust audit approach but singles out low-grade deposits as especially in need of the added certainty. “It is difficult to expose your work and effort to the scrutiny of your peers, but ultimately, our role

is to protect the shareholders. If we need to bruise our egos a little in the process, it is worth it,” he adds. With the increase in the number of hard-rock projects will come an increased need for mitigating the risks associated with them, says Staples. As evidence, he points to the many other projects globally that have had difficulty reaching their expected throughputs because of hard ores. “Luckily, over the last couple of years, we've had quite high commodity prices, so the throughput shortfall has been mitigated somewhat by high revenue due to the high metal prices,” Staples says. “But if that hadn't been the case, we might have had some significant failures on our hands. So it's certainly a serious issue at the moment,” he explains. At the end of the day, Staples says, “plant throughput is king, and we as an industry cannot afford to get that wrong. What Detour has done is great because they’ve mitigated risk in this regard, and plant throughput and the project as a whole is likely to benefit.” Detour is set to start production in early 2013, and Beaudoin is not counting his chickens before they hatch. “I’m mindful that we’re going to have our challenges,” he says. “Commissioning and start-up is not exactly a walk in the park.” In the meantime, though, Detour’s management can breathe a little easier knowing that they have gone the extra mile to ensure the risks were given special consideration. CIM

From concept through closure Industry-leading expertise and project development with the right people in the right places front-end studies mineral and metallurgical process design open pit and underground mine design surface and underground infrastructure engineering tailings technology and mine water management geotechnical engineering and environmental services construction and project management

Australia - Brazil - Canada - Chile - Peru South Africa - UK - USA

at ts r e xp o -26 e r xp 4 ou INE er 2 3 t ee M mb 104 M e h pt oot e S B August 2012 | 47

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upfront Q&A by Correy Baldwin

Rocky road to recovery

Courtesy of USGS

The USGS’s Jack Medlin on the revitalization of geological science in Afghanistan

Clockwise from top left: Jack Medlin (at left in blue coat) and a USGS team in Afghanistan; DOD helicopters often brought members of the USGS team to areas of Afghanistan that are seldom seen; Some of the serene beauty of Afghanistan’s geology.

n 2004, a U.S. Geological Survey (USGS) team went to Afghanistan to assess the country’s natural resources, including its mineral resource potential, and its scientific capacity. Their task was difficult: they faced crumbling infrastructure, harsh environments and major security risks in a nation embroiled in an unpredictable war. Jack Medlin was, and is, the head of that team. Over the last eight years, the seasoned geologist has overseen comprehensive data collection and analysis, scientific and technical training, and the rebuilding of a natural resources scientific community. Last September, USGS released its latest assessment of Afghanistan’s mineral wealth, which supported significant riches that could be the key to rebuilding the country.

CIM: When you first went to Afghanistan, the USGS had not been there in over 25 years. What was the state of their geological community? Medlin: The Soviets had done a huge amount of geologic and mineral exploration work, and the Afghans were working right 48 | CIM Magazine | Vol. 7, No. 5

alongside them. But after the Soviets left in 1989, civil war broke out, the Taliban came in, and a lot of destruction took place. This was the period when the skill sets of Afghan geologists and engineers began to diminish. When we first visited Kabul, the AGS (Afghan Geological Survey) building was basically just a shell. There were very few doors and windows, and the plumbing and electrical fixtures had been stripped out. But some of the engineers and the geologists were still showing up to work, so that was an encouraging sign. We asked to see what reports they had on geology, minerals, water, oil and gas, and we were taken into a room that was in complete disarray. When the civil war began, the Afghan geologists and engineers took home most of the old Soviet reports to safeguard them. By 2004, they started to bring them back. Most of them have been returned, and we’re still working our way through them. These reports are a national resource.

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upfront Q&A

CIM: What has been involved in rebuilding Afghanistan’s scientific capacity? Medlin: Our primary focus in returning to Afghanistan was to help rebuild the AGS into a 21st century organization. The whole information and computer technology era had passed them by, as have the huge developments in remote sensing technology, which is essential in a country as large as Afghanistan with so little transportation infrastructure. We started out assessing facilities, the skill sets of the Afghan geologists and engineers, and the quality and quantity of data and information that were available. Our main focus was retraining – we largely do on-the-job training. We wanted to get them to the point where they can do it themselves. We proposed a five-year, two-phase program to rebuild the AGS. First, we worked with the Afghans to begin to organize, compile and digitize all of the old existing data, most of which was 50 or 75 years old, to produce a preliminary assessment of the mineral resources of the country. Next we proposed to gather new data and information to verify the old data and fill in gaps and then produce a final assessment. That final assessment has never been completed. CIM: You have worked with the Department of Defense (DOD). What does this involve? Medlin: The preliminary assessment we released in 2007 highlighted 24 high-priority mineral deposits. The DOD’s Task Force for Business and Stability Operations came to us in 2009 and asked us what needed to be done to make these deposits more attractive to investors. We said we needed to be on the ground to verify the old data and information, and to collect new data. So we partnered with the Task Force, which provided helicopters and security. When we went to one of the 24 mineral sites, we landed in DOD helicopters, and we landed with a large number of military people who provided security for us to carry out geologic verification and collect samples. It’s not often that a geologist gets out of a Chinook or Blackhawk helicopter after 20 or 30 marines have landed and formed a circle of security, which then moves with you as you’re looking at the rocks and collecting samples. It’s been a great experience. They’ve been a great partner. Without the Task Force, we would never have been able to get to these sites and verify our preliminary findings. CIM: Is all of the on-the-ground data collected this way? Medlin: It’s very difficult for us to get into the field because of security issues. We found that if you went into the field, it meant that an armoured convoy would have to transport you. And you don’t have much flexibility because of land mines; you can’t just jump out of a vehicle and run over and hammer on a rock. Everything is very controlled. But we discovered that the Afghan engineers and geologists were very well-trained in field methods and field techniques because they’d been heavily involved with the Soviets, the

French and the Germans in the past. They have become our eyes and ears in the field because there are very few places that are off-limits to them. They’ve been able to go to places that we would never be able to go. CIM: What is the significance of resource development to growth and stability in Afghanistan? Medlin: When we first returned to Afghanistan we really didn’t know what the mineral potential was. By the time we released our preliminary assessment, it was obvious that this country had a number of very large, world-class mineral deposits – iron, copper, copper-gold and rare earths. We think the rare earth deposit in Helmand province is comparable to the Mountain Pass rare earth deposit in California or Bayan Obo in China. We discovered that the Soviets had done extensive work there, mapping the rocks, collecting samples and trenching. The remnants of these activities can still be seen on satellite imagery. So the Soviets were aware that it was a rare earth deposit, and they studied it extensively. None of that got out to the Western world. If you develop these world-class deposits, then this development, if done properly, can provide additional income to the Afghan government to pay for running the country. At the same time, it is going to create jobs. In terms of just having economic growth in the country and having a viable stream of funds coming in to fuel the economy, the development of mineral resources is almost a must. But you’ve got to make sure this wealth benefits the people. CIM: How do you ensure that this happens? Medlin: There are a lot of people lying awake at night thinking about that. First you’ve got to have the rule of law, a modern mining law, and then you’ve got to have transparent enforcement of that law. That levels the playing field. Groups like the World Bank, the Asian Development Bank, USAID [United States Agency for International Development], and many others are working hand-in-glove with the Afghans to make sure that the legal and regulatory framework are transparent and enforced. The transparency and anti-corruption issues are going to be hard, hard nuts to crack. Most people believe that. A lot of people know that it could go wrong very easily, and they’re working with the Afghan government to try to keep it from going wrong. CIM: What role can the USGS play in this? Medlin: Everything we do, we insist that it be publicly available. There’s a lot of data and information out there on these deposits that we have worked with the Afghans to compile, and it’s all open to potential investors. By making data publicly available, we’re saying equal access to data during the tendering and bidding process is not going to be a problem. If all of this turns out the way everyone wants it to turn out, this country will be on its way to being self-sufficient and sustainable. CIM August 2012 | 49

Courtesy of Nuna Group

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MINING IN THE EXTREME By Dan Zlotnikov

Miners have already extracted the easy deposits. A growing proportion of new discoveries are in highly challenging conditions, in settings where temperatures dip below -50 C, and even short exposure to the elements can cause severe frostbite; or deep below the surface where the air ripples with the Earthâ&#x20AC;&#x2122;s heat; or high on mountain plateaus where engines and lungs alike must labour much harder to get enough oxygen. If todayâ&#x20AC;&#x2122;s miners are to keep up with the still-growing demand for their products, they must keep getting more efficient and effective in the face of these environments. Many operators and suppliers have already taken up the challenge, and their experience has pushed back the frontiers of mining.

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High-latitude operations 67º N Kiruna iron mine, LKAB - underground Kiruna, Sweden 68º N Hope Bay gold project, Newmont Mining – underground (care and maintenance), Hope Bay, Nunavut 69º N Taimyrsky copper-nickel mine, Norilsk - underground, Talnakh, Russia 71º N Mary River iron ore project, Baffinland Iron Mines - open pit (in development), North Baffin Island, Nunavut 75º N Polaris lead-zinc mine, Cominco - underground (closed), Little Cornwallis Island, Nunavut

N 85o 80o

THE ARCTIC FRONT The natural resource rewards reaped in the Far North have been massive – but so have the challenges. Charlie Toeppner, area manager at underground mine contracting and engineering firm Cementation Canada, says these challenges begin before workers ever arrive at the site. At a project above the Arctic Circle in Hope Bay, Nunavut, the only way of getting equipment to the site was by sea lift at a port only clear of ice for six weeks a year. “When the equipment arrives at port, you’re only two weeks away from freezing,” says Toeppner. “Now all your water and hydraulic lines have to have arctic-grade oils and fluids. There are all kinds of little things like that.” A burst hydraulic line may be a minor repair job in the Sudbury area, but at Hope Bay you had better have remembered to pack replacement lines onto the sea lift. Anything not delivered by sea would need to be flown in with a DHC-5 Buffalo cargo plane at great expense. Toeppner says air freight deliveries to the site cost 10 to 12 times the amount of sea freight.

75o 70o Grant Pearson, vice-president of business development Arctic circle 66.3o at Vancouver-based Nuna Logistics, also highlights shipping as the big challenge. Nuna, with the Ekati and Diavik diamond mines among its clients, provides logistics, infrastructure development, transportation, construction and contract mining services to mines in Canada’s Far North. Pearson says the remoteness of sites and the lack of infrastructure add even greater complexity to cold, high-latitude projects. He describes how Nuna must build roads on top of permafrost – frozen soil that may become dangerously unstable if it is allowed to thaw. To mitigate these risks the company builds its roads using fills – layering material on top of the soil, rather than cutting into the permafrost layer. This provides a

Courtesy of Nuna Group

Ice roads, carefully groomed and monitored, are a critical winter-time link to the diamond mines of the Northwest Territories.

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extremely cold. We will see more failures as the temperature approaches -40 C and below on any piece of equipment,” he explains, despite using machinery designed to withstand cold weather conditions. “If we had to shut down all the time when it was cold, we wouldn’t be operating,” Pearson points out. Toeppner recalls a site visit to Hope Bay when the wind chill brought the temperature down to -67 C. He and his colleagues had gone underground, leaving a scoop tram idling at the surface. Despite their being away for only 40 minutes, they had to drive the tram back and forth for 10 minutes before the arctic-grade steering fluid started flowing properly and the driver was able to turn a corner. Dave Faber, product line manager for Caterpillar large mining trucks, explains that overcooled engines and cold fluids in hydraulic and powertrain systems lead to early component failure. Engines running cold tend to wear faster, and sooting in the combustion chamber leads to piston ring failures and oil consumption. Cold oil congeals and fails to properly lubricate bearings and gears. Caterpillar uses auxiliary heaters in vehicles destined for cold environments, but Faber also draws attention to recent advances in electronics. To prevent overcooling, Caterpillar used to install mechanical louvers on the radiators, which added another potential point of failure and another component to maintain. Today, Faber says, variable-speed cooling systems that did not exist 10 years ago allow Caterpillar trucks to slow the fans based on the engine temperature – and eliminate the need for louvers. But it is in liquids that Faber says the greatest gains have been made. During the early 2000s, Caterpillar, working with oil companies around the world, developed specifications for improved oils and greases including synthetics, which perform very well in extreme cold climates. “You want the oil to flow when it’s very, very cold, and as the machine heats up and works you want it to thicken up and provide protection for the component when it’s hot. The trick is to build a fluid that will do both,” he says. Viscosity modifiers are one area in which Faber says Caterpillar has made tremendous breakthroughs. The reward has been a decrease in early-hour component failures and increased efficiency for the operators, who do not have to spend as long warming up the machines.

Courtesy of Hudbay Minerals

Hudbay Minerals’ Constancia project is located 4,500 metres above sea level in the Peruvian Andes.

protective layer for the permafrost and minimizes the risk of failures in the road embankment. Equipment must be chosen and operated with care, notes Pearson. For example, Nuna tries to limit crushing work to temperatures above -30 C. “Crushing rock is a high-maintenance activity that is compounded as the weather gets

DOWN DEEP

“If you look at mining trucks, you get 50,000, 60,000, even 100,000 hours on the surface. You’re lucky if you get 25,000 hours underground,” says Bob Onucki, senior global account director for mining at Sandvik. 52 | CIM Magazine | Vol. 7, No. 5

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“You’re driving down a tunnel, five by five metres, so you bang into the walls occasionally,” he explains. “It’s also humid, it’s damp and it’s dirty.” The deeper the mine, the higher the ambient temperature – and engines do not like excess heat. Rock temperature in deep mines can get above 55 C, which means – although there are refrigeration systems in place to cool the air to 30 C or less – it is still necessary to decrease the time that both people and equipment can work before having to stop and cool down. Greater depth also means increased capital costs, says Damien Duff, director of research and development and COO at the Centre for Excellence in Mining Innovation (CEMI). According to Duff, the cost increase is not linear either; doubling the depth of a mine may mean paying significantly more. As depths increase, so do rock stresses, requiring more reinforcement. Rick McClellan, resins product manager at roof and ground support specialist Minova International, explains that the rock at these depths tends to be more fragmented and harder to reinforce by traditional means. In the past, cementing anchor cable bolts in place meant waiting up to a week for the cement to cure, halting blasting and development work nearby. Resins, however, can fully cure in five minutes, drastically reducing development downtime. Higher heat at depth also puts higher demands on ventilation systems. Energy expenditures account for an average of 40

Hot Rocks The age and composition of rock, as well as its proximity to volcanic activity, all affect the geothermal gradient – the rate at which rock temperature increases with depth. The Earth’s average gradient is 2.5 to 3 C/100 metres. In deep mining regions, such as South Africa or Ontario, however, the miners enjoy high grades and a relatively low thermal gradient. In other words, if the gradient for the 3.9-kilometredeep TauTona mine in South Africa were within the average range, the rock temperature at the bottom of the mine would be around the boiling point, rather than the more manageable 60 C it is. In Canada, though Xstrata Copper’s Kidd Creek Mine near Timmins is the country’s deepest at almost 3,000 metres, miners in Sudbury confront higher heat at the rock face – 48 C at 2,400 metres – in Vale’s Creighton Mine. The reason, says CEMI’s Damien Duff, “is that the rocks in Sudbury are about 1,850 million years old whereas those in Timmins are about 2,700 million years old, i.e. a lot older. Secondly, there is some evidence of a buried, as yet un-cooled intrusion of mafic magma sitting far below the Sudbury Basin which could be keeping things toasty.”

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per cent of a Canadian underground mine’s operating costs, and 80 per cent of that is spent on ventilation, says Duff. CEMI is engaged in evaluating the benefits of ventilation on demand (VOD) to decrease these costs. VOD can be used to supply air flow to only those parts of the operation that need it. CEMI’s goal is to develop an economic model and use it to determine the benefits VOD can bring to specific mines, including permitting additional productive capacity in parts of the mine by using ventilation not needed elsewhere. Accelerated wear may be acceptable for equipment, but workers are a different story. Onucki says workers must take regular breaks while underground, and the amount of time spent below the surface is extended by the time it takes to simply get to deep work sites. “In South Africa, miners can sometimes take hours just to get to their workplace,” explains Onucki. “Workers must descend through multiple shafts and drifts to get to the depths that some mines are at today.” As conditions grow more difficult, a lot of energy is spent on maintaining a safe environment for humans, which is why automation is one of the holy grails of underground mining. Automated mining equipment can be utilized for longer periods of time, Onucki says, which brings obvious efficiency gains. Despite the promise offered by automation, though, both Onucki and Duff agree that it will be some time before the

54 | CIM Magazine | Vol. 7, No. 5

industry fully adopts the technology available. “Tests have been done for years to demonstrate remote operation of some of the equipment. The technology exists, but can we do it reliably or effectively all the time? That’s the issue,” says Duff. Automating a truck or a shovel might eliminate the need for three operators, but create the need for one or even two maintenance technicians, explains Onucki. Safety features on major equipment will normally halt operations in the case of a malfunction, he says, and the faster a technician can address the issue, the less time lost for the mine. Nonetheless, Onucki notes the significance of a potential 33 per cent reduction in some areas of the workforce, as well as the advantages of a safer work environment. Alternatively, human operators and automated systems can integrate well, Duff says, adding that “mechanized excavation is being looked at in a number of places, to speed up operations that are traditionally manual.” Self-monitoring capability, currently on board modern systems, can inform operators about oil levels, hydraulic pressures and cutting surface performance, and can further boost mine efficiency, he says. Bruce Dunlop, a Redpath Group senior vice-president of mining operations, whose company was among those who worked to make the Kidd Mine the world’s deepest base metal mine, says automation – and even remote operation – is still not feasible for mine development work. Working con-

Courtesy of Redpath Group

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A member of a Redpath team inspects a rock mass high above the Grasberg mine in Indonesia

ditions change too often and much of the work cannot be done from the inside of a cab at all, he explains. Compared with a surface mine, “people underground spend more time outside of the machine, doing work.” And this, says Dunlop, creates a human resources challenge. At early stages of development, when the installation of the permanent ventilation system is still underway, the only defences against the heat are closely monitored rest breaks. “People get tired of working in that kind of heat day in, day out,” he says. To keep the project wellstaffed, Redpath had to bring in people from farther afield – adding relocation and accommodation expenses to the cost of the project.

tres, often on bad roads. “The roads are narrow, there are a lot of switchbacks, blind corners, and non-guardrailed precipices,” he says. “There is also other traffic on the road, whether from other projects or from illegal miners hauling ore.” This challenge is only going to get more severe as the project ramps up to its peak of 2,500-3,000 construction workers. “Now we’re trying to become a little more organized around the mobility of people by using buses and having big shift transfers,” he explains. “By comparison, in Sudbury or Timmins, you take for granted that people will get to and from work themselves.” Meagher points to similar issues with emergency response times. A Hudbay project in northern Manitoba would be accessible by plane most of the year. In the case of the Andes, even if the project were to build an airstrip, it would only be accessible via planes rated to fly at high altitude, limited in the number of passengers they could carry and it would still frequently be inaccessible due to adverse weather. Altitude sickness, or “soroche” as it is called by the locals, is a critical concern for the operation, says Meagher. “I’ve been at the site numerous times, and you notice the difference,” he says. “I always have a lingering headache. You notice you’re not as alert as you would be otherwise.” To mitigate the risk, the project has a full-time physician at the site, and all new arrivals are monitored for blood pressure, heart rate, and oxygen saturation levels. Mine equipment also suffers from altitude sickness if not properly acclimatized. Caterpillar’s Dave Faber says engines are rated for operation up to approximately 9,000 feet (2,743 metres). Every 1,000 feet (304 metres) of elevation beyond that result in approximately three per cent loss of power, which would leave a project as high up as Constancia almost 15 per cent short. High-altitude modifications, which convert the standard 163-tonne Caterpillar 793F haul truck to the high-altitude

BEYOND THE CLOUDS

Located in the Peruvian Andes, the proposed rim of Hudbay Minerals’ Constancia open-pit, copper-molybdenum mine will be 4,500 metres above sea level. This is Hudbay’s first high-altitude project, and Cashel Meagher, the company’s vice-president, South America, says they quickly learned how many different aspects of daily work they had been taking for granted – and learned they could not do this at Constancia. Many of the challenges, Meagher explains, are logistics-related. Access to Constancia involves travelling 150 kilomeAugust 2012 | 55

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Liebherr, which does not use distributors, also faces staffing challenges posed by the high altitude. “Probably a third of our people who try to go to altitude are rejected for medical reasons,” Gildea points out. “You have to find people who are not only technically competent but are also physically able to work there.” Thankfully, the diesel-electric design also eliminates the need for a drive shaft, transmission, and differential, resulting in potentially decreased maintenance needs for the vehicle. Faber says reducing maintenance requirements is an area of focus for Caterpillar as well. “There’s a considerable amount of work being done in modularity in the base vehicle design, so that instead of working so much on the vehicle, you can remove components and send them away to a place where there’s a better labour pool,” he explains. From an operator’s perspective, Meagher feels that technological challenges have been well-addressed when it comes to highaltitude operations. There is room for efficiency gains, however. “We need to get better at working in tough environments,” he says. “I feel the engineering controls put in place on highaltitude projects are very good and now it’s about trying to derive some efficiencies out of them, but I think those will be hard-fought.” CIM

Credit: Albert González Farran

793F HAA version, include twin compressor turbo chargers that allow the engine to get enough oxygen and operate at full power in the rarefied air. Thin air dissipates heat slower, and Liebherr has taken an innovative approach to reducing heat generation at the source on its diesel electric mining trucks, says product manager Kevin Gildea. With an optional 53:1 final drive gear ratio, the company was able to decrease the torque on the electric motors that drive its trucks, causing the motors to generate less heat while maintaining the same speed on grade. This meant decreasing the trucks’ top speed, Gildea says, “but we looked at our profiles and talked to our customers, and the top speed reduction was compatible with existing mine speed limits.” De-rating diesel engines is also often necessary and is optimized to a specific site based on the altitude as well as on the ambient temperatures of a specific site. For one operation at 4,800 meters, for example, Liebherr’s diesel engines had to be de-rated by 12 per cent in order to meet the air intake requirements, Gildea says, but the nature of the diesel-electric design means that the truck is able to extract power from the engine at its most efficient operating point. The engine turns an alternator which ultimately powers AC electric wheel motors, rather than directly drive the wheels of the truck.

GOLD RUSH IN THE SKY There are a number of large-scale mining operations nearing 5,000 metres above sea level, however, the small-scale and artisanal gold mines under the glaciers that border the town of La Rinconada in southeastern Peru sets the high mark for mining. At 5,100 metres, the town is considered one of the highest permanently inhabited settlements. Tough economic times and rising gold prices have also made it the world's most elevated boomtown. Once home to a few thousand, the population has skyrocketed over the last decade. For years, infrastructure development has hardly kept pace. Sewage and mercury from gold extraction spoil the local water and electrical blackouts are common. Nevertheless, in the last five years, the population has doubled to 50,000.

Four women pick through waste rock from a gold mine above La Rinconada in southern Peru. 56 | CIM Magazine | Vol. 7, No. 5

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Peter Braul

Les mineurs qui veulent faire l’exploitation des gisements situés dans les Andes doivent être prêts à affronter le manque d’eau, d’énergie et d’oxygène.

Les mines aux extrêmes Par Dan Zlotnikov

Le plus dur reste à extraire. Aujourd’hui, on trouve un nombre croissant de nouveaux gisements dans des conditions extrêmes, à des températures dépassant parfois les -50°C et où une exposition aux éléments, ne serait-ce que pendant cinq minutes, suffirait pour provoquer des engelures sévères; ou bien en dessous de la surface du sol où l’air ondule sous les effets de la chaleur de la Terre; ou encore sur des plateaux montagneux où les moteurs autant que les poumons sont mis à rude épreuve pour assurer un apport d’oxygène suffisant. Aujourd’hui, si les mineurs souhaitent satisfaire la demande toujours croissante de leurs produits, il leur faudra devenir plus performants dans ces 58 | CIM Magazine | Vol. 7, No. 5

environnements extrêmes. De nombreux exploitants et fournisseurs ont déjà relevé ce défi, et leur expérience a repoussé les frontières de l’extrême dans le domaine de l’exploitation minière.

L’extrême froid

Les récompenses de l’exploitation minière dans le grand Nord sont énormes, les défis aussi. Charlie Toeppner, directeur de secteur chez Cementation Canada, un bureau d’études spécialisé dans les mines souterraines, explique que ces défis commencent avant même que les mineurs n’arrivent

sur le terrain. Il cite l’exemple d’un projet dans la baie d’Espoir du Nunavut, où le seul moyen d’amener l’équipement sur le site est le pont maritime, le port n’étant accessible, car dégagé de sa chape quasi-permanente de glace, que pendant six semaines de l’année. La rupture d’une conduite hydraulique peut donner lieu à une réparation mineure dans la région de Sudbury, mais à la baie d’Espoir, il faut espérer que les conduites de remplacement font bel et bien partie des provisions embarquées sur le pont maritime. Tout ce qui n’a pas été livré au site par voie maritime devra être envoyé par avion cargo DHC-5 Buffalo à un coût très élevé. M. Toeppner Nuna offre des services de travaux miniers aux exploitations dans le Grand Nord, incluant la mine de diamants Ekati de BHP Billiton. ajoute que le coût des livraisons sur le site en fret aérien est de 10 à 12 fois supérieur au coût de combustion entraîne des défaillances au niveau des segde la même livraison en fret maritime. ments racleurs ainsi qu’une grande consommation d’huile. Grant Pearson, vice-président du département de Pros- L’huile froide se fige et ne peut plus lubrifier correctement pection de clientèle chez Nuna Logistics, souligne, lui aussi, les paliers et les engrenages. Chez Caterpillar, on utilise des l’importance du défi présenté par le transport. Nuna propose brûleurs auxiliaires dans les véhicules destinés à être opérés des services de logistique, de développement d’infrastruc- dans des environnements froids, mais M. Faber souligne ture, de transport et de construction, ainsi que des services également les avancées récentes dans le domaine électronminiers contractuels, dans le grand Nord canadien. ique. Ainsi, explique Faber, les nouveaux systèmes de M. Pearson explique que l’isolement des sites et le manque refroidissement à vitesse variable permettent aux camions d’infrastructure viennent ajouter un niveau de complexité Caterpillar de ralentir le régime des ventilateurs en fonction encore plus important aux projets menés dans le froid dans de la température du moteur. des latitudes élevées. De plus, l’équipement doit être choisi et Mais c’est au niveau des liquides, explique-t-il que les utilisé avec beaucoup de précaution. Chez Nuna, on tâche avancées les plus impressionnantes ont été effectuées. Au d’éviter les travaux de concassage en dessous de -30°C. début des années 2000, Caterpillar, en collaboration avec des « Le concassage des roches est une activité qui a un taux compagnies pétrolières d’un peu partout au monde, a très élevé d’interventions pour l’entretien, rendues encore développé des spécifications pour des huiles et des graisses plus complexes par les températures extrêmement froides. de meilleure qualité, notamment des huiles synthétiques qui On observe plus de problèmes au niveau des équipements sont très bien adaptées aux climats extrêmement froids. dès lors que la température s’approche de ou dépasse les Ceci a permis de réduire le taux de défaillance précoce des -40°C », ajoute-t-il, même en utilisant des équipements composants et d’obtenir une meilleure rentabilité du temps conçus pour supporter des conditions climatiques extrême- de travail des opérateurs, qui perdent moins de temps à ment froides. « Si on devait arrêter les travaux à chaque fois chauffer les équipements. qu’il fait froid, on ne pourrait tout simplement pas fonctionner », déclare M. Pearson. Dave Faber, responsable de la gamme de produits dans la « Si on regarde l’exemple des tombereaux de chantier, on division des tombereaux d’exploitation minière chez Caterpillar, explique que les composants dans les moteurs en obtient 50 000, 60 000, voire 100 000 heures en surface. exposés à des refroidissements excessifs avec des fluides Sous terre, on se compte heureux d’en obtenir 25 000 froids circulant dans le système hydraulique et dans le heures », explique Bob Onucki, directeur global des comptes groupe motopropulseur sont sujets à des défaillances préco- à la division des mines chez Sandvik. « On conduit dans un tunnel de cinq mètres sur cinq; ces. Les moteurs fonctionnant à froid ont tendance à s’user plus rapidement, et l’accumulation de suies dans la chambre alors, on heurte les parois de temps en temps. Sous terre,

L’exploitation souterraine

August 2012 | 59

Courtoisie de Nuna Group

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Courtoisie de Xstrata Nickel

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Sous terre au niveau de 9500 de la mine Kidd Creek de Xstrata Nickel

c’est humide et moite, et c’est sale. » Plus la mine est profonde, plus la température ambiante est élevée – et les moteurs n’aiment pas les excès de chaleur. Des mines plus profondes impliquent également des coûts en capital plus lourds, explique Damien Duff, directeur de la R&D (recherche et développement) et chef de l’exploitation au CEMI (Centre for Excellence in Mining Innovation). D’après lui, l’augmentation des coûts n’est pas non plus linéaire : le fait de doubler la profondeur d’une mine peut entraîner des coûts bien plus élevés. En outre, la forte chaleur dans les profondeurs demande un effort plus important de la part des systèmes de ventilation. Les dépenses énergétiques sont responsables d’environ 40 pour cent des coûts d’exploitation d’une mine souterraine canadienne, et 80 pour cent de ce montant est consacré à la ventilation, explique M. Duff. Le CEMI se charge de l’évaluation des avantages de la ventilation sur demande (VSD) afin de réduire les coûts dans ce domaine. La VSD permet de restreindre l’acheminement de l’air dans les mines aux seules zones de l’exploitation qui en ont réellement besoin. L’objectif du CEMI est de développer un modèle économique et de l’utiliser pour déterminer les avantages que la VSD peut apporter à des mines spécifiques – comme, par exemple, augmenter la capacité de production dans certaines zones de la mine en récupérant les surplus de ventilation non utilisés ailleurs. Une usure accélérée des équipements peut être considérée acceptable, mais il n’en est pas de même quand il s’agit des ouvriers. M. Onucki explique que les mineurs doivent faire des pauses régulières en milieu souterrain et que le temps passé sous la surface est prolongé par le simple fait qu’il faut ajouter le temps de déplacement pour se rendre jusqu’aux sites d’exploitation en profondeur. « En Afrique du 60 | CIM Magazine | Vol. 7, No. 5

Sud, il faut parfois plusieurs heures aux mineurs pour se rendre sur le lieu d’exploitation. Ils doivent descendre en passant par plusieurs puits et galeries pour atteindre le niveau profond auquel se trouvent certaines mines aujourd’hui. » Au fur et à mesure que les conditions se dégradent, l’énergie dépensée à maintenir un environnement sécuritaire pour les hommes va en croissant, ce qui fait que l’automatisation reste l’un des grands objectifs de l’amélioration des conditions de l’exploitation minière souterraine. Comme l’explique Onucki, le matériel d’exploitation des mines, s’il est automatisé, peut être utilisé plus longtemps, ce qui apporte des gains évidents d’efficacité. L’automatisation d’un camion ou d’une pelle remplacera peut-être le travail de trois opérateurs, tout en créant un nouveau besoin de deux techniciens d’entretien, explique M. Onucki. Normalement, ajoute-t-il, les dispositifs de sécurité sur les équipements principaux bloquent les opérations en cas de dysfonctionnement. Et si la rapidité de l’intervention du technicien pour régler le problème peut être améliorée, cela réduira d’autant le temps de production perdu. En revanche, M. Onucki souligne l’attrait d’une réduction potentielle de 33 pour cent de la main-d’œuvre dans certains domaines et des avantages associés à un environnement de travail plus sécuritaire. Sinon, explique M. Duff, les opérateurs humains et les systèmes automatisés peuvent bien s’intégrer. « Les fonctions d’auto-surveillance, embarquées sur les systèmes modernes, permettent d’informer les opérateurs des niveaux d’huile, des pressions hydrauliques et des performances des surfaces de coupe, et peuvent renforcer ainsi l’efficacité de la mine », explique-t-il. Bruce Dunlop, l’un des vice-présidents directeurs de l’exploitation minière pour le groupe Repdath, laquelle société a contribué à faire de la mine de métaux de base Kidd la mine la plus profonde du monde, explique que l’automatisation – ni même l’exploitation à distance – ne sont toujours pas possibles pour le travail de développement des mines. Les conditions de travail changent trop souvent et la plupart des travaux ne peuvent pas être effectués depuis l’intérieur d’une cabine. Par rapport à l’exploitation minière à ciel ouvert, « les mineurs travaillant sous terre passent plus de temps à l’extérieur de leur équipement à faire le travail. »

La haute altitude

Au Pérou, le site proposé pour la mine de cuivre-molybdène à ciel ouvert dans le cadre du projet Constancia de la société Hudbay Minerals se trouve à 4 500 mètres au-dessus

du niveau de la mer. Il s’agit du premier projet de Hudbay en haute altitude, et Cashel Meagher, vice-président de la société pour l’Amérique du Sud, explique que beaucoup des défis du projet sont afférents à la logistique. Pour accéder à Constancia, il faut entreprendre un trajet de 150 kilomètres, souvent sur des chemins en mauvais état. « Les routes sont étroites et comportent des lacets, des virages aveugles, et des précipices sans aucune glissière de sécurité. Il y a aussi du mouvement sur ces routes, en raison d’autres projets en cours ou de la présence de mineurs dans l’illégalité qui transportent des minerais. » Cette difficulté ne fera que s’accentuer au fur et au mesure que les effectifs augmenteront vers un maximum de 2500 à 3000 ouvriers en construction quand le projet battra son plein. Le mal de l’altitude, ou « soroche » Le camp Constancia de HudBay Minerals dans les Andes du sud du Pérou. comme l’appellent les locaux, est un souci critique de l’opération, explique M. Meagher. « Je suis allé sur le site à plusieurs reprises, et reaux, explique Gildea, « mais nous avons étudié nos profils on remarque la différence. A chaque fois, j’ai un mal de crâne et expliqué la situation à nos clients, et la réduction de la persistent. Je constate aussi que l’on n’est pas aussi vigilant vitesse maximale s’est avérée compatible avec les limites de que dans d’autres conditions », explique-t-il. Pour atténuer vitesse existantes dans les mines. » les risques, le projet a un médecin sur le site à plein temps, Liebherr, qui n’utilise pas de distributeurs, s’est également et tout nouvel arrivant est controlé pour la tension artérielle, retrouvé confronté à des diffultés pour trouver du personnel le rythme cardiaque et le taux de saturation en oxygène. à même de travailler en haute altitude. « Environ un tiers de Les équipements aussi souffrent également du mal de l’al- nos gens qui se présentent pour le travail en haute altitude titude s’ils ne sont pas acclimatés correctement. Dave Faber, sont rejetés pour des raisons médicales. Il faut trouver des de chez Caterpillar, explique que les moteurs sont testés pour travailleurs qui sont à la fois techniquement compétents et fonctionner à des altitudes atteignant les 9000 pieds environ physiquement capables de travailler dans ce milieu », (2743 mètres). Chaque 1000 pieds (304 mètres) d’élévation explique M. Gildea. au-delà de cette altitude entraîne une perte de puissance Heureusement, la conception diesel-électrique élimine d’environ 3 pour cent, ce qui pourrait signifier, pour un pro- aussi le besoin d’un arbre d’entraînement, de la transmission jet aussi haut-perché que Constancia, une perte de près de et du différentiel, ce qui réduit considérablement les besoins 15 pour cent. d’entretien du véhicule. Les modifications pour le travail en altitude – qui converFaber déclare que les besoins d’entretien réduits sont égatissent le camion de transport Caterpillar 793F de 163 tonnes lement au cœur des préoccupations de Caterpillar. « On traen la version 793F HAA haute altitude – comprennent des vaille beaucoup sur la modularité dans la conception de base chargeurs turbocompresseurs jumelés qui alimentent le du véhicule; ainsi, plutôt que de travailler autant sur le véhimoteur avec une quantité d’oxygène suffisante pour per- cule, on peut retirer des éléments pour les expédier à un lieu mettre un fonctionnement plein-régime dans des conditions où il y a une meilleure offre de main-d’œuvre qualifié », d’air raréfié. explique-t-il. Dans l’air raréfié, la chaleur est dissipée plus lentement; Du point de vue de l’opérateur, M. Meagher est d’avis que aussi, chez Liebherr, on a adopté une approche innovante les défis technologiques ont été bien pris en compte pour ce pour réduire la production de chaleur à la source sur ses qui est des opérations en haute altitude, mais des progrès tombereaux diesel-électriques, explique le responsable Pro- sont encore possibles au niveau de l’efficacité. duits Kevin Gildea. Avec un rapport d’engrenage de com« Nous devons améliorer nos capacités à travailler dans des mande facultatif de 53:1, la société a pu réduire le couple de environnements rigoureux. Je pense que les contrôles techserrage des moteurs électriques qui entraînent ses tombe- niques mis en place dans des projets en haute altitude sont reaux; ainsi, les moteurs génèrent moins de chaleur tout en très bien conçus, et maintenant il s’agit d’en tirer des gains maintenant la même vitesse en pente. Cette modification a d’efficacité, mais ce sera un travail de longue haleine. » ICM nécessité une réduction de la vitesse maximale des tombeTraduit par Karen Rolland August 2012 | 61

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Upper crust It is more challenging to work in the high Chilean Andes than almost anywhere else in the world, but the region also holds huge rewards for miners who thrive on adversity. This is why work at Kinross’ Maricunga mine, 4,500 metres above sea level, has elevated meaning. By Peter Braul

“Everyone knows that Maricunga is an extreme mine, one of the hardest ones,” says Richard Lizana, the mine’s technical services manager. “A lot of people are proud to work here; it’s something everyone talks about. A lot of people say that if you’re able to work at Maricunga, you can work anywhere in the world.” Temperatures on any given day can fluctuate by 30 degrees Celsius or more; access roads can be buried in snow and climbing a set of stairs can knock the wind out of you. These hardships make the bottom line for Maricunga even more impressive: in 2011, the mine produced more than 230,000 ounces of gold, and at US$457 per ounce, is among the company’s lowest cost per ounce operations.

The people

Courtesy of Kinross/Marcelo Lagos

Though Kinross expects a 25 per cent loss in efficiency from its haul trucks, the strongest effects of operating a mine at the top of the world are felt by humans, not equipment. “Any kind of activity outdoors is really difficult,” says Lizana.

“Some people have a hard time working there because their bodies aren’t ready for it. For some others it’s easy. But spirit and the motivation to do a good job are most important.” The conditions rely on a certain degree of grit from Kinross’ employees. “Sometimes, you have to plan for bad weather, but for altitude you can’t do anything,” Lizana says. According to José Bugueño, Kinross’ health and safety manager for South America, workers have an annual medical examination, and all visitors who spend at least one night on site must have a medical assessment prior to the visit, but there is always room for improvement in dealing with rarefied air. “The effects of altitude on the human body are not well defined,” he explains. Having spent time there since early 1993, Guillermo Contreras, now Kinross’ corporate responsibility and community relations manager for Chile, feels for the workers at the site. “Working at 4,500 metres elevation, you have significantly less oxygen,” he points out. “So there is a potential for headaches and altitude sickness.

Kinross’ Maricunga mine, 4,500 metres above sea level, is 120 kilometres east of Copiapó, Chile.

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MARICUNGA

“It’s extremely hard for the people who work there, working seven days a week, doing 12-hour shifts,” says Contreras. In addition to equipping all of the mining vehicles and buildings with oxygen tanks, Kinross has built procedures for cold as well. “We have protocols to move all people working outside inside because they can be frozen in a matter of minutes if the wind changes,” explains Contreras. In the case of a “viento blanco” incident, where snow blows so heavily that visibility is nil, mining is suspended. “Our winter operations regulations, in effect from April 15 to September 15, require shelters in all production areas of the mine,” says Bugueño. “They are kept up, so that should workers need them, they are stocked with food, places to sleep, baths and heating.” Owing to high winds and snow, road access to the site can be cut off in minutes, trapping miners at elevation. The management expects to lose 13 days of each year to adverse conditions, though the actual number of lost days varies from year to year. “The last three years, we didn’t lose any days,” Contreras says. But in 1997, before Kinross acquired Maricunga, the site saw some of the worst weather ever recorded, and the mine was shut down for two months. “It was a 100-year storm,” says Contreras, who was working as an environmental manager for Amax, the previous operator of the mine. “We had 6.5 metres of snow and you couldn’t see any buildings. You couldn’t see anything. In total, 150 people were rescued with four helicopters that we rented. I was in charge of that. The VP contacted me and said ‘Guillermo, rent all the helicopters you can find that can fly safely at that altitude.’ “We learned a lesson, and we changed the access road,” he says. “The one that we use to access the site now was built a year later. The original road had 110 kilometres above 4,000 metres; the new one has just six kilometres above that.”

| project proﬁle

Pressure drop The health effects of altitude While the proportion of oxygen in the air remains constant at all elevations, it is the low atmospheric pressure of high altitudes that creates problems for the human body. The air is less dense, but human lung capacity remains the same, requiring more breaths to get the same amount of oxygen. Atmospheric pressure at sea level is typically around 101 kPa; it drops to 70 kPa by 3,000 metres and beyond this elevation, the average person will likely experience some symptoms of acute mountain sickness; nausea, headaches, dizziness and lack of sleep are all common. There are other possible, more serious, health consequences as altitude increases. Retinal haemorrhages can occur between 4,200 metres and 4,500 metres, resulting in temporarily blurred vision. But the lungs are where elevation really takes its toll. As much as 10 per cent of people rapidly ascending to 4,500 metres, where the atmospheric pressure is just 57 kPa, will experience fluid buildup in their lungs – known as a high-altitude pulmonary edema. This can cause shortness of breath, fever, frothy spit, and can be fatal. An edema (buildup of fluid) can also occur in the brain, where it may cause confusion and loss of coordination, and can lead to death. Statistically speaking, relatively few people have been to such heights, so science is skimpy on why some react better than others. Other than to approach altitude gradually and spend time acclimatizing, there is not much anyone can do to predict his or her body’s ability to withstand the added stress. And miners who return to sea level after every shift do not fully acclimatize like those who remain at high altitude year-round. Altitude medications can help relieve symptoms, as can the tradition in the Andean region of chewing coca leaves, but neither addresses the underlying medical conditions. The only solution, especially in the case of edemas, is immediate access to medical attention at low elevation.

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project proﬁle | M A R I C U N G A 1

All images Peter Braul

FACTS & FIGURES

64 | CIM Magazine | Vol. 7, No. 5

MINING RATE:

40,000 tonnes per day (nameplate capacity)

MINE LIFE

2028 including reserves 2048 including reserves and resources 5.9 million ounces of Proven and Probable Reserves 3.7 million ounces of Measured and Indicated Resources

GRADE

0.58 grams to 0.68 grams per tonne

ALTITUDE

Between 4,200 metres and 4,500 metres above sea level

STAFF

420 employees Seven days on/seven days off 105 employees each 12-hour shift

ENERGY

Connected to the main grid by a 110 kV power line that travels 180 km uphill from Copiapó Installed capacity of the mine is 26 MW, 32 MVA Contracted capacity is 16 MW Backup power from five 1.7 MW diesel generators

WATER USE

Less than 95 litres per second

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| project proďŹ le

When circumstances are extreme, mining processes need to be kept simple and efficient. â&#x20AC;&#x153;Maricunga is an open pit mine with three pits: Verde East, Verde West and Pancho,â&#x20AC;? Lizana says. â&#x20AC;&#x153;Those pits are mined with front loaders and trucks, and all the ore is transported to the primary crusher which can treat 48,000 tonnes per day.â&#x20AC;? â&#x20AC;&#x153;Then weâ&#x20AC;&#x2122;ve got a secondary and tertiary crushing area, and all that ore is transported to the heap leach area by trucks,â&#x20AC;? Lizana explains. â&#x20AC;&#x153;The heap leach is dumped in a sequence of 10-metre lifts. The pregnant leach solution percolates from the bottom of the leach pad, and then we have carbon Following a massive snow storm in 1997, the route to the mine was altered to limit the extent of the road that is above adsorption, elution and gold 4,000 metres. refining. The whole process takes around 90 days.â&#x20AC;? In winter months, operators ensure there is an ore stock- The history pile big enough to keep things flowing for 10 days to 15 days, People began exploring the Maricunga belt in the 1980s; should mining become impossible. Anglo American first discovered the site. Over the years, the Mixed ore from the more recently developed Pancho pit property has changed hands several times, but Kinross has contains more than eight times as much cyanide-soluble cop- intentionally kept ties with those most experienced in the area. per as mixed ore from Verde because of the presence of chal- â&#x20AC;&#x153;When you have a guy with seven years or more of experience, cocite. That copper has a negative effect on gold recovery and thatâ&#x20AC;&#x2122;s something,â&#x20AC;? notes Contreras. â&#x20AC;&#x153;We have to retain those on the reusability of the cyanide solution. people because those are the kind of leaders who feel they can Cyanide consumption due to copper rose to between 22 bring something to our company.â&#x20AC;? per cent and 38 per cent of total cyanide use in 2007, so Kinross commissioned SRK Consultants to build a sulphidation, acidification, recycle and thickening plant, which will begin operation this month. â&#x20AC;&#x153;In theory, SART is a wonderful process that allows you to recu perate the cyanide and allows you to separate the copper,â&#x20AC;? Contreras says. The SART plant will allow Kinross to continue to mine the Pancho pit, which previously was expected to double cyanide consumption. #"!! " Cyanide is trucked up a snaking road " that can be treacherous in the winter, so reducing losses on site also means reduced transportation risk.

Captions: 1. Inside the garage 2. The secondary crusher and ore stockpile 3. Inside the new SART plant

!! ! " " ! " " ! "

August 2012 | 65

Peter Braul

The mine

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For nearly 10 years, from 1998 to 2008, Contreras was Kinross’ country manager for Chile, a position he took on shortly after the company first purchased interest in Maricunga. Kinross edged its way into the property in two stages: first by buying Amax’s 50 per cent stake in 1998 and then the remaining 50 per cent with the acquisition of Bema Gold in 2007. The first half of that decade was not easy. The gold price had been sinking since operations began in 1996, and by 1998, gold’s value had decreased by 9.5 per cent to US$294.24. The price of gold plummeted another six per cent by 2001 (reaching US$271.04), when operations ceased. “For two-and-a-half, almost three years, we were closed,” Contreras says. But things were far from idle, though Kinross had commissioned closure plans for the mine. “We didn’t shut down the whole operation; we kept the heap leach pads circulating and recovering gold,” he says. “We completed the physical closure plan, and it was approved by the government. We explored the surrounding area in all the mining claims that were already controlled by us. We expanded ourselves, particularly in the Pancho area.” By 2003, with gold having rallied to US$361.38, the decision was made to reopen the mine. Gold was not showing any signs of slowing down, and production hit its nameplate capacity of 40,000 tonnes of ore per day in November 2005, with prices up to US$476.67. By acquiring Bema Gold in 2007, Kinross became the 100-per cent owner of Maricunga, which was riding enormous profits from gold prices as high as US$664.75. And now with prices nearly 2.5 times that, Maricunga’s margins, like its location, are sky-high. CIM

GIVING BACK Jazzing it up, Rio Tinto style Rio Tinto Alcan is a firm supporter of education, contributing to various efforts to help students stay in school. The company recently collaborated with the Festival International de Jazz de Montréal, co-presenting and backing myriad music-oriented educational programs. “We’re serious about stay-in-school programs and we’re pleased to be able to continue supporting the educational mission of the Festival International de Jazz de Montréal,” said Erik Ryan, senior vice-president, communications and external relations, Rio Tinto Alcan. “Rio Tinto Alcan supports innovative projects that demonstrate leadership, and using music as a way to educate our young people is a perfect example.” For this year’s jazz festival, Rio Tinto Alcan worked together with Canada’s biggest percussion school, Samajam, to encourage people, young and old to take part in various workshops from June 30 to July 7. Since 2010, Rio Tinto Alcan has given more than 2,400 students from disadvantaged neighbourhoods the chance to participate in free percussion workshops at Montreal-based schools.

66 | CIM Magazine | Vol. 7, No. 5

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projet en vedette | M A R I C U N G A

Peter Braul

La mine Maricunga de Kinross, située à 4 500 mètres au-dessus du niveau de la mer, se trouve à 120 kilomètres à l’est de Copiapo au Chili.

Travailler en altitude au Chili Par Peter Braul

Pour le travail en altitude dans les Andes chiliennes, la barre a été placée plus haute que n’importe où au monde, à peu d’exceptions près, mais la région réserve des récompenses extraordinaires aux mineurs qui sont dans leur élément dans des situations d’adversité. Dans ce contexte, le travail à la mine Maricunga de Kinross, située à 4 500 mètres au-dessus du niveau de la mer, est un travail de haut niveau. La température au cours d’une journée donnée peut fluctuer de 30 degrés ou même davantage. Les chemins d’accès peuvent être rendus impraticables par les chutes de neige, et le simple fait de monter un escalier peut vous couper le souffle. Sachant que de telles épreuves font partie du pain quotidien du travail minier à Maricunga, le résultat net de cette mine est d’autant plus impressionnant : en 2011, le site a produit plus de 230 000 onces d’or. À 457 $ US l’once, le coût d’exploitation se situe parmi les plus bas de l’entreprise.

68 | CIM Magazine | Vol. 7, No. 5

« C’est bien connu que la Maricunga est une mine extrème, parmi les plus durs », raconte Richard Lizana, directeur des services techniques pour la mine. « La plupart des gens sont fiers de travailler ici; tout le monde en parle. On dit souvent que si on peut travailler à la Maricunga, on peut travailler n’importe où au monde. »

Les gens En définitive, bien que Kinross compose avec une baisse d’efficacité de 25 pour cent dans ses camions long-courriers, ce n’est pas les équipements qui sont les plus affectés par les épreuves de l’exploitation minière en haute montagne, mais plutôt les êtres humains. « N’importe quelle activité en plein air comporte des difficultés supplémentaires », raconte Monsieur Lizana. « Pour certains, c’est difficile, car leur corps n’est pas encore acclimaté aux conditions particulières du travail en

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MARICUNGA

altitude. Pour d’autres, c’est facile. Le plus important, c’est l’état d’esprit, puis la motivation du travail bien fait. » Les conditions font que les employés de Kinross doivent faire preuve d’un certain cran. « Parfois, il faut se préparer à affronter des intempéries, mais pour se préparer au travail en altitude, il n’y a rien à faire », dit Monsieur Lizana. Selon José Bugueño, directeur chargé de la santé et de la sécurité des personnes chez Kinross, Amérique du Sud, les ouvriers subissent une visite médicale une fois par an, mais il reste toujours des choses à faire pour améliorer la capacité de travailler dans un milieu où l’air est raréfié. « Les effets de l’altitude sur le corps humain sont encore mal connus », explique-t-il. Ayant passé plusieurs séjours sur le site depuis début 1993, Guillermo Contreras, actuellement le directeur chargé de la responsabilité civile de l’entreprise et des relations avec la communauté chez Kinross au Chili, compatit avec les ouvriers qui y travaillent. « Le travail à 4 500 mètres d’altitude se fait dans un milieu où il y a 25 % d’oxygène en moins », précise-t-il. « Donc, il y a toujours la possibilité des maux de tête et du mal de l’altitude. » « C’est extrêmement difficile pour les gens qui y travaillent – sept jours par semaine, 12 heures par jour », explique Monsieur Contreras. En plus d’équiper tous les bâtiments et les engins miniers avec des bouteilles à oxygène, Kinross a mis en place des procédures pour affronter le froid. « Nous avons des protocoles pour que tous les ouvriers qui travaillent à l’extérieur soient ramenés à l’intérieur, car ils peuvent geler en l’espace de quelques minutes si le vent change de direction », explique Monsieur Contreras. En cas d’incidence de « viento blanco » (voile blanc), quand le vent souffle tellement fort que la visibilité est nulle, on suspend l’activité minière. » « Notre règlement intérieur concernant les opérations en hiver (en vigueur du 15 avril au 15 septembre) exigent qu’on ait des abris dans toutes les zones de production de la mine », raconte Bugueño. « Ces abris, dotés d’un système de chauffage, sont maintenus pour que les ouvriers puissent trouver, en cas de besoin, des aliments, un lieu pour dormir et ce qu’il faut pour se laver. » Pour cause de rafales et de poudrerie, les chemins d’accès au site peuvent être coupés en l’espace de quelques minutes, piégeant ainsi les mineurs en haute altitude. La direction prévoit la perte de 13 jours chaque année pour cause de conditions adverses, mais le nombre réel de jours perdus varie d’une année à l’autre. « Les trois dernières années, nous n’avons pas perdu un seul jour », raconte Contreras. En 1997, en revanche, avant l’acquisition de Maricunga par Kinross, le site a subi parmi les pires conditions météorologiques déjà enregistrées, et la mine a été fermée pendant deux mois. « C’était un orage centenaire », raconte Monsieur Contreras, qui travaillait alors comme directeur environnementale chez Amax. « On a eu six mètres et demie de neige ; on ne pouvait voir aucun bâtiment. On ne voyait rien du tout. En tout, 150 personnes ont été évacuées à l’aide de quatre hélicoptères que

| projet en vedette

nous avions loués. C’est moi qui m’occupais de ça. Le vice-président m’a contacté en disant, “Guillermo, trouve-moi tous les hélicoptères capable de voler à cette altitude en toute sécurité, puis tu les loues”. » « Nous avons appris une leçon, et nous avons changé le chemin d’accès », dit-il. « Celui qu’on emprunte pour accéder au site aujourd’hui a été construit un an plus tard. Le chemin précédent comprenait 110 kilomètres au dessus de 4 000 mètres; le nouveau n’en a que six (kilomètres) à ces altitudes. »

La mine Lorsque les conditions sont extrêmes, les procédés miniers doivent rester simples et efficaces. « La Maricunga est une mine à ciel ouvert comportant trois fosses : Verde est, Verde ouest et Pancho », raconte Monsieur Lizana. « Ces fosses sont exploitées à l’aide de chargeurs frontaux et de camions, puis tout le minerai est transporté jusqu’au concasseur principal, qui peut traiter jusqu’à 48 000 tonnes de minerai par jour. » Sous le concasseur principal, on garde une réserve de minerai que les opérateurs alimentent pour s’assurer que, pendant les mois d’hiver, la réserve soit suffisamment importante pour permettre de continuer à travailler pendant 10 à 15 jours si jamais il devient impossible de continuer à exploiter la mine. » « Puis on a une zone de concassage secondaire, puis tertiaire, et tout cela est acheminé à la zone de lixiviation en tas par camion », explique Monsieur Lizana. « Le lixiviat est alors déversé en une séquence de levages de 10 mètres. La solution de lixiviation enrichie percole alors à travers le remblai de lixiviation, puis il y a l’adsorption sur charbon actif, l’élution et l’affinage de l’or. Pour compléter le procédé, il faut 90 jours environ. » Cependant, il faudra peaufiner le procédé. Le minerai complexe extrait de la fosse Pancho, développé bien plus récemment, contient plus de huit fois plus de cuivre soluble dans le cyanure que le minerai complexe provenant de la fosse Verde, à cause de la présence de chalcocite. Ce cuivre-là a une incidence négative sur la récupération de l’or ainsi que sur les possibilités de réutilisation de la solution de cyanure. La consommation de cyanure due au cuivre s’est augmentée à un taux entre 22 et 38 % de l’usage global du cyanure en 2007. Donc, Kinross a confié à SRK Consultants la construction d’une installation de SART (sulfuration, acidification, recyclage et épaississement), qui sera mise en opération dès le mois d’août. « En théorie, la SART est un procédé merveilleux qui nous permet de récupérer le cyanure tout en séparant le cuivre », raconte Monsieur Contreras. L’installation SART permettra à Kinross de continuer à exploiter la fosse Pancho, pour laquelle les prévisions précédemment avancées annonçaient une consommation de cyanure deux fois plus importante. Le cyanure est transporté en camion sur un chemin serpentant qui peut être traitre en hiver. Ainsi, en réduisant les pertes sur le site, on réduit en même temps les risques inhérents au transport. ICM Traduit par Mark Stout

August 2012 | 69

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Reader survey results | Résultats du sondage des lecteurs A valuable source of information | Une source précieuse d’information Magazines are still the go-to source for relevant information, and, within the industry, CIM Magazine is a vital resource, according to the 2012 CIM Magazine Reader Survey. Eighty-eight per cent of respondents list magazines as their source for mining news, 15 per cent more than online news sites and 30 per cent more than newspapers. Nearly nine of every 10 respondents find CIM Magazine’s content a valuable source of information. ICM Les magasines sont encore une source incontournable pour trouver des informations pertinentes. Au sein de l’industrie, CIM Magazine est une ressource essentielle selon le sondage des lecteurs de CIM Magazine 2012. Quatrevingt huit pour cent des répondants citent les revues comme étant leur source principale pour les actualités Top five sections of CIM Magazine | du secteur minier – soit 15 pour cent de plus que les Le top cinq des cahiers de CIM Magazine sites d’actualités en ligne et 30 pour cent que les 82% News | Actualités journaux. Près de neuf répondants sur 10 considèrent 71% Project Profile | Projet en vedette que le contenu de la revue CIM Magazine constitue une 66% Feature Article | Article vedette source précieuse d’information. 63% Technical Abstracts | Résumés techniques 53% Mining Lore | Le folklore minier Hot commodity | Un produit très recherché CIM Magazine is a useful tool for mining industry professionals: 75 per cent of respondents report the content is relevant to their profession. It is also more than a source of information: it is an enjoyable read. Nearly two-thirds of those who took the survey say they look forward to reading each issue. Once they finish reading, respondents report passing the magazine on to colleagues or peers: on average, more than two people read each copy of the magazine. According to respondents, most read every issue of CIM Magazine, and 54 per cent report reading more than half of the issue. Our readers are dedicated professionals, who prioritize keeping up-to-date on industry news and value the editorial insights we provide. ICM Le CIM Magazine est un outil très prisé par les professionnels du secteur minier. 75 pour cent des répondants affirment que le contenu est pertinent pour leur métier. Il représente plus qu’une simple source d’information ; il offre également un moment de lecture agréable. Près de deux tiers de ceux qui ont répondu au sondage affirment qu’ils anticipent la sortie de chaque numéro. Une fois leur lecture terminée, les répondants affirment qu’ils partagent la revue avec des collègues ou leurs confrères et consœurs. Ainsi, en moyenne, plus de deux personnes lisent chaque exemplaire du magazine. Selon les dires des répondants, la plupart lisent chaque numéro de CIM Magazine, et 54 pour cent indiquent qu’ils lisent plus de la moitié du contenu du numéro. Nos lecteurs sont des professionnels dévoués pour qui estiment que se maintenir au courant des actualités de l’industrie est une priorité et qui apprécient les analyses perspicaces de nos chroniqueurs.

An active readership | Un lectorat engagé Whether it is through interaction with professional peers, through print, or via the internet, CIM Magazine readers are looking for ways to learn about the industry and stay abreast of recent developments. Respondents report being engaged in technical training and continuing education programs, and play an active role in the industry by attending conferences, reading newsletters, and interacting with peers on Linked In. Our readers are not just picking up the magazine to read about the industry, they are also using it to zero in on online and educational resources, share ideas with colleagues and find out about industry events. ICM Que ce soit en discutant avec les confrères et consœurs, en consultant les journeaux ou Internet, les lecteurs de CIM Magazine recherchent des moyens de s’informer sur l’industrie et de rester au courant des développements récents. Les répondants affirment être engagés dans des stages techniques ainsi que des programmes de formation professionnelle continue. De plus, ils s’impliquent activement dans l’industrie en assistant à des colloques, en lisant des bulletins d’information internes et en discutant avec les confrères et consœurs sur le réseau LinkedIn. Nos lecteurs ne font pas seulement que s’informer sur l’industrie avec le CIM Magazine ; ils s’en servent également pour se diriger vers les ressources éducatives en ligne, partager les idées avec les collègues et s’informer sur les évènements de l’industrie. Circulation | Diffusion Readers per copy | No de lecteurs pour chaque exemplaire Total audience | Lectorat Issues per year | Numéros par année

10,822* 2.4** 25,972 8

* Publishers Sworn Statement, November 2011. Attestation de l’éditeur, novembre 2011 ** Based on 2012 reader survey. Chiffre basé sur le sondage des lecteurs 2012

070-095 CIM Community v11_Q8_Layout 1 12-07-17 11:36 AM Page 71

A reusable resource | Une ressource réutilisable

CIM Magazine readers read and attend events to keep up-to-date on peers’ activities |

More than two-thirds of respondents report keeping the magazine for future use, and 65 per cent report referring back to an issue of CIM Magazine one to five times per year. While CIM Magazine readers report most interest in the “News”, “Project Profile” and “Feature” sections of the magazine, respondents also look to the magazine for technical information, commentary and entertaining stories from the rich history of mining. Other sections respondents report a high level of interest in include the “Eye on Business” column, which provides experts’ views on legal and financial matters, and the “Innovation Showcase,” which highlights new equipment and tools. When it comes to subject matter, respondents express most interest in articles about technology and innovation. The 2012 Reader Survey indicates readers want to see more coverage of mine and mill operation, mine and milling methods and mine and mill design – topics we will explore in greater depth in the future. ICM

Plus de deux tiers des répondants affirment qu’ils gardent le magazine pour pouvoir le consulter plus tard, et 65 pour cent affirment se référer à un ancien numéro de CIM Magazine une à cinq fois par an. Bien que les lecteurs du CIM Magazine indiquent le niveau d’intérêt marqué pour les cahiers « Actualités », « Projet en vedette » et « Article vedette» , les répondants consultent également le magasine pour y trouver des informations techniques, des chroniques et des anecdotes divertissantes cueillies dans la riche histoire de l’exploitation minière. Parmi les autres cahiers qui suscitent l’intérêt d’un grand nombre de lecteurs, il y a la chronique « Un œil sur les affaires », qui fournit les points de vue d’experts sur des questions financières et juridiques, ainsi que le « Présentoir de l’innovation », qui met en vedette les nouveautés en équipement et en outillage. En ce qui concerne les sujets traités, les répondants semblent porter le plus grand intérêt aux articles ayant pour sujet les technologies et les innovations. Le sondage des lecteurs 2012 indique que les lecteurs désirent voir plus de reportages sur l’exploitation des mines et l’opération des broyeurs, la conception des mines et des broyeurs, et les méthodes de travail de l’exploitation minière et du broyage – des sujets que nous approfondirons davantage à l’avenir.

CIM Magazine’s readers don’t stop after the last page is turned! | Pour les lecteurs de CIM Magazine, tourner la dernière page ne représente pas la fin de la séance

Les lecteurs de CIM Magazine lisent et assistent aux événements pour se tenir au courant des activités des confrères et consœurs 83% Conferences | Conférences 78% Magazines | Magasines 67% Email | Courriel 57% Newsletters | Bulletins électroniques 34% LinkedIn | Réseau LinkedIn 23% Online forums | Les forums de discussion en ligne

CIM Magazine readers lead the industry | Les lecteurs de CIM Magazine sont aux devants de l’industrie According to the 2012 Reader Survey, the demographics of CIM Magazine readers align with the industry as a whole: males represent 85 per cent of the audience, and most readers are highly educated, with 90 per cent holding a bachelor’s degree and 42 per cent a postgraduate degree. CIM Magazine readers are also highly specialized professionals, who hold positions of power in the industry. According to the 2012 Reader Survey, 24 per cent of CIM Magazine readers work in design, engineering or planning, and 27 per cent are classified as senior management. ICM Selon le sondage des lecteurs 2012, les tranches démographiques représentées par les lecteurs de CIM Magazine s’alignent avec celles de l’industrie dans son ensemble, à savoir : 85 pour cent des lecteurs sont des hommes, et la plupart des lecteurs ont un niveau d’études avancé – avec 90 pour cent possédant un diplôme universitaire et 42 pour cent détenant un diplôme de deuxième cycle. De plus, les lecteurs de CIM Magazine sont des professionnels hautement spécialisés qui occupent des postes à responsabilité dans l’industrie. Selon le sondage des lecteurs 2012, 24 pour cent des lecteurs de CIM Magazine œuvrent dans la conception, la planification ou l’ingénierie, et 27 pour cent sont classés cadres supérieurs.

62%

54%

visit a website after reading CIM Magazine | se rendent sur un site web après la lecture de CIM Magazine

pass the magazine on to someone else | passent le magazine à quelqu’un d’autre

49% will attend a CIM event (National or Branch) | assisteront à un événement CIM (national ou local)

070-095 CIM Community v11_Q8_Layout 1 12-07-17 11:36 AM Page 72

CIM Magazine attracts all ages, from students to seasoned professionals | CIM Magazine attire des lectures de tous les âges, depuis les étudiants jusqu’aux professionnels chevronnés < 25 25 - 34 The 2012 Reader Survey also reveals CIM Magazine readers are actively engaged in technical training and continuing education programs. Respondents value opportunities to enhance their knowledge of the industry and trends, and are interested in professional development. ICM Le sondage des lecteurs 2012 révèle, par ailleurs, que les lecteurs de CIM Magazine sont activement engagés dans des stages et des programmes de formation professionnelle continue. Les répondants apprécient les occasions d’approfondir leurs connaissances de l’industrie et de ses tendances, et s’intéressent aux développement professionnel.

CONGRATULATIONS TO THIS YEAR’S SURVEY WINNERS!

Félicitations aux gagnants du sondage 2012 ! 1st Prize - 1e prix A CIM Conference & Exhibition Toronto 2013 attendance package Un voyage tous frais payés au Salon commercial et foire de l’emploi CIM 2013

(Approx. Value $1,000) — Jim Sarvinis, Mississauga, ON 2nd Prize - 2e prix iPad® — Tom Logan Stony Plain, AB

3rd Prize - 3e prix iPod touch® — Charles Lemire Sorel-Tracy, QC

35 - 49 50 - 59 60+

CIM Magazine readers take it all in | Les lecteurs de CIM Magazine s’intéressent à tout

64% attend seminars, conferences, workshops | assistent à des séminaires, des conférences ou des ateliers 49% take professional development courses | participent à des stages de développement professionnel 44% do in-house training | participent à des stages de formation internes 33% take continuing education courses | participent à des stages de formation continue 29% participate in University/College courses | participent à des cours universitaires de premier ou de deuxième cycle

EXPERIENCE THE REDESIGNED CIM MAGAZINE ONLINE Find the entire issue, in English or French

KEEP THE CONVERSATION GOING Stop by for a visit and leave us a comment at www.cim.org/magazine.

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CIM community Distinguished Lecturer

Fresh air in the underground Vale’s Cheryl Allen discusses implementation of underground automated ventilation systems By Alexandra Lopez-Pacheco

Cheryl Allen graduated from the South Dakota School of Mines & Technology in 1984 and developed her career as a ventilation engineer as she moved around Canada and the United States. At the time, her husband’s career as a mining engineer was the priority, so whenever his work took him to a new city, she looked for an engineering job there. In doing so, she discovered there was a demand for ventilation engineers. “I realized becoming a technical specialist would allow me to apply engineering skills at a higher level and set my own course for future challenges,” she says. Throughout the course of her career, Allen has learned hands on from many technically gifted employees and applied those practical lessons to designs and research opportunities. Today, she is principle ventilation engineer at Vale. “To share experience is definitely a career highlight,” she says, referring to her role in the CIM Distinguished Lecturers Program, where she will be speaking on the challenges of installing an underground automated ventilation system and on how to overcome them. CIM: How common are underground automated ventilation systems? Allen: Europe is leading the way. Here in Canada, it’s just beginning. There are some mining companies in North America that have started the process, and Vale has three systems in progress, but when we started there was nothing to copy in North America. We took our own steps forward. We had risk assessments at every phase to ensure we really understood what to do before the systems were put in. CIM: What are the benefits of an automated ventilation system? Allen: Being able to understand what’s happening with your processes un-

personnel and disciplines involved when you put in an automated ventilation system and maintain it.

derground in real time is a top benefit. We can better understand where energy is going because we have real-time data and a massive amount of data already collected to analyze. If you’re actually measuring something, it’s much easier to know what you’re doing right. An automated ventilation system is more efficient and flexible, as automation allows the system to be diverted to specific areas of the mine quickly and makes volume changes easily and quickly. CIM: How complicated is it to install a system? Allen: You need your IT people, who have that high-level, overall view of the architecture of the system and can ensure it is robust and reliable. You need the instrumentation departments, the electricians and the users of the system. You have the management personnel who see the reporting end of it and know if it’s doing what it is supposed to be doing, and saving energy. There are engineers involved in everything from equipment selection to how it’s going to operate, so there is a wide range of

CIM: What are the challenges? Allen: A big part of it is the need for a culture change. You have to introduce the automation gradually so people get comfortable with it and its reliability. There’s also the commitment to both initial high capital cost and system maintenance. It does pay off in the long term. Depending on various factors, it could be one to five years. You start by trying to get all the players to understand what it is you’re putting in. It’s a challenge to communicate to the people whose workplace is dependent on the system that this will be better. And it’s a challenge to ensure the systems you put in are not damaged. In the underground environment, it is easy to damage the more fragile systems, so they have to be able to withstand a fair amount of abuse. And it’s a challenge to help the people using them understand what they are, how they operate and how to avoid damage. CIM: Do you think there is going to be an increase in underground automated ventilation systems in Canada? Allen: My hope is that 10 years down the road, they will be commonplace. It is difficult to retrofit systems; it’s easier to incorporate the system into designs as new mines come online. I think we’re going to see a lot more underground automated ventilation systems. CIM

To learn more or to book a Distinguished Lecturer visit www.cim.org, call (514) 939-2710, or email dist_lecturer@cim.org August 2012 | 73

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CIM community Scholarship Winner

GIVING BACK $12-million imaging facility

Rising star in “Canada’s game” McIntosh Engineering Scholarship winner determined to be a leader in mining For McIntosh Engineering Scholarship Fund recipient Matt Botnick, pursuing a career in mining is all about variety; it is about the variety in the subject matter he studies as a third-year Queen’s University student, the diverse number of products the industry generates, the multitude of jobs available in all kinds of different locations, and the potential for his career to have widespread influence. The Markham, Ontario native first went to Queen’s with designs on becoming a civil engineer, but getting a taste of earth science and geology courses swayed him towards mining, and then hearing a speech from a Queen’s alumnus cemented the shift in focus. “He basically said, ‘All other engineers work for mining engineers,’” Botnick recalls with a laugh. “And he also said, ‘China is putting out more PhD students than we have students in Canada, but mining engineering is sort of Canada’s game right now.’” The broad spectrum of jobs available was another pull towards mining, adds Botnick, listing many areas of interest for potential future employment: planetary resources, space mining and mine design. Continuing his studies to be involved on the business side of the industry is something that has also piqued his interest. The diverse opportunities offered in mining are one big part of the attraction, Botnick explains, as is being a part of an industry that plays such a critical role in Canada. “We’re a natural resource economy. It’s a driving force. It’s really where our economy starts and I don’t see us, as a country, moving away from it any time soon,” he points out. “You can’t think of a product that doesn’t have something from the ground in it. That definitely creates an allure. You can be proud of being able to see something that you’ve helped mine in everyday life.” The possibility of working abroad or in remote areas is also intriguing to Botnick, who is headed to Nevada in September to visit mine sites with his class, and then on to Australia to study on exchange. One area Botnick believes the industry needs to manage better is community relations. “Stories from some foreign mine sites where there have been cases of mercury poisoning, and locals taking potshots at company caravans, are evidence of the problem,” he says. “I think mining needs to give back to the local community as well as to make something out of it economically. They’re on the way to getting where they should be, but it’s always a challenge.” CIM

By Dan Plouffe

M4M support helps deliver imaging facility at BC Children’s Hospital Mining for Miracles (M4M), the mining community’s fundraising campaign, which has raised more than $20 million for the BC Children’s Hospital Foundation over the last 22 years, recently commemorated the official launch of the Child & Family Imaging Facility at the hospital. Of the $12 million invested in the facility, $1.3 million came from M4M. The imaging facility includes a sophisticated 3-Tesla magnetic resonance imaging (MRI) scanner that will help neuroscientists increase their understanding of how brain disorders affect children and provide insight into the development of a child’s brain. Other areas of child health could benefit from this innovative tool as well. “Supporting world-class researchers, physicians and caregivers with cutting-edge technology to improve the diagnosis and treatment of children is a privilege for the Mining for Miracles campaign and for BC’s mining industry,” said Colin Jourdie, co-chair of the 2012 M4M. Dr. Bruce Bjornson, associate clinician specialist and associate head of the development neurosciences & child health research cluster at the Child & Family Research Institute, said this facility is an important resource: “lt is a magnet for new discoveries that will ultimately improve the health of infants and children in BC and beyond.” The mining community helps support improved health care for children in British Columbia every year. For more information, visit www.miningformiracles.ca

August 2012 | 75

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CONFERENCE 26 - 29 September 2013 Hilton Brisbane Hotel, Queensland, Australia Proudly hosted by

THE CONFEREN CONFERENCE CE Challenges in Gold Mining will be the main theme of the next World Gold Conference, hosted by The AusIMM, to be held in Brisbane, Australia on 26 â&#x20AC;&#x201C; 29 September 2013. Exploration remains a high priority in many gold provinces and various countries, and discoveries continue to be made around the world. Both well-established gold producing countries and new frontiers are scenes of recent successes. One trend over the last two decades has been the greater proportion of discoveries that are gold-plus-copper compared to the historically dominant gold-only style. The industry is redeveloping brownfields, revisiting older (previously submarginal) and looking at poly-metallic gold deposits with lower gold content. These deposits usually have higher energy costs and a significant need for water. They might also experience labour market problems which can be country or region specific. The challenge is still to ensure sustainability as well as to provide technically sound mining and processing options to satisfy both the community, shareholders and financiers. As new countries become more prominent in the gold market each will have an increasing influence of the industry. These challenges will be reflected in the World Gold 2013 technical program Some of the main topics to be discussed at the conference will be: Exploration, mining and processing of gold-containing ores Particular challenges of complex gold ores including those that are poly-metallic Mine to market concept Improved production and development costs (efficiencies, productivity, people) Living and dealing with uncertainty across the gold industry Reliable water, energy and labour at an affordable cost Corporate knowledge in a rapidly changing workforce Region specific challenges facing the gold mining industry Social aspects of gold mining and the communities This World Gold Conference series is a joint venture between The Australasian Institute of Mining and Metallurgy (The AusIMM), the Southern African Institute of Mining and Metallurgy (SAIMM) and the Canadian Institute of Mining, Metallurgy and Petroleum (CIM). Following the very successful World Gold Conferences (jointly organised by these three institutions), held biannually since 2005 in Calgary, Cairns, Johannesburg and Montreal, the format will be further expanded for the 2013 Conference to be held in Brisbane, Australia. This conference will include all aspects of gold mining, including exploration, geosciences, mining (including geotechnical aspects), metallurgy (processing), environment and related themes. Due to the diversity of gold mining interest, various workshops will be incorporated within the program. The conference will be followed back to back by the Second AusIMM International Geometallurgy Conference 2013 (GeoMet 2013) at the same venue.

Dr Leon Lorrenzen enze e World o Gold 2013 C Conferreence Chair

CALLING CALLING FOR P PAPERS A APERS Authors who have abstracts accepted, will be invited to submit a conference paper that will be subject to peer review (by and international peer review panel) and selection criteria will include relevance to the conference theme and topics, accuracy and originality of ideas, and significance of the contribution. All accepted papers will be published in the Conference Proceedings and presented at conference technical sessions. At least one author of each accepted paper is required to attend the conference to present their papers. Submission of Abstracts All abstracts due by 26 November 2012 Online Abstract Submission Please submit an abstract not exceeding 300 words per paper in English by 26 November 2012 via the speakers portal on the website: www.ausimm.com.au/worldgold2013/papers.asp. Recognition of high-quality technical papers After this event, selected high-quality papers may be submitted for publication in one of the prestigious AusIMM/IOM3 Transactions journals: Mining Technolog e y, Applied Earth Science, or Mineral Processing and Extractive Metallurgy. These papers will also qualify for consideration for The AusIMM Best Paper Prize, which is awarded annually at The AusIMM Awards Dinner. For further er information, please contact: Claire Lockyer, Publications Assistant, The AusIMM Teelephone elephone: +61 3 9658 6167 | Email: clockyer@ausimm.com.au

EVENT MANAGEMENT: THE AusIMM For all enquiries including sponsorship and exhibition, please contact: Jessica Cowan, Senior Coordinator, Events The AusIMM, Melbourne Australia Teelephone elephone: +61 3 9658 6105 | jcowan@ausimm.com.au World W o orld Gold d BA BACK CK TO BA BACK CK W WITH ITH I ... . G GeoMet eo e Met et 2013

30 September â&#x20AC;&#x201C; 2 October 2013 Brisbane, Australia

www.ausimm.com.au/worldgold2013

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CIM community Award Winner

It takes time and teamwork Vale Medal winner reveals road to success By Crystal Chan

Inspiration may come in a flash, but Alfonso Grau knows it takes years of hard work to lead you to it. Over a nearly 30-year career with QIT-Fer et Titane, a subsidiary of Rio Tinto Iron and Titanium, based in Sorel-Tracy, Quebec, he became one of Canada’s mining industry innovators by working on one groundbreaking project after another, many of which took over a decade to complete. His fruitful career was recognized with the Vale Medal in May. The prize follows the Airey Award that Grau received from the Metallurgical Society of CIM in 2003 for his contributions to the development of non-ferrous pyrometallurgy in the country. Grau was a University of Toronto post-doctoral fellow working in Halifax with the National Research Council when QIT hired him in 1976. He proved a valuable member to the QIT R&D team, contributing to numerous finds and improvements in the fields of mineral exploration, ore beneficiation, electric furnace smelting, ladle refining of iron and oxygen steelmaking. One development, the invention of a new hydrometallurgical process for the upgrading of titanium slags, won QIT the Xstrata Innovation Award from the Metallurgical Society of CIM in 2002. “It was the project that gave me the most satisfaction,” he says. Its main use was the production of titanium pigments, and since, as he puts it, “everything that has colour has titanium oxide,” it opened the doors to a huge new market. Grau is proud of his contributions to the development and the refinement of the QIT smelting process. The main gain is the company is now able to operate very high-powered electric smelting furnaces in a safe environment. “I recall when I started with the company that some of the biggest furnaces would operate at around 51 megawatts. Now, the company can operate furnaces at 75 megawatts,” he explains. Through his many years with the company, where he served as director of research, as vice-president of technology and, finally, as senior vice-president, business development, Grau’s work has helped QIT meet evolving demand. “You have to be constantly adapting to the requirements of the marketplace,” he says. “You have to understand what your customers need.”

Grau is quick to deflect praise, however. He emphasizes the collaborative approach that is essential to his profession. “In the end your success is the success of the people that work with you,” he underlines. Since retiring in 2003, Grau has balanced consulting work with world travel. A native of Santiago, he spends several months each year in Chile but also makes time to explore Europe by bicycle, enjoy a game of golf and spend time with family and friends. All the while, Grau maintains an eye on the industry’s ups and downs. And what does he believe will be the hot-topic questions of the near future? “I think an issue that needs to be addressed is the question of energy: the usage of energy, water, resources,” he says. “Diminishing the impact of the industry on the environment and the community is an area that’s going to be increasingly important.” He also points to intensified interest in the far north, particularly in Northern Labrador and the Arctic. “That will present some challenges. Operating a mine, moving and bringing resources, energy, everything into those locations – I think that this is something which is very important and very unique to Canada.” CIM ACHIEVEMENT Lucky receives CMP Lifetime Achievement Award CIM member Laxman (Lucky) Amaratunga, a professor at Laurentian University in Sudbury, Ontario, received the 2012 Canadian Mineral Processors (CMP) Society Lifetime Achievement Award for his outstanding contributions in the areas of education, research in management of mine waste, and environmental technology transfer. “Dr. Lucky has long been recognized among his peers as a leading figure in the field of metallurgy and mining chemistry,” said Dominic Giroux, president and vice-chancellor at Laurentian University. “We congratulate him on this latest honour. It is indeed a fitting tribute to his life’s work.”

August 2012 | 77

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NEW – Certification in Ore Reserve Risk and Mine Planning Optimization Spread over a period of four months, this four-week course is designed for busy mining professionals who wish to update their skills and knowledge base in modern modelling techniques for ore bodies and new risk-based optimization methodologies for strategic mine planning. Gain practical experience by applying the following hands-on concepts and technical methods: methods for modelling ore bodies; stochastic simulations, case studies and models of geological uncertainty; and demand-driven production scheduling and geological risk. INSTRUCTOR: Roussos Dimitrakopoulos, McGill University, Canada • DATE: Returning in 2013 • CITY: Montreal, Quebec, Canada • INFO:

Geostatistical Mineral Resource/Ore Reserve Estimation and Meeting the New Regulatory Environment: Step by Step from Sampling to Grade Control Learn about the latest regulations on public reporting of resources/reserves through state-of-the-art statistical and geostatistical techniques; how to apply geostatistics to predict dilution and adapt reserve estimates to that predicted dilution; how geostatistics can help you categorize your resources in an objective manner; and how to understand principles of NI 43-101 and the SME Guide. INSTRUCTORS: Marcelo Godoy, Golder Associates, Chile; Jean-Michel

www.mcgill.ca/conted/prodep/ore

Rendu, Newmont Mining Corporation, USA; and Roussos Dimitrakopoulos, McGill University, Canada • DATE: September 10-14, 2012 • CITY: Montreal, Quebec, Canada

Strategic Risk Management in Mine Design: From Life-of-Mine to Global Optimization

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

Learn how you can have a significant, positive impact on your company’s bottom line by utilizing strategic mine planning methodologies and software; improve your understanding of strategic mine planning and life-of-mine optimization concepts, as well as your understanding of the relationship of uncertainty and risk, and how to exploit uncertainty in order to maximize profitability. Note: The strategic mine planning software used is Whittle. An optional half-day skills refresher workshop on Whittle may be available.

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.

INSTRUCTORS: Gelson Batista, MPX, Brazil; and Roussos Dimitrakopoulos, McGill University, Canada • DATE: To be determined • CITY: Montreal,

Quebec, Canada

An Introduction to Cutoff Grade: 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, Newmont Mining Corporation, USA • DATE: September 5-7, 2012 • CITY: Montreal, Quebec, Canada

INSTRUCTOR: Michel Bilodeau, McGill University, Canada • DATE: October 22-25, 2012 • CITY: Montreal, Quebec, Canada

Quantitative Mineral Resource Assessments: An Integrated Approach to Planning for Exploration Risk Reduction Learn about exploration risk analysis for strategic planning. Understand how to demonstrate how operational mineral deposit models can reduce uncertainties; make estimates of the number of undiscovered deposits; and integrate the information and examine the economic possibilities. INSTRUCTOR: Don Singer, USA; and David Menzie, U.S. Geological Survey, USA • DATE: September 24-26, 2012 • CITY: Montreal, Quebec,

Canada

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CIM community

A sea of opportunity MSNS’ 125th anniversary celebration highlights contribution of mining to Nova Scotia

Photo: Monika Mackenzie

By Lynn Elizabeth Moore

Rick Mercer and Terence Bowles pose with MSNS members.

The Mining Society of Nova Scotia (MSNS), Canada’s first professional mining association, marked its 125th anniversary with a festive annual general meeting at the historic Keltic Lodge in Ingonish, Nova Scotia from June 6 to 8. The event, which drew a recordbreaking 200 attendees, celebrated the society's storied past, took a hard look at the future of mining in the region, province and country, and featured topdrawer entertainment. The AGM went well beyond the traditional Nova Scotia lobster dinner, served at an awe-inspiring shore locale. “We wanted to celebrate what the East Coast has to offer, and we did,” says outgoing MSNS president, Matt Ferguson. Highlights of the event included Thursday’s luncheon keynote presentation, where Dr. Howard Donahue, a retired geologist with the Nova Scotia Department of Natural Resources and a past-president of MSNS, provided a history of the society; a speech from Char-

lie Parker, Nova Scotia’s natural resources minister, which underlined the mining industry’s vital role in the province; and an inspiring keynote address by CIM president Terence Bowles, which focused on Canada’s role in the global mining industry. "Whether you are an engineer or a geologist, work in finance, operations or environmental science, work on the supply side, or in the many universities, you are integral to the mining kaleidoscope, helping Canada gain and maintain its strong foothold in the global market,” Bowles, who is also president and CEO of the St. Lawrence Seaway Management Corp, told attendees. Technical presentations on shale gas exploration, the state of the gypsum sector, the Touquoy and Cochrane Hill gold projects and the US$1.06 billion Donkin Coal project, provided attendees with an opportunity to learn about the state of the industry. The speech of Fred George, former president of

Gammon Gold, the largest single gold mining producer in Mexico, held the audience captive, as George explained how he took Gammon Gold’s market cap from $10 million to over $2.4 billion in five years. Evening entertainment was just as engaging. Rick Mercer, host of CBC current affairs program, “The Rick Mercer Report,” delivered a comedic take on Canada’s assets in his speech, “Canada: A Nation Worth Ranting About.” “The calibre of the technical presentations and keynote speakers, the high level of entertainment, and the fellowship and networking amongst those involved in the mining industry, came together to make our 125th anniversary celebration most successful,” says incoming president, Willie McNeil, who was inaugurated at the AGM. “I look forward to working with our executive and council in the coming year to promote and celebrate the mining industry and what it means to Nova Scotia.” CIM August 2012 | 79

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Steve Clapp

CIM community

A crowd gathers at the MassMin 2012 Exhibition in the Great Hall. / La foule se rassemble dans le Grand Hall de l’exposition MassMin 2012.

MassMin 2012 A massive success | Une grande réussite By Rachel Stephan and Dinah Zeldin Academics and industry professionals from over 30 countries gathered at Laurentian University in Sudbury, Ontario, from June 10 to 14, to exchange knowledge, network and discover industry innovations. With nearly 1,000 participants, a sold-out exhibition floor, two insightful plenary sessions, a jampacked technical program, field trips and entertainment, MassMin 2012 was well worth the voyage. The chair of the conference, Dr. Greg Baiden, kickstarted the opening ceremony with an impressive video featuring the majestic beauty of Canada, its natural resources, as well as the technologies being used and developed for mass mining. The two plenary sessions, featuring six leading experts were well-attended and the technical program addressed critical topics including, Cavability Management and Control, Mining Methods, Mine Design and Case Studies; Mass Mining of the Future: Innovation, Technologies and Novel Ideas and Techniques; Mine Planning, Operation and Production Optimization and Applied Geomechanics, Safety and Environmental Issues in Mass Mining. 80 | CIM Magazine | Vol. 7, No. 5

Des universitaires et professionnels de l’industrie de plus de 30 pays se sont rassemblés à l’Université Laurentienne, à Sudbury, en Ontario, du 10 au 14 juin, pour partager leurs connaissances, faire du réseautage et découvrir les dernières innovations de l’industrie. L’édition 2012 de MassMin valait le déplacement : près de 1 000 participants, une exposition à guichets fermés, deux passionnantes assemblées plénières, un programme technique bien chargé, des excursions et de nombreux divertissements. Le Dr. Greg Baiden, président de la conférence, a lancé la cérémonie d’ouverture avec une vidéo impressionnante mettant en scène la beauté majestueuse du Canada, ses ressources naturelles et les technologies utilisées et développées dans le cadre de l’exploitation minière à grande échelle. Les deux assemblées plénières, animées par six éminents experts, ont connu une forte participation. Le programme technique portait sur des thèmes essentiels : gestion et contrôle de la foudroyabilité, méthodes minières, conception de mine et études de cas; avenir de l’exploitation minière à grande échelle : innovation, technologies et nouvelles idées et techniques; planification minière, optimisation de l’exploitation et de la production et géomécanique appliquée, enjeux de sécurité et environnementaux dans le domaine de l’exploitation minière à grande échelle.

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Photos: Steve Clapp

CIM community

Clockwise from top left: Attendees take in the outdoor equipment display. On the exhibition floor. Carpe Diem, a Montreal-based circus troupe provides live entertainment. Dr. Allan Moss, general manager of Rio Tinto’s underground technology centre, presents “Back to the basics: the need to measure” in the Fraser Auditorium. / Des délégués posant devant l’équipement exposé à l’extérieur. Au salon commercial. Carpe Diem, une compagnie de cirque de Montréal, offre une performance divertissante. Dr. Allan Moss, directeur géneral du centre des technologies d’exploitation souterraine, technologie et innovation, Rio Tinto, présente « Back to the basics: the need to measure » dans l’auditorium Fraser.

Fifty companies filled the exhibition floor and an premiere outdoor equipment display where they could showcase the latest advancements in mass mining technologies, equipment and services. MassMin 2012 was organized with the support of CIM, Penguin Automated Systems Inc. and Laurentian University. A special thanks is due to Atlas Copco, Hatch, Sandvik and other sponsors who made this event possible. The mass mining community will meet again at MassMin 2016, held in Sydney, Australia. CIM

Cinquante entreprises occupaient la salle d’exposition et ont pris part à un étalage d’équipement en plein air, qui leur a permis de présenter les dernières innovations en matière de technologies, d’équipement et de service d’exploitation minière à grande échelle. MassMin 2012 a été organisé avec le soutien de l’ICM, de Penguin Automated Systems Inc. et de l’Université Laurentienne. Un grand merci à Atlas Copco, Hatch, Sandvik et à tous les autres commanditaires qui ont permis la tenue de cet événement. La communauté de l’exploitation minière à grande échelle se rassemblera à nouveau lors de MassMin 2016, à Sydney en Australie. ICM August 2012 | 81

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CIM community

Nine things I learned at MassMin 2012 A CIM Magazine editor shares his key takeaways from Sudbury By Peter Braul In June, I left the safety of my desk in Montreal for the wilds of Sudbury, Ontario. I was there for MassMin, to hear from experts and to deepen my knowledge of mass mining. From engineering challenges to HR conundrums, I heard about problems and solutions emerging as miners turn to larger, lower-grade deposits underground. Here are some lessons I brought back:

Freeport McMoRan, moving thousands of people, as well as several hundred thousand tonnes of rock, per day requires largescale and long-term planning. Computer models can predict where bottlenecks might lie at all stages of development.

Underreporting of accidents elevates risk At Iain Ross’ talk on major hazards in block caving, the engineers all seemed to agree: The recorded number of very dangerous incidents (like air blasts) is far less than the true number observed in the field. If engineers lack accurate statistics from operations, it becomes difficult to learn from mistakes, and proliferation of risky techniques can become the norm. This represents a significant risk, given the very few examples of operating mass mines available to draw on.

Surface mining giant digs deep to build business In Allan Moss’ plenary talk, I learned Rio Tinto predicts getting 43 per cent of its copper production from underground mines by 2021. Since the company began work on Oyu Tolgoi, a combined open pit and underground goldcopper-ore mine in Mongolia, it has developed an underground technology centre with the Centre for Excellence in Mining Innovation. Moss’ presentation made me realize how massive a change mass mining represents for the industry. El Teniente’s layout copied worldwide One of two

layouts considered for the extraction levels of contemporary block caves was pioneered at Codelco’s El Teniente mine. El Teniente and the other most common style, herringbone, both have pros and cons. El Teniente layouts are best in mines with large footprints, but aren’t wellsuited to use of electric loaders. Some mines can transition between the two layout styles, depending on how mining progresses. As the El Teniente layout is well-suited to larger cave mines, it is gaining popularity.

Archived mass mine designs still valuable There are only

about ten mass mining projects operating worldwide, but around 40 in development. Engineers have few working examples for designing new projects. As highlighted by Jarek Jakubec of SRK Consulting Inc. in his talk on incline cave mining, there are ore bodies that are not economical to mine with commonly used designs, but there are options. Although there are no operating incline cave mines, projects over the past 20 years can act as a resource.

Bigger mines mean more money down Today’s mass

mines extract low-grade ore, so must be huge to be economical. Mass mines can have over 2,000 drawpoints on their footprints – each costing about $500,000 to construct – which I learned chatting with AMC Mining Consultants. As drawpoints need to be established before revenue can be generated, securing enough investment to get mines built is more difficult than ever.

Killer commutes simplified with computer models

Transporting staff to a mass mine is a huge challenge. At Freeport McMoRan’s Grasberg block cave there will be 4,000 workers underground at any one time. According to Chuck Brannon, manager of underground mine planning at 82 | CIM Magazine | Vol. 7, No. 5

The “ore factory” – new technology may improve efficiency by 600 per cent Jens Steinberg of Caterpillar

Ask equipment suppliers for help – they have experience on the ground I was impressed by how

says potential efficiency gains in continuous underground cave mines are in the order of 500 to 600 per cent. To achieve that goal, Caterpillar has carried on Bucyrus’ continuous mining project, Block Cave Mine 2020. The system will be fully automated and use a continuous miner or roadheader in the undercut. The company proposes to automatically push ore onto an interconnected system of conveyors. Sensors would be used to detect where the conveyor belt has room for more, continually producing ore with minimal human involvement.

much knowledge folks from Sandvik and other equipment manufacturers had to share. Around the lunch table, it became clear that involving those most familiar with equipment at a project`s inception phase can help smooth construction and operation. Many equipment manufacturers have advanced engineering teams that have already experienced, and can predict, problems new mines may face.

Less can be more when it comes to simulation Using 3D simulation has its benefits, but there are times when it is too complicated, too time consuming or too costly. Troy Newman spoke about how Rio Tinto used 2D Arena simulation tools for the feasibility study of the Oyu Tolgoi project. And Patricia Rojas from Vale was impressed that the 2D tools were so effective. Ultimately, the most appropriate tool is the one that does the job best. CIM

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CIM community Award Winners

Leading by example CIM-Bedford Canadian Young Mining Leader Award winners help take industry above and beyond By Correy Baldwin and Alexandra Lopez-Pacheco

The CIM-Bedford Canadian Young Mining Leaders Awards recognize outstanding young Canadians who have built careers by advancing the industry. The awards, sponsored by CIM and the Bedford Consulting Group, aim to set an example for the future generation of mining leaders by rewarding professionals who have demonstrated potential for future growth.

Sean Samson Vice-president, corporate development and acting vicepresident operations, First Nickel Incorporated Before joining the senior team at Kinross Gold in 2006, Sean Samson was involved in capital markets and management consulting. “But it wasn't until I got into mining that I really saw the opportunity to build a company,” he says. Kinross Gold was becoming one of the world’s fastest growing gold miners. “It was an exciting time with a very small group of us piecing parts of the portfolio together and making a modern company,” he says. When he left Kinross Gold for First Nickel in 2011, he was managing a team of over 300, across eight countries and 13 time zones. It was a period of great learning for Samson. “I needed to juggle two jobs for the first six months because immediately after I joined the company our COO left, so I also ran the operations.” Samson is keenly aware the industry needs to expand its talent pool. “There are especially good opportunities for young, commercially savvy people,” he notes. While the industry is good at recruiting engineers, geologists and investment bankers, explains Samson, “there are too few good people to do the commercial work of building the business. We just aren't on the radars of the best, young business minds as they set off on to their careers.” He concludes, “Mining is a great place for ambitious young professionals to work. There is fantastic opportunity for growth.” 84 | CIM Magazine | Vol. 7, No. 5

Benjamin Gelber Site manager and exploration manager, Keegan Resources A career in geology was a natural fit for Benjamin Gebler, who grew up in the Kootenay Rockies of southern British Columbia. After a few years of working in hydrogeology, Gelber switched into exploration geology, managing exploration and drill camps in northern Yukon for Archer, Cathro and Associates. Then in January 2008, Gelber moved to Ghana to work at Keegan Resources’ Esaase gold project. “This project has been an amazing experience for a young exploration geologist like me,” he says. “It was incredible joining the team just post-discovery and seeing the deposit grow into a world-class gold deposit.” Gelber says his work in Ghana has been very rewarding, especially when comparing the territory to the Yukon. “Conducting effective exploration programs in a tropical climate is quite different than in northern Canada,” says Gelber. “When there are no solid rocks on the surface of the ground, due to tropical weathering processes, one must adapt and use all of the tools at their disposal.” Gelber remains passionate about exploration geology: “No two projects are the same and one is constantly looking at all of the pieces of information that they have to put the pieces of the puzzle together. Nothing beats the feeling of being part of a discovery.”

Adam Tonnos Director of business development & coaching partner, Corporate Symphony International Adam Tonnos’ career has grown in unexpected ways, with him beginning as a software developer at engineering firm BESTECH, where he helped grow their limited software program into one of the core services offered by the company, and

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then moving on to sales, another department he recognized needed developing. “Nobody in the organization was too keen on doing sales – it was a group of engineers who enjoyed doing technical work,” he explains. “And I wanted to. I thought, what a great opportunity, with a growing organization, to start selling it.” Tonnos quickly picked up a new skill set. “I really enjoyed working one-on-one with individuals. I thought: this is a skill I’d be willing to invest in.” Today, Tonnos is both a coaching partner at Corporate Symphony, which focuses on leadership and management coaching, and director of sales. “Coaching crews don’t typically enjoy selling,” he explains. “They just want to coach. I’ve got a side that enjoys selling; it’s broadening my industry exposure.” But coaching still has his attention. “The ultimate vision is for more leaders within organizations to develop coaching skills, so this approach becomes more the norm instead of a specialty,” he says. “Finding an organization where the coaching culture is pervasive, where the tough, challenging discussions are taking place, where people are willing to address issues, and acknowledge each other, [is key] – hopefully down the road we’ll get to see more of that.”

Heather White Vice-president, mining, NovaGold Resources Inc. Heather White approaches her career in mining as a journey to learn every facet of the industry. “Broadening and developing yourself and finding ways to add value, that’s what makes it interesting,” she says. In 2008, White left the operations side at Vale Canada Ltd. to become the company’s director of marketing and supply chain. “I had spent some 12 years digging minerals out of the ground and getting them onto a ship or a train, and had no real clue of what happened beyond that, so I left my comfort zone to get exposure to the other side of the business, the end product and the selling aspect, to broaden my knowledge of the entire business chain,” she explains. After spending most of her career at Vale (formerly Inco), holding a variety of leadership roles, including being chief mining engineer of the $2.9-billion Voisey's Bay project in Labrador, White joined NovaGold in 2011 to experience the smaller company perspective. Eight months later, she was promoted to vice-president of mining. At Voisey’s Bay, she was part of the creation of a new mine. Now, she is closing NovaGold’s Rock Creek Mine in Nome, Alaska. “It’s sad but it’s also a part of the whole mining process, so it has been a very exciting time,” she concludes. CIM

Structural Geology Guidelines for use in Burstprone Underground Mines Short Course Is your project or mine in a structurally complex, high stress, potentially rock burst-prone setting? The Centre for Excellence in Mining Innovation (CEMI) is pleased to join Golder Associates and SRK Consulting in hosting a 2-day Structural Geology Guidelines for use in Burst-Prone Underground Mines short course in October 2012.

Two chances for you to take advantage of this opportunity! October 15 & 16, 2012 October 18 & 19, 2012 Sudbury, ON Toronto, ON 8:00am - 5:00pm 8:00am - 5:00pm The course will be comprised of technical presentations and hands-on practical sessions focused on providing attendees with an awareness of: the risks posed in burst-prone mines; the structural geology and other geotechnical aspects to pay attention to and measure in drill core and in drift mapping; and the tools to use to optimize design and response effectiveness during project/mine design, development and operation. Registration $950 CAD and $250 CAD for students. Deadline to register is September 28, 2012.

Limited seating!

Visit www.miningexcellence.ca/events/courses/ for registration form and for more information.

August 2012 | 85

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GREAT MINDS UNITE

YOUR NAME HERE

Thomas Homer-Dixon

Chris Twigge-Molecey

Few people can create technologies today that will fulfill society's aspirations of tomorrow.

Pressure Hydrometallurgy

Clean Processing*

Your expertise, knowledge, and dedication to invent new technologies & processes, transform new minerals into innovative products & applications are as rare as the rare earths you use. COM 2012 will gather industryâ&#x20AC;&#x2122;s greatest minds such as you from around the world to discuss metallurgy and materials impact on society; the technology achievements of today that answer society's aspirations for tomorrow. Technical tracks include:

Rare Earths**

Sustainability

R S D

www.cim.org/

Pressure HYDROMETALLURGY PYROMETALLURGY: Towards Clean Metallurgical Processing for Profit, Socio-Environment Stewardship CORROSION: Recent Advances & Sustainability CLEAN PROCESSING: Water Air & Land; Sustainability Issues in Mineral & Metal Extraction (WALSIM II) SUSTAINABILITY Through Mining RARE EARTHS Exchange ideas with great minds like Thomas Homer-Dixon, Chris Twigge-Molecey, 3,.3 Â&#x201D;?'*70 and Bruce Conard; our renowned plenary speakers. Join your peers in beautiful Niagara Falls and gather where great minds unite. Organized by MetSoc of CIM

* Credit: Xstrata Sudbury Smelter ** Credit: PeggGreb

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CIM community

So You Think You Know Mining takes off Social media spurs growth of OMA video competition By Ernest Hoffman

Scott Keyes, accompanied by Christine McKeon, accepts Best Overall Video Award.

Photo: Nadya Kwandibens

When it comes to reaching young people, social media is king. It is a lesson the Ontario Mining Association (OMA) has learned well and put to good use. After attracting around 30 submissions in 2009, the OMA’s latest “So You Think You Know Mining” high school video competition pulled in over 140 videos this year by harnessing the power of blogs and Facebook. “Our first year, we did a lot of poster advertising, we paid for radio spots and magazine ads, and we got almost no response,” recalls OMA president Chris Hodgson. “Then, very late in the process and almost by accident, we posted something about it on Facebook and it just took off.” Following this unexpected success, OMA environment and sustainability manager Adrianna Stech began using social media to inspire youth to participate in the competition. This new approach has led thousands of high school students across the province to see the mining industry in a new light. ”We’d talk to young people, and they had a 19th century understanding of mining,” Hodgson recalls. “They thought people were on all fours with a pick in the coal shaft.” Hodgson realized that while the mining industry was doing a great job of reaching their future employees by recruiting through collegiate and university programs, there was an enormous segment of young people who simply had no idea what modern mining operations looked like. “This was a way to reach future journalists, writers and media people so that they’d also have some understanding of what mining is all about,” he explains. The contest, open to all Ontario high school students, challenges individuals or teams to produce a two-to-three-minute video using original footage to highlight the benefits mining provides society.

And while the quantity of submissions continues to grow, the quality of the videos has also impressed. “There really are a lot of talented young people out there who clearly have musical and writing talent, and a good sense of humour,” says OMA communications manager Peter McBride. “There’s way more good ones than we have prize categories to hand out.” This year’s winners provide great examples of the talent and creativity the contest attracts. The award for “Best Overall Video” went to Scott Keyes of London for “The Melodic Miners,” a tightly written and well-directed hiphop music video about Ontario’s mining sector. “I was astounded at how much information about the mining industry they got into the lyrics,” says McBride. “It wasn’t as easy as I thought it would be,” says Keyes. “We had to do a lot of research, and then take all of the information and figure out a way to make it rhyme and make it work rhythmically.” “Surviving the Storm,” by Brooklyn Vercruyssen of Clinton, won $2,500 for

”First Runner-Up.” Vercruyssen, who was working as a lifeguard near Goderich on August 21, 2011, when the town was struck by a powerful tornado, shot the storm as it passed over her lifeguard shack, using just her cell phone camera. In the four years that they have held the competition, McBride says they have never seen such dramatic live video. “This was better than any footage you would have found on any newscast when that tornado hit.” The tornado did extensive damage to Goderich, and to the nearby Sifto salts mine. “It affected our mine hugely,” says Vercruyssen, whose video showed both the devastation and the recovery. “The whole community was incredibly devastated. So many people work there; the mine provides so many jobs.” Hodgson is thrilled with the support the industry has shown. “After the first year, some companies sent us cheques without us even approaching them,” he explains. “It’s been no trouble at all getting the industry to support the contest.” CIM August 2012 | 87

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070-095 CIM Community v11_Q8_Layout 1 12-07-17 1:41 PM Page 89

CIM community

Laying a strong foundation Hatch and CIM safety award first to focus on construction phase

The mining community rewards companies for clean safety records during mining operations, but it has not provided formal recognition to companies that make a special effort to practise and promote safety during the complex mine construction phase – until now. Chris Twigge-Molecey, CIM pastpresident and senior advisor at Hatch, spearheaded the creation of the HatchCIM Mining and Minerals Project Development Safety Award, which aims to advance the safety culture at the mine construction phase. To be eligible for the award, a company must have completed a significant construction project in Canada 12 months prior to application, and either the project owner or the project management company must be a CIM member. Although the award is only applicable to CIM members’ Canadian projects, Hatch, which is the sole funder of the award, has a strong commitment to setting a global standard for best practices at the mine construction phase. “The safety culture really does vary according to geographic region,” says Tony Hylton, global managing director, project delivery group, project execution at Hatch. “We’re trying to get consistency right across the globe, so that when we go into the more challenging locations, the systems and procedures and the culture that we have within Hatch are a given, and we absolutely will not yield on them.” But because there is a very different set of pressures on the project development side than on steady operations, and applying these changes is easier said than done, identifying and rewarding best practices may present a unique challenge. Major projects tend to be in more remote locations, they tend to be massive in scale, and each site is unique. This means a project

Courtesy of The Mosaic Company

By Ernest Hoffman

Construction workers consult at the Mosaic Potash K3 mine site project in Saskatchewan

involves multiple teams of contractors, each with different standards and approaches to safety. “In steady operations, you could have 3,000 workers, and every year you add a few more when people leave or retire, so you have continuity,” explains Robert Francki, global managing director, project delivery group, engineering at Hatch. “On project development, you typically have the project management company, and then we hire anywhere from six to dozens of contactors on behalf of the owner.” The award’s selection criteria relies on analysis of both leading and lagging indicators to ensure the safety culture reached all teams implicated in the project’s construction phase. “A leading indicator is proof that a very good safety plan and training program are being implemented on the project,” explains Dan Welshons, global director of health and safety for Hatch’s project delivery group, who led the team that developed the criteria. “Then we look at lagging indicators such as lost time injury

statistics, which are unknowable at the time that the programs were put in place, but which show how good the programs really were, and how well the execution phase was implemented. Projects can take three or four years to complete and there are no more than half a dozen big construction projects in Canada each year, so applications for the prize will stand for up to three years to ensure each project is evaluated fairly. While Hatch is sponsoring the award, a CIM panel that will include members of the John T. Ryan Safety Award Committee will judge the nominees. “In any given year, the judges may decide that even the first-ranked applicant didn’t achieve the level of excellence required to merit the award, and they may decide to pass for that year,” says Francki. “That will send a powerful message.” The first Hatch-CIM Mining and Minerals Project Development Safety Award winner will be announced at the 2013 CIM Convention Awards Gala in Toronto. CIM August 2012 | 89

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070-095 CIM Community v11_Q8_Layout 1 12-07-17 11:36 AM Page 91

TORONTO 2013 CONVENTION PRELIMINARY TECHNICAL PROGRAM

LEADERSHIP IN INVESTMENT & MANAGEMENT

Maintenance & Engineering Society: Ted Knight Underground Mining Society: Rob Carrey Surface Mining Society: Ray Reipas

Management & Economics Society: Alicia Ferdinand, Jane Spooner, Larry Smith with Rosie Steeves, Chuck Edwards

SOCIAL LICENSE Environmental and Social Responsibilty Society: Janice Zinck Dave Forrester and David Clarry of HudBay Mireille Goulet: Coordinator

OPENING PLENARY - Moderator:

Standards Reliability

The development Challenge: Leadership

Tim Skinner

Richard Ross of York-Schulich (back for IMMC 2014)

Lessons Learned

Project Showcase

Young Leaders

Lessons Learned

GLOBAL GEOLOGICAL PUZZLE Rock Engineering Society: John Hadjigeorgiou Geological Society: Jason Dunning / Garth Kirkham 50/50

NEW FRONTIERS / OPEN INNOVATION Space and SubSea Joe Hinzer Dale Boucher of NorCat / PTMSS

Mark Kelley

Young Leaders

Project Showcase

Young Leaders

Deep Sea Steve Scott

WEDNESDAY, MAY 8

OPERATIONS & MAINTENANCE BEST PRACTICES

Project Showcase

Women in Mining Catharine Shaw

Project Showcase

Lessons Learned

Safety & Reliability

Management & Finance Day

Lessons Learned

Young Leaders

Mass Mining

Management & Finance Day

Project Showcase

Lessons Learned

NOON to 2 PM

Management & Finance Day and Closing Lunch

Management & Finance Day

VISIT WWW.CIM.ORG/TORONTO2013 REGULARLY FOR TECHNICAL PROGRAM UPDATES.

Photos Normand Huberdeau / N. H. Photographes LtĂŠe.

TUESDAY, MAY 7

MONDAY, MAY 6

EXEMPLIFYING GLOBAL LEADERSHIP

070-095 CIM Community v11_Q8_Layout 1 12-07-17 1:06 PM Page 92

CIM Magazine & CIM Journal Subscription Order Form (non-CIM members) A subscription to CIM Magazine INCLUDES CIM Journal! CIM Magazine provides critical information on industry issues, trends, technology and emerging products, and offers focus, depth and quality that exceeds other mining or minerals publications. As the leading independent voice of the industry for over a century, CIM Magazine is published eight times a year and distributed to more than 11,500 readers. Its global reach is unparalleled, covering one of the world’s most lucrative economic sectors. Editorial content includes: O Industry news and events, and technology developments O Key issues and personalities that shape the minerals

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070-095 CIM Community v11_Q8_Layout 1 12-07-17 11:36 AM Page 94

CALENDAR www.cim.org/calendar

CIM EVENTS COM2012: 51st Conference of Metallurgists Sept. 30 - Oct. 3 | Niagara Falls, ON www.metsoc.org Process Mineralogy ’12 Nov. 7 - 9 | Cape Town, South Africa www.min-eng.com/processmineralogy12 Precious Metals ‘12 Nov. 12 - 13 | Cape Town, South Africa www.min-eng.com/preciousmetals12 CIM/SME Safety and Reliability Conference 2012 Nov. 13 – 15 | Minneapolis, Minnesota www.smenet.org CIM Calgary Branch Technical Luncheon Dec. 12| Calgary, Alberta cimcalgary@gmail.com CIM Conference and Exhibition May 5 - 8 | Toronto, Ontario cmurphy@cim.org

INTERNATIONAL EVENTS Canadian Mineral Analysts Conference and Exhibit 2012 Sept. 9 – 13 | Québec City, Quebec www.cma2012.com Oil Sands Trade Show & Conference Sept. 10 – 12 | Fort McMurray, Alberta www.oilsandstradeshow.com ENERMIN 2012 - 2nd International Seminar on Energy Management in the Mining Industry Sept. 10 – 12 | Bahia, Brazil www.enermin2012.com ICCE 2012 - International Conference on Clean Energy Sept. 10 – 12 | Québec City, Quebec www.iaemm.com/ICCE_Home Madini Africa – Investment in Mineral Beneficiation Sept. 11 – 12 | Johannesburg, South Africa www.madiniafrica.com

CALL FOR PAPERS CCTC 2013 3rd Climate Change Technology Conference Abstract submission deadline: Sept. 15 www.cctc2013.ca CIM 2013 Convention Abstract submission deadline: Sept. 30 www.cim.org/toronto2013 23rd World Mining Congress Abstract submission deadline: Oct. 1 www.wmc-expo2013.org ISARC 2013 30th International Symposium on Automation and Robotics in Construction, Mining and Petroluem Abstract submission deadline: Oct. 1 www.isarc2013.org World Gold 2013 Conference Abstract submission deadline: Nov. 26 www.ausimm.com.au/worldgold2013

94 | CIM Magazine | Vol. 7, No. 5

Association of Environmental & Engineering Geologists 55th Annual Meeting Sept. 17 – 22 |Salt Lake City, Utah www.aegweb.org 3rd Annual WipWare Training Seminar Sept. 18 – 21 | North Bay, Ontario www.wipware.com MINExpo INTERNATIONAL Sept. 24 – 26 |Las Vegas, Nevada www.minexpo.com

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HISTORICAL

metallurgy

The rush for gold By Fathi Habashi

Left: John Sutter’s sawmill in Coloma; Inset: Yerba Buena, now San Francisco, in 1850.

Gold has a special place among metals: it was the first metal to be mined, it plays an important role in world economics, it caused wars and unprecedented mass migrations, and it has been the inspiration for numerous myths. It was for all these reasons that prospectors and adventurers rushed to the scene as soon as they heard rumour of a gold discovery. Gold rushes started in California in 1848 and went on to Australia in 1851. From Australia, gold seekers went to New Zealand and on to other countries. Gold discoveries resulted in mass movement of gold miners in North America and South Africa. But, in Imperial Russia, local authorities did not want any social disturbance when gold was discovered in 1813, due to fear of creating chaos in areas populated by serfs. Also, in Australia, authorities did not want to let the largely convict population know about the presence of gold in New South Wales for fear of creating an uncontrolled gold rush in the area. In South Africa, gold discovery resulted in the Boer War, a war between the Dutch settlers and the British from 1899 to 1902. Gold rushes were responsible for development of Alaska and the Canadian North as well, creating new cities and founding schools of mines in most of the regions where gold was uncovered. Alcohol, isolation and struggles over access to gold made for high rates of homicide and other violent crime. While the promise of easy riches drew many migrants, the reality was often not what they had hoped for: miners worked long hours in remote places, lived in miserable accommodations and paid exorbitant prices for food, shelter and clothing. 96 | CIM Magazine | Vol. 7, No. 5

Gold deposits accessible by hand digging were quickly exhausted, leaving buried veins that could only be exploited by well-capitalized ventures, employing expensive machinery. Most remaining miners were not independent prospectors but employees of large mining companies. Most gold rush fortunes were made by those marketing supplies to the miners. For example, Levi Strauss supplied the miners with trousers that became known as “jeans” and California newspaper magnates, the Hearst family, made their fortune reporting the region’s news.

California Gold Rush The earliest record of gold mining activity in the U.S. was in Virginia around 1804. Mining continued until the onset of the California Gold Rush, at which point most serious speculators moved west. Gold production in Virginia continued at a low level until the Civil War. Near the end of the war, Union troops began a systematic campaign to destroy the economic base of the South. Many gold mines were damaged beyond repair and never reopened. On January 24, 1848, when James Marshall was overseeing the construction of a sawmill on John Sutter’s property near Coloma, California, he saw gold in American River and unintentionally initiated a set of events that dramatically transformed both California and the United States. Although Marshall and Sutter attempted to prevent news of discovery from spreading, word reached San Francisco within a few months. By 1850, California’s American- and European-born population increased 10-fold, with San Francisco alone growing from a small village of 1,000 to a city of 35,000. The diversity of nationalities, the sharp fluctuation in economic prospects and the great proportion of men, made social life in the goldfields unstable, and mining camps and towns instantly acquired reputations for wildness.

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HISTORICAL

metallurgy John Augustus Sutter (1803–1880) was born in Kandern, Baden, Germany. He went to school in Neuchâtel, Switzerland and later joined the Swiss army, eventually becoming captain of the artillery. Debts incurred through business dealings compelled Sutter to leave Europe for the U.S. in 1839. Sutter extensively travelled the U.S. before being granted permission to become a Mexican citizen in 1840 and settling in Yerba Buena, a tiny poor mission station that was formerly a part of Mexico but is now San Francisco. The following year he received a title to 198 square kilometres of land, where he envisioned creating an agricultural utopia. For a time, the settlement was quite large and prosperous, and was the destination for most California-bound immigrants. Sutter employed Native Americans, Mormons and Europeans at his compound. In 1847, the Mexican land was handed over to the United States. After the discovery of gold near Sutter’s sawmill, masses of people overran the land and destroyed nearly everything he had worked for. Sutter’s son, who joined his father in September 1848, saw the commercial possibilities of the land, and promptly started plans to build a new city, which he named Sacramento, after the Sacramento River.

James W. Marshall (1810 -1885) arrived in the Sacramento Valley in July 1845 to work as a carpenter for John Sutter. Fairing well there, he purchased a ranch to raise cattle. In 1846, he joined the California Battalion to seize control of California from Mexico. When he returned, he found his cattle had been stolen and was forced to sell his land. He partnered with John Sutter to build a saw mill. After the discovery of gold, the area was flooded with miners, and the saw mill failed. Neither Sutter nor Marshall profited from the discovery of gold. In 1872, Marshall was awarded a twoyear pension by the California State Legislature in recognition of his role in an important era in California history.

The diseases and violence of the newcomers brought the state’s Native American peoples to the brink of extinction, while racism kept most Chinese, Latin American and African American prospectors out. The gold rush made California the most populous and prosperous western territory. Connecting the West Coast to the rest of the country added to the impetus to build the transcontinental railways, to defeat the last independent Indian nations on the Great Plains, and to settle the interior West. Finally, the wealth it produced made thousands flock to later discoveries of gold in Nevada, Colorado and Alaska.

Epilogue

Panning for gold

The Gold Rushes were only for the collection of alluvial gold by panning, washing the sand in a cradle, or later with the shaking table. Once the superficial deposits of alluvial gold were exhausted, mining companies took over the exploitation of the subsurface layers, which required massive financing for dredging Suggested Reading equipment, and mining the underground veins, which F. Habashi, Gold. History, Metallurgy, Culture, Métallurgie Extractive Québec, Québec City, Canada 2009, 277 pages. Distributed by Laval University Bookrequired extensive engineerstore “Zone,” www.zone.ul.ca ing know-how and specialized mining tools. CIM August 2012 | 97

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TECHNICAL ABSTRACTS

CIM

journal

Uranium extraction from saline solutions using weak base anionic resins M. Fainerman-Melnikova and K. Soldenhoff, Australian Nuclear Science & Technology Organisation, Kirrawee, Australia Vol. 3, No. 2

ABSTRACT The use of strong base resins for uranium recovery is severely affected by the presence of chloride ions in solution. In areas where high-quality process water is not readily available, the use of saline water would extend the potential application for ion exchange in uranium processing. This study presents measurements of uranium uptake, using a wide range of commercially available weak base anionic exchangers, from solutions with chloride concentrations ranging from 2.5 to 22 g/L Cl. Out of 14 weak base anionic resins tested, three that were not severely impacted by the presence of chloride and significantly outperformed a gel strong base resin typically used for uranium recovery in high-chloride environments were identified. The uranium loading was sufficiently high for the consideration of development of the application of uranium recovery from uranium ores leached with seawater. RÉSUMÉ L’utilisation de résines à forte basicité pour la récupération de l’uranium est sévèrement affectée par la présence d’ions chlorures en solution. Dans les endroits où une eau de traitement de grande qualité n’est pas disponible, l’utilisation d’eau saline étendrait l’application potentielle d’échange d’ions dans le traitement de l’uranium. Cette étude présente des mesures d’absorption de l’uranium, en utilisant une vaste plage d’échangeurs anioniques de faible basicité disponibles sur le marché, à partir de solutions dont les concentrations en chlorures varient entre 2,5 à 22 g/L Cl. Des 14 résines ioniques à faible basicité, 3 ont été identifiées comme étant peu affectées par la présence des chlorures et avaient un bien meilleur rendement que la résine en gel à forte basicité utilisée pour la récupération de l’uranium dans les environnements à forte teneur en chlorures. Le chargement en uranium était suffisamment élevé pour étudier le développement de l’application de la récupération de l’uranium à partir de minerais d’uranium lixiviés à l’eau de mer.

Alteration of chalcopyrite’s surface chemistry during stockpiling and its impact on flotation S. Kelebek, Queen’s University, Kingston, ON B. Nanthakumar, Process Research ORTECH Inc., Mississauga, ON Vol. 3, No. 3

ABSTRACT The sensitivity of sulphide minerals towards oxidation depends on the mineralogical makeup and nature of sulphide ores. This paper focuses on chalcopyrite behaviour in a nickel-copper sulphide-ore matrix that was aged in the mine-site stockpiles. Results of collectorless, collector-induced flotation and recovery by size are presented following a discussion of XPS analysis that was used to gain insight into oxidative alteration of chalcopyrite’s surface chemistry. Chalcopyrite maintains its high flotation activity despite exposure to weeks of oxidative conditions. It is concluded that chalcopyrite is quite tolerant to stockpile oxidation due to various factors related to alteration of its surface chemistry. RÉSUMÉ La sensibilité des minéraux sulfureux à l’oxydation dépend de la composition minéralogique et de la nature des minerais sulfureux. Le présent article porte sur le comportement de la chalcopyrite dans une matrice de minerai de sulfure de nickelcuivre qui a été vieilli dans des dépôts en tas au site de la mine. Les résultats de la flottation sans collecteur, de la flottation induite par des collecteurs, et de la récupération selon la granulométrie sont présentés à la suite d’une discussion de l’analyse par spectroscopie de photoélectrons (XPS) qui a été utilisée afin de comprendre l’altération par oxydation de la chimie de surface de la chalcopyrite. La chalcopyrite conserve son activité élevée de flottation malgré une exposition durant plusieurs semaines à des conditions oxydantes. Il est conclu que la chalcopyrite tolère assez bien l’oxydation lors de la mise en tas en raison de divers facteurs reliés à l’altération de sa chimie de surface.

Excerpts taken from abstracts in CIM Journal, Vol. 3, No. 2 and Vol. 3, No. 3. To subscribe and to submit a paper—www.cim.org

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Uranium peroxide precipitate drying temperature relationships C. Rodgers and B. Dyck, Cameco Corporation, Saskatoon, SK Vol. 3, No. 3

ABSTRACT Cameco Corporation is revitalizing its Key Lake Operation uranium mill in northern Saskatchewan. The mill currently uses ammonia stripping in solvent extraction (SX) and ammonia yellowcake precipitation. As part of the revitalization, the company considered installing strong acid stripping in solvent extraction (used at its Rabbit Lake Operation), which would lead to using hydrogen peroxide for uranium precipitation. As part of the process evaluation, tests were carried out to study how the drying temperature in indirect fired dryers would affect the uranium peroxide yellowcake precipitate properties. This paper discusses the test work results, including the relationships between drying temperature and product reactivity with water, product colour, product grade and energy input requirements. RÉSUMÉ La minière Cameco revitalise son usine de traitement de l’uranium de Key Lake dans le nord de la Saskatchewan. L’usine utilise actuellement le stripage à l’ammoniaque dans l’extraction par solvants et la précipitation du concentré d’oxyde jaune d’uranium (« yellow cake »). Dans le cadre de la revitalisation, la compagnie a pensé installer un stripage par acide fort dans l’extraction par solvants (procédé utilisé à Rabbit Lake), ce qui pourrait mener à l’utilisation du peroxyde d’hydrogène pour précipiter l’uranium. Dans le but d’évaluer le processus, des essais ont été effectués pour étudier comment la température de séchage dans les sécheurs à chauffage indirect affecterait les propriétés du précipité par peroxyde de concentré d’oxyde jaune d’uranium. Le présent article discute des résultats des essais, incluant les relations entre la température de séchage et la réactivité du produit avec l’eau, la couleur et la teneur du produit ainsi que la demande énergétique.

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August 2012 | 99

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TECHNICAL ABSTRACT

canadian metallurgical quarterly

Influence of Process Parameters on the Reduction Contours During the Production of Ferro-Chromium in a Submerged-Arc Furnace S. Ranganathan and K.M. Godiwalla, National Metallurgical Laboratory, Jamshedpur 831 007, India

ABSTRACT Contours of iso-reduction lines in the submerged-arc furnace producing ferro-chromium were constructed using a mathematical model based on the temperature profile inside the furnace and of the kinetics of reduction of chromite ores. The location and the contours of the iso-reduction lines are significantly influenced by the temperature profile in the furnace. From the model, it is found that about 27 per cent of the furnace volume is used for reduction of the ore. The contours are significantly influenced by the degree of pre-reduction of the ore charged into the furnace. The isoreduction lines can be used for enhancing the efficiency of the process and for better control of the operation exploiting options such as intelligent distribution of charge materials over the charge bed. RÉSUMÉ On a construit des lignes de contour d’iso-réduction dans le four à arc submergé produisant du ferrochrome en utilisant un modèle mathématique basé sur le profil de température à l’intérieur du four et sur la cinétique de réduction des minerais de chromite. La localisation et les contours des lignes d’iso-réduction sont influencés significativement par le profil de température dans le four. À partir du modèle, on a trouvé qu’environ 27 pour cent du volume du four était utilisé pour la réduction du minerai. Les contours sont influencés significativement par le degré de pré-réduction du minerai chargé dans le four. On peut utiliser les lignes d’iso-réduction pour augmenter le rendement du traitement et pour mieux contrôler les options d’exploitation de l’opération comme la distribution intelligente des matériaux de la charge sur le lit de chargement.

Mechanism of Explaining Liquid Friction and Flux Consumption during Non-sinusoidal Oscillation in a Slab Continuous Casting Mold X. N. Meng* and M. Y. Zhu, School of Materials & Metallurgy, Northeastern University, Wenhua Road 3-11, Shenyang 110819, P. R. China

ABSTRACT The mechanism of explaining liquid friction and flux consumption in a nonsinusoidal oscillating mold is expounded by proposing a series of indexes for estimating interface phenomena between mold and metal in meniscus and calculating the effect of non-sinusoidal oscillation parameters on these indexes. The results show that the liquid flux periodically infiltrates into the gap between the oscillating mold and the withdrawing slab by the negative pressure caused by widening flux channel from the last stage of positive strip time to the last stage of negative strip time. The surface cracks on the slab, even breakout, are formed during the positive strip time and existing surface cracks can be healed within the cumulative negative strip time. The casting performances improved by decreasing oscillation frequency and increasing amplitude and the non-sinusoidal oscillation factor. RÉSUMÉ On explique la friction liquide et la consommation de flux dans une coquille à oscillation non-sinusoïdale en proposant une série d’indices pour estimer les phénomènes d’interface entre la coquille et le métal dans le ménisque et pour calculer l’effet des paramètres d’oscillation non-sinusoïdale sur ces indices. Les résultats montrent que le flux liquide s’infiltre périodiquement dans l’espace entre la coquille oscillante et la brame en retrait par la pression négative causée par l’élargissement du canal de flux à partir de la dernière étape de temps positif de démoulage jusqu’à la dernière étape de temps négatif de démoulage. Les fissures de surface de la brame, et même la percée, sont formées lors du temps positif de démoulage et les fissures de surface existantes peuvent être réparées lors du temps négatif cumulatif de démoulage. Le rendement du moulage s’améliorait en diminuant la fréquence d’oscillation et en augmentant l’amplitude et le facteur d’oscillation non-sinusoïdale.

100 | CIM Magazine | Vol. 7, No. 5

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XRD and XANES Study of Reactions in Particulate Al-Mg Alloy Composites W.A. Uju, Department of Mechanical Engineering, University of Saskatchewan, Saskatoon, SK, S7N 5A9, Canada, E. Gikunoo and I.N.A. Oguocha*, Department of Materials Engineering, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana.

ABSTRACT Reactivity in stir cast Al-Mg alloy composites reinforced with fly ash was investigated by means of X-ray diffraction (XRD) and X-ray Absorption Near-Edge Structure (XANES) spectroscopy at Al and Si K-edges. High-purity Al, α-Al2O3, MgAl2O4 (spinel), MgO and SiO2 powders were used as reference materials in the XANES investigation. The XRD and XANES data acquired from the raw fly ash used in making the composites were compared with fly ash particles extracted from the as-cast composites. The major reaction product formed during fabrication of the composites was spinel. The XANES technique was useful in verifying the presence of various oxides in raw and extracted fly ash particles. RÉSUMÉ On a investigué la réactivité de composites de l’alliage Al-Mg renforcé avec des cendres volantes et moulé par agitation, au moyen de la diffraction des rayons X (XRD) et de la spectroscopie de structure près du front d’absorption des rayons X (XANES) aux seuils K de l’Al et du Si. On a utilisé des poudres d’Al, d’Al2O3-α, de MgAl2O4 (spinelle), de MgO et de SiO2 de haute pureté comme matériaux de référence dans l’investigation par XANES. On a comparé les données de XRD et de XANES acquises à partir des cendres volantes brutes utilisées dans la fabrication des composites, avec les particules de cendres volantes extraites des composites de brut de coulée. Le produit de réaction majeur formé lors de la fabrication des composites était le spinelle. La technique de XANES était utile dans la vérification de la présence d’oxydes variés dans les particules de cendres volantes brutes et extraites.

Nugget Formation and Growth during Resistance Spot Welding of Aluminum Alloy 5182 M. Rashid 1,2, J. B. Medley 2, Y. Zhou 2 1 CANMET-MTL, Natural Resources Canada, Ottawa, ON, K1A 0G1, Canada 2 Department of Mechanical & Mechatronics Engineering, University of Waterloo Waterloo ON, N2L 3G1, Canada

ABSTRACT Surface interaction at the worksheet-worksheet interface during resistance spot welding of aluminum alloy 5182 with spherical tip electrodes was investigated. Oxide layer cracking and nugget formation were the focus. Both experimental work and finite element analysis were employed to explain the contact behaviour at this interface. It was found that sheet separation and thus bending occurred during the squeezing phase of the resistance spot welding process and suggested a profound influence on nugget formation. The sheet separation caused enlarged and aligned cracks in the surface oxide layers, which led to a good metal-to-metal contact near the periphery of the faying surface. High current densities, which occurred at the beginning of the current phase, caused significant heat generation in this zone. Consequently, the melting at the faying surface started near the periphery and moved in towards the central zone of the contact region to produce a “doughnut-shaped” nugget with a filled-in but thin central region. RÉSUMÉ On a étudié l’interaction de la surface à l’interface feuille de travail-feuille de travail lors du soudage par points par résistance de l’alliage d’aluminium 5182 avec des électrodes à bout sphérique. On s’est concentré sur la fracture de la couche d’oxyde et sur la formation du noyau. On a utilisé tant le travail expérimental que l’analyse par éléments finis pour expliquer le comportement de contact à cette interface. On a trouvé que la séparation de la feuille, et donc le pliage, se produisait lors de la phase de compression du procédé de soudage par points par résistance, suggérant une influence profonde sur la formation du noyau. La séparation de la feuille résultait en fissures agrandies et alignées dans les couches d’oxyde de la surface, ce qui amenait un bon contact de métal à métal près de la périphérie de l’aire de contact. Des densités élevées de courant, qui se produisaient au début de la phase de courant, résultaient en un dégagement important de chaleur dans cette zone. Conséquemment, la fonte de l’aire de contact commençait près de la périphérie et se déplaçait vers la zone centrale de la région de contact, produisant un noyau en forme d’anneau avec une région centrale remplie, mais mince.

Excerpts taken from abstracts in CMQ, Vol. 49, No. 4. Subscribe—www.cmq-online.ca

August 2012 | 101

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FEATURE BUILDING CAPACITY We track the mining, infrastructure and policy developments that are shaping the future of the oil sands

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106-106 Mining Lore v4_Layout 1 12-08-13 4:22 PM Page 106

William Ogilvie: surveyor of the Klondike Gold Rush by Correy Baldwin

Willaim Ogilvie, Library and Archives Canada / C-074924

hen the Klondike Gold Rush broke out in 1896, Buzz about the Yukon continued to build, and eventually prospectors descended on the Bonanza and Eldo- Ogilvie recommended Ottawa step up its presence. In 1895, rado creeks in a chaotic scramble for gold. They 20 policemen were stationed at Forty Mile, and Ogilvie measured out and marked their own claims through the thick returned to the Yukon to continue surveying the Alaska borbush – an inevitably hasty der. He was still there and haphazard process – when Geoge Carmack and soon the boundaries wandered into Forty of the Klondike claims Mile on September 24, were a complete mess. 1896, to register his It was up to William Bonanza Creek claim. Ogilvie, a Dominion land Ogilvie set out for the surveyor already staKlondike and found tioned in the Yukon, to plenty to keep him busy, literally set things checking the accuracy of straight. When Ogilvie claims and correcting surveyed the claims, he those that were off. Pros found an overwhelming pectors and miners number – roughly three trusted Ogilvie, a resquarters – inaccurately pected official known marked. for his fastidious work, The stakes – and the as well as his honesty tensions – were high: and impartiality, which with such rich deposits allowed a surprising below, fortunes were to William Ogilvie and his survey party at their winter quarters, 1895. level of calm and order be gained and lost as Ogilvie went about straightening the to reign over the gold fields of the Klondike. boundaries of the claims. As a civil servant, Ogilvie was not able to take part in the Ogilvie first came to the Yukon in 1887, leading a small riches of the gold rush. However, at least one member of his team to survey Canada’s border with Alaska. At the Chilkoot team did. Pass, he met the trio of men who were destined to stake the first When miners had staked more ground than they were enticlaims of the Klondike rush: George Carmack, Skookum Jim tled to, Ogilvie’s corrections created leftover-fractions, underand Dawson Charlie. Carmack and Jim worked as packers on sized, pie-shaped pieces of ground open to be claimed. One of the pass and were part of the 120-strong packing team Ogilvie these fractions – a piece just 26 metres wide at the base – was hired to carry over six tonnes of supplies and equipment. claimed by Dick Lowe, a chainman on Ogilvie’s surveying crew. An increase in mining activity in the remote district had The fraction did not look promising and he tried to sell it, caught the Canadian government’s attention, and Ogilvie was but there were no takers; it was too small to bother with. He to report back on the Yukon’s mineral potential. So he spent tried to lease it and again nobody expressed interest. Finally, he the winter at Forty Mile, near the Alaska border, surveying and decided to just mine it himself. speaking to local prospectors. Lowe sunk a shaft but found nothing. So he tried again, and Ogilvie understood the importance of setting up a stable this time he hit gold, bringing out 3,000 ounces valued at administration, but he also listened to prospectors’ concerns $46,000 in his first eight hours. His fraction would bring in and recommended Ottawa take a hands-off approach for the more than half a million dollars, the richest claim per square time being (including not collecting royalties), so as not to sti- foot in the Yukon. fle prospecting. He also took prospectors’ advice and enlarged Ogilvie may not have made a mint, but he played a vital placer claims from 30.5 metres of frontage to 152.5 metres to role in the Klondike, before, during and after the gold rush. He compensate for the difficulties of working with permafrost. installed law and order in the gold fields, surveyed the jumOgilvie predicted that significant deposits would soon be bled townsite of Dawson City and, from 1898 to 1901, was discovered in the Yukon. commissioner of Yukon. CIM 106 | CIM Magazine | Vol. 7, No. 5

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