CIM Magazine November 2012 by CIM-ICM Publications

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CONTENTS|CONTENU CIM MAGAZINE | NOVEMBER 2012 | NOVEMBRE 2012

TOOLS OF THE TRADE 10

Dewatering Compiled by Z. Koulouris

NEWS 14 22

Industry at a glance Charting the Arctic seas Will increased nautical

knowledge trigger development in Canada’s Far North? by H. Mathisen

Mining payments up Some provinces reap rewards more than others by Z. Macintosh 24 All in at Minexpo Over 58,000 attend Las Vegas mining equipment tradeshow by R. Bergen 26 Black clouds over Plan Nord PQ calls for revision of mining royalty regime by A. Castonguay 28 B Une ombre plane sur le Plan Nord Le Parti québécois appelle à une révision du régime des redevances minières par A. Castonguay

COLUMNS 30 31 32 34 35 36

MAC Economic commentary Will Canada stay the course as a free trader? by P. Gratton Eye on business Critical financial considerations in planning and negotiating an IBA by H. Sands Standards CSA Staff Notice 43-307 provides important guidance on disclosure of PEAs by G. Gosson HR Outlook Inclusion and diversity in mining: steps from dialogue to action by M. Sturk Energy Efficient comminution strategies cut costs and energy consumption by E. Lewis-Gray Safety Are we underestimating risk? by I. Ross

UPFRONT 38

Orbite launching into alumina market Acid process yields high-purity product and no red mud by A. Castonguay

40 B Orbite produit de l’alumine en Gaspésie Un procédé acide ne crée pas des boues rouges

par A.

Castonguay

42 44 48

42 4 | CIM Magazine | Vol. 7, No. 7

No guts, no glory in Guinea Rapidly evolving jurisdiction challenges miners in search of great rewards by A. Reitman Mine-to-mill mastery Antamina boosts throughput for hard ores with support from Metso PTI by M. Samuel CRU boss Experience forges insight for Phil Newman, CEO of CRU Strategies by C. Baldwin

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CIM COMMUNITY

FEATURE | ARTICLE VEDETTE

THE RING OF FIRE 50

The quest for fire The rewards will be great for those intent on developing Ontario’s new mining

district, but they will not come without plenty of hard work and more than a little patience by D. Jenish Slow burn Tight markets, limited infrastructure and challenging relationships test the resolve of those exploring the Ring of Fire by E. Moore

56 B La quête du feu Les récompenses seront importantes pour ceux qui développeront le nouveau

Get engaged CIM membership helps drive community involvement, maximize industry knowledge and global exposure

B Optimisez votre niveau d’engagement

Renforcez votre implication communautaire, vos connaissances techniques et votre visibilité à l’échelle mondiale by/par D. Zeldin CIM national on the ground Staff get a firsthand look at mining in Quebec

district minier de l’Ontario, mais ils les gagneront à force de patience et à la sueur de leur front

Le bureau national de l’ICM sur le terrain

par D. Jenish

Le personnel témoigne directement des activités minières au Québec by/par D. Zeldin

58 B Á feu doux Les marchés restreints, les infrastructures limitées et les défis relationnels mettent à l’épreuve la détermination des explorateurs de la ceinture de feu par E. Moore

Made in Canada Members Award winner Robert Lipic builds global supply chain by K. Lear 95 50 years of success Quebec North-East Branch supports region’s projects B Plus de 50 ans de réussite La section Québec Nord-Est appuie les projets de la région

by/par A. Castonguay

Something for everyone SCBC Branch executive focuses on meeting all members’ needs by A. Lopez-Pacheco

PROJECT PROFILE | PROJET EN VEDETTE 60

Nest egg Noront Resources plans to build a “model mine for the future,” under the muskeg of northern Ontario by C. Baldwin

64 B Richesse nordique Noront Resoures veut développer une mine modèle pour le futur près la fondrière de mousse du nord de l’Ontario par C. Baldwin

Strength in numbers CIM develops partnership to foster international collaboration by D. Zeldin 99 Now in Peru CIM Branch opens in Lima by D. Zeldin 100 Fresh perspective Michel Jébrak examines “Innovation in Mining Exploration” B Une nouvelle perspective Michel Jébrak examine « L’innovation en exploration minière » by/par A. Lopez-Pacheco

102

Innovation occasion COM 2012 celebrates industry progress by H. Mathisen

TECHNICAL ABSTRACTS 108 112 114

CIM Journal EMG Journal Canadian Metallurgical Quarterly

IN EVERY ISSUE

67 68

DOSSIER SPÉCIAL SPECIAL REPORT L’Exploration des hydrocarbures Fossil fuel exploration par/by A. Dion-Ortega

Graphiques – le passé et le futur mis en perspective

6 8 103 115 116 118

Editor’s letter President’s notes / Mot du president Calendar Innovation showcase Professional directory Mining Lore How NAME opened up Canada’s North: Jack Hammell and the birth of aerial prospecting by C. Baldwin

Infographic – past and future in perspective

Enjeux autochtones Aboriginal issues par/by A. Castonguay

La croissance des fournisseurs Supplier growth par/by A. Castonguay

Voix d’un vétéran Veteran voice par/by R. Dufour

November 2012 | 5

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editor’s letter

Northern lights Nearly everyone seems anxious to weigh in on the issues surrounding the development of Canada’s mineral-rich north these days. From roadways and infrastructure development to community engagement and environmental impact, it appears the challenges are as plentiful as the potential resource bounty. In this issue, we aim to give exposure to some of these topics by focusing on two rapidly evolving mining jurisdictions. Our feature spotlights northern Ontario’s Ring of Fire region, where two mining projects promise to open up the area to more mineral exploration, a development that cannot happen too quickly for explorers anxious to add fuller detail to the region’s mineral potential. Then, in our Special Report on Quebec, we examine some of the hot-button issues at play in a jurisdiction that is at the centre of a great deal of political scrutiny and media attention. Antoine Dion-Ortega reports on the uncertainty surrounding fossil fuel exploration, while Alain Castonguay looks at how the expansion of mining activity is impacting suppliers to the industry as well as Quebec’s Aboriginal landscape. Veteran mining professional and former CIM president (1988 – 1989) René Dufour weighs in on Quebec’s northern development strategy in an opinion piece entitled “China’s Plan Nord.” Also, mark your calendars for the upcoming 45th Annual Canadian Mineral Processors Conference, to be held in Ottawa, Ontario, from January 22 to 24. You can find the Preliminary Program on pages 104-107. Finally, check out CIM Magazine’s 2013 Editorial Calendar on page 111. We are very excited about our expansion to nine issues next year and our opportunity to bring you increased comprehensive coverage of the mining world.

Éclairage boréal De nos jours, chacun semble pressé de donner son avis sur les enjeux qui entourent le développement du nord canadien, riche en minéraux. Du développement des routes et des infrastructures à la participation des collectivités et à l’impact environnemental, les défis à relever abondent tout autant que les ressources potentielles. Dans ce numéro, nous souhaitons mettre en lumière certains de ces sujets en nous penchant sur deux régions minières dont l’évolution s’accélère. Notre article vedette dirige les projecteurs sur la région du cercle de feu, au nord de l’Ontario, ou deux projets miniers se préparent à ouvrir la région à plus d’exploration minière, un développement qui ne saurait survenir trop tôt pour les explorateurs anxieux d’obtenir plus de détails sur le potentiel minéral de la région. Nous examinons ensuite, avec notre Rapport spécial sur le Québec, certains des dossiers chauds actuels dans cette province qui focalise l’attention politique et médiatique. Antoine Dion-Ortega relate l’incertitude qui entoure la recherche de combustibles fossiles, et Alain Castonguay examine l’impact de l’expansion des activités minières sur les fournisseurs de l’industrie et sur le paysage autochtone du Québec. René Dufour, expert vétéran du secteur minier et ancien président de l’ICM (19881989), se prononce sur la stratégie de développement du Nord du Québec dans un article d’opinion intitulé « Le Plan Nord de la Chine ». Aussi, à noter sans faute au calendrier, la 45e conférence annuelle de la Société canadienne du traitement des minerais, qui se tiendra du 22 au 24 janvier à Ottawa, en Ontario. Vous trouverez une version préliminaire du programme aux pages 104 à 107. Finalement, découvrez le calendrier éditorial 2013 de CIM Magazine en page 111. Nous sommes enchantés de passer à neuf numéros par an pour l’an prochain et de pouvoir ainsi vous livrer une information encore plus complète sur le monde minier.

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

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

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

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

Zoë Koulouris, zkoulouris@cim.org Web editor Nathan Hall, nhall@cim.org Editorial interns Herb Mathisen, hmathisen@cim.org Zoë Macintosh, zmacintosh@cim.org Maria Olaguera, molaguera@cim.org Publisher CIM Contributors Correy Baldwin, Alain Castonguay, René Dufour, Greg Gosson, Pierre Gratton, D’Arcy Jenish, Kim Lear, Elizabeth Lewis-Grey, Alexandra Lopez-Pacheco, Eavan Moore, Antoine Dion-Ortega, Anna Reitman, Iain Ross, Marta Samuel, Harvey Sands, Melanie Sturk Published 8 times a year by CIM 1250 – 3500 de Maisonneuve Blvd. West Westmount, QC, H3Z 3C1 Tel.: 514.939.2710; Fax: 514.939.2714 www.cim.org; Email: magazine@cim.org Subscriptions Included in CIM membership ($170.00); Non-members (Canada), $220.00/yr (PE, MB, SK, AB, NT, NU, YT add $11.00 GST, BC add $26.40 HST, ON, NB, NL add $28.60 HST, QC add $32.95 GST + PST, NS add $33.00 HST) Non-Members USA and International: US$240.00/year Single copies, $25.00. Advertising Sales Dovetail Communications Inc. 30 East Beaver Creek Rd., Ste. 202 Richmond Hill, Ontario L4B 1J2 Tel.: 905.886.6640; Fax: 905.886.6615; www.dvtail.com National Account Executives 905.886.6641 Janet Jeffery, jjeffery@dvtail.com, ext. 329 Neal Young, nyoung@dvtail.com, ext. 325

This issue’s cover Core samples from Noront Resources’ operations in Ontario’s Ring of Fire. Courtesy of Noront Resources Layout and design by Clò Communications Inc. www.clocommunications.com Copyright©2012. All rights reserved. ISSN 1718-4177. Publications Mail No. 09786. Postage paid at CPA Saint-Laurent, QC. Dépôt légal: Bibliothèque nationale du Québec. The Institute, as a body, is not responsible for statements made or opinions advanced either in articles or in any discussion appearing in its publications.

Printed in Canada

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008-008 Pres Notes v4_pres notes 2012-10-30 11:34 AM Page 8

president’s notes

CIM around the world This past October, I attended the 51st Conference of Metallurgists in Niagara Falls. It was my pleasure to present CIM Fellowship Awards to five worthy recipients, including Nathan Stubina who, as well as being a past-president of MetSoc, is currently VP International of CIM. I would like to congratulate the new president of MetSoc, Vladimiros Papangelakis, along with all of the volunteers and staff members who did such a great job organizing a wellattended and informative conference. MetSoc is another one of our Societies that is alive and well thanks to dedicated members and staff. CIM’s mission is to expand links to potential members and mining communities abroad, and we are moving forward on this front. Minexpo 2012 in Las Vegas was the backdrop for CIM leadership to meet with sister mining associations AusIMM, SAIMM and SME. This meeting – the third one bringing us all together – began to assemble a framework for increasing cooperation. Our aim is to improve communications, develop mutual member benefit programs, and share technical meeting and networking opportunities.

In mid-October, CIM took part in a private round table session in Dakar, Senegal, with Canadian Prime Minister Stephen Harper and six other Canadian business community members with a strong presence in West Africa. CIM outlined several initiatives, such as the opening of its first West African branch in Dakar and the funding of two projects to develop an analysis model for supply chain opportunities related to West African gold mining. These initiatives are the result of extensive efforts by CIM executive director Jean Vavrek and the CIM International Committee to strengthen CIM’s presence globally. On an individual level, I want to encourage you to take advantage of CIM’s revamped website, where you can update your member profile and continue to profit from the benefits of belonging to the CIM community of expertise. This issue of CIM Magazine again highlights the important impact of mining on Canada’s economy with its focus on the “Ring of Fire” in Ontario. Big mineral discoveries continue to occur in Canada, and CIM members and their expertise are essential to the development of these exciting new opportunities. As I write this, fall is in full colour, but it will soon give way to winter. So please be ready for the challenges of winter driving and ensure that winter tires have been installed on all your vehicles.

Terence Bowles, CIM President

L’ICM dans le monde En octobre dernier, j’ai pu assister à la 51e édition de la conférence des métallurgistes à Niagara Falls. À cette occasion, j’ai eu le plaisir de remettre le prix Confrérie de l’ICM à cinq personnes très méritantes, dont Nathan Stubina qui, en plus d’avoir déjà été président de MetSoc, est actuellement vice-président international à l’ICM. J’aimerais féliciter le nouveau président de MetSoc, Vladimiros Papangelakis, les bénévoles ainsi que les membres du personnel pour leur travail formidable d’organisation de cet événement très instructif qui a attiré un grand nombre de participants. MetSoc est une autre de nos sociétés dont la vitalité et la solidité reposent sur le dévouement de ses membres et de son personnel. L’initiative de l’ICM consiste à développer les liens avec les membres potentiels et les collectivités minières à l’étranger et nous progressons vers ce but. C’est dans le cadre de l’événement MinExpo 2012 à Las Vegas que l’équipe de direction de l’ICM a rencontré les associations minières sœurs AusIMM, SAIMM et SME. Cette rencontre, la troisième à ce jour, a permis de jeter les bases d’un cadre visant à stimuler la collaboration. Nos objectifs sont l’amélioration des communications, l’établissement de programmes d’avantages mutuels pour les membres ainsi que le partage des occasions de réunions techniques et de réseautage. À la mi-octobre, l’ICM a participé à une table ronde privée à Dakar (Sénégal) avec le premier ministre du Canada Stephen Harper et six autres membres du secteur canadien des affaires menant des activités importantes en Afrique occidentale. L’ICM a esquissé à grands traits plusieurs initiatives, dont l’ouverture, à Dakar, de sa première

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

succursale en Afrique occidentale ainsi que le financement de deux projets de développement d’un modèle d’analyse des possibilités en matière de chaîne d’approvisionnement dans le domaine de l’exploitation aurifère dans cette partie du continent africain. Ces initiatives sont le fruit du travail acharné de Jean Vavrek, directeur exécutif de l’ICM et du comité international de l’Institut en vue de renforcer la présence mondiale de ce dernier. Personnellement, je vous invite à visiter le site Web remanié de l’ICM, où vous pouvez mettre à jour votre profil et continuer de tirer parti des avantages découlant de votre adhésion à cette communauté d’expertise. Ce numéro de CIM Magazine souligne de nouveau l’influence importante de l’exploitation minière sur l’économie canadienne en mettant l’accent sur « le cercle de feu » en Ontario. D’importantes découvertes de minerais se poursuivent au Canada et les membres de l’ICM ainsi que leur expertise jouent un rôle essentiel dans l’exploitation de ces nouvelles occasions fort intéressantes. Au moment où j’écris ces lignes, les feuilles ont pris leurs coloris flamboyants d’automne et annoncent déjà l’arrivée de l’hiver. Aussi, j’en profite pour vous rappeler d’installer des pneus d’hiver sur tous vos véhicules pour être mieux armés contre les pièges de la conduite hivernale.

Terence Bowles, Président de l’ICM

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OF TOOLS THE TRADE

dewatering

◢ A tailings pond’s best friend

◢ On-demand energy savings The NRG1-ECO (Energy Consumption Optimization) software developed by Bestech helps mining companies cut energy costs without reducing performance. “Our solution connects via communication infrastructure to devices like dewatering pumps, which are continuously used for underground mining operations,” says Pat Dubreuil, vice-president operations, sales and marketing with Bestech. Operational data from the devices is viewed and collected in real-time via the central human-machine interface (HMI) used to navigate and operate NRG1-ECO. “Historically these devices were set up with a point of local control, such as an HMI which can control the pumps, or an HMI that can control a particular fan or booster,” Dubreuil says. “Our software aggregates all of these control processes under one central platform providing the user with one-stop-control solutions.”

◢ All decked out Italian producer of polyurethane dewatering panels Eurogomma mainly offers three modular systems (EURO-PS - 305mm x 305mm; ErStep - 300mm x 600 mm and EURO-FG - 300mm x 1,000mm) but also makes custom panels of any dimension or aperture size. The company also produces on-demand, made-to-specification equipment for decks, where dewatering panels are installed. The panels are used to dewater mineral or aggregate sand from processing equipment like hydrocyclones, desliming drums and trommel screens. Dewatering creates almost-dry sand that can be immediately stocked and loaded onto trucks. “We have gained solid results in the field,” says Cristian Annoni, marketing and sales director with Eurogomma. “Clients call on us to help them increase their dewatering efficiency because they’ve been using decks that are too small. Using polyurethane dewatering enables mining companies to increase deck lifetime and cut downtime due to maintenance.”

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

The new Draglow HY85 slurry pump from Aquatech Dewatering comes with a high-efficiency agitator to prevent solids from blocking the pump inlet. The agitator cutter blades are made of hi-chrome steel which is very hard and resistant to abrasion. They create an excavating motion, which lifts and draws settled sediment, creating a continuous flow of concentrated slurry of up to 70 per cent solids by weight. “Compared to other pumps of similar capacity, Dragflow offers a lower operating RPM and is built from robust heavy-duty construction that guarantees lower wear rates and prolonged component life,” says Ellen Nyarko, marketing and communications coordinator at Aquatech Dewatering. “The use of simple components means lower costs and easier maintenance.” When mounted onto an excavator, the HY85 can handle solids up to 2.4 inches in diameter, and it can dredge deposits as deep as 250 metres.

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OF TOOLS THE TRADE

dewatering

◢ Going deep Boart Longyear offers key tooling and techniques for dewatering to drill deep- and large-diameter holes in difficult conditions. The company offers services for conventional, reverse-circulation, horizontal and large dual-tube flooded-reverse drilling methods for deep wells and horizontal drainage. Flooded reverse circulation, for instance, can drill diameters of up to 60 inches in a single pass. “The primary application of our drilling service is for monitoring water tables in and around the mine, supplying water needed in the mining process, and lowering water tables to allow safe and efficient mining,” says Dale Johnson, Boart Longyear’s global director of drilling services operations. “We also drill and install horizontal drains for open pit and underground applications.”

Hopping good The Flygt Mobile Dewatering Hopper from Xylem is a simple-to-use and cost-effective mobile pump station for temporary use in a mine or construction site. “Designed in consultation with underground operators, the beauty of this dewatering solution is that it comes fully assembled and ready to pump when delivered,” says Fredrik Holm, Xylem’s communications manager. Because they have multiple lifting points, the hoppers are mobile, and can replace costly permanent sumps. The hopper has a 10,000-litre capacity and is fitted with 90 kW pumps that can handle flows of up to 100 litres per second. Easy maintenance is one of the key features of the unit. Heavy solids are separated with a screen from the pump section, and each segment has butterfly valves for quick and easy cleaning. The pumps in the hoppers are protected from accidental damage and oversized solids in the water by screens that are easily removed for maintenance purposes. Xylem’s Flygt Mobile Dewatering Hopper is also available in a galvanised finish and can be rubber-lined for corrosive duties upon request.

◢ Top-notch service Equipped with western Canada’s largest fleet of high-lift pumps, submersible pumps, conventional and non-conventional dredges, along with a variety of piping systems, Canadian Dewatering offers customers an enormous range of options for mine dewatering services. Its rentals, sales, and contract services are available for pumping, barging, dredging, dewatering and sediment control needs. “With four decades of experience and best-in-class customer service, Canadian Dewatering is the mining industry’s expert for innovative fluid management solutions,”says Dale Marchand, president of Canadian Dewatering. “We are ready and equipped to meet all fluid management challenges.” Compiled by Zoë Koulouris

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

010-013 Tools of the Trade v3.qxd_Layout 1 2012-10-30 11:38 AM Page 13

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014-021 Briefs v7_001-001 Cover 2012-10-30 11:37 AM Page 14

news | industry at a glance Syncrude to seek extension of Mildred Lake operation Syncrude is planning to mine two new oil sands sites on leases it currently holds in Alberta’s Athabasca region. Cheryl Robb, a Syncrude spokesperson, said the proposed Mildred Lake Extension (MLX) project will replace the bitumen supply from its current mining site once it is depleted. Marcel Coutu, CEO of Canadian Oil Sands (COS), which holds a 36.74 per cent stake in the Syncrude project, said the company hopes MLX will extend “the useful life of the mine trains that we are building today into the 2030s.” According to Coutu, the extension project will “minimize new land disturbance through the utilization of existing environmental and operating infrastructure.” Robb said mine train equipment, which is currently being relocated

closer to its current mine site 40 kilometres north of Fort McMurray, will be used for future bitumen processing. Syncrude will seek stakeholder feedback regarding its plans prior to submitting the project for regulatory approval, it hopes, in 2014. Reserves on Syncrude’s leases could take it to – Herb Mathisen 2070, Robb said.

Ontario’s Mining Act modernization becomes law The Ontario government is phasing in new legislation designed to formalize and enhance consultation between exploration companies and First Nations in the province. While voluntary for now, as of April 1, 2013, companies will be required to submit exploration plans before conducting exploration activities. The new rules serve to inform potentially affected First Nations and private

landowners of work such as core sample drilling or line-cutting. As site exploration becomes more extensive, companies will have to apply for an exploration permit, which will be posted to the province’s environmental registry to allow for public feedback, said Cindy Blancher-Smith, Ontario’s acting assistant deputy minister of mines. “The mining act of yesterday did not regulate early exploration,” said Blancher-Smith, “so this is a first in that once a claim has been recorded, we will now become aware of exploration activities at the very early stages.” Rob Merwin, mining act modernization secretariat director, said the act’s gradual implementation is intended to educate industry participants. “We think that there are a lot of really good, positive relationships between industry and First Nations, and a lot of common ground,” he said. Stop-work orders, permit cancellations and fines of

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014-021 Briefs v7_001-001 Cover 2012-10-30 11:38 AM Page 16

news | industry at a glance up to $100,000 are penalties the government can impose if a company contravenes the act, but Merwin added – H.M. “that is the last resort.”

Inquiry launched to investigate Lonmin strike The South African government has launched a commission of inquiry to look into what caused the violence that erupted during the Marikana platinum mine strike in August. More than 3,000 workers went on strike August 10 and, over the next 10 days, 44 people were killed, including two police officers. More than 70 others were injured in skirmishes between union members and police. On August 16, police opened fire on striking miners, killing 34. The commission will look into the actions of the operator of the mine, Lonmin Plc, along with the South African Police Service, the National Union of Mineworkers and the Association of Mineworkers and Construction Union, to examine whether they could

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

have mitigated tensions earlier in the dispute. The judicial panel will make recommendations on how to resolve future conflicts; it also has the authority to refer individuals to law enforcement agencies for prosecution or further investigation. The inquiry, which will include public hearings, has December set as a deadline to complete its work. On September 18, Lonmin and its workers reached a settlement, with workers gaining up to 22 per cent in wage increases. Since the unrest at Marikana though, strikes have spread to other platinum and iron ore mines and even into the trucking industry. Citing these uncertainties, Standard & Poor’s downgraded the country’s longterm and short-term foreign currency ratings in mid-October. – H.M.

Mining CEOs making less in 2012 This year has not been good to the head honchos of Canadian mining

companies. A recent survey by Coopers Consulting and PricewaterhouseCoopers Canada found overall CEO wages decreased by roughly seven per cent in 2012. While the average base salary for CEOs actually rose to $490,000 this year from $486,000 in 2011, bonus pay dropped 31 per cent to $370,000. Lou Vujanic, a partner with Coopers Consulting, said disclosure requirements are becoming stricter, and when companies file their executive compensation packages with security regulators, they have to account for the different elements that make up the bonuses. “I think the general practice was that a lot of the bonus allocations were simply left up to the discretion of the board,” he said. Michael Cinnamond, a partner with PricewaterhouseCoopers, also noted the adverse effects the slowdown in China’s economy, the eurozone crisis, and softer commodity prices all had on some mining companies’ bottom lines.

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news | industry at a glance Vujanic added he did not know if CEO pay dropped in other sectors, since the survey was focused on the mining industry. – H.M.

Yukon College has launched a mineral resources program that offers both a one-year certificate and a two-year technologist program. The first class will be limited to 15 students. Graduates of the two-year program will be eligible for accreditation as Professional Geological Technicians. Some of the courses will also be eligible for transfer as university credits. There is a boom in mining and exploration jobs in the Yukon, which now has three operating hard rock mines with about 750 employees. Prior to the start up of Capstone Resources’ Minto Mine in 2007, there were no large-scale mines in the territory. According to Bryony McIntyre, manager of Yukon Energy, Mines and Resources, there are about 2,500 direct jobs in Yukon placer mines and exploration projects that typically operate between May and October. – Brian O’Hara

Rio Tinto sells off two South African coal properties Toronto-based Forbes & Manhattan has entered into an agreement to purchase two South African thermal coal properties from Rio Tinto. The deal, worth $52.3 million, will see 74 per cent interest in both the Zululand Anthracite Colliery and Riversdale Anthracite Colliery transfer hands. The Zululand mine, according to Forbes & Manhattan, has produced an average of 700,000 tonnes of ore per year over the last five years. This deal puts the Forbes Coal division closer to its stated goal of becoming a three- to four-million-tonne coal producer per annum. Rio Tinto also announced its intention to sell off its 57.7 per cent stake in the Palabora Mining Company copper mine located in South Africa’s Limpopo province. The company will not be 18 | CIM Magazine | Vol. 7, No. 7

Courtesy of Yukon College

Yukon College adds minerals program

Students learning the tools of the trade in Yukon College’s new mineral resources program.

leaving the country completely though, as it finalized a deal with BHP Billiton to double its interests in the Richards Bay Minerals mineral sands and processing project for $1.7 billion. – H.M.

ERM acquires Canadian environmental consulting firm Environmental Resources Management (ERM) has purchased Vancouverbased environmental consulting firm Rescan Environmental Services. Clem Pelletier, who founded Rescan in 1981, will stay on as president of Rescan’s operations. His son, Pierre, who was the president of Rescan, will become a managing partner with ERM Canada. “It was kind of a planned strategy on our side – whether to continue to grow Rescan from our side or to merge with a larger company,” said Clem Pelletier, adding that ERM was interested in Rescan due to its foothold in the Canadian mining consultancy business. At the time of the deal, Rescan had increased its workforce to roughly 200 employees, and Pelletier believes this trend will continue. Rescan, which has two major offices in Saskatoon, Saskatchewan and Vancouver, BC, and eight regional offices located in British Columbia, the Northwest Territories and Seattle,

Washington, will operate as Rescan, an ERM Group Company. ERM has offices in Montreal, Toronto, Vancouver and Calgary. ERM, an environmental consulting company based in the United Kingdom, has more than 4,700 employees and 140 offices in 40 countries. As both companies are privately owned, no financial details of the deal were – H.M. released.

A deadly blow for asbestos in Quebec Newly-elected Parti Québécois Premier Pauline Marois has made good on her campaign pledge to end the province’s asbestos industry. Underground expansion at Mine Jeffrey Inc. in Asbestos, Quebec, was slated to go ahead thanks to a $58-million loan promised by the previous Liberal government. However, mine president Bernard Coulombe confirmed the loan was cancelled on October 1 and, as a result, he will shut down the province’s last asbestos mine, which had been in operation since 1879. Workers will remove equipment, cap the mine’s two shafts and flood the open pit, leaving what Coulombe says are two million tonnes of proven chrysotile ore. Responding to Marois’s actions, Canadian Industry Minister Christian

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p e t ro l e u m e q u i p m e nt

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Paradis said the federal government would no longer oppose the listing of chrysotile asbestos as a hazardous chemical in the Rotterdam Convention – a categorization that would impose restrictions on asbestos exports. Coulombe hopes to one day reopen the mine but says securing investment is tough in a world with “no sympathy for chrysotile.” Shirley Bishop, a spokesperson for Marois, said the government will invest money back into the region – potentially as much as the original $58 million promised by the Liberals – to diversify the economy and help affected workers find employment. – H.M.

Kinross CFO to resign Little more than two months after it replaced its CEO, Kinross announced that chief financial officer Paul Barry will be resigning from his role once a suitable replacement is found. Barry, who has held the CFO and executive

Courtesy of Mine Jeffrey Inc.

news | industry at a glance

The Jeffrey Mine in Asbestos, Quebec will shut down now that a $58-million loan from the previous Liberal government was cancelled by Parti Quebecois Premier Pauline Marois on October 1.

vice-president positions since March 2011, will be leaving to pursue other interests, according to a company statement. “Our aim is to complete our search and confirm an appropriate candidate as our new CFO as soon as possible,”

said Steve Mitchell, a company spokesperson, adding no timetable had been given to name Barry’s successor. In August, the Canadian-based gold mining company appointed J. Paul Rollinson as CEO, replacing Tye Burt, who led Kinross for seven years. – H.M.

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industry at a glance | news

The boundaries announced by Prime Minister Stephen Harper for Canada’s newest national park in the Northwest Territories strike a compromise between preservation and development, according to the NWT & Nunavut Chamber of Mines. The Naats’ihch’och National Park Reserve, designed to protect the upper South Nahanni River watershed in the western NWT, encompasses 4,850 square kilometres of wilderness inhabited by grizzly bears and woodland caribou. The region is also home to many highpotential mineral deposits, which include gold, zinc, lead, silver and tungsten. Through consultations, three boundary options were presented to the federal government, with Harper eventually selecting the least restrictive choice for industry. “The Chamber of Mines strongly supports the development of park boundaries based on the exclusion of resource-rich areas with significant mineral potential so that northerners and all Canadians can take full advantage of future economic opportunities,” said Pamela Strand, chamber president, in a statement. The Canadian Parks and Wilderness Society, a wilderness advocacy group, was – H.M. upset with Harper’s decision.

Baffinland project clears hurdle The Nunavut Impact Review Board (NIRB) gave Baffinland’s proposed $4billion Mary River iron ore project the green light in mid-September. The board passed its recommendation on to Aboriginal Affairs and Northern Development (AANDC) Minister John Duncan. Along with the ministers of fisheries and oceans, environment, transport and natural resources, Duncan will decide whether to allow the project to proceed to the regulatory stage. No timetable has been given for this decision, according to an AANDC spokesperson. NIRB’s approval of the company’s environmental and socio-economic

Courtesy of Parks Canada

New national park pleases local mining industry

Prime Minister Harper’s recent Naats’ihch’oh National Park Reserve boundary announcement was met with agreement from the mining industry.

impact assessment was the culmination of four years of public consultation. The decision was rendered in a 350plus page document that includes 184 terms and conditions, ranging from recommendations for increased and continued environmental monitoring, commitments to minimize the project’s impacts on caribou and other wildlife, and a cap of 242 shipping hauls per year. The project, where iron ore will be mined from an open pit at the northern tip of Baffin Island, will require the construction of a railroad to transport the crushed product to a deep-water port located 150 kilometres to the south. From there, the ore will be shipped year-round to Euro– H.M. pean markets.

Newfoundland institutes forge partnerships with Guyana Memorial University’s Marine Institute International and the College of the North Atlantic have signed agreements with the government of Guyana to develop training programs for the country’s mining and emerging offshore oil sectors. While Marine Institute International will focus on offshore oil

training, the College of the North Atlantic will bring expertise in the mining, and terrestrial oil and gas areas. Bill Chislett, Marine Institute International director, said he hopes the memorandum of understanding the institute signed with Guyana’s Ministry of Natural Resources will help maximize employment opportunities for residents of the Caribbean nation. If all goes well, said Chislett, “we would try to assist training institutions in-country to produce or develop training programs that can increasingly train Guyanese to fill the emerging jobs.” Similar training programs created during Newfoundland’s own offshore oil development have resulted in a 90-percent-Canadian workforce today, he added. The institute is currently in discussions with Guyana to identify gaps in the country’s training. Marine Institute International has conducted more than 200 projects and partnerships in 50 countries over the – H.M. last 25 years, Chislett said. November 2012 | 21

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Charting the Arctic seas Will increased nautical knowledge trigger development in Canada’s far north?

This summer, Canadian hydrographers took to Arctic waters in search of the remains of Sir John Franklin’s doomed 1845 expedition. And while they found little of the famed Northwest Passage wreck, the mission added more detailed knowledge to the nautical pathway some still hope will open up the north to shipping and industry. Using multi-beam sonar to measure the ocean’s depth and to create threedimensional pictures of the seabed, along with a combination of one-beam and sidescan sonar, the Canadian Hydrographic Service (CHS) mapped more than 400 square kilometres of the Alexandra and Victoria Straits, said Andrew Leyzack, CHS hydrographerin-charge. This new information should shave roughly seven hours of shipping time around the adjacent King William Island. But the area surveyed represents just a small fraction of Canada’s internal Arctic waters, which have long remained under-charted. “As of present, only one per cent of the Arctic has been surveyed to modern standards using multi-beam sonar,” Leyzack said, while 90 per cent of Arctic waters have large gaps in coverage and a high likelihood of undetected hazards. Leyzack explained that modern charting opens up known shipping corridors, making it safer for larger ships with deeper drafts to navigate, while also creating alternate shipping routes for vessels confronting adverse sea ice conditions. Without a dedicated vessel from which to perform its mapping, though, CHS hydrographers have had to piggyback onto coast guard and research vessels operating in the north when charting targeted areas. Rob Huebert, an associate professor of the political science department at the University of Calgary, said charting should become a primary, and not secondary, duty of northern marine opera22 | CIM Magazine | Vol. 7, No. 7

Courtesy of the Department of Fisheries and Oceans

By Herb Mathisen

The hydrographic survey launch vessel CSL Gannet heading back to the Canadian Coast Guard Icebreaker CCGS Sir Wilfrid Laurier

tions, adding the current government does not have a coordinated plan to chart the Arctic’s internal waterways. “Once you chart, people will come,” Huebert said, noting that added pressure from increased shipping traffic would spur northern infrastructure development in a “piecemeal” fashion. Better infrastructure, including desperately needed harbours, would get industry’s attention; resupply and repair work, he said, would be made cheaper. But Malcolm Lowings, principal and technical leader of Arctic and offshore oil and gas services with Golder Associates Ltd., said charting alone would not compel extractive companies to look north. “It’s something you would take into account,” he said, but added the potential resource – and how to bring it to market – would remain the primary consideration. “The idea of mapping every square kilometre of sea floor in the Canadian Arctic Islands to modern standard is not reasonable,” he pointed out. “There are places in the Canadian Arctic that will never be visited ever.” To date, CHS charting priorities have been determined based on consultations with the shipping industry, private sector, communities and local govern-

ments. The Nunavut government recently signed an agreement with CHS to chart the James Ross and Rae Straits. And though he said good maps might not be a primary draw for industry, Peter Frampton, the government of Nunavut’s senior petroleum resources advisor, said further charting would reduce risk for companies. He pointed to hundreds of potential – yet uncharted – harbours along the eastern coast of Baffin Island, which could be used as staging points for possible offshore oil projects in the Davis Strait or even as safe havens from sea ice for ships. “If you lower the risk, you lower the potential cost,” he said, adding that companies with more information can better plan their projects. Yet poor charting represents just one of the risks of arctic operations. Lowings points to the high operating costs of working in the north, which is rife with logistical, environmental, regulatory and land-use hurdles, all of which threaten resource investments. Despite this summer’s record sea ice melt and the region’s vast potential – the Sverdrup Basin alone is reported to contain some 45 trillion cubic feet of natural gas – large-scale development may remain unfeasible for some time. CIM

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Mining payments up Some provinces reap more rewards than others By Zoë Macintosh A recent Mining Association of Canada (MAC) report estimates Canada’s provincial and federal governments may have collected an extra $300 million in taxes from the sector in 2011 compared to 2010. Total payments reached a projected $9 billion in 2011. The rise occurred despite a reduced federal tax rate and reflects heightened productivity and commodity prices. The report, Revenues to Governments from the Canadian Mineral Sector 2002-2011, presents estimates for annual mineral-sector payments collected by Canadian governments through corporate and personal income taxes, and the aggregate of royalties and mining taxes unique to each province. Its calculations do not use data from 2011 tax returns, which will become publicly available in March 2013, but extrapolations from 2010 data guided by quarterly results in 2011. According to the report, estimates for the overall value of mineral production in 2011 show a post-recession record of $50.3 billion. That is a 21 per cent rise over 2010 levels, though the jump is smaller than the latter year’s sharp recovery from 2009. And though the tax rate was lower, other factors affecting industry had a much larger impact on payments to governments. Lucie Chouinard, a Quebec-based mining tax analyst with Deloitte, pointed out that the 2011 federal corporate tax rate cut deprived government coffers of just $27 million that year. The rate came down to 16.5 per cent from 18 per cent in 2010. “It was kind of a quiet year on the taxation front,” said MAC report author Neil McIlveen. “That particular reduction on the federal front was probably the biggest one around, and it also was not really a surprise. It was part of a phase-down announced in 2007 by [federal finance minister Jim] Flaherty.” The MAC report identifies the 2011 federal tax rate cut as the most significant policy change impacting payments federally, but does not focus on important tax changes within individual provinces. In Quebec, for example, recent changes counter the federal reduction. Mining duties rose by four per cent in the province over the last two years – a climb nearly mirroring the federal corporate tax rate’s descent of three per cent over the same period. Prior to 2010, the last time mining duties rose in the province was in 1994.

If other provinces make good on their 2012 budgets, the spike in provincial mining duties could become more widespread. The finance ministers of both Ontario and British Columbia have announced they will conduct reviews of the mining tax regimes in their provinces, according to Liam Fitzgerald, a Toronto-based Pricewaterhouse Coopers mining tax lawyer. The importance of provincial regulations should not be overlooked. “The mining duties [in Quebec] increase much more than the [federal] tax rate reduction,” said Chouinard. “The impact [of provincial hikes] is much bigger for mining corporations [than federal reductions]. Of the complaints I hear in the [general] population, I understand it’s not obvious that the mining duties have increased so much in Quebec. In fact, I think that in the population, they still have the perception that the mining companies don’t pay any taxes.” In her recent analysis of cash flows for a proposed Quebec mining project, Chouinard found that in relation to 2012 and future years, mining duties and income taxes in the province represented “nearly 50 per cent of the profit of the mine.” CIM

MOVING ON UP Meadow Bay Gold gets interim CEO Alexander Khutorsky was named interim CEO at Meadow Bay Gold Corp and became a member of the board, replacing Robert Dinning who decided to step down as CEO. Khutorsky was previously managing director of New York-based investment bank Dahlman Rose & Coll, LLC, working specifically in the metals and mining sectors.

November 2012 | 23

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All in at Minexpo Over 58,000 attend Las Vegas mining equipment tradeshow

Neal Young

By Ryan Bergen

Exhibit space was expanded 40 per cent for the 2012 edition of Minexpo.

Despite a cooling metals market and uninspiring economic forecasts, Minexpo in Las Vegas was an oasis of optimism for the global mining industry. This year’s event, the largest the National Mining Association has ever hosted, packed over 1,800 companies into 80,000 square metres of exhibit space, both inside and outside the Las Vegas Convention Center. Since 2008, when the event was last held, organizers expanded to a third exhibition hall, representing a 40 per cent growth of floor space.

With all that space, the onus was on exhibitors to go big. In July, around the time Caterpillar posted its best quarter ever, the company began the physical set up of what was its largest exhibit at the show to date. The industry giant showed off with more than two dozen pieces of surface and underground mining equipment, a theatre-sized screen and, wisely included, an information kiosque to help visitors navigate the 4,800-squaremetre exhibit. Caterpillar, with a series of acquisitions that has expanded its reach in surface and underground min-

AEMQ CONVENTION, BOOTH 31

efﬁgis.com ef ﬁgis.com I Formerly VIASAT VIASA AT T GeoTechnologies Te I T + 1 514 495-6500

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

ing, had plenty to showcase, as did other equipment heavyweights like Komatsu, Liebherr, Hitachi, Sandvik, Joy Global and Atlas Copco. “The total planning time for a show of this size is about 18 months,” said Richard Smith, director of product marketing and planning for Komatsu’s mining division. “The heavy planning starts in earnest about one year ahead of time.” And as the event is only held every four years, exhibitors must seize the opportunity to showcase new equipment, announce acquisitions or declare ambitious plans, as General Electric did with the formal rollout of its dedicated mining business unit. The company is making an aggressive move into mining with recent purchases, including Fairchild International, the manufacturer of underground mining equipment and vehicles. Uncertainty about the future did colour the event, however. During the show, Caterpillar announced more modest profit expectations for the next three years, which CEO Doug Oberhelman attributed to “modest global economic growth.” That sluggish growth was on the mind of Goodyear’s David Anckaert, leading up to the exhibition. “We weren’t quite sure how it would go,” said the company’s general manager for global off-the-road tires, on the second day of the show, “but there has been lots

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of activity.” In addition to a full schedule during the day, Anckaert explained people had booked times for meetings in the early morning, hours before the convention center opened its doors. Corey Poppe, marketing manager for Superior Industries, whose growing Minnesota-based company first exhibited at Minexpo four years ago, returned this year with a much bigger budget and greater expectations. “Our objective was to have 60 per cent more leads than 2008, and I believe we met that goal,” he said. “Everyone wants to be bullish,” observed Lee Laviolette, global lead for operational excellence with management consulting firm Accenture. A specialist in process and innovation performance, Laviolette participated in the technical program and offered case studies detailing how investments in equipment alone do not guarantee immediate returns. New technologies like those filling the halls, he pointed out, can require new skills of the workforce, which mine operators do not always anticipate. Interviewed after his presentation, Laviolette said the hard times that hit the industry following the previous Minexpo have sharpened operations’ focus on asset performance. “The challenge is getting the most out of the investment you make,” he said. That challenge was on the mind of mining systems and automation consultant Tim Skinner while walking the showroom floor. He set out to ask engineers for original equipment manufacturers questions like: “How does my customer find out if a shovel bucket is hanging, waiting for a truck, just by using the onboard data?” and, “How would we get that information?” Skinner, a long-time advocate for better access to data generated by equipment and systems for mine operators, is also an executive on the new CIM Global Mining Standards and Guidelines Committee. The organization, created to establish a common standard for data exchange between original equipment manufacturers (OEMs) and mine opera-

tors, held its first general meeting at the event. Skinner said he was pleased by the enthusiasm of committee members and encouraged by the progress that has been made since Minexpo 2008. “There seems to be more awareness and discussion of the importance and need to more easily access onboard

data,” said Skinner, who believes a lot has changed in the four years since the last Minexpo. “There seems to be a movement to provide greater capabilities to allow this. Four years ago, if you had brought this up with the OEMs, they would have looked at you funny.” CIM

GIVING BACK De Beers Canada golfs for Hay River De Beers Canada announced that it raised more than $60,000 for the Hay River Hospital Foundation and Hay River Junior Golf at its fifth annual Charity Classic Golf Tournament, held in the Northwest Territories last July. Since its launch in 2007, the event has helped the diamonds giant raise $200,000. “The amazing success of the De Beers Canada Charity Classic is due to the enthusiastic support and the generosity of our tournament partners,” said De Beers Canada COO Glen Koropchuck. “The tournament is about having fun with our business and community partners, and raising money for a great cause. Golf scores are secondary.” Workers at the company’s Snap Lake mine participated in a “Charity Classic Mini Putt,” helping raise $8,800 of the total. Around $26,500 will be used to purchase a medication dispensing system for Hay River Health and Social Services. The Dumas family sings The Canadian National Institute for the Blind (CNIB) dedicated “Dumas Rock” at Lake Joseph Centre (Lake Joe) to DUMAS ROCKS!, the team from Dumas Consulting Ltd. which competed and won $25,000 in Global TV’s Canada Sings. Located in Muskoka, Ontario, the Lake Joseph Centre offers vision rehabilitation and recreation for individuals who seek a safe and inclusive environment. Dumas executives decided to gift another $10,000 to the CNIB cause, bringing the total to $35,000. “What distinguishes Dumas employees is their big hearts and unwavering determination,” said Dumas CEO Burger Greeff. “The team gave countless hours of their time to practice and compete, while still keeping pace at full-time jobs, all to support a very worthy cause. We are very proud of our Canada Sings team, and for the great honour that CNIB has bestowed upon us with the dedication of the Dumas Rock.” Barrick Gold supports students Barrick Gold Corp. announced it will work together with Communities In Schools of Nevada (CISN), committing $1.2 million by 2016 to fund programming in two Nevada middle schools: Marvin M. Sedway Middle School in North Las Vegas and Adobe Middle School in Elko. Poverty affects students in both schools; 85 per cent of Sedway and 40 per cent of Adobe students currently live below the poverty line. This impacts their academic performance and may compel them to drop out of school. “The youth of Nevada are facing more challenges than ever, and we want to give them a better chance to succeed in school and graduate,” said Michael Brown, vice-president of corporate and external affairs at Barrick Gold.

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Dark clouds over Plan Nord PQ calls for revision of mining royalty regime By Alain Castonguay When Quebec’s Legislative Assembly was dissolved on August 1, the Charest government was unable to pass two significant legislative acts regarding resources, namely Bill-14 that would create a foundation for an innovative mining development model, and Bill 27, a bill to establish the corporation La Société du Plan Nord. Even the budget bill, which notably sought to modify the royalty regime for land-based oil extraction, failed to pass. This year’s election saw Martine Ouellet, current minister of natural resources, re-elected on the Parti Québecois (PQ) ticket in Vachon. Ouellet actively worked to block Bills 14 and 27. PQ candidates Lorraine Richard (René-Lévesque) and Luc Ferland (Ungava) were also re-elected. These two members of the national

assembly used the time allotted to them to delay the detailed study of bills in a parliamentary committee. Richard and Ferland, who have been very critical of Plan Nord, beat out the incumbent Quebec Liberal Party (PLQ) candidates in Fermont and Lebel-surQuévillon. On August 23, in Montreal, the Fédération des chambres de commerce du Québec used the election campaign as a chance to hold a debate on natural resources. Participants included Martine Ouellet, Raymond Bachand (PLQ, re-elected in Outremont) and Gérard Deltell (Coalition Avenir Québec, reelected in Chauveau). On this occasion, Ouellet emphasized her party’s platform, which she had been hawking on the campaign trail: • The PQ wants to establish royalties of five per cent on the gross value of

ore output, while increasing mining companies’ taxes on “supra-competitive profits.” Ouellet hammered home the oft-repeated argument that “only 10 out of 19 mining companies paid royalties in 2011.” She cited the example of the Lac Bloom iron mine operated by Cliffs Natural Resources in Côte-Nord, “which produced three million tonnes of iron ore without paying a single penny to the government.” The PQ royalties system would be based on a “hybrid model” like the one used in Australia. She added that 25 countries have already begun revising their royalty regimes on the heels of increases in metal prices in 2009. • Before granting any new mining leases, the PQ will ask operators for firm commitments on primary and

PLQ loses experienced MNAs The PLQ, now the official opposition party, lost several elected officials who were well-acquainted with all aspects of natural resource, mining, energy, and forestry development. Moreover, the PLQ was wiped off the map in Abitibi-Témiscamingue, Saguenay-LacSaint-Jean, and Gaspésie, and still has no MP in CôteNord. Clément Gignac, the Charest government’s minister of natural resources and wildlife (MRNF) and minister responsible for Plan Nord, was unsuccessful in seeking re-election in his Taschereau riding. His predecessor at MRNF, Nathalie Normandeau, who was at the centre of the pomp and circumstance surrounding the May 2011 inauguration of Plan Nord in Quebec City, left politics in September 2011. Another former MRNF minister and still a PLQ candidate, Pierre Corbeil, was not re-elected in the Abitibi-Est riding. MNA Daniel Bernard, a geologist and former

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

president of the Quebec Mineral Exploration Association, did not run in the Rouyn-Noranda-Témiscamingue riding, yet another electoral district lost by the PLQ. In the Dubuc riding, Serge Simard, former vice-minister for natural resources and wildlife, was also unseated by a PQ candidate. In this case, it was the reeve of the regional county municipality of Fjord-du-Saguenay, Jean-Marie Claveau, who became the new MP for Dubuc. Claveau sought to collect mining royalties directly from Ressources d’Arianne Inc. for its phosphorus mine project in Lac à Paul. Former PLQ minister of finance Raymond Bachand rejected that request, stating that natural resources “belong to all Quebecers” and not simply to the residents of one MRC (Municipalité Régionale de Comté), and that the royalty system is in need of revision. By Alain Castonguay

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for 20 years to curb exploration or development. The PQ will not make changes in this regard. • The PQ government will require a hearing before Quebec’s environmental public consultation agency BAPE (Bureau d’audiences publiques sur l’environnement) before issuance of a mining lease anywhere in Quebec. This was the stated intention of the Liberal government as well. • The conservation plan, which includes provisions for protecting 50 per cent of Plan Nord territory, will be more carefully defined in order to avoid creating “rollaway parks” with boundaries that change as knowledge of the area’s resources evolves. The primary criterion will be the level of social acceptance in affected communities once protected areas are established.

secondary processing of extracted ore or metals in the province. Ouellet harshly criticized Stornoway’s decision not to process diamonds from the Renard mine in Quebec. • At the same time, Premier Pauline Marois has been floating the idea of tax credits for miners that transform their products in the province. • Operators will have to pick up the tab for all infrastructure projects (roads, harbour facilities, railways, energy) related to Plan Nord mines. New mines will not automatically benefit from Rate L, the preferential rate that Hydro-Québec offers major customers in the industrial sector. • The Charest government recently granted municipalities and regional county municipalities the right to exclude urban zones and holiday destination lands from exploration

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• The PQ government will maintain a moratorium on development of shale gas until testing of hydraulic fracking techniques is completed. Ouellet also denounced the agreement between Hydro-Québec and oil exploration companies concerning Anticosti Island. The PQ hopes to reduce Quebec’s oil dependence through policies to electrify public transportation, while promoting renewable energy sources. These policies will be subject to public consultation. • The PQ will reinforce government intervention in projects involving development of resources on Plan Nord lands. In its platform, the Marois government adds that it intends to “foster full involvement of First Nations, the Inuit, and other northern peoples in the region’s development projects.” CIM Translated by Mark Stout

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Une ombre plane sur le Plan Nord Le Parti québécois appelle à une révision du régime des redevances minières Par Alain Castonguay Le résultat des élections provinciales sonne-t-il le glas du Plan Nord, si cher à l’ex-premier ministre, Jean Charest? Si l’on se fie au programme électoral du Parti québécois (PQ) et aux propos tenus par ses députés et porte-parole alors qu’ils étaient dans l’opposition, des nuages noirs pointent dans le ciel boréal. Même si le gouvernement du PQ est minoritaire, ses intentions concernant l’exploitation des ressources naturelles en général sont claires. Et les rangs décimés de l’opposition rendront difficile toute critique envers sa gestion du territoire et des ressources. À la dissolution de l’Assemblée nationale le 1er août dernier, le gouvernement Charest n’avait pu faire adopter deux

textes législatifs importants concernant les ressources : les projets de loi no 14, sur le nouveau régime minier, et no 27, créant la Société du Plan Nord. Même le projet de loi budgétaire qui modifiait notamment le régime de redevances visant le pétrole extrait en milieu terrestre n’a pas été adopté. Martine Ouellet, porte-parole de l’opposition officielle en matière de mines, de gaz de schiste et de gaz à effet de serre, a été réélue sous la bannière du PQ à Vachon. Mme Ouellet a activement contribué à bloquer l’adoption des projets de loi no14 et 27 en commission parlementaire. Les candidats péquistes Lorraine Richard (René-Lévesque) et Luc Ferland (Ungava) ont aussi été

réélus. Les deux députés ont mis à profit le temps qui leur a été imparti pour retarder l’étude détaillée des projets de loi en commission parlementaire. Mme Richard et M. Ferland, qui se sont montrés très critiques envers le Plan Nord, l’ont emporté sur les candidats du Parti libéral du Québec (PLQ) occupant les sièges de maires à Fermont et à Lebelsur-Quévillon. Le 23 août dernier à Montréal, la Fédération des chambres de commerce du Québec (FCCQ) a profité de la campagne électorale pour tenir un débat sur les ressources naturelles. Y participaient Martine Ouellet, Raymond Bachand (réélu pour le PLQ à Outremont) et Gérard Deltell (réélu à Chauveau pour la

Le PLQ a perdu plusieurs députés expérimentés Le Parti libéral du Québec (PLQ), devenu l’opposition officielle, a perdu plusieurs élus qui étaient bien au fait de tous les aspects touchant l’exploitation des ressources naturelles, des mines à l’énergie en passant par les forêts. Le PLQ a d’ailleurs été rayé de la carte électorale en Abitibi-Témiscamingue, au Saguenay-LacSaint-Jean et en Gaspésie, et n’a toujours pas de député en Côte-Nord. Clément Gignac, ministre des Ressources naturelles et de la Faune (MRNF) et ministre responsable du Plan Nord au sein du gouvernement Charest, n’a pu se faire élire dans la circonscription de Taschereau où il se présentait. Sa prédécesseure au MRNF, Nathalie Normandeau, a quitté la vie politique en septembre 2011. C’est elle qui avait permis de faire aboutir le Plan Nord, inauguré en grande pompe à Québec en mai 2011. Jean D’Amour, adjoint parlementaire du ministre des Ressources naturelles, et Sam Hamad, ancien titulaire du MRNF de 2003 à 2005, ont été réélus dans leur circonscription respective. Pierre Paradis, qui présidait la commission parlementaire permanente de l’Assemblée nationale sur l’énergie, les ressources et le territoire, a été réélu dans le comté d’Orford.

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Un autre ancien titulaire du MRNF et candidat du PLQ, Pierre Corbeil, n’a pas été réélu dans la circonscription d’Abitibi-Est. Le député Daniel Bernard, géologue et ancien directeur général de l’Association de l’exploration minière du Québec (AEMQ), ne s’est pas représenté dans la circonscription de RouynNoranda-Témiscamingue, autre comté perdu pour le PLQ. L’ex-ministre délégué aux Ressources naturelles et à la Faune, Serge Simard, a lui aussi été délogé de son siège par le candidat du PQ dans la circonscription de Dubuc. Dans ce cas-ci, c’est le préfet de la MRC du Fjorddu-Saguenay, Jean-Marie Claveau, qui est devenu le nouveau député de Dubuc. M. Claveau réclamait des redevances minières directement à Ressources d’Arianne pour son projet de mine de phosphore du Lac à Paul. Le gouvernement Charest a déjà refusé cette demande en déclarant, par l’entremise de l’ex-ministre des Finances, Raymond Bachand, que les ressources naturelles « sont la propriété de tous les Québécois » et non pas seulement celle des habitants d’une MRC. Aussi faut-il revoir le système de redevances. Par Alain Castonguay

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Coalition Avenir Québec). Le débat a été diffusé en ligne par IDNR-TV sur YouTube dans quatre vidéos d’une durée totale d’environ 90 minutes. À cette occasion, Mme Ouellet n’a pas manqué de réitérer ce qu’elle déclare depuis des mois en commission parlementaire et qui est inscrit dans la plateforme électorale de son parti, à savoir que : • Le PQ veut établir une redevance de 5 % sur la valeur brute de production de minerais, et augmenter l’impôt des minières sur les profits jugés « excédentaires » (ou « surprofits »). Mme Ouellet a insisté sur l’argument maintes fois évoqué concernant le fait que « seules 10 compagnies minières sur 19 ont versé des redevances en 2011 ». Elle a notamment évoqué la mine de fer du lac Bloom exploitée par Cliffs en Côte-Nord « qui a produit 3 millions de tonnes de minerai de fer sans rien verser à l’État ». Le système de redevances serait inspiré du « modèle hybride australien ». Elle ajoute que 25 pays ont déjà entrepris de réviser leur régime de redevances dans la foulée de l’augmentation du prix des métaux depuis 2009 ; • Avant d’accorder tout nouveau bail minier, le PQ demandera des engagements fermes de la part des exploitants en matière de transformation primaire et secondaire du minerai ou du métal extrait. La députée Ouellet s’est montrée très critique à l’égard de la décision de Stornoway de ne pas transformer le diamant de la mine Renard au Québec ; • En même temps, la première ministre, Pauline Marois, a lancé l’idée des crédits d’impôt pour les mineurs qui transforment leurs produits dans la province ; • Tous les projets d’infrastructure (routière, portuaire, ferroviaire, énergétique) associés aux mines du Plan Nord seront aux frais des exploitants miniers. Le gouvernement n’accordera pas automatiquement aux nouvelles mines le tarif L proposé par Hydro-Québec aux grands clients du secteur industriel ;

• Le gouvernement Charest a accordé aux municipalités et aux municipalités régionales de comté (MRC) le droit d’exclure pour 20 ans des zones en milieu urbain ou territoires de villégiature, afin d’y restreindre toute forme d’exploration et d’exploitation des ressources. Le PQ maintiendra ce pouvoir accordé au monde municipal, tout en niant qu’il s’agit là d’un droit de veto ; • Une audience du BAPE (Bureau d’audiences publiques sur l’environnement) sera requise avant l’émission du bail minier partout au Québec sous le gouvernement du PQ, ce que prévoyait également le gouvernement libéral ; • Le plan de conservation qui prévoit de protéger 50 % du Plan Nord sera mieux défini afin d’éviter la création de « parcs à roulettes » dont on change les limites en fonction de l’évolution des connaissances sur les ressources du territoire. Le premier critère sera l’acceptabilité sociale des

communautés lors de la création des aires protégées ; • Le gouvernement du PQ maintiendra un moratoire sur l’exploitation des gaz de schiste tant que la technique de fracturation hydraulique n’aura pas été éprouvée. Martine Ouellet dénonce l’entente entre Hydro-Québec et les sociétés d’exploration pétrolière concernant l’île d’Anticosti. Le PQ souhaite réduire la dépendance du Québec au pétrole par une politique sur l’électrification des transports, en plus de promouvoir les énergies renouvelables. Cette politique fera l’objet d’une consultation publique. Le nouveau gouvernement Marois renforcera l’intervention de l’État dans les projets touchant l’exploitation des ressources sur le territoire du Plan Nord. Dans sa plateforme (engagement no 34), il ajoute qu’il entend « favoriser la pleine participation des Premières Nations, des Inuits et des populations nordiques aux projets de développement de la région ». ICM

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

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Will Canada stay the course as a free trader? BY PIERRE GRATTON

n Canada, resource nationalism has typically been framed this concern may be exaggerated but is perhaps not as something that happens elsewhere. But BHP Billiton’s entirely uncalled for. 2010 blocked bid for PotashCorp shook that perception. A recent report by the Conference Board of Canada claims Now, with China National Offshore Oil Company’s (CNOOC) that “the failure of BHP Billiton’s acquisition of the Potash $15.1-billion bid for Calgary-based Nexen Inc. at the centre Corporation of Saskatchewan clearly shows that significant stage of discussion, many are speculating whether similar pro- investments [in Canada] can be easily scuttled through shorttectionist measures will prevail in this and future foreign take- term political calculations.” Perhaps when the business comover bids. munity considers the CNOOC/Nexen deal, the ghost of BHP To determine the validity of concerns over resource nation- Billiton past rears its head. alism in Canada, we need to assess our trade, foreign direct A key link between FDI in Canada and the federal governinvestment (FDI) and taxation regimes for competitiveness ment’s aggressive trade expansion is that both require an and consistency. This will provide a clearer picture of how “open for business” attitude, reputation and track record. open Canada is to doing business with the rest of the world. Given projected trends in the global economy, the mainteBy and large, Canada’s nance of this reputation backed resource taxation regime is very by the establishment of new “Perhaps when the business stable. A mixture of income and markets and trading partners – community considers the production taxes, with royalties particularly in Asia – is a high CNOOC/Nexen deal, the ghost of at the federal and provincial levpriority of the federal governBHP Billiton past rears its head.” els, Canada’s taxation policy is ment. Inconsistencies between tailored to promote resource the government’s stated goals development. Tax credits, Canada’s “flow through share” and some of its actions – such as what occurred during the mechanism, accelerated deductions for exploration, develop- BHP bid – could have unintended consequences that extend ment or equipment purchase and a federal corporate income well beyond the CNOOC/Nexen Inc. transaction. tax rate of 15 per cent (the lowest rate in the G7), all conBetween 2000 and 2010, China saw massive increases in tribute to the competitiveness and stability of Canada’s the production of aluminum (442 per cent), cement (220 per resource taxation regime. cent) and steel (396 per cent). Simultaneously, the value of What is more, Canada is currently embarking on the most China’s imports of certain minerals increased significantly: aggressive trade agenda in its history. Twice as many free trade iron ore by 42.5 times, thermal coal by 248 times and copper agreements are in negotiation (or have been concluded but by 16.2 times. China is now responsible for consuming not yet implemented) as are currently in force. Further, there approximately 40 per cent of the world’s base metals, and its are 24 active Foreign Investment Protection Agreements and demand outstrips its supply by a wide margin – a trend that another 19 in negotiation. The last World Trade Organization is likely to continue going forward. report on Canada’s trade policy praises our strong economic In the CNOOC/Nexen deal, the stakes are even higher performance in weathering the global recession without because of the value of the takeover (it would be China’s resorting to protectionist trade measures. largest overseas energy acquisition) and the strategic imporFDI in Canada must successfully navigate the Investment tance of China as a trading partner to Canada going forward. Canada Act (ICA). Under the ICA, the minister of industry When applying the net benefit to Canada, Ottawa should can block any transaction valued at $299 million and above if carefully consider what is at stake. Given Canada’s global the deal does not provide a demonstrable “net benefit” to the leadership position as a mining powerhouse, the application country, based on factors such as output and employment lev- of the “net benefit” to the Canada provision should include els. Since the ICA was implemented in 1985, Industry Canada the longer term view of a positive trading relationship with has reviewed over 1,600 foreign acquisitions worth almost the world’s largest consumer of minerals. It should also con$600 billion, and has approved all but two. sider the downside risk of Given the above, it seems concerns about Canada exert- blocking a third deal while ing control over the extractive process by constraining aggressively pursuing new profits are unfounded. With respect to blocking FDI, the trading partners. CIM approval numbers dwarf the blockages. However, since both blockages occurred under the current government, Pierre Gratton is president and CEO of The Mining Association of Canada

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EYE ON BUSINESS

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Critical financial considerations in planning and negotiating an IBA BY HARVEY SANDS

egotiating a workable and enforceable Impact and Benefit Agreement (IBA) is a key step in bringing a mining project to production. However, many developers are unaware of and unprepared for the processes and challenges involved. The financial participation and economic benefit chapters of an IBA are often the most sensitive and taxing. These chapters include financial participation in production by the Aboriginal group, contracting opportunities and employment preference provisions.

First steps to a successful IBA Many Aboriginal groups do not have the resources to negotiate a comprehensive IBA or to bear the costs of participating in long and complex negotiations. The Aboriginal party also typically requires financial, legal and technical advisors, which only increases overhead. The developer is usually asked to reimburse a portion of the costs incurred in negotiating and executing the IBA. This funding allows the Aboriginal party to engage necessary experts in areas such as environmental impact studies so it can understand and support the project during the environmental permitting process. The developer and the Aboriginal party should agree on how to govern the budget and finance the IBA process in advance. Furthermore, the developer should prohibit the funding it donates from being used in any future litigation that may occur between the Aboriginal party and itself. The developer should raise awareness of the project’s benefits in affected communities to align the parties’ interests and maximize collaboration early in the process. This will allow for timely implementation and development of employment and training programs, and will allow Aboriginal businesses to bid on supply contracts for the project.

Share information The developer’s ongoing provision of all relevant information, including current resource and reserve estimates, is a major factor in the quality and efficiency of the IBA negotiation process. This information is usually highly confidential and must be subject to strict non-disclosure provisions. Appropriate policies and procedures dealing with public company information must be recognized and adhered to by all parties.

Be prepared to make financial participation provisions The developer should be aware of current national standards for Aboriginal financial participation. It is important to review the economies and realities of the mining industry and

its inherent risks with the Aboriginal party. These include the capital intensive nature and the volatility of commodity prices, and the capital costs forecasted to make current operating decisions. The developer must acknowledge that Aboriginal groups are now seeking true financial participation, in which they share the risks and returns of the project to a certain extent. All parties must agree on mutually fair and equitable participation provisions that recognize the value of the project as well as the risks the developer is taking on. The developer should be prepared to initially discuss participation arrangements based on the project’s estimated net cash flow, as opposed to revenuebased participation. The latter fails to fully recognize the construction, financial, and operational risks of the project, as well as the developer’s requirement for capital expenditure recovery and repayment of related debt as an absolute priority, along with the Internal Rate of Return hurdle.

Tax considerations Planning for the tax consequences of an IBA is a major area that is often overlooked. The developer wants to maximize project returns by ensuring that benefits provided to the Aboriginal parties qualify as deductions in income and/or mining duties. In order to secure maximum deductibility, all payments must be identified and characterized appropriately. The developer should pursue agreements to ensure support from the Aboriginal party that payments will be treated as deductions and also support limitations on government or similar Aboriginal authorities to increase project taxation. Similarly, the Aboriginal party can be assisted in minimizing any adverse tax consequences. The goal is to maximize economic returns on an after-tax basis for all parties. Planning the IBA process, especially the financial participation and the equally important and necessary employment and contracting benefit provisions, is essential for controlling negotiation costs, maximizing Aboriginal collaboration and meeting project phase scheduling milestones, all of which are critical to the realization of the project. An IBA is best achieved and established when Aboriginal interests become ongoing and meaningful project proponents, and not opponents, in all critical community support, environmental impact and other regulatory matters. CIM

Harvey Sands is a partner at RSM Richter. His practice includes representation of and counsel to Aboriginal and First Nations groups in IBAs, as well as in business investment negotiations. Regularly invited as a speaker at conferences, Harvey has lectured extensively on various Aboriginal advisory and taxation matters, real estate and business advisory topics in Quebec, Nunavut, Ontario, and Newfoundland and Labrador.

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S TA N D A R D S

CSA Staff Notice 43-307 provides important guidance on disclosure of PEAs BY GREG GOSSON

SA Staff Notice 43-307 Mining Technical Reports â&#x20AC;&#x201C; Preliminary Assessments was published on August 16, 2012 to provide additional guidance on Preliminary Economic Assessment (PEA) disclosure standards. Since the new NI 43-101 rules took effect in June 2011, a number of mining companies were required to clarify or retract their PEA disclosure because CSA staff considered that they did not meet the new definition of a PEA, or were blurring the boundaries between the different types of mining studies. Of particular concern was that the new PEA allowance was being used as a backdoor method to include Inferred Mineral Resources in a Preliminary Feasibility Study (PFS) or a Feasibility Study (FS). A significant change included in the June 30, 2011 revisions to NI 43-101 was a new definition for a PEA. This def-

inition removed the restriction that such scoping studies could only be disclosed if they were undertaken at an early stage of project evaluation prior to the completion of a PFS. It also allowed a mining company to re-scope an advanced-stage project, based on either a significant change in new information, or on an alternative mining or processing scenario. Importantly, the re-scoped project could include Inferred Mineral Resources in both the production schedules and financial analysis, as long as appropriate cautionary language and other conditions, such as the basis for the PEA and the assumptions made by the Qualified Person, were met within the disclosure. However, it is important to keep in mind the definition explicitly states that PEAs are not a PFS or an FS. In my opinion, some of the key takeaways from the notice are:

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columns CSA staff point out that a PEA can only demonstrate the potential viability of mineral resources and cannot be used to support mineral reserves. Only a PFS or an FS, which are more comprehensive studies, are sufficient to demonstrate both the technical and economic viability of a mineral project and to support mineral reserve declaration. Therefore, an issuer should not imply that a PEA has demonstrated the economic viability of a mineral project, or refer to mineral resources as “ore.” Do not state that some, or all, of the components of the PEA are done at the level of a PFS, as it blurs the boundary between these different types of mining studies. If some of the technical studies supporting a PEA are performed to a higher level of detail (geotechnical or environmental baseline studies, for example) then it is appropriate to identify that information as being sufficient to support future, more advanced mining studies. CSA staff cautioned that the use of a PEA to justify going directly to an FS or a production decision could be viewed as treating the PEA as if it were a PFS or an FS. Companies considering this course of action should clearly indicate in their disclosure why they are bypassing the industry-standard practice – progression of a mineral project through mining studies – and discuss the risks incurred by doing this. CSA staff may challenge a PEA completed concurrently with or immediately after a PFS or an FS, if it includes Inferred Mineral Resources; this may be regarded as a way to avoid restrictions on the use of Inferred Mineral Resources in the production schedules or financial analysis in a PFS or in an FS. This is particularly the case if the PEA and PFS or FS have no significant differences in mine design or throughput rate. A re-scoped, advanced stage project done at a PEA level should have significantly different mining rates, mining or processing methods, changes to infrastructure, or the inclusion of a significant new discovery in the mine plan. CSA staff can use the requirements for “a reasonable basis for forward-looking information,” stated under NI 51-102 Continuous Disclosure Obligations, to challenge assumptions in a PEA that appear overly optimistic or aggressive. Companies may be required to provide additional information supporting those assumptions or be required to revise the PEA using more reasonable assumptions (e.g. metal prices, mining costs and metal recoveries).

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CSA Staff Notice 43-307 should be reviewed in its entirety by any company planning or completing a PEA. CIM Greg Gosson, PhD, P.Geo. is the technical director of Geology & Compliance for AMEC Americas Limited. He is a member of the CIM Standing Committee on Mineral Reserve and Mineral Resource Definitions, and a member of CSA Mining Technical Advisory and Monitoring Committee, which is an industry advisory committee on NI 43-101.

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HR OUTLOOK

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Inclusion and diversity in mining: steps from dialogue to action BY MELANIE STURK

s the director of attraction, retention and transition at the Mining Industry Human Resources Council and a member of the Women in Mining Canada Board of Directors for 2012, I have had the opportunity to be part of many interesting, forward-thinking discussions and initiatives related to diversity in Canada’s mining industry and the barriers that keep our sector from being inclusive. Based on the conversations I have taken part in over the last five years, there is a significant desire on the part of human resources departments to make change. Since June 2011, I have been working with eight companies on developing, implementing and measuring diversity and inclusion plans to literally change the faces of mining at companies and on sites. The Take Action for Diversity Network, an organization composed of some of Canada’s top mining employers, including Vale, De Beers Canada, Noront Resources, BHP Billiton, Cameco, Iron Ore Company of Canada, Iamgold and Teck Resources Ltd., is committed to increasing engagement of women, youth and Aboriginal peoples in the industry. Over the past year, these companies have committed to implementing creative and effective actions to increase diversity within their workforces. A complete report on this project will be available at www.mihr.ca in spring 2013, but there are already some good examples of creative solutions that have emerged from the network’s efforts. One company brought high school girls and their teachers to a local mine site to expose them to the environment and to help

MOVING ON UP Dushnisky gets promoted Kelvin Dushnisky was promoted to the position of senior executive vice-president at Barrick Gold Corp. In this role, Dushnisky will assume oversight responsibility for Barrick Energy, the firm’s oil and gas enterprise, while continuing to manage the parent company’s government relations, project permitting and approvals, corporate responsibility, investor relations and communications. “This appointment reflects the strategic and growing importance of Kelvin’s role in managing a diverse set of increasingly complex issues facing Barrick and the global mining industry,” said Jamie Sokalsky, president and CEO at Barrick. “Kelvin has collaborated closely with me over the past decade as a key member of the company’s management team and has more than 25 years of experience in broad-ranging roles across the industry.” Dushnisky has been with Barrick since 2002.

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change perceptions. A post-visit questionnaire indicated the visitors’ perceptions had changed for the positive. This kind of work breaks down the unrealistic perceptions youth may have about the industry before the stereotypes they may have been exposed to become fixed in their minds. Another company has reviewed its advancement program to identify and eliminate any systemic barriers to progression for Aboriginal peoples and other groups. For instance, expecting employees to self-promote for advancement opportunities can be culturally inapt. Ensuring appropriate role models and mentorship can encourage advancement of under-represented groups. A third company has identified high-performing Aboriginal employees and engaged them in a career and succession planning process with a consultant to help these individuals advance within the company. This investment in their employees’ futures will provide inspiration to other Aboriginal employees.

What makes the difference? Leading change is not easy. Human resources departments are often required to be reactive and put out fires, so even with the noblest intentions, diversity and inclusion initiatives are put on the back burner. What makes the difference? There are three things: (1) ensuring true commitment to diversity and inclusion from the company’s decision-makers, not simply providing a feel-good statement in the corporate brochure; (2) allocating a team to the important task of diversity and inclusion, where results are tied to each member’s performance plan and bonus structure; and (3) resourcing a solid, yet flexible, diversity and inclusion plan based on the realities of the communities in which the company operates, with education, labour and community partners and strict timelines. It is time to get creative about breaking through barriers that hinder the sector’s ability to attract, recruit, advance and retain under-represented demographic groups. In a sector with such proven problem-solving skills, technology, experience and intelligence, surely we can come up with solutions to improve public perception, to make working in mining more compatible with family life (with flexible schedules, work/life balance) and to improve access to education and training in remote areas for those interested in mining careers. CIM

Melanie Sturk is the director of attraction, retention, and transition at the Mining Industry Human Resources Council (MiHR), the national HR council for Canada’s minerals and metals industry. MiHR contributes to the strength, competiveness and sustainability of the mining industry by collaborating with all communities of interest in the development and implementation of HR solutions. Melanie is responsible for the initiatives that encourage new workers, particularly those from under-represented groups, to engage in mining careers that support the industry by enhancing workplace diversity.

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ENERGY

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Efficient comminution strategies cut costs and energy consumption BY ELIZABETH LEWIS-GRAY

omminution is the single biggest electricity consumer on the mine site. It is both a major capital cost and a bottleneck for project development. In remote locations, supplying the required power for comminution means building major infrastructure in the form of power lines, pipelines and roads. More than half of the total energy used in the mining industry is for either crushing (18 per cent) or grinding (35 per cent). Grinding mills consume only five per cent of energy for reducing ore particle size; the remaining energy is wasted as heat and noise, and in destroying grinding media. This is hardly the most efficient use of what amounts to four per cent of all electricity consumed worldwide. So can we do anything about it? Yes. There is plenty of room for improvement, and even incremental upgrades bring big benefits. By optimizing just three of their milling circuits, for instance, Barrick is saving 60,000 megawatt hours of power, or $5.2 million, each year. Even larger gains will be made by looking at what, â&#x20AC;&#x153;If how and why we comminute with fresh eyes. If there is no mineral in a rock, why waste energy breaking it? The following strategies may help companies developing projects in remote locations build smaller, less energy-intensive plants that require less infrastructure and are more efficient.

Strategies for eco-efficient comminution In many ore bodies, gangue surrounding valuable minerals are concentrated on mineral boundaries, so coarse material is often barren. New technologies and advanced designs have made coarse mineral separation more effective and efficient; these include optical and X-ray sorting, continuous gravity concentration and magnetic separation. The advantages of adopting new technologies extend beyond energy savings: one recent case study predicted a three per cent recovery increase on top of a 60 per cent energy consumption drop. Reduced operating costs also allow processing of lower grades, thus further increasing the recoverable resource and total project value. If you are looking to reduce energy consumption during comminution, here are some features to look for in technologies you choose:

there is no mineral in a rock,

why waste energy breaking it?â&#x20AC;? Smart blasting: improved explosives and blast patterns to produce a finer, more consistent process feed, and a better delineation between ore and waste.

Advanced mine modelling: The mine model can be extended to show more than grade and to predict more than mining rates and costs. By including geometallurgical parameters, such as metal content, haul costs, recoverable grade, grinding index and liberation size, we can calculate the cost and the reward of processing, stockpiling or rejecting any parcel of ore. Different mine plans and cut-off grades can be tested to determine which overall strategy maximizes the economic return for the project,while minimizing energy use and the amount of infrastructure required.

Coarse flotation and continuous gravity separation: coarser grind size is made possible by advances to flotation and separation processes.

Smart flowsheets â&#x20AC;&#x201C; rejecting barren material before you grind it: Traditional flowsheets reduce the entire ore to the liberation size of the valuable mineral in one energy-intensive stream, while smart flowsheets concentrate on removing non-valuable material from the stream before the final size is reached. A smart flowsheet considers additional phases: pre-concentration, which targets valuable materials for separate treatment; gangue rejection, which targets barren material for removal; and pebble sorting, which removes coarse, hard-to-mill material.

More crushing, less grinding: a finer crush allows the use of more energy-efficient milling systems, as described above. CIM

New crushing and grinding technologies: high-pressure grinding rolls, vertical shaft impactors and other technologies yield finer crush sizes, liberating minerals along grain boundaries and improving the effectiveness of separation techniques. The finer crush sizes allow for the use of more energy-efficient mills, like stirred mills, Isa mills and Plasma mills downstream.

To learn more about how CEEC promotes new comminution strategies, visit www.ceecthefuture.org. Elizabeth Lewis-Gray is the chair of the Coalition for Eco Efficient Comminution (CEEC) and co-founder of Gekko Systems. CEEC is a not-for-profit entity established by industry to promote the sharing of ideas and research with the objective of facilitating the move to a more energy-efficient, economically rewarding future.

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SAFETY

columns

Are we underestimating risk? BY IAIN ROSS

believe that in underground mining, there is a tendency to underestimate how often conditions that could lead to a multiple fatality event occur. If these events – known as major hazards – are seen as rare, they probably do not get the attention they deserve. While the statistical approach to safety is a fundamentally sound one and has been used to great effect by both the nuclear and oil and gas industries, both sectors have experienced significant catastrophes since 2010: the Deepwater Horizon oil rig spill in the Gulf of Mexico and the Fukushima nuclear facility incident in Japan. But the truth is, any system is only as good as the data it has to work with and the judgment of the people using that data. If the databases today’s engineers use to make decisions are incomplete, then the possibility of underestimating the potential of a major hazard is very real. In an underground context, a major hazard normally results from incidents like inrush or engulfment, a massive collapse causing either an air blast or entrapment of workers, or a gas or dust explosion. Through my research and experience, I see possible flaws in the commonly used risk management systems that explain why the industry has seen significant improvements in safety overall, and yet continues to see disasters which claim multiple lives. A recent analysis indicated that only two multiple-fatality air blast events in the underground, hard rock arena were reported over the last hundred years. When I read that, my thoughts went to an incident I encountered in the 1980s. I had just seen the destructive power of an air blast and was blown away. At that stage, I had been working in underground mining for about 10 years and had heard the term ‘air blast’ but had not really understood its potential to cause a major hazard. After witnessing the aftermath of the incident, I discussed my impressions with some old hands who said: “This one was nothing – you should have been here when the B4 collapsed, now that was an air blast!” One of them described the destruction, detailing how an entire locomotive and ore cars had been blown off the tracks. I had never even heard of that incident before. The air blast in the B4 had occurred on a Sunday, when no one was at work in the mine. It did not appear in any reports because no one was killed or injured. Had it occurred 24 hours later, there could have been tens or hundreds of people killed. Reflecting on these events made me realize that the mining industry’s database of serious incidents is understated. I am not suggesting this is a cover-up; it is simply an outcome based on the sort of people we are. Mining engineers tend to be action-orientated people who make decisions readily. We

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tend not to document those decisions, as there is never time to stop for paperwork before the next urgent issue arises. I believe that improving the situation requires a serious commitment from management. Behavioural lapses – an individual taking shortcuts or not following the safety systems in place – can result in a single fatality. However, a systemic failure – where management has not put a sufficiently robust safety system in place – can result in multiple fatalities. It is management’s responsibility, with input from those on the ground, to both create and maintain safe systems. I suggest a conservative approach when dealing with risk assessments. The frequency of major hazards appears statistically low, but rather than assume this means that conditions that lead to major hazards need not be mitigated, it is better to think that these conditions are bound to happen and to investigate what real precautions and mitigations could be appropriate. In short, management and workers must see the real probability of major hazards, and invest the money and manpower necessary to avoid conditions that could lead to one. CIM Iain Ross is a mining engineer with over 30 years of underground experience, about half of which has been spent in the block/panel caving environment. He has worked in various commodities including gold, diamonds and copper in South Africa, Namibia, the United States and Australia. He is currently chief advisor, cave engineering with Rio Tinto.

MOVING ON UP Burns becomes Goldcorp COO Goldcorp Inc. named George Burns executive vice-president and COO. He replaced Steve Reid, who left the company to pursue other interests. Burns has held various management roles within Goldcorp since 2007 and has more than 30 years of mining experience. He recently managed the next phase of ramp-up at the company’s flagship Peñasquito operation in Zacatecas, Mexico. “The depth and breadth of George’s industry experience, as well as his roles overseeing many of Goldcorp’s largest mines and projects, make him the ideal person to lead our operating team,” said Chuck Jeannes, Goldcorp president and CEO. “His appointment is also a testament to the strength of our organization in developing the future leaders of the company internally. I look forward to working closely with him and the rest of our leadership team to deliver steady, low-cost production from our existing mines and to execute our next phase of growth.”

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TECHNOLOGY by Alain Castonguay

Orbite launching into alumina market Courtesy of Orbite Aluminae Inc.

Acid process yields high-purity product and no red mud

Orbite Aluminae Inc.’s processing plant is under construction near Grand-Vallée, Quebec, and is slated for completion by the end of 2012.

tion. The company hopes to have the capacity to produce one to three tonnes of high-purity alumina (HPA) per day by the end of 2012, and five tonnes per day by 2013. Once high-purity alumina production is generating revenue, the company will build a 7,000tonne-per-day smelting grade alumina facility in order to achieve full production. In late June, the company announced the signing of a memorandum of understanding with Indian aluminum giant Nalco, the third largest aluminum producer in the world. Nalco plans to evaluate the use of Orbite’s technology to process both its ore and red mud. If all goes well for Orbite, Nalco could be a big help when it comes time to finance the smelting grade alumina facility.

Argillite requires new process rbite Aluminae Inc. has big ambitions for its argillite deposit, located near Grande-Vallée, in Gaspésie, Quebec. Besides extracting and processing alumina, Orbite plans to exploit the site’s potential for other metals and rare earth elements. And the technology Orbite has developed promises an alternative that avoids the toxic red mud problem, which has been a thorn in the side of the aluminum industry for decades. In fact, Orbite has the technology to treat red mud as well. Since the 1880s, the Bayer process has been used to extract alumina from bauxite ore. The presence of silicon in bauxite complicates alumina extraction, yielding two parts of red mud to one part alumina as a by-product. It is such a large problem that the quantity of red mud stored in holding ponds near processing plants worldwide is estimated at three billion tonnes. “Some plants are close to being shut down because their red mud ponds are at maximum capacity,” explains Richard Boudreault, president, CEO and director of Orbite Aluminae. He is pleased to say his argillite mine will not add to that stockpile. Boudreault’s company first processed alumina with its new technique at its pilot plant in Cap-Chat in early 2011, and expansion of the plant is now underway. Much of the equipment, including process vessels and control systems, has been delivered and structural work is nearing comple-

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“Our process works the other way around from the Bayer process,” says Boudreault. “Ours is an acid process that requires special containers. The red mud holding ponds are formed by a basic process, with a pH of 13. Our technology consists of taking an acid, diluting each of the products, and separating these products one by one. In the Bayer process, on the other hand, you grind up all the materials at one pH, give them time to break down – to be digested – then try to separate them, which is more difficult to accomplish.” Orbite’s process demands strict control of pH levels, and today’s improved digital tools provide for better monitoring. In addition, the equipment used during extraction needs to have a glass lining to limit corrosion due to the acidity of the process. “This technology is a relatively recent development in the field of mining,” explains Boudreault. With Orbite’s process, it is possible to recover the silicon dioxide, magnesium oxide, hematite and rare earth elements as by-products. Solid residues can be treated to make them chemically neutral; the resulting clay can then be used to make bricks or roofing tiles. Acid recycling, the central element of the process, makes it more cost-effective than the traditional Bayer method, according to Boudreault. Like the rest of the process, the acid-recycling loop also relies on the very latest technological developments. Orbite produces high-purity alumina, with a

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market value of $50 to $100 per kilogram, compared to $300 per tonne for smelter-grade alumina. HPA is used in the production of light-emitting diodes (LEDs) and computer screens, for example. Their process will also enable Orbite to eventually produce smelter-grade alumina (SGA), which is sold to fabricating plants. By extracting this alumina at a lower cost, and without the red mud pollution of typical operations, Orbite hopes to blaze a new trail in the fiercely competitive world of aluminum production. Boudreault says the company has plans to improve the HPA extraction process to increase its purity from 99.99 per cent to 99.9999 per cent, thus giving the product additional added value.

Creating value In addition to Nalco, the Quebec-based company also reached a memorandum of understanding with Rusal, the world’s largest aluminum producer, to help build its planned smelting-grade alumina facility in Gaspésie – a project that is expected to cost $500 million. The location of the plant has not yet been determined, but it is slated to be near GrandeVallée or Murdochville. In addition to the TSX, Boudreault has registered Orbite on the OTCQX in New York, to gain access to a broader capital market. “American investors see us as a green technology company, and that is something that is not yet as highly sought-after in Canada,” points out Boudreault. “The mining sector is often still associated with environmental problems, so our approach also seeks to change this perception. In the United States, there is a better understanding of our process, and what’s more, there are funds available that focus on the clean technology industry. This will help us grow the company and increase the share value for stockholders.” According to the preliminary assessment conducted by Genivar, the value of ore in Orbite’s deposit is estimated at $7 billion. The deposit also includes rare earth elements and rare metals, such as scandium. “When you combine scandium with aluminum, you get an alloy that is almost as sturdy as titanium, which means, for example, that you can reduce the weight of airplanes by 15 per cent to 20 per cent,” Boudreault says. “This is another very significant environmental advantage.” The process developed by Orbite will also mean reductions in the cost of extracting heavy rare earth elements. “As a greater volume of rarer commodities becomes available,” Boudreault believes, “prices will go down. It will then be easier to develop new products.” CIM Translated by Mark Stout

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Orbite produit de l’alumine en Gaspésie

Courtoisie Orbite Aluminae Inc.

Un procédé acide qui ne crée pas de boues rouges

Au terme d’un procédé de lixiviation où les boues rouges sont traitées, la technologie d’Orbite génère comme résidu un produit sec, inerte et surtout neutre pour l’environnement et permet de réduire les volumes résiduels de plus de 90 pour cent par rapport à leur état initial.

a société minière Orbite Aluminae inc. (« Orbite ») a de grandes ambitions pour son gisement d’argilite situé près de Grande-Vallée, en Gaspésie. En plus d’y extraire de l’alumine, Orbite entend exploiter le potentiel du site pour d’autres métaux et terres rares. Et la technologie alternative qu’elle a mise au point permettrait d’éviter l’épineux problème environnemental que représentent les boues rouges pour l’industrie de l’aluminium. En fait, Orbite possède la technologie pour les traiter. Depuis les années 1880, on utilise le procédé Bayer pour extraire l’alumine du minerai de bauxite. La présence de silicium dans le minerai complique l’extraction de l’alumine et crée un sous-produit, la boue rouge, dont le volume est deux fois plus important que celui de l’alumine. On estime à quelque 3 milliards de tonnes dans le monde la quantité de boues rouges entreposées dans des réservoirs près des usines de transformation. « Certaines usines sont menacées de fermeture, car leurs lacs de boues rouges sont à pleine capacité »,

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explique Richard Boudreault, président et chef de la direction d’Orbite Aluminae. La société a produit de l’alumine pour la première fois à son usine-pilote à Cap-Chat au début de 2011, et une extension est en cours. Une grande partie de l’équipement, y compris les navires de processus et de systèmes de contrôle, a été livrée, et la construction extérieure est en voie d’achèvement. L’entreprise espère avoir la capacité de produire d’une à trois tonnes d’alumine de haute pureté (HPA) par jour d’ici la fin de l’année 2012, et cinq tonnes par jour d’ici 2013. Une fois que la production d’alumine de haute pureté générera des revenus, la société prévoit de construire une usine de fabrication d’alumine métallurgique d’une capacité de 7000 tonnes par jour pour atteindre la pleine production. À la fin du mois de juin dernier, la société venait d’annoncer la signature d’un protocole d’entente avec le géant Nalco en Inde, troisième producteur mondial d’aluminium, lequel entend utiliser la technologie d’Orbite pour le traitement des minerais et des boues rouges. Si tout va bien pour Orbite, Nalco pourrait l’aider lorsqu’il sera temps de financer l’usine de fabrication d’alumine métallurgique.

Nouvelle technologie Le procédé d’extraction de l’alumine utilisé par Orbite est moins cher, justement parce qu’il ne produit pas de boues rouges, ajoute le PDG d’Orbite. « Notre procédé fonctionne à l’inverse de celui de Bayer. Il s’agit d’un procédé acide qui requiert des conteneurs spéciaux. Les lacs de boues rouges se forment par un procédé basique, avec un pH de 13. Le procédé Bayer est à l’opposé de notre technologie, laquelle consiste à prendre un acide, à diluer chacun des produits et à les séparer un par un. Dans le procédé Bayer, au contraire, on broie tous les matériaux dans le même pH, on les laisse se décomposer, se digérer et on essaie ensuite de les séparer, ce qui est plus difficile à faire. » Le procédé d’Orbite exige un contrôle très strict du pH, et l’amélioration des outils numériques permet d’en assurer un meilleur suivi. De plus, le matériel utilisé lors de l’extraction doit également comporter un revêtement en verre à l’intérieur, en raison de l’acidité du procédé et pour limiter la corrosion. « Cette technologie est relativement récente dans le domaine minier. Grâce à l’amélioration des outils informatiques, nous pourrons éliminer la production de boues rouges », ajoute M. Boudreault. Le procédé d’Orbite permet de récupérer les oxydes de silicium et de magnésium, l’hématite et les éléments de terres rares comme des sous-produits. Les résidus solides peuvent être traités pour être chimiquement neutres, et l’argile peut alors servir à la production de briques ou de tuiles. L’élément central du procédé qui le rend plus économique, ajoute-t-il, est le recyclage de l’acide. Cette boucle de recyclage

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de l’acide dépend aussi de technologies très récentes. Elle permettra surtout à Orbite d’obtenir de l’HPA dont la valeur sur le marché varie de 50 à 100 $ le kilo, en comparaison des 300 $ la tonne pour l’alumine métallurgique. La HPA sert notamment à produire des ampoules à diode électroluminescente (LED) et des écrans d’ordinateur. Elle permet également à Orbite de produire de l’alumine métallurgique, laquelle est vendue aux usines de transformation. En extrayant cette alumine à moindre coût et sans pollution environnementale, Orbite pourra se frayer un chemin dans cet univers où la concurrence est féroce. Richard Boudreault ajoute que l’entreprise projette d’améliorer le procédé d’extraction de la HPA pour augmenter sa pureté de 99,99 pour cent à 99,9999 pour cent, donnant ainsi une valeur ajoutée supplémentaire au produit.

Créer de la valeur Outre Nalco, la société québécoise a aussi conclu un protocole d’entente avec Rusal, le plus grand producteur mondial d’aluminium, et ce, relativement à son projet de construction d’une usine de fabrication d’alumine métallurgique en Gaspésie, un projet estimé à 500 millions $. L’emplacement de l’usine n’est pas encore déterminé, mais il est prévu de la construire près de Grande-Vallée ou de Murdochville. En plus de la Bourse de Toronto, Boudreault a enregistré Orbite sur le OTCQX à New York pour avoir accès à un marché

du capital plus large. « Les investisseurs américains nous considèrent comme une société de technologies vertes dans l’industrie minière, et ce statut n’est pas encore très valorisé au Canada », précise M. Boudreault. « Le secteur minier est encore souvent associé aux problèmes environnementaux, aussi notre démarche consiste à faire changer cette mentalité. Aux États-Unis, on comprend mieux la valeur de notre procédé et il existe d’ailleurs des fonds spécialisés dans l’industrie des technologies propres. Cela nous aidera à faire prendre de l’expansion à l’entreprise et à valoriser l’action pour les détenteurs de titres. » Selon l’évaluation préliminaire réalisée par Genivar, on estime à plus de 7 milliards $ la valeur des minerais présents dans le gisement d’Orbite à l’heure actuelle. Le gisement de schiste argileux comporte aussi des éléments de terres rares et d’autres métaux rares, comme le scandium. « Quand on associe le scandium à l’aluminium, on obtient un alliage qui est presque aussi résistant que le titane, ce qui permet par exemple de réduire de 15 à 20 pour cent le poids des avions ou des automobiles. Il s’agit là d’un autre avantage environnemental très important », fait observer le PDG d’Orbite. Le procédé développé par l’entreprise permettra par ailleurs de réduire le coût d’extraction des éléments de terres rares lourdes. « En rendant disponible un plus grand volume d’éléments plus rares, on fera baisser les prix. Il sera alors plus facile de développer de nouveaux produits », conclut Richard Boudreault. ICM

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upfront JURISDICTION by Anna Reitman

No guts, no glory in Guinea Courtesy of Rio Tinto

Rapidly evolving region challenges miners in search of great rewards scenario, a well-managed, transparent process will still pit the government against mining companies. “The revised code was driven by market factors – such as the commodity price super-cycle and growing Asian interest – and domestic political factors, with the government keen to recalibrate its relationship with investors and increase its stake and take from the mining sector in order to begin to address the country’s pressing socio-economic challenges,” Barclay says. Negotiations are anticipated to bring mining industry participants in line with the new mining code, which Barclay expects will be used as a guiding tool rather than as a fixed framework. However, he believes the government will Rio Tinto’s investment in the Simandou deposit is one of the most significant signs of the promise Guinea holds. stay firm on some conditions, such as the ownership provision. It is difficult to assess how the conhe Republic of Guinea is a two-year-old democracy tract revisions and the timeline for their implementation are with a vast wealth of natural resources and an atmos- going to affect individual miners. Diana Asonova, a phere of perpetual change. The country is now, more spokesperson for Nordgold, which controls the Lefa gold than ever, one of the most closely watched mining mine near the Mali border, explains that the new mining code was recorded as having come into effect subsequent to jurisdictions in the world. Mining accounts for about 20 per cent of Guinea’s its drafting in September 2011, although it was not made US$11.6 billion GDP and over 80 per cent of its exports. The available to the public until February of this year. Asonova adds that Nordgold’s property has been guaransector also provides between 20 per cent and 25 per cent of government revenue and employment in direct and indirect teed by an agreement with the government, which pre-dates jobs, according to the World Bank. Guinea is the world’s top the new mining law and contains a number of stabilizing exporter of bauxite, has massive underdeveloped iron ore provisions, giving it priority over any newly implemented reserves and is one of the top five gold producers in West laws that negatively affect terms and conditions. “However, we understand that there are still discussions ongoing regardAfrica. Observers agree that the resources are lucrative, but the ing possible amendments to the new mining code, in particgovernment’s bumpy transition to democracy has added risk, ular with respect to the tax regime,” she says. as has a mining code review that began in earnest this year. Guinean President Alpha Condé came to power in 2010 Miner-community relationships in the balance Nordgold is investing in upgrades to its Guinean operaduring the first democratic elections the country has known. Since then, the government has implemented new mining tions, and Lefa, acquired in 2010, is its top-producing asset. legislation, and subsequent contract renegotiations with During a site visit in July of this year, COO Sergei Stepanov pointed out that capital intensive repairs the company has companies were initiated earlier this year. Included in the new legislation is a provision that would made will drive future production, and improvements are give the government a 15-per-cent non-contributing stake in expected to be completed by the end of the year. Stepanov is optimistic. The company’s inviting journalists all projects and the option to acquire a further 20 per cent at and investment analysts to tour the mine site is indeed a market value. Roddy Barclay, West Africa analyst at advisory firm Con- show of confidence. However, there are tensions in the comtrol Risks, explains that the new mining legislation has munities surrounding the mine as a result of operations. increased investor uncertainty, and that even in a best-case One local source reports numerous unfulfilled promises of

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development made by visiting government officials and uneven reimbursement of payments for land taken by the mining company for expansion, with some payments being made by relevant government departments but not others. Roddy Barclay explains that, across the country, tensions over local employment and investment are likely to remain a prominent feature of the operating environment as the industry develops. Even with the best intentions, mining companies will likely struggle to meet the massive expectations of the communities surrounding their projects. The situation can turn violent. In August, clashes between villagers demanding jobs and Guinean security forces resulted in the deaths of five people in Zogota, a village near a mine site operated by Vale. After disappointing third quarter results this year, the Brazilian mining giant announced it was sidelining its $5 billion project in the country without providing a new start-up date, according to Reuters. Speaking through an interpreter, Damantang Camara, Guinea’s minister of employment, technical education and vocational training, says the government has taken steps to decentralize control from the capital Conakry in a bid to address complaints from communities. For example, he says, Condé has stated that locally elected leadership in the villages will become directly responsible for tax collection in order to empower individual regions and provide more independence, though he adds that because these changes are recent, he is not able to provide concrete details. Camara believes that private-public partnerships will yield success for communities. A case in point is the planning of the Beyla Training Centre in the southeast of the country by the government, in coordination with Rio Tinto, to advance local skills development. Those skills will be sorely needed to fuel major projects currently in the pipeline. Guinea is home to four billion tonnes of iron ore reserves, of which 2.25 billion tonnes are located at the Simandou deposit. Rio Tinto has identified Simandou as one of its top iron ore investments, announcing $1 billion (split with joint venture partner Chalco) in additional spending in July for detailed design studies, early works and long-term lead items, primarily for rail and port infrastructure. Based on the current mine plan, Rio Tinto expects small volume trucking by 2013, and rail and port, as well as ramp-up, by 2015. In total, $3 billion has been committed to the project to date. “There is progress with early infrastructure works, such as the construction of access roads and camps, [and] geotechnical work and significant contract awards are now occurring,” says Illtud Harri, spokesperson for Rio Tinto, adding that 3,000 employees and contractors were on the ground and that figure is expected to grow to 10,000 during construction. Other majors, however, have reconsidered projects against an economic backdrop of rising costs and falling commodity prices. BHP Billiton announced in July that it was backtracking on its Guinean projects.

Political present, industry future Since President Condé took office, there have been protracted delays to the legislative elections that should have occurred six months after he assumed the presidency. Although he has pledged the elections will finally take place by the end of 2012, outstanding political and technical problems following a standoff over electoral reforms are likely to see this deadline slide, Barclay says. But in the mining sector, there is much to look forward to. Over the next year, Camara is optimistic about major infrastructure projects getting underway, namely road construction linking the rural regions between N’Zerekore and Beyla around the Simandou project. Another road project is expected at Bellzone Mining’s Forecariah project in the south, located between Conakry and the Sierra Leonean border. Australian-listed Bellzone Mining was granted a mining permit in September, and the company announced the loading of its first barge of iron ore in July of this year. It has signed offtake agreements for the life of the mine with commodities trading giant Glencore as well. Canada too is planting a flag of strategic interest; following the opening of CIM’s Dakar branch, further branches are expected in Conakry and Ougadougou, Burkina Faso. CIM

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upfront PROCESSING by Marta Samuel

Mine-to-mill mastery Antamina boosts throughput for hard ores with support from Metso PTI Courtesy of Compañia Minera Antamina

Road trip

Samples were taken at all steps of the comminution process.

he ore body that Compañia Minera Antamina has been mining in Peru since 2001 contains two principal ore types: copper-molybdenum ores and much harder copper-zinc ores, which exist at about a 70:30 ratio. Historically, the copper-zinc ores were processed far slower than the copper-molybdenum ores, so it was clear that something needed to be done. A collaboration with Metso Process Technology and Innovation (PTI) was born in 2007 to optimize the entire comminution process, from drilling and blasting, to crushing and grinding. “The objective was to see how we could increase the throughput of the copper-zinc ores,” says Ed Rybinski, process area manager for Antamina’s production optimization program. Before 2007, the copper-molybdenum ore had a throughput of 4,100 tonnes per hour, and the copper-zinc ore had a throughput of 2,800 tonnes per hour.

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

Before beginning optimization work in Peru, Rybinski and Frank Dávila, drill and blast general foreman from Antamina, accompanied Metso PTI vice-president Walter Valery and other Metso PTI employees on a visit to Newmont’s Batu Hijau operation in Indonesia, where Metso PTI had done extensive work. Batu Hijau’s optimization was conducted using the same approach that was to be applied at Antamina – what Valery calls “mine-to-mill,” which relies heavily on collecting data and detailed analysis to gain a full understanding of the ores and processes. “We thought Batu Hijau provided a good opportunity for Antamina to see the results of the project and discuss the process with the Newmont personnel,” says Valery. Like Antamina, Batu Hijau had enlisted Metso PTI to help decrease the difference in throughputs achieved when treating hard and soft ore types. And also like Antamina, the goal was achieved by tailoring the blast design for the different ore types to provide consistently fine run-ofmine (ROM) fragmentation. Rybinski says he was convinced that working with Metso was the right thing to do before going to Indonesia. “The objective of the visits was to get some hands-on information about how the projects were managed, what they thought were the keys to success, or the possible paths to failure, to help us develop our project,” he recalls. “I was impressed that people from many areas – concentrator operations, metallurgy, drilling, blasting, geology and others – were all talking about mine-to-mill. It was not just one person running a project in isolation. It was critical to get buy-in from concentrator and mine, and from various levels of the organization, to ensure continued success for the program.” Metso’s mine-to-mill process is a “structured methodology,” according to Valery. That means although mining operations and the changes needed to optimize them vary from site to site, the methodology of the optimization process remains consistent.

More bang for your buck The collaboration between Antamina and Metso PTI began to take shape on site in Peru in early 2007. The team began by auditing Antamina’s drilling and blasting practices, as well as auditing and sampling the crushing and grinding circuits. This helped them develop models that would reveal what each step was achieving, and what could be tweaked to improve performance. “We were on site at Antamina on a number of occasions,” says Valery. “We benchmarked how they were operating the mine and the processing plant. We calibrated our models and then we ran a very large number of different scenarios of operating strategies in the mine and the plant.” This involved Metso’s

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Courtesy of Compañia Minera Antamina

Heavy Haul Road and Rail ArDIFT r .4& $SVTIFS Walls and Retaining WBMMT r 4tockpile, $onveyPS BOE &Tcape Tunnels Portals, Bridges and DrBJOBHF 4USVcturFT r Wildlife $rPTTJOHT r ProtecUJPO 4USVcturFT r 4ound WBMMT r 4hafts

Engineering success.

Antamina’s harder copper-zinc ore before and after the mine-to-mill optimization

in-depth review of existing blasting designs and comminution circuit operation. As in all mine-to-mill optimizations conducted by Metso PTI, the ore was categorized into groups of varying hardness. Blasting practices were audited and blast fragmentation was measured, which made it possible to benchmark existing practices in the mine, and to define the main constraints related to wall stability and control, ore dilution and environmental aspects. Once the team created site-specific models for the entire comminution process, it became evident that they would find the largest potential gains in improvements to the blasts. The basic idea was to increase the powder factor – using more explosives to create finer ROM fragmentation – so that downstream equipment like the crusher and SAG mill would have less trouble treating the copper-zinc ore. In the drilling process, they decreased the drill pattern (burden and spacing) over time – from 7 m x 8 m to 6 m x 7.5 m and finally to 5.5 m x 6.5 m. By maintaining the same type and amount of explosives in each drill hole, the corresponding blast powder factor rose from 0.35 kg/tonne to 0.43 kg/tonne and finally to 0.54 kg/tonne. In addition, switching to electronic detonators proved to be more reliable and ensured blasts went off according to plan. A number of changes were also made to the crusher, SAG and ball mill circuits to ensure the benefits from the blasting changes were realized for the overall process. Metso cooperated with Antamina’s geologists, drill and blast engineers, and metallurgists in the plant. “We wanted to make sure that what we were implementing was approved by them and that we were all moving towards the right direction together,” said Valery. Metso staff offered internal workshops and training programs for Antamina staff, and they worked

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upfront together to collect necessary data, understand the current operating practices and build collaboration with the different groups.

Serious improvement As of 2011, Antamina was processing copper-zinc ores at an average rate of 4,400 tonnes per hour; up 60 per cent from the performance prior to 2007. The copper-molybdenum ores also saw a more modest increase to 4,800 tph. Three main factors allowed Antamina to achieve such large throughput improvements: • Mine-to-mill optimization work with Metso PTI, which increased throughput by 30 Optimizing comminution at Antamina was a team effort. per cent • Projects led by Antamina in Having done mine-to-mill optimizations at other sites, the the concentrator (including the installation of a pebble crusher and modification to pulp lifters), which increased 30 per cent increase associated with the optimization of the drill and blast and comminution circuit operation was one of throughput by 10 per cent • Reduction in hardness of the copper-zinc ores, which the biggest gains Valery has seen. What is more, those gains were accomplished without the purchase of additional drills, increased throughput by 15 per cent and the same downstream equipment before the optimization was still being used. “There has been a huge increase in revenue for us because that’s additional copper-zinc that we’re now producing in the mine,” Rybinski explains. Overall, staff at both companies were pleased with the results, and for the most part, the process went smoothly. Of course, operating costs increased somewhat at the mine, but the gain in throughput more than paid for the increased cost of more explosives and the drilling and blasting that were required. According to Valery, those expenses were paid back within weeks. “We wouldn’t have been able to do this if the guys on site at Antamina and their operations weren’t on board,” points out Valery. “If they didn’t embrace it and if we didn’t have good support from the top, it wouldn’t have succeeded.” CIM

Compañia Minera Antamina and Metso Process Technology and Innovation were awarded with the 2012 Coalition for Eco-Efficient Comminution Medal for their work together. 46 | CIM Magazine | Vol. 7, No. 7

Courtesy of Compañia Minera Antamina

PROCESSING

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

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

www.mcgill.ca/conted/prodep/ore

Rendu, Newmont Mining Corporation, USA; and Roussos Dimitrakopoulos, McGill University, Canada • DATE: September 2013 • CITY: Montreal, Quebec, Canada

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

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

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

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

INSTRUCTORS: Tarrant Elkington, Snowden, Australia; and Roussos Dimitrakopoulos, McGill University, Canada • DATE: March 2013 • CITY:

Montreal, Quebec, Canada

An Introduction to Cutoff Grade: Theory and Practice in Open Pit and Underground Mines Cutoff grades are essential in determining the economic feasibility and mine life of a project. Learn how to solve most cutoff grade estimation problems by developing techniques and graphical analytical methods, about the relationship between cutoff grades and the design of pushbacks in open pit mines, and the optimization of block sizes in caving methods. INSTRUCTOR: Jean-Michel Rendu, Newmont Mining Corporation, USA • DATE: September 2013 • CITY: Montreal, Quebec, Canada

INSTRUCTOR: Michel Bilodeau, McGill University, Canada • DATE: October 2013 • CITY: Montreal, Quebec, Canada

Quantitative Mineral Resource Assessments: An Integrated Approach to Planning for Exploration Risk Reduction Learn about exploration risk analysis for strategic planning. Understand how to demonstrate how operational mineral deposit models can reduce uncertainties; make estimates of the number of undiscovered deposits; and integrate the information and examine the economic possibilities. INSTRUCTOR: Don Singer, USA; and David Menzie, U.S. Geological Survey, USA • DATE: September 2013 • CITY: Montreal, Quebec, Canada

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upfront Q&A by Correy Baldwin

CRU boss

Courtesy of Phil Newman

Courtesy of Cru Strategies

Courtesy of Phil Newman

Experience forges insight for Phil Newman, CEO of CRU Strategies

Left: Phil Newman, CEO of CRU Strategies. Right, above: as a mountain biker, Newman frequently finds himself in unusual places; Right, below: Newman has a flair for leadership.

ith a clear grasp of the complexities of global commodity economics, Phil Newman, CEO of CRU Strategies, has made a name for himself as a confident, independent thinker. Whether mountain biking through rugged terrain or leading a team of hardworking analysts, Newman forges ahead with a determined work ethic. He is a leader with a clear vision and high standards, and a healthy streak of optimism. Newman began his career as a mining engineer, but he harnessed his passion for the minerals and metals markets, and now heads up one of the world’s premier consultancies in that sphere. He chaired two panel discussions at the latest Mining Business Risk Summit in Toronto, and will be speaking at Mines and Money London in December.

CIM: What is going on in the industry that has got your attention these days? Newman: One of the things I’m quite passionate about, being an engineer who follows the markets, rather than an economist who follows the industry, is the belief that in the next decade we are going to see some significant technological breakthroughs. With demand growth slowing, a lot of the 48 | CIM Magazine | Vol. 7, No. 7

mining companies that succeed are going to be the ones that embrace more innovation, have invested heavily in R&D or have good partnerships with innovative suppliers. Mining companies will want to increase their revenues and their margins, and they’ll do that more by decreasing their costs than by increasing their volumes. And to really cut costs, I think there will be technological breakthroughs. So I think it’s an exciting time if you are in the technological businesses. The mining industry has a much different demographic now compared to when the boom started. The industry has attracted different people, and many of those are younger, more energetic and more creative. It has been a pretty darn sexy industry to be in for the last eight years and has attracted people from other backgrounds and other businesses. CIM: We are seeing another shift as well. Managerial positions are being filled by people with business degrees, rather than engineering degrees. What impact do you think this will have? Newman: I would estimate that there are not as many people with the 10 to 20 years of technical experience as there were a generation ago.

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upfront Q&A

I think it is great that the mining industry is attracting new blood; it needs people for sure, but there may be a warning sticker needed here. One of my senior colleagues, who is a very esteemed mineral economist with 40-plus years of experience, has often bemoaned the lack of basic economics understanding and commercial skills of many mining company executives. Will he now bemoan the lack of technical understanding of the mining industry by the new breed of mining executives? Let’s see if the new breed of managers, if such a thing exists, can think of more imaginative ways to combat weakening prices than increasing production – historically the first line of defence to improve margins. CIM: In light of this shift, is consultancy more important now? Newman: Definitely. You just have to look at the size of the big technical consultants. They have grown enormously in the last few years. As far as our business is concerned, on the commercial-market side, growth has been solid. Certainly the use of consultants is more prevalent now than it was in the past, and I think it will continue to go that way. Most of our clients are international clients. A lot more tend to be coming from developing countries. And some of the clients from developing countries are starting to learn the value of consultants. CIM: Where will consulting see its biggest changes in the coming years? Newman: One of the things Chinese investors need to do is appreciate and understand the value of advice. That’s something that they don’t always do. They have only been investing overseas for 10 or 15 years and they’re not as sophisticated in investing in foreign cultures as perhaps Canadians might be. Canadians have a long history of investing in South America, for example. As have the Brits, as have the Americans, as have the Australians. They’ve gone through this learning curve. When we offer commercial advice in China on the subject of overseas project investment, clients are interested in what we can offer but want to pay a success fee, which kind of goes against our “independent authority” tag line. What if our strong recommendation is to walk away? CIM: Many countries, not just developing ones, are increasing tax rates now. So what is the best response? Newman: Companies look for stability – a stable tax rate, a stable mining regulation. Let’s say a mining company is looking at two projects, and one is in a country with, say, a five per cent tax rate that has always been five per cent, and the other investment is a similar type of project in a jurisdiction where the royalty rate is four per cent, but two years ago it was two per cent, and a year before that it was one per cent. Now, although the royalty rate is lower, there’s inconsistency, and it’s unstable. That’s uncertainty. You’ve got your resource risk, metallurgical risks and environmental risks. The last thing you want is a country where the mining regulations are changing every two or three years.

CIM: Does this bode well for Canada, with its positive investment environment? Newman: Don’t forget that Quebec actually changed its taxation recently, slightly against the miners, and the Fraser Institute dropped them down a couple of pegs. But it’s all relative. If you’re working in one of the provinces in Canada – and there are quite a lot of provincial differences across Canada – you know that the rule of law will hold sway. CIM: How do you see the interest in the chromite-rich area of Ontario’s Ring of Fire? Newman: Interest in chromite is not necessarily driven by the discovery of fantastic new resources in places like northern Ontario, because I think people knew the resources were there. It’s being driven by the increase in costs in South Africa, which has always dominated the chrome industry. South African power costs are rising and will continue to rise in the short term, as the country deals with a general power shortage. Eskom, the major power provider, is investing in new capacity, and tariffs are rising to cover these costs. The impact on the ferroalloy industry globally could be significant since power is a major cost component. New sources of ore in a politically stable country with competitive power and access to markets are going to generate investment interest. CIM

MOVING ON UP Senécal joins MAC MAC appointed Johanne Senécal as vice-president of government affairs and communications. A lawyer with extensive skills and experience in the public and private sectors, Senécal was a senior consultant with national government relations company StrategyCorp, where she supported natural resources companies, such as mining firms, with their public affairs agendas. “With more than 20 years of experience in both the public and private sectors, Johanne is a skilled professional who will help further our efforts in the realms of government relations, public policy development and external communications,” said Pierre Gratton, president and CEO of MAC. “Fluently bilingual, Johanne is a welcome addition to our team, bringing ideal expertise to her leadership position.” Senécal holds an LLL from the University of Ottawa and is a member of the Quebec Bar.

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B En franรงais p. 56

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RING OF FIRE

Environmental assessments Noront has been operating in the shadow of Cliffs, largely because its polymetallic deposits are not judged to be worldclass scale, but Noront president and CEO Wes Hanson says the company aims to have an underground mine in production by late 2016 and hopes to be first to produce from the Ring of Fire. The company released its feasibility study last September. Cliffs began its feasibility study in the spring and aims to conclude the study by June 2013. It currently anticipates production in 2016. In the meantime, several hundred kilometres of all-weather road must be built, likely from Nakina, on the CN’s east-west mainline, north to the Ring of Fire. Electrical transmission lines may be built, or the companies may have to rely on diesel generators. And both companies must also submit their projects to federal and provincial environmental assessment agencies. Those assessments are currently underway. In Ontario, mining companies are required to complete a seven-step process that involves several rounds of consultation with the public and First Nations communities, and ministerial approval at each stage. In the first round, the companies must describe the project; the second requires a detailed assessment of environmental impacts, measures to manage and mitigate those impacts, and a record of public consultation. Before final approval is granted, the environment minister has the option of submitting a project to a tribunal for public hearings or of sending it to a mediator to resolve conflicts between proponents and surrounding communities. According to a spokesperson for the Ontario Ministry of the Environment, both Cliffs and Noront are at the initial stage of the environmental assessment process. Cliffs has submitted terms of reference, or a description of the project, while Noront submitted a plan earlier this year but is currently revising it. (Left) MacDonald Mines Exploration’s Butler camp Courtesy of MacDonald Mines Exploration

The duty to consult Equally important socio-economic agreements will have to be signed with several Aboriginal communities whose traditional lands will be affected by the developments. Each First Nation speaks for itself, and consensus may be difficult to achieve, but the Marten Falls band has signed a pre-development agreement with Cliffs, and in early September, signed a memorandum of understanding with the Ontario government that defines the issues to be hammered out. “Infrastructure is one of the things we’ll be discussing,” says the band’s elected chief, Eli Moonias. “Connectivity to our communities is another. That’s road access and electricity. Revenue-sharing is another thing we want to discuss. We also want to ensure that these projects don’t turn our environment into a chemical soup.” Marten Falls, a small, remote Anishinaabe community located some 400 kilometres northeast of Thunder Bay, is accessible by winter road and year-round by air, and relies on diesel-generated electricity because it is beyond the province’s power grid. Half of the band’s 650 residents have scattered to other parts of the country in search of work. “There are no jobs here,” says Chief Moonias. “People are on welfare. Social conditions are bad. We need something to get us out of the poverty we’re in.” For the people of Marten Falls and for several other First Nations, the Ring of Fire developments have the potential to be that something. However, at this stage, at least one First Nation has been pushing back against the advancing projects, and what the community regards as a lack of substantive consultation. “They are not listening to us,” says Peter Moonias, the 67-year-old chief of the Neskantaga First Nation, which has a population of some 450. “They’re bullying us. They think we’re non-existent and have no rights. This is a small community, but it’s a community with rights.” The band has so far been frustrated in its attempts to be formally included in the development planning of the Ring of Fire. Courtesy of Cliffs Natural Resources

hen Noront Resources made the first major discovery in the nascent mining region, dozens of junior exploration companies rushed into the formidable terrain of swamps, bogs, muskeg and mosquito-infested boreal forest to stake claims. Located near the shores of McFauld’s Lake, some 550 kilometres northeast of Thunder Bay, the region has yielded three major finds: the Black Thor and Big Daddy chromite deposits, and the nearby Eagle’s Nest nickelcopper-platinum-palladium resource. Cliffs Natural Resources bought all of Black Thor and owns 70 per cent of Big Daddy. Together, those represent the first major chromite discoveries in North America, and current resource estimates indicate they may be large enough to support multi-generational mines. At the moment, Cliffs intends to develop Black Thor first, and is committed to investing $3.3 billion in that mine and a smelter located at Capreol, just outside Sudbury. Meanwhile, Noront is steadily developing its smaller Eagle’s Nest property close by. However, before either company ships a pound of metal to market, they have some difficult hurdles to clear.

Cliffs’ chromite and Noront’s neighbouring nickel-sulphide projects will pave the way for future development. November 2012 | 51

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The road to development 2002 • De Beers Canada, exploring for diamonds, discovers copper and zinc massive sulphides at McFaulds Lake joint venture with KWG Resources and Spider Resources. First staking rush follows.

2007 • Noront Resources discovers Eagle One nickel-copperplatinum-palladium deposit. Discoverers Richard Nemis and John Harvey name the region “Ring of Fire” after the Johnny Cash song. • Second, larger staking rush ensues. • $120 million invested in exploration over the next three years.

2008 • Noront discovers Eagle Two nickel-copper-PGE deposit and Blackbird chromite deposit. • Noront becomes top-ranked company in mining category on TSX Venture 50.

2009 • Freewest discovers Black Thor chromite deposit. • Noront takeover bid for Freewest fails. • Ontario’s Mining Act amended to address conflicts between explorers and other land users. Industry and Aboriginal groups continue to criticize policy.

2010 • Ontario commits $45 million over three years to northern skills training program and creates Ring of Fire Secretariat to coordinate regional information. • Webequie and Marten Falls First Nations launch two-month blockade of landing strips at Koper Lake and McFaulds Lake, in protest of construction. • Cliffs Natural Resources buys Black Thor deposit for $240 million. • Cliffs acquires Spider and Freewest, giving it control over the Big Daddy deposit.

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

Courtesy of MacDonald Mines Exploration

2006 • Joint venture between Freewest Resources Canada, Spider and KWG discovers Big Daddy chromite deposit.

Accommodations at the Butler camp

Rick Bartolucci, Ontario’s minister of mines and northern development, says the provincial government is committed to broad consultations with all the affected First Nations communities to ensure that the potential economic, social, cultural and environmental impacts are taken into account before development proceeds. “We’re responding with new approaches to complement existing regulatory tools,” points out Bartolucci. “We’ve agreed to discuss revenue-sharing. Our discussions are at a very, very preliminary stage, but that is a very important issue with the First Nations in the Ring of Fire.” Patricia Persico, Cliffs communications director, acknowledged that the pace of discussions with different First Nations communities is uneven. “We have made progress with some First Nation communities to help make this project a reality. For other communities, we have reached out to the leadership to discuss the project, but we have to be invited in,” she explains. “We want to be respectful – there is a lot at stake.”

Eager for development The Ontario government is keen to get the projects off the ground and to begin developing the region. “We have a unique opportunity to open up the Far North,” says Bartolucci, “We want to maximize the potential of the Ring of Fire.” One major step forward occurred in May when Cliffs announced it would build a smelter in Capreol, thereby ending speculation that it might be built elsewhere, perhaps in the U.S. or

even in Quebec, where lower hydro rates provide a cost advantage. “The commitment to build the mine and the smelter is going to provide enormous job opportunities for northern Ontarians,” says Bartolucci. And despite his apprehensions, Neskantaga’s Chief Moonias acknowledges that his community would inevitably be better off with allweather road access and power lines that would end its dependency on expensive, diesel-generated electricity. He notes that a loaf of bread costs at least $4.95 and can be many times higher as supplies dwindle. A litre of gas ranges from $2.19 to $2.79. “It really doesn’t make sense not be connected,” he stresses. Noront has been actively courting the three communities most directly affected by the Ring of Fire projects: Marten Falls, Webequie and Neskantaga. Both Noront and Cliffs have held open house meetings in First Nations communities across the region. “We continue to make progress,” says Glenn Nolan, Noront’s vice-president, Aboriginal affairs, adding that he has not encountered any opposition that might jeopardize the company’s venture. Nolan is a former chief of the Missanabie Cree First Nation, near Wawa, Ontario, and a mining industry veteran who used to own a company that outfitted small exploration camps. Nolan says there is an eagerness to participate. His discussions have centred on jobs, training and the infrastructure that would provide the First Nations communities with yearround access roads, cheaper electricity and faster, more reliable internet connections.

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RING OF FIRE

â&#x20AC;&#x153;They are looking for ways to maximize their participation,â&#x20AC;? explains Nolan. â&#x20AC;&#x153;You want to see that thirst to participate. The Ring of Fire is a game-changer for these communities. In the past, nothing has worked to bring in all-season, access roads and high-speed internet.â&#x20AC;?

Courtesy of Noront Resources

and lands commissioner. KWG is instead pushing for a railway that would cost an estimated $2.2 billion, arguing it would be the best long-term infrastructure solution. â&#x20AC;&#x153;A road is a logical first step,â&#x20AC;? says Cliffsâ&#x20AC;&#x2122; Persico. She adds that â&#x20AC;&#x153;long term we would like to see rail infrastructure into the Ring of Fire; however, the cost is prohibitive, and The road forward canâ&#x20AC;&#x2122;t be justified by one project.â&#x20AC;? Infrastructure requirements may be To be sure, KWG will do anything it can the most complex piece of the puzzle to get Bid Daddy off the ground as soon as because the companies involved have possible. â&#x20AC;&#x153;At the end of the day,â&#x20AC;? says Hodgconflicting views about what should be man, â&#x20AC;&#x153;we think thereâ&#x20AC;&#x2122;s a solution that satisbuilt, who should cover the costs, and fies all stakeholders.â&#x20AC;? But Cliffs plans to who, ultimately, would own and maintain mine its 100-per-cent-owned Black Thor the infrastructure. A road could double as deposit first. And they have developed a utility corridor to bring power into the Glenn Nolan, Noront Resourcesâ&#x20AC;&#x2122; viceplans for two open pit operations, each mines. The First Nations would like president of Aboriginal affairs with a life span of 10 years to 15 years, spurs built off a main road into their before going underground. Meanwhile, the communities and power lines to deliver electricity. Big Daddy project would sit. Noront and some First Nations communities advocated for In September, Cliffs pushed back the projected production an east-west route that would, in fact, be an extension of date for Black Thor a year to 2016. The project remains a priOntario Road 559 that meanders north from Ignace on the ority for the company, but the decision highlights how, when Trans-Canada Highway, about 225 kilometres west of Thunder opening up a new frontier in mining, ambition and ingenuity Bay, to Pickle Lake and then still further north to Windigo are essential, but so is patience. CIM Lake. A 200-kilometre winter road currently runs east to Webequie First Nation, and Noront has pushed the idea of converting that to an all-weather route. However, the route currently taking shape is a 340-kilomeExpert. Quality. Advice. tre north-south road that would begin at, or near, Nakina on the CN line and end at McFaulds Lake. Bruce Hodgman, vicepresident of communications with KWG Resources, says his Mining Engineering company has staked a ridge of sand and coarser aggregates that happen to run almost the full distance from the CN line to McFaulds Lake. The company, which is the minority owner in Geotechnical Engineering the Big Daddy project, has spent some $15 million on engiUnderground and Open Pit neering studies that demonstrate the viability of using the Feasibility Studies material as a railway bed. The provincial government has already expressed its commitment to help pay for the private NI 43-101 Reports pay-for-use road. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s almost perfectly north-south,â&#x20AC;? says Hodgman. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s Due Diligence just luck that this very direct route exists. You need aggregate to build a road, and you need local sources because it isnâ&#x20AC;&#x2122;t economical to ship aggregate. Itâ&#x20AC;&#x2122;s swamp on either side of the ridge.â&#x20AC;? Even with all that aggregate, construction will still be a challenge. There are more than 90 water crossings along the north-west route. While most of these crossings can be channelled through culverts, there are four rivers to be crossed, and several bridges will have to be built. And the physical difficulty of creating the transportation corridor is being exacerbated by a tense relationship between Big Daddy partners KWG Resources Inc. and Cliffs. Cliffs has applied to the Ontario Ministry of Natural Resources for easements that would allow it to build a road along the ridge, but The busi www.amcconsultants.com KWG is opposing the application with the provincial mining November 2012 | 53

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2011 • Marten Falls First Nation blockades work camp used by KWG Resources and Fancamp Exploration to draw attention to environmental and procedural concerns.

High costs and limited funding have thinned out the number of companies exploring the Ring of Fire.

• Chinese steelmaker Baosteel buys 19.9 per cent of Noront. • Cliffs files project description for Black Thor project, starting formal environmental assessment process. • Over $50 million spent on exploration in the region. 30,000 claims held by 35 companies.

Courtesy of MacDonald Mines Exploration

2012 • Cliffs announces feasibility study phase of $3.3-billion chromite project, including Black Thor mine, $600million transport corridor and $1.8-billion ferrochrome plant near Sudbury. • Noront releases feasibility study for Eagle’s Nest project with initial capital cost of $609 million. • Province of Ontario affirms it will provide financial support to build an allseason north-south road between McFaulds Lake and Nakina.

Slow burn Ring of Fire tests the resources of mineral explorers

2013 • Cliffs aims to have all permits and environmental assessment approvals for its Black Thor project by year’s end.

By Eavan Moore

rom a geological perspective, the Ring of Fire region contains a little something for everyone. Since De Beers’ 2002 discovery of a copper and zinc-rich volcanogenic massive sulphide deposit at Eagle One, explorers have uncovered chromite, nickel, gold, vanadium, iron and platinum group elements in and around the iconic crescent-shaped cluster of claims. But the extensive cash and patience required to operate in Ontario’s far north have turned junior exploration into a waiting game, as a few high-profile projects promise to open up inaccessible land to further development. The region’s two heavyweights, Cliffs Natural Resources and Noront Resources, are each advancing a major project to the development stage. That does not lend itself to funderfriendly hype for explorers. “Where we are

2016 • Production projected to begin at Eagle’s Nest. • Production projected to begin at Black Thor.

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now in the cycle, there’s not as much flaming news coming out,” says Garry Clark, executive director of the Ontario Prospectors Association. And in a generally dry investment climate, he adds, even strong drill results do not seem to move markets.

Operating costs Exploring in the Ring of Fire – 300 kilometres from the nearest road or rail – takes serious money. Michael Murphy, spokesperson for exploration junior White Pine Resources, sketches out the figures: “Diamond drilling costs are approximately $750 per metre for a small drilling program. A comparable cost in the historical mining camps of Ontario and Quebec would be in the $150 per metre range.” Last year, one company spent $1 million drilling 1,000

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RING OF FIRE

metres, according to James Trusler, president and CEO of Platinex. The time and money required to establish working relationships with First Nations adds another layer of complexity. John Harvey, a member of the team that discovered Eagle One and now chief operating officer at Bold Ventures, considers this the biggest obstacle facing explorers seeking their licence to operate in the James Bay Lowlands. “It took us 18 months to get an agreement with Attawapiskat,” he says. “Most companies don’t want to get into that. They can’t guarantee they’re going to be able to stay in that long.” As a result, the number of claim holders has dwindled. At one point in 2011, 35 companies held 30,000 claim units in the Ring of Fire. As of August 2012, 21 companies held only 16,435 claims. Of those 21 companies, some continue to actively explore. In 2012, Cliffs and KWG Resources drilled further on their Big Daddy chromite deposit, updating the Measured Resource to 29.5 million tonnes grading 29 per cent chromium and the Indicated Resource to 7.9 million tonnes grading 26.7 per cent chromium. Northern Shield Resources and Discovery Harbour Resources Corp. intersected strong copper-zinc mineralization at their Wabassi property, including grades of up to 44.74 per cent zinc. MacDonald Mines Exploration Inc. wrapped up a summer drilling campaign on its Butler property with further definition of a potential world-class volcanogenic massive sulphide mineralization. In all, exploration spending is projected to increase from more than $50 million in 2011 to more than $80 million in 2012.

Keeping an iron in the fire “The potential in the Ring of Fire is huge,” says Quentin Yarie, senior vice-president, exploration at MacDonald Mines

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Exploration, explaining why his company remains committed to the area after nine years. “The lack of outcrop in the Ring of Fire means that you must initially rely on airborne and ground geophysics as your primary targeting tool. Since 2004 the industry has seen significant advancements in these technologies and they have greatly added to the exploration process in the Ring of Fire. If you look at the suite of minerals discovered in the region: chromite, nickel, gold, silver, copper, et cetera, and with the commitment by the Ontario government to develop the area, it is not hard to see we that are witnessing the birth of a new mining camp in Canada,” says Yarie. Other firms are holding off on anything beyond remote detection, doing the minimum work required to keep their claims in good standing while they wait for infrastructure and social conditions to improve. Platinex cut its holdings by two thirds. It conducted an airborne survey to keep the remaining claims another four or five years and focused on its South Timmins gold properties in the hope of returning north to find platinum. The length of the wait to come depends largely on the projects proposed by Cliffs and KWG. Cliffs plans to build a permanent all-season road running 260 kilometres south to the closest CN rail connection to transport concentrate from its Black Thor project. Preliminary talks indicate that the province of Ontario would contribute financially, and that the road would be available for other industrial users. These most advanced projects are likely to continue setting the tone for negotiations with First Nations as well. Meanwhile, the next generation of explorers will bide their time perusing claims maps and the latest Ontario Geological Society data, seeking to pinpoint where, out of the 5,000 square kilometres in the Ring of Fire, their fortune might be made. CIM

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Courtoisie de Noront Resources

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Paul Semple, directeur de l’exploitation Noront Resources (à gauche), a reçu le chef du Parti progressiste-conservateur de l’Ontario, Tim Hudak, et d’autres législateurs provinciaux à Eagle Nest plus tôt cette année.

La quête du feu Par D’Arcy Jenish ersonne ne doute du potentiel énorme que présente le Cercle de feu de la région des basses-terres de la baie James, en Ontario. Il est clair que les grands gisements de chromite ainsi que les autres métaux de base et métaux précieux occuperont les sociétés minières pour des dizaines d’années. Il y a toutefois beaucoup de travail à réaliser avant de pouvoir concrétiser ce rêve. Lorsque Noront Resources a fait la première grande découverte dans la région minière naissante, des douzaines de petites entreprises d’exploration se sont ruées sur ce redoutable terrain de marécages, de tourbières et de moustique de la forêt boréale pour jalonner des claims. La région, située près des rives de McFauld Lake, à environ 550 kilomètres au nord-est de Thunder Bay, a fait l’objet de trois grandes découvertes : Les gisements de chromite Black Thor et Big Daddy et le gisement voisin de nickel-cuivre-platine-palladium d’Eagle’s Nest. Cliffs Natural Resources a acquis l’ensemble du gisement Black Thor et détient 70 pour cent de Big Daddy. Ces deux gisements représentent les premières découvertes importantes de chromite en Amérique du Nord et les estimations de ressources actuelles indiquent qu’ils pourraient être suffisamment grands pour soutenir des mines multigénérationnelles. En ce moment, Cliffs a l’intention de développer Black Thor en premier et s’est engagée à investir 3,3 milliards de dollars dans cette mine et dans une fonderie située à Capreol, tout

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

près de Sudbury. Pendant ce temps, Noront travaille continuellement au développement de sa plus petite propriété voisine d’Eagle’s Nest. Toutefois, avant qu’une de ces entreprises puisse expédier une livre de métal sur le marché, il y a des obstacles difficiles à franchir.

Évaluations environnementales Noront mène ses activités dans l’ombre de Cliffs, principalement parce qu’on ne croit pas que ses gisements polymétalliques sont de classe mondiale. Le président et directeur général de Noront, Wes Hanson, affirme toutefois que l’entreprise a pour objectif d’avoir une mine souterraine en activité d’ici la fin 2016 et espère être la première entreprise à produire dans le cercle de feu. L’entreprise a publié son étude de faisabilité en septembre dernier. Cliffs, dont l’étude de faisabilité a commencé au printemps, a pour objectif d’avoir terminé l’étude d’ici juin 2013 et prévoit entrer en production en 2016. Il faut construire plusieurs centaines de kilomètres de routes toutes saisons, probablement depuis Nakina sur la voie principale est-ouest du CN, au nord du cercle de feu. On pourrait construire des lignes de transport d’électricité, sinon les entreprises risquent de dépendre de génératrices diesels. Les deux entreprises doivent soumettre leur projet à des évaluations environnementales fédérale et provinciale.

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LE CERCLE DE FEU

Ces évaluations sont actuellement en cours. En Ontario, les sociétés minières doivent réaliser un processus en sept étapes qui comprend plusieurs phases de consultation auprès du public et des collectivités des Premières nations, ainsi que l’approbation ministérielle à chaque étape. À la première étape, les sociétés doivent fournir une description du projet. La deuxième étape exige une évaluation détaillée des impacts sur l’environnement, les mesures de gestion et d’atténuation de ces impacts et un rapport de la consultation publique. Avant l’octroi de l’approbation finale, le ministre de l’environnement à la possibilité de soumettre un projet à un tribunal pour la tenue d’audiences publiques ou de l’envoyer à un médiateur chargé de résoudre les conflits entre les promoteurs et les collectivités avoisinantes. Selon un porte-parole du ministère de l’Environnement de l’Ontario, Cliffs et Noront n’en sont qu’à l’étape initiale du processus d’évaluation environnementale. Cliffs a soumis le mandat, ou une description du projet, et Noront a soumis un plan au début de la présente année, mais est actuellement à le réviser.

Le devoir de consulter Il est tout aussi important de signer des ententes socioéconomiques avec plusieurs communautés autochtones dont les terres ancestrales subiront les impacts des projets de développement. Chaque Première nation parlent en son nom et il peut être difficile d’en arriver à un consensus, mais la bande de Marten Falls a signé une entente de prédéveloppement avec Cliffs et, au début de septembre, a signé un protocole d’entente avec le gouvernement de l’Ontario, qui établit les problèmes à résoudre. « L’infrastructure sera un des points de discussions, affirme le chef élu de la bande, Eli Moonias. La liaison à nos communautés est un autre point. Elle comprend l’accès routier et l’électricité. Nous voulons également discuter du partage des revenus. Nous voulons également nous assurer que ces projets ne transforment pas notre environnement en soupe de produits chimiques. » Marten Falls, une petite communauté Anishinaabe éloignée, située à environ 400 kilomètres au nord-est de Thunder Bay, est accessible par une route d’hiver ou par avion toute l’année et dépend de l’électricité produite par des génératrices diesels, car elle est située au-delà du réseau électrique de la province. La moitié des 650 résidents de la bande se sont dispersés ailleurs dans le pays à la recherche de travail ou d’une autre occasion. « Il n’y a pas d’emploi ici, affirme le chef Moonias. Les gens vivent de l’assistance sociale. Les conditions sociales sont mauvaises. Nous avons besoin de quelque chose pour nous sortir de la pauvreté. » Pour la population de Marten Falls et de plusieurs autres Premières nations, les projets de développement du cercle de feu ont le potentiel d’être ce dont ils ont besoin. Toutefois, jusqu’à présent, une Première nation s’est levée contre les projets en cours, car la communauté considère qu’il y a eu un manque de consultations approfondies. « Ils ne nous écoutent pas », affirme Peter Moonias, le chef de 67 ans de la Première nation Neskantaga, dont la population s’élève à 450 personnes. « Ils nous intimident. Ils croient que nous n’existons pas et que

nous n’avons aucun droit. Nous sommes une petite communauté, mais nous avons des droits. » La bande s’est vue frustrée dans ses tentatives de participer officiellement à la planification du développement du cercle de feu. Rick Bartolucci, le ministre ontarien du Développement du Nord et des Mines, affirme que le gouvernement provincial s’est engagé à tenir des consultations élargies avec toutes les communautés des Premières nations concernées pour s’assurer que les impacts économiques, sociaux, culturels et environnementaux potentiels soient pris en compte avant la mise en œuvre des projets. « Nous répondons par de nouvelles approches, complémentaires aux outils de réglementation existants, souligne Bartolucci. Nous avons accepté de discuter de partage des revenus. Nos discussions n’en sont encore qu’à la phase préliminaire, mais il s’agit d’un problème très important pour les Premières nations du cercle de feu. » Patricia Persico, directrice des communications de Cliffs, reconnaît que le rythme des discussions avec les différentes communautés des Premières nations est irrégulier. « Nous avons progressé avec certaines communautés des Premières nations pour nous aider à réaliser ce projet. Pour d’autres communautés, nous avons tendu la main aux chefs des communautés pour discuter du projet, mais nous devons recevoir l’invitation, explique-t-elle. Nous voulons être respectueux, il y a beaucoup en jeu. »

Un grand intérêt pour le développement Le gouvernement de l’Ontario tient à mettre ces projets sur pied et à amorcer le développement de la région. « Nous avons une occasion unique d’ouvrir le Grand Nord, affirme Bartolucci, nous voulons maximiser le potentiel du cercle de feu. » Un avancement important a eu lieu en mai lorsque Cliffs a annoncé que la fonderie serait construite à Capreol, ce qui a mis fin à la spéculation sur la possibilité de la construire ailleurs, aux États-Unis ou même au Québec, où le faible coût de l’électricité pourrait offrir un avantage en matière decoûts. « L’engagement de construire la mine et la fonderie offrira une énorme occasion d’emploi pour la population du nord de l’Ontario », affirme Bartolucci. Et, malgré ses inquiétudes, le chef Moonias de la nation Neskantaga reconnaît que sa communauté profiterait sans aucun doute d’une route toute saison et des lignes électriques, qui mettraient fin à leur dépendance à l’électricité produite à coût élevé par des génératrices diesels. Il fait remarquer qu’un pain coûte au moins 4,95 $ et que le prix peut augmenter considérablement à mesure que les stocks diminuent, sans oublier qu’un litre d’essence varie entre 2,19 $ et 2,79 $. « Ça n’a aucun sens de ne pas être lié au réseau », souligne-t-il. Noront tente de séduire activement les trois communautés les plus concernées par les projets du cercle de feu : Marten Falls, Webequie et Neskantaga. Noront et Cliffs ont tenu des réunions portes ouvertes dans les communautés des Premières nations de l’ensemble de la région. « Nous continuons de faire du progrès », dit Glenn Nolan, vice-président Affaires autochtones de Noront. Il ajoute qu’il n’a rencontré aucune November 2012 | 57

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opposition qui pourrait mettre en péril le projet de l’entreprise. Nolan est un ancien chef de la Première nation crie Missanabie, près de Wawa, en Ontario, ainsi qu’un vétéran de l’industrie minière anciennement propriétaire d’une entreprise qui approvisionnait en équipement des petits camps d’exploration. Il affirme plutôt que la population démontre un intérêt à participer. Ses discussions ont porté sur l’emploi, la formation et l’infrastructure qui offrirait à leur communauté un accès routier à l’année, de l’électricité moins chère et des connexions Internet rapides et fiables. « Ils cherchent des moyens de tirer le maximum de leur participation, explique Nolan. Vous voulez être témoins de ce désir de participer, le cercle de feu change la donne pour ces communautés. Dans le passé, nous n’avons pas réussi à obtenir un accès routier toutes saisons et une connexion Internet haute vitesse. »

La voie à suivre Les exigences en matière d’infrastructure pourraient être l’élément le plus complexe, parce que les entreprises concernées ont des points de vue divergents sur ce qui devrait être construit, sur qui devrait assumer le coût et, finalement, sur qui serait propriétaire et responsable de l’entretien. Une route pourrait également servir de couloir de passage des services publics afin d’apporter l’électricité dans les mines. Les Premières nations aimeraient que des embranchements soient construits depuis une route principale jusqu’à leur communauté ainsi que des lignes électriques pour alimenter leur communauté en électricité. Noront et certaines communautés des Premières nations ont préconisé une route est-ouest qui serait en fait un prolongement de la route provinciale 559 qui sillonne le nord depuis Ignace sur la route transcanadienne, à environ 225 kilomètres à l’ouest de Thunder Bay, jusqu’à Pickle Lake, puis plus au nord jusqu’à Windigo Lake. Une route d’hiver de 200 kilomètres se rend actuellement vers l’est jusqu’à la Première nation Webequie et Noront a fait valoir l’idée de la convertir en route toutes saisons. Toutefois, la route qui se profile actuellement est une route nord-sud de 340 kilomètres qui commencerait à Nakina ou à proximité de Nakina sur la voie du CN et se terminerait à McFaulds Lake. Bruce Hodgman, vice-président, communications de KWG Resources, affirme que son entreprise a jalonné une bande de sable et d’agrégats plus grossiers qui parcourt la quasi-totalité de la voie du CN jusqu’à McFaulds Lake. L’entreprise, qui est propriétaire minoritaire du projet Big Daddy, a dépensé près de 15 millions de dollars en études techniques qui ont démontré la viabilité d’utiliser cette bande comme remblai de voie ferrée. Le gouvernement provincial a déjà exprimé son engagement à participer au financement de la route privée de type utilisateur-payeur. « L’axe nord-sud est presque parfait, affirme Hodgman. Nous avons de la chance que cette route très directe existe. Il faut de l’agrégat pour construire une route et il faut des sources locales car le transport de l’agrégat n’est pas économique. Il y a des marais des deux côtés de la bande. » 58 | CIM Magazine | Vol. 7, No. 7

Même avec tout cet agrégat, la construction sera difficile. Il y a plus de 90 passages de cours d’eau le long de la route nordouest et la plupart peuvent être pourvus d’un ponceau. Il y a toutefois quatre rivières à traverser et il faudra construire plusieurs ponts. La difficulté physique de créer un couloir de transport est aggravée par la relation tendue entre KWG Resources Inc. et Cliffs, partenaires du projet Big Daddy. Cliffs a fait une demande de servitude au ministère des Richesses naturelles de l’Ontario pour avoir l’autorisation de construire une route le long de la bande, mais KWG s’oppose à la demande avec

À feu doux Le cercle de feu éprouve les ressources des explorateurs de minéraux Par Eavan Moore

En termes géologiques, on trouve de quoi intéresser tout le monde dans la région de le Cercle de feu. Depuis que De Beers a découvert en 2002 un important amas sulfuré volcanogène riche en cuivre et en zinc à Eagle One, les explorateurs ont découvert des groupes élémentaires de chromite, de nickel, d’or, de vanadium, de fer et de platine à l’intérieur et aux alentours de l’amas réputé de concessions en forme de croissant. Mais l’important investissement en argent et en patience qu’exige l’exploitation du grand nord de l’Ontario force les petites sociétés d’exploration à attendre tandis que deux projets miniers promettent d’ouvrir cette terre inaccessible au développement futur. Les deux poids lourds de la région, Cliffs Natural Resources et Noront Resources, prévoient maintenant faire passer leurs projets à l’action. Mais ces projets ne se contribuent pas à éveiller l’intérêt des les explorateurs. « Au point où nous en sommes dans le cycle, nous ne voyons pas beaucoup de nouvelles se développer, » souligne Garry Clark, directeur exécutif de l’association Ontario Prospectors. Et l’environnement d’investissement actuel est si sec, ajoute-t-il, que même des résultats de forage impressionnants ne semblent pas émouvoir les marchés. L’exploration dans le Cercle de feu (qui se trouve à 300 km de la route ou du chemin de fer les plus près) exige beaucoup d’argent. Michael Murphy, porte-parole de la petite société d’exploration White Pine Resources, résume les chiffres : « Les coûts du forage au diamant se situent à environ 750 $ par mètre pour un petit programme de forage. Cela se compare à une évaluation historique des

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LE CERCLE DE FEU le Commissaire aux mines et aux terres provincial. KWG favorise plutôt une voie ferrée au coût estimé de 2,2 milliards de dollars, soutenant qu’il s’agit de la meilleure solution à long terme en matière d’infrastructures. « Une route est la première étape logique, réplique Persico de Cliffs. Elle ajoute qu’à « long terme nous aimerions voir une infrastructure ferroviaire dans le Cercle de feu, mais le coût est prohibitif et ne peut être justifié par un seul projet. » Chose certaine, KWG fera tout le nécessaire pour mettre en œuvre le projet Big Daddy dès que possible. « En fin de compte, dit Hodgman, nous croyons qu’il y a une solution satisfaisante pour tous les intervenants. » Toutefois, Cliffs

prévoit d’abord exploiter son gisement Black Thor, dont elle est propriétaire à 100 pour cent. Ils ont élaboré des plans pour 2 mines à ciel ouvert, chacune avec une durée de vie de 10 à 15 ans, avant de passer à l’exploitation souterraine. Pendant ce temps, le projet Big Daddy serait mis de côté. En septembre, Cliffs a repoussé la date de production prévue du projet Black Thor en 2016. Le projet demeure une priorité pour l’entreprise, mais la décision démontre comment l’ouverture d’une nouvelle frontière en exploitation minière exige non seulement de l’ambition et de l’ingéniosité, mais également de la patience. ICM

coûts dans les camps miniers de l’Ontario et du Québec qui se situerait autour de 150 $ par mètre. » L’an dernier, une entreprise a dépensé 1 million $ sur un forage de 1 000 mètres, selon James Trusler, président et chef de la direction de Platinex. Le temps et l’argent qu’exige la mise en place de relations efficaces avec les Premières Nations représente un autre obstacle. John Harvey, membre de l’équipe qui a découvert Eagle One et désormais chef de l’exploitation de Bold Ventures, estime qu’il s’agit du plus grand problème pour les explorateurs qui cherchent à obtenir un droit d’exploitation dans les basses terres de la Baie James. « Nous avons mis 18 mois à développer un accord avec Attawapiskat, » indique-t-il. « La plupart des entreprises préfèrent ne pas s’y engager. Elles ne peuvent pas obtenir de garantie qu’elles pourront demeurer dans la région assez longtemps. » En résultat, le nombre de titulaires de concessions diminue. À un moment en 2011, 35 entreprises détenaient 30 000 concessions dans la région de le Cercle de feu. En août 2012, on ne comptait plus que 21 entreprises qui tenaient 16 435 concessions. De ces 21 entreprises, certaines maintiennent des activités d’exploration. En 2012, Cliffs et KWG Resources ont foré plus loin dans leur dépôt de chromite Big Daddy, ce qui a permis une mise à jour de l’évaluation mesurée de ressources à 29,5 millions de tonnes titrant 29 pour cent de chrome, et d’établir une évaluation des ressources indiquées de 7,9 millions de tonnes titrant 26,7 pour cent de chrome. Northern Shield Resources et Discovery Harbour Resources Corp. ont croisé une importante minéralisation cuivre-zinc à leur propriété de Wabassi, où l’on trouve notamment des teneurs en zinc pouvant atteindre 44,74 pour cent. MacDonald Mines Exploration Inc. a conclu une campagne de forage estivale sur sa propriété de Butler avec une meilleure définition d’une imposante minéralisation sulfurée volcanogène de classe mondiale. En tout, on prévoit une augmentation des dépenses d’exploration qui se situaient à plus de 50 millions $ en 2011, pour atteindre plus de 80 millions $ en 2012. « Le potentiel de le Cercle de feu est énorme, » indique Quentin Yarie, vice-président senior de l’exploration chez MacDonald Mines, pour expliquer la raison pour laquelle sa

société demeure engagée dans la région depuis neuf ans. « À la vue de la quantité de minéraux qui y ont été découverts (chrome, nickel, or, argent, cuivre, zinc, platine, palladium, et cetera) et avec l’engagement du gouvernement de l’Ontario dans le développement de la région, il est clair que nous sommes témoins de la naissance d’un nouveau camp minier au Canada. Aucun district n’est exempt de défis, mais le Cercle de feu offre un potentiel de succès en tant que l’un des camps vraiment sous-explorés au Canada. » Il ajoute : « Comme il n’y a pas d’affleurement dans le Cercle de feu, dans un premier temps, le ciblage se fera par des études géophysiques aériennes et de terrain. Depuis 2004, l’industrie a été témoin d’avancées importantes dans ces technologies, qui ont grandement contribué aux procédés d’exploration dans la région. » D’autres sociétés choisissent de ne privilégier que la détection à distance, afin d’en faire le moins possible pour tenir leurs concessions en liste, jusqu’à ce que l’infrastructure et les relations avec les communautés s’améliorent. Platinex a diminué ses propriétés des deux tiers, a procédé à une étude aérienne pour conserver les autres concessions pendant quatre ou cinq années supplémentaires, et s’est concentré sur ses propriétés aurifères de South Timmins dans l’espoir de revenir au nord pour y trouver du platine. La durée de l’attente dépend en grande partie du rythme auquel les infrastructures seront développées pour le développement de Cliffs. Pour transporter le concentré de son projet Black Thor, Cliffs prévoit bâtir une route permanente toutes saisons pour rejoindre le point de branchement du CN le plus près, situé à 260 kilomètres au sud. Les discussions préliminaires indiquent que la province de l’Ontario pourrait contribuer financièrement et que la route sera disponible aux autres utilisateurs moyennant des frais. Ces projets les plus avancés dans le Cercle de feu risquent fort de continuer de donner le ton aux négociations avec les Premières Nations également. Entre-temps, la prochaine génération d’explorateurs devra attendre son heure en survolant des cartes de concessions et les plus récentes données de la Société géologique de l’Ontario à la recherche de l’endroit précis parmi les 5 000 kilomètres carrés de le Cercle de feu où elle pourrait faire fortune. ICM Traduit par SDL November 2012 | 59

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project proﬁle | E A G L E ’ S N E S T

NEST EGG When junior mining company Noront Resources discovered a high-grade nickel sulphide deposit in northern Ontario – one of the most exciting nickel discoveries in decades – it triggered a staking rush in the region now known as the Ring of Fire. Five years later, Noront plans to set another precedent, becoming the first producer in the emerging mining district.

BY CORREY BALDWIN

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B En français p. 64

RING OF FIRE he Eagle’s Nest site, situated in the wetlands of the James Bay Lowlands, first appeared problematic to develop: the lack of exposed bedrock posed obvious logistical and environmental challenges. Noront’s solution was to develop a subsurface mine plan in which much of the milling facilities would be housed in a series of underground chambers. “We have a unique situation,” says Paul Semple, Noront’s COO, “and I think we’ve come up with an innovative solution.” For Eagle’s Nest, the subsurface mine plan is possible because of the high competency of the subsurface waste rock – a granodiorite – that is much stronger than concrete and can support large open chambers. The chambers themselves will vary in size, with the largest spanning 16 metres. The waste rock created by these excavations will be used for roads, concrete and foundations for a base camp. Producing its own aggregate also allows Noront to control certain logistical and economic risks. “It just made common sense on a lot of fronts,” says CEO Wes Hanson. “Ultimately, I think it’s going to be a cheaper means of construction.” Making larger underground chambers is much less expensive than transporting construction materials by plane or winter road; fewer materials are needed, and much of it is already on site. “The milling equipment is generally anchored to bedrock,” explains Hanson, “so either you’re going to excavate the soft surface material down to bedrock – between three metres and 20 metres – or drive piles down to bedrock. And that can be a very expensive process. We’ve avoided that whole area of uncertainty by putting the significant loads underground.” Noront will also save additional operating costs with the underground mill running in a constant temperature environment. Total mine operating costs over the life of the underground mine will be $1 billion, or $97 per tonne of ore.

A textbook deposit Eagle’s Nest is set to be one of the world’s lowest cost nickel mines, thanks in large part to the deposit itself, as it is a sulphide, rather than a laterite, deposit. “The lowest cost producers around the world have been the sulphide miners,” points out Semple. “And I think this is one of the great undeveloped nickel sulphide deposits anywhere in the world.” Although nickel sulphides account for the majority of nickel mined to date, these reserves are quickly being depleted. Most new mines around the world are tapping laterites, which, though more abundant, are proving to be challenging to produce nickel from. “The sulphide technology has been used for a long time,” says Semple. “It has none of the growing pains seen in laterite deposits.” The shape of the deposit is particularly ideal as well; it is pillarshaped and nearly vertical, roughly 200 metres long and 60 metres across. “If you were to give a first-year underground engineering student an assignment to draw a perfect underground mine,” says Hanson, “they’d probably draw something that looks very much like Eagle’s Nest.” The deposit’s geometry, along with the high competency of the surrounding rock, allow for a straight-forward mine plan and conventional vertical bulk mining techniques, using blasthole stoping. “The bigger challenge,” says Hanson, “is arranging the underground chambers so that work in the mine doesn’t impact work in the Noront aims to begin production at Eagle’s Nest in 2016. Courtesy of Noront Resources

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project proﬁle | E A G L E ’ S N E S T PROJECT SPECS

MINERAL RESERVE Proven Probable

KILOTONNES 5,264 5,867

NI(%) 2.02 1.38

CU(%) 1.04 .72

INITIAL CAPEX: $609 million* LIFE OF MINE: 11 years* MINING METHOD: Blasthole sublevel stoping PLANT THROUGHPUT: 3,000 t/d PRODUCTION: 150,000 t/y nickel/copper concentrate POWER: Diesel generated

PD(G/T) 3.45 2.76

OPERATING COST: $97/tonne*

*estimates

While it is not uncommon for mines to turn some of their tailings into backfill, Eagle’s Nest will be the first to store the entire volume of their tailings underground. “We’re hoping to establish a model mine for the future,” says Hanson. According to Hanson, the long-term outlook for nickel is A low profile On the surface, the only visible signs of the Eagle’s Nest positive, even though it is currently not very bullish. “You’re project will be a year-round airstrip, a base camp, and a num- starting to see large super-projects come on stream, which is ber of support and storage buildings, all of which will occupy one of the reasons why supply and demand are in lockstep less than 50 hectares. “We’ll have one of the smallest environ- right now,” he explains. Analysts predict demand will outmental footprints of any underground mine in the world,” strip supply, raising prices by 2015 in time for the beginning highlights Hanson. “It’s one of the things that we are proud of.” of production at Eagle’s Nest. “The long term looks great,” Noront will be recycling its tailings underground as says Hanson, “because aside from Eagle’s Nest, there’ve been cement-paste backfill, removing the need for a surface tail- no significant new discoveries of nickel made in the world in ings impoundment area. Additional waste rock will be mined the last 20 years.” to construct the airstrip and roads, as not enough will be Total Measured and Indicated Reserves at Eagle’s Nest are recovered from the underground mill chambers, which will 11 Mt (1.78 per cent nickel, 0.98 per cent copper, along with significant platinum and palladium mineralization). result in open waste rock stopes that can house tailings. The project will use a 3,000 tonnes per day conventional nickel flotation circuit to produce a concentrate containing roughly 10 per cent nickel and 5.7 per cent copper. The deposit, explored to 1,600 metres, remains open at depth, meaning there is excellent potential for Noront to extend Eagle’s Nest’s production life, which is currently pegged at 11 years. Noront holds additional properties in the region consisting of 466 claims over To get around the poor building conditions at 101,744 hectares. “We’ve invested somethe surface, Noront will install much of the processing circuit underground. where in the range of $150 million so far into the Ring of Fire,” says Hanson, “and in return for that, we have not one but two viable ore bodies – our nickel-sulphide at Eagle’s Nest and our chromite discovery at Blackbird.” Noront has already identified over a billion pounds of nickel. Chromite discoveries in the region have already positioned Canada in the top five countries for that commodity worldwide. Adding to this growing success are recent announcements indicating potential for mill.” The crushing, grinding and flotation circuits of the milling process must be isolated from the rest of the underground workings.

Photo courtesy of Noront Resources

PT(G/T) 1.01 .78

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Courtesy of Pincock, Allen and Holt

RING OF FIRE

The operation will use blasthole stoping to mine the vertical sulphide deposit.

volcanogenic massive sulphide systems, such as copper-zinc. And yet only a fraction of the Ring of Fire has been explored. “All of these factors combined indicate to me that this is a very special region,” says Hanson. “I’ve never seen a mineral district that’s developed as quickly, or has offered so much profitable high-grade mineralization, in such a short period of time.”

The community infrastructure Noront will employ around 1,000 workers during the construction phase and 400 to 500 during production – a potential boon to local Aboriginal communities. Much of the required training will be provided by Confederation College, which is based out of Thunder Bay with several regional campuses. “They’ve been doing community-based programming with these communities for a long time,” says Leanne Hall, the company’s vice-president of human resources. “They are with us every step of the way, as we do our workforce planning, and help with all of our training and development needs.” Diversity in the workforce will be key for Eagle’s Nest, admits Hall, who acknowledges that significant unemployment in remote fly-in communities remains a major challenge. “We’re trying to maximize training opportunities, so that people who train with us during the construction phase can transition to full-time operations, and also so that they have other opportunities, whether working for their own businesses or communities. It’s the concept of building a local productive workforce not only for Noront’s project but for northwestern Ontario,” says Hall. Programs set up by Noront include training and community entrepreneurship, summer youth camps, a stay-in-school initiative, and a bursary, scholarship, and mentorship program geared to youth and students. Noront is also working with Aboriginal groups and communities on economic developments. “There are numerous

Courtesy of Noront Resources

businesses that will need to be created to support our development, and those opportunities are being presented to the First Nation communities first. This will be a gamechanger for northern communities, since they will be given the opportunity to run and operate their own communitybased businesses,” says Hall. CIM

The road ahead Despite its economic potential, access to the Ring of Fire remains limited, with a plan for a transportation corridor only agreed upon recently. For Hanson, the government has a duty to participate in such vital infrastructure: “My viewpoint is simply that government’s role in society is to build infrastructure that’s to the benefit of all society.” A lack of infrastructure restricts mining activity in remote areas, where an all-season transportation corridor can be vital to the start of operations. “You see a similar type of problem in northern Quebec,” remarks Hanson, “but the Quebec government has been very successful in funding highway-building and road-building to access some of the mineral wealth there. You see it in every other province in Canada, with the real exception being Ontario.” Junior mining companies in the Ring of Fire have already taken the lead – and the risk – by investing $400 to $500 million into their collective projects, says Hanson. “Ontario has realized benefits from that investment already. It’s only fair to re-invest part of that back into infrastructure development.” In mid-September, the Ontario government agreed to cofund a north-south transportation corridor, proposed by Cliffs Natural Resources. Noront had proposed an eastwest corridor (a north-south corridor being its alternative choice) and could not complete some elements of its feasibility study until the government made a decision. The recent agreement means Noront will be able to adjust its numbers appropriately and release its feasibility study. “As more discoveries are made in the Ring of Fire,” comments Hanson, “you’re going to see even more reasons to have government participation in developing infrastructure.”

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projet en vedette | E A G L E ’ S N E S T

Courtoisie de Noront Resources

Noront anticipe le début de la production de Eagle’s Nest en 2016.

RICHESSE NORDIQUE PAR CORREY BALDWIN

orsque la petite société minière Noront Resources a découvert un gisement de sulfures nickélifères à haute teneur dans le Nord de l’Ontario – l’une des découvertes de gisement de nickel les plus emballantes en quelques décennies – cela a déclenché une ruée dans la région maintenant appelée le cercle de feu. Aujourd’hui, cinq ans plus tard, Noront prévoit de créer un autre précédent en devenant le premier producteur dans ce secteur minier émergent. De prime abord, le gisement Eagle’s Nest, situé dans les basses terres humides de la baie James, semblait problématique, puisque la faible étendue de substrat rocher exposé posait des enjeux logistiques et environnementaux évidents. La solution de Noront portait sur l’élaboration d’un plan d’exploitation souterraine dont la plupart des installations d’extraction seraient comprises dans une série de salles sous terre. « La situation est exceptionnelle et je crois que nous avons trouvé une solution novatrice », affirme Paul Semple, chef de l’exploitation de Noront. Dans le cas d’Eagle’s Nest, l’élaboration d’un plan d’exploitation souterraine est possible en raison de la rigidité élevée de la roche stérile sous la surface, la granodiorite, qui est plus résistante que le béton et peut soutenir de grandes salles souterraines ouvertes. Les salles seront de tailles diverses, mais leur dimension n’excédera pas 16 mètres.

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Les amas de roches stériles extraites seront utilisés pour la construction de routes, d’ouvrages de béton et de fondations du camp de base. Le fait de produire son propre agrégat permet également à Noront de gérer certains risques économiques et touchant la logistique. « Cela semblait logique à bien des égards », indique Wes Hanson, président-directeur général. « En fin de compte, je crois qu’il s’agit d’un mode de construction plus abordable. » Le coût associé aux salles souterraines plus vastes est beaucoup moins élevé que le coût de transport des matériaux de construction par avion ou par route d’hiver; moins de matériaux sont nécessaires et de grandes quantités sont déjà au chantier. « En règle générale, le matériel d’extraction est ancré dans le substrat rocheux », explique M. Hanson. « Il faut donc creuser le sol meuble – à une profondeur entre 3 et 20 mètres – ou enfoncer des pieux jusqu’au substrat rocheux. Et ce processus peut se révéler très coûteux. Nous avons évité ce domaine d’incertitude en mettant les charges importantes sous terre. » Noront réalisera des économies supplémentaires en exploitant ses installations d’extraction souterraines à température constante. Les coûts d’exploitation globaux pour la durée de vie de la mine souterraine s’élèveront à 1 G$, soit 97 $ par tonne de minerai.

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LE CERCLE DE FEU DONNÉES TECHNIQUES DU PROJET

RÉSERVE MINÉRALE Prouvée Probable

KILOTONNES 5 264 5 867

NI(%) 2,02 1,38

CU(%) 1,04 0,72

PT(G/T) 1,01 0,78

PD(G/T) 3,45 2,76

INVESTISSEMENT INITIAL : 609 M$*

CAPACITÉ DE PRODUCTION : 3 000 t/jour

DURÉE DE VIE DE LA MINE : 11 ans*

PRODUCTION: 150 000 t/an de concentré nickel-cuivre

COÛT D’EXPLOITATION : 97 $/tonne*

ALIMENTATION ÉLECTRIQUE : produite par le diesel

MÉTHODE D’EXPLOITATION : abattage par sous-niveaux

*estimations

Un gisement modèle Eagle’s Nest fera partie des mines productrices de nickel dont le coût de production sera le moins élevé au monde, et ce, en grande partie grâce à la nature du dépôt minéral qui est sulfuré, et non composé de latérites. « Les producteurs ayant les plus bas coûts d’exploitation au monde sont des sociétés qui extraient des minéraux sulfurés », indique M. Semple. « Et je suis d’avis qu’il s’agit de l’un des gisements de sulfures nickélifères non exploités les plus importants à l’échelle mondiale. » Bien que le nickel extrait à ce jour provienne des gisements de sulfures nickélifères, ces réserves s’épuisent rapidement. La plupart des nouvelles exploitations minières dans le monde extraient des latérites; celles-ci sont plus abondantes, mais il s’avère plus complexe de produire du nickel à partir de ces roches. « Il y a longtemps que la technologie pour les gisements de sulfures est utilisée », poursuit M. Semple. « Elle ne présente aucun des “maux nécessaires” associés à la technologie relative aux gisements de latérites. » De plus, la forme du gisement semble particulièrement idéale; il s’agit d’une colonne quasi verticale d’une largeur approximative de 60 mètres et dont la longueur atteint environ 200 mètres. « Si vous demandez à un étudiant de première année en génie souterrain de vous dessiner une mine souterraine parfaite, il vous présenterait probablement une image qui ressemblerait au gisement Eagle’s Nest », affirme M. Hanson. La configuration du gisement ainsi que la rigidité élevée de la roche environnante permettent l’élaboration d’un plan d’extraction simple et l’adoption de techniques d’extraction verticale en masse traditionnelles, par abattage par sous-niveaux. « Le principal défi tient dans l’aménagement de salles souterraines afin que les travaux dans la mine ne nuisent pas aux activités de l’usine de concentration », explique M. Hanson. Les circuits de concassage, de broyage et de flottation du procédé de concentration doivent être isolés des autres travaux souterrains.

Respect de l’environnement À la surface, les seuls signes visibles du projet Eagle’s Nest seront l’aménagement d’une piste d’atterrissage ouverte toute l’année, d’un camp de base et de multiples bâtiments connexes et d’entreposage, qui occuperont moins de 0,5 km2 (50 ha). « Parmi toutes les mines souterraines dans le monde, notre

projet comptera l’une des plus petites empreintes écologiques », souligne M. Hanson. « Voilà l’un des éléments dont nous sommes fiers. » Noront recyclera ses résidus en les utilisant comme remblai à pâte cimentée dans les installations souterraines, ce qui éliminera la nécessité des dépôts de résidus miniers en surface. Puisque la quantité de déblai provenant des salles d’extraction souterraines sera insuffisante, d’autres résidus miniers seront extraits pour construire la piste d’atterrissage et les routes, ce qui créera des cavités d’abattage pouvant contenir les résidus. Il est fréquent que les carrières récupèrent leurs résidus pour produire du remblai, mais Eagle’s Nest sera le premier gisement à stocker l’ensemble de ses résidus sous terre. « Nous souhaitons mettre sur pied une mine qui servira de modèle à l’avenir », dit M. Hanson. À son avis, les perspectives à long terme de la consommation du nickel sont favorables, même si la tendance actuelle n’est pas celle d’un marché haussier. « Nous avons commencé à constater la mise en service de grands mégaprojets, ce qui explique l’équilibre entre l’offre et la demande », explique M. Hanson. Les analystes prédisent que la demande dépassera l’offre et que les prix augmenteront d’ici 2015, coïncidant ainsi avec le début de la production d’Eagle’s Nest. « Les perspectives à long terme sont excellentes puisqu’aucune autre importante réserve de nickel, sauf le gisement d’Eagle’s Nest, n’a été découverte ailleurs dans le monde au cours des 20 dernières années. » Les réserves mesurées et indiquées globales du gisement d’Eagle’s Nest s’élèvent à 11 millions (1,78 pour cent de nickel, 0,98 pour cent de cuivre et une minéralisation en platine et en palladium non négligeable). Dans le cadre de ce projet, les travailleurs utiliseront un circuit de flottation du nickel traditionnel de 3 000 t/jour afin de produire un concentré contenant environ 10 pour cent de nickel et 5,7 pour cent de cuivre. Le gisement, dont le forage a atteint 1 600 mètres, est encore ouvert en profondeur; cela signifie qu’il existe un fort potentiel pour prolonger la durée de production d’Eagle’s Nest, actuellement établie à onze ans. Noront possède aussi d’autres propriétés dans la région, soit 466 concessions couvrant 1 017,44 km2 (101 744 ha). « À ce jour, nous avons investi environ 150 M$ dans la région du cercle de feu », indique M. Hanson. « En retour, nous avons obtenu non pas un, mais November 2012 | 65

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deux corps minéralisés viables, soit le gisement de sulfures nickélifères d’Eagle’s Nest et notre gisement de chromite de Blackbird. » Par ailleurs, Noront a recensé plus d’un milliard de livres de nickel. Grâce à la découverte de gisements de chromite dans la région, le Canada figure maintenant parmi les cinq principaux pays producteurs de ce minerai au monde. De récentes annonces au sujet du potentiel de découverte de gîtes de sulfures massifs volcanogènes, notamment de type cuivre-zinc, viennent renforcer ce succès grandissant. Et pourtant, seule une infime partie du cercle de feu a été explorée. « Tous ces facteurs réunis me démontrent qu’il s’agit d’une région tout à fait particulière », raconte M. Hanson. « Je n’ai jamais eu connaissance d’un district minéral dont l’exploitation a été si rapide ou qui a offert une minéralisation à teneur élevée si rentable, et ce, en si peu de temps. »

Infrastructure communautaire Noront emploiera environ 1 000 travailleurs au cours de la phase de construction, puis entre 400 et 500 travailleurs lors de la production – possible bienfait pour les collectivités autochtones et des Premières Nations de la région. La majorité de la formation requise sera offerte par le Confederation College, situé à Thunder Bay et comptant plusieurs campus régionaux. « Le collège offre des programmes axés sur ces collectivités depuis longtemps », explique Leanne Hall, viceprésidente des Ressources humaines de l’entreprise. « Il nous soutient à chaque étape du processus lorsque nous planifions la main-d’œuvre et nous aide avec l’ensemble de nos besoins en matière de formation et de perfectionnement. » La diversité de la main-d’œuvre sera essentielle à Eagle’s Nest, selon Mme Hall, qui reconnaît que le taux de chômage important dans des collectivités éloignées desservies par avion demeure un défi de taille. « Nous tentons d’optimiser les occasions de formation afin que les gens qui se perfectionnent avec nous lors de la phase de construction puissent occuper ensuite des postes à temps plein au sein de l’exploitation. Nous souhaitons aussi qu’ils en tirent profit pour travailler dans leurs propres entreprises et leurs collectivités. Il s’agit de bâtir une main-d’œuvre productive, non seulement pour le projet de Noront mais pour l’ensemble du nord-ouest de l’Ontario. » Les programmes mis sur pied par Noront englobent la formation et l’entrepreneuriat communautaire, des colonies de vacances pour les jeunes, une initiative pour la persévérance scolaire, une bourse et une bourse d’études, ainsi qu’un programme de mentorat axé sur la jeunesse et les étudiants. De plus, Noront travaille avec les groupes et collectivités autochtones pour favoriser le développement économique. « Il faudra créer de nombreuses entreprises pour soutenir notre expansion et les occasions qui y sont associées sont d’abord présentées aux collectivités des Premières Nations. Cela représente une possibilité exceptionnelle pour les communautés du Nord, puisqu’elles auront la possibilité d’exploiter et de gérer leurs propres entreprises axées sur la collectivité », affirme Mme Hall. ICM Traduit par SDL 66 | CIM Magazine | Vol. 7, No. 7

Courtoisie de Noront Resources

projet en vedette | E A G L E ’ S N E S T

La voie devant nous En dépit de son potentiel économique, la région éloignée du cercle de feu est difficilement accessible et une entente visant un plan pour un corridor de transport n’a été convenue que récemment. Pour M. Hanson, le gouvernement a le devoir de participer dans ces infrastructures essentielles : « À mon avis, le rôle du gouvernement au sein de la société est de bâtir des infrastructures qui profitent à l’ensemble de la société. » Les infrastructures insuffisantes limitent l’activité minière dans les régions éloignées, où un axe de transport permanent peut s’avérer crucial pour le démarrage de l’exploitation. « Nous observons le même type de problème au nord du Québec, mais le gouvernement provincial a financé la construction d’autoroutes et de voies publiques dans cette région afin de favoriser l’accès des richesses minières. Il en est de même dans les autres provinces canadiennes, à l’exception de l’Ontario. » Les petites sociétés minières présentes dans le cercle de feu donnent d’ores et déjà l’exemple – et assument le risque – en investissant entre 400 et 500 M$ dans leurs projets collectifs, selon M. Hanson. « L’Ontario profite des bienfaits de cet investissement. C’est la moindre des choses de réinvestir une partie des retombées dans la construction d’infrastructures. » À la mi-septembre, le gouvernement de l’Ontario a accepté de cofinancer un corridor de transport nord-sud, proposé par Cliffs Natural Resources. Noront a proposé un corridor est-ouest (l’axe nord-sud étant une option de rechange), mais ne pouvait produire certains éléments de son étude de faisabilité jusqu’à ce que le gouvernement prenne une décision. La récente entente signifie que Noront pourra modifier ses données financières en conséquence et publier son étude de faisabilité. « Avec les découvertes qui se multiplient dans le cercle de feu, nous constaterons d’autant plus de raisons justifiant la participation du gouvernement dans la mise en place d’infrastructures. »

François Jacob

067-068 Special Report on QC smaller pages v4_page 2 2012-10-30 11:39 AM Page 67

DOSSIER SPÉCIAL SPECIAL REPORT Son passé historique et son potentiel pour l’avenir rendent le Québec l’une des juridictions minières de premier ordre au monde. Avec des projets prometteurs à l’horizon et un changement de climat politique en cours, nous examinons de près ce qui se dessine dans les développements dans la Belle Province. Its storied past and potential for the future make Quebec one of the world’s premier mining jurisdictions. With promising projects on the horizon and a change of political climate, we take a close look at what is shaping future development in La Belle Province. À L’INTÉRIEUR / INSIDE: 1

L’Exploration des hydrocarbures Fossil fuel exploration

Graphiques – le passé et le futur mis en perspective Infographic – past and future in perspective

Enjeux autochtones Aboriginal issues

La croissance des fournisseurs Supplier growth

Voix d’un vétéran Veteran voice

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L’exploration d’hydrocarbures au Québec

DOSSIER SPÉCIAL SPECIAL REPORT

François Jacob

Le règne de l’incertitude

Transport d’équipement par hélicoptère, pendant les sondages sismiques de la société Junex, dans le centre-sud de l’île. À la mi-septembre, près de 4 000 détonations avaient été menées dans les couloirs de 224 kilomètres défrichés par Junex. A helicopter brings equipment to seismic survey lines in August 2012. By mid-September, Junex had carried out nearly 4,000 detonations on the 224-km lines it had cleared out.

Fossil fuel exploration in Quebec Uncertainty rules par by

Antoine Dion-Ortega

ans les deux dernières années, une série de décisions politiques ont considérablement réduit la marge de manœuvre des sociétés d’exploration, qui ont vu les portes se fermer une à une au point de rendre bien incertain l’avenir de leurs filières. D’abord, en septembre 2010, le gouvernement fermait définitivement la porte à l’exploration dans l’estuaire du Saint-Laurent et entreprenait aussitôt la deuxième partie de son évaluation environnementale stratégique (ÉES) sur la portion québécoise du golfe. Le rapport, attendu cet automne, pourrait bien recommander à Québec de tourner le dos à l’exploration du site Old Harry, un dôme de sel qui pourrait possiblement contenir un milliard de barils d’huile. Sur terre, la mise sur pied, en mai 2011, du comité de l’ÉES sur les gaz de schiste a eu pour effet de freiner tout à fait l’exploration gazière, les sociétés préférant attendre les recommandations du comité, prévues pour novembre 2013. En attendant que ces deux dossiers évoluent, certaines sociétés ont transféré leurs activités vers la filière pétrolière, en Gaspésie et sur l’île d’Anticosti. Mais là encore, la situation politique

Suite à la p. 72 68 | CIM Magazine | Vol. 7, No. 7

n the past two years, a number of political decisions have significantly reduced the room to maneouver for energy exploration companies in Quebec. They have watched as, one by one, the doors have been shut to the point where the future of their field is uncertain in the province. In September 2010, the government declared a permanent moratorium on exploration in the St. Lawrence Estuary and undertook the second part of its Strategic Environmental Assessment (SEA) of the Quebec portion of the gulf. Génivar, the engineering firm in charge of carrying out the SEA, is expected to release its report this autumn. It could recommend Quebec no longer permit oil exploration in the gulf, including on the Old Harry site, a salt feature that may host a billion barrels of oil. Furthermore, in May 2011, the Shale Gas Committee was established, bringing a halt to natural gas exploration. Exploration companies have preferred to wait for the committee’s recommendations, which are set to be released in November 2013. Until these issues are addressed, some companies have opted to shift Continued on p. 72

Projets d’infrastructure en cours | Infrastructure projects underway DE NOUVELLES LIGNES ÉLECTRIQUES VERS LE NUNAVIK

NEW POWER LINES TOWARDS NUNAVIK

Dans son budget 2012, le gouvernement du Québec prévoyait d’agrandir le réseau électrique d’Hydro-Québec vers le Nunavik à partir du complexe La Grande. Hydro-Québec investira jusqu’à 10 millions $ dans l’année à venir pour la cartographie, l’hydrométrie, et la topographie de la partie du Nunavik qui longe la rivière Caniapiscau, au nord-est de La Grande, afin d’identifier des cheminements possibles pour le transport de l’électricité.

In its 2012 budget, the Quebec government planned for an extension of Hydro-Québec’s power grid from its La Grande complex towards Nunavik. Hydro-Québec will invest up to $10 million in the coming year for mapping, hydrometry and topography of the Nunavik area along the Caniapiscau River, northeast of La Grande, in order to identify possible electricity transport routes.

Hydro-Quebéc collabore avec Oceanic Iron Ore Corp. depuis 2011 lorsque Hydro-Québec a commencé son évaluation en prévision d’une nouvelle ligne de transmission depuis le centrale Laforge 2 jusqu’à son projet Hopes Advance Bay au Nunavik. Hydro-Québec estime que la mine pourra rejoindre le réseau électrique en 2025, lorsque la ligne sera disponible. Aussi, Oceanic intégrera cette date butoir dans son étude de préfaisabilité. La mine commencera la construction et l’exploitation en 2017 avec un système d’électricité auto-générée.

Hydro-Quebéc has been engaged with Oceanic Iron Ore Corp. since 2011, when it began its evaluation for a new transmission line from the Laforge 2 generating station to the company’s Hopes Advance Bay project in Nunavik. The utility anticipates that the mine will connect to the power grid in 2025, when the line becomes available, a target that Oceanic will incorporate into its pre-feasibility study. The mine will commence construction and operations in 2017 using self-generated power.

LE CHEMIN QUI MÈNE À LA MINE ÉLÉONORE

que Virginia Mines ou Aurizon Mines pourraient bénéficier du nouveau chemin.

Goldcorp prévoit de construire un chemin de 60 kilomètres cette année afin de relier sa mine d’or Éléonore au chemin qui mène au centrale La Sarcelle, situé à quelques 600 kilomètres au nord de Val-d’Or. L’année dernière, la minière et le gouvernement du Québec ont engagé des pourparlers pour déterminer le financement de ce projet, qui coûtera 40 millions $. L’ancien premier ministre Jean Charest avait dit que la condition pour que le gouvernement participe au projet serait que le chemin desserve d’autres projets aussi. À terme, d’autres minières, telles

ROAD TO ELEONORE MINE

UNE LIAISON FERROVIAIRE INTÉGRÉE ENTRE LE PORT DE SEPTÎLES ET LA FOSSE DU LABRADOR Un groupe composé du CN, de l’investisseur institutionnel La Caisse de Dépôt et Placement du Québec, et de cinq compagnies minières s’est mis d’accord au mois d’août dernier pour lancer une étude de faisabilité sur une liaison de 800 kilomètres reliant le secteur au nord de Shefferville et PointeNoire, à Sept-Îles. La Caisse de Dépôt et Placement contribuera au financement de l’étude, comme prévu dans le budget du Québec 2012-2013. La liaison ferroviaire, dont le coût s’élèvera à 3 à 5 milliards $, pourrait être opérationnelle dès 2017. Cliffs Natural Resources, Labrador Iron Mines Holdings, New Millenium Iron Corp., Cap-Ex Ventures, et Alderon Iron Ore Corp.,

UN PORT EN EAU PROFONDE À WHAPMAGOOSTUI-KUUJJUARAPIK Le gouvernement étudie la faisabilité et la rentabilité d’un port en eau profonde à proximité de Whapmagoostui-Kuujjuarapik, et de la construction d’une liaison terrestre jusqu’à Radisson.

De plus, en décembre 2011, le ministère des Transports a publié une étude de préfaisabilité pour une ligne ferroviaire de 600 kilomètres reliant Shefferville et Kuujjuak, à l’extrême nord de la province. Le projet coûterait au moins 2,5 milliards $ en plus des coûts d’entretien annuels de 18 millions $.

INTEGRATED RAIL LINK BETWEEN THE PORT OF SEPT-ÎLES AND THE LABRADOR TROUGH

Annoncé dans le budget de l’an 2009 au Québec, le projet d’aménagement des routes, avec un coût prévu de 332 millions $, a pour but de relier la ville de Chibougamau au projet Renard de Stornoway Diamond Corporation situé près des monts Otish. Le prolongement de la route pourrait également bénéficier d’autres projets, tels que la propriété Matouche des Ressources Strateco et MacLeod Lake, contrôlé par Western Troy Capital Resources.

DEEPWATER PORT IN WHAPMAGOOSTUI-KUUJJUARAPIK The government is studying the feasibility and profitability of a deepwater port in Whapmagoostui-Kuujjuarapik, and of the construction of a land link to Radisson.

Les travaux d’aménagement de la route ont débuté en février 2012. Les travaux de prolongement en cours, gérés par le ministère des Transports du Québec, aboutiront à une route provinciale quatre-saisons de 243 km, revêtue de gravier, où la vitesse de la circulation sera limitée à 70 km/heure. Basé sur l’échéancier proposé, Stornoway prévoit d’être en mesure d’accéder au site avec les véhicules de construction de la mine en milieu d’année 2013. Au mois d’août de cette année, Stornoway et le gouvernement du Québec se sont mis d’accord pour partager les coûts du projet de prolongement de la route. L’entreprise contribuera 44 millions $ au

Chronologie des développements miniers | Timeline of mining developments

2013

BACHELOR

NUNAVIK NICKEL

BRACEMAC-MCLEOD

MATOUSH

Jien Canada Mining (Canadian Royalties)

Xstrata Zinc Canada

•• •

Strateco Resources Inc.

•

Strateco Resources Inc.

Durée: 7 ans | Life: 7 years

•

Les Mines Opinaca Ltée | ArcelorMittal Mines Canada Inc. Goldcorp Inc. Or | Gold Fer | Iron

Production: 750 t/jour | 750 t/day

Production: 220 Kt de concentré/an | 220 Kt of concentrate/year

Évaluation économique préliminaire complété avril 2010 | Preliminary economic assessment completed April 2010.

Production: Expansion à 24 Mt/an | Expansion to 24 Mt/year

Évaluation économique Étude de faisabilité 2010 | préliminaire complété avril Feasibility study, 2010. 2010 | Preliminary economic assessment completed April 2010.

GRANDE-VALLÉE

MONT WRIGHT, EXP. (LAC HESSÉ SECTOR)

Or | Gold

Production: 690 t/jour | 690 t/day

••

Nickel Cuivre | Copper

Durée: 10 ans | Life: 10 years Étude de faisabilité prévue 2012. | Feasibility study planned, Production: 2012. 100 Kt de concentré/an | 100 Kt of concentrate/year

RAGLAN: KIKIALIK (MINE NO. 4) Xstrata Nickel Canada

• •

Nickel Cuivre | Copper

Zinc Cuivre | Copper Argent | Silver

Durée: 4 ans | Life: 4 years

Construction d’infrastructures Étude de faisabilité août 2010 | pour l’exploitation de quatre Feasibility study August 2010. dépôts. | Construction of infrastructure for development of CREVIER four deposits.

Durée: 8 ans | Life: 8 years Étude de faisabilité 2008 | Feasibility study, 2008.

Les Minéraux Crevier Inc.

•

Niobium

Durée: 18 ans | Life: 18 years Production: 4 Kt par jour | 4 Kt/day Étude de faisabilité prévue 2012. | Feasibility study planned, 2012.

Recherche | Research: Antoine Dion-Ortega Graphisme | Graphics: Bruno Dubois

développement en faisant des versements échelonnés sur une période de 10 ans à partir de 2015. Elle s’est également engagée à contribuer jusqu’à 1,215 millions $ par année pour l’entretien de la route pendant toute la durée de l’exploitation de la mine du projet Renard – soit, une période de 20 ans selon les prévisions. D’autres partenaires pourront également être appelés à contribuer au financement et à l’entretien de cette infrastructure. Si le chemin sera réellement terminé au courant de l’année 2013 re ste incertain. Environ 37 pour cent de la route, qui se divise en quatre tronçons, a été complété, et les travaux sur les deux premiers tronçons sont bien avancés. Stornoway vise actuellement une mise-en-production commerciale en 2016.

ROUTE 167 EXTENSION PROJECT Announced in the 2009 Quebec budget, the $332-million road development project is designed to connect the city of Chibougamau to Stornoway Diamond Corp.’s Renard project, near the Otish Mountains. The road extension could also benefit other projects, such as Strateco Resource’s Matoush property and MacLeod Lake, controlled by Western Troy Capital Resources.

2014

Metanor Resources Inc.

•

800-kilometre rail link between the area north of Shefferville and Pointe-Noire, Sept-Îles. The Caisse de Dépôt et Placement will contribute financially to the study, as planned in the 2012-2013 Quebec budget. The $3 billion to $5 billion dollar rail link could begin operation in 2017. Cliffs Natural Resources, Labrador Iron Mines Holdings, New Millenium Iron Corp., CapEx Ventures, and Alderon Iron Ore Corp. have all agreed to participate in the study. Construction could begin in 2014. Also, the Ministry of Transportation published a pre-feasibility study in December 2011 for a 600-kilometre railway between Shefferville and Kuujjuak, in the extreme north of the province. The project would cost at least $2.5 billion, in addition to an annual $18 million maintenance cost.

Canadian National, institutional investor Caisse de Dépôt et Placement du Québec, and five mining companies agreed last August to launch a feasibility study for an

PROLONGEMENT DE LA ROUTE 167

Goldcorp is planning to build a 60-kilometre road this year connecting its Eleonore gold mine to the road that leads to the La Sarcelle power plant, 600 kilometres north of Val-d’Or. Last year, there were discussions between the mining company and the Quebec government about the financing of this $40 million project. Former Premier Jean Charest said the road would have to serve other projects if the government was to contribute. Other mining companies, such as Virginia Mines or Aurizon Mines, could eventually benefit from the new route.

2012

se sont tous engagés à participer à l’étude. Les travaux de construction pourraient débuter en 2014.

Uranium

Orbite Aluminae inc.

Uranium

Durée: 7 ans | Life: 7 years

•

ArcelorMittal Mines Canada Inc.

Production: 1 500 t/jour | 1,500 t/day

Production: Expansion à 24 Mt/an | Expansion to 24 Mt/year

Alumine | Alumina

Durée: 25 ans | Life: 25 years

Évaluation économique préliminaire complété avril 2012 | Preliminary economic assessment completed April 2012.

•

Fer | Iron

MONT WRIGHT, EXP. (PAULIS PEAK)

ÉLÉONORE

•

WESTWOOD Gestion Québec IAMGOLD

•

Or | Gold

Durée: 16 ans | Life: 16 years Production: 2 300 t/jour | 2,300 t/day Évaluation économique préliminaire complété décembre 2009 | Preliminary economic assessment completed December 2009.

Last August, Stornoway and the Quebec government agreed to share the bill for the road extension project. The company will contribute $44 million to its development, to be paid over a 10-year period, starting in 2015. It has also agreed to contribute a maximum of $1.215 million per year for road maintenance during Renard’s operation, expected to last 20 years. Other partners may also be called upon to contribute to the financing and maintenance of this infrastructure. It is still unsure whether the project will be completed in 2013. About 37 per cent of the road, which is divided into four segments, is complete, with its two first segments well advanced. Stornoway is currently aiming to begin commercial production in 2016.

2015 WHABOUCHI

FIRE LAKE

Nemaska Lithium Inc.

ArcelorMittal Mines Canada Inc. Champion Minerals Inc.

•

Lithium

Durée: 15 ans | Life: 15 years

Production: 3 Kt/jour | Production: 600 000 onces/an | 3 Kt/day 600,000 onces/year Évaluation économique Obtention d’un certificat d’autorisation globale pour travaux de construction. Signature d’une convention de collaboration avec les Cris, février 2011. | Overall authorization certificate for construction work obtained. Cooperation agreement signed with Crees, February 2011.

Work on the road began last February. The extension is being constructed as a 243 kilometre-long, 70 kilometre-per-hour, two-lane, all-season gravel-top, multi-service provincial highway by the Quebec Ministry of Transportation. Based on the proposed schedule, Stornoway anticipates first vehicle access to the Renard site for mine construction by mid-2013.

préliminaire complétée mars 2011. | Preliminary economic assessment completed, March 2011.

FIRE LAKE NORD

•

Production: 65 Kt/jour | 65 Kt/day

Production: 8,7 Mt de concentré/an | 8.7 Mt of concentrate/year

FOXTROT (RENARD)

Évaluation économique préliminaire novembre 2011. Étude de faisabilité prévue. | Preliminary economic assessment, November 2011. Feasibility study planned.

Fer | Iron

Durée: 35 ans | Life: 35 years

Stornoway Diamond Corporation (Canada)

•

Diamant | Diamonds

Durée: 20 ans | Life: 20 years Production: 6 Kt/jour | 6 Kt/day Étude de faisabilité publiée novembre 2011 | Feasibility study published, November 2011.

Fer | Iron

Durée: 40 ans | Life: 40 years

Dépenses en exploration et mise en valeur 2005-2007 (en M$) | Exploration and deposit appraisal expenditures 2005-2011 (in $M)

Répartition des frais d’exploration et de mise en valeur par substance, 2011 | Distribution of exploration and deposit appraisal expenditures by commodity, 2011

718

Sur un site minier / Brownfield

A utres substances | Other commodities

Hors d’un site minier / Greenfield

526

50,837 k$ D iamant | Diamond 19,808 k$ L ithium 25,280 k$ U ranium 30,679 k$ T erres rares | Rare earths 39,523 k$ M étaux usuels |

512

477 379 295

Base metals

4,006 k$ 92,287 k$ M étaux ferreux |

205

Ferrous metals

6,750 k$ 100,556 k$ M étaux précieux | Precious metals

2005 2006 2007 2008 2009 2010

2011

53,065 k$ 286,745 k$

2016 LAC À PAUL

MINE ARNAUD

Les Ressources d’Arianne inc. Mine Arnaud inc. (Canada Phosphate) Apatite Phosphate Durée: 30 ans | Life: 30 years Durée: 25 ans | Life: 25 years Production: 1 Mt de concentré/an |

•

Production: 2 Mt de concentré/an | 1 Mt of concentrate/year 2 Mt of concentrate/year Étude de faisabilité complétée Étude de préfaisabilité déposée 2011 | Feasibility study novembre 2011. EIE en cours. | completed 2011. Pre-feasibility study submitted, November 2011. EIS in progress. RAGLAN, EXP

MACLEOD LAKE Western Troy Capital Resources Inc.

••

(QAKIMAJURQ | MINE NO. 5)

Xstrata Nickel Canada

••

Nickel Cuivre | Copper

Molybdène | Molybdenum Production: Expansion à 32 Kt/an | Cuivre | Copper Expansion to 32 Kt/year Durée: 9 ans | Life: 9 years

DUMONT

KÉMAG | LABMAG1

LAC OTELNUK

Royal Nickel Corporation

New Millennium Iron Corp.

Adriana Resources Inc.

••

Nickel Cuivre | Copper

•

Fer | Iron

Durée: 35 ans | Life: 35 years

•

Fer | Iron

Durée: 35 ans | Life: 35 years

Durée: 31 ans | Life: 31 years

Production: 22 Mt de boulettes/an | Production: 50 Mt de boulettes/an | 50 Mt of pellets/year Production: 45 Kt/an de concentré | 22 Mt of pellets/year 45 Kt/year of concentrate Étude de faisabilité prévue fin Évaluation économique 2012. | Feasibility study planned Évaluation économique préliminaire complété septembre late 2012. 2010. | Preliminary economic assessment completed KIPAWA DEPOSIT | September 2010.

ZEUS PROPERTY

HOPES ADVANCE BAY Oceanic Iron Ore Corp.

•

Fer | Iron

Durée: 25 ans | Life: 25 years

Matamec Explorations Inc.

•

Terres rares | Rare earths

Durée: 13 ans | Life: 13 years Production: 4 Kt/jour | 4 Kt/day

préliminaire avril 2011. Étude de faisabilité 2013. | Preliminary economic assessment, April 2011. Feasability study, 2013.

STRANGE LAKE Quest Rare Minerals Ltd.

•

Terres rares | Rare earths

Durée: 25 ans | Life: 25 years

Production: 60 Kt de concentré | Évaluation économique préliminaire Étude de faisabilité juillet 2011 | Production: 20 Mt/an de concentré | complété janvier 2012 | Preliminary 60 Kt of concentrate 20 Mt of concentrate/year Production: 750 t/jour | 750 t/day Feasibility study July 2011. Étude de faisabilité prévue. | economic assessment completed Feasibility study planned. Évaluation économique January 2012. Étude de faisabilité et EIE préliminaire septembre 2011. | prévues 2012. | Feasibility study Preliminary economic assessment, and EIS planned 2012. Source: Institut de la statistique du Québec, September 2011. Sustainable Development Statistical Sector.

DOSSIER SPÉCIAL SPECIAL REPORT

François Jacob

072-085 Special Report on QC v8_page 3-20 2012-10-30 11:44 AM Page 72

Carottes prélevées aux trois mètres sur la formation du Macasty. Celles qui ont un intérêt géologique seront séparées en deux moitiés, l’une envoyée en laboratoire et l’autre gardée en témoin. / Three-metre core samples taken on the Macasty Shale. The geologically interesting ones will be separated in two, with the one half sent to a laboratory, and the other one kept as a reference.

pourrait les rattraper si le gouvernement décidait de ne pas soutenir ces nouveaux efforts d’exploration.

Changement de paradigme sur Anticosti « Pour le pétrole, on est vraiment dans les débuts, dans l’est, dit Jacques Pelletier, le président de Forage de l’est, alors qu’il nous fait visiter son site de forage. Ce n’est pas comme dans l’ouest, en Alberta, où ils ont déjà du pétrole trouvé, des gisements. Ici, c’est vraiment l’étape embryonnaire. » La petite entreprise de dix employés effectue, depuis l’été, des sondages stratigraphiques dans l’île d’Anticosti pour le compte de Pétrolia. Pourtant, ce n’est pas la première fois que des sociétés s’échinent à trouver du pétrole sur cette île de près de 8 000 km , soit environ 16 fois la superficie de l’île de Montréal. Depuis les années 1960, de gros joueurs tels Esso, Shell et Hydro-Québec ont tous tenté leur chance, à chaque fois sans succès. C’est sur les traces de ces géants que s’est d’abord engagée Pétrolia lorsqu’elle a acquis ses droits sur l’île, en 2008. Comme tous ses prédécesseurs, elle s’est mise à la recherche de réservoirs conventionnels dans la formation du Trenton Black River, où le pétrole aurait pu migrer, depuis la roche-mère, sous les 1800 mètres de profondeur. À ce jour, elle n’a réussi à en localiser aucun qui contienne du pétrole. Mais voilà qu’en 2011, la société dévoilait les résultats d’analyse d’une carotte prélevée à l’été 2010. Les résultats obtenus révélaient une nouvelle thématique de recherche, ouvrant dès lors une alternative prometteuse à la recherche de réservoirs conventionnels. « On a découvert que le pétrole était encore dans la rochemère, n’était pas sorti, raconte André Proulx, président de Pétrolia. Ça a complètement viré l’exploration de bord. »

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their operations into the oil fields on the Gaspé Peninsula and Anticosti Island. They could once again meet political resistance, particularly if the government decides not to support these new exploration efforts. Junior companies currently active in the oil field include Pétrolia, Junex and Corridor Resources.

Paradigm shift on Anticosti “In terms of oil, we are really at the beginning in the East,” said Jacques Pelletier, president of Forage de l’Est, as he showed me his drilling site. “It’s not like in the West, in Alberta, where they have already found oil deposits. Here, we are in the embryonic stage.” The small company, with only 10 employees, began conducting stratigraphic core drilling on the Anticosti Island on behalf of Pétrolia this summer. This is not, however, the first time that companies have worked to find oil on this island of almost 8,000 square kilometres, which is around 16 times the size of the island of Montreal. Since the 1960s, major companies like Esso, Shell and Hydro-Québec have attempted, albeit without success, to find significant deposits. In 2007, Pétrolia followed in the footsteps of these giants and acquired rights on the island. Like its predecessors, Pétrolia began searching for conventional reservoirs in the Trenton Black River formation, where oil could have migrated from the bedrock at a depth of 1,800 metres. To date, the company has not managed to locate oil in this structure. In 2011, however, the company unveiled the results of an analysis of a core collected in the summer of 2010. These revealed a groundbreaking direction for fossil fuels

DOSSIER SPÉCIAL SPECIAL REPORT

François Jacob

072-085 Special Report on QC v8_page 3-20 2012-10-30 11:44 AM Page 73

Site de sondage stratigraphique, dans le nord-ouest de l’île d’Anticosti, août 2012. La petite entreprise Forages de l’Est a réalisé, cet automne, trois sondages pour le compte de la société Pétrolia. / A stratigraphic core drilling site in the northwest of Anticosti island, August 2012. Exploration company Forages de l’Est has drilled three times this fall on behalf of Pétrolia.

L’attention s’est alors portée, pour la première fois, sur la formation au-dessus du Trenton Black River : le shale du Macasty, l’équivalent latéral du shale de l’Utica, qui lui ressemble en plusieurs points et qui s’est révélé être riche en pétrole dans l’Ohio. C’est d’ailleurs en se basant sur les analogies entre ces deux formations que la firme de consultants pétroliers Sproule Associates Limited estimait, à l’été 2011, le potentiel de pétrole en place sur les permis de Pétrolia à 30,9 milliards de barils. Le hic, c’est que le shale de Macasty, peu perméable, ne permet pas à l’huile de se déplacer. Il faut donc, théoriquement, fracturer. Et dans le climat politique actuel, l’option paraît parsemée d’embûches. « Nous ne sommes pas rendus à ce stadelà, pour l’instant », précise M. Proulx.

Défis du climat politique À quelques kilomètres de là, le chargé de projet Jérémie Lavoie nous accompagne sur le chemin de 224 kilomètres qu’a défriché Junex pour y mener ses levés sismiques, cet été. « Le sismique, c’est le passage obligé pour arriver au forage, dit-il. Ça diminue le risque du forage. » Junex, qui a acquis des droits d’exploration sur quelque 100 000 hectares en 2007, est également bien au fait de l’énorme potentiel que pourrait détenir le shale de Macasty. En octobre 2011, la firme de consultants en pétrole et gaz Netherland, Sewell & Associates établissait le potentiel de pétrole en place sur ses permis à 12,2 milliards de barils. « C’est un peu la géologie des basses-terres, c’est les mêmes formations, explique Jean-Yves Lavoie, président de Junex. La différence, c’est que dans les basses-terres, on est dans la fenêtre à gaz. À Anticosti, étant donné que c’est moins mature, qu’il y a eu moins de pression et de sédiments par-dessus, on est dans la fenêtre à l’huile. »

research that promises an alternative to conventional reservoirs. “We discovered that the oil was still in the source rock and had not come out,” said André Proulx, president of Pétrolia. “This has completely turned exploration upside down.” For the first time, the attention focused on the Macasty shale, the formation located above Trenton Black River. This structure is the lateral equivalent to the Utica shale found in Ohio, which is known to be rich in oil. In fact, petroleum consulting firm Sproule Associates Limited estimated in the summer of 2011 that, based upon the similarities between these two formations, Pétrolia’s permits could potentially yield 30.9 billion barrels of oil. The only dilemma is that the Macasty shale’s low permeability makes it difficult for the oil to move, requiring hydraulic fracturing, which in the current political climate appears riddled with snags. “We haven’t gotten to that stage at this time,” says Proulx.

Challenging political environment Project manager Jérémie Lavoie accompanied us on the 224-kilometre trail that Junex cleared to conduct a seismic survey this past summer a few kilometres away. “The seismic survey is a must before drilling,” he said. “It decreases the financial risks.” In 2007, Junex acquired exploration rights to approximately 100,000 hectares on Anticosti. The company is also well aware of the enormous potential of the Macasty shale. In October 2011, oil and gas consulting firm Netherland, Sewell & Associates found that the area it acquired permits for a potential yield of 12.2 billion barrels of oil. November 2012 | 73

072-085 Special Report on QC v8_page 3-20 2012-10-30 11:44 AM Page 74

Mais MM. Proulx et Lavoie prennent bien garde de tout miser sur le Macasty. Car la déclaration choc, le 20 septembre dernier, de la nouvelle ministre des Ressources naturelles, Martine Ouellet, a eu l’effet d’une douche froide : jamais l’exploitation par fracturation hydraulique ne sera sécuritaire. C’est pourquoi on continue tout de même l’exploration de cibles conventionnelles plus profondes, parallèlement à celle du Macasty. Les deux présidents ont assuré que, à lui seul, le potentiel conventionnel justifiait des investissements sur l’île. Malgré l’énorme potentiel de pétrole en place, totalisant plus de 42 milliards de barils, rien n’est donc joué sur Anticosti, situation politique oblige. Les juniors voudraient convaincre Québec de les accompagner dans un projet-pilote

DOSSIER SPÉCIAL SPECIAL REPORT

Old Harry : le processus environnemental bouclé dès juillet 2013, prévoit Corridor Resources À quelque 80 kilomètres des Îles-de-la-Madeleine, sur la frontière avec Terre-Neuve-et-Labrador, s’étend la structure géologique d’Old Harry, d’une superficie de 30 par 12 kilomètres. La zone a été qualifiée, dans une étude de la Commission géologique du Canada parue en 2009, de riche en hydrocarbures – on y trouverait une demi-douzaine de gisements d’huile et de gaz naturel. La société néo-écossaise Corridor Resources, qui détient des permis sur tout le site, prévoit boucler son évaluation environnementale dès mai ou juin 2013 pour le forage d’un premier puits dans la portion terre-neuvienne de la structure. « On ne sait vraiment pas ce qu’il y a là, et on ne le saura pas avant de forer un puits, a déclaré en entrevue Paul Durling, géophysicien en chef à Corridor. Mais en raison de son ampleur, Old Harry a le potentiel de contenir des ressources à hauteur d’un milliard de barils d’huile ou de plusieurs milliards de pieds cubes de gaz. » Old Harry est située sur un dôme de sel, à quelque 460 mètres sous l’eau. Dans le meilleur cas de figure, Corridor y localiserait des réservoirs conventionnels d’huile légère, à quelque 2 500 mètres de profondeur. Dans le cas où le dôme contiendrait plutôt du gaz naturel, la société devrait d’abord chiffrer ses réserves avant d’aller de l’avant. « C’est certain que c’est un meilleur projet avec de l’huile, a admis M. Durling. Il resterait économiquement viable avec du gaz, si on en trouvait plusieurs milliards de pieds cubes… Tout dépend de combien on en trouve. » Il n’est pas certain que Québec permette l’exploration sur sa propre portion du site. Le gouvernement a lancé, au printemps 2010, une évaluation environnementale stratégique (ÉES) sur l’exploration d’hydrocarbures dans le Golfe. On en attend les conclusions cet automne. Une première ÉES portant sur l’estuaire avait mené à un moratoire permanent en septembre 2010. Parallèlement à l’ÉIE de Corridor, Terre-Neuve-et-Labrador mène sa propre ÉES dans le Golfe. Elle devrait être complétée en mai 2013 et ses conclusions seront intégrées à l’ÉIE de Corridor, de façon à ce que le processus environnemental puisse être entièrement bouclé en juillet 2013.

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“It is similar to the geology of the St. Lawrence Lowlands; it has the same structures,” explained Jean-Yves Lavoie, CEO of Junex. “The difference is that in the Lowlands, we are in the gas window. On Anticosti, because it is less mature, there is less pressure and sediment above, so we are in the oil window.” Nevertheless, Proulx and Lavoie are reluctant to focus their efforts exclusively on the Macasty shale. On September 20, the new minister of natural resources, Martine Ouellet, released a shocking statement that had a sobering effect: “Hydraulic fracturing will never be safe.” The exploration of deeper and more conventional targets therefore continues to run parallel to drilling the Macasty. The two presidents are confident that the potential of conventional deposits still justifies their investments on the island. Despite the enormous potential for oil, totalling more than 42 billion barrels, there is still a long way to go. To reassure the public, the juniors would like to convince the province to support them on a hydraulic fracturing pilot project. They are also aware that without the government’s financial contribution to an eventual production project on Anticosti, no major player would want to embark on such an expensive venture.

Regional specialties Things are much clearer on the other side of the Honguedo Strait, in the Gaspé Peninsula, where we may see the first oil production in Quebec. “Our project nearest to production is Haldimand,” pointed out Proulx. With an area of 12 square kilometres, this deposit is located less than 10 kilometres east of Gaspé, and is part of the York River formation extending over the entire Gaspé Peninsula. Pétrolia expects to drill a third well measuring 2.6 kilometres in length this winter, and this time horizontally in order to determine the direction of fractures on the site. “We hope that we will be able to make a final calculation of reserves and apply for a production lease in the spring of 2013,” said Proulx. Then again, fracturing will have to be taken into consideration. The Haldimand deposit contains tight oil – a light oil that differs from shale oil in American Petroleum Institute degree and viscosity but may require hydraulic fracturing due to the low permeability of the formations where it is found. Proulx hopes to avoid this scenario. “From an economic standpoint, it is better not to resort to fracturing,” he said. “But we do not think that the Haldimand deposits will be easy to exploit. We will need ingenuity to avoid fracturing.” In fact, Pétrolia has invested $500,000 to identify a drilling method that would avoid fracturing and the “political consequences” that would ensue. Junex is also allegedly nearing its goal in Gaspésie. On August 20, it completed the drilling of a fourth well on its property in Galt, located 20 kilometres from Gaspé. The company foresees extending it by a horizontal drain as early as next spring, in order to establish the size of the

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de forage avec fracturation, question de rassurer l’opinion publique. Et ils savent bien que, sans la participation financière du gouvernement à un éventuel projet d’exploitation sur Anticosti, aucun major ne voudra se lancer dans une aventure aussi coûteuse.

Les spécialités régionales

Some 80 kilometres east of the Magdalen Islands, across the border from Newfoundland and Labrador, lies the 30-kilometrelong by 12-kilometre-wide Old Harry structure. The area was qualified in a 2009 study by the Geological Survey of Canada as a rich fossil fuel play that could hold half a dozen or so major oil and gas fields. Halifax-based Corridor Resources, which holds the permits for the entire site, plans to complete its final environmental assessment study (EAS) by May or June 2013 for the drilling of a first well on its Newfoundland permits. “We really don’t know what is there, and we won’t know until we actually drill a well,” said Corridor’s chief geophysicist Paul Durling. “But because of its size, Old Harry does have the potential to contain resources of up to a billion barrels of oil, or multiple trillions of cubic feet of gas.”

Old Harry is located on a salt dome, some 450 metres to 470 metres underwater. Corridor’s best-case scenario would be to find conventional, light oil reservoirs about 2,500 metres below surface. If the salt dome were to contain natural gas instead of oil, Corridor would need to confirm sufficient reserves before proceeding. “Certainly it’s a much better project for oil,” said Durling. “It can be economically viable for natural gas, of course, if we find multiple trillions of cubic feet. It depends on how much we find.” Whether Quebec will allow for exploration on its own side of the structure is still uncertain. The government launched a strategic environmental assessment on fossil fuel exploration in the gulf in spring 2010, that will be completed this fall. A first strategic assessment targeting the St. Lawrence Estuary led to a permanent moratorium in 2010. Parallel to Corridor’s EAS, Newfoundland and Labrador is carrying out its own strategic assessment in the Gulf. It should be completed by May 2013, and its conclusions will be incorporated into Corridor’s final EAS, so that the whole environmental process can be finished by July 2013.

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Les choses sont beaucoup plus claires de l’autre côté du détroit de Honguedo, dans la péninsule gaspésienne. C’est là, et non pas sur Anticosti, que l’on pourrait voir produire le premier pétrole en sol québécois. « Notre projet le plus près de la production, c’est Haldimand », confirme M. Proulx. Situé à moins de 10 kilomètres à l’est de Gaspé, ce gisement, d’une superficie de 12 km , fait partie de la formation du York River, qui s’étend sur toute la péninsule gaspésienne. Pétrolia prévoit y forer, cet hiver, un troisième puits de 2,6 kilomètres de long, horizontal cette foisci, dans le but de rencontrer des fractures naturellement présentes dans le réservoir. On espère qu’on sera alors en mesure de faire un calcul de réserves final et de déposer une demande de bail de production dès le printemps 2013. Dans le cas de Haldimand, on aimerait pouvoir forer sans avoir recours à la fracturation hydraulique. « De façon économique, il est plus avantageux de ne pas fracturer. Cela dit, on ne pense pas qu’on a trouvé à Haldimand des gisements faciles à exploiter. Il va falloir avoir de l’ingéniosité pour ne pas fracturer », admet M. Proulx. Pétrolia a d’ailleurs investi 500 000 $ pour déterminer une méthode de forage qui puisse lui éviter la fracturation et les « conséquences politiques » qu’elle implique. « Cela nous a permis de repérer un réseau de fractures naturelles à l’intérieur du réservoir qui nous permet de croire que nous pourrons produire de manière commerciale sans avoir à recourir à la fracturation », a récemment annoncé la société. Junex se dit, elle aussi, près du but en Gaspésie. Le forage d’un quatrième puits sur sa propriété de Galt, à 20 kilomètres de Gaspé, a été complété le 20 août dernier. Elle prévoit le prolonger par un drain horizontal dès le printemps prochain, afin d’établir la taille de la structure et de préciser le potentiel de pétrole en place, actuellement estimé à 260 millions de barils. « Notre seuil critique, on va l’atteindre autour de 400-500 millions de barils, a précisé M. Lavoie. Quand on est rendu dans ces chiffres-là, on est capables d’intéresser des grands joueurs en place à se joindre à nous et à supporter l’effort d’exploration. » Mais les deux sociétés savent bien quel défi les attend : convaincre un gouvernement constitué de « verts » de les soutenir financièrement et de participer à leurs projets comme il le fait dans le cadre du Plan Nord, notamment avec la compagnie Stornoway; tout en démontrant à l’opinion publique que la fracturation hydraulique peut se faire de façon sécuritaire pour l’environnement. Une tâche qui ne s’annonce pas facile, à entendre les positions tranchées de la nouvelle ministre des Ressources naturelles. Bref, il n’est pas du tout évident que des hydrocarbures seront, à court et moyen terme, produits au Québec. Q

The Old Harry Deposit: environmental assessment en route to completion

structure and to accurately determine the potential for oil, which is currently estimated at 260 million barrels. “Our critical threshold is to reach around 400 million to 500 million barrels,” said Lavoie. “When we get to these numbers, we are able to attract big players to join us in supporting the exploration effort.” Both companies are well aware of the challenges that lie ahead. They have to convince a so-called green government to financially support and participate in fossil fuels development projects, exactly as it does mining projects under the framework of the Plan Nord – where the government is both contributing to infrastructure development projects and buying shares in the companies, in this case Stornoway Diamonds. Companies also want the government to help them demonstrate to the public that it is possible to undertake hydraulic fracturing in an environmentally safe manner. The entrenched position taken by the new minister of natural resources does not make this look likely. Q November 2012 | 75

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Enjeux autochtones et industrie minière

L’ancien premier ministre Jean Charest et Ghislain Picard, chef de l’Assemblée des Premières Nations du Québec et du Labrador / Former Premier Jean Charest and Assembly of First Nations of Quebec and Labrador Chief Ghislain Picard

Courtoisie de l’Assemblée des Premières Nations du Québec et du Labrador / Courtesy of the Assembly of First Nations of Quebec and Labrador

L’acceptabilité sociale, projet par projet

Quebec’s unique Aboriginal landscape Social licence negotiated project by project SPECIAL REPORT DOSSIER SPÉCIAL

par by

Alain Castonguay

a récente campagne électorale au Québec n’a guère permis d’intégrer la dimension autochtone dans le débat sur l’exploitation des ressources naturelles. Certaines communautés autochtones arrivent pourtant à s’entendre avec les exploitants afin de parvenir au climat requis pour le développement des projets. L’élection du gouvernement du Parti québécois, le 4 septembre dernier, n’a sûrement pas déplu à Ghislain Picard, chef de l’Assemblée des Premières Nations du Québec et du Labrador (APNQL). Dans une lettre adressée à la presse à la fin du mois d’août, il a exprimé sa déception à l’égard de l’attitude du gouvernement du Parti libéral du Québec (PLQ) de Jean Charest. Selon M. Picard, plus de 20 ans après la crise d’Oka, il semble que « le gouvernement Charest n’avait encore rien appris », même s’il venait tout juste de ratifier une nouvelle entente avec le Grand Conseil des Cris. Peu après l’élection du gouvernement Charest en 2003, l’APNQL avait réussi à le convaincre de discuter de la possibilité d’une structure permanente de débat sur les enjeux liés au territoire et aux ressources. « Nous avons réussi à décoller, mais n’avons jamais réussi à trouver la piste d’atterrissage », écrivait Ghislain Picard à la fin août. Assez rapidement, l’APNQL a frappé un mur et a poursuivi un dialogue de sourds lorsqu’il est devenu évident « que Jean Charest n’était prêt à parler de territoire qu’en fonction de ses propres conditions ». Par la suite, le gouvernement a repris les négociations d’ententes avec les nations de manière individuelle. Ghislain Picard confirmait alors le degré élevé d’exaspération des Premières Nations et la tentation de plus en plus forte d’adopter une approche plus radicale dans l’avancement de leurs revendications. « La naïveté et la volonté ont été rempla-

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he election of Pauline Marois’ Parti Québécois government over Jean Charest’s Liberals last September 4 was surely good news for Ghislain Picard, regional chief of the Assembly of First Nations for Quebec and Labrador (AFNQL). In a letter to the press in late August, he expressed disappointment with the former government. According to Picard, more than 20 years after the Oka crisis, “the Charest government had learned nothing,” even though that government had just ratified a new agreement with the Grand Council of the Crees. Not long after Charest was elected in 2003, the AFNQL succeeded in persuading the government to discuss establishing a permanent mechanism for debating issues related to lands and resources. “We managed to get off the ground, but we never found the landing strip,” wrote Picard. In fairly short order, he noted that the AFNQL ran up against a brick wall and found itself engaged in a futile dialogue, where neither party was truly listening to the concerns of the other. It became apparent that “Jean Charest was not prepared to talk about land unless it was on his terms.” Subsequent to these talks, the government went back to negotiating with each First Nation individually. Picard’s letter said that First Nations felt exasperated and were finding it increasingly difficult to resist adopting a more radical approach for advancing their claims. “Naïveté and willingness to negotiate gave way to a heightened vigilance and a sense that our patience was being severely tested,” he wrote. “You can thank your premier for the backpedalling you have seen from our previously held position of generous good faith.”

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cées par une plus grande vigilance et une patience fortement secouée. Vous pourrez remercier votre premier ministre pour ce recul dans notre généreuse bonne foi. »

Sommet demandé

Les Cris de Mistissini Dans la région du Nord-du-Québec, on s’active depuis quelques mois à prolonger la route 167 en direction des monts Otish. Cette route avait initialement été construite pour les besoins de la société Stornoway Diamonds, qui prévoit d’y exploiter un gisement de diamants d’ici 2015. La nation des Cris de Mistissini participe au prolongement de la route 167 et a signé la « Convention Mecheshoo » avec Stornoway Diamonds le 27 mars 2012, laquelle guidera toutes les étapes préalables à l’exploitation de la mine. L’étude d’évaluation de l’impact social et environnemental du projet a été approuvée par les Cris. Le prolongement de la route 167 donnera aussi accès au projet Matoush de Ressources Strateco, qui prévoit d’exploiter l’uranium dans le sol des environs des monts Otish, à 275 km au nord de Chibougamau. Le 22 décembre 2011, Strateco a annoncé avoir conclu une « entente d’information et de communication » avec les Cris de Mistissini. Mais ces derniers s’opposent désormais au projet uranifère. Le 5 juin dernier lors des audiences publiques tenues par la Commission canadienne de sûreté nucléaire (CCSN) à Mistissini, le Chef du Conseil de la Nation des Cris, Richard Shecapio, a soumis une fin de non-recevoir au projet et a réclamé l’instauration d’un moratoire permanent sur tout projet uranifère sur le territoire de sa communauté. Q

The AFNQL took part in the 2012 summit of the Atikamekw Nations, held August 28 and 29 in Wemotaci, where the First Nations expressed hope to see the next government commit to holding a summit on lands and resources within 30 days of election. It is unknown how willing the Marois government is to engage, but it is important to mention that the Fédération des chambres de commerce du Québec hosted a debate on natural resources on August 23, where candidates from all parties discussed various issues, namely land use, mining royalties, Plan Nord, and fossil fuels in the Gulf of St. Lawrence and in Anticosti. In the 90 minutes of debate, the First Nations presence in the affected territory was never mentioned; the word “Aboriginal” was not said even once. The Atikamekw of Wemotaci, the Manawan and the Opitciwan blockaded forest roads during the summer, and a crisis which threatened to boil over was avoided only by means of an Agreement in Principle ratified in the 11th hour on August 31. If this agreement is approved by the First Nations communities, the Quebec government and the Atikamekw nation will be able to negotiate a final accord, along with the conditions for implementation of the agreement. According to Luc Bouthillier, professor of forest policy at Université Laval, the Atikamekw are undeniably the most conciliatory of all First Nations. It is about time, he says, that real negotiations be undertaken.

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L’APNQL a participé au Sommet en territoire atikamekw les 28 et 29 août derniers à Wemotaci. À cette occasion, les Premières Nations ont exprimé le désir que le prochain gouvernement prenne l’engagement, 30 jours après son élection, de tenir un sommet sur le territoire et les ressources. Sans vouloir présumer de la volonté du nouveau gouvernement Marois d’aborder le sujet, il convient de mentionner ceci : la Fédération des chambres de commerce du Québec a tenu un débat sur les ressources naturelles le 23 août dernier. Étaient présents plusieurs candidats de tous les partis pour parler d’aménagement du territoire, de redevances minières, du Plan Nord, des hydrocarbures dans le golfe et à Anticosti, etc. En 90 minutes, à aucune reprise la présence des Premières Nations dans le territoire concerné n’a été mentionnée. Le mot « autochtones » n’a même jamais été prononcé. Les Atikamekws de Wemotaci, Manawan et Opitciwan ont bloqué les chemins forestiers durant l’été, et la crise qui menaçait d’éclater n’a pu être évitée que par une entente de principe ratifiée à la dernière heure, le 31 août dernier. Si celle-ci reçoit l’accord des communautés, le gouvernement du Québec et la nation atikamekw pourront négocier un accord final et les conditions de sa mise en œuvre. Selon Luc Bouthillier, professeur de politique forestière à l’Université Laval, les Atikamekws sont indéniablement les plus conciliants de toutes les Premières Nations. Il est grand temps que de vraies négociations aient lieu avec eux, insiste-t-il.

Seeking a summit

The Cree Nation of Mistissini In northern Quebec, workers have been busy extending route 167 to the Otish Mountains in recent months. This road is being built to accomodate Stornoway Diamonds, which plans to mine a diamond deposit in the region, with operations slated to begin in 2015. The Cree Nation of Mistissini is contributing to the extension of route 167; it signed the Mecheshoo Agreement with Stornoway Diamonds on March 27, 2012. The agreement will guide all stages leading up to the operation of the mine. The Cree also approved the project’s social and environmental impact study. The extension of route 167 will also provide access to Strateco Resources’ Matoush project. Strateco plans to mine uranium underground in the environs of the Otish Mountains, about 275 kilometres north of Chibougamau. On December 22, 2011, Strateco announced that it had reached an “agreement of information and communication” with the Mistissini Cree. But the Mistissini Cree are now opposing the uranium-mining project. Last June 5, at public hearings held by the Canadian Nuclear Safety Commission, Richard Shecapio, chief of the Mistissini, submitted a peremptory plea to stop the project. He also asked for the declaration of a permanent moratorium on uranium-mining projects on the lands of his community. Q

Translated by Mark Stout November 2012 | 77

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Boom dans le secteur minier au Québec

Courtoisie Technosub

Des fournisseurs prennent de l’expansion

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Technosub est en train d’agrandir ses installations / Technosub is expanding its facilities.

Mining industry booming in Quebec Suppliers expanding their businesses par by

Alain Castonguay

’expansion de l’activité minière profite aussi aux fournisseurs des sociétés minières. Plusieurs d’entre eux ont profité de la reprise depuis 2009 pour agrandir leurs installations et prendre de l’expansion au Québec. En 2011, Technosub, une société québécoise qui produit des pompes et des solutions de dénoyage, a vu la demande pour ses produits exploser, de telle manière qu’elle était sur le point de refuser de nouveaux clients. « On a alors frappé un mur. On comblait le besoin, mais il nous fallait agrandir notre usine. Le département d’ingénierie était coincé dans notre salle de conférence », explique Eric Beaupré, directeur des ventes et affaires corporatives chez Technosub. Le léger recul de l’activité minière ne l’inquiète guère : « Même si l’exploration ralentit, les corporations évitent généralement que leur mine se noie, car un dénoyage complet est trop coûteux. » Technosub est implantée sur tout le territoire canadien grâce à son réseau de succursales dans les principales régions minières. Au Québec, son atelier de fabrication se trouve à Rouyn-Noranda. La société est en train d’agrandir ses installations de 40 000 à 55 000 pieds carrés. « Je crois ne pas me tromper en affirmant que nous aurons la plus grosse usine dans le secteur des pompes industrielles au Canada. »

Exploration Chez Forage Orbit Garant (OGD), le président et chef de la direction, Éric Alexandre, souligne que, de manière générale, 78 | CIM Magazine | Vol. 7, No. 7

n 2011, the demand for its products exploded so quickly that Technosub, a Quebec pump and dewatering solutions manufacturer, was about to turn away new customers. “We hit a wall,” explains Eric Beaupré, director of corporate affairs and marketing for Technosub. “We were meeting the needs of our customers, but we needed to expand our plant. The engineering department was crammed into our conference rooms.” Slight downturns in mining activity no longer worry him. “Even if exploration activity slows down, the hole that is dug for a mine cannot simply be left to fill with water,” he says. “Complete dewatering is too costly.” Technosub has a network of branch offices in all of Canada’s major mining areas. In Quebec, its production facility is located in Rouyn-Noranda, where the company is in the process of expanding to 55,000 square feet from 40,000 square feet. “I don’t think I’d be mistaken if I told you that we are going to have the biggest plant in the industrial pumps sector in Canada,” says Beaupré.

Exploration At Orbit Garant Drilling (OGD), president and CEO Éric Alexandre reports that activity has slowed since March 2012. “Approximately 30 per cent of our customer base is made up of junior exploration firms,” he points out. “The financial crisis affects them, and

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L’innovation Le procédé d’analyse des carottes de forage développé par la PME Photonic Knowledge de Rosemère est « révolutionnaire », explique son fondateur, Éric Roberge. La technologie, appelée « Core Mapper », lui attire des éloges et suscite l’intérêt de l’industrie de l’exploration minière. Elle utilise la photonique pour analyser le contenu des carottes de forage de manière rapide et efficace, à un prix plus raisonnable que celui des analyses en laboratoire. La société est passée de trois employés en 2009 à 35 aujourd’hui. Et ils sont à l’étroit. Comme le dit Éric Roberge, il s’agit là d’un « heureux problème », et il cherche d’autres locaux. La société a aussi signé un bail pour un entrepôt plus grand à Rouyn-Noranda, d’où elle pourra mieux desservir sa clientèle du Nord-Ouest du Québec, mais aussi celle du Nord-Est de l’Ontario. Parmi les premiers clients ayant adopté la technologie Photonic Knowledge, Éric Roberge cite Philippe Cloutier de Ressources Cartier, Michael Gross de Northern Gold, James Thompson d’Armistice Resources et Michael Allen de Métaux BlackRock. L’autre intérêt de ce procédé est qu’il peut aussi servir à l’analyse des carottes historiques. « Nous avons pu analyser 78 000 mètres de carottes de forage en 60 jours pour un autre client. C’est une grande première. Nous avons pu déterminer la nature des minéraux, la qualité de la pyrite, etc., avec un degré de précision au dixième d’un pour cent », conclut-il.

Des fabricants occupés Chez ASDR Industries, l’expansion a été rapide. En 2006, cette entreprise de Malartic comptait 5 employés ; aujourd’hui, elle en compte 102, explique Stephen Authier, son directeur général. Voisine de la société Osisko et de la mine Canadian Malartic, ASDR a ainsi pu développer sa division de fabrication en fournissant à l’exploitant aurifère les services d’entretien et de réparation des bennes nécessaires pour ses camions de 227 tonnes et autres équipements. ASDR a pu agrandir ses locaux, qui couvriront maintenant 20 000 pieds carrés, grâce au contrat de 10 ans conclu avec Osisko au printemps dernier. Cet agrandissement lui permet aussi de mieux servir d’autres clients, tels que les mines Opinaca, Agnico-Eagle et Canada Lithium, ou encore Wesdome et Richmont. « Mais l’aspect le

most of them have been forced to reduce their drilling activity.” In late December 2011, OGD announced the acquisition of New Brunswick-based Lantech Drilling, a move that will facilitate its expansion into Eastern Canada. OGD now has 224 active drill rigs, and its diamond production division is expanding quickly. Last year, the company moved into its new head office in Val-d’Or, allowing it to increase production. This investment had been planned since 2008, soon after the merger of Orbit Drilling and Garant Brothers Diamond Drilling.

Innovation The process for assaying drill core samples developed by Photonic Knowledge of Rosemère, Quebec is “revolutionary,” according to company founder Éric Roberge. The technology, called Core Mapper, has earned him praise and attracted the exploration industry’s attention. Core Mapper uses photons to analyze the content of drill core samples quickly and efficiently, and it is also more affordable than laboratory analysis. Another key feature of the process is that it can be used to assay historical core samples. “For one customer, we were able to assay 78,000 metres of drill core in 60 days,” says Roberge. “This is a major achievement. We were able to determine the nature of the minerals, the quality of the pyrite, and so on, with a degree of precision of one tenth of one per cent.” The firm has gone from the three employees it had in 2009 to a total of 35 today, and it is tight for space as a result. As Roberge puts it, “it’s the sort of problem we would all like to have.” He is currently looking for a new location. The firm has also signed a lease for a larger warehouse in Rouyn-Noranda, which will serve as a hub to service customers in northwestern Quebec and northeastern Ontario. The first customers to adopt Photonic Knowledge’s technology include Cartier Resources, Northern Gold, Armistice Resources, and Black Rock Metals.

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les activités d’exploration ont connu un ralentissement depuis le mois de mars 2012. « Environ 30 % de notre clientèle est composée de sociétés juniors en exploration. La crise financière les affecte beaucoup et la plupart ont été forcées de diminuer leurs activités de forage », explique-t-il. Fin décembre 2011, OGD annonçait l’acquisition de Lantech Drilling, au Nouveau-Brunswick, ce qui facilitera son expansion dans l’Est du pays. OGD dispose maintenant de 224 foreuses en activité, et sa division de fabrication des machines de forage au diamant fait aussi de bonnes affaires. En 2011, l’entreprise a emménagé dans son nouveau siège social à Val-d’Or. Les nouveaux locaux lui donnent plus de flexibilité pour augmenter la production en fonction de la demande. Cet investissement était prévu depuis 2008, peu de temps après la fusion des sociétés « Forage Orbit » et « Forages Garant & Frères » en 2007.

Producers keeping busy At ASDR Industries, expansion happened fast. In 2006, this Malartic-based firm had five employees; today they have 102, according to CEO Stephen Authier. A neighbour of Osisko’s Canadian Malartic mine, ASDR was able to develop its production division by supplying the gold mining operator with maintenance and repair services for the bodies of its 227-tonne trucks, along with other equipment upkeep. “But the most important aspect of this contract with Osisko is the expertise that we will be developing on large trucks,” Authier explains. ASDR wants to take this expertise to the iron extraction projects in Côte-Nord, where the trucks used are even larger. ASDR undertook an expansion of its facilities to 20,000 square feet, thanks to a 10-year contract it signed with Osisko last spring. This expansion will also allow ASDR to better serve other customers like Opinaca, Agnico-Eagle, and Canada Lithium mines, as well as Wesdome Gold and Richmont. ASDR also relies on large engineering November 2012 | 79

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Courtoisie Technosub

plus important de ce and environmental departcontrat avec Osisko, c’est ments, and in addition to l’expertise qu’on dévebeing active in Quebec, the loppe sur les gros company exports its expecamions. » ASDR souhaite rience abroad, to its offices la mettre à profit pour in Morocco and Mexico. approcher les gros chanMécanicad is another tiers d’extraction de fer en success story in the proCôte-Nord, qui utilisent vince. The company des camions encore plus manufactures ventilation imposants. ASDR compte ducts and other equipment aussi sur un important required in the mining secdépartement d’ingénierie tor. According to André et d’environnement. En Paquet, president and marplus d’être bien implanté ket development director, au Québec, ASDR exporte Technosub, une société québécoise qui produit des pompes et des solutions de the company’s Mécanivent son expertise outre-mer, dénoyage, était sur le point de refuser de nouveaux clients avant d'agrandir leur system has been so sucusine. / Technosub nearly had to turn down customers before expanding. grâce à ses bureaux situés cessful that it had to build au Mexique et au Maroc. a bigger plant in RouynMécanicad transforme le plastique pour fabriquer des Noranda. The new facility will provide a space where all of conduits de ventilation et d’autres équipements requis dans le the company’s 30 or so employees can work under one roof. secteur minier. Selon son président, André Paquet, également Until now, production had been spread across two sites. directeur du développement des marchés, la popularité de Since 2008, Mécanicad’s sales have quadrupled — reason système Mécanivent est telle qu’il a fallu construire une ching $4 million — and Paquet estimates that by March plus grande usine à Rouyn-Noranda. Ses nouveaux locaux per- 2013, sales will have increased by another 30 per cent mettent de regrouper la trentaine de salariés sous un seul et over the previous year. The company specializes in transmême toit, alors que la production était répartie sur deux sites portability; the farther the mine is from Rouyn-Noranda, auparavant. the more advantageous Mécanicad’s product becomes. Depuis 2008, le chiffre d’affaires de l’entreprise a quadruplé “We’re the only ones who can deliver 160 ducts, 72 pour atteindre 4 millions $. André Paquet estime que les inches in diameter, spread over six crates, and two pallets ventes augmenteront encore de 30 % d’ici mars 2013, par rap- of fittings and elbow joints in a single trailer,” explains port à l’année qui vient de s’écouler. La reprise de la produc- Paquet. “They are already partly assembled. Once we tion à la mine Casa Berardi des Mines Aurizon a été un arrive at the mine, we unload the crates, which are véritable coup de pouce qui a fait connaître le système de ven- moved underground. Two people can finish the assembly tilation de Mécanicad. Plus la mine est loin de Rouyn-Noranda, on site in a matter of minutes.” When Mines Aurizon’s plus le produit de Mécanicad est avantageux. « Nous sommes Casa Berardi mine returned to production using the les seuls, explique M. Paquet, à livrer dans une seule remorque Mécanivent system, other miners took notice. For now, quelque 160 conduits d’un diamètre de 72 pouces, répartis en Mécanicad’s customers are mostly companies active in six cageots et deux palettes de raccords et de coudes. Ils sont gold mining — either start-ups or expansions of existing déjà en partie assemblés. Arrivés à la mine, on prend le cageot mines. et on peut le descendre sous terre d’un seul coup. Deux perQuebec companies are not limited by their province’s sonnes suffisent pour finaliser l’assemblage sur le site en borders. While Versadrill Canada is based in Val-d’Or, the quelques minutes. » Pour l’instant, les clients de Mécanicad lion’s share of its production is exported outside of Quesont surtout actifs dans l’exploitation de l’or, soit des mines en bec, explains director of sales and marketing Serge démarrage ou en expansion. Bellefeuille. The company moved into a new, 20,000VersaDrill Canada est un manufacturier de foreuses de Val- square-foot plant in early October, and will be capable of d’Or dont la majeure partie de la production est exportée hors manufacturing 80 drills per year. Most of their custodu Québec, explique son Directeur des ventes et marketing, mers’ exploration is in Russia, Africa and Latin America; Serge Bellefeuille. L’entreprise a emménagé dans un nouvel only 15 per cent of the company’s sales are domestic. atelier de 20 000 pieds carrés début octobre et sera en mesure “The drilling companies that are active here already have de fabriquer au-delà de 80 foreuses par année. Grace à cette their suppliers when they don’t make their own equiptoute nouvelle manufacture plus moderne et fonctionnelle et ment,” says Bellefeuille. But he is optimistic Versadrill à des innovations apportées aux nouveaux modèles, VersaDrill can make gains at home; the company plans to double its sera en mesure d’augmenter considérablement ses efforts de marketing efforts in Canada in order to fill its growing vente et marketing au Canada, annonce M. Bellefeuille. Il reste capacity. Q que la majeure partie de l’exploration de ses clients a lieu en Translated by Mark Stout Russie, en Afrique et en Amérique latine. Q

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Le Plan Nord chinois Le Québec a besoin d’ajouter de la valeur avec sa stratégie de développement du Nord

China’s Plan Nord par by

René Dufour

Quebec needs to add value with its northern development strategy

’intérêt pour le Nord québécois a débuté il y a plusieurs années. M. Charest aurait dû mentionner que l’Université du Québec à Chicoutimi était le précurseur du Plan Nord alors qu’elle tenait en 1970 un colloque sur le thème « Le Nord québécois – Un potentiel générateur d’emplois ».

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Le Plan Nord est-il plus qu’un « slogan » de marketing ? Les sociétés y étaient déjà actives avant l’apparition dudit Plan Nord et y sont en raison du potentiel financier de l’exploitation des ressources minières et du climat clément du Québec. Par contre, les sociétés sont heureuses de mentionner leur association au Plan Nord Charest, qui leur offre certaines infrastructures qu’elles devraient normalement défrayer. Un exemple, parmi d’autres, est l’annonce d’une contribution de 200M$ provenant des impôts des contribuables du Québec aux villes nordiques, telles que Fermont, Chibougamau, Sept-Îles, Port Cartier et d’autres, à qui les sociétés minières demandent divers services souvent coûteux. Au Québec, ce sont le minerai de fer et le minerai de nickel qui intéressent les sociétés chinoises. Bientôt, il n’y aura plus une tonne de minerais de ces deux métaux stratégiques détenue par une société québécoise. Les Québécois ont raison d’être réticents à voir leurs ressources de minerais en Chine sans véritable « transformation ». On ne peut appeler « transformation » la production de concentrés et de boulettes de fer expédiés aux aciéries qui les utilisent pour produire de l’acier. Il existe différentes opinions sur les prix futurs des métaux. Si le prix des concentrés de fer baissait à 80$/t, certains des projets en cours au Québec seraient au mieux retardés – en septembre, les prix ont déjà baissé à 90$/t. La prudence est donc de mise. C’est l’appétit insatiable de la Chine qui maintient les prix des métaux au niveau élevé que l’on connaît présentement. Les grands pourvoyeurs de minerais de fer à la Chine sont présentement le Brésil et l’Australie, deux pays producteurs de minerais tout-venant dont la teneur est de 65 à 68 pour cent de fer. Ils ne requièrent pas de concentration, alors que les gisements de la Fosse du Labrador titrent de 28 à 32 pour cent, et nécessitent donc la concentration. L’intérêt des sociétés chinoises au Québec semble être un désir de diversification, alors que le Brésil et l’Australie augmentent leur production.

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

nterest in Quebec’s northern resources began many years ago. Former Premier Jean Charest should have credited work done at the Université du Québec à Chicoutimi (UQAC) as being the precursor of his Plan Nord. In 1970, the university hosted a symposium with the theme “Le Nord québécois – Un potentiel générateur d’emplois” (Quebec’s North Country – A Potential for Job Creation).

Charest’s Plan Nord: more than a marketing slogan? Miners were active in the province well before the appearance of this new plan. They came, and continue to come, because of the potential for financial gain from extraction of mining resources and because the economic conditions in Quebec are favourable. Still, mining companies have been happy to mention their association with Charest’s Plan Nord, which has offered to bear the costs of certain infrastructures they would normally have to cover themselves. One example is the announcement of a $200 million contribution, paid for by Quebec’s taxpayers, to northern towns such as Fermont, Chibougamau, Sept-Îles and Port Cartier, which are often asked to provide costly services to the mining companies. Many of the companies that stand to benefit are not from Quebec, or even Canada, but China and India. Iron and nickel in Quebec are of specific interest to Chinese companies. Soon, there will not be as much as a tonne of these two strategic metals held by a Quebec company. Quebecers have been vocal that the production of iron concentrates and pellets, such as is done now, does not do as much as possible to bring value into the province. They are quite right to be hesitant about seeing their mineral resources shipped to China without having undergone any real value-adding process. Opinions vary on the future of commodity prices, but if the price of iron concentrates were to drop to $80 per tonne, some projects underway in Quebec would at best be delayed. It is China’s insatiable appetite that is keeping metal prices at the high levels we are currently experiencing. And just this past September, prices dropped to $90/t. A prudent approach to Chinese investment is therefore appropriate. At this time, the major suppliers of iron ore to China are Brazil and Australia, two countries that produce ore containing 65 per cent to 68 per cent iron. This ore can be shipped directly to China, unlike deposits in the Labrador Trough, which contain just 28 per cent to 32 per cent iron, thus requiring concentration before shipping. Conse-

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Emplois au Québec

La situation est plus préoccupante quant aux concentrés de nickel La ceinture nickélifère-platine et autres métaux de la Baie Wakeham-Cap Smith est le plus riche district minier du Québec. Xstrata, en acquérant Noranda-Falconbridge, obtenait l’exploitation de Raglan sur cette ceinture où elle détient une bande de 70 km. Les concentrés produits sont expédiés par bateau et chemin de fer à Sudbury pour le traitement métallurgique. Xstrata Nickel a une entente avec les autochtones de la région pour extraire 1,3 Mt de minerais par année. La société annonce une augmentation substantielle de la production, prévoyant 40 000 t de nickel dans les concentrés produits à Raglan sans augmenter le niveau d’extraction – ce qui indique la haute teneur des gisements. Au retour de son périple promotionnel en Chine, M. Charest annonçait un investissement de 400M$ de la société chinoise Jilin Jien Nickel en vue de l’exploitation des gisements de nickel et d’autres métaux associés, autrefois détenus par la société Canadian Royalties, situés près des claims miniers de Xstrata. Permettrons-nous à JJN d’expédier en Chine les concentrés produits et ainsi d’exporter des emplois hautement rémunérés en Chine? Considérant le manque de main-d’œuvre anticipé, permettrons-nous à JJN d’importer des travailleurs de Chine, comme les sociétés chinoises le font en Afrique? La réponse est évidemment non. Avec deux producteurs de nickel-platine et autres métaux dans une même région (JJN et Xstrata Nickel), ne devrait-on pas inciter les deux producteurs à s’entendre? Ils devraient suivre l’exemple de la province voisine de Terre-Neuve-Labrador, qui a exigé que la société Vale traite sur son territoire les concentrés provenant du gisement de classe mondiale Voisée Baie, laquelle va bientôt compléter un investissement de 3,6B$ pour répondre à cette exigence.

quently, Chinese interest in Quebec appears to be centred on their desire to diversify their sourcing, as Brazil and Australia continue to increase their production.

Jobs in Quebec Most high-paying jobs in metals production are in the value-adding stages, and this includes steel milling. The lack thereof in Quebec is of significant concern. Furthermore, even if all else goes well in the planning stages, mines that produce concentrates cannot begin operations unless an agreement is reached with a mill for the sale of their product. As a result, jobs at iron ore concentrate projects in Quebec are beholden to steel mills overseas. To solve this problem, I propose establishing a $25-million fund to develop technology to produce pig iron ingots, as is done with aluminum. Met-Chem, a Quebec-based engineering company, has prepared a conceptual study for this purpose. Brazilian firm Vale, the world’s largest iron producer, is already at an advanced stage with a similar project, and is making plans to reduce steelmaking costs by 30 per cent. It has been reported that a metallurgical research centre run by ArcelorMittal in France is also working on developing similar technology.

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Les emplois hautement rémunérés se trouvent principalement dans la transformation des métaux avant leur expédition hors du pays. Bien que toutes les étapes (à savoir la délimitation des réserves, les analyses et essais métallurgiques, les études environnementales, les études de faisabilité d’un gisement) soient positives, il n’y a pas de projet de mise en exploitation tant qu’une entente n’est pas conclue avec une aciérie qui s’engage à utiliser lesdits concentrés de fer. Le projet est donc limité à cet acheteur. Je propose la création d’un Fonds de 25M$ pour le développement de la technologie de production de lingots de fer (Pig Iron), comme on le fait avec l’aluminium. Une société d’ingénierie québécoise, Met-Chem, a préparé un projet d’étude conceptuelle pour ce faire. La société Vale du Brésil, le plus grand producteur de fer au monde, se trouve déjà à un stade avancé et prévoit de réduire de 30 pour cent le coût de fabrication de l’acier. Un centre de recherche métallurgique d’ArcelorMittal situé en France travaillerait aussi au développement de cette technologie.

The situation with nickel concentrates is even more worrisome Upon his return from a promotional junket in China, then-premier Charest announced a $400-million investment by the Chinese company Jilin Jien Nickel (JJN) in mining deposits of nickel and other related metals previously held by Canadian Royalties, located near Xstrata’s mining claims in Nunavik. The Cape Smith belt running to Wakeham Bay, containing nickel, platinum and other metals, is the richest mining district in Quebec. When Xstrata acquired Noranda Falconbridge, the company obtained mining rights to Raglan along this belt, where it holds a 70-kilometre section. The concentrates produced are shipped by freighter and rail to Sudbury, where they undergo metallurgical processing. Xstrata Nickel has an agreement with the First Nations in the region to extract 1.3 million tonnes of ore per year. The company has announced a substantial increase in production and expects to obtain 40,000 tonnes of nickel in the concentrates produced at Raglan without increasing extraction rates. This points to the high concentration of nickel in these deposits. Will we allow JJN to ship the concentrates to China and thereby effectively export high-paying jobs as well? Considering the anticipated labour shortage, will we allow JJN to import workers from China, as Chinese companies in Africa have done? The answer should clearly be “no.” With two nickel-platinum producers in a single region (JJN and Xstrata Nickel), shouldn’t we encourage the two producers to come to an agreement? They should follow the example of neighbouring Newfoundland and Labrador, which demanded that Vale process the concentrates from the worldclass Voisey’s Bay deposit on their territory. Vale will soon complete a $3.6-billion investment to meet this demand. November 2012 | 83

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Redevances

Royalties

Je crois que le modèle australien qui consiste à les baser sur la valeur brute de la production minière devrait être retenu. Le gouvernement australien a voté une loi ajoutant une taxe de 30 pour cent sur les profits d’un exploitant dépassant un certain niveau. Aussi, en Australie, une taxe de 21$/t d’émission de carbone est imposée à 500 sociétés ayant le plus haut taux d’émission de carbone. Des articles dans les journaux laissent entendre qu’en suivant l’exemple de l’Australie, la rentabilité des exploitations ne serait plus suffisante pour inciter les sociétés étrangères à investir au Québec. Dans son édition de mai 2012, le magazine Mining Engineering publiait le Bilan annuel 2011 de la « US Geological Survey » couvrant les ÉtatsUnis mais incluant des commentaires sur le monde entier, dont le Canada. Le Bureau américain rapporte qu’entre 2010 et 2011, au moins 25 pays ont augmenté ou annoncé l’intention de leur gouvernement d’accroître leur participation aux projets miniers en augmentant les taxes ou royautés. Parmi les pays énumérés, on trouve de grands pays dont la Chine, le Chili, le Pérou, l’Indonésie et l’Afrique du Sud. Le ralentissement en cours de l’économie chinoise a déjà affecté à la baisse les prix des minerais de fer. De plus, l’augmentation de la production au Brésil et en Australie viendra ajouter un effet négatif sur les prix des minerais de fer, ce qui pourrait remettre en question les projets dans la Fosse du Labrador. On peut voir que ce n’est pas simplement les redevances qui déterminent l’intérêt d’exploiter chez nous.

I think that we should adopt the Australian model, which consists of basing royalties on the gross value of mining production. The Australian government enacted a law to add a 30 per cent tax on the profits of an operator when profits exceed a certain threshold. Australia also levies a tax of $21/t of carbon emissions on the 500 companies with the highest carbon emissions. Newspaper articles suggest that if we were to follow Australia’s example, operators’ profitability would no longer be sufficient to attract foreign companies to invest in Quebec. But this concern may be overstated. In its May 2012 issue, the magazine Mining Engineering published the 2011 Annual Review of the U.S. Geological Survey, which covered the United States but also included commentary on the rest of the world, including Canada. The American bureau reported that from 2010 to 2011, at least 25 countries stepped up or announced their government’s intention to increase their participation in mining projects by raising taxes or royalties. Among the countries listed are the important and very active mining jurisdictions of Chile, Peru, Indonesia, South Africa and China. The slowdown in the Chinese economy is causing the current decrease in iron ore prices. Moreover, increased production in Brazil and Australia will tend to have a negative effect on prices, which could jeopardize the projects in the Labrador Trough. Obviously, royalties are far from the only thing that affects the profitability of Quebec’s deposits.

Stratégie minérale du Québec – plus que le Plan Nord Charest La loi minière du Québec devrait exiger que l’exploitation des ressources minérales se fasse de manière durable et responsable. Les droits d’exploitation doivent être rigoureusement exercés en respectant des principes d’utilisation rationnelle des ressources. Le personnel du ministère des Ressources naturelles devrait disposer des ressources techniques et financières nécessaires pour apprécier les situations où le profit est le seul but poursuivi. La politique minérale doit se préoccuper de l’alimentation des installations métallurgiques, telles que la raffinerie Noranda, l’affinerie de cuivre de Montréal Est, la raffinerie de zinc à Valleyfield et d’autres installations qui procurent d’importants revenus à la province. Les sociétés chinoises implantées en Afrique importent du personnel chinois pour réaliser divers ouvrages. On ne peut permettre une exploitation accélérée des ressources du Québec avec un tel apport étranger. Q René Dufour est un ancien président de l’ICM qui a été impliqué dans presque toutes les facettes de l’industrie, de l’éducation aux opérations, en passant par la mise en production du projet de minerai de fer du lac Jeannine et à la fondation de la ville de Gagnon, en périphérie de la mine. Au cours de sa carrière, M. Dufour a vu 15 différents premiers ministres à l’Assemblée nationale, et a observé la Révolution tranquille des années 1960 qui a redéfini la société québécoise. Il « ne croit pas à la retraite » et continue d’être actif auprès de la Fondation canadienne des mines et de la métallurgie et de la section locale de l’ICM à Montréal.

Quebec’s mineral strategy – more than Charest’s Plan Nord Quebec’s mining law should require that mining be done sustainably and responsibly. Miners’ rights must be rigorously upheld while simultaneously enforcing the principles of the rational use of resources. Staff at Quebec’s ministère des Ressources naturelles ought to have the technical and financial resources necessary to assess situations in which profit is the sole motivating factor. Mineral policy must be concerned with supplying raw materials to metallurgical facilities, namely the Noranda refinery, the Canadian Copper Refinery (CCR) in east Montreal, the zinc refinery in Valleyfield, and other facilities that provide substantial revenues to the province. Chinese companies established in Africa import Chinese workers to do a variety of jobs. We cannot allow accelerated extraction of Quebec’s resources to proceed with this amount of foreign intervention. Q René Dufour is a CIM past-president who has been involved in nearly every facet of the industry from education to operations; including bringing the Lac Jeannine iron ore mine to production and founding the nearby town of Gagnon. Over his career, Dufour has seen the National Assembly under 15 different premiers, and observed the Quiet Revolution of the 1960s that reshaped Quebec society. He says he “does not believe in retirement,” and continues to be active with the Canadian Mining and Metallurgical Foundation and the CIM Montreal branch.

Translated by Mark Stout 84 | CIM Magazine | Vol. 7, No. 7

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CIM Technical Societies

Les sections de l’ICM

Les sociétés techniques de l’ICM

DISTRICT 1 NOVA SCOTIA, NEW BRUNSWICK, PEI, NEWFOUNDLAND AND LABRADOR • LABRADOR • NEW BRUNSWICK • NEWFOUNDLAND DISTRICT 2 QUÉBEC • AMOS • CHAPAIS-CHIBOUGAMAU • HARRICANA • MONTRÉAL • QUÉBEC • QUÉBEC NORD-EST • ROUYN-NORANDA • SAGUENAY • THETFORD MINES DISTRICT 3 ONTARIO (EAST OF THE 86TH MERIDIAN) • COBALT • GTA WEST • HAMILTON • NORTHERN GATEWAY • OTTAWA • PORCUPINE • SUDBURY • SUDBURY GEOSOC SECTION • TORONTO

DISTRICT 4 ONTARIO (WEST OF THE 86TH MERIDIAN), MANITOBA, SASKATCHEWAN AND NUNAVUT • RED LAKE • SASKATOON • SASKATOON GEOSECTION • THOMPSON • THUNDER BAY • WINNIPEG DISTRICT 5 ALBERTA (MACKENZIE DISTRICT) AND NWT • CALGARY • EDMONTON • OIL SANDS • YELLOWKNIFE DISTRICT 6 BRITISH COLUMBIA AND YUKON • CROWSNEST • NORTH CENTRAL BC • SOUTH CENTRAL BC • TRAIL • VANCOUVER INTERNATIONAL • DAKAR, SENEGAL • LIMA, PERU • LOS ANDES, CHILE

CANADIAN MINERAL PROCESSORS SOCIETY SOCIÉTÉ CANADIENNE DU TRAITEMENT DES MINERAIS ENVIRONMENTAL & SOCIAL RESPONSIBILITY SOCIETY SOCIÉTÉ POUR LA RESPONSABILITÉ ENVIRONNEMENTALE ET SOCIALE GEOLOGICAL SOCIETY SOCIÉTÉ DE LA GÉOLOGIE MAINTENANCE & ENGINEERING SOCIETY SOCIÉTÉ DE L'INGÉNIERIE ET DE L'ENTRETIEN MANAGEMENT & ECONOMICS SOCIETY SOCIÉTÉ DE LA GESTION ET DE L'ÉCONOMIE MINÉRALE METALLURGY AND MATERIALS SOCIETY SOCIÉTÉ DE LA MÉTALLURGIE ET DES MATÉRIAUX MINING SOCIETY OF NOVA SCOTIA SOCIÉTÉ MINIÈRE DE LA NOUVELLE-ECOSSE ROCK ENGINEERING SOCIETY SOCIÉTÉ DE LA MÉCANIQUE DES ROCHES SURFACE MINING SOCIETY SOCIÉTÉ D'EXPLOITATION MINIÈRE À CIEL OUVERT UNDERGROUND MINING SOCIETY SOCIÉTÉ D'EXPLOITATION MINIÈRE SOUTERRAINE

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CIM community Raise your company visibility

Faites rayonner votre entreprise

Corporate Membership • Enhance your global visibility and be recognized as a leader at world-class industry events. • Shape the future of the industry by supporting CIM outreach initiatives and programs. • Build a stronger workforce and promote your employees’ professional growth. • Be featured in our annual Membership Directory, in which your company profile, logo and contact details will be prominent – both in print and online. • Get a hot spot on our tradeshow floor by receiving priority booth placement at the annual CIM Convention. • Appoint a corporate representative to enjoy all of the benefits of an individual membership. CIM is the foremost voice for the advancement of leading industry expertise and promotion of best practices – both in Canada and worldwide. Drawing upon its rich heritage, CIM plays an integral role in shaping the mining industry through its extensive global network of technical experts and its endorsement of sustainable mining practices. Discover more about your community for leading industry expertise at www.cim.org. CIM

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Adhésion corporative •

• • •

• •

Obtenez de la visibilité à l’échelle mondiale et soyez reconnu en tant que un leader lors d’événements de classe mondiale organisés par l’industrie; Influencez l’avenir de l’industrie en appuyant les initiatives et les programmes de sensibilisation de l’ICM; Bâtissez une main-d’œuvre plus solide et favorisez le perfectionnement professionnel de vos employés; Faites-vous connaître dans notre répertoire annuel des membres; votre profil, votre logo et vos coordonnées y occuperont une place de choix, dans les versions en ligne et imprimée; Assurez-vous une d’une meilleure placé à notre salon commercial lors du Congrès de l’ICM ; Désignez votre représentant corporatif qui pourra bénéficier de tous les avantages d’une adhésion régulière.

L’ICM joue un rôle de premier plan dans la promotion de l’expertise sectorielle et la diffusion des bonnes pratiques, aussi bien au Canada que dans le reste du monde. Fort d’une riche tradition, l’ICM façonne le secteur minier à l’échelle mondiale grâce à son important réseau d’experts techniques et son support des pratiques minières durables. Pour en savoir plus sur la communauté pour une expertise de premier plan, visitez le www.cim.org. ICM Traduit par Erik Stout

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CIM community

CIM national on the ground Jo-Anne Watier

Staff take first-hand look at drilling and digging

Nadia Bakka cleans off her boots after a visit to Agnico-Eagle’s Lapa mine.

Le bureau national de l’ICM sur le terrain Le personnel observe directement les activités de forage et d’extraction By / par Dinah Zeldin

This past September, the CIM national office staff were given an opportunity to leave behind the computer stations of our downtown Montreal offices to travel 500 kilometres to northern Quebec and visit a pair of mine sites: Agnico-Eagle Mines’ Lapa underground operation in Val-d’Or and Osisko’s Canadian Malartic open-pit mine in Malartic. The trip had been a dream of CIM’s executive director Jean Vavrek for quite some time. However, the logistical challenge of arranging a trip for the entire office staff was no easy task. The trip was also made possible by Agnico-Eagle and Osisko staff, and Air Creebec, which provided transportation, allowing 23 members of CIM’s national staff to get a glimpse of the daily workings of a mine site. “CIM’s investment was well worth it,” says Vavrek. “Many of the staff had never been at a mine site, and witnessing operations provided them with an enhanced understanding 90 | CIM Magazine | Vol. 7, No. 7

En septembre dernier, les employés du bureau national de l’ICM ont quitté le centre-ville de Montréal et leurs écrans d’ordinateur pour partir à 500 km vers le nord du Québec, afin d’y visiter les installations souterraines Lapa d’Agnico-Eagle, à Val-d’Or, et la mine à ciel ouvert Canadian Malartic d’Osisko, à Malartic. Jean Vavrek, directeur général de l’ICM, rêvait de ce voyage depuis un bon moment. Le transport de l’ensemble du personnel a cependant présenté d’importants défis logistiques. Les employés d’AgnicoEagle et d’Osisko ont rendu possible la réussite de l’initiative, tout comme Air Creebec, qui a assuré le transport des 23 employés vers le nord, où ils ont pu avoir un aperçu du fonctionnement quotidien d’une mine. « L’investissement de l’ICM a porté ses fruits, note M. Vavrek. Plusieurs de nos employés n’avaient jamais vu une mine. Le fait d’être témoin des opérations sur le terrain leur a permis de mieux comprendre la communauté que nous servons. »

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CIM community

Peter Braul

of the community we Tout comme les mineurs, les employés ont serve.” dû commencer leur jourMuch like miners on the née très tôt. L’équipe est ground, we began our day arrivée vers 6 h 30 à l’étaearly. Staff arrived at Lapa’s blissement moderne de modern facility at around Lapa, où Éric Lecomte, ingé6:30 a.m. to a warm recepnieur en chef, l’a chaleureution from the mine’s chief sement accueillie. Il s’en est engineer, Eric Lecomte, and suivi une visite de trois were whisked off on a threeheures de la mine à haute hour tour of the company’s teneur en or. high-grade gold mine. « Cette visite m’a permis “This visit allowed me to de mieux comprendre la better understand the comcomplexité et l’ampleur des plexity and scale of the chaldéfis auxquels nos memlenges our members have to bres sont confrontés », note face,” comments Marjolaine Marjolaine Dugas, directrice Dugas, CIM’s director of Marjolaine Dugas (left), Lucie Vincent (right) and other staff enjoy their underground adventure. des services aux membres membership services. de l’ICM. Lunch was accompaLe dîner a été accompagné d’une présentation informative nied by an informative presentation from Agnico-Eagle, chronicling Lapa’s development from initial exploration d’Agnico-Eagle, décrivant le développement de Lapa, de l’exploration stages undertaken by Breakwater Resources in 1981, to the effectuée par Breakwater Resources en 1981 jusqu’à la production combeginnings of construction in 2004, and finally to commer- merciale en 2009, en passant par le début de la construction en 2004. « J’ai été surprise de découvrir combien de temps et d’efforts sont cial production in 2009. “It was impressive to learn how much time and hard work nécessaires au développement d’une mine, raconte Lise Bujold, goes into developing a mine site,” says Lise Bujold, CIM’s directrice des événements de l’ICM. Cela confirme l’importance du tradirector of events. “It reinforced how important the work vail que nous effectuons au bureau. Je suis heureuse de servir une that we do at the office is. I am glad to provide services to industrie dont la communauté est aussi dévouée. » Après le dîner, l’équipe s’est rendue à Canadian Malartic, propriété support such a dedicated industry.” After lunch, staff travelled to the Canadian Malartic mine, principale d’Osisko. Il s’agit d’une mine à ciel ouvert, à faible teneur et Osisko’s flagship property, which is a low-grade, high-volume à volume élevé, avec 10,7 millions d’onces de minerai d’or prouvés et open pit operation with 10.7 million ounces of proven and probables. Le personnel de la mine a expliqué que pour accéder au gisement probable gold reserves. There, mine staff detailed how, in order to access the qui s’étend sous la ville de Malartic, Osisko a assumé l’intégralité des deposit that reaches beneath the town of Malartic, the com- coûts de déplacement de tout un quartier et a bâti une école primaire pany fully covered the costs of relocating an entire neigh- ultramoderne. Les habitants de Malartic ont soutenu le projet, et plubourhood and built a state-of-the-art elementary school. sieurs d’entre eux ont été embauchés par Osisko au cours du dévelopResidents of the town were in support of the project, and pement du projet. « La visite de cette mine m’a montré qu’il est possible d’exploiter un many were hired by Osisko as the project developed. “Visiting the Malartic mine showed me it is possible to site à proximité d’une petite ville et d’établir une coexistence harmooperate a mine next to a small town, and that the two can nieuse, explique Zoë Koulouris, réviseure de CIM Magazine et coordoncoexist,” reflects Zoë Koulouris, CIM Magazine’s copy editor natrice des communications. Je comprends maintenant comment les and communications coordinator. “This trip provided insight mines peuvent assurer des bénéfices économiques tout en assurant la into how mines can help maximize a region’s economic bene- durabilité environnementale pour les habitants de la région. » « Ce qui m’a marqué, c’est la passion qui anime les employés de ces fits, while ensuring a sustainable environment is maintained deux emplacements, affirme Laura Foley, coordonnatrice des services for people living in the area.” “One of the major highlights of the trip was witnessing aux membres. J’ai senti chez eux un réel sens de la responsabilité how passionate the employees were at both mines,” says sociale et une préoccupation de la communauté. » Même si pour plusieurs employés de l’ICM il s’agissait d’un preLaura Foley, membership coordinator. “I felt a real sense of mier aperçu des activités sur le terrain, cette excursion restera à social responsibility and care for the community.” The field trip may have been the first foray into the field coup sûr gravée dans l’esprit de tous. En effet, ils ont tous senti à leur for many CIM staff members, but it will surely leave a lasting façon un renforcement de leur lien avec le monde de l’exploitation impression and enhance the connection we feel to mining on minière. ICM Traduit par Erik Stout a daily basis – each in our own ways. CIM November 2012 | 91

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CIM community Award Winner

Made in Canada Members Award winner Robert Lipic builds global supply chain By Kim Lear

Robert Lipic has never balked at obstacles in his path. In fact, the trailblazing president and CEO of Mining Technologies International (MTI) has been shot at and kidnapped while on a quest to forge business relationships in developing countries. Lipic, the recipient of the 2012 Members Award, presented to those esteemed to be unsung heroes of the mining industry, continues his mission to explore new markets and opportunities for Canada’s mining equipment supply sector, though now largely from the comfort of his homeland. Looking back over Lipic’s 40-plus years in mining, it is evident he has made a significant impact. Reflecting on his success, three things stand out to him: he puts relationships above all else; he is insatiably curious; and he is driven to find better ways of doing things. “When I started, a big (raise boring) hole was five feet in diameter,” Lipic says, awed by the mining advancements that have been made during his career. “Today there are people who claim to be able to drill 3,000-footlong holes, 10 metres in diameter.” “MTI introduced a drill rod a few years back that helped make that possible,” Lipic adds proudly. “Hats off to Canada; we did it here at home first and now the rest of the world is going to try and copy us. Watching that over the next 20 years will be exciting.” At 68, Lipic is clearly having fun and has no immediate plans to get out of the game. Before buying the company that would eventually become MTI, Lipic earned his stripes by working in mineral exploration, mining development, sales and even working underground. He has since built MTI into a $140million-per-year, 100-per-cent Cana-

“I’ve never looked at running off. I say ‘take the talent we have at home and use it to make top-quality equipment.’” dian-owned company, and the country’s largest manufacturer and supplier of mining equipment. Lipic attributes MTI’s success to building strong relationships. He is proud to say that during the last recession not a single customer cancelled an order, adding that MTI has never had a bad international receivable, and that some of MTI’s

customers have been with him for more than two decades. Known for his negotiating stamina and willingness to down the occasional shot of snake’s blood to seal a deal, he has strategically built business ties with companies in more than 20 countries. “I’m of the opinion that we have great standards in Canada,” Lipic says. “If we’re able to meet those standards for the Canadian industry, we can take that same knowledge and provide it to international clients.” MTI is headquartered in Sudbury, with operations in North Bay and Montana, employing over 400 Canadians and roughly 60 Americans. “You always hear people rushing to places in the world where there’s cheaper labour,” Lipic says. “I’ve never looked at running off. I say ‘take the talent we have at home and use it to make top-quality equipment.’” MTI has brought a number of game-changing solutions to the market over the years. Anticipating new restrictions coming out of the U.S. Environmental Protection Agency six years ago, MTI saw an opportunity to develop a hybrid loader for narrow vein mining that would be safer, more efficient and ultimately produce fewer emissions. As the company makes the final improvements to its battery technology before taking it to market this year, plans for a mid-size loader are already on the drawing board in the engineering department. Lipic hopes to be testing the new prototype in 2013. Lipic is driven to discover new ways to improve MTI’s product offerings, to build new supply chains and to take MTI further internationally. After all these years, what motivates him to stay in the game? “It’s always the intrigue to climb a higher hill.” CIM

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CIM community Branch Profile

50 years of success

Who’s who / Qui sont ils?

Quebec North-East Branch supports region’s projects

2012 Quebec North-East Executive

Jean-Guy Gougeon

CHAIR / PRÉSIDENT Patrice Tremblay VICE-CHAIR / VICE-PRÉSIDENTE Annie Lévesque SECRETARY-TREASURER / SECRÉTAIRE-TRÉSORIER Luc Gagnon ADMINISTRATOR / ADMINISTRATEUR Martin Lévesque

Key volunteers / Principaux bénévoles PROGRAMMING / PROGRAMMATION Donald Galienne, Raynald Ouellet, Carl Allard, Roger Doyle & Hector Blake COMMUNICATIONS AND PUBLIC RELATIONS / COMMUNICATIONS ET RELATIONS PUBLIQUES Mireille Joncas, Jean-Guy Gougeon & Mathieu Dionne Annie Lévesque, vice president/vice-chair (ICM section Québec Nord-Est); Dean Journeaux, president and CEO/président et chef de la direction, New Millenium Iron; Patrice Tremblay, chair/président (ICM section Québec Nord-Est); Jean-Marc Blake, vice-president organizational effectiveness/vice-président efficacité organisationnelle, Tata Steel Minerals Canada

Plus de 50 ans de réussite La section Québec Nord-Est appuie les projets de la région

MEMBER RELATIONS / RELATIONS AVEC LES MEMBRES Paul Bilodeau, Richard Comeau & Mireille Joncas SPONSOR RECRUITMENT / RECHERCHE DE COMMANDITES Carol Lavoie & Sylvain Larivière SCHOLARSHIPS / BOURSES D’ÉTUDES André Legendre & Jean Mailhot SOCIAL PROGRAMMING / ACTIVITÉS SOCIALES Paul Bilodeau

By/par Alain Castonguay The CIM Quebec North-East (QNE) Branch has been successful in mobilizing members to take an active role in local industry for over 50 years and continues to provide support in filling the industry’s ongoing training and networking needs in the region. The QNE Branch’s territory stretches from PortCartier to Havre-Saint-Pierre, inland to the town of Fermont and north to Schefferville. The Branch was founded in 1960 by B.S. Imrie, a mining engineer employed by Iron Ore Company of Canada. In November 2011, tthe Branch celebrated its 50th anniversary at a gala event in Sept-Îles. Several former Branch chairmen, as well as the executive director of CIM’s national office, Jean Vavrek, attended the event. In late August, Bertrand Lessard had to resign from his role as Branch chairman because he was transferred to Montreal by his employer, Cliffs Natural Resources. Fortunately, a replacement was found quickly: Patrice Tremblay, superintendant of planning, quality, and sales at Rio Tinto IOC took on the role. The QNE Branch plays an active role in organizing activities for the general public, in collaboration with regional corporations. For example, it contributed to a public presentation of Alderon Iron Ore Corp.’s project in the Wabush-Labrador City area on February 20, 2012. The Branch also took part in preparing the general presentation of the Arnaud mine project, which took place on May 8 of this year, and in providing support for New Millennium Iron’s Taconite project, a plan to develop two iron deposits in the Labrador Trough in September – one near Schefferville and the other near Labrador City. CIM Translated by Mark Stout

La section Québec Nord-Est de l’ICM réussit à mobiliser des membres pour qu’ils jouent un rôle actif dans l’industrie locale depuis plus de 50 ans. De plus, la section contribue à combler les besoins de l’industrie en formation continue et en réseautage dans la région. La section Québec Nord-Est (QNE) couvre le territoire de Port-Cartier à Havre-Saint-Pierre, et comprend aussi les municipalités de Fermont et Schefferville. La section a été fondée en 1960 par B.S. Imrie, un ingénieur minier à l’emploi de la compagnie minière Iron Ore Company of Canada. En novembre 2011, le 50e anniversaire de la section a été souligné par un gala à Sept-Îles, auquel ont participé plusieurs anciens présidents de la section ainsi que le directeur général du bureau national de l’ICM, Jean Vavrek. À la fin du mois d’août, Bertrand Lessard, président de la section, a dû céder son poste après avoir été muté à Montréal par son employeur, Cliffs Natural Resources. Heureusement, un nouveau président a été trouvé rapidement. Il s’agit de Patrice Tremblay, un surintendant de la planification, de la qualité et des ventes chez RioTinto IOC. La section joue un rôle actif dans l’organisation d’activités destinées au grand public, en collaboration avec les entreprises régionales. Ainsi, le 20 février 2012, elle a contribué à la présentation publique d’un projet mené par l’entreprise Alderon Iron Ore Corp. dans le secteur de Wabush-Labrador City. La section a également collaboré à la présentation générale du projet minier Arnaud, le 8 mai dernier, et à une activité similaire, en septembre 2012, pour le projet Taconite de la société New Millenium Iron, qui prévoit d’exploiter deux gisements ferreux dans la fosse du Labrador – l’un près de Schefferville et l’autre près de Labrador City. ICM November 2012 | 95

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CIM community Award Winner

Something for everyone SCBC Branch executive focuses on meeting all members’ needs

Photos: Kelly Tuohey

By Alexandra Lopez-Pacheco

From left: Terry Lynds, Ross Lowry, Jack McLeod, John Austerberry and Randy Lynds enjoy a game of golf.

South Central British Columbia (SCBC) is rich in more than metals and minerals: the region has a strong, tightly knit community of mining professionals, who come together to form

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

the CIM SCBC Branch in Kamloops. At over 220 members, the Branch is one of the strongest in the province and was awarded the Mel W. Bartley Award for its vitality.

“I think the credit goes to our executives, who are very dedicated and work very hard, and to the loyal support of our sponsors, the mines in the region and our members,” says Richard Weymark, the Branch’s chair. According to Weymark, the Branch’s success is due to the high calibre of the technical sessions at events, and the strong personal ties members have developed over the years. “There’s a lot of shared history and a lot of long relationships among our members,” he explains. “People look forward to coming back to our annual general meeting and seeing all their friends. They have high expectations of the social programs, as well as of the quality of the technical papers, charities, and scholarships that we are able to fund with all the revenue generated from the event.” Mining activity in the region is booming with copper mines like Highland Valley Copper and Copper Mountain operating at full steam, nascent

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CIM community

mines like New Afton ramping up, and gold exploration at a high. And the SCBC Branch is keeping pace, providing educational opportunities, fun times and a sense of community to the large numbers and a diverse group of mining professionals coming into the region. “When we’re planning our technical programming, we try to cover a really broad spectrum, from updates on certain projects within the province, to interesting developments at an existing mine, from people, to regulatory to environmental to maintenance issues,” says Weymark. The social programming also has to appeal to all, so it includes everything from wine and food pairing to a golf tournament and banquet on the final evening. “We meet six times a year and debrief on every event, talking about what we did and what we could do better,” he adds. “In

the past, our attendance at the banquet wasn’t up to what we wanted it to be, so this year, we switched it to a gourmet barbeque. We went with something more casual so people could go after the golf tournament without having to throw their tie and jacket on. We got a lot of positive feedback.” Throughout the rest of the year the Branch activity calendar is full of events, such as Distinguished Lecturers’ presentations and the annual Kamloops Mining Day, which attracts thousands of people of all ages. “We invite all the different mines in the area and vendors to have booths with family-oriented activities. It’s a fun day to raise awareness about mining,” explains Weymark. The Branch will also continue to focus on providing relevant events and will be hosting MEMO 2013 next fall.

SCBC executives plan to maintain the vitality of the Branch by recruiting new members and by sharing expertise and enthusiasm with the younger generation. “Our biggest challenge has been getting people from the newer mines in the area involved,” Weymark says. “But after a lot of phone calls, many came on board. Going forward, our challenge will be getting the younger members engaged in our executive.” In keeping with CIM’s commitment to promote the development of the next generation of mining professionals, the Branch invests heavily in education, including $150,000 for a room in Thompson Rivers University’s House of Learning, regular contributions to the Mineral Resource Education program of British Columbia, and various annual bursaries to students. CIM

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CIM community International

Strength in numbers CIM develops partnerships to foster international collaboration By Dinah Zeldin

Members of the organizing committee for HydroProcess 2012, from left: Carlos Barahona, executive director and general manager at Gecamin; Sergio Castro, chair and manager, technical processing at BHP Base Metals, Chile; Virginia Ciminelli, co-chair and professor, Universidade Federal de Minas Gerais, Brazil; Nathan Stubina; Jesús Casas, technical coordinator, Gecamin.

With about 70 per cent of Canadian mining assets located abroad, the Canadian mining industry must build strong ties with industry organizations around the world – especially with those operating in regions where Canadian presence is strong. CIM is currently focused on forging connections with organizations in Latin America and the Caribbean, where 34 per cent of Canadian mining assets are found. Nathan Stubina, vice-president international at CIM and manager of the Barrick Technology Centre, is spearheading this initiative by collaborating with Gecamin, a mining events company based in Santiago, Chile. This year, Stubina sat on the steering committee for HydroProcess 2012, an international seminar on process hydrometallurgy. He was also a keynote speaker at the event, which was held in Santiago from July 11 to 13. Stubina’s presentation, “Mining and Metallurgy at a crossroads: the issues our industry will be facing,” addressed critical issues confronting industry across the globe, such as attracting and retaining personnel, dwindling ore grades, market 98 | CIM Magazine | Vol. 7, No. 7

financing of projects and regulatory changes. “It is essential for our members to talk about things like environmental issues, sustainability and new processing technologies with sister societies and companies in other parts of the world,” he points out. Gecamin will host the International Mineral Processing Congress (IMPC) in Santiago in 2014, two years before CIM

is set to host the event in Quebec City. Jan Nesset, an active CIM member and experienced mineral processing consultant with NesseTech Consulting Services Inc. in Ontario, will be on the technical committee of the IMPC 2014. “Jan being involved will keep [CIM] up to date on what they are planning and help us develop our curriculum for 2016,” Stubina explains. Gecamin staff will attend the Canadian Mineral Processors’ Conference in Ottawa this coming January to invite CIM members to IMPC 2014. The events company will also promote IMPC 2016 on their website and at their other mining events. “We are focused on building synergies with sister societies and event companies to support one another’s communication efforts and to raise awareness of upcoming events,” Stubina says. In the meantime, CIM has already begun preparing to host the IMPC. Stubina and James Finch, industry professor of mineral processing at McGill University, who will head the technical committee in 2016, travelled to IMPC 2012 in New Delhi, India, last September to present CIM’s plans for IMPC 2016. CIM

ACHIEVEMENTS Cementation makes top employers list again Ontario-based mine contracting and engineering firm Cementation Canada has been named one of Canada’s Top 100 Employers for 2013, making it the sixth time it receives this honour. The annual competition is managed by Mediacorp Canada, publisher of directories and guides that help job seekers find high-ranking employers. The employer’s graded areas include physical workplace; work and social atmosphere; health; financial and family benefits; vacation and time off; employee communications; performance management; training and skills development programs; and community involvement. Cementation attracts and retains workers by providing benefits and resources that meet the needs of employees and their families. “The most important aspect about this competition for us is not the recognition, but the process,” said Penny English, HR solutions manager for Cementation Canada.

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CIM community

Now in Peru CIM Branch opens in Lima By Dinah Zeldin Canadian mining companies have a big stake in Peru. With an estimated $50 billion to be invested in new projects in the country over the next five years, the region is full of opportunities for development, but there are obstacles to overcome. Tougher legislation, stricter scrutiny of environmental impacts and shortages of qualified labour, are all issues Canadian companies must address to maintain their growth and good standing in the region. To support Canadian industry and face these issues with a united front, Bertrand DeWindt, owner of Steps Up Consulting, led the formation of a CIM Branch in Lima. “There are so many opportunities affecting mining in Peru that the indus-

try needed an integrator to address them,” explains DeWindt. “We wanted to provide a place where this discussion can happen. If we can find like-minded people and work together, we can come up with proposals that will be good for the industry and for the country.” The official opening of the Branch took place on November 12 at the Westin Hotel and Conference Center in San Isidro, a district of the Lima province. The event featured an address from John Pollesel, COO for Vale Canada, who has extensive experience working in Peru. Attendees included Peruvian and foreign government representatives, accredited diplomats and representatives from the major mining and min-

ing-related companies operating in Peru. During the event, attendees were invited to become Branch members and to register for the Branch’s inaugural event, Innovations for the Mining Sector for 2013, a two-day conference held November 29-30, featuring panel discussions on key innovations being applied to developing projects in the region. The event closed with a cocktail party, sponsored by Golder Associates. Proceeds from all tickets purchased went to funding Branch operations. The creation of the Branch was sponsored by Hatch, Steps Up Consulting, Global Business Conferences LLC, SNC Lavalin and Jacobs Engineering Peru. CIM

November 2012 | 99

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CIM community Distinguished Lecturer

Fresh perspective Michel Jébrak examines “Innovation in Mining Exploration” By Alexandra Lopez-Pacheco

Une nouvelle perspective Michel Jébrak examine « L’innovation en exploration minière » Par Alexandra Lopez-Pacheco

Michel Jébrak is a man of both academic knowledge and handson experience. He is a professor at Université du Québec à Montréal (UQAM) and the author of 100 Innovations in the Mining Industry. Jébrak holds doctorates in mining exploration and in sciences from the University of Orléans in France, and he has travelled extensively in Africa, the Middle East and Australia, consulting for global mining companies, governments and international organizations. “As a geologist, administrator and teacher, I seek to understand how research leads to new discoveries and products, as well as to the creation of wealth,” says Jébrak, who is currently the mining entrepreneurship chair at UQAM. This year, he will be sharing his research and findings as a CIM Distinguished Lecturer.

Michel Jébrak est un homme qui allie savoir universitaire et expérience pratique. Professeur à l’Université du Québec à Montréal (UQÀM) et auteur de l’ouvrage 100 innovations dans le secteur minier, il détient deux doctorats de l’Université d’Orléans (France), en exploration minière et en sciences, et a effectué de nombreux voyages en Afrique, au MoyenOrient et en Australie, en tant que conseiller auprès d’entreprises minières mondiales, de gouvernements et d’organismes internationaux. « En ma qualité de géologue, d’administrateur et d’enseignant, je cherche à comprendre en quoi la recherche mène à des découvertes et à de nouveaux produits, ainsi qu’à la création de richesses », explique M. Jébrak, qui est actuellement titulaire de la Chaire en entreprenariat minier à l’UQÀM. Invité à s’exprimer cette année en tant qu’éminent conférencier de l’ICM, il aura l’occasion de communiquer le fruit de ses récentes recherches historiques.

CIM: What has been the focus of your research? Jébrak: Over the last two years, I’ve been looking at similarities and differences between the situation in the global mining industry today and what it was in the late 19th century. I was really surprised by the similarities. At the end of the 19th century, you see a big increase in the number of organizations in North America, which resulted in a move of political power from London to New York City. There was also an increase in the demand for – and mining of – metals, as well as in the use of new metals. People were beginning to mine new copper, nickel and aluminum deposits. In order to sustain this change, there was a lot of innovation, especially in the metallurgical industry where people were able to develop new techniques.

ICM : Sur quel sujet ont porté vos recherches? Jébrak: Au cours des deux dernières années, je me suis penché sur

CIM: How does this compare with what is happening today and what are the differences you observed? Jébrak: Today, we also have a big increase in the number of organizations, especially operations in China. We have a shift in political power from New York City to Beijing. We 100 | CIM Magazine | Vol. 7, No. 7

les ressemblances et les différences entre la situation actuelle de l’industrie minière mondiale et celle de la fin du 19e siècle. J’ai été très surpris par tous les parallèles entre les deux époques. À la fin du 19e siècle, le nombre d’organisations en Amérique du Nord a connu une hausse rapide, ce qui a provoqué un transfert du pouvoir politique de Londres vers New York. La demande et l’extraction de métaux ont également connu une forte expansion, tout comme l’utilisation de nouveaux métaux ou la diversification des métaux extraits. On commençait alors à exploiter de nouveaux gisements de cuivre, de nickel et d’aluminium. Pour appuyer tous ces changements, de nombreuses innovations ont eu lieu, particulièrement dans l’industrie métallurgique, où de nouvelles techniques ont vu le jour.

ICM : Comment compareriez-vous cette situation avec ce qui se déroule aujourd’hui? Quelles différences avez-vous observées? Jébrak: Nous observons aussi une forte augmentation du nombre d’organisations, particulièrement en Chine, un transfert du pouvoir politique de New York vers Beijing, et l’introduction de nouveaux métaux, bien qu’il s’agisse actuellement d’un marché de niche.

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CIM community

also have new metals being introduced, although they are currently niche markets. While we have some innovation, it is not as abundant as it was in the 19th century. From 1840 to 1880, there was the industrial revolution, as well as many inventions and developments in transportation, which the mining industry used at the beginning of the 20th century. For instance, there was a lot of innovation at Bingham Canyon in the U.S., one of the largest copper deposits in the world. The project led to conceptual innovation because it was a lowgrade copper deposit, which was not a typical target for mining companies at that time. There were also technical innovations that made mining Bingham Canyon possible, like crushers, discovered 20 years earlier, and the flotation process, which surfaced in Australia. In order to meet the growing demand for metals, there was a significant amount of innovation. Today, we have a technological revolution, but for the mining industry, it is not what is known as disruptive innovation. In other words, it does not produce transformational change. For mining, I would say it is mostly business as usual.

Les innovations sont toujours là, mais pas en aussi grand nombre qu’au 19e siècle. Les années 1840 à 1880 ont été le théâtre de la Révolution industrielle, ce qui a mené à divers développements et inventions dans le domaine des transports, dont l’industrie minière a su tirer profit au début du 20e siècle. Les innovations ont été nombreuses à Bingham Canyon (États-Unis), par exemple, lieu de l’un des principaux gisements de cuivre au monde. Il s’agissait d’un gisement à faible teneur en cuivre, une cible inhabituelle pour les sociétés minières de l’époque, ce qui a favorisé les innovations conceptuelles. L’exploitation minière de Bingham Canyon a également été favorisée par des innovations techniques, telles que les broyeurs, découverts 20 ans auparavant, ou, encore, le processus de flottation, apparu en Australie. La demande croissante de métaux a donné lieu à des innovations considérables. Aujourd’hui, nous vivons une révolution technologique, mais il ne s’agit pas d’innovations radicales pour le secteur minier. Autrement dit, elles n’ont pas mené à des changements transformationnels. Je dirais que pour notre secteur, les activités suivent leur cours habituel.

ICM : Mais pourquoi n’innovons-nous pas? Le Canada est pourtant un pays de recherche et de développement. Jébrak: C’est vrai, mais ces activités sont dispersées dans divers

CIM: But are we not innovating? There is research and development going on in Canada. Jébrak: There is but it is dispersed across small research centres from coast to coast. In contrast, Australia has had a national innovation strategy in mineral resources for more than 20 years. It set up key centres in mineral exploration and in sustainable mining, recruiting some of the world’s best experts. New geophysical techniques, such as TEMPEST and airborne gravimetry, were developed by Australian companies. We are already behind, I am afraid. But we are organizing. The Canada Mining Innovation Council is a good example, but it needs more government funding and we need to move faster.

petits centres de recherche aux quatre coins du pays. Par contraste, l’Australie dispose depuis plus de 20 ans d’une stratégie nationale d’innovation en ressources minières. Plusieurs centres clés d’exploration minière et de développement minier durable y ont été créés, ce qui a permis de recruter des experts de classe mondiale. De nouvelles techniques géophysiques, telles que TEMPEST et la gravimétrie aéroportée, sont l’œuvre d’entreprises australiennes. J’ai bien peur que nous ayons déjà accumulé un certain retard. Cependant, nous avons commencé à nous organiser. Le Conseil canadien de l’innovation minière constitue un bel exemple, mais il lui faudrait un financement gouvernemental accru et nous devons progresser plus rapidement.

CIM: What is the risk if we do not ramp up our innovation research? Jébrak: Canada will be left behind while the world moves forward with innovation. China is gradually becoming a key player. They were not really on the map in terms of mining innovation 10 years ago. Now Chinese companies are among the world’s largest. The number of Chinese-refereed publications in mineral exploration is booming. New Chinese scientific journals on mineral deposits in English have emerged. There are 25,000 students studying geosciences in the University of Beijing, but less than 1,000 in the entire province of Quebec. CIM

ICM : Quel risque courrons-nous si nous n’intensifions pas la recherche en innovation? Jébrak: Le Canada se trouvera à la traîne en matière d’innovation. La Chine est en train de devenir un acteur clé. Il y a encore dix ans, elle n’était pas réputée pour ses innovations minières. Or, les sociétés chinoises jouent désormais un rôle de premier plan. Le nombre de publications soumises par la Chine dans le domaine de l’exploration minière est en pleine expansion. De nouvelles publications scientifiques chinoises sur les gisements miniers ont commencé à faire leur apparition en anglais. L’Université de Beijing recense 25 000 étudiants en géosciences, alors qu’ils sont moins d’un millier à étudier cette discipline dans toute la province du Québec. ICM Traduit par Erik Stout

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

POUR DEMANDER UN CONFÉRENCIER, visitez www.cim.org, téléphonez au (514) 939-2710, ou envoyez un courriel à dist_lecturer@cim.org. November 2012 | 101

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CIM community Events

Innovation occasion

COM 2012

THANK YOU TO OUR SPONSORS GOLD SPONSORS

COM 2012 celebrates industry progress By Herb Mathisen

MetSoc Annual General Meeting and inauguration of new president.

SILVER SPONSORS

BRONZE SPONSORS

More than 700 metal and materials professionals from 35 countries came together at the 51st Annual Conference of Metallurgists (COM 2012), held in Niagara Falls, Ontario, September 30 to October 3, to celebrate how efforts to become more sustainable have positively impacted society and the environment, and to discuss how innovation and best practices must evolve to build an even more sustainable future for the industry. The conference, themed “Metallurgy and Metals Impact on Society” and organized by the Metallurgy and Materials Society (MetSoc), featured 177 presentations on burning issues, including obstacles to true innovation and potential improvements to mining technologies and processes. Chris Twigge-Molecey, plenary speaker and former CIM president, discussed the need to invest in innovation. While obstacles like short-term corporate thinking, a fear of failure and a lack of financial support can hinder the development and fostering of new ideas, benefits from innovative products and processes can be long-lasting. “We have to come up with ways to make long-term investing for innovation attractive,” Twigge-Molecey said, adding that venture capital investment in Canada has gone down 70 per cent over the last 10 years. “This is particularly acute as most of the major mining and metallurgical companies are foreign-owned and flowing benefits to Canada is not their priority.” Other plenary speakers included University of Waterloo professor Thomas HomerDixon, who discussed how companies could prosper through, what he termed, the “general purpose technology” transition – a time when the global economy will be disrupted by a move towards low-carbon and zero-carbon energy sources. Cameco’s Engin Özberk spoke about the benefits of collaborating to develop new technologies, and Bruce Conard, former vice-president of Inco, spoke about the future of sustainability. For the first time, the conference also included a Rare Earth symposium. “The rare earth metal recovery rush, along with the need for recruitment, training and sustainability dominated the discussion,” says conference chair Vladimiros Papangelakis, adding the series was very well-attended. The 52 student attendees were made to feel at home with a fun night at the Great Canadian Midway, and an industry-student mixer allowed the young professionals to rub shoulders with key players in the industry. Next year’s conference, “Shaping the Future with Technological Breakthroughs in Metallurgy and Materials,” will be held in Montreal, Quebec, from October 27 to 31. CIM 102 | CIM Magazine | Vol. 7, No. 7

FRIENDS & SUPPORTERS

EVENT SUPPORTERS

TO OUR EXHIBITORS Activation Laboratories Ltd. (Actlabs)

Ashland Inc. Avalon Rare Metals Inc. Blasch Precision Ceramics EKATO Corporation IC Controls Lakeside Process Controls OLI Systems Inc. Olympus Canada Inc. OSIsoft Canada ULC Outotec (Canada) Ltd. Romquest Technologies Sherritt International Technologies Division Uniti Titanium Watson Valve Services Inc. Maney Publishing

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CALENDAR CIM EVENTS

INTERNATIONAL EVENTS

Precious Metals ‘12 Nov. 12 – 13 | Cape Town, South Africa www.min-eng.com/preciousmetals12

Processing of Nickel Ores and Concentrates ‘12 Nov. 14 – 15 | Cape Town, South Africa www.min-eng.com/nickelprocessing12

CIM/SME Safety and Reliability Conference 2012 Nov. 13 – 15 | Minneapolis, Minnesota www.smenet.org

Québec Mining Exploration Convention Nov. 19-22 | Québec, Québec www.congresaemq.ca

Saskatoon: 47th Annual CIM Ball Nov. 16 | Saskatoon, Saskatchewan tara.stratton@tetratech.com

26 – 29 | Québec, Quebec B Nov. www.QuebecMines.mrnf.gouv.qc.ca

International Mine Management 2012 Nov. 20 – 21 | Melbourne, Australia www.ausimm.com.au/imm2012

6th Annual Investing in African Mining Dec. 3 | London, U.K. www.mineafrica.com

Innovations for the Mining Sector for 2013 Nov. 29 – 30 bdewindt@stepsup.ca

Financial Reporting Conference for the Mining Industry Dec. 5 – 6 | Toronto, Ontario www.cpd.cica.ca/Mining

CIM Calgary Branch Technical Luncheon Dec. 12 | Calgary, Alberta cimcalgary@gmail.com

Mining Morocco International Conference and Trade Show on Mining and Quarrying Dec. 5 – 8 | Casablanca, Morocco www.simc2012.org

Saskatoon: Environmental/Safety Night Jan. 17 | Saskatoon, Saskatchewan tara.stratton@tetratech.com 45th Canadian Mineral Processors Conference Jan. 22 – 24 | Ottawa, Ontario www.cmpsoc.ca/annual-conference.cfm

Québec Mines

ISEE’s 39th Annual Conference on Explosives & Air Blasting Technique Feb. 10 – 13 | Fort Worth, Texas www.isee.org Introduction to the Physics and Chemistry of Hydrothermal Ore Deposits Feb. 16 – 23 | Ottawa, Ontario www.earth.uottawa.ca/short-course.html PDAC 2013 International Convention, Trade Show & Investors Exchange Mar. 3 – 6 | Toronto, Ontario www.pdac.ca/pdac/conv/index.aspx TMS 2013 142nd Annual Meeting & Exhibition Mar. 3 – 7 | San Antonio, Texas www.tms.org/meetings/annual-13/AM13home.aspx

CIM 2013 Convention May 5 – 8 | Toronto, Ontario www.cim.org/toronto2013

Mine Water Solutions in Extreme Environment Apr. 15 – 17 | Lima, Peru www.minewatersolutions.com

Obituaries Donald Lachlan McCann became a Jim Cook (VB) became a member of Rowland (Bob) Leigh became a memmember of CIM in 1937 and a life mem- CIM in 1962 and a life member in ber of CIM in 1973. He died on ber in 1984. He died on June 12, 2012. 1995. He died on July 5, 2012. August 29, 2012.

CIM staff extend our sincere condolences. If you know of any CIM member who has recently passed away, send information to obits@cim.org. Extended tributes are available in our online version at www.cim.org/magazine. November 2012 | 103

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45th Annual

Canadian Mineral Processors Operators’ Conference The Canadian Minerals Processors (CMP) Board of Directors proudly invites you to Ottawa from January 22 to 24, 2013, for our 45th Annual Meeting. Attendance levels at the world’s premier mineral processing operators’ conference have swelled in recent years, reaching over 500 delegates in 2012. I promise the 2013 conference will not disappoint; it will exceed expectations, providing you with limitless opportunities for networking, technology and knowledge transfer, and personal development. With 36 outstanding presentations, the technical program is the foundation of the conference. Fellow mill operators and mineral processing professionals will prepare and deliver technical presentations over the course of the three-day period. Two plenary presentations will headline the technical program. Canadian and international speakers will then follow during sessions involving trademark operations-focused topics, including process and design improvements and process start-ups, and, for the first time at the CMP conference, a full session examing geometallurgical practices. Technical papers will support all presentations and will be assembled in the conference proceedings, which will be printed and made available to all delegates before the first presentation is even made. Following last year’s outstanding success of providing a Short Course program featuring three courses, this year’s conference will offer a choice of six courses spread over two days, Sunday and Monday, giving delegates the opportunity to improve their knowledge of process control, grinding process design and optimization, reagent practices, metallurgical accounting and uranium processing. Attendance for these courses is expected to be strong, but depending on the selected topic and the preferred training method, it may be limited. Please check our website (www.cmpsoc.ca) for details. Should you be interested in attending, we encourage you to book early to avoid disappointment. Attendance to the CMP Annual Meeting also includes invitations to a number of social and professional networking events. On Monday evening, the Student Mixer will allow students to meet their peers from Canadian colleges and universities, where education in mineral processing is available. On Tuesday evening, delegates can either socialize at the chairman’s reception and/or participate in the friendly annual hockey game between delegates from eastern and western Canada. Finally, on Wednesday evening, all delegates are invited to the CMP Annual Banquet, where we recognize the exceptional contributions of our peers to the advancement of our Society and of our mineral processor profession. All events, except the hockey game, take place conveniently at the Westin Ottawa. We look forward to you joining us in Ottawa in January for the 2013 CMP Annual Meeting. Erin Legault, chair

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45e Conférence annuelle

General Information | Renseignements généraux

des minéralurgistes du Canada Le conseil d’administration du CMP (minéralogistes du Canada) est fier de vous inviter à sa 45e Conférence annuelle Ottawa, du 22 au 24 janvier 2013. Le nombre de participants à la plus importante conférence de minéralogistes au monde n’a cessé d’augmenter au cours des dernières années, pour atteindre 500 délégués en 2012. Je vous promets une édition 2013 passionnante, qui dépassera toutes les attentes grâce à ses innombrables possibilités de réseautage, de transfert des technologies et des connaissances, et de développement personnel. Avec 36 présentations exceptionnelles, le programme technique constitue la base de la conférence. Pendant trois jours, des opérateurs de broyeur et des professionnels de la minéralurgie effectueront des présentations techniques. Deux séances plénières ouvriront le programme technique. Des conférenciers canadiens et internationaux animeront ensuite des séances sur des sujets classiques liés à nos activités : améliorations des processus et de la conception, démarrage de processus, et pour la première fois, une séance entière sur les pratiques géométallurgiques. Des documents techniques viendront étayer les présentations. Ils seront inclus dans le procès-verbal de la conférence, qui sera imprimé et distribué aux délégués avant même que la première présentation n’ait lieu. L’année dernière, notre programme des cours de courte durée avait connu un succès retentissant. Cette année, nous passons de trois à six cours, lesquels se dérouleront le dimanche et le lundi. Les délégués auront ainsi l’occasion d’améliorer leurs connaissances dans les domaines suivants : contrôle de processus, conception et amélioration du processus de broyage, pratiques liées aux réactifs, comptabilité métallurgique et traitement de l’uranium. Ces cours devraient attirer de nombreux participants, mais le nombre de places pourrait être limité, selon la thématique et la méthode de formation choisies. Veuillez consulter notre site Web (www.cmpsoc.ca) pour en savoir plus. Si vous souhaitez participer, nous vous encourageons à vous inscrire sans tarder afin d’éviter les déceptions. La Conférence annuelle des minéralogistes du Canada comprendra également de nombreux événements sociaux et professionnels de réseautage. Le lundi soir, le « Student Mixer » permettra aux étudiants de rencontrer leurs pairs, issus des divers collèges et universités du pays qui offrent une formation en minéralurgie. Le mardi soir, les participants auront l’occasion de faire meilleure connaissance lors de la réception du président, ou ils pourront choisir de participer au match amical annuel de hockey, opposant les délégués de l’Est et de l’Ouest du Canada. Enfin, le mercredi soir, tous les délégués seront invités au banquet annuel, au cours duquel nous soulignerons les contributions exceptionnelles de nos collègues aux progrès de la société et de la profession de minéralogiste. Tous les événements, à l’exception du match de hockey, auront lieu à l’hôtel The Westin Ottawa. Nous sommes impatients de vous retrouver à Ottawa en janvier, pour la Conférence annuelle des minéralogistes du Canada 2013.

The 45th Annual Canadian Mineral Processors Conference, held in Ottawa at the Westin Hotel from January 22 to 24, 2013, in the Confederation Ballrooms (4th Floor), will feature presentations on various aspects of mineral processing, including operations, plant optimization, flotation, advanced technologies, gold processing and comminution. La 45e Conférence annuelle des minéralogistes du Canada aura lieu à Ottawa, à l’hôtel The Westin, du 22 au 24 janvier 2013, dans la Confederation Ballroom (4e étage). La conférence comprendra des présentations sur divers aspects de la minéralurgie : activités, optimisation d’usine, flottation, technologies de pointe, traitement de l’or et comminution.

Registration | Inscription The early registration fee including taxes is $525 for CIM/AIME/TMS members, $720 for non-members (includes a one-year membership in CIM). Registration includes the threeday meeting, coffee breaks, the Tuesday and Wednesday luncheons and evening social reception, the Wednesday reception and awards banquet, as well as a copy of the proceedings. Conference registration and attendance at social events should be indicated on the registration form or register online at www.cmpsoc.ca. Registration kits for pre-registered delegates can be picked up at the Conference Registration Desk, 4th Floor, Westin Hotel, Monday evening between 19:00 and 22:00 and Tuesday to Thursday between 7:00 to 15:00. New registrations will be taken at these times. Note: Pre-registration forms must be received by December 19, 2012, and any requests for refunds must be made in writing prior to this date. An administration fee of $100 will be charged for new and/or cancelled registrations after this date. L’inscription à tarif préférentiel pour la réunion de cette année coûtera 525 $ pour les membres de l’ICM/AIME/TMS, et 720 $ pour les non membres (taxes comprises). Le tarif pour les non membres comprend une adhésion d’un an à l’ICM. L’inscription donne droit aux avantages suivants : trois jours de réunion, pauses café, dîners du lundi et du mercredi, soirée-réception, réception et banquet de remise de prix le mercredi, copie du procès-verbal des réunions. L’inscription à la conférence et la participation aux événements sociaux doivent être indiquées sur le formulaire d’inscription. Vous pouvez également vous inscrire en ligne à www.cmpsoc.ca. Tous les délégués préenregistrés pourront obtenir leur trousse d’inscription au bureau d’inscription de la conférence, au 4e étage de l’hôtel The Westin, le lundi soir de 19 h à 22 h, et pendant les journées de conférence, de 7 h à 15 h (du mardi au jeudi). Les nouvelles inscriptions seront acceptées pendant ces heures. Remarque : Nous devons recevoir les formulaires de préinscription avant le 19 décembre 2012. Toute demande de remboursement doit être présentée par écrit avant le 19 décembre 2012. Des frais administratifs de 100 $ s’appliqueront pour toute nouvelle réservation ou annulation après cette date.

Erin Legault, Présidente

www.cmpsoc.ca

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Provisional Technical Program | Programme technique provisoire TUESDAY, JANUARY 22 | MARDI 22 JANVIER 8:00 Opening remarks ERIN LEGAULT-SEGUIN

Plenary Presentation 8:15 Manual Control, Process Automation – or Operational Performance Excellence? What is the Difference? P. THWAITES 8:50 From Electrons to Dollars K. FORD, C. FLEMING

Geometallurgy 9:25 Geometallurgical Characterisation at Xstrata Process Support J. SLIWINSKI, L. KORMOS, G. HILL 9:50 BREAK | PAUSE

10:20 Flowsheet Development for the Hypogene Geomet Unit in Ivanhoe’s Kamoa Copper Project N. OTTER, J. OLIVEIRA, D. BROUGHTON, S. AMOS, A. HANNAFORD

10:45 Flotation Process Optimisation for Variable Ore D. HATTON, D. HATFIELD

11:10 Geometallurgical Modeling of the Dumont Deposit, “Do you Know Where your Nickel is?” M. SCIORTINO, J. KORCZAK, J. MUINONEN, A. ST.-JEAN

11:35 The Development of a Small-Scale Test for Rapid Characterisation of Flotation Response (JKMSI) DEE BRADSHAW, FRANCOIS VOS

10:20 New Technology and Approaches in Reagent Development and Applications in the Processing of Precious Metals Ores T. BHAMBHANI

10:45 The “Next Generation” Large Diameter Slurry Pumps for Aurora North R. CLEMINSON, D. WOLFE 11:10 Recovery of Chromite Fines S. CHANG, S. YALCIN, M.OLIAZADEH 11:35 Comparison of Uranium Solvent Extraction Strip Options D. VAN TONDER, C. EDWARDS 12:00 LUNCH | DÎNER

Design & Development 1:30 Haile Gold Mine Metallurgy and Flowsheet Review DEAL, SPICHER, TITTES, WICKENS

1:55 Noront Underground Mill Development P. SEMPLE 2:20 AuRico Young Davidson Mine - From Design to Start-Up A. CORMIER 14:45 BREAK | PAUSE

3:15 Meadowbank Mill Throughput Ramp-up P. NAWEJ MUTEB, J. ALLAIRE 3:40 Design and Implementation of a Brownfield SAG Pre-Crush Circuit K. LEE, G.M. CASTILLO, C. BISSUE, G. THIES 4:05 Design of a Leaching Strategy to Extract Gold from Eleonore Mine Ultrafine Sulphide Concentrate G. DESCHÊNES, M. FULTON

12:00 LUNCH | DÎNER

Comminution 13:30 Operational Improvements in Six Mineral Processing Plants by Manipulation of Grinding Circuit “Classification System Efficiency” R. MCIVOR 13:55 Achievement of High Energy Efficiency in Grinding Mills at Santa Rita S. LATCHIREDDI, E. FARIA 14:20 Optimization of Milling Capacity in Antamina Through Improvements Implemented in the Primary Crushing J. GARCÍA LINARES, C. AGUILAR LEON, D. ESTRELLA CALERO 14:45 BREAK | PAUSE

15:15 Comparison of an HPGR / Stirred Mill Circuit and an Existing SABC Circuit for the Huckleberry Mill C. WANG, S. NADOLSKI, O. MEJIA, B. KLEIN, J. DROZDIAK

15:40 Hybrid CAVEX 800 Cyclone Testing and Installation at HVC S. YU 16:05 Study the Effect of Crystal Structure on Milling and Liberation Performance of Minerals V. SINGH A., U. SANKRITYAYANB, V. TATHAVADKAR, R. VENUGOPALB, V. K. SAXENAB

WEDNESDAY, JANUARY 23 | MERCREDI 23 JANVIER

Testwork & Operations Applied Research 8:35 A Laboratory Protocol to Evaluate Potential Chemical Interferences in Flotation Circuit Applications C. SPENCE, B. COUSINS, B. O’ROURKE

9:00 VERTIMILL® Grinding Mill Technology: Collaborative Research and Performance Review of the Machines at Newcrest Cadia J. ALLEN, S. PALANIANDY, M. POWELL, M. HILDEN

9:25 Use of Biopolymers to Increase the Gold Production in Leaching and Other Gold Recovery Processes R. A. LAUTEN 9:50 BREAK | PAUSE

THURSDAY, JANUARY 24 | JEUDI 24 JANVIER

Process Control 9:00 Xstrata Nickel SAG Mill Performance Improvements F. LETARTE-LAVOIE, M. RUEL

9:25 A Non-Nuclear Density Meter and Mass Flow System Measuring Mining Slurries with Entrained Gas R. BATEY 9:50 BREAK | PAUSE

10:20 From Stabilization to Optimization; Process Control in the Flotation Process X. JIN 10:45 Flotation Process Optimization Using Outotec FrothControl Solution M. VAUHKONEN, A. LEHIKOINEN, J. KOURUNEN, M. MONONEN 11:10 Control of Size Distribution of the Ore Feeding a SemiAutogenous Grinding Mill C. BAZIN, F. ROBICHAUD 11:35 IMPC 2014 12:00 LUNCH | DÎNER

Flotation 1:30 The Application of the StackCell Technology for Fine Coal Recovery R. GRALEY, J. KOHMUENCH, E. YAN, L. CHRISTODOULOU 1:55 Study of Relationship Between Pyrochlore Matrix Composition and Surface Chemistry Effects on Collector Adsorption C. CHELGANI, B. HART, J. MAROIS, M. OURRIBAN

2:20 The Impact of Grinding Chemistry on Galena Flotation at Exxaro's Rosh Pinah Mine C. GREET, M. LOMBARD, P. KAPOLO 14:45 BREAK | PAUSE

3:15 Maximizing Concentrate Revenues at the Xstrata Copper Kidd Concentrator A. LEGGETT, G.R. MORIN 3:40 Market Driven Performance Improvements at Brunswick C. DEREDIN

4:05 Conference adjourns

104-107 CMP 2012 v9_Layout 1 2012-10-30 1:12 PM Page 107

Accommodations | Hébergement A special room rate of $193 (single/double) and $243 (deluxe), which includes complementary internet, has been negotiated for attendees at the Westin Hotel (reference the Canadian Mineral Processors Conference). The Westin Hotel will only guarantee these rooms until January 7, 2013. Last year, our block of rooms sold out in December so please book early to avoid disappointment. Phone (613) 560-7000 (Fax (613) 560-2707) for room reservations. You can also go online, through the conference hotel link on our website www.cmpsoc.ca. Les participants ont droit à un taux spécial de 193 $ (chambre simple/double) ou 243 $ (chambre de luxe), avec Internet gratuit, à l’hôtel The Westin (mentionner la Conférence annuelle des minéralogistes du Canada). L’hôtel The Westin ne garantira plus ces réservations après le 7 janvier 2013. L’année dernière, toutes nos chambres avaient déjà été réservées en décembre. Nous vous demandons donc d’agir au plus vite pour éviter les déceptions. Vous pouvez effectuer vos réservations par téléphone, au (613) 560-7000 ou par télécopieur, au (613) 560-2707. Vous avez également la possibilité de réserver une chambre en ligne, en cliquant sur le lien de l’hôtel qui se trouve sur notre site Web www.cmpsoc.ca.

Short Courses | Cours de courte durée Six short courses will be at CMP 2013. L’édition 2013 comprend six cours de courte durée.

Social Program | Programme sociale All activities take place at the Westin Hotel, unless otherwise indicated. Tous les activités se déroulent à l’Hôtel Westin, sauf si indiqué autrement. MONDAY | LUNDI 20h–23h STUDENT MIXER 4th Floor Westin Hotel Soirée « Student Mixer » 4e étage, hôtel The Westin 16h30–24h

SUNDAY, JANUARY 20 – FULL DAY | DIMANCHE 20 JANVIER – TOUTE LA JOURNÉE The Winning of Uranium (Chuck Edwards) H. Process Control in the Minerals Industry (Michel Ruel)

CMP LANDMARKS LOUNGE 3rd Floor, Daly’s, Westin Hotel 3e étage, Daly’s, hôtel The Westin

TUESDAY | MARDI 12h Beer and Sandwich Social 4th Floor Westin Hotel Rencontre bières et sandwichs 4e étage, hôtel The Westin

SUNDAY, JANUARY 20 – HALF DAY (PM) | DIMANCHE 20 JANVIER – DEMI-JOURNÉE (APRÈS-MIDI) SAGDesign™: comminution circuits (John Starkey) MONDAY, JANUARY 21 – FULL DAY | LUNDI 21 JANVIER – TOUTE LA JOURNÉE Chemical Fundamentals in Mineral Processing (Brett Cousins) Practical Tools for Maximizing Grinding Efficiency (Rob McIvor) State of the Art Metallurgical Accounting (Frédéric Flament)

16h30–21h

All costs include lunch, coffee breaks and course materials. Attendance is limited, please register early. Les dîners, pauses café et matériels de cours sont inclus dans les frais d’inscription. Comme le nombre de places est limité, nous vous demandons de vous inscrire sans tarder.

Companion’s Program | Programme complémentaire The companion’s program this year will offer a daily Coffee and Tea Social, so companions can arrange their activities for the day. The cost of this program is $25. Le programme complémentaire de cette année comprendra un événement café et thé, au cours duquel les participants pourront prévoir leurs activités de la journée. Le coût de ce programme est de 25 $.

Authors | Auteurs Authors, session chairs and regional representatives must register as conference delegates. A speaker’s breakfast will be provided the day of their presentation at 7:00 a.m., tentatively held in the Quebec Room. Please contact John Chaulk, (613) 9470394, john.chaulk@nrcan.gc.ca, for presentation information. Les auteurs, les responsables de séances et les représentants régionaux doivent s’inscrire comme délégués de la conférence. Un déjeuner sera offert aux conférenciers le jour de leur présentation, à 7 h, sans doute dans la Quebec Room. Les auteurs sont priés de communiquer avec John Chaulk au (613) 947-0394, ou à john.chaulk@nrcan.gc.ca pour obtenir des renseignements sur la présentation.

CMP Landmarks Lounge 3rd Floor, Daly’s, Westin Hotel 3e étage, Daly’s, hôtel The Westin

19h

Hockey Cup Challenge Défi de hockey Carleton University

21h

Chairman’s Reception Réception du président Governor General’s Ballroom

WEDNESDAY | MERCREDI 12h Celebratory Luncheon 4th Floor Westin Hotel Dîner de célébration 4e étage, hôtel The Westin 16h30–18h30 CMP Landmarks Lounge 3rd Floor, Daly’s, Westin Hotel CMP Landmarks Lounge 3e étage, Daly’s, hôtel The Westin 18h

Executive Reception Colonel By Suite Réception des dirigeants Colonel By Suite

18h30

Reception 4th Floor, Westin Hotel Réception 4e étage, hôtel The Westin

19h30

Annual Banquet Confederation Ballroom Banquet annuel Confederation Ballroom

www.cmpsoc.ca

108-114 Technical Abstracts v3_Abstracts 2012-10-30 11:42 AM Page 108

TECHNICAL ABSTRACTS

CIM

journal

Galvanic interaction in selfheating of sulphide mixtures R. Payant, F. Rosenblum, J. E. Nesset, and J. A. Finch, Department of Mining and Materials Engineering, McGill University, Montréal, QC

ABSTRACT Under certain conditions of moisture and oxygen, sulphides can spontaneously self-heat. We tested a hypothesis that galvanic interaction between some sulphides can promote self-heating. Galvanic interaction is controlled by the rest potential difference between sulphides and particle size. A series of binary sulphide mixtures was tested. Individual sulphides and mixtures with low rest potential difference did not self-heat, but mixtures of high rest potential difference did. When testing pyrite-sphalerite mixtures, self-heating increased inversely with particle size, with the fineness of the pyrite governing self-heating, indicating the rate-limiting step is the reduction reaction. The results support the hypothesis that galvanic interaction contributes to sulphide self-heating. A possible mechanism based on hydrogen sulphide as an intermediate product is proposed. The understanding gained will be of interest to those involved in storage, shipping, and disposal of sulphides. RÉSUMÉ Sous certaines conditions d’humidité et d’oxygène, les sulfures peuvent se mettre à chauffer spontanément. Nous avons vérifié une hypothèse selon laquelle l’interaction galvanique entre certains sulfures peut promouvoir l’auto-échauffement. L’interaction galvanique est contrôlée par la différence de potentiel de corrosion entre les sulfures et la granulométrie. Une série de mélanges de deux sulfures a été mise à l’épreuve. Les sulfures individuels et les mélanges ayant une différence de potentiel de corrosion peu élevée ne se sont pas auto-échauffés; cependant les mélanges à différence de potentiel de corrosion élevée se sont auto-échauffés. Dans les mélanges pyrite-sphalérite, l’autoéchauffement augmentait de manière inversement proportionnelle à la granulométrie, où la finesse de la pyrite déterminait l’auto-échauffement, indiquant que l’étape cinétiquement limitante est la réaction de réduction. Les résultats soutiennent l’hypothèse qu’une interaction galvanique contribue à l’auto-échauffement des sulfures. Un mécanisme possible basé sur le sulfure d’hydrogène comme produit intermédiaire est proposé. La compréhension acquise sera d’intérêt pour les personnes responsables de l’entreposage, du transport et de l’élimination des sulfures.

Enabling progressive energy management practice in minerals operations D. L. Millar and M. Levesque, Bharti School of Engineering, Laurentian University, Sudbury, ON; G. Lyle and K. Bullock, Centre for Excellence in Mining Innovation, Sudbury, ON

ABSTRACT The options for reducing the carbon footprint of energy use in mining fall into three categories of activity: i) reducing demand, ii) improving energy utilization, and iii) adopting low carbon energy technologies. In addition to the environmental imperative, the economic case for these activities gains higher priority as the prices of electricity, gas, and liquid fuels increase. Low-carbon, energy-saving technology options that are available to mining industry companies lead to projects with return rates that must compete alongside other capital-intensive projects considered by mining company boards. Energy projects frequently involve longer payback periods and lower rates of return than those of competing bids for capital, such as new mineral property developments. For energy services companies that specialize in the financing, construction, efficient operation, and maintenance of energy projects, the same returns and payback periods can be considered acceptable or even attractive. RÉSUMÉ Les options pour réduire le bilan carbone de l’utilisation de l’énergie dans les mines se subdivisent en trois catégories d’activités : i) réduction de la demande, ii) amélioration de l’utilisation de l’énergie et iii) adoption de technologies énergétiques utilisant peu de carbone. En plus de l’obligation environnementale, l’argument économique pour ces activités monte en priorité alors qu’augmentent les prix de l’électricité, du gaz et des carburants liquides. Des options de technologies disponible utilisant peu de carbone et qui économisent l’énergie pour les mines mènent à des projets avec des taux de rendement qui doivent compétitionner avec les autres projets à forte demande de capitaux qu’étudient les conseils d’administration des compagnies minières. Les projets énergétiques comportent souvent de longues périodes de recouvrement et des taux de rendement inférieurs à d’autres en compétition pour les capitaux, par exemple, le développement de nouvelles propriétés minérales. Pour les entreprises de services énergétiques qui se spécialisent dans le financement, la construction, l’exploitation efficace et l’entretien des projets énergétiques, les mêmes rendements et périodes de recouvrement peuvent être considérées acceptables, voire attrayantes.

Excerpts taken from abstracts in CIM Journal, Vol. 3, No. 3. To subscribe, to submit a paper or to be a peer reviewer—www.cim.org 108 | CIM Magazine | Vol. 7, No. 7

108-114 Technical Abstracts v3_Abstracts 2012-10-30 11:42 AM Page 109

CALL FOR PAPERS SOUMETTEZ UN ARTICLE

Submit your technical paper for peer review in the CIM Journal Soumettez un document technique pour un examen par les pairs dans le CIM Journal The CIM Journal is a leading multidisciplinary publication of the Canadian Institute of Mining, Metallurgy and Petroleum (CIM). Le CIM Journal est la publication multidisciplinaire par excellence produite par l’Institut canadien des mines, de la métallurgie et du pétrole (ICM). Now in its third year and published quarterly in full colour, the CIM Journal has become a recognized international resource for high-quality scientific and engineering papers, covering all facets of the mining and minerals industry, such as geology, mining, processing, maintenance, environmental protection, reclamation, mineral economics, corporate responsibility and project management. Entamant sa troisième année d’existence, la publication trimestrielle publiée en couleurs est reconnue comme étant une ressource internationale d’articles de haute qualité dans les domaines de la science et du génie. Toutes les facettes de l’industrie des mines y sont couvertes : la géologie, l’extraction, les procédures, la maintenance, la protection de l'environnement, la réclamation, l’économie minière, la responsabilité sociale des entreprises et la gestion de projet.

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108-114 Technical Abstracts v3_Abstracts 2012-10-30 11:42 AM Page 110

TECHNICAL ABSTRACTS

CIM

journal

Processing history at Vale Canada’s (Inco’s) Ontario nickel-copper smelters pre-1950 B. R. Conard, BRConard Consulting Inc., Oakville, Ontario, Canada

ABSTRACT Occupational epidemiology of the nickel-producing industry has found that inhalation exposures to certain nickel-containing substances are linked to respiratory cancers and to nonmalignant respiratory endpoints. Establishing such a linkage, however, is complicated by the fact that some diseases occur long after exposure to a causal agent (i.e., some diseases have long latencies). Furthermore, most chemical agents (especially nickel substances) vary significantly in their toxicological properties and their concentrations in workplace air have varied over processing history. Because of these complications, it is critical to understand historical exposures to specific nickel substances. To assist in this effort, the author focuses on the history of smelting and its related processes at Vale Canada’s (Inco’s) Ontario operations in the first half of the 20th century. RÉSUMÉ Selon l’épidémiologie du travail de l’industrie productrice de nickel, l’exposition à l’inhalation de certaines substances contenant du nickel est reliée à des cancers respiratoires et à des effets respiratoires bénins. L’établissement d’un tel lien est toutefois compliqué par le fait que certaines maladies se développent longtemps après une exposition à l’agent responsable (c.-à-d. que certaines maladies ont de longues latences). De plus, la plupart des agents chimiques (surtout les substances contenant du nickel) ont des propriétés toxicologiques qui varient beaucoup et leurs concentrations dans l’air des lieux de travail ont varié dans l’histoire des procédés de traitement du minerai. En raison de ces complications, il est absolument nécessaire de comprendre l’histoire de l’exposition à des substances nickélifères spécifiques. Pour ce faire, l’auteur cible l’histoire de la fusion et de ses divers procédés aux installations de Vale Canada (Inco) dans la première moitié du 20e siècle.

Risk-weighted cash flow: a communication tool for engineers and financial professionals on new technology projects M. Kennedy, Norwegian University of Science and Technology, Trondheim, Norway; C. Harris, Accenture, Toronto, Ontario, Canada; A. MacRae, MacRae Technologies, Inc., Hayward, California, U.S.A.

ABSTRACT New technology projects, particularly those involving first-of-a-kind metallurgical facilities, have poor track records achieving overall financial targets. Associated risks include slow start-up, slow ramp-up, and failure to achieve design performance (quality or throughput), which affect cash flow and net present value (NPV) or internal rate of return (IRR). Applied discount rates often lack adequate provision for technological risk. In this paper, the authors will examine project risk and new technology and their role in achieving predicted cash flows. Addressing technological risk using riskweighted returns can prevent marginal projects and give sound projects additional time and resources for optimal front-end loading (FEL)—the level for maximum risk-weighted NPV (rNPV). RÉSUMÉ Les nouveaux projets technologiques, surtout ceux qui impliquent des installations métallurgiques les premières d’un genre, ont de mauvais rendements en ce qui concerne l’atteinte des objectifs financiers généraux. Les risques associés comprennent un démarrage lent, une lente mise en production et l’incapacité d’atteindre le rendement nominal (en qualité ou en quantité); ils touchent les flux de trésorerie et la valeur actualisée nette (VAN) ou le taux de rentabilité interne (TRI). Les taux d’escompte appliqués manquent souvent de provisions pour le risque technologique. Dans cet article, les auteurs examinent le risque associé à un projet et aux nouvelles technologies ainsi que leur rôle dans l’atteinte des flux de trésorerie prévus. Traiter des risques technologiques en utilisant les revenus pondérés selon le risque peut prévenir les projets marginaux et donner aux bons projets plus de temps et de ressources pour un début d’exercice optimal – le niveau pour une valeur actuelle nette (VAN) maximale pondérée selon le risque (rNPV).

Excerpts taken from abstracts in CIM Journal, Vol. 3, No. 4. To subscribe, to submit a paper or to be a peer reviewer—www.cim.org

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

108-114 Technical Abstracts v3_Abstracts 2012-10-30 2:08 PM Page 111

CIM Magazine Editorial Calendar 2013 9 issues + Directory

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FEATURE

FEBRUARY

Exploration and project development *PDAC issue

UPFRONT

TECHNOLOGY FOCUS

Tailings and reclamation

Geoscience

Bonus distribution: SME, PDAC, TMS Energy ‐ Coal, uranium and natural gas

MARCH/APRIL

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*Special Report – Brazil Bonus distribution: ISARC, World Mining Congress, Coal Prep Asset management

MAY

*CIM Convention edition

Award winners and HR leaders

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Bonus distribution: CIM Convention

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Water

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Bonus distribution: Canadian Materials Science Conference

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Bonus distribution: ISARC, World Mining Congress, World Gold

SEPTEMBER

Oil sands

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Bonus distribution: Oil Sands Trade Show, MEMO, GeoMet Mineral processing

OCTOBER

*Special Report – West Africa

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Bonus distribution: COM, MS&T13, International Mines Rescue Body

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Bonus distribution: Safety and Reliability Conference

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CIM DIRECTORY

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For advertising enquiries, contact Dovetail Communications Inc. at 1.866.297.5301 or cim@dvtail.com

108-114 Technical Abstracts v3_Abstracts 2012-10-30 11:42 AM Page 112

TECHNICAL ABSTRACT

exploration and mining geology

Structure, Stratigraphy, U-Pb Geochronology and Alteration Characteristics of Gold Mineralization at the Detour Lake Gold Deposit, Ontario, Canada J. Oliver, J. Ayer, B. Dubé, R. Aubertin, M. Burson, G. Panneton, R. Friedman, and M. Hamilton

ABSTRACT — The Detour Lake gold deposit is located within the northwestern limit of the Archean Abitibi subprovince of the superior province. Mineralized zones are hosted by a sequence of pillowed and massive flows, hyaloclastite units, and altered ultramafic rocks, and are commonly oriented parallel to a series of high-strain zones that are coplanar to the regional-scale Sunday Lake Deformation Zone. Early in its kinematic history, the Sunday Lake Deformation Zone placed older (2.72 Ga) volcanic rocks of the Detour Lake Formation over younger (2.70 Ga) sedimentary rocks of the Caopatina assemblage. Gold mineralization is also parallel to the position of a laterally persistent siliceous rock unit, the 2.725 Ga ‘Chert Marker Horizon.’ The Chert Marker Horizon coincides with the boundary between the mafic-dominated upper Detour Lake Formation and the ultramafic-dominated lower Detour Lake Formation. Stratigraphic and geochronological data suggest that the Chert Marker Horizon is a deformed felsic volcaniclastic unit. At a cut-off of 0.6 g/t Au, the Detour Lake deposit contains 17.26 million ounces of Au within 445.9 million tonnes of rock grading 1.20 g/t Au. Gold occurs in shear-hosted and extensional vein arrays within rocks of the upper and lower Detour Lake Formation and within the Chert Marker Horizon. The Detour Lake deposit has many of the characteristics of a greenstone-hosted, quartz-carbonate vein deposit; its very large size may be attributed to large-scale rheological controls, resulting in the formation of dilatant sites in permissive rock units. SOMMAIRE — Le gîte d’or de Detour Lake est situé à la limite nord-ouest de la sousprovince archéenne de l’Abitibi dans la province du supérieur. Les zones minéralisées sont contenues dans une séquence de laves massives et coussinées, des unités d’hyaloclastites ainsi que des roches ultramafiques altérées et sont le plus souvent orientées parallèlement à une série de zones fortement déformées coplanaires avec la zone de déformation régionale de Sunday Lake. Tôt dans son évolution cinématique, la zone de déformation de Sunday Lake a placé les roches volcaniques plus anciennes (2.70 Ga) de la Formation de Detour Lake par-dessus les roches sédimentaires plus jeunes (2,70 Ga) de l’assemblage de Caopatina. La minéralisation aurifère est également parallèle à une unité de roche siliceuse montrant une bonne continuité latérale, «l’Horizon repère de chert » âgé de 2,725 Ga. L’Horizon repère de chert est situé à la limite entre la partie supérieure de la Formation de Detour Lake, laquelle consiste principalement en roches mafiques, et la partie inférieure de la Formation de Detour Lake principalement constituée de roches ultramafiques. Les données stratigraphiques et géochronologiques suggèrent que l’Horizon repère de chert est en fait une unité de roches volcaniclastiques felsiques déformées

Errata The correct period for Volume 20 of Exploration and Mining Geology is January-December 2011, not 2012 as is mistakenly printed.

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

À une teneur de coupure de 0,6 g / t Au, le gîte de Detour Lake contient une ressource de 17,26 millions d’onces d’Au distribuée dans 445,9 millions de tonnes de roche à une teneur moyenne de 1,20 g / t Au. L’or se trouve dans des réseaux de veines d’extension et de cisaillement mises en place dans les roches des unités supérieure et inférieure de la Formation de Detour Lake ainsi que dans l’Horizon repère de chert. Le dépôt de Detour Lake présente beaucoup des caractéristiques des gîtes d’or filoniens à veines de quartz-carbonate développés dans les ceintures de roches vertes; sa très grande taille peut être attribuée à des contraintes rhéologiques à grande échelle menant à la formation de zones dilatantes dans des unités rocheuses propices.

108-114 Technical Abstracts v3_Abstracts 2012-10-30 11:42 AM Page 113

TECHNICAL ABSTRACT

exploration and mining geology

Importance of GovernmentSponsored High-Resolution Gravimetric, Magnetic and Electromagnetic Surveys for Exploration and Geological Investigations, Abitibi subprovince, Canada P. Keating, J. Goutier, and J. Ayer

ABSTRACT — New, high-resolution geophysical surveys were undertaken over parts of the Abitibi subprovince, Canada to help with geological mapping and to promote mineral exploration. Gravity surveys in the Rouyn-Noranda and Matagami areas (Quebec) allowed better 3-D mapping of important geological structures, and a multiscale edge analysis of ground gravity data over the Blake River Group confirms that major faults behave at depth as predicted by surface geology. Airborne gravimetry west of Matagami (Quebec) helped to identify a new trend south of Lake Grasset that is almost perpendicular to the assumed geological trend of the area. Electromagnetic (EM) surveys, flown in the Chibougamau (Quebec) and Bartlett Dome (Ontario) areas, allowed new conductors to be identified at greater depths than were achievable with previously used EM systems. Airborne magnetic surveys were flown in the Burntbush area (Ontario), and other available high-resolution magnetic data were compiled to produce a continuous and homogenous magnetic grid of the Abitibi region. The resulting compilation map clearly shows the locations of dikes, faults and shears zones, and reveals some fault extensions in areas of extensive overburden. This grid also allows the computation of enhanced maps, such as vertical derivative and tilt maps (e.g., a tilt map shows subtle magnetic features in the Blake River Group that are difficult to see in the total magnetic field or its first derivative). Results from these new surveys show there is considerable value in (1) resurveying areas covered by older surveys, and (2) recompiling data sets from these older surveys. SOMMAIRE — De nouveaux levés géophysiques à haute résolution ont été faits sur certains secteurs de la sous-province d’Abitibi, au Canada, afin d’aider la cartographie géologique et de promouvoir l’exploration minérale. Les levés gravimétriques dans les régions de RouynNoranda et de Matagami (Québec) ont permis une meilleure compréhension cartographique en 3-D de structures géologiques importantes, et une analyse multi-échelle de l’effet de bordure des données gravimétriques au sol dans le Groupe de Blake River confirme que les failles majeures se comportent en profondeur tel que prédit par la géologie de surface. Le levé gravimétrique aéroporté à l’ouest de Matagami (Québec) a permis d’identifier au sud du lac Grasset une nouvelle orientation du grain structural, lequel est presque perpendiculaire à l’orientation des structures géologique initialement postulée dans ce secteur. Les levés électromagnétiques aéroportés (EM) effectués à Chibougamau (Québec) et au Dôme de Bartlett (Ontario) ont permis d’identifier de nouveaux conducteurs à des profondeurs plus grandes que ce qui était possible avec les systèmes EM utilisés auparavant. Un levé magnétique aéroporté a également été effectué dans le secteur de Burntbush (Ontario); ces nouvelles données ont été compilées avec celles d’autres levés aéro magnétiques à haute résolution préexistants afin de produire une grille magnétique continue et homogène dans la région de l’Abitibi. La carte de compilation résultante montre clairement l’emplacement des dykes, des failles et des zones de cisaillement; elle révèle également le tracé de certaines failles dans des secteurs marqués par une couverture importante de mort-terrain. Cette grille permet également le calcul de cartes à valeur ajoutée, telles que les cartes de la dérivée verticale et les cartes d’inclinaison (par exemple, la carte d’inclinaison met en évidence de subtiles variations magnétiques au sein du Groupe de Blake River qui sont difficiles à voir sur les cartes du champ magnétique total ou de sa dérivée première). Les résultats de ces nouveaux levés montrent qu’il est très avantageux (1) de faire de nouveaux levés dans des secteurs qui ont été couverts par des levés plus anciens et (2) de recompiler les données de ces levés plus anciens. Excerpts taken from abstracts in EMG, Vol. 20. Subscribe—www.cim.org

November 2012 | 113

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TECHNICAL ABSTRACTS

canadian metallurgical quarterly Effect of Different Cooling Rates on the Microstructure of Cu-Al-Fe alloy I. Cenoz, Department of Mech. Eng., Energy and Materials, Public University of Navarre, Spain

ABSTRACT The phases obtained in copper aluminium bronze alloy (Cu-Al10-Fe2) cast into a permanent die were investigated. The parameters examined were the pre-heating temperatures of the die and the graphite coating thickness. The phases a and g2 were detected as well as the metastable phases b and g. The intermetallics of the system Fe-Al were obtained in various stoichiometric compositions. The different cooling rates of the casting resulted in two mechanisms of transformation to a grains out of the unstable b phase, one being nucleation and growth producing needle shaped a grains, the other exhibiting a massive transformation to spherical a grains. RÉSUMÉ On a étudié les phases obtenues dans l’alliage de cuivre aluminium bronze (Cu-Al10-Fe2) coulé dans un moule permanent. Les paramètres examinés incluaient les températures de préchauffage du moule et l’épaisseur du revêtement de graphite. On a détecté les phases a et g2 ainsi que les phases métastables b’ et g’. On a obtenu les composés intermétalliques du système Fe-Al sous des compositions stoechiométriques variées. Les différentes vitesses de refroidissement du moulage ont résulté en deux mécanismes de transformation en grains a à partir de la phase b instable, l’un étant la nucléation et la croissance produisant des grains a en forme d’aiguille, l’autre exhibant une transformation massive en grains a sphériques.

Formation Mechanism of IDZ During Coating of IN738 by Single Step Gas Phase Aluminizing H. Rafieea*, S. Rastegaria, H. Arabib a School of Metallurgy and Materials Engineering, Iran University of Science and Technology (IUST), Narmak, Tehran, Iran b Center of Excellence for Advanced Materials Processing (CEAMP), School of Metallurgy and Materials Engineering, IUST, Tehran, Iran

ABSTRACT Formation mechanism of interdiffusion zone (IDZ) during gas phase aluminizing of nickel base superalloy IN738LC and also the effects of temperature and Al-activity on microstructure of IDZ were investigated in this research. For this purpose a single step gas phase aluminizing technique was applied for coating the surfaces of IN738LC specimens at two different processing temperatures (i.e. 850ºC and 1050ºC) and various pack compositions. Then the coating microstructures were evaluated using scanning electron microscope (SEM), EDS and XRD techniques. The results showed that at low temperature, coating were formed by inward diffusion of Al; whereas at high temperature both outward diffusion of Ni and inward diffusion of Al occurred, resulted in the formation of a columnar structure or interdiffusion zone (IDZ). By increasing Alactivity in the powder mixture, it is shown that the amount of Al within the inner layer of the coating increased. RÉSUMÉ Au cours de cette recherche, on a étudié le mécanisme de formation de la zone d’interdiffusion (IDZ) lors de la calorisation en phase gazeuse du superalliage à base de nickel, IN738LC ainsi que les effets de la température et de l’activité de l’Al sur la microstructure de l’IDZ. Dans ce dessein, on a appliqué une technique de calorisation en phase gazeuse à étape unique pour revêtir les surfaces des échantillons d’IN738LC à deux températures différentes de traitement (i.e. 850°C et 1050°C) et avec diverses compositions de poudre. Ensuite, on a évalué les microstructures du revêtement en utilisant les techniques du microscope électronique à balayage (SEM), de l’EDS et de l’XRD. Les résultats ont montré qu’à basse température, le revêtement était formé par diffusion de l’Al vers l’intérieur alors qu’à haute température, tant la diffusion du Ni vers l’extérieur que la diffusion de l’Al vers l’intérieur se produisaient, résultant en la formation d’une structure en colonnes ou zone d’interdiffusion (IDZ). En augmentant l’activité de l’Al dans le mélange en poudre, on montre que la quantité d’Al à l’intérieur de la couche interne du revêtement augmentait.

Excerpts taken from abstracts in CMQ, Vol. 50, No. 1. Subscribe—www.cmq-online.ca

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

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INNOVATION SHOWCASE

GIW INDUSTRIES, INC. Slurry products for mining and minerals processing GIW is well-known for producing reliable and long-lasting slurry pumps. By listening to its customers, GIW continually strives to create new products that provide just what its customers need: rugged cost-effective solutions and services that extend wear life. One of GIW’s newest products is its patented hydrocyclone. The GIW hydrocyclone uses a straightforward design that is easy to install and maintain. Only seven fasteners are needed for complete rebuild. The “twist-lock” option makes apex removal and service a breeze. Drop-in, glue free liners reduce build time by 75 per cent. Weep holes for early wear detection can virtually eliminate unplanned outages.

KLOHN CRIPPEN BERGER Klohn Crippen Berger (KCB) provides engineering, geosciences and environmental solutions for mining projects globally from strategic locations in Canada, Australia, Peru and England. Innovative solutions are realized through integrated professional teams pragmatically tackling challenges faced by mining companies. Thinking outside the box while being aware of the obvious leads to solutions, such as the STP Wetlands, an award-winning wetland solution in Alberta’s oil sands. By mimicking nature, utilising natural landscapes, and applying sound engineering and environmental design to a river diversion and environmental compensation challenge, KCB developed a sustainable wetland system providing operational water diversion, environmental compensation, and a landscape for closure at half the construction cost of previous project concepts.

For your slurry pumping challenges, the Mill Duty Xtra Heavy (MDX) slurry pump can reduce operating costs by matching pump operating cycle times with scheduled mill outages. The MDX series pumps are specifically designed for the hard rock mining industry – this means fewer production disruptions and increased operational efficiency. Contact GIW today to simplify your slurry processes. www.giwindustries.com +1-706-863-1011

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117-117 Preview_Adv_V4_PC_Ad Index 2012-10-30 11:41 AM Page 117

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How NAME opened up Canada’s North: Jack Hammell and the birth of aerial prospecting by Correy Baldwin

Courtesy of Canada Aviation and Space Museum

n the summer of 1925, two brothers, Lorne and Ray Hammell knew he was onto something. Aircraft could Howey, found gold at Red Lake in northwestern Ontario. allow prospectors and miners to access remote locations The next year saw a gold rush into this remote northern quickly and easily, and in all seasons. By 1928, he had teamed area that was to be the last of the old-style rushes. up with mining engineer and WWI pilot Harold “Doc” Oakes, The Howey brothers and together they started invited a man named Jack Northern Aerial Minerals Hammell to assess their Exploration, or NAME – Red Lake discovery, and the world’s first aerial Hammell agreed to back prospecting company. the development of their Hammell’s vision was mine. A former prizefighttimely. Winter flying had er whose boxing nickonly begun around 1917, name, “the Whirlwind,” but advances in aviation proved apt for his busiand aircraft design were ness approach as well, producing aircraft that Hammell made a name for were better adapted to the himself promoting mining northern climate. NAME ventures in the North – took advantage of new airgetting his start in the craft that could be equipzinc-copper fields of Flin ped with either floats for Flon, Manitoba, before water landing in summer, moving to the silver mines or skis for landing on at Cobalt, the Porcupine snow or ice in winter. The gold deposits near TimFokker and the Fairchild mins, and later the gold models, both used by T.M. Reid, Northern Aerial Minerals Exploration’s pilot, poses in front of a Fokker Super mines of Kirkland Lake. NAME, were the most Universal equipped with skis in Grande rivière de le Baleine, Quebec, December 1928. The men were eager to popular. Although Ameribegin work, but by then can-designed, both were winter was setting in, making it difficult to transport supplies built in the Montreal area and their popularity gave a boost to and equipment 300 kilometres through the bush. In the mean- the Canadian aviation industry. time, word had gone out about their gold discovery, and other Oakes had his hand in aircraft innovation as well: he miners would soon be arriving. improved engine heating for winter flight while working for an It was then that the ever-industrious Hammell had an idea airline supply company in 1926. that would forever change the mining industry. Hammell conNAME prospected throughout the North with a fleet of 10 vinced the Ontario Forestry Department to let him use seven aircraft and a crew that grew to 100 and then to 200 prospecof their aircraft, and arranged to airlift the supplies to the tors. The company established 34 bases, from northern Howey mine, thus cutting a 10-day journey by sleigh to a mere Ontario to the Yukon, to the Ungava region of northern Que90-minute flight. The Howey gold mine got a head start on the bec. Success came quickly. In their first year, two NAME Red Lake rush, and prospered as a result. prospectors found gold at Pickle Lake, north of Thunder Bay, Miners and prospectors journeyed large distances by dog and established the Pickle Crow mine. Many more discoveries sled through the unforgiving wilderness, as they always had. by NAME prospectors were to come. But for the first time they competed not just with each other A multitude of companies followed NAME’s lead, and soon but with something entirely new – bush pilots. The Red Lake airplanes – and the bush pilots who flew them – became an interush marked a modernization of the industry and a major gral part of the industry. Although NAME’s efforts did not result shift in the way northern mineral exploration and develop- in any mine development in the Far North, its legacy in opening ment was done. up the region to exploration and prospecting is undeniable. CIM 118 | CIM Magazine | Vol. 7, No. 7

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