CIM Magazine December '12/January '13

001-001 Cover v4_001-001 Cover 2012-12-17 2:18 PM Page 1

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CONTENTS|CONTENU CIM MAGAZINE | DECEMBER 2012 / JANUARY 2013 | DÉCEMBRE 2012 / JANVIER 2013

TOOLS OF THE TRADE 10

Communication Compiled by H. Mathisen

NEWS 16 26

Industry at a glance Rising risks in Quebec Mining industry focused

on

recovering

public

trust

by K. Lagowski

30

New Mining Act in Ontario Regulations designed to increase early consultation with First Nations by H. Mathisen

32

Debate over imported coal workers Chinese mine pushes Canadian labour market question by Z. Macintosh

34

Details of Quebec-Cree agreement released Land use planning central to expanded role of First Nations in governance

by A. Dion-Ortega

32 COLUMNS 36 38 40 42

MAC Economic Commentary A bumpy road to a bright future by B. Marshall Finance Greenfield projects in the new financing world by M. Chiesa HR Outlook Is technological innovation the solution to the skills crunch? by R. Montpellier Communications Staff engagement key to process improvement by B. De Windt

UPFRONT 44 46 48

The might of the round table EMESRT provides one voice to accelerate safer equipment designs by H. Mathisen From reactive to proactive Intelligent approach to inspections finds its niche in mining by A. Lopez-Pacheco High-tech ore bodies Shift to mining electronics more mental than material

by Z. Macintosh

50

How to say “upside potential” in Mandarin Gordon Houlden on undeveloped opportunity

by A. Dion-Ortega

44 4 | CIM Magazine | Vol. 7, No. 8

in

the

Middle

Kingdom

004-005 TOC v9_Layout 1 2012-12-17 10:47 AM Page 5

54 CIM COMMUNITY 68

In the driver’s seat CIM leads Canadian mining industry development in West Africa L’ICM aux commandes L’ICM aux avantpostes du développement de l’industrie minière canadienne en Afrique de l’Ouest by/par C. Baldwin

71 73 75 76

FEATURE | ARTICLE VEDETTE PERSPECTIVES 2013 - A TEST OF METTLE 54 56 60 63 66

Addition by subtraction Miners are tightening their belts, and seeking out efficiencies within and across operations by H. Mathisen On the record Industry players and advisors offer their takes on the prospects for the coming year by A. Reitman The tech (r)evolution Making good on the promise of existing and emerging automation technologies by E. Moore En faire plus avec moins Les mineurs se serrent la ceinture et recherchent l’efficacité dans toutes les facettes des opérations par H. Mathisen L’évolution technologique révolutionnaire Rentabiliser les technologies de l’automatisation existantes et émergeantes. par E. Moore

84

CIM CALENDAR OF EVENTS Calendrier des événments de l’ICM 2013

Building a united front Innovations in mining 2013 – Latin America highlights importance of collaboration by D. Zeldin CSR done right Selwyn Blaylock Medal winner Stephen Quin takes community interests to heart by D. Plouffe Reaching out CIM Edmonton Branch builds local ties with students by K. Lagowski Bigger is better Montreal CIM Branch joins CMMF funds pool Voir en grand La section de Montréal de l’ICM rejoint le fonds commun de la FCMM by/par D. Zeldin

78

Time to take control Philip Thwaites sheds light on importance of automation in process control by A. Lopez-Pacheco

79

Creating the mindset for operational excellence MSGC helps develop global

82 84

mining standards and best practices by H. Ednie What makes students tick? CMMF scholarship winners reveal what fuels their passion for mining by L. E. Moore

CIM Calendar of Events 2013 Calendrier des événments de l’ICM 2013

TECHNICAL ABSTRACTS 93 94

CIM Journal Exploration & Mining Geology

IN EVERY ISSUE 6 8 95 96 98

Editor’s letter President’s notes / Mot du president Innovation showcase Professional directory Mining Lore Coal mining disaster: the 1958 Springhill Bump by C. Baldwin

December 2012 / January 2013 | 5

006-006 Editor v6_004-004 Editor 2012-12-17 10:26 AM Page 6

editor’s letter

Change is in the air “There is no real ending. It’s just the place where you stop the story.” ~ Frank Herbert The annual Outlook issue, that binds the past and coming year, is a moment of reckoning in the editorial cycle. It is a time to recall the highlights (such as news this past spring that our November 2011 “Plan Nord” edition earned a Tabbie Award), learn from the challenges (there were a few press deadlines that were made by the skin of our teeth), and begin laying down plans for 2013 (such as our expansion to nine issues). This Outlook issue is particularly poignant for me as it is the final one for which I will serve as editor-in-chief. I am thrilled to announce that, commencing with the February 2013 issue, our incumbent senior editor, Ryan Bergen, will be assuming the role.

Anybody that knows me surely knows how passionately I feel about CIM Magazine. I have repeatedly referred to mine as “the best gig a person could ask for.” However, with the growing demands and opportunities on the communications front, it has become increasingly challenging to wear both the hats of editor-in-chief and CIM director of media and communications. These roles have evolved into two distinct positions, and CIM Management and Council have been very supportive in recognizing this change. It was no easy task to choose which hat to wear. However, that difficult choice was made easier by the fact that I am leaving the magazine in some very capable hands.

In the three years that Ryan has been with CIM Magazine, his dedication, vision and editorial prowess have been key to the evolution and success of the magazine and the variety of other products of the publications department. I look forward to supporting him in my advisory capacity as executive editor, as he takes the magazine in exciting new directions.

I would also like to acknowledge the invaluable contribution of our exceptional publications team, including the three talented individuals who are currently interning with CIM Magazine: Zoë Macintosh, Herb Mathisen and Maria Olaguera. What a team! Your enthusiasm, commitment and skill have contributed to my growth as both an editor and a person.

Finally, I would like to thank CIMers for your incredible support. I have greatly appreciated the generosity with which you have shared your suggestions, stories and feedback, and it has been my honour to make those ideas come alive on the pages of CIM Magazine. I am looking forward to engaging with you all in my capacity as director of communications, publications and media.

On behalf of the CIM national office, I would like to wish you all a very healthy, happy and prosperous new year!

Angela Hamlyn, Editor-in-chief editor@cim.org 6 | CIM Magazine | Vol. 7, No. 8

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 Editorial interns Herb Mathisen, hmathisen@cim.org Zoë Macintosh, zmacintosh@cim.org Maria Olaguera, molaguera@cim.org Publisher CIM Contributors Correy Baldwin, Mauro Chiesa, Bertrand De Windt, Antoine Dion-Ortega, Heather Ednie, Krystyna Lagowski, Alexandra Lopez-Pacheco, Zoë Macintosh, Brendan Marshall, Herb Mathisen, Ryan Montpellier, Eavan Moore, Lynn Elizabeth Moore, Dan Plouffe, Anna Reitman, Charis Tsevis Translations SDL 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 A mosaic created by Athens-based visual designer Charis Tsevis.

For more of his designs, visit tsevis.com.

Layout and design by Clò Communications Inc. www.clocommunications.com 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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008-008 Pres Notes v3_pres notes 2012-12-13 3:06 PM Page 8

president’s notes

Looking forward to 2013 December is here and, to my surprise, so is the mid-point of my tenure as CIM president.

In October, I enjoyed the hospitality of Robert Carey, vice-president of the Underground Mining Society, and Jeff Spence, chair of the Saskatoon branch, when I joined the branch and its many welcoming members for their annual Potash Night. A record 300 people attended, including Tim Joseph, vice-president of District 4/5, which includes the Saskatoon branch. While in Saskatchewan, I also received an expertly guided tour of The Mosaic Company’s Colonsay mine, courtesy of mill superintendent Mike Castleberry and underground superintendent Trevor Eagles. The mine’s state-of-the-art mining technology, featuring automated boring and conveyor systems, together with the highly skilled mining people on site, explain why Saskatchewan is a world leader in potash. Of course, the size and quality of the deposits also help!

We are currently preparing our plans and budgets for next year.

Our most important upcoming activity is the 2013 CIM Convention in

Toronto, our annual conference. Our technical program organizers are putting together a strong lineup of presentations, and the exhibition floor space is already sold out. If you watched the Grey Cup celebrations, you know that Toronto is not lacking in entertainment.

Start making your plans to attend this event, which is shaping up to be a big success.

We are also addressing the future leadership of CIM. We have begun the nomination process for an incoming president-elect who will serve as president in 2015-16. And, in the coming year we will be stepping back to review our strategy and objectives for the future.

In this issue, we are highlighting CIM’s activities outside Canada’s borders with news on developments in West Africa and at our new branch in Peru. These initiatives are indicative of CIM’s future direction – 70 per cent of Canadian mining assets are located abroad, so CIM must follow and support our members as they lead the Canadian mining industry forward on the global stage.

I wish you all a healthy and prosperous new year and want to thank all of our active national, branch, and society members for their efforts on behalf of CIM in 2012.

Terence Bowles, CIM President

En route vers 2013 Déjà décembre et, à ma grande surprise, j’entame également la dernière moitié de mon mandat à titre de président de l’ICM. En octobre, à mon arrivée dans cette section, j’ai pu bénéficier de l’hospitalité de Robert Carey, vice-président de la Société d’exploitation minière souterraine, et de Jeff Spence, président de la section de Saskatoon, ainsi que de l’accueil chaleureux de ses nombreux membres lors de la Soirée de la potasse annuelle. Une foule record de 300 personnes était présente, dont Tim Joseph, vice-président du District 4/5, qui comprend la section de Saskatoon. Au cours de mon séjour en Saskatchewan, j’ai également pu profiter d’une visite guidée de la mine Mosaic Company de Colonsay, gracieusement offerte par le surintendant d’usine Mike Castleberry et le surintendant du travail souterrain Trevor Eagles. L’utilisation d’une technologie novatrice d’exploitation minière, faisant appel à du matériel de forage et des systèmes de convoyeurs automatisés, ainsi que les employés hautement qualifiés qui y travaillent, expliquent pourquoi la Saskatchewan est le chef de file mondiale en production de potasse. Bien entendu, la taille et la qualité des gisements y sont également pour quelque chose!

Nous préparons actuellement nos plans et nos budgets pour l’année prochaine. La principale activité de l’année 2013 sera le congrès de l’ICM, notre conférence annuelle, qui se tiendra à Toronto. Nos organisateurs du programme technique mettent actuellement en place une vaste gamme de présentations. Les places dans la salle d’exposition sont déjà toutes vendues. Si vous avez vu les célébrations entourant la

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

Coupe Grey, vous savez que la ville de Toronto ne manque pas de divertissements. Commencez à vous préparer si vous prévoyez participer à cet événement, qui promet d'être un grand succès.

Nous travaillons également à combler le futur poste de président de l’ICM. Nous avons entamé le processus de nomination en vue de l’élection prochaine d’un président qui sera en poste de 2015 à 2016. De plus, nous passerons en revue notre stratégie et nos objectifs d'avenir.

Dans ce numéro, nous mettons l’accent sur les activités de l’ICM menées à l’extérieur du Canada, en vous donnant des nouvelles sur les développements en Afrique occidentale et dans notre nouvelle section au Pérou. Ces initiatives témoignent de l’orientation future de l’ICM. Étant donné que 70 % des actifs miniers canadiens se situent à l’étranger, l’ICM doit suivre et appuyer ses membres tandis qu’ils s’affairent à stimuler l’industrie minière canadienne sur la scène internationale.

Je vous souhaite à tous la santé et la prospérité en cette nouvelle année et j’aimerais remercier, au nom de l’ICM, tous les membres actifs à l’échelle du pays, d’une section ou de la société de leurs efforts en 2012.

Terence Bowles, Président de l’ICM

009-009 Corrections v3.qxd_Layout 1 2012-12-13 3:06 PM Page 9

Errata

ACHIEVEMENTS

Revenue bump

BESTECH receives Stellar Award

In “Mining payments up� (p. 23, November 2012), we cited a recent Mining Association of Canada report incorrectly. The report estimates that Canada’s provincial and federal governments may have collected an extra $1.5 billion, not $300 million, in taxes and royalties from the sector in 2011 compared to 2010. We regret the error.

BESTECH received a 2012 Employer Stellar Award from the Education Co-ordinating Team of Workforce Planning for Sudbury and Manitoulin for its support of students in the Sudbury and Manitoulin areas. It gave 13 co-op placements to students from Laurentian University, University of Guelph, Michigan State University, Cambrian College and Lockerby Composite School this past summer.

The objective of this award is to foster collaboration between potential industry employers, schools and students to provide opportunities and develop the future workforce. BESTECH also pledged $25,000 to College Boreal’s fundraising campaign, Major Capital. “We are thrilled to be honoured as a community employer and we will continue to look to our local educational institutions to complement our current team of professionals,� said Marc Boudreau, co-CEO of BESTECH. “The talent that comes from our local schools is incredible. BESTECH has hired so many brilliant individuals, whom we found in our own backyard. Our partnerships with the various colleges and universities will allow us to maintain access to top students who are expertly trained, while the students will be able to further expand their knowledge by gaining work experience in their field of study.�

Traduction infidèle Dans l’article  L’exploration d’hydrocarbures au QuÊbec , paru dans le dossier spÊcial sur le QuÊbec (p.

68, novembre 2012), une erreur s’est glissÊe dans la traduction des chiffres donnÊs par Paul Durling, gÊophysicien en chef chez Corridor Resources. À la page 74, la citation aurait dÝ indiquer que le gisement Old Harry contient un potentiel de plusieurs billions, et non milliards, de mètres cubes de gaz naturel. La citation aurait dÝ Êgalement mentionner que le gisement pouvait être Êconomiquement viable pour un projet de gaz naturel si Corridor Resources pouvait trouver plusieurs billions, et non milliards, de mètres cubes de gaz naturel. Nous nous excusons de cette erreur.

Mining isn’t about handling material.

It’s about HAULING MASS.

And it requires bigger, stronger & tougher equipment.

Introducing the all new EVOÂŽ Heavy Duty product line from Martin

Our EVOÂŽ product line has been expanded for high speed, high impact applications like mining, with the same modularity, serviceability and ergonomic design as all our other EVOÂŽ

call 800-544-2947 | email info@martin-eng.com | visit HAULMASS.com Ž Registered trademark of Martin Engineering Company in the US and other select locations. Š 2012 Martin Engineering Company. Additional information can be obtained at www.martin-eng.com/trademarks.

A global company.

December 2012 / January 2013 | 9

010-015 Tools of the Trade v7_Layout 1 2012-12-14 9:21 AM Page 10

OF TOOLS THE TRADE

communication

Selective hearing Sensear Communications’ SP2x lets workers cut through the noise around them. The speech-enhancement and noisesuppression ear bud technology blocks ambient noise up to 110 decibels, while also enabling communication, whether face to face, via two-way radio or Bluetooth on a cell phone.

The portable SP2x, which can be clipped to a belt, connects to most radios through a cable, so an operator can communicate over radio – or through Bluetooth technology – without a boom microphone. This is because the SP2x, using Sensear’s microphone-array technology, actually picks up soundwaves in the ear and separates speech from the background noise, says David Cannington, Sensear’s chief marketing officer. The SP2x is useful to haul truck operators in open pit mines, who often have to crank up their radios to make them audible in their vehicle cabins, where noise levels can range from 80 decibels to 90 decibels.

“Typically, they’ve been given earplugs to protect their hearing and it tends to defeat the whole purpose,” says Cannington, adding that operators using the SP2x can turn everything down and protect their hearing as a result.

Signs of sleep Australian company Optalert has come up with a novel use for protective glasses.

A light-emitting diode built into custom frames can read an equipment operator’s eyelids 500 times per second and detect the early physiological signs of drowsiness. Based on how widely and how quickly the driver’s eye is opened, a score from one to 10 is displayed for the operator on a dashboard reader. When drowsiness, in the form of a high reading, is detected, three alarms are triggered – including a 90-decibel auditory warning alarm – to avoid fatigue-related accidents. Kathryne Panna, the company’s marketing projects coordinator, says Optalert Glasses are meant primarily for heavy-equipment operators like haul truck drivers.

Customers can also access real-time alertness readings for their workforce or they can browse the individual fatigue patterns of specific employees.

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

◢ Communicate without a network In the event of an underground emergency, Vital Alert Communication Inc.’s through-theearth CanaryLink-IS transmitter can provide a lifeline to stranded miners.

The Toronto-based company has developed technology that allows for wireless, real-time, two-way voice and text communication vertically through up to 1,500 feet of rock and earth. The transmitter, which uses the principles of magnetic induction to generate a magnetic field that pulses through the earth, operates independently of a mine’s communication infrastructure.

“Safety is our target,” says Andrew Moores, Vital Alert’s senior sales manager. Placed in a refuge chamber or a safe room, the 200-pound device transmits a very low frequency (VLF) signal from underground to operators in a surface control room. The CanaryLink-IS is designed for use in coal mines and is currently in the MSHA-approval process. Moores says the company hopes to release the product within eight months. The company’s hard rock CanaryLink transmitter, weighing roughly 15 pounds, is commercially available and in use in mines from Sudbury to South America. Both products are compatible with UHF/VHF radios and pre-existing leaky feeder communication systems.

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communication

OF TOOLS THE TRADE

◢ Long-distance relationship saver Wenco International Mining Systems Ltd. can replicate a company’s entire surface mining site digitally to give customers an overview of their operations while work is happening on the ground. A rugged onboard computer is fitted to each piece of machinery a customer wishes to monitor, relaying coordinates wirelessly from that machine to Wenco’s system software

and onto a virtual mine plan overlay called MineVision. This system can improve safety with its proximity-warning capabilities and facilitate equipment navigation around a mine site, while also monitoring equipment health. The FleetControl system automates dispatching by telling operators where to go based on predetermined productivity or quality requirements. Equipment operators receive instructions on a display screen mounted to their dashboards, and this can eliminate backlogs around excavation sites or inform operators to get specific ore blends at loading zones before heading to crushers, says Glen Trainor, director of global marketing and North American sales.

Dispatchers can override the automated directions. Wenco staff provide systemcommissioning and ongoing training on site, says Trainor, adding that clients tell him the system is easy to learn.

◢ Tough computers

◢ RFID underground tracking

The MOBL-D2 from Octagon Systems is its smallest and most cost-effective ruggedized mobile computer to date. Sean Fendt, the company’s principle engineer for the mining division, explains that the computer enclosure was designed without active moving parts like spinning discs, coolant pumps or fans to eliminate failures associated with vibration and repeated shock. “It’s really meant to withstand the harsh applications of heavy equipment,” says Fendt. The computer has a mobile power supply, can operate in temperatures ranging from -30 C to 70 C and functions on just six to 11 watts of power. The computer has potential for a wide range of applications: with built-in GPS, location tracking is a major feature, as is vehicle diagnostic interfacing to monitor equipment health. The MOBL-D2 can log and record data, support user-display interfaces and enable Ethernet, radio, 802.11 Wi-Fi network, cellular and even satellite radio communications.

“The applications are limited only by the imagination of the person writing the software,” says Fendt.

The ImPact Tracking System from Mine Site Technologies Inc. (MST) is making it easier for companies to keep track of their most valuable assets underground. Radio frequency identification (RFID) tags – fitted to equipment, carried underground or embedded in miners’ cap lamps – emit a 2.4-gigahertz signal that is picked up by Wi-Fi access point readers spaced throughout an underground mine. This information is transferred via fibre optic cable or radio modem to a computer in a surface control room, where personnel, vehicle and equipment locations are displayed on either a grid or sortable list. Not only do the tags boost safety by pinning down the exact whereabouts of underground personnel, but they can also increase productivity, says Joe Gladu, general manager with MST Canada. When starting a shift, a miner can immediately locate a piece of equipment by looking it up on an embedded display underground, instead of wasting time searching for it. Gladu adds that companies are also starting to use the tags to track inventory for loss or misplacement prevention uses. The system is compatible with underground leaky feeder and wireless communication networks.

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

010-015 Tools of the Trade v7_Layout 1 2012-12-14 9:21 AM Page 13

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010-015 Tools of the Trade v7_Layout 1 2012-12-14 9:21 AM Page 14

OF TOOLS THE TRADE

communication

◢ Keep tabs on your fleet Blue Sky Network’s new SkyRouter tracking system allows fleet managers to simultaneously monitor their aircraft, marine and ground vehicles on one map, in real time. Vehicle location and diagnostic information are transmitted from installed or portable tracking devices to either the Iridium network of 66 low-Earth orbiting satellites or local GSM networks, and then displayed on SkyRouter’s cloud-based portal. SkyRouter is also accessible on Android and iOS devices through a mobile app. Customers get pole-to-pole coverage, making SkyRouter ideal for companies operating offshore and in remote northern or southern locations, according to Paul Duran, the company’s vice-president of marketing and sales. “Other technologies don’t give you global coverage,” says Duran. A unique feature of the system is that D1000A/C transceivers in helicopters and fixed-wing planes, installed in tandem with the ACH1000 control

head, let aircraft communicate directly with fleet managers. In an emergency, a pilot can hit a quick position button to make its coordinates immediately available. Data from vehicles can be compiled into reports, enabling companies to ensure, for example, that optimal routes are being used or that equipment is operating efficiently.

◢ Tire-preserving technology

◢ Boldly going everywhere

Building on its existing fleet monitoring system, Pennsylvaniabased IronSyte Monitors has rolled out TireSyte, a product that lets customers keep constant tabs on their haul truck tires.

Each tire’s valve stem is fitted with a tire pressure sensor that contains a circuit board and a miniature radio; the sensor takes a reading of the tire’s pressure and temperature every seven and a half minutes. This information is received by a central control unit mounted to the truck and then transmitted to the company’s data server. Tom Lampert, owner of IronSyte Monitors, says if the tire’s pressure or temperature go above or below thresholds preset by the customer, a text or email alerts the maintenance department immediately. “If you are 10 per cent down on tire pressure, you will lose 10 to 20 per cent of your tire life,” says Lampert, adding that fuel consumption also decreases when tires are kept up to specifications.

Lampert says customers tell him the system – customizable to any industrial tire – pays for itself within a month, considering a 300-tonne truck tire can cost upwards of $50,000.

Mobile devices have historically not been permitted in potentially hazardous methane collection sites due to explosion risks posed by the sparks the devices can generate. But Snively Inc.’s new PDA, which received ATEX approval for operation in explosive atmospheres in October, allows inspectors and mine safety coordinators to scan equipment barcodes, use safety inspection compliance software and even remotely access SAP work orders at mine faces. “This model is basically a rugged mobile computer,” says Justine Blank, the company’s vicepresident, adding it has a built-in video camera and can be used as a wireless radio. The device’s battery was designed for a 12-hour shift, and users can check emails and communicate via VOIP phone, since it is compatible with 802.11 a/b/g/n wireless networks. The device weighs two pounds with the battery and is 9.8 x 3.3 x 2.3 inches. Already available in Europe, the PDA is currently undergoing U.S. Mine Safety and Health Administration approval testing; the company hopes to release it in the United States in early 2013.

Compiled by Herb Mathisen

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

010-015 Tools of the Trade v7_Layout 1 2012-12-14 9:21 AM Page 15

W WHEREVER HEREVER T HERE ARE ARE THERE PRODUCTS TO TO PRODUCTS ARTS A SUPPORT, P SUPPORT, PARTS T O DELIVER DELIVER TO OR OPERATORS OPERATORS T OT RAIN. TO TRAIN. W E’RE T HERE. WE’RE THERE. Together with our global dea To aler network, Caterpilla ar provides unmatcched global service an nd support, integrated d ssolutions, and d ffasst and d efficient effi i partss fu fulfillment—from lfill f one source.

W WHEREVER HEREVER THERE’S THERE’S M MINING. INING.

© 2012 Caterpillar All Rights Reserved. CA AT, CA AT TERPILLAR, TERPIL their respective logos, “Caterpillar Ye ellow,” and the “Power Edge“ trade dress as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission. Cat and Caterpillar are registered trademarks of Caterpillar Inc., 10 0 N.E. Adams, Peoria IL 61629.

M I N I N G . C AT. C O M

016-025 Briefs v8_001-001 Cover 2012-12-13 3:05 PM Page 16

news | industry at a glance and they will want to do things that are creative in the short term, because I think investors are requiring that,” said Sprague.

– H.M.

Courtesy of BHP Billiton

TransCanada joins Grand Rapids pipeline project

Harry Winston purchased the Ekati diamond mine and other assets from BHP Billiton for $500 million.

BHP sells diamond business

Mining M&As down in 2012

The Harry Winston Diamond Corporation has agreed to purchase the Ekati mine, along with a sorting facility in Yellowknife, N.W.T. and marketing offices in Antwerp, Belgium, from BHP Billiton for $500 million.

The Ekati diamond mine has been in operation since 1998 and, over the last five years, has produced an average of nearly US$750 million in rough diamonds each year. Harry Winston announced it could push back the mine’s slated closing date of 2019 if diamond prices go up. The sale comes nearly one year after BHP first announced it would review its diamond business.

“BHP Billiton’s focus is on large, long-life, low-cost, expandable upstream assets and has a global pursuit of a simpler business,” said Bronwyn Wilkinson, a BHP spokesperson. “BHP Billiton’s investments in Ekati have created substantial value for shareholders and Northern Canada. However, in the absence of opportunities to recreate this success elsewhere, BHP Billiton concluded that a continued presence in the diamonds industry would not be consistent with our strategy.”

Harry Winston is not new to the northern diamond mining game, owning a 40 per cent stake in Rio Tinto’s Diavik diamond mine. – Herb Mathisen

Economic uncertainty, renewed resource nationalism, rising operating costs and volatile markets have contributed to a decrease in the number of mining mergers and acquisitions (M&As) so far this year, according to a report from Ernst & Young.

Between January and September 2012, 684 deals took place, down 16 per cent from 816 in the same period the year before. The total value of M&As fell by 43 per cent to $76.8 billion from $133.7 billion in the first nine months.

Bruce Sprague, Ernst & Young’s Canadian mining and metals leader, said with equity financing extremely tight for junior miners, executives are patiently waiting for their companies’ valuations to improve. Meanwhile, intermediates and majors are becoming more methodical when it comes to growth, leading to a potential disparity between how much juniors want to sell for and how much buyers want to spend. “[Intermediates and majors] are not doing acquisitions just for the sake of doing them anymore,” he said.

The report is optimistic about M&A activity in 2013, although mostly with regard to smaller, strategic partnerships instead of blockbuster deals.

“I think there will be a focus by the acquirers on the internal rate of return

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

Commitment from TransCanada and heavy investment from Chinesecontrolled Phoenix Energy Holdings Ltd. clinched plans for the first major oil pipeline to service future oil sands west of Alberta’s Athabasca River. “It’s definitely safe to say that [Phoenix] is underpinning the entire project,” said TransCanada media relations specialist Grady Semmens. “Their commitment to partner and move volumes on the project has made it feasible to proceed.”

The companies formed a 50:50 joint venture that doles operations and construction responsibilities to TransCanada and “primary user” privileges to Phoenix, a PetroChina subsidiary.

Upon completion in 2017, the nearly 40-inch diameter, 500-kilometre pipe could move 900,000 barrels of diluted bitumen a day from a feeder west of Fort McMurray to the Enbridge terminal in Edmonton.

“There is a lot of projected growth in the west Athabasca region and, at this time, very little pipeline infrastructure to move the product out of that area,” Semmens said. “So there is quite a bottleneck and this project is one that will, we hope, be somewhat of a backbone system.”

An approval process beginning in 2013 could let construction commence in 2014.

– Zoë Macintosh

Queensland lifts uranium mining ban The government of Queensland, with support from the Australian Labour government, is re-opening uranium mining in the state after a 23-year ban. The announcement closely followed a three-day trip Prime Minister Julia Gillard made to India to promote her country’s uranium resources.

“Uranium exports will earn Queensland tens of billions of dollars over the next two decades, providing thousands

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Queensland Premier Campbell Newman said. “Global demand for this energy will create enormous opportunities in coming years.�

Queensland is the last of the Australian states with large uranium deposits to lift its ban.

A six-person Uranium Implementation Committee will submit a best

practices framework to government by mid-March 2013.

According to Minister for Natural Resources and Mines Andrew Cripps, Queensland’s known uranium deposits are worth AUD$10 billion.

The Australian Uranium Association reported that around AUD$18 million was spent on uranium exploration in Queensland in 2011. – Z.M.

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Canada and China to share coal health expertise The Canadian International Development Agency’s (CIDA) Policy Options Project (POP) in China has commissioned the Foundation for International Training (FIT) to conduct a knowledge transfer program between Canada and coal-rich Ningxia Autonomous Region, China.

POP was awarded the grant after it received a request for help from the Ningxia department of health, which plans to revamp its policies.

Seminars in Canada with occupational health and safety experts will educate Ningxia policymakers and regulatory officials on “strategies and standards in vocational disease prevention, control and reduction,� said Michelle Sweet, communications and program director for FIT. “Most of the training and knowledge exchange will take place in Canada,�

Sweet said. The first of two study missions by Ningxia officials will commence in May 2013.

A one-week tour in October already granted Nova Scotia mine inspector Pleman Woodland a chance to visit sites in China. Woodland toured facilities in Ningxia to identify areas for improvement, according to Chrissy Matheson, a spokesperson for the Nova Scotia Labour and Workforce Development.

She added that exposure to Chinese operations helps “ensure that [Nova Scotia inspectors] maintain currency with developing technologies and procedures as they relate to workplace – Z.M. health and safety.�

Canada retools foreign investment rules

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

The Canadian government updated its policy concerning the sale of Canadian companies to foreign state-owned enterprises (SOEs), which could impact future investment in Canada. The decision comes along with the approval of two major acquisitions by foreign SOEs. In early December, China National Offshore Oil Corporation’s (CNOOC) US$15.1-billion acquisition of Calgarybased Nexen Inc. was approved, as was the $6-billion purchase of natural gas

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news | industry at a glance producer Progress Energy Resources Corp. by Petronas of Malaysia.

Over the next four years, the threshold that will trigger an Investment Canada Act review of attempted acquisitions of Canadian firms by private foreign enterprises will rise to $1 billion. But attempted takeovers by SOEs will be triggered by the existing $330-million standard.

Prime Minister Stephen Harper said future takeovers of Canadian oil sands companies by foreign SOEs would only be considered under “exceptional circumstances,” adding that “further such foreign state control would not be of net benefit to Canada.”

A discussion paper released after the announcement by the Canadian business

law firm Osler called the CNOOC deal a “tipping point” for foreign SOE investment in Canada. The paper argued that Harper has clearly indicated a preference for minority ownership from SOEs in Canadian companies or for private investment from outside Canada. – H.M.

Tantalum deal affects global prices A supply agreement for tantalum was struck between Advanced Metallurgical Group’s (AMG) Mibra mine in Brazil and an undisclosed industrial manufacturer for a substantial portion of the mine’s output. The Mibra mine is the world’s largest producer of tantalum. AMG stated it has the capacity to produce 300,000 tonnes per year of the specialty metal used to make superalloys and capacitors for smartphones and other electronics. Deliveries according to the new agreement will begin in the second quarter of 2013.

The deal affected tantalum prices globally. “It re-set the market price,” said Dennis Zogbi, president of North Carolina-based market research firm Paumanok Publications Inc. Prior to the October deal, the speciality metal sold for approximately US$140 per pound, Zogbi said. Afterwards it sold for around 10 per cent higher, he estimated. This upswing comes on the heels of a surge that has seen tantalum prices nearly triple over the last two years, according to the U.S. Geological Survey.

– Z.M. ACHIEVEMENTS Barrick Gold ranks high on carbon disclosure index The Carbon Disclosure project (CDP) named Barrick Gold Corp. to the CDP Canada 200 Carbon Disclosure Leadership Index for a third straight year. This list consists of Canada’s 20 leading companies with the highest carbon disclosure scores on corporate carbon-related issues, including greenhouse gas emissions, strategy and governance. It is Barrick Gold’s second top five ranking in this survey.

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

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news | industry at a glance Oyu Tolgoi moves one step closer Oyu Tolgoi LLC has signed a power supply agreement with a Chinese company for its US$6-billion project in southern Mongolia, meaning commercial production could begin as early as the first half of 2013.

As part of the purchasing agreement with China’s Inner Mongolia Power Corp., the mine can source and subcontract power from suppliers outside Mongolia for the first four years of production, but is committed to having Mongolia provide all of the mine’s power afterwards. Mongolia does not currently have the capacity to provide

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the project’s power needs, according to an Oyu Tolgoi LLC press release.

The mine will initially start production as an open pit mine and develop underground block caving operations, with the mine’s overall lifespan estimated at more than 50 years. – H.M.

First Nations oppose FIPA Treaty A number of Aboriginal groups say new rights granted to Chinese investors by the Canada-China Foreign Investment Promotion and Protection Agreement (FIPA) could jeopardize Canada’s constitutional duties to First Nations. The St’at’imc Chiefs Council, the Chiefs of Ontario and the Union of B.C. Indian Chiefs all wrote open letters to Prime Minister Stephen Harper to that effect, and the Assembly of Manitoba Chiefs sent a similar letter to Chen Deming, the Chinese minister of commerce.

These First Nations leaders broadly criticize the agreement, tabled last September, for providing better legal protection to Chinese investors’ interests than to Aboriginal title, rights and treaty rights.

FIPA would introduce costly fees for measures perceived as expropriation, which some argue would make it difficult for the Canadian government to side with Aboriginal groups in land claim disputes with Chinese companies. According to Jessica Clogg, executive director of environmental advocacy-focused legal firm West Coast Environmental Law, “The threat of multi-million-dollar investor-state suits will create a profound disincentive for the Crown to negotiate honourably regarding environmental and cultural protection measures in treaties or other legal agreements with First – Z.M. Nations.”

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BP agrees to US$4.5B settlement London-based BP has agreed to a US$4.5-billion settlement with the United States government and the Securities and Exchange Commission (SEC) for its actions that led to the Deepwater

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Horizon oil spill in the Gulf of Mexico in 2010.

The company pled guilty to 11 counts of manslaughter and three additional charges pertaining to environmental violations and misleading the government as to the severity of the spill. Two BP supervisors were charged with manslaughter and one senior executive was charged with obstruction of Congress. The settlement – with US$4 billion to be paid to the U.S. government and US$525 million to SEC – is the country’s largest ever, and BP will pay in instalments over six years.

On April 20, 2010, a blowout at the Macondo well, located 67 kilometres off the coast of Louisiana, killed 11 employees, injured 17 more and caused the largest oil spill in American history.

An estimated five million barrels of oil flowed into the Gulf of Mexico for three months until the well was finally capped on July 15.

In a release, BP said it has paid out more than US$9 billion in claims to

Stefan Leijon

industry at a glance | news

BP agreed to a US$4.5 billion settlement with the U.S. government and the Securities and Exchange Commission (SEC) for actions that led to the Deepwater Horizon spill.

businesses, government departments and individuals affected by the spill and expects to pay roughly US$7.8 billion in

future settlements. The U.S. government intends to continue to pursue further civil action against BP. – H.M.

December 2012 / January 2013 | 23

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news | industry at a glance Mining academy opens in Flin Flon Now up and running, the Northern Manitoba Mining Academy in Flin Flon aims to increase opportunities for residents to fill future jobs in the region’s mining sector.

Executive director Rob Penner said the academy will adapt its courses to suit industry demands.

“We don’t have a set repertoire of programming that we deliver year after year,” he said. “Our curriculum and programming evolves all the time and responds to the needs of industry.”

HudBay Minerals, for instance, expects its Reed copper mine near Flin Flon to begin production within a year and Penner said the company will need skilled underground miners. The academy will partner with industry, which can sponsor students in programs and volunteer its own personnel to conduct training courses. The academy will also work with universities to develop its curriculum.

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

Penner said exploration technician and diamond driller helper programs are already underway and that he hoped to soon offer the first year of the University of Manitoba’s geological sciences program. The 3,500square-foot academy, operating under the University College of the North, will provide fall-arrest, all-terrainvehicle certification and safety courses, along with a variety of other training programs.

The academy boasts an underground mining simulator, a wet lab and mineral analysis and microscopy equipment so research work can be – H.M. conducted in the area.

Ottawa sued for Quebec fracking ban Lone Pine Resources, Inc. wants $250 million in federal compensation for oil and gas exploration permits revoked by the Quebec provincial government in 2011. A tribunal held by a

World Bank organization will determine if assets were indeed expropriated from an American company, a violation of NAFTA’s Chapter Eleven, which protects foreign investors. “[Canada] is responsible under NAFTA for the responsibilities of the province, which it can’t control,” said Peter Kirby, a Montreal-based senior partner with Fasken Martineau. He noted that if the tribunal sides with Lone Pine, Canada, and not Quebec, would be obligated to pay.

Although Lone Pine Resources Inc. is based in Delaware, it only has operations in Canada and is the parent company of Lone Pine Resources Canada Ltd., which is headquartered in Calgary. Those are factors which, said Kirby, will throw its status as a foreign investor into question.

Quebec’s Bill 18, the act suspending oil and gas mining permits in the St. Lawrence River, explicitly decreed no compensation would be awarded.

– Z.M.

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news

Rising risks in Quebec Mining industry focused on recovering public trust

In 2008, Quebec was ranked as number one by the Fraser Institute’s annual survey of mining companies, which gathers opinions about 93 mining jurisdictions around the world.

But in 2011, Quebec slipped several notches to number five. At the recent Mining Business Risks summit in Toronto, the decline of the province’s standing was in the spotlight, as major players discussed how miners can mitigate growing social risk in Quebec.

According to Jean-Marc Lulin, president and CEO of Longueuil-based Azimut Exploration, the downward path began with the 2009 Quebec Auditor General’s report that targeted loopholes in mining taxation and triggered a systematic protest within Quebec against mining. “This covers a large range of protest, not only about taxation, but also issues like uranium exploration and open pit mining, which have been subject to wellorganized protests by anti-mining activists,” he said.

Lulin pointed out that activists are preying on Quebecers’ heightened sense of fear over the environment.

Those fears were quantified in a 2012 Canadian Environmental Barometer study by Environics Research Group. “Residents of Quebec

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

Courtesy of Socialist Canada, Socialist Quebec

By Krystyna Lagowski

Mining developments in Quebec can meet with considerable popular opposition.

were second only to British Columbia in their concern about the environment,” said Darren Karasiuk, vicepresident of corporate and public affairs at Environics Research Group.

“They’re very alarmist when it comes to the environment.”

What is more, 39 per cent of those polled believe environmental groups – specifically Greenpeace – show leadership in addressing their concerns. The

government’s leadership only impressed four per cent of the respondents.

One antidote may lie in public outreach. The auditor general’s report was one of the factors that spurred the creation of an organization called Minalliance in 2009 by the Quebec Mineral Exploration Association (AEMQ), the Quebec Mining Association (QMA) and other industry players. Minalliance’s mandate is to educate the public about

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the positive aspects of mining. “Our vision is to make the mineral industry a source of pride for all Quebecers,” said Normand Champigny, chair of the board of directors of Minalliance, as well as president of Donner Metals.

“And ‘pride’ is a word we use deliberately – it’s important to Quebecers.”

It is possible that the very success of the mining industry in Quebec has made it a target. “Quebec has witnessed a boom in this industry, which has elevated it to more visibility,” said Champigny. “Once, it was the successful forestry industry that was under attack, but as it diminished in importance, mining has taken its place.”

Minalliance has taken a proactive stance, and started by hiring a skilled communications specialist. “We understand where our target market is,” noted Champigny. Initially, he said, Minalliance members were skeptical

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

about an edgy video that portrays rocks as “sexy.” But when it was released to the general public, an Environics study found that the video increased the public’s approval ratings of the mining industry by three per cent.

Minalliance has also released videos featuring interviews with industry insiders to both dispel myths and present the industry’s realities to the public, using social media and web tools. “The industry often has been categorized as low-tech,” observed Champigny. “A book created with the Université du Quebec à Montreal, the Mining Association of Canada and the Prospectors and Developers Association of Canada (PDAC) focused on 100 innovations in the industry, and is available as a reference tool for the media, academics, et cetera.”

A study and strategic forum was held on the role of Montreal in the

development of Quebec’s natural resources. “Many Quebecers believe the benefits of mining are for the north, when in fact, there are over 1,800 suppliers to the mining industry in Montreal,” said Champigny.

Minalliance is also targeting young people with positive messaging about mining. The organization attended the Eureka outdoor science festival in Montreal, reaching 60,000 students.

And the Mining Matters elementary and high school educational initiative, sponsored by PDAC, will be brought to Quebec schools in French. “We want to make sure younger people get a better understanding of what the industry is about,” explained Champigny.

“Quebec is still a great place to do mining, and we want to stay up there,” he said. “Our messaging highlights what is being done right.” CIM

026-035 News v7_Layout 1 2012-12-13 3:00 PM Page 29

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news

New Mining Act in Ontario Regulations designed to increase early consultation with First Nations

By Herb Mathisen A new Mining Act in Ontario requiring companies to submit plans and apply for permits before conducting exploration work is being phased in.

When companies wish to conduct lowimpact exploration activities – such as small-scale line cutting and trenching – they will need to submit plans to the provincial government, which in turn will inform potentially affected private and Aboriginal landholders of the work.

When this work surpasses quantitative thresholds, or requires mechanized equipment, the company will have to go through a permitting process that will give affected groups a chance to ask questions and suggest conditions for the project. For line cutting, the threshold is 1.5 metres wide.

For now, compliance is voluntary but it will become mandatory on April 1, 2013. The government is encouraging companies to submit permits during this voluntary phase by making the process free; a permit fee has yet to be determined.

Garry Clark, executive director of the Ontario Prospectors Association, said many in the industry have expressed

Oil Sands

& Heavy Oil

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

concerns that the new rules will require extra work, cause delays and ultimately cost companies money. A company cannot start work until 30 days after it has submitted an exploration plan, and permit approvals are expected to take 50 days; plans expire after two years and permits after three. Clark said companies will have to build these timelines into their project plans, noting that added uncertainty exists over potential temporary holdups dealing with sitespecific terms and conditions that could prolong the consultation process.

“That’s the biggest worry,” he said.

“There’s going to be a slowdown on how you get a permit.”

Rob Merwin, director of the Ontario Mining Act Modernization Secretariat, offered a different view. “We think that these new rules and tools just provide that clarity and certainty that people were looking for,” he said, adding the process compels companies and First Nations to build positive relationships early on. Merwin said the new rules still allow prospectors to stake claims without consultation but also to recognize Aboriginal and treaty rights by providing

First Nations with free, prior and informed consent over the use of their traditional lands.

The new rules do not require companies and First Nations to reach formal agreements before permits are issued, but Merwin said the government encourages these types of contracts, as they “provide certainty and stability that a permit alone can’t achieve.”

The Mining Act does lay out some guidelines for effective formal agreements.

The new rules state that any contract should not place excessive burden on companies or undermine the feasibility of a project. These contracts can consist of ongoing monitoring and informationsharing commitments, while also including financial components relating to administrative fees or future employment, depending on the scale of the proposed project. “These arrangements do not mean a payment of an access fee or a drillhole fee,” said Merwin.

Since the regulations came into effect, Shawn Batise, executive director of the Wabun Tribal Council (WTC), said his phone has been busy. The WTC, which represents six First Nation communities

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around Timmins, Ontario, has signed more than 15 agreements with exploration companies and, by this time next year, Batise believes that number could be as high as 40: “We signed two agreements in the last week.”

The council negotiates a standard agreement with companies, which includes information-sharing commitments along with financial accommodation measures accounting for a “very small percentage” of the work being proposed. For a $250,000 drill program, Batise said the council would ask for an amount “in the thousands,” which would assist the communities in monitoring the project and in accessing technical and legal reviews. “The expense to the company at the early exploration

stage is pretty minimal,” he said, adding that the council also asks for company options and share advances. The new process may, however, have a heavier impact on smaller companies with limited resources.

Kenning Marchant, a lawyer and Aboriginal engagement advisor, said larger companies have more flexibility to negotiate deals, but junior companies may not be able to pursue some properties, especially if an agreement cannot be reached and a dispute has to be resolved through litigation. The federal flowthrough shares program – a major means for junior companies to raise money for drilling – needs to be tweaked so that companies can access this financing early in consultation and engagement

work, which is a precondition for drilling, according to Marchant.

“Everyone wants to have good relations between mining companies and First Nation and other stakeholders, because that is good for everybody,” Marchant said, noting that the speculative nature and limited economic benefits available at the exploration stage must be acknowledged during negotiations. “The big benefits come when you actually find a mine,” he added.

The province has held nine industry workshops and will reach out to 44 First Nation communities to explain the new rules and the basics of the mining sequence, while also training community members to assess and provide comment on plans and permits. CIM

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news

Debate over imported coal workers Chinese mine pushes Canadian labour market question

Chinese-controlled HD Mining attracted widespread ire in October for its decision to bring in 201 Chinese workers for its Murray River metallurgical coal deposit. Mainstream media alleged that the company discriminates against Canadians because of its listing of “Mandarin” as a requirement in job ads. The company plans to develop the Murray River deposit as a longwall project, a method of underground coal mining no longer practised in Canada. Production is expected to begin in 2015.

Jody Shimkus, vice-president of environmental and regulatory affairs at HD Mining, has publicly cited the lack of longwall mining experience in Canada as reason for the company’s need to look elsewhere for labourers. The CanaLongwall mining machines automatically move across the coal face. dian Temporary Foreign Workers Program permitted the hires by granting a positive Labour Market OpinBut Bobby Burchell, Canadian repreion to the company’s application. sentative of the United Mine Workers of But a statement provided by Shimkus America, diasagrees. “For them to say confirmed the temporary foreign workers there’s no [coal bulk sampling] expertise are being brought in to do 100,000 in Canada, that’s bullshit,” he said. tonnes of bulk sampling work, not longBurchell, who has experience with longwall mining. Longwall mining involves wall mines, added that only the greater an automated shearer traveling back and exposure to methane gases makes underforth across the coal face, with a hydraulic ground coal sampling differ from gold or roof support system that automatically diamond sampling. advances. The method’s last successful The federal government may back incarnation in Canada, the Prince mine in him up. Currently, it is reviewing the Cape Breton, closed in 2001 after a Temporary Foreign Workers Program. drawn-out decline. Bulk sampling, on the “We are not satisfied that sufficient efforts other hand, is a standard mining process were made to recruit or train Canadians in all mineral extraction sectors by which interested in jobs,” said Diane Finley, a company assesses the value of a deposit.

Minister of Human Resources and Skills In this case, bulk sampling is happening Development. “It is clear to our governsimultaneously with the creation of the ment that there are some problems with new mine’s tunnels and entryways. the Temporary Foreign Worker Program.

“This pre-operation stage involves We take these very seriously.” [surface] ground preparation, which is The idea of bringing in foreign expedone by local Canadian companies, and rienced labour has brought the imporunderground work which requires spetance of training to the fore of discussion. cial skills proven rare in BC and Canada,” “In my opinion there should be a lot the statement from HD Mining said. more training dollars put in by both the 32 | CIM Magazine | Vol. 7, No. 8

Helen Simonsson

By Zoë Macintosh

coal companies and the governments to train younger Canadians to work in the mines,” Burchell said, pointing out that longwall production at the Murray River project is still more than a year away.

Burchell represents the union for Grande Cache Coal, one of two underground coal mines still operating in Canada. The mine has also trained “a lot” of Canadian hard rock miners, he said, bringing them up to speed on the coal environment’s unique conditions and hazards once underground.

Training for longwall mining, though, will take investment of resources. “There are many people that believe you can train a longwall miner or a coal miner in 10 minutes, and it’s not going to happen,” said Ed Taje, senior inspector of underground coal mines in B.C., who has experience in longwall mining. “The reason they mine coal is that it burns. So you’re basically mining a fuel. As a result, you’re way more paranoid and cognisant of that. It’s a different culture.”

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Associate/Full Professor in Mining-related disciplines, Endowed Chair (Tenure Stream)

Several B.C. mine inspectors have already undergone a longwall knowledge exchange in China. An October 2011 tour of HD Mining and partners’ mines in China was the first time most had ever seen a longwall, Taje said. “It opened their eyes,� he explained. “I think they went, some of them, with the expectation that they were going to see the [negative] newspaper articles about China.

And they actually went to a modern operation with current standards [‌] not much different from here.�

The reason B.C. inspectors need additonal training is because all of Canada’s longwall experience lies on the East Coast in an aging population of miners now in their mid-50s. That workforce could still be available for mentoring and training, said Bob MacDonald, director general of site operations and remediation at Enterprise Cape Breton Corporation.

MacDonald said the question of importing coal labour is not likely to go away. “They are dealing with [importing labour] as a matter of fact in the Australian coal mining industry,� he said “They are struggling right now to find coal mining people. It’s really a battle around the world.� CIM

ACHIEVEMENTS Cameco makes dreams come true Cameco, in cooperation with the Saskatchewan Cancer Society and the Saskatchewan Roughriders football team, unveiled the names of individuals participating in the Cameco Touchdown for Dreams program. The dreams of five women who have been diagnosed with life-threatening cancer will become a reality within the next three years. The recipients are from Alida, Dundurn, Moose Jaw, Outlook and Regina.

The University of Toronto’s Department of Civil Engineering and Lassonde Institute of Mining invite applications for a tenure-stream position at the rank of Associate or Full Professor. The successful candidate will be appointed to a prestigious Endowed Chair and be expected to take a leadership role in the /DVVRQGH ,QVWLWXWH RI 0LQLQJ 7KH (QGRZHG &KDLU DSSRLQWPHQW LV IRU D ¿YH \HDU term with the possibility of renewal following a favourable review. The successful candidate will commence his/her duties on July 1, 2013 or as soon as possible thereafter.

The Department of Civil Engineering at the University of Toronto is committed to excellence in teaching and interdisciplinary research. Candidates must have exceptional undergraduate and graduate teaching in disciplines related to mineral/mining engineering and an international reputation for innovative research in any area related to the mineral/mining industries.

The Lassonde Institute of Mining promotes and facilitates cross-disciplinary research related to challenges facing the mineral and energy sectors. Lassonde Mineral Engineering crosses traditional university disciplines to provide a GLYHUVLÂżHG XQGHUJUDGXDWH HGXFDWLRQ LQ WKH DUHDV RI PLQLQJ JHRORJ\ DQG RWKHU relevant applied science and engineering. Graduates are highly sought by industry, consulting and research establishments.

Candidates should hold a doctoral degree, be eligible for registration as a Professional Engineer in Ontario, and must have demonstrated leadership, administrative capabilities, communication skills and a strong vision to develop the potential synergies that are available at the University of Toronto. Evidence of excellence in teaching and research is required. Salary will be commensurate ZLWK TXDOLÂżFDWLRQV DQG H[SHULHQFH $OO TXDOLÂżHG FDQGLGDWHV DUH LQYLWHG WR DSSO\ RQ OLQH DW KWWS ZZZ MREV XWRURQWR FD IDFXOW\ KWP WR 5HTXLVLWLRQ ,' $SSOLFDWLRQV VKRXOG LQFOXGH D FRYHU letter, curriculum vitae, teaching dossier (including a statement of teaching philosophy), and a statement outlining current and future research interests. If you have questions about this position, please contact chair.civil@utoronto.ca.

All application materials should be submitted online.

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SHU FDQGLGDWH SURÂżOH SOHDVH FRPELQH DWWDFKPHQWV LQWR RQH RU WZR ÂżOHV LQ 3') 06 :RUG IRUPDW 6XEPLVVLRQ JXLGHOLQHV FDQ EH IRXQG DW KWWS XRIW PH KRZ WR apply.

Applicants should also ask at least three referees to send letters directly to the department via e-mail to chair.civil@utoronto.ca by the closing date, February 28, 2013. Applications will be reviewed when they are received.

The University of Toronto is strongly committed to diversity within its community.

The University especially welcomes applications from visible minority group members, women, Aboriginal persons, persons with disabilities, members of VH[XDO PLQRULW\ JURXSV DQG RWKHUV ZKR PD\ FRQWULEXWH WR IXUWKHU GLYHUVLÂżFDWLRQ RI LGHDV $OO TXDOLÂżHG FDQGLGDWHV DUH HQFRXUDJHG WR DSSO\ KRZHYHU &DQDGLDQV and permanent residents will be given priority.

December 2012 / January 2013 | 33

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news

Details of Quebec-Cree agreement released Land use planning central to expanded role of First Nations in governance

By Antoine Dion-Ortega This past summer, the government of Quebec and the Cree Nation reached a major agreement on governance in Eeyou Istchee-James Bay, a region containing hundreds of targets for future mineral exploration. The new deal gives added land use planning power to the Cree. While previously approved permits will be maintained, the agreement could have a significant impact on how future development will be carried out in this 330,000-square-kilometre territory.

The area is divided into three categories of governance: Category I lands are exclusively reserved for Aboriginals’ use. On Category II lands, hunting, fishing and trapping rights are reserved for them, and on Category III lands, they have the reserved hunting and harvesting rights to only some animal species. The latter two categories are the ones affected by the new agreement.

Until now, the government of Quebec established objectives for development on Category II and III lands. The Cree had no say in the planning stages but were consulted afterward. “The existing governance regime excluded the Cree from participating in the governance of our own territory and, therefore, it posed a very serious obstacle to the democratic governance of the region,” said Tina Petawabano, director of Cree-Quebec relations at the Grand Council of the Crees.

“What changes is that the Cree will be more implicated in the creation of the development objectives of the territory,” said Nicolas Houde, professor of political science at the Université du Quebec à Montréal. “[Mining] projects will have to fit in the global view of the region’s development. They will be selected according to their relevancy.”

This means that if the Cree Nation plans to establish a newly protected area, the provincial government will take that into account when issuing exploration or environmental permits.

This could influence where and how an exploration company chooses to operate in order to respect the new planning.

The provincial government has the power to reject a land use plan, though, according to Houde, “it would be difficult to justify a refusal.” How those land use plans are developed depends on which category the land falls under.

On Category II lands, a new Cree Nation government will replace the former James Bay municipality. It will essentially have the powers of a regional county municipality (RCM) and will create its own land use plans. This government will cover 16.5 per cent of the James Bay territory. According to Houde, the Cree Nation government will make its plans after consulting local communities and then submit them to the provincial government.

“The Cree will be able to exercise local and supra-local municipal responsibilities, as well as the planning and management of certain resources,” said Petawabano. “At the outset, the Cree Nation government will assume expanded powers, under specific agreements with Quebec, regarding lands and 34 | CIM Magazine | Vol. 7, No. 8

forestry resources. In time, these powers may extend to other resource sectors, subject to agreement with Quebec.” Whether these expanded powers will concern mineral resources, and what they would consist of exactly, are issues that will be clarified through on-going separate negotiations with the Quebec government.

A similar change will occur on Category III lands. In this case, the new regional government will include representatives of the Cree, non-natives and, for the first five years, the government of Quebec. Before now, land use planning in Category III lands, which cover almost 82 per cent of the James Bay territory, was the sole responsibility of the province.

“In the future, exploration permits will have to take into account land and resource use plans developed by the Cree Nation government for Category II lands and by the regional government for Category III lands,” Petawabano pointed out.

“Claim holders will be invited to consult with the Cree Nation government and with the affected Cree community.”

Petawabano has made it clear that permits granted before the signature of the agreement “will be maintained.” She also insisted that as long as mining projects meet their global development objectives for the land, “the Cree are prepared to support and participate in resource development in [their] territory.”

A municipal land use plan has no legally binding effects on exploration permits, but a company whose project does not fit in could find it more difficult to go through the environmental assessment process, since social licence is a condition for approval. CIM ACHIEVEMENTS Fordia receives Quebec award for performance The Quebec Society for Quality (QSQ) awarded diamond tool, equipment and accessory manufacturer Fordia the Grand Prix québécois de la qualité for its management and overall performance. “I am extremely proud of the accomplishments of our employees since the company’s founding in 1977,” said Luc Paquet, president of Fordia. “Thanks to the combined efforts of all our departments, we have achieved new heights in terms of our performance. We are very honoured to be receiving this most prestigious award for the second time in our history.” The QSQ said teamwork and good business practices are what set Fordia apart, making it one of the best businesses in the province. Fordia has expanded its global presence with offices in Colombia and South Africa, and with distribution outlets in China and Mongolia.

026-035 News v7_Layout 1 2012-12-13 3:00 PM Page 35

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

columns

A bumpy road to a bright future

BY BRENDAN MARSHALL

his was an active year for the mining industry. China’s weaker demand for mined products and other global market forces sent price fluctuations through several mined commodities. The continued credit crunch adversely affected exploration prospects. Resource nationalism continued to rear its head as miners’ number one risk worldwide.

These events shaped the past year in mining and have affected forecasts for 2013. Although the industry’s outlook remains favourable over the long term, there is no shortage of challenges to face over the coming year.

China, an enormous consumer of minerals and metals and a driver of growth in the mining sector, made headlines in March by cutting its annual growth target from eight per cent – its goal in place since 2005 – to 7.5 per cent. In October, the IMF followed suit, also reducing its growth projections for China. To put these figures in perspective: 7.5 per cent growth is still robust, and China still accounts for upward of 40 per cent of global base metal demand, compared to five per cent in the 1980s. If the past is the best indication of the future, then China is unlikely to run out of gas overnight, and will continue to drive demand for minerals and metals.

Despite these moderately reduced growth projections, the prices of certain key products remained buoyant, albeit volatile at times. For example, iron ore prices slumped 42 per cent from April’s high to a three-year low of $87 per tonne, only to rebound to $110 per tonne in September, as Chinese investors anticipated domestic stimulus measures to increase demand for steel. Potash, though buoyant, has also descended from price peaks in recent years. Meanwhile, some speculate gold will reach $2,000 per ounce in the short term while copper remains strong – both supporting multi-metallic operations across Canada.

Even with historically buoyant prices, factors beyond supply and demand played larger roles for some mined products in certain jurisdictions. The price of nickel, for example, has tripled over the last decade to $17.7 per tonne. However, when production input cost increases are factored in – such as oil and coal’s respective 349 and 296 per cent increases – the facts change. In Canada, when changes in labour costs (up 26 per cent), consumer price index (up 25 per cent) and dollar value (up 56 per cent) over the decade are factored in, the reality becomes clearer: high prices do not necessarily equal high profits.

In Canada, the significantly reduced availability of capital is a challenge for prospectors. Although it is also true for some majors, today’s environment has been particularly demanding for junior companies. The current risk-averse sentiment

T

among investors, linked to uncertainty about global economic strength, is likely to endure until U.S. and European economic fluctuations stabilize. This prospect is difficult for many Canadian companies and may carry on for some time yet. Ambiguity over the length of global economic uncertainty, the adverse impact this uncertainty has on the ability to raise funds, and the crucial exploration role that junior companies play present significant challenges to the industry, especially considering the marked decline in Proven and Probable Canadian base metal Reserves.

Finally, according to Ernst & Young, resource nationalism remained the number one risk to miners. Perhaps the most glaring example is Australia’s July 1 Senate approval of a 30 per cent tax on iron ore and coal mining profits – proof that no

“China is unlikely

to run out of gas overnight, and will continue to drive demand for minerals and metals.”

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

jurisdiction is immune to this phenomenon. Similar examples are spurring mining companies to exercise heightened precaution when investing in future projects. But Canada’s aggressive trade expansion has helped increase both flexibility and investment security in resource-rich countries. Examples from 2012 include bilateral agreements with China, Tanzania, other strategic partners and the Trans-Pacific Partnership, whose importance and scope are poised to surpass NAFTA. Despite concerns, particularly over Chinese growth rates, the Canadian mining sector’s future is bright. Proactive measures – such as preserving Canada’s attractive and stable domestic regulatory and investment environment, while enhancing international growth opportunities through bi- and multilateral trade expansion – provide Canadian industry a degree of certainty and flexibility in a volatile time. Growth, even if at a moderately reduced pace, is likely to remain strong over the long term. As a country rich in mineral resources and mining talent, Canada has the opportunity to capitalize on a growing mining sector, even if there are some bumps along the way. CIM

Brendan Marshall is director of economic affairs at MAC. He works to advance the mining industry’s interests and understanding of key economic issues such as taxation, international trade and investment, transportation, energy and climate change, and innovation.

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FINANCE

Greenfield projects in the new financing world

BY MAURO CHIESA

s mining projects get larger and riskier, capital markets become more conservative. Markets are thus very fragmented, leaving mining companies, large and small, to consider piece-meal funding and bundling options from numerous sources. Here are some sources of funding to consider:

A

Project-completion financing equity: Equity markets are bearish, especially for a mining company with opaque results or capital spending in excess of its means. Still, companies can obtain project-completion financing, provided that financial and technical disclosure in their data room is clear and complete.

Osisko, Detour Lake and Rubicon are good examples of this.

Bank financing: Due to economic unrest in Europe, coupled with fluctuating commodity prices and increased risk, banks – which have historically been the main source of long-term lending – can no longer afford to make large, long-term commitments. While some banks can offer revolving credit facilities – which provide the liquidity essential for a company’s working capital needs and interim construction – these are only available if the company has existing solvent operations to offer as collateral, if there is an assurance of a payout from either medium-term debt issues or asset sales, or if the company has a strategic equity partner. A non-producing junior does not have this option available.

Stream financing: Greenfield projects can receive cash up front in exchange for metal deliveries at discounted prices over the production life of the project. The upsides of stream financing include fewer restrictive conditions to qualify for the loan and a lender that shares the production risk. However, a junior with a greenfield project must approach this option with caution in order to avoid being locked into a single source of partial financing. Juniors should make stream financing arrangements in tandem with other financing agreements to ensure sufficient funding can be secured.

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

Existing assets: Many companies are now matching capital expenditure plans to operating cash capacities or selling exist-

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columns ing assets to finance new assets. Examples of the latter include Taseko’s sale of equity in Gibraltar to finance New Prosperity as well as Sabina’s sale of Hackett River zinc/silver assets for cash to support the Back River development. Large mining companies, including BHP, RTZ, Iamgold and Kinross, are also putting assets up for sale. Another strategy recently adopted by majors is to offer stream financiers a delivery assurance on the metal liability in the form of production from existing mines. Metal financings by Barrick and Teck in 2008, and then by HudBay and Inmet in 2012, suggest a new trend is developing, whereby metal financing is no longer just for the juniors. Yet another strategy, adopted by both Barrick in Africa and SouthGobi in Asia, is issuing shares in emerging stock markets. As such markets have a better understanding of projects in their region, they offer higher proceeds and lower risk.

Strategic partner capital: A strategic partner can bring technical, financial and commercial values to the table. For instance, Quadra FNX and Sumitomo’s recent joint venture, which reflects current industrial interest in securing exclusive supply, provides Quadra FNX with a secure source of financing. But much planning is required by the lesser partner. The failure rate for joint ventures is high, as fluctuating market conditions can often create divergent interests for partners.

Export credit agencies (ECA) and international financing institutions (IFI): Countries, including Canada, support their goods and

services exports with financing via their respective ECAs, such as Export Development Canada (EDC). These organizations offer fixed-rate, long-term financing that is both very competitive and often available for projects in countries where private financiers fear to tread. Canada’s EDC is an exception; it has been approved to also finance projects situated in Canada.

IFIs, such as the International Finance Corporation of the World Bank Group, focus on benefits to the recipient country’s development, offering competitive financing to projects that can demonstrate a positive economic impact. While both groups require competitive procurement on the goods and services – meaning that receiving the funding will take more time – they offer terms with sizeable soft benefits, including deterrents to political interference and re-financing flexibility should circumstances require. For instance Eximbank, the U.S.’s ECA, financed Baja Mining’s Boleo project with a 3.02-per-cent fixed interest rate and a 14-year total term, which compare favourably with current market rates and restructuring flexibility.

Supplier financing: Given the recession, many manufacturers and in-house financiers can offer supplier financing on their supplied goods and services. They can also co-finance with banks, ECAs or IFIs to provide a more complete financing package. CIM Mauro Chiesa has over 33 years of experience in financing and advising extractive and infrastructure projects around the world. He has worked with multinational banks, the World Bank Group and EDC.

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HR OUTLOOK

Is technological innovation the solution to the skills crunch?

BY RYAN MONTPELLIER

n 2012, Canadian mining companies continued to struggle to recruit and retain the right people to operate their mines.

The skills shortage facing companies today is real and is having a significant impact on majors, juniors, contractors and suppliers. For the past two years, it has held the second spot on the risk agenda in Ernst & Young’s annual report, Business risks facing mining and metals. Despite these challenges, the last 12 months were relatively easy for most recruiters. Commodity prices stagnated and in some cases receded significantly, so employment growth in the sector was tepid. Thus, the majority of recruitment efforts in 2012 were focused on replacement, not on expansionary demand.

Historically, commodity price increases translated to development of new projects, and to ramped-up production at existing operations. According to the Mining Association of Canada (MAC), there are currently over $140 billion of new or expansion projects in the environmental assessment and permitting phase. As the market improves, a number of these

I

projects will get the green light, significantly driving up staffing demand.

This will undoubtedly lead to increased labour costs, as the race to secure talent continues. The skills shortage warning has started to lose its effect, as companies have been hearing the same message for years. But the fact remains that we need to act now before we find ourselves facing an uptick in the market and no workers to sustain it. In fact, 2012 has already seen several large potential mining projects delayed or outright cancelled due to rising costs. But what can industry players do?

Labour shortages are not easily solved. From a purely economic point of view, whenever a resource becomes scarce, the cost of that resource increases and ultimately, through capital substitution, is replaced with another input. Academic papers on this topic, published by MIT and other institutions, show that the scarcity of an input factor encourages investment in innovation and the adoption of technol-

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

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columns ogy. Consequently, the labour scarcity we are currently facing in mining will likely lead to significant technological advances and/or step-change innovation.

For 2013 and beyond, I fully expect to see this phenomenon take place. Already, at several mines in Australia, where the scarcity of labour is more acute than in Canada, we are seeing GPS-guided, driverless haul trucks. For example, the Komatsu Autonomous Haulage System is being deployed at Rio Tinto’s West Angelas mine. In Canada and around the

Four ways to find and keep top employees Consultations with over 30 mining HR leaders help MiHR identify initiatives to attract and retain staff 1. Diversify your workforce: develop key attraction, recruitment and retention strategies for women, Aboriginals, and Canadian immigrants.

2. Identify the highly qualified or high-potential employees and fast track or mentor their development.

3. Recognize the knowledge, skills and abilities of your workforce through formal credentialing programs like the Canadian Mining Certification program.

4. Introduce flexible work arrangements and customizable schedules to suit the needs of your employees. A one-size-fits-all philosophy does not work.

world, we have several examples of remote mining – mines that operate certain types of equipment from a distance, and even, in some cases, from the surface.

In my opinion, the industry will see increasingly larger investments in technology and innovation. According to Statistics Canada, the minerals and metals industry is already spending over $500 million per year in research and development (R&D), and seven of the top 100 R&D companies in Canada are mining companies. The investments are taking place and impacts on the workforce are inevitable. We will continue to be more efficient, more productive and less reliant on labour as the main production input. The industry will still obviously need people, but the skill sets required will be very different.

Although technology will play a big part in the long-term solution, companies are still faced with pressing HR needs in the short-to-medium term. There is clearly no silver bullet, but some companies are faring better than others. CIM

Ryan Montpellier is the executive director of the Mining Industry Human Resources Council (MiHR) in Canada. Most recently, Ryan was awarded the 2011 Canadian Institute of Mining Bedford Young Leadership Award, which recognized his achievements in addressing the industry’s human resources and labour market challenges.

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C O M M U N I C AT I O N S

columns

Staff engagement key to process improvement

BY BERTRAND DE WINDT

veryone wants to cut costs, but merely establishing policies and processes to trim the fat won’t work. Initiatives to improve an operation’s productivity and efficiency and to eliminate waste will only succeed when an operation’s staff buys in and supports them.

In 2010, as regional director of business excellence for a large mining firm, I learned this lesson well. I led a team of continuous improvement (CI) specialists on several projects at an open pit gold mine in the Andean Highlands of Peru.

There, I discovered first-hand that change cannot happen if the staff on the ground are not behind it.

One project I worked on was a standard waste reduction initiative. One hundred expensive and fuel-inefficient four-by-four trucks were being used to transport mine staff 80 kilometres to and from the mine. My team identified that using buses to transport staff would save US$675,000 per year and would reduce the safety risks associated with so many vehicles circulating on a dangerous mountain road surrounded by communities. We met with members of the mine’s maintenance group and with operations managers to implement policies and procedures for the proper use of vehicles. But despite agreeing upon a clearly defined process and policy, nothing changed.

What was missed? When designing the processes and policies, we did not engage the staff at the mine who would be using the new form of transportation. We did not realize that the trucks had become status symbols. Additionally, staff were unwilling to comply with the change because we had neither involved them in the decision-making process nor communicated the project’s benefits, such as keeping them off dangerous roads. The CI group was perceived as a bunch of intruders that had come to divest people of their right to proper transportation, and the project was abandoned.

Another project I led fared much better, despite initial hiccups. The CI group’s task was to improve trucks’ cycle time during the first 300 metres of the haul. We started with a field visit to evaluate the situation. There was a long line of trucks waiting to be loaded, because already loaded trucks were taking too long to leave the area. It was raining, and because the maintenance of the front of the pit was not sufficient for the weather conditions, trucks were getting stuck in the mud. We discovered that the operations team was not using the right types of materials to waterproof the mine and did not have access to equipment to improve this process.

E

We took a photograph to document the issue and sent it to the corporate office as part of a project update. The dissemination of the photo resulted in an uproar at the mine: the operations manager and his team were furious, as they felt the photo could damage their reputation with top management.

The CI group realized the situation demanded proper internal stakeholder management; we had to communicate with the operations team and explain that we were on their side and wanted to support their quest to obtain the necessary resources to improve the truck cycle times.

To rectify the situation and make the project a success, we met with operations management, apologized and presented a

“Change cannot happen

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

if the staff on the groundd are not behind it.” plan to manage CI projects collaboratively. First, we identified the decision-makers on the operations side. Then, instead of positioning the CI group as project managers, we asked the decision-makers on the operations side to lead the project, while members of the CI group acted as facilitators. We made sure operations staff received proper CI training – in this case Six Sigma, a leadership program focused on process improvement and waste management. We also scheduled regular project review meetings with the corporate office, making sure presentations were made by the operations team, not by the CI group. All field visits and inspections were led and executed by operations, and there was recognition for staff achievements via newsletter notifications, project completion celebrations and board director visits to the mine. We also built a process to both identify and develop future CI projects with ample input from the operations team.

After the first year, the operations team had implemented CI projects worth over US$4 million in savings and had started an internal training program to certify their key leaders through the Six Sigma program. Through this painstakingly achieved success, I learned that rolling out an effective CI program is all about empowering the people working in the dayto-day operation to lead their own process improvements. CIM Bertrand de Windt is an international HR and business excellence consultant with over 20 years of experience in the mining industry. He specializes in change management and cultural transformation through leadership engagement groups and organizational behavioural design. Bertrand has been instrumental in organizing the opening of the CIM Lima Branch.

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upfront SAFETY by Herb Mathisen

The might of the round table Courtesy of Caterpillar

EMESRT provides one voice to accelerate safer equipment designs

EMESRT MEMBER COMPANIES: AngloAmerican Barrick BHP Billiton Centennial Coal Cliffs Collahuasi Newcrest Mining Limited Newmont Peabody Energy Rio Tinto Sasol Suncor Energy Syncrude Vale Xstrata

It would seem OEMs got the message: Egan points out that “local assembly times and costs have been reduced significantly” – as much as 80 per cent – by the efforts of EMESRT.

ISO standards not up to snuff

Equipment accidents make up a large percentage of workplace fatalities. According to an Australian study published in the Journal of Safety Research, 36.7 per cent of workplace fatalities between 2000 and 2002 “defi“BIG SEVEN” OEMS: Atlas Copco nitely or probably had designCaterpillar related issues involved” with Hitachi machinery and equipment. In Joy Global mining, over 57 per cent of all Komatsu Liebherr fatalities were design-related, the Sandvik study showed.

Jim Joy, risk management Caterpillar added powered access systems to its large mining trucks, large wheel loaders and large tractors in recent years services manager with JKTech due, in part, to its engagement in EMESRT. Pty Ltd. and EMESRT facilitator, says OEMs historically designed ntil recently, modifying earth-moving equipment was equipment to meet ISO safety codes. But while these stanaccepted as a cost of doing business for miners, says dards address baseline safety requirements, Joy believes that Tony Egan, Xstrata Coal’s business development and they do not identify the unique risks or the human factors special projects manager. that arise.

“In Australia, we got pretty good at actually modifying “What we are trying to do at EMESRT is say ‘you need to go equipment locally with the dealers,” he says, although this beyond standards,’” notes Joy. process often delayed the delivery of their multi-million-dollar EMESRT established eight different hazard categories – equipment by up to eight weeks and increased costs. Egan ranging from working at heights to dealing with rims and tires wondered why the safety features he was waiting for were not – called design philosophies. The round table developed a available on all factory-made equipment to begin with, and he task-based risk assessment technique in each of the design was not alone. philosophies. Each task associated with operating or maintainCompanies like his had been asking equipment designing ing a piece of equipment – and each risk posed to a worker – departments for safety features that went beyond ISO stan- is now evaluated. By determining how often a task is perdards, but with splintered voices from industry, original equip- formed and the severity of the task’s unwanted consequences, ment manufacturers (OEMs) could not justify the cost of EMESRT quantifies risks and identifies areas that pose signifimaking changes. cant danger to workers. Armed with this information, OEMs This drove Egan to come up with a novel strategy. If many can work on solutions to eliminate or to reduce key high-risk companies, backed by their combined purchasing power, could areas when designing equipment. come together to speak with one voice to manufacturers’ marFor example, Egan says, Caterpillar recently redesigned keting departments – the holders of the research and develop- equipment so that routine maintenance tasks like oil filter ment purse strings – then OEMs would be compelled to listen. changes are conducted from ground level, instead of having That was the beginning of the Earth Moving Equipment the work done at heights. “If you’re not up in the air, you can’t Safety Round Table (EMESRT), which has grown over the last fall, can you?” he points out. six years into a global conglomerate of 15 of the world’s largest Before EMESRT, Egan recalls, manufacturers only got feedmining companies. back from customers when they experienced problems. “The

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design weakness would never be discovered until somebody was eventually injured in a major accident.�

But if designers receive proactive, consistent feedback from experienced equipment users, they can make changes early on in the design phase.

Addressing universal needs Some OEMs used to experience “paralysis by analysis,� says David Edwards, safety solutions manager with Caterpillar’s global mining division, because they were trying to respond individually to an infinite number of often contradicting suggestions. “When you have that much discrepancy in customer wants and opinions, it’s hard for a manufacturer to design to satisfy what everyone wants,� he says.

However, when EMESRT provided its design philosophies highlighting specific areas of concern, it gave much-needed consistency to the voice of major mining customers. “They do not specifically tell us what to design, nor do they tell us how to design it,� says Edwards. “All they want to do is give us the information and then trust that we’ll go back and we’ll make good design decisions. Having the input of a consistent voice from our customers really unleashed a lot of creativity and a lot of product feature development in the last six years.�

For instance, working at heights and vehicle access risks were some of the first to be identified by EMESRT. Edwards notes the company added powered access systems to its large mining trucks, large wheel loaders and large tractors, and wider stairs to all its products in recent years, in part due to engagement with the round table. “EMESRT’s input gave us the confidence that we were providing the right solution, rather than worrying about whether we were responding to company A, B, C or D’s opinion,�

Edwards recalls. And while he notes improvements to eliminate slip and fall injuries were planned before the round table was established, he says EMESRT’s involvement helped Caterpillar roll out these changes faster. “When you have a design philosophy that is essentially signed off on by 15 companies – the biggest customers in the world – saying ‘we want this,’ it makes it easier for us to prioritize our engineers’ time,� Edwards explains.

EMESRT evolves The round table is moving onto the next stage of its plan.

Companies will soon be asking OEMs for a “safe design information� document before purchasing equipment, incorporating EMESRT into member companies’ formal procurement processes. Joy says this document will be similar in nature to a mine’s risk register, which details controls put in place for certain high-risk activities. This sheet will demonstrate whether an OEM has included EMESRT’s work into the equipment design process by explaining how they addressed high-risk tasks.

With this checklist from OEMs, companies will ultimately decide on the safest equipment with their cheque books, Egan says. He believes manufacturers will try to “leap-frog� each other in addressing the problems highlighted by the round table members.

A draft of this new process was unveiled in February 2012, when EMESRT company representatives visited the plants of the “big seven� OEMs on three continents. Equipment manufacturers were asked for feedback – something Edwards appreciates: “I think it shows a level of respect.�

Joy believes that moving forward with the process will be EMESRT’s biggest challenge in the new year. Manufacturers will buy in if purchasers want them to, he reckons, but getting member companies to incorporate EMESRT’s procedures into their own internal procurement processes might be more difficult.“When you go to a global company with a lot of commodities and to business units around the world with various cultures, it’s a different story,� he says, explaining how some companies use multi-year contracts with suppliers, while others “have mines buying whatever they want to buy.�

Joy says EMESRT is expanding its regional exposure and wants to introduce more people to the organization. A workshop that will be held during the 23rd World Mining Congress in Montreal next August is currently in the works.

But, Joy says, once EMESRT’s processes become entrenched in OEM design procedures, the group will become obsolete. He says this could even occur as soon as five years from now. “A huge amount of progress has been made, but it’s a long journey.� CIM

Expert. Quality. Advice.

Mining Engineering

Geotechnical Engineering Underground and Open Pit Feasibility Studies NI 43-101 Reports

Due Diligence

The busi www.amcconsultants.com December 2012 / January 2013 | 45

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upfront MAINTENANCE by Alexandra Lopez-Pacheco

From reactive to proactive Courtesy of The Mosaic Company

Intelligent approach to inspections finds its niche in mining mining industry, the most common failures typically don’t get that attention because the failures aren’t catastrophic – if a pipe is leaking, it’s likely only leaking water.”

What has been overlooked in mining, says Minter, is that common failures can trigger a ricochet effect, with one small failure affecting other assets and leading to more serious failures, which can result in lost production time if a shutdown for repairs is needed. In some cases, a catastrophic failure can result in injury of personnel in the area.

Every risk measured Mosaic’s mechanical integrity inspections go far beyond regulatory compliance.

echanical integrity risk-based inspection has been central to maintenance in the oil and gas industry for years, “but it’s almost unheard of for the mining industry,” says William Minter, client solutions engineer for Pinnacle AIS. Pinnacle, a Houston, Texas-based firm, is hoping to change that; it specializes in asset integrity management, engineering consulting services and asset management software. The Mosaic Company was one of the first mining companies to seek out Pinnacle’s expertise.

Mosaic’s new risk-based inspection program, unlike those rooted in regulatory compliance, is based on assessing risk for every stationary and structural asset in the mine. “Today, inspections are not required for all assets, only regulated ones, so you find facilities that may have never inspected many assets – sometimes more than half of their assets in the field,” Minter says. On the other hand, “risk-based inspections are performed for all assets at a facility, so all are included,” he adds.

According to Minter, mining companies have lagged in adopting risk-based mechanical integrity programs for a number of reasons. Traditionally, mines have been built with a life expectancy of 30 or 40 years, which is relatively short. But with today’s advances in processes and technologies, and a growing economy, mine life cycles are being extended indefinitely. In addition, the consequence of a common failure in the mining industry is very different from one in the oil and gas industry. Even one small malfunction can mean immediate, major problems in the energy sector. “Leak-type failures in a refinery can easily lead to a fire or even an explosion,” Minter explains. “Catastrophic failures can cost lives and get the attention of both regulating bodies and the media. In the

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Failures of major assets in potash and phosphates led Mosaic’s management to look at a new system for safety inspections.

However, they were not the only forces driving the change, says Lorne Huyghebaert, former manager of mechanical integrity at the Mosaic Potash business unit. “Over the long term, it makes you a more costefficient company,” he says. “As well as being safer, when you inspect your assets in the right places at the right frequency, you have less surprises to react to.”

With help from Pinnacle, Mosaic is in the process of computing a number value for every potential risk that exists: nothing is left in the margin. “There are a lot of failures that can happen before the catastrophic ones,” says Minter. “So we want to look at the most common and likely failures, like a beam buckling, which is an early indication that the roof might collapse eventually.”

The risk-based mechanical integrity system looks at both the consequence and probability of failure. “The consequence of an asset failure is specific for each individual asset,” says Minter. “We consider consequence to health and safety, environment, public image and economic loss.” The probability of failure is based on a degradation study that identifies what will cause an asset to fail, and the likelihood of failure, he notes.

“We not only know when to inspect an asset, we also know how and where to inspect that asset. The degradation study also tells us who should inspect that asset; for advanced inspections, we need to use a specific type of inspection personnel.” Highest-risk assets get inspected first.

According to regulations, an ammonia storage tank would require a simple five-year external visual inspection and a 10year internal inspection. “Aside from these regulated inspections, a company may have no idea how to inspect, when they should inspect, where to focus inspections, and who should be hired to perform the inspections,” says Minter. Now, at Mosaic,

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each individual ammonia tank will have inspection schedules that fluctuate over time, adapting to changes in the field.

“Stress corrosion cracking is difficult to identify in routine internal visual inspections, meaning that if an internal visual was performed in the past, it may have easily overlooked this type of damage,” says Minter. “For all intents and purposes, we

existing assets, installing new assets, and re-designing existing ones to current or new standards.

Once it has fully established the program, Mosaic hopes to be able to convince government regulators that risk-based inspections are far more effective and proactive. “We’ll have all the data to back it up,” points out Huyghebaert. It is an ironic twist, given that until now, inspections programs have been primarily about complying with government regulations. When mechanical integrity programs took root in the oil and gas industry, it was because of comprehensive inspection regulations and not internal initiative.

Huyghebaert says it is hard to understand why mining companies failed to realize the superiority of the risk-based mechanical integrity system before now. “What does the number of times the earth revolves have to do with the degradation of an asset?” he asks. “You have to know what your degradation rate is to have an effective system. Risk-based mechanical integrity inspection is just one of those things that makes so much sense. Once you know about it, you wonder why we haven’t always done it this way.” CIM

“Once you know about it, you wonder why we haven’t always done it this way.”

might assume that a company has never inspected for stress corrosion cracking, further increasing the asset’s risk.”

Mosaic’s first step at the K1 and K2 potash mines in Esterhazy – its pilot sites for the project – has been to assemble an inventory of all structural and stationary assets: a database totalling 1,417 entries for both mines, which required around 18 months and 1,000 Mosaic man-hours to complete, in addition to the Pinnacle resources. But with lessons learned, subsequent sites brought on board will take less time, says Huyghebaert. It may appear prohibitively time-consuming to create an authoritative database of every asset’s risk level, but the process becomes easier to maintain once in place and starts relatively casually.

“We start by gathering all the documentation we can,” says Minter. If there is missing information, Pinnacle makes an estimate, which is run by Mosaic staff. “In the future, if somebody does an analysis of the material to identify its composition, they can come back to the software and validate that assumption. Once that’s changed in the software, it will update the risk calculation and inspection plan for that asset.” In other words, a system based on mechanical integrity risk improves in accuracy the longer it is in place.

Over and above regulatory requirements Over the next five years, with the help of Pinnacle, Mosaic will be rolling out the mechanical integrity-based program to all of its five potash and nine phosphate mines and facilities.

The mining company has created a new position – director of mechanical integrity, filled by Kelvin Dereski – to head the program. The team he oversees, along with inspection contractors, will complete the inspections of all structural and stationary assets at each site over the course of two to three years.

Mosaic’s team will be ready to take over the program on its own, starting with the Esterhazy Potash and New Wales Phosphates sites, in March 2013.

The process has already resulted in a few eye-openers for Mosaic. “We were surprised when the risks assessed for some of the potash assets were higher than for phosphate, which has a lot more chemicals and hazardous material,” recalls Huyghebaert. “If you recognize the risk, you inspect more frequently.”

Mosaic’s program will take some time to evolve fully and will include the development of design standards for repairing December 2012 / January 2013 | 47

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upfront NEW FRONTIERS by Zoë Macintosh

High-tech ore bodies Courtesy of CellCycle.ca

Shift to mining electronics more mental than material electronic products in bulk to both regional and foreign smelters.

Before starting his own business, Hebert was an e-waste stream analyzer at a now-defunct electronics recycling company. In 2009, a fire assay of phones led him to re-evaluate his employer’s approach to e-cycling.

The test showed that ash from burning cellphones contained 235 grams of gold per tonne. “An entire computer had about 11 grams of gold per tonne,” Hebert says. Suddenly, the company’s practice of grinding up bulky, lower grade products like TVs and computers for re-sale to a smelter seemed wasteful.

Yet when Hebert suggested targeting the cellphone stream, he encountered a flat “No.” The e-waste recycler was not interested in focusing its volume reduction service on products that required a heat treatment – the most effective way to separate the highly comingled metal and plastic in cellphones, Hebert says. Emissions were too great of a concern. The company went under that same year due to low profits.

Hebert believes that for e-recyclers to be truly successful, they need to change business models. “My thinking is that e-recycling is more like mining than recycling,” he says.

The mining mindset: active collection of e-waste

Cellphones have a much higher per-weight value than mined ore bodies.

ellphones contain a vast array of minerals – gold, silver, platinum, copper – and over 50 other specialty metals. As an ore body, trashed cellphones represent a much higher per-weight value than raw materials from a mine: a fact that has spawned a value chain that parallels conventional mining. However, there is a lot of progress to be made in the field, and the greatest barriers to increased production come from psychology, not from technology.

“It took me a while to see the value of buying and selling old cellphones because I thought I was in the recycling business,” says Patrick Hebert Jr., director of electronic scrap collector CellCycle.ca. “But, really, it’s a form of mining – urban mining. We’ve got these products that have high value and are no longer being used. And we just have to be more creative about sourcing.” The Canadian company provides discarded

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While researching a safe way to dispose of seven million bags of by-product that remained when the recycling company shuttered, Hebert visited facilities that extract value from the waste products of the mining industry. Speaking with people who sell bricks made from industrial mining sludge, he discovered there are many accustomed to hunting for worth in waste. Hebert was inspired to take a cue from the mining industry and target, rather than passively collect, material streams.

His company has a two-pronged approach to its management of the cellphones: CellCycle.ca buys phones from individuals and corporations, wipes the data and sells the phones through eBay, its retail store, or international distributors.

Phones that cannot be resold due to damage or entrenched data bring in profit for the company through sales to EDI Refining, an Orillia, Ontario-based distributor that shreds, bulks and ships the cellphones to final destinations like the Xstrata-Horne smelter in Rouyn-Noranda, Quebec, and the Boliden Rönnskär smelter in Skelleftehamn, Sweden.

“One way to look at it is rather than one location or deposit that has a lot of value, we have 26 million [Canadian cellphone subscribers] who have things of value,” says Hebert. “But, more specifically, there are companies within

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that 26 million people, the large organizations that have several hundred or thousand employees, who also distribute phones to their people. And those are our sources, those are our mines.”

Many consumers hesitate to part with their phones because of privacy concerns, Hebert says. Convincing them the exchange is safe and making the process easy is half the battle. CellCycle.ca facilitates this choice by guaranteeing that all phones that cannot be wiped clean are destroyed.

The offer is especially appreciated by IT departments of corporations, which can now enjoy the disposal of hundreds of units without compromising company secrets.

According to Hebert, in Canada, cellphones are being discarded at a rate of up to six tonnes per day, or three phones per second. His conservative estimate for the value of that material is $15,000 per tonne.

In the U.S., there is an even larger market, and a greater business opportunity, provided the e-waste is not illegally shipped overseas for cheaper processing. “There are no U.S. smelters which can reclaim the precious metals in the circuit boards, although there are refineries that can pre-process them,” says Sarah Westervelt, e-Stewardship policy director of the Seattle-based non-profit group Basel Action Network, which runs initiatives to monitor global trade of toxic waste.

“But when companies export e-waste for further processing, they need to ensure they are not violating a UN Treaty called the Basel Convention, which restricts international trade in hazardous waste.” Westervelt says the illegal shipment of e-waste to China and India makes it hard for legitimate ewaste recyclers to do good business in North America.

framework could help realize the potential of urban mining. In 2005, the European Parliament installed the Waste Electrical and Electronic Equipment (WEEE) directive, which set a 2016 target of 13 kilograms per person per year for the collection of listed products and prohibited their disposal in landfills. Currently, Sweden recaptures 16 kilograms per person and 75 per cent of all electronics it puts into the market, though the average EU member state’s rate is 25 per cent, says Roger Sundqvist, general manager of Boliden’s Rönnskär smelter.

Regional government employees run free drop-off centres in each Swedish city, he adds, and pre-treatment companies pay for freight to their facilities.

“The WEEE directive is working well in Scandinavia and in northern Europe,” says Ann Lundholm, communications manager for the Boliden Rönnskär smelter. “Other countries in Europe still have a long way to go before recycling stations are organized and supply chains to pre-treaters are set up. When this is fully implemented, we will see much higher volumes of e-scrap on the market. This opens up possibilities for smelters.”

Hebert thinks an approach to e-waste that more closely follows how other commodities are treated is necessary. “When the metal exchanges list different grades of circuit boards, I think then we will be taking it more seriously,” he says. “There should be a financial attachment to what this material is worth.

If you could trade frozen pork belly futures on the Chicago Mercantile Exchange, then you should certainly be able to trade circuit boards.” CIM

Incentive needed to encourage trade Despite the relatively few smelters that process e-waste in North America, experts agree that the greatest barriers to increased electronic recycling come from collection, not processing.

Even with the most advanced technology, notes Thomas Graedel, professor of industrial ecology at Yale, “If you only collect half the stuff in a way that you can recycle it, you’re never going to do better than 50 per cent.”

Concerns about sensitive data on old devices dissuade people and companies from giving up their used cellphones.

“There is a huge amount of value on the phone, and also there’s the fear that a new device will fail and the user will have to go back to the old one,” says Hebert. “It’s a psychological barrier.”

Just as miners looking to develop faraway ore bodies must rely on the construction of infrastructure, a legislative December 2012 / January 2013 | 49

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upfront Q&A by Antoine Dion-Or tega

How to say “upside potential” in Mandarin Courtesy of the China Institute at the University of Alberta

Gordon Houlden on undeveloped opportunity in the Middle Kingdom

ew Canadians have scrutinized their country’s relationship with China as closely as Gordon Houlden, director of the China Institute at the University of Alberta. Since he first joined the Canadian Foreign Service in 1976, Houlden has kept a toehold in the land of the dragon. He has witnessed, often from the inside, the drastic political and economic mutations the country has undergone over the last 35 years.

Houlden has been posted twice to Hong Kong and twice to Beijing, where he served as minister at the Canadian Embassy from 2001 to 2004. He then moved to Taipei, where he was appointed executive director of the Canadian Trade Office from 2004 to 2006. Before joining the China Institute in 2008, he was the director general for East Asia in the Department of Foreign Affairs and International Trade.

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CIM: Are China’s state-owned enterprise (SOE) acquisitions, such as CNOOC buying Nexen, going to significantly affect the mining sector?

Houlden: There have already been Chinese investments in the mining sectors in B.C., in the Yukon and in the high Arctic; but we are at an early stage. We are seeing a lot of SOEs “going abroad,” to use their phrase, but there is a bigger wave of investments that will break on our shores eventually, and that is private investments.

If you look at the percentage of the GDP that is generated by the government, in the case of Canada it is 40 per cent, almost 50 | CIM Magazine | Vol. 7, No. 8

identical to the U.S. In France it is 52 per cent. But in China, it is just over 20 per cent. The government strategy for 30 years has been to reform the SOEs and to allow a private market to grow – and grow it has. Of course certain sectors, particularly the mining and the energy sectors, are still dominated by quasimonopolies or monopolies highly concentrated in SOEs ownership. But we may feel a loosening of some of these over time.

CIM: So what will it take to develop those prospects?

Houlden: If Canada has a general policy of openness in terms of investment – and I don’t mean not having any oversight – that to me sustains the mining industry. I am not suggesting China has to own everything in sight either. But if you are sitting there with a mine, that mine is worth more because China is buying its product. If you are in the developmental phase or in the exploration phase, your ore body is worth more because of China’s demand, or potential Chinese investments.

A lot of the smaller mining companies lack the capital to begin to fully develop their properties. The fact that you’ve got a deep pocket in China as a bidder will mean that your property is worth more. Take China out of the equation, somehow isolate the economy the way it was 30 years ago, and properties will be worth less. So there is a benefit there; a policy which has Canada open to Chinese investments helps sustain the value of those ore bodies and the stock values of the Canadian mining companies.

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CIM: Should we fear the SOEs as they acquire assets in strategic Canadian sectors such as energy?

Houlden: In my view, many of the strategic risks are exaggerated, both in oil extraction and mineral extraction. Our big oil sands projects take two or three decades to fully exploit. Canada is a sovereign country; we could turn off the tap any time we wanted without a challenge. And oil doesn’t even go to China, it’s sent down to the U.S. I’m not saying that security shouldn’t be part of the calculation. My concern would be that if you are trying to build a major relationship with China in one dimension alone, just from a security perspective, or just from an investment perspective, you are going to end up with a distorted position, a policy that doesn’t work well and that will probably lead you astray.

Even the U.S. doesn’t look at China in those terms.

CIM: Just how important is China’s increasing demand for the mining sector? Would many miners be able to survive if the Chinese economy was less hungry?

Houlden: You don’t have to sell a single pound of a commodity to China. It doesn’t really matter if you are selling to the U.S., or to Japan or to Europe and your commodity is not even going to China. The amount of money you are receiving, the pricing that the miners have been able to harvest is significantly factored and significantly higher because of Chinese demand. It is not a direct contract of service selling to China – China is present in that deal in some fashion.

and export as gasoline or kerosene, but it’s not always economically viable. If you ask the Albertans, of course, we’d like to have our processing. I understand why B.C. doesn’t want to sell logs, they want to sell timber. I totally understand that Quebec wants processing. But you cannot ignore the economics of the trade, because if you simply ignore that and try to twist the arms of mineral owners and exporters where there’s no economic viability, you’ll kill the industry. Certainly it’s worth exploring an equation with economic partners who are buying our minerals, but if it’s not viable, it’s simply not going to happen.

CIM: How is China going to change the global market in the coming years?

Houlden: This is not all good news, but if we assume the continued melting of the Arctic ice pack, one of the countries that would benefit in a huge way would be China. You could cut the shipping time from Shanghai to Rotterdam by 66 per cent by sailing through the Arctic.

Which country has the widest potential appetite for minerals from the High Arctic or the Northwest Territories or Nunavut? Certainly that’s China, given its profile as a consumer and given its capital. A lot of mineral exploration in the Arctic probably doesn’t make any economic sense now, but those circumstances would change with an open Arctic Ocean. I am not saying “bring on global warming,” but if this is going to happen, there will be an effect on the Canadian mining sector and on the viability of mining in the High Arctic. CIM

CIM: Local mineral processing is a hot political issue in many regions of Canada.

In Quebec, unions would like to see the government require foreign companies to do their steelmaking in-province. Do you think this is reasonable?

Houlden: I’m all in favour of processing raw materials in Canada where it can be done in an economic fashion. Simply requiring processing, though, where it is not economically feasible, is not going to achieve anything because you can’t force a corporation to buy your material. Iron ore is relatively widely found. China is a huge buyer from Brazil, from Australia, from Indonesia, and only to a small extent from Canada.

In certain high-value cases, and of course oil is a classic one, requiring processing would be a bit easier. Even in Alberta, though, we agonize over this issue because in theory you can upgrade December 2012 / January 2013 | 51

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NEW – Certification in Ore Reserve Risk and Strategic Mine Planning Optimization

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

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.

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A test of

METTLE Volatile prices, policy changes and an uncertain outlook for the global economy will test the discipline and flexibility of both miners and developers in the months ahead. Enduring the crucible means they will have to rely on steady improvement, intelligent innovation and well-aligned priorities. For our look at 2013, we sidestep superstition and explore the forces animating the industry and how they may be harnessed to push through the coming year.

Operations

Assaying at Gran Colombia’s Maria Dama plant in Antioquia, Colombia Courtesy of Gran Colombia

Perspectives

Innovation

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Operations

Addition by subtraction

by Herb Mathisen Reducing operating costs and careful spending are the orders of the day, as the mining industry braces for a rocky year. Whether for added protection from volatile commodity markets or just smart business, many miners are looking inwards and tightening their belts. Barrick Gold initiated a company-wide portfolio review and is committed to reducing costs, which includes the potential sale of its share of African Barrick Gold to China Gold. And Teck Resources announced in October that it would not only defer more than $1.5 billion in capital spending but also attempt to reduce annual operating costs by $200 million.

Also in the fall, Vale CFO Luciano Siani said the Brazilian giant would reassess its “low value adding” operations and could halt or divest of mines not making money.

“This is a different approach as, in the past, we privileged volumes over value; we didn’t do this sort of detailed analysis to try to understand what specific assets are contributing value for shareholders,” he said during an investors’ conference call.

“But now we are committed to not operate those assets which are not value adding.”

Attacking costs from all angles “We’ve gone through a period of some pretty high commodity prices that have probably allowed companies to slip by a little too easily at times, and we know this can’t last,” says Otto Schumacher, a mine cost consultant for 30 years and a director with InfoMine USA. No magic formula exists to break down operation costs, as expenses vary for each individual mine. But generally one third to one half of costs are wrapped up in personnel, Schumacher says. And while human resources often account for the largest portion of a mine’s expenses, that is a tough place to reduce costs, since workforces have become leaner in the last 10 to 15 years. Moreover, a smart employee retention strategy is critical for reducing recruitment and initial training expenses once economic conditions are more favourable. Schumacher said equipment operation costs, including fuel, maintenance and supply parts for equipment, account for the next largest portion of expenses – around 25 per cent, plus the cost of operators. Schumacher argues that smart maintenance spending and deployment of personnel are critical to increased productivity.

More and more, companies are examining this area, aiming to decrease equipment downtime and make operations run smoother. The Copper Mountain Mining Corporation took a maintenance-centred approach at its British Columbia mine that went into operation last year. Jim O’Rourke, the company’s CEO, explained that the operation diverted money it used to spend on haul truck tires toward road maintenance, which has in turn led to a reduction in tire costs.

To reduce its energy bill, which O’Rourke put at $2 million per month, the company partnered with BC Hydro and its Power Smart program. A full-time electrical Four wind turbines at the Diavik mine in the Northwest Territories went into operation in September to reduce the mine’s reliance on diesel.

Courtesy of Diavik

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

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engineer now works on-site, seeking out plant and process inefficiencies. O’Rourke says the mine will soon implement modifications to its ball mill to reduce energy consumption.

This has been an ongoing focus for Taseko Mines Ltd. at its Gibraltar copper-molybdenum mine – first opened in 1971 and acquired by the company in 1999 – in south-central B.C. “Energy efficiency in the 1970s was not a major design consideration,” says Rob Rotzinger, Taseko’s general manager of projects. As part of an upgrading process, the company replaced its conventional tumbling ball mill in 2009 with a stirred Metso Vertimill, which has reduced energy consumption by roughly four million kilowatt hours per year, decreasing the grinding circuit’s energy requirements by 35 per cent.

Taseko also receives funding from BC Hydro to employ an on-site energy manager who reviews plants and processes to find efficiencies.

Quebec, Ontario, Manitoba and other provincial utilities offer similar energy conservation partnerships for mines connected to their grids.

Data mining The reams of data produced by today’s mining equipment and plants are also a rich deposit of information, if handled well. “It just seems,” says Schumacher, “that the more data you collect, the more you analyze, the more research you do, you always find ways of improving.”

For the majors with operations around the globe, sound management of operations information becomes very critical, says Jose J. Suarez, managing director and lead for North America mining with consultancy firm Accenture.

“A CEO of a mining company is under tremendous pressure from the market to have the right returns, and that CEO has to have data to tell him which operating plants are the best producers,” Suarez points out. “That’s not only the quality of the ore, but also which ones are the most low-cost producers, which ones are the high-cost producers able to effect changes, which are the new mines, which are the new mines and operations that should be bought. All of this information is very critical, and [having] access to this data is going to be one of the items that is going to be very important for mining companies to address.”

Into the wind Of course some factors – commodity prices, a mine’s actual mineral deposit characteristics, the local climate – cannot be influenced. But miners can convert challenges to their advantage, as Rio Tinto’s Diavik diamond mine did to help reduce its reliance on diesel and its exposure to the risk of climate change.

The mine, 300 kilometres northeast of Yellowknife, N.W.T., had relied on diesel exclusively to power its operation and, in 2006, a warmer winter resulted in a shorter ice road season.

“We, like the other mines in the North, found ourselves in a situation where we were unable to fully resupply,” says Doug Ashbury, Diavik communications advisor. This meant flying in several million litres of fuel at an added expense.

In response, the mine confirmed it had a viable wind resource and went ahead with the construction of a 9.2megawatt wind farm. The four 2.3-megawatt turbines first December 2012 / January 2013 | 55

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32%

increase of mining costs between 2003 and 2010

source: Accenture

provided power to Diavik’s grid in September. The project cost $33 million and is expected to reduce Diavik’s diesel use by approximately five million litres per year and supply 10 per cent of its overall power.

“If we reduce our reliance on diesel, then ultimately we reduce our fuel costs,” says Ashbury, who notes that company officials expect the wind project to have paid for itself in eight years based on the 10 per cent power supply calculation. The mine has already seen the wind farm supply as much as 25 per cent of its power. The turbines will also cut 100 ice road fuel loads and reduce the mine’s carbon footprint by six per cent.

Xstrata’s Raglan nickel mine in northern Quebec is currently studying the feasibility of constructing its own wind farm to reduce diesel consumption and support its expanding operation.

Perspectives

On the record

by Anna Reitman

JOHN GRAVELLE

CIM: Alternative finance is a hot topic, especially as PwC’s report shows a 43 per cent decline in market cap for the top 100 mining companies on the TSX Venture. But in accessing those dollars, is it who you know?

JG: Asian investment has received attention because the dollars are so big, and those tend to be vertical integration plays. The Labrador Trough, for example, has seen acquisitions by Chinese companies like Wisco and Indian companies like Tata Steel. These arrangements require people who have connections at senior levels and can access the right level of those organizations. A number of people have gone over to China and spent months, failing to speak to the right level.

Most of the action has been in iron ore, but there is also anticipation for some high-quality chrome deposits and other base metals. More lowprofile have been Chinese and private interests in potash. Another vertical integration play is rare earths; Toyota made a deal in Quebec, for example.

Steel and auto companies do not want to run mines, they want economic incentives. The formula tends to be a stake in the public company’s shares, a joint venture interest in the property and guaranteed off-take.

CIM: Is there positive news for juniors?

JG: 2013 should be more upbeat. For commodities, I think gold has already turned the corner, but base metals still need good news coming out of China. China has dealt with inflation problems and the government transition. It is important for a one-party system to show good economic results in the first year after a regime change, but the infrastructure spending announced in recent months is going to take time to translate into demand for resources.

John Gravelle is PwC’s mining industry leader for Canada and the Americas, based in Toronto. He assists large mining companies with business issues.

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

The wild card out there is Europe. If Europe can avoid a meltdown as far as banking solvency and sovereign defaults, then things are looking good for base metals over the next quarter or two.

2011 2012 I have also seen optiMarket capitalization mistic signs in mergers of the Top 100 TSXV mining and acquisitions in companies (in billions) Colombia and Mexico – source: PwC 20.6 11.7 takeovers like Calvista

by AUX. CIM

$$

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Necessary reflection “In the mining industry, we are at the whim of the international market for metal prices. The only thing we compete in is being a low-cost producer,” says Copper Mountain’s O’Rourke. “You should always try to maximize your efficiencies, and I think that’s just part of what we do. It’s just good business.”

And, adds Suarez, competition is bound to get more intense. Keeping a close eye on costs and how they match up against the rest of the field will make the difference.

“Once you have that benchmark,” he says, “you go back to your operations and analyse, ‘Am I there?’ If ‘yes’, great. What can you do to get a little bit better? But if you’re not there, then what do you have to do in the operations to get to that benchmark for the market? When you do that, you are going to see a reception in the marketplace that is going to be very, very positive.” CIM

CIM: What advantages does West Africa have?

MARK BRISTOW

MB: West Africa has in recent years emerged as one of the world’s major gold fields, and with global gold production flat or in decline, and the former leading producers such as South Africa in irreversible decline, the region is one of the few that is not only maintaining a robust production profile but also offers a great potential for new world-class discoveries. With the industry generally struggling to deliver growth elsewhere, Ghana, Mali, Senegal, Tanzania, the Ivory Coast and Burkina Faso hold the prospect of rich pickings for the astute gold miner. The same is true of Central Africa and notably the Democratic Republic of Congo, which is highly prospective for gold but still relatively underexplored.

CIM: What are some of the greatest challenges?

Mark Bristow has been Randgold Resources’ chief executive since its incorporation. The company was founded on his exploration work in West Africa and he is a strong voice for a sustainable mining industry. Randgold has numerous operations and exploration programs across West and Central Africa.

MB: The greatest risk factor in investing in West Africa is common to all emerging countries: a lack of infrastructure and limited skills. Our philosophy of investing for the long term, supported by the successful partnerships we have built with our host countries, has enabled us to address the infrastructure issue, and we are pursuing ways of expanding this approach. At present, for example, we are in discussion with a number of West African governments and power utilities about the development of a regional power grid. As far as political risk goes, this has diminished in recent years, although Mali and the Ivory Coast are still dealing with the after-effects of the earlier unrest there. This has not impacted, to any significant extent, on our operations there and we are confident that full stability will be restored. In recent months, some West African governments have shown an appetite for a larger slice of the mining cake, but again we believe that by demonstrating the development of a sustainably profitable gold mining industry – which will benefit all stakeholders, notably its host country – we will persuade them to join us in a long-term commitment to this goal.

CIM: What do you think the big stories will be?

MB: For gold, the real growth still sits with the Ivory Coast, Ghana, Mali, Senegal and Burkina Faso. For iron ore, it is Guinea and Liberia. These countries have new governments taking a fresh look at how a fiscal regime and accountability measures are applied at the same time as these jurisdictions undergo their own political evolution. I expect continued improvement in transparency. CIM December 2012 / January 2013 | 57

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ANNE STEVENSONYANG

CIM: What do you think of the growth prospects for China?

ASY: Very weak if you look past the headline numbers like GDP to the sub-numbers, like manufacturing output, corporate profitability, commodity prices, and other metrics. The economy is tumbling hard.

There has recently been an uptick in the industrial economy, particularly steel, but I believe it was driven by expectations of political change rather than any underlying demand, and production and commodity prices will now sag again.

CIM: There have, however, been successful rounds of fiscal stimulus. How effective would future stimulus be for commodities?

ASY: I don’t think that there will be stimulus; I would expect more of a liquidity injection. The government and other economic actors appear to believe that new money is providing a negative return at this point.

Instead of creating new investment, liquidity injections are keeping banks’ doors open.

CIM: Through its state-owned enterprises, China is investing heavily overseas while still controlling investment into China. How do you see this playing out?

Anne Stevenson-Yang is the co-founder and research director of J Capital Research, which provides independent research on China. She has over 20 years of experience in the country.

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

ASY: There is cash in the economy and a policy of favouring energy and natural-resources asset acquisitions. But China has a system in which there is capital deployed without much scrutiny and an incentive system that does not make a lot of sense. This is not a recipe for rational economic acquisitions. That doesn’t mean there aren’t any, but there are other motivations outside of economics. As for loosening policy for foreign ownership within China, I would be very surprised. CIM

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ROB McEWEN

CIM: Going into next year, how will mining developers advance projects?

RM: One of the challenges is that 15 years ago, governments were desperate for foreign investment and altered tax regimes to encourage exploration. Then, one or two governments later, you don’t have the same people there with the same commitment to development; they are more committed to populist political actions and need a source of revenue.

In our case, to bridge a gap in our cash flow created by Argentina’s political moves with its central bank, we are doing a US$60-million rights issue. This form of financing is not that common in North America. We are offering our shareholders the right to acquire an additional 10 per cent of their shareholding at a 50 per cent discount to market. I will be taking down my proportionate share and I am personally backstopping the entire financing.

CIM: What should they avoid or embrace?

RM: Bank on your costs going up. Whether it’s government, labour or suppliers, there will be demands and margins will shrink. There have also been a large number of companies looking to produce lowgrade deposits, and I would suspect they want to work on a better grade to give a larger margin of comfort. Mining developers should sharpen their pencils, look at their costs and think about shareholders.

Rob McEwen is the executive chairman, director, president and CEO of McEwen Mining, a mid-tier gold producer in the Americas with projects in various stages of operations and development in Argentina, Mexico and Nevada.

Basically, we have come out of a period very much like the late 80s and are going into a period much like the early 90s. There was a huge proliferation of companies, lots of unfulfilled promises and operating costs jumped considerably. Consolidation will be the theme for the next year. Investors will be drawn back by increasing share prices due to M&A activity. Next year will deliver better price performance. CIM

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In the mill control room of the Copper Mountain mine Courtesy of Copper Mountain Mining Corporation

Innovation

The tech (r)evolution

by Eavan Moore

This year, Rio Tinto put the first 10 of an anticipated 150 Komatsu autonomous-ready haul trucks into service at its iron ore operations in Western Australia. And at the latest Minexpo in Las Vegas, Caterpillar unveiled its own autonomous haul truck, another step toward a reality in which remote operations centres seamlessly oversee unmanned operations, from rock to rail. This ambitious vision aims to rebuild the modern mine from scratch, wring greater value from ore bodies, and recast the role of a miner.

For mines already in operation, advances in automation technology may not be remaking operations but they are refining them, whether by removing people from high-risk, repetitive tasks or by introducing more control to material movement and other business-critical aspects of production.

tion continue to be developed and implemented in the mine,” he says.

Consultants like Carter and Jonathan Peck, owner of Peck Tech Consulting, work with mining clients to identify which technologies help address their operational needs. Most clients, says Peck, are not looking at full-scale autonomy; instead, they need to make interactions between people and existing equipment more efficient. “Rather than remove the operator from the task, how do we provide operator-assist capabilities, so that we can provide better tools to more accurately identify the material being excavated as well as ensuring the right material goes to the correct destination?” asks Peck. “That, to me, is the trend right now for the majority of operations, more so than trying to achieve a fully autonomous mine.”

Safety and predictability

Resistance is futile

Aaron Carter, principal consultant at Improvement Resources Pty Ltd., predicts that the near-term adoption of discrete automation will have a double focus: to remove people from risky and repetitive tasks like material sampling and conveyor roller replacements, and to control variability of process outputs where greater control and certainty of the outcome is business critical. “That’s where we’ll see automa-

Before inundating their site with new technology, miners often need to unlock the potential of the technology they already possess. Dispatch systems’ ability to automate information and aid decision-making increases every year, but, argues Mark Baker, owner of CheckMark Consulting: “Most of the mine management systems in the world are expensive bean counters, with very few operations using the dispatching

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systems’ algorithms to improve their efficiencies. They’re fighting the old train of thought where people think that they can do a better job than a computer.”

That reluctance to cede control to computers has informed equipment design, says Eric Hsieh, technology product manager at Joy Global. The adaptive controls on Joy Global’s new 4800XPC shovel, for instance, use the responsiveness of an AC drive to react quickly in potentially harmful situations. When sensing an abrupt deceleration, the controls, in effect “begin to pull inertia out of the system, regardless of what the control system or the operator is calling for,” says shovel project manager Pat Singleton. But they act invisibly; in fact, operators tell Joy Global the shovel feels more responsive to their commands.

Generational turnover and the increasing acceptance of everyday automation in other sectors, like the automotive industry, have incited cultural change in the last few years and will continue to do so. “When you look into the automotive industry and people getting more comfortable with the concept of operator-assist functionalities, this is bringing it more to dayto-day understanding and acceptance,” says Daniel Robertson, business development manager at Siemens Industry.

And though automation usually connotes the elimination of human jobs, there will be new skills needed to deal with a modern mine. Peck suggests that more mines will hire technology managers, for example, in order to more methodically select and integrate the right technology into operations.

Starting safely Hsieh points out that while equipment operators might disagree with mine managers about the role technology ought to play, they can all agree that safety is paramount. Safety features like collision-avoidance systems will be next to come down Joy Global’s pipeline, as they are the least controversial to implement due to their passive role in most operations.

Autonomous drilling has taken off, probably because of its ease of implementation. “It’s a relatively low-risk foray into automation for a mining company,” explains Curtis Stacy, general manager, mining systems at Flanders. “A drill is easy to cordon off. And if something goes awry with the automation, then you can always put a person on that machine.”

As a third-party technology provider, Flanders sells both a semi-autonomous configuration, in which the operator initiates the drilling process by pressing a button, and a fully autonomous package with a command centre able to monitor multiple drill rigs around the world. The person monitoring them “can start them, stop them, call in for fuel, things like that,” says Stacy. “But the drill rig itself performs its drilling functions autonomously.” In the last two years, Flanders has seen demand for its autonomous package jump from 20 per cent of installations to 80 per cent.

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Piece-by-piece improvement Third party technology providers like Flanders will continue to fill critical gaps left by the major manufacturers, says Peck.

For example, he argues, “[OEMs] still need to enable improvements in the manner in which their machines interact with other pieces of equipment, from different suppliers.” The speed December 2012 / January 2013 | 61

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and precision with which trucks can be loaded has a direct impact on haul cycle times, so Peck believes that more automated shovel-truck interactions will fulfill an as-yet unrealized potential in autonomous haulage systems. “Then you can maximize cycle times and increase productivity,” he says, “at a point in the mining process that is traditionally a bottleneck.”

Siemens, meanwhile, is working to fill the excavator automation gap by developing a one-touch digging mechanism to automate specific tasks, such as swinging over to a truck, and to prevent overloading of the bucket or haul truck. The challenge lies in programming these manoeuvres to handle digging into real earth, explains Robertson. “We’ve put our vision system on a full-scale machine,” he says, “but as far as the digging through the bank, we’ve been proving that interrelation in a model environment first.” The company plans to commercialize this operator-assist function in the next few years, and, according to Robertson, Siemens is “pushing very strongly to have a bundled package available for 2014.”

Brian Mace, manager of Hitachi mining applications and products, believes these interim technologies are the foundation of true autonomy. Hitachi has plans to launch an autonomous haulage system by 2016, built on the success of its AC drive controls in combination with technologies from Wenco.

And while surface mines have taken a recent lead on implementing automation, there are developments in semi-automa-

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

tion from major manufacturers in the underground realm.

Caterpillar and Atlas Copco both sell LHDs that are operable from surface command centres. On the other hand, third parties appear likely to continue building innovative navigation tools to support automating underground equipment. One of those tools is the laser-based underground GPS localization device, which Peck predicts will see commercialization by 2014.

An information economy These technologies all rely on a robust IT infrastructure.

Companies like Siemens and Flanders face the challenge of controlling interactions between different manufacturers’ equipment – a task made more difficult by uniquely encoded and proprietary details of original equipment manufacturer engineering. Robertson believes mining companies will need to play a more active role if they are to overcome these barriers.

“The mines themselves can insist that they have a fleet of different types of equipment,” he says, “and that they want it all to be able to communicate together.”

Hsieh foresees slow but inevitable convergence on a single standard. “In the next four years, you’ll see new mines come online that have advanced planning with full automation in mind, in which case the information infrastructure will be a critical part of their planning,” he says. “I think we will necessarily have to converge. I’m an optimist.” CIM

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À la mine Copper Mountain, la maintenance accrue des routes a permis de réduire les coûts de pneu.

Exploitation

Courtoisie de Copper Mountain Mining

En faire plus avec moins par Herb Mathisen Réduire les coûts d’exploitation et dépenser avec parcimonie : voilà le mot d’ordre, alors que le secteur se prépare à affronter une année tumultueuse. Que ce soit pour mieux se protéger des marchés des produits de base volatils ou simplement par précaution, de nombreuses entreprises se remettent en question et se serrent la ceinture. Barrick Gold a entrepris un examen de son portefeuille à l’échelle de l’entreprise et s’est engagée à réduire les coûts, ce qui comprend l’offre de vente de ses parts dans Barrick Gold (Afrique) à China Gold. Teck Resources a quant à elle annoncé en octobre non seulement qu’elle remettait à plus tard des dépenses en capital de plus de 1,5 milliard de dollars, mais qu’elle tenterait également de réduire de 200 millions de dollars ses coûts d’exploitation annuels. Également cet automne, le directeur financier du géant brésilien Vale, Luciano Siani, a dit que la société allait réévaluer ses activités « à faible valeur ajoutée » et pourrait suspendre les activités des mines qui ne rapportent pas ou s’en départir. « Il s’agit d’une approche différente; en effet, dans le passé, nous avons privilégié le volume par rapport à la valeur, nous ne faisions pas ce genre d’analyse détaillée pour tenter de comprendre quels actifs en particulier apportaient une valeur pour nos actionnaires, a-t-il déclaré lors d’une conférence téléphonique avec les investisseurs. Mais maintenant, nous nous engageons à ne pas exploiter les actifs qui n’apportent pas de valeur ajoutée. »

S’attaquer aux coûts sous tous les angles « Nous avons traversé une période de flambée des prix des produits de base, ce qui a probablement accordé un peu de

répit aux entreprises, mais nous savons que cela ne durera pas », dit Otto Schumacher, consultant spécialisé dans les coûts dans le secteur minier depuis 30 ans et directeur d’InfoMine aux États-Unis.

Il n’existe pas de formule magique pour faire chuter les coûts d’exploitation : en effet, les dépenses varient d’une mine à l’autre. Mais en général, entre un tiers et la moitié des coûts sont liés au personnel, dit Schumacher. Et tandis que les ressources humaines représentent souvent la part la plus importante des dépenses d’une mine, il s’agit d’un domaine où il s’avère difficile de réduire les coûts étant donné que la main-d’œuvre s’est faite plus rare au cours des dix à quinze dernières années. De plus, une stratégie judicieuse de maintien des effectifs est essentielle pour réduire les frais de recrutement et de formation initiale lorsque la conjoncture deviendra plus favorable. Schumacher affirme que les coûts d’exploitation de l’équipement, y compris le carburant, l’entretien et les pièces, représentent la deuxième plus grande part des dépenses, à savoir environ 25 %, à laquelle s’ajoutent les coûts liés aux opérateurs. Schumacher souligne l’importance d’une gestion des dépenses d’entretien et d’une répartition du personnel judicieuses si l’on souhaite accroître la productivité.

Les entreprises se penchent de plus en plus sur ce point dans le but de diminuer le temps d’indisponibilité du matériel et de faciliter l’exploitation. À sa mine en Colombie-Britannique qui est entrée en service l’année dernière, la Copper Mountain Mining Corporation a adopté une approche centrée sur l’entretien. Le PDG de l’entreprise, December 2012 / January 2013 | 63

Courtoisie de Diavik

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Les quatre éoliennes sont entrées en service en septembre à mine Diavik aux Territoires du Nord-Ouest afin de réduire leur consommation de diesel.

Jim O’Rourke, a expliqué que les fonds habituellement Exploration de données alloués à l’achat de pneus de camions-remorques avaient Lorsqu’elles sont bien gérées, les quantités de données proété utilisés à la place pour l’entretien des routes, ce qui a duites par les installations et le matériel miniers d’aujourd’hui par la suite conduit à une réduction des coûts destinés à représentent un précieux gisement d’information. Comme l’achat de pneus. l’explique Schumacher, « on dirait que plus vous recueillez de Pour réduire sa facture énergétique, évaluée à deux mil- données, plus vous en analysez, plus vous faites de recherches, lions de dollars par mois par O’Rourke, la société a établi plus vous trouvez des moyens de vous améliorer ». un partenariat avec BC Hydro et son programme Éner Sage.

Pour les grandes sociétés ayant des installations partout Un ingénieur électricien travaille maintenant sur place à dans le monde, une gestion solide des données sur l’exploitaplein temps afin d’étudier les pertes tion est d’une importance capitale, d’efficacité dans les installations et affirme José J. Suarez, directeur général les processus. O’Rourke dit que la et chef de l’exploitation minière en mine va bientôt modifier son Amérique du Nord pour la société broyeur à boulets afin de réduire sa d’experts-conseils Accenture. consommation d’énergie. « Le marché exerce une pression L’augmentation des coûts Pour Taseko Mines Limited, il constante sur les PDG des sociétés des opérations minières s’agit d’un objectif permanent à sa minières afin que celles-ci dégagent de entre 2003 et 2010 mine de cuivre-molybdène Gibraltar, bons rendements et les PDG doivent source: Accenture ouverte en 1971, dans le centre-sud disposer de données leur indiquant les de la Colombie-Britannique. installations les plus productives, souligne Suarez. Il ne s’agit « Dans les années 1970, l’efficacité énergétique n’était pas pas seulement de la qualité de minerai, il faut également vraiment au cœur de la conception », déclare Rob Rotzinger, déterminer les producteurs dont les coûts de production sont directeur général des projets à Taseko. En 2009, dans le cadre les moins élevés et ceux présentant des coûts d’exploitation d’un processus de mise à niveau, l’entreprise a remplacé son plus élevés qui sont susceptibles de remédier à la situation; il broyeur à boulets traditionnel par un broyeur Vertimill de faut aussi déterminer lesquelles sont de nouvelles mines et Metso qui a permis de réduire la consommation d’énergie trouver de nouvelles mines ou activités qu’il serait bon d’acd’environ 4 millions de kilowattheures par an, diminuant les quérir. Toutes ces données sont essentielles et l’accès à cellesbesoins en énergie du circuit de broyage de 35 %. ci revêt une importance capitale pour les sociétés minières. » De plus, BC Hydro octroie des fonds à Taseko afin que celle-ci emploie un gestionnaire d’énergie sur place dont le Dans le vent mandat est d’examiner les installations et les processus afin Naturellement, il est impossible d’influer sur certains facd’en améliorer l’efficacité. teurs tels que le prix des produits de base, les caractéristiques Les services publics provinciaux du Québec, de l’Ontario, réelles du gisement de minéraux d’une mine ou encore le clidu Manitoba et d’autres provinces offrent des partenariats sim- mat local. Cependant, les sociétés minières peuvent tourner ilaires en matière de conservation de l’énergie aux mines reliées ces défis à leur avantage, comme dans le cas de la mine de diamants Diavik de Rio Tinto qui a réussi à réduire sa dépendance à leurs réseaux.

32 %

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au diesel et son exposition aux risques liés aux changements climatiques. La mine, située à 300 kilomètres au nord-est de Yellowknife (Territoires du Nord-Ouest), avait tout misé sur le diesel pour alimenter ses installations. Or, en 2006, un hiver plus chaud a écourté la saison des routes de glace. « Comme les autres mines dans le Nord, nous nous sommes retrouvés dans l’incapacité de nous ravitailler », a déclaré Doug Ashbury, conseiller en communication de Diavik. Cela a obligé la mine à acheminer plusieurs millions de litres de carburant par avion, ce qui a représenté des dépenses supplémentaires.

Pour remédier à la situation, la mine a confirmé qu’elle disposait d’un potentiel éolien viable et s’est lancée dans la construction d’un parc éolien de 9,2 mégawatts. Les quatre turbines de 2,3 mégawatts ont commencé à fournir de l’électricité au réseau de Diavik en septembre. Le projet a coûté 33 millions de dollars et devrait permettre de réduire la consommation de diesel de Diavik d’environ cinq millions de litres par an et subvenir à 10 % de ses besoins généraux en énergie. « En réduisant notre dépendance au diesel, en fin de compte, nous réduisons nos coûts de carburant », a déclaré Ashbury, tout en soulignant que la société s’attendait à ce que les coûts du projet éolien soient amortis d’ici huit ans étant donné les 10 % de besoins énergétiques couverts; il est déjà arrivé que le parc éolien comble 25 % des besoins en énergie.

Les turbines permettront également de couper 100 chargements de carburant par route de glace et de réduire de 6 % l’empreinte de carbone de la mine.

La mine de nickel Raglan de Xstrata dans le nord du Québec étudie actuellement la possibilité de construire son propre parc éolien afin de réduire sa consommation de diesel et de contribuer à l’expansion de ses activités.

Réflexion nécessaire « Dans le secteur minier, nous sommes à la merci du marché international des prix des métaux. Le seul aspect où nous pouvons être concurrentiels, c’est de produire à faible coût, affirme O’Rourke de Copper Mountain. Il faut toujours essayer d’être plus efficace, et je pense que c’est l’essence même de nos activités. Simplement, de bonnes pratiques d’affaires. » Il poursuit en ajoutant que la concurrence va certainement s’intensifier. C’est en surveillant de près les coûts et la façon dont ces derniers s’agencent par rapport au reste du secteur que l’on peut faire avancer les choses. « Vous devez prendre cet aspect en compte, analyser vos activités, puis déterminer où vous en êtes.

Si vous y êtes, vous vous trouvez en excellente position. Demandez-vous ce que vous pouvez faire pour vous améliorer encore davantage. Et si vous avez encore du chemin à parcourir, demandez-vous comment progresser pour atteindre ce point de référence du marché. Vous verrez alors que le résultat d’une telle réflexion aura des retombées extrêmement positives. » ICM

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Courtoisie de Copper Mountain Mining

Innovation

La salle de commande du broyeur de la mine Copper Mountain.

L’évolution technologique révolutionnaire par Eavan Moore Cette année, Rio Tinto a mis en service les dix premiers camions lourds de la flotte prévue de 150 camions de transport autonomes Komatsu, dans ses sites d’exploitation de minerai de fer en Australie-Occidentale. À la dernière exposition Minexpo à Las Vegas, Caterpillar a dévoilé son propre camion de transport autonome, une autre étape vers des centres d’exploitation dirigeant à distance les opérations sans équipage, du roc jusqu’aux rails. Cette vision ambitieuse, dont l’objectif est de repenser la mine moderne, permettrait de tirer une valeur accrue du minerai et de repenser le rôle de la minière.

Pour les mines déjà exploitées, les avancées technologiques dans l’automatisation ne permettront pas de transformer entièrement les opérations, mais elles pourront certainement les raffiner, en éliminant la nécessité de faire appel à des personnes pour les tâches répétitives à haut risque ou encore en mettant en place plus de mesures de contrôle dans les déplacements de minerai et dans d’autres aspects critiques de la production.

Sécurité et prévisibilité Aaron Carter, conseiller en chef chez Improvement Resources Pty Ltd., prévoit qu’à court terme, l’adoption des technologies d’automatisation se produira sur deux fronts : premièrement, l’élimination de la nécessité de faire appel à des personnes pour les tâches risquées et répétitives comme l’échantillonnage du minerai et le remplacement des rouleaux du convoyeur, et deuxièmement, le contrôle de la variation de la production là où la certitude du résultat est critique à l’entreprise. « C’est dans ces applications que nous verrons le développement et la mise en œuvre de l’automatisation dans les mines », explique Aaron Carter.

Les conseillers comme Aaron Carter et Jonathan Peck, propriétaire de Peck Tech Consulting, travaillent avec les entreprises minières pour déterminer quelles technologies peuvent répondre à leurs besoins opérationnels. Selon Jonathan Peck, la plupart des clients ne recherchent pas des solutions 66 | CIM Magazine | Vol. 7, No. 8

d’automatisation complètes, mais plutôt un moyen d’accroître l’efficacité des interactions entre les gens et l’équipement existant. « Au lieu d’éliminer l’opérateur d’une tâche, se demande Jonathan Peck, comment pouvons-nous augmenter ses capacités à l’aide d’outils lui permettant de mieux identifier les minéraux extraits et de s’assurer du bon acheminement des différents minéraux? C’est la tendance actuelle pour la majorité des opérations, bien plus que la réalisation d’une mine entièrement autonome. »

Toute résistance est futile Avant d’inonder leur site de nouvelles technologies, les minières doivent souvent tirer le plein potentiel des technologies déjà en place. Selon Mark Baker, propriétaire de CheckMark Consulting, la capacité des systèmes de répartition à automatiser le flux de données et à aider le processus de prise de décisions augmente d’année en année, mais « la plupart des systèmes de gestion des mines dans le monde ne sont utilisés que comme des calculatrices dispendieuses, alors que très peu d’algorithmes des systèmes sont utilisés pour améliorer l’efficacité des processus d’exploitation. On travaille encore avec l’idée qu’une personne peut faire un meilleur travail qu’un ordinateur ».

Cette aversion à l’idée de céder le contrôle aux ordinateurs a inspiré le design de l’équipement, souligne Eric Hsieh, chef des produits technologiques chez Joy Global. Par exemple, les contrôles adaptatifs sur la nouvelle pelle d’extraction 4800XPC de Joy Global font appel à la vitesse de réaction d’un moteur c.a. pour réagir rapidement dans des situations de risque potentiel. Quand ils détectent une décélération soudaine, les contrôles « réduisent progressivement l’inertie du système, peu importe les commandes données par l’opérateur », explique le directeur de projet de pelle, Pat Singleton. Ces contrôles agissent de façon transparente. En fait, les opérateurs disent à Joy Global que la pelle d’extraction répond mieux à leurs commandes.

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Le changement de génération et l’acceptation accrue de l’automatisation au quotidien dans d’autres secteurs, comme dans l’industrie automobile, ont mené à un changement de culture au cours des dernières années et continueront de le faire à l’avenir. « Quand on regarde l’industrie de l’automobile et la manière dont les gens sont de plus en plus à l’aise avec le concept d’opérations assistées, on comprend que l’automatisation est acceptée et qu’elle fait partie du quotidien », affirme Daniel Robertson, directeur du développement des entreprises chez Siemens Industry.

Et si l’automatisation est généralement synonyme d’élimination de tâches humaines, les gens devront développer de nouvelles aptitudes pour travailler dans un environnement minier moderne. Selon Jonathan Peck, les mines embaucheront plus de directeurs technologiques, par exemple, afin de sélectionner et d’intégrer plus méthodiquement les bonnes technologies dans les processus opérationnels.

Partir du bon pied Eric Hsieh souligne que, bien que les opérateurs d’équipement puissent être en désaccord avec les directeurs de mine en ce qui a trait au rôle de la technologie dans les mines, ils peuvent certainement s’entendre sur le fait que la sécurité est d’importance primordiale. Les fonctionnalités de sécurité comme les systèmes d’évitement de collision seront les prochaines à être produites par Joy Global, puisque ce sont les systèmes les moins difficiles à mettre en place en raison de leur rôle passif dans la plupart des opérations.

Le forage autonome a déjà commencé, probablement en raison de la facilité de mise en œuvre des systèmes. « C’est un premier pas dans l’automatisation représentant relativement peu de risques pour une société minière, explique Curtis Stacy, directeur général des systèmes miniers chez Flanders. C’est facile d’automatiser la foreuse. Et si l’automatisation tourne mal, il est toujours possible de mettre un opérateur sur la machine. » À titre de fournisseur de technologies, Flanders vend des configurations semi-autonomes, dans lesquelles l’opérateur initie le processus de forage en appuyant sur un bouton, de même que des configurations entièrement autonomes, opérées à partir d’un centre de commande d’où il est possible de surveiller plusieurs appareils de forage dans le monde. La personne effectuant la surveillance peut initier le forage, l’arrêter, demander du carburant, etc. « Toutefois, l’appareil de forage effectue ses fonctions de forage de façon autonome. » Au cours des deux dernières années, Flanders a vu la demande pour ses configurations autonomes passer de 20 % des installations à 80 %.

Améliorations à la pièce Les fournisseurs de technologies comme Flanders continueront de combler des lacunes critiques laissées par les fabricants, explique Jonathan Peck. Par exemple, il affirme que « les fabricants d’équipement d’origine doivent toujours ouvrir la porte aux améliorations dans la manière dont leurs machines interagissent avec les pièces d’équipement d’autres fournisseurs ». La vitesse et la précision avec lesquelles les camions peuvent être chargés ont une incidence directe sur la durée du cycle de transport, et Jonathan Peck estime que l’amélioration

des capacités d’interaction entre les pelles d’extraction et les camions permettra de réaliser des gains d’efficacité dans les systèmes de roulage autonomes. « Ensuite, il devient possible de maximiser le cycle et d’augmenter la productivité, à un point qui représentait jusqu’à maintenant un goulet d’étranglement dans le processus. » Dans un même temps, Siemens s’efforce actuellement d’automatiser l’excavatrice en concevant un mécanisme d’excavation pour automatiser certaines tâches, comme le déplacement au-dessus d’un camion, de même que pour éviter les surcharges de la pelle ou du camion de transport. Le défi réside dans la programmation de ces manœuvres pour prendre en charge les opérations sur le terrain, explique Daniel Robertson. « Nous avons installé le système découlant de notre vision sur une machine, mais pour ce qui est de l’extraction du banc, nous effectuons d’abord des études dans un environnement modélisé. » L’entreprise prévoit commercialiser cette fonction d’assistance dans les prochaines années et, d’après Daniel Robertson, Siemens s’efforce d’offrir cette fonction pour 2014.

Brian Mace, directeur des applications et produits miniers chez Hitachi, croit que ces technologies temporaires serviront de pierre d’assise vers la véritable autonomie. Grâce au succès de son système de contrôle à moteur c.a., combiné à des technologies de Wenco, Hitachi prévoit lancer un système de transport autonome d’ici 2016.

Et, bien que les mines de surface aient pris la tête dans la mise en place de mesures d’automatisation, les fabricants majeurs ont réalisé d’importants développements dans la semiautomatisation pour les mines souterraines. Caterpillar et Atlas Copco vendent toutes deux des chargeurs-transporteurs pouvant être opérés à partir d’un centre de commande en surface.

Toutefois, les fournisseurs tiers continueront probablement de concevoir des outils de navigation novateurs appuyant l’automatisation des équipements souterrains. L’un de ces outils est un appareil de localisation GPS au laser qui, selon les prédictions de Jonathan Peck, sera commercialisé d’ici 2014.

Une économie d’information Ces technologies nécessitent toute une infrastructure des TI robuste. Des sociétés comme Siemens et Flanders font face à un défi de taille : elles doivent contrôler les interactions entre des équipements de divers fabricants, tâche compliquée par la présence de détails exclusifs de l’ingénierie d’origine de cet équipement. Daniel Robertson croit que les sociétés minières devront jouer un rôle plus actif dans le processus si elles souhaitent contourner ces obstacles. « Les minières peuvent insister sur le fait qu’elles possèdent une flotte d’équipement provenant de différents fabricants et qu’elles veulent que ces différentes pièces d’équipement puissent communiquer entre elles. » Eric Hsieh entrevoit une lente et inévitable convergence vers un standard unique. « Au cours des quatre prochaines années, nous verrons de nouvelles mines entrer en jeu avec une planification précise ayant pour objectif l’automatisation complète, explique-t-il. L’infrastructure informatique jouera un rôle critique dans cette planification. Je crois qu’il sera nécessaire de concilier les efforts. Je suis optimiste. » ICM December 2012 / January 2013 | 67

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CIM community International

In the driver’s seat Courtesy of/courtoisie de the Prime Minister’s Office (PMO)

CIM leads Canadian mining industry development in West Africa

Pierre Boivin, associé chez McCarthyTétrault et codirecteur du sous-comité african du comité consultatif international de l’ICM, recontre le premier ministre Stephen Harper.

Pierre Boivin, partner at McCarthy Tétrault and co-leader of the Africa subcommittee of CIM’s International Advisory Committee, meets Prime Minister Stephen Harper.

L’ICM aux commandes L’ICM est aux avant-postes du développement de l’industrie minière canadienne en Afrique de l’Ouest By / Par Correy Baldwin As a region with many emerging mining jurisdictions, West Africa has much to offer Canada. Canadian businesses are connecting with West African industry partners, while governments on both sides are working to promote a boom in development opportunities. CIM is at the forefront of this exchange.

The Institute has emerged as a leader in the region, facilitating industry partnerships and becoming a vital link between the Canadian and West African industries, and between national and regional governments. In October, the government of Canada sought out CIM’s expertise during a discussion with Prime Minister Stephen Harper and several other government representatives in Dakar, Senegal.

The discussion, attended by a select group of seven Canadian business representatives, focused on both the business climate in Senegal and Canadian business interests in the country, as part of Ottawa’s efforts to bolster trade and to develop industry partnerships in West Africa. The prime minister was in Senegal to finalize an investment agreement between the two countries and to discuss business relations as they move ahead.

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En tant que région avec plusieurs juridictions minières émergentes, l’Afrique du l’Ouest a beaucoup à offrir au Canada. Les entreprises canadiennes établissent des relations avec des partenaires commerciaux ouest-africains, tandis que les gouvernements de part et d’autre travaillent à promouvoir l’essor des occasions de développement. L’ICM est aux premiers rangs de ces échanges.

L’Institut est devenu un leader dans la région en facilitant la création de partenariats et en jouant un rôle clé d’agent de liaison entre les industries canadienne et ouest-africaine, ainsi qu’entre les gouvernements nationaux et régionaux. En octobre, le gouvernement canadien a sollicité l’expertise de l’ICM lors d’une discussion avec le premier ministre Stephen Harper et plusieurs autres représentants gouvernementaux à Dakar (Sénégal).

Cette discussion, à laquelle participaient sept représentants d’entreprises canadiennes triés sur le volet, a porté sur le climat des affaires et les intérêts des entreprises canadiennes au Sénégal, dans le cadre des efforts d’Ottawa visant à stimuler les échanges commerciaux et à mettre sur pied des partenariats avec l’industrie ouest-africaine. Le premier ministre s’est rendu au Sénégal pour finaliser un accord d’investissement et discuter des relations commerciales entre les deux pays en vertu de cette entente.

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CIM community

“Harper is known to enjoy meeting with the private industry and, in this instance, his objective was to speak directly with some of the key players involved in Senegal,” says Pierre Boivin, a partner at McCarthy Tétrault, who represented CIM at the meeting. Boivin is co-leader of the Africa subcommittee of CIM’s International Advisory Committee, along with Daniel Gagnon, general manager, mining group at Met-Chem Canada. “It was also fact-gathering to help him prepare for a meeting with the president of Senegal, where he would have the opportunity to voice the concerns, preoccupations and objectives of Canadian business and industry,” added Boivin. The subcommittee has been planning CIM’s activities in the region since it was formed on May 5, 2012.

The mining sector was a major focus of the discussion, with three other mining sector representatives participating – Teranga Gold, Iamgold and the Oromin Joint Venture Group. Boivin stressed CIM’s role in fostering business development of the Canadian mining industry in Senegal.

According to Boivin, CIM can be instrumental in stimulating trade, employment and investment, as well as in developing supply chains and training capacity, and in promoting best practices.

CIM has previously collaborated with the Canadian government in West Africa through trade missions and the development of corporate social responsibility models. This collaboration will continue with future trade deals and investment programs.

« On sait que M. Harper aime bien rencontrer les joueurs de l’industrie privée et, dans ce cas-ci, son objectif était de s’entretenir directement avec certains des principaux intervenants au Sénégal », explique Pierre Boivin, associé chez McCarthy Tétrault et représentant de l’ICM lors de cet événement. M. Boivin est codirecteur du souscomité africain du comité consultatif international de l’ICM, de même que Daniel Gagnon, directeur général, Groupe minier chez MetChem Canada. Le sous-comité planifie les activités de l’ICM dans la région depuis sa création, le 5 mai 2012. « Cette rencontre visait également à recueillir des faits pour l’aider à préparer sa rencontre avec le président du Sénégal, pendant laquelle il aurait la possibilité d’exprimer les inquiétudes, les préoccupations et les objectifs des entreprises et de l’industrie canadiennes », ajoute M. Boivin.

Le secteur minier a été au cœur de la discussion, à laquelle ont pris part trois autres représentants du secteur minier, soit Teranga Gold, Iamgold et Oromin Joint Venture Group. M. Boivin a souligné le rôle de l’ICM dans le développement de l’industrie minière canadienne au Sénégal. Selon lui, l’ICM peut jouer un rôle déterminant dans l’essor du commerce, de l’emploi et de l’investissement, dans le développement de chaînes d’approvisionnement et de capacités de formation et dans la promotion de pratiques exemplaires.

L’ICM a déjà collaboré avec le gouvernement canadien sur des projets touchant l’Afrique de l’Ouest dans le cadre de missions commerciales et de l’élaboration de modèles de responsabilité sociale d’entreprise. Cette collaboration se poursuivra lors des prochaines opérations commerciales et dans le cadre de divers programmes d’investissement.

L’ICM prépare le terrain CIM puts feet on the ground In conjunction with the meeting, CIM announced the opening of its first West African branch in Dakar, as well as agreements in principle to open branches in Ouagadougou, Burkina Faso; Conakry, Guinea; and Abidjan, Côte D’Ivoire. “The prime minister’s visit has, for us, crystalized the importance of West Africa,” says Jean Vavrek, executive director of CIM. CIM is also establishing its presence in West Africa through partnerships with West African organizations, most significantly the Centre Africain d’Études Supérieures en Gestion (CESAG), a university-level management school that will act as secretariat of the new branch.

The Dakar branch will allow CIM to organize initiatives and programs on the ground. Programs run through the branch will connect West African businesses with Canadian suppliers of goods and services. They will also build supply chains, develop technical and professional training, bring industry professionals and practictioners together, and share Canadian expertise and best practices.

Initial programs will focus on upgrading training for Senegalese graduate geologists so that they can be recognized as professional geologists under Canadian standards, and on improving technical programming at Senegalese technical schools.

Parallèlement à la rencontre, l’ICM a annoncé l’ouverture de sa première section ouest-africaine à Dakar, ainsi que des accords de principe pour les sections qui doivent ouvrir leurs portes à Ouagadougou (Burkina Faso), à Conakry (Guinée) et à Abidjan (Côte d’Ivoire). « Pour nous, cette visite du premier ministre a cristallisé l’importance de l’Afrique de l’Ouest », déclare Jean Vavrek, directeur exécutif de l’ICM. L’ICM est également en train d’établir des activités en Afrique de l’Ouest au moyen de partenariats avec diverses organisations ouest-africaines, plus particulièrement avec le Centre africain d’Études Supérieures en Gestion (CESAG), une école universitaire de gestion qui assurera les fonctions de secrétariat pour la nouvelle section.

Grâce à sa section de Dakar, l’ICM pourra organiser des initiatives et des programmes directement sur place. Les programmes menés par l’entremise de cette section permettront de tisser des liens entre les entreprises ouest-africaines et les fournisseurs canadiens de biens et de services, de créer des chaînes d’approvisionnement, de développer des ressources en formation technique et professionnelle et de partager le savoir-faire et les meilleures pratiques du Canada.

Dans un premier temps, les programmes privilégieront la mise à niveau de la formation des géologues diplômés sénégalais, pour qu’ils puissent être reconnus comme géologues professionnels en vertu des normes canadiennes, ainsi que l’amélioration des programmes techniques des écoles techniques sénégalaises.

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CIM community

Opening ceremony of the Gold Symposium held at the Centre Africain d’Études Supérieures en Gestion Le symposium sur l’exploitation aurifière de l’ICM qui a eu lieu au Centre Africain d’Études Superieures en Gestion

CIM has also announced the funding of two research projects: to develop its understanding of and possibilities for a regional supply chain for gold mining in West Africa, and to examine options to develop a Franco-American Institute of Mining. “We’re also looking to improve the awareness of investors about the potential in West Africa, because it’s really misunderstood,” says Vavrek.

L’ICM a également annoncé le financement de deux projets de recherche: pour mieux comprendre les enjeux et les possibilités d’une chaine d’approvisionnement et pour examiner les options de développement d’in institut minier franco-africain. « Nous voulons aussi sensibiliser davantage les investisseurs au potentiel de l’Afrique de l’Ouest car il existe beaucoup d’incompréhension à ce sujet », explique M. Vavrek.

Event sets gold standard for collaboration

Un événement phare pour la collaboration

The CIM Gold Symposium, organized with support from the Canadian embassy at Dakar and CESAG, was held on November 3, 2012, in the Senegalese capital. The symposium, themed “Doing Business in the Mining Sector in West Africa,” was the first of its kind in the region. It focused on legal and commercial frameworks that Canadian mining companies and suppliers need in order to operate in West Africa.

A wide range of topics, from corporate social responsibility to resource evaluation, was explored. One panel focused on how to develop employment forecasting models to coordinate both the programs and capacity at educational institutions with the needs of the mining industry. Panelist Maxime Detraux of PricewaterhouseCoopers discussed the similarities between infrastructure needs of West Africa and the Canadian North, and brought up the possibility of addressing the needs in West Africa through a Plan Nordstyle approach.

“The idea was to bring them processes that worked for us and to create business links with some of the key industry leaders in Senegal,” points out Vavrek. The symposium, he says, showcased Canadian expertise and generated business opportunities for Canada.

Now, with the event a success, the concept can be taken to other West African countries. “Canadian trade commissioners

Le symposium sur l’exploitation aurifère de l’ICM, organisé en collaboration avec l’ambassade canadienne à Dakar et le CESAG, a eu lieu le 3 novembre 2012 dans la capitale sénégalaise. Sous le thème Faire des affaires dans le secteur des mines en Afrique de l’Ouest, cet événement constituait une première dans la région.

Il mettait l’accent sur les cadres juridiques et commerciaux dont les sociétés minières et les fournisseurs canadiens ont besoin pour mener leurs activités en Afrique de l’Ouest.

Des sujets très variés ont également été abordés, allant de la responsabilité sociale d’entreprise à l’évaluation des ressources. Une des discussions entre experts portait sur la façon de créer des modèles prévisionnels pour l’emploi afin d’aligner à la fois les programmes et la capacité des établissements d’enseignement sur les besoins de l’industrie minière. L’expert Maxime Detraux de PricewaterhouseCoopers a parlé des similarités entre les besoins en infrastructures de l’Afrique de l’Ouest et ceux du Nord canadien, tout en évoquant la possibilité de satisfaire les besoins ouest-africains au moyen d’une démarche inspirée du Plan Nord. « L’idée consistait à présenter des processus qui ont fonctionné pour nous et d’établir des relations d’affaires avec certains des chefs de file de l’industrie au Sénégal », souligne M. Vavrek. Selon lui, le symposium a servi de vitrine à l’expertise canadienne et a généré des occasions d’affaires pour le Canada.

Cette initiative s’étant avérée fort fructueuse, le concept peut désormais être appliqué à d’autres pays ouest-africains. « Les délé-

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are really keen to see us bring similar types of symposiums to the regions they are in,” says Vavrek.

“You’ve got to take that first step,” adds Boivin, who was also a speaker at the symposium. “Then the ball gets rolling and you build momentum. Through such forums, business people, government officials, mining companies, industry players and academics can join forces to facilitate business development opportunities in the region, such as the exchange of products and services.”

“We can start by bringing together communities of expertise in West Africa,” says Vavrek. “They have a lot that they could share between themselves, but they don’t yet have as good mechanisms to do that as we do. Our network of branches, along with our concept of technical societies is ideally suited to bridging that gap, and helping them come together.” CIM

gués commerciaux canadiens tiennent vraiment à ce que nous organisions d’autres symposiums semblables dans les régions où ils se trouvent », affirme M. Vavrek. « Ce qu’il faut, c’est faire le premier pas », ajoute M. Boivin, également conférencier lors du symposium. « Ensuite, les choses progressent d’elles-mêmes et continuent sur leur lancée. Grâce à ces forums, les gens d’affaires, les représentants des gouvernements, les sociétés minières ainsi que les intervenants de l’industrie et les universitaires peuvent, tous ensemble, favoriser la création d’occasions d’affaires dans la région comme l’échange de produits et de services. » « Nous pouvons commencer par rassembler les communautés d’expertise en Afrique de l’Ouest », ajoute M. Vavrek. « Elles ont beaucoup de ressources qu’elles pourraient partager entre elles, mais elles ne disposent pas des mécanismes nécessaires à cette fin. Notre réseau de sections ainsi que notre concept de sociétés techniques sont la solution idéale pour combler cette lacune et les aider à unir leurs forces. » ICM

Building a united front Innovations in Mining 2013 – Latin America highlights importance of collaboration

By Dinah Zeldin Just a few short weeks after the CIM Lima, Peru Branch was opened, the inaugural event, Innovations in Mining 2013 – Latin America, further established its role as a vital crossroads for the mining community in the region.

Held November 29-30 at the JW Marriot Hotel, the two days of presentations and networking events brought international companies operating in Peru together around the common goal of defining affordable strategies to increase efficiency and profitability, while mitigating risks. The event attracted 50 delegates from across the Americas, including representatives from Barrick Gold Peru, Golder Associates, Hatch, SNC-Lavalin, Anatamina, Anglo American and other companies active in the region.

The results of the program helped define the future objectives for the branch, says event organizer and branch chair Bertrand De Windt, who leads Steps Up Consulting. “We need to promote cooperation and downplay competition among mining companies in Peru, and the mining companies need to collaborate more closely with surrounding communities to develop joint programs

Nathan Stubuna opens the panel discussion.

that will benefit lives and education of residents.”

Presentations focused on techniques to mitigate risks of project failure or disruption in operations. Nathan Stubina, vice-president international at CIM and manager of the Barrick Technology Centre, opened the discussion with a talk that examined obstacles facing the industry today and factors that may affect operations in the future. Other speakers identified strategies that can be adopted, approaching the mining project from a variety of angles: Mark Kennedy, chief technology officer at Norwegian engi-

neering firm Proval Partners, spoke about potential impacts of technical risks; Rafael Tupayachi, human resources manager, Conteras del Halzago Gold Fields, addressed trends in human resources and proposed management strategies; Bertrand De Windt and Al Maiorino, president of Boston-based public relations company Public Strategy, focused on approaches to corporate social responsibility and on innovative programs for community engagement.

“It was an excellent program,” says Stubina. “Water issues, public perceptions of mining and the training of young engineers were recurring themes. The format allowed for lots of interaction, which the audience really appreciated.”

The event closed with a cocktail reception that included traditional Peruvian drinks, and a sampling of Peruvian cuisine at the Larco Mar Centre. The branch’s next event, a lunch lecture, will be held in February. In 2013, the branch will also launch the CIM Leadership Development program in Peru, which will provide participants with an opportunity to visit operations across the country. CIM December 2012 / January 2013 | 71

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CIM community Award Winner

CSR done right Selwyn Blaylock Medal winner Stephen Quin takes community interests to heart

By Dan Plouffe

The simple desire to see who says a successful minthe world in his youth ing project should act “like a brought Stephen Quin to pebble in the water with the Canada early in his career, ripples flowing outward,” allowed him to participate in meaning that economic benefits from the project the discovery of several should be felt at the local world-class deposits and level first and then spread helped him become a wellout into the communities respected mining executive. beyond.

Recognized for his focus on Quin promoted the crecorporate social responsibility, ation of sustainable busiQuin is the recipient of the nesses and trades in the 2012 CIM Selwyn Blaylock region by offering direct Medal that recognizes distinemployment contracts, by guished service to Canada helping establish the Yukon through exceptional achievMine Training Association ement in the fields of mining, Stephen Quin accepts award from Chuck Edwards, immediate past-president of CIM to facilitate on-the-job trainmetallurgy or geology. ing for First Nations, by After graduating from the providing scholarships and apprenRoyal School of Mines in London, Perhaps his most challenging and British-born Quin started his career by successful project was the development ticeship opportunities to locals, and by working in exploration in Canada but giving First Nations companies priority of the Minto mine, a copper-gold operwas quickly drawn to the broad specaccess to contracts, such as catering, ation in the Yukon. When Quin’s comtrum of disciplines involved in project pany, Sherwood Copper, acquired the trucking and drilling, while supporting management. His first job as a project site, it had been dormant for 30 years. capacity development. manager was in Wales in 1984. In 1986, Quin volunteered with governmenDue to a cumbersome regulatory Quin returned to Canada to work for process, no new mines had been pertal and industry organizations and Miramar Mining Corp., and over a mitted in the Yukon for 10 years and helped develop new laws to facilitate both project financing and an imperiod of 18 years, led notable projects none were in operation when Sherwood proved mineral royalty structure in the such as the Hope Bay gold project in got involved.

Nunavut, which he helped take from Sherwood Copper was a success, Yukon. He used his positions to push for an agreement that has helped spur 3.4 million ounces to 10.8 million going from acquisition to production ounces of gold in resources over six in just under two years. During the a renewal of mining in the region. A years. Quin also collaborated with continued growth and expansion of the key element in the deal, he notes, was Minto mine, Sherwood joined the Cap- providing the Yukon and First Nations Northern Orion Explorations, a Mirastone Mining Corp. banner. Additional governments a greater share of federal mar affiliate, on a joint venture with discoveries were made and operations revenues if a mining project was sucBHP Billiton, which led to the discovery cessful, instead of being capped out at were expanded to what is now almost of the giant Agua Rica copper-gold a 4,000-tonne-per-day operation, up a very low rate. As a result, local govdeposit in Argentina. ernments see direct benefits from mine from 1,560 tonnes when it began.

Quin’s geology background was of development in their territory.

The mine was the first of its kind in great value in his executive roles when it Still on the quest for new advencame to identifying projects with big Canada: it is located on wholly owned tures and discoveries, Quin left CapFirst Nations land, so the project had to potential. “You get a better sense of conhave First Nations support to be stone in 2011 to take the helm as fidence that you’re making the right allowed to continue. Ensuring it had a president and CEO of Midas Gold decisions,” he explains. “You can look at Corp., a Vancouver-based gold explopositive local impact was essential. the information yourself and make your ration company with a world-class Fortunately, corporate social responown judgments, instead of being totally gold asset in Idaho. CIM sibility was always a priority for Quin, reliant on technical people.”

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CIM community Branch Profile

Reaching out CIM Edmonton Branch builds local ties with students

By Krystyna Lagowski

Who’s who?

2012–13 CIM Edmonton Branch Executive CHAIR Tim Joseph

MEMBERSHIP – STUDENTS Jennifer Dornstauder

VICE-CHAIR Coralee Laubman

MEMBER AT LARGE/DIRECTOR Gord Morris

TREASURER Laura Joseph

PUBLIC RELATIONS Ramtin Nouzari

MEMBERSHIP – INDUSTRY Laura Joseph

AWARDS Fenna Poelzer

The winning team for the SE Coalminer’s STARS golf tournament, sponsored by CIM Edmonton, accepts a trophy from Tim Joseph, branch chair.

The CIM Edmonton Branch started in 1912 as the Northern Alberta Group of the Rocky Mountain Branch, a small group of professionals that got together to exchange knowledge about their field. After decades of activity, the branch was officially named the CIM Edmonton Branch on March 20, 1981. Today, it is one of the most active groups within the CIM network and, with its broad membership base of professionals and students, runs a variety of programs to both support the industry and to engage local stakeholders in mining.

The branch’s biggest focus is young people. “Whether they’re already involved in the mining industry through their degree program, or just in high school deciding on a career, we want to talk with them,” explains Tim Joseph, branch chair, associate professor of mining engineering at the University of Alberta and president of JPi Canada.

“Probably two thirds of our branch members are students in mining engineering, geology or processing engineering,” he adds. “The students are part of the organizing committee; they’re part of the way we choose our speakers and the activities in our branch – they have a huge say.”

The student members also manage an outreach program to high schools and elementary schools, developed in 2011 after branch members realized educational programs to promote mining were reaching target audiences too late. Already, 2013

Edmonton CIM Branch Events13

January 7

• Student awards & student speaker night with incoming CIM president-elect Sean Waller

February 4

• Speaker: Dr. Philip Currie, Alberta’s researcher and dinosaur guru

March 4 or April 8

• Michel Jebrak, CIM Distinguished Lecturer, chair in mining entrepreneurship at UQAM-UQAT

• Spouse night upstairs in Harriot Winspear Room

• Innovation in Mining Exploration

the branch has 130 elementary and high schools signed up for visits over the 2012-13 school year.

Branch meetings, which are held on the first Monday of every month at the University of Alberta’s Faculty Club, feature speakers from various sides of the mining industry. “Of the 70 to 100 people who turn out, there are 60 to 70 students,” says executive board member Gord Morris, an account manager with Wajax Equipment. “We want to encourage their attendance, so they don’t pay a nickel.”

The branch also offers various scholarships. It contributes $1,000 to the $3,000 Ian Muirhead Memorial Scholarship, also funded by the Alberta Chamber of Resources, in addition to independently funding two $2,000 scholarships for mining engineering students, and one $1,000 scholarship for a geology student at either the Northern Alberta Institute of Technology or Grant MacEwan University.

Joseph, who has been the chair or vice-chair of the Edmonton branch for about four years, has helped organize three national CIM conventions in Edmonton, and is looking forward to 2015, when the Mine Equipment and Mine Operators Conference will be in town. “Last May, we had 13,500 people from all over the world come to the CIM Convention,” he points out. “It was the biggest yet for CIM.” The branch also sponsors an annual golf tournament in support of the Alberta Shock Trauma Air Rescue Society (STARS).

“It’s a helicopter emergency rescue service for Alberta, Saskatchewan and parts of British Columbia,” says Morris. “To date, we’ve raised over $100,000 for STARS – it’s a great cause.”

The wide range of initiatives organized by the Edmonton branch is part of its commitment to give back to the Canadian mining industry. “I’ve been involved in the Canadian mining industry for many years,” says Joseph. “It’s been a long, rewarding career, and I’m happy to put something back into it.” CIM December 2012 / January 2013 | 75

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CIM community News

Bigger is better | Voir en grand CIM Montreal Branch joins CMMF funds pool La section de Montréal de l’ICM rejoint le fonds commun de la FCMM By / Par Dinah Zeldin Montreal was the first Montréal est la première section de l’ICM à avoir offert des CIM branch to contribute fonds en contribution au fonds to the Canadian Mining commun de la Fondation canaand Metallurgical Foundadienne des mines et de la métaltion’s (CMMF) pooled lurgie (FCMM) destiné aux fund, designated for CIM sociétés et sections de l’ICM qui societies and branches désirent investir dans des prowishing to invest in programmes de soutien à la formagrams that support mintion dans le domaine des mines et ing and metallurgical de la métallurgie. Le 23 octobre, la education. On October 23, section de Montréal a transféré the branch transferred 100 000 $ à la FCMM pour créer $100,000 to CMMF to un fonds durable de bourses create a sustainable schold’études. Les intérêts provenant arship fund. The interest de cette contribution produiront from the sum will go From left/Gauche à droit : Martin Poirier, Mackenzie Watson, Ian Turner, Jean Vavrek, deux bourses annuelles de 1 750 $ towards two $1,750 Serge Major, René Dufour and Hani Mitri destinées aux étudiants de annual scholarships for deuxième année des programmes second-year mining engide génie minier et de géologie au Québec. neering and geology students in Quebec. « Depuis nos tout débuts, notre mission consiste à aider les “It was our mission from the beginning to support people wanting to complete their studies in the mining indus- personnes qui désirent effectuer leurs études dans le secteur minier, » souligne Ian Turner, trésorier de la section. « C’était la meilleure façon try,” says Ian Turner, Montreal branch treasurer. “This was de créer un fonds de bourses d’études à la fois durable et compatible the best way to create a scholarship fund that would be avec notre mandat. » sustainable and would support our mandate.”

Cette décision offre plusieurs avantages à la section de Montréal.

The decision offers myriad benefits to the CIM Montreal Branch. Registered as a non-profit organization, CIM can L’ICM, qui est enregistrée en tant qu’organisation sans but lucratif, ne peut ni accumuler des fonds ni émettre de reçus d’impôt en neither accumulate funds nor issue tax receipts for donaéchange de dons. La FCMM, créée par des membres de l’ICM tions. However, CMMF, created by CIM members in 1972 en 1972 pour aider aux études et promouvoir l’industrie minière, est to support education and to promote the mining industry, un organisme de charité enregistré qui peut récolter des dons et is registered as a charitable organization, so it can both colémettre des reçus d’impôt à ses donateurs. Le fonds commun de la lect donations and issue tax receipts to donors. CMMF’s pooled fund also offers a guaranteed rate of return, and all FCMM offre aussi un taux de rendement garanti, et la fondation se chargera de préparer tous les formulaires nécessaires à la gestion paperwork associated with managing pooled funds, such des fonds communs, comme le formulaire T4A. as T4As, will be handled by the foundation. « C’est une manière simple et efficace de diversifier nos pro“It was a simple and efficient way to expand our scholgrammes de bourses, » précise M. Turner. « Nous sommes très impresarship programs,” says Turner. “We are very impressed with the way CMMF is handling the funds.” While CMMF sionnés par la façon dont la FCMM gère les fonds. » Si la FCMM s’occupe de la gestion de l’argent, le comité de sélection des récipientakes care of the money, scholarship winners are selected daires des bourses est composé de représentants de la section de by a committee with representatives from the CIM MonMontréal de l’ICM. treal Branch.

La FCMM acceptera et gérera les fonds donnés par toute section CMMF will accept and manage funds contributed by any CIM branch or society, as long as the monies are com- ou société de l’ICM, dans la mesure où ceux-ci sont utilisés dans le respect de la mission de promotion de l’industrie et d’aide aux études de patible with the foundation’s mission to promote the industry and support education. Funds can be alotted for la fondation. Les fonds peuvent être destinés à des programmes programs like scholarships or for financial support for stu- comme des bourses ou un soutien financier aux étudiants qui désirent participer à des événements de l’industrie. dents to attend industry events.

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“The use of the funds is up to the owners of the money,” explains Glenn Clark, CMMF president. “The programs that are decided upon will be advertised along with other programs that are already in place. This extra exposure will be good for the programs and also for mining in general.”

Two of CIM’s technical societies, the Canadian Mineral Processors Society and the Metallurgy and Materials Society, have also contributed to CMMF’s fund.

“We would like to see the pooled fund spread across Canada,” says Turner. “We recommend to any branches that are able to contribute take part. This helps transform depleting scholarship programs into sustainable scholarships.” CIM To find out more about the pooled fund, contact Serge Major, director of finance and administration, CIM, at smajor@cim.org.

« La manière dont les fonds seront utilisés est décidée par leur propriétaire, » explique Glenn Clark, président de la FCMM. « Les programmes choisis seront promus avec ceux qui sont déjà en place.

Cette visibilité supplémentaire sera bénéfique pour les programmes comme pour l’industrie minière en général. » Deux des sociétés techniques de l’ICM, la société Canadian Mineral Processors et la société Metallurgy and Materials, ont déjà offert une contribution au fonds de la FCMM. « Nous espérons voir le fonds commun s’étendre à tout le Canada, » souligne M. Turner. « Nous recommandons à toutes les sections de participer dans la mesure de leurs moyens. Cela aidera à assurer la durabilité des programmes de bourses qui s’épuiseraient autrement. » ICM

Pour en savoir plus sur le fonds commun, vous pouvez écrire à Serge Major, directeur des finances et de l’administration de l’ICM, à l’adresse smajor@cim.org.

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CIM community Distinguished Lecturer

Time to take control Philip Thwaites sheds light on importance of automation in process control

By Alexandra Lopez-Pacheco

Philip Thwaites began his career as an engineer in mineral technology after graduating from Imperial College London’s Royal School of Mines in 1980. He has since worked at the Kidd Creek metallurgical site and the Norwegian Nikkelverk nickel refinery and is currently manager of the process control group at the Xstrata Process Support Centre, where he also leads a process engineer in training program for Xstrata Canada. In his presentation, “Manual control, process automation – or operational performance excellence?

What is the difference?” he focuses on the important role automated process controls play in improving efficiencies.

CIM: Why is automation in process controls such an important issue for the industry?

Thwaites: Every owner wants to be as efficient as possible so that they get the best bottom line, the highest grade or recoveries and the maximum returns. In essence, this is what can be achieved through effective use of automation and process controls. If you don’t have the highest minerals recovery possible, these are losses every day. If your final concentrates consume too much energy, these are energy losses; if you use too many chemicals, these are chemical losses that affect the bottom line.

CIM: Can you explain how automation and process controls can help improve efficiencies?

Thwaites: As a controls engineer, I don’t see a pump as just a pump. I see where it is operating on its operating curve as part of the whole system. Taking all of these things into consideration can tell me if the pump is operating efficiently.

Through better process control we can tighten up temperatures, flows, pressures, chemical additions, power usage and so on. If processes are tight and automated, they are more efficient and easier to operate.

CIM: What is the return on investment?

Thwaites: The cost is minimal, but the return on investment is massive. At the former Kidd Creek metallurgical site, we took advantage of Ontario Hydro’s time-of-day and seasonal rates by programming them into the computer to automate the power control for the whole metallurgical site. In five years, with no loss of production, we saved $17.6 million. We chose to control the entire site’s power load on a minute-by-minute basis and to shift as much production as we could to cheaper, off-peak hours.

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Nowadays industrial power costs are more than double, so any strategy to control power and to shift production to lower-rate periods can be extremely beneficial. Unfortunately, this is rarely taken into consideration in a new plant design.

CIM: How widely in place is effective use of automation in process controls at mining operations?

Thwaites: Seventy-five per cent of all industry assets are under process control, yet more than 60 per cent of process control loops are underperforming because either they were not set up properly or are not being properly maintained.

Control engineers go in and identify problems with control loops. We see many examples of improperly set-up control loops, which I talk about in my presentation. I use one example of a flotation level controller in which retuning – and use of the correct integral value – illustrates the benefit of tighter control and bias elimination. A bias means the operator has to memorize that the target set point is not offset on this controller.

When this is done, we can move to more advanced control – where we push to the limits of the process, or minimize consumables, power, chemicals, steel, and so on – thus making the business parameters more profitable.

CIM: What do you think it will take for the industry to truly embrace best practices in this area?

Thwaites: The industry does very well in terms of sharing experiences. CIM’s events are a prime example and are incredibly important. The research groups and universities are very much on the sidelines, but they are important because they have to understand what industry requires. We need educated control engineers. The suppliers of the control system and the operations team are also crucial.

Teamwork is essential – both at a plant and at an industry level. Within the plant, we need management to support the project. For the industry, it’s going to take teamwork involving universities, suppliers of the control systems and instrumentation, as well as those out in the field. CIM

TO BOOK A DISTINGUISHED LECTURER visit www.cim.org, call (514) 939-2710, or email dist_lecturer@cim.org.

POUR DEMANDER UN CONFÉRENCIER, visitez www.cim.org, téléphonez au (514) 939-2710, ou envoyez un courriel à dist_lecturer@cim.org.

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CIM community Committee Activity

Creating the mindset for operational excellence MSGC helps develop global mining standards and best practices

By Heather Ednie As today’s mine operations are challenged to become increasingly efficient, productive and responsible, the need to standardize processes, technologies and tools grows. The CIM Mining Standards and Guidelines Committee (MSGC) was formed last spring, with a mandate to help companies address this need.

Since then, MSGC has rapidly gained recognition in the industry, and already has several projects underway and more initiatives in the works.

MSGC was divided into six working groups, each focused on developing initiatives for a specific area. Among the projects driven by these groups, two promise results for early next year. The Situation Awareness working group’s project, Situation Awareness and Common User Interface for Large Excavators, will result in a system prototype to be openly shared with the industry. Also, efforts to standardize access to data from onboard mobile mining equipment are moving ahead with multi-stakeholder collaboration facilitated by two MSGC working groups: Onboard Technology and Connectivity, and Onboard Data

and Access. Currently, efforts are focused on benchmarking successes in other industries, such as the fixed plant and petroleum industries, and on determining stakeholders’ data requirements, as well as on what is already available in existing onboard systems.

MSGC activities will continue to gain momentum through 2013, as more companies join the committee and projects move forward. The committee will strengthen awareness about the implementation and the use of standards and guidelines in mining through various avenues, including implementation of a social media strategy, independent workshops, contributions to media and sessions at industry conferences like the SME Annual Meeting & Exhibit, the 2013 CIM Convention and the 2013 World Mining Congress. The committee will also host a joint MSGC-EMESRT conference next August. Finally, a Global Mining Standards Scoping Study that maps all standards applicable to operational mining will be launched in collaboration with the Canadian Standards

Association. The study aims to identify gaps where standards or guidelines development would benefit the industry.

As a global organization bringing together all stakeholders for the mining community, MSGC has three main objectives: to be a knowledge centre and information hub; to encourage and enable collaboration and communications; and to facilitate and drive both the implementation and the development of standards and guidelines for the global mining industry. The committee’s efforts are supported by key partners, including CIM, the Society for Mining, Metallurgy and Exploration (SME) and the Surface Mining Association for Research and Technology (SMART). Also, participating companies contribute funding and participate in MSGC events, communications and working groups. Corporate participation grew to over 40 mining companies, suppliers and consultants in early November. CIM More information is available on the MSGC website: www.globalminingstandards.org.

MSGC working groups and activity highlights for 2013 Asset Management: To develop proposed common definitions for use of information in mine operations and maintenance.

Onboard Data and Access: To compile a Data Dictionary of onboard access points and a database of existing systems used onboard mobile equipment.

Onboard Technology and Connectivity: To collect case studies from other industries and information on protocols, such as OPC and J1939, in order to identify how all stakeholders can access data from onboard devices.

Situation Awareness: The Common User Interface (large excavators) project will be completed by the end of 2012. In 2013, steps for roll-out to industry will be outlined and further research activities will be identified.

The Situation Awareness working group is leading R&D efforts to streamline data to appear on one, standardized screen in all shovel cabs.

Underground Mining: To map data transfer across the generic mining workflow, identify opportunities to derive the most value and support onboard data access projects with underground environment experience.

Operational Safety and Risk Management: To continue work on leading indicator development as a means to support best practices and to benchmark corporate safety standards.

December 2012 / January 2013 | 79

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Global Leadership...the Courage to Change Leadership mondial : Oser le changement OPERATIONS OPERATIONS & MAINTENANCE BBEST EST PPRACTICES RACTICES

LEADERSHIP IN IINVESTMENT NVESTMENT & MANAGEMENT

NEW FRONTIERS/ OPEN INNOVATION INNOV VATION T

PLANETTAR PLANETARY A Y& TTERRESTRIAL ERRESTRIAL MINING M INING SSCIENCES CIENCES

MassMin II Matt Pierce

Project Showcase: Deep Sea Exploration and Future Mining Steve Scott

Opening Remarks, Keynotes and SRR Scholarship Dale Boucher, Angel Abbud-Madrid

GLOBAL GEOLOGICAL PUZZLE

MONDAY, MONDAY, MAY MAY 6 OPENING PLENARY - Mark Kelleyy, Moderator

AM

PM

SOCIAL & ENVIRONMENT TA AL ENVIRONMENTAL RESPONSIBILITY

The Operational Excellence Mindset Tim Skinner

The Development Challenge: Leadership ***

ESR Plenary Janice Zinck, David Forrester TUESDAY, TUESD AY, MA MAY AY 7

AM

PM

Lessons Learned: Maintenance & Engineering Dick McIvor, Ben Kubica

Project Showcase: Preparing Your Project For Financing Richard Jundis

Sustainable Mining in Remote & Extreme Environments Chris Twigge-Molecey

Bulk Mining Leading Practise in Paste Delivery and Sequence Extraction ***

Mobile Equipment Advances Peter Frasunkiewicz

Legal / Commercialization Sherry Schmidt

Underground Mining Challenges in Saskatchewan Robert Carey

Lessons Learned: The Shifting Sands of Shareholder Value Mauro Chiesa

Lessons Learned: Learning from our Legacy Alistair Kent

Bulk Mining Material Movements Shaft and Declines ***

Processing/ Recovery Technologies ***

Business Case for Space ISRU Sherry Schmidt

Project Showcase: Maintenance and Operational Advancements in Mining Marcel Djivre

Women In Mining Catharine Shaw, Melanie Sturk

Project Showcase: Ring of Fire Leanne Hall

Leadership in Orebody Modeling Jason Dunning

Exploration Innovation ***

Mission Concepts Sherry Schmidt

Resource Prospecting Leslie Gertsch

Mining / Drilling / Excavation Sherry Schmidt

WEDNESDAY, WEDNESD AY, MA MAY AY 8

Underground Mining Innovations that are Changing the Way We Mine Donna Cortolezzis

MANAGEMENT DA AY & FINANCE DAY

Can You Risk a Risky Project?

Jane Spooner

AM

Innovation in Mining Automation Trang Tran

Read the Fine Print (Get Yourself a Lawyer) Steve Suarez

Water: Perception or Reality Mireille Goulet, Ian Middleton

Mega Deposits and their Geology ***

The Next Best Energy Solutions for the Mining Sector Mel Harju, AndrĂŠ Lemay

Young Leaders: Mining Projects and Human/ Indigenous Rights Simritjeet Grewal, David Clarry

Bulk Mining: Open Pit Costs Related to Size, Shape, and Productivity Martin Grenon

Innovations in Risk Management ***

Keeping Track of Cost Estimates Larry Smith

Resource Processing Sherry Schmidt

Management & Finance Day - Panel Moderator: David Jennings

Resource Processing Sherry Schmidt

PM

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THE BUSINESS OF MINING HAPPENS AT CIM L’INDUSTRIE MINIĂˆRE, C’EST L’AFFAIRE DE L’ICM When it comes to our program, we’re all business!

Our industry continues to face the challenges of managing tremendous growth against the backdrop of a shifting global political landscape and an unpredictable super-cycle. Companies are reorganizing corporate assets and seeking out new opportunities, while at the same time recalibrating to respond more nimbly to a dynamic M&A environment, )('&(%&$#"!! % &!'% $&% !%# !%! $#"! # ! ! ! '(&$ ! ! ! !! ! ! ! ! !

Pleins feux sur l’excellence en exploitation L’industrie minière continue de devoir gÊrer une croissance remarquable ! ! ! ! ! # $% !' %#" %#& ! &! (#! ( !' ' ! ! ! ! ! ! ! %# !(#!' #& & ! ! $&$ ( ! $ $ $ ! (&! #! %#&! ( !%'&$ ! &! #!' ' %#&! !# ( %( ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! (' ! ! #& $ ! % ( & #&! !&$ !% #! ! %"$ ! ( ! & #&!! %(!! $ $ (! #% ! $ ( ! ! ( $ # ! &!%' ($ $&$ # !%( !)('&(%&$ # ! (! ! ! ! ! ! ! ! ! % ' ! !'% $&%( ! &! ! %! ( ! ! !'% ! $ $" %#& ! ! ! !! ! ! ! ! !

Our rigorous and comprehensive technical program will address “The Courage to Change� with topics such as Strong Leadership Skills, Change Management and Business Financing. Our plenary session, %! ! ' %#" ! & #!" % ! % ! $ ! $ !' #& &! $#&$#"! ! ! ! ! ! ! ! ! ! ! to the paradigm shifts we face. In short, our 2013 program will be all business.

& ! " % ! !& ' #$ ( ! $" ( ( ! &! %( &$ ! %! !& ! ! ! ! ! ! ! !! ÂŤLeadership mondial : Oser le changementÂť et portera sur des sujets tels ( ! % &$&( !%(! % $ ! %!" &$ #! (!' %#" ! ! ! ! ! ! ! #&! &! ! #%#' ! ! ! #&!!

#& $ ! & ! %#' ! #$ !(#! ' %#" ! ! $#& ! ! ( !%( %'$ ( ! ! ! ! ! ! ! ! ! ! ! ! #& ! $ $" %#& ! (! ! ! ! # ! #&$ ! %! ''% $ #! % ! ! ! ! ! ! ! ! $ '%&$ # !! ! % % $" ! !%( ( !# ( ! # ! # ! ! ! !

Your success is CIM’s business.

Registration opens on December 15.

L’ICM se prÊoccupe de votre succès.

La pÊriode d’inscription dÊbute le 15 dÊcembre.

068-091 CIM Community v20_Layout 1 2012-12-17 10:41 AM Page 82

CIM community Scholarship Winners

What makes students tick?

CMMF scholarship winners reveal what fuels their passion for mining

By Lynn Elizabeth Moore

Every year the Canadian Mining and Metallurgical Foundation (CMMF) awards an array of scholarships to the most dedicated mining engineering and geology students in Canada. According to CMMF manager Deborah SmithSauvé, a student’s passion for the industry dictates whether he or she is selected for a scholarship.

“We are looking for students who will be really happy to be in mining at the end of the day,” she says. “We are not looking for top marks, so much as for people who are passionate.” Smith-Sauvé points out that while applicants must be in good academic standing to qualify, winners are chosen largely based on their personal essays and their letters of recommendation. “These letters really show us if they are committed to the industry,” she explains.

CIM Magazine tracked down three of this year’s scholarship winners to find out what makes them passionate about mining.

Nicholas Joyce – University of British Columbia (UBC) $2,000 Scotiabank and Scotia Capital Markets Scholarship* Nicholas Joyce has a solid understanding of economics along with three seasons of field experience in resource exploration, but he is still seeking the link between exploration milestones and stock market success.

“I have spent several years trading mining stock on North American exchanges in an effort to gain an appreciation of market forces as they pertain to stock price valuation in the industry,” he says. “I’m realizing that good news in the field doesn’t mean that the stock is going up.”

Joyce started university with a math honours and physics degree in mind, but the grandson of two geologists changed course and is poised to graduate from UBC with a B.Sc. in geology and a minor in economics.

In 2010, four weeks of persistent door-knocking landed the UBC student an interview with Bill Wengzynowski, former president of Archer, Cathro and Associates Ltd., and a summer job as a labourer in the Yukon.

“In the evenings, Wengzynowski would mentor me as a geologist,” Joyce recalls. Subsequent summer jobs with the 82 | CIM Magazine | Vol. 7, No. 8

firm saw Joyce leading a diamond drilling program and working as a prospector.

Joyce is considering going to work as a mining sector analyst before beginning a master’s degree in geology. *The Scotiabank and Scotia Capital Markets Scholarship was established in 1998 on the 100th anniversary of CIM. Each year, a $2,000 scholarship is available to a geology student in Canada.

Lindsey Taylor – Queen’s University $2,000 Caterpillar and its Canadian Dealers Scholarship* Lindsey Taylor arrived at Queen’s University in Kingston, Ontario, intent on becoming an engineer, but unsure about how to combine her passion for the environment with her interest in engineering.

A first-year geology course got her thinking about mining and, later, a visit to the mining faculty’s open-house event sealed her fate.

“They were so open and welcoming,” Taylor recalls. “They also talked about how global the industry was and about the opportunities for travel.”

Now in her final year of mining engineering at Queen’s, Taylor is intent on helping society “get the resources it needs in the most economical way, while engaging with communities and minimizing the ecological footprint of the operation.”

During recent summers, the Toronto native has worked at PotashCorp.’s Rocanville underground potash mine in Saskatchewan and visited Inmet Mining Corp.’s development project in Panama while working for the company’s Torontobased design team. A class field trip in the fourth year of her engineering program took her to several mines in Chile, including Codelco’s El Teniente underground copper mine.

Taylor intends to focus her career on mine reclamation and safety. *The Caterpillar and its Canadian Dealers Scholarship was established in 1998 on the 100th anniversary of CIM. Each year, a $2,000 scholarship is available to a mining engineering student in Canada.

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CIM community

Sidney Mamakwa – Cambrian College $1,000 Taking Flight Scholarship* According to Sidney Mamakwa, the doorway to his dream career opened in 2009 while he was working at Goldcorp’s Musselwhite mine in northwestern Ontario, near his First Nation community of Wunnummin Lake.

Mamakwa’s interest in mining deepened as he learned of the many talents and skills required in the industry during his year as a civil technician in the mine’s project office. Engineers and geologists told Mamakwa about their professions and encouraged him to pursue a career in mining.

He enrolled in the mining engineering technician program at Cambrian College in Sudbury where, upon his graduation in May 2012, he was awarded the Governor General’s Academic Medal. He graduated with a 95 per cent average and was “a model student who regularly helped others with their courses,” according to the citation that accompanied the medal.

Mamakwa, 32, who has twice attended the annual Prospectors and Developers Association of Canada conference, is closely following the Oyu Tolgoi copper project in Mongolia. He wants to focus his career on new mine construction projects and on the Aboriginal consultation process. He has returned to Cambrian for an engineering technology program diploma and is considering enrolling in a university mining program. CIM *The Taking Flight Scholarship was established in 2009 to encourage Aboriginal students interested in a career in mining. Up to four $1,000 scholarships are available each year.

FOR MORE INFORMATION ABOUT THE SCHOLARSHIPS CMMF OFFERS VISIT WWW.CMMF72.ORG

December 2012 / January 2013 | 83

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CIM CALENDAR OF EVENTS 2013 CALENDRIER DES ÉVÉNMENTS DE L’ICM 2013 THE COMMUNITY FOR LEADING INDUSTRY EXPERTISE LA COMMUNAUTÉ POUR UNE EXPERTISE DE PREMIER PLAN

CONFERENCES/CONGRÈS 45th ANNUAL CANADIAN MINERAL PROCESSORS OPERATORS’ CONFERENCE 45e CONGRÈS ANNUEL DES MINÉRALLURGISTES DU CANADA (CMP 2013) January 22-24, Ottawa, ON www.cmpsoc.ca

CIM CONVENTION CONGRÈS DE L’ICM (TO13) May 5-8, Toronto, ON www.cim.org/toronto2013

23rd WORLD MINING CONGRESS & EXPO (WMC 2013) August 11-15, Montreal, QC www.wmc-expo2013.org

30th INTERNATIONAL SYMPOSIUM ON AUTOMATION AND ROBOTICS IN CONSTRUCTION AND MINING (ISARC 2013) August 11-15, Montreal, QC www.isarc2013.org

MAINTENANCE ENGINEERING, MINE OPERATOR’S CONFERENCE 2013 (MEMO 2013) September 29-October 2, Kamloops, BC www.memo2013.cim.org

3rd ANNUAL SYMPOISUM ON SAFETY AND RELIABILITY IN THE MINING AND RESOURCES INDUSTRIES October 20-22, 2013 Hilton Toronto, Toronto, Ontario, Canada www.cim.org

52nd ANNUAL CONFERENCE OF METALLURGISTS LE 52e CONGRÈS ANNUEL DES MÉTALLURGISTES (COM 2013) October 27-31, Montreal, QC www.metsoc.org

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

www.cim.org

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DISTRICT

1

NOVA SCOTIA, NEW BRUNSWICK, PEI, NEWFOUNDLAND & LABRADOR

HARRICANA CONTACT: MARCEL JOLICOEUR (MARCEL.H.JOLICOEUR@GENIVAR.COM) 16 JANVIER

LABRADOR

20 FÉVRIER

CONTACT: MARK BLAKE (MARK.BLAKE@IRONORE.CA)

15 MARS

Events still in planning stage

24 AVRIL MAI

NEW BRUNSWICK CONTACT: SEAN MCCLENAGHAN (SEAN.MCCLENAGHAN@GNB.CA) FEBRUARY 8

MARCH 15-16 SEPTEMBER 19-21 NOVEMBER 4

NOVEMBER 5

CIM student-industry meet and greet, University of New Brunswick, Fredericton Potash Cup – Curling bonspiel, Sussex 38th Branch Annual Convention, Bathurst 2013 AGM and Distinguished Lecturer presentation, Delta Hotel, Fredericton CIM student-industry meet and greet and Distinguished Lecturer presentation, University of New Brunswick, Fredericton

THE MINING SOCIETY OF NOVA SCOTIA CONTACT: FLORENCE SIGUT (FLORENCE@NS.SYMPATICO.CA)

2013 AGM, Inverary Inn, Baddeck General Meeting 2013, Halifax

JUNE 6-7 FALL

1 JUIN

MONTRÉAL CONTACT: MARTIN POIRIER (MPOIRIER@SEMAFO.COM) 29 AOÛT

Distinguished Lecturer presentation and Alexander Murray Geological Club winter lecture, Memorial University Geological Association of Canada lobster boil Mineral Resources Review 2013, Delta St. John’s Hotel & Conference Centre

FEBRUARY

SPRING NOVEMBER

Tournoi de golf annuel, Montréal

SOUPER CONFÉRENCE, MCGILL FACULTY CLUB, MONTREAL

Janvier, février, mars, avril, septembre, octobre, novembre QUÉBEC CONTACT: LOUIS MARCOUX (LOUIS_MARCOUX@GOLDER.COM ) 26 JANVIER

25 FÉVRIER 25 MARS

6 SEPTEMBRE

NEW FOUNDLAND CONTACT: LEN MANDVILLE (LENMANDVILLE@GOV.NL.CA)

Mine Niobec Société d’exploration diamantifère Stornoway Vin et fromage, Hôtel Forestel Projet Zeus, Exploration Matamec Rencontre de la section locale, Val d’Or Tournoi de golf annuel, Club de golf Belvédère

Conférence de Steve Thivierge de Niobec, Université Laval Conférence, sujet à déterminée, Université Laval Assemblée générale annuelle et soirée étudiante, lieu à déterminer Tournoi de golf annuel, Club de Golf du Lac St-Joseph

QUEBEC NORD-EST CONTACT : PATRICE TREMBLAY (PATRICE.TREMBLAY@RIOTINTO.COM) 19 DÉCEMBRE

Remise de bourses étudiantes de l’ICM et dégustation bière et saucisse, Centre des congrès, Sept-Îles

PRÉSENTATIONS TECHNIQUES, CENTRE DES CONGRÈS, SEPT-ÎLES

21 janvier, 18 février, 18 mars, 22 avril, 20 mai ROUYN-NORANDA

DISTRICT

2

QUEBEC

CONTACT : CLAUDE GAGNIER (RN@ICMRN.CA) 16 JANVIER

AMOS

HIVER

CONTACT: ROBERT CLOUTIER (ROBERT@ROYALNICKEL.COM) 29 JANVIER

7 FÉVRIER 19 FÉVRIER 19 MARS 6 AVRIL AVRIL 25 AVRIL

11 JUIN MAI ÉTÉ

Conférence sur la gestion des eaux souterraines, UQAT Journée minière, Amos Conférence de Knick exploration, Amos Conférence de Patrick Sévigny de QMX, Amos Sortie à la cabane à sucre, lieu à déterminer Conférence, sujet à déterminer, Amos Conférence de Pierre-Philippe Dupont de RNC et visite industrielle Visite de Canada Lithium, Amos Conférence de Patrick Godin de Stornoway, Amos Tournoi de golf de l’ICM, lieu à déterminer

CHAPAIS-CHIBOUGAMAU CONTACT: PATRICK HOULE (PHOULE@STORNOWAYDIAMONDS.COM)

22 FÉVRIER

HIVER/PRINTEMPS 20 MARS 23 AVRIL

AVRIL/MAI

24-25 AVRIL 30 AVRIL

MAI SEPTEMBRE 17 SEPTEMBRE AUTOMNE

Activités en cours de planification NOVEMBRE AUTOMNE

Éminent conférencier de l’ICM : Cheryl Allen, UQAT Formation avec Dr. M. Bardoux, lieu à confirmer Éminent conférencier de l’ICM: Wayne Goodfellow, UQAT Formation avec Dr. M. Doggett, lieu à confirmer Conférence de Martin Bergeron, Aurizon, UQAT Conférence de L.N. Djon, North American Palladium, UQAT Activités de la semaine minière 2013, lieu à confirmer Formation avec Dr. Éric Marcoux, lieu à confirmer Conférence de G. Roy de Xstrata Zinc et N. Champigny de Donner Metal, UQAT Conférence de Dr. Thomas Monecke, UQAT Conférence de Dr. Howard Poulsen, UQAT Conférence de Dr. Tikou Belem, lieu à confirmer Conférence de Dr. L. Corriveau, de la Commission Géologique du Canada, UQAT Conférence de P. Turcotte, UQAT Souper d’huîtes annuel, lieu à confirmer

December 2012 / January 2013 | 85

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SAGUENAY

SEPTEMBER 13

Annual golf tournament, Highview golf course

CONTACT: STEVE THIVIERGE (STEVE_THIVIERGE@IAMGOLD.COM)

Éminent conférencier de l’ICM : à déterminer, UQAC 5 à 7 et l’Assemblée annuelle avec conférence locale, UQAC Éminent conférencier de l’ICM : à déterminer, UQAC Forum régional de discussion “Bar des mines,” Chicoutimi Visite de la carrière Granite Moreau, Lac St-Jean Vin et fromage ICM/CONSOREM, Chicoutimi Party de crabes, Chicoutimi Oktoberfest, Chicoutimi Party d’huîtres, Chicoutimi

JANVIER FÉVRIER

FÉVRIER AVRIL

AVRIL AVRIL AVRIL OCTOBRE NOVEMBRE

THETFORD MINES CONTACT: NORMAN BOUTET (NORMAND.BOUTET@CGOCABLE.CA)

Tournoi de curling et assemblée annuelle, Thetford Mines

26 JANVIER

OTTAWA CONTACT: JOHN UDD (JUDD@NRCAN.GC.CA)

Events still in planning stage.

PORCUPINE CONTACT: SHANNON CAMPBELL (RUGGER09@HOTMAIL.COM) JANUARY 19 MARCH APRIL

JUNE AUGUST 17

NOVEMBER DECEMBER

Curling bonspiel, Timmins Speakers night, Timmins Spring break-up ball in conjunction with Porcupine Prospector and Developers Association, Timmins Speakers night, Timmins Annual Porcupine CIM golf tournament, Hollinger Golf Course Steak and lobster social, Timmins AGM and Christmas social, Timmins

SUDBURY CONTACT: CHRISTINE BERTOLI (CBERTOLI@XSTRATANICKEL.CA)

DISTRICT

3

ONTARIO (East of the 86th meridian)

COBALT CONTACT: TODD A. STEIS (TODD.STEIS@MTI.CA) JANUARY AND SEPTEMBER

Seafood night, Haileybury

FEBRUARY 9 APRIL 18

JUNE 14 AUGUST 17

MONTHLY MEETINGS, HAILEYBURY

OCTOBER 17

February, March, October, November

NOVEMBER 21

Winterlude dinner & social, Caruso Club CIM Distinguished Lecturer: Phil Thwaites, Dynamic Earth Annual lobster dinner, Caruso Club Rudolph Kneer Memorial golf tournament, Lively Golf & Country Club, Lively Student wing night, Dynamic Earth Social evening, Dynamic Earth

GENERAL MEMBERSHIP MEETINGS, DYNAMIC EARTH

GREATER TORONTO AREA WEST

January 17, March 21, September 19

CONTACT: CATHARINE SHAW (CATHARINE_SHAW@GOLDER.COM) FEBRUARY 7

JUNE 13 SEPTEMBER 4

Membership drive cocktail reception, Otello’s Banquet & Conference Centre, Oakville CIM GTA West Golf Tournament, location TBD Canada Southern Africa Chamber of Business/CIM GTA West – Cheese and wine cocktail at Hatch, Oakville

SUDBURY GEOLOGICAL DISCUSSION GROUP CONTACT: PHIL THURSTON (PTHURSTON@NICKEL.LAURENTIAN.CA)

Event still in planning stage.

TORONTO CONTACT: TOM RANNELLI (THOMAS.RANNELLI@BMO.COM) JANUARY 17

LUNCHEON MEETINGS, OTELLO’S BANQUET & CONFERENCE CENTRE, OAKVILLE

March 20, April 24, May 29, October 23, November 27

FEBRUARY 7 FEBRUARY 21

HAMILTON

MARCH

CONTACT: SHANNON CLARK (SHANNON.CLARK@ARCELORMITTAL.COM)

Events still in planning stage.

NORTHERN GATEWAY CONTACT: TOM PALANGIO (TOM.PALANGIO@WIPWARE.COM) FEBRUARY 21 APRIL 28-4 JULY 29-AUGUST 2 AUGUST 19-23

Seafood mixer, Clarion Pinewood Mining Week, North Bay Teachers mining tour, session 1, North Bay Teachers mining tour, session 2, North Bay

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

AUGUST 28 SEPTEMBER 19 OCTOBER 17 DECEMBER 12

Luncheon, National Club AGM, Offices of the PDAC Student-industry luncheon, Royal York Hotel PDAC-CIM national joint luncheon, Convention Centre Frank Greico Memorial golf tournament MES-CIM Toronto joint luncheon, National Club Taste of Toronto, networking event, National Club SNC-Lavalin Hamilton lectures series, National Club

TORONTO CIM BRANCH LUNCHEONS, NATIONAL CLUB

April 18, May 23, June 6, November 21

068-091 CIM Community v20_Layout 1 2012-12-17 10:41 AM Page 87

DISTRICT

4

ONTARIO (West of the 86th meridian, Manitoba,

Conference of Dr. Philip Currie, Alberta’s researcher & dinosaur guru, Spousal night upstairs in Harriot Winspear room, University of Alberta Faculty Club

FEBRUARY 4

Saskatchewan & Nunavut) RED LAKE

BRANCH MEETINGS, UNIVERSITY OF ALBERTA FACULTY CLUB

CONTACT: CARMEN STOREY (CARMEN.STOREY@ONTARIO.CA)

March 4, April 8

Events still in planning stage.

FORT MCMURRAY CONTACT: NAGENDER DASYAM (DASYAM.NAGENDER@SYNCRUDE.COM)

SASKATOON CONTACT: JEFF SPENCE (JEFFSPENCE@SASKTEL.NET)

Environmental (safety) night, Sheraton Hotel Uranium night, Sheraton Hotel Student paper night, Sheraton Hotel Annual spring social, Sheraton Hotel Annual golf tournament, Willows Golf and Country Club

JANUARY 17 FEBRUARY 28 MARCH 21 APRIL 18 JULY 5

CIM Distinguished Lecturer: Phil Thwaites, Bob Lamb Center Curling funspiel, MacDonald Island Park CIM golf tournament, Fort McMurray Golf Club

FEBRUARY 20

MARCH JUNE 22

TECHNICAL TALKS, BOB LAMB CENTRE

January 17, April 16, May 14, September 17, November 19, December 10

SASKATOON GEOLOGICAL SECTION

YELLOWKNIFE

CONTACT: CORY KOS (CORY_KOS@CAMECO.COM)

CONTACT: DAVID WATSON (DAVID_WATSON@GOV.NT.CA)

Events still in planning stage.

Events still in planning stage.

THOMPSON CONTACT: IGNE ROBINSON (INGE.ROBINSON@VALE.COM)

DISTRICT

6

BRITISH COLUMBIA AND YUKON

Events still in planning stage.

CROWSNEST CONTACT: JEFF COLDEN (JEFF@COLDEN.CA)

THUNDER BAY CONTACT: MARK SMYK (MARK.SMYK@ONTARIO.CA)

Mineral Resource investment showcase, Valhalla Inn Greenstone Gold short course, Masonic Lodge Annual curling funspiel, Fort William Curling Club Annual student paper night, Airlane Hotel and Conference Centre Mineral Resource investment showcase, Valhalla Inn Mineral Resource investment showcase, Valhalla Inn Annual Christmas cocktail party, Tony and Adam’s

JANUARY FEBRUARY MARCH APRIL

SEPTEMBER NOVEMBER DECEMBER

JUNE

NORTH CENTRAL BC CONTACT: JOHN DAVIDSON (JODAVIDSON@SIMPLEXGRINNELL.COM) FEBRUARY 23 JUNE 19-20

Lecture of Christy Smith from Taseko, Williams Lake Lecture of Brian Kynoch from Imperial Metals, Prince George

SOUTH CENTRAL BC CONTACT: RICHARD WEYMARK (RICHARD.WEYMARK@TECK.COM) SEPT. 29-OCT. 2

WINNIPEG

Annual golf tournament, Fernie

MAY 11

SCBC Branch hosts MEMO 2013, Kamloops Kamloops Mining Day

CONTACT: ED HUEBERT (EDHUEBERT@MINES.CA)

Events still in planning stage.

TRAIL CONTACT : MARVIN NEUFELD (MARVIN.NEUFELD@TECK.COM)

DISTRICT

5

ALBERTA, MACKEZIE DISTRICT & NWT

APRIL

AGM, Trail

TECHNICAL PRESENTATIONS, TRAIL

February, May, September, November

CALGARY CONTACT: TERESA LAVENDER (TLAVENDER@NORWESTCORP.COM)

VANCOUVER

CALGARY CIM BRANCH LUNCHEONS, TURNER VALLEY ROOM

CONTACT : KEN ROBERTS (KEN.ROBERTS@FLSMIDTH.COM)

January 16, February 13, March 13, April 10, May 15, June 12

FEBRUARY 21 NOVEMBER 14

EDMONTON CONTACT: TIM JOSEPH (TJOSEPH@UALBERTA.CA) SEPTEMBER 10

OCTOBER 1

NOVEMBER 19

DECEMBER 10

JANUARY 7

Conference of Stuart Middleton, AMEC, University of Alberta Faculty Club Conference of George Read, Shore Gold Inc., University of Alberta Faculty Club CIM Distinguished Lecturer: Cheryl Allen, Vale, University of Alberta Faculty Club Conference of Andrew Kaczmarek, Victoria Gold, University of Alberta Faculty Club Student awards & student speaker night with CIM president-elect Sean Waller, University of Alberta Faculty Club

Luncheon Marriott, location TBD, Vancouver Student nights, location TBD, Vancouver

LUNCHEONS, VANCOUVER

March 21, April 18, May 23, June 20, September 26, October 17

INTERNATIONAL LOS ANDES, CHILI CONTACT : (CIMLOSANDES@VTR.NET)

Events still in planning stage.

LIMA, PERU CONTACT : BERTRAND DE WINDT (BDEWINDT@STEPSUP.CA)

Events still in planning stage.

December 2012 / January 2013 | 87

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Hosted in Canada for the ďŹ rst time!

Oct. 27-31, 2013, MontrĂŠal, QC, Canada COM 2013 held with MS&T2013 brings together over 3,000 scientists, engineers, students and suppliers to discuss current research and technical applications.

Submit your abstract by March 15, 2013 to take part in this global forum of information exchange.

Check out our Twitter, LinkedIn, Facebook pages.

068-091 CIM Community v18_Layout 1 2012-12-13 2:54 PM Page 89

COM TOPICS INCLUDE: Materials, Processes for Aerospace Hydroelectric Turbine Manufacturing Ralph L. Harris Memorial Mineral Processing Research Light Metals for Transportation

Neutron Scattering Technology Cross-Pollination Magnesium Technologies Rare Earth Elements Hydrometallurgy: Materials & Equipment

Featuring short courses and a variety of industrial tours.

Trade Show includes over 150 Booths!

www.metsoc.org

068-091 CIM Community v18_Layout 1 2012-12-13 2:54 PM Page 90

Courtesy of/ courtoisie de MineralsEd

Thank you! Merci!

Your funds support: MineralsEd (formerly known as Mineral Resources Education Program of BC) • M4S: the educational show on Mining, Minerals, Metals and Materials • PDAC Mining Matters • CIM Distinguished Lecturers Series • Scholarships Vos dons appuient: M4S : le salon éducatif portant sur les Mines, Minéraux, Métaux et Matériaux • MineralsEd (anciennement Mineral Resources Education Program de la Colombie britannique) • PDAC Mining Matters • Programme des éminents conférenciers de l’ICM • Bourses

Courtesy of/ courtoisie de PDAC Mining Matters

Au nom de tous les membres de l’industrie minière, nous vous remercions d’avoir répondu en si grand nombre à notre Campagne de financement 2011. Votre générosité nous a permis d’amasser plus de 40 000 $ (excluant les dons spéciaux tels que les transferts de valeurs mobilières). Tous les dons reçus après le 31 décembre 2011 seront publiés dans le Rapport de FCMM qui paraîtra au printemps 2013, à moins que vous ne préfériez conserver l’anonymat.

Courtesy of/ courtoisie de M4S

On behalf of the members of the mining industry, we wish to thank you for responding so generously to our Giving Campaign 2011. Your contributions have helped us raise over $40,000 (excluding special gifts such as gifts of securities). All donations received after December 31, 2011, will be published in the spring 2013 CMMF REPORT, unless you request to be listed as anonymous.

40 years of service to the industry

40 ans de service envers l’industrie

CMMF has been actively supporting education and promoting the minerals industry for the past 40 years

La FCMM soutient activement l’éducation et assure la promotion de l’industrie des minéraux depuis 40 ans

The Canadian Mining and Metallurgical Foundation (CMMF) was established in 1972 as a charitable foundation “to create and support a strong program of educational and charitable activities directed towards improving the contribution of the Canadian minerals industry to the progress and well-being of Canada.”

La Fondation canadienne des mines et de la métallurgie (FCMM) a été fondée en 1972 comme organisme charitable pour « créer et soutenir un solide programme d’activités éducatives et caritatives visant à améliorer la contribution de l’industrie minérale canadienne au progrès et au bien-être du Canada. »

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

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Anonymous/anonyme (2) Mr. Michael J. Allan, FCIM Nyrstar Langlois Ltd. Mr. Glenn Clark, FCIM Corporation minière Osisko Mr. David Elliot Mr. Emmett J. Horne Inmet Mining Operation Les mines Opinaca Ltée Mines Agnico-Eagle Ltée Mr. Gordon Slade, FCIM Mr. Robert A. Spencer, FCIM M. et Mme Luc Sauvé M. Jean Vavrek, FCIM The Walmley Foundation

Anonymous/anonyme (1) BCP Construction of Hawaii Inc. Ms. Jennifer A. Clark Mr. George C. Coupland Mr. R. E. Gordon Davis Mr. Donald O. Downing, FCIM Mr. Allan D. MacTavish Mr. H. E. (Buzz) Neal, FCIM Mr. David S. Robertson

Anonymous/anonyme (1) Mr. Paul Marcus Blythe Ms. Patricia Dillon, FCIM Mr. Raymond N. Dudgeon Mr. Peter Ferderber M. Jean Fortin Mr. John R. Goode Mr. J. Lennart Hedlund Mr. Dale M. Hendrick & Ass. Mr. John Frank Hepburn Mr. David L. Johnston Mr. John Kiernan Mr. Rogers A. Ludgate Mr. Robert McIvor Mr. Willem J. Bernelot Moens Mr. Leland R. Norton Mr. John H. Parker Mr. Peter Stacey Mr. Howard R. Stockford, FCIM Mr. Chris Twigge-Molecey, FCIM Mr. Larry Stanley Urbanoski Mr. Howard J. Wiggett Mr. Donald J. Worth, FCIM

Anonymous/anonyme (2) Mr. John M. Anderson, FCIM M. Norman Anderson Miss Rosario M. Astuvilca Mr. G. Allan Baker Mr. Derek John Barratt Mr. William F. Bawden Mr. Robert Bell Mr. William Carl Berridge Mr. Robert H. Borst M. Don Bourgeois & Fils Mr. C.O. Brawner Ms. Anne Marie Briessenden Mr. R. Ronald Brown M. Robert Bryce, FCIM Mr. Alfons Buzas Mr. William A. Case Mr. Biswajit Chanda Mr. Edward H. Chown Mr. Curtis Clarke Mr. Donald W. Coates Mr. Edmund W. M. Cokayne Mr. Gerald E. Cooper M. David Corriveau Ms. Jamie Donovan M. René Dufour, FCIM M. Cyrille Dufresne Mr. Piers M. Ebsworth, Eng. Mr. Frederick A. Edwards Mr. David J. Emery Mr. Carl A. Freitag Mr. Daniel Gagnon Mr. Krasimir Georgiev Mr. Gordon R. Harris Mr. Daniel Hewitt Mr. Christian A. Hesse Mr. Chin Choi Ho Mr. Robert W. Hornal Mr. Michael J. Humphris Mr. Lawrence D.A. Jackson Mr. Juhan J. Kalmet Mr. Douglas Arthur Knight M. Pierre Lalande M. Eric Lavoie Mr. Max Lenarciak Mr. Geoffrey C. Marlow Mr. Alex McLean Mr. William McNeil, FCIM MineTech Int’l Limited Mr. Jack Mullins Mr. and Mrs. Jack McOuat, FCIM

Although a separate legal entity from the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CMMF was established and continues to be funded by CIM individual members.

Dr. Arthur Palmer M. Serge Perreault Mr. Robert Hugh Pinsent Mr. Yulo Perez Mr. Gary R. Rice M. Michel Rigaud Mr. Laurie E. Reed Mr. Harold E. Rudd Mr. Roy Salkus Mr. Terence F. Schorn Mr. Larry Seeley Mr. Colin Smith, FCIM Mrs. Jane Spooner Mr. William E. Stanley Mr. Michael P. Sudbury Mr. Peter Tarassoff, FCIM Mr. Tim J. Termuende Mr. Steele Tomlinson Mr. W. Anthony Triggs Mr. George Vooro Mr. Jack H. Walsh, FCIM Mr. Alan R. Watt Mr. Phillip Charles Walford Mr. A. James Walker Mr. William L. Wallace Mr. Douglas P. Walli Dr. Gus Van Weert, FCIM Mr. Andrew L. Weishar Dr. John O. Wheeler Mr. Howard J. Wiggett Mr. Richard M. Williams Mr. Kitch Wilson Mr. Arthur Winckers Mr. David Wortman Mr. D. M. Wyslouzil, FCIM Mr. Edward M. Yates

Anonymous/anonyme (1) Mr. Brian Abraham, FCIM Mr. Volker Henning Ahlborn M. Sebastien Allard Mr. Kenneth Arne Mr. Roger Aubertin Mr. Alan Bay M. Michel L. Bilodeau Mme Louise Blais-Leroux Mr. Brian Buss M. Richard Côté Mr. Askok Dalvi Mr. Hoba Don Mr. Brian L. Fenoulhet Mr. James A. Finch

M. Jean Fortin Mr. Bernhard Free Mr. Rock R. Gagnon Mr. Wilson Giraldo Mr. Carlton N. Goddard Mr. R. Michael Gray Mr. Roderick Guthrie Ms Caroline Hansson Mr. Wayne Hickey, FCIM Mr. Lionel Hurst Mr. Jerry Jelinek Mr. John Keenan Mr. George R. Kent Mr. Len Knox Mr. Peter D. Kondos M. André Lachapelle M. Réal J. Lafleur M. Maurice Lauzon Mr. Robert G.H. Lee Mr. Arthur L. Liberman Mr. Phillip Mackey Mr. Jan Werner Matousek Mr. Ismael Molina Mr. George Moubayed M. Phillip Mudry Mr. Donald I. Nelson Mr. Dennis Netherton Mr. and Mrs. John Orton Ms Karen Paine Mr. Brian J. Paul Mr. Nicholas Parchewsky Mr. Richard Peevers Mr. Ernest O. Pitschel Mr. Victor Prokopchuk Mr. David Mark Richards Mr. Colin Roberts Mr. John Eric Rudkin Mr. Maheswar Sahoo Mr. Michael Samuels Mr. David J. Seleck Mr. Wolfgang D. Skublak Mr. Harold R. Steacy Mr. Nathan Stubina Mr. Alan Taylor Mr. Robert E. Van Tassel Technical Economists Ltd. M. Gilles A. Tremblay M. Marcel Vallée Mr. Chris Vincent Mr. Jack R. O. Walli Mr. Arthur H. Webster Mr. Umetaro Yamaguchi

La FCMM est une entité distincte de l’Institut canadien des mines, de la métallurgie et du pétrole. La FCMM a été fondée par les membres de l’ICM et continue à bénéficier de leur appui.

December 2012 / January 2013 | 91

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CIM Journal Thank you for volunteering as peer reviewers and paper chairs.

Merci à tous les membres et directeurs bénévoles des comités de lecture.

CIM Technical Publications Committee CHAIR Chuck Edwards CANADIAN MINERAL PROCESSORS SOCIETY Michael Sue Catherine Pelletier MANAGEMENT AND ECONOMICS SOCIETY Mark Lamoureux ENVIRONMENTAL AND SOCIAL RESPONSIBILITY SOCIETY Chuck Edwards METALLURGY AND MATERIALS SOCIETY Robert Harrison Peter Lind GEOLOGICAL SOCIETY Chuck Edwards ROCK ENGINEERING SOCIETY Douglas Milne MAINTENANCE AND ENGINEERING SOCIETY Marcel Djivre SURFACE MINING SOCIETY Tim Joseph UNDERGROUND MINING SOCIETY Gary Poxleitner Luis Peloquin

Peer Reviewers Samaneh Alibeigi Juan Anes Derek Apel James F. Archibald Hooman Askari-Nasab Edouard Asselin Peter H. Atkinson William Bagnell Andrew Bamber Nicola Banton Arthur Barnes Laura Battison Luc-André Beauchamp Alan Beavan Walter Becorena Donna Beneteau Jeff Boisvert Veronique Boivin Marc Boudreau Mohamed O. Bouna Aly Keith Boyle Colin Brisco James Brown Brian Buss Amy Byers Winnie Cai Peter Cain Allan Chan Kinnor Chattopadhyay Loy Chunpongtong Jesse Clark J. Lewis Cluett Karen Coates Jeff Colden Cyril Cole Gerry Connaughton Donna Cortolezzis Pascal Coursol Tad Crowie Roland E. Crull Boyd R. Davis David DeGagne Guy Deschenes Sean Dessureault Dickson Dey Brett Dickie Roussos G. Dimitrakopoulos Marcel M. Djivre Glenn S. Dobby Jie Dong Chris A. Dougherty Georgi Doundarov Martin Drennan W. Scott Dunbar Linda Duncan Marek Dworzanowski Ken Dyck

Tim Eaton Chuck Edwards Robert Edwards Hoda Eiliat Kamran Esmaieli Gennaro Esposito Vern W. Evans Robin Fauquier Salar Fazli Bruce C. Fielder John A. Folinsbee Dominic Fragomeni Luc Gagnon Louis-Pierre Gagnon Enrique Garay Tony George Andrew Gillam Ryan Girling Marcelo Godoy Tadeusz Golosinski John R. Goode Charles Graham Martin Grenon Al Guse Doreen Hacker John Hadjigeorgiou Robert Hall Mel Harju Robert Harrison Mohd Hazizan Mohd Hashim Ferri Hassani James F. Hatley Claire Hayek Gerhard W. Heinrich Robert Henderson Adam Hesse Brent Max Hilscher Joseph Hines Eric H. Hinton Simon Hobson Mike Hoffman Seyed Hamid Hosseini Shili Hu Carlos Eduardo Huaranga Chayña Imtiaz Hussain Suzan Ibrahim Enrique Isagon Christopher Jacobs Tim Joseph Richard Jundis Abrar Kalhoro Dave Kenwell Mohammadreza Tavakoli Khaledi Brad Kingston Bernhard Klein Edmund Kofie

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Sunil Koppalkar Gregory W.R. Kuzyk Mark Lamoureux Graeme Lamson Geoffrey Lane Ali Lashgari Emma Leighton Andy Lemay Li Li Guo Li-jie Peter J. Lind Volodymyr Liskovych Gordon Livingstone Matt Lofstrom Glenn Lyle Gary MacSporran Padma Mahadevan Veerendra Maharshi Farideh Maleki Tanai Marin Joshua Marshall Christopher Martin Jonathan Matthews George McIsaac Richard A. McIvor F. Bennett McLaughlin Stuart McTavish Hamidreza Mehrizi Louise Michaud Dean Millar Douglas Milne Brett Moldovan Robert Moroz Valery Morozov Erin A. Moss Abdul Munem Ghazaleh Nazari Owen Neiman Jan Nesset Christopher O’Connor Olujide Olurin Ian Orford Sergei Panasiuk Vladimiros Papangelakis Jacek (Jack) Paraszczak Adrienne Patterson Edgar M.L. Peek Catherine Pelletier Luis Peloquin Bruno Pereira Ian M. Plummer Carol Plummer Mark Polak Jeff Poole Gary Poxleitner J.R. Robert Pronovost Robert Raponi Tommaso Raponi Paul M. Rennick

Jodi Lynne Roberts Kenneth John Roberts Colin Roberts John Robertson Gerry Roblesky Chick Rodgers Afshin Sadri Rivaldo Santos Rafael Santos Eric Schraml Bryan Schreiner Lorne Schwartz Erfan Sharifi Leandro Silva Raymond Simond Richard Sisson Cinziana Sist Timothy Skinner Mike Smith Douglas M. Smith Lawrence D. Smith Mayooran Somanathan Keith N. Spence Peter Stoker Nathan Stubina Michael Sue Gary W. Taylor Stephen Taylor Gerson Teixeira Denis Thibodeau Markus Timusk David Tisdale Mamadou Toure Basilios Tsikouras Paul Tucker Gideon van Tonder Adel Vatandoost Anne Veeger Horacio Vergara Matthew Violot Peter Waggitt Jamie Waine Xinran Wang Niall Weatherstone Jerry Wedzicha Peter Wells Peter Whittaker Peter Winterburn Zhixian William Xiao Quanmin Yang Trevor Yeomans Ray Yost Fran Yungwirth Muhammad Zaka Emad Jack Zhang Janice M. Zinck

www.cim.org • peerreview@cim.org

092-094 Technical Abstracts v3_Abstracts 2012-12-13 2:52 PM Page 93

TECHNICAL ABSTRACTS

CIM Anisotropic minerals in flotation circuits J. S. Laskowski, Norman B. Keevil Institute of Mining, University of British Columbia, Vancouver, British Columbia, Canada

journal

ABSTRACT Anisotropic minerals are important constituents of many ores. This group includes both valuable minerals (e.g., molybdenite in Cu-Mo ores) as well as gangue minerals (e.g., talc in platinum-bearing sulphide ores in South Africa, graphite in Cu-Ni sulphide ores in Canada, chrysotile in Ni sulphide ores in Australia, and clay minerals in all types of ores). Aqueous suspensions of anisotropic minerals exhibit different properties than suspensions of isotropic minerals. The presence of anisotropic minerals in flotation circuits affects the flotation process.

RÉSUMÉ Les minéraux anisotropes sont des constituants importants de nombreux minerais. Ce groupe comprend à la fois des minéraux de valeur (p. ex. la molybdénite dans les minerais Cu-Mo) et des minéraux de la gangue (p. ex. le talc dans les minerais sulfurés contenant du platine en Afrique du Sud, le graphite dans les minerais Cu-Ni du Canada, le chrysotile dans les minerais sulfurés de nickel en Australie et les minéraux argileux dans toutes sortes de minerais). Des suspensions aqueuses de minéraux anisotropes possèdent des propriétés différentes de celles des suspensions de minéraux isotropes. La présence de minéraux anisotropes dans les circuits de flottation affecte le processus de flottation.

Comparative study of highpressure grinding rolls and conventional wet and dry grinding methods on the flotation of base-metal sulphides and platinum group minerals N. A. Chapman, N. J. Shackleton, and V. Malysiak, Anglo Research, Crown Mines, South Africa; C. T. O’Connor, Centre for Minerals Research, University of Cape Town, Rondebosch, South Africa

ABSTRACT In this study, the effect of using conventional crushing and high-pressure grinding rolls (HPGR) in combination with dry or wet milling was investigated using a base-metal sulphide (BMS) sphalerite and a platinum group mineral (PGM) ore to determine how these processes affect the flotation performance. In sphalerite, irrespective of the crushing procedure (HPGR or conventional), dry milling resulted in the highest grades and recoveries of zinc, whereas in PGMs, similar treatment produced the poorest results. The results were investigated further by the effect of factors such as percentage liberation and particle size on the flotation results.

RÉSUMÉ Dans cette étude, l’utilisation d’un broyage conventionnel et de cylindres de broyage à haute pression (HPGR), combinée à un broyage à sec ou humide, a été analysée en se servant d’un sulfure de métal commun, la sphalérite, et d’un minerai contenant des métaux du groupe du platine (MGP) afin de déterminer comment ces processus affectent le rendement de la flottation. Pour la sphalérite, peu importe la procédure de broyage (HPGR ou conventionnelle), le broyage à sec donnait les plus hautes teneurs et les meilleures récupérations du zinc, alors que pour les MGP un pareil traitement donnait les moins bons résultats. Les résultats ont été analysés plus en profondeur en considérant l’effet des facteurs tels que le pourcentage de libération et la taille des particules sur les résultats de la flottation.

Excerpts taken from abstracts in CIM Journal, Vol. 3, No. 4.

To subscribe, to submit a paper or to be a peer reviewer—www.cim.org

December 2012 / January 2013 | 93

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TECHNICAL ABSTRACT

exploration and mining geology Systematic and Integrative Ore Characterization of Massive sulphide Deposits: an Example from Voisey’s Bay Ni-Cu-Co Ovoid Orebody, Labrador, Canada M.A.E. Huminicki, P.J. Sylvester, M. Shaffer, D.H.C. Wilton, D. Evans-Lamswood, and R.I. Wheler

ABSTRACT — Systematic characterization of the mineralogy of massive sulphide ore deposits can provide valuable insights into ore genesis and metallurgical processing that would not be apparent otherwise. We describe a method wherein (1) normative mineral abundances are calculated from whole-rock chemical assays using an algorithm, (2) the results are cast in block models, (3) the results are then verified with automated image analysis of a subset of samples prepared as grain mounts by backscattered electron imaging and X-ray mapping on a scanning electron microscope, and (4) those verified results are integrated with textural data determined by optical microscopy.

The technique is applied to the magmatic Ni-Cu-Co sulphides of the Voisey’s Bay Ovoid ore deposit in Labrador, Canada, based on geochemical assays of 3,175 whole-rock samples. Three principal ore zones are defined in the Ovoid ore deposit. Type I ore occurs in the centre of the deposit; it is magnetite-rich and pyrrhotite-poor with intermediate contents of pentlandite and chalcopyrite. Type II ore surrounds Type I ore and is pentlandite-chalcopyrite-rich with intermediate contents of pyrrhotite and magnetite.

Type III ore occurs at the base and along the outer periphery of the northern part of the ore deposit; it is pyrrhotite-rich and chalcopyrite-poor with an intermediate content of pentlandite, and a low-to-intermediate content of magnetite.

SOMMAIRE — La caractérisation systématique de la minéralogie des gîtes de sulfures massifs peut fournir des indications précieuses sur la genèse des minerais et le traitement métallurgique qui ne seraient pas disponibles par d’autres méthodes. Nous décrivons un procédé par lequel (1) un algorithme est utilisé pour calculer l’abondance de minéraux normatifs à partir d’analyses lithogéochimiques, (2) les résultats sont exprimés dans des blocs diagrammes, (3) les résultats sont par la suite validés par analyse d’image automatisée sur un microscope électronique à balayage en électrons rétrodiffusés et par cartographie en rayons X sur des échantillons constitués de grains montés en résine, et (4) les résultats de cette validation sont combinés aux données texturales obtenues par microscopie optique.

Cette technique est appliquée aux sulfures magmatiques de Ni-Cu-Co du gisement Ovoïde, en utilisant les analyses géochimiques de 3175 échantillons de roche totale.

L’Ovoïde comprend trois types de minerai. Le type I est situé au centre du gisement; il est riche en magnétite et pauvre en pyrrhotite avec des quantités intermédiaires de pentlandite et de chalcopyrite. Le minerai de type II entoure le minerai de type I et est riche en pentlandite et en chalcopyrite avec des quantités intermédiaires de pyrrhotite et de magnétite. Le minerai de type III se trouve à la base ainsi qu’en bordure externe de la partie nord du gisement; il est riche en pyrrhotite et pauvre en chalcopyrite, avec un contenu intermédiaire en pentlandite et une quantité faible à moyenne de magnétite.

Excerpts taken from abstracts in EMG, Vol. 20.

Subscribe—www.cim.org

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

095-095 Innovation Showcase v4_showcase 2012-12-13 2:52 PM Page 95

INNOVATION SHOWCASE

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December 2012 / January 2013 | 97

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Coal mining disaster: the 1958 Springhill Bump

by Correy Baldwin

T

Image courtesy of Nova Scotia Archives

he coal mining town of Springhill, Nova Scotia, has the One of the final seven rescued miners was Maurice Rudunfortunate distinction of suffering three major mining dick, who had done much to keep up the spirits of others disasters at its underground Cumberland mine. The first, trapped underground, despite having broken his leg in the an explosion in 1891, killed 125 miners. Another explosion bump. Ruddick even organized a birthday party for a 29-yearripped through the mine in 1956, old miner on their fourth day underkilling 39. Two and a half years later, on ground and sang to the men October 23, 1958, a third disaster devthroughout their nine-day ordeal. A astated the mine. Seventy-four men renowned baritone, Ruddick often led were killed and 100 were rescued, in his fellow miners in song while working what became known as the 1958 Bump or resting underground, and sang in a – the largest bump in North American quartet in his spare time. He was modhistory. est about his role, but others attributed A “bump” occurs when geological their survival to Ruddick’s positive stresses in a mine – often triggered by spirit. He was named Citizen of the Year the removal of coal from the bedrock – by the Toronto Telegram after the rescue. cause the mine to collapse in on itself, Marvin Griffin, the governor of Georresulting in effects similar to those of a gia, later invited 19 of the survivors to small earthquake. The three shockstay at a luxurious holiday resort in his waves that shook the mine also shook home state. Griffin had been in Canada the town above. during the disaster and had been moved There were 174 men working at the to do something for those who had been time, and many of them were trapped trapped. Ruddick was one of the invi3,900 metres from the entrance. The tees, but when Griffin learned that the affected shaft was one of the deepest in much-respected miner was Africanthe world, extending nearly 1,200 The seventh and last man being removed from Springhill’s Canadian, he insisted that Ruddick be metres below the surface. When res- No. 2 colliery to waiting ambulance kept segregated. cuers descended into the mine, they The other miners were not imwere hampered by fresh pockets of methane, partially collapsed pressed, with one miner reportedly saying, “There was no segshafts and tunnels blocked by fallen rock. By early morning, regation down in that hole, and there’s none in this group.” they brought 75 survivors to the surface.

However, Ruddick obliged Griffin, not wanting to come Additional rescue teams from other coal mines across Nova between his fellow survivors and their much-needed vacation.

Scotia came to help. On the morning of October 29, rescuers Along with his wife and their children, Ruddick stayed in a sepmade contact with a group of 12 miners trapped behind a 49- arate trailer and did not see his white companions until the vacametre rockfall. The next morning, they tunnelled through and tion was over. reached the men. A final group of seven survivors was found Back home, the Springhill miners had to look elsewhere for and rescued on November 1, after having spent nine days work. The bump was so destructive to the underground workunderground. ings that the mine was shut down after the rescue effort, never Both Canadian and international news organizations rushed to reopen. CIM in to cover the story. The ongoing rescue effort became a major media event, and the first major international story in Canada to be covered by a live television broadcast – a medium pioneered at Springhill by the Canadian Broadcasting Corporation.

Prince Philip, the Duke of Edinburgh, even visited the site, accompanied by Nova Scotia Premier Robert Stanfield.

Reporters crowded the mine entrance, interviewing every survivor and rescuer who surfaced, bringing some miners momentary fame. One survivor, Douglas Jewkes, became a spokesman for 7Up after asking for the drink upon emerging from the mine. Others later appeared on the Ed Sullivan show.

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

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