CIM Magazine February 2012

Page 1

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CONTENTS|CONTENU CIM MAGAZINE | FEBRUARY 2012 | FÉVRIER 2012

TOOLS OF THE TRADE 12

Exploration Compiled by E. Moore

NEWS 18

How do we look? “Canada Day” at Mines and Money

20

Updated acid prevention guidelines GARD Guide

22

Go west! AME BC Roundup buoyed by mining sector

23

Back to basics MEMO conference makes connections

24

Solid Gold, Wahgoshig Nation clash Junior miner

26

Huckleberry goes shopping Mine extension plan

London puts spotlight on Canuck mining by A. Reitman to make global implementation easier by R. Andrews confidence by M. Chisholm in Saskatoon by R. Bergen

26

takes on injunction against exploration by K. Lagowski means new equipment needed by P. Diekmeyer

COLUMNS 28

MAC Economic Commentary Sovereign wealth funds: a growing opportunity or a policy concern?

40

by P. Stothart

30

Supply Side Get the most out of media releases by J. Baird

32

Eye on Business Maximizing technology investments through intellectual property

34 36

HR Outlook Knowledge is power by R. Montpellier Standards ISO 50001 helps manage energy costs

38

in mining by K. Bockasten Guest column Using the “gig economy” to surmount the skills shortage by K. Rodgers

by M. Penner, R. Cheung and M. Eggers

95

RockEng12 UPFRONT

PRELIMINARY PROGRAM 21st Canadian Rock Mechanics Symposium Westin Edmonton Hotel MAY 5 to 9, 2012

40

Satellites that “feel” the Earth InSAR services from MDA help LKAB keep

42

First Nations and human relations Running Deer Resources’ holistic approach

infrastructure safe by B.L. Campbell by A. Lopez-Pacheco

44 46

Flash of brilliance Kinross Gold’s Paracatu operation tests out flash flotation by E. Moore Alternative prospects Perspectives on getting financed from experts at E&Y, Altus

48

Capital, Scipion and Investec by A. Reitman 3D data comes alive Golder’s interactive centre located in Toronto’s financial district by K. Lagowski

50

Decisions, decisions Mark Rebagliati takes questions on the risks and rewards of his career by G. Lanktree

54 FEATURE | ARTICLE VEDETTE 54

Room for continuous improvement Lean manufacturing principles are bringing hefty gains to mine operators by D. Zlotnikov

60

Un changement peut être profitable Les principes de production allégée génèrent d’énormes profits aux opérateurs miniers.

62

PROJECT PROFILE | PROJET EN VEDETTE 62

68

A modern mine in an ancient land Eldorado Gold, despite resistance during development, is leading a growing gold mining industry in Turkey by E. Moore Une mine moderne dans un pays millénaire Malgré un début difficile, Eldorado Gold est le chef de file de l’exploitation aurifère grandissante en Turquie

CIM COMMUNITY 90 91 93

The benefits of change CIM Distinguished Lecturer Bern Klein challenges the conservative culture of mining by A. Lopez-Pacheco From the big city to the pit Geological engineering student has her sights on a bright, sustainable future by A. Lopez-Pacheco Mining Hall of Fame dinner draws record crowd The community celebrates the careers of CMHF’s five newest members by K. Lagowski

PRELIMINARY PROGRAM PROGRAMME PRÉLIMINAIRE

HISTORIES 105 107

Australia (Part 2) by R. J. Cathro A hundred years of fossil fuels research at CANMET (Part 1)

70

by D. Reeve

TECHNICAL ABSTRACTS 109 110

CIM Journal Canadian Metallurgical Quarterly

IN EVERY ISSUE 6 8 10 92 94 111 116 118

Editor’s message President’s notes / Mot du président Linkedin comments Calendar Welcoming new members Innovation showcase Professional directory Mining Lore Death Valley Scotty spun yarns into gold by C. Baldwin

Shaw Conference Centre MAY 6 TO 9 . 6 AU 9 MAI

editor’s letter

“Insight is not a light bulb that goes off inside our heads. It is a flickering candle that can easily be snuffed out.” ~ Malcolm Gladwell

Editor-in-chief Angela Hamlyn, editor@cim.org Managing Editor Joan Tomiuk, jtomiuk@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 News, Histories and Technical Section:

Andrea Nichiporuk (Maternity leave), anichiporuk@cim.org Contributing Editor:

It’s the little things The challenge is not new: How do we – as individuals and organizations – strike a balance between well-defined processes conceived to effectively “get the job done” and the operational agility necessary to take advantage of new ideas that could lead to improvements? This becomes especially complex when one considers that those ideas might spring up from anywhere and everywhere along the operational chain. In the February feature “Room for improvement,” writer Dan Zlotnikov examines how some organizations are looking at the time-honoured business practice of “optimization” through a new lens, focusing not on a defined end goal, but rather on the incremental, and often small, process improvements that can have some big impacts on mining operations: so-called continuous improvement. The approach emphasizes the value to be found in incremental, continual steps and recognizes that everyone involved in the production process, including – or perhaps especially – those on the front line, are responsible for the identification and removal of suboptimal processes. You’ll read accounts about continuous improvement processes in action, including Barrick Gold managers, who serve two-year stints as “business improvement coaches,” and front-line personnel at Suncor, who make just such improvements in consultation with their supervisors, but without needing to ask permission from the managers. Meanwhile, if inspiration from the latest developments in operational excellence is what you are looking for, then Edmonton is the place to be this May. Be sure to check out the preliminary programs for the CIM Conference & Exhibition 2012 on page 70 and RockEng12 on page 95. Both feature worldclass technical programs, not-to-be missed workshops and short courses, as well as dynamic social programs. We also hope that you enjoy some of the changes we have made to the CIM Magazine template for 2012. The strong support we receive from the CIM Council and national office has enabled us to reap the rewards of new perspectives from an expanded editorial team and a broader international reach, as we continue on our own journey of continuous improvement.

Hartley Butler George, hbgeorge@cim.org Web Editor Nathan Hall, nhall@cim.org Publisher CIM Contributors Richard Andrews, Jon Baird, Correy Baldwin, Klas Bockasten, Barbara L. Campbell, R.J. Cathro, Richard Cheung, Mike Chisholm, Peter Diekmeyer, Melanie Eggers, Krystyna Lagowski, Graham Lanktree, Alexandra LopezPacheco, Ryan Montpellier, Eavan Moore, Mark Penner, David Reeve, Anna Reitman, Kirk Rodgers, Paul Stothart, Dan Zlotnikov Published 8 times a year by CIM 1250 – 3500 de Maisonneuve Blvd. West Westmount, QC, H3Z 3C1 Tel.: 514.939.2710; Fax: 514.939.2714 www.cim.org; Email: magazine@cim.org Subscriptions Included in CIM membership ($170.00); Non-members (Canada), $220.00/yr (PE, MB, SK, AB, NT, NU, YT add $11.00 GST, BC add $26.40 HST, ON, NB, NL add $28.60 HST, QC add $32.95 GST + PST, NS add $33.00 HST) Non-Members USA and International: US$240.00/year Single copies, $25.00. Advertising Sales Dovetail Communications Inc. 30 East Beaver Creek Rd., Ste. 202 Richmond Hill, Ontario L4B 1J2 Tel.: 905.886.6640; Fax: 905.886.6615; www.dvtail.com National Account Executives 905.886.6641 Janet Jeffery, jjeffery@dvtail.com, ext. 329 Neal Young, nyoung@dvtail.com, ext. 325 Michael Hackett-Pedler, mhackett-pedler@dvtail.com, ext. 317

This month’s cover The Japanese word kaizen, comprised of the characters kai (change) and zen (to become good), has become synonymous with the business practice described as continuous improvement. Cover, layout and design by Clò Communications Inc. www.clocommunications.com

Angela Hamlyn, Editor-in-chief

6 | CIM Magazine | Vol. 7, No. 1

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.

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president’s notes The CIM Journal enters its third year For several years, CIM made its peer-reviewed technical papers (the renowned CIM Bulletin) available solely through our web site, with only summaries printed in CIM Magazine. This practice was undertaken to save publishing costs, but proved unpopular with both authors and readers. In addition, CIM’s reputation as a technical publisher appeared to suffer. The improving financial strength of CIM allowed us to rethink our technical publications in 2009. A membership survey showed very strong support for a printed technical publication over an online format. In response, CIM decided to once again print its peer-reviewed technical papers in a new quarterly publication, the CIM Journal, to which every full CIM national member is entitled. We launched the journal at our annual conference in Vancouver in 2010. A CIM Technical Publications Committee was developed to lead, manage and coordinate all printed technical publications, with initial emphasis on the CIM Journal. We also refined and strengthened the CIM procedures for peer review of submitted manuscripts, with reviews managed by each CIM technical society for papers relevant to its area of expertise. Currently, we have 159 volunteer peer reviewers on the job.

We also decided to print every volume in full colour and to publish papers in either French or English (as submitted) with the abstract provided in both languages. Both of these features enhance and broaden the appeal of the CIM Journal, which is provided to CIM members at no extra cost. As we hoped, the CIM Journal has gained international acceptance. More than 40 per cent of the papers it has published have come from countries other than Canada, including Italy, the United Kingdom, the United States, Germany, Australia, India, Russia, Egypt, Jordan, Chile, France and South Africa. In upcoming installments, watch for the occasional single-commodity (such as copper, nickel or iron ore) or single-topic (such as rock engineering, tailings management or comminution) issues. The first such special edition, due in the third quarter of 2012, will be the uranium issue. In closing, I ask all CIM members to consider submitting papers for publication in the CIM Journal, thus ensuring a robust publication that continues to reflect our industry’s wide range of scientific, technical and managerial expertise.

Chuck Edwards CIM President

Le CIM Journal entame sa troisième année Depuis plusieurs années, l’ICM publiait ses articles techniques évalués par des pairs (le réputé CIM Bulletin) uniquement sur son site Web, ne publiant sur papier que des résumés dans CIM Magazine. Nous avions adopté cette façon de faire pour économiser sur les coûts de publication, mais elle s’est avérée impopulaire auprès des auteurs autant que des lecteurs. Qui plus est, la réputation de l’ICM à titre d’éditeur de documents techniques a semblé en souffrir. La solidité financière accrue de l’ICM nous a incités à repenser nos publications techniques en 2009. Un sondage mené auprès des membres a indiqué qu’ils privilégiaient fortement la version sur papier des publications techniques par rapport à la version en ligne. C’est pourquoi l’ICM a décidé de publier de nouveau sur papier ses articles techniques évalués par les pairs dans une nouvelle publication trimestrielle, le CIM Journal, auquel chaque membre national à part entière de l’ICM a accès. Nous avons lancé le CIM Journal à l’occasion de notre congrès annuel, à Vancouver, en 2010. Un comité des publications techniques de l’ICM a été mis sur pied pour diriger, gérer et coordonner toutes les publications techniques imprimées, en accordant une attention particulière au CIM Journal. Nous avons également affiné et renforcé les procédures de l’ICM en matière d’évaluation par les pairs des articles que l’on nous propose. L’examen de chaque article a lieu sous la conduite de la société technique de l’ICM œuvrant dans le domaine d’expertise pertinent. Nous avons actuellement 159 pairs évaluateurs bénévoles qui sont à pied d’œuvre. Nous avons également décidé d’imprimer chaque numéro en couleur et de publier les articles en français ou en anglais (selon la langue 8 | CIM Magazine | Vol. 7, No. 1

dans laquelle ils nous sont soumis) accompagnés d’un résumé dans les deux langues. Ces deux améliorations rendent le CIM Journal, fourni aux membres de l’ICM sans frais supplémentaires, plus attrayant et élargissent son lectorat. Comme nous l’espérions, le CIM Journal y a gagné une reconnaissance internationale. Plus de 40 % des articles publiés provenaient de pays autres que le Canada, dont l’Italie, le Royaume-Uni, les États-Unis, l’Allemagne, l’Australie, l’Inde, la Russie, l’Égypte, la Jordanie, le Chili, la France et l’Afrique du Sud. Dans les prochains numéros, surveillez ceux qui seront consacrés à un seul produit (comme le cuivre, le nickel ou le minerai de fer) ou à un seul sujet (comme la mécanique des roches, la gestion des résidus ou la fragmentation). Le premier de ces numéros spéciaux, devant paraître au troisième trimestre de 2012, portera sur l’uranium. En conclusion, j’invite tous les membres de l’ICM à envisager de soumettre des articles pour le CIM Journal, afin que cette publication continue de proposer du contenu solide à ses lecteurs et de refléter le vaste éventail d’expertises que recèle notre industrie dans les domaines scientifiques, techniques et de la gestion.

Chuck Edwards Président de l’ICM

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What are the practical ways that mining companies can improve community relations? Doing it right the first time: November 2011, Vol. 6, No. 7, p. 68 While working for the Newmont yanacocha Mine and Conga project last June, I recommended that a large percentage of our investment has to be in our employees, contractors and partners (there were over 10,000 in a region of 250,000), transforming them from passive benefits-takers into active community-givers. Here are a couple of other interesting examples: •

Gag Island Nickel project in 2002: A village of 800 people on a remote island in Sorong province in Indonesia desperately needed a better way to travel and connect to the mainland. Partners in the project contributed to the community to get an interisland ship to address this need.

•

Timmins, Ontario in 2008: The North had issues attracting the right skills. Xstrata made a long-term commitment to the community colleges to improve the quality of technical training in the area.

•

The Antamina Mine in Ancash, Peru, organized a strategic planning process a couple of years ago to strengthen their relationship with strategic partners and contractors from the community; the result was stronger community enterprises working with the mine.

Guinea had a good approach with a concept called TPE (très petite entreprise), where the company, with little investment, helped organize women and young people into very small groups to make, for example, jam using local fruit, or gave them contracts for maintaining the company houses, or replanting trees at the mine. Simple things can make a big difference – though one needs to be in sync with community expectations and respond accordingly. Saada Baila Ly, Mining Engineer, Guinea

The greatest untapped resources are the spouses of the employees – usually women. When experts and locals work together on a community project, they build bridges. In New Caledonia, our expert community worked with a local shelter for young mothers, a rewarding experience for all. Jo-Ann Gagnon, Entrepreneur, City in a Box, Saskatchewan

I would say that a large one, in my limited experience, is approachability. For example, one has to be “in the know” to easily contact someone for a door prize donation, find out information, or request company input. I have found that most community engagement activities are passive, either a “we’re going to do this, come to a meeting to tell us what you think,” or someone has specifically approached the company to ask for something. Following are some general ideas on the subject: •

Some sort of centralized body or committee that acts as a representative for all of the mining-related companies in the area. Part of the logic is that the contracting companies are more frequently located in or near communities, tend to be smaller and therefore more fragmented, are often supplying environmentally sensitive materials and services, etc. Generally, I find they do not have a very strong voice, but are very much a part of the social licence to operate.

•

Proactively approaching local interest groups and key figures. The key here is PROactive. “Hi, we were wondering what your group needs and what your interests are currently and how we can help support you.” I mean beyond the city council, Aboriginal groups, etc. – things such as the hospital foundation, environmental groups, rotary, etc.

•

A dedicated website that is promoted as a point of contact and information on community engagement at a local level would be good as well. There is a balance between highlighting all of the things a company is doing locally and also promoting the message that a company is, in fact, locally engaging.

Facts will always speak louder than words! Proactive interest based actions from companies will shut voices of critics. Bertrand De Windt, Senior Executive Business Consultant, Peru

We run our campaigns similar to political campaigns on the corporate level – indentifying supporters, and harnessing them into action to write letters, attend rallies and meetings, and speak out in favour of mining. Al Maiorino, President, Public Strategy Group, Inc., New york

Attention should be paid to cultural discrepancies. Some of the villages in Guinea are very traditional and some would not like to lose that in sustainable development processes. The big challenge again is to be practical, as Al Maiorino put it. For example, how might they (mining companies) manage and contribute to the illiteracy and unemployment of youth in communities surrounding these mining operations. A bauxite mining company that I used to work for in

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Anne Keery, Analytical Economist, British Columbia

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OF TOOLS THE TRADE

exploration

◢ Fordia Vulcan 26 mm Fordia’s new Vulcan 26-mm diamond drill bit, designed for deephole drilling, has the industry’s highest diamond impregnation and an average tested lifespan 1.9 times that of a 12-mm bit. “The main difficulty with a higher impregnation bit is the water supply,” says R&D engineer Benjamin Boyer. “With its patent-pending water management system, the Vulcan 26 mm lasts longer than any other diamond core bit. It is constructed with destructible pins under the bridge that allow fluid circulation all the way to the crown to ensure cooling and consistent wearing.” The 26 mm is compatible with Fordia’s most popular matrices. Additional option CB250 facilitates the passage of the core bit in the wedge; CB112 eases the hole entry and offers greater alignment.

◢ Exploration Tents’ Prospector Pete Insulated walls, breathable canvas, and 25 years of Arctic experience distinguish the tents at Exploration Tents and Arctic Camp Supplies. An insulated 7/8-inch layer of poly fibre batting is sandwiched between a 10-ounce army duck exterior and a 7.4-ounce interior skin. The Prospector Pete model features a washable lining and cross-ventilation. Tents may be custom-built and ship with or without frames. Owner Steve Ward explains that high-tech plastic materials can’t beat canvas: “Moisture will condense and freeze to the fabric. If you crank up the heat it will actually rain inside if there are 3 to 4 people in the tent. The canvas allows the tent to breathe at a controlled rate and carry the moisture through as well.”

◢ GSSI SIR-3000 GPR Data Acquisition System Water-resistant and lightweight at nine pounds with removable battery, this single-channel ground-penetrating radar unit is designed for single-user operation. It has an internal 2 GB Flash memory card and accepts external CompactFlash memory of up to 2 GB. An 800 x 600 colour TFT display allows 3-D imaging in the field. “It’s been seven or eight years now we’ve been producing the SIR-3000, and it’s been by far the most popular GPR unit for industry professionals,” says Jami Harmon, marketing specialist at Geophysical Survey Systems, Inc, the unit’s manufacturer, which also makes compatible antennas. “The data quality is better; the Windows-based interface is very easy to use, so people can learn it very quickly.”

12 | CIM Magazine | Vol. 7, No. 1

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OF TOOLS THE TRADE

exploration

◢ CanDig Mini Excavator The 1,200-pound CanDig Mini Excavator, equipped with a nine hp Honda engine and self-levelling four-wheel drive, digs down to eight feet in tough ground. An eight-inch trenching bucket, 20-inch grading bucket, ripper/root cutter accessory and electric motor are also available. Creator Gordon Leschyson explains why 240 units are at work today. “They’re portable – you can fly them around with a helicopter,” he says. “They’re environmentally friendly because they’re lightweight and they use such a low amount of fuel. They’re low and wide, safer if you cling to the side of a mountain while you’re working.” The 2012 model offers stability on steeper slopes, a stronger pump and valve, and case-hardened bucket teeth.

The most powerful in Atlas Copco’s Christensen core drill line, the new CT20 has a depth capacity of 2,450 metres. Its hydraulic feed system maintains a constant penetration rate by automatically adjusting the feed force depending on rock hardness. “In the old machines you’d have to stand there and make adjustments manually on the control panel,” says Dave Brooker, business line manager, exploration products. “The constant feed rate should increase the bit life.” Along with a redesigned control panel, the CT20 features oil spill plates and a soundreducing canopy for its Tier III engine. Brooker notes that as a chuckdriven machine in which the head has less distance to travel, the CT20 has a lowweight construction compared with its competitors.

14 | CIM Magazine | Vol. 7, No. 1

Courtesy of CSIRO

◢ Atlas Copco CT20

◢ LANDTEM This portable magnetometer, developed at Australian science agency CSIRO and licensed by Outer-Rim Exploration Services, uses SQUIDs (superconducting quantum interference devices) to detect highly conductive deposits like nickel sulphide, silver and gold. More sensitive than conventional coil systems, it directly measures magnetic fields on an extended timescale, allowing it to reach depths past 400 metres and distinguish between ore deposits and conductive overburden. “You have to wait for the response of that overburden to disappear before you can start to see the response of the target ore,” explains Keith Leslie, research group leader, superconductivity & magnetism, at CSIRO. “So you can effectively see different layers by waiting for longer times.”

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OF TOOLS THE TRADE

exploration

◢ Boart Longyear Rod Lifter The ergonomic design of Boart Longyear’s rod lifter spares employees from injury as they manually handle drill rods. Instead of grabbing the steel, each user holds a lightweight grip that keeps their wrists and hands in a neutral position and protects their fingers from sharp, rolling rods. Tungsten carbide teeth hold it in place. “It’s designed to fit over the threads,” explains Kent Adamson, global director of environmental, health and safety for Boart Longyear. “Then the teeth grab the inside of the pipe and they hold. With both people on either end of the pipe, you can hold it and shake it up and down, and it just doesn’t tear loose.”

◢ Minex International Winkie Drill

◢ Inspectorate Sample Prep Facility Responding to an exploration boom in the Yukon, testing organization Inspectorate International opened a sample preparation facility in Whitehorse in 2010. The facility has an entirely self-contained soils room with two drying ovens and plenum dust control. Inspectorate will assume custody of samples on site; dry, crush, and pulverize them in Whitehorse; then ship 100-gram samples overnight to an assay lab in British Columbia. “It costs far less to ship the smaller portion than it would to ship the entire rock sample to Vancouver,” says Ian Mooney, business development manager at Inspectorate. He adds that the company has an employment and revenue-sharing agreement with the Kaska Nation in southeastern Yukon.

At only 100 pounds, the Winkie Drill can be flown by helicopter to remote sites or carried on a mule’s back. Its Unipress hand feed adds another 85 pounds. Powered by a 10-hp, two-cycle gasoline engine, the Winkie drills up to 475 feet using Esize tools, and 400 feet using A-size tools. It has an oil bath gearshift transmission, allowing drilling speeds of 1,200 to 2,800 rpm. “The Winkie is probably the smallest core drill with any kind of depth capacity,” says Parker Backstrom, sales manager at Minex. Its lightweight portability has kept it in production since the 1950s, with only minor changes. An optional tripod and winch setup increases the production rate and lowers the drill crew’s fatigue. Compiled by Eavan Moore

16 | CIM Magazine | Vol. 7, No. 1

news

How do we look? “Canada Day” at Mines and Money London puts spotlight on Canuck mining

On December 4, Canada’s opportunities were on display in the run-up to the Mines and Money conference in London. It was an auspicious beginning for the companies presenting, as they shared the day with Saint Barbara, the patron saint of miners. Although Canada’s reputation as a desirable and relatively stable resource investment destination and financial hub is intact, investors willing to take on greater risks to find higher returns were looking for listed companies with assets elsewhere. From an operating perspective, Canada is viewed favourably, said Ed Bowie of Altus Capital, a U.K.-based fund manager in charge of a natural resources portfolio, although he added that certain parts of British Columbia are more difficult than others for general permitting and land claims issues. Also, there are certain areas around the developed world where environmental antimining lobbies are more vocal, and this can have an impact as well. In terms of TSX-listed companies and investment, he said that the huge pool of companies, making the exchange the biggest globally, is clearly attractive. Ungad Chadda, senior vice-president at TSX, said that parent group TMX’s sponsorship of Canada Day at the international event is not just about getting out the message about the value proposition from a mining perspective, but also to support listed companies. “If you look at any international mining conference, I would argue that the majority of companies are going to be TSX or TSX Venture listed, so it’s important for us to fly the flag here – both the Canadian and TSX flag,” he said. “A day like today is a perfect example of sponsoring and taking the opportunity to get 13 of our companies in front of investors and other players.” Over the last five years, the TSX and Venture exchanges have captured onethird of all equity mining finance and in 18 | CIM Magazine | Vol. 7, No. 1

Courtesy of Mines and Money

By Anna Reitman

Elena Clarici, a fund manager at Scipion Capital, speaking at Mines and Money London’s "Canada Day."

some years, that number has been in the 60 per cent range. Breaking down those investment flows, some half of all capital is coming from Canadian sources, with the rest evenly split between the United States and Europe. But support for future financing, especially from Asian and Middle Eastern investors, is becoming more urgent since the uncertain global economic outlook has dragged down base and precious metals prices. “Many of the companies we have on the market will put off financing for a quarter or more, but to maintain those properties and projects, they are going to need to raise capital,” Chadda notes. “Hopefully, there will be buoyancy in the market, and commodity prices can help. We still expect to raise a significant portion of the world’s mining capital in Toronto.” Chris Wheatley, a London-based private investor in attendance at Canada Day, said that although there are some signs that Canadian-based resources investment is an overcrowded market, he thinks it still has room to run. However, Wheatley tends to invest in Canadian

shares of companies with assets in Africa or South America because he sees a better chance for higher returns. In general, Africa is becoming known as the last frontier of financial opportunity and the place to make returns, said Elena Clarici, a fund manager at Scipion Capital. The firm invests in companies developing African resources that are listed on the major exchanges – TSX, London or ASX – because African equity markets are still in early stages and do not yet have the necessary liquidity. At the end of the day, the implications for Canadian-based resources development are that in a tough capitalraising and diminished returns environment, creative financing solutions need to be found. But certainly Canada is in a strong position to accomplish this. The country’s successful emergence from the financial crisis and its reputation as an investment-friendly country remains intact, despite “protectionist” leanings that resulted in a failed Saskatchewan potash bid and the collapse of a transatlantic merger with the London Stock Exchange. CIM

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Updated acid prevention guidelines GARD Guide to make global implementation easier

The International Network for Acid Prevention (INAP) is updating its wikistyle best-practices guide designed to manage acid rock drainage (ARD). Introduced in 2009, the Global Acid Rock Drainage Guide, or GARD Guide, was developed by the Melbourne-based industry group of 11 major mining companies as a world-wide reference on acid prevention. “The GARD Guide is an evolving tool,” said INAP’s technical manager Terrence Chatwin. Scheduled for completion in the first quarter of 2012, four of the 11 chapters will see revision in this new iteration: characterization, prediction, treatment and mitigation of acid rock drainage. The GARD Guide is free and is published in a web-based format to enable global distribution and continual updating; it will soon contain extra case studies and technical tools. “The guide has been set up using wiki software and has some of the same functionality,” said Rens Verburg, principal geochemist at Golder Associates, which is responsible for upkeep of the wiki. “Anyone can read it, print it, and leave a comment. However, editing of the guide requires special access rights and usernames.” Users who would like to create accounts can contact Verburg through the site. “INAP is always actively encouraging other companies to become members,” Verburg said. “Smaller companies can have input to the guide by leaving comments and contacting Golder or Terrence Chatwin directly. Changes to the guide, for example, based on comments received, are a collaborative effort between INAP and its consultants, with INAP ultimately deciding when and how changes are made.” The ongoing updates will add to the guide’s existing best-practice case study – the Mount Milligan Mine – and some of the new material will use the existing 20 | CIM Magazine | Vol. 7, No. 1

Courtesy of Thompson Creek Metals

By Richard Andrews

The tailings facility under construction at the Mount Milligan Mine in British Columbia. Mount Milligan is the first case study that INAP included in the GARD Guide.

study as a template. According to Chatwin, there will also be new studies in the “Drainage and Treatment” section detailing specific treatment methodologies. Barrick Gold Corporation, one of INAP’s member companies, uses the GARD Guide as a key reference for project environment assessment according to Bill Upton, the company’s director of sustainable development. “The GARD Guide provides information to train and familiarize our environmental professionals as well as our mining and process engineers in these best practices,” he said. With 25 operating mines and projects across five continents, the world’s leading gold producer is syndicating the GARD Guide as part of its business development, environmental management, employee training and corporate governance programs. At the Reko Diq open-cut project in Pakistan, Barrick used the GARD Guide to define the chemical behaviour of the various rock types in the deposit and to classify their acid gener-

ation and metal leaching potential. The chapter on characterization goes into the details of high-risk rock types, which are generally defined by sulphide content and limited acid neutralization potential. According to the guide, rock analysis is very site-specific and requires characterization by both chemical tests and weathering/leaching protocols. “Universal industry uptake of the guide is critical,” said Chatwin. And while Barrick, Rio Tinto and other majors have been instrumental in creating and implementing the guide, “If it’s adopted only by the larger operators and not the smaller ones, the whole industry’s reputation will be tarred with the same brush,” he added. “The intent of the upgrade is to improve the quality and utility of the GARD Guide for all users, whether they be large or small operators, regulators or community leaders – all mining industry stakeholders,” Chatwin explained. CIM The Global Acid Rock Drainage Guide is available at: www.gardguide.com

news

Go west! AME BC Roundup buoyed by mining sector confidence By Mike Chisholm British Columbia, bolstered by record high gold prices and a well-established mining infrastructure, is on track to open or expand 17 mines by 2015. And the provincial government, faced with rising education and health costs, is keen to support a healthy mining industry. “Without you,� BC Minister of Energy and Mines Rich Coleman told delegates at the Association for Mineral Exploration British Columbia (AME BC) 2012 Roundup, “we’re sunk.� In the past century, mining in British Columbia, along with forestry, has been an important economic driver. But with the downturn in the forestry industry, coupled with a rise in commodity prices, the province’s mineral potential has attracted a lot of attention and spending. “In the year 2000, mineral exploration was $20 million,� said Coleman. “In 2011, [it] rose to over $460 million.� At Roundup, 8,000 delegates crammed meeting rooms, hallways and the trade show, where investors and executives mingled with prospectors and geologists. This year’s technical conference attracted hundreds of companies in

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mineral exploration and development, among them, one of the province’s latest stars, the Copper Mountain Mining Corporation. Last summer, the company opened the first large-scale base metal mine in British Columbia in more than a decade, an 18,000-acre copper operation near Princeton. The company worked through difficult economic times to develop the $438 million project and in late 2011, shipped its first load of 11,200 wet metric tonnes of concentrate to Japan. In British Columbia, the government is focused on ensuring the mining industry’s needs are accommodated. “It’s important to our future, and we have to be able to deliver,� Coleman told delegates. As part of their 2011 BC Jobs Plan, the government is focusing on the mining industry. It is streamlining the mine permitting process in an attempt to cut waiting times and turn investments into actual worksites and jobs. The government calls it “One Project; One Process.� A company in the middle of that process is Vancouver’s Imperial Metals Corporation, one of the exhibitors on the conference trade show floor. Imperial is coinciding the completion of its 30,000 tonne per day Red Chris copper/gold mine in west central BC with the planned opening of the BC Hydro Northwest Transmission Line in early 2014. With both federal and provincial environmental permits in hand, the company is now working through the BC Mines Act permitting process. Also in central BC, construction is underway on Thompson Creek Metals’ Mount Milligan open pit copper-gold mine, with production expected in 2013. Company general manager Wes Carson addressed Roundup delegates on his company’s efforts to build a sustainable mine in the 21st century, including First Nations, current and future employees, local residents, politicians and suppliers. Even though British Columbia has definitely felt the North American and European economic setbacks, its proximity to China has helped ease the struggle. Companies are reaping the benefits of delivering materials to the AsiaPacific region. “China just announced their GDP growth for the last quarter and it was 8.9 per cent, which is much higher than people expected it to be�, said Don Lindsay, president and CEO of Teck Resources Limited, after his Roundup presentation. “In Canada, the U.S. and Western Europe, we wouldn’t know what to do with 8.9 per cent growth. These numbers are very, very impressive.� With two major mines in construction, six more in advanced development and 18 mining projects in the early stages of environmental assessment, British Columbia will continue to be one of the top mining development jurisdictions in Canada for years. CIM

news

Back to Basics Maintenance engineering and mine operators connect in Saskatoon

Saskatchewan’s mining industry is booming. The three current potash producers have all been busy adding capacity, and both BHP Billiton and K+S are pressing ahead with their own projects. Likewise, uranium miner Cameco intends to add another 20 million pounds to its global output by 2018, much of which will come from its projects in the Athabasca Basin. But the outlook has not always been so positive for the two sectors, and it was with this history of booms and busts as a backdrop that Saskatoon hosted the Maintenance Engineering / Mine Operators’ Conference. “Maintenance needs to be good during the lean years,” Cameco’s Dave Bronkhorst told those assembled for the panel discussion that opened up the technical sessions. The vice-president responsible for Cameco’s McArthur River, Key Lake and Millennium operations said that commitment to sustained operational excellence must come from the most senior levels. If assets are neglected, he cautioned, the opportunity to capitalize on a rise in prices and demand can be delayed or lost entirely if the facilities cannot match the capacity Students learn the principles of geology at M4S during MEMO in Saskatoon. required. The challenge of building human resources capacity in a province undergoing a growth spurt also drove the conversation. “You have to have a compelling reason to have people join your company,” said Gary Haywood, Golden Band A consortium of applied research for Resources’ COO. He also stated that employee turnover is the treatment and processing of mineral substances, COREM relies on its dynamic inevitable. alliance with members and partners to Bronkhorst added that resisting layoffs during a downturn improve the competitiveness of industrial may not be enough to preserve skills. “It is hard to keep peooperations through the development and ple if they do not have enough to do,” he said. transfer of technological innovations, which are consistent with sustainable Developments and lessons learned at potash and uranium development objectives. operations commanded a large share of the technical session presentations that were devoted to mining and milling, maintenance and reliability, safety and environment, and people and COREM is in a position to offer a highly stimulating professional challenge to those who are passionate about productivity. However, the oil sands and hard rock operations, their work and wish to undertake the pursuit of excellence. as well as the developing gold and diamond sectors in Dynamic and creative persons who would enjoy working Saskatchewan, also added to the event’s “Back to Basics” theme. within a multidisciplinary team are invited to submit their MEMO 2011, held at TCU Place in Saskatoon, included a applications to work at COREM. trade show with 72 exhibiting companies, and the mining education outreach event M4S. Students from more than 60 • Scientific Director - Technology schools attended M4S and explored interactive pavilions • Director – Nonferrous Sector designed to give them a better understanding of the scope • Researchers and potential of career opportunities in the mining, minerals, XComminution CIM metals and materials sectors.

The success and growth of MEMO has created a number of challenges in organizing the annual event. To ensure maintenance engineers and mine operators will be well-served by the location and organization of future conferences, CIM societies, partnered with CIM National office, will use the coming year to plan for the next decade of MEMO conferences. The conference will be put on hold for 2012, and the next one will be in 2013.

Ryan Bergen

By Ryan Bergen

XFlotation XMineralogy

• Engineer – Instrumentation and control • Mineral Resources Technician Visit the “Career opportunities” section of our website www.corem.qc.ca February 2012 | 23

news

Solid Gold, Wahgoshig Nation clash Junior miner takes on injunction against exploration By Krystyna Lagowski Toronto-based Solid Gold Resources filed a notice for leave to appeal an Ontario Supreme Court injunction that ordered them to stop drilling for 120 days on territory claimed by Wahgoshig First Nation (WFN). The company has also sued the Ontario government for $100 million in damages. The disputed area is 200 square kilometres near Matheson, Ontario, which is adjacent to the Wahgoshig reserve. The First Nation says the site contains burial grounds and is frequented by the community for hunting, trapping, fishing, medicine gathering and ceremonial purposes. WFN first discovered Solid Gold’s drilling crew on Treaty 9 land in the spring of 2011. According to the court

decision, the crew did not say who they were working for, and the First Nation was only able to ask for consultation after research and enquiry revealed Solid Gold’s identity. After WFN tried and failed to contact the company, the provincial government wrote Solid Gold in early November to let them know about their duty to consult. Darryl Stretch, president of Solid Gold, said that he is not obligated by law to consult with First Nations. “That’s the responsibility of the Crown,” he said. “This is Crown land. First Nations cannot have a veto to control what goes on regarding Crown land. I have an obligation, a fiduciary responsibility, to look after the shareholders of this company,” Stretch added. “I don’t

have a responsibility to First Nations; the government of Canada has that responsibility.” Nevertheless, the January 3rd decision ordered Solid Gold to enter into “meaningful consultation” with the Wahgoshig community. According to the court’s decision, the province can delegate operational aspects of the duty to consult, although it retains the responsibility of making sure consultation occurs. Since consultation was not going forward, the court decided to grant the injunction in order to uphold that responsibility. Garry Clark, executive director of the Ontario Prospectors Association, said his group is watching this case very closely, and trying to get the story from both

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sides. “We see that the government is downloading government consultation on us, and there are no real signposts for us, as explorers, to know what we have to do for consultation,” he said. “In the past, we’ve found that letters to the First Nation community don’t necessarily get read by anyone. We’re trying, but the industry needs to know what consultation is and how much consultation is enough.” When asked to define “meaningful consultation,” Michael McClurg, from Olthius Kleer Townshend, lawyers for Wahgoshig, replied, “It is case-specific and fact-specific. The court will decide. In the case of Solid Gold, there was no consultation. In some cases, it is the rights that are at issue, how strong those rights are, what kind of drilling is being proposed. But it really depends on the case.” The importance of consultation in the development of a resource is only likely to grow in the future. “We’re in the process of developing regulation amendments to the Mining Act, and within those amendments there will be a framework for consultation with Aboriginal communities and the duty to consult process,” said Kathleen Wynne, Ontario Minister of Aboriginal Affairs. “But even in the development of those amendments, we will be

doing that in consultation. We really believe the best way is to have a consultation process that includes everyone who is affected.” Wynne added that the Ministry views consultation as not only statutory, but economical. “It’s not like this is something that is not practical,” she said. “Since 1999, there have been more than 90 mineral development agreements.” WFN Chief David Babin said Solid Gold has not acted in good faith. “We have to try to work things out down the line; this puts more pressure on everyone as to how things are going to be done with First Nations.” Babin added that he is not against development, and wants to move forward, but he does not want to be disrespected either. “If there’s disrespect for First Nations, we’re going to end up in court,” he said. He also noted that his band has had successful dealings in similar situations, such as the exploration carried out by Apollo Gold, and wants First Nations values to be considered by the industry and reflected in the Mining Act. Clark said that even with changes to the Mining Act, he suspects there will continue to be conflict. “We need regulations to show us how to consult.” CIM

ACHIEVEMENTS AMEC named a leader for third year running AMEC earned top spot as the industry leader for oil equipment and services in the worldwide Dow Jones Sustainability Index for 2011-2012. This is the third year in a row that AMEC has been named the industry leader and the eighth year in succession that it has appeared in the DJSI, which annually ranks the world’s 2,500 largest companies measured by free-float market capitalization. The assessment looks at corporate economic, environmental and social performance, taking into account corporate governance, risk management, climate change mitigation, corporate citizenship and philanthropy, supply chain standards and workforce practices. Only the top 10 per cent of the best performing organizations are included in the index.

February 2012 | 25

news

Huckleberry goes shopping Extension plan means new equipment needed By Peter Diekmeyer

Credit: HDI

Courtesy of Huckleberry Mines

Purchasing staff at the that will eventually extend to Huckleberry Mine have a final crest elevation of 995 been busy, following formal metres. board approval for a projThe Huckleberry extenect that will extend extracsion, which will extend the tion work at the copper mine’s life by seven years, deposit until 2021. Accordwill preserve 230 full-time ing to company officials, and 30 contract positions close to $25 million will be and will create another 50 spent on equipment alone. new jobs, said company “We’re buying six haul officials. trucks, two bulldozers, one According to Thompson, mining surface drill, two the company’s employees maintenance graders, an and those who live in the excavator and numerous adjoining region will be other tools,” said Randall among the biggest winners Thompson, the mine’s vicestemming from the extenA sample preparation operator at work at the Huckleberry Mine in British Columbia. president of operations. sion announcement. “Most “The facility already has of the people who work at excellent infrastructure, serviced store mined waste rock that had been the mine come from the area and have through a tri-funded log-hauling road accumulating in an older pit, as well stuck with us throughout, even during and highway network, so few changes as mill tailings resulting from the lean times,” noted Thompson. “They will have to be made on that score.” mine extension. The initial starter tail- are thus naturally proud and more Huckleberry Mines Limited, which ings dam construction, which will be excited than anybody that they will is co-owned by Imperial Metals and a done using waste rock from around have some job security during coming consortium of Japanese companies, the mine site, is expected to take years, barring a shift in market produces copper and accessory gold about 24 months. However, its height demand. The First Nations located in and silver. The facility has been in will be raised several times during the area are supportive as there will be operation since 1997. Current output subsequent years. a positive impact to the surrounding is about 16,000 tonnes per day, drawn According to the company’s techni- communities.” from porphyry copper-molybdenum cal report on mine operations, the tailHuckleberry Mines is expected to deposits located on southern slopes of ings management facility, which is the spend close to $254.4 million on Huckleberry Mountain, 123 kilometres third that will be built as part of the wages and benefits over the project’s southwest of Houston in resource-rich Huckleberry Mines operation, is life cycle, as well as additional scheduled to begin receiving waste amounts on contractors. Total spendcentral British Columbia. The company’s main zone optimiza- rock in 2013. The dam itself will be a ing will also include $119 million in tion plan details the development of a zoned earth, cyclone non-acid-generat- new acquisitions and $82 million in ing sand and rock-fill embankment mineral reserve that is roughly located new construction. CIM beneath and slightly outside the existing open pit. The company projects an ACHIEVEMENTS average of 16,000 to 18,000 tonnes of copper will be produced annually Tops for Thiessen between 2011 and 2021. Production Ron Thiessen, president & CEO of Hunter Dickinson Inc, has will gradually tail off over the final two been named Business Person of the Year by the Canadayears of the mine as it mills low-grade Southern Africa Chamber of Business. The award, presented stockpiles. at a gala dinner in November, recognizes an individual resiKey to the main zone optimization dent in Canada who has contributed significantly to business plan will be construction of a new taildevelopment between Canada and Southern Africa. ings management facility, which will kick off in May. The new location will 26 | CIM Magazine | Vol. 7, No. 1

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

Sovereign wealth funds: a growing opportunity or a policy concern? BY PAUL STOTHART

n the capital investment sphere, one of the most significant international policy developments in recent years relates to the emergence of sovereign wealth funds (SWFs) on a massive scale. Such funds reflect the active state involvement in the oil and gas industry that is seen around the world, either in the form of direct ownership and control of the industry in some countries or through active regulation and royalty income flows in others. Much of the income from this industry is being channeled into the SWFs of the sovereign states. Fuelled by several years of $100 per barrel world oil prices, including a record $140 in 2007, sovereign wealth funds have amassed staggering levels of investment capital. This capital can then be utilized to support the future investments and priorities of the sovereign owners. In some cases, this is through investment in foreign hedge funds, government bonds and asset management firms; in other instances it is through direct investment in foreign projects and companies.

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The research firm, Global Insight, estimates that the combined value of global SWFs reached $4.5 to $5 trillion as of mid-2011, a figure that is greater than the established economies of Britain, France or Germany, and three times that of Canada. It is thought that this level could rise to US$10 trillion within a decade. Sovereign Wealth Fund News ranks 57 funds in its regular analysis, the largest wealth funds by assets being the following: • Abu Dhabi Investment Authority: $627 billion • Norway Government Pension Fund: $570 billion • China`s State Administration of Foreign Exchange (SAFE) Fund: $568 billion • Saudi Arabia’s Monetary Agency (SAMA) Fund: $520 billion • China Investment Corporation (CIC): $410 billion Over 30 countries have sovereign wealth funds in place. Some, such as the Alberta Heritage Savings Trust Fund, are established at the sub-national level. As Canada’s only SWF, the Alberta fund was created in 1976 and has generated $32 billion in investment during its history, while presently being valued at only $15 billion. In recent years, the province’s weaker commitment to net contribution and poor fund investment performance has served to limit its growth. This could illustrate a short-term fixation that arguably guides oil policy in Canada. The relevance of SWF growth to the mining industry is that these countries are seeking to convert growing portions of investment capital from paper to hard assets. The Middle East Arab states, for example, have been actively converting oil revenues to foreign assets in recent years, to the extent that the region’s foreign assets amounted to an estimated $2.2 trillion by year end 2011, with one-third held by SWFs, according to the Institute of International Finance. China’s SAFE fund has invested in Rio Tinto, Shell and BP among other resource firms. The China Investment Corporation invested $3.5 billion in Teck Resources in 2009, acquiring 17 per cent as part of a broader strategic arrangement. CIC has also invested in several oil firms and energy trusts internationally, and has opened an office in Toronto to better assess North American opportunities. China’s SWFs, and related government agencies have been heavy investors in Australian and African resources in recent years: China’s investment in Africa will reach $50 billion by 2015, up 70 per cent from 2009 according to South Africa’s Standard Bank. In recent years, there has been policy debate regarding the role of SWFs – negative concerns over the opaqueness and possible political and ideological orientation of these funds, mixed with positive support of their ability to provide liquidity and stability to the global economy. The Santiago

columns Principles were developed in 2008 to guide the operating and investment practices of sovereign wealth funds, although these principles have been described by some analysts as weak and ineffective. The much-discussed “ethical oil” issue is also relevant here. Do large consumers such as the United States wish to see this scale of their oil import revenues flow to Saudi Arabia, Iraq and Libya for their future investment, or to countries such as Canada? Nor is the magnitude of this issue going to diminish in the future. Investment firm Goldman Sachs estimated in 2008 that some $1.8 trillion is shifting from oil consumers to oil producers each year – wealth that is directed in large part to the SWFs of oil-producing countries. The Mining Association of Canada recently released its annual Facts & Figures 2011 document, one section of which details the estimated $137 billion that could potentially be invested in Canadian mining projects over the coming years. While each company and project would proceed in its own way, and draw upon a range of financing sources, it is quite conceivable that some of the world’s sovereign wealth funding could be drawn upon to support these investments. This will be yet another interesting dimension of the Canadian mining industry worth following in the coming decade. CIM

ACHIEVEMENTS ABB named a leader According to a recent research study by research and advisory firm ARC Advisory Group, ABB, a leader in power and automation technologies, has been ranked as a global leader in Enterprise Asset Management (EAM) software across significant regions and market sectors. The findings are part of ARC’s comprehensive market and technology analysis entitled “Enterprise Asset Management and Field Service Management Solutions Worldwide Outlook.” The study shows that ABB is the number one EAM supplier in Asia and Latin America and the number one supplier worldwide to the mining, power generation and transmission mining sectors.

Paul Stothart is vice-president, economic affairs, at the Mining Association of Canada. He is responsible for advancing the industry’s interests regarding federal tax, trade, investment, transport and energy issues.

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Get the most out of media releases BY JON BAIRD

ining suppliers often miss opportunities to tell the world about their successes. Any time a major contract or award has been won, a new product launched, a new facility opened, an event scheduled, or an important new team member hired, it is worth announcing to the public through a well-crafted document. Today’s media is mainly comprised of electronic outlets, so the term “press release� should be advantageously superseded by “news release� or “media release.� Essentially, releases are brief news stories, written in the third person and designed to catch the attention of reporters or editors who will publish them as provided or use them to develop feature articles. Reporters are interested in stories that will be of interest to readers, not in helping you sell your product or attracting visitors to your website. To get your material published, you have to make it newsworthy. Below are some tips to flag the interest of the reader:

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• Timing is important. Do not delay in announcing your successes in order for them to be the most newsworthy. Date your releases or state “For Immediate Releaseâ€? so that they will appear to contain fresh news. • Write a catchy headline. Keep it brief, clear and to the point like the headlines newspapers use. Extract the most important keywords from your information and frame a logical and attention-getting statement that encapsulates your idea and will give you the highest visibility in search engines. • Bold headlines at the top of the main copy. Similar to newspaper headlines, you may leave out the articles “aâ€? and “the.â€? Headlines should be written in the present tense. • Use subheads – they are often overlooked but, just like photo captions, they can receive a high degree of readership. They allow you to expand on your headline and further hook the reader.

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5' 30 | CIM Magazine | Vol. 7, No. 1

columns • Write the body copy as you would like it to appear in a publication. The first paragraph should state the “who, what, when, where and how” of the story. The balance of the release should back up the claims made in the previous text. • Overall, write the body copy compactly and stick to the facts. Do not use over-blown words or phrases such as “world class.” Write like a journalist – never use “I” or “we.” Quotes from individuals add interest. • Media releases should never exceed three pages and if you can say it in much less, do so. If you are sending out hard copy, make it double spaced so that editors can mark it up. • Be sure to include one or two paragraphs with information about the core business of your company, perhaps under the title, “About ABC Company.” Also, whenever possible, include your company name in the headline, the subhead and body copy for better visibility by search engines and readers. • Add contact information for which your website may be the most important item, but be sure to include the official name of your company, full address, telephone, fax, and the name and email address of the person who could supply further information.

• End a release by centring three number sign (###) symbols after the last line of the body copy (the journalistic standard). • Today, the best way to send your releases is likely by email. The release should be in the body of the email, with minimal formatting so it is easiest for the journalist to use. If you must send an attachment, do it in Word (.doc is better than .docx). Use your headline in the subject line. Now the challenge is to get your message broadcast. If you know the names of the publications that you are targeting, you may find the email addresses of the key persons on their websites. CAMESE member firms can benefit from the CAMESE media list with over 100 mining publishers worldwide. Finally, consider a follow-up call to critical publications, particularly those in which you advertise. Such a call could turn a news release into a full story. CIM A page for and about the supply side of the Canadian mining industry Jon Baird, managing director of CAMESE and the immediate past president of PDAC, is interested in collective approaches to enhancing the Canadian brand in the world of mining.

February 2012 | 31

columns EYE ON BUSINESS

Maximizing technology investments through intellectual property BY MARK PENNER, RICHARD CHEUNG AND MELANIE EGGERS

s resources become more challenging to extract and process, and the economic climate puts more pressure on budgets, innovations that can increase efficiency, reduce costs and create stakeholder value are essential to the mining, oil, gas and resource industries. Resource companies should consider “mining” their considerable intellectual property (IP) assets to sustain the profitability of their operations, as well as to create and maintain long-term value. In a recent report, the World Intellectual Property Office (WIPO) found that income generated from IP licensing increased from US$27 billion in 1990 to approximately US$180 billion in 2009, outpacing growth in global GDP.1 The WIPO report illustrated that some of the top research and development spenders are in the mining and energy sectors, including PetroChina Co. Ltd, Vale SA, Petroleo Brasileiro SA and Reliance Industries Ltd. Yet resource companies traditionally have not focused on IP protection. IP protection is one of the most efficient and effective means of capturing that valuable research and development investment.

A

Extracting value from intellectual property Companies in the mining, oil and gas, and resources industries tend to overlook the value of technological developments, focusing instead on ground coverage, exploration and keeping operations running. Management easily recognizes the value of big investments in research and development projects, but often seems to miss the corresponding value of owning, protecting and exploiting the IP arising from these same projects. Traditionally, companies have dealt with the protection of these assets as confidential information or trade secrets. Trade secrets can be quite valuable, but once disclosed or reverse engineered, their value decreases significantly. This is why companies should consider all avenues of IP protection for these developments, including patents, trademarks, copyrights and trade secrets. Provided below are some strategies that can help extract and maximize the value associated with the technological innovations developed by, or for, your own resource company.

Effective IP management Conducting an IP audit is a key starting point to determine the types of IP assets your company possesses and their role within your company’s strategy. This is a precursor to developing an IP management plan since it is a good mechanism for under32 | CIM Magazine | Vol. 7, No. 1

standing how IP has been and is now protected. More importantly, performing an internal IP audit can also help you identify which areas are being handled well and which areas require improvement. Once you identify the strengths and weaknesses of your company’s current position regarding your IP assets, you can decide where and how to improve your IP management. An effective IP management plan should address the following five key aspects: • Maintain an up-to-date list of all owned and licensed IP assets and the scope of protection for your company’s products and/or services. • Record and document all IP developments and confirm ownership of developed IP and when dealing with thirdparty service providers (e.g., drillers or labs who assist in R&D by developing new and improved exploration, extraction or processing technology) to ensure the benefits flow back to your company. • Assess the value of each IP development in view of your company’s overall business objectives and strategies, including your core business, the company’s long-term and shortterm goals, revenue generation potential (e.g., licensing-out IP to third parties), and your company’s competitors (e.g., does this affect their business?). • Address how your company’s IP assets are to be used and/or disclosed both within and outside of the company, including necessary security measures (e.g., non-disclosure agreements) and employee training. • Monitor possible third-party IP infringement risks (e.g., conducting IP searches for relevant third-party IP rights) and possible misuse of the company’s IP assets by third parties. Obtaining professional advice now in relation to your company’s IP strategy and management is likely to save your business both time and money in the future. Ultimately, it could add significant unrealised value to your company. CIM 1

See 2011 World Intellectual Property Report, The Changing Face of Innovation, World Intellectual Property Office, http://www.wipo.int/export/sites/www/econ_stat/en/economics/wipr/pdf/wipr_2011.pdf.

Mark Penner is a Toronto partner at Fasken Martineau in the Technology and Intellectual Property Group with expertise in the acquisition, protection and enforcement of intellectual property rights (PICTURED ABOVE). Richard Cheung is a Toronto lawyer at Fasken Martienau in the Technology and Intellectual Property Group, with a focus on drafting and prosecuting patent applications. Melanie Eggers is an associate in the London office of Fasken Martineau in the Technology and Intellectual Property Group. She is also a geologist with international experience in both hard rock mining and oil and gas (PICTURED ABOVE).

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HR OUTLOOK

Knowledge is power BY RYAN MONTPELLIER

nowledge workers are crucial to the future prosperity of Canada’s mining and exploration industry. They provide the sector with organizational leadership, research and development, and drive innovation; however, despite their importance, knowledge workers are a scarce labour resource. When you consider that a significant proportion of this group is nearing retirement age, it is evident that the sector is facing a devastating loss of specialist knowledge in the next decade. The Mining Industry Human Resources Council partnered with the Canada Mining Innovation Council (CMIC) to publish Making the Grade: Human Resources Challenges and Opportunities for Knowledge Workers in Canadian Mining. This study provides information currently lacking in the industry to foster a better understanding of knowledge workers and to enable industry to become more proactive in workforce planning.

K

Knowledge workers as innovators Making the Grade defines knowledge workers as people who are highly educated, technologically savvy and engaged in work that leads to the creation of knowledge and innovation. Examples include: engineers, geoscientists, financial analysts, health and safety professionals, business professionals and management. According to the study, they provide the critical links between technological progress and economic growth. Furthermore, knowledge workers are an integral part of the development and preservation of competitive and sustainable industries. In mining, both the global focus on

Oil Sands

& Heavy Oil

34 | CIM Magazine | Vol. 7, No. 1

leveraging technologies to gain a competitive advantage and the magnitude of social responsibility and environmental sustainability issues are making innovation more crucial. To ensure a knowledge-rich workforce, employers will need to adapt their recruitment, retention and succession-planning strategies to better suit the career aspirations of these highly skilled professionals. Building strong relationships with post-secondary institutions is one way for companies to attract and retain knowledge workers. Support for students (co-op/apprenticeship programs) and for post-secondary research ensures that the research outputs and technological advancements are relevant and timely, resulting in innovations with a greater probability of becoming widely adopted. Cameco, one of the world’s largest uranium producers, submitted the following practice to MiHR Innovate. The company is looking at new ways to strengthen the ties between academia and industry to attract and retain more knowledge workers and to expand their research and development capabilities and capacity. In support of this objective, the Cameco Technology and Innovation group has established the Sabbatical Program for Academics, which gives researchers and scientists from universities the opportunity to conduct research at Cameco operations each year and collaborate with technical personnel at the company’s facilities. Sean Junor, manager, workforce planning and talent acquisition at Cameco, says the program is directly linked to the

columns company’s long-term strategy to significantly increase production by 2018. “We learn more about what is going on in the world of academia and researchers have the opportunity to apply their work in an industry setting,” he explains. “The benefits are twofold: the program broadens our attraction and potential recruitment net, and strengthens and/or develops the relationships we have with academic institutions.” Researchers spend up to one year in the program working on a problem of interest to both Cameco and the researcher, with an end goal of a portfolio of potential projects that the researcher will take back to the university. Michael Murchie, director, Cameco Innovation and Technology Development – Research Centre, says the key to the program’s success is the dedicated time it allows a researcher to spend with the company. “You need time to establish a relationship,” he explains. “It’s about researchers getting to know our challenges and Cameco getting to know their capabilities.” “This portfolio of focused project ideas creates a link for continued collaboration, the development of knowledge workers, the promotion of science and engineering, and the promotion of the mining industry,” says Engin Ozberk, vicepresident, Cameco Innovation and Technology, who is also the president and chair of the board of directors of CMIC.

Cameco has had four sabbatical researchers to date, two of whom are continuing to work with the company. Since the program is in its early stages, the main focus now is collaborating to grow uptake, explains Junor, as the program can accommodate up to 12 researchers at one time. CIM Making the Grade can be accessed at www.mihr.ca; to request a print copy, email info@mihr.ca. To view the complete MiHR Innovate collection, visit www.mihrinnovate.ca.

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

MOVING ON UP Greg Dawson joined Colorado Resources Ltd. as the company’s vice-president of exploration. Dawson, who has over 25 years of experience in the exploration sector, was most recently the president of Redtail Metals Corp.

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February 2012 | 35

S TA N D A R D S

ISO 50001 helps manage energy costs in mining BY KLAS BOCKASTEN

new energy management standard – ISO 50001 – is set to provide the mining industry with technical and management strategies to increase energy efficiency, reduce operating costs and improve environmental performance. Issued in June 2011, this international standard is a voluntary measure that, according to the U.S. Energy Information Administration, could influence up to 60 per cent of the world’s energy demand. The danger of not adopting an energy management approach comes from increased obsolescence, rising utility costs, as well as increased investor and public scrutiny on energy performance. Adopting progressive energy management systems creates opportunities to take advantage of a growing market for efficient mining modifications and the introduction of new technologies to establish sustainability leadership and brand.

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A new approach to energy efficiency Programs and financial incentives with various government, electrical and gas utilities that encourage energy efficiency are common in many jurisdictions throughout Canada. Traditionally, energy efficiency programs have been focused primarily on identifying “low-hanging fruit,” however, and lack methods for tracking the energy savings that are achieved, thus creating a lost opportunity for communicating long-term benefits to corporate management. The lack of measurement and verification of savings from projects that have been implemented, as well as the lack of formalized processes, can result in the loss of energy efficiency improvements, for example, when individuals leave an organization and take the knowledge and practices with them. ISO 50001 uses the same “Plan-Do-Check-Act” methodology that succeeded for decades in driving quality

36 | CIM Magazine | Vol. 7, No. 1

Energy management model highlighted in ISO 50001. Courtesy of CAN/CSA-ISO 50001:11, National Standard of Canada

improvements through ISO 9001. More recently, environmental performance has been improved in many organizations through ISO 14001. The Energy Management Systems’ voluntary international standard can help transform businesses of all types and sizes to highly efficient energy users through continuous improvement, leading to reducing energy use, costs and related emissions. The key steps to implementing ISO 50001 include:

columns • Top management demonstrating its commitment by issuing an energy policy. • The individual facility or mine using the policy to develop an energy plan, which includes a review of current energy use and consumption, to develop an energy baseline. The plan also should identify energy savings targets with a list of energy management action strategies. • The mine using the action plan from the planning process for implementation and operation and internally communicating and documenting its energy performance. The organization should identify and modify the operations and maintenance activities in the plan that are related to its significant energy uses, to generate energy savings. • The mine ensuring that energy performance is monitored, measured and analyzed at planned intervals, by checking and making corrections to address non-conformities so that the plan will stay up to date. • At planned intervals, a management review should be carried out to ensure the energy plan’s continuing suitability, adequacy and effectiveness.

detailed analysis, areas for improvement can be pinpointed and responded to. When historic costs are compared to costs in the current and future year, progress can be tracked as a way to demonstrate good stewardship and cost management. CIM Klas Bockasten is an energy management services leader with Golder Associates. He has managed several industrial projects from initial study, detailed design and construction to commissioning of energy projects in the mining and manufacturing sectors.

Mine and process raw materials more efficiently

Financial drivers to implement energy management systems The federal and provincial governments, as well several electrical utilities in Canada, have been encouraging industry to adopt the ISO 50001 standard to support a long-term energy conservation culture. The Northern Industrial Electricity Rebate program was launched in Ontario to provided a two cent per kWh rebate on all electricity consumed (about a 25 per cent rebate) for three years, provided that an energy management system was established. ISO 50001 was the basis for the energy management plan. Improved management information systems through energy monitoring and enhanced metering of electricity and other fuels have often been incorporated into modifications in parallel with implementation of the standard. In February 2011, a similar approach was announced by BC Hydro and BC Mining Research Ltd., an “all fuels” baseline energy audit. This program is intended to measure energy consumption by each aspect of the mine’s operations. By breaking down the operation into a

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February 2012 | 37

GUEST COLUMN

Using the “gig economy” to surmount the skills shortage BY KIRK RODGERS

nyone seeking proof of the demographic “cliff” that the mining sector is heading for could have found it at a recent evening in Toronto where some 300 of the industry’s movers and shakers gathered for Sandvik’s Annual Oyster Night. Engineers and geologists in their 30s and 40s were scarce in a sea of grey hair. Many attendees were in their 60s and 70s, kept on by companies desperate to retain access to their skills and experience. Ten years from now, many of those thronging the event will be unavailable to the industry, which is driving an urgent need to get the most from the shrinking pool of mining engineers and geologists.

A

Back to the future? For a possible answer to this future crisis, we need to look back to the pre-computer era – the age of slide rules and survey chains. Mining engineers of that time used their training and experience to plan, provide leadership, train junior staff and, in general, manage operations. Geologists

assessed information collected by others to understand ore bodies. These professionals delegated work to skill-focused, lesscostly specialists who carried out the daily work. It was a good system and it got the best from the engineers’ and geologists’ strengths. Fast-forward to the current era, where computers are everywhere. Mining engineers are now able to address the whole operation of a mine, including day-to-day minutiae, such as giving a development crew directions. Geologists can collect the data, tabulate, apply confidence limits and draft cross-sections. Who needs a staff when one or two people can do it all? As a result, highly skilled engineers and geologists find themselves logging cores, laying out haulage ramps and performing tasks that could be done by technicians. While today’s information systems are powerful, they have had the effect of making these professions much more critical to the industry. What happens if there are not enough of these professionals available?

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38 | CIM Magazine | Vol. 7, No. 1

columns Work with, not against, the workforce trends It is better to use the best of historic practice, combined with current workforce and technology trends, to build a brighter future for the mining sector. Mining engineers and geologists need to get back to “engineering” and “geology” as these terms were defined 50 years ago. Let them use their training and education to plan and lead operations and delegate day-to-day tasks to technicians trained in more narrow sets of functions. This will open up mining companies’ abilities to employ people with less formal education, but who are bright and can learn specific tasks. Use the power of information technology appropriately: many of these technical workers could be based in an office far away from the mine, which seems to be more to the liking of some of the newer generation. This plan makes sense because of several trends we see in society today: • Many young people are foregoing post-secondary education, reluctant to take on debts when there is so little certainty in the job market. • Studies on demographics indicate that there is a significant “hole” in the current 30- and 40-year-old age range of potential minerals industry professionals. • Older blue collar workers, displaced from their industrial jobs, are eager to retrain.

• Powerful networked computers allow large files to be transferred easily and for teams to collaborate remotely. • The emerging “gig economy,” in which independent workers are engaged on a project-by-project basis, developing skills in response to opportunities, moving from one company to another with ease. These trends make it possible to envisage the idea of a distributed team of specialists, working under a mining engineer’s or geologist’s supervision, to explore for and operate mines. The result? More work opportunities for a broader spectrum of people, some of whom may not have to relocate to a mine site, and more people to help fill the oncoming demographic hole. Best of all, they can get the greatest work from their mining engineers and geologists. CIM GIVING BACK Doug Ramsay, the co-founder of Calfrac Well Services Ltd., and his wife have made a substantial gift to SAIT Polytechnic, Calgary. They have donated $3 million, along with $1 million from Ramsay’s colleague Ron Mathison, to build a new centre for petroleum engineering at the SAIT Polytechnic.

A DIFFERENT KIND OF

CHALLENGE Uranium mining offers continual challenges. If you’re looking to work in an exciting industry with global operations and diverse scientific and environmental components – then Cameco has a career for you. cameco.com/careers

Making a

difference February 2012 | 39

upfront TECHNOLOGY by Barbara L. Campbell

Satellites that “feel” the Earth Courtesy of MDA

Mines can monitor ground movement by the millimetre InSAR reaching its potential

SAR is a technology that dates back to the 1960s. It creates images by emitting energy in the microwave range of the electromagnetic spectrum. Working much like an echo, the energy interacts with the Earth’s surface, then bounces back to the satellite. Visually, SAR information shows up as a high-contrast black-and-white image. By analyzing the phase information of the return signal, the satellite can establish the relative location of the ground. Because RADARSAT-2 passes over the exact same spot in orbit every 24 days, those images of the Earth can be compared directly. If nothing has altered since the previous observation, the phase of the waves from the satellite to its target will be exactly the same. Differing signals from the same point taken at two different times, however, can be early warning signs of shifts, or subsidence, in the ground. It is especially important to look for safety risks in these areas. The key to such MDA's RADARSAT-2, which uses synthetic aperture radar to "feel" the Earth's surface, is used to monitor analysis is interferometry – the “In” part of changes over time. InSAR. InSAR processing techniques combine two or more SAR images of the same area and create another image – an interferogram. Using “stacks” of n Kiruna, Sweden, a city of 18,000 residents are living on images, InSAR allows the user to see how changes happen over top of a rich iron ore deposit – one that Luossavaaratime. MDA can measure surface changes in millimetres and Kiirunavaara Aktiebolag (LKAB) is hoping to access with illuminate instability that is still completely invisible to the the extension of its Kiirunavaara facility. To mine beneath Kiruna, LKAB must be prepared to move naked eye. Image sets can be compared precisely over months the town if subsidence becomes a concern, and well before it or years, allowing users to see the way changes have happened causes infrastructure damage. And that is where MacDonald, over time. Dettwiler and Associates Ltd. (MDA) has come in. Based in Indeed, using the technology, a company’s decision-makers Richmond, British Columbia, MDA operates a satellite called can focus their efforts on areas that require attention rather RADARSAT-2, which circles the Earth many times per day, than on stable areas. RADARSAT-2 looks at the pit, tailings providing detailed images from 800 kilometres above the dams, structures and conveyors with the SAR signal. And planet’s surface. through the InSAR process, MDA delivers both surface deforBut these are not ordinary photographs. “It’s like you’re feel- mation maps, showing very subtle movements of the ground ing the Earth rather than seeing it,” says Wendy Branson, man- surface, and files containing data measurements and analyses. ager, services operations, at MDA Geospatial Services. Since These reports arrive in formats that mine operators can easily November 2009, RADARSAT-2 and its synthetic aperture integrate into their own software, such as geographic informaradar (SAR) technology have been monitoring ground move- tion systems (GIS). As a result, a company’s reports will be ment to help LKAB keep track of the area. consistent from one location to another – no more adjustments “Because the technique provides a bird’s-eye view of an entire needed to avoid comparing apples to oranges. operation, we are able to identify areas that might be unstable,” “The deliverables are also very intuitive; they can be undersays Marc Beaudry, a manager at MDA. “Underground mines stood by technical and non-technical people alike,” Beaudry can be quite sizeable – several hundred square kilometres – so says. They are essentially graphic: images, maps, charts and identifying potential areas of instability over such large areas can graphs. Operators can quickly spot information on their maps be compared to finding a needle in a haystack.” where identified by the InSAR analysis, which provides a very

I

40 | CIM Magazine | Vol. 7, No. 1

dense network of survey points that are given colour codes based on displacement. “What we do is look at potential hazards on the ground,” Beaudry adds. Recognizing potential danger allows mining companies to focus on areas and address key questions like why the ground elevation has dipped those few millimetres. And sometimes the answers can affect entire communities. The remote nature of the technology allows mine operators to monitor areas located outside of their mine claim (like the towns and public infrastructures located in close proximity). This can help operators to identify potential liability for damage to third parties, which is especially useful with abandoned or decommissioned operations. In the case of Kiruna, InSAR monitoring could even impact the safety of hunters and skiers who frequent the region, as well as of those who work and live around the mine.

The right tool at the right time LKAB is evaluating the advantages of using InSAR monitoring for this specific site, where winter conditions are harsh with snow covering the ground for extended periods. A key question for them is whether the technique can spot deformations more frequently than the conventional geodetic surveying they use. LKAB also has 333 ground stations that take GPS measurements. Many mining companies continue to rely on ground tools as a complement to satellite and InSAR techniques. MDA gets the picture from above and then ground-based technologies zero in on specific hazards. Although their viewing ranges can be limited to one section of a pit wall, stationary systems can offer near real-time monitoring as often as every few minutes. In addition to constantly monitoring the spots where a problem has been identified, on-the-ground equipment can be linked to alarms that sound if risks approach dangerous levels, prompting swift evacuation of entire areas. MDA plans to launch a new mission for the Canadian Space Agency by 2016-2017, which should further strengthen their reporting capabilities. “MDA is currently working on the RADARSAT Constellation Mission (RCM),” says Beaudry. “RCM will consist of a fleet of three spacecraft and be both a complement and a follow-up to the RADARSAT-2 mission.” CIM

ACHIEVEMENTS Reaping the awards Search Minerals Inc. has been awarded, along with B & A Minerals of Port Hope Simpson, Labrador, the Explorer/ Prospector of the Year Award for Newfoundland and Labrador by the Canadian Institute of Mining, Metallurgy and Petroleum, Newfoundland and Labrador Branch. The awards were presented at the CIM Gala Awards Dinner at the Mineral Resources Review Conference, which was held in St. John's, Newfoundland in November.

February 2012 | 41

upfront ABORIGINAL OUTREACH by Alexandra Lopez-Pacheco

First Nations and human relations Running Deer Resources’ holistic approach An ear for business

Courtesy of Running Deer Resources

What makes Running Deer’s approach radically different is that it began with a lot of listening. Since 2007, Saulnier listened to countless Aboriginal Peoples, including the Assembly of Manitoba Chiefs and the Manitoba Keewatinowi Okimakanak, a regional Chiefs organization for northern Manitoba, as well as mining companies and others in the private sector and government. And the reason he listened so much is that from day one he knew that unless he understood each perspective, his solution would be doomed to fail. “I had to understand Aboriginal politics, the companies’ needs, where they were contractually – Running Deer Resources' president Jamie Saulnier has developed unique programs that address both the skilled labour everything that’s involved between shortage and the need to engage Aboriginal communities. a community and a mining company – and how the governments work,” says Saulnier. “I put all three (Aboriginals, mining ive years ago, Jamie Saulnier, founder of Winnipegcompanies and government) into separate categories and based construction company Connotec Inc., embarked tackled them individually.” on finding a solution to the skilled labour shortage in He hired people at various times to help him with the his business by tapping into Aboriginal communities. Little research, including Aboriginal students from the universidid he know then that by the summer of 2010, the pilot Aboties’ business programs. “I listened to Aboriginal Chiefs and riginal training program he had developed to hire people from the Nisichawayasihk Cree Nation would garner The business leaders. Every time we turned a new stone, we Globe and Mail’s attention and be described as nothing less found something else we had to research and understand,” than one of the most ambitious First Nations apprenticeship Saulnier says. programs in Canada. As he listened, he identified some key issues. One was “I got calls from companies from all over North and South that most of the Aboriginal communities he spoke with had America, from as far away as Australia, inquiring how they little or no human resources and training systems in place. could take what we’d done and apply it to their organiza- “They are not set up from an HR standpoint,” Saulnier tion,” says Saulnier. He realized that there was both a need explains. If a construction or mining company contacted a and a potential to take his initiative further. By the end of community looking for manpower, the communities simply 2011, he had renamed his company Running Deer Resources had no database or tools to provide them with the informa(RDR) and launched a new division dedicated to helping tion. So he and his team developed an HR information sysAboriginal communities and the private sector eliminate the tem specifically for the communities – one that they can roadblocks that stop them from working together to solve manage themselves. their respective challenges. There is a personal aspect to this work for Saulnier as well Kliff Lengwenus, vice-president of RDR, took over the because, although not Aboriginal himself, he grew up in day-to-day operations of the company’s construction divi- northern Ontario, and very early on became a passionate sion, whose clients have included Vale, Goldcorp, HudBay believer in empowering Aboriginal communities to become Minerals and Crowflight Minerals (now CaNickel Mining). self sufficient. “We are now able to go into a community and Saulnier then turned his attention to building the new Abo- assess where they are at in terms of an HR system and we put riginal consulting division. together a report card for them,” he says. “With that, we have

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42 | CIM Magazine | Vol. 7, No. 1

upfront ABORIGINAL OUTREACH

the ability to work in partnership with the community to introduce our HR system and train employment coordinators to manage it. Our system allows an individual to sit down with the coordinator and answer key questions, which are all geared towards building a resume for the needs of a construction or mining company. That resume then goes into the community database, which identifies the people who are ready to work right now, the people who are close to being ready and the people who need a lot of training to be ready.”

Skills networks

mentoring and job shadowing, so that people are able to find what they are really interested in and know exactly what skills they need to succeed. It is this long-term vision that convinced Gardner to work with Running Deer as its Aboriginal advisor, although he did not jump on board right away. Instead, he and Saulnier spent six months getting to know each other, developing trust, listening and discussing the issues. “Jamie came to my residence,” says Gardner. “I introduced him to our culture, I gave him a gift to remember our friendship, and we started talking.” They hashed out the need for mentoring and life skills training that Aboriginal People are seeking, especially those in remote communities that literally need help in learning the non-Aboriginal culture mining and construction companies exist in. Gardner, who also worked for years in the mining industry and in training and education programs for First Nations, says he has seen too many training programs that went nowhere because they did not lead to real jobs, and too many companies offering only short-term manual jobs to Aboriginal communities that ultimately were also dead ends. “Just because I was Chief didn’t mean I had all the answers,” says Gardner. “The people have the answers. And that’s the approach I like about Running Deer. They listen. I don’t want to be part of something where there’s exploitation. If something has good potential, then I want to be part of it.” CIM

The database is a powerful tool for a community when it is approached by a company that needs skilled workers immediately. But it is also a powerful tool for companies with long-term projects. They can identify and recruit workers for the future and provide them with training now, and these trainees will be ready to take jobs once the project is ready to be launched. Because Saulnier and his team also did a lot of research into government training initiatives and resources and, in fact, worked closely with the province of Manitoba to develop its own pilot program, Running Deer can also help connect the companies with government resources. “The Canadian government spends billions of dollars on training but right now, they’re training for the purpose of training; there’s no employment on the other side,” says Saulnier. By connecting companies, government programs and Aboriginal individuals, RDR drives people to stay in the programs because they know they have a job at the end of the day. With its proactive approach, Running Deer’s system looks at the wider skill set companies will need rather than just at short-term manual labour. For communities, this means that they LOOKING TO IMPROVE YOUR can grow their skill set, which will PROJECT DATA EVALUATION TIME? open up opportunities for other employment and entrepreneurship JUST ASK GOLDER. even after a particular mining project has moved on. Typically, in the past, says Arnold Gardner, former Grand Chief of Treaty 3 in Ontario and Chief of the Migisi By leveraging advanced True 3D technologies, Golder’s Collaborative 3D (C3D) Sahgaigan First Nation, mining comCentre immerses partcipants in a virtual representation of datasets. This enables your panies would look on Aboriginal comteam or stakeholders to quickly understand complex data during project munities as a resource for manual collaboration and review sessions. labour. “They would think we’re the Located in the heart of Toronto’s mining and financial districts, the C3D Centre is a shovel to get the gold out,” he says. turn-key solution, offering visualization consultation, dataset preparation, facility “They didn’t understand there’s a rental and technical support. process and a lot of other work on the Engineering Earth’s Development, Preserving Earth’s Integrity. site that people in the community could do – for example, lab work and administrative work – that would open up opportunities for men and women, Canada + 800 414-8314 c3d@golder.com and especially young people.” www.golder.com/c3dcentre Running Deer’s program also includes life skills training as well as

February 2012 | 43

upfront PROCESSING by Eavan Moore

Flash of brilliance Kinross Gold’s Paracatu operation tests out flash flotation the projected numbers,” says Chris Martin, principal metallurgist at Blue Coast.

Over-grinding leads to losses

Courtesy of Kinross

Originally, the plant’s flowsheet began with a semi-autogenous grinding mill, which then fed into two parallel ball mill circuits. Before material entered each ball mill, it passed through a set of cyclone density separators that diverted the finer particles to be recovered through conventional flotation and cyanide leaching. The remaining coarser material was ground in the ball mill, and sent to a jig for recovery. Anything not recovered by the jig was returned to the cyclone and ball mill circuit. To make their assessment, Blue Coast personnel and Paracatu’s metallurgical team Flash flotation units operating at Kinross' Paracatu Mine in Brazil. Blue Coast Metallurgy had advised Kinross collected samples from three different days that flash flotation could help reduce overgrinding in their process. and 24 different points in the plant. “With samples from all the streams, we can kind of paint a picture of how the plant is working at a given moment inross Gold’s Paracatu Mine in Minas Gerais, Brazil, had in time,” explains Martin. The Blue Coast team assayed the budgeted for 80 per cent gold recovery in its second material by mass and found high gold grades at midsize fracconcentration plant, but one year after commissioning tions of +38 and +75 microns. However, these composed less in 2008, the operation had topped out at 77 to 79 per than 10 per cent of the concentrate produced by the jig. Of the cent. In 2009, the mine called in Blue Coast Metallurgy to audit weight in the jig concentrate, 70 per cent was in the +300 the plant. “They approached us to go down there and really micron fraction, containing only five to 10 per cent of the gold. help them understand why the gold recovery was lower than While building the plant originally, Kinross had assumed that the gold would be associated with coarse arsenopyrite and had WET & DRY SHOTCRETE & CONCRETE PLACEMENT EQUIPMENT chosen radial Pan-American jigs designed to GROUTING EQUIPMENT GROUT PACKERS SHOTCRETE GROUT recover coarser particles. But the majority of CEMENT ADDITIVES RHEOLOGY MODIFIERS CUSTOM BLENDS gold, as it turned out, liberated at finer frac tions. “We found that there’s very little supercoarse gold,” explains Martin. “It really only We have what you need starts to liberate at 150 microns.” to STOP the water and HOLD the ground! The jigs had been dismissing these smaller particles back to the plant’s milling ® circuit again and again, where repeated ULTRAFINE CEMENT grinding damaged their recoverability. “It The one that works. was getting very over-ground,” says Martin, “and there’s quite a lot of evidence to suggest that the gold surfaces were being degraded SuperFine Ultrafine Cement A blastͲfurnace slag ultrafine cement with a maximum particle in some way that rendered them less suscepsize of 10 microns and a median particle size of three microns. tible to the downstream flotation process.” The samples taken from the flotation circuit showed that flotation had been working, 155 NE 100th Street, Suite 300 • Seattle, WA 98125, USA as long as liberated gold was coarse enough. PH 206.523.1233 • FX 206.524.6972 • info@surecrete.com • www.surecrete.com All of the gold coarser than 12 microns had

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44 | CIM Magazine | Vol. 7, No. 1

upfront PROCESSING

made it into the concentrate. But only 15 per cent of finer gold floated, suggesting that over-grinding had serious consequences for recoverability. As a temporary fix to over-grinding, the Paracatu team decided to increase the cutoff size for material sorted into the ball mill by the cyclones from about 90 microns to about 110. Coarsening the grind led to increased throughputs without reducing gold recovery. Recoveries actually increased slightly, presumably because fewer gold particles were being over-ground.

Flash flotation prevents over-grinding Blue Coast’s plant survey showed that the main gravity recovery circuit was failing to catch gold that was liberated at medium particle sizes. The company suggested that if coarser particles could be exposed to flotation much earlier, then recovery rates would improve. Flash flotation cells, used for base and precious metals since the 1980s, are designed to do this. So named because they work more rapidly than conventional flotation, flash methods recover liberated particles that respond easily to flotation but are too coarse to enter mainstream flotation tanks. In contrast to typical flotation cells, flash cells sit within the grinding circuit. By using flotation early in the process, gold that is liberated at that stage can be recovered to avoid over-grinding, while coarser particles return to the mill. Following the Blue Coast audit, Kinross responded with changes to the processing circuit that included installing a new flash flotation unit designed to prevent the loss of gold to tailings through over-grinding. In November 2011, Paracatu commissioned two Outotec flash flotation cells to fit within its existing ball mill circuits, between the cyclones and the ball mill. Each unit feeds into an additional cleaner that produces a high-grade concentrate, and the tailings from both return to the grinding circuit. By the end of 2012, the plant will have four ball mills and four flash flotation cells. Currently, the mine’s operator reports recovery rates of 80 to 82 per cent. Paracatu’s management chose the biggest flash flotation units possible within existing space constraints. The resulting design treats about 30 per cent of the circulating load. Centrifugal concentrators were considered as an alternative, but could not have handled the tonnages at Paracatu; the second plant alone moves 5,087 tonnes per hour. “Flash is more common in the market,” says Getulio Gomes, technology development department head at the mine. “Using bigger centrifugal equipment is not so common, and we prefer to be more conservative.”

The redesigned flowsheet is only in its startup phase, so he is still cautious about the overall success of the installing flash cells. “We don’t have enough data to close the report,” he says. One benefit, however, has already emerged. “Today, 10 to 12 per cent of the gold that is produced in the plant is recovered by flash cell,” says Gomes. He explains that whereas finer particles would earlier have gone to the conventional cyanide-inleach circuit, flash concentrate feeds directly to a smaller, more intensive Acacia leach unit. The Acacia costs less to run, rendering cheaper any gold recovered through flash flotation. Further work this year will build a better body of data and help the team understand how the gold is recovered, what size distributions then appear in the mainstream flotation circuit, and where the gold losses continue. “We are setting up quite a sophisticated system to measure the effects of this installation,” says Rob Thorpe, senior metallurgist at Blue Coast. “That’s going to take a little while to play out, until we build that body of data. But I think we’re all pretty buoyant about it. I think it’s definitely the right change to make.” CIM More details on this project are available in a paper in the proceedings of the Annual Meeting of the Canadian Mineral Processors in Ottawa in 2011. The paper, Optimizing Kinross Paracatu, the world’s largest tonnage, lowest grade primary gold milling operation, was presented by Blue Coast’s Rob Thorpe, for which he was given the Best Presentation Award in 2012.

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An economic solution Gomes and his colleagues at Kinross calculated that for each flotation cell to be economic, it would need to add 0.6 to the percentage of gold recovered. If they run as expected, the four planned cells will add a total of 2.4 per cent. That is a conservative estimate compared to the results that flash flotation has achieved at other sites (five per cent at one Canadian operation). From existing information, Gomes estimates the new units will pay for themselves within a year.

The busiŶĞƐƐ ŽĨ ŵŝŶŝŶŐ www.amcconsultants.com February 2012 | 45

upfront FINANCE by Anna Reitman

Alternative prospects “There are unconventional pots of money out there” ith the Eurozone crisis plunging the world’s economy into a second phase of financial turmoil and, as a result, an extremely varied M&A landscape, miners are bracing for an unpredictable time in the traditional debt and equity markets. Amidst the uncertainty, though, more miners are harnessing alternative financing strategies to move their projects forward. “It is about optionality these days,” says Lee Downham, partner in charge, global mining and metals, transaction advisory services at Ernst & Young. “You need to keep all of your funding options open and not necessarily expect that you can fund in the traditional equity and debt markets. Availability of financing will not go back to pre-crisis.” According to Downham, all things being equal, companies that pursue private wealth options alongside traditional sources of investment will get their financing before those limited to tradition. Many financing experts point to the recently acquired European Goldfields as an example. In October, Qatar Holdings agreed to lend US$750 million to European Goldfields, which is listed in Toronto and London, to fund the development of mines in Greece. The Qatari sovereign wealth fund put up a $600-million, seven-year loan secured against Greek gold assets, and an additional $150-million unsecured loan. European Goldfields has now agreed to be bought by Eldorado Gold for $2.4 billion, superseding the Qatar Holdings deal, but it is the strategy itself that fund managers are looking at – both in picking companies and in supporting companies already held that are seeking financing.

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The wealth of sovereigns According to Ernst & Young research, companies in the initial public offering (IPO) pipeline, ranging from some $200 million to several billion dollars in size, have been facing delays of up to 18 months in anticipation of more stable markets. However, securing private funding in the interim could help underlying assets progress and deliver a stronger story for an IPO when it does happen, Downham explains. And that is advice that could affect a broad swath of companies. Ernst & Young reports that the majority of transactions in 2011 were juniors looking to bring assets to market, although there has been an increase in the $200-million to 46 | CIM Magazine | Vol. 7, No. 1

$1-billion asset range since 2008. At the same time, large placings across the major producers have decreased. According to Downham, this trend is likely to continue because companies across the sector are still wary of falling back into pre-crisis levels of leverage. “Majors are limiting buying activity to low-cost, high-grade, scalable assets or to companies that can offer at least some kind of operational overlap that nobody else can bring, such as technical expertise or cost benefits,” Downham explains, adding that the large miners continue to look at iron ore and coal, with copper staying strong on fundamentals. But companies seeking mine financing need to recognize that the world has changed. Ed Bowie, director at Altus Capital, adds that alternatives are critical and necessary, especially at the smaller end of the market. “There are unconventional pots of money out there, including sovereign wealth funds, that are looking for mining exposure, and gold in particular,” says Bowie, “but these pots are typically not going to participate in an ordinary equity financing. Their investment objectives and time horizons are different, and developing relationships with the corporates is critical – the structure of the European Goldfields deal is a great example of this type of financing.” However, sovereign wealth fund pots are usually for larger transactions and predominantly for gold or for strategic resources where there is a linkage of supply to the country in question. Moreover, this kind of alternative financing arrangement is relationship-driven and requires wellresearched specialist advisors to make connections. Although definitely an option, these pots of money are not necessarily vast or easy to access. Bowie notes that juniors need to consider private placements and deals with other mining companies as a means of attracting investment. He cites three Colombian exploration plays that have recently had some of their equity acquired by Iamgold as an example. Over the last two months of 2011, the Canadian gold producer announced minority interest in Bellhaven Copper & Gold, Colombia Crest Gold and Tolima Gold. He adds that miners should keep the lines of communication open. “As an institutional shareholder, what we favour is having a fairly open dialogue with our investee companies and having the opportunity to support the companies that we are

upfront FINANCE

already investing in without them necessarily going to market and doing a heavily discounted and highly dilutive financing,” says Bowie. “If a company has a strong shareholder base, they should make sure they maintain it.” George Rogers, head of commodities and resource finance at Investec Resources, a specialist investment bank, notes that in the unlisted equity space, there are very few providers. “Most funds are focused on listed equities and have constraints on what they can do,” he explains, “such as what percentage of investment they can make in unlisted companies. But for institutions such as ourselves, it is very much an opportunity to financially support companies that are moving towards IPOs or even those that need longer term private equity funding.”

Emerging market forces At the same time, miners should be aware of the shifting dynamics towards Middle East and Asian capital sources, which may be easier to see with a view from Europe, according to Elena Clarici, currently portfolio manager of Scipion Mining and Resource Fund. “The situation in Canada, and generally in the developed world, is that junior exploration companies are still very much financial instruments,” she says. “The average retail investor is buying for their pension or for speculation, not to lock down the actual commodity supply. What is emerging, and for me this is most striking, is that investors and groups from emerging markets are actually looking for the real commodity. They are looking for iron ore, copper and gold as a product – as a material rather than as speculation on a financial instrument. They are not prepared to take stock market risk because they actually need the supply.” But committing resources to a partner does come with some warnings, Clarici says. She believes companies may find they have less freedom to make decisions because some of these groups, such as controlling investors, are mainly concerned with getting the commodity out of the ground at favourable prices. This strategy is often pursued by local companies in developing countries that do not have access to international markets, but it may become more prevalent elsewhere if a restricted investment climate continues, explains Clarici. In Canada, for example, Selwyn Resources’ project, a zinclead development property located in eastern Yukon, completed a 50:50 joint venture agreement with Chihong, a fully integrated zinc-lead mining and smelting company based in China, to invest $100 million to advance the Selwyn project to bankable feasibility and complete permitting, while also providing access to China’s banks. George Rogers of Investec reinforces that looking at all options with eyes wide open and ensuring that commercial terms weigh up is the common-sense approach for a successful alternative financing story. He also expresses optimism that multiple sources of financing for global mining will be open by the end of the year, despite noting that 2012 will likely be a “rollercoaster.” CIM

MOVING ON UP North Atlantic Potash and JSC Acron appointed David Waugh as its CEO. Waugh will lead the company’s ongoing exploration and development of its 2.7 million acres of permitted land in Saskatchewan’s potash belt. He has over 30 years of progressively senior experience in the potash sector in exploration, development, and mine construction and operations. *** Diamond Discoveries International Corp., a U.S company focusing on chromium, platinum group elements (PGE) and gold exploration on its 100 per cent-owned Caribou property in Thetford Mines, Quebec, appointed Christopher Ecclestone as vice-president of business development. Ecclestone is a principal and mining strategist at Hallgarten & Company in New York and the CEO/director of Mediterranean Resources. *** Thomas Hart is the new vice-president of exploration at Transition Metals Corp. He will be responsible for overseeing exploration activities and will also assist the management team in the evaluation of new business opportunities. Most recently, Hart worked as a mapping geologist for the Ontario Geological Survey and for Northern Superior Resources.

February 2012 | 47

upfront BUSINESS TOOLS by Kr ystyna Lagowski

3D data comes alive Golder’s interactive centre located in Toronto’s financial district means. I like it for the sheer size and scale, and the way it gives a better perspective.” “For mining and metal analysts whose job is to minimize corporate risk for investors, they can come right here,” says Fairs. “Using the 3D technology will help them identify technical challenges or risks and, at the end of the day, they can be more confident whether or not it is a risk, and know how much money to invest.”

As many uses as there are disciplines

Courtesy of Golder

The philosophy with C3D is to facilitate a collaborative discussion between different disciplines. “For example, in an ore value evaluation, experts like geologists, seismologists and rock mechanics can study the 3D model here in our conference room John Fairs (back right) leads a collaborative 3D strategy session with colleagues at Golder’s C3D Centre. The dataset while we change the view according pictured on the screen is an aggregate resource model. to their different datasets,” explains Fairs. older Associates’ Collaborative 3D Centre (C3D), Doug Morrison, former global mining sector leader at housed in a specially designed conference room in their Golder and currently vice-president of the Centre for Exceldowntown Toronto office, seats 20 to 30. After visitors lence in Mining Innovation, was instrumental in helping to don 3D glasses, they can watch a variety of complex data, establish the C3D Centre at Golder. He was on the board of projected onto a large screen directors at MIRARCO, a mining in 3D, offering a powerful research organization based in level of detail and depth Sudbury with a similar 3D virtual perception. reality laboratory. Morrison But what is new is not the believed the 3D technology availvisualization technology able in Sudbury would be a valuitself, but the people using it. able tool in Toronto as well. ~ D. Morrison “Its true skill is to analyze data Locating the C3D Centre in in real time, in 3D graphic the heart of Toronto’s finanterms,” he says. “It’s the differcial district was deliberate. ence between information and knowledge.” “The mining companies are looking for investments for their “It’s really a data analysis tool with a very sophisticated presproperties and deposits, either by selling them or by raising entation format,” Morrison explains. “You have lots of data, capital to take them to the next stage where they turn them but you don’t know what’s important. You sift through it and into mines,” says John Fairs, Spatial-IM Division manager at Golder. remove all or a portion of a dataset, or add a piece, and evenOne of these companies is Gowest Gold Ltd., a junior tually you hone in on the crucial pieces of information that can exploration company focused on its gold project near make the difference.” Timmins. “We’ve used it with our geology group and also for “Clients come in with their data and project informaour annual meetings,” says Gowest president Greg Romain. tion, and we can display it in 3D to help them visualize it “The C3D is a great marketing tool, especially for those who properly,” Fairs says. “As a result, they can make better don’t quite understand geology and how it looks and what it decisions. For example, we start with the drill hole data

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It’s the difference between information and knowledge.

48 | CIM Magazine | Vol. 7, No. 1

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and combine every piece of dataset possible to come up with a model that includes geophysics, seismic information, faults, etc., trying to reconstruct what the Earth might look like below the surface – and then estimate the potential of what resource or geotechnical challenge might be there.” Datasets can be fed into a computer and displayed to interact with other data – providing clients are using compatible software. Fairs says the cost to use the centre can depend on whether clients need help to migrate data to compatible solutions, and how long the space needs to be reserved for.

Field tested Although the C3D Centre is only three years old, the actual 3D technology has been successfully used in the oil and gas industry for many years. In fact, that industry relies heavily on the technology to visualize data. At companies such as Texaco and BP, one office may have three or four 3D visualization centres. The C3D Centre itself is a collaborative effort between Golder and MIRARCO. The cost of building the centre in Golder’s downtown Toronto office was roughly $225,000. “The cost covers everything from the screen and projectors to the paint required to make this room feel like a dark cave, to make the presentation more effective,” says Fairs. Initially, the 3D technology was used for geotechnical work in the mines to identify faults. Since there could be hundreds of faults in a mine, it was difficult to determine which ones could be causing a problem. But by using the 3D technology to combine the faults with other known structures and overlaying microseismic activity, mine engineers could get a better idea of where the activity clusters were located, and identify a particularly critical fault. Gowest Gold, which has built a resource of 1.2 million Indicated and Inferred ounces of gold so far at its Frankfield property, uses the 3D technology to translate the resource numbers into an understandable image. “You get to see the ore body and you can rotate it around, and you can do it in front of a lot of eyes at the same time,” Romain adds. “You can sit at Golder’s facility with 20 or 30 people and somebody might ask you a question that somebody else might not have thought of, and you can rotate the ore body and talk through it – show them what it looks like and give them the different slices.” Romain likes the level of detail offered by the C3D and the reality of planning a drill hole in advance. He notes, “You can have debates with everyone involved whether [the drill] should be moved or not – spend the time before you drill. And that’s where the money savings are.” CIM February 2012 | 49

upfront Q&A by Graham Lanktree

Decisions, decisions Mark Rebagliati has made a lot of good ones ound for pound, Mark Rebagliati has easily brought home more precious metal than his son, Olympic snowboarding gold medallist Ross Rebagliati. In a mineral exploration career spanning 40 years, the executive vice-president of exploration at Hunter Dickinson Incorporated (HDI) has unearthed and won awards for some of the largest discoveries in Canada and around the world. But exploration has changed by leaps and bounds, and Rebagliati plans to inspire the next generation of prospectors to keep bringing home the gold by sharing some secrets of his success at this year’s PDAC conference in a talk titled, “Stick your neck out and make a decision!”

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geologists discussing the geological aspects of each project to formulate exploration.

CIM: In your current position at HDI, how different is your world today compared to when you started in geology? Rebagliati: In the mid-1960s, I knocked on a lot of doors to get in with a junior mining company and ended up spending a summer in the bush with Anaconda Copper. I liked it because I got a free helicopter ride out into the wild to go exploring. Now I have to sneak that in whenever I get the chance. My position puts me in charge of HDI’s exploration programs worldwide. So I’m often handling four to eight projects simultaneously. Usually, I’m sitting down with 20 to 30 of our

CIM: Is there a time when you did just stick your neck out? Rebagliati: My work in the Pebble East prospect in Alaska was a great challenge. We needed to find higher grade mineralization, but there was a decision made that we couldn’t use our drills to test beyond the ultimate pit line that was drawn up. From my perspective, it was a no-brainer to keep following the intensity of quartz veining that was increasing to the east. So we set up on the edge of the pit limit and I drilled a hole at a 60-degree angle beyond. That hole led to the discovery of more than five billion tonnes of mineralization we were looking for at double the

50 | CIM Magazine | Vol. 7, No. 1

CIM: Why did you choose the title “Stick your neck out and make a decision!” for your upcoming talk at the PDAC conference? Rebagliati: You could play it safe all your life as a prospector hunting for mineral deposits by playing the odds and saying “no” to every hunch or risk – and there’s a good chance you might be right. But sometimes the only way you’re going to make a big discovery is if you stick your neck out with an informed guess.

upfront Q&A

grade found elsewhere at the site. The find turned Pebble into the third largest gold resource in the world. CIM: Doesn’t exploration technology take a lot of the guesswork out of choosing the right target these days? Rebagliati: Not in my view. We have to look deeper all the time, and very often we’re assessing near-surface features for what we’ll find hundreds of metres below. We’re constantly pushing the limit of what we can see and our knowledge of how mineral deposits form. CIM: What are a few of the key points you’ll touch on at PDAC? Rebagliati: Assemble the best technical team you can when exploring. Not everyone will have all the required skills, but gather a group that has a full cross-section of what you’ll need. Listen to what the experts in your team say, but be firm on your decisions. When things are looking good, push the limits. And when it looks like things aren’t working out, pull the drills and save your resources for another target. CIM: Have you developed a sixth sense for finding large mineral deposits? Rebagliati: A number of exploration geologists have a knack for identifying the clues that lead to large discoveries. I count myself lucky to be among them. Every mineral deposit is dif-

ferent. My advice is to have an open mind about what you do and don’t see. If, say, 60 per cent of the features you find at a site fit your models, there’s a good chance you’ll make a find. Don’t wait for a 90 per cent match. CIM: Where do you see mineral exploration going? Are there trends to look out for, and how is exploration changing? Rebagliati: There are always price cycles for metals and minerals. Some groups will chase whatever is in vogue. But I look for the ones that have long-term value. The technology we use has improved immensely. When I started in geochemistry, it used to be that you would mix your sample in a test tube to find a few base metals. Now, we send off 500 grams of soil in a bag to the lab and get results identifying the concentrations 42 different elements and use computers for plotting. Today, you can look a kilometre deep rather than 50 metres. And a gravity survey done on the ground, which used to be very tedious, can now be done with an airplane. We also have a far greater understanding of how mineral deposits form. With GPS and all these other technologies, exploring is now far more cost-efficient. CIM: What makes a mineral resource attractive today? Rebagliati: Commodity diversity. I’m a fan of polymetallic massive sulphide and porphyry deposits because they let you play the base and precious metal markets at the same time. CIM: What has been the most exciting discovery you’ve made? Rebagliati: Most prospectors would be thrilled to find a single large mineral deposit. I’ve been fortunate enough to discover five. Mount Milligan was the first one for me, and the Pebble East deposit was a real world-class find. It’s satisfying as an individual to make discoveries that provide long-term employment for other people and to see the progress of each project. Another great thing about this job is that I’ve been to 55 or 60 different countries, including Afghanistan, Kazakhstan and China, and seen snakes, lions and polar bears. That’s the good life. CIM: Are there mining jurisdictions that you feel are untapped? Rebagliati: With improved technology and transportation, the whole world is still underexplored. There are whole new districts developing right in our own back yards. In Ontario and Quebec, there are some major gold deposits coming in, and those provinces have been mined for upward of 75 years. In British Columbia, two new bulk tonnage gold districts are evolving. Pebble, in Alaska, is another completely new district. CIM: Any last words of advice for the upcoming generation of prospectors? Rebagliati: Never stop reading technical journals and attending geological conferences and short courses. Go on every mine tour you can. Look at drill cores at as many deposits as possible to recognise their characteristics. Stick your neck out and make a decision! CIM

52 | CIM Magazine | Vol. 7, No. 1

o improve equipment availability, starting in 2008, Suncor stripped down and rebuilt how it performed routine maintenance. The results are impressive. With the process revamped, the mine maintenance team has succeeded in shaving the time required for an oil change on a heavy-haul truck from 83 down to eight minutes. This is one of many improvements that Suncor’s vicepresident of maintenance Raymond Floyd chronicles in his recent book, Liquid Lean: developing lean culture in the process industries, which tells the various ways that changes – sometimes very small changes – can add up to enviable gains. As one might imagine, Floyd is not the only one taking a hard look at how process can improve performance. Tim Joseph, associate professor of mining engineering at the University of Alberta, cites the success of Australian Bulk Minerals (now Grange Resources) as another example of the impact that process improvements can have on mining operations. The company was taking a look at the maintenance process for the fleet of trucks at its Tasmania-based mining operation. They realized that every time a truck came in for service, it had to be washed of all the dirt it had accumulated over 500 hours of operation, a process, explains Joseph, that often took a full 12-hour shift. “So, they said, ‘Why don’t we build ourselves a wash bay you drive through, just like a car wash, and wash off the dirt every time a truck comes in to refuel?’” he continues. The added cost of recycling the water and the few seconds lost at each refuelling cycle were more than made up for in shorter scheduled downtimes and greater availability for the fleet, Joseph concludes. More and more companies today are cognizant of this and are working to make optimization an integral part of their strategies. And while the goal of these efforts – increased value – is shared across the industry, they can represent a dramatic departure from what has been the norm. The word “optimization” is not used in some companies, which prefer to describe what they do as “continuous improvement.” Jesse Hall, director of continuous improvement at Suncor Energy, explains the distinction. “Optimization implies there’s a pre-existing condition, and as a one-time event you’re going to make it as good as you can,” he says. “I think continuous improvement implies that there is no fully optimized solution, that there’s always more, there’s always a better way.” That is something Trevor Krawchyk, senior business improvement specialist

at Barrick Gold, can get behind. Barrick, he explains, has developed a four-stage scorecard that the various operations use to self-evaluate their improvement efforts. But, according to Krawchyk, “We’ve always said, you’ll never achieve or retain Stage 3 [the top stage], because the day you think you have achieved it, you’ll become complacent and lose that traction. Someone with a mindset that believes he has achieved perfection will never achieve a continuous improvement culture.”

Training up To ensure that Barrick’s various operations maintain that traction and keep improving their activities, the company employs over 80 full-time business improvement (BI) coaches. Drawn from management positions, the coaches take their posts for approximately two years. During that time, the coaches are responsible for “engaging the site leadership teams and the employees and identifying improvement opportunities, putting teams together, and facilitating those improvement projects through to completion,” Krawchyk explains. The coaches then generally return to their previous areas – usually at a higher level of responsibility – armed with two years of leadership experience facilitating improvement initiatives. Because the coach position has high turnover by design, Krawchyk says, the Toronto-based corporate business improvement team and regional business improvement managers put significant energy into training coaches in improvement initiative techniques and methods. The coaches also communicate with each other on a regular basis, forming a close network through which they exchange

February 2012 | 55

Courtesy of Suncor

Upgrading operator Doug Meagher, area manager Gabriella Stephens and process engineer Kevin Vong consult on site.

knowledge and experience. This network has been instrumental in securing buy-in from all levels of the organization at a time of rapid growth: over the past nine years, Barrick has gone from 10,000 employees to over 20,000 and from nine operations to 26. “We prefer to promote from within and bring Barrick people into the BI roles instead of using external resources so that there’s already a good relationship between the coaches

56 | CIM Magazine | Vol. 7, No. 1

and the employees at the mine sites,” explains Krawchyk. “We make sure we pick high-potential employees who have strong leadership capabilities and are good communicators, so there’s a credibility that’s already there when we do these types of improvements.” Barrick has also taken steps to formalize its improvement efforts, says Krawchyk, who worked for Toyota in the 1990s, and they have followed the auto manufacturer’s

“The role of the manager is to pick up a broom and

push the crap out of the way so that the people that matter, that are actually doing their jobs, can get on with doing their jobs.” – T. Joseph

Courtesy of Chen Wei Seng / Shutterstock.com

example in implementing in which they can make Kaizen workshops. The improvements and, if their company collects data on ideas are within this framethe areas of greatest potenwork, they do not need to tial return on investment ask their managers for perfor their efforts, and then mission. “So we might not forms cross-functional always know how many of teams consisting of operathose improvements are tors, supervisors and techgoing on each and every nical specialists, who work day; we just see them in bettogether on possible soluter business results,” she tions. Both Suncor and Baradds. Suncor’s Floyd argues the planned, practiced teamwork of an auto racing pit crew working with well-configured equipment is an excellent model for maintenance rick draw on Toyota’s lean This does not mean that teams at mining and processing operations. manufacturing principles, autonomous improvement which drive production leadership goes unrecogteams to eliminate waste that ranges from surplus produc- nized. Teams have “quality stations” where they can post tion to underused talent. their past accomplishments and announce their current projThe process of formalizing the improvement efforts ects. Suncor and Barrick also give out awards, for which reaches straight to the top, adds Krawchyk. Barrick sets teams and individuals can be nominated. To keep the workannual performance commitments for its entire senior staff, from the COO through regional presidents, down to the general managers of operations and their respective leadership teams. These include various measurements, but a few years back, Barrick added value creation to the list. The business improvement coaches are resources to support the operations in meeting their value creation targets. “Continuous improvement is more ingrained in the culture now,” explains Krawchyk. “It’s systematized, versus being something that’s off on its own. We’ve made it part of our annual business cycle.” While Barrick does not disclose the annual savings resulting from these initiatives, Krawchyk says that the cumulative effect over the last several years has been substantial.

Freedom to change Improvement initiatives at Suncor, explains Anne Marie Toutant, the company’s vice-president of oil sands optimization and integration, come in two varieties: focused improvements, where an engineered solution of some sort is required, and autonomous improvements, where the frontline operators and maintenance workers improve their own work environment. A single focused improvement may have greater impact than any one autonomous improvement, but the former are far fewer in number. Taken together, she says, autonomous improvements may have a more significant impact on Suncor’s performance than the sum total of focused ones. Toutant says front-line operators and maintainers, together with their shift supervisor, need to know the scope February 2012 | 57

force engaged, Barrick circulates an internal newsletter that highlights improvements across its operations. Suncor’s Hall adds that to develop a culture of improvement it is important to do more than recognize success. “It’s also getting back to the people when their improvement idea is not acted upon with the reasons for why it’s not,” he says. “It can’t be a one-way suggestion box-type approach. It has to be a collaborative, iterative approach.” Over the last two years, the company says that various improvements related to oil sands mining, bitumen extraction and upgrading operations have deferred capital costs totaling $2.65 billion. Finally, Toutant points out that their teams have opportunities to showcase their achievements in front of other teams from other parts of the company. The awareness that you can bring positive change to the whole company and learn valuable new skills in the process is a vital part of Suncor’s retention strategy, she says.

The cost of buy-in If a change is going to be successful, it is crucial to have buy-in from all parts and levels of the organization doing the changing. Emilio Sarno, North American program manager for asset management consultancy GMC Global, has found that concept deeply important, and he emphasizes the importance of front-line workers in its implementation. “They know what’s happening on a daily basis in the field,” he says. “If you invest time together with the team to understand the importance and positive impact of their participation, in most cases, they will be willing to change their behaviour. It’s about empowerment. Sometimes we blame people who are in the field because they don’t want to change. But if we don’t explain why or never explain things in the right way, and we just push for participation or a buy-in, then it’s never going to happen.” While teaching at the University of Alberta, Joseph puts it even more bluntly in lectures to his graduate classes, made up of multi-discipline engineering professionals from around the world. “The first thing I ask my students is, ‘Who do you think are the most important people at the mine site?’ Most of them say it’s the manager or the president. And I say, ‘no, that’s wrong.’ The most important people are the people that operate the equipment 58 | CIM Magazine | Vol. 7, No. 1

“We might not know all the time how many of those improvements are going on each and every day; we just see them in

better business results.”

Courtesy of Suncor

– A. M. Toutant

A maintenance crew perform work on a shovel at Suncor's open-pit operation.

and the people who pull the wrenches and maintain it.” Joseph’s rationale is simple: the equipment operators and the maintenance workers are the ones who implement process improvements. If they are not on-board, or do not understand the significance of the change, things are bound to go wrong. “The role of the manager is to pick up a broom and push the crap out of the way so that the people that matter, that are actually doing their jobs, can get on with doing their jobs,” says Joseph. Both Krawchyk at Barrick and Toutant and Hall at Suncor readily acknowledge that their companies have lots to learn about the continuous improvement process, as they are new on the scene. But newness is part of the whole experience; Raymond Floyd, who has been credited with bringing lean concepts to the oil industry, only joined Suncor in 2008. And Barrick’s formal continuous improvement program, after nine years, is still relatively young. “Toyota has been at this for 50 years and they’re still evolving and never satisfied with where they’re at,” Krawchyk says.

Joseph says mining companies can draw on established expertise from more mature lean-practice industries. Even something as far removed as the Campbell’s Soup Company, which has mastered production of soups at very low cost, can offer valuable lessons. “Every piece of equipment and every tool are ready to go when they need to be; the maintenance is down to a fine art,” he says. While discussions of lean principles are ubiquitous in the world of management and leadership development, documents that focus on their application in the extractive sector are relatively scarce. Floyd’s Liquid lean, however, is a valuable resource, as is an academic paper by a pair of researchers from the University of Sao Paolo that outlines the benefits mining operations might gain from adapting lean principles to the mineral value chain.

Capital costs are creeping up and labour is becoming scarcer; as these forces squeeze the margins, the pressure to re-examine the details of dayto-day operations will only grow. The experience from other industries suggests there is ample value to be discovered in the details. CIM

Further reading Floyd, Raymond C. (2010). Liquid lean: developing lean culture in the process industries. New York: CRC Press. Steinberg, J. G., & De Tomi, G. (2010). Lean mining: principles for modelling and improving processes of mineral value chains. International Journal of Logistics Systems and Management, 6(3), 279–298.

February 2012 | 59

Courtoisie de Suncor

Matt Collins, technicien en machinerie lourde, en plein travail au garage Suncor

Place à l’amélioration

P

Un regard critique sur les activités quotidiennes

our accroître la disponibilité de son matériel, Suncor a remis à plat puis rebâti son processus d’entretien courant. Les résultats sont impressionnants. Le processus ayant été repensé, l’équipe d’entretien du matériel minier a réussi à réduire de 83 à 8 minutes la durée de la vidange d’huile d’un camion de transport lourd. C’est l’une des nombreuses améliorations que Raymond Floyd, vice-président, maintenance, de Suncor, décrit dans son récent ouvrage, Liquid Lean: developing lean culture in the process industries, qui indique les multiples façons dont des changements, parfois minimes, peuvent en s’additionnant générer des profits enviables. Comme on peut l’imaginer, il n’est pas le seul à jeter un regard critique sur la façon dont les processus peuvent améliorer le rendement. Aujourd’hui, de plus en plus de sociétés en sont conscientes et s’efforcent de faire de l’optimisation une partie intégrante de leurs stratégies. Et si ces efforts ont un objectif commun dans toute l’industrie, soit l’accroissement de la valeur, ils peuvent représenter un changement marquant par rapport à ce qui était la norme. Le terme « optimisation » n’est pas employé dans certaines sociétés qui préfèrent décrire ce qu’elles font comme de « l’amélioration continue ». Jesse Hall, directeur de l’amélioration continue à Suncor Énergie, explique la distinction à faire entre ces deux termes. « La notion d’optimisation suppose une condition préexistante. Elle est ponctuelle et indique que vous allez faire du mieux que vous le pouvez. Je pense que la notion 60 | CIM Magazine | Vol. 7, No. 1

d’amélioration continue implique qu’il n’existe pas de solution pleinement optimisée, mais qu’on peut toujours faire plus, toujours faire mieux. » C’est quelque chose que Trevor Krawchyk, spécialiste principal en amélioration opérationnelle à Barrick Gold, garde en tête. Barrick, explique-t-il, a élaboré une feuille d’évaluation en quatre étapes que les différents sites d’exploitation utilisent pour auto-évaluer leurs efforts d’amélioration. Mais selon M. Krawchyk, « nous l’avons toujours dit, vous n’atteindrez jamais ou ne vous arrêterez jamais à l’étape 3 [l’étape la plus élevée], car le jour où vous penserez l’avoir atteinte, vous relâcherez votre effort et perdrez la force qui vous anime. Quelqu’un qui pense avoir atteint la perfection ne parviendra jamais à adopter une culture d’amélioration continue. »

Équipes de leaders Pour que les différents sites d’exploitation de Barrick conservent cette force qui les anime et continuent d’améliorer leurs activités, la société fait appel à plus de 80 conseillers en amélioration opérationnelle à temps plein. Recrutés parmi les cadres de direction, ces conseillers sont nommés pour une durée de deux ans environ. Pendant cette période, ils sont chargés de « motiver les équipes de direction et les employés de chaque site et de trouver des possibilités d’amélioration, de réunir les équipes et de faciliter ces projets d’amélioration pendant leur mise en œuvre », explique M. Krawchyk. Ensuite, les conseillers reprennent généralement leurs fonctions

précédentes – habituellement à un niveau de responsabilité plus élevé – enrichis par ces deux années d’expérience de dirigeants et de facilitateurs d’initiatives d’amélioration. Comme le poste de conseiller a un taux de roulement élevé en raison de la manière dont il est conçu, souligne M. Krawchyk, l’équipe d’amélioration opérationnelle de l’entreprise établie à Toronto et les responsables régionaux de l’amélioration opérationnelle investissent énormément d’énergie dans la formation des conseillers sur les techniques et les méthodes d’amélioration. Par ailleurs, les conseillers communiquent régulièrement entre eux et forment un réseau serré dans le cadre duquel ils échangent leurs connaissances et leurs expériences. Ce réseau a joué un rôle clé pour obtenir un appui à tous les niveaux de l’entreprise à une période de croissance rapide : au cours des neuf dernières années, Barrick est passée de 10 000 employés à plus de 20 000 employés et de neuf sites d’exploitation, à 26. « Nous préférons faire de la promotion interne et nommer des gens de Barrick à ces postes de conseillers en amélioration opérationnelle plutôt que de faire appel à des ressources externes, car cela permet d’avoir déjà une bonne relation entre les conseillers et les employés sur les sites miniers », explique M. Krawchyk. « Nous veillons à choisir des employés ayant un potentiel élevé et de solides capacités en matière de leadership et qui sont de bons communicateurs, de façon à ce qu’il y ait déjà une crédibilité quand nous faisons ce genre d’améliorations. » Barrick a déjà pris des mesures pour officialiser ses efforts d’amélioration, selon M. Krawchyk qui a travaillé pour Toyota dans les années 1990, et l’entreprise a suivi l’exemple du constructeur automobile en organisant des ateliers de travail Kaizen. La société recueille des données dans les domaines où le potentiel de rendement du capital investi est le plus élevé, puis forme des équipes interfonctionnelles composées d’opérateurs, de superviseurs et de spécialistes techniques qui travaillent ensemble pour trouver des solutions possibles. Suncor et Barrick se sont toutes deux inspirées des principes de production allégée de Toyota qui conduisent les équipes de production à éliminer le gaspillage, de la production de surplus à la sous-utilisation des talents. Barrick établit des engagements de rendement annuel pour tous ses cadres de direction, du chef de l’exploitation aux gestionnaires des opérations et leurs équipes de direction respectives en passant par les présidents régionaux. Cela inclut diverses mesures, mais il y a quelques années Barrick a ajouté la création de valeur à sa liste. « La notion d’amélioration continue est plus ancrée dans la culture de l’entreprise aujourd’hui. Elle a été érigée en système, alors qu’elle n’était auparavant qu’une notion autonome. Nous l’avons intégrée à notre cycle d’activité annuel », explique M. Krawchyk. Même si Barrick ne divulgue pas les économies annuelles résultant de ces initiatives, M. Krawchyk souligne que leur effet cumulatif au cours des dernières années a été notable.

La liberté de changer Selon Anne Marie Toutant, vice-présidente, chargée de l’optimisation et de l’intégration des activités liées aux sables

pétrolifères, à Suncor, les initiatives d’amélioration de la société se présentent sous deux formes : des améliorations ciblées pour lesquelles une solution technique est nécessaire, et des améliorations autonomes, où les opérateurs de première ligne et le personnel d’entretien améliorent leur propre environnement de travail. Une seule amélioration ciblée peut avoir une incidence plus grande que n’importe quelle amélioration autonome, mais les améliorations ciblées sont beaucoup moins nombreuses. Ensemble, dit-elle, des améliorations autonomes peuvent avoir une incidence plus importante sur le rendement de Suncor que la somme des améliorations ciblées. Mme Toutant explique que les opérateurs de première ligne et les agents d’entretien, de même que leurs chefs d’équipe, doivent connaître le périmètre dans lequel doivent s’inscrire les améliorations. Si leurs idées respectent le cadre établi, ils peuvent apporter des améliorations sans avoir besoin de l’autorisation de leur superviseur. « Il est donc possible qu’on ne sache pas toujours combien d’améliorations de ce genre sont apportées chaque jour; on ne s’en rend compte qu’en voyant les résultats qui sont meilleurs », ajoute-t-elle. Enfin, elle souligne que leurs équipes ont des occasions de montrer aux autres équipes de la société ce qu’elles ont réussi à faire. Savoir que l’on peut apporter des changements positifs pour l’ensemble de l’entreprise et acquérir de nouvelles et précieuses compétences dans le processus, cela constitue une composante essentielle de la stratégie de conservation du personnel de Suncor, dit-elle.

Le coût du ralliement M. Krawchyk, de Barrick, comme Mme Toutant et M. Hall, de Suncor, reconnaissent sans difficulté que leurs entreprises ont beaucoup à apprendre sur le processus d’amélioration continue, car il est nouveau pour elles. Mais la nouveauté fait partie de toute l’expérience; Raymond Floyd, à qui l’on doit d’avoir apporté les concepts de la production allégée au secteur pétrolier, s’est joint à Suncor en 2008 seulement. Et le programme d’amélioration continue adopté officiellement par Barrick depuis neuf ans est relativement jeune. « Toyota y travaille depuis 50 ans et continue de progresser, n’étant jamais satisfait du résultat atteint », déclare M. Krawchyk. Alors que les discussions sur les principes de la production allégée sont omniprésentes dans le monde de la gestion et du perfectionnement du leadership, les documents consacrés à leur application dans le secteur de l’extraction sont relativement rares. L’ouvrage de Raymond Floyd, Liquid Lean, cependant, constitue une précieuse ressource, de même qu’une étude universitaire réalisée par deux chercheurs de l’Université de Sao Paolo qui décrit les avantages que les activités minières pourraient tirer de l’adaptation des principes de production allégée à la chaîne de valeur des minéraux. Les dépenses en immobilisations augmentent et la maind’œuvre se fait plus rare – comme ces facteurs réduisent les marges, la pression pour réexaminer les détails des opérations quotidiennes ne fera que croître. L’expérience provenant d’autres industries suggère qu’il y a beaucoup à gagner en se penchant sur des détails. ICM February 2012 | 61

Courtesy of Eldorado Gold

project profile | K I S L A D A G M I N E

A modern mine in an ancient land The perceived risks surrounding Eldorado Gold’s heap leach operation in western Turkey made bringing the project into production an uphill struggle. Now, with mining underway, both the company and the host community have discovered the other to be a surprisingly good neighbour. BY EAVAN MOORE

T

he Kisladag Mine, owned by Eldorado Gold through its Turkish subsidiary Tuprag Metal Madencilik Sanayi ve Ticaret, produced 179,195 ounces of gold through the first three quarters of 2011. This set a new record for the largest gold mine in the country. In addition to turning out a healthy supply of gold, Kisladag also has drawn in thousands of visitors who show up to see what a well-run cyanide heap leach operation looks like. The ore is abundant but low grade, with Proven and Probable Reserves of 430 million tonnes at a grade of 0.74 g/t, and Measured and Indicated Resources of 560 million tonnes at 0.68 g/t. So heap leaching is the only economically viable method for extraction. After drilling and blasting, a gyratory crusher and four cone crushers prepare the run-of-mine ore, and a conveyor system transfers it to a leach pad. In 2011, 12.5 million tonnes of ore went through the process at Kisladag. Liberating the sulphide ores that form the bulk of the deposit takes 100 to 120 days, with a recovery rate of 64 per cent. A carbon adsorption plant recovers the gold and the final product is shipped out as doré bars.

Managing risks Kisladag works hard to manage the risks in its operations. The deposit contains an amount of oxide waste, which is used to encapsulate sulphide waste and prevent acid mine drainage. “I’ve not seen it at any mine I’ve ever been at,” 62 | CIM Magazine | Vol. 7, No. 1

comments the mine’s general manager, Bill Crabtree. Both sulphide and oxide waste rock are hauled to a waste rock dump area in 150-tonne trucks. The oxide waste is dumped second so that it covers the sulphide waste rock like a metre’s worth of icing on a very large cake. Topsoil capping follows the oxide waste. This process has been repeated continuously from the project’s start. As the pit is excavated more deeply, the oxide ore will eventually run out, which Crabtree estimates at 40 per cent of run-of-mine in 2011 and 30 per cent in 2012. In anticipation, work is underway to compose a different cover mixture. Kisladag is also handling the leaching process for ore from its new gold mine, Efemcukuru, near the city of Izmir. Crabtree explains that it was wiser to avoid any problems relating to cyanide use by producing concentrate at Efemcukuru and trucking it to Kisladag where the relevant permits were already in place. He points out, however, that environmental concerns have been dying out over the years. “Early on it was a concern, only because of what others did in the past,” he says. “With companies coming in that have expertise, it’s changed a lot.” Environmental concerns did delay the project initially. In 2007, less than a year after production began, a legal challenge to environmental approval set the mine at a standstill for seven months. But Kisladag kept on all of its employees, intensifying their training and waiting for the court case

KISLADAG MINE

| project profile

“When you hire people that are local, they live most of their life in the community.

They like it right where they are.” ~ B. Crabtree

resolution. Meanwhile, the price of gold continued to rise. Ultimately, Crabtree says, the case cleared the courts and Kisladag restarted with greater local respect and a higher price for its product.

Expanding as planned Gold price permitting, Kisladag could be in operation for at least the next 10 years. It was planned in staged expansions, beginning with commercial production in 2006. The pit has a total surface footprint of 125 hectares, to be mined out over the life of the mine. In the initial stages of development, Eldorado used a local contractor with smaller trucks to haul waste. As big trucks and major mining equipment arrived in 2008, the mine hired on the workers who had been brought in and trained for the job. The local contractor continues to do other work around the site.

In 2011, additional capacity was added to the crushing and conveying circuits. The next step is expansion Phase IV, which should add another 12.5 million tonnes to the leach pad and bump up production to about 475,000 ounces a year after its completion in 2014. A supplementary environmental impact assessment remains to be submitted and approved in 2012. New crushing, stacking and conveyor systems will arrive in the next few years, along with more trucks, shovels and drill rigs. A dewatering system will be installed once the pit is developed below the water table in 2014. Although the company was initially concerned that Kisladag’s location might limit the available equipment, Crabtree says that they were pleasantly surprised. For its Caterpillar equipment, Kisladag found dealers in both Istanbul and Izmir. Engine manufacturer Cummings, too, has a dealership in

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

Contact us: mining@amec.com or visit amec.com/mining

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

at s t r pe 4-7 x r e ar 00 u t o C M h 11 e e A M PD oot B February 2012 | 63

project profile | K I S L A D A G M I N E 1

3

5

64 | CIM Magazine | Vol. 7, No. 1

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Istanbul. “We found out that there was a lot more here than we even dreamed of,” says Crabtree. Even with the larger trucks and shovels – Kisladag brought in the first local 785 Cat trucks – there was adequate support. The first two people hired to operate the Hitachi EX-3600 shovels had 18 years of experience with large shovels. Crabtree adds that some components, like those for conveyor lines, can be easily custom built in Turkey. “You can go to Ankara and you can take things to machine shops, give them one of the parts, and tell them, ‘Make me one of those, I’ll be back in a few weeks,’” he says. “It’s amazing.”

| project profile

Source: Wikipedia.org

KISLADAG MINE

Building a reputation Working in Turkey did pose special challenges. For one thing, work proceeds at a slower pace than in North America. And, although English is a required subject in Turkish schools, early on most new hires needed translators in order to understand the training with experts who came from North America. Now, Kisladag has hired and trained enough professionals that much expertise can be shared in Turkish. “As time goes by and people are getting more experienced in what they do, you won’t need all these translators because they know what they’re doing now,” Crabtree says. “They’re sharing that with new people on the site.” He observes that each time the mine undertakes an expansion, it gets easier, thanks to the gradual development of the mine’s staff.

Photos opposite page: 1. Dust control; 2. The Kisladag pit; 3. The leach pad under irrigation; 4. The gold recovery plant; 5. Native trees grown in the greenhouse are planted along mine roads and in the surrounding communities. Courtesy of Eldorado Gold.

PROJECT SPECS

The company committed to hiring 80 per cent of its workforce from local villages. When the mine first started, hiring was slow. “You’re really handicapped when you first show up,” says Crabtree. “You think you can put an ad in the paper and everyone’s going to answer it, but it doesn’t happen.” But as the mine’s reputation grew, people came – and stayed. According to Crabtree, Kisladag has the lowest turnover rate for a company of its size in Turkey. “When you hire people that are local,” he explains, “they live most of their life in the community. They like it right where they are.” Hiring locally works for the mine, but it was also one of Kisladag’s planned social benefits, says Crabtree – along with paved roads, mobile health clinics, playgrounds and 72,000 trees for the semi-arid, unforested terrain. And the mine has developed with the local community in mind: neither the mine nor its closest villages had water resources on site, so Eldorado’s management arranged to develop several wells five kilometres away and deliver water to 13 nearby

LOCATION: Usak, Turkey

MINE LIFE 2006–2026

LIFE-OF-MINE STRIPPING RATIO 1.4:1

Courtesy of Eldorado Gold

2011 EXPANSION STUDY RESULTS BASED IN EXPANDED RESERVES AND RESOURCES Tonnes ore (millions) Recovered ounces Total cash costs ($/oz)

2012 12.5 280,000 355-375

2013 12.5 280,000 420-440

2014 23.8 425,000 350-370

2015 33.5 555,000 385-405

2016 34.9 575,000 395-415

IMPROVING FORTUNES Kisladag’s updated resources and reserves

2008

2010

Mineral reserves Proven Probable Total

Millions of tonnes 67.7 93.8 161.5

Grade Au (g/t) 1.08 1.05 1.06

In-situ gold (millions of ounces) 2.3 3.1 5.5

Proven Probable Total

122.7 306.6 429.3

.95 .66 .74

3.7 6.4 10.2

Mineral resources Measured Indicated M+I Inferred Measured Indicated M+I Inferred

Millions of tonnes 69.8 185.5 255.3 140.5 132.8 426.3 559.1 320.8

Grade Au (g/t) 1.10 .89 .95 .74 0.90 0.61 0.68 0.43

In-situ gold (millions of ounces) 2.4 5.2 7.7 3.3 3.8 8.3 12.1 4.3 Source: Eldorado Gold February 2012 | 65

project profile | K I S L A D A G M I N E

A sector on the rise

villages. Eldorado installed water and sewer systems both for its own project and for nearby villages. Two water storage ponds also divert water from the leach pads and provide water to operations.

In the last 10 years, gold mining in Turkey has overcome a rough start. Gold had historically been placermined or extracted with pickaxes. When renewed interest in Turkish gold deposits led Newmont Mining to build the first operation to use modern extraction and leaching methods at Ovacik in 2001, fierce local opposition centring on cyanide use stalled production. Experience appears to have softened the public opposition and the Turkish government has encouraged foreign investment in the sector. Changes to Turkish mining law passed in 2004 and 2010 largely benefited exploration companies, according to Bill Crabtree, general manager at the Kisladag Mine. One of the most important changes forced license holders to carry out serious exploration, discouraging speculation that had frustrated prospective miners. Another change simplified the permitting process, speeding up a mine’s time to production. Today, Turkey leads Europe in gold production, accounting for 49 per cent of the continent’s output in 2011. An influx of foreign investment, often in partnership with Turkish firms, has so far built five producing mines and funded much more exploration. In 2010, the four gold mines then operating produced about 546,000 ounces. According to the Turkish Gold Miners Association, Turkey has a resource potential of about 23 million ounces of gold. Eldorado is the largest gold producer in Turkey with its Kisladag and Efemcukuru operations. Turkish-owned Koza Gold became the second largest when it acquired Newmont’s Ovacik and Mastra mines. Mid-tier gold miner Alacer Gold Corp controls Çöpler, a 1.3-million-ounce oxide deposit in eastern Turkey that started production at the end of 2010. These companies are joined in their exploration activities by more than 20 others, including Canada-based Teck Resources and Alamos Gold. Gold is not Turkey’s chief mineral product – the country controls more than a third of global boron resources and mines large amounts of dolomite, marble and coal – but it is a fast-growing sector.

Keeping up to date

Courtesy of Eldorado Gold

Kisladag’s management has taken steps to outfit the mine with useful technologies. In 2011, it introduced level control software to ensure that the reclamation area receives the optimal amount of topsoil. The software unit, manufactured by Topcon Positioning Systems, rides on the mine’s D9 dozer. Kisladag also uses a radar unit that continuously scans pit walls and sends out alerts if there is movement there. “I’d never seen one of those before,” says Crabtree. “It took us quite a while to get it through customs. We had to make them understand why we needed that. I think they thought it was some kind of military device.” Eldorado’s investments in Kisladag appear to be paying off. In 2010, the mine’s cash costs of US$339/oz remained well below average for the global gold industry. Companywide, gold sold for an average of US$1,223/oz. As new drilling programs expand the resource base yearly, this mine looks set to grow into the foreseeable future. CIM

66 | CIM Magazine | Vol. 7, No. 1

Courtoisie d'Eldorado Gold

projet en vedette | L A M I N E K I S L A D A G

Kisladag d’Eldorado Gold est la plus grande mine d’or en Turquie.

Une mine moderne dans un pays millénaire

L

a mine Kisladag, que la société Eldorado Gold détient par l’intermédiaire de sa filiale turque, Tuprag Metal Madencilik Sanayi ve Ticaret, a produit 179 195 onces au cours des trois premiers trimestres de 2011. Il s’agissait d’un nouveau record pour cette mine d’or qui est la plus importante de Turquie. En plus de produire une importante quantité d’or, Kisladag attire également des milliers de visiteurs qui viennent observer à quoi ressemble une installation bien administrée de lixiviation en tas au cyanure. La méthode utilisée à Kisladag est conventionnelle. Le minerai est abondant, mais à basse teneur, et les réserves prouvées et probables s’établissent à 430 millions de tonnes d’une teneur de 0,74 g/t, et les ressources mesurées et indiquées se chiffrent à 560 millions de tonnes d’une teneur de 0,68 g/t. La lixiviation en tas est la seule méthode rentable pour exploiter un minerai de cette teneur. Après l’étape du forage et du dynamitage, un concasseur rotatif et quatre concasseurs à cône préparent le minerai brut, qui est ensuite acheminé jusqu’à un 68 | CIM Magazine | Vol. 7, No. 1

remblai de lixiviation par des transporteurs. En 2011, 12,5 millions de tonnes de minerai ont été traitées de cette manière à la mine. Il faut de 100 à 120 jours pour libérer le minerai sulfuré qui compose la plus grande partie du minerai, et le taux de récupération est de 64 pour cent. L’or est récupéré dans une installation d’adsorption sur charbon actif, et le produit final est expédié sous forme de lingots d’argent aurifère.

Gestion des risques Kisladag ne ménage aucun effort pour gérer les risques liés à ses activités. Le gisement contient une certaine quantité de résidus oxydés, lesquels servent à recouvrir les sulfures résiduels et à prévenir le drainage minier acide. « Je n’ai rien vu de tel dans aucune autre mine », commente le directeur général de la mine, Bill Crabtree. Les stériles sulfurés et oxydés sont transportés jusqu’à un terril dans des camions de 150 tonnes. Les résidus oxydés sont déchargés en deuxième lieu, de manière à couvrir les débris de roches sulfurés comme une

LA MINE KISLADAG

couche de glaçage d’un mètre d’épaisseur sur un très gros gâteau. Une couche arable recouvre ensuite les matières oxydées. Ce processus est constamment répété depuis le démarrage du projet. La quantité de minerai oxydé diminuera à mesure que la fosse sera excavée en profondeur. M. Crabtree estime qu’il représentait 40 pour cent du minerai brut en 2011 et que cette proportion passera à 30 pour cent en 2012. Dans l’attente de cette éventualité, des travaux sont en cours pour élaborer un autre mélange de recouvrement. « Ils organisent des tests avec quelques entreprises afin de déterminer quel mélange de matières fines et grossières sera le plus efficace », explique M. Crabtree. C’est également à Kisladag que la société traite, par le même procédé de lixiviation, le minerai provenant de la nouvelle mine d’or, Efemcukuru, laquelle est située près de la ville d’Izmir. M. Crabtree nous explique qu’afin d’éviter tout problème lié à l’utilisation du cyanure, il valait mieux produire le concentré à Efemcukuru avant de le transporter par camion à Kisladag, où les permis pertinents ont déjà été obtenus. M. Crabtree souligne toutefois que les préoccupations environnementales ont diminué au fil des ans. « Au début, l’inquiétude était vive, mais seulement en raison de ce qui avait été fait auparavant par d’autres. Tout cela a bien changé avec l’arrivée d’entreprises ayant une expertise. »

L’expansion se poursuit comme prévu Si le cours de l’or le permet, la mine Kisladag pourrait être en activité pendant au moins les dix prochaines années. Il était prévu que l’expansion se déroule en plusieurs étapes depuis le début de la production commerciale en 2006. La fosse a une empreinte de superficie totale de 125 hectares et sera exploitée au cours de la durée de la mine. En 2011, la capacité des circuits de concassage et de transport a été augmentée. La prochaine étape, l’agrandissement de la phase IV, devrait permettre d’ajouter 12,5 millions de tonnes au remblai de lixiviation et de faire passer la production à environ 475 000 onces par année lorsqu’elle sera terminée en 2014. Une étude d’impact environnemental supplémentaire doit encore être présentée et approuvée en 2012. De nouveaux systèmes de concassage, d’empilage et de transport arriveront au cours des prochaines années, ainsi que d’autres camions, pelles et foreuses. Un système d’assèchement sera installé lorsque la fosse sera prolongée en dessous de la nappe phréatique en 2014. Même si la société craignait que la disponibilité du matériel ne pose problème vu l’emplacement de la mine Kisladag, M. Crabtree affirme qu’ils ont été agréablement surpris. Les responsables de Kisladag ont trouvé des concessionnaires Caterpillar à Istanbul et à Izmir. Il y a également un concessionnaire des moteurs Cummings à Istanbul. « Nous avons découvert que les fournisseurs sont beaucoup plus nombreux ici que nous l’avions imaginé », souligne M. Crabtree. Il ajoute que certaines pièces, comme celles utilisées dans les transporteurs, peuvent facilement être fabriquées sur

| projet en vedette

mesure en Turquie. « Il suffit de se rendre à Ankara et d’aller dans un atelier d’usinage. On leur apporte une des pièces pour qu’il la fabrique et on leur dit qu’on revient dans quelques semaines », explique-t-il. « C’est étonnant. »

Établir sa réputation Le fait de travailler en Turquie a posé des défis particuliers. D’abord, les travaux se déroulent à une cadence plus lente qu’en Amérique du Nord. Ensuite, bien que l’anglais soit une matière obligatoire dans les écoles turques, la plupart des nouveaux employés ont eu besoin au départ d’interprètes pour comprendre les experts nord-américains venus les former. Maintenant, les responsables de Kisladag ont embauché et formé assez de professionnels pour que les connaissances soient transmises en turc, explique M. Crabtree. « Ils partagent leur expertise avec les nouveaux venus sur le chantier. » M. Crabtree remarque que chaque nouvelle expansion de la mine se déroule plus facilement, car le personnel de la mine se perfectionne progressivement. La société s’engage à embaucher 80 pour cent de sa maind’œuvre dans les villages de la région. Au début de la mine, le recrutement était lent. « On est vraiment désavantagé quand on débarque quelque part », souligne M. Crabtree. « On croit qu’il suffit de mettre une annonce dans le journal et que tout le monde va y répondre, mais ça ne se passe pas ainsi. » Cependant, à mesure que la réputation de la mine grandissait, les gens ont commencé à arriver... et à rester. Selon M. Crabtree, Kisladag a le plus bas taux de roulement pour une entreprise de cette taille en Turquie. « Quand on recrute des gens sur place, ils passent le plus clair de leur temps dans leur communauté. C’est dans leur milieu de vie qu’ils sont le plus heureux. »

Rester à jour La direction de Kisladag a pris des mesures pour doter la mine de technologies utiles. En 2011, un logiciel de contrôle de niveau a été mis en place pour assurer que le terrain remis en état reçoit une quantité optimale de terre arable. Le logiciel, fabriqué par Topcon Positioning Systems, est installé sur le niveleur D9 de la mine. Kisladag utilise également un radar qui examine continuellement les parois de la fosse et envoie un signal d’alarme lorsqu’il y détecte un mouvement. « C’était la première fois que je voyais ce genre d’appareil », raconte M. Crabtree. « Cela nous a pris beaucoup de temps pour le dédouaner. Nous avons dû expliquer aux douaniers pourquoi nous en avions besoin. Je crois qu’ils pensaient que c’était un appareil militaire. » L’investissement réalisé par Eldorado dans la mine Kisladag semble rentable. En 2010, le total des charges décaissées de la mine se situait à 339 $ US/oz, ce qui est bien en deçà de la moyenne du secteur aurifère mondial. À l’échelle de la société, le prix de l’or s’est établi en moyenne à 1223 $ US/oz. Grâce aux nouveaux programmes de forage qui permettent d’accroître les ressources chaque année, tout semble favoriser la croissance de cette mine dans un avenir prévisible. ICM February 2012 | 69

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CONTENTS | CONTENU

PRELIMINARY PROGRAM

PROGRAMME PRÉLIMINAIRE MAY 6 TO 9 . 6 AU 9 MAI . 2012

Shaw Conference Centre ORGANIZING COMMITTEE | COMITÉ ORGANISATEUR

72

WELCOME BIENVENUE

73

PLENARY PLÉNIÈRE

73

SPONSORS COMMANDITAIRES

74

TECHNICAL PROGRAM PROGRAMME TECHNIQUE

81

WOMEN IN MINING FORUM FEMMES EN EXPLOITATION MINIERE

81

ROCK ENGINEERING SYMPOSIUM RockEng12

MANAGEMENT AND FINANCE DAY JOURNÉE DE GESTION ET FINANCE

82

M4S

Chris Hawkes

82

Danny Clark Douglas Bell

PROCUREMENT AND OPERATIONS CASE STUDIES APPROVISONNEMENT ET OPÉRATIONS: ÉTUDES DE CAS

83

SOCIAL PROGRAM PROGRAMME SOCIAL

Jim Carter

STUDENT PROGRAM PROGRAMME DES ÉTUDIANTS

84

GENERAL CHAIRS PRÉSIDENTS DU CONGRÈS

Jeff Boisvert

WORKSHOPS ATELIERS

85

Tim Joseph Chuck Edwards

WORKSHOPS ATELIERS

STUDENT PROGRAM PROGRAMME ÉTUDIANT

Hooman Askari-Nasab

86

FIELD TRIPS EXCURSIONS

M4S – THE SHOW ON MINES, METALS, MINERALS & MATERIALS LE SALON SUR LES MINES, MÉTAUX, MINÉRAUX ET MATÉRIAUX

87

GUEST PROGRAM PROGRAMME DES INVITÉS

88

CIM EXHIBITION SALON COMMERCIAL DE L’ICM

CIM PRESIDENT PRÉSIDENT DE L’ICM

Chuck Edwards CIM EXECUTIVE DIRECTOR DIRECTEUR EXÉCUTIF DE L’ICM

Jean Vavrek HONORARY CHAIR PRÉSIDENT HONORAIRE

SPONSORSHIP COMMANDITES

Jean Vavrek TECHNICAL PROGRAM PROGRAMME TECHNIQUE

Tim Joseph

FIELD TRIPS EXCURSIONS

Anne Marie Toutant

www.cim.org/edmonton2012

WELCOME TO EDMONTON

BIENVENUE À EDMONTON!

We look forward to greeting colleagues and friends in Edmonton this May for the CIM Conference & Exhibition, and together building the template for continued mining strength across Canada and around the world.

Nous accueillerons nos collègues et amis à Edmonton en mai prochain dans le cadre du Congrès et du Salon commercial de l’ICM pour continuer à assurer, ensemble, la croissance minière au Canada et partout dans le monde.

CIM Edmonton 2012 will build on the successes of previous conferences, with a lineup of the most relevant speakers and groundbreaking presentations, bringing the top minds in the industry together to swap ideas, share experiences, and focus on operational excellence across all facets of mining. The technical program addresses many of the greatest priorities on site at a mine operation, including environmental and social responsibility, safety, operational improvement and reliability, and mining of both hard and soft rock deposits. Many case studies will be included, providing opportunities to fully understand and learn from others’ experiences. Simultaneously, RockEng12 will host state-of-the-art rock engineering presentations, making this year’s conference the most in-depth look at the latest developments in mining.

Le Congrès 2012 de l’ICM mettra en vedette les conférenciers les plus appropriés et une multitude de présentations novatrices. Les sommités de l’industrie partageront des idées et expériences portant sur l’excellence opérationnelle dans tous les aspects de l’industrie minière. Le programme technique sera axé sur les grandes priorités de l’activité minière; soit la responsabilité environnementale et sociale, la sécurité, les améliorations opérationnelles, la fiabilité et l’exploitation des gisements de roche dure et tendre. Plusieurs études de cas y seront présentées. Simultanément, RockEng12 inclura des présentations de pointe sur la mécanique des roches, proposant une analyse approfondie des plus récents développements dans l’industrie minière.

Located right in the hub of the booming Albertan industry, CIM Edmonton 2012 offers all the elements of an ideal conference. A wealth of workshops on the weekend prior to the event days are offered at a nominal fee, and a variety of field trips following the event will tap into the proximity of worldclass operations. Book early – these are all first-come, first-served events! The CIM Exhibition continues to sell out well in advance because it is a foremost opportunity to make the connections necessary to drive design, purchasing and operational decisions. It is a must-attend show for every major player in the mining sector.

Organisé au cœur de l’industrie albertaine en plein essor, le Congrès de l’ICM 2012 à Edmonton combine tous les éléments de la formule idéale. Les multiples ateliers sont offerts à peu de frais et la variété d’excursions permettront de visiter les sites de classe internationale situés à proximité. Premiers arrivés, premiers servis! Le Salon de l’ICM affiche complet bien avant la tenue de l’événement, parce que c’est l’endroit par excellence pour contacter toutes les ressources nécessaires en matière de conception, d’achat et d’exploitation. Le Salon de l’ICM est indispensable aux principaux intervenants du secteur minier.

If you’re in Edmonton early, please join us at the M4S educational and interactive public show on mining, minerals, metals and materials. Everyone is welcome to explore the pavilions and learn a little more about the life cycle of mining and its role in our everyday lives. Outside the conference hotel will be an equipment exhibition right in the centre of the city for further exploration.

Arrivez à Edmonton plus tôt et visitez M4S, l’exposition éducative et interactive sur les mines, minéraux, métaux et matériaux. Tous les visiteurs sont invités à explorer les pavillons et à augmenter leurs connaissances à propos du cycle de vie minier et de son importance dans nos vies quotidiennes. En outre, une exposition d’équipements lourds sera présentée à Churchill Square, à l’extérieur.

The Social Program offers more opportunities to cement relationships with peers. Edmonton’s tradition of a Lobster Dinner to launch the conference in a grand style continues this year, and every subsequent night has excitement to offer.

General Co-Chairs | Coprésidents généraux

Please join us for CIM Edmonton 2012 – it is where the business of mining is happening!

Bienvenue au Congrès et au Salon commercial de l’ICM. Les mines, c’est à Edmonton que ça se passe! Tim Joseph

72 | CIM Magazine | Vol. 7, No. 1

Le programme social offre plusieurs occasions de consolider les relations avec les collègues. La tradition du banquet d’ouverture au homard se poursuit à Edmonton, cette année, suivi d’autres soirées tout aussi agréables.

Chuck Edwards

SPONSORS | COMMANDITAIRES

PLENARY | PLÉNIÈRE

(to date | à ce jour)

Our Past and Future Seasons – The Way We Were, The Way We Want to Be

PREMIER

Hear from industry and community leaders about our changing industry under the conference theme, “Minerals for All Seasons.” Speakers will describe how tackling past challenges and understanding new conditions guide and inspire our drive for future success. Topics will include global best practices in designing and delivering projects, ensuring industry-wide practices of consistent and quality leadership, global challenges in finding and developing qualified staff, and attracting and retaining new, non-traditional industry participants, and strategies for sustainable development.

GOLD

Moderator Mark Kelley, host of Connect with Mark Kelley, the nightly news talk program on CBC News Network, will lead a discussion with our panel of industry champions, followed by an open dialogue among panellists and the audience.

Photo: Normand Huberdeau / N. H. Photographes Ltée.

MONDAY, MAY 7 | 9am to 11:30

SILVER

COPPER

HOTELS| HÔTELS Please reserve your hotel room(s) directly and reference the CIM Conference & Exhibition to obtain the preferred group rate. Réservez vos chambres directement auprès des hôtels et citez CIM pour obtenir le tarif-groupe.

FRIENDS

THE WESTIN EDMONTON Toll-Free Reservations: 1-800-937-8461 Web: www.thewestinedmonton.com Standard Room: $224 per night plus taxes THE FAIRMONT HOTEL MACDONALD Toll-Free Reservations: 1-800-441-1414 Web: www.fairmont.com/macdonald Standard Room: $199 per night plus taxes

À LA CARTE

MARRIOTT COURTYARD Toll-Free Reservations: 1-866-441-7591 Web: www.marriott.com Standard: $189 per night plus taxes

www.cim.org/edmonton2012

February 2012 | 73

MAY 6 TO 9 . 6 AU 9 MAI . 2012

TECHNICAL PROGRAM PROGRAMME TECHNIQUE Operational Excellence Excellence dans les opérations The Technical Program is organized under five thematic streams to facilitate the conference experience. Participants may choose between Environment, Social Responsibility, Operations and Maintenance, Hard Rock Projects to Products, or Soft Rock Projects to Products, depending on their roles and interests. Sessions vary between traditional presentations by subject experts, to panel forums with leading personalities and key individuals to delve into the most relevant topics. All sessions will maintain the focus on operational excellence, with ideas, opportunities, solutions and case studies showcasing ways to advance performance in all aspects of the mine cycle, from early-stage projects through the whole mining process to mine closure. MONDAY • 13:30

ENVIRONMENT AND SOCIAL RESPONSIBILITY – JOINT SESSION Being a Good Neighbour: Environment and Social Responsibility Plenary Chairs: Janice M. Zinck, Manager, Processing and Mine Waste Management, CANMET - Mining and Mineral Sciences Laboratories and David J. Forrester, Principal Consultant, AECOM

From government to NGO to mining company: environmental and social responsibility under various contexts

SOFT ROCK PROSPECTS TO PRODUCTS World-Class Soft Rock Chair: Chuck Edwards, Director, Metallurgy, AMEC Americas Limited

An open discussion on trends shaping the world-wide soft rock industry, including emerging projects, technologies, and business drivers. This plenary extension will be in the format of a moderated discussion, where the members of the audience are the experts. Share your experiences and knowledge and swap ideas with leaders from the soft rock industry in an informal setting.

MONDAY • 15:30

Julie Gelfand, Rio Tinto Iron Ore Company of Canada

Mining and community development: from rhetoric to practice Suzette McFaul, Sirolli Institute Canada Ltd.

TBA Joanne Petrini, AECOM

OPERATIONS AND MAINTENANCE Integration of Systems, Automation and Technology in Surface Mining Chair: Timothy Skinner, President, Smart Systems Group

Converging mining automation and lean mining Laura Mottola, Flow Partners Inc. and Chris Warner, BHP Billiton Iron Ore

ENVIRONMENT AND SOCIAL RESPONSIBILITY – JOINT SESSION Being a Good Neighbour: Environment and Social Responsibility Plenary Chairs: Janice M. Zinck, Manager, Processing and Mine Waste Management, CANMET - Mining and Mineral Sciences Laboratories and David J. Forrester, Principal Consultant, AECOM

Construction: the last frontier for responsible mining Ian Thomson and Susan Joyce, On Common Ground Consultants Inc.

Best practices in sustainability reporting in global mining industry Andrew Gillam, AMEC Americas Limited

Open forum discussion

Implementation of integrated systems, automation and technology Mark Bartlett, Newmont Mining Corporation

OPERATIONS AND MAINTENANCE

Operator situation awareness? The importance and challenges of a mobile mining equipment unified operator interface

Integration of Systems, Automation and Technology in Surface Mining

Mica Endsley, SA Technologies, Inc.

HARD ROCK PROSPECTS TO PRODUCTS Canadian Hard Rock Stars

Chair: Timothy Skinner, President, Smart Systems Group

A new organization for mining technology standards Timothy Skinner, Smart Systems Group

Chair: Terence F. Bowles, President and CEO, Corporation de la Voie Maritime du Saint-Laurent

Open forum discussion

Highland Valley Copper long-term value creation

HARD ROCK PROSPECTS TO PRODUCTS

Dale Andres, Teck Resources Limited

Canadian Hard Rock Stars

Building a leading intermediate gold producer: the Osisko story

Chair: Terence F. Bowles, President and CEO, Corporation de la Voie Maritime du Saint-Laurent

Bryan Coates, Osisko Mining Corporation

TBA Cliffs Natural Resources 74 | CIM Magazine | Vol. 7, No. 1

Rare earths: from mine to clean tech Don Bubar, Avalon Rare Metals Inc.

www.cim.org/edmonton2012

CIM — THE COMMUNITY FOR LEADING INDUSTRY EXPERTISE

Operational Excellence: The Technical Program

MONDAY

ENVIRONMENT AM

PM

SOCIAL RESPONSIBILITY

TUESDAY PM

SOFT ROCK PROSPECTS TO PRODUCTS

Integration of Systems, Automation and Technology in Surface Mining

Canadian Hard Rock Stars

World-Class Soft Rock

Tim Skinner

Terry Bowles

PLENARY SESSION — Moderator: Mark Kelley, CBC journalist

Being a Good Neighbour: Environment and Social Responsibility Plenary Janice Zinck and David Forrester

AM

HARD ROCK PROSPECTS TO PRODUCTS

OPERATIONS AND MAINTENANCE

ENVIRONMENT

SOCIAL RESPONSIBILITY

OPERATIONS AND MAINTENANCE

HARD ROCK PROSPECTS TO PRODUCTS

Environmental Protection in the North

Water as a Human Right

Automation in Mine Operations

Iron Ore

Kenning Marchant

Qi Liu

Josh Marshall and Rob Hall

Clean Water: Making it Happen

Aboriginal Engagement

Tony Trollope and Ian Middleton

Kenning Marchant and Ryan Montpellier

Integrated Engineering and Environmental Approaches to Mine Materials Management

Mining in Unfamiliar Territory and Conflict Minerals

Dirk van Zyl, Alistair Kent and Mike Sudbury

The New Face of Mining

David Forrester and Janice Zinck

Chuck Edwards and Ryan Montpellier

WEDNESDAY

AM

Greg Lanz and Steve Thornton

Building the Checklist for Fleet Selection 2 Greg Lanz and Steve Thornton

Lube Management Ted Knight

Potash Projects Paul Labbe and Robert Carey

Making Assets Last Longer

Rare Earth Metals

Effective Energy

Ted Knight

Ian London

Glenn Lyle

Technologies for Increasing Uptime and Performance

Gold and Diamonds

Tom Shumka

Leading for Change John Thomas and Sean Fancey

Garth Kirkham and Pam Strand

Coal Challenges Peter Cain

SMART 'n Safe Chris Langmead

MANAGEMENT & FINANCE DAY

PROCUREMENT AND OPERATIONS CASE STUDIES

Building the Checklist for Fleet Selection

SOFT ROCK PROSPECTS TO PRODUCTS

Lee Nichols

Chris Twigge-Molecey

Environmental and Social Aspects of Mine Closure

Chuck Edwards

New Issues — Jane Spooner AM

De-risking Mining Projects — Larry Smith The Business Side of CSR — David Clarry

Tire Management Chris Brothen

PM

Panel Discussion: Finance and CSR Discussion — David Jennings

ALL PRESENTATIONS WILL BE IN ENGLISH

www.cim.org/edmonton2012

February 2012 | 75

MAY 6 TO 9 . 6 AU 9 MAI . 2012

Excellence dans les opérations : le programme technique

LUNDI

ENVIRONNEMENT

RESPONSABILITÉ SOCIALE

AVANTMIDI APRÈSMIDI

PLÉNIÈRE — Animateur : Mark Kelley, journaliste

Bon voisinage : Plénière sur l'environnement et la responsabilité sociale Janice Zinck et David Forrester

ENVIRONNEMENT

Protection environnementale dans le Nord Kenning Marchant AVANTMIDI

Eau pure : la réalisation

MARDI

Tony Trollope et Ian Middleton

Approches intégrées en ingénierie et environnement relatives à la gestion des matériaux miniers APRÈSMIDI

Dirk van Zyl, Alistair Kent et Mike Sudbury

Aspects environnementaux et sociaux de la fermeture d'une mine David Forrester et Janice Zinck

Intégration de systèmes, automatisation et technologie dans les mines à ciel ouvert

Champions des roches dures canadiennes

Roches tendres de classe internationale

Tim Skinner

Terry Bowles

Chuck Edwards

MERCREDI

Élaboration de la liste de vérification pour la sélection d'une flotte

OPÉRATIONS ET ENTRETIEN

Le droit à l'eau

Automatisation des opérations minières

Qi Liu

Engagement des autochtones Kenning Marchant et Ryan Montpellier

Activité minière en territoire inconnu et minerais stratégiques Chris Twigge-Molecey

Le nouveau visage de l'exploitation minière Chuck Edwards et Ryan Montpellier

Gestion des lubrifiants Ted Knight

Greg Lanz et Steve Thornton

CONSULTEZ ET TERN NOTRE SITE IN ILS DU TA POUR LES DÉ MINAIRE PRÉLI PROGRAMME ÇAIS EN FRAN

Minerai de fer

Projets de potasse

Lee Nichols

Paul Labbe et Robert Carey

Faire durer les actifs plus longtemps

Métaux terrestres rares

Énergie efficace

Ted Knight

Ian London

Josh Marshall et Rob Hall

Technologies pour augmenter le temps d'utilisation et la performance

Or et diamants Garth Kirkham et Pam Strand

Glenn Lyle

Enjeux liés au charbon Peter Cain

Tom Shumka

Diriger le changement John Thomas et Sean Fancey

Sécurité par SMART Chris Langmead

JOURNÉE GESTION ET FINANCES AVANTMIDI

Greg Lanz et Steve Thornton

Élaboration de la liste de vérification pour la sélection d'une flotte 2

PERSPECTIVES DE DEPERSPECTIVES PRODUCTION PRODUCTION DES DES ROCHES ROCHES DURES TENDRES

RESPONSABILITÉ SOCIALE

ÉTUDES DE CAS EN APPROVISIONNEMENT ET OPÉRATIONS

AVANTMIDI

PERSPECTIVES DE DEPERSPECTIVES PRODUCTION PRODUCTION DES DES ROCHES ROCHES DURES TENDRES

OPÉRATIONS ET ENTRETIEN

Nouveaux enjeux — Jane Spooner Réduction des risques liés aux projets miniers — Larry Smith L'aspect économique de la RSE — David Clarry

Gestion des pneus Chris Brothen

APRÈSMIDI

Discussion en groupe : Finances et RSE — David Jennings LES PRÉSENTATIONS SERONT OFFERTES EN ANGLAIS.

www.cim.org/edmonton2012

CIM — THE COMMUNITY FOR LEADING INDUSTRY EXPERTISE

Ghana: new view of gold placer mining C. Kerr, A. Kuczera, B.B. MacEachern, and J.L. Parenteau, University of Alberta; Tim Grain Joseph, JPi Geo-Industry Engineering Consultants

Open forum discussion

SOFT ROCK PROJECTS TO PRODUCTS World-Class Soft Rock Chair: Chuck Edwards, Director, Metallurgy, AMEC Americas Limited

Ground control study for a potash mine Joey Simon, Rob Loyns, Scott McMillen, Trevor Tucker, University of Saskatchewan

Photo: MiHR

Continuing the open discussion on trends shaping the world-wide soft rock industry, including emerging projects, technologies, and business drivers. This plenary extension will be in the format of a moderated discussion, where the members of the audience are the experts. Share your experiences and knowledge and swap ideas with leaders from the soft rock industry in an informal setting.

TUESDAY • 8:30

ENVIRONMENT Environmental Protection in the North

OPERATIONS AND MAINTENANCE Automation in Mine Operations

Chair: Kenning Marchant, The Marchant Practice

Chairs: Robert Hall, Assistant Professor, University of British Columbia and Joshua A. Marshall, Assistant Professor, Queen’s University

Navigating unfamiliar territory: the Northern environmental assessment process

Technology doesn’t solve problems, people do

Julie Ross, Sarah Gagne and Lasha Young, Golder Associates Ltd

David Mark Richards, Teck Metals Ltd.

Operational monitoring requirements at Meadowbank

Re-thinking underground hard rock mining

M. Stéphane Robert, Agnico-Eagle Mines Limited

Alex Henderson, Vale

Raglan Mine: the changing landscape of environmental and social issues in Nunavik

High-availability GPS-based positioning by local sensor augmentation

Grace Barrasso, Xstrata Nickel – Raglan Mine

Jamie Lavigne and Sandy Pyke, Peck Tech Consulting Ltd. and Andrew Scott, Barrick Gold Corporation

Evolution of thermal regime in permafrost mines due to backfill placement Farzaan Abbasy, Ferri Hassani and Seyed Ali Ghoreishi Madiseh, McGill University

Mongolia: Yellow Canary Coal – community and environment C.P. Drury, D.L. Gratz and T. Kernahan, University of Alberta and Tim Grain Joseph, JPi GeoIndustry Engineering Consultants

An interactive simulation model of human drivers to study autonomous haulage trucks Juliana Parreira and John Meech, University of British Columbia

Simulation and analysis of traffic flow in narrow underground mine ramps David Haviland, Queen’s University

SOCIAL RESPONSIBILITY Water as a Human Right

HARD ROCK PROSPECTS TO PRODUCTS

Chair: Qi Liu, Professor, University of Alberta

Iron Ore

Water as a human right: considerations for sustainable management of water resources in the extractive industry

Chair: Lee C. Nichols, President, Terracon Geotechnique Ltd.

Roxanne Scott and Natasha Khamis, Golder Associates Ltd.

Dean Journeaux, New Millennium Iron

Water treatment plant for remote village in Colombia

DSO project update

David Manz

Rajesh Sharma, Tata Steel Minerals Canada Limited

The human right to water: what is new and what is not; what is important and what is not

The Clear Hills oolitic iron and vanadium deposit of Alberta

David Brooks, International Institute for Sustainable Development

Water is a social issue Ian Thomson and Susan Joyce, On Common Ground Consultants Inc.

New Millennium Iron - rising to new heights

Barry Caplan, Andrew Reader and Liam Murphy, Ironstone Resources Ltd.

Optimizing the performance of the iron recovery circuit at Cliffs Natural Resources Bloom Lake iron mine Daniel Deschenes, Laval University and David Cataford and François Lavoie, Cliffs Natural Resources

Brazil: unique banded iron formation mining B.L. Buye, S.E. Frerichs, B.M. Stewart and T.D. Thornton, University of Alberta and Tim Grain Joseph, JPi Geo-Industry Engineering Consultants

www.cim.org/edmonton2012

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SOFT ROCK PROSPECTS TO PRODUCTS Potash Projects Chairs: A. Paul Labbé, WorleyParsons and Robert Carey, Owner and President, RJC Industrial Design Ltd.

Computer assisted scheduling in underground potash operations: “when the slide rule just doesn’t cut it anymore”

Papua New Guinea: clean water technologies and practices R. Wallace, J. Tames, K. Cebula and J. Del Mastro, University of Alberta and Tim Grain Joseph, JPi Geo-Industry Engineering Consultants

SOCIAL RESPONSIBILITY Aboriginal Engagement

Sebastian Van Der Hoek, Runge Mining

Chairs: Ryan Montpellier, Executive Director, MiHR Council and Kenning Marchant, The Marchant Practice

Large span structural steel storage building for the potash industry

Of coal and caribou

John Boote, Burnco Mfg Inc

Optimizing project execution: beyond critical path Ravi Maithel, Clevor Technologies Inc.

Risk-based inspection program for mechanical integrity: progressing from reactive to proactive asset integrity program William Minter, Pinnacle AIS and Lorne Huyghebaert, Mosaic Potash

Kenning Marchant, The Marchant Practice

Mining essentials: a work readiness training program for Aboriginal peoples Melanie Sturk, MiHR Council

A brief history of Aboriginal employment and business development creation in northern Saskatchewan Sean Junor, Cameco Corporation

Aboriginal engagement practice Don Richardson, AECOM

OPERATIONS AND MAINTENANCE Making Assets Last Longer Chair: Charles E. (Ted) Knight, Regional Manager, Risk & Liability, Hatch Ltd.

Implementing sustainable uptime & operational improvements through defect elimination and gateway asset strategies Christopher Biel, Hatch Ltd.

Real time tkph to increase tire performance Tim Grain Joseph, JPi Geo-Industry Engineering Consultants

Leveraging real time monitoring to extend heavy mobile equipment life and reduce costs Photo: MiHR

David Fisk, Matrikon Inc.

The integration of maintenance processes and technology to enhance overall equipment effectiveness Glenn Sorokan and Raj Saini, SKF Canada Ltd.

HARD ROCK PROSPECTS TO PRODUCTS TUESDAY • 10:30

ENVIRONMENT Clean Water: Making it Happen Chairs: Antony Trollope, Operations Manager, Schlumberger Water Services and Ian Middleton, Engineer, Technical Development, Newalta Corporation Inc.

Water analytics for the digital mine site Jennifer Hurley, Schlumberger Water Services

Overcoming challenges in groundwater characterization & monitoring in permafrost regions William Black, Schlumberger Water Services, Cameron Clayton, Golder Associates; Daniel Mackie, SRK Consultants and Gerry Papini, Rescan Environmental

Options for effective sulphate removal from mine effluents

Rare Earth Metals Chair: Ian London, Market Development & Energy Advisor, Avalon Rare Metals

Canada Lithium to become major supplier to global lithium-ion battery market Peter Secker, Canada Lithium Corp.

Update on Avalon Rare Metals: Nechalacho rare metal deposit, Northwest Territories: from geology to mining, beneficiation and hydrometallurgy William Mercer, Avalon Rare Metals Inc.

Strange Lake: an overview of geology, mineralization and alteration of B Zone rare earth deposit, Northeastern Quebec Patrick Collins, Quest Rare Minerals Ltd.

Pegmatite- and granite- hosted U-Th-REE +/- Y-Nb mineralization in northern Saskatchewan: a review

Janice M. Zinck; CANMET - Mining and Mineral Sciences Laboratories

Michelle Anne McKeough, University of New Brunswick

Gunnar pit dewatering

Applications of rare earth elements and nanotechnology in medicine

Sarah Naden Parkinson, Natasha Dreaver, Matt Jaska, Calvin Lozinski-Kumpula and Patrick McCleary, University of Saskatchewan

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Joshua Rosen and Frank X Gu, University of Waterloo

www.cim.org/edmonton2012

CIM — THE COMMUNITY FOR LEADING INDUSTRY EXPERTISE

SOFT ROCK PROSPECTS TO PRODUCTS Effective Energy Chair: Glenn Lyle, R & D Program Director, Centre for Excellence in Mining Innovation

An overview of the Canadian oil sands Industry Scott Braithwaite, Norwest Corporation

Towards sector-wide, step-change reductions in energy consumption for the Canadian mining industry Dean Millar, Monica Carvalho, Michelle Levesque, Kim Trapani and Sidney Schafrik, Laurentian University/MIRARCO

Electric loading and haulage equipment in deep mines: real alternative or distant future? CBR – innovation in accessing stranded bitumen Howard Keele, CBRINC

Photo: MiHR

Jacek (Jack) Paraszczak and Kostas Fytas, Université Laval

TUESDAY • 13:30

ENVIRONMENT Integrated Engineering and Environmental Approaches to Mine Materials Management

Advanced NDT technologies for carbon steel pipe inspection in hazardous environment

Chairs: Alistair Kent, Manager, Technical Services, Selwyn Chihong Mining Ltd., Michael Sudbury, Director, Michael P. Sudbury Consulting Services Inc. and Dirk Van Zyl, Professor, University of British Columbia

Olivier Marcotte, Nucleom

Panellists: Harvey Macleod, Vice-President Mining, Klohn Crippen Berger Les Sawatsky, Principal, Golder Associates Tim Bekhuys, Manager, Environment and Permitting, New Gold Robin Johnstone, General Manager, Environment, Community and Aboriginal Affairs, Teck Coal Alan Fair, Executive Director, Oil Sand Tailings Consortium (OSTC) Michael Davies, Vice-President, Mining, and Principal, AMEC Environment and Infrastructure

SOCIAL RESPONSIBILITY Mining in Unfamiliar Territory and Conflict Minerals Chair: Chris Twigge-Molecey, Global Managing Director, Hatch Associates Ltd.

Pinion and bull gear audit Tom Shumka, Global Inspections-NDT, Inc. and Mathieu Beauchesne, XL NDE Inc.

Kidd Mine pastefill distribution system pipeline wear - case study Maureen McGuinness, McGill University

Tricon drill bit wear monitoring Alireza Hatami, Peter Radziszewski and Ferri Hassani, McGill University

HARD ROCK PROSPECTS TO PRODUCTS Gold and Diamonds Chairs: Garth Kirkham, President, Kirkham Geosytems Ltd. and Pam Strand, President, Shear Diamonds

Advancing the Coffee gold project in 2011, White Gold District, West-Central Yukon Rob Carpenter, Kaminak Gold Corporation

Mining in conflict areas: the case of the DRC

Converting mineral resources to producing mines - a history of mine development at Barrick Gold Corporation

Timothy Reid, Independent Consultant

John W. Frostiak, Barrick Gold Corporation

Onca Puma: remote, challenging, successful

Renard diamond project: building Quebec’s first diamond mine from discovery through feasibility

James Marzocca and Frank Porretta, Hatch Associates Ltd.

To buy or not to buy? Richard O. Burt, Gravita Inc.

Taming the resource curse: implementing the ICGLR certification mechanism for conflict prone minerals Kady Seguin, Partnership Africa Canada

John Armstrong, Stornoway Diamond Corporation

Breaking new ground in Eritrea Anthony Finch, Snowden Mining Industry Consultants

SOFT ROCK PROSPECTS TO PRODUCTS Coal Challenges

OPERATIONS AND MAINTENANCE

Chair: Peter Cain, Associated Geosciences Ltd.

Technologies for Increasing Uptime and Performance

Canadian coal industry: opportunities and challenges

Chair: Tom Shumka, President, Global Inspections-NDT, Inc.

Ann Marie Hann, Coal Association of Canada

Optimizing operational costs with lightweight pendant lines

Coalspur’s Vista Coal Project, developing one of the largest export thermal coal mines in North America

Rinze Jan van der Schuit and Wilco van Zonneveld, FibreMax BV

David R. Leslie and Gene Wusaty, Coalspur Mines Ltd.

www.cim.org/edmonton2012

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Sub-aerial, sub-aqueous disposal of potentially acid generating (PAG) waste at an underground coal mine Nick Williams, Hillsborough Resources Ltd. / Quinsam Coal

What next in underground coal mine safety? A personal view Peter Cain, Head of Mining Engineer, Associated Geosciences Ltd.

TUESDAY • 15:30

ENVIRONMENT

Uranium surge-skills shortage: who will staff the next generation of mines? Peter Waggitt, Northern Territory Government

Working resource or wasted talent: are women and mining not meant to be? Catharine Shaw, Business Development Manager, Mining, Canada, Golder Associates Ltd.

Making the grade: human resources challenges and opportunities for knowledge workers in Canadian mining Martha Roberts, MiHR

Environmental and Social Aspects of Mine Closure

OPERATIONS AND MAINTENANCE

Chairs: Janice M. Zinck, Manager, Processing and Mine Waste Management, CANMET - Mining and Mineral Sciences Laboratories and David J. Forrester, Principal Consultant, AECOM

Chairs: Sean Fancey, Manager, Sherritt Coal and John Thomas, Mobile Maintenance Manager, Syncrude Canada Limited

Sustainable considerations for mining transactions: expanding the scope of due diligence with a view towards the future

Compliance vs. engagement: an effective coaching-based leadership development model

Leslie Nicholas, Environmental Resources Management

Adam Tonnos, Corporate Symphony International

Mine closure and alternative risk transfer: a possible solution for small and medium mining companies

Risk tolerance and safety leadership

Michael Peterson, Mine Closure Services LLP and Paul Fitzgerald, RM Solutions

Leading for Change

Murray Jamieson, Syncrude Canada Ltd.

What exceptional leaders do to create positive safety cultures

Use of phytotechnologies in the closure plan for a graphite mine

Laura Methot, CLG Canada, UCL

James Higgins, Stantec Consulting, Tom Myatt, Ontario Graphite, and Al Mattes, Nature Works Remediation

Leading change for improved asset management - The quiet evolution

Opportunities for establishment of Jack pine ecosites on the oil sands reclaimed landscape using soil sulphur oxidizing bacteria and amendments of elemental sulphur Lyriam Marques, Leila Oosterbroek, Charles Ehman and Harling Caro-riano, HydroQual Laboratories, Mel Zwierink and Lisa J May, Golder Associates, and Bruce Anderson, Suncor Energy Oil Sands

Remediation of the Gowrie Group of shallow abandoned mine openings David J. Forrester, Cory MacPhee and Candace Harding, AECOM, Joseph MacPhee and Belinda Campbell, PWCSC, and Donnie Peckham, ECBC

Ronald Doucet, RYKE Reliability Inc.

HARD ROCK PROSPECTS TO PRODUCTS AND SOFT ROCK PROSPECTS TO PRODUCTS – JOINT SESSION SMART ‘n Safe Chair: Christopher Langmead, Manager, Suncor Energy Inc.

TBA Lucas van Latum, Modular Mining Systems, Inc.

Inflation pressure in relation to load distribution within a dual pair of haul truck tires Tom Stephenson, Tyre Innovations Group

Reducing vehicle incidents in mining operations due to poor line-of-sight of mobile equipment Danielle Piercey, Queen’s University

Whole body vibration

Photo: MiHR

Chris Pichurski, University of Alberta and Tim Grain Joseph, JPi Geo-Industry Engineering Consultants

CIM JOB FAIR With a growing need for skilled workers, the mining industry is looking to hire. Whether you want to embark on a new career or grow your existing skills, the CIM Job Fair is a must-attend event.

SOCIAL RESPONSIBILITY The New Face of Mining Chairs: Chuck Edwards, Director, Metallurgy, AMEC Americas Limited and Ryan Montpellier, Executive Director, MiHR Council

Workforce demographics and future project resource management David Myers, AMEC Americas Limited

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BHP Billiton • Cameco Corporation • Detour Gold Corporation Goldcorp • Imperial Oil Resources Limited (Kearl) Ledcor Industries Inc. • Quadra FNX Mining Ltd. Teck Resources Ltd. • The Mosaic Company • Vale

www.cim.org/edmonton2012

CIM — THE COMMUNITY FOR LEADING INDUSTRY EXPERTISE

MANAGEMENT AND FINANCE DAY | JOURNÉE DE GESTION ET FINANCE WEDNESDAY, MAY 9 Photo: Normand Huberdeau / N. H. Photographes Ltée.

The 4th annual Management and Finance Day is organized by the CIM Management and Economics Society. MES has pulled together a lineup of expert speakers to share timely information and lead discussions around key topics driving the industry, including prices, a global growth outlook, the role of the U.S. and Europe in global markets, risk management and shareholder value, and the business side of CSR and responsible mining. Conference delegates may attend Management & Finance Day as part of their CIM Edmonton 2012 experience, or for those interested, one-day registration is available. TUESDAY, MAY 8

INTERACTIVE PLENARY

8:00 8:20

WOMEN IN MINING FORUM

New issues

Networking Opening Remarks

Chair: Jane Spooner, Vice-President, Micon International Limited

PLÉNIÈRE INTERACTIVE

8:30

FEMMES EN EXPLOITATION MINIERE

9:00 9:30

Interactive plenary 15:00 to 17:00 Reception 17:00 to 19:00

De-risking mining projects

The 6th annual CIM Women in Mining Forum is a showcase plenary-style event for Women in Mining Canada and its affiliated local branches. Mining companies are strategically focusing on recruiting and retaining a highly competent workforce. Human resources policies that provide women and future generations of mining professionals with career and family balance are being multiplied, encouraging a sustainable female workforce in mining.

www.cim.org/edmonton2012

Photo: Normand Huberdeau / N. H. Photographes Ltée.

This edition of the Forum presents a moderated interactive plenary where five leading women will share human resources success stories. Panellists will share their experiences and best practices as they invite delegates in the room to do the same. CIM is proud to welcome Leanne Hall, vice-president human resources, Noront Resources Ltd., as moderator at this interactive plenary. Leanne is a true leader in human resources issues and opportunities as they relate to our industry and women in mining. She is vibrant, outgoing and is sure to inspire.

Metal Prices, currencies and global growth outlook 2012–13 Patricia Mohr, Scotia Capital So Europe and U.S. still matter to the commodity market? David Davidson, Paradigm Capital BRIC economies and the minerals industry Mauro Chiesa, Independent Advisor

Chair: Larry Smith, Senior Manager of Project Evaluations & Strategic Analysis, Barrick Gold Corporation

10:30 The capital squeeze – eroding shareholder value at the starting gate Chris Gypton, Hecla Limited 11:00 Do you really understand the risks to your project investment? Chris Twigge-Molecey, Hatch Associates 11:30 Legal de-risking of mining projects Fred Pletcher, Bordon Ladner Gervais 12:00 Luncheon & Networking – CIM Conference Closing Lunch

The business side of CSR Chair: David Clarry, Vice-President, Corporate Social Responsibility, HudBay Minerals Inc.

14:00 Improving mining projects with the IFC Performance Standards Jenifer Hill, Micon International Limited 14:30 Towards responsible mining: the case for local sourcing and procurement Monica Ospina, O Trade & Market Access / Dominic Channer, Kinross

Panel session: Finance and CSR discussion Moderator: David Jennings, Senior Vice-President, Mining Practice, Marsh Canada

15:30 Panel and audience discussion 16:30 Wrap-up & Management & Finance Day 2013, Toronto Jane Spooner, Micon International Limited

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Photo: Normand Huberdeau / N. H. Photographes Ltée.

PROCUREMENT AND OPERATIONS CASE STUDIES | APPROVISIONNEMENT ET OPÉRATIONS : ÉTUDES DE CAS

MAY 3 TO 5

M4S - MINING 4 SOCIETY The educational public show on mining, minerals, metals and materials Le salon éducatif sur les mines, minéraux, métaux et matériaux

Procurement and operations management and staff will participate in this interactive symposium on the tools, products and equipment used on site. Leading manufacturers and suppliers will provide expertise on emerging technologies and processes to follow to ensure you get the most out of your equipment, while mine operation case studies will examine the effectiveness of certain solutions. This symposium is not a venue for sales pitches, but rather a forum for exchange of the latest ideas, and to provide helpful guidance on product, equipment and tool selection and management.

WEDNESDAY, MAY 9 Chairs:

8:30

Now in its seventh year of educating the general public about mining and its impact on our daily lives, this free interactive exhibition reflects the scope of the industry: M4S (the 4 Ms stand for Mining, Minerals, Metals and Materials). Together, we can truly demonstrate the positive impact of our sector on everyday life.

M4S Edmonton will feature the following themed interactive pavilions: • Exploration • Mining • Processing • Sustainability • Products & Fabrication • Education • Health & Safety Teachers and Students: Thursday and Friday, May 3 and 4 | 10:00 to 15:00 General Public: Saturday, May 5 | 10:00 to 16:00

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Building the Checklist for Fleet Selection 1 Three leading OEM’s will offer frank suggestions on strategies for purchasing the most effective fleet for a mine operation. Get advice from the experts! Learn the questions you should ask, the details to consider, and the top things to avoid for improving your fleet procurement strategy. Komatsu, Caterpillar and P&H Minepro have committed to be part of the conversation.

CIM’s highly acclaimed M4S show is the event where people come to learn about the wide range of exciting careers in this industry. By highlighting the abundance of career opportunities and dispelling the myths, we are helping to secure a robust future for the industry.

Last year’s show attracted over 6,000 visitors, almost 85 per cent of whom were students between 10 and 16 years of age. Feedback from both attendees and participants has been consistently and enthusiastically positive. Exhibiting in M4S is free and gives industry leaders an opportunity to better position themselves.

Greg Lanz, Manager, Sales and Marketing, Modular Mining Systems Inc., Steve Thornton, Equipment Manager, Kearl Project, ExxonMobil, Charles E. (Ted) Knight, Regional Manager, Risk & Liability, Hatch Ltd., Chris Brothen, Manager of International Development & Sales, Kal Tire

Lubrication Management Lubrications can add up to a hefty part of the operating costs on a mine site, so strategies to improve lubrication management and get the best mileage from your products are smart ideas for the savvy operator. If you set up the right lube management strategy, not only will it positively impact the bottom line, but the whole procurement and inventory process can be simplified, meaning a lot less headaches all around. A variety of experts, from lubrication suppliers, consultants and mine operations will share case studies and emerging trends.

10:30

Building the Checklist for Fleet Selection 2 Following up on the previous discussions in Building the Checklist for Fleet Selection 1, three mine site fleet selection case studies will be shared. Lessons learned will be applicable for future fleet selection processes.

Tire Management Centred on OTR tire use in mine haulage, this session allows manufacturers an opportunity to discuss new designs and technology shifts in the present day and future products. In addition, some mining operations will discuss their strategies for enhanced road design and maintenance procedures that have proven successful in increasing tire life. The discussions will also include tire maintenance and monitoring, remote and conventional, to demonstrate how the combined use of proper maintenance procedures, coupled with tire monitoring technology, can improve tire life.

www.cim.org/edmonton2012

Photos: Normand Huberdeau / N. H. Photographes Ltée.

SOCIAL PROGRAM PROGRAMME SOCIAL AN ARRAY OF SOCIAL ACTIVITIES HAS BEEN PLANNED THROUGHOUT THE CONFERENCE TO MAXIMIZE YOUR NETWORKING OPPORTUNITIES. RESERVE YOUR TICKETS EARLY OR YOU’LL MISS OUT ON ALL THE EXCITEMENT. SATURDAY, MAY 5

MONDAY, MAY 7

EDMONTON 2012 LOBSTER DINNER

CIM AWARDS GALA

Tie-on a bib for some succulent morsels and enjoy the show by the Richard Eaton singers and Shumka Ukranian dancers as they share some of the local talent and culture. Then enjoy the talents of local artists while greeting friends and swapping stories. Time: 18:00 to late | Location: Fort Edmonton | Cost: $75

The CIM Awards Gala is the annual celebration of the true leaders of the Canadian mining industry. Sponsored by Caterpillar and its Canadian Dealers, the evening will be emceed by Fred Keating. This year’s Gala will be more exciting than ever, with sizzling graphics and greater participation during the awards presentations. The star performance will feature Canadian legend Tom Cochrane and Red Rider, promising to ride life’s highway all night long! Time: 18:00 (reception); 19:00 (dinner) | Location: Shaw Conference Centre, Hall D | Cost: $175

SUNDAY, MAY 6

The luncheon is the perfect opportunity for students to meet industry leaders and establish indispensable contacts. Sponsored by Rio Tinto Iron Ore Company of Canada (IOC), IOC vice-president of operations Mark Rodgers will provide a keynote presentation. Time: 12:00 to 14:00 | Cost: Included with the student registration fee

TUESDAY, MAY 8 STUDENT-INDUSTRY LUNCHEON

CIM SURFACE MINING RECEPTION

Mix and mingle at the CIM Surface Mining Society Welcome Reception. There’s no place like Edmonton for a gathering of surface miners – and everyone loves to share a drink, some food and a lot of laughter! Executive Chef Dave Omar from the Edmonton Art Gallery will design “mining foods” to stimulate the palate – and perhaps the conversation! Join the fun and enjoy a new twist on the term, “yellowcake!” Time: 14:00 to 16:00 | Location: Edmonton City Hall | Cost: Free OPENING RECEPTION

This prime networking event is sponsored by SMS/Komatsu. The Opening Reception of the CIM Conference & Exhibition brings all participants together for an evening of live entertainment, guest speakers and the tasty treats of a buffet on the exhibition floor. Time: 17:00 to 20:00 | Location: CIM Exhibition | Cost: Included in the registration fee

WOMEN IN MINING RECEPTION

A reception will follow the Women in Mining Forum, providing a valuable networking opportunity for young women in the industry to meet the panellists and make contacts with peers from across Canada. Time: 17:00 to 19:00 | Cost: $25 VIP RECEPTION

Senior industry leaders and invited guests will gather for a high-powered networking session. Time: 17:00 to 19:00 | By invitation only P&H RECEPTION AND DANCE

All conference participants will gather at the P&H Reception and Dance for a night of dancing to live music, grazing a delectable buffet and partying late into the night at the mining shindig of the year. Time: 20:00 to midnight | Location: Shaw Conference Centre, Hall D | Cost: Free

WEDNESDAY, MAY 9 MANAGEMENT & FINANCE DAY CLOSING LUNCHEON

The final event of CIM Edmonton 2012: join fellow participants for a satisfying lunch while listening to a keynote speaker. Participants registered for the one-day Management & Finance Day will have this lunch included in their registration. Time:12:00 to 14:00 | Location: Shaw Conference Centre | Cost: $75 CIM NETWORKING OPPORTUNITIES

Lunch and cocktail receptions in the CIM Exhibition: Monday and Tuesday, May 7 and 8, 12:00 to 14:00 and 15:30 to 17:00. Lunch and one drink ticket are included with the delegate registration fee. February 2012 | 83

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WORKSHOPS | ATELIERS STANDARDS OF DISCLOSURE FOR MINERAL PROJECTS – NI 43-101 AND OTHER RULES YOU SHOULD KNOW This workshop is a two-day course on the disclosure standards under the new rules of NI 43-101, including case studies on good and bad disclosure practices.

Photo: Normand Huberdeau / N. H. Photographes Ltée.

Discussion will cover reporting standards in other mining jurisdictions (USA, UK, Australia, South Africa) and reporting codes used in those jurisdictions; the expected content of Preliminary Economic Assessments, Preliminary Feasibility Studies, and Feasibility Studies that meet the definitions of those terms under NI 43-101; and a review of other Canadian securities regulatory requirements for mining technical disclosure including TSX and TSX-V policies and NI 51-102 Continuous Disclosure Obligations, with specific reference to forward-looking information on mineral projects. Facilitators: Greg Gosson, Technical Director for Geology and Geostatistics at AMEC and Stella Searston, Principal Geologist with AMEC | Date: Saturday, May 5 and Sunday, May 6 | Time: 8:30 to 16:30

2012 SMART UNIVERSITY OF ALBERTA LEARNING SEMINAR: LOW-HANGING FRUIT – Simple, Achievable, Safe, Operational and Maintenance Practices in Action The workshop is a mixture of operational and maintenance case studies from the surface mining industry and its OEMs that highlight simple lowhanging fruit solutions to improve safety and lead to more effective working practices in operations. Over this one-day forum, nine scenarios will be highlighted that show easy-to-put-into-practice solutions to common surface mining issues. The day will wind up with a one-hour open forum discussion where the audience has the opportunity to add their own perspectives, practices and solutions to issues in a moderated setting. Facilitators: SMART members via Tim Joseph, President and Principal Engineer, JPi Geo-Industry Engineering Consultants; Gord Winkel, Engineering Risk Management Instructor, Chemical & Materials Engineering, University of Alberta; and Steve Thornton, Equipment Manager, Kearl Project, ExxonMobil | Date: Saturday, May 5 | Time: 8:30 to 16:00

TECHNIQUES FOR PREDICTING THE PERFORMANCE OF OIL SANDS TAILINGS DEPOSITION The focus of the workshop will be directed towards the de-watering of fluid fine tailings and the deposition of thickened tailings. The purpose of the workshop will be to describe the mechanisms and outline the principles of environmental de-watering of tailings by evaporative drying, drainage, freeze-thaw and consolidation. Desiccation and its potential contribution to oil sands tailings densification and how to maximize and avoid “threats” to its utility will be covered. Desiccation, drainage, and consolidation, and how they must work together will be illustrated. Facilitators: G. Ward Wilson, Professor, Department of Civil and Environmental Engineering, University of Alberta and Paul Simms, Associate Professor in the Department of Civil and Environmental Engineering, Carleton University | Date: Sunday, May 6 | Time: 9:00 to 16:00 84 | CIM Magazine | Vol. 7, No. 1

BUILDING RELATIONSHIPS – STRENGTHENING BONDS BEYOND THE AGREEMENTS The workshop will be hosted by Learning Together Inc., an Aboriginal grassroots mining association. Using the case study model that Learning Together has successfully utilized and that has become its hallmark, we will be showcasing three case studies from across Canada. The case studies will have presenters from both industry and Aboriginal communities where the focus of the presentations will be on how they have built solid working relationships, thereby strengthening the bonds beyond the agreements. Additionally, you will hear from Aboriginal presenters that will discuss Aboriginal perspectives on relationship building. Facilitator: Ben Bradshaw, Associate Professor of Geography, University of Guelph | Date: Sunday, May 6 | Time: 8:30 to 16:30

CSR TRENDS IN THE EXTRACTIVE INDUSTRIES: A Discussion on Transparency, Scarcity and the Public Perception of the Resource Sector This full-day workshop will provide you with an in-depth understanding of the growing CSR challenges that resource companies are facing in the areas of (1) extractive industries transparency, (2) the influence of the media and NGOs on extractive industries, and (3) scarcity issues in the mining sector. Through a series of discussions between industry, government, community, legal and business leaders, facilitated by PwC, we will address the following key topics: • Initiatives to increase transparency on payments made by resource companies to foreign governments; • Leading practices in adopting and enforcing anticorruption policies; • Stakeholder influence on mining projects; • The media’s role in public perception of the mining sector; • Metals and minerals scarcity in the manufacturing sector, labour shortages in the mining sector and economic impact of the mining industry. Facilitator: PricewaterhouseCoopers | Date: Sunday, May 6 | Time: 9:00 to 17:00

www.cim.org/edmonton2012

This customized workshop by Natural Resources Canada (NRCan), Office of Energy Efficiency, will teach you all about energy management planning, spotting the energy savings opportunities, energy monitoring and energy efficiency financing. Learn about successes in energy management, key success factors and high-level energy analysis. Assess organizational proficiencies for effective dayto-day energy management. In essence, identify the next steps towards making energy management day-to-day business. Facilitator: Robert Greenwald, Principal and President, Prism Engineering | Date: Sunday, May 6 | Time: 8:30 to 16:30

MINING 101 – AN INTRODUCTION TO MINING AND MINERAL PROCESSING This course is an introduction to mining and mineral processing using basic concepts and lots of examples. The aim is to provide a basic understanding of mining and mineral processing, mine waste disposal and the industry with a minimum of technical jargon. It consists of six parts: • Geological concepts • Mining methods • Mineral processing and refining • Mine waste management • Mining and money • A future of mining Facilitator: Scott Dunbar, Professor, Mining Engineering, University of British Columbia | Date: Sunday, May 6 | Time: 8:00 to 16:00

TOWARDS SUSTAINABLE MINING Towards Sustainable Mining (TSM) was developed by The Mining Association of Canada (MAC) to improve the industry’s performance by aligning its actions with the priorities and values of Canadians. The TSM Initiative is built around a series of performance indicators in the areas of tailings management, energy use and greenhouse gas emissions management, Aboriginal and community outreach, tailings management, biodiversity conservation management, and safety and health. This workshop will provide an overview of: • The Towards Sustainable Mining Initiative • The TSM assessment protocols • The TSM external verification system

Photo: Normand Huberdeau / N. H. Photographes Ltée.

DOLLARS TO $ENSE ENERGY MANAGEMENT WORKSHOP

STUDENT PROGRAM | PROGRAMME ÉTUDIANT Be more than just a great resume. CIM Edmonton 2012 will be an ultimate opportunity to network and meet with professionals and peers in your field, and managers throughout the mining industry. The Student Program will ensure CIM Edmonton 2012 is informative and educational. It will enable you to put your best foot forward and make a lasting impression. And it’s one of the hottest venues to make friends with your peers from schools across the country – night time is going to be fun time in Edmonton! Student registration includes access to all the same elements as regular registration. Complete technical program on Operational Excellence • CIM Exhibition • CIM Job Fair • CIM Plenary • CIM Opening Reception • The Women in Mining Forum • P&H Reception and Dance That’s not all! The Student Program augments the conference experience with more opportunities to network, to learn, and to have a good time. CIM Student Lunch – Featuring Rio Tinto IOC Vice-President of Operations Mark Rodgers as the keynote speaker, students are elbowto-elbow with industry at this networking event. Dine and Dash, Edmonton Style – Monday night, join peers from across Canada and sample a number of Edmonton’s restaurant hotspots, then work it off on the dance floor at the top club in town. BBQ in the Park – Relax, chat and unwind at a BBQ in one of Edmonton’s awesome parks, before you head to the P&H Extravaganza.

Facilitator: Ben Chalmers, Vice-President, Sustainable Development, Mining Association of Canada | Date: Sunday, May 6 | Time: 8:30 to 12:00

TAILINGS MANAGEMENT FOR SUSTAINABLE MINING The main focus of the workshop will be on MAC’s three-volume set of guides developed to improve tailings management: A Guide to the Management of Tailings Facilities, initially published in 1998, updated edition published in 2009; Developing an Operation, Maintenance and Surveillance Manual for Tailings and Water Management Facilities, published in 2003; A Guide to Audit and Assessment of Tailings Facility Management, published in 2009. Facilitators: Rick Meyers, Vice-President, Sustainable Development, Mining Association of Canada and members of the MAC Tailings Working Group | Date: Sunday, May 6 | Time: 13:30 to 17:00

FOR THE FIRST TIME STUDENTS IN THE TECHNICAL PROGRAM This year, graduate and undergraduate students from earth sciences, engineering and environmental studies will participate in the Technical Program. Students will be given 10-minute presentation slots, with a maximum of two student presentations per session.

February 2012 | 85

MAY 6 TO 9 . 6 AU 9 MAI . 2012

FIELD TRIPS | EXCURSIONS A number of field trips have been organized to a variety of industrial locations following the closure of the conference. All participants are encouraged to extend their stay and benefit from a tour of a world-class operation of their choosing. All trips are on May 10, 2012.

COAL MINE TOUR: HIGHVALE MINE Tour TransAlta’s Highvale Mine, located about 70 km west of Edmonton, and learn about Canada’s largest surface strip coal mine, covering 12,140 hectares. Four draglines are in operation in the six Highvale pits currently being mined. Approximately 13 million tonnes of low-sulphur-content, thermal-grade coal are extracted from Highvale each year and fed to the Sundance and Keephills thermal generating plants. Mined-out land is reclaimed to support a variety of uses including agriculture, woodlands, wildlife habitat, recreation and wetlands. To date, 1,310 hectares have been reclaimed. Cost: $100

OIL SANDS TOUR: ALBIAN SANDS

MEET GREET HAVE A SEAT

Take a trip to Fort McMurray, 375 km north of Edmonton, to visit the oil sands capital of the world. This tour will provide an on-the-ground opportunity to witness the vast operations in oil sands mining, driven by innovative technology development and a continuous focus on operations improvement and safety excellence. Participants will witness the mammoth fleet at work while touring Shell Canada’s Albian Sands Operations north of Fort McMurray, including the AOSP Expansion that opened last summer, increasing production by 100,000 barrels per day. Cost: $600

URANIUM MINE/MILL TOUR: MCARTHUR RIVER MINE AND KEY LAKE MILL Saskatchewan is the largest producer of uranium globally, with a number of world-class operations employing state-of-the-art technology to extract the uranium in a safe and efficient manner. The tour will include stops at Cameco’s McArthur River Mine and the Key Lake Mill. McArthur River is the world’s largest, high-grade uranium deposit. Proven and probable reserves of 335.5 million pounds of U3O8 at an average ore grade of 15.24% U3O8 are processed at the Key Lake Mill, blended with low-grade ore in stockpile. Total U3O8 production for the mill from 2000 to 2010 was 191.1 million pounds. Cost: $900

POTASH TOUR: COLONSAY MINE

DROP BY THE CIM MAGAZINE LOUNGE

Saskatchewan is also the leading global producer of potash. This tour will bring participants to the Mosaic Colonsay Mine near the provincial capital, Saskatoon, one of the preeminent potash operations world-wide. The facility produces Muriate of Potash (MOP) in two grades: granular and standard. Cost: $650

INDUSTRY TOUR: OEM REMANUFACTURING CENTRE, KAL-TIRE, PROCON HEAVY EQUIPMENT For those who would like an opportunity to see some repair facilities, this industry tour will bring participants to three high-performing maintenance centres in the Edmonton area. It’s an opportunity to garner ideas first-hand that can be brought back and implemented with your own maintenance team. The tour will include stops at the OEM Remanufacturing Centre, Kal Tire’s facility in Acheson and ProCon’s heavy equipment facility in Nisku. Cost: $100

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www.cim.org/edmonton2012

Randall Stout

GUEST PROGRAM PROGRAMME DES INVITÉS WHEN: SUNDAY, MONDAY, TUESDAY, MAY 6, 7 AND 8 WHERE: SHAW CONFERENCE CENTRE, SALON 1 CIM INFO COUNTER AS DEPARTURE POINT TARGET AUDIENCE: CIM CONFERENCE ATTENDEES’ GUESTS SUNDAY, MAY 6

TUESDAY, MAY 8

WALKING TOUR

ART & ARCHITECTURE

River Valley Adventure Co. Walking Tours embark from River Front Plaza set in beautiful Louise McKinney Park. Our friendly informative tour guide will provide an interpretive tour highlighting the Trans Canada Trail, North Saskatchewan River, Millennium Plaza Shumka Stage, Public Dock, Chinese Garden, Rose Garden, Poetry Rings, a walk down the Riverfront Promenade and provide an amazing view of Edmonton’s downtown Skyline. There will be several opportunities for pictures during the tour. Includes a choice of beverage to enjoy before the tour. Duration: 60 minutes | Time: Two Departures: 13:00 and 15:00 | Cost: $25

The day begins with a guided visit of the Fairmont Hotel MacDonald, long known as the most elegant hotel in Edmonton and lovingly referred to as “The Mac.” Named after Canada’s first Prime Minister, Sir John A. MacDonald, the hotel opened its doors in 1915 and was destined to become the centre of Edmonton’s social life. Breakfast will be served in the beautiful Jasper Room.

MONDAY, MAY 7 EPICURIOUS & LIFESTYLE

Consumers want more than products and services. They want an experience. And that’s what you’ll find at the Enjoy Centre: a spa, restaurant, liquor store, bakery, garden centre – even an events space. Everything you need to reflect, relax and reconnect. The day begins bright and early at 8:15 for breakfast and Keynote presentation, Wellness for Women – Simple Tips You Can Start Today! followed by a tour of the centre, after which guests will be offered a light yoga session and a hands-on floral demonstration. (Each guest will take their own unique creation with them.) A hot lunch will be served and in the afternoon, guests will partake in a wine tasting, and shopping and touring the centre. Time: 8:15 to 15:00 | Cost: $125 all inclusive

Guests will then tour the Art Gallery of Alberta and be introduced to some of the featured exhibitions. Guided tours will give guests a first-hand experience of this remarkable building and its various exhibitions. A customized lunch menu by ZINC Restaurant’s Executive Chef, Dave Omar will be presented in one of the most beautiful restaurant locations in the city of Edmonton, overlooking Churchill Square. Following lunch, visit the Muttart Conservatory for a private tour of one of Edmonton’s most iconic structures, which offers a year-round escape into the beauty of the world’s plant life. Time: 9:00 to 16:00 | Cost: $125 all inclusive

CIM EXHIBITION | SALON COMMERCIAL DE L’ICM Find it all at the CIM Exhibition. Edmonton will be hosting 225 exhibitors, and they’re pulling out the stops. To make it even easier to find the partners and opportunities you seek, a number of exhibitors are grouped under pavilions: » 48e Nord (30 exhibitors) » Saskatchewan Trade & Export Partnership (STEP) (16 exhibitors) » South Africa (10 exhibitors) It`s not all tools and services, however. A Job Fair within the Exhibition will showcase opportunities at nine companies. Lunch and cocktail receptions in the CIM Exhibition: Monday and Tuesday, May 7 and 8, 12:00 to 14:00 and 15:30 to 17:00. Lunch and one drink ticket are included with the delegate registration fee. And, if you need to sit and relax, or a spot for a coffee while sealing the deal with a new client, the CIM Magazine Lounge is where you want to be.

Le Salon commercial de l’ICM regroupe la gamme complète des équipements et services nécessaires aux activités quotidiennes de notre industrie, depuis l’exploration et le développement en passant par l’extraction et la récupération. Plus de 225 entreprises regroupées sous le même toit présenteront simultanément les meilleurs équipements, produits et services qui font la réputation de l’industrie minière canadienne en matière d’ingénierie, de processus, de sécurité et de productivité. La meilleure technologie. Les renseignements les plus récents. Les enjeux les plus pertinents, le tout, au Salon commercial de l’ICM... l’événement minier par excellence au Canada.

EXHIBITORS (to date) / EXPOSANTS (à ce jour) 3M Canada Company 48e Nord International ABB Inc. ABC Canada Technology Group Ltd. Abresist Kalenborn Corp Aecon - Lockerbie AMEC APS Automated Positioning Systems Atlantic Industries Limited Ausenco Austin Powder B.I.D. Canada Ltd. BASF Construction Chemicals Boart Longyear Canada Breaker Technology Ltd Bridgestone Americas Tire Operations Butler Manufacturing Company CAE Mining Canada Inc. Canadian Association of Mining Equipment & Services for Export Canadian Mining Journal (CMJ) Carlson Software, Inc. Cattron-Theimeg Canada Ltd. Cavotec Canada Inc. Centre for Excellence in Mining Innovation (CEMI) Chemline Plastics Limited CK Logistics Clifton Associates Ltd. 88 | CIM Magazine | Vol. 7, No. 1

COGEP Inc. Columbia Steel Casting Co., Inc. CommodasUltrasort / Terra Vision Conspec Controls Ltd Continental Conveyor Ltd Cubex Limited Cummins Western Canada CWA Engineers Inc. Davidson Drilling Limited De Beers Group Services (PTY) Ltd. DELKOR AMERICAS DMC Mining Services DSI Mining Canada DUX MACHINERY CORPORATION Dyno Nobel Canada Emeco Canada Endress+Hauser Enduride Canada USA Inc. Engart GlobalDust Extraction Technology Engineering Seismology Group Canada Inc. (ESG) Enterprise Saskatchewan Finning (Canada) Flanders Flip Productions Ltd. FLSmidth FMC Technologies Fuller Gemcom Software International Inc.

General Cable General Electric General Kinematics Golder Associates Ltd. Graham Group Ltd. Gundlach Equipment Corporation Hatch. Hella Mining Canada Hepburn Engineering Inc. HLS HARD-LINE Solutions Inc. IMAFS Inc. Imperial Oil Ltd. Independent Mining Consultants Inc Iron Ore Company of Canada (IOC ) Jebco Industries Johnson Industries Ltd. Kal Tire Kiewit Mining Group Klassen Specialty Hydraulics Inc. Krupp Canada Inc. Ledcor Group of Companies Leica Geosystems Mining Levert Personnel Resources Inc. / Levert Executive Worldwide Inc. Liebherr-Canada Ltd. Luff Industries Ltd. LYNN Co Ltd. M3 Technology Solutions Ltd.

www.cim.org/edmonton2012

Maptek MDH Engineered Solutions (A Member of the SNC-Lavalin Group) MDL Canada Metcon Sales & Engineering Ltd. Metso Michelin North America Inc. Micromine North America Mine Cable Services Corp Mine Design Technologies Mine Site Technologies MineRP Mining Technologies International Inc. Minova Canada MMD Mineral Sizing (Canada) Inc. Motion Metrics International Corp. Moventas Ltd. MPI Mobile Parts Inc. MTU Mullen Trucking LP Multicrete Systems Inc. Multotec Canada Ltd Natural Resources Canada MMS / IPD NORLEANS Technologies Inc. North American Construction Group North Fringe Industrial Technologies Inc. Northern Strands Co. Ltd. One Eye Industries Orica Canada, Inc. OSIsoft (Canada) ULC Outotec (Canada) Ltd. P&H Mine Air Systems Pacific Bit of Canada Inc. Petro-Canada Lubricants Polycorp Ltd. Pompaction Inc. Praetorian Construction Management Precismeca Limited Procon ProMinent Fluid Controls R.D.H. Mining Equipment Rajant Corporation Rescan Environmental Services Ltd. Rockwell Automation

Runge Mining (Canada) Ltd. S.T.E.P. Saskatchewan Trade and Export Partnership Schneider-Electric Schwing Bioset, Inc. SEW-Eurodrive Co. of Canada Ltd. Shaft Drillers International SIEMAG TECBERG Inc. Siemens Canada Limited Simson Maxwell SM Cyclo of Canada, Ltd. SME - Society for Mining, Metallurgy & Exploration SMS Equipment Inc SNC-Lavalin Snowden Spicer Solution Providers Inc. Stantec Takraf Canada Inc. Tega Industries Limited TEMA Systems, Inc. Tetra Tech The Northern Miner Thermo Scientific, part of Thermo Fisher Scientific Thunderbird Mining Systems Thyssen Mining Veolia Water Solutions & Technologies Canada Inc. Voith Turbo Inc. W.S. Tyler Canada Wajax Industries Weir Minerals - North America WESTECH WesTech Engineering Inc. Westlund Industrial Westpro Machinery Inc. WestRon Pumps, Compressors & Blowers Westwind Performance Wire Rope Industries Ltd Wolseley Engineered Pipe Group Xylem

www.cim.org/edmonton2012

JOB FAIR EXHIBITORS BHP Billiton Cameco Corporation Detour Gold Corporation Goldcorp Imperial Oil Resources Limited (Kearl) Ledcor Industries Inc. Quadra FNX Mining Ltd. Teck Resources Ltd. The Mosaic Company Vale QUEBEC PAVILION 48e Nord International BBA BMH Systems Inc. ColasSolutions Delom Services Eclipse Combustion Montréal Falco Technologies Inc. Fournier Industries inc Genivar Inc. GKM Consultants Habitaflex (Maison Laprise) L.P. Royer Machines Roger International Major Wire Industries Limited Mecanicad Meglab Électronique MinExperience Newtrax Technologies Inc. Plafolift Puribec Inc. S. Huot Inc. Services Industriels Best H2O STC Footwear Technosub Industrial Pumps SASKATCHEWAN PAVILION Canadian Light Source Synchrotron Clifton and Associates Enterprise Saskatchewan Fortis Engineering Glen Mor. Hitachi Canada Integrity Solutions & Industrial Supply Inc. MDH Engineering

Norseman Structures Inc North Fringe Resources Saskatchewan Research Council Saskatchewan Trade and Export Partnership SoilVision Systems Ltd. Syl’s Mechanical Company Ltd. & SaskAlta Safety Corp. VBINE Energy Western Alfalfa Milling Co Western Heritage SOUTH AFRICA PAVILION Bird Machines (Pty) Ltd Blue Cube Systems (Pty) Ltd Condra Cranes & Hoists (Pty) Ltd Horne Group Reutech Mining International Steel Fabricators of South Africa South African Consulate General: Toronto Stone Three Mining MEDIA PARTNERS Mining Magazine – Aspermont UK ltd Canadian Mining Magazine CIM Magazine Coal People Magazine Mining Weekly DEL Communications Inc. EARTH Magazine; American Geological Institute Engineering & Mining Journal Mining Media ICMJ’s Prospecting & Mining Journal International Mining (Team Publishing Ltd.) Maintenance Technology / Lubrication Management & Technology Miners News / Mining & Aggregates Directories Native Journal SME - Society for Mining, Metallurgy & Exploration The Mining Equipment Prospector The Prospector News Tradelink Publication – Mining World / Coal International World Coal February 2012 | 89

CIM community Distinguished Lecturer

The benefits of change Klein shares his thoughts on the industry’s resistance to new technology By Alexandra Lopez-Pacheco

Bern Klein has been department head at the Norman B. Keevil Institute of Mining Engineering at the University of British Columbia since 2008, and an associate professor since 2003. A professional engineer, he worked for eight years in the mining industry, specializing in process design, before joining the university in 1997. Klein has committed much of the past 15 years to exploring practical solutions to the mining industry’s challenges, particularly in regard to advancing technologies. This is the focus of his presentation in this season’s CIM Distinguished Lecturers Series, which examines energy-efficient technologies for mining. CIM: Why have you chosen to speak on issues related to energy efficiency in mining? Klein: The Canada Mining Innovation Council has identified energy as one of its target areas for researching potential improvements to the Canadian mining industry. One of our motivations at the university is to learn about and advance new technologies. Typically, there is a 20-year cycle for a new technology to become accepted. So the question is, “How do we shorten that timeline?” My challenge is to understand the barriers to doing that: to prove the technology works, and to prove it is robust and will work in an industrial environment. But we need to look at other barriers as well. CIM: What are some of those barriers? Klein: I believe that the barriers are partly cultural. I am looking at technologies that exist but are not being applied readily in the Canadian industry. The Canadian mining industry is very conservative. I have heard of Canadian companies that develop new technologies for mining choosing to advance their technologies outside of Canada, and then return with them after they’ve been established elsewhere. The technologies I have researched are currently being used

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around the world, but are very slowly being applied by companies within Canada. They are being applied far more enthusiastically in places like Australia, which is significant, because even when well-known international mining companies are using the technologies, the uptake in the Canadian mining industry is slow. CIM: What is behind this resistance to change? Klein: The statement, “Nobody wants to be first; they want to be second,” is overused, but often true. A major challenge to overcoming this attitude is a lack of information: people making decisions about a new technology need to have all the relevant information so that they can make informed choices. At times, even experienced engineers have difficulty accessing this information, or they receive fragmented information that causes them to dismiss the technology outright. I respect and appreciate the risk of utilizing new technology. There will always be a fear of the unknown when you introduce new technology to an operation. There’s a risk to the operation and to the professionals involved. If I were an engineer who had to choose between old technologies that people know and a new one they are not familiar with, I would hesitate. My reputation could be affected if I recommended a new technology and a problem arose. You cannot be judged as wrong by using a known technology, even if it is less energy efficient. There is also another consideration: it may be difficult to get financing on a project that relies on a new technology. CIM: How can these obstacles be overcome? Klein: It is clear that an existing operation cannot just change its equipment, because such changes are $100 million decisions. However, new operations need to give new technology fair consideration. Engineers who are advising on the construction and who are involved in the decision-making process for equipment selection need to be open minded about these technologies. I believe we need to change our culture from one that is slow to accept new ideas. As people who are trying to advance new technologies, we need to be more intelligent about how we do this. The Canada Mining Innovation Council is an important part of the way this process will move forward. They want to coordinate research activity across the country related to the mining industry, which we have not done very well in the past. If successful, the Council will be key in making Canadian research more effective and, hopefully, the technology transfer to industry more efficient. CIM

CIM community Scholarship Winner

From the big city to the pit Scholarship winner hopes to find a solution to mining’s environmental challenges

Erica Vertefeuille, the recipient of this year’s Scotiabank and Scotia Capital Markets Scholarship for mining exploration and geology, went from an all-girls school in Toronto – where the closest thing to mining she had seen was trading on the stock market – to working as a geology intern at IOC’s iron ore mine in Labrador City. It was a transition she embraced. “I went from my school uniform in the big city to a hard hat and boots in a town of 7,000 with an open pit mine,” she laughs. “I loved it. I loved driving the big truck around the mine and seeing how well organized the operation was. It was amazing.” Above all, the fourth-year Queen’s University geological engineering student is passionate about gaining as much knowledge and experience as possible so she can make a difference throughout her career. “I went into engineering because I was strong in math and science, but I haven’t turned my back on everything else,” says Vertefeuille. She was drawn to geology because it is multi-disciplinary. “It is unique in that sense and it also has a very distinct human element to it,” Vertefeuille continues. “As for mining, the projects are so big and have such relevance in the world. As they say, everything that’s not grown is mined – that’s always stuck with me. It’s such a huge industry in Canada and it touches so many people, whether they know it or not. From the perspective of an environmentalist, you know that mining has innate problems, and to solve these challenges, you really have to do it through the mining industry. Hopefully, one day I may be able to help solve some of these challenges.” If the long list of recognition she has received so far is any indication – which includes the Teck Cominco Limited Scholarship, the Canadian Geophysical Society Scholarship, and the

Courtesy of Erica Vertefeuille

By Alexandra Lopez-Pacheco

Vertefeuille on an academic expedition to Antarctica

Canadian Mineral Industry Education Foundation Scholarship – Vertefeuille will no doubt reach her goals. She already has a job lined up for when she

graduates, one she has chosen because of the experience and insights she can gain from it on her journey to finding solutions for the mining industry.

February 2012 | 91

CALENDAR | CALENDRIER CIM EVENTS Saskatoon Branch: Spring Social April 19 | Saskatoon, SK Contact: Michael Castleberry michael.castleberry@mosaicco.com

“I’ll be working in investment banking with some focus on mining finance,” she says. “Looking at the environment and the challenges we face, I find what’s really lacking is a market solution for environmental problems; a solution that makes sense on the balance sheet isn’t there yet. So I looked to working in finance for those reasons, to pursue that solution.” CIM

ACHIEVEMENTS

CIM Conference & Exhibition: Edmonton 2012 May 3-9 | Edmonton, AB Contact: Chantal Murphy cmurphy@cim.org RockEng 2012 21st Canadian Rock Mechanics Symposium May 5-9 | Edmonton, AB Contact: Chris Hawkes chris.hawkes@usask.ca The 125th Anniversary of the Mining Society of Nova Scotia June 6-8 | Ingonish, NS Contact: Matt Ferguson mferguson@atlcat.ca MASSMIN 2012 6th International Conference & Exhibition on Mass Mining June 11-14 | Sudbury, ON Contact: info@massmin2012.com

GLOBAL EVENTS Sixth International Seminar on Deep and High Stress Mining March 28-30 | Perth, Western Australia www.deepmining2012.com Atlantic Heavy Equipment Show March 29-30, 2012 | Moncton, NB www.ahes.ca NWOMMS – Northwestern Ontario Mines and Minerals Symposium April 2-4 | Thunder Bay, ON www.nwopa.net University of Alberta – Professional Development Workshops: Mine Planning & Design Workshop Series April 11-May 31 | Edmonton, AB www.ualberta.ca/MOL/Courses.htm Expo Grands Travaux April 13-14 | Montreal, QC www.ExpoGrandsTravaux.ca 92 | CIM Magazine | Vol. 7, No. 1

Canada’s top employers for young people The results are in for Canada’s Top Employers for Young People competition. Organized by the editors of Canada’s Top 100 Employers, this list recognizes the companies that offer the nation’s best benefits for younger workers. Employers are evaluated based on the programs they use to attract and keep young talent. Companies of any size may apply for this competition, as long as its head office or main place of business is in Canada. So, what industry-related companies landed on the list? • AltaGas Ltd. (Calgary) – Three weeks of paid vacation allowance • Cargill Ltd. (Winnipeg) – Manages development plans for all employees in support of long-term career goals • Enbridge Inc. (Calgary) – Manages internal and external mentorship programs • Golder Associates Ltd. (Calgary) – Dedicates a portion of net revenue to training initiatives • Nexen Inc. (Calgary) – Helps employees manage their personal learning and career development • PricewaterhouseCoopers LLP (Toronto) – New employees start with three weeks’ vacation • Rescan Environmental Services Ltd. (Vancouver) – Rewards exceptional performance with hockey, concert or movie tickets • Stantec Consulting Ltd. (Edmonton) – Operates career development centre to help employees identify and achieve career goals • Syncrude Canada Ltd. (Fort McMurray) – Manages an apprenticeship program for high school students

CIM community

Mining Hall of Fame dinner draws record crowd Guests honour five new inductees

Krystyna Lagowski

By Krystyna Lagowski

Over 900 guests attended the 24th annual Canadian Mining Hall of Fame induction dinner on January 12, the largest in the event’s history. Held at Toronto’s Fairmont Royal York Hotel, the gathering honoured five new members of the Hall of Fame: Ned Goodman, Philip G. Hallof, John A. Hansuld, Robert Hunter and Robert Seymour Schulich (right) presents Ned Goodman with his award at the Dickinson. Canadian Mining Hall of Fame dinner. “This event just keeps growing and growing,” said Jose Suarez, senior vice-president, global development, mining and metallurgy at SNC-Lavalin Inc., one of the evening’s key sponsors. “It’s fantastic to see our colleagues and peers here, to put faces to the voices.” Andy Lloyd, a representative from Barrick Gold, another of the key sponsors, agreed. “This evening reflects the strength and enthusiasm of the Canadian mining industry today.” For the 11th year in a row, the master of ceremonies was Pierre Lassonde, chairman of Franco-Nevada Corp. Lassonde quipped that gold had increased over six-fold during the course of his tenure. Jon Case, associate portfolio manager for Sentry Investments, also a key sponsor, said he thinks “the Mining Hall of Fame is important to the Canadian industry because it recognizes the achievements of outstanding individuals in mining. That is an important function because the process of recording the stories and successes of each individual inductee serves as a very visible reminder of the importance of mining to Canada. Through the success of individual Canadians, the induction process highlights Canada’s role as a recognized leader in mining on the international stage.” Lloyd observed that Canada produces some of the best miners in the world. “That’s something we should recognize and celebrate,” he said. “We’re proud of our industry and the individuals who have done so much to make Canada a global leader in mining. The Hall of Fame is the perfect venue to honour those achievements.”

This year’s inductees were all outstanding entrepreneurs, noted Suarez. “Being an entrepreneur is very important to what we do in mining,” he said. “When you have people who are willing to take risks, it’s going to benefit them and it’s going to benefit society. I have tremendous respect for them.” Case said that he knew Robert Dickinson and was particularly happy to see him receive the honour. “The group Bob represents, Hunter Dickinson Inc., has, from a corporate standpoint, adopted a very novel and successful approach to mineral discovery and mineral development,” he said. Suarez also commented that he hoped people at the dinner would promote mining as a great career to schools and universities. “If you can train an individual in high school to get into a mining career, that’s a career that can span 30 to 40 years,” he said. “In some places, we have families that

Engineers, geologists, technologists, tradespersons, plant operators, business managers, etc...

Find Your Future in Saskatchewan Please join us at the come and go Saskatchewan Mining Recruitment Event at PDAC 2:00–5:00 p.m., Tuesday, March 6, Room 206AB Metro Toronto Convention Centre, North Building Saskatchewan’s extensive mineral wealth is in demand as never before. Over the next 20 years investment in new and expanded mines is projected to be $50 billion. About 15,100 skilled and professional workers are needed over the next 10 years alone. Please join us for refreshments and a brief presentation about careers in Saskatchewan’s diverse and growing mining sector. Representatives from Cameco, Mosaic and PotashCorp will be there to discuss specific opportunities.

Visit Saskatchewan’s PDAC booth #531

February 2012 | 93

have been in mining for three generations. It’s a great industry and a great career.”

The inductees Robert Dickinson and his partner, the late Robert Hunter, known affectionately as “the two Bobs,” founded Hunter Dickinson Inc., one of North America’s most respected mineral exploration and mine development groups. Platinum Sponsor:

The late Philip Hallof was a pioneer and innovator in geophysics, with a flair for communicating with a broader community. He also realized that globalization was vital to Canada’s geophysical industry, and sought opportunities in China in the early 1970s. John Hansuld, known as the “father of flow through,” was a pioneering geochemist who adapted a little-known tax incentive mechanism, the “flow-

through share,” to help finance mining exploration. Ned Goodman, a geologist who became a merchant banker, investment advisor and philanthropist, was also the driving force of the Dundee group of financial companies. CIM For more information, visit www.mininghalloffame.ca

Diamond Sponsors:

CIM welcomes new members Abdelwahab, Mohamad, British Columbia Adam, Mary-Beth, China Ambrose, Tyler, British Columbia Arphing Lee, Tommy, British Columbia Assefi, Jasmine, Ontario Atrafi, Avishan, British Columbia Balda, Sebastien, Ontario Ball, Kurtis, British Columbia Bennett, Darla, Ontario Bing Li, Qiuyi, Ontario Blommers, Christopher, British Columbia Bournane, Mohamad, Quebec Boxell, Jamie, Manitoba Bregha, Daniel, Ontario Celsian Cirisse, Stephen, Ontario Chang, Jerry, British Columbia Chilongo, George, British Columbia Choi, Dongha, British Columbia Chung, Authur, Ontario Cochrane, Christopher, Ontario Coppini, Henrique, Ontario Corsi-Johnson, Charlotte, Ontario Desjarlais, Keith, Quebec Devathasan, Dinesh, British Columbia Dintwe, Kagiso, Ontario Dreihaar, Adam, British Columbia Edwards, Cameron, British Columbia Epp, Megan, British Columbia Foulds, Fraser, British Columbia Fournier, Joseph, Alberta Fuchs, Jim, Ontario Gabe, Agen, Ontario Garrison, Mackenzie, Quebec Gauvreau, Mathew, Ontario Ghent, Rachel, Ontario Grant, Ian, British Columbia Hamel, Olivier, Quebec Hourie, Brendan, Ontario Huber, Cory, Alberta 94 | CIM Magazine | Vol. 7, No. 1

Ivory, James, Ontario Jaggard, Heather, Ontario Jiang, Qiyao, British Columbia Kahraman, Muhammet Mustafa, USA Keim, Rae Dawn, Saskatchewan Kouam, Jules, Quebec Kroeker, Peter, British Columbia Kung, Chung Lai, China Kwasnik, Mathew, Alberta Lausic, Christina, Ontario Lawal, Rasheed, United Kingdom Leslie, Meagan, Ontario Li, Jason, British Columbia Li, Zheng, British Columbia Lipsett, Lloyd, Quebec Loiselle, Liane, Ontario Maliakkal, Vinay, Ontario McAllister, Petra, Ontario McBride, Tristan, Ontario McCarthy, Thomas, Alberta McLean, James, Saskatchewan Medinac, Filip, Ontario Miller, Richard, British Columbia Morrison, Brendon, Ontario

Patterson, Peter, Ontario

Natomagen, Clarence, Saskatchewan

Skeries, Kristina, Ontario

Ndoreraha, Jean Marie, Ontario

Slezak, Jan, Austria

Neal, Mark, Saskatchewan

Sovka, James, British Columbia

Ngassa, Mhula, British Columbia

Spelay, Ryan, Saskatchewan

Nie-Rouquette, Aurelien, Quebec Nketia, Michael, Saskatchewan Notzl, Henrietta, Australia Nowak, Shellie, Australia Nyambayar, Tamir, Mongolia

Spencer, David, Saskatchewan Spilberg, Shai, Quebec Stansbury, Wendy, USA Stewart, William, Saskatchewan Subhani, Nabeegh, Saskatchewan

O’Connor, Darragh, Nova Scotia

Sublett, Camilla, Ontario

Olsen, Bill, Saskatchewan

Sumner, Rob, Australia

Oteman, Ryland, British Columbia Paitich, Hayden, Ontario

Sun, Weidong, China Themba, Phetogo, Ontario

Parsons, Liam, Ontario

Thompson, Todd, Saskatchewan Thorne, Andy, Ontario

Patenaude, Ryan, British Columbia

Pearson, Murray, Ontario Pedlar-Hobbs, Roberta, Ontario Pickard, Matthew, Ontario Pile, Brian, USA

Poirier, Marc, Ontario Pollock, Bob, Saskatchewan Pritchard, Alexander, Ontario Quach, Delphine, Quebec Querzoli, Andrew, Australia Ramatebele, Boikobo, Ontario Reszat, Thorsten, Saskatchewan Richards, Jack, Saskatchewan Saleh, Farah Abu, Quebec Sanders, Hal, Saskatchewan

Saputra, Hans, British Columbia Schewaga, Richard, Saskatchewan

Sequin, Byron, Ontario Shahani, Goutam, USA

Shi, Xinmei, British Columbia Shiels, Christine, Saskatchewan Shiels, Darcy, Saskatchewan Shmyr, John, Saskatchewan Shriver, Jim, USA

ADVANCING ING THE ST TA ATE-OFTHE-ART IN MASS MINING This premier technical mining conference will bring together over 700 high-profile international researchers, engineers and practitioners to present the latest accomplishments, innovations and potential future directions in mass mining and its applications around the world. After the US, South Africa, Australia, Chile and Sweden, it’s time for Canada and Sudbury to host this leading conference for the first time.

DIAMOND SPONSORS

GOLD SPONSORS

CONFERENCE HIGHLIGHTS

135 Technical Papers Grouped Into 5 Themes High-Profile International Speakers 2 Plenary Sessions Networking and Social Activities

SIL LVER SPONSORS

SHORT COURSES - Sunday, June 10

Automation in Mining Ground Support Practices From Around the World Advanced Seismic Analysis and Interpretation for Mass Mining

SUPPORTERS

MEDIA

FRIENDS

FIELD TRIPS - Thursday, June 14

Penguin Automated Systems Inc. Vale’s Stobie Mine Sudbury Neutrino Observatory

MASSMIN2012.COM

Visit our website and connect with us on Facebook, Twitter and LinkedIn!

NEW — Certification in Ore Reserve Risk and Mine Planning Optimization

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

Spread over a period of four months, this four-week course is designed for busy mining professionals who wish to update their skills and knowledge base in modern modelling techniques for ore bodies and new risk-based optimization methodologies for strategic mine planning. Gain practical experience by applying the following hands-on concepts and technical methods: methods for modelling ore bodies; stochastic simulations, case studies and models of geological uncertainty; and demand-driven production scheduling and geological risk.

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: Roussos Dimitrakopoulos, McGill University, Canada • • CITY: Montreal, Quebec, Canada • DATE: Starts May 7, 2012 • INFO: www.mcgill.ca/conted/prodep/ore

Geostatistical Mineral Resource/Ore Reserve Estimation and Meeting the New Regulatory Environment: Step by Step from Sampling to Grade Control

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

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.

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. INSTRUCTORS: Gelson Batista, MPX, Brazil; and Roussos Dimitrakopoulos, McGill University, Canada • DATE: March 2012 • CITY: Toronto, Ontario,

Canada

INSTRUCTOR: Jean-Michel Rendu, Newmont Mining Corporation, USA • DATE: September 5-7, 2012 • CITY: Montreal, Quebec, Canada

INSTRUCTORS: Marcelo Godoy, Golder Associates, Chile; Jean-Michel

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

Mineral Project Evaluation Techniques and Applications: From Conventional Methods to Real Options Learn the basics of economic/financial evaluation techniques, as well as the practical implementation of these techniques to mineral project assessments, how to gain a practical understanding of economic/ financial evaluation principles, and how to develop the skills necessary to apply these to support mineral project decisions. INSTRUCTOR: Michel Bilodeau, McGill University, Canada • DATE: October 22-25, 2012 • CITY: Montreal, Quebec, Canada

Courtesy of Xstrata

PRELIMINARY PROGRAM 21st Canadian Rock Mechanics Symposium Welcome to RockEng12, the 21st Canadian Rock Mechanics Symposium. The theme of this symposium, Rock Engineering for Natural Resources, was chosen with the objective of developing a better understanding of the rock mechanics-related challenges encountered during the development of mineral deposits, hydrocarbons and alternative energy sources. Social and guest programs, as well as field trips and student events, are the same as those of the CIM Conference & Exhibition.

For detailed information, go to

SPONSORSHIP OPPORTUNITY

www.cim.org/edmonton2012/rockeng2012

Consult the sponsorship program for the RockEng12 Symposium.

MAY 5 TO 9 . 2012

ROCKENG12 PLENARY SESSION

STUDENT POSTER SESSION MONDAY | 12:00 TO 19:00 The Student Program is designed to help tomorrow’s rock mechanics professionals develop a broad network of industry contacts as they contemplate their careers. The program will include a Student Poster Session on a wide range of topics, and a joint Plenary Session/Student Poster Session reception.

MONDAY | 13:50 TO 17:00 The RockEng12 Plenary Session brings together four eminent rock mechanics experts speaking on a wide range of topics that will be of interest to all delegates. Confirmed panellists: Modelling progressive breakdown of rock for mining and petroleum applications

Photo: Normand Huberdeau / N. H. Photographes LtĂŠe.

John Harrison, University of Toronto

The role of the review independent consultant Peter Stacey, Stacey Mining Geotechnical Ltd.

Coupled thermal-mechanical-hydraulic processes in steam injection technologies Maurice Dusseault, University of Waterloo

From detection to warning: monitoring for large rock slopes Corey Froese, Alberta Geological Survey

MONDAY, MAY 7

A reception will follow the plenary session.

9:00 - 11:30

CIM Plenary Session at the Shaw Conference Centre

12:00 - 13:30

Lunch and Student Poster Session

13:50 - 17:00

RockEng Plenary Session

17:00 - 19:00

Plenary/Poster Reception

8:30 - 10:10

Underground Mining 1

Reservoir Mechanics 1

Constitutive Behaviour Monitoring and Modelling

TUESDAY, MAY 8

COFFEE BREAK 10:35 - 12:15

Rock Reinforcement & Support 1

Constitutive Behaviour Laboratory Investigations

LUNCH 13:50 - 15:30

Mining & Geological Repositories Modelling

Rock Engineering in the Presence of High Water Pressure or Flow

Mine Backfill

COFFEE BREAK CO2 Sequestration

15:45 - 17:00

WEDNESDAY, MAY 9

Reservoir Mechanics 2

18:30 - 22:00

RockEng12 Banquet at the Art Gallery of Alberta

8:30 - 10:10

Keynote Session COFFEE BREAK

10:35 - 12:15

Underground Mining 2

Surface Mining

Boreholes and Drilling

Caprock Integrity

LUNCH AND INDUSTRY POSTER SESSION 13:50 - 15:30

Microseismic Monitoring - Mining COFFEE BREAK

15:45 - 17:00

Rock Reinforcement and Support 2

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In-situ Stress & Site Characterization Hydraulic Fracturing and Casing Deformation

www.cim.org/edmonton2012/rockeng2012

RockEng12 the 21st Canadian Rock Mechanics Symposium

TECHNICAL PROGRAM TUESDAY | 8:30 to 10:05 Underground Mining 1 The effect of weak layers on pillar performance in southern African chrome and platinum mines

Evaluating immediate mining-induced ground movement by monitoring the performance of the primary support system Wei Wei, Vale Canada Ltd. and Hani S. Mitri, McGill University

Monitoring of dynamic bolts for high-stress mining Francois Charette, Dynamic Rock Support

Reservoir Mechanics 2

Gregory O’Ferrall, Wardrop Consulting, and Daniel Francois Malan, Gold Fields South Africa

Sensitivity of homogenized elastic moduli to heterogeneous mechanical property models

Implications of shear loading for mine planning and design

Mehdi Khajeh, Rick Chalaturnyk and Jeff Boisvert, University of Alberta

Fidelis Suorineni, MIRARCO, Peter K. Kaiser, CEMI, Joseph J. Mgumbwa, New Brunswick Mine, and Denis Thibodeau, Vale Canada Ltd.

Modelling of heterogeneous bitumen carbonates

Numerical simulation of accumulated damage in critical mine infrastructure and prediction of further damage over mine life

Hydro-mechanical response of hydraulic fractures

Katherine Kalenchuk, Mine Design Engineering, Will F. Bawden, Mine Design Engineering, and William Curry and Changshou Sun, Newmont USA

Analysis of the influence of the mining sequence on a remnant pillar with FLAC3D Shahe Shnorhokian and Hani Mitri, McGill University, and Denis Thibodeau, Vale Canada Ltd.

Reservoir Mechanics 1 Statistical analysis of microseismic event characteristics helps monitor in-situ stress changes

Alma Ornes, Richard J. Chalaturnyk and Nathan Deisman, University of Alberta Mohammadreza Jalali, Rebecca Katherine Cameron and Maurice Bernard Dusseault, University of Waterloo

Comparative stress distribution in coupled and uncoupled SAGD reservoir simulation Nathan Deisman, Jun Xiong and Rick Chalaturnyk, University of Alberta

Constitutive Behaviour - Laboratory Investigations Formalized approach to defining damage thresholds in rock Ehsan Ghazvinian, Mark Diederichs and Matthew Perras, Queen’s University

Experimental studies on anisotropy in creep behaviour of Colorado shale cores

Melanie Grob and Mirko van der Baan, University of Alberta

Ron Wong and R. Gautam University of Calgary

Poisson impedance as a rock physics attribute for developing geomechanics earth models: Case study from southwest Iran

Experimental study on shear strength of non-persistent joints

Seyed Bijan Mahbaz and Maurice Bernard Dusseault, University of Waterloo, and Hadi Sardar, University of Tehran

A new approach to infer reservoir dilation using a limited number of tiltmeter measurements Ron Wong and A.S. Nanayakkara, University of Calgary

Constitutive Behaviour - Monitoring and Modelling Behaviour of the opalinus clay formation at the Mont Terri underground research laboratory Renato Macciotta and Derek Martin, University of Alberta

Concept of damage in healing models for rock salt Chloe Arson and Frederick Chester, Texas A&M University

Factors affecting tensile to compressive strength ratio of PFC-based intact rock models: Grain-based vs. clustered particle approaches Navid Bahrani and Benoît Valley MIRARCO - Mining Innovation, Matthew Pierce, ITASCA Consulting Group, and Peter K. Kaiser, Centre for Excellence in Mining Innovation

Comparison of practical modelling methodologies for considering strain weakening and dilation as part of ground response around deep excavations Gabriel Walton and Mark S. Diederichs, Queen’s University

TUESDAY | 10:35 to 12:15 Rock Reinforcement & Support 1 Comparison of two failure criteria for the assessment of haulage drift stability using stochastic analysis and numerical modelling Wael Abdellah and Hani S. Mitri, McGill University, and Denis Thibodeau and Lindsay Moreau-Verlaan, Vale Canada Ltd.

Quantifying the loss of support capacity due to corrosion Jean-François Dorion and Edward Ghali, Université Laval, and John Hadjigeorgiou, University of Toronto

Giovanni Grasselli, Henrique Coppini, Camilla Sublett, and Bryan S.A. Tatone, University of Toronto

The effective strength of broken rock Saleh Balideh and Tim Grain Joseph, University of Alberta - Alberta Equipment-Ground Interactions Syndicate (AEGIS)

TUESDAY | 13:50 to 15:30 Mining & Geological Repositories – Modelling Effect of anisotropy of permeability in slope stability of large open pit mines Azadeh Riahi, Jim Hazzard and Loren Lorig, Itasca Consulting Group

Near field thermal-mechanical modelling of conceptual deep geological repositories in crystalline and sedimentary rock Jose Carvalho and Kenneth Birch, Golder Associates Ltd.

Modelling depth of failure using mobilized hoek-brown failure criteria parameters Nader Golchinfar and Ming Cai, Laurentian University

Influence of rock mass foliation on impact-induced damage of an ore pass wall Kamran Esmaieli, Golder Associates Ltd. and John Hadjigeorgiou, University of Toronto

Rock Engineering in the Presence of High Water Pressure or Flow Study of flow through fractured sandstone Jarret Thomson and Rashid Bashir, Golder Associates Ltd., Stephen Klemmer, Cameco Corp., and Chris Hawkes and Doug Milne, University of Saskatchewan

Numerical investigation of flow regimes in fractured rock slopes James Hazzard, Branko Damjanac, Christine Detournay, and Loren Lorig, Itasca Consulting Group

Testing of rock mass air permeability and applications to underground mining Stephen Klemmer and Doug Milne, University of Saskatchewan, Rashid Bashir, Golder Associates Ltd., and James Hatley, Cameco Corporation

www.cim.org/edmonton2012/rockeng2012

February 2012 | 99

MAY 5 TO 9 . 2012 Monitoring CO2 sequestration from spaceborne synthetic aperture radar (SAR) platforms: InSAR applications Bruce Macdonald, Bernhard Rabus and Michael Henschel, MDA Ltd.

Boreholes & Drilling Analysis of single-cutter experiments using discrete element models Sergio Fontoura, Nelson Inoue and Constantino Niño, PUC-Rio

Study on the influence of material heterogeneity and stress anisotropy on borehole stability using a finite-discrete element approach Giovanni Grasselli, Andrea Lisjak and Omid K. Mahabadi, University of Toronto

Modelling cement and casing behaviour when drilling through salt Sergio Fontoura, Nelson Inoue and Freddy Mackay, PUC-Rio

WEDNESDAY | 8:30 to 10:05 Development of an innovative hydrostatic shaft liner design for a new shaft in Saskatchewan’s Athabasca Basin Jacques Ouellet, Tetra Tech, James Hatley, Cameco, Bruce Stanley, Thyssen Mining, and Mike Harper, Stirling & Lloyd

Surface Mining Initial slope stability study of undercut slope at area 4.1 Mae Moh Mine, Lampang, Thailand

Keynote Session Wireline hydraulic mini-frac testing: Experiences in the ANDRILL SMS Borehole, McMurdo Sound, Antarctica Douglas Schmitt, University of Alberta, Terry J. Wilson, Ohio State University, Richard D. Jarrard, University of Utah, Timothy S. Paulsen, University of Wisconsin, Simona Pierdominici, Nazionale di Geofisica e Vulcanologia, David Handwerger, Terra-Tek Schlumberger, and Thomas Wonik, Inst. für Geowissen

Cheowchan Leelasukseree, Chiang Mai University and Narongsak Mavong, Mae Moh Mine, Electricity Generation Authority of Thailand

High-density InSAR measurements for monitoring surface deformation in natural resource applications

Monitoring rock slope stability from spaceborne synthetic aperture radar (SAR) platforms: InSAR applications

Giacomo Falorni and Jessica Morgan, TRE Canada Inc., and Andrea Tamburini, TeleRilevamanto Europa (TRE)

Bruce Macdonald, Bernhard Rabus and Jayson Eppler, MDA Ltd.

Rock mass change monitoring in a sill pillar at Vale’s Coleman mine (Sudbury, Canada)

Monitoring engineered and natural slopes through IBIS-M, an innovative interferometric radar Paolo Farina, Lorenzo Mayer, Francesco Coppi, Lorenzo Leoni, and Abed Helbawi, IDS SpA

Benoît Valley, MIRARCO, Bernd Milkereit and Winnie Pun, University of Toronto, Marco Pilz, GFZ German Research Centre for Geosciences, Jean Hutchinson and Dani Delaloye, Queen’s University, and Behrad M. Madjdabadi, University of Waterloo

Effect of mining on deformation patterns in a large open pit rock slope

WEDNESDAY | 10:35 to 12:15

Abdelkareem Alzoubi, C. D. Martin and D. M. Cruden, University of Abu Dhabi

Underground Mining 2 An investigation into the stand-up time of stopes for the Birchtree mine in Thompson, Manitoba

TUESDAY | 15:45 to 17:00 Mine Backfill Comparing the behaviour of modelled paste in 2D and 3D, using both simplified and complex stope geometries Ryan Veenstra, Ryan Llewellyn Veentra, William Bawden, and Murray Grabinsky, University of Toronto

Effect of backfill placement method on its stability: A dynamic modelling case study Muhammad Zaka Emad and Hani S. Mitri, McGill University, and John G. Henning, Goldcorp (Inc.) Canada

Application of consolidated rock fill to open stoping in underground mines Jerry Ran, Kinross Gold Corporation

Matthew Violot and Doug Milne, University of Saskatchewan, and Denis Thibodeau and Cecile Kelly, Vale Canada Ltd.

New knowledge-based system prototype for assisting mine operators in predicting stope instability and associated unplanned dilution Somchet Vongpaisal, CANMET

Combining sources of rock mass characterization data for stope design Karina Forster and Tanya Smith, Cameco Corporation, and Doug Milne, University of Saskatchewan

Development and implementation of a risk mitigation strategy to mine a primary-secondary production stope in a high-stress environment at Vale Creighton Mine Allan Punkkinen, Vale Canada Ltd. and Andrew J. Hyatt, Yieldpoint Inc.

CO2 Sequestration

Geomechanical response to CO2 injection for the heartland area Redwater project (HARP), Alberta Hamidreza Soltanzadeh and Chris Hawkes, University of Saskatchewan

Caprock Integrity Geomechanical design, execution and interpretation of microfracture (minifracture) tests in oil sands and caprock

Laboratory investigations of seismic signatures of CO2 saturation for geological sequestration

Patrick Collins, Petroleum Geomechanics Inc.

Gautier Njiekak, Randolf Kofman, Mizan Chowdhury, Douglas Schmitt, University of Alberta, and Helen Yam, Imperial Oil

Kristine Haug, Energy Resources Conservation Board

100 | CIM Magazine | Vol. 7, No. 1

Overview of the oil sands caprock integrity project

www.cim.org/edmonton2012/rockeng2012

RockEng12 the 21st Canadian Rock Mechanics Symposium

Caprock integrity and stress paths for SAGD reservoirs Dale Walters and Joshua Wong, Taurus Reservoir Solutions Ltd., and A. (Tony) Settari, University of Calgary

INDUSTRY POSTERS

Nonlinear coupled thermo-hydro-mechanical processes

WEDNESDAY | 8:30 TO 17:00

Bin Xu, Baohong Yang and Yanguang Yuan, BitCan

WEDNESDAY | 13:50 to 15:30 Microseismic Monitoring – Mining Time – A key seismic source parameter Marty Hudyma, Laurentian University and Donna Beneteau, University of Saskatchewan

Investigating rock mass instability with apparent stress Marty Hudyma and Daniel Young, Laurentian University, and Yves Potvin, Australian Centre for Geomechanics

Passive seismic tomography for imaging horizontal stress concentration at the mine scale Erik Westman and Jeff Kerr, Virginia Tech University, and Denis Thibodeau, Vale Canada Ltd.

Practical considerations for the use of microseismic systems at mining operations Ian Leslie, Engineering Seismology Group

In-situ Stress & Site Characterization Measuring crustal stress: Three-dimensional numerical modelling of drilling-induced fractures and laboratory testing Oluwaseyi Idowu and Douglas Schmitt, University of Alberta

Modelling past and future in-situ stress evolution for boundary condition validation and long-term analysis of underground excavations Steven Gaines, Cara Kennedy, Mark Diederichs, and Jean Hutchinson, Queen’s University

Deep borehole study toward the feasibility of engineered geothermal system (EGS) in northeastern Alberta Judith Chan, Douglas R. Schmitt, Jacek Majorowicz, Elahe Poureslami Ardakani, Greg Nieuwenhuis, and Mirko Van de Baan, University of Alberta, and Jochem Kueck, International Continental Scientific Drilling Program

Reopening an abandoned railway tunnel that sustained extensive fire damage for public use Dwayne D. Tannant, University of British Columbia

3D geological and structural geology modelling and 2D openpit mine slope stability analysis by the synthetic rock mass (SRM) method Carlos Enrique Paredes Otoya, Ausenco and Sérgio Augusto Barreto da Fontoura, Pontifícia Universidade Católica do Rio de Janeiro

Changes in hydro-mechanical monitoring parameters during construction of a deep geological repository A.K. Verma and T.N. Singh, The Energy and Resources Institute

2D Numerical simulation of direct shear stress test, interlocking half-blocks influence Olivier Nouailletas and Baptiste Rousseau, Université de Sherbrooke, and Christian La Borderie and Céline Perlot, Laboratoire SIAME

Parametric, stability and risk analysis for an overburden storage structure located in northern Alberta Nabeel Khan and Maurice B. Dusseault, University of Waterloo

Consideration of post-peak characteristics in sill pillar design Omkar Beruar and Denis Thibodeau, Vale Canada Ltd., and Shailendra K. Sharan and Ming Cai, Laurentian University

Effect of seismic loading on fracture development around an excavation in limestone Erman Evgin, Zhu Fu, and Julio Angel Infante Sedano, University of Ottawa, and Siva Sivathayalan, Carleton University

Impacts of practical data collection challenges on accurate rockmass simulation using discrete fracture networks

The new GeoREF geotechnical beam centrifuge at University of Alberta

Cortney Palleske, J. J. Day, M. S. Diederichs, and D. J. Hutchinson, Queen’s University, and Davide Elmo, Golder Associates Ltd.

Gonzalo Zambrano-Narvaez and Rick Chalaturnyk, University of Alberta

WEDNESDAY | 15:45 TO 17:00 Rock Reinforcement & Support 2 Comparison between practical modelling approaches to long-term tunnel behaviour and support response Chrysothemis Paraskevopoulou and Mark Diederichs, Queen’s University, and Nicholas Vlachopoulos, RMC

Improved input parameters and numerical analysis techniques for temporary support of underground excavations in weak rock

The application study of pre-stress anchor for retaining wall reinforcement engineering Yunwei Meng, Hejun Chai and Xiangcheng He, China Merchants Chongqing Communications Research & Design Institute Co., Ltd.

A methodology for evaluating the forecasting performance of seismicity indicators at El Teniente Mine, Chile Javier Vallejos and Rodrigo Estay University of Chile, and Rodrigo Zepeda and Patricio Jorquiera, Division El Teniente, Codelco

Jeffrey Oke and Mark S Diederichs, Queen’s University, and Nicholas Vlachopoulos, RMC

Assessment of in-situ stresses at depth using borehole breakouts

Stochastic approach to the corrosion assessment of rock bolts

Denis Labrie, Ressources Naturelles Canada and Richard Simon, École Polytechnique de Montréal

Francois Charette, Dynamic Rock Support

Hydraulic Fracturing & Casing Deformation Application of the distinct-element method to investigate the influence of natural fractures and in-situ stresses on hydrofrac propagation Neda Zangeneh, Erik Eberhardt and Marc Bustin, The University of British Columbia, and Ted Urbancic, ESG Solutions

Investigation of anisotropy in compressive elastic modulus of the montney shale Ron Wong and S.A.R. Keneti, University of Calgary

Anisotropy measurements in core samples by using pulse transmission method Jaime Melendez-Martinez and Douglas R. Schmitt, University of Alberta

Influence geomechanic processes on relative permeability Mohamed Hamoud, Rick J Chalaturnyk and Juliana Leung, University of Alberta

February 2012 | 101

MAY 5 TO 9 . 2012

SHORT COURSES Short courses will take place on the days preceding the symposium’s Technical Program.

TWO-DAY SHORT COURSES...

SATURDAY AND SUNDAY, MAY 5 AND 6 Rock Mechanics and Unconventional Oil and Gas Development Instructor: Maurice Dusseault, University of Waterloo Day one of this course will focus on an introduction to petroleum geomechanics. Topics to be covered include: rock properties (deformation, strength and use in petroleum geomechanics), developing the geomechanics earth model, and design approaches in petroleum geomechanics. Day two will cover the following topics: hydraulic fracture geomechanics, stress redistribution and changes in properties during thermal processes, and monitoring the deformation field in thermal EOR.

Introduction to FLAC3D Instructor: Edward Dzik, Itasca Consulting Group This course provides an introduction to FLAC3D for application to geotechnical analysis. The two-day course provides an overview of the capabilities and features of FLAC3D and covers software fundamentals with discussions on the theoretical background, basic concepts and modelling principles for 3D geotechnical analysis. Topics include: grid generation, application of boundary conditions, constitutive (material) models, solution of the static equilibrium state, and installation of structural support. The course also includes discussion on using the built-in programming language in FLAC3D (called FISH) to manipulate the FLAC3D model. This is “hands-on” training and exercises with FLAC3D are provided throughout the course.

ONE-DAY SHORT COURSES...

The course can be followed by anyone who is interested in learning more about borehole geophysical logging and data processing. No prior knowledge is required. The course will include working with real datasets. A training license of the WellCAD software will be provided. Attendees should bring their own laptop and should have rights to install the software.

Coalseam Reservoir Geomechanics

SATURDAY, MAY 5 Introduction to Borehole Geophysical Logging Tools and Data Processing Instructor: Timo Korth, Advanced Logic Technology This one-day short course will introduce the attendee to the general concept and use of borehole logging tools. A focus will be placed on density, full waveform sonic, and acoustic imaging logging tools, which are of importance for the determination of rock mechanical parameters. The course attendee will get hands-on experience when processing real datasets from these probes using the WellCAD software package. The following topics will be covered during the course: (1) introduction to the concepts of borehole geophysical logging; (2) explanation of the physical theory, tool design and application of gamma-gamma density, full waveform sonic and ultrasonic acoustic imaging logging tools; (3) manipulation of borehole data using WellCAD: data management, filter options, resampling, blocking, formula parser and manual

102 | CIM Magazine | Vol. 7, No. 1

data entry; (4) P- and S-wave velocity determination from full waveform sonic (FWS) data and computation of rock mechanical properties; (5) orientation and pre-processing of data from acoustic and optical televiewer tools (ATV, OTV); (6) interactive picking of structural dips and breakouts, corrections and statistics; (7) computation and application of caliper information from ATV travel-time data; (8) determination of acoustic reflectivity of the rock and their relationship to rock hardness.

Instructor: Nathan Deisman, University of Alberta The course will cover primary reservoir evaluation, characterization and production/injection concepts related to CBM, ECBM and CO2 storage in coal reservoirs with the main focus on geomechanics. CBM reservoirs could be considered the most geomechanically complex due to: fracture flow, low stiffness, low strength and sorption induced shrinkage/swelling. The course will provide the student with the basic concepts related to strength, stress and deformation, which can be translated to most other reservoir geomechanical processes (including SAGD and shale gas). Topics covered will include several references and are as follows: basic geology; fundamental CBM flow concepts; fundamental geomechanics; field core sampling (flow, geomechanics and coupled effects); laboratory testing (flow, geomechanics and coupled effects); geomechanical characterization of coal (strength and deformation); geomechanical modelling of coal; coupled reservoir flow-geomechanical modelling; caprock behaviour (CBM->ECBM->CO2 storage process); fundamental monitoring approaches.

www.cim.org/edmonton2012/rockeng2012

RockEng12 the 21st Canadian Rock Mechanics Symposium

SUNDAY, MAY 6 Rock Mass Characterization and Empirical Mine Design Instructors: Rimas Pakalnis, University of British Columbia and Doug Milne, University of Saskatechwan

This course will illustrate the fundamentals of geomechanics in the context of the field operation as described above. Nonlinear, fully coupled thermo-hydro-mechanical processes are the focus. Examples from theoretical derivations, laboratory tests, field tests and numerical simulations are included. Attendees are expected to have a preliminary understanding about mechanics and geological engineering.

This course provides the operators of underground mines with the tools required to make on-site pillar and opening stability assessments. The basis for most empirical design systems is rock classification and this will be briefly reviewed during the course. Tools for assessing opening stability are provided. Empirical methods for considering the complex interaction of stress, opening geometry, structure and rock mass are provided as well. Time is given for solving stability problems and participants are strongly encouraged to bring case histories or questions from their own operations. Case history data should include stope or pillar geometry, depth, estimated stress levels and a description of the rock mass.

SUNDAY, MAY 6, PM

InSAR Techniques for Monitoring Surface Deformation: Principles and applications

An Overview of Artificial Ground Freezing in Mining, Tunnelling, and Shaft Sinking

Instructor: Giacomo Falorni, TRE Canada

Instructors: Greg Newman and Lori Newman, Newmans Geotechnique Inc.

InSAR is a remote-sensing technology that uses radar satellite data to make precise measurements of ground deformation. It is non-intrusive, doesn’t require ground equipment or fieldwork, and can make millimetre measurements of deformation over entire sites. These unique characteristics make it a powerful tool for many natural resource applications and it has been successfully used in mining, oil and gas, gas storage, geothermal operations and CCS.

This workshop will provide engineers, project managers and project owners with the chance to learn about the science of ground freezing, and under what circumstances it is technically and economically feasible for ground water control and stability enhancement. The course will consider theoretical issues only to the extent that they help with the design or interpretation of real ground freezing projects. The attendees will not learn how to do ground freezing engineering in detail but rather, they will learn how to think about using ground freezing in the context of their own work. The course will consider key design criteria and decision-making factors. It will use real-life examples to illustrate when ground freezing works, when it won’t work, how water flow affects ground freezing, how to assess deformation when excavating frozen ground, how mechanical systems for freezing can be coupled with passive thermosyphon systems, how ground freezing equipment can be converted for geothermal heat recovery after freezing and what options exist for freeze plants and ground performance monitoring.

This course will cover: (1) InSAR processing from basic InSAR to the concepts behind the latest approaches; (2) current and past radar satellites and their characteristics; (3) limitations where InSAR can and can’t be applied and what it can and can’t do; (4) real-world examples (mining, oil & gas, CCS, gas storage and geothermal case histories).

The Use of Geophysics for Rock Engineering Projects Instructor: Chris Phillips, Golder Associates Ltd.

The key message is: Geomechanics is not the last item on the to-do list when crisis or problems arise and we are forced to attend. It can make money for the operators. It is hoped that attendees walk away with new ways of thinking about their development plans and daily operations if they are in the industry, or if they are in academia, a new understanding about the industrial needs for academic researches. They are also expected to know what to do, how to plan and quality control the works.

Description not available at time of printing.

HALF-DAY SHORT COURSES...

SUNDAY, MAY 6, AM Proactive Geomechanics for Unconventional Oil/Gas Resources Instructor: Yanguang Yuan, BitCan Geosciences & Engineering Inc. Unconventional oil/gas resources include heavy oil/oil sands, tight gas, shale gas and coalbed methane. Development of these resources requires significant stimulation via injecting large amounts of energy/materials, whether it is fluid (steam/water), chemicals, or high pressure. Under such impact, deformation and failure of the reservoir rock becomes important. The overburdened rock can be impacted as well. Therefore, geomechanics should and can be proactively utilized in developing these reservoirs.

www.cim.org/edmonton2012/rockeng2012

ROCKENG12 BANQUET Tuesday | 18:30 to 22:00 The RockEng12 banquet will be held at the new Art Gallery of Alberta. With its soaring spaces, this state-of-the-art facility will charm the evening guests. The menu features fresh Alberta ingredients fused with local artisan food products.

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HISTORY OF

economic geology

Australia (Part 2) By R. J. (Bob) Cathro, Chemainus, British Columbia

The gold rush in Victoria was not only more accessible from the coast, it was also much bigger than the earlier rush in New South Wales, so the imposition of the same licensing fee of 30s per month in Victoria proved difficult to enforce. This was partly due to the number of prospectors and miners involved as well as the resistance provoked by the imperious manner of the officials. The presence of Californians, with their fondness for firearms and lynch law, added more danger. The tipping point came on January 1, 1852, when the Legislative Council decided to increase the fee to £1 per month. Meanwhile, no military force was available to enforce order as the regular police had abandoned their duties to prospect for gold themselves. Still, the rush grew larger. On October 1, Latrobe reported that 47 ships had ~Rickard, 1945 been abandoned by their crews in Melbourne harbour. This made it very slow – up to six months – for a message to arrive in London. Disorder became more frequent at the goldfields and the illicit sale of alcohol was increasing, even though the licensing fee was reduced to £2 for three months. A miscarriage of justice at Ballarat served as an excuse for a riot and the formation of a reform league by miners. In December, a military force of 276 attacked 1,200 miners within a stockade on Eureka Hill, resulting in the death of 30 miners and two soldiers. Dubbed the “Eureka Massacre,” it had a profound impact on Australian history. The people of Melbourne sympathized with the diggers. A series of trials resulted in acquittals and a commission of enquiry recommended a license fee of £1 per year, which included the right to vote. In addition, an export tax of 2s 6d per ounce was approved, amnesty given to all the miners, and Courts of Mines were established for hearing local disputes. As the rich surficial deposits became exhausted and companies were established to engage in deeper mining, the gold mining industry became stabilized and handsome towns replaced sprawls of pioneer shacks (Rickard, 1945). The gold seekers, who gradually spread into neighbouring colonies, found small amounts of alluvial gold in 1852 at Fingal and Nine Mile Springs in Tasmania. The first of many small discoveries in Queensland was made at Canoona (near Rockhampton) in 1858, followed by Warwick (southwest of Brisbane) in 1863, Rockhampton in 1866, Gympie (northwest of Brisbane) in 1867, and Ravenswood (near Ayr) in 1868. In 1872, an important discovery was made at Charters Towers, 135 kilometres southwest of Townsville and 1,100 kilometres northwest of Brisbane. According to the legend, a 12-year-old Aboriginal boy named Jupiter found a nugget of gold in a creek and gave it to his employer, who then adopted and educated him. It resulted in an underground mine that produced 299 tons (6.6 million ounces) between 1871 and 1917. Other small gold showings were made at Palmer and Hodgkinson (between Cookstown and Cairnes and inland 100 kilometres) in 1873 and 1876, at Nebo (near Mackay) in 1881, and at Croydon in 1886. Miners in front of their hut wearing the traditional costume of moleskin breeches, Other small occurrences were reported at Birdwood and Crimean shirts, leather belts and money pouches. The high hat on the right is a Teetulpa, South Australia, in 1870 and 1886, respectively; at California-inspired model. Photo by Richard Daintree (from Stone & MacKinnon, Pine Creek and Arltunga in Northern Territory in 1872 and 1976). In November of 1851, Charles Latrobe, the Governor of the new State of Victoria, visited the diggings at the Ballarat camp and stopped to chat with an old Cornishman who was leaning on his shovel. According to legend, this conversation took place. “Where do you think the gold came from”? Latrobe asked him. The old miner scratched his head thoughtfully and then answered slowly: “Well, Sorr, wheer it is, theer it is; and wheer it ain’t, theer be Oi.”

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HISTORY OF

economic geology 1896, respectively; and at Lefroy, Beaconsfield and Mt Lyell in Tasmania in 1872, 1877 and 1886, respectively. These states and territory were found to have a low alluvial gold potential. Western Australia, which did not come to the forefront as a gold region until 1892, eventually became the most important gold producing state in the country and among the best districts in the world. The interior of the state is arid country with little water, broken by low rocky ridges and devoid of vegetation other than scrub acacia trees, which made it extremely difficult and dangerous to prospect. The shortage of water meant that the only way of winning tiny grains of gold from the ground was by the grimy and inefficient method called dryblowing. Men from the dry regions of northern Queensland and the Northern Territory had a clear advantage working in the desert. North Australia had been the scene of desultory exploration for years until a gold nugget was found in 1882 on the coast near Roebourne, 150 kilometres west of Port Hedland and about 1,250 kilometres north of Perth. Exploration was focused on the less mineralized northern and central parts of the state for several years and resulted in the discovery of a showing at Halls Creek three years later. Located about 225 kilometres northwest of Telfer, it became the scene of the short-lived Kimberley gold rush. Other gold prospects were found at Pilbara Creek and Ashburton River, between Telfer and the coast, in 1888 and 1889. The first success in the southern part of the state, in what became the heart of the Western Australia gold district, was the Southern Cross goldfield in 1887. Situated about 385 kilometres northeast of Perth, it triggered a small gold rush named Yilgarn (“Yilgarn,” the Aboriginal word for white quartz, is now applied to the Western Australia Shield). An underground mine with a stamp mill was in production by the next year. Southern Cross was followed by a series of small rushes, the first being the Murchison gold rush, following the Cue discovery in 1888. In the years that followed, dozens of gold towns flourished, only to be abandoned when the mines went dry and the gold fever moved on. The next discovery at Coolgardie in 1892, located in the desert 200 kilometres east of Southern Cross and about 600 kilometres northeast of Perth, stimulated the largest rush yet. It was initiated by two experienced prospectors from Victoria – Arthur Bayley and John Ford – who happened to camp by a waterhole that lay within a rich patch of alluvial gold. After scouring the ground for nuggets and specks (a mode of prospecting called “specking”), they found a quartz vein that was the source of the alluvial gold. After crushing loose rock from the outcrop, they soon took 554 ounces (worth at least £2,200) to the bank. However, the two prospectors did not appreciate what they had and sold an 83 per cent interest in their claims for only £6,000. The new owners made a deposit of only £100 and the balance came from part of the almost 26,000 ounces that was recovered from 48 tons the next year. The Bayley’s

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Reward Mine made Bayley a wealthy sheep farmer back home in Victoria. When three Irishmen, Paddy Hannan, Tom Flanagan and Daniel Shaw, recovered 100 ounces of alluvial gold at Mount Charlotte in 1893, only 50 miles northeast of Coolgardie, it led to the largest rush in Australian history and the establishment of the town of Kalgoorlie. It also erased all doubts about the gold potential of Western Australia, where the population increased from almost 50,000 in 1891 to 100,000 in 1895, and over 184,000 in 1901. According to Kimberly (1897), “the excitement drew men from all over the world … Africa and America, Great Britain and Europe, China and India, New Zealand and the South Sea Islands, and from the mining centres in Queensland, New South Wales, Victoria, Tasmania and South Australia.” Notable events included the completion of a telegraph line from Adelaide to Perth in 1877 and the Great Southern Railway in 1899. Signalling success, a stock exchange was formed in Perth in 1888 (Blainey, 1963). Both Western Australia and British Columbia, located on their respective west coasts and geographically remote, only agreed to join if they were linked by a railroad to the the centres of government and industry. Because the California and Australia gold rushes occurred simultaneously, it was unavoidable that they would significantly impact world trade. Their combined gold output from 1848 to 1858 was about $1.2 billion (£240 million), an annual average of about $120 million, compared to the total global stockpile accumulated over the millenia of only $1.5 billion. Annual global production of gold prior to this decade had only averaged about $40 million. The fact that the value of money did not seriously decline under this flood of new gold came as a great surprise to most economists and philosophers. The reason it did not was because it expanded commerce and trade. The two gold producing regions that were previously remote and sparsely populated became prosperous, while an adequate supply of gold stimulated international commerce between manufacturing and developing countries. Another benefit was that the industrial class achieved more purchasing and political power – a potent factor in the trend toward democracy (Rickard, 1945).

Acknowledgments Except where noted, most of the information in this article is derived from Blainey (1963) and Rickard (1945). CIM

References Blainey, G. (1963). The rush that never ended: a history of Australian mining. Melbourne: Melbourne University Press, 414 p. Kimberly, W. B. (1897). History of West Australia: a narrative of her past together with biographies of her leading men, p. 322. Rickard, T. A. (1945). The romance of mining. Toronto; The Macmillan Company of Canada Limited, p. 179-210. Stone, D. I. and MacKinnon, S. (1976). Life on the Australian goldfields. Richmond: Methuen of Australia, 214 p.

HISTORICAL

metallurgy

A hundred years of fossil fuels research at CANMET Part 1: 1907 to the 1950s By David Reeve, Former director of CANMET Research Laboratories and director-general, Energy Research and Development, NRCan Programs related to the recovery, processing and utilization of fossil fuels at CanmetENERGY, the agency for clean energy research and technology within Natural Resources Canada (NRCan), trace their origins back to 1907, to the establishment of the Fuels and Fuels Testing Division of the Mines Branch in Ottawa. This two-part series presents an overview of the main fossil fuel technology programs since that time, and their impact on the development of fuel and energy use in Canada.

Historical development of the organization In 1909, a Fuels Testing Station was built on Booth Street in Ottawa. Having outgrown its premises, the division moved into the Fuel Research Laboratories in 1929 and less than a decade later, the building needed to be expanded. Throughout the years, the division also underwent several name changes: Fuels Division in 1949; Fuels and Mining Practice in 1959, to acknowledge its contribution to mining research; and with the two disciplines growing further apart, the division split in 1967 and adopted the names Fuels Research Centre and the Mining Research Centre. In 1968, the two centres moved to the newly built Bells Corners Complex west of Ottawa. A separate division, the Metals Reduction and Energy Centre (MREC), was created a year later to put greater emphasis on the evaluation of Canadian coal resources and to seek solutions to the high cost of energy in metal ore reduction. MREC also included the Mines Branch’s Western Regional Laboratory (WRL) at Edmonton, where work on coal preparation and coal pipeline transportation was being carried out. In 1975, the Mines Branch changed its name to the Canada Centre for Mineral and Energy Technology (CANMET) and, in recognition of the rapidly emerging importance of energy technologies following the 1973 Energy Crisis, the word “fuels” was dropped from the divisional title and replaced with “energy” when the Fuels Research Centre and MREC were combined to form the Energy Research Laboratories (ERL). With increasing interest in energy forms beyond fossil fuels, NRCan technical programs on energy efficiency and alternative energy, including at the research centre at Varennes, Quebec, were added to ERL’s responsibilities to form the CANMET Energy Technology Centre (CETC) in 1995. CETC has since been rebranded as CanmetENERGY and develops technologies for energy solutions in buildings and communities, clean fossil fuels, bioenergy systems, renewable energy, industrial processes, oil sands issues and in the transportation sector.

The early years (1907 to 1920) In 1907, it was thought that peat could used as an alternative to what was considered to be the limited deposits of bituminous coal in the United States, making it a candidate as a fuel for gas and electricity production. The Fuels and Fuels Testing Division began investigating the production and utilization of peat, and an experimental plant was established at the Alfred Bog, east of Ottawa, to harvest it. A gas producer fuelled with the dried peat was built on Booth Street. Higher than expected costs to produce the peat, however, led to a shift in interest to the use of low-rank coals, such as Alberta sub-bituminous coals, for making producer gas. The Fuels and Fuels Testing Division was also charged with surveying the coal deposits of Canada. It took over a systematic investigation of the properties of Canadian coals that had been started by the Geological Survey. A final report entitled “The Coals of Canada,” covering 67 types of coal from Vancouver Island to Cape Breton, was published between 1912 and 1916 in seven volumes. From 1916 to 1923, combustion tests on Canadian coals dealt with the refinements of fuel use for house heating and steam raising, using a 200 hp boiler that had been installed in the Fuels Testing Station on Booth Street. The first “Analysis of Canadian Fuels” was published in 1918. Interest in the properties of Canadian oil shale and oil sands deposits grew when it was thought that oil production in North America had peaked. The destructive distillation of oil shales, mainly from New Brunswick, was carried out with retorts used earlier for lignite carbonization. However, it was concluded that these deposits were of too low an average grade to be economically important.

CanmetENERGY, Bells Corners Laboratories

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HISTORICAL

metallurgy The first mention of the oil sands being a potentially valuable energy resource for Canada was in a 1912 Mines Branch publication. S. C. Ells of the Mines Branch surveyed outcrops of oil sands on the banks of the Athabasca River in northern Alberta; a “Summary Report on Bituminous Sands of Northern Alberta” was published in 1913. By 1917, work on oil sands had fallen within the purview of the Fuels and Fuels Testing Division, and an oil analysis laboratory was established.

The 1920s to the late 1930s Although interest in finding an economical use for peat as a fuel continued throughout the 1920s, the main focus of the Fuels and Fuels Testing Division, within the budgetary restraints of the times, was in the monitoring of the quality of Canada’s fossil fuel resource base at a time when imports of oil products for use in transportation and heating were increasing. The division’s coal carbonization program focused on the production of smokeless domestic fuel by low-temperature carbonization, and coals from Nova Scotia were sent to Wales for commercial-scale tests. Although the quality of the domestic fuel produced was satisfactory, the process was not found to be economical for Canadian conditions. In 1930, with the realization that coke quality can only be determined by carrying out tests on coke produced on a relatively large scale, a coke oven, heated by producer gas, was built on Booth Street that could accommodate two tons of coal charge. Proving to be too expensive to operate, it was replaced by two 500-pound ovens later in the decade. The ovens were used to evaluate the potential of Canadian metallurgical coals for making blast-furnace coke and to investigate the manufacture of domestic coke as a replacement fuel for imported anthracite. In order to find ways to replace thermal coals imported from the United States, a program was initiated to evaluate the combustion properties of Canadian coals using a new pulverized fuel boiler. A series of 130 separate tests of Canadian coals was carried out between 1930 and 1939. The program on the retorting of oil shales was expanded to include samples from Saskatchewan and Manitoba. This was a relatively large-scale and costly program originally aimed at finding an alternative for the dwindling production in the southern Ontario oil fields. However, the division again concluded that because of the cost of heating up large amounts of shale in the retorting process, oil from this source would not be able compete with imported oil. In 1925, 375 tons of oil sands were used for road paving tests in Jasper, Alberta. The main obstacle in processing the oil sands, however, proved to be separation of the bitumen from the sand. Oil sand from a quarry operated by the Fuels and Fuels Testing Division was successfully separated into bitumen and sand at an adjacent site using hot water and flotation, a precursor of the Clark “Hot Water” process that is still used commercially today. In 1929, work first started on bitumen upgrading by hydrogenation, a catalytic high-pressure process for increasing the hydrogen to carbon ratio in

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hydrocarbon materials which had first been developed by Bergius in Germany earlier in the century.

The World War II years to the early 1950s Programs during the war years focused on special projects essential to the war effort, including investigation of the use of activated carbon in gas masks and the possibility of using Turner Valley (Alberta) crude oil as a source of aviation fuel. In 1943, Canada was faced with an emergency fuel situation and the utilization of peat gained attention once again. Greater use of the fuel at locations close to the deposits was encouraged by modifying conventional coal and wood-fired furnaces to burn the peat. Extensive physical and chemical evaluations of Canadian coals continued and the analytical data were compiled periodically in the “Directory of Canadian Coals.” In 1939, a request was received from the Crow’s Nest Pass Coal Company of British Columbia to observe tests of their coals in Curran-Knowles sole-heated ovens in Illinois. The swelling characteristics of this coal had precluded the use of conventional (and more expensive) slot-type ovens. Subsequently, a battery of 52 Curran-Knowles ovens was constructed at Michel in the Crow’s Nest Pass to produce coke for the lead smelter at Trail. Extensive studies were also carried out in the Fuels Laboratory during this period on the briquetting characteristics of low-rank coals to improve their storage and handling properties. The coal combustion program continued to run parallel to the carbonization activities. An experimental locomotive-type stoker-fired boiler was acquired and was used during the war to evaluate low-smoke-producing Canadian coal for railway use as a substitute for imported Welsh and American anthracites. The division provided valuable technical advice to the Dominion Coal Board, which had been established in 1947 to provide subventions for moving coal from the Maritimes and the western provinces to markets in Ontario and Quebec. Pioneering research on the conversion of coal to liquid fuels, which had been started before World War II, was revived in 1942 and shifted to study oil sands bitumen separation and refining. The division became involved in the oil sands plant of Abasands Oils Limited, north of Fort McMurray, carrying out analyses of all of the samples and assuming responsibility for setting up pilot-scale bitumen processing equipment. Separation of the bitumen and sand was to be effected by a “cold water” process using kerosene as a diluent. However, it was later found that the cold water separation process was too sensitive to minor changes in the amount of gravel and clay in the Abasands feed. Unfortunately, the Abasands plant was destroyed by a fire in 1945 and all records were lost. Following this setback, a pilot-scale flowsheet was developed at the Mines Branch Booth Street laboratories to separate bitumen from sand in standard ore-dressing equipment, followed by upgrading by hydrogenation and catalytic cracking to produce commercial-specification fuels. The Fuels Division staff presented the comprehensive results at the Athabasca Oil Sands Conference in Edmonton in 1951. CIM

TECHNICAL ABSTRACTS

CIM Grassroots exploration in remote areas: An example from the Kuene region, Namibia R. J. Bowell, SRK Consulting, Cardiff, U. K., L. Egorova, D. Gurevich, V. Sedov, and A. Mikhailov, SRK Consulting, Moscow, Russia, D. A. Holwell, SRK Exploration Services, Cardiff, U. K.; University of Leicester, Leicester, U. K., and P. Kordi, Tellur Company, St. Petersburg, Russia

Fibrous minerals in ultramafic nickel sulphide ores M. Xu Z. Dai J. Dong F. Ford, and A. Lee Vale Base Metals Technology Development Mississauga Ontario

journal

ABSTRACT Reconnaissance exploration in the Kuene region Namibia has included geological mapping, soil and stream sediment geochemistry, and ground geophysical methods. Copper mineralization occurs within a well-defined belt with north-northwest to south-southeast trend, parallel to the regional strike of the sedimentary rocks. The occurrences vary in size but are generally stratabound. The mineralization is centred on the transition from calcareous shale and interbedded limestone, through carbonate rocks, to quartzite. Geochemical anomalies have been identified correlating to induced polarization (IP) and magnetic anomalies. The anomalies identify one potential metallogenic zone more than 17 km in strike length. RÉSUMÉ Une exploration de reconnaissance dans la région de Kuene en Namibie comprenait de la cartographie géologique, de la géochimie de sols et de ruisseaux et des relevés géophysiques au sol. Des indices de minéralisation de cuivre se trouvent à l’intérieur d’une ceinture bien définie à tendance nordnord-ouest à sud-sud-est, parallèle à la direction des roches sédimentaires. Les indices sont de taille variable mais ils sont généralement stratoïdes. La minéralisation est centrée sur une transition de shales calcareux interlités avec des calcaires, passant à des roches carbonates et à des quartzites. Des anomalies géochimiques ont été identifiées et elles sont corrélées à la polarisation induite et à des anomalies magnétiques. Les anomalies identifient une zone métallogénique potentielle sur une longueur de plus de 17 km selon la direction. ABSTRACT As high-grade nickel sulphide ores are being depleted and processing laterite ores continues to have challenges, the future of nickel extraction lies in low-grade ultramafic ores. Canada has large resources in the Thompson Nickel Belt. Most of the deposits are high tonnage and open pittable, but have high MgO content. The main challenge in processing low-grade ultramafic ores is the presence of serpentine. Chrysotile, one of the three polymorphs of serpentine, is the most common form of asbestos. In addition, the high slurry viscosity associated with ultramafic ores makes grinding and flotation possible only at a very low solids percentage. RÉSUMÉ À mesure que les minerais de sulfure de nickel à haute teneur s’épuisent et que le traitement des minerais latéritiques continue à poser des défis, l’avenir de l’extraction du nickel résidera dans des minerais ultramafiques à faible teneur. Le Canada possède de vastes ressources dans la ceinture de nickel Thompson. La plupart des gisements sont à volume élevé et exploitables à ciel ouvert mais leur teneur en MgO est élevée. Le principal défi dans le traitement de minerais ultramafiques à faible teneur est la présence de serpentine. La chrysotile, l’un des trois polymorphes de la serpentine, est la forme la plus habituelle d’amiante. De plus, la viscosité élevée de la boue associée aux minerais ultramafiques fait que le broyage et la flottation ne sont possibles qu’à de très faibles pourcentages de solides.

A revised dipper-ground equilibrium derivation for shovels operating in oil, sand, and soft ground T. G. Joseph, University of Alberta, Edmonton, Alberta, and N. Shi, JPi, Edmonton, Alberta

ABSTRACT A revised equilibrium approach to evaluate dipper–ground interactions during the dig cycle of ultra-class mining shovels operating in soft unblasted uniform ground conditions is presented. A review of previous approaches, leading to an outline of the modifications and ground condition considerations, is made in support of the reasoning and basis for the derivation presented. An analytical solution is provided to the scenario of a cable shovel dipper digging in soft ground material such as oil sands. RÉSUMÉ Une méthode révisée d’équilibre pour évaluer les interactions benne-sol durant le cycle de creusage des pelles minières de taille géante travaillant dans des conditions uniformes de terrain mou non dynamité est présentée. Une révision de méthodes antérieures, conduisant à une vue d’ensemble des modifications et tenant compte des conditions du sol, est effectuée pour soutenir le raisonnement et le fondement de la dérivation présentée. Une solution analytique est fournie au scénario d’un godet de pelle à câbles creusant dans un sol mou, tel que les sables bitumineux.

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

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TECHNICAL ABSTRACTS

canadian metallurgical quarterly Eh-pH stability diagrams for analysis of polyamine interaction with chalcopyrite and deactivation of Cu-activated pyrrhotite C. Tukel, Izmir Metropolitan Municipality, Division of Information Technologies, Izmir, Turkey, S. Kelebek, Queen’s University, The Robert M. Buchan Department of Mining, Kingston, Ontario, and E. Yalcin, Hemlo Mine – Williams Operations, Barrick Gold Corp., Marathon, Ontario

ABSTRACT Diethylenetriamine (DETA) and/or triethylenetetramine (TETA) are reagents that can generally be categorized under “flotation modifiers.” These polyamines are known to be effective for the deactivation/depression of pyrrhotite that is present in Canadian nickel-copper sulphide ores in large quantities. Recent bench scale testing on some of these complex ores indicated that chalcopyrite flotation can also be adversely affected under certain conditions involving polyamines. This observation is consistent with specific affinity of these reagents towards copper ions. In general, DETA shows no significant depressant action on chalcopyrite while TETA’s promotion of hydrophilicity for this mineral has been observed even in the presence of xanthate. This prompted an investigation on thermodynamic equilibria involving these polyamines and copper ions. The results serve a useful purpose to identify conditions for deactivation phenomena. CuDETA2+ and CuTETA2+ chelates as products of sequestration have large predominance areas covering a wide range of redox and pH conditions, where copper xanthate species are not stable, especially in the presence of TETA. RÉSUMÉ Le diéthylènetriamine (DETA) et/ou le triéthylènetétramine (TETA) sont des réactifs que l’on peut généralement catégoriser comme “modificateurs de flottation”. On reconnaît que ces polyamines sont efficaces dans la désactivation/dépression de la pyrrhotine que l’on retrouve en grandes quantités dans les minerais canadiens de sulfure de nickel-cuivre. Des essais récents à l’échelle du laboratoire avec certains de ces minerais complexes ont indiqué que la flottation de la chalcopyrite pouvait également être affectée négativement sous certaines conditions impliquant des polyamines. Cette observation est compatible avec l’affinité spécifique de ces réactifs envers les ions de cuivre. En général, le DETA ne montre aucune action déprimante d’importance sur la chalcopyrite alors que l’on a observé la promotion de l’hydrophilie du TETA pour ce minéral, même en présence de xanthate. Ceci a suggéré une investigation des équilibres thermodynamiques impliquant ces polyamines et les ions de cuivre. Les résultats ont pour but utile d’identifier les conditions des phénomènes de désactivation. Les chélates CuDETA2+ et CuTETA2+, comme produits de la séquestration, ont de grandes régions de prédominance couvrant une grande gamme de conditions redox et de pH, où les espèces du xanthate de cuivre ne sont pas stables, particulièrement en présence de TETA.

Mineral liberation and particle breakage in stirred mills R. Roufail and B. Klein, Norman B. Keevil Institute of Mining Engineering, University of British Columbia, Vancouver, British Columbia

ABSTRACT The study of particle breakage mode versus mill operating parameters is addressed. The results of an investigation that assesses how operating conditions can affect trans- versus inter-granular breakage are presented. It is deduced that with the standard stirred mill operation, the breakage mode is primarily abrasion. Breakage mode is characterized using morphology analysis as a tool. Accordingly, if mill operation is controlled such that compression and impact breakage modes are imposed, then there will be a potential to impose inter-granular breakage rather than trans-granular. RÉSUMÉ On aborde l’étude du mode de fracture de particule en relation avec les paramètres d’opération du broyeur. Cet article présente les résultats d’une investigation qui évalue comment les conditions d’opérations peuvent affecter la fracture transou inter-granulaire. L’opération normale d’un broyeur agité donne un mode de fracture principalement par abrasion. Le mode de fracture est caractérisé par analyse de morphologie, comme outil. Donc, si l’opération du broyeur est contrôlée de telle manière que l’on impose un mode de fracture par compression ou par impact, il sera alors possible d’imposer la fracture inter-granulaire plutôt que trans-granulaire.

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

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INNOVATION SHOWCASE

»

CONMICO INC. ConMICO Inc. of Concord, Ontario, with more than 41 years of experience, specializes in custom-made, high-pressure pump systems for mining applications. Their products include durable, light-weight grouting and cement-injection plants for use in soil consolidation, grout jetting to 10,000 psi, pile formation, tunnel forming and repairs, forming water curtains, backfilling, and grouting of cracks in tunnels and mine shafts. For pump systems, ConMICO Inc. manufactures high-speed colloidal mixers, double mixers, agitators, as well as accessories, including packers, valves and high-pressure fittings. Shotcrete and concrete pumps are also available. In addition, ConMICO Inc. engineers and manufactures high-pressure water jet systems up to 50,000 psi and up to 1,200 hp for jet boring, hydro-fracturing of rock, underground hydraulic power units, coating removal, de-scaling and cutting.

S&C ELECTRIC COMPANY Who Is S&C Electric Company? S&C Electric Company is a global Smart Grid leader, applying its century-long history of innovation to create a more intelligent grid. S&C has deep expertise in electric power switching and protection, and power quality technologies, as well as the control and communication systems needed to make the grid smarter, a combination unrivaled by other suppliers. S&C started with a single product: the Liquid Power Fuse, invented in 1909. It was the first reliable high-voltage power fuse, and helped pioneer the widespread adoption of outdoor distribution substations. From that beginning, S&C’s line of unique products and comprehensive, expert services has broadened greatly, but always within the field of electric power switching, protection and power quality. In-depth specialization is an enduring tradition at S&C.

The company’s latest project was with Codelco for a fully automated rock hydro-fracturing machine for a high-production mining requirement. The yield of ore was doubled using only half the dynamite. Also, by doing this preconditioning of the rock formation, tension was released in the hard rock so that the blasting operation was more controlled and safer.

S&C is a privately held company headquartered in Chicago, Illinois. We have manufacturing and engineering facilities located in Milwaukee, Wisconsin; Orlando, Florida; Alameda, California; Canada; Mexico; Brazil; the United Kingdom; and China. S&C offers utility-grade equipment and aftersale service that is second to none.

ITW DEVCON Revolutionizing wear & abrasion protection New DFense Blok wear and abrasion products from ITW Devcon are designed to outperform and outlast traditional wear and abrasion epoxies. » DFense Blok™ Wearing Compound provides exceptional impact and sliding abrasion resistance. » DFense Blok™ Surface Wetting Agent (SWA) ensures superior adhesion, even to vertical and overhead surfaces. » DFense Blok™ Fast Cure (FC) allows repaired equipment to be returned to service in 2 hours. » DFense Blok™ Quick Patch – the only ceramic bead-filled wear and abrasion resistant epoxy for emergency repairs. Watch our Impact Test Video www.devcon.com Contact your ITW Devcon representative today for more information 1-800-933-8266

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» INNOVATION SHOWCASE JENNMAR JENNMAR™ is a multi-national, family-owned company that’s leading the way in ground control technology for the mining, tunnelling and civil industries. JENNMAR™ knows it is important for our customers to have their supplier nearby, so they have put their plants where their clients operate. Jennmar of Canada Inc. has established their first bolt manufacturing plant in Sturgeon Falls, Ontario. The 50,000 square foot facility employs over 50 people and manufactures a full range of ground support products including rock bolts, cable bolts, washer plates and associated accessory items. State of the art equipment and stringent safety standards create a safe and efficient working environment. Within the area of research and development, Jennmar has focused on developing yielding bolts for dynamic and convergent ground conditions, specialty cable anchors for pre-stressed cable bolting. New formulations of resin products and our newest product, J-Crete™, are innovative solutions for tough environments and conditions. World Class… there is no better way to describe JENNMAR™

DELSAN-AIM ENVIRONMENTAL SERVICES INC. Delsan-AIM Environmental Services Inc. offers complete decommissioning services, which include: complete or partial demolition; hazardous materials management; asbestos and PCB abatement; asset recovery (value assessment of re-usable equipment; extensive network of investment recovery resellers; selling, dismantling, coordination and transport of reusable equipment); scrap handling to maximize value to reduce decommissioning costs to the client; complete bonding and insurance; industrial cleaning; tank removal (above ground and underground); site remediation; in-house environmental, health and safety professionals. Delsan-AIM has successfully completed a wide range of projects that include mines, refineries, pulp & paper mills, manufacturing plants and utility installations. With our own fleet of sophisticated and well-maintained equipment, our demolition services meet the industry’s highest performance standards. We prepare for the future by reinventing the traditional decommissioning market through our unequalled expertise in environment, health & safety, planning and professional project management.

CANAM Your building. Our solution. Canam meets the needs of the mining market by providing optimized construction solutions. The Murox panelized building system is the most efficient design-build solution on the market today for the construction of commercial, industrial and institutional buildings. Because of its unique design, the Murox building envelope system can be erected in half the time it takes to erect a conventional structure. The Econox multi-functional prefabricated building system allows installation, expansion and relocation of your building in a matter of hours. Composed of light and sturdy load-bearing panel sections, either insulated or non-insulated, Econox can be erected on simple foundations by a small crew and a light crane. Ideal for companies in the mining and forestry industries or for large construction projects, the Murox panelized building systems and the Econox fold-away system allow delivery and installation of the building envelope to be completed in record time.

112 | CIM Magazine | Vol. 7, No. 1

INNOVATION SHOWCASE

»

MAGNA ELECTRIC CORPORATION Magna Electric Corporation is your turn-key electrical projects partner. We offer an innovative approach to your electrical needs. “One Source, One Solution” means that MEC can take your project from inception to completion. We are able to manage all aspects of the project as we can provide engineering, procurement, fabrication, construction, management and commissioning. Our holistic project approach provides our customers with cost savings, timeline management, consultation consolidation, risk mitigation and seamless integration between the various stages of the project. Our engineers and technicians are COR certified and MEC employs the largest team of NETA certified technicians in Canada. With our new facilities, we now operate more than 60,000 square feet of integrated manufacturing space and have offices across four provinces. Our staff is trained and equipped with cutting-edge technology to ensure a safe construction environment. MEC offers what others don’t: on-time and on-budget projects with single-source accountability.

GLADIATOR EQUIPMENT INC. Gladiator Equipment Inc. is a privately owned Canadian company that provides underground mining equipment and services as well as a full range of heavy equipment and support services for surface, open-pit mines and the Alberta Oil Sands. Gladiator also sells and services additional equipment required for pipeline, oilfield and general construction. Their professional team specializes in providing exceptional service and high-quality equipment, parts and components. Gladiator Equipment Inc. prides themselves on the importance of industry knowledge and experience. They offer a full range of products and services that provide solutions to the rigorous mining applications commonly encountered in the Canadian mining industry. Having built this company on a foundation of hard work and first-class service, Gladiator professionals look forward to meeting the ever-changing challenges that continue to present themselves throughout the mining industry.

VERTICAL BUILDING SOLUTIONS Vertical Building Solutions (formerly CoverAll North) is Western Canada’s most respected provider of pre-engineered tensioned fabric structures, having more than 15 years of experience in Fabric Building Construction and over 1,000 buildings completed. From fracsand storage and temporary or permanent shop and warehouse space, to sports centres and remote housing, Vertical has the solutions. Vertical’s new line of Modulated Building Systems are: faster – 50% less time; simpler – fewer contracts; stronger – resist natural disasters; economical – less than conventional; extremely durable – last over 100 years; and easily relocatable. Vertical Buildings offers professional turn-key solutions and quality, on-time, on-budget service from people who know firsthand the unique challenges of living and building in the North.

February 2012 | 113

» INNOVATION SHOWCASE

SANDALE Sandale Utility Products — “Everything HDPE” The core of Sandale’s HDPE group was formed when EMCO acquired Sandale Utility Products in 2003. Sandale was originally established in 1990 as a supplier of polyethylene pipe and fittings, and was located in Ontario, Quebec, Nova Scotia, New Brunswick and Alberta. Since the acquisition, Sandale has expanded into 10 locations and provides products to a variety of markets, such as industrial, municipal, environmental, telecommunications, gas gathering and gas distribution. Polyethylene pipe still remains our specialty. Sandale, however, also carries a variety of other products and provides services related to polyethylene pipe and pipe fusion, such as on-site and classroom-fusion training, polyethylene fabrications, on-site fusion services, fusion equipment sales, rentals and maintenance services. We at Sandale are excited about our future with the boundaries of our market expanding. We are expanding our office locations and improving our product line to meet the challenges and needs of our customers.

GIW Slurry, process and froth pumps 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 and services to provide just what its customers need: rugged costeffective pumps and services that extend pump life. One of GIW’s newest pump series is its Mill Duty Xtra Heavy (MDX) slurry pumps. At the heart of your facility, mill pumps can reduce operating costs when pump operating cycle times match scheduled mill outages. The MDX series pumps are specifically designed for the hard rock mining industry – meaning fewer production disruptions and increased operational efficiency.

AQUATECH Canadian owned and operated, Aquatech has full-service branches in Concord, Sudbury and Ottawa, Ontario, and maintains one of the largest portable rental pumping equipment fleets in the country. We offer a full-service sale and rental program, as well as full turn-key operations that include the installation and operation of dewatering, dredging and pumping systems – and we work the hours the industry works – 24/7. Specializing in construction and mine dewatering equipment and services: » Pumping equipment and systems for surface and underground mine dewatering » Dewatering discharge treatment and filtration » Industrial fluid and slurry product transfer » Tailing and sediment pond dredging » Mine sump pumps » HDPE pipe and fusing services » Temporary bypass pumping and discharge booster pump stations » Temporary fire pumps

114 | CIM Magazine | Vol. 7, No. 1

The company’s high-volume froth pump is designed to work with slurry processes that use froth to help separate materials during processing. The HVF is applicable in a wide variety of mining and processing industries, from oil sands and hard rock to phosphate plants.

INNOVATION SHOWCASE

»

DYNAMIC ROCK SUPPORT Dynamic Rock Support (DRS) is a global supplier of the D-Bolt, which is an energy-absorbing rock-bolt. The D-Bolt deforms at a high load and absorbs a significant amount of energy with little displacement. The D-Bolt is sufficient for underground mines with challenges related to squeezing ground, rock bursts and/or deformation, and is easy to install with standard equipment. The D-Bolt also provides excellent static reinforcement and can be used as a single pass in underground mines or tunnels. DRS is headquartered in Trondheim, Norway, with local presence in Canada and Australia. Please contact us in the exhibitor area. We will be happy to demonstrate our product.

IN THE NEXT ISSUE: A special focus on Latin America FEATURE Riesgos y recompensas: the emerging jurisdictions of Ecuador and Colombia PROJECT PROFILE Tahoe Resource’s Escobal silver project advances in Guatemala

GUEST COLUMN Developing Latin American mining projects through Canadian capital markets

EYE ON BUSINESS The regulatory and legislative changes affecting the resource sector in Peru

STANDARDS Lithium brine projects and disclosure standards

ALSO IN THE ISSUE An interview with Barrick Gold’s COO Peter Kinver

Look for the official CIM CONFERENCE & EXHIBITION 2012 SHOWGUIDE included with the March/April issue.

February 2012 | 115

professional directory

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Duberco inc. Schefferville, Quebec, Canada SERVICING THE DRILLING AND MINING INDUSTRY Petroleum products and lubricants www.duberco.com Email: duberco@videotron.ca Contact: Carl Bergeron, G.M. (514)694-7127 or fax: (514)694-9107

Corporate Headquarters Tel :250.767.6457 Fax: 250.767.6459 www.fullforcedrilling.com

116 | CIM Magazine | Vol. 7, No. 1

product files

171 Hemlock Street TCH Highway, Exit 191 Lower Woodstock, NB E7M 4E6 Canada

888.575.2275 www.GavazziOnline.com Gavazzi@CarloGavazzi.com

Tel: (506) 328-4381

ADVERTISERS

27 19 45 63 70 41 38 OBC 3 IBC 39 51 36 22 23 35 25 37 93 29 17 13 11 43 47 21 15 91 56 66 28 31 52

3D-P ABB AMC Consultants AMEC Ausenco PSI BBA BC Government Bestech Boart Longyear Breaker Technology Ltd. Cameco Cattron Group International CK Logistics ConMICO COREM DMC Mining Services Dumas Endress+Hauser Enterprise Saskatchewan Finning Flanders Electric FLSmidth Gekko Systems Golder Associates HAZCO Environmental Services Ltd. (a CCS Company) Immersive Technologies Pty. Ltd. Imperial Oil Independent Mining Consultants Industrial Equipment Manufacturing Ltd. Klohn Crippen Berger Knight Piesold Mammoet Canada West Met-Chem

7 30 34 9 49 33 59 57 IFC 44 55 24 111

Metso Minerals Industries Inc. Norseman Structures Norwest Corporation Petro-Canada Redpath Group Schneider-Electric Canada Inc. Snowden SRK Consultants SSAB Surecrete Tetra Tech WEI Inc. University of Alberta Innovation Showcase Aquatech Canam Canada ConMICO DELSAN-A.I.M Dynamic Rock Support GIW Industries Gladiator Equipment ITW Devcon Jennmar MEC (Magna Electric Corporation) S&C Electric Canada Ltd Sandale Utility Products (EMCO) Vertical Building Solutions

116

Professional Directory BBA Bioteq Environmental Technologies Inc. Duberco Inc Full Force Diamond Drilling GEM Systems Independent Mining Consultants Praetorian Construction Management Stedman

117

Product Files B.I.D. Canada Ltd. Carlo Gavazzi Canada Inc. February 2012 | 117

Death Valley Scotty: con man of the California desert By Correy Baldwin

I

Credit: Pomona Public Library

n February 1906, a prospector known as Death Valley Scotty had a weakness for public attention. In 1905, he Scotty set out into the California desert with several busi- broke the L.A.-to-Chicago train speed record. Reporters nessmen who wanted to see his gold mine before invest- flocked to the story, and Johnson met Scotty at the station at ing. This trip, however, was the last thing Scotty wanted. The the end of the journey, clearly impressed with the largertruth was, there was no gold mine – he was running a scam. than-life gold miner and adventurer. Johnson happily Scotty had a plan to keep from being found out. He handed over another $2,500. arranged for some friends to fake an ambush on his wagons It was in the following year that Scotty planned his illin the middle of the desert in order to frighten away the fated fake ambush in the desert, for which he was arrested. investors. When the All charges against him gang attacked, their were dropped on a drunken gunfire accitechnicality, but he had dentally hit Scotty’s been outed as a fraud. brother, seriously injurEven though Johning him. When Scotty son was one of those raced towards the “ambushed,” he stayed “attackers,” yelling at on as an investor, being them to stop shooting, endlessly intrigued, the ruse was up. impressed and amused Death Valley Scotty by the eccentric man. got through this When Johnson again predicament, as he did visited Death Valley in so many others. He was 1909, Scotty planned to a natural storyteller and deter the millionaire, performer, and a master who was in poor of charm, deception health, by putting him and persuasion. Armed through a few grueling with these skills and days in the desert. Death Valley Scotty, prospector and con man, sitting in his ‘castle’ in 1947. plenty of ingenuity, he It had the opposite had made a career out effect: Johnson’s health of conning investors to invest in his fake Death Valley Scotty improved and he stuck around for a month. Gold Mining Company. By now Scotty’s scam was obvious, but Johnson did not Prospecting was active in the Death Valley in 1900 and seem to mind – he had not just taken to Death Valley, but to wealthy businessmen were jumping to invest in the region’s Death Valley Scotty as well. A strange thing had happened: untold riches. Scotty capitalized on this, securing the back- the two had become lifelong friends. ing of a New York businessman by claiming that he had a Johnson and his wife Bessie spent the next 10 winters visgold mine. iting Scotty, eventually building a vacation home in the desert His attempts at prospecting were unsuccessful, but that – an extravagant and vast Spanish-style villa. Scotty spread did not stop him from swindling his patron out of $5,000 the story that the $2 million home was his, built with money over two years – without once sending any proof that the from his fabled gold mine. When Johnson heard this story, he mine existed. When his benefactor became suspicious, Scotty thought it was genius and he willingly played along, claiming took a train to New York promising to bring $12,000 worth he was merely Scotty’s banker. of gold dust. As luck would have it, it was “stolen” during the Johnson did indeed dedicate rooms for Scotty and also trip. The investor finally pulled out, but Scotty soon found built a ranch home for him not far away. The villa, where others, including a Chicago millionaire named Albert John- Scotty entertained guests with his wild stories, became son, whose $4,000 investment allowed the con man to live known as Scotty’s Castle, where he lived until his death in extravagantly. 1954. He is buried on a hill overlooking his castle. CIM

118 | CIM Magazine | Vol. 7, No. 1

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