CIM Magazine June/July 2015 by CIM-ICM Publications

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IN THIS ISSUE CIM MAGAZINE JUNE/JULY | JUIN/JUILLET 2015

cover story

NAMES TO KNOW 2015

To celebrate CIM Magazine’s 10th anniversary, we recognize 10 people whose impact is sure to be felt as this year’s stories unfold By Chris Balcom, Peter Braul, Ian Ewing, Zoe Koulouris, Eavan Moore, Kelsey Rolfe, Michael Yang

26 10 Years of CIM Magazine

The origin story, operations and experiences that marked the ramp up of CIM’s flagship publication Compiled by Ryan Bergen Graphic design by Jocelyn Renaud

32 DEBUNKED! 10 maintenance myths

How multi-million-dollar assets ought to be maintained is often misunderstood Compiled by Eavan Moore and Peter Braul

June/July • Juin/Juillet 2015 | 5

contenu francophone

18 48 8 10

Editor’s letter President’s notes

tools of the trade 12

The best in new technology Compiled by Katelyn Spidle and Michael Yang

news 14

Nautilus Minerals awards support vessel contracts

15 18

By Kelsey Rolfe

Briefs Imperial Metals and Tahltan to co-manage Red Chris Ontario releases safety review

columns 28 30

By Michael Yang

Safety starts with the hiring process By David Lahey

The benefits of flow-through share donation financing

maintenance

By Norman Brownstein

Highland Valley Copper takes the measure of its crushers By Kelsey Rolfe

Good asset management remains elusive in mining, says James Reyes-Picknell By Ian Ewing

project profile 48

Largo Resources’ Maracás mine

technology 53

By Eavan Moore

article de fond 72

WLANs are connecting miners and their tools to the Internet to allow them to share and retrieve data efficiently without interference

cim convention Entertaining big ideas: Highlights from CIM 2015

technical abstracts 85

CIM Journal

Johannesburg, South Africa

67 67 68 78

travel

mining lore 90

By Lindsay Seegmiller

Chivor: a mine lost and re-discovered By Antony Strickland

Les noms à connaître

Pour célébrer le 10e anniversaire du CIM Magazine, nous mettons à l’honneur 10 personnes dont l’impact se fera indéniablement ressentir dans le déroulement de l’année à venir. Par Peter Braul, Kelsey Rolfe, Michael Yang, Zoe Koulouris, Ian Ewing, Chris Balcom, Eavan Moore

By Katelyn Spidle

81 85

Lettre de l’éditeur Mot du président Les actualités en bref La force des chiffres

Avec la haute teneur en vanadium qu’affiche la mine Maracás et une équipe de spécialistes chevronnés, Largo Resources se prépare à devenir un acteur de premier plan dans ce marché de métaux spéciaux. Par Eavan Moore

De grandes idées intéressantes : Récapitulatif du congrès Résumés techniques

La version française intégrale du CIM Magazine est disponible en ligne : magazine.CIM.org/fr-CA

6 | CIM Magazine | Vol. 10, No. 4

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

editor’s letter

humb through the first volume of CIM Magazine and the impression you get is that, in this industry, a decade is really only a heartbeat. “The Renard project... has the potential to become Quebec’s first diamond mine,” Stornoway Diamonds CEO Eira Thomas pronounced back in 2006. Up in the Northwest Territories, Fortune Minerals was already cutting drifts to help prove out the viability of its NICO gold-cobalt-bismuthcopper project. It won’t be until sometime next year that Thomas’ prediction bears out and Renard begins producing the first of its ore. For the Fortune team, which has yet to secure financing for the project, the intervening years have been a test of its agility and resourcefulness. These are just two familiar development projects among many others covered in CIM Magazine’s inaugural year, some of which have advanced to production while many have not. Skipping back through time is straightforward; each effect has a cause that lines up nicely behind it. Moving forward, it is not nearly so easy to discern which projects will collect speed and which will stall. When the leadership at CIM decided to put an end to the CIM Bulletin after more than 80 years, the new course was sketched out only very roughly. Members were hungry for a magazine format, and so the publications team, with a shoestring budget and the support of CIM members and societies, inked out a new path with CIM Magazine. The launch was the critical first act, pointing the magazine in a direction and getting it rolling. Along the way, we have continued to gather momentum. Under the expert guidance of Angela Hamlyn, who next took the role of editor-inchief, the format grew more refined and the budget expanded, giving us the resources to be more ambitious in our coverage. Equally important, the CIM Journal, with its mandate for peer-reviewed technical papers, has become an essential counterpart to the magazine.

Section editors Peter Braul, pbraul@cim.org Tom DiNardo, tdinardo@cim.org Copy editor/Communications coordinator Zoë Koulouris, zkoulouris@cim.org Web content editor Maria Olaguera, molaguera@cim.org Contributing editor Eavan Moore, emoore@cim.org Editorial intern Michael Yang, myang@cim.org Digitization technician Marie-Ève Lapierre, melapierre@cim.org Contributors Norman Brownstein, Chris Balcom, Riccardo Cellere, Ian Ewing, David Lahey, Christopher Pollon, Jocelyn Renaud, Kelsey Rolfe, Lindsay Seegmiller, Katelyn Spidle, Anthony Strickland Editorial advisory board Alicia Ferdinand, Garth Kirkham, Vic Pakalnis, Steve Rusk, Nathan Stubina Translations CNW, Karen Rolland Published 8 times a year by: Canadian Institute of Mining, Metallurgy and Petroleum 1250 – 3500 de Maisonneuve Blvd. West Westmount, QC H3Z 3C1 Tel.: 514.939.2710; Fax: 514.939.2714 www.cim.org; magazine@cim.org Advertising sales Dovetail Communications Inc. Tel.: 905.886.6640; Fax: 905.886.6615; www.dvtail.com Senior Account Executives Janet Jeffery, jjeffery@dvtail.com, 905.707.3529 Neal Young, nyoung@dvtail.com, 905.707.3525 Account Manager Mark Spasaro, mspasaro@dvtail.com, 905.707.3523 For Quebec: Info-Industriel Inc. Senior Account Executive Yvan Gauthier, ygauthier@cim.org, 514.576.5869 Subscriptions Included in CIM membership ($187); Non-members (Canada): $270/yr (AB, BC, MB, NT, NU, SK add $13.50 GST; NB, NL, ON add $35.10 HST; QC add $40.40 GST + PST; PE add $37.80 HST; NS add $40.50 HST); Non-members (USA & International): US$290/yr; Single copy: $25.

Thanks and congratulations to every one of you.

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20 1

Adventures in time and space

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

Barrick Gold co-president Jim Gowans. Photograph by Riccardo Cellere Layout and design by Clò Communications Inc. www.clocommunications.com Copyright©2015. 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.

8 | CIM Magazine | Vol. 10, No. 4

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When the world looks to you Look to Petro-Canada Lubricants

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Trademark of Suncor Energy Inc. Used under licence.

president’s notes

Thank you! Merci beaucoup! You will find my presidential “fireside chats” simple and to the point, which attempt to deliver one key message. As this is my first message, I want to use it to express my heartfelt thanks. As I write this, many of us have just recently returned from the CIM Convention in Montreal, an event that delivered and showcased excellence in so many ways. From the inspiring leadership congress and then the Cirque du Soleil atmosphere at the opening ceremonies (sponsored by CIM societies), to the lively plenary, the educational technical program, the celebration of excellence at the awards gala, sponsored by Caterpillar, and the crescendo of the Joy Global Gala party, it was wonderful to see so many familiar faces and to meet many new people, all of whom I hope to see again soon. I must say, from my unbiased perspective, that it was one of the best conventions that I have been to in the past 20-some odd years. Our annual convention is a huge undertaking and would not be possible without our dedicated sponsors, staff, volunteers, exhibitors and, last but certainly not least, you – the members. So thank you for all you have done and continue to do. It does not go unnoticed and is truly appreciated. However, as we find every year, there are always things that go a little sideways and remind us that we must always be diligent and not rest on our laurels. This year’s gala was very successful at honouring CIM’s bestof-the-best; however, it was also clear that we can improve and be better. We will learn from this year, we will improve and I promise that the Vancouver 2016 event will be the best ever. So please, for those who were in Montreal this year, start making plans for Vancouver next May. And for those who missed this year’s event, don’t miss out again. Join us in 2016.

Garth Kirkham CIM President @GarthCIMPrez

10 | CIM Magazine | Vol. 10, No. 4

letter Allow for time to tell The article “Design flaws” in the March/April 2015 edition of CIM Magazine reported on the findings of the Mount Polley review panel. The independent panel was expressly directed to avoid assigning liability of the breach. We are concerned that some of the intonations in the article may lead your readers to conclude that guilt has already been assigned and thus thought it prudent to stress that any conclusions to this effect are premature while the rigorous investigations being carried out by the Government of British Columbia’s Inspector of Mines and Ministry of Environment Conservation Officer Service are ongoing. These investigations are expected to produce additional information. As the former Engineer of Record, Knight Piésold Ltd. assisted Mount Polley Mining Corporation for more than two decades with the successful design and operation of their tailings storage facility. Knight Piésold adopted a conservative design philosophy wherein flat embankment slopes and/or buttresses were incorporated to ensure appropriate factors of safety for each stage of development. We are confident that the tailings dam was constructed with stable slopes and the impoundment was functioning properly with extensive drained tailings beaches and a relatively small volume of ponded water when we departed from the Mount Polley project in 2010. Furthermore, at the time of this extremely unfortunate incident, we provided a public statement on Aug. 8, 2014 to provide clarity and transparency about our role as the former Engineer of Record. Significant design changes were made subsequent to our involvement, such that the tailings storage facility can no longer be considered a Knight Piésold design. We cooperated fully with the Independent Review Panel and continue to support the ongoing investigations of the Inspector of Mines and the Conservation Officer Service. We remain confident that a detailed sequencing of events that led to the unfortunate occurrence of Aug. 4, 2014 will be made public in due course. As a concerned member of the mining community, it is of paramount importance to us that a full understanding of the causality of this breach is developed. This will support ongoing work with mining companies, regulatory bodies, First Nations and communities to implement robust and feasible preventative measures throughout all the jurisdictions in which we work. Yours truly, Greg Smyth, Knight Piésold Ltd.

erratum Life extension In our “Commodity spotlight 2015” (Dec. 14/ Jan. 15) we reported the Cantung mine in the Northwest Territories was expected to close this year. Last fall, North American Tungsten announced it had expanded its Mineral Reserve to support production beyond 2017. We regret the error. June/July • Juin/Juillet 2015 | 11

OF TOOLS THE TRADE

Courtesy of SSAB

Strong, sustainable steel Steel is found in the construction of almost every vehicle and piece of equipment in the mining industry, and it can be a real competitive factor where structural strength and weight are concerned. With this in mind, SSAB recently launched its Strenx high-strength steel brand designed to help manufacturers produce stronger, lighter, safer and more environmentally sustainable machines. The new brand offers the highest steel yield strength on the market (at 1,300 million pascals) and a variety of dimensions including plate, strip and tubular products ranging from 0.7 to 160 millimetres in thickness for all applications. According to Gregoire Parenty, SSAB’s head of market development, Strenx steel gives companies the opportunity to use thinner sheets to produce lighter products that use less fuel, have higher payloads and generate fewer greenhouse gases, without compromising structural strength.

Courtesy of Snively Inc.

Bringing electronics underground can be dangerous, especially in coal mines where a single spark can ignite an explosion. Therefore, many miners still resort to pen and paper for data collection, routine maintenance checks, and other timeconsuming tasks in underground danger zones. To increase efficiency but maintain miner safety, Snively released its new i.roc Mobile Computer. According to Justine Blank, vice-president of Snively, the i.roc’s method of spark-proof encapsulation far exceeds industry standards by reengineering a base digital handheld device that is explosion-proof right at the power source: its lithium-ion battery. It also includes wireless network capabilities, Bluetooth, a Windows operating system, electronic gas detection, and a video/PDF viewer. The mobile computer comes with interchangeable head modules that allow the user to scan data from barcodes and radio-frequency identification (RFID) tags directly into its SafeTracker program or other installed software. “The i.roc is very small and lightweight compared to what older methods of encapsulation would’ve been,” said Blank. The device is the first personal digital assistant to pass North American safety regulations for electronic use in methane-rich environments. Compiled by Katelyn Spidle and Michael Yang 12 | CIM Magazine | Vol. 10, No. 4

Courtesy of Atlas Copco

No bang for your buck

Rugged air compression These days, companies need products that are both eco-friendly and cost effective. Atlas Copco’s newest air compressor, the XAS 185, has an off-road engine that meets Environment Canada’s Interim Tier 4 standards. According to Cormac Kerins, product and business development manager at Atlas Copco, it also has low operating costs and excellent future resale value. A fully automated regulator varies the engine speed according to air demand and the portable compressor’s 20-gallon (roughly 76-litre) fuel tank can last a full eight hours without the need to refill. With a highly durable and weather-resistant polyethylene canopy, the XAS 185 can resist impact and corrosion, minimizing the need for repairs and repainting. “This is something that adds a lot of value for our customers,” Kerins noted. “The unit can take quite a beating without being damaged.”

Obituary: Paul Semple

Imperial Metals and Tahltan to co-manage Red Chris

Report reveals cost of northern development

Ontario releases safety review

News

Design elements Nautilus Minerals awards support vessel contracts

Nautilus Minerals is taking steps to develop a key component of its Solwara 1 project in the Bismarck Sea, northwest of Papua New Guinea, with the awarding of several contracts for its support vessel. In late April, Nautilus awarded Siemens International Trading (Shanghai) Ltd. the contract for the vessel’s entire electrical installation, which company CEO Mike Johnston described as “an enormous amount of cabling and wiring.” The vessel will require 31 megawatts (MW) of power. This is the latest in a recent spate of contracts to be awarded. Over the past five months, the company has announced, through the shipyard Fujian Mawei Shipbuilding, four long-leadtime contracts for its support vessel. “It’s a good-quality vessel, we did a lot of due diligence on the shipyards,” said Johnston. “We’ve got a good mix, we think, of access to cheap [steel] in China but also marrying it up to the best in class for the specialist equipment.” Solwara 1 will be the world’s first deep-sea mining project. It is a highgrade copper and gold project located 1,600 metres under water in the Bismarck Sea. The mine is expected to go into production in the first quarter of 2018. When it is in commercial production, Nautilus estimates it will produce about 1.3 million tonnes per year. 14 | CIM Magazine | Vol. 10, No. 4

Courtesy of Nautilus Minerals

By Kelsey Rolfe

Nautilus Minerals’ support vessel for its Solwara 1 project will measure 227 by 40 metres and accommodate up to 180 people as it mines for copper and gold along the bottom of the Bismarck Sea near Papua New Guinea.

The project will make Nautilus the first company to mine the ocean floor for polymetallic seafloor massive sulphide deposits. Three seafloor production tools – the auxiliary and bulk cutters and the collection machine – will cut ore from the seafloor and regularly feed it into a pump. The pump will bring the ore up to the support vessel through a riser pipe, where it will be dewatered. Clean water will return to the seafloor through the same pipe. The cutters and collection machine will be controlled from the vessel remotely.

Nautilus contracted Marine Assets Corporation to produce a vessel to its specifications, and the marine equipment provider has a further contract with Fujian Mawei. The vessel’s preliminary design work has been ongoing since halfway through 2014. Rolls-Royce Marine of Norway received the first of the four recent contracts for the engines and thruster packages of the vessel’s dynamic positioning system in February. Computers will control the amount of power the thrusters put out, which will keep the vessel stationed within half a

news metre of its required location at all times. Rolls-Royce’s new B33:45 engines will feature a Tier III-compliant selective catalytic reduction system to limit the vessel’s environmental impact. The system will control emissions by injecting a liquid-reductant through a special catalyst into a diesel engine’s exhaust stream. “Deep sea mining is an exciting new industry,” John Knudsen, Rolls-Royce’s president of commercial marine, commented in a March press release. “We are very proud that the B33:45 generator sets have been selected to power this pioneering ship, which will be at the forefront of a whole new chapter in underwater exploration.” The vessel will also include two cranes, one with active heave compensation, the contracts for which were awarded to MacGregor of Norway in early April. The heave-compensated crane uses a computer system that knows where the vessel is within half a metre in a three-dimensional space; as

swells come through, the crane will automatically adjust the amount of wire to keep equipment in the same place and prevent jerking. The vessel’s cargo handling equipment, awarded to Bedeschi SpA in Italy in March, will allow Nautilus to move the ore into the hull of the support vessel. From there, a conveyer belt system will transfer it to another boat to be sent back to shore for refining by Tongling Nonferrous Metals Group in China. Nautilus has three major contracts left to award for the vessel’s derrick, dewatering plant and the integration of all the equipment into the vessel. The seafloor production tools, built by Soil Machine Dynamics in the city of Newcastle upon Tyne in the United Kingdom, are 90 per cent complete and currently going through factory acceptance testing. They will be delivered by the end of 2015. The riser pipe, currently under construction, is expected to be delivered at the same time. The pump, constructed by GE

Oil and Gas in Houston, Texas, is already complete and will be assembled and delivered in mid-2016. “One of the advantages of getting delivery of the machine and the pump ahead of time is it allows us to do a lot of wet testing and testing of the machines to make sure that everything’s working as it should,” said Nautilus’ CFO, Shontel Norgate, “which will make that startup process a lot smoother than it otherwise could’ve been.” According to Norgate, the company will not begin building the vessel until later in the year. It will be completely ready for early 2017, and then the remainder of that year will be spent on integration work. The support vessel will measure 227 metres in length and 40 metres in width and will have accommodations for up to 180 people. Johnston said between 125 and 140 people are expected to be aboard when it is operating. It will be able to remain in the water at the site for five years before it has to be dry-docked. CIM

B.C. buys coal licences to defuse First Nations conflict

The acrimony has been further inflamed by First Nation and B.C. activists who have dubbed the surrounding area the “Sacred Headwaters” in reference to the nearby headwaters of the northwest’s three biggest salmon rivers. This solution will see the province pay the two companies just over $18 million to transfer ownership of the coal licences to BC Rail as a holding company. The agreement will allow the former owners to repurchase the assets at the same price right up to 2025, on the condition that the province and the Tahltan can reach a consensus on how mining in the area will proceed. Fortune Minerals president and CEO Robin Goad said in a statement that the purchase was a “good outcome” for the company given the current market conditions for coal. The province maintains that the purchase was required because the mine development schedule was moving ahead far faster than discussions with the Tahltan about development in the Klappan Valley. “This is a fair solu-

tion that recognizes the investment made by the companies,” said B.C. Energy and Mines Minister Bill Bennett. “[It] secures the potential value of these assets for the future and respects the position of the Tahltan Nation.”

The government of British Columbia recently took unusual action to calm an ongoing dispute between Fortune Minerals and the Tahltan First Nation. On April 30 the province purchased 61 coal licences in the Klappan Valley from the Ontario-based company for about $18 million. Since 2002 Fortune Minerals (later joined by its Korean joint venture partner POSCO Canada) has been developing its Arctos anthracite metallurgical coal project in northwestern B.C., with a vision to ship the coal by rail to tidewater at Prince Rupert. The plan to mine Mount Klappan was met with immediate opposition by occupants of the nearby Tahltan village of Iskut, which claims the area as traditional territory and relies on the immediate area for its subsistence moose hunting.

– Christopher Pollon

PwC unveils B.C. mining survey Last year was a troubled one for mining in British Columbia, according to PwC’s BC Mining Industry Survey for 2014. The professional services network released this year’s iteration of the annual report at a BC Mining Week breakfast event on May 5, which was attended by 150 members of industry and media. The report found that the continued Chinese slowdown and a corresponding glut of supply have decimated metallurgical coal production. With the price for met coal below US$100 per tonne, the heady days of 2011, when prices hit US$330 per tonne, are long June/July • Juin/Juillet 2015 | 15

forgotten as several B.C. mines were forced to suspend operations in 2014, including Walter Energyâ&#x20AC;&#x2122;s Wolverine and Anglo Americanâ&#x20AC;&#x2122;s Trend mines. Copper was a happier story. It comprised 32 per cent of the B.C. industryâ&#x20AC;&#x2122;s net revenue in 2014 (tied with met coal) and remained well over US$3 per pound throughout much of the year,

hitting a high of more than US$3.20 per pound in the summer. But by late in the year it had dropped below the US$3 per-pound-mark (down from a 2011 zenith of US$4.60), weighed by fears of oversupply. A drop in 2014 revenue and margins for B.C.-based companies came with the commodity price doldrums.

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Net income before taxes dropped to $288 million, down from $1.4 billion in 2013, while capital expenditures fell to $1.5 billion from $1.8 billion. Meanwhile, the ability of junior mining exploration companies to raise capital continued to lag: a companion PwC report (launched the same day as the BC survey) reviewing the top 100 junior mining companies on the TSX Venture Exchange showed that just $685 million was raised through equity financings in the year ended June 30, 2014, down by more than $100 million from the previous year. B.Câ&#x20AC;&#x2122;s Energy and Mines Minister, Bill Bennett, was the guest speaker at the event and he did his best to lift the mood. Despite commodity prices being a â&#x20AC;&#x153;wet blanket,â&#x20AC;? he reminded the industry attendees that B.C. has come a long way from the meltdown in 2008 and that the last five years have seen gross mining revenues, net revenues, total assets and employment generally up from where they were in 2010. Government continues to solidly back the industry, Bennett said. Corporate taxes in the province remain the second lowest in Canada, and Bennettâ&#x20AC;&#x2122;s Energy and Mines budget is growing by 40 per cent this year. Expediting permits remains a priority while the B.C. government continues to invest in ports, highways, airports and grids. He concluded that last yearâ&#x20AC;&#x2122;s completion of the Northwest Transmission Line, coupled with the infrastructure that has made Imperial Metalsâ&#x20AC;&#x2122; Red Chris 2015 production possible, bodes well for ensuring that future PwC surveys are more upbeat. â&#x20AC;&#x153;The Northwest Transmission Line is an important part of our infrastructure,â&#x20AC;? he said, â&#x20AC;&#x153;especially given that you have roughly 25 per cent of the most exciting major mining projects in the northwest part of the province that will now have access to power.â&#x20AC;? â&#x20AC;&#x201C; C.P.

Sudbury funds ultra-deep mining innovation The Centre for Excellence in Mining Innovation (CEMI) is getting a big boost from public coffers to continue 16 | CIM Magazine | Vol. 10, No. 4

its work on ultra-deep mining research and development. The Greater Sudbury city council and its economic development arm, the Greater Sudbury Development Corporation, unanimously voted in April to grant a total of $1 million worth of tax dollars over the next five years to CEMI’s new commercialization attainment project. The project will support the organization’s $47-million business-driven Ultra-Deep Mining Network (UDMN), which aims to solve challenges in mineral extraction more than 2.5 kilometres underground. Financial opportunities will be offered to local small- and medium-sized firms to help them identify, develop and test future deepmining tools and technologies. According to Eric Maag, director of innovation and prosperity at CEMI, the funds will help back 29 different projects in four main areas of innovation: rock stress risk reduction, energy reduction, operational efficiency and comfort for workers in deep mines. “The majority of projects we work with have a short-term focus, a solid market and are close to commercialization,” said Maag. One such project is Jannatec Technologies’ personal protection equipment (PPE), which provides connected, wearable gear that will allow miners to regulate their body temperature, monitor vital signs and communicate with an aboveground operator while they are deep below the surface. Jannatec unveiled its PPE at CIM Convention 2015 in May and anticipates having the gear on the market within the next two years. “Ultra-deep mining is of great interest to Sudbury residents,” said Greater Sudbury Mayor Brian Bigger after the city’s approval. “Council’s decision to support the commercialization attainment program underscores the vital role our mining and mining supply and services sector plays in our economic prosperity.” Last year the federal government awarded the UDMN $15 million in funding. – Michael Yang

Courtesy of Noront Resources

news

Paul Semple, COO of Noront Resources, passed away April 15 from complications arising from kidney disease.

Noront executive passes away Paul Semple, chief operating officer of Noront Resources and a 30-year veteran of the mining industry, passed away on April 15 from complications arising from kidney disease at the age of 55. Considered to be the face and voice of the Ring of Fire junior miner over the past half decade, Semple helped the company stake its claim in the mineralrich James Bay Lowlands and spearheaded the advancement of its Eagle’s Nest nickel-copper-platinum deposit towards becoming a world-class flagship mine. But for many people who worked with him, he was much more than a business partner. “Paul truly believed in the need to build relationships that ran deeper than in just a business sense,” said Mark Baker, vice-president of projects at Noront. “He understood that so much more could be achieved, for both parties, when you build a partnership from the ground up.” According to Baker, Semple had an innate ability to understand, connect and care about those around him. “No matter who you were or when you were with him, Paul always made time to talk

and it always seemed like you were talking to a friend,” he said. Prior to joining Noront in 2009, Semple spent most of his career working on international mine developments as vice-president and general manager of Kilborn Engineering, and later as vice-president for SNC-Lavalin until 2001. After that, he co-founded Penguin Automated Systems and was vicepresident of projects for Western Goldfields. Semple was also an active member of CIM and received a PastPresident’s Medal in 2005. In his memory, close friends and family are pairing with DAREarts, a charity he had been involved with since 2007, and CIM to establish the Paul Semple Scholarship Fund for Innovative Mines. The scholarship will support northern Ontario youth who show an innovative spirit and a keen interest in mining practices and technology. “The scholarship represents things that Paul loved: the northern Ontario communities he called home, the bright future of its youth, innovation, and the mining industry,” said Baker. Parties interested in donating can do so by contacting DAREarts. – M.Y. June/July • Juin/Juillet 2015 | 17

Teaming up Imperial Metals and Tahltan to co-manage Red Chris

Imperial Metals and the Tahltan First Nation signed a co-management agreement for the Red Chris copper-gold mine in Tahltan territory in northwestern B.C., the Nation announced in April. The impacts and benefits comanagement agreement was signed after about 28 months of negotiations. It promises Tahltan oversight of Red Chris’s environmental issues, training and careers for Tahltan people and a revenue-sharing agreement between the Nation and the company. The Tahltan voted on the agreement in an April referendum, with 87 per cent in favour and 13 per cent against. “It’s beyond excellent,” said Steve Robertson, Imperial Metals’ vice-

Courtesy of Imperial Metals

By Kelsey Rolfe

The processing plant at Imperial Metals’ Red Chris mine

president of corporate affairs. “I thought it was unattainable, quite frankly. It was a tremendous result.” Imperial had a series of 11 community meetings with the Tahltan that focused on the agreement after talks

were finished, Robertson said. “We held so many community meetings and educated the community so thoroughly,” he continued. “I think that’s what gave everybody so much comfort to give it such a strong endorsement.”

Please note: Effective June 1, 2015, our address and contact information will change as follows: 394 Highway 47, Unit #7 Goodwood, ON L0C 1A0 T: 905-642-6996 F: 905-642-6006 www.rosta.ca

18 | CIM Magazine | Vol. 10, No. 4

news Talks surrounding a co-management agreement initially began 10 years ago between the Tahltan and B.C. Metals, the company Imperial Metals took over to acquire the Red Chris project. Once the purchase was complete, negotiations were halted until Imperial had a mine development permit in place. The co-management agreement had been fully negotiated last summer, but after the tailings pond breach at Imperial’s Mount Polley mine the two parties “went back to the drawing board,” said Chad Day, president of the Tahltan Central Council. “We made sure that we had a lot more provisions to beef up our oversight and co-management powers around the environmental issues, particularly around the tailings pond.” The signed agreement allows for regular independent reviews of the mine by Tahltan-chosen consultants; one review was already conducted a couple of months ago on the Red Chris tailings pond. The majority of the environmental coordinators employed at the mine will also be Tahltan, and environmental committees have been set up. Under the agreement, environmental personnel at the mine will monitor the air quality at Red Chris and in the nearby community of Iskut. “We have a very robust regime set up where we have information sharing on the environmental data,” Day said. “If there’s anything that our environmental team or our leadership team feels should be flagged...we have the ability to go in and make sure that things are dealt with properly.” Day said the Tahltan has what he called “master regulatory power.” The Nation reserves the right to get an injunction from the courts if Imperial Metals is not following environmental legislation. “That’s another big piece of this agreement that’s important to us,” he said. The agreement also includes funding for training programs for the whole supply chain and specific employment targets for Tahltan people. Currently, 30 per cent of Red Chris employees are aboriginal, the vast majority of which

are Tahltan. Day said he expects 40 per cent First Nation employment within the next couple of years, and “there’s no reason why the Tahltan shouldn’t be 50 per cent of the employees at the site” within a decade. Day said the Tahltan are creating a database of Tahltan people in British Columbia and throughout the country to ensure they will know when people are available and looking for work, and be able to connect them with Red Chris. Contracts are also a large part of the agreement, Robertson added. “We’re going to have certain provisions to make sure that we give Tahltan businesses ample opportunity to get involved in the mine development and mine operation,” he said, “so they can build capacity within their community to be more involved on an ongoing basis.” Red Chris currently has contracts in place with the Tahltan for dam construction, fuel supply, air transport and catering, as well as smaller contracts for road maintenance, telecommunication and soils testing. The third part of the agreement is its revenue-sharing component. The Tahltan will share revenue with both Imperial Metals and the province. “The price of copper and gold is going to dictate the amount of funds that we get from that project,” Day said. “But the percentage is pretty substantial compared to other mining agreements in the past.” Co-management has effectively begun, but Imperial Metals still needs to put together an implementation plan to deal with a few aspects of the agreement that have not yet been enacted, including the hiring of certain positions specified in the contract. The company has similar co-management agreements with First Nations at its Mount Polley and Huckleberry mines. “We’re excited about the opportunity to put such a modern agreement into effect,” Robertson said. “And we’re very excited about our partnership with the Tahltan as we move forward.” CIM

John McManus, vice-president of Taseko Mines, is this year’s recipient of the Mining Person of the Year Award presented by the Mining Association of BC (MABC). He was recognized for his ongoing contributions to B.C.’s mining industry and for leading the recent completion of the Gibraltar Mine Development Plan 3, which resulted in a substantial increase to the mine’s throughput, projected life and secured ongoing investment for the Williams Lake community. McManus’s career spans over 30 years of large-scale mine management experience. He is a past chair of MABC and, prior to joining Taseko in 2005, he held management positions at three mines: Elk Valley Coal’s Coal Mountain, Teck Cominco’s Bullmoose and Teck’s Quintette. Every year the award is presented to an individual who has shown leadership in advancing and promoting the B.C. mining industry. Several B.C. mines and quarries were recognized for their health and safety achievements at the 53rd annual Mine Safety Awards banquet in Victoria in March. Among the winners, Taseko’s Gibraltar mine was recognized for being the operation with the lowest provincial injury-frequency rate with at least one million worker hours during the year, while Copper Mountain’s mine and Thompson Creek’s Endako mine were handed Edward Prior Awards for having the lowest injury-frequency rate among mines with between 200,000 and one million worker hours. New Gold’s New Afton mine was also awarded for having the lowest injury-frequency rate among underground mines in B.C. Compiled by Michael Yang

June/July • Juin/Juillet 2015 | 19

Feds fund surface mining simulators In anticipation of two diamond mine expansions and a new open pit mine in the Northwest Territories, the federal government is investing up to $550,000 in surface-mining simulator technology to train the next generation of miners.

Environment Minister Leona Aglukkaq, who is also minister of the Canadian Northern Economic Development Agency, announced the investment in early May. It will be combined with funding from the territory and industry to create the Surface Miner Training program offered at Yellowknife-based Aurora College. The

not-for-profit Mine Training Society (MTS), which has stick-handled fundraising for the program, will work with industry to recruit candidates and support them with job coaching. Fashioned after the existing Underground Miner Training program, it will use ThoroughTec’s Cybermine simulators as part of a wider curriculum that will be up and running by next June. The simulators will enable employees in training to learn how to drive trucks and operate heavy machinery with safety in mind, said Hilary Jones, general manager of MTS. “We can throw rockfalls, tire blow-outs, fires, and all sorts of stuff at the students, so they can develop the safety muscle memory,” she explained. Only candidates that have been recruited by the expanding Diavik and Ekati diamond mines, as well as the Gahcho Kué project will be admitted as students. Once they have successfully completed the program, the companies will formally make them job offers. Aglukkaq said in a statement that the federal investment will help spur job creation in a territory where min– C.P. ing is a key employer.

Gold heist at McEwen mine An estimated eight heavily armed robbers broke in and stole roughly 900 kilograms of gold concentrate containing 7,000 ounces of gold from McEwen Mining’s El Gallo 1 open pit mine in the Mexican state of Sinaloa in April. CEO Rob McEwen confirmed that the stolen concentrate was worth US$8 million. No employees were injured during the robbery, nor was any equipment at the mine damaged. When asked how the company will recover from the incident, McEwen said it already has. “Production is back up to speed and on track to make our guidance for the year,” he said. El Gallo 1 is expected to produce 50,000 ounces of gold in 2015. The stolen concentrate made up a sizeable portion of 30 days’ worth of overstock, as production was up 60 per cent in the first quarter. While the amount is substantial, McEwen con20 | CIM Magazine | Vol. 10, No. 4

Courtesy of McEwen Mining

news no telling how long the company can expect an investigation to continue. El Gallo 1 achieved commercial production in January 2013 and produced about 38,000 ounces of gold and 26,000 ounces of silver in 2014. – Katelyn Spidle

The crushing cost of northern development

Gold bars produced by McEwen Mining’s El Gallo mine in Mexico.

firmed that the company has insurance that will cover most – but not all – of the losses. Mexican authorities are investigating the crime, but no leads had been reported in the weeks following the incident. McEwen noted that there is

Tapping into Canada’s vast northern mineral wealth is a costly nationbuilding project that will require sweeping new tax breaks and government infrastructure-building support if it is to be fully realized. That is the conclusion of a report published in April, which found the cost to explore and build new mines is up to 2.5 times higher in Northern Canada – defined as Canada’s territories and northern provincial fringes – compared to southern areas. The biggest challenges include severe

weather, sparse population and the lack of infrastructure including ports, power plants and roads. “Smart investments and a positive tax regime to overcome the unique obstacles of these regions will be the best way to catalyze more mineral investments,” said Pierre Gratton, president and CEO of the Mining Association of Canada, which co-authored the report entitled “Levelling the Playing Field: Supporting Mineral Exploration and Mining in Remote and Northern Canada” with PDAC, the Yukon Chamber of Mines, the N.W.T. & Nunavut Chamber of Mines, and the Association of Consulting Engineering Companies (Canada). The report makes a series of policy recommendations to address the “cost premium” of operating in the North. These include increasing the Mineral Exploration Tax Credit to 25 per cent and emulating an Australian incentive program that provides qualified companies with a 50 per cent grant for

June/July • Juin/Juillet 2015 | 21

drilling costs (with 80 per cent paid upon completion of drilling, 20 per cent upon receipt of a final report). When it comes to developing mines, the authors recommend that all companies earn a basic 10 per cent investment tax credit on all capital expenditures (not just infrastructure) associated with a project, with a fur-

ther 15 per cent investment tax credit on eligible infrastructure such as roads, bridges, ports, dams and rail lines. The report also calls for the creation of a new federal crown corporation – comparable to the Alaska Industrial Development and Export Authority – to provide the long-term financing needed to build infrastructure. – C.P.

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Project Pipeline Compiled by Michael Yang

Adriana Resources filed a feasibility study for its Lac Otelnuk iron ore mine in Quebec on April 23. According to the report, the mine has Proven and Probable Reserves of about five billion tonnes of iron ore and a 30year life. The study assumes an iron ore price of US$110 per tonne, roughly double the price the commodity fetched as it hit 10year lows in mid-April. The proposed net present value of the mine after taxes is US$5.2 billion with an internal rate of return of 13 per cent. Once funding is in place, the initial construction phase is expected to take six years and cost US$9.38 billion. Rubicon Minerals began commissioning its mill ahead of schedule at its Phoenix gold project in Red Lake, Ontario, the company announced April 14. The Phoenix mine remains on track for initial production this summer. So far, roughly 11,600 tonnes of mineralized materials have been stockpiled with the expectation that the mill will process lowgrade material throughout the second quarter of 2015. Rubicon anticipates Phoenix will produce 2.19 million ounces of gold over its 13-year mine life.

Alamos and AuRico merge Two Toronto-based mining companies have announced a friendly merger with the aim of establishing the new company among the ranks of intermediate gold producers. Alamos Gold and AuRico Gold signed a US$1.5-billion deal in April to become a single company under the Alamos name with operating assets in Ontario and Mexico and a minority stake in a spinoff firm. Under the terms of the deal, shares of the new Alamos will be split evenly between shareholders of both smaller companies. The new company will own AuRico’s Young-Davidson mine in Ontario as well as its Chanate mine and Alamos’ Mulatos mine, both of which are located in Mexico. It will also own 4.9 per cent of the spinoff, called AuRico Metals, and its Kemess copper-gold project in northern B.C. Shareholders of the former Alamos and AuRico will split the remaining shares.

Courtesy of Alamos Gold

news

The Mulatos mine (above) in Mexico will make up a portion of the portfolio of projects owned by the new Alamos, the resultant company of a merger between Alamos Gold and AuRico Gold.

“The combination of diversified production from three mines and a pipeline of low-cost growth projects in safe jurisdictions equate to a leading gold intermediate,” said Alamos chief

executive John McCluskey, who will be CEO of the new company. “We believe the New Alamos will be one of the most attractive [investment] vehicles among the intermediate gold producers.” The move is the latest in a trend where smaller miners are joining forces to take advantage of cost-saving opportunities to deal with higher costs and falling gold prices, which hovered at around US$1,200 per ounce at the end of April. According to an RBC Capital Markets report released in late March, mergers and acquisitions in the mining sector are expected to increase significantly over the next couple of years resulting in “fewer, albeit betterfinanced, companies” as the gold sector weathers the downturn. Earlier this year, Tahoe Resources and Rio Alto Mining combined in a friendly $1.2-billion agreement, and Canadian miners Centerra Gold and Premier Gold Mines agreed to cooperatively develop Premier’s flagship gold

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project and other properties in northern Ontario. AuRico chief executive Scott Perry, who will become executive chairman of AuRico Metals, said the decision to separate the companies made sense

since the Kemess project is a coppergold development. “When you look at all the operating assets and development projects within [New Alamos], they’re all pure-gold assets,” said Perry in a conference call

with analysts. “We looked at Kemess and thought it’s not a perfect fit. The new Alamos is expected to produce 375,000 to 425,000 ounces of gold in 2015, with the potential to – M.Y. grow to 700,000.

Updating mine safety Ontario releases comprehensive health and safety review

Despite being one of the safest mining jurisdictions in the world, there is still much room for improvement in Ontario’s minerals extraction industry, according to the province’s long-awaited mining health, safety and prevention review. The 66-page report was released on April 15, and with it comes a renewed effort from the Ministry of Labour to address the safety concerns faced by Ontario’s underground mining industry. Commissioned in late 2013 after a spate of deaths in the preceding years, the review examines current safety procedures and provides 18 recommendations that address six key issues including direct health and safety hazards, the impact of new technology and the capacity of industry risk assessment practices. According to George Gritziotis, Ontario’s chief prevention officer and head of the review board, the recommendations are meant to be easy to understand, work with and, most importantly, implement.

Safety first Among other issues, Gritziotis highlighted the immediate need to address hazards that pose the greatest direct threat to the health and safety of miners working underground. This includes solving one of the most challenging and dangerous puzzles: managing excess water that can result in unexpected runs of material in ore and waste passages and unworkable wet conditions. According to the report, fatal injuries related to water management hazards in 24 | CIM Magazine | Vol. 10, No. 4

Courtesy of the Ontario Ministry of Labour

By Michael Yang

George Gritziotis, Ontario’s chief prevention officer

underground mines have not declined over the past 25 years. This stands in startling contrast to the steadily declining critical injury rates in the province. To deal with this, the report recommends mandatory programs at mines to formally address their water issues. The suggestions include minimizing the amount of water entering the mine in the first place by sealing exploration diamond drill holes and grouting fragmented rock masses that can become conduits for water transmission. It also proposes enhancing the capacity to remove water once it has entered the mine by ensuring proper sump-anddrain hole designs and pumping systems. At the design stage, steps should be taken to ensure mine water drains

away from ore and waste chutes, and that programs are in place to seal holes that intersect these passes. Lastly, employers can implement mandatory inspection programs, such as camera systems where possible, and position control panels for pass control gates in areas that are safely accessible as an added insurance. Other safety threats identified in the review include dealing with airborne hazards like silica and diesel particulate matter, risks from seismicity and rockbursts, possibility of vehicle and equipment collisions, and worker fatigue. Another area of concern, noted Gritziotis, is the existing Internal Responsibility System (IRS), which has failed to consistently identify risks and reduce occupational hazards since it was established in 1976. Developed by James Ham, the IRS requires every individual in all workplaces to contribute to the minimization of safety risks as an essential part of their job by reporting any concerns as they arise. The review recommends several changes to boost the system’s success including improved reporting outlets that involve workers more, better communication within the industry about emerging risks and increased enforcement in the form of effective internal and external audits. “If we could get everyone working underground to contribute to the IRS and help identify and correct workplace hazards, then it would go a long way to reducing accidents,” said Gritziotis. “It would be more than just a surface solution.”

news In good hands The 16-month comprehensive review process involved working with an advisory group of mining stakeholders to identify key issues, meeting with six working groups of labour and employer representatives to address each of these issues, consulting a resource group of subject matter experts to provide information for the working groups, hosting public consultation sessions, and having Gritziotis and members of his advisory group visit a number of mine sites. “It really was a great collaborative process between all the major stakeholders in the industry,” said Myles Sullivan, northeastern Ontario area coordinator for the United Steelworkers. “Although we might not have agreed at all times and the process might’ve taken a little bit longer than we wanted, the end result is of very good quality and addresses exactly what needs to done.” The sentiment is one that is shared among all parties. “At the end of the day, we all had one goal in common, and that was to make underground mines safer places,” said Angie Robson, spokesperson for Vale. “I believe the rapport that we developed and the results demonstrate everyone’s commitment to that goal. Now, the impetus is on employers and organizations to put those recommendations into effect.” Vale has already started to implement some of the recommendations, such as the mandatory use of high visibility clothing above and below ground. Gritziotis met with the advisory group in May to prioritize the recommendations and send a proposal to the Mining Legislative Review Committee in hopes of turning the recommendations into legislation. That committee will also consider another 24 recommendations, many overlapping with the review, from the inquest into the deaths of Jason Chernier and Jordan Fram at Vale’s Stobie mine in 2011 that wrapped up in mid-May. In a process that could take up to 12 months, the committee will pass advice to the minister of labour after reaching a consensus on required changes. CIM

Taking precautions A full list of the review’s recommendations Health and safety issues • The Ministry of Labour (MOL) to undertake a mining sector risk assessment every three years. • Require employers to conduct risk assessments with health representatives, as often as necessary to ensure effective programs. • MOL to focus its grants and research on topics that address the identified priority hazards of ground control, worker fatigue, occupational disease, water management and mobile equipment, and to act on findings where appropriate. • The Mining Legislative Review Committee to prioritize identified hazards in risk assessments in its work. • Require employers to address the priority hazards. • Review existing occupational exposure limits for key airborne and chemical hazardous substances in underground mines.

The impact of new technology and management of change • Require mine operators to establish and implement a written management of change procedure, and to include workers and health and safety representatives in the process.

Emergency response and mine rescue • Require mining companies to establish emergency response plans for exploration sites, new mines, surface mines and mining plants by conducting risk assessments • Workplace Safety North to establish guidelines for fitness of crew members, critical incident stress management and acclimatization of emergency responders. • Develop recommendations regarding responsibilities of mine rescue crew members and mine owners/employers in mine rescue operations in conjunction with stakeholders.

Training, skills and labour supply issues • Enhance supervisor and management training by involving the Mining Tripartite Committee with the Ministry of Labour and Ministry of Training, Colleges and Universities. • Discuss, evaluate and improve the quality of the content and delivery of NORCAT’s Common Core basic skills training in the underground mining sector.

Capacity of the occupational health and safety system • The province to ensure a safety system that has resources to address mining hazards by hiring more engineers and increasing partners’ technical capacity related to mechanical issues. • Review policies and procedures that apply to mining inspectors related to unannounced field visits, reprisals, repeat orders, the training of inspectors, and provision of information to workplace parties. • Review the system’s ability to meet the specific needs of the mining sector, such as those related to providing services to remote communities, training in small numbers and aligning training with the identified priority hazards. • MOL to build better connection with the Ministry of Community Safety and Correctional Services.

Internal Responsibility System (IRS) • The Ontario Mining Association to develop an IRS best practice guideline as an industry benchmark. • Share data on emerging injury and illness trends to trigger preventative actions from workplace parties. The full review can be found online at: http://www.labour.gov.on.ca/english/hs/pubs/miningfinal/index.php June/July • Juin/Juillet 2015 | 25

The flflagship foor a new era

o organization will live to comp plete an entire century without a knack for the art of reinvention. e CIM was facing g an existential crisis in the e early 2000s as membership was waning and engagement ment had dropped. For the Institu ute, founded in 1898, it was likely not the first time it ha ad reached a crossroads. “We had to turn things arround,” reflected Jean Vavrek CIM’ss executive director. Retiring g the existing g CIM Bulletin, a co ombination of newsletter and a technical jourrnal, and launching CIM Magazine, wiith news and features, wass an essential part p of that turnaround. Looking backk, “the days were long, bu ut it was fun,” said He eather Ednie the magazine e’ss first editor--in-chie ef, who is now managing dir d ector of the Global Mining Standards and Guidelin nes Group and counted by Women in n Mining UK among the 10 00 Global Inspirational Women in Mining. Sh he dubbed the magazine launch: “The biggest artss and crafts prroject I ever had.”

“If you want to be successful, you need world-class ss equipment, you need to use it in n a prroductive oductive mannerr,, and your workfor w rce ce has to work together to o imprrove ove the way you operate.”

A look back at some of the operations and issues from 22006 eck Resources elebrated the centtennial of s Cominco operattions in Trail, ritish Columbia. In n 1906 the t. Eugene, Centre Starr,, and War agle mines, the Ro ossland Power ompany and the Canadian C melting Works we ere combined and Smelting g Com mpany p y of Canada, which inccluded the world’’ss first electrolytic le ead refineryy, built in 1902. HudBay Mineral’’ss flagship 777 copper-zinc mine was aiming to reach its design ca apacity of 1.35 million tonnes within n the year. The $435-million p project included expansion of the nearby Flin Flon concentrrator.

- Iron Ore Company of C Canada President & CEO Terry Terry Bowles as the company ompany entered its fifth deccade of operations. Shut down for a decade, Aurizon Mine’s Casa Be erardi gold mine re-enter e entered production o in December 2006 after ea arlier exploration drilling added enough reserves to justify sinking a shaft to replace the existing ram mp access. The feasibility study for the development project assume ed a gold price of US$500 per ounce. ce. gnico-Eagle Mines was hard t work to achieve ve its goal of roducing 750,000 000 ounces by 009. The $210-million million LaRonde project, begun n in May 2006 was st one of three e major development projects the he company had n the h go iin Q Quebec. ebec. b The Lapa d to enter prod duction in 2008,

Expansion at Elk V Valley alley Coal’s Fording River operations brought production capaciity up to 10.5 from 9.3 million tonne es.

Compiled by Ryan Bergen Graphic design byy Jocelyn Renaud

were well underway erway.

Ramping up in the oil patch Syncrude retired the lasst of its draglines working the oil sands. The company also expanded throughput at its Aurora mine e by adding another producttion system including two P&H 4100 0 cab shovels, 15 Cat 797 haul trucks, support equipment, a crusher her and d a hydr h d otransport t t syystem. t Canadian Natural Reso ources Limited expected 6,000 peo ople at work on its Horizon pr p oject. The company spotted a lull in the construction industry an nd so added $400 million of the 200 07 capital spending budget to 200 06 to take advantage of the opportunity. Suncor completed its Stteepbank mine. Anne Marie Toutant, Toutan nt, the company’’s mining VP P,, estimated esstimated mining operations would move roughly 340 million tonn nes of material. Operations added a cable shovel to make an even dozen P&H 4100s scooping up the e black gold and added nine more Cat 797B haul trucks to its existing ting fl t off 60. fleet 60 “Ther “Th e’’s never never a dull d ll year,” ” said id T Toutant. outant. t t “It’’ss very ve ery exciting work, I’m having g a lot of fun.”

At issue The new regim me What, wondered the late e MAC vice-president Paul Stothart in his regular column, would the t new Conservative minority gove ernment’s strategy be for environmental issues, and climate change in particular? He noted that the prime e minister had said the new governm ment policyy would start “from p m scratch” while his environment minister had declared the govern nment would adhere to the Kyoto Pr P otocol. “Many industry groups in i Ottawa are presently trying to de etermine what these conflicting sttatements may mean for the future of the Large Final Emitters process o and other initiatives.”

The HR crisis, o of course Mining and petroleum com mpanies e healthy,” observed MiHR R’ss an Montpellierr,, “sharehold ders are aping record profits, and e employent in these sectors is grow wing d becoming more compettitive.” ying defence against othe er potenemployers looking to poach staffff s not a viable solution, he argued. he only real sustainable co ompetie advantage in this type of climate o position your company as the ht place to work for the kind of ople you want.”

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Life lesssons from 20066 scholarship winner Jonathaan Gagné Back in 2006, wh hen CIM Magazine first sp poke to Jonathan Gagné é, he was a third-year mining g engineering student at École Polytechnique de Montréal and the latest recipient of the C Canadian Mining and Metallurgical Foundation Arthur hur W. Foley scholarship. Tod dayy, he is only a few weeks into o his latest post as a senior mining engineer in the technical nical services department at Glencore Zinc after four-year sttints at both Agnico-Eagle Mines and SGS Canada. While still a student ent he advised those coming affter him to make full use of the co-op programs available ble and to get busy making g contactss. So we reconnected with Jonathan to ask what the intervening years have show wn him. CIM: After yourr years in the business what hat would you add to your ur earlier advice for up-and-coming up and-coming nd coming engineers? Gagné: I would certainly recommend that new graduates put o on their boots and go work in tthe field here the real

bottom, take the e time to really learn th he concepts, obtain people’’ss trust and slowly make you ur way to the top. I would d also add to start interactiing with other departme ents such as geologyy, processsing and maintenance as soon as possible. Y You ou will wiill find precious additio onal knowledge that will help you see the ove erall picture of what mining iis. CIM: W Wer ere therre any mistakes you made early on in your caree er that might be helpful for those who are trying to get et started? Gagné: My first mistake was trying to “fa ast track” my careerr. I wanted d to climb the ladder too fast and I put too much pressure on o myself. I didn’t fully und derstand all the knowledge that I had to soak up or the im mportance of experience. Itt might be cliché but I would cliché, uld certainly recommend new w grads learn how to walk beffore trying to run.

2006

HUMAN RESOURCES

Safety starts with the hiring process BY DAVID LAHEY

ccidents increase when new groups of miners are added to the labour pool, according to the U.S. Department of Labour, and in the Canadian mining industry, demographic and industry trends are coming together to create the perfect storm. Retiring workers, who have held their positions for decades, are taking their accumulated institutional knowledge with them. This trend has caused the Mining Industry Human Resources Council to forecast a hiring requirement of at least 145,000 skilled workers by 2023. The result will be a growing pool of younger, less experienced workers operating some of the largest machines on the planet. So how can Canadian mining executives mitigate risks and ensure safety while adding new talent? A temporary shutdown while regulators investigate an accident could cost companies millions of dollars. In addition to lost revenues, there is also the possibility of significant fines, workers’ compensation claims and increased insurance premiums. Mitigating risk and reducing the number of workplace accidents at mines is a matter of corporate culture. While employees must focus on the task at hand, they must also be safety conscious at all times. Behavioural analytics tools offer mining managers a scientific method for identifying employees who are predisposed to safety. Behavioural profiles can also help managers determine which roles within the organization best suit an employee’s natural abilities.

Three steps to creating a culture of safety 1) Identify potential employees: Too often it is assumed that a happy worker equals a retained worker and that retained workers are safe workers. According to a study on employee engagement by Gallup – a U.S.-based research firm – the reality is that 73 per cent of the workforce is either disengaged (putting in time without passion or connection) or actively disengaged (unhappy and working out their unhappiness in their jobs). This implies that employees who show up for work will not necessarily be focused on safety in the workplace. Smart employers such as BHP Billiton, one of the mining companies we have worked with, identify workers who are fully engaged during the hiring process and match their natural behaviours and abilities to the characteristics of a specific position. Further analysis of employees’ behavioural traits can ensure that they are safety conscious. BHP found that safe employees tend to be thorough, methodical, work at a steady pace, risk averse and forceful, but not aggressive. By focusing their attention on employees who exhibit these traits, instead of concentrating on workforce demographics, employers are able to place workers in roles that are the right fit for their behavioural profile. 28 | CIM Magazine | Vol. 10, No. 4

2) Prepare employees for success: Identifying and hiring employees with a behavioural profile that matches both a safety orientation and the available role in the workplace is just the beginning. Employers that fail to properly bring employees onboard during the first 90 days of their tenure typically face significant turnover. Behavioural data helps avoid this by identifying how each employee learns best and tailoring staff training to maximize understanding and retention. As an example, in response to a spike in the price of copper, the world’s leading copper producer needed to hire 1,100 heavy truck drivers to transport materials for processing. Hiring took place rapidly due to the immediate need for drivers with availability as the key hiring criteria. Employees were hastily trained and shown to their vehicles. Within 90 days, the new hires were reduced from 1,100 to just 440 drivers. Learning from this experience, the copper producer turned to behavioural analytics tools to match employees’ personalities to traits required for their new roles for all future hiring. Building on this success, the company trained every manager in the organization to know their staff’s behavioural profile, ensuring quality leadership throughout the group. 3) Ensuring a “safety-first” culture: The final stage in creating a long-term culture of safety is successfully transitioning new safety-conscious employees who show promise onto suitable career trajectories within the company. Employers can use the data collected during the hiring process as a framework for annual assessments as well as for ongoing coaching and professional development. Behavioural analytics can also identify leaders. For example, a mining engineer with strong communication skills, a tendency toward detailed planning and a results-oriented approach to work is well suited for a policy-driven, safetyfocused environment. Mining companies should prepare such employees to take on management roles in the organization, perpetuating the culture of safety throughout the ranks. When employees are motivated and engaged, they often exhibit a wider range of skills and abilities that impact their work positively. In addition to increased productivity, Gallup’s employee engagement research indicates that placing employees in the right role for their behavioural profile can reduce accidents by 50 per cent and ensure workers make it back home safely after every shift. CIM David Lahey, MBA, is president of Predictive Success Corporation (www.predictivesuccess.com) and the author of “Predicting Success: Evidenced Based Strategies to Hire the Right People and Build the Best Team.” Predictive Success leverages the Predictive Index to optimize organizational development. David can be reached at dlahey@predictivesuccess.com, 905-430-9788 (local) or 1-855-430-9788 (toll free).

Leading Excellence

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MAY 1- 4, 2016 convention.cim.org/Vancouver

FINANCE

The benefits of flow-through share donation financing BY NORMAN BROWNSTEIN

t is no secret that financing in the mineral exploration sector has been extremely hard to come by over the last few years. Junior mining companies in particular often have to look for alternative capital sourcing options simply to maintain their operations. Even flow-through share financing – the made-in-Canada financing option that boosts the ability of resource exploration firms to raise funds on the open market – has virtually dried up. Fortunately, one avenue of exploration financing has remained open during this time: flow-through share donation financing (FTSDF). Because of its inherent tax benefits, flow-through investing has typically been an attractive option for high net-worth Canadian retail investors, even in relatively volatile markets. However, the global downturn in mining equities over the past few years has taken a huge bite out of the flow-through investment channel in Canada. By some estimates, total capital investment levels were down by 50 per cent or more between 2012 and 2015. Given that around half of the 2,400 mining companies listed on the Toronto Stock Exchange (TSX) and TSX Venture Exchange are juniors, a lot of them have been feeling a serious capital pinch. In fact, many are struggling to survive or are delaying further exploration activities until market sentiment shows some sustained renewal. While Canadian investors taking advantage of standard flow-through offerings stand to gain as much as 50 per cent downside protection on the value of their investment through direct tax savings, the approach traditionally provides zero benefit to offshore investors. However, the advent of FTSDF enables offshore investors to benefit from the Canadian flow-through tax regime by leveraging the tax incentives available to individuals making major charitable donations. These incentives allow the donors to effectively make their gifts to charity at a reduced cost while providing investors with access to large blocks of shares at attractive prices. Here is how it works: A donor first subscribes for flowthrough shares issued by a junior mining company, which are immediately donated to a charity of his or her choice. These shares are then sold on behalf of the charity to institutional and/or offshore investors for cash. The mining company issuing the shares will receive a premium to the market price of the shares while the end investor will typically purchase the shares at a discount to the market price. PearTree Financial established FTSDF in 2007 to bolster the fundraising efforts of registered charities across Canada. Since it was introduced to the market, FTSDF has benefited many juniors across the country by providing access to

30 | CIM Magazine | Vol. 10, No. 4

institutional and offshore capital, with a less dilutive impact than standard share offerings. FTSDF provides obvious cost benefits to the charitable donors that employ this financial strategy. However, because it effectively makes available standard flow-through share offerings (which by their very nature can only be accessed by individual Canadian investors) to institutional and offshore investors, Canadian mining exploration firms now have access to new, large and motivated capital pools. And since flow-through shares are in effect regular common shares (the tax benefits go to the initial purchaser), they can be sold – often at a discount – to any interested investor in the world. FTSDF investors commonly are large strategic or institutional buyers. Because such investors are motivated by the potential for gains on high-quality Canadian mining exploration properties, as opposed to tax deductions, they are usually more stable and patient investors. And because the subscribers in this format are motivated by philanthropy – not profit – the shares normally command a higher premium to market prices than other offerings. This fact helps minimize a company’s stock dilution and allows them to raise additional funds for resource exploration and/or development activities. One company that has taken advantage of the FTSDF program multiple times is Toronto-based Lakeshore Gold, which has raised about $40 million in FTSDF funds to advance several of its key exploration projects in recent years. Others that have raised funds through this program include Seabridge Gold, Eastmain Resources and Spanish Mountain Gold. In fact, PearTree subscribers alone have accounted for more than $270 million in flow-through financings since the beginning of 2013, representing roughly 25 per cent of the overall mining exploration capital market in Canada during that time. Although FTSDF is not the right financing solution for every mineral exploration company, for those that are close to turning their provable find into a saleable commodity, it can open the window to new and reliable sources of capital from around the world. CIM

Norman Brownstein, B. Eng, MBA, CFA, is president of PearTree Securities in Toronto. His experience spans both trading and sales over a 20-year career in finance, which includes having held the position of managing director at both HSBC Bank USA and at Deutsche Bank Securities. Norman has established expertise in structured products in commodities, credit, equities, hedge funds, rates and tax structures.

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DEBUNKED! 10 maintenance myths Compiled by Eavan Moore and Peter Braul

Peter Braul

How multi-million-dollar assets ought to be maintained is often misunderstood.

eeping equipment running smoothly in the intense environment of a mine site can seem like an unattainable goal. It does not help that many beliefs about what constitutes good maintenance are based on old habits and hearsay, rather than the facts. To help you stay on top of your game, we enlisted experts in the field to help challenge 10 pervasive maintenance myths. If it never fails, I don’t need to check it as much. Brandon Hendrix, a Joy Global senior account manager, reported that his customers often set up monthly checks for new equipment, believing they are doing enough preventive maintenance that way. “But they need to inspect the complete piece of equipment a couple times a month,” he said. “This gives time for parts to be ordered and delivered to the mine site.” Especially critical on heavy equipment, the costs of losing a piece of equipment for a week could add up to millions of dollars – for want of one small part. “The 32 | CIM Magazine | Vol. 10, No. 4

customers that check on things more frequently have seen an overall better life on their equipment, with some shovels reaching over 160,000 hours,” said Hendrix. Equipment availability reduces with age. “In my opinion, old equipment performance decreases because it’s treated like old equipment,” said Nathan Flesher, director of operations at performance database provider MineLens. He said he believes operators and mechanics are typically less careful with older equipment and they tend to fix small issues less often. These lead to bigger issues in the long run. “I’ve seen guys driving 10-year-old F250 trucks that they keep clean inside and do all the maintenance, and they still look and run like new,” he said. “Contrast that with a communal ‘work truck’ that is often trash within three to four years because people don’t clean and take care of it.” He said older equipment does tend to fail more often, but mechanics also

upfront MAINTENANCE

tend to be familiar with those failures and have the spare parts on hand, so the machine can get back in service faster. We don’t have time or manpower for kitting. Every time a technician has a work order to carry out at an operation that has implemented kitting, they first collect a pre-assembled “kit” that includes all of the parts and tools necessary for the job. Flesher argues that even if operations have not made this a formal practice, “the truth is that you are already doing kitting. But you are doing it in the most inefficient way possible, with the mechanic, supervisor, and warehouse person running back and forth to get all the parts you need for a job. If you do it once, up front, not only will the job take less time, you will spend less time chasing after parts.” Hydraulic system failure costs are unavoidable. Damage and costs from hydraulic system failures have long been accepted as normal, according to Roger Marchand, CEO of magnetic filter maker Bay6 Solutions Inc. “Media filters cannot handle the large amounts of contamination generated during a failure mode,” he explained. During the failure mode, contaminated oil is allowed to circulate unfiltered throughout the entire hydraulic system, creating the conditions for future breakdowns. “While these types of failure cycles have long been accepted as ‘the nature of the beast,’ there are new ways to deal with hydraulic failures,” said Marchand. “Magnetic filtration is capable of capturing and holding this contamination.” That is because much of the contamination in a failure mode is ferrous and can be caught by uncloggable magnets. Hydraulic systems are not a significant danger to maintenance employees. Hydraulic systems are getting bigger all the time and can involve pressures of over 750 PSI and temperatures that exceed 60 C. Fluid that escapes under these conditions can penetrate skin and enter the blood stream, requiring surgery 100 per cent of the time. According to the Mine Safety and Health Administration, nine per cent of mining injuries are related to fluid power hoses. Grease is better than oil for lubricating spherical roller bearings. “The oil vs. grease debate is common in any low-to-moderate speed bearing application,” commented Leo Perry, senior engineer at the KSBowned slurry pump manufacturer GIW Industries. Some maintenance personnel prefer grease for its convenience, but the geometry of some bearings – such as spherical roller thrust bearings – makes oil a reliable choice, said Perry. “It can be difficult to maintain adequate grease levels in these bearings over time.” Oil also dissipates heat better, allowing for higher-speed operation, and its level and temperature are more easily monitored.

More oil is better. Too much oil will cause bearings to overheat. “Excessive oil level can generate more heat and aerate the oil due to the churning action within the housing,” explained Perry. “Too much oil volume can also act as a heat sink, making it difficult to draw heat away from the bearings.” On GIW pumps, instructions recommend filling to the centre line of the oil sight gauge with the pump not running, which should be just enough to coat each rolling element in an oil film. All maintenance key performance indicators (KPIs) are owned by the maintenance department. “Who owns the preventive maintenance compliance KPI?” asked Bruce Wesner, managing principal at Life Cycle Engineering. While most operations teams view it as a metric owned by maintenance teams, Wesner views it as an operations KPI first and foremost. “Operations has to give up the asset for maintenance to come in and do preventive work,” but since many operations teams are driven by production goals, they are reluctant to allow preventive maintenance to occur. The main goal of maintenance crews is to fix problems when they occur. Preventing breakdowns in the first place is where maintenance personnel ought to focus most of their energy, said Wesner. “Operations needs to look at maintenance as specialists who are continually running diagnostics from a predictive standpoint to understand how that asset is performing,” he added. It is also critical, according to Wesner, that if an asset breaks down, “We need to have operations there, involved and understanding what’s going on, and have them be part of the solution. The folks that know the most about an asset are the folks that operate it.” He said this collaborative approach to asset maintenance can stop costly breakdowns before they happen. “The cost of catastrophic breakdowns is typically seven to 10 times more,” Wesner added. High tonnage metrics indicate that an operation is efficient. Counter-intuitively, operations move more tonnes by focusing less on the tonnes themselves and more on the availability of the assets they use to move the tonnes, said Wesner. In his work with one mining company, shifting the focus from tonnage to availability resulted in a 35 per cent increase in tonnes moved over a three-month period. In addition to performing preventive maintenance, Wesner noted that big gains can be had by ensuring that assets are transitioned between shifts as smoothly and efficiently as possible. “It’s not one crew against another crew,” he said, remembering that at one operation, truck drivers would go so far as to adjust the seat for the next user so that they could immediately begin to work. CIM June/July • Juin/Juillet 2015 | 33

Courtesy of Crusher Vision

New insights Highland Valley Copper takes the measure of its crushers By Kelsey Rolfe

Crusher Vision’s new camera system is laser guided and can measure the closed side setting of a gyratory crusher remotely.

eck’s Highland Valley Copper approached Crusher Vision in 2009 with the hope of finding a way to more accurately predict mantle life and reduce downtime for its gyratory crusher. At the time, the mine was using the bucket test – having someone manually lower a tin can into the crusher to be squished between the mantle and concave, then bringing it back up to measure its width and adjust the mantle based on the measurements. “It was kind of a crude, informal but reasonably accurate way of doing it,” said Clint Ellison, Highland Valley’s mill maintenance superintendent. “But you’re relying on the operator a lot that way.” Highland Valley installed the Crusher Vision automation system (CVAS) in December 2013 on one of its three gyratory crushers. The system, designed by Crusher Vision’s president, Tom Shumka, at the request of Highland Valley, is a camera that uses a laser guide to take a photo of the crusher’s closed side setting, which eliminates the need to squish tin buckets. The measurements CVAS captures are far more accurate, the measuring process safer, and the copper and molybdenum mine, located in Logan Lake, B.C., has seen the mantle life on its crusher extended by 20 per cent as a result of installing the system.

Previous methods too inaccurate Checks were done inconsistently before CVAS. “We were basing all our mantle adjustments off these inconsistent bucket ratings,” said Ellison. “We’d leave them in one spot too long because the bucket measurements hadn’t changed.” Previously, the mantle would be adjusted every few days, which is long enough to bell the mantle or create an uneven wear pattern. The adjustment interval has now been reduced to every 24 hours or 60,000 tonnes, whichever comes first. 34 | CIM Magazine | Vol. 10, No. 4

“We were putting our heads together,” Ellison recalled of the meetings he had in 2009 with Shumka to find a solution. They decided a laser-shot camera – which uses a laser to locate the optimal framing and focus for the photo – would be the best fit because of its accuracy. “Other systems measure mantle wear; we don’t,” noted Shumka. “We were more concerned with the closed side setting or open side setting.” CVAS is a compact, high-speed camera that is positioned on the structure above the crusher’s pocket, on a simple bracket. Once a day, the feed on the crusher is turned off for a minute to allow CVAS to take its shot. The laser shoots down to the closed side setting – the narrowest opening of the crusher’s jaw – where the camera focuses in to take its measurement. “You’re not reliant on how a person interprets the measurement,” said Ellison. “It’s all automated, so it records a number. It’s very simple, and it can be done without throwing anything through the crusher.” Having an automated system also eliminates the safety hazard associated with workers who manually lower a tin can into the crusher for daily measurements, and Ellison said it is a simple system on which to train workers. “The other nice thing about this is it can be done remotely,” added Shumka. “It doesn’t have to be done right at the crusher; this could be done in the control room, up in the mill control ops area.”

Higher production and lower downtime To achieve higher mill throughput, Highland Valley’s crushers pretreat the ore before it heads to the mills and are run at a closed side setting of five to five and a half inches. Operating under the old system, if the setting was too tight it would reduce the tonnage moving through the crusher; if it was too large, it would send coarse material through the mill. The

upfront MAINTENANCE

accurate measurements from CVAS, Ellison said, are giving Highland Valley a more consistent crush than what they had before. “The value is sending the right size to the mills so we get maximum throughput through the mills,” he explained. “That was one of the downfalls of the inaccurate system that we used to use: we weren’t crushing to our potential.” Having the accurate measurements from CVAS also allows Highland Valley to raise the crusher’s mantle more consistently, and extend its life. Ellison said they now raise the mantle a tenth of an inch every 24 hours, and since installing CVAS have seen the life of their mantles, typically seven weeks, extended by almost a week and a half. “The amount of wear we’re seeing on our mantles has been drastically reduced,” Ellison noted. Though Ellison said the economic savings are difficult to quantify, higher throughputs should theoretically lead to increased metal production. The longer mantle life helps reduce liner costs. Shumka said CVAS has eliminated one mantle changeout per year at Highland Valley and helped reduce crusher downtime. “That’s pretty significant because they shut down for 24 hours [to change out the mantle], so that’s lost production,” he said. “You have 24 hours of manual labour, and you’ve got the cost of the component. And being able to

remotely operate this system, there could be an economic benefit there, too.” For his company, Highland Valley provided a year-long testbed to confirm the system’s reliability. The first few months were spent ironing out small kinks. Shumka compensated for the dusty environment by installing a wiper on the camera to keep it clean and functioning properly, and the system was positioned above the crusher rather than on it, to stop it from being violently shaken by the machine. There were also adjustments made to the camera’s speed and programming. Now, Crusher Vision is going to market with the system. “We’re starting to get phone calls from all over the world,” said Shumka. At Highland Valley, CVAS is currently hooked up to a small laptop on site, but the next step is to get it connected to the site’s internal communications system so it can be monitored from anywhere on the property, or even off site. Another CVAS was recently installed in the site’s second crusher, and Ellison said they are planning to equip the third crusher once it is approved in the budget. “We’re partway to where we want to be,” Ellison said. “We’re finally to the point now that we have a good system in place and we’re looking at upgrading our other crushers with this system now.” CIM

Hatch congratulates CIM Magazine for providing ten years of insightful and current news to the mining, metallurgy and petroleum industries. To learn more, visit us at www.hatch.ca

E N G I N E E R I N G • C O N S U LT I N G • P R O J E C T D E L I V E R Y • T E C H N O L O G I E S • O P E R A T I O N A L P E R F O R M A N C E

June/July • Juin/Juillet 2015 | 35

Just get the damn thing running Good asset management remains elusive in mining, says James Reyes-Picknell

Courtesy of James Reyes-Picknell

By Ian Ewing

ound mine management advice is often needed but not always heeded. James Reyes-Picknell’s book, “Uptime – Strategies for Excellence in Maintenance Management,” has been an industry go-to reference for years. However, the asset management strategies it teaches remain poorly implemented in many, if not most, mines, according to its author. Countless operations continue to run their machinery until failure, causing costly repairs and even more costly downtime. To understand the ongoing challenges of physical asset management in the mining world, CIM Magazine spoke with Reyes-Picknell, who is president of Conscious Asset, a maintenance management consultancy.

CIM: When you examine a mine’s maintenance plans, what are some of the most common things that need addressing? Reyes-Picknell: Poor work planning is quite common. There is an attempt at scheduling, which miners often call “planning.” Plans describe what work must be done, often describing specific tasks and providing directions or instructions where needed. Plans include lists of what is needed to do the job, such as parts, tools, test equipment, lubricants, adhesives, what skilled people are needed (mechanic, belts-man, et cetera.) and an estimate of how long the job should take. Schedules simply specify when a job will be done. Good schedules are created using the planned job estimates, in consideration of resource constraints and work priorities. No matter the priority, there is no point scheduling a job if the planned resources are not available. However, since 36 | CIM Magazine | Vol. 10, No. 4

most mines don’t always plan well or even have plans, their schedules cannot be followed closely and the management of work execution becomes chaotic, quite often ending up in a reactive mode. Tradespersons and supervisors will often blame lack of materials or lack of parts for why jobs won’t go well, but that is almost always tied back to the lack of planning. It’s an unfortunate cycle that can only be broken with good planning. CIM: What causes this lack of planning? Reyes-Picknell: The industry has so few good examples to follow. Many people out there in the mining maintenance realm have a pretty bad idea of how it should be done, relative to successful practices. They don’t know what “good” looks like. They’re also resource-constrained: they just cannot see their way past the firefighting mode. And the battles with their operations people are ones they never win, so they kind of give up before they start. Even the most knowledgeable of maintenance professionals find themselves in a very difficult position trapped in a reactive cycle. CIM: Why has good predictive maintenance not been adopted industry-wide? Reyes-Picknell: Everyone talks about predictive maintenance, but many don’t appreciate the need for follow-up once they’ve found a problem. For example, they’ll take readings on vibrations and see there’s a trend going upward, and they know that’s problematic. But will they act on it? The answer’s

upfront MAINTENANCE

often no, and it’s because they don’t trust that anything is really wrong! In the past, when they found a high vibration, they took the equipment apart and they didn’t find anything that they could see was wrong. In a shop environment, where there’s no stress on a bearing – they can’t spin it up to 3,600 RPM or put a couple hundred horsepower load on it – they won’t see the problem. The vibration sensors are very sensitive and pick up problems that may still be microscopic and invisible to the naked eye and other human senses. Lacking that trust in the technology, maintainers will let it run until it fails. Without that follow-up repair, the predictive maintenance does no good. CIM: Your company provides training that helps teach mining staff “good” examples. How readily do employees tend to accept changes to their process? Reyes-Picknell: When I run a three-day course, we include a simulation game. We often get upwards of 100 improvement ideas out of the class by the time the three days are up. They’re pretty quick to come up with ideas once they see what works. The planning people love learning what real planning is all about. They will adapt to that very quickly. Where they struggle is in the actual execution. As soon as they get back out into the mine, they’re back into the reactive environment, and typically with operations people chewing at them to get things fixed, so it all gets forgotten. Supervisors often don’t get the training, either, so there’s usually very little concerted effort to implement these improvements. They need the cooperation from the materials management people. And they need the operations people to understand them when maintenance says, “We need to take a piece of equipment out for service. You have to give it to us. If you don’t give it to us on time, there’s a good chance that it will break down and the downtime will be even more.” Often they don’t understand that until they’ve had the training. CIM: What is the cost of implementing maintenance process changes versus doing nothing? Reyes-Picknell: It depends a bit on how bad the firefighting mode is, but to give you an example, planned work executed on schedule is typically one-third or less of the cost of doing the work in an unplanned way. When you’re in a firefighting mode, constantly chasing failures, you’re consuming a lot of resources. People will go start a job, then find out what parts they need, go try and get the parts, find the parts aren’t available, now they have to wait on the supply chain, and everybody’s panicking and rushing. I knew one mine where they used to measure how bad the firefighting mode was

that day by counting the number of taxis with emergency deliveries at the gate. There is a cost to getting ahead of things, though. If you’re in a highly reactive mode, it is hard to drain the swamp while you’re beating the alligators off. There is usually a bit of an investment. Sometimes you can supplement resources or bring in contractors to do a lot of the repair work while you focus on the more proactive stuff and try and get out of that mode. CIM: Is there any new technology that can help with asset management? Reyes-Picknell: There’s a lot of condition-based monitoring technology that’s available. In the mining environment, a lot of that can be mounted on mobile equipment and, using network telemetry, you can actually get those signals from your mobile equipment remotely. I think that’s pretty amazing stuff. But for whatever reason, there’s not as much focus on that type of technology in processing plants. If you go to the oil and gas industry, for example, you will find it in refineries. But you won’t find much of it in mines. They’re lagging. CIM: What’s the biggest success story you’ve seen – the biggest turnaround after properly implementing good asset management techniques? Reyes-Picknell: We did some work with Placer Dome (before it was bought by Barrick) where we created a maintenance standard across all of its mines at the time – 14 operations around the world. Most of its mines made pretty dramatic turnarounds within a year. They did have top management support for it: the president of the company was the sponsor. He was one of those guys that you didn’t say “No” to, and he was very insistent on it. You need that high-level sponsor. CIM

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NAMES TO KNOW 2015

Jim Gowans | Euridice Gonzalez | Brendan Cahill | Alexis Tsipras | Brad Gordon | Aida Marie-Rose Tamboura | Rick Howes | Jean-Daniel Nieminen | Mark Smith | Barb Rose Work a decade in mining and you are bound to encounter a great diversity of people who make this industry tick. To celebrate CIM Magazineâ&#x20AC;&#x2122;s 10th anniversary, we have collected here 10 people whose impact is sure to be felt as this yearâ&#x20AC;&#x2122;s stories unfold. Compiled by Chris Balcom, Peter Braul, Ian Ewing, Zoe Koulouris, Eavan Moore, Kelsey Rolfe, and Michael Yang

40 | CIM Magazine | Vol. 10, No. 4

Riccardo Cellere

NAMES TO KNOW

Jim Gowans

Modest mastermind Not one to toot his own horn, Jim Gowans says what sets him apart from others in the mining business is simple – he has a lot of experience. If you believe his logic, lasting 40 years in the industry is all you have to do to reach the top of the biggest gold mining company in the world. But Gowans’ success is proof that it is what you do with your time that counts: he has managed to build six major mines over his career so far. Now co-president of Barrick Gold, he has moved back to Canada after years in Botswana managing Debswana, the world’s largest diamond producer, and is still eagerly looking ahead at the next big project.

CIM: Is there a Barrick operation you are particularly excited about? Gowans: There are a couple of them, and for different reasons. Pueblo Viejo, in the Dominican Republic, is a new operation: I was involved in Placer Dome when we were actually looking to do the acquisition of that mine. It’s the only operation that produces over a million ounces a year. It’s got a long life and there is lots of potential there. It’s very complex metallurgy and I’m a metallurgist, so the flow sheet is very interesting to me. Cortez was one of the ones I built before I left Placer Dome. It’s fun to see how it evolved from being part of the operation pipeline that I was involved in, knowing that the exploration we were doing in the Cortez hills now forms the core of the ore body and that there are two more ore bodies close by that we are continuing to develop. So, it’s exciting.

1 We have a couple of properties that are in the advanced stage of exploration, too, that I would love to have the opportunity to get into the project side and possibly build.

CIM: Where do you think your personality fits in with the Barrick team? Gowans: I’m the operations, exploration and projects side and the other co-president, Kelvin Dushnisky, is coming from the licence-to-operate side: government relations, environment, permitting and those aspects. He and I are a good fit because our skills are very complementary and we get along well. I wouldn’t say we necessarily agree on everything, though we’re very committed to the success of the company. So we may have lots of discussions but we’ll always focus on getting an outcome that works for the company. It’s all part of pushing each other to be better, and the same goes for the rest of the folks on the team.

CIM: Who would you consider a mentor? Gowans: Hank Giegerich from Cominco was a great mentor. I built Red Dog and Polaris with him. Sandy Laird, with Placer Dome, was fabulous in mentoring and developing young people. They’ve both been active in CIM for years. You have to have those contacts you can phone up and ask “What do you think?” You have to have people who are straight with you and give you good advice. June/July • Juin/Juillet 2015 | 41

CIM: Is there anything you’d like to import into Barrick from your past experiences? Gowans: With three other companies, I built two mines each. I learned the discipline and rigour of developing mines at other companies, and I think that’s something I can bring to Barrick. There are elements of it already, but it’s going to be one of the defining successes for our future.

Courtesy of Goldcorp

CIM: Your personal pay has been in the press lately. How do you deal with that kind of publicity? Gowans: I take it with a grain of salt because I know the facts. What was reported in the press wasn’t technically correct because the total compensation they had there was based on shares and the like. So it’s future-based value. What I get paid

is a small fraction of that. If I got paid what it said in the press, I’d be really happy!

CIM: How do you stay sharp when life gets hectic? Gowans: I actually enjoy it. It always drives some of the younger people I’m with crazy because when we’re going up in the Andes they get headaches from the altitude and I’m the only guy on the team that gets a full night’s sleep. I don’t lose my appetite and I actually don’t get jet lag either! When I arrive at a location to see a mine, whether it’s in Zambia at the Lumwana mine or in Saudi Arabia or up in the Andes in Chile and Argentina, I get a thrill out of seeing an operation and talking with my people about what we have to do to make this a better mine. It gets the adrenaline going. P Peter Braul

to the northeast. The budget also covers two early-stage prospects with “strong indications of gold and silver”: San Miguel, southeast of El Gallo 1’s Samaniego pit, and Tule Alto, to the north of the site. McEwen expects the drill results will improve El Gallo’s gold grade and extend the mine life, though it is not clear yet by how much. “Hopefully we’re able to take advantage of our resources for a year and be able to [extend the mine life] as much as possible,” Gonzalez said. For her, the El Gallo 1 project has a personal connection. She was instrumental in the land acquisition of the project in 2007, and acted as the go-between for McEwen and Mexican governmental institutions and communities to get the approval for exploration projects. “It’s like having your son and seeing him grow up,” she joked, having seen El Gallo develop from early days. “It’s hard work to do, but we’re very committed, and this is a very highpotential target.” Gonzalez, a Sinaloa native, was a certified English teacher before joining McEwen in 2002 as a process assistant and working her way up through the company. In 2012 she took on the job of country head for Mexico. The mining sector, she said, has given her hometown more opportunity than it would have had otherwise. “In the area where I’ve lived for more than 30 years I’ve seen quite a change because of mining,” she said. “[It has brought] in this new type of life to areas that have never been touched before by any kind of opportunity to develop.” P Kelsey Rolfe

NAMES TO KNOW

Euridice Gonzalez

Teacher at the top

McEwen Mining’s country manager for Mexico is overseeing a lot of development for the El Gallo 1 project in Sinaloa this year, with the company exploring four nearby prospects in the region. “We’re surrounded by very prospectable areas,” said Gonzalez, 45. “We haven’t completed the half of the year yet where we will be able to evaluate the results that we have so far, but I think [we’re] getting pretty good results.” McEwen announced in April a $5.5-million exploration program for Mexico, which will cover two advanced deposits: San José del Alamo to the north of El Gallo 1 and Twin Domes 42 | CIM Magazine | Vol. 10, No. 4

Brendan Cahill

Silver junior

Filippo Riniolo

Guiding a silver mining company through the slumping market is a daunting task for even the most experienced of leaders. At 35 years old, Brendan Cahill of Excellon Resources is the second-youngest CEO in the industry, although he does not put much emphasis on that statistic. “Most of the time, I truly forget I’m that much younger,” he said. “That’s part of the reason why I got into the mining industry – all of the guys here are young at heart and great to be around.” The other part of that reason stems from Cahill’s early days at Davies Ward Phillips & Vineberg LLP after graduating with a law degree from the University of Western Ontario. “I started working just as this crest of massive deals was hitting the market and got to advise on the multi-billion-dollar Barrick-Placer Dome deal,” he remembered. “After that, I was hooked.” Over his short career so far, the learning curve has been steep. “The most valuable lesson I learned, and the best advice I can give to anyone, is how important it is to build a great team around you and weather the storm,” he offered. After stabilizing the frequent management turnovers since his arrival and pursuing talent for its operations in Mexico, Excellon has steadily cut down on both corporate governance costs and operating expenses at its fully owned La Platosa mine. With plans to address the excess water issues at the mine, continue exploring the area’s mineral-rich system and acquire undervalued projects, Cahill is as comfortable leading his

Courtesy of Excellon Resources

NAMES TO KNOW

company through these times as anyone can be. “Things might be rough, but times like these are when the great companies are born,” he said. “We’ve managed to put Excellon in a good position to capitalize.” P Michael Yang NAMES TO KNOW

Alexis Tsipras

Rabble rouser

There is a word in Greek used to describe someone who can formulate compelling thoughts and persuasive arguments: Ευφραδής (pronounced ev – fra – THEES). Tsipras, Greece’s polarizing prime minister and also its youngest in 150 years, is one of these. Greeks call him an influencer, a go-getter and a charmer. For heads of states who have lent money to Greece or executives of resource companies with projects in the country, he has likely earned a less flattering label. Despite his youth, he has been politically active for decades, joining the Young Communists Society in high school. After his undergraduate studies in civil engineering, Tsipras ran for mayor of Athens in 2006 and finished third. Within three years, he became leader of the radical left-wing party, Syriza, and gained a seat in Greek parliament. His rise to the prime minister’s seat in late January, despite being the first radical leftist to ever win the election, was not a complete surprise. June/July • Juin/Juillet 2015 | 43

He wasted no time making an impression in mining circles by opposing Eldorado Gold’s projects in the country’s northeast, consequently jeopardizing thousands of jobs at a time when unemployment sits at 25 per cent. “After it wins the election, the Syriza government will stop the destruction brought on by Skouries,” Tsipras said last September. He also said lost jobs from the work stoppage would not be a problem because his party planned to create new jobs via special employment programs. Nevertheless, said Eldorado Gold country manager Eduardo Moura, “We have no intention of leaving Greece.” Eldorado Gold has spent some US$450 million at its Skouries

Brad Gordon

Repairman

Since Gordon’s arrival as CEO at Acacia Mining in mid-2013, the company has matured from Barrick Gold’s problem child to a role model for its bullion industry peers. The company, formerly known as African Barrick Gold, is Tanzania’s largest miner and it posted a return to free cash generation in 2014 for the first time in three years. Barrick Gold decided in 2010 to spin off its Tanzanian assets as it struggled with rising cash costs, increasing capital requirements and social unrest around the operations, and African Barrick Gold became one of the worstperforming mid-cap stocks in the United Kingdom in 2013. But none of that deterred Gordon, who saw the Bulyanhulu and North Mara mines as two of the best assets in Africa. “When you put great assets together with great people, good things are bound to eventually happen,” said Gordon, underplaying the complete overhaul that he and his team have started at Acacia during his short tenure. With an extensive background in mining engineering, having previously held senior positions with Intrepid Mines, DRDGold and Placer Dome, he immediately conducted a full-fledged operational review and began fixing up the company’s three major assets, addressing production, cost and social issues all in one go. For instance, at North Mara, transitioning the Gokona open pit into an underground operation is expected to produce up to 450,000 ounces of gold in the next five years and lower the all-in sustaining cost by more than $200 per ounce – all while reducing the opportunity for illegal miners to enter the operation and using less land to dump waste rock. Similar 44 | CIM Magazine | Vol. 10, No. 4

P Zoe Koulouris and Peter Braul

Courtesy of Acacia Mining

NAMES TO KNOW

and Olympias projects since 2012 and generated jobs in the country. But the Tsipras government decided in February to revoke the company’s permit authorizing it to finish construction of the processing plant at its Skouries project. A ruling on that decision is pending. In April an estimated 4,000 miners and their supporters gathered in Athens to march against the government’s action. Even if the ruling is not in Eldorado Gold’s favour, the company is determined to remain active in Greece. Said Moura: “We see Greece as a cornerstone of the company’s future growth and plan to continue our investments in the country.”

operational improvements can be found at Bulyanhulu, where mechanized long hole stoping has replaced labour intensive conventional hand-held mining, and at Buzwagi, where shortening the mine life ensured that only profitable ores are being mined. And while the results are tangible – Acacia posted net earnings of US$90 million, all-in sustained costs that are 18 per cent lower than the previous year, and a 13 per cent increase in gold production in 2014 – they do not reflect the true scale of the overhaul, Gordon pointed out. “The changes made are permanent ones that are only beginning to show how effective they are,” he said, noting that Bulyanhulu is expected to reduce costs far more this year than it has to date. The rebranding of the company as Acacia Mining last November was a coming-of-age decision. “We wanted to gain some credibility, a track record of delivering, before making a symbolic change like that,” said Gordon. “It really is symbolic of a new beginning.” P Michael Yang

NAMES TO KNOW

Aida Marie-Rose Tamboura

Women are still a clear minority in the Canadian mining sector – they make up only 14 per cent of the workforce, according to Women in Mining Canada – but their participation in Burkina Faso is almost non-existent. Data from the Association des Femmes du Secteur Minier du Burkina (AFEMIB) says women account for just five per cent of the sector. “The landscape is the same as everywhere else,” said Tamboura, the association’s founder and president. “Women are not involved in the decision-making stage. [They’re] under-represented in all sectors of the production of gold.” Tamboura has gone against that grain, and at 55 she is the only woman to lead an exploration company in Burkina, as general manager of gold explorer Predictive Discovery Limited. NAMES TO KNOW

Courtesy of Aida Marie-Rose Tamboura

The long-standing champion

She created AFEMIB 15 years ago, and it has made steady, if slow, progress. The association is now part of the board of directors of Burkina’s Ministry of Mines and is in a partnership with the Ministry for the Advancement of Women. In order to increase the percentage of women in mining, the association is trying to reach women early, by holding workshops about the mining industry for girls in high school and university. “Seeing more women enter the sector will have a positive impact on relationships with local communities and help build better management teams in the future,” Tamboura said.

P Kelsey Rolfe

Rick Howes

After pushing for more innovation in mining for years, the president and CEO of Dundee Precious Metals has found himself in a position to effect real change at his company’s Chelopech copper and gold mine in Bulgaria. What began as a fairly standard modernization project eventually led to the implementation of advanced wireless underground communications technology, allowing real-time monitoring and control of the underground operations. Three years of work integrating the various systems paid off: the mine’s production has doubled with no net increase in equipment fleet size. So what made this use of innovation successful where so many past efforts have failed? Partly, the technology has improved. “Ingredients change because of the advances that are happening,” Howes said. He explained that the latest technological advances happened to line up, time-wise, with the company’s goals in Bulgaria. Cooperation among the vendors for the system’s constituent parts and a Bulgarian workforce open to improvements also smoothed the road. For Howes, it is maddening to watch the mining industry lag behind others. “I used to get frustrated with the idea that the use of our resources was inefficient,” he said. “You could see it: people and machines standing around a lot. There was

Courtesy of Dundee Precious Metals

In tune with innovation

7 June/July • Juin/Juillet 2015 | 45

not consistent production. If you looked to the manufacturing sector, you wouldn’t see machines sitting idle very much. That’s what’s underpinning it, a frustration and observation that it seemed to me that we could do better.” He admitted that there is more attention being paid to innovation. “I hear a lot more talk now than I did a few years ago,” Howes said. “There’s a lot more interest. But the easy part is saying ‘We’re interested.’ The hard part is figuring out the vision, strategy and plan for where you’re going and executing it.” He added that there is nothing stopping other operators from using recent innovations to

improve efficiency immediately, like those Dundee has implemented in Bulgaria. “Things are moving ahead faster than we’re absorbing them now,” he explained. “There’s no shortage of advances in technology that could be applied to the industry.” Howes said he hopes to continue encouraging the innovative spirit in young engineers: “I’d like the Canadian mining industry to excel and lead again. I think Canada is falling away from that lead role because we are not being innovative enough and we’re not pushing the envelope hard enough to P Ian Ewing do that.”

Courtesy of Jean-Daniel Nieminen

8 NAMES TO KNOW

Jean-Daniel Nieminen

Capacity builder

Nieminen got his start in the mining equipment industry as a student employee at his father’s Rouyn-Noranda-based K.N. Equipment 17 years ago. He is still there today, but now the 33-year-old is vice-president and general manager of the company, a post he has held since 2006. In this position and with the advantage of his long history in the industry, Nieminen has taken on a number of ambitious projects in Africa. Les Industries Orientales SAU is a mining equipment hub he is developing in Kedougou, Senegal. The hub will serve as a manufacturing base for Quebec firms like his to grow their customer base across West Africa. He added that the hub will also “help the community with technology transfer and competence transfer by training [local workers.]” The hub will also support another one of Nieminen’s initiatives. In collaboration with Les Industries Beroma, he has arranged to help local Senegalese miners purchase new smallscale gold processing plants and to provide substantial 46 | CIM Magazine | Vol. 10, No. 4

training and assistance in the first year of operation. Many Senegalese miners have legal title to mine the land but lack the capital and expertise necessary to purchase appropriate equipment and conduct safe and profitable operations. The plants will be serviced by three to four small mine sites and worked by cooperatives of about 125 workers, which will keep the miners’ profits within the community. Current practices allow the Senegalese miners to capture only about 40 per cent of the gold in the ore, but Nieminen said their recovery will jump to 95 per cent with the new process and training. “With that increase they can pay the machine royalties, have better conditions and have better equipment,” he explained. Over the coming year, Nieminen will work to arrange loans so that the co-operatives can purchase these plants. He has already been in talks with a number of entities including the World Bank. Each plant will cost roughly US$1.2 million for basic set-up or US$3.9 million for a complete plant with a year’s operation including training, installation and spare parts. Nieminen is focused on securing funding to build a single pilot plant in Senegal for now. but he has plans in the works to build three plants in Senegal, and three each in Burkina Faso and Côte d’Ivoire. P Chris Balcom

Mark Smith

The specialist

Smith’s recent appointment as president and CEO of vanadium producer Largo Resources added another specialty metal to an already impressive list. The former head of Molycorp oversaw that rare earth company’s transition from oil subsidiary to public firm. After leaving, he joined niobium developer NioCorp in 2013, which tripled the resource at its Nebraska project thanks to last year’s drilling campaign. His new role at Largo immediately plunged him into raising money for work at the Maracás mine (see p.48). These commodities have a couple of things in common, according to Smith, who remains the CEO of NioCorp: they often go to the same buyers, and those buyers need more options. At Molycorp, his pitch was greater diversity in the completely China-sourced rare earths supply. Now he finds

NAMES TO KNOW

himself making similar arguments for niobium – 92 per cent of which comes from Brazil – and majorityChinese vanadium. “What we continually hear from customers is the steel companies are the ones who need more suppliers,” said Smith. Furthering investment in new sources of supply is where Smith sees his skill set having an effect. “I look for opportunities at this point in my life where not only can I step into a leadership role, but I can step in as an investor and also take advantage of what I think are outstanding opportunities that are not as well understood by the market as they should be,” he said. “I’ve been able to put things in terms that an investor needs to hear. Once you convince an investor that your values are strong and that the commodity that you’re producing is an important part of the economics of the world, then I really think that you’ve captured them to a large extent. Then you can get into the details of exactly why this particular opportunity would P Eavan Moore fit their purposes so well.” Courtesy of Largo Resources

NAMES TO KNOW

Barb Rose

Renaissance woman Courtesy of Trevali Mining

Trevali’s chief mining engineer relishes the new professional challenges of redeveloping and commissioning the company’s Caribou zinc mine outside Bathurst, New Brunswick. Rose, like many of the employees at Caribou, had spent much of her career at the nearby Brunswick mine until it closed two years ago. For both her and the nearby communities in northern New Brunswick, Caribou offers renewed opportunities. “I always knew I wanted to do engineering, because of my love of math and sciences,” Rose said. But it was only after meeting the mining engineer parents of some Queen’s University classmates that she discovered an industry that spoke to her. “It sounded really intriguing and more of a family community than some of the other disciplines that are so wide and diverse. Once you got into mining, you made friendships that last for life, and you have these contacts that are there to support you no matter what site or what company you work for.”

Rose brings a similar outlook to her latest leadership role. As the chief mining engineer, she oversees 11 people on Caribou’s mine engineering, geology and environmental teams who have spent the last year preparing feverishly for the mine’s re-entry into production after being idle for six years. “I try to genuinely care for who they are, and respect that they have families at home and other responsibilities.” With zinc poised to enjoy a favourable market in the midst of otherwise flat commodity prices, the timing of Caribou’s reopening may be perfect. Trevali also owns two more sites in New Brunswick that are being explored and evaluated. Rose said she believes her team will be ready if and when the company decides to develop them: “We have a relatively young engineering team and I’ve enjoyed seeing them grow and develop with the project, learning and developing their skill sets.”

Ian Ewing

June/July • Juin/Juillet 2015 | 47

The Maracás Menchen mine is located in the northeastern Brazilian state of Bahia.

Strength in numbers When it ramps up to full capacity this fall, Largo Resources’ Maracás mine in Brazil will become one of the largest primary producers of vanadium in the world. With few impurities and grades at 1.34 per cent, around double the global average, Maracás sits in a niche even within its specialized market: the vanadium pentoxide it produces can meet the demands of high-purity applications whether for plane wings, turbines or batteries. BY EAVAN MOORE

e have been complimented by two steel companies as of late,” said Mark Smith, who took over as Largo’s president and CEO in April. He added that steel companies – the end users – tell him the vanadium pentoxide his company produces is some of the purest in the world. Primary vanadium producers are rare: most of the metal is a byproduct or co-product of some other commodity, often iron. The Largo team

“W

48 | CIM Magazine | Vol. 10, No. 4

says it hopes to contribute up to a tenth of the world supply in later stages of its project and to add geographical diversity in a field dominated by China, South Africa, and Russia. The mine was commissioned last August; in the first three years, the plan is to generate at least 9,600 tonnes of vanadium pentoxide (V2O5) each year from the main Gulçari A pit, which has Proven and Probable Reserves of 13.1 million

All images courtesy of Largo Resources

tonnes at 1.34 per cent V2O5 and Measured and Indicated Resources of 24.6 million tonnes at 1.11 per cent V2O5. Largo intends to expand its production, ramping up to 14,000 tonnes in year three and, after eight years, move out to satellite pits that boast an Inferred Resource of 30.4 million tonnes at 0.83 per cent V2O5. If expansions proceed as planned, the average production over the total mine life of 29 years will be 11,400 tonnes per year. Global vanadium production in 2014 was 97,000 tonnes.

Built on a budget The mine design itself is specific to the mineral but not unusual for vanadium. Collectively, the team at Maracás has worked on every vanadium mine in South Africa, and the mining method and processing flowsheet hew to tried-and-true precedents for titaniferous magnetite deposits. The ore is mined from an open pit using conventional drill and blast methods by contractor Fagundes Construção e Mineração, then hauled by truck to the processing plant. The total surface

production fleet includes one drill rig, two excavators, seven 36-tonne trucks and one dozer. The ore first goes through three rounds of crushing. Initially, the plan sent it straight to the mill afterwards, but mine management decided during the commissioning stage to add two dry magnetic separation units that sort out the vanadiumrich magnetic ores from gangue. “We realized during commissioning that we can utilize our ore from the ore body much better by adding dry magnetic separators,” explained Casper Groenewald, technical director at Maracás. The ore has to get up to at least 44 per cent magnetics before it enters the milling stage; upgrading via dry magnetic separation means that magnetic contents as low as 35 per cent can be mined and fed through the crusher. According to COO Michael Mutchler, dry magnetic separation could potentially drop the deposit’s cut-off grade, currently at 0.6 per cent vanadium in ore. “The first cut-off grade is always driven by price, and right now prices are low so there may be a trade-off there,” he said. “But someday, evaluating June/July • Juin/Juillet 2015 | 49

more on the vanadium content of the magnetic ore, we’ll be able to drop that cut-off grade.” After dry magnetic separation, the ore passes through a tumbling mill then through a wet magnetic separation stage that further isolates the vanadium ore. The tailings from this stage contain small amounts of ilmenite and platinum group metals that could theoretically be recovered if the mine had the capital to install the necessary circuits. But for now the only saleable product from the ore is a magnetic concentrate with about 3.4 per cent V2O5. This is roasted in a kiln with soda ash and sodium sulphate to produce a water-soluble compound, sodium vanadate. The hot material is cooled to 450 degrees Celsius, quenched, and then passed through a grate discharge mill for reduction down to particles 6 millimetres in diameter or smaller. That product spends 45 minutes in agitated leaching tanks filled with warm water and is then cycled through the leach thickener. The next step is desilication. At this stage, aluminum sulphate is added in order to precipitate the aluminum and silicates out together, along with any traces of phosphorus and arsenic.

Ammonium sulphate is added to precipitate the vanadium as ammonium vanadate (AMV). This process generates sodium sulphate, which is recycled back to the kiln. The AMV is deammoniated and emerges as a reddish-brown V2O5 powder. Finally, a fusion furnace heats the powder to 800 degrees Celsius. At this temperature, the powder melts and runs onto a water-cooled flaking wheel. The flakes are scraped off into a flake crusher to break up the larger flakes, then conveyed into a bin, from which they are loaded into one-tonne bulk bags ready for shipment. Maracás’ customer, metal broker Glencore, picks up the goods directly at the Maracás loading dock. Vanadium is usually added to steel in the form of ferrovanadium (FeV), created by combining V2O5, aluminum and iron. If markets warrant, at some point in the future, Largo could install an additional plant to convert V2O5 to FeV, which would save the freight costs of shipping the V2O5 elsewhere for conversion and, potentially, back to Brazil. But for now, the economics do not favour that plan. The tailings from vanadium mining are relatively benign, according to Mutchler. They are not easily handled from the

Clockwise from top left: The operations team includes a number of veterans of vanadium operations including Les Ford who has decades of experience working on such projects in South Africa; Glencore has committed to purchase all the vanadium pentoxide the mine produces for at least six years; the mine shipped its first load of vanadium pentoxide last September. 50 | CIM Magazine | Vol. 10, No. 4

MARACÁS MINE

PROJECT DETAILS

LOCATION: State of Bahia, Brazil, 250 km southwest of Salvador CONSTRUCTION START: June 2012 FIRST PRODUCTION: August 2014 INITIAL CAPEX: $241 million ANNUAL PRODUCTION PHASE 1: 9,600 tonnes

Inside the kiln roller

| project profile

RESERVES AND RESOURCES: Proven and Probable Mineral Reserve: 13.1 million tonnes at 1.34% V2O5 Measured and Indicated Resource: 24.6 million tonnes at 1.11% V2O5 Inferred Resource: 30.4 million tonnes at 0.83% V2O5

CONCESSION: 28,587 hectares

operation’s point of view – a plan to dry-stack tailings was scrapped when the filter kept clogging – but also not acid generating. Although Maracás managers said they would reach their 2015 capacity goals with the existing equipment, Largo is busy raising funds for expansion. Built on a limited capital budget during a recession, the facilities that began producing last August are already starting to reach their limits. “It was, as all construction projects are, whittled down to the very minimum specs, the minimum costs that we could get financed and get a project built,” said Mutchler. “Now we’re finding pieces of equipment that we perhaps spec’d a little too tightly are now bottlenecks for us that require either rebuilding or upgrading earlier than we’d planned.” The first round of capital spending ended in May 2014 at US$241 million. Now Largo is looking at raising another $50 million in 2015 and 2016 to open some of those bottlenecks. The kiln can comfortably handle any expansions on the mining side, but much of the plant will need to be scaled up to manage more throughput.

Outlook Largo’s 100 per cent offtake agreement with Glencore dates back to 2008. “When we were doing our construction financing, one of the requirements of the banks was to have a long term offtake agreement,” said Mutchler. Largo had a few selling points to offer Glencore: the material supplied by Maracás exceeds specifications, the production tonnages are large for vanadium and there are no other vanadium mines in the Americas. Largo was also willing to let its vanadium go for market price minus a discount, which at current prices means that Glencore is getting a very good product for cheap. The starting quality of Maracás ore makes it a low-cost operation; in March 2015 operating costs for the month were down to US$3.91 per pound, which compares favourably with an average primary-producer cost of US$4.50. On the other hand, the vanadium market has been rough since last year, hovering below US$5 per pound of V2O5 all spring. Five years ago, long-term forecasts were more positive, but the slump in steel demand brought with it a drop in demand for steel additives. According to Roskill Consulting Group, vanadium is oversupplied and likely to remain so. Smith says he does not believe vanadium will stay unsustainably low. “If you take a look at the last 10 years of vanadium

pricing, V2O5 has not been below $5 a pound for longer than a 30-day period,” he said, “and that’s largely driven by the cost structure of vanadium suppliers.” Many producers quickly drop out when prices bottom, he added. In the longer term, Smith foresees possible knock-on effects from struggling Chinese iron ore mines. More than half of the world’s vanadium comes out of China, most of it recovered from steel slag from Chinese iron ore. If low iron ore prices take out Chinese mines with high operating costs, then the balance of supply and demand could become much more favourable for mines like Maracás. Smith is the former head of Molycorp, and he raised more than $2 billion for its Mountain Pass rare earth mine, so he has experience convincing investors he has a winning proposition. In Maracás, he said, “You’ve got an absolute world-class resource, you’ve got the lowest-cost production among primary producers in the world, and from a vanadium standpoint I don’t think you can find more intelligent people, and more experienced people.”

Future thoughts Steel dominates vanadium’s current fortunes, but the metal also has a potential market in cleaner energy: research into vanadium redox batteries suggests they could store the volatile output of wind turbines and solar panels. “It’s a nascent market and makes up one per cent [of demand] currently,” commented Darcie Ladd, vice-president of investor relations at Largo. “Certainly, if it were to take off, it has huge potential for the market.” She noted that while Maracás has the high-grade material battery applications would require, not all vanadium producers could deliver. For now, with no particular need to find markets for its product, Largo is focused on paying off its debts and bringing Maracás through its ramp-up successfully. “We obviously have the start-up pains that one goes through with a brand-new facility, but those are being managed pretty well,” said Smith. “We’re starting to see consistent production day in and day out, which is very important. Our operators understand what they’re doing, they’re taking ownership of what they’re doing, and they’re building the pride of production into a facility – and that’s after just nine months. So we’re feeling pretty good about our production costs, ramping up production levels and getting our finances in order so that Largo is going to be a significant vanadium supplier for a long time.” CIM June/July • Juin/Juillet 2015 | 51

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Underground connection

technology

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

By Katelyn Spidle

Communication is key in underground mines, and wireless local area networks (WLANs) are connecting miners and their tools to the Internet to allow them to share and retrieve data efficiently, without interference.

Courtesy of Dundee Precious Metals

Dundee Precious Metals surpassed its initial goal of a 30 per cent increase in production at its Chelopech mine in Bulgaria to 400 per cent by adapting Cisco’s Unified Wireless Network.

n 1999 Hard-Line – a Sudburybased heavy equipment remote control supplier – tested wireless technology in Falconbridge’s Craig mine. Hard-Line was using Aironet technology, now part of Cisco Systems, to develop new communications solutions for the mining industry. Its key focus was to discover how wireless technology, relatively new at the time, could improve the safety and security of workers. In the end, the project also revealed wireless technology to be cost-effective, efficient and reliable. “In the early 2000s we approached one of the larger companies and we showed them this technology; it blew their minds,” said Hard-Line president Walter Siggelkow. “It was everything they had asked for in a communications system.” Hard-Line has since converted its original network system, the Mine Area Net, to act as the backbone of the company’s Teleop Tele-Remote Control Systems. This ruggedized technology uses a wireless infrastructure to enable the remote operation of heavy machinery, such as dozers, drills, excavators and rock breakers, thus preventing workers from having to enter hazardous working environments. Hard-Line has won several awards for its innovative designs, and a number of large companies use the Teleop system including Barrick, Glencore, BHP Billiton, De Beers and Agnico Eagle. Hard-Line’s Teleop system illustrates one of the possibilities enabled by wireless connection underground, but it is just the tip of the iceberg. WLANs, such as the ones offered by HardLine and Cisco, have set the bar high for companies that provide communications technology. Wireless technology is changing the way miners and machines communicate, allowing for the creation and exchange of large amounts of data that can reveal new ways of optimizing operations.

Clear communication

Miners have traditionally achieved person-to-person communication using a leaky feeder system. It works by running a coaxial cable through an underground tunnel, sending and receiving radio waves like an antenna. Radio waves “leak out” along the length of the cable through slots in the outer conductor to enable communication. However, over distance these June/July • Juin/Juillet 2015 | 53

Courtesy of Goldcorp

leaks in the cable weaken the signal, so line amplifiers are inserted intermittently. Yet, this can cause problems. “Every time you amplify a signal it actually distorts a little bit,” Siggelkow explained. A leaky feeder operates at a low frequency – roughly 150 megahertz (MHz) outbound and 170 MHz inbound – so the transfer of large amounts of data is not possible. It is also susceptible to interferences, as radio waves are unable to penetrate rock, for example. But even though leaky feeder systems are widely viewed as being outdated, as Siggelkow described, many mines still use them. Doug Bellin, Cisco’s manager of business development for manufacturing and mining, noted that leaky feeders work well for voice calling, and that keeping it as a backup form of communication in case of an emergency is never a bad idea. The general trend, however, is moving towards systems where larger amounts of data can be transferred reliably in real time. That is why miners are opting for WLANs, which can use spread-spectrum technology to emanate high-frequency radio waves from strategically placed access points that are hooked up to an Ethernet cable. Siggelkow explained that 54 | CIM Magazine | Vol. 10, No. 4

when the signal is transmitted, analog data such as voice is converted into digital.

The “Internet of Everything”

Over the last decade or so, it has become increasingly common for everyday items such as a dishwasher or a washing machine to be built with network connectivity that allows them to send and receive data via the Internet. It is part of a growing trend known as the “Internet of Everything.” A couple of years ago, Dundee Precious Metals decided it would make the necessary technological adjustments that would allow it to stay ahead of the curve. The company set a goal to increase productivity at its Chelopech mine in Bulgaria by 30 per cent. Facing financial constraints due to the global economic situation, the information technology (IT) department looked for a solution that did not involve hiring more people or purchasing more vehicles. “We wanted to take the lid off the mine and see what was happening in real time,” said Mark Gelsomini, Dundee’s director of IT. To do this, it adapted Cisco’s Unified Wireless Network and access points. With wireless coverage throughout Chelopech’s 50 kilometres of underground tunnels, it is now possible for miners, supervisors and management to communicate reliably via voice calls, video or instant messaging. These forms of communication allow for efficient face-to-face collaboration between all levels of management, as well as geologists, metallurgists and technicians, to troubleshoot, guide repairs and discuss operations in real time. Location tracking has also been Access points hooked made possible through the placement up to Ethernet cables of radio frequency identification (RFID) serve as the infrastructure that tags on miners’ hardhats and vehicles. enable wireless The location of every miner and vehicle communication underground. shows up in real time on a 3D map visible from a control centre above ground. This “centre of excellence,” as Gelsomini described it, includes remote access to vehicles and routers so the team can quickly retrieve analytics and flip switches anywhere inside the mine from behind a desk. Dundee surpassed its initial goal, increasing production by 400 per cent. By tapping into the Internet of Everything, the company has been able to lower communication and energy costs, improve safety and optimize asset utilization.

Worldwide wireless

Wireless technology has long served office buildings, retail outlets and educational institutions. These spaces with smooth walls and controlled temperatures are relatively free of obstacles that could cause signal interferences. However, Bellin highlighted that these conditions only represent about 10 to 15 per cent of infrastructure in the mining industry. Connecting underground mines is a bit more complicated. “The infrastructure hasn’t been built up to the level to be able to support it at every location,” he noted. And, added Prashanth Shenoy, Cisco’s senior director of enterprise mobil-

Dollars and sense

When Goldcorp embarked on its Éléonore gold project in northern Quebec, it wanted to build the mine of the future. “I believe it’s [in line] with the values of the company to think outside the box and find meaningful solutions to advance the way we do mining,” said Pascal Morin, Goldcorp’s manager of technology and communications. The company decided to use Cisco’s Connected Mining – a multi-service secure Internet protocol (IP) network that supports a variety of features – to help it accomplish three goals: improve worker safety, maximize production efficiency and control production costs. The ruggedized technology offers secure access to any device located anywhere at the mine in real time. Location tracking has improved asset management through vehicle tracking and operational efficiency by allowing managers to make decisions more quickly with real-time data. It has also enhanced emergency response times. Before Éléonore activated the network, it would have taken about 45 minutes to locate all personnel in the event of an emergency. Now, this information is available immediately – a feature that could potentially save lives. Although Bellin noted that it is impossible to calculate the return on investment for safety, equipping Éléonore with the Unified Wireless Network has provided the infrastructure nec-

Courtesy of Dundee Precious Metals

ity, “in mines, there is a lot of interference. That’s a big challenge that we need to resolve.” One solution Cisco developed for its Unified Wireless Network is a system-wide feature called CleanAir Technolo g y . It can detect, identify and map interferences that are not visible to other systems, and then automatically makes the appropriate adjustments to bypass these conditions to ensure a clear connection. Since wireless signals rely on the air for proper transmission, the first things that had to be considered when adapting WLAN technology to the underground mine environment were the extreme fluctuations in temperature, humidity and dust. “Having a ruggedized infrastructure is critical,” Bellin asserted. That means that average touch screen technology, such as a smartphone, is too delicate and would probably malfunction underground. Tablets and similar touch screen devices are being built directly into the machines, so that the hardware itself is adapted to the intense underground environment.

essary to support ventilation on demand, Dundee Precious abovewhich is saving the company between Metals’ ground control centre – known as $1.5 and $2.5 million annually. “centre of “Ventilation on demand is a prime the excellence” (above) example of the Internet of Everything – allows the to track the because now we have the ability to con- company location of every trol and modify the state of a machine miner and vehicle remotely or [create] atmospheric underground. changes in the environment,” Morin said. Éléonore’s ventilation system used to run 24/7, but with ventilation on demand, fans only power on as needed. The system responds to signals emitted from Cisco’s AeroScout industrial RFID tags that are attached to every miner and vehicle. When a signal is detected at a particular location underground, the ventilation on demand system analyses the air quality and emissions levels in that area and then powers on as needed, adjusting the fan speed to the particular data set received from the tags. Ventilation on demand has allowed the company to drastically reduce energy consumption, lowering its air requirements from 1.2 million cubic feet per minute (CFM) to 650,000 CFM.

The future, underground

As with any new technology, there is a learning curve. To help manage it, Dundee has committed to making workers feel empowered. “We’re getting ideas from the miners themselves for improvements on the technology,” Gelsomini said. “Our approach was, ‘Hey guys, we have an idea. Here’s the idea. Play with it and give us your feedback.’ It’s a different approach than just laying down the rules.” Very soon, Siggelkow predicted, the Internet of Everything will become so pervasive that if a mining company wants to June/July • Juin/Juillet 2015 | 55

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ENTERTAINING BIG IDEAS Convention attendees consider new ways to overcome obstacles facing miners around the world By CIM Magazine staff

The annual CIM Convention is a chance for miners to come together to talk shop, discover business opportunities and exchange knowledge. Throughout the jam-packed schedule that included various technical sessions, a trade exhibition and a thought-provoking plenary session, attendees focused on this year’s conference theme, New Dimensions, to help tackle the many challenges facing the mining industry. During a time when companies are freezing conference budgets, CIM exceeded attendee estimates. The event welcomed more than 11,000 delegates from 47 countries to the Palais des Congrès de Montréal from May 10 to 13. The International Society for Rock Mechanics (ISRM) Congress, held in conjunction with this year’s convention, provided the event with even more international exposure and added another 700 delegates to the mix.

Discussing new dimensions

Hundreds of mining professionals attended this year’s New Dimensions-themed plenary session to hear some of the industry’s biggest thinkers discuss innovation, leadership and the future of mining. However, before the panelists took to the stage, International Trade Minister Ed Fast announced nearly $150,000 in funding from the federal government’s Global Opportunities for Associations fund awarded to CIM to help Canadian mining companies expand their businesses abroad. “Encouraging industry associations and their members to engage in the global marketplace is crucial for Canada’s long-term economic growth,” he said.

Quebec’s Minister of Mines, Luc Blanchette, also took time to reiterate the potential of the province’s northern development plan and the importance of social acceptability within local communities. Among the plenary speakers, Pierre Lapointe, president and CEO of ArcelorMittal Mining Canada, discussed his company’s three keys to success: courageous leadership, a simplified organizational structure and operational excellence. “In a context where the competition is ferocious, the cohesion of these basic elements allows us to have a good conversation in a simple structural organization and a structured approach,” he said. June/July • Juin/Juillet 2015 | 57

(from top left, clockwise): 1) Student poster program; 2) Former Quebec premier Jean Charest, now a partner at legal firm McCarthy TĂŠtrault, presented at Franco-Mine 2015, held this year in conjunction with the 2015 CIM Convention; 3) Entertainment at the opening ceremony; 4) Student industry luncheon; 5) Attendees showed off their dance moves at the Joy Global Gala; 6) Leadership congress 58 | CIM Magazine | Vol. 10, No. 4

For Greg Lilleyman, group executive of technology and innovation at Rio Tinto, the company’s drive towards technological innovation, such as its automation initiatives and the recent opening of its Operational Analytics Centre, is another key to success in this day and age: “Technology is changing the industry and it has done so for many years.” But instead of hiding these trade secrets and keys to success from each other, it is essential for the industry to work together to improve operations and the industry as a whole, according to Andrew Scott, senior director of mining information technology at Barrick Gold and chairman of the Global Mining Standards Group. “What I’m really passionate about is trying to get people to work together to better our industry, make it sustainable and, more importantly, well respected,” he remarked. Glencore’s Raglan mine has taken the first step towards sustainability with the recent installation of a windmill to generate electricity. Kristan Straub, vice-president of the mine, said the next step is to integrate three energy storage systems into the power distribution grid. For Jean Robitaille of Agnico Eagle, innovation is a must for the long-term survival of the industry. “The question is, ‘Are we rich enough to not innovate?’” he said. “The cost of innovating is nothing compared to lost revenue.”

Technically speaking Solutions to some of the most advanced, challenging and unique questions facing the mining industry could be found at any one of this year’s technical sessions. The lineup, one of the largest and most comprehensive in recent years, was organized into 12 thematic streams, three of which were symposiums: innovation, maintenance engineering and underground mining, environmental paradigms, West Africa, operational excellence, explosives and blasting, geology and best practices, women in mining, Management and Finance Day, Ethics in Mining Symposium, Iron Ore Symposium and Planetary and Terrestrial Mining Sciences Symposium.

WIM

High-profile guests at the convention gathered at the Women in Mining/VIP reception Tuesday afternoon to show their support for the organization and network with female miners.

M4S

ISRM

Chungsik Yoo, professor of civil and environmental engineering at Sungkyunkwan University in Korea, spoke at the closing ceremony of the 13th International Society for Rock Mechanics (ISRM) Congress, held in conjunction with this year’s CIM Convention at the Palais des Congrès de Montréal. ISRM alone welcomed 700 delegates and included 344 oral presentations and 94 posters covering a diverse range of topics such as the application of geophysics in rock mechanics, remote sensing and seismicity.

Among the technical sessions, the ever-popular Management and Finance Day drew participants interested in learning about two of the most influential make-it or break-it factors for mining projects: hidden and strategic costs. One of the issues on tap was the costs associated with water management. “Companies are starting to move away from thinking about water as an environmental issue and towards thinking of it as a business risk issue,” said Emily Moore, director of water at Hatch. Moore noted that it can cost less to create an integrated water management plan in the early stages of a project, even before the prefeasibility stage. She revealed that costs are becoming clearer for aspects of mining that used to be abstract such as “the cost of a tailings pond that is getting very full with a rainy season coming.”

Expo!

More than 4,000 students and teachers turned This year, the Expo! floor was packed with 484 exhibiting out for CIM’s popular M4S interactive companies showcasing cutting-edge products and services educational show to pan for gold, visit mine from around the world. sites virtually and operate equipment simulators. June/July • Juin/Juillet 2015 | 59

CIM AWARD WINNERS CIM members do a lot of good for the Canadian mining industry day in and day out. The annual convention is an opportunity to bring together industry leaders to recognize and honour their incredible achievements. Here are this year’s CIM award winners: CIM FELLOWSHIP CIM Fellowships are handed out for outstanding continuous contributions to CIM and/or the mining, metallurgical and petroleum industries. Erin Legault-Seguin, Nils Voermann, John A. Folinsbee, Xinjin Cao, Jane Spooner, James John Budac, Roman M. Berezowsky, Gerald Lefrançois, Lawrence Devon Smith, Rick Hutson (posthumous), Robert Schafer

CIM DISTINGUISHED LECTURERS These individuals are chosen on the basis of their achievements in the scientific, technical, managerial or educational facets of the minerals industry. The recipients present their lectures at CIM branch and student chapter meetings across the country. Dean Lee Millar, director of the energy, renewables and carbon management group of MIRARCO, energy theme leader for CEMI’s Ultra-Deep Mining Network, professor of energy in mining at Laurentian University. Lecture: The Journey to the 40% mine Mauro Chiesa, independent financial advisor. Lecture: Fullcosting in the selection of good mine projects Roussos Dimitrakopoulos, professor and Canada Research Chair (Tier I) in sustainable mineral resource development and optimization under uncertainty at McGill University. Lecture: Smart mining complexes and value chains: a technological perspective on risk management and sustainability Ian Thomson, president of ShingleSpit Consultants. Lecture: The social licence to operate: the reality, the myths and the dark side Wilson Pascheto, manager of the materials technology group at XPS Testing and Consulting Services, a division of Glencore. Lecture: Materials technology in the mining industry, opportunities and challenges Bill Steer, founder and general manager of the Canadian Ecology Centre. Lecture: Making informed choices – modern mining: “standing still is going backwards!” CIM DISTINGUISHED SERVICE MEDAL Tom Broddy This medal is awarded to an individual for service to the Institute or the minerals industry deemed meritorious for recognition. Mr. Broddy, manager of engineering projects at Taseko Mines, is currently chair of the Surface Mining Society and will chair CIM Convention & Expo! 2016 in Vancouver. He has served as chair of the Tumbler Ridge and Vancouver branches and as vice-president of District 6. Broddy was instrumental in establishing the University of British ColumAll images by Riccardo Cellere

60 | CIM Magazine | Vol. 10, No. 4

Sean Waller (left), presented the outgoing president’s plaque by current CIM president Garth Kirkham, was among the many honoured at the CIM awards gala.

bia and the British Columbia Institute of Technology student branches of CIM. VALE MEDAL FOR MERITORIOUS CONTRIBUTIONS TO MINING Simon Houlding This medal is presented to an individual who has made a practical contribution to the Canadian mining and metallurgical industry that is applicable to the winning or treatment of Canadian minerals, fuels or metallurgical products. Mr. Houlding, vice-president of professional development at EduMine, has focused on promoting online learning as an effective platform for dissemination of mining expertise for the past 15 years. He founded EduMine in 1999, which has since become the largest provider of online professional development and training for mining in the world. A.O. DUFRESNE EXPLORATION ACHIEVEMENT AWARD Tom Lane This award is given in recognition of exceptional achievements or contributions to mining exploration in Canada. Mr. Lane is director of research development at CAMIRO, where he has played a lead role over the past 13 years in directing and developing 25 projects in technology development for mineral exploration. He also chairs the advisory board for the Mineral Exploration Research Centre and has acted in an advisory role for various geological surveys as the chair of government-industry liaison committees in Ontario and Newfoundland. CIM PRESIDENTS’ ROLE MODEL MEDAL Trang Tran-Valade

This medal is presented to recognize an individual who has set an outstanding example for others and achieved early career accomplishments as a role model within CIM. Ms. Tran-Valade, director of strategic innovations for Bestech, is chair of the CIM Sudbury Branch and a member of the Women in Science and Engineering Sudbury Chapter.

CALL FOR PAPERS

SUBMIT AN ABSTRACT BEFORE AUGUST 1, 2015

XXVIII International Mineral Processing Congress QuĂŠbec City Convention Center September 11-15, 2016

IMPC2016.ORG

About the IMPC Congress The International Mineral Processing Congress has been in existence for more than sixty years, with the first one held in London in 1952. With 39 technical papers and 332 delegates, it was indeed an impressive start to what would become a long and successful series of world-renowned congresses. The IMPC has been a major driving force for the promotion of scientific and technical knowledge in mineral processing and extractive metallurgy across the globe, becoming the most prestigious event in its field in the world today. The congress is truly international in scope with delegates from all parts of the world deliberating and collaborating on critical issues facing the mining and mineral processing industry globally. Processing for All: Meeting Technical, Environmental and Social Challenges.

Technical Streams Characterization: Mineralogy, Geometallurgy Process Control: Instrumentation, Modelling, Simulation Flotation: From Chemistry to Machines Extractive Metallurgy: Hydro and Pyrometallurgy Comminution: AG/SAG, Crushers, HPGR, Tumbling and Stirred Mills Physical Separation: Gravity, Magnetic, Electrostatic, Ore Sorting, Upgrading (physical and chemical) Plant Design: Complex Ores, Integrated Flowsheets Asset Management: Metal Accounting, Sampling New Frontiers: Harsh Environments Including Arctic, Undersea, Space and Beyond Environment and Social Responsibility Recycling Dewatering: Thickening, Filtering, Drying Symposia 4th International Symposium on Iron Control in Hydrometallurgy Electrometallurgy 2016 Rare Earth Elements Light Metals IMPC Commissions: Education, Mineral Processing for the Future

Organized by

SUBMIT YOUR ABSTRACT Share your research and participate in IMPC 2016 as an author; submit an abstract of up to 300 words in English before August 1, 2015.

Supported by

SYNCRUDE AWARD FOR EXCELLENCE IN SUSTAINABLE DEVELOPMENT This award is presented to companies or individuals that have worked to create economic health while seeking sustainable solutions that engage and affect the Canadian public. Sherritt International Corporation – In recognition of worldclass sustainable development at its Ambatovy joint venture. Zhenghe Xu, NSERC Industrial Research Chair in Oil Sands Engineering at the University of Alberta – In recognition of his contribution to the development of oil sands extraction technologies and the enhancement of a fundamental understanding for a sustainable oil sands industry. BARLOW MEDAL FOR BEST GEOLOGICAL PAPER This medal is awarded to the best geological paper in CIM publications from the preceding year. Christine McKechnie, Irvine R. Annesley, Kevin Ansdell

In recognition of “Geological Setting, Petrology, and Geochemistry of Granitic Pegmatites and Leucogranites Hosting U-Th-REE Mineralization at Fraser Lakes Zone B, Wollaston Domain, Northern Saskatchewan, Canada,” which examines the potential economic ore and source rock for uranium deposits in the Athabasca Basin. DISTRICT DISTINGUISHED SERVICE AWARDS Tom Broddy

Every year, the Western, Central and Eastern districts have the opportunity to recognize the contributions of one of their members. MEL W. BARTLEY OUTSTANDING BRANCH AWARD

CIM-BEDFORD CANADIAN YOUNG MINING LEADERS AWARDS These awards celebrate the bright future and development of leadership in the mining industry by recognizing the outstanding achievements of young, current and future Canadian leaders. Christine Bertoli, chief mine engineer, Nickel Rim South mine, Sudbury Integrated Nickel Operations, a Glencore Company Eugene Lei, vice-president of corporate development, Hudbay Minerals Jean-François Verret, director of capital projects and exploration, Raglan mine, Glencore Hélène Timpano, vice-president of business optimization, Kinross Gold Corporation HATCH-CIM MINING & MINERALS PROJECT DEVELOPMENT SAFETY AWARD This award assesses each of the candidates’ safety performances in their respective projects and recognizes the team(s) that best meet or exceed the established criteria. The Mosaic Company – Colonsay mine expansion project Rio Tinto Alcan – AP60 Phase 1 Aluminium Smelter Project, Jonquière, Quebec JOHN T. RYAN TROPHIES These trophies are awarded to mines that experience the lowest reportable injury frequency per 200,000 hours worked in each category. The respective categories include national trophies for coal, metal and select mines, and six regional trophies for four different metal mine regions and two select mine regions.

CIM Amos Branch

This award is given to the CIM branch that demonstrates the most effective progress in reaching the aims and objectives of the Institute. CIM COMMUNITY SERVICE AWARD Sue Tessier This award recognizes a CIM member who has fully given his or her time and devotion to several aspects of community service and support in the minerals industry. Ms. Tessier is currently a board member for the Ontario Society of Professional Engineers. She is also chief warden of Camp 22 Iron Ring Ceremony at Laurentian University and the donations chair for the CIM Sudbury Branch. ROBERT ELVER MINERAL ECONOMICS AWARD Lionel C. Kilburn

This award is presented to a member of the Institute who made significant contributions to the Canadian mineral economics field over the course of the previous year. Mr. Kilburn, prospector, president and CEO of Stuarton Resources, worked to develop the Geoscience Factor Method for valuation of mineral properties and has long been involved in the practice of mineral property valuation in Canada.

62 | CIM Magazine | Vol. 10, No. 4

National (3 categories: Coal, Metal, Select) McArthur River mine – Cameco Corp. (Metals) Greenhills Operation – Teck Coal Ltd. (Coal) Voisey’s Bay mine – Vale Newfoundland and Labrador (Select) Regional Goldcorp – Éléonore mine New Gold – New Afton mine PotashCorp – New Brunswick division Syncrude Canada – Mildred Lake and Aurora mines Sudbury Integrated Nickel Operations – Nickel Rim South mine Vale Canada – Manitoba Operations

TOWARDS SUSTAINABLE MINING (TSM) AWARDS The TSM Awards acknowledge companies, facilities and individuals that have implemented projects and initiatives to expand and promote sustainable development within the mining sector. The two categories for this award are environmental excellence and community engagement. Environmental excellence: Diavik Diamond mine and Dominion Diamond Corporation for their Joint Regional Grizzly Bear DNA Program Community engagement: Vale’s Manitoba Operations for their Thompson Economic Diversification Working Group

An Introduction to Cutoff Grade: Theory and Practice in Open Pit and Underground Mines (with a new section on blending optimization strategy) Cut-off grades are essential in determining the economic feasibility and mine life of a project. The fundamentals of cut-off grade calculation, first established by Ken Lane forty years ago, are revisited. In this course it is shown how direct and indirect costs, opportunity costs imposed by operational constraints, and other factors, such as political risk, legal, environmental and regulatory requirements, must be taken into account. Mathematical equations are developed and graphical analytical methods are displayed, which can be used to solve most cut-off grade estimation problems. It is shown how minimum cut-off grades are estimated and how they must be modified to take into account constraints imposed by mine or mill capacity, or by limits on sales volumes. Multiple practical examples are given, illustrating the role of cut-off grades in mine planning, in allocating material to different processes, in optimizing mill operating conditions, and in poly-metallic deposits.

INSTRUCTOR Jean-Michel Rendu, JMR Consultants, USA • DATE September 9-11, 2015 • LOCATION Montreal, Quebec, Canada

Geostatistical Mineral Resource Estimation and Meeting the New Regulatory Environment: Step by Step from Sampling to Grade Control This course is designed according to the latest regulations on public reporting of Mineral Resources. It aims at showing how state-of-the-art statistical and geostatistical techniques help answering the requirements of those regulations in an objective and reproducible manner. A particular emphasis is put on understanding sampling and estimation errors and how to assign levels estimation confidence through the application of resource classification fundamentals. In addition to a solid introduction to mining geostatistics this course provides a comprehensive overview of industry’s best practices in the broader field of Mineral Resource estimation.

INSTRUCTORS Marcelo Godoy, Newmont Mining Corp., Denver; Jean-Michel Rendu, JMR Consultants, USA; Roussos Dimitrakopoulos, McGill University, Canada; and Guy Desharnais, SGS Canada Inc., Canada • DATE September 14-18, 2015 • LOCATION Montreal, Quebec, Canada Optimization and Risk Management in Strategic Mine Planning: Unearthing material value in mining complexes Growing volatility and uncertainty in global metal markets highlight the need to focus on new technologies that can unveil significant value and reliability to the performance of mining operations. This three-day course explores the foundations of strategic mine planning and stresses the new generation of applied technologies related to: (a) simultaneous optimization of integrated mining and processing operations, and (b) orebody risk management with new stochastic mine planning optimization developments. INSTRUCTORS Roussos Dimitrakopoulos and Ryan Goodfellow, McGill University, Canada; and Brian Lambert, Minemax, USA • DATE September 21-23, 2015 • LOCATION Montreal, Quebec, Canada

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SECTION francophone 72 Les noms à connaître 10e

Pour célébrer le anniversaire du CIM Magazine, nous mettons à l’honneur 10 personnes dont l’impact se fera indéniablement ressentir dans le déroulement de l’année à venir. Par Peter Braul, Kelsey Rolfe, Michael Yang, Zoe Koulouris, Ian Ewing, Chris Balcom, Eavan Moore

67 Lettre de l’éditeur 67 Mot du président

La version française intégrale du CIM Magazine est disponible en ligne : magazine.CIM.org/fr-CA

68 Les actualités en bref 78 Les chiffres parlent d’eux-mêmes

81 De grandes idées intéressants : Récapitulatif du congrès

85 Résumés techniques

CÉLÉBRONS LES CONNAISSANCES À LA PUISSANCE 10 L’ICM vous aide à vous développer de manière exponentielle.

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lettre de l’éditeur

Dix ans de CIM Magazine

euilletez le premier volume du CIM Magazine et votre première impression sera sans doute qu’une décennie dans cette industrie s’écoule en l’espace d’un battement de cœur. « Le projet Renard... pourrait bien devenir la première mine de diamants du Québec », annonçait en 2006 Eira Thomas, présidente et directrice générale de Stornoway Diamonds. Dans les Territoires du Nord-Ouest (T.N.-O.), la société Fortune Minerals s’affairait déjà à creuser des galeries d’accès pour prouver la viabilité de son projet NICO d’or-cobalt-bismuth-cuivre. Ce ne sera pas avant l’année prochaine que les prévisions de Mme Thomas se confirmeront et que la mine Renard produira son premier minerai. Pour l’équipe de Fortune, qui doit encore trouver un financement pour son projet, les années qui se sont écoulées ont mis à rude épreuve son agilité et son esprit d’initiative. Ce ne sont là que deux des nombreux projets de développement parmi tant d’autres traités dans les tous premiers numéros du CIM Magazine ; certains ont atteint le stade de la production, mais la plupart n’y sont pas encore. Un retour en arrière est relativement simple ; chaque effet peut facilement être associé à une cause antérieure. Pour les années à venir, il n’est pas si simple de discerner les projets qui prendront leur envol de ceux qui seront en perte de vitesse. Lorsque la direction de l’ICM a décidé de mettre fin au CIM Bulletin au bout de près de 80 ans, la nouvelle destinée de la publication n’avait été tracée que très approximativement. Les membres aspiraient à un format de type magazine, aussi l’équipe des publications, dotée d’un budget très serré et du seul soutien des membres et des sociétés de l’ICM, a jeté l’ancre, ou plutôt l’encre, et a créé le CIM Magazine. Le lancement de cette nouvelle publication a marqué la première étape, puis il a fallu lui donner une orientation et mettre le processus en marche. Tout au long de ce parcours, notre dynamique n'a cessé de changer. Sous la direction de l'experte Angela Hamlyn, qui a ensuite endossé le rôle de directrice de la rédaction, notre budget a augmenté, ce qui nous a permis de devenir plus ambitieux au niveau des thèmes que nous couvrions. Tout aussi important, le CIM Journal, dont les documents techniques font tous l'objet d'une évaluation par les pairs, est devenu une contrepartie essentielle du magazine. Je tiens à remercier et à féliciter chacune et chacun de vous.

mot du president

Thank you! Merci beaucoup!

ous constaterez que mon message présidentiel est d’un style direct et simple, allant droit au but et visant à livrer un message clé. Comme il s’agit du premier, je tiens à saisir cette occasion pour vous exprimer mes sincères remerciements. Au moment où j’écris ces mots nous sommes nombreux à être tout juste de retour du Congrès de l’ICM, tenu à Montréal, un événement qui s’est déroulé sous le signe de l’excellence à tout point de vue. Qu’il s’agisse du congrès inspirant sur le leadership, de l’ambiance du Cirque du Soleil pendant les cérémonies d’ouverture (parrainées par les sociétés de l’ICM), de la séance plénière si animée, du programme de formation technique, de la célébration de l’excellence au gala de remise des prix commandité par Caterpillar ou du crescendo du Gala Joy Global, ce fut très agréable de voir tant de visages familiers et de rencontrer tant de nouvelles personnes que j’espère avoir l’occasion de revoir bientôt. Je dois dire, en toute impartialité, que ce fût l’un des meilleurs congrès auxquels j’ai participé au cours des quelque 20 dernières années. Notre congrès annuel nécessite une énorme organisation et ne serait pas possible sans le travail dévoué de nos commanditaires, de nos employés, des bénévoles, des exposants et surtout, sans vous, les membres. Merci pour tout ce que vous avez fait et continuez de faire. Votre contribution ne passe pas inaperçue et nous l’apprécions vraiment. Cependant, comme nous le constatons chaque année, il y a toujours des petites imperfections qui nous rappellent que nous devons rester vigilants et ne pas nous reposer sur nos lauriers. Le gala de cette année a été très réussi et a rendu hommage aux meilleurs de l’ICM. Toutefois, il est évident que nous pouvons faire mieux. Nous tirerons les leçons du congrès de cette année, nous nous améliorerons et je vous promets que l’événement de Vancouver 2016 sera le plus réussi de tous. Alors, je demande à tous ceux qui étaient à Montréal cette année de commencer à se préparer pour le congrès de Vancouver prévu en mai 2016. Quant aux absents de cette année, ne manquez pas de nouveau notre congrès et joignez-vous à nous en 2016.

Ryan Bergen, Rédacteur en chef editor@cim.org @Ryan_CIM_Mag Garth Kirkham Président de l’ICM @GarthCIMPrez June/July • Juin/Juillet 2015 | 67

Gracieuseté d’Alamos Gold

Les actualités en bref

Située au Mexique, la mine Mulatos (ci-dessus) fera partie du portefeuille de projets appartenant à la nouvelle société Alamos, née de la fusion d’Alamos Gold et d’AuRico Gold.

Alamos et AuRico fusionnent Deux sociétés minières établies à Toronto ont annoncé leur fusion amicale dans le but de faire passer la nouvelle société au rang des producteurs aurifères de taille moyenne. En avril, Alamos Gold et AuRico Gold ont signé une entente évaluée à 1,5 milliard de dollars américains en avril avec pour objectif de devenir une seule société dénommée Alamos détenant des actifs en exploitation en Ontario et au Mexique ainsi qu’une participation minoritaire dans une société essaimée. Selon les modalités de l’entente, les actions de la nouvelle société Alamos seront partagées également entre les actionnaires des deux petites sociétés. La nouvelle société possédera la mine Young-Davidson d’Aurico, en Ontario, ainsi que les mines Chanate et Mulatos d’Alamos, situées toutes deux au Mexique. Elle détiendra en outre 4,9 % de la société essaimée, AuRico Metals, et 68 | CIM Magazine | Vol. 10, No. 4

son projet cuproaurifère Kemess, dans le nord de la Colombe-Britannique. Les actionnaires des anciennes sociétés Alamos et AuRico partageront les actions restantes. « La combinaison de la production diversifiée des trois mines et d’une réserve de projets axés sur la croissance à faible coût dans des territoires sécuritaires en font une société aurifère de taille moyenne de premier plan », a déclaré le chef de la direction d’Alamos, John McCluskey, qui sera le chef de la direction de la nouvelle société. « Nous sommes convaincus que la nouvelle société Alamos sera l’un des véhicules d’investissement les plus attrayants parmi les producteurs d’or de taille moyenne. » Cette récente transaction reflète la tendance des petites sociétés minières à unir leurs forces pour réduire leurs dépenses pour faire face à des coûts plus élevés et à la baisse du prix de l’or, lequel oscillait autour des 1 200 $ US l’once à la fin du mois d’avril. Selon un

rapport de RBC Marchés des Capitaux publié fin mars, comme le secteur de l’or connaît un ralentissement, il faut s’attendre à une hausse importante des fusions et des acquisitions dans le secteur minier au cours des prochaines années, laquelle se traduira par « des sociétés moins nombreuses, mais mieux financées. » Au début de l’année, Tahoe Resources et Rio Alto Mining se sont regroupées dans le cadre d’une entente amicale évaluée à 1,2 milliard de dollars américains, et les sociétés minières canadiennes Centerra Gold et Premier Gold Mines se sont entendues pour développer conjointement le projet aurifère phare de Premier et d’autres propriétés dans le nord de l’Ontario. Le chef de la direction d’AuRico, Scott Perry, qui deviendra le président exécutif de la société essaimée AuRico Metals, a déclaré que la décision d’avoir des sociétés distinctes était logique, car le projet Kemess est un projet de développement cuproaurifère.

les actualités en bref « Si vous regardez tous les actifs en exploitation et les projets de mise en valeur dans la nouvelle Alamos, ce sont tous des projets purement aurifères », a souligné Scott Perry lors d’une conférence téléphonique avec des analystes. « Nous avons examiné le projet Kemess et jugé qu’il ne leur correspondait pas parfaitement. » La nouvelle société Alamos devrait produire de 375 000 à 425 000 onces d’or en 2015, avec une production potentielle de 700 000 onces d’or. – Michael Yang

Sudbury finance l’innovation dans le secteur de l’exploitation minière ultra-profonde Le Centre d’excellence en innovation minière (CEIM) reçoit un bon coup de pouce sous la forme d’une subvention publique afin de poursuivre ses travaux de recherche et développement sur l’exploitation minière ultra-profonde. En avril, le conseil municipal du Grand Sudbury et son organisme de développement économique, la Société de développement du Grand Sudbury (SDGS), ont voté à l’unanimité l’octroi, au cours des cinq prochaines années, d’une subvention de fonds publics d’une valeur totale d’un million de dollars destinée au programme d’accès à la commercialisation du CEIM. Cette subvention vise à soutenir le Projet d’exploitation minière ultra-profonde d’une valeur de 47 millions de dollars, axé sur les entreprises, et à trouver des solutions aux défis posés par l’exploitation minière à des profondeurs de plus de 2 500 mètres. Des possibilités de financement seront offertes à de petites et moyennes entreprises de la région afin de les aider à trouver, mettre au point et tester des outils et des technologies d’exploitation minière ultraprofonde. Selon Eric Maag, directeur de l’innovation et de la prospérité au CEIM, les fonds aideront à soutenir financièrement 29 projets différents dans quatre principaux champs d’innovation : réduction du risque de contrainte sur la roche, réduction de l’énergie, efficience

opérationnelle et confort des travailleurs dans les mines en profondeur. « La plupart des projets auxquels nous travaillons ont un objectif à court terme, visent un marché solide et sont sur le point d’être commercialisés », a déclaré Eric Maag. L’un d’eux, celui de Jannatec Technologies, porte sur un équipement de protection individuel qui comprend un dispositif portable connecté permettant aux mineurs de réguler leur température corporelle, de surveiller leurs signes vitaux et de communiquer avec un opérateur en surface lorsqu’ils travaillent à une grande profondeur. Jannatec, qui a dévoilé son équipement de protection individuel au Congrès 2015 de l’ICM, en mai, prévoit le commercialiser au cours des deux prochaines années. « L’exploitation minière ultra-profonde présente un grand intérêt pour les résidents de Sudbury », a déclaré le maire de Sudbury, après l’approbation de l’aide financière par le conseil municipal. « Par sa décision de soutenir le programme d’accès à la commercialisation, le conseil municipal souligne le rôle vital du secteur des mines, de l’approvisionnement et des services miniers pour notre prospérité économique. » L’an dernier, le gouvernement fédéral a octroyé un financement de 15 millions de dollars au projet d’exploitation – M.Y. minière ultra-profonde.

PwC dévoile son enquête sur l’exploitation minière en Colombie-Britannique Comme le montre l’enquête réalisée par PwC pour 2014 sur l’exploitation minière en Colombie-Britannique (C.B.), l’année qui vient de s’écouler a été difficile pour le secteur dans cette région. Le réseau de services professionnels a publié son nouveau rapport annuel et l’a présenté lors du petitdéjeuner rencontre organisé le 5 mai dernier à l’occasion de la B.C. Mining Week (la semaine de l’industrie minière de la Colombie-Britannique), à laquelle ont pris part 150 membres de l’industrie et des médias. D’après le rapport, le ralentissement économique continu de la Chine et la

saturation de l’offre qui l’a accompagné ont tous deux contribué à décimer la production de charbon métallurgique. Le prix du charbon métallurgique est tombé en dessous de 100 $ US la tonne, aussi les jours heureux de 2011 (lorsque les prix atteignaient 330 $ US la tonne) sont depuis longtemps passés aux oubliettes ; en effet, de nombreuses mines de Colombie-Britannique, dont les mines Wolverine de Walter Energy et Trend d’Anglo American, ont dû suspendre leurs activités en 2014. Le cuivre n’a pas connu autant de déboires. En 2014, il représentait 32 % du revenu net de l’industrie de Colombie-Britannique, très proche du charbon métallurgique, et son prix est resté supérieur à 3 $ US la livre pendant une bonne partie de l’année, avec un prix record de 3,20 $ US la livre dans l’été. À la fin de l’année cependant, les prix ont chuté en dessous de la barre des 3 $ US (un déclin considérable par rapport aux 4,60 $ US atteints en 2011) en raison des craintes liées à l’offre excédentaire. Cette période de marasme liée au prix des marchandises s’est accompagnée du déclin en 2014 des revenus et des marges de profit pour les sociétés de C.-B. Le revenu net avant déduction des impôts a chuté de 1,4 milliard $ en 2013 à 288 millions $ ; quant aux dépenses en immobilisations, elles sont passées de 1,8 milliard $ à 1,5 milliard $. Par ailleurs, les petites sociétés d’exploration minière avaient encore du mal à recueillir des capitaux. Un rapport complémentaire de PwC (lancé le même jour que l’enquête sur la C.-B.) passait en revue les 100 petites sociétés minières les plus influentes cotées à la bourse de croissance TSX et montrait que le financement par capitaux propres n’avait permis de récolter que 685 millions $ durant l’exercice prenant fin le 30 juin 2014, ce qui représente un déclin de plus de 100 millions $ par rapport à l’année précédente. Bill Bennett, ministre des mines et de l’énergie de la Colombie-Britannique, faisait partie des conférenciers invités à l’événement et a fait de son mieux pour remonter le moral des participants. Le prix des marchandises reste un sujet June/July • Juin/Juillet 2015 | 69

– Christopher Pollon

Vol d’or à main armée à la mine McEwen En avril, environ huit voleurs lourdement armés, ont pénétré par effraction dans la mine à ciel ouvert El Gallo 1 de la société McEwen Mining, dans l’État mexicain du Sinaloa, où ils se sont emparés de quelque 900 kilos de concentré aurifère renfermant 7 000 onces d’or. Le chef de la direction, Rob McEwen, a confirmé que la valeur 70 | CIM Magazine | Vol. 10, No. 4

Gracieuseté de McEwen Mining

relativement douloureux, mais il a rappelé aux participants de l’industrie que la Colombie-Britannique avait parcouru beaucoup de chemin depuis l’effondrement de l’industrie en 2008, et qu’elle avait affiché ces cinq dernières années une augmentation de ses revenus miniers bruts, de ses revenus nets, de ses actifs totaux et de l’embauche par rapport aux niveaux de 2010. Le gouvernement continue de soutenir activement l’industrie, ajoutait M. Bennett. Les impôts sur les sociétés dans la province restent parmi les plus bas au Canada (en deuxième position) et le budget octroyé aux mines et à l’énergie par le ministère dirigé par M. Bennett augmente de 40 % cette année. La délivrance rapide de permis reste une priorité, et le gouvernement de Colombie-Britannique continue d’investir dans des infrastructures portuaires, routières et aéroportuaires, ainsi que dans des réseaux électriques. L’achèvement l’année dernière de la ligne de transport d’énergie du nordouest, associé au développement de l’infrastructure qui a permis à la mine Red Chris d’Imperial Metals d’entrer en phase de production, est de bon augure et permettra aux rapports de PwC d’être plus optimistes à l’avenir, concluait M. Bennett « La ligne de transport d’énergie du nord-ouest représente une fraction particulièrement importante de notre infrastructure », déclarait-il, « car environ 25 % des plus grands projets d’exploitation minière se trouvent dans la partie nord de la province et auront désormais accès au réseau électrique. »

Lingots d’or produits par la mine el Gallo de McEwen Mining, au Mexique.

du concentré volé était de 8 millions de dollars américains. Aucun employé n’a été blessé pendant le cambriolage et les équipements n’ont subi aucun dommage. M. McEwen, à qui on a demandé comment la société allait se remettre de l’incident, a répondu que c’était déjà fait. « La capacité de production s’accélère et est en bonne voie d’atteindre les prévisions de l’exercice », a-t-il dit. El Gallo 1 devrait produire 50 000 onces d’or en 2015. Le concentré volé représentait une partie importante de la valeur d’un stock excédentaire de 30 jours, alors que la production était en hausse de 60 % au premier trimestre. Bien que le montant de la perte soit considérable, M. McEwen a confirmé que l’assurance de la société en couvrira la plus grande partie, mais pas la totalité. Les autorités mexicaines ont ouvert une enquête, mais aucune piste n’a été signalée dans les semaines qui ont suivi le vol. M. McEwen a mentionné que la société ignore pendant combien de temps l’enquête va se poursuive. El Gallo 1 a atteint la production commerciale en janvier 2013. Elle a produit environ 38 000 onces d’or et

26 000 onces d’argent en 2014. – Katelyn Spidle

Le lourd coût associé au développement minier dans le Nord L’exploitation des vastes richesses minérales du Nord canadien est un projet d’édification nationale coûteux qui, pour être mené à bonne fin, nécessitera la mise en place d’importants allégements fiscaux et le soutien du gouvernement au chapitre de la construction d’infrastructures. Voilà la conclusion d’un rapport publié en avril, qui souligne que le coût lié à l’exploration et à la construction de nouvelles mines est jusqu’à 2,5 fois plus élevé dans le Nord canadien – défini comme englobant les territoires canadiens et les régions nordiques des provinces – que dans les régions du sud. Parmi les plus gros défis, mentionnons les conditions météorologiques difficiles, la faible densité de population et le manque d’infrastructures, notamment les ports, les centrales et les routes. « Des investissements judicieux et un régime d’imposition avantageux des-

tinés à pallier les obstacles propres à ces régions seront la meilleure façon d’attirer d’autres investissements pour des projets miniers », a affirmé Pierre Gratton, président et chef de la direction de l’Association minière du Canada et coauteur du rapport intitulé Corriger les inégalités – Soutenir les activités d’exploration et d’exploitation minières dans les régions éloignées et nordiques du Canada avec l’ACPE, la Chambre des mines du Yukon, la Chambre des mines des Territoires du Nord-Ouest et du Nunavut, ainsi que l’Association des firmes d’ingénieurs-conseils (Canada). Le rapport renferme une série de recommandations en matière de politiques visant à tenir compte du surcoût lié à l’exploitation minière dans le Nord. Ces recommandations comprennent l’augmentation du crédit d’impôt pour l’exploration minière (qui passerait à 25 %) et la mise en place d’un programme incitatif inspiré du modèle australien qui subventionne les coûts de forage des entreprises admissibles à hauteur de 50 % (80 % du coût étant payé au moment de l’achèvement des travaux de forage et 20 %, au moment de la réception du rapport final). En ce qui a trait à la mise en valeur des mines, les auteurs recommandent d’offrir à toutes les entreprises un crédit d’impôt à l’investissement de base de 10 % pour toutes les dépenses en immobilisations (pas seulement les infrastructures) associées à un projet et d’offrir un crédit d’impôt à l’investissement supplémentaire de 15 % pour certaines infrastructures (p. ex., routes, ponts, ports, barrages et lignes ferroviaires). Le rapport recommande également la mise sur pied d’une nouvelle société d’État fédérale – analogue à l’Alaska Industrial Development and Export Authority – pour assurer le financement à long terme nécessaire aux projets d’in– C.P. frastructure.

Décès d’un cadre de Noront Paul Semple, chef de l’exploitation de Noront Resources et vétéran cumulant 30 ans d’expérience dans l’industrie minière, est décédé le 15 avril dernier, à

Paul Semple, chef de l’exploitation de Noront Resources, est décédé le 15 avril dernier, à la suite de complications rénales.

l’âge de 55 ans, à la suite de complications rénales. Considéré depuis cinq ans comme le visage et la voix de la jeune société minière du Cercle de feu, M. Semple avait aidé l’entreprise à revendiquer sa place dans les basses terres de la baie James et avait piloté la mise en valeur de son gisement Eagle’s Nest de nickel-cuivre-platine, aujourd’hui une mine phare de classe mondiale. Toutefois, pour un grand nombre de personnes qui ont travaillé avec lui, il était beaucoup plus qu’un partenaire d’affaires. « Paul croyait sincèrement en l’importance de nouer des relations transcendant la simple relation d’affaires », a expliqué Mark Baker, viceprésident responsable des projets à Noront. « Il comprenait que beaucoup pouvait être accompli, par les deux parties, quand une relation repose sur des bases solides. » Selon M. Baker, Paul Semple avait un don inné pour comprendre et établir des liens avec les gens de son entourage et s’en occuper. « Peu importe qui vous étiez ou les circonstances, Paul trouvait toujours le temps de discuter et vous donnait toujours l’impression qu’il vous parlait comme à un ami », dit-il. Avant de se joindre à Noront en 2009, Paul Semple avait consacré une bonne partie de sa carrière à des projets

Gracieuseté de Noront Resources

les actualités en bref

internationaux de mise en valeur de mines à titre de vice-président et de directeur général de Kilborn Engineering, puis plus tard comme vice-président de SNC-Lavalin jusqu’en 2001. Auparavant, il avait cofondé Penguin Automated Systems et était vice-président responsable des projets de Western Goldfields. M. Semple était également un membre actif de l’ICM et en 2005, il avait reçu la médaille de l’ancien président. Pour honorer sa mémoire, des amis proches et des membres de sa famille ont décidé de s’associer à DAREarts, organisme de bienfaisance au sein duquel il œuvrait depuis 2007, et l’ICM afin de créer un fonds de bourses d’études, le Paul Semple Scholarship Fund for Innovative Mines. Les bourses d’études soutiendront les jeunes du nord de l’Ontario qui manifestent un sens de l’innovation et un intérêt marqué pour les pratiques et les technologies liées à l’exploitation minière. « Les bourses d’études font partie des choses que Paul aimait bien : les collectivités du nord de l’Ontario avec lesquelles il sentait une appartenance, le brillant avenir de leur jeunesse, l’innovation et l’industrie minière », a raconté M. Baker. Les parties intéressées à faire un don sont invitées à communiquer avec DAREarts. – M.Y. June/July • Juin/Juillet 2015 | 71

NOMS À CONNAÎTRE 2015 Passez dix ans dans l’industrie minière et vous aurez sans doute l’occasion de rencontrer un grand éventail de personnes étroitement liées à la réussite de ce secteur. Pour célébrer le 10e anniversaire du CIM Magazine, nous nous sommes entretenus avec 10 personnes dont l’impact se fera indéniablement ressentir dans le déroulement de l’année à venir. Compilé par Chris Balcom, Peter Braul, Ian Ewing, Zoe Koulouris, Eavan Moore, Kelsey Rolfe, et Michael Yang

LES NOMS À CONNAÎTRE

Riccardo Cellere

Maintenant coprésident de Barrick Gold, il est revenu au Canada après avoir passé plusieurs années au Botswana à la direction de Debswana, le plus important producteur de diamants au monde, et il est toujours enthousiaste à l’idée d’entreprendre un autre grand projet.

ICM : Y a-t-il une mine de Barrick qui vous stimule?

Gowans : Il y en a deux, pour des raisons différentes. Pueblo Viejo, en République dominicaine, qui est une nouvelle exploitation : j’étais avec Placer Dome lorsque nous cherchions à faire l’acquisition de cette mine. C’est la seule exploitation qui produit plus d’un million d’onces par année. Elle a une longue durée de vie et un potentiel élevé. Sa métallurgie est très complexe et, en tant que métallurgiste, son schéma de traitement m’intéresse beaucoup.

Jim Gowans

Accro à l’adrénaline

Loin de vouloir se vanter, Jim Gowans affirme que c’est une chose bien simple qui le distingue de ses pairs de l’industrie minière : sa grande expérience. Si l’on suit son raisonnement, on peut dire qu’il suffit de demeurer 40 ans dans l’industrie pour se hisser à la tête de la plus importante société aurifère du monde. Cependant, le succès de M. Gowans est la preuve que c’est ce que nous faisons de notre temps qui compte : jusqu’ici au cours de sa carrière, il a réussi à bâtir six mines importantes. 72 | CIM Magazine | Vol. 10, No. 4

La mine de Cortez faisait partie de mes chantiers avant que je quitte Placer Dome, et c’est agréable de constater à quel point elle a évolué depuis l’époque où elle faisait partie des projets en développement, sachant que l’exploration que nous menions dans les montagnes de Cortez constitue maintenant le cœur du corps minéralisé et qu’il y en a deux autres à proximité que nous continuons de mettre en valeur; tout cela est donc très stimulant. Il y a aussi quelques-uns de nos projets liés à des propriétés à un stade d’exploration avancé auxquels j’aimerais prendre part et que j’aimerais éventuellement bâtir.

ICM : Selon vous, comment votre personnalité s’intègre-t-elle à l’équipe de Barrick?

Gowans : Je travaille du côté de l’exploitation, de l’exploration et des projets, tandis que l’autre coprésident, Kelvin Dushnisky, œuvre du côté des permis d’exploitation : relations avec les gouvernements, environnement, obtention de permis et autres activités de ce type. Lui et moi formons une bonne équipe parce que nos compétences se complètent très bien et nous nous entendons bien. Je ne dirais pas que nous sommes nécessairement d’accord sur tout, mais nous

avons très à cœur le succès de l’entreprise, de sorte que, même si nous pouvoir avoir beaucoup de discussions, nous cherchons toujours à obtenir un résultat qui fonctionne pour l’entreprise. Il s’agit de nous inciter mutuellement à nous dépasser; il en va de même pour le reste de l’équipe.

ICM : Qui considéreriez-vous comme un mentor?

Gowans : Hank Giegerich, de Cominco, a été un excellent mentor. J’ai bâti Red Dog et Polaris avec lui. Sandy Laird, à Placer Dome, a fait un merveilleux travail de mentorat et de formation auprès des jeunes. Tous deux sont actifs au sein de l’ICM depuis des années. Nous avons besoin de telles personnes-ressources que nous pouvons appeler pour leur demander leur opinion. Nous avons besoin de gens qui nous parlent franchement et nous donnent de bons conseils.

ICM : Qu’aimeriez-vous apporter à Barrick de vos expériences passées?

Gowans : J’ai bâti deux mines dans chacune des trois autres entreprises au sein desquelles j’ai travaillé. J’y ai appris la discipline et la rigueur nécessaires à la mise en valeur des mines. Je pense que c’est quelque chose dont je peux faire profiter Barrick. J’en vois déjà certains aspects, mais ce sera l’un des succès qui définiront notre avenir.

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ICM : Votre rémunération personnelle a été dévoilée dans la presse récemment. Comment composez-vous avec ce type de publicité?

Gowans : Je prends cela avec un grain de sel parce que je connais les faits. Les chiffres exposés dans la presse n’étaient pas techniquement exacts parce la rémunération totale qui y était rapportée reposait sur les actions et d’autres titres similaires. Il s’agit donc d’une valeur projetée dans l’avenir. La rémunération que je reçois n’en est qu’une petite fraction. Si je recevais le salaire dont la presse a fait mention, je serais vraiment heureux!

ICM : Comment gardez-vous le contrôle quand la vie devient mouvementée?

Gowans : En fait, j’adore cela. Certains jeunes qui m’accompagnent dans les Andes sont exaspérés quand l’altitude leur donne des maux de tête alors que je suis le seul membre de l’équipe à avoir une bonne nuit de sommeil. Je ne perds pas l’appétit et je ne souffre même pas du décalage horaire! Quand j’arrive quelque part pour voir une mine, que ce soit en Zambie, à la mine de Lumwana, ou en Arabie saoudite ou encore dans les Andes, au Chili et en Argentine, j’éprouve un sentiment d’euphorie à l’idée de voir une exploitation et de parler avec mon équipe sur ce que nous devons faire pour l’améliorer. Cela me donne une dose d’adrénaline. P Peter Braul

Euridice Gonzalez

Une enseignante au sommet D’après McEwen, les résultats du forage contribueront à améliorer la teneur de l’or et à prolonger la durée de vie de la mine, bien que l’on ne sache pas encore dans quelle mesure. « Nous espérons pouvoir tirer profit de nos ressources pour une année et [prolonger la durée de vie de la mine] autant que possible », ajoutait Mme Gonzales.

« Nous sommes entourés de zones très prometteuses », expliquait Mme Gonzales, âgée de 45 ans. « Les résultats dont nous disposons jusqu’à présent pourront être évalués à compter du deuxième semestre, mais [nos] résultats sont, selon moi, relativement satisfaisants. »

Pour elle, le projet El Gallo 1 présente un lien particulier sur le plan personnel. Elle a en effet joué un rôle déterminant dans l’acquisition des terres du projet en 2007 et a servi d’intermédiaire entre McEwen et les instances gouvernementales ainsi que les communautés afin d’obtenir l’approbation pour les projets d’exploration.

Gracieuseté de Goldcorp

Dans la région de Sinaloa, au Mexique, où McEwen Mining explore quatre zones productives possibles, la directrice nationale de la société pour le Mexique est chargée de surveiller une grande partie du développement du projet El Gallo 1 cette année.

La société McEwen a annoncé en avril le lancement d’un programme d’exploration d’une valeur de 5,5 millions $ pour le Mexique qui couvrira deux gisements avancés, à savoir San José del Alamo au nord d’El Gallo 1 et Twin Domes au nord-est. Le budget couvre également deux zones prometteuses en phase préliminaire, à savoir San Miguel, au sud-est de la fosse de Samaniego d’El Gallo 1 et Tule Alto, au nord du site, qui affichent « de fortes indications de la présence d’or et d’argent. »

« C’est un peu comme si je regardais mon enfant grandir », plaisantait-elle, car elle a assisté au développement d’El Gallo depuis son acquisition. « C’est un travail de longue haleine, mais nous sommes très engagés et il s’agit d’une cible au potentiel élevé. » Mme Gonzales, qui est née dans le Sinaloa, était enseignante certifiée d’anglais avant de rejoindre McEwen en 2002 au poste d’aide Sinaloa aux procédés, et de se forger une carrière au sein de la société. En 2012, elle a été nommée au poste de directrice nationale pour le Mexique. Selon elle, le secteur minier a offert à Sinaloa de nombreuses possibilités que sa ville natale n’aurait pas eu autrement. « J’ai assisté à un grand changement dans cette région où j’ai vécu plus de 30 ans, et ce grâce à l’exploitation minière », déclarait-elle. « [Elle a développé] un nouveau mode de vie dans des régions qui n’étaient jusqu’ici jamais concernée par les moindres développements. » P Kelsey Rolfe June/July • Juin/Juillet 2015 | 73

Brendan Cahill

Le cadet des sociétés argentifères

Même pour les chefs de file les plus chevronnés, être à la tête d’une société d’exploitation de mines argentifères au sein d’un marché en pleine crise est une tâche ardue. À 35 ans, Brendan Cahill, de la société Excellon Resources, est le second plus jeune président et directeur général du secteur, bien qu’il n’accorde pas une grande importance à ces statistiques. « La plupart du temps, j’oublie réellement que je suis plus jeune », déclarait-il. « C’est aussi l’une des raisons pour lesquelles je me suis lancé dans l’industrie minière ; les personnes qui la compose gardent un esprit jeune et sont très agréables à fréquenter. » L’autre raison émane des premières années de sa carrière au cabinet d’avocats Davies Ward Phillips & Vineberg LLP, après qu’il ait obtenu son diplôme de droit à l’université de Western Ontario. « Le début de ma carrière coïncidait avec un pic de transactions exceptionnelles sur le marché, et j’ai eu cette grande chance de servir d’expert-conseil dans le rachat de Placer Dome par Barrick Gold, une transaction de plusieurs milliards de dollars », se souvenait-il. « Après cette affaire, je suis devenu accro. »

LES NOMS À CONNAÎTRE

Démagogue

Alexis Tsipras

Filippo Riniolo

Il existe un mot grec, Ευφραδής (qui se prononce ev – fra – THEES) pour qualifier quelqu’un qui parvient à formuler des idées convaincantes et des arguments persuasifs. Alexis Tsipras, le premier ministre polarisateur de la Grèce - le plus jeune élu à ce poste en 150 ans - est l’un de ceux-là. Les Grecs disent qu’il est un influenceur, un homme d’action et un charmeur. Il s’est probablement attiré une réputation moins flatteuse auprès des chefs d’État qui ont prêté de l’argent à la Grèce ou des dirigeants d’entreprises de l’industrie des ressources qui comptent des projets dans ce pays. Malgré son jeune âge, il est actif sur le plan politique depuis des décennies, ayant rejoint les rangs des Jeunesses communistes grecques dès l’école secondaire. Après ses études de premier cycle en génie civil, en 2006, Alexis Tsipras a posé sa candidature à la mairie d’Athènes et ter74 | CIM Magazine | Vol. 10, No. 4

Tout au long de sa carrière, encore jeune à ce jour, la phase d’apprentissage a été relativement rude. « Le plus grand enseignement que j’ai tiré de cette expérience, et le meilleur conseil que je puisse donner à quiconque, est qu’il est extrêmement important de développer une bonne équipe autour de vous pour tenir bon », suggérait-il. Après avoir stabilisé les divers renouvellements de direction depuis son arrivée dans la société Excellon et avoir trouvé les talents dont il avait besoin pour ses activités au Mexique, M. Cahill est parvenu à faire régulièrement baisser les coûts liés à la direction ainsi qu’aux activités à la mine La Platosa, entièrement détenue par la société. M. Cahill prévoit d’aborder les problèmes relatifs à l’excédent d’eau à la mine, de continuer à explorer le système riche en minéraux de la région et d’acquérir des projets sous-évalués, et on le sent tout aussi confiant dans la direction de sa société en cette période difficile que toute autre personne. « Certes, ce n’est pas simple, mais ce sont dans des moments pareils que les sociétés les plus prestigieuses voient le jour. Nous avons réussi à placer Excellon en bonne position pour constituer son capital. » P Michael Yang

miné troisième. Au cours des trois années suivantes, il est devenu le dirigeant du parti radical de gauche, Syriza, et a été élu au Parlement grec. Sa montée au pouvoir comme premier ministre, à la fin du mois de janvier dernier, n’a pas été une véritable surprise, même s’il est le premier gauchiste radical à avoir remporté cette élection. Il s’est vite fait remarquer par le secteur minier en s’opposant aux projets d’Eldorado Gold dans le nord-est du pays, mettant ainsi en péril des milliers d’emplois alors que le taux de chômage stagne pourtant à 25 pour cent. « Après avoir remporté l’élection, le gouvernement Syriza mettra fin à la destruction causée par Skouries », a affirmé M. Tsipras en septembre dernier. Il a aussi dit que les emplois perdus en raison de l’arrêt des travaux ne représenteraient pas un problème parce que son parti prévoyait créer de nouveaux emplois dans le cadre de programmes d’emploi spéciaux. Néanmoins, Eduardo Moura, responsable national pour Eldorado Gold, a déclaré : « Nous n’avons aucune intention de quitter la Grèce. » Eldorado Gold a dépensé quelque 450 millions $ US pour ses projets Skouries et Olympias depuis 2012 et a créé des emplois dans ce pays. Cependant, le gouvernement Tsipras a décidé en février de révoquer le permis de l’entreprise qui l’autorisait à terminer la construction d’une usine de traitement à son projet Skouries. Une décision est en instance quant à cette révocation. En avril, approximativement 4 000 mineurs et personnes les appuyant se sont réunis à Athènes pour manifester contre l’action du gouvernement. Même si la décision n’est pas en faveur d’Eldorado Gold, l’entreprise a indiqué qu’elle demeurera active en Grèce. M. Moura a souligné : « Pour nous, la Grèce est une pierre angulaire de la croissance future de notre société, et nous prévoyons continuer nos investissements dans le pays. » P Zoe Koulouris et Peter Braul

Gracieuseté de Excellon Resources

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Depuis l’arrivée du chef de la direction Brad Gordon au sein d’Acacia Mining à la mi-2013, l’entreprise est passée de l’état d’enfant difficile de Barrick Gold à celui d’étalon or aux yeux de ses pairs de l’industrie des métaux précieux. Auparavant nommée African Barrick Gold, l’entreprise est la plus importante société minière de Tanzanie et, en 2014, elle a recommencé à générer des flux de trésorerie disponibles pour la première fois en trois ans. En 2010, Barrick Gold a décidé de procéder à la cession-distribution de ses actifs tanzaniens alors qu’elle était aux prises avec une hausse des coûts décaissés, des besoins de trésorerie croissants et des troubles sociaux dans les régions où elle exerçait ses activités. De plus, les actions d’African Barrick Gold comptaient aussi parmi les titres à moyenne capitalisation les moins performants au Royaume-Uni en 2013. Cependant, rien de tout cela n’a découragé M. Gordon, qui considérait les mines de Bulyanhulu et North Mara comme deux des meilleurs actifs en Afrique. « Quand vous jumelez d’excellents actifs et une excellente équipe, cela porte inévitablement des fruits », a affirmé M. Gordon, en minimisant l’incidence de la transformation complète que son équipe et lui ont déjà entreprise au sein d’Acacia pendant son court mandat comme chef de la direction. Fort d’une vaste expérience en génie minier qu’il a acquise en occupant des postes de cadre supérieur au sein d’Intrepid Mines, de DRDGold et de Placer Dome, il a immédiatement effectué un examen des opérations complet et a commencé à optimiser les trois principaux actifs de la société en abordant simultanément les problèmes relatifs à la production, aux coûts et aux enjeux sociaux.

LES NOMS À CONNAÎTRE

Aida Marie-Rose Tamboura

Une championne de longue date Les femmes représentent encore une minorité évidente au sein du secteur minier canadien ; en effet, d’après l’organisation Women in Mining Canada (WIM, le forum sur les femmes dans l’exploitation minière), elles ne représentent que 14 % de la main-d’œuvre au Canada, mais leur participation au Burkina Faso est pratiquement nulle. Des données recueillies auprès de l’association des femmes du secteur minier du Burkina (AFEMIB) révèlent que les femmes ne constituent que 5 % du secteur minier dans ce pays.

Par exemple, à North Mara, la transition de la mine à ciel ouvert de Gokona à une exploitation souterraine devrait produire jusqu’à 450 000 onces d’or au cours des cinq prochaines années et diminuer les coûts de maintien tout compris de plus de 200 $ l’once – tout en réduisant la possibilité pour les mineurs illégaux de pénétrer sur les lieux et en occupant moins de terrain pour mettre les stériles au rebut. Des améliorations opérationnelles similaires ont aussi été effectuées à Bulyanhulu, où l’abattage par longs trous a remplacé le forage manuel conventionnel exigeant en main-d’œuvre, de même qu’à Buzwagi, où la réduction de la durée de vie de la mine a fait en sorte que seuls les minerais rentables soient exploités. Bien que les résultats soient concrets – Acacia a enregistré un bénéfice net de 90 millions de dollars américains, les coûts de maintien tout compris ont été 18 % moins élevés que l’année précédente et la production d’or a augmenté de 13 % en 2014 – ils ne reflètent pas la réelle portée des changements effectués, a souligné M. Gordon. « Les changements apportés sont de nature permanente et leur efficacité commence tout juste à se manifester », a-t-il souligné, en précisant que Bulyanhulu devrait réduire ses coûts encore beaucoup plus cette année que ce qui a été accompli jusqu’à présent. L’adoption de la nouvelle image de marque de la société sous le nom d’Acacia Mining en novembre dernier a marqué le début d’une ère nouvelle. « Nous voulions gagner une certaine crédibilité, acquérir une réputation pour les résultats générés, avant de faire un tel changement symbolique », a déclaré M. Gordon. « C’est réellement le symbole d’un nouveau commencement. » P Michael Yang

Aida Marie-Rose Tamboura

Réparateur

Brad Gordon

Gracieuseté d’Acacia Mining

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Elle a créé l’AFEMIB il y a 15 ans, qui a connu une progression régulière bien que lente. Cette association fait maintenant partie du conseil d’administration du ministère des mines du Burkina Faso, et est en partenariat avec le ministère chargé de promouvoir l’avancement des femmes.

« Le contexte est le même qu’ailleurs », indiquait Mme Tamboura, la fondatrice et présidente de l’association. « Les femmes ne contribuent pas du tout au processus décisionnel. [Elles] sont sous-représentées dans tous les secteurs de production de l’or. »

Afin d’augmenter le pourcentage de femmes dans l’industrie minière, l’association essaie d’atteindre les femmes le plus tôt possible en organisant des ateliers sur l’industrie minière destinés aux jeunes filles au lycée ou à l’université.

Mme Tamboura est allée à l’encontre de cette tendance et à 55 ans, en sa qualité de directrice générale de la société d’exploration aurifère Predictive Discovery Limited, elle est la seule femme à diriger une société d’exploration au Burkina Faso.

« L’intégration de davantage de femmes dans le secteur minier aura un impact positif sur les communautés locales et nous aidera à développer de meilleures équipes de direction à l’avenir », déclarait Mme Tamboura. P Kelsey Rolfe June/July • Juin/Juillet 2015 | 75

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Rick Howes

En harmonie avec l’innovation

Gracieuseté de Dundee Precious Metals

Après avoir prôné l’innovation dans l’industrie minière pendant des années, le président et chef de la direction de Dundee Precious Metals s’est luimême trouvé en position d’effectuer un véritable changement à la mine de cuivre et d’or Chelopech de sa société, en Bulgarie. Ce qui était au départ un projet de modernisation plutôt conventionnel a finalement débouché sur la mise en œuvre d’une technologie de pointe en communications souterraines sans fil, qui facilite la surveillance et le contrôle en temps réel des opérations souterraines. Trois années de travaux d’intégration des divers systèmes ont porté leurs fruits : la production de la mine a doublé, sans augmentation nette de la taille de la flotte d’équipement. Qu’est-ce qui a donc assuré le succès de cette utilisation de l’innovation, là où tant d’efforts avaient échoué par le passé? L’amélioration de la technologie y est pour quelque chose. « Les ingrédients

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Jean-Daniel Nieminen

changent à cause des progrès qui sont accomplis », explique M. Howes, qui ajoute que les plus récentes percées technologiques se sont adonnées à coïncider dans le temps avec les objectifs de la société en Bulgarie. La coopération entre les fournisseurs des éléments constitutifs du système et une main-d’œuvre bulgare ouverte aux améliorations a aussi aplani la voie. Pour M. Howes, il est exaspérant de voir l’industrie minière à la traîne derrière les autres. « J’ai souvent été frustré par l’inefficacité de l’utilisation de nos ressources », dit-il. « C’était visible : les gens et les machines étaient souvent inoccupés. La production n’était pas constante. Si on observe le secteur manufacturier, on ne voit pas beaucoup de machines inactives. C’est là le fond de l’histoire : la frustration et l’observation du fait qu’il me semblait que nous pourrions mieux faire. » Rick Howes admet que l’attention se porte maintenant davantage sur l’innovation. « J’en entends parler beaucoup plus maintenant qu’il y a quelques années », dit-il. « L’intérêt est beaucoup plus marqué. Mais dire “ça nous intéresse”, c’est la portion facile du cheminement. La portion difficile, c’est d’établir la vision, la stratégie et le plan pour atteindre l’objectif et concrétiser tout cela. » Il ajoute que rien n’empêche les autres exploitants d’améliorer immédiatement leur efficacité au moyen d’innovations récentes, comme celles que Dundee a mises en œuvre en Bulgarie. « Les choses progressent plus vite qu’on les absorbe actuellement », explique-t-il. « Il ne manque pas d’avancées technologiques applicables à l’industrie. » M. Howes espère continuer d’encourager l’esprit d’innovation chez les jeunes ingénieurs : « J’aimerais que l’industrie minière canadienne excelle et soit de nouveau un chef de file. Je crois que le Canada s’éloigne de ce rôle de leader parce que nous ne sommes pas assez innovateurs et que nous ne repoussons pas assez les limites. » P Ian Ewing

Bâtisseur de capacité productive Jean-Daniel Nieminen

M. Nieminen a débuté dans le secteur de l’équipement minier comme étudiant salarié dans l’entreprise de son père, K.N. Equipment, à RouynNoranda, il y a 17 ans. Maintenant âgé de 33 ans, il y travaille encore et occupe le poste de vice-président et directeur général de la société depuis 2006.

Dans le cadre de ces fonctions et fort de sa longue expérience au sein de l’industrie, M. Nieminen a pris en charge un certain nombre de projets ambitieux en Afrique. Les Industries Orientales SAU est un hub minier qu’il met sur pied à Kédougou, au Sénégal. Ce hub minier servira de base manufacturière pour les entreprises québécoises comme

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la sienne qui veulent accroître leur clientèle en Afrique de l’Ouest. M. Nieminen a ajouté que le hub « aidera la collectivité grâce aux transferts technologiques et aux transferts de compétences par la formation [des travailleurs locaux]. » Le hub contribuera également à la réalisation d’un autre des projets de M. Nieminen. En collaboration avec Les Industries Beroma, il a pris des dispositions pour aider les mineurs sénégalais locaux à acheter de nouvelles usines de traitement de l’or à petite échelle et leur apporter une formation et une assistance substantielles durant la première année d’exploitation. De nombreux mineurs sénégalais détiennent un titre légal d’exploitation minière, mais n’ont ni les capitaux ni le savoir-faire pour acheter le bon équipement et mener des activités de façon sécuritaire et rentable. Les usines seront alimentées par trois à quatre petits sites miniers et exploitées par des coopératives d’environ 125 travailleurs, ce qui permettra de conserver les profits générés par les mineurs dans leur collectivité. Avec les pratiques actuelles, les mineurs sénégalais ne peuvent récupérer qu’environ 40 % de l’or contenu dans le minerai, mais M. Nieminen affirme que ce taux passera à 95 % grâce au nouveau procédé et à la formation. « Cette hausse leur permettra de payer les redevances sur les machines, d’avoir de meilleures conditions et de travailler avec un meilleur équipement », a-t-il expliqué.

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Mark Smith

Le spécialiste

Gracieuseté de Largo Resources

Au cours de la prochaine année, M. Nieminen s’efforcera de trouver du financement pour des prêts afin que les coopératives puissent acheter ces usines. Il a déjà eu des pourparlers avec un certain nombre d’entités, dont la Banque mondiale. Chaque usine coûtera environ 1,2 million de dollars américains pour l’installation de base ou 3,9 millions de dollars américains pour une usine complète avec un

Sa récente nomination au poste de président et directeur général du producteur de vanadium Largo Resources est venue ajouter un autre métal spécial à sa liste déjà impressionnante. L’ancien directeur de Molycorp était chargé de surveiller le passage de cette société spécialisée dans les terres rares du statut de filiale pétrolière à celui d’entreprise publique. Après avoir quitté cette société, il a rejoint la société de développement de niobium NioCorp en 2013, qui a triplé les ressources de son projet Nebraska grâce à la campagne de forage menée l’année dernière. À son nouveau poste chez Largo, M. Smith a dû recueillir des fonds pour les travaux à la mine Maracás (voir p.78).

Gracieuseté de Trevali Mining

D’après M. Smith, qui est encore directeur général de NioCorp, ces marchandises présentent toutes quelques points communs, à savoir qu’elles reviennent souvent aux mêmes acheteurs, et leurs acheteurs requièrent davantage d’options. Chez Molycorp, son objectif consistait

LES NOMS À CONNAÎTRE

budget d’exploitation d’une année comprenant la formation, l’installation et les pièces de rechange. Pour le moment, M. Nieminen se consacre à obtenir le financement nécessaire à la construction d’une usine pilote au Sénégal, mais ses plans prévoient la construction de trois autres usines dans ce pays, ainsi que trois au Burkina Faso et trois en Côte d’Ivoire. P Chris Balcom

à augmenter la diversité de l’approvisionnement en terres rares, qui provient actuellement intégralement de la Chine. Il se retrouve désormais confronté aux mêmes arguments pour le niobium (dont 92 % provient du Brésil) et le vanadium, prioritairement de provenance chinoise. « Nos clients nous répètent régulièrement que ce sont les sociétés spécialisées dans l’acier qui ont besoin de fournisseurs plus diversifiés », expliquait M. Smith.

M. Smith met ses compétences au profit de l’expansion des investissements dans de nouvelles sources d’approvisionnement. « À cette étape de ma vie, je suis à la recherche de possibilités où je peux non seulement adopter un rôle de leadership, mais également m’imposer en tant qu’investisseur et tirer profit de ce qui, selon moi, sont des occasions exceptionnelles dont le marché ne comprend pas l’importance à sa juste mesure. J’ai su employer des mots que les investisseurs ont besoin d’entendre. Une fois que les investisseurs sont convaincus que nos valeurs sont fortes et que la marchandise que l’on produit constitue une partie importante de l’économie à l’échelle planétaire, nous en avons alors conquis une grande partie. On peut alors expliquer en détail la raison pour laquelle cette occasion en particulier répondrait tellement bien à leurs attentes. » P Eavan Moore

Barb Rose

Une femme témoin d’un renouveau

L’ingénieure minière en chef à Trevali s’attaque avec enthousiasme aux nouveaux défis professionnels liés à la remise en valeur et à la mise en service de la mine de zinc Caribou, un gisement qui appartient à l’entreprise et qui se trouve près de Bathurst, au Nouveau-Brunswick. Barb Rose, à l’instar de nombreux employés de la mine Caribou, a passé la majorité de sa carrière à la mine Brunswick, qui se trouve tout près, jusqu’à sa fermeture il y a deux ans. Pour Mme Rose comme pour les collectivités de cette région du nord du Nouveau-Brunswick, le gisement Caribou est riche de promesses. « J’ai toujours su que je travaillerais en ingénierie, parce que j’adore les maths et les sciences », explique Mme Rose. Toutefois, c’est en rencontrant les parents d’une de ses consœurs de l’Université Queen’s, des ingénieurs miniers, qu’elle a découvert le domaine qui la fait vibrer. « L’industrie minière a vraiment piqué ma curiosité. Contrairement à d’autres disciplines qui sont très vastes et diversifiées, le milieu des mines m’apparaissait plutôt comme une famille : quand on en fait partie, on se fait des amis pour la vie. On a aussi un

réseau de contacts qui est là pour nous appuyer, peu importe où et pour qui on travaille. »

Mme Rose met en pratique une philosophie semblable dans les fonctions de gestionnaire qu’elle occupe actuellement. En tant qu’ingénieure minière en chef, elle supervise 11 personnes dans les équipes de génie minier, de géologie et de l’environnement de la mine Caribou, lesquelles ont consacré la dernière année à préparer fébrilement le redémarrage de la mine après un arrêt de six ans. « Je m’intéresse sincèrement à eux et je respecte le fait qu’ils ont une famille à la maison et d’autres responsabilités. » Le zinc est en voie d’occuper une place favorable sur le marché, dans un contexte où le cours des produits de base est par ailleurs stable. La réouverture de la mine Caribou pourrait donc arriver à point nommé. Trevali possède également deux autres sites au Nouveau-Brunswick qui sont en cours d’exploration et d’évaluation. Mme Rose estime que son équipe sera prête quand Trevali amorcera la mise en valeur de ces sites, si bien sûr c’est ce que l’entreprise décide de faire. « Notre équipe d’ingénieurs est relativement jeune. J’ai eu la chance de les voir grandir et évoluer en même temps que le projet, et aussi de les voir apprendre et approfondir leurs compétences. » P Ian Ewing June/July • Juin/Juillet 2015 | 77

Les chiffres parlent d’eux-mêmes Toutes les photos gracieuseté de Largo Resources

PAR EAVAN MOORE

Quand elle atteindra sa phase de plein rendement cet automne, la mine Maracás de la société Largo Resources, au Brésil, deviendra l’un des principaux producteurs primaires de vanadium au monde. vec un faible taux d’impuretés et des teneurs avoisinant le double de la moyenne mondiale à 1,34 %, la mine Maracás occupe une place de choix au sein même de son marché spécialisé ; en effet, le pentoxyde de vanadium (V2O5) qu’elle produit répond aux exigences des applications imposant un degré élevé de pureté, que ce soit pour des ailes d’avion, des turbines ou des batteries. « Deux entreprises sidérurgiques nous ont récemment félicité », indiquait Mark Smith, président et directeur général de Largo depuis avril. Ces entreprises, qui représentent les utilisateurs finaux, confirment d’ailleurs que le pentoxyde de vanadium produit par sa société est l’un des plus purs au monde. Les producteurs primaires de vanadium sont rares ; ce métal est généralement un sous-produit ou un coproduit d’une autre matière première, communément du fer. L’équipe de Largo espère pouvoir couvrir près d’un dixième de l’offre au niveau mondial aux stades ultérieurs de son projet et diversifier du point de vue géographique un secteur dominé par la Chine, l’Afrique du Sud et la Russie. La mise en service de la mine date du mois d’août dernier, et durant les trois premières années, la société prévoit de géné-

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rer au moins 9 600 tonnes de pentoxyde de vanadium par an à partir du puits principal Gulçari A. Ses réserves prouvées et probables sont de 13,1 millions de tonnes de minerai, avec une teneur en V2O5 de 1,34 %, et ses ressources mesurées et indiquées de 24,6 millions de tonnes de minerai, avec une teneur en V2O5 de 1,11 %. Largo a l’intention d’intensifier sa production pour atteindre 14 000 tonnes la troisième année puis, après huit ans, de passer à des fosses satellites présentant des ressources présumées de 30,4 millions de tonnes de minerai pour une teneur en V2O5 de 0,83 %. Si tout se passe comme prévu, la production moyenne de la mine au cours de son cycle de vie total de 29 ans sera de 11 400 tonnes par an. À titre indicatif, la production mondiale de vanadium en 2014 était de 97 000 tonnes.

Un budget de construction serré La conception même est spécifique à ce minerai, bien qu’elle n’ait rien d’exceptionnel pour le vanadium. Collectivement, les membres de l’équipe de la mine Maracás ont travaillé dans toutes les mines de vanadium d’Afrique du Sud, et la méthode d’extraction ainsi que le schéma de traitement sont conformes

MINE MARACÁS

| profil de projet

CAHIER DES CHARGES EMPLACEMENT : 250 km au sud-ouest de Salvador, État de Bahia, Brésil DÉBUT DE LA CONSTRUCTION : juin 2012 DÉMARRAGE DE LA PRODUCTION : août 2014 DÉPENSES EN IMMOBILISATIONS INITIALES : 241 millions $ US PRODUCTION ANNUELLE, PHASE 1 : 9 600 tonnes

RÉSERVES ET RESSOURCES : Réserves minérales prouvées et probables : 13,1 millions de tonnes, teneur en V2O5 de 1,34 % Ressources mesurées et indiquées : 24,6 millions de tonnes, teneur en V2O5 de 1,11 % Ressources présumées : 30,4 millions de tonnes, teneur en V2O5 de 0,83 %

CONCESSION : 28 587 hectares

à des techniques précédentes qui ont fait leurs preuves dans les gisements de magnétite titanifère. Le minerai est extrait d’un puits à ciel ouvert selon des méthodes de forage et de dynamitage conventionnelles par l’entrepreneur Fagundes Construção e Mineração, puis transporté par camion jusqu’à l’usine de traitement. Au total, la flotte de production de surface comprend un engin de forage, deux excavatrices, sept camions de 40 tonnes et un bulldozer. Le minerai subit tout d’abord trois cycles de concassage. Le plan initial prévoyait l’acheminement direct immédiat vers le concentrateur, mais au moment de la mise en service, la direction de la mine a décidé d’ajouter deux séparateurs magnétiques à sec qui extraient le minerai riche en vanadium de la gangue. « Pendant la mise en service, nous nous sommes rendus compte qu’il était possible de tirer un bien meilleur parti du minerai du corps minéralisé en ajoutant des séparateurs magnétiques à sec », expliquait Casper Groenewald, directeur technique à la mine Maracás. Le minerai doit atteindre une teneur magnétique d’au moins 44 % avant l’étape de broyage ; la valorisation par séparation magnétique à sec nous permet d’extraire un minerai dont la teneur magnétique n’est que de 35 % et de l’envoyer au concasseur. Selon Michael Mutchler, directeur de l’exploitation, la séparation magnétique à sec pourrait réduire la teneur de coupure du gisement, qui est actuellement de 0,6 % de vanadium dans le minerai. « La première teneur de coupure dépend toujours du prix, et actuellement, les prix sont bas, aussi nous pourrions trouver un compromis », soulignait-il. « Mais un jour, en évaluant davantage en fonction de la teneur en vanadium du minerai magnétique, nous parviendrons à abaisser cette teneur de coupure. » Après la séparation magnétique à sec, le minerai passe par un broyeur culbuteur, puis par un stade de séparation magnétique par voie humide qui isole encore davantage le minerai de vanadium. Les résidus obtenus à ce stade contiennent de petites quantités d’ilménite et de métaux du groupe des platineux qui pourraient théoriquement être récupérés si la mine disposait d’un capital suffisant pour installer les circuits nécessaires ; pour le moment cependant, le seul produit vendable du minerai est un concentré magnétique dont la teneur en V2O5 est d’environ 3,4 %.

Ce concentré est grillé dans un four avec du carbonate de sodium et du sulfate de sodium pour produire un composé hydrosoluble, le vanadate de sodium. Le matériau chauffé est alors refroidi à 450 °C, trempé, puis passé dans un broyeur à décharge par grille où il est réduit en particules de 6 mm de diamètre, voire moins. Ce produit subit une lixiviation par agitation pendant 45 minutes dans des réservoirs remplis d’eau tiède, suivie d’un cycle dans l’épaississeur de lixiviat. L’étape suivante est la désilicification. À ce stade, on ajoute du sulfate d’aluminium afin de précipiter l’aluminium et les silicates simultanément ainsi que toute trace de phosphore et d’arsenic. On ajoute du sulfate d’ammonium pour précipiter le vanadium sous forme de vanadate d’ammonium (NH4VO3). Ce processus génère du sulfate de sodium, que l’on recycle en le renvoyant dans le four. On extrait l’ammonium du NH4VO3, lequel se transforme en V2O5 sous la forme d’une poudre de couleur brun-rougeâtre. Enfin, la poudre est chauffée à 800 °C dans un incinérateur. À cette température, elle fond et s’écoule sur une meule d’écaillage refroidie à l’eau. Les paillettes sont éliminées par raclage et transférées dans un concasseur de paillettes qui décompose les plus grosses, puis transportées dans un silo où elles sont chargées dans des sacs de stockage en vrac d’une tonne prêts pour l’expédition. Le client de la mine Maracás, le courtier en métaux Glencore, récupère directement la marchandise à la plateforme de chargement de la mine Maracás. Le vanadium est généralement ajouté à l’acier sous forme de ferrovanadium (FeV), un alliage de V2O5, d’aluminium et de fer. Plus tard, si les marchés s’y prêtent, Largo pourrait aménager une usine supplémentaire pour convertir le V2O5 en FeV, ce qui permettrait d’économiser les coûts d’expédition associés à l’exportation du V2O5 pour la conversion et, éventuellement, à son retour au Brésil. Mais pour l’heure, la conjoncture économique n’est pas favorable à la mise en œuvre de ce plan. D’après M. Mutchler, les résidus de l’extraction du vanadium sont relativement inoffensifs. Ils ne sont pas faciles à manipuler du point de vue opérationnel (un projet d’empilage de résidus secs a été abandonné car le filtre était constamment bouché), mais ils ne génèrent pas d’acide non plus. Le revêtement du bassin de décantation des stériles est conforme aux June/July • Juin/Juillet 2015 | 79

exigences du gouvernement brésilien, mais les exploitants espèrent être en mesure de l’enlever d’ici quelques années, lorsque les autorités de réglementation se seront familiarisées avec le minerai de vanadium. Les dirigeants de la mine Maracás ont déclaré qu’ils atteindraient leurs objectifs en termes de capacité pour 2015 avec l’équipement existant, mais Largo s’affaire à réunir des fonds en vue d’une expansion. Construites en période de récession avec un budget en immobilisations restreint, les installations qui ont commencé à produire en août dernier atteignent déjà leurs limites. « Comme pour tous les projets de construction, les exigences ont été réduites au strict minimum et les coûts maintenus au plus bas afin de pouvoir les financer et de mener à bien la construction d’un projet », expliquait M. Mutchler. « Nous constatons maintenant que nous avons sans doute sous-évalué les exigences de certains équipements, lesquels sont devenus problématiques et requièrent une reconstruction ou des améliorations plus tôt que prévu. » La première série de dépenses en capital s’est achevée en mai 2014 à 241 millions $ US. Largo cherche maintenant à recueillir 50 millions $ US supplémentaires en 2015 et 2016 pour pouvoir couvrir certaines des réparations ou améliorations à apporter aux équipements. Le four peut sans problème supporter une expansion du côté de l’extraction, mais une grande partie des autres équipements devront être mis à niveau pour dépasser leur capacité nominale.

Perspectives L’accord d’écoulement à 100 % conclu entre Largo et Glencore remonte à 2008. « Quand nous avons établi notre montage financier pour la construction, les banques exigeaient notamment que nous disposions d’un accord d’écoulement de la production à long terme », se rappelait M. Mutchler. Largo avait quelques arguments commerciaux à faire valoir à Glencore ; le matériau fourni par la mine Maracás dépasse les exigences, les tonnages de production sont importants pour du vanadium et on ne trouve aucune autre mine de vanadium sur le territoire américain. Largo était également disposée à céder son vanadium au prix du marché en appliquant un abattement, ce qui, aux prix actuels, signifie que Glencore obtient un très bon produit à faible coût. La qualité initiale du minerai de la mine Maracás en fait une exploitation peu coûteuse. En mars 2015, les coûts d’exploitation mensuels ont chuté à 3,91 $ US la livre, ce qui est satisfaisant par rapport au coût moyen observé chez les producteurs primaires de 4,50 $ US. En revanche, depuis l’an dernier, le marché du vanadium est en baisse ; pendant tout le printemps, il a stagné en dessous des 5 $ US la livre de V2O5. Il y a cinq ans, les prévisions à long terme étaient plus optimistes, mais le déclin de la demande en acier s’est accompagné d’une baisse de la demande des adjuvants pour l’acier. Selon le Roskill Consulting Group, l’offre relative au vanadium est excédentaire et susceptible de le demeurer. D’après Mark Smith, le prix du vanadium ne restera pas à un niveau excessivement bas. « En examinant le cours du vana80 | CIM Magazine | Vol. 10, No. 4

dium depuis 10 ans, on constate que le V2O5 ne s’est pas vendu sous la barre des 5 $ US la livre pendant plus de 30 jours consécutifs », expliquait-il, « et cette tendance dépend principalement de la structure de coûts des fournisseurs de vanadium. » Selon lui, beaucoup de producteurs renoncent rapidement lorsque les prix chutent. À plus long terme, M. Smith entrevoit d’éventuelles répercussions des problèmes que connaissent les mines chinoises de minerai de fer. La Chine produit plus de la moitié de l’approvisionnement mondial en vanadium, la majeure partie provenant des laitiers sidérurgiques issus de son minerai de fer. Si la chute des prix du minerai de fer entraîne la fermeture forcée de mines chinoises dont les coûts d’exploitation sont élevés, l’équilibre de l’offre et de la demande pourrait alors devenir beaucoup plus favorable à des mines telles que celle de Maracás. Ancien dirigeant de Molycorp, M. Smith est parvenu à recueillir plus de 2 milliards $ pour sa mine de terres rares Mountain Pass ; ainsi, il excelle dans l’art de convaincre les investisseurs qu’il a en main une proposition gagnante. À Maracás, déclarait-il, « nous disposons d’une ressource absolue de calibre mondial, une production au coût le plus bas parmi tous les producteurs primaires du monde, et pour ce qui est des connaissances sur le vanadium, je ne pense pas que l’on puisse trouver des personnes plus brillantes et expérimentées que nos spécialistes. »

Réflexions sur l’avenir Si l’acier domine la destinée actuelle du vanadium, ce métal renferme également un marché potentiel dans le secteur des sources d’énergie propres. En effet, la recherche sur les batteries redox au vanadium laisse supposer qu’elles se prêteraient bien au stockage de la production d’énergie des éoliennes et des panneaux solaires. « C’est un marché émergent, qui représente actuellement 1 % [de la demande] », indiquait Darcie Ladd, vice-présidente chargée des relations investisseurs chez Largo. « De toute évidence, s’il prend son envol, ce marché a un potentiel énorme. » Mme Ladd soulignait que si la mine Maracás dispose de la haute teneur requise par les applications dans le domaine des batteries, ce n’est pas le cas de tous les producteurs de vanadium. Pour le moment, Largo n’a pas particulièrement besoin de trouver des débouchés pour son produit et se concentre sur le remboursement de ses dettes et sur l’augmentation de la production à la mine Maracás. « Bien entendu, nous subissons les problèmes associés au démarrage d’une toute nouvelle installation, mais nous les gérons plutôt bien », déclarait M. Smith. « Nous commençons à observer une production constante tous les jours, ce qui est très important. Nos opérateurs savent ce qu’ils font, assument leurs responsabilités et sont fiers de la production, ce qui se reflète sur l’installation, et ce, après neuf mois de production seulement. Nous sommes donc relativement confiants en ce qui concerne nos coûts de production, l’augmentation des niveaux de production et l’assainissement de nos finances, ce qui permettra à Largo de devenir un important fournisseur de vanadium sur une longue période. » ICM

Photos par Riccardo Cellere

DE GRANDES IDÉES INTÉRESSANTES Les congressistes envisagent de nouveaux moyens de surmonter les obstacles auxquels sont confrontés les mineurs du monde entier Par le personnel de CIM Magazine

Le Congrès annuel de l’ICM est l’occasion pour les mineurs de se réunir pour discuter boulot, découvrir des occasions d’affaires et échanger leurs connaissances. Pendant tout le programme bien rempli, qui comprenait divers ateliers techniques, un salon commercial et une plénière inspirante, les participants se sont concentrés sur le thème du congrès de cette année, « Nouvelles dimensions », afin d’aider à relever les nombreux défis auxquels l’industrie minière est confrontée. Durant une période où la plupart des sociétés n’envoient plus leurs employés aux congrès, l’ICM a surpassé son estimation de participants. L’événement a réuni plus de 11 000 délégués venus de 47 pays au Palais des congrès de Montréal, du 10 au 13 mai. Le congrès de la Société Internationale de mécanique des roches (International Society for Rock Mechanics), tenu conjointement avec le Congrès annuel de l’ICM, a donné à l’événement une présence encore plus internationale et a ajouté 700 délégués au Congrès.

Discussion sur les nouvelles dimensions Des centaines de professionnels de l’industrie minière ont assisté à la séance plénière de cette année intitulée « Nouvelles dimensions » pour entendre certains des plus éminents penseurs de l’industrie discuter de l’innovation, du leadership et de l’avenir de l’exploitation minière. Cependant, avant que les panélistes ne montent sur la scène, Ed Fast, ministre du Commerce international, a annoncé un financement gouvernemental de près de 150 000 $ du fonds Opportunités mondiales pour les associations accordé à l’ICM pour aider les sociétés minières canadiennes à faire croître leurs entreprises à l’échelle mondiale. « Le fait d’encourager les associations sectorielles et leurs membres à participer au marché mondial est essentiel pour la croissance économique à long terme du Canada », a-t-il affirmé.

Luc Blanchette, ministre délégué aux Mines du Québec, a aussi pris le temps de répéter le potentiel du plan de développement du nord de la province et l’importance de l’acceptabilité sociale au sein des communautés locales. Parmi les conférenciers, Pierre Lapointe, président et chef de la direction d’ArcelorMittal Mining Canada, a parlé des trois clés de la réussite de son entreprise : un leadership courageux, une structure opérationnelle simplifiée et l’excellence opérationnelle. « Dans un contexte où la concurrence est féroce, la cohésion de ces éléments de base nous permet d’entretenir une bonne conversation dans une organisation structurale simple et une approche structurée », a-t-il expliqué. Pour Greg Lilleyman, coordonnateur en chef, Technologie et innovation, Rio Tinto, l’importance qu’accorde l’entreprise June/July • Juin/Juillet 2015 | 81

aux innovations technologiques, comme ses initiatives d’automatisation et la récente ouverture de son centre d’analyse opérationnelle, est un autre facteur de réussite, de nos jours. « Depuis de nombreuses années, la technologie transforme l’industrie. » Toutefois, au lieu de garder pour eux ces secrets professionnels et ces clés du succès, il est essentiel que les intervenants de l’industrie collaborent pour améliorer l’exploitation et le secteur minier dans son ensemble, selon Andrew Scott, directeur principal, Technologie de l’information et automatisation, Barrick Gold, et président du conseil du Global Mining Standards Group. « Ce qui me passionne réellement, c’est d’inciter les gens à travailler ensemble pour améliorer notre industrie, la rendre durable et, surtout, faire en sorte qu’elle soit respectée », a-t-il souligné. La mine Raglan de Glencore a mis en œuvre une première étape vers la durabilité en installant récemment une éolienne pour générer de l’électricité. Kristan Straub, vice-président de la mine, a affirmé que la prochaine étape consistera à intégrer les trois systèmes d’accumulation d’énergie au réseau de distribution de l’alimentation. Pour Jean Robitaille d’Agnico Eagle, l’innovation est essentielle pour la survie à long terme de l’industrie. « La question qui s’impose est la suivante : Sommes-nous assez riches pour ne pas innover? Les coûts associés à l’innovation ne sont rien comparativement au manque à gagner. »

Techniquement parlant Les séances spécialisées organisées cette année ont présenté des solutions à certains des défis les plus avancés, complexes et uniques en leur genre auxquels l’industrie minière est confrontée. Le programme, l’un des plus vastes et des plus exhaustifs des dernières années, a été structuré en douze thèmes : l’innovation ; l’ingénierie de maintenance et l’exploitation minière souterraine ; les paradigmes environnementaux ; l’Afrique de l’Ouest ; l’excellence opérationnelle ; les explosifs et le dynamitage ; la géologie et les pratiques exemplaires ; les femmes en exploitation minière ; la Journée gestion et finance ; un symposium sur l’éthique

WIM

Des personnalités de haut niveau invitées au congrès se sont réunies à la réception VIP de Women in Mining mardi après-midi pour manifester leur soutien à l’organisme et rencontrer des mineuses.

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M4S

ISRM

Chungsik Yoo, professeur de génie civil et écologique à l’université Sungkyunkwan en Corée, a présenté à la cérémonie de clôture du 13e congrès de la Société internationale de mécanique des roches (International Society for Rock Mechanics), tenu conjointement avec le congrès annuel de l’ICM au Palais des congrès de Montréal. L’événement soi-même a accueilli 700 délégués et a proposé 344 présentations orales et 94 affiches couvrant un éventail de sujets variés tels que l’application de la géophysique en mécanique des roches, la télédétection et la séismicité.

dans l’industrie minière ; un symposium sur le minerai de fer et un symposium sur les sciences minières et planétaires. Parmi les séances spécialisées, la Journée gestion et finance, toujours populaire, a attiré des participants intéressés à en apprendre plus sur deux des facteurs cruciaux les plus influents pour les projets miniers : les coûts cachés et les coûts stratégiques. L’un des enjeux couverts était les coûts associés à la gestion de l’eau. « Les entreprises ont commencé à ne plus penser à l’eau comme une simple question environnementale mais plutôt comme un risque commercial », a affirmé Emily Moore, directrice de la gestion de l’eau, Hatch. Mme Moore a souligné qu’il peut être moins coûteux de créer un plan intégré de gestion de l’eau dès les premières étapes d’un projet, avant même l’étape de préfaisabilité. Elle a indiqué que les coûts auparavant abstraits relatifs à l’exploitation minière deviennent ainsi plus clairs, comme « le coût d’un bassin de résidus presque plein à l’arrivée de la saison des pluies. »

Plus de 4 000 étudiants et enseignants ont participé à la populaire exposition éducative et interactive M4S de l’ICM, où ils ont pu jouer à l’orpailleur, faire la visite virtuelle de sites miniers et faire l’essai de simulateurs d’équipements.

Expo!

Cette année, la salle des exposants d’Expo! était remplie à craquer ; 484 entreprises y ont présenté des produits et services de pointe des quatre coins du monde.

LAURÉATS DES PRIX DE L’ICM Ian Thomson, président, ShingleSpit Consultants. Conférence :

Le permis social d’exploitation : La réalité, les mythes et sa face cachée Wilson Pascheto, directeur du groupe de la technologie des matériaux, XPS Consulting & Testwork Services, une division de Glencore. Conférence : Technologie des matériaux dans l’industrie minière : occasions et défis Bill Steer, fondateur et directeur général du Centre écologique du Canada. Conférence : Faire des choix éclairés – Exploitation minière contemporaine « Ne pas bouger, c’est faire marche arrière! » MÉDAILLE ICM POUR SERVICES REMARQUABLES Tom Broddy Sean Waller (à gauche), auquel le président actuel de l’ICM Garth Kirkham a remis la plaque commémorative du président sortant, faisait partie des nombreuses personnalités mises à l’honneur lors du gala de remise des prix de l’ICM.

Les membres de l’ICM œuvrent jour après jour pour le bien de l’industrie minière canadienne. Le congrès annuel de l’organisme constitue l’occasion de réunir les chefs de file de l’industrie et de souligner leurs incroyables réalisations. Vous trouverez ci-dessous le nom des lauréats des prix d’excellence de l’ICM pour cette année : CONFRÉRIE DE L’ICM Les titres de confrères de l’ICM sont décernés aux personnes qui contribuent de manière remarquable et soutenue à l’ICM ou aux industries minière, métallurgique et pétrolière.

Erin Legault-Seguin, Nils Voermann, John A. Folinsbee, Xinjin Cao, Jane Spooner, James John Budac, Roman M. Berezowsky, Gerald Lefrançois, Lawrence Devon Smith, Rick Hutson (à titre posthume), Robert Schafer

ÉMINENTS CONFÉRENCIERS DE L’ICM Les éminents conférenciers sont choisis en fonction de leurs accomplissements dans les domaines scientifiques, techniques, didactiques ou de la gestion en lien avec l’industrie des minéraux. Les gagnants prononcent leurs conférences au cours des diverses assemblées des sections et des chapitres étudiants de l’ICM dans tout le pays. Dean Lee Millar, directeur du groupe Énergie, énergies renouvelables et gestion du carbone à MIRARCO, responsable du thème Énergie pour le Réseau de recherche et développement pour l’exploitation minière en profondeur (RRDEMP) du Centre d’excellence en innovation minière, professeur spécialiste de l’énergie dans le secteur minier à l’Université Laurentienne. Conférence : Le chemin vers la mine à 40 % Mauro Chiesa, Conseiller financier indépendant. Conférence : Méthode du coût complet dans la sélection de bons projets miniers Roussos Dimitrakopoulos, professeur et titulaire de la chaire de recherche du Canada (niveau I) sur le développement durable des ressources minérales et l’optimisation en cas d’incertitude, à l’Université McGill. Conférence : Complexes miniers intelligents et chaînes de valeur : Une perspective technologique sur la gestion du risque et la durabilité

Cette médaille est remise à une personne en reconnaissance de son service méritoire envers l’Institut ou l’industrie des minéraux. M. Broddy, directeur, projets d’ingénierie à Taseko Mines, est actuellement président de la Société d’exploitation minière à ciel ouvert de l’ICM. En 2016, il présidera le Congrès annuel de l’Institut qui se tiendra à Vancouver. M. Broddy a occupé le poste de président des sections de Tumbler Ridge et de Vancouver ainsi que celui de vice-président du District 6. En outre, il a joué un rôle prépondérant dans la création des sections étudiantes de l’ICM à l’Université de la ColombieBritannique et à l’Institut de technologie de la ColombieBritannique (BCIT). MÉDAILLE VALE POUR DES CONTRIBUTIONS MÉRITOIRES À L’EXPLOITATION MINIÈRE Simon Houlding

Cette médaille est décernée à quelqu’un ayant contribué concrètement à l’industrie des mines et de la métallurgie au Canada en favorisant l’extraction ou la transformation de minéraux, de combustibles ou de produits métallurgiques canadiens. M. Houlding, vice-président, perfectionnement professionnel à EduMine, se consacre depuis 15 ans à la promotion de la formation en ligne comme plateforme efficace de diffusion de l’expertise minière. Il a fondé EduMine en 1999, devenu depuis le plus important fournisseur mondial de techniques de perfectionnement professionnel et de formation en ligne sur l’exploitation minière. PRIX A.O. DUFRESNE POUR DES ACCOMPLISSEMENTS REMARQUABLES EN EXPLORATION Tom Lane Ce prix récompense les réalisations ou les contributions exceptionnelles à l’exploration minière au Canada. M. Lane, qui est directeur du développement de la recherche à CAMIRO depuis 13 ans, a joué un rôle déterminant dans l’élaboration et la gestion de 25 projets de développement technologique pour l’exploration minière. M. Lane également préside le conseil consultatif du Centre de recherche en exploration minérale (CREM) et servi de conseiller dans le cadre de plusieurs études géologiques à titre de président de comités de liaison gouvernement-industrie en Ontario et à Terre-Neuve.

Pour voir la liste de nos commanditaires, faire référence à p.64. Photos par Riccardo Cellere

June/July • Juin/Juillet 2015 | 83

MÉDAILLE DES PRÉSIDENTS DE L’ICM POUR UN RÔLE EXEMPLAIRE Trang Tran-Valade Cette médaille récompense une personne ayant donné l’exemple à ses pairs de l’ICM pour accomplir de grandes choses très tôt en début de carrière. Mme Tran-Valade, directrice des innovations stratégiques à Bestech, est présidente de la section de Sudbury de l’ICM et membre de la section de Women in Science and Engineering de cette même ville. PRIX SYNCRUDE POUR L’EXCELLENCE EN DÉVELOPPEMENT DURABLE Ce prix est décerné à des entreprises ou à des particuliers ayant œuvré à la vitalité économique, tout en proposant des solutions durables qui mobilisent et touchent la population canadienne. Sherritt International Corp. En reconnaissance du développement durable de premier ordre de sa coentreprise Ambatovy. Zhenghe Xu, professeur-chercheur subventionné par le CRSNG en génie des sables bitumineux à l’Université de l’Alberta – En reconnaissance de ses contributions au développement des technologies d’extraction des sables bitumineux et à l’amélioration d’une compréhension fondamentale pour une industrie durable des sables bitumineux. MÉDAILLE BARLOW POUR LE MEILLEUR ARTICLE DANS LE DOMAINE GÉOLOGIQUE Cette médaille récompense le meilleur article dans le domaine géologique paru dans une publication de l’ICM au cours de l’année précédente. Christine McKechnie, Irvine R. Annesley, Kevin Ansdell Pour souligner le travail des auteurs de l’article intitulé « Geological Setting, Petrology, and Geochemistry of Granitic Pegmatites and Leucogranites Hosting U-Th-REE Mineralization at Fraser Lakes Zone B, Wollaston Domain, Northern Saskatchewan, Canada » - (traduction libre : « Cadre géologique, pétrologie et géochimie du gisement d’uranium-thorium-ÉTR léger associé à la pegmatite et au granite leucocrate de la Zone B des lacs Fraser, dans le nord de la Saskatchewan, Canada ») -, qui étudie les possibilités d’exploitation rentable du minerai et de la roche mère des gisements d’uranium dans le bassin d’Athabasca. MÉDAILLE ICM POUR SERVICES REMARQUABLES PAR DISTRICT Tom Broddy Chaque année, le District de l’ouest, le District central et le District de l’est ont la possibilité de reconnaître les contributions de l’un de leurs membres. PRIX MEL W. BARTLEY POUR LES ACCOMPLISSEMENTS REMARQUABLES D’UNE SECTION LOCALE Section Amos de l’ICM

Ce prix est remis à la section de l’ICM ayant enregistré les progrès les plus notables dans la poursuite des buts et objectifs de l’Institut. PRIX DE L’ICM POUR LES SERVICES RENDUS À LA COMMUNAUTÉ Sue Tessier Ce prix honore un membre de l’ICM qui s’est dévoué pleinement afin de servir et de soutenir la collectivité et l’industrie minière de maintes façons. Mme Tessier est actuellement gardienne principale du Camp 22 de l’Université Laurentienne. Entre autres mandats, Mme Tessier est aussi présidente des dons de la section de Sudbury de l’ICM et présidente du conseil d’administration pour la Société des ingénieurs professionnels de l’Ontario. 84 | CIM Magazine | Vol. 10, No. 4

PRIX D’ÉCONOMIE DES MINÉRAUX ROBERT ELVER Lionel C. Kilburn

Ce prix de la cérémonie de l’anneau de fer est décerné à un membre de l’Institut ayant grandement contribué à l’économie des minéraux au Canada au cours de l’année précédente. M. Kilburn, président et CEO de Stuarton Resources, a travaillé à l’élaboration de la méthode des facteurs de géoscience dans l’évaluation des propriétés minérales au Canada, un domaine auquel il est associé depuis longtemps. LES PRIX DES JEUNES LEADERS CANADIENS DU SECTEUR MINIER ICM-BEDFORD Ces prix célèbrent l’avenir prometteur et l’émergence de chefs de file de l’industrie minière en soulignant les réalisations exceptionnelles des jeunes leaders canadiens d’aujourd’hui et de demain. Christine Bertoli, ingénieure en chef de la mine de Nickel Rim South pour Sudbury Integrated Nickel Operations Eugene Lei, vice-président du développement de la société Hudbay Minerals Jean-François Verret, directeur, projets d’immobilisations et exploration, Mine Raglan, Groupe Glencore Hélène Timpano, vice-présidente, optimisation des affaires, Kinross Gold Corporation PRIX POUR LA SÉCURITÉ DES CHANTIERS DANS LE DOMAINE DES MINES ET DU MINERAI DE HATCH-ICM Ce prix évalue les performances en matière de sécurité des candidats dans l’exécution de leurs projets respectifs et récompense la ou les équipes ayant respecté ou dépassé les critères fixés. The Mosaic Company – Projet d’expansion de la mine Colonsay Rio Tinto – Phase 1 du projet AP60, fonderie d’aluminium, Jonquière, Québec TROPHÉES CANADA (3 CATÉGORIES : MINES DE CHARBON, MINES DE MÉTAUX, MINES SÉLECTIONNÉES) Mine de McArthur River – Cameco Corporation (métaux) Opération Greenhills – Teck Coal Ltd. (charbon) Mine de Voisey’s Bay – Vale, Terre-Neuve-et-Labrador (mine sélectionnée) TROPHÉES RÉGIONAUX Goldcorp – mine Éléonore New Gold – mine New Afton Potash Corporation – division du Nouveau-Brunswick Syncrude Canada – mines Mildred Lake et Aurora Sudbury Integrated Nickel Operations – mine Nickel Rim South Vale Canada – Exploitation du Manitoba PRIX DE L’INITIATIVE VERS LE DÉVELOPPEMENT MINIER DURABLE (VDMD) Les prix VDMD visent à souligner le travail des sociétés, des installations et des personnes ayant mis en place des projets et des initiatives visant à accroître et à promouvoir le développement durable au sein du secteur minier. Les deux catégories pour ces prix sont l’excellence environnementale et l’engagement communautaire. Excellence environnementale : Mine de diamants Diavik et Dominion Diamond Corporation pour le programme régional conjoint visant l’ADN du grizzli Engagement communautaire : Vale, Exploitation du Manitoba pour le groupe de travail sur la diversification économique de Thompson

TECHNICAL ABSTRACTS

CIM

journal

Excerpts taken from abstracts in CIM Journal, Vol. 6, No. 3. To subscribe, to submit a paper or to be a peer reviewer—www.cim.org

Spatial modelling of geological domains with multiple training images: Application to the Red Dog mine, Alaska, United States D. A. Silva, Centre for Computational Geostatistics, University of Alberta, Edmonton, Alberta, Canada; K. J. Palmer, Teck Resources Ltd., Vancouver, British Columbia, Canada; and C. V. Deutsch, Centre for Computational Geostatistics, University of Alberta, Edmonton, Alberta, Canada

ABSTRACT Evaluating resources and reserves requires the reliable modelling of geological domains and their grades. “Multiple point statistics” simulation is a relatively new geostatistical method to generate complex, high-resolution geological models by extracting high-order spatial relations from training images. A method based on combining multiple training images is developed to obtain the correct amount of large-scale continuity and short-scale variability. A calibration process matches the geological spatial variability between the final realizations and the drillhole dataset. A case study with data from the Red Dog mine, Alaska, United States, shows an appropriate reproduction of short-scale variability along boundaries between geological units.

RÉSUMÉ L’évaluation des ressources et des réserves exige une modélisation fiable des domaines géologiques et de leur teneur. La simulation par « statistique multipoint » est une méthode géostatistique relativement nouvelle pour générer des modèles géologiques complexes à haute résolution par l’extraction de relations spatiales d’ordre supérieur à partir d’images d’entraînement. Une méthode basée sur la combinaison de multiples images d’entraînement est développée afin d’obtenir la bonne quantité de continuité à grande échelle et de variabilité à petite échelle. Un processus d’étalonnage fait correspondre la variabilité géologique spatiale entre les réalisations finales et l’ensemble des données de forage. Une étude de cas avec des données de la mine Red Dog en Alaska, États-Unis, montre une reproduction adéquate de la variabilité à petite échelle le long des limites entre les unités géologiques.

Quantifying losses in support capacity due to corrosion J.-F. Dorion, Langlois mine, Nyrstar, Quebec, Canada; J. Hadjigeorgiou, Lassonde Institute of Mining, University of Toronto, Toronto, Ontario, Canada; and E. Ghali, Université Laval, Québec City, Quebec, Canada

ABSTRACT Corrosion of support system components (e.g., bolts, mesh, plates) is a safety and economic concern in underground mines. This paper reports the results of a five-year study wherein corrosion coupons were installed at select locations in participating mines, recovered at regular intervals, analyzed for signs of corrosion, and tested to quantify loss in capacity. Complementary tests were conducted on recovered mesh and friction bolt specimens. The data provide insights into contributing factors for support systems corrosion, which aid in the selection of appropriate support strategies and reliable assessment of the useful life and need for rehabilitation of a support system.

RÉSUMÉ La corrosion des composantes des systèmes de soutien (p. ex. boulons, grillages et plaques) est une préoccupation économique et de sécurité dans les mines souterraines. Cet article présente les résultats d’une étude de cinq ans pendant laquelle des coupons de corrosion ont été installés à des endroits spécifiques dans les mines participantes ; ces coupons ont été retirés à des intervalles réguliers, analysés pour des signes de corrosion et mis à l’épreuve pour quantifier la perte de capacité. Des essais complémentaires ont été effectués sur les grillages récupérés et sur les échantillons de boulons d’ancrage. Les données aident à comprendre les facteurs qui contribuent à la corrosion des systèmes de soutien, ce qui est utile dans le choix de stratégies appropriées de soutien et pour une évaluation fiable de la durée de vie utile et du besoin de remise en état d’un système de soutien.

Use of local average subdivision to characterize marine mineral reserves—A conceptual framework T. Wambeke and M. Alvarez Grima, MTI Holland (Member of IHC Merwede Group), Kinderdijk, Netherlands; G. A. Fenton, Department of Civil Engineering, Dalhousie University, Halifax, Nova Scotia, Canada; J. Benndorf, Department of Resource Engineering, Delft University of Technology, Delft, Netherlands; and A. Vervoort, Department of Civil Engineering, KU Leuven, University of Leuven, Leuven, Belgium

ABSTRACT High-risk underwater mining operations necessitate characterizing spatial heterogeneity and resource uncertainty. Local average subdivision is a method of simulating spatial deposit variability inside a cell through a sequence of discretization stages, during which a cell is further subdivided into four or eight cells. New developments

RÉSUMÉ Les opérations d’extraction minière subaquatique à risque élevé exigent une caractérisation de l’hétérogénéité spatiale et de l’incertitude de la ressource. La moyenne locale de subdivision est une méthode de simuler la variabilité spatiale du gisement dans une cellule par une séquence d’étapes de discrétisation durant lesquelles une cellule est subdivisée en quatre ou huit cellules. De

June/July • Juin/Juillet 2015 | 85

TECHNICAL ABSTRACTS

CIM

journal

Excerpts taken from abstracts in CIM Journal, Vol. 6, No. 3. To subscribe, to submit a paper or to be a peer reviewer—www.cim.org

are presented to validate simulated deposit models and deal with point measurements of geotechnical and oregrade properties. This paper illustrates the relevance of translating spatial deposit variability into financial or operational performance indicators during underwater resource exploitation. Two synthetic case studies highlight the challenges of underwater mining in relation to production plans and equipment selection.

nouveaux développements sont présentés afin de valider les modèles de simulation des gisements et de traiter des mesures ponctuelles des propriétés géotechniques et de teneur du minerai. Le présent article illustre la pertinence de traduire la variabilité spatiale du gisement en indicateurs de rendement financier ou opérationnel durant l’exploitation subaquatique de la ressource. Deux cas synthétiques soulignent les défis de l’exploitation minière subaquatique par rapport aux plans de production et de choix des équipements.

Process description and aerosol exposures at Vale Canada’s (Inco’s) Copper Cliff nickel refinery B. R. Conard, BRConard Consulting, Inc., Oakville, Ontario, Canada

ABSTRACT As part of a series describing the nickel operations of Vale Canada (formerly known as Inco), this paper focuses on the 1973 to current operations of the Copper Cliff nickel refinery in Ontario, Canada. The process used there employs the formation of Ni tetracarbonyl at high CO (gas) pressure and its subsequent decomposition at somewhat elevated temperatures to produce highly pure Ni pellets and powders. Personal sampling of workplace aerosol dusts is reported, with information on specific Ni compounds in the aerosols.

RÉSUMÉ Dans le cadre de la série d’articles décrivant les opérations de nickel chez Vale Canada (anciennement Inco), le présent article cible les opérations de 1973 à ce jour à l’affinerie de nickel de Copper Cliff en Ontario, au Canada. Le procédé utilisé à cette usine est la formation de tétracarbonylnickel sous une pression élevée de CO (gaz) et sa décomposition subséquente à des températures plutôt élevées pour produire des granules et des poudres de Ni pur. Un échantillonnage par l’auteur des poussières en aérosol est présenté ainsi que de l’information sur les composés spécifiques de Ni dans les aérosols.

Framework for resource uncertainty prediction and data valuation: An application to diamond deposits J. G. Manchuk, Centre for Computational Geostatistics, University of Alberta, Edmonton, Alberta, Canada; J. Stiefenhofer and M. Thurston, Global Mining Division, De Beers Group Services (Pty) Limited, Southdale, South Africa; and C. V. Deutsch, Centre for Computational Geostatistics, University of Alberta, Edmonton, Alberta, Canada

ABSTRACT The degree of uncertainty associated with a natural diamond resource is important to quantify from the time of discovery through the production lifetime. Data collection occurs during the discovery, exploration, delineation, and production or recovery phases. Quantifying the relationship between data and uncertainty is an important component of project valuation. The value of data is measured as their potential to reduce uncertainty if they are collected. A method is developed using Monte Carlo simulation for predicting resource uncertainty and valuing data during critical phases of development, particularly discovery and exploration. The technique is applied to diamond pipe deposits.

86 | CIM Magazine | Vol. 10, No. 4

RÉSUMÉ Il est important de quantifier le degré d’incertitude associé à une ressource diamantifère naturelle, depuis le moment de sa découverte et durant toute la durée de l’exploitation. La collecte de données se fait durant les phases de découverte, d’exploration, de délimitation, et de production ou de récupération. La quantification de la relation entre les données et l’incertitude est une composante importante de l’évaluation du projet. La valeur des données est mesurée en tant que leur potentiel à réduire l’incertitude si elles sont recueillies. Une méthode a été développée qui utilise la simulation de Monte Carlo pour prédire l’incertitude de la ressource et évaluer les données durant les phases critiques du développement, surtout celles de la découverte et de l’exploration. La technique est appliquée à des gisements de cheminées diamantifères.

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June/July • Juin/Juillet 2015 | 87

Johannesburg, South Africa By Lindsay Seegmiller

STAY among the more luxurious, and offers massive conference facilities, direct access to the Gautrain transit railway system, Mandela Square and Sandton City Mall, and a full fitness centre complete with an indoor swimming pool.

Derek Keats

Major business activities tend to centralize around Sandton – the opulent financial district of the city that doubles as a tourism hub. Here, the Sandton Sun (R 1,800+) is a popular choice, given its quality business facilities and the fact that it directly adjoins the Sandton City Mall. The Michelangelo on Nelson Mandela Square (R 3,000-3,250) is

Hotel (R 1,200+), the InterContinental Sandton Towers (R

In addition, there are a number of recognized international hotels like the Radisson Blu Gautrain

TIP

3,300+) and the Hilton Sandton (R 1,600+), all of which

have the amenities common to these chains.

If business does not demand that you stay in Sandton, consider the leafy neighbourhood of Rosebank (try 54 on Bath).

DINE

CCFoodTravel

WHERE TO

n 1884 Jan Gerritse Bantjes found a gold reef on a farm in what would become South Africa. The discovery triggered a gold rush and the rapid development of the financial and commercial heart of the region: Johannesburg. Over the past century and a half, the “City of Gold” has reinvented itself politically and culturally countless times – and today is no different. A slew of innovative businesses, boutiques, restaurants and galleries are refilling the once-decrepit downtown core, drawing in the dozens of cultures and many customs that make up the utterly vibrant “Rainbow Nation.” Today the city, also known as Jo’burg or Jozi, attracts far more than mining industry professionals; it is rapidly establishing itself as the new “it city” in South Africa.

Restaurant options are overwhelming in Sandton – and virtually endless in the city as a whole. South Africa prides itself on an array of unconventional and expertly prepared meats. Snack on biltong – meat that has been dried and cured –

when you arrive, before moving on to a traditional South African braii (barbeque) of kudu, impala and ostrich steaks, and plenty of boerewors (sausage) varieties. The Butcher Shop & Grill and Karoo Cattle & Land – both in Sandton – are two great spots to wrap your head and palate around meat, wine and other Afrikaner specialities. South Africa’s reputation as the “Rainbow Nation” is reflected in its culinary scene. Authentic Italian

88 | CIM Magazine | Vol. 10, No. 4

bistros (Dino’s Trattoria and Pomodoro in Sandton) are tucked away between dim sum institutions like Koi (in Sandton and Rosebank). Little Addis Café in Mabo-

neng draws in flavours from around the continent, while Five Hundred and Saxon Hotel – both in Sandton – compete for the title of the absolute best restau-

rant in the country. Prices at restaurants range alongside quality, with an average meal costing between R 200 and R 400.

TIP WmJR

WHERE TO

flowcomm

TRAVEL

How do you like your biltong? Snack on different flavours and preparation methods until you find your favourite – and use this as a conversation starter with locals. Often, it is a point of considerable passion!

WHERE TO

Of course, South Africa has propelled

TIP

Fiona Henderson

Get out of the car and onto a bike to fully experience the vibrancy of Soweto. A half-day guided tour shows you major sites and quieter corners from a distinctly local perspective. Be sure to try the bunny chow!

Art and handicrafts also play a central role in the local culture. On Sundays, Rosebank Mall opens up a rooftop market rich

Looking beyond the city, your options are endless. From the vineyards of Cape Town to the wilds of Kruger National Park, South Africa is quickly becoming a destination for adventure and indulgence.

PAY

South Africa uses the rand (ZAR/R). The currency has been on a steady decline over the past five years and currently trades at around R 10 to one Canadian dollar. Credit cards and debit cards are widely accepted, and ATMs are located readily throughout the city.

GETTING Andrew Moore

2010 FIFA World Cup – is exhilarating.

Ulrika

HOW TO

itself forward in the post-Apartheid world, and Johannesburg is about much more than just its history. Sporting events – soccer and rugby in particular – quicken the pulse of the country and catching a game at First National Bank Stadium or Ellis Park Stadium – both venues for the

with unique souvenirs, and the newly restored Maboneng Precinct provides a glimpse into the artistic and urban rebirth of Jo’burg.

Bernard Dupont

Martijn.Munneke

was Johannesburg home to historically important events during the anti-Apartheid struggle and, as such, many local attractions revolve around this theme. The Apartheid Museum, adjacent to the Gold Reef City amusement park, provides an eloquent and moving account of the country’s history. Further, a tour through the township of Soweto brings it to life when you stand in front of the house of the late Nelson Mandela.

jespahjoy

EXPLORE

AROUND

The newly constructed Gautrain rail system makes connections between Sandton and the airport effortless. When moving through the city more broadly, marked and metered taxis are best. Renting a car is also an option – especially if you welcome the challenge of finding your way around. But be warned: driving is generally hectic, and navigation is far from intuitive. No matter how you travel the city, brace yourself for heavy traffic in the morning and evening – especially if you are coming in or out of major business areas like Sandton. Should work or pleasure require you to leave Johannesburg, air travel is the best choice. Domestic flights tend to be inexpensive, frequent and reliable, connecting most major southern African cities and destinations.

June/July • Juin/Juillet 2015 | 89

Chivor: a mine lost and re-discovered By Antony Strickland

Courtesy of Wikimedia Commons

n the mid-16th century, Spanish conquistador the king to officially name a governor, but he did Gonzalo Jiménez de Quesada headed an not pick any of them. Quesada, devastated by expedition deep into the harsh jungles of the result, eventually returned to Colombia present-day Colombia in search of the and led one last, disastrous expedition in legendary kingdom of El Dorado. Although search of gold. After what was considered to he ultimately failed to find the city of gold, be the most expensive and catastrophic Quesada’s costly quest in the region Spanish expedition at the time, Quesada established what would become the city of retired to his Colombian home, ruined and Bogotá and, more importantly to the sick with leprosy. He died in 1579. avaricious Spanish, discovered the riches of By this time, the Chivor mine had lost its the Colombian emerald mines. shine. The site was remote, the Spanish knew Conquistadors first saw emeralds in the nothing of the region’s geology and the emerornaments of the Aztecs, Maya and Incas. alds were hard to locate. The abuse of the Inquiries traced their source to Colombia, in the enslaved natives reached a boiling point by 1593, Gonzalo Jiménez mountains northeast of Bogotá. Quesada, then the and the Spanish colonial government issued a decree chief magistrate of the colony of Santa Marta on the de Quesada to protect the native population, which was eventually north coast of present-day Colombia, heard the rumours about followed by a Royal Order from Spain for the indigenous peothe source of the emeralds and dispatched Captain Pedro Fer- ples’ full freedom. Neither of these orders was respected by the nández de Valenzuela to lead an expedition in 1537 to find it. mine operators. In 1602 King Felipe II of Spain called for De Valenzuela came across the Chibcha Indians who were another enforcement of the orders and still, the brutality conexcavating and producing emeralds on a steep ridge in the tinued. Finally, to put an end to the cruel treatment of the aboEastern Cordillera. riginals, at the insistence of Pope Clement X, Carlos II ordered Expeditions in the 1500s usually included a monk who the mine closed. It was abandoned in 1675 and left to be overkept a journal of the expedition’s route and daily activities. The grown and shrouded in mountain mist. monk in de Valenzuela’s party noted that the emeralds were Centuries later, in the late 1800s after Colombian indefound on a high ridge overlooking the River Rucio, at the only pendence, a mining engineer named Don Francisco Restrepo place where the plains, or “Los Llanos,” were visible through a found the account of the de Valenzuela’s expedition of 1537 in V-notch in the mountain range to the east. the documents left behind by the Spaniards while going The native populations around the mine erupted into war through the Colombian Historical Archives. in the 1530s, and Quesada pounced on the opportunity to Inspired by the monk’s record, Don Francisco organized an found Bogotá in 1538, wasting no time in taking over the expedition in 1896 to find the lost mine. After weeks of hacknearby mining operation. Quesada’s men forced an estimated ing through the bush on steep mountain sides he found a ridge 1,200 natives to work what they called the Chivor mine for where he could see the plains through a V-shaped notch in the their benefit, ignoring the official Spanish policy of Christian- mountain range to the east, just as the monk had described. izing the natives, which would have prohibited their enslave- Almost at once he uncovered old mine terraces and the ment. Some were confined inside exploration tunnels and remains of aqueducts. After more than 200 years hidden away, could only earn their release by producing emeralds. the mine was re-started. Unbeknownst to him at the time, Quesada had taken posThroughout the 20th century, the mine passed through a session of one of the purest sources of emeralds in the world. number of hands including a German owner, several American The emeralds of this region are the only ones on earth hosted investors and the Canadian company Chivor Emerald. In 1920 in sedimentary rather than igneous rock, which allowed a nat- the largest raw emerald in history, “The Patricia” – named after urally occurring saline solution to wash away any impurities the daughter of the mine operator at the time – was found. It during the crystallization process. Quesada’s brutal mining weighed 632 carats (126.4 grams) and sold for $60,000. practices decimated the local labour supply but produced the Quesada’s legacy does not do him justice. Although he is beautiful deep green emeralds adored by monarchs in India, mainly remembered for his descent into ruin, he was an effective Turkey, and Persia. colonist for better or for worse – founding and governing Bogotá, By the following year, his governorship was challenged by designing the first legislation of the area, and acting as its first histhe expeditions of Sebastian Belalcazar from Peru and Nicolás torian. He may have failed to find El Dorado, but he was responFederman from Venezuela. All three journeyed to Spain for sible for the discovery of the purest emeralds in the world. CIM 90 | CIM Magazine | Vol. 10, No. 4

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