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MAY/JUNE 2020 | MAI/JUIN 2020

The elements of hydrogen-powered mining With regulations being written, trials underway and companies considering adoption strategies, hydrogen's time may be here By Ian Ewing

30 Taking heat High-efficiency gensets, fuel flexibility and smart load-shedding help cut diesel needs at Agnico Eagleâ&#x20AC;&#x2122;s Meliadine cogeneration plant By Herb Mathisen

feature

40 Zeroing in on carbon As miners commit to reducing their carbon footprints, the scope of that commitment continues to grow By Cecilia Keating

May/June 2020 â&#x20AC;˘ Mai/Juin 2020 | 5

CIM MAGAZINE MAY/JUNE 2020 • MAI/JUIN 2020

in each issue 8 10

Editor’s letter

President’s notes

tools of the trade 12

The best in new technology Compiled by Tijana Mitrovic

developments 15

Opening the door to exploration in NWT By Tijana Mitrovic

COVID-19 scuttles SilverCrest mining deal By Carolyn Gruske

Companies face new cyber security threats during pandemic By Matthew Parizot

mining mentors 26

mining lore

Advice to young mining professionals from veteran mining executive Larry Clark

Over a century of giving By Tijana Mitrovic

By Tom DiNardo

column 28

Guidelines for remote site inspections

contenu francophone

By Avakash Patel, P.Eng.

energy efficiency 36

Expansion of a processing plant in Mali gave B2Gold the opportunity to reduce both operating costs and emissions by adding a solar plant to its Fekola operation By Lynn Greiner

Paying attention to process control can lead to significant savings for mineral processing plants By Carolyn Gruske

CIM news 47

Excellence in mineral processing was celebrated at the 52nd Annual Canadian Mineral Processors Conference awards ceremony

26 36

Table des matières

Lettre de l’éditeur

Mot du président

La récupération de la chaleur, une alliée pour amortir les investissements Par Herb Mathisen

article de fond 52

Pleins feux sur la neutralité carbone Alors que les sociétés minières s’engagent à réduire leur empreinte carbone, la portée de cet engagement ne cesse de croître Par Cecilia Keating

By Michele Beacom

Nous publions progressivement sur notre site Internet les articles du CIM Magazine en version française. 6 | CIM Magazine | Vol. 15, No. 3

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editor’s letter

Next steps

y eldest daughter was the first to spot them the other day on our way back home from some time in the park: A couple walking in the opposite direction each with an ice cream cone. All three of my kids knew immediately the origin of those treats, and we made a hard left turn. Our local ice cream shop had seized on the first warm sunny Saturday of the year to test the market. The owners had slid the freezer chests of ice cream to the front of the store. Masked and gloved servers were dishing out scoops to people, who were waiting at even intervals along the street. The sidewalk had been temporarily widened by the city, in place of curbside parking to accommodate the extra traffic. By regular standards, the selection was meagre, but, when you can’t have the experience of sampling the exotic flavours before ultimately settling on the chocolate you always get, there is not much point in carrying the extra inventory to support the pretense. After more than a month of constrained living, no one seemed too concerned whether an ice cream shop was an essential service. We opted to have cones for lunch and, along with a steady flow of others, rewarded this local institution for its ingenuity. A month prior, when the coronavirus wave first broke on North America, one of the backers of SilverCrest Metals’ boughtdeal financing balked at bankrolling the company’s development work. It was only one week before that the financers had agreed to buy $75-million worth of shares in the company. CIM Magazine editor Carolyn Gruske reached out to SilverCrest CEO Eric Fier for his take on the situation (“COVID-19 scuttles SilverCrest mining deal,” pg. 18). Problem solving is “in our DNA,” he said and gave a boost of confidence to his team who, he argued, would rise to the challenge.

This issue’s cover A Komatsu haul truck at Anglo American’s Mogalakwena Central Pit platinum mine. Courtesy of Anglo American

His response struck me as a bit of bravado at a time when equities traders along with everyone else were losing their heads, but his résumé was on his side and his message at that moment was reassuring. It also anticipated the current moment. Now, even if we have not completely settled on the methods, we have reached the consensus that, if we cannot go about life the way we did before, we must find some new way to live and work. That will come through the collective problem solving that re-imagines — at least for the foreseeable future — nearly every aspect of daily life, from frivolous trips for ice cream to the myriad processes to find, extract and move mineral resources around the world, to producing this magazine that relates those achievements. I am eager to see what we come up with.

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

Editor-in-chief Ryan Bergen, rbergen@cim.org Executive editor Angela Hamlyn, ahamlyn@cim.org Managing editor Michele Beacom, mbeacom@cim.org Section editors Carolyn Gruske, cgruske@cim.org; Matthew Parizot, mparizot@cim.org Editorial intern Tijana Mitrovic, tmitrovic@cim.org Contributors Tom DiNardo, Ian Ewing, Lynn Greiner, Cecilia Keating, Herb Mathisen, Avakash Patel Editorial advisory board Mohammad Babaei Khorzhoughi, Vic Pakalnis, Steve Rusk, Nathan Stubina Translations Karen Rolland Layout and design Clò Communications Inc., www.clocommunications.com Published 8 times a year by: Canadian Institute of Mining, Metallurgy and Petroleum 1250 – 3500 de Maisonneuve Blvd. West Westmount, QC H3Z 3C1 Tel.: 514.939.2710; Fax: 514.939.2714 www.cim.org; magazine@cim.org

Advertising sales Dovetail Communications Inc. Tel.: 905.886.6640; Fax: 905.886.6615; www.dvtail.com Senior Account Executives Janet Jeffery, jjeffery@dvtail.com, 905.707.3529 Christopher Forbes, cforbes@dvtail.com, 905.707.3516 Edyta (Edith) Dhillon, edhillon@dvtail.com, 905.707.3525 Subscriptions Online version included in CIM Membership ($197/yr). Print version for institutions or agencies – Canada: $275/yr (AB, BC, MB, NT, NU, SK, YT add 5% GST; ON add 13% HST; QC add 5% GST + 9.975% PST; NB, NL, NS, PE add 15% HST). Print version for institutions or agencies – USA/International: US$325/yr. Online access to single copy: $50. Copyright©2020. All rights reserved. ISSN 1718-4177. Publications Mail No. 09786. Postage paid at CPA Saint-Laurent, QC. Dépôt légal: Bibliothèque nationale du Québec. The Institute, as a body, is not responsible for statements made or opinions advanced either in articles or in any discussion appearing in its publications.

Printed in Canada 8 | CIM Magazine | Vol. 15, No. 3

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president’s notes

Being there I wrote this President’s Note before the COVID-19 pandemic appeared and I thought I would revisit and perhaps revise it based on what is happening today. Upon review, I decided not to. I have no medical knowledge that can provide you any advice on the current situation that you do not already have access to from countless other sources. So, I have left my final submission as CIM President to remind everyone of what a great industry we work in and that we will endure and continue to be a key driver in improving the quality of life of people around the world. Wishing you good health during these challenging times.

erzy Kosinski’s fascinating book Being There was made into an Academy Award-winning movie of the same name, featuring Peter Sellers as the lead character, Chauncey Gardiner. Chauncey had a particular area of expertise (gardening) but one day was somewhat inadvertently sent out into the complex world to cope. I can relate to Chauncey Gardiner. My own background has been in mine contracting and mine development, certainly a specialized area of mining, but when I took on the role of CIM President (a one-year term, which in reality is three years plus), I was given access to the full breadth of our mineral and mining industry. It has been a whole new phase of learning in my life. It has been a great opportunity to expand my own 10 | CIM Magazine | Vol. 15, No. 3

range of knowledge, and I got to practise a little bit of French along the way, as well. I used the title “Being There” for another reason. My own learnings, and my small contribution this year, have been derived from being there – from visiting branches and conferences and events, interacting with societies, actively listening and trying to best understand the challenges and success that each and every CIM constituent faces. Being there has been inspiring for me, as has meeting great people who have a bias for action and know-how to get the right things done. I have learned a lot this year and here is what I know. I know that CIM is a community of incredibly smart, passionate and innovative people who want the best for Canada and the world and who know one way to do that is through our mining and mineral industry. They work hard for what they believe in and truly make a difference in our industry and in our society. I know that Canada is fantastic. I guess I already knew that, but the opportunity to visit so many communities, and so many great people, across the country has been the highlight of my term. Because even though Canada is an incredibly diverse country from a geographic perspective, what makes Canada special is not its amazing vistas but its amazing people. I know and understand that the mining industry is playing and will play a pivotal role in the future of the world. Maybe it sounds like a brash statement, but the metals and minerals that we produce will be a key part of the solution to climate change, world hunger and many of the other challenges that face us on a global scale. Doesn’t it feel good to be part of the solution? I know that Canada is a leader in the world when it comes to our industry. Contrary to popular belief, leadership isn’t derived from being the largest producer or having the biggest GDP or being the biggest company. Leadership is about setting examples and walking the walk for things that matter the most, like protecting our people, protecting our environment, practising diversity and inclusion. In these areas and more, Canada will lead our global industry to a place where it needs to be: one of social acceptance and a driver of a better quality of life for all. And we all know the world can always use a little more Canada. And I know CIM plays an important role in all this. By curating leading edge knowledge, establishing a robust network, and improving public awareness of our industry, we are enabling the Canadian mining industry to become what it needs to be, a global leader where it matters most. And in the process, making our kids and grandkids proud of us. How’s that for being there?

Roy Slack CIM President

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tools of the trade

Courtesy of Outotec

Carbon containment Outotec’s CarbonSense is a carbon monitoring system designed to minimize gold solution losses from carbon-in-pulp and carbon-in-leach during gold extraction. The CarbonSense system consists of two measurement probes, placed directly in the carbon-containing and carbon-free areas of the slurry tank, which use electrodes to continuously measure carbon levels throughout the tank. “Since the activated carbon increases the slurry’s conductivity, the carbon concentration can be measured in real time by comparing the results from the two probes,” Peter Blanz, product manager of intelligent instruments at Outotec, told CIM Magazine. “This makes the measurement’s frequency and reliability much higher than traditional methods that involve taking a sample of the slurry.” According to Outotec, CarbonSense is fully automatic and easy to maintain.

Courtesy of Exyn Technology

Intelligent flying Exyn Technology’s ExynAI is a flight guide software designed to make aerial robots and drones autonomous, allowing them to fly in complex environments without a pilot or GPS. ExynAI’s software algorithm uses light detection and ranging (LiDAR) along with 3D mapping to determine and map safe pathways for vehicle travel, producing optimal flight trajectories, according to Exyn Technologies. “This robot is a self-contained system that can intelligently understand where it is in the environment in real time,” Raffi Jabrayan, director of markets and industries at Exyn Technologies, told CIM Magazine. “Even if the environment is changing, [it can] safely navigate a complex mission that you might prescribe to it, without having any input from the human beyond the initial mission.” ExynAI is “platform agnostic” and is designed to be compatible with multiple hardware and software options.

Minetell Technologies has refocused its signature risk management platform to measure and monitor workplaces’ risk exposure and control performance for COVID-19. The new COVID-19 platform facilitates personnel screening to detect possible cases and evaluates control assessments, such as handwashing and distancing, for efficiency. According to Minetell Technologies, once the assessments are complete they are sent directly to decision makers, so they are able to address any issues quickly and reliably, thus reducing the chance of spread. “The problem we’re solving at Minetell is getting reliable information into the hands of decision makers,” Michael Hartley, president and CEO of Minetell Technologies, told CIM Magazine. “We’re still solving that problem, but [now] we’re doing it in the context of COVID-19, which helps employers, employees and their families know how safe their workplaces are right now.”

12 | CIM Magazine | Vol. 15, No. 3

Courtesy of Minetell Technologies

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tools of the trade

Kovatera specifically designed its new battery-powered, underground mining vehicle, the KT200e, “from the ground up.” The KT200e’s modular frame allows the vehicle to be transported underground in the “smallest of cages,” avoiding costly underground commissioning. According to Kovatera, miners can use the KT200e to perform specific jobs, such as scissor lifts and aerial booms. “A major feature of our battery options is to fit vehicles with a standard 44kwh battery,” Will Gove, general manager of Kovatera, said. “With this configuration, we can offer customers a battery size and range that fits their needs without additional capital spend.” The KT200e’s batteries have a full charge time of 1.5 hours, with a battery life of seven to nine years. They can be equipped with an additional 25-kilowatt, 600-volt charger.

Adaptable automation Sandvik has launched AutoMine for trucks, an autonomous ramp haulage application that miners can use both underground and on the surface. AutoMine allows trucks to switch from underground to surface navigation in real time, which Sandvik says helps minimize equipment damage by up to 50 per cent and optimizes efficiency by up to 30 per cent. “The system uses a seamless automatic handover between the underground and surface positioning system where trucks keep moving without stopping at the portal,” Jouni Koppanen, product line manager of underground automation at Sandvik, told CIM Magazine. “After dumping, they immediately continue with the next production cycle to get another load from underground.” AutoMine eliminates the need for in-person hardware changes to trucks and its associated risks, and can be supervised from remote locations.

Courtesy of Sandvik

Courtesy of Kovatera

Battery-powered trucking

RPMGlobal’s TALPAC-3D calculates truck and loader productivity and costs (TALPAC) by using a 3D user interface to simulate optimal haul routes and equipment selection. According to RPMGlobal, miners can import roads to the TALPAC-3D in order to create a 3D model of their entire haulage network and simulate the productivity of its material, equipment and roads. “It [can be] used in the long-term planning environment to calculate the productivity of various combinations of mining equipment to try and get the best match between loading unit and truck,” Adam Price, simulation product manager at RPMGlobal told CIM Magazine. “In the short-term environment, it is used to understand the best use of the equipment that is available, answering questions like ‘How many trucks should I put with that digger?’” The TALPAC-3D can import data from GPS devices and drones, and supports all major 3D surface and road formats. Compiled by Tijana Mitrovic 14 | CIM Magazine | Vol. 15, No. 3

Courtesy of RPMGlobal

Model hauling

Developments Opening the door to exploration The Northwest Territories’ new mandate seeks to expand exploration, infrastructure and Indigenous participation in the mining industry Katrina Nokleby, the Northwest Territory’s Minister of Infrastructure and Industry, Tourism and Investment, wants everyone to know that the Northwest Territories is a friendly jurisdiction for mining. Elected in October, Nokleby is part of the new territorial government which upon election set out 22 priorities for its time in office. In February, the government released and published its mandate for 2019 to 2023, which outlined steps and timelines to achieve these priorities. Three of those priorities – increasing resource exploration and development, investing in strategic infrastructure and settling and implementing treaty, land, resource and self-government agreements with Indigenous populations – demonstrate the new government’s commitment to the mining and resource sector. “A large part of my responsibility going forward is to get the economy going by making sure that that money stays in the North,” Nokleby told CIM Magazine. “We’re in a little bit of a slump right now when it comes to exploration… I need to ensure that I get some of that stuff going again in the territory.” To industry members such as Nighthawk Gold CEO Michael Byron, the mandate is an opportunity to fully explore the Northwest Territories. “It has the geology that’s identical to what we have in the Abitibi [region],” Byron told CIM Magazine. “You’re looking at something that hasn’t had the hundredplus years of exploration and dollars spent but has all the prerequisites: right age of rocks, right style of mineralization. The gold is there and it’s leaking into any brittle rock types.” Increasing resource exploration and development is a major component of

Courtesy of Nighthawk Gold

By Tijana Mitrovic

A resupply at Nighthawk Gold’s Indin Lake project in the Northwest Territories. the mandate. Canada is the world’s third-largest diamond producer, most of which come from the Northwest Territories and make up a significant part of its GDP. As many of these diamond mines are set to ramp down production and close in the next decade, the government hopes to expand exploration and save revenue and jobs. The government’s mandate includes a number of other clauses meant to boost resource development, such as an independent review that will examine the territory’s competitiveness to develop recommendations to maximize benefits using royalties, taxes and economic returns. The review is expected to begin sometime this year and generate a competitiveness report which will be completed in spring 2022.

Infrastructure is a major component of the mandate, which promises to “connect communities, expand the economy [and] reduce the cost of living” with a number of new projects. The Mackenzie Valley Highway, the Slave Geological Corridor and the Taltson Hydro Project, the three major infrastructure projects named in the mandate, have been planned to improve the quality and cost of living in the territory, as well as help expand and diversify its economy. The Mackenzie Valley Highway project, for example, runs through a region with oil, gas and mineral deposits that are currently accessible only by winter and ice roads. Building a permanent road would not only connect communities but allow for expanding power May/June 2020 • Mai/Juin 2020 | 15

grids, which in turn make exploration and economic development easier. “Mining companies have sustainability mandates, so they don’t want to look at diesel-operated mines anymore, and right now that’s all we can offer,” Nokleby explained. “If we can work on getting our hydro expansion and having transmission lines up into our mineral-rich areas, we’ll be able to offer green energy sources for mines that come in.” Another goal of the mandate is to promote and improve Indigenous participation in the territory’s resource sector. A major component of this is concluding treaties with Indigenous governments in the territory on land, resources and self-government. “Not having the settled land claims in some of our areas is really hurting investor certainty in the North,” Nokleby said. “We’re really committed to getting those land claims sorted out and finalized so that we have some more ideas about how we can move forward

together and have that Indigenous buyin as well.” This objective seeks to establish Indigenous governments and communities as partners in resource development and exploration. There are already a number of Indigenous-owned and operated businesses that companies, such as Nighthawk Gold, hire and rely on for building their operations. Further developing and settling treaties would promote even more Indigenous involvement in the sector. “There’s sometimes the perspective that Indigenous governments and Indigenous businesses are antiresource development and I would say that’s not the case here,” Nokleby said. “I see the Indigenous businesses as wanting mining, they recognize that other industries like tourism, which has been touted as our replacement industry, is not going to pay the same that a mine does.” Companies operating in the territory recognize that its strength as a mining

jurisdiction is a result of the government, Indigenous communities and industry working together. “It’s like everyone’s aligned towards a common goal,” Byron explained. “These things really positively impact what we’re doing obviously.” While the start of the year saw climate change increasingly mobilizing people around the country and affecting companies’ decisions, the Northwest Territories government is confident there is a want for resource extraction in the region. “In developing this mandate, we were all really listening to the people of the Northwest Territories and what they wanted,” Nokleby explained. “We want to empower ourselves and our people, we don’t want to be beholden to the southern companies coming in and telling us how to do business. The more we can move [towards] self-sufficiency I think would be better for the territory. So, I hope that [will] continue beyond 2023.” CIM

As mining companies continue to make contingency plans for the possible outcomes of the COVID-19 pandemic, mine supply companies are finding themselves with less ability to maneuver in this time of crisis and little ability to predict the future of their businesses. For Paul Bradette, executive director of MineConnect, Ontario’s mining supply and services association, the impact that COVID-19 has had on the mining supply sector in the province has been wildly varied. “The difficult part for us is we have roughly 170 members, but of all varying sizes,” Bradette told CIM Magazine. “From blue chip companies to some operations that have two or three employees. We’ve seen some of our operations go through a 60 per cent layoff. We’ve seen some that are just currently working on back orders and have laid nobody off.” According to Bradette, the initiatives that the Canadian government has already put in place have been a good start. The federal wage subsidy program which could potentially cover up to 75 16 | CIM Magazine | Vol. 15, No. 3

Courtesy of McEwen Mining

Mine suppliers face uncertain futures during COVID-19

Mine supply companies in Northern Ontario are forced to wait and see what the impacts of COVID-19 will be. per cent of employees’ salaries and access to interest-free loans have been priorities for mine suppliers in the province. Some of the members of MineConnect have been looking towards subsidies for research and development in the event that current orders dry up. “At present, it’s not a perfect situation though it certainly could be worse,” Bradette said. Comparatively, suppliers in Ontario have had it fairly easy. Mines in Quebec, for example, have been limited to operat-

ing with only critical employees during the non-essential business shutdown the province invoked on Mar. 23. (On April 13, however, it was announced that mines would be allowed to reopen on April 15.) During the same period, Ontario mines have been able to continue operations, albeit at a reduced pace. That has been essential in keeping some of MineConnect’s members functioning during the pandemic. “We’ve been pretty fortunate so far in Ontario,” Bradette said. “I think the

developments critical piece is to keep the mines working safely so that they continue to require good and services, and they can continue to pay for those goods so our members can keep moving. I think that’s the key piece, continuing to keep the mines working is going to be critical moving forward.” Keeping the mines open is easier said than done, however. Governments and companies are doing the best they can to try and mitigate the spread of the virus through disinfecting, social distancing and self-isolation when necessary. However, if those strategies fail to prevent new cases the impacts could be unpredictable for miners and mine suppliers. “I haven’t been in contact with all [our] members but the ones I do talk to are trying to abide by those guidelines and ensure a safe working environment,” Bradette said. “At the end of the day, when, God forbid, one of their employees gets infected then what’s the move then? That is the game changer.” “I think the government is doing the right things,” he continued. “They’re trying to implement everything in their

power to try and mitigate this, but how do you plan for something like this? It’s impossible. It’s really kind of scary times here.” As an organization, MineConnect is “trying to support the companies by getting accurate information from them so we can convey that information to the government so it can make the right decisions,” Bradette said. While nobody knows when this COVID-19 crisis will break, having plans to bring businesses back is critical. “That’s the type of strategizing that we’re trying to do to ensure that when this all comes out we break this cycle: what are [our members] going to need to help ramp back up and to become active and whole again?” – Matthew Parizot

Rio Tinto suspends Kennecott following earthquake On Mar. 18, Rio Tinto’s Kennecott copper mine near Salt Lake City, Utah, was hit by a 5.7-magnitude earthquake,

temporarily halting operations at the mine. According to Rio Tinto, all the mine’s employees were safely accounted for and evacuated from any risky areas. Limited damage to the operaion has been found, and a detailed inspection is underway in conjunction with the local emergency services and the Utah Department of Transportation. “The safety of our employees and wider community is our first priority and having ensured that all our employees are safe and the operations are shut, we are now working with the local emergency services and regulators to ensure the asset is safe before resuming any operations,” Rio Tinto Copper & Diamonds chief executive Arnaud Soirat said. The inactive South (Magna) tailings storage facility near the mine merited special attention following the earthquake, and the State Road 201 expressway out of Salt Lake City was closed until the facility could be inspected. Rio Tinto announced in December 2019 that it would be investing US$1.5

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billion over six years to continue production at Kennecott until 2032. The expansion would allow mining to continue into new areas of the ore body and would help the mine produce an estimated 1,000,000 tonnes of refined copper from 2026 to 2032. The company also declared that it would cut the

mine’s carbon footprint by permanently closing its coal-fired power plant and sourcing renewable energy certificates. Kennecott produced 186,800 tonnes of mined copper and produced 184,600 tonnes of refined copper in 2019, representing an eight per cent and five per

cent drop respectively compared to the full-year 2018. According to Rio Tinto’s fourth-quarter report, this was due to increased grade variability, reduced copper concentrate availability as well as planned and unplanned maintenance at the smelter. – Matthew Parizot

COVID-19 scuttles SilverCrest mining deal Syndicate of financial firms backs out of $75 million agreement to invest in junior miner Even though it finally managed to close a $101 million non-brokered private placement of common shares, SilverCrest Metals Inc. experienced first-hand the challenges COVID-19 presents to companies looking for investment deals, as an earlier agreement collapsed due to concerns about how the virus would affect the mining industry and the markets. On April 17, Vancouver-based SilverCrest issued a statement saying that the current deal, which was originally announced on April 13 for $75 million was oversubscribed, and that the final details saw the company issue 13,465,001 common shares at a price of $7.50 per share resulting in gross proceeds of $100,987,507.50. This happened roughly a month after an agreement between the miner and some institutional investors initially came together and fell apart, all over the course of one week in March. When the Vancouver-based exploration company with a focus on the Las Chispas mining district in Sonora, Mexico issued a statement on March 11, everything was positive: a syndicate of underwriters led by National Bank Financial Inc., Eight Capital Corp. and Scotia Capital Inc. had agreed to purchase 9,100,000 common shares of the SilverCrest on a bought-deal basis at a price of $8.25 per share. In total, the deal was worth a minimum of $75,075,000 with the potential for an even greater investment as provisions were included for the purchase of an additional 15 per cent of the SilverCrest shares. SilverCrest planned to use the funding to continue exploration and development of its Las Chispas project (a feasibility study is currently underway 18 | CIM Magazine | Vol. 15, No. 3

Courtesy of SilverCrest Metals

By Carolyn Gruske

SilverCrest planned to use the funding to continue exploration and development of its Las Chispas project in Mexico. and a decision about starting construction is expected to be made this summer) and for general working capital and administrative purposes. That plan, however, is now in jeopardy. On March 18, the miner issued a statement explaining that “it has received notice from National Bank Financial Inc. purporting to terminate its obligations.” The reason cited for the change of heart is COVID-19. The pandemic is being used to trigger what is known as the “disaster out” clause in the offering agreement. March 11 was also the day the World Health Organization formally declared the outbreak of the virus a pandemic noting at that point there were 118,000 confirmed cases in 114 countries.

“Our decision to exercise this clause, along with Scotia and Eight Capital – our collective decision – was not because of the company. This is not a reflection on SilverCrest. It is however, a reflection, really, on what has changed and changed very dramatically since March 11,” said Toronto-based Brian Davis, co-president and co-CEO of National Bank Financial Inc. “What we identified in particular was how the epidemic has spread and became, later that evening, designated as a pandemic by the World Health Organization. That has led to border closures, travel restrictions, declarations of states of emergency. These measures affect us domestically and internationally. And they have clearly, profoundly, adversely affected the financial markets in general.

FROM THE WIRE

Compiled by Tijana Mitrovic

Suresh Kalathil has left Guyana

Goldfields as its COO and senior vicepresident. President and CEO Alan Pangbourne thanked Kalathil for his contributions to the company, which plans to soon be acquired by Silvercorp Metals. Ivanhoe Mines CFO Marna Cloete has been promoted to President, a role she will take on in addition to her current one. The Ivanhoe Mines board of directors has also promoted Matthieu Bos and Peter Zhou to executive vice presidents of Africa and China, respectively. John Baird has joined Osisko Gold

Royalties’ board of directors. Baird has served as an MPP in Ontario for ten years, a member of parliament in Ottawa for three terms and as Canada’s Foreign Affairs Minister for four years. Drew Anwyll has joined Generation

Mining as its new COO. Anwyll has previously worked with Detour Gold, Barrick Gold and Placer Dome and has extensive experience with both open-pit and underground mining operations. Chris Stewart has left his position of

president and COO of McEwen Mining. The company announced it will distribute his responsibilities among its management team. Mary-Lynn Oke has joined Anaconda

Mining’s board of directors. Oke has over 23 years of experience in tax, finance and leadership, and currently acts as a senior financial advisor. The company also announced that Maruf Raza has resigned as a company director after eight years. Jessica McDonald has stepped

down as chair and member of Trevali Mining’s board of directors. Jill Gardiner, currently a director and the chair of Trevali’s compensation and human resources committee, will serve as board chair. Trevali president and CEO Ricus Grimbeek will join the board to fill the vacant seat.

20 | CIM Magazine | Vol. 15, No. 3

It is for all those reason – and I absolutely say I wish we weren’t put in this position – we chose, along with Scotia and Eight Capital, and with the support of the rest of the syndicate for that matter, to exercise the disaster out clause.” Davis explained that under the terms of the underwriting agreement – terms that are typical for any similar agreement – the underwriters (in this case National Bank Financial, Eight Capital, Scotia Capital and the other investors in the syndicate) have the ability to terminate their obligations “at any time prior to the closing of the offering ‘if there shall develop, occur or come into existence or be announced any event, action, state, condition of national or international consequence or any law, action or regulation or other occurrence of any nature whatsoever, which, in the opinion of an underwriter, materially adversely affects or involves the financial markets generally or the condition of the company.’” While the agreement may have provisions for the parties involved to terminate it, executives from SilverCrest Metals do not believe the termination provisions were properly enacted and have stated their intentions to take legal action to hold the National Bank Financial and its partners to the original intent of the deal. The company issued a statement outlining that viewpoint. “The agreement between SilverCrest and NBF created a binding legal obligation on the part of NBF to complete the transaction as is customary in Canada for ‘bought deal’ financings. SilverCrest is of the view that NBF is not entitled to terminate the agreement. In SilverCrest’s opinion, the novel coronavirus pandemic considered by NBF as the basis for terminating this agreement was fully evident when the ‘bought deal’ financing was agreed upon with expectations that the precious metals market would respond positively to this known risk. Accordingly, SilverCrest intends to pursue its legal remedies against NBF for breach of NBF’s obligations under the terms of the agreement.” Getting lawyers involved in a business deal is not something that Eric Fier, CEO and director of SilverCrest said he wants to do, especially since SilverCrest Metals and his earlier mining company SilverCrest Mines (located next door to the current Las Chispas Project), have been long-term clients of the National Bank. Asserting SilverCrest’s legal position,

however, something he feels he is being forced to do. “I’m well versed in everything that is going on in the world, but a bought deal is a bought deal and this was eyes wide open. Everybody knew what was going on in the world. It’s our reputation too, so I want to protect that,” he said. “We feel that National Bank is legally obligated to this bought deal, and we intend to pursue our rights to protect our shareholders and our stakeholders. We’re long-term clients of National Bank, and as a client, we are very disappointed in their lack of insight into the situation, and the support they are giving us – support they are supposed to give to key clients when the going gets tough.” Fier stated that SilverCrest isn’t dependent on the syndicate’s financing to continue operations, even though over the course of the next two years, the goal was to raise $110 million to complete its financing. Currently, he said that the company has US$90 million in the bank and a burn rate of US$4 million per month, mainly for underground development. Up until January, there were 20 drills on site. Now there are 12, and that number may be reduced further due to the changing circumstances and pressures caused by COVID-19. According to Fier, the timing of the National Bank-led deal was convenient as it would have helped them de-risk decisions about construction, and it came before the company had to go into a blackout period prior to disclosing the latest updated resources and reserves figures to the public. Financing however, should still be available, as Fier believes that good projects can find investors or debt financing, even in challenging financial times. “I don’t want to be tainted by National Bank breaking this deal for what they think may be a good reason. That shouldn’t happen,” Fier said. “This project is a wonderful project … and it’s going to move forward.” Admittedly, Fier said he has concerns about the effects of COVID-19 on the project, on his employees and on the supply chain, but he said he is trying to take those in stride. “We’re dedicated to working through these problems. I like to always remind my team, most of whom are engineers and geologists that we were built – it’s in our DNA – to solve problems. They should be in the height of their glory moving forward.” CIM

developments

Courtesy of Endeavour Mining

Endeavour and SEMAFO to merge in US$1 billion deal

CEO Sébastien de Montessus said in the press release. “We believe this transaction represents a compelling value equation for both sets of shareholders with the potential for a meaningful re-rating, Endeavour Mining Corporation whilst providing increased asset diversiannounced on Mar. 23 that it will purfication and enhancing our ability to chase all shares of Montreal-based manage risks within the business.” SEMAFO, creating a top-15 gold producer This focus on risk management is worldwide in a deal worth US$1 billion. deserved. Employees working at The combined company would have SEMAFO’s Boungou and Mana mines control of four operating mines in the have been the victims of several terrorist West African nation of Burkina Faso – attacks during convoys to the mines. On Boungou, Mana, Karma and Houndé – as Aug. 11, 2018, five gendarmes and one well as the Ity and Agbaou mines in Côte sub-contractor employee were killed in D’Ivoire. Together the companies also an ambush on the way to Boungou. Six have several development projects in days later, on Aug. 17, an employee bus Burkina Faso and the neighbouring counheading to Mana was held up by bandits, try of Mali. where one of the company’s national “This transaction has received strong employees and one sub-contractor were support from our key shareholders who killed. recognize it as an exciting value creating Most recently, on Nov. 6, a convoy of opportunity to bring together two comfive buses were struck by an improvised panies with common values and share explosive device while on the way to culture built on decades of successful Boungou. As a result, 39 people were West African experience,” SEMAFO preskilled with 60 more wounded, and minident and CEO Benoit Desormeaux said in ing operations were suspended. A Februthe press release. ary 2020 update put the mine’s restart According to both companies, the sometime in the fourth quarter, while combined operations would produce employees employed at the mine’s proover one million ounces in 2020 based on cessing plant were transported by helicurrent guidelines with all-in sustaining copter to the mine site to process the costs below US$900 per ounce. Also remaining ore stockpiles until mining stated in the press release is the claim could resume. that the combined company would also According to the press release, during have strong cash flow profile and the discussions between the two compaenhances the ability for the company to nies, Endeavour’s management team manage risks at its operations. “completed on-site due diligence at “This combination offers a rare opporSEMAFO’s operations in Burkina Faso tunity to bring together two leading West during February 2020, including a comAfrican mine operators with a shared prehensive assessment of security, operstrategic vision, complementary assets ations and exploration.” Following a and management teams with a proven majority approval vote, Endeavour and track record,” Endeavour president and SEMAFO shareholders will own approximately 70 and 30 per cent of the combined business, respectively. Holding company La Mancha, which currently owns 31 per cent of Endeavour, has committed to invest US$100 million in the transaction and will control 25 per cent of the combined entity. Both shareholder meetings are expected to be held in the second quarter of 2020. The combined company will operate four Burkina Faso gold mines, such as the Houndé mine. – Matthew Parizot

Matthew Carr has joined Core Gold’s

board of directors. Carr is currently an executive director of Titan Minerals, Core Gold’s majority shareholder, and the non-executive chairman of Andina Resources. Leonard Clough resigned from the company’s board of directors, where he had been a director since 2011. Jacques Perron has joined Pretium

Resources as president and CEO. The board also intends to appoint him as a director following the company’s general meeting. He succeeds Joseph Ovsenek, who has acted as president and CEO since 2017. Osisko Mining has appointed Andrée St-Germain to its board of directors. St-Germain has experience in mining finance, banking and financial management and has served on the board of Barkerville Gold Mines, IDM Mining and currently sits on the boards of Ascot Resources and AME. Andrew Cormier is joining Orla

Mining as its new COO. Cormier has over 27 years of experience in the mining industry, having held positions at Alamos Gold, AuRico Gold Barrick Gold and more. He is succeeding Hans Smit, who retired as COO and will continue to serve the company as a consultant. Robbert Borst has retired as COO of

Marathon Gold. Borst first joined the company in 2017 and will remain a consultant for the Valentine Gold project. The company has also appointed James Powell as viceand regulatory of president government affairs, an expansion to his previous role as director of stakeholder and environment engagement. Tony Giardini has joined Trilogy

Metals as its new president and CEO. Giardini first joined the company in 2012 as a director, and has extensive executive experience from his previous positions at Ivanhoe Mines and Kinross Gold. James Gowans will finish his tenure as interim president and CEO and will remain as a company director.

May/June 2020 • Mai/Juin 2020 | 21

Courtesy of Hudbay Minerals

Hudbay’s plan for Lalor will increased the mine’s life by one year and double annual production.

Hudbay aims to double gold production at Lalor mine Hudbay Minerals’ operations in Manitoba have received a boost to their reserves and production, according to an update released by the company on Mar. 31. Hudbay’s operational focus in Canada is in the Snow Lake region of Manitoba, home to the company’s Lalor gold-zinc-

copper-silver mine, the New Britannia mill acquired by the company in 2015, as well as several satellite deposits. In February 2019, the company announced the first phase of its strategy to increase production at Lalor following the refurbishing of the New Britannia mill. For the second phase of the plan, executed over the past 12 months, the company has focused on “extensive infill and exploration drilling at Lalor and advancing engineering studies on the regional deposits in Snow Lake.” According to

Hudbay, the total Snow Lake gold reserves have increased 35 per cent to 2.2 million ounces based on 15 million tonnes with a grade of 4.16 grams per tonne. This anticipates an increase of Lalor’s life-of-mine gold production by 41 per cent compared to the previous plan, and now stands at 1,501,000 ounces over the next 10 years compared to 1,134,000 from February 2019. Once the New Britannia mill is refurbished in 2022, gold production is expected to average 150,000 ounces per year over the first eightyears, which is more than double the mine’s current annual gold production, according to Hudbay. After the first 10 years, the Lalor feed will be replaced by ore from the WIM and 3 Zone deposits for the remaining eight years. The company also announced the third phase of its strategy for Snow Lake. This includes using Lalor’s 4.4 million tonnes of inferred mineral resources to potentially extend its life past the next 10 years, as well as additional drilling at the company’s New Britannia, Birch, 1901, Watts and Pen II deposits in the region. According to Hudbay president and CEO Peter Kukielski, the company is “extremely pleased with our exploration success over the past 12 months in Manitoba where we’ve doubled the mine life in Snow Lake and more than doubled Lalor’s annual gold production from current levels.” – Matthew Parizot

Companies face new cyber security risks during pandemic Remote working and lax cyber security could pose significant threats to companies’ bottom lines and employee safety By Matthew Parizot

The COVID-19 pandemic has forced companies to pay special attention to matters of safety and security to keep their employees healthy and avoid the possible spread of the virus on-site. This has led many companies to having their employees work from home whenever possible, as well as drastically reducing the number of workers present on-site to a bare minimum. The physical distancing of employees, while addressing concerns of their physical health, has created complications in 22 | CIM Magazine | Vol. 15, No. 3

a completely different aspect of safety: cybersecurity. With employees working from home on their personal computers, the possible angles of attack for cyber criminals has increased. “Absolutely, companies are more exposed at this time,” Andrew Brewer, CEO of CMS Consulting – a Canadian firm specializing in cybersecurity – told CIM Magazine. “Every remote worker is now a separate risk to the company. Each home environment is different, and with so many of them and [the pandemic]

happening so suddenly it’s like a perfect storm for companies, not to mention a free-for-all for the bad guys. I don’t envy companies that did not plan ahead.” For an industry as traditionally analog as mining, cybersecurity might not sound like an issue worth being concerned about, especially during a global health crisis. However, according to Brewer, gaps in a company’s cybersecurity can result in significant financial damage and can even compromise the safety of its workers.

developments Courtesy of Freestocks

Husky cuts capital spending as U.S. oil prices fall below zero

Employees working from home increase the risk of entry by cyber criminals. “The mining industry is unique in its complexity, the value of its data, the type of equipment, the scale of the operations and the nature of the environment that is being operated in,” Brewer said. “The data that a mining company has is very expensive with respect to money and time to obtain and of great value to the company moving forward. Losing this data to a cyber spy could mean serious financial damage to the company and its shareholders.” “Another point is that when you are underground moving large objects through small spaces, you require complex critical communication infrastructure to ensure everything runs efficiently and most of all safely,” he continued. “If a threat actor got control of that, it would create a very dangerous environment for those working underground.” With the rise of automated machinery and Internet-connected mines, mining companies have already increased their risk of cyber-attack. With what Brewer refers to as the “threat surface” increasing even more with employees working remotely, the danger is even greater. In a newsletter sent out to its members, Global Mining Guidelines Group (GMG) referred to the novel coronavirus as “possibly the largest cyber security threat of all time.” GMG recommended that its members “step up their cyber hygiene standards” by ensuring their modems and devices are digitally and physically protected by invasion and by teaching employees to avoid clicking on

suspicious emails and links, how to patch and update their systems and to avoid working outside any official channels or devices if possible. GMG also recommended that companies implement a business continuity plan (BCP), a contingency plan in the event of the emergency, if they have not already done so. Additionally, companies will need to learn how to “stratify, prioritize and outsource information security operations” during this time of remote working and tighter budgets. For Brewer, cyber security must be managed from several different aspects of a company’s culture. “First off, you need to know where you stand,” Brewer said. “Assess your current posture holistically from a security perspective. This has to include policy, process, people, technology and physical environment in which infrastructure is housed. [Once] you know what you are missing, get it fixed, follow best practices and have someone monitor for you.” Additionally, says Brewer, it’s important that that “someone” be qualified to properly protect the company’s systems. “There is a real talent shortage out there and assigning your IT team, or in some cases your ‘computer guy,’ to these tasks is just plain… Well, let’s just say I doubt any court would find it to be reasonable that someone who has so much at stake would believe something as complex and ever-changing as cyber security could be handled properly by people who are not experts.” CIM

On April 20, the price of a barrel of Western Texas Intermediate (WTI) crude oil became negative for the first time in history. With contracts for May delivery set to expire the next day, trade pressure led the global benchmark for oil prices to fall to -US$38.76. The same day, Husky Energy further reduced its 2020 capital expenditures to between $1.6 to $1.8 billion, down 50 per cent from the $3.2 to $3.4 billion originally announced in December 2019. The company also announced it was increasing its liquidity by $500 million for a total of $5.2 billion and reducing production of its Integrated Corridor upstream operations in Saskatchewan and Alberta by more than 80,000 barrels per day. The announcement comes more than a month after Husky Energy first announced cuts to its 2020 spending by $1 billion and lowered its capital investment guidance to $2.3 to $2.5 billion in 2020. Later the same month, Suncor Energy revised its 2020 guidance and lowered its expected capital spending by 26 per cent to a range of $3.9 billion to $4.5 billion. The drastic price drop of WTI is a result of dwindling demand for oil as many around the world are under some form of stay-at-home orders due to the COVID-19 pandemic. Oil prices are determined by futures contracts, which are agreements to buy and sell a certain amount of oil at a stated price at a future time. Futures represent how much a buyer would pay to have said oil delivered to them at a future date. With May contracts for WTI being finalized on April 21, it would mean anyone holding a future would agree to physically acquire the oil. The price of Western Canadian Select (WCS) oil, Canada’s major oil benchmark, similarly decreased and reached a low of $3.96. Despite staying positive, Canadian oil companies have been significantly impacted by the falling oil prices. Oil prices have been falling significantly since March when major global restrictions to try and curb the spread of COVID-19 were introduced, causing a drop in demand. A price war between Saudi Arabia and Russia resulted in a further saturation of oil on the market. May/June 2020 • Mai/Juin 2020 | 23

Courtesy of Husky Energy

Husky is reducing its capital expenditure guidance to between $1.6 and $1.8 billion in 2020. Although the Organization of the Petroleum Exporting Countries recently reached a deal with Russia, the U.S. and G20 to cut production by approximately 10 per cent, this only momentarily stalled the price drop, as reported by the CBC. While May contracts plummeted, June WTI contracts stayed above zero, ending the day at a value of US$20.43 a barrel. According to the Financial Post, the US$60.76 spread between the May and June values of WTI was the widest in history for the two closest monthly contracts. – Tijana Mitrovic

Marathon Gold releases pre-feasibility study for Valentine project

Courtesy of Marathon Gold

On April 6, Marathon Gold reported the results of a recent pre-feasibility study for its flagship Valentine gold project in Newfoundland which, according to the company, could support a low capital

cost and high rate of return open pit mine. “We have taken the approach of identifying the optimum starting point for mining at Valentine, emphasizing highest rate of return and lowest risk, while recognizing that the large resource inventory and extensive exploration potential along strike and at depth offers plenty of opportunity for mine life extension,” Marathon president and CEO Matt Manson said. Highlights from the study include an initial capital cost of $272 million with an after-tax payback of 1.8 years and expected capital costs for the life-ofmine coming in at $545 million. The project will have average life-of-mine total cash costs of US$633 per ounce and allin-sustaining costs of US$739 per ounce. Current proven and probable reserves total 1.87 million ounces from 41.05 million tonnes grading at 1.41 grams per tonne. Expected average annual production comes in at 175,000 ounces of gold per year for the first nine years of its 12-year life, according to the company, producing 54,000 ounces per year from years 10-12. The project will include a mill and tailings management facility, as well as a 300-person accommodation camp, a wastewater treatment plant, ditching and sedimentation ponds for water management and site roads. The mill is expected to process 2.5 million tonnes per year, followed by four million tonnes per year following a mill expansion. “The Valentine project is expected to be Atlantic Canada’s largest gold producer,” Manson said. “Notwithstanding

The Valentine gold project is expected to produce 175,000 ounces per year. 24 | CIM Magazine | Vol. 15, No. 3

the current COVID-19 challenges, it represents the future of responsible resource development in Central Newfoundland.” According to the study, the current timeline for the project sees the completion of a feasibility study in the first half of 2021. Site construction is scheduled to begin on Jan. 1, 2022, with the first gold being produced by mid-2023. – Matthew Parizot

Silvercorp to buy Guyana Goldfields for $105 million China-focused silver producer Silvercorp Metals has entered into an agreement to acquire Guyana Goldfields in a deal valued at $0.60 per share for a total of $105 million. The combination of those companies might seem odd. Silvercorp has seven operating mines located within the Henan and Guandong provinces of China, which produce primarily silver and zinc. Guyana Goldfields focuses primarily on its flagship Aurora gold mine across the ocean in the South American country of Guyana. According to Silvercorp, the combined companies will lead to the creation of a leading precious metals producer and “greater diversification.” The acquisition of Guyana Goldfields would add to the company’s gold project portfolio, which is currently made up of the BYP gold mine in Hunan Province, which suspended operations in 2014. “This transaction will create a new globally diversified precious metals

producer with the addition of Aurora to our growing asset portfolio,” Silvercorp chairman and CEO Rui Feng said. “We look forward to partnering with the government of Guyana to make a successful entry into the region, leveraging Guyana Goldfield’s existing team and relationships to ensure a smooth transition and continued development that benefits all stakeholders.” Silvercorp’s pitch to Guyana’s shareholders included reduced development risk, thanks to the company’s lengthy track record of operation, as well as a US$15 million loan agreement to be used to proceed with the transition to underground operations at Aurora. The Aurora mine has had significant issues with production in the past, which Guyana’s former CEO Patrick Sheridan blamed on the operations “resource model.” “This transaction provides our shareholders with an immediate and significant upfront premium and exposure to a geographically diverse mid-tier precious metal company,” Guyana Goldfields president and CEO Alan Pangbourne said. “With a strong operating history, solid balance sheet and significant underground experience, Silvercorp’s management team is well-positioned to fund and continue to advance the underground project at Aurora.” The purchase will be subject to a vote by Guyana Goldfield shareholders at their special meeting, expected to be held by the end of June.

Teck purchased SunMine, a solar energy facility on one of its former mine sites from the City of Kimberley, earlier this year.

Teck releases 2019 sustainability report On Mar. 12, Teck Resources released its 2019 sustainability report, announcing plans to reduce its carbon production by 33 per cent by 2030. The report highlights the company’s updated sustainability strategy that focuses on eight themes including climate change, responsible production and biodiversity and reclamation. Part of the strategy’s climate changespecific goals include adopting the equivalent of 1,000 standard-emission vehicles with zero-emissions transportation alternatives by 2025 and using clean energy for 50 and 100 per cent of electricity demands for its Chilean operations by 2025 and 2030, respectively.

Courtesy of Guyana Goldfields

– Matthew Parizot

Courtesy of SunMine

developments

Part of the acquisition includes a US$15 million loan to help proceed Aurora to underground development.

These measures feed into the broader goal announced by Teck in February to be carbon neutral by 2050. The report also highlights the company’s achievements, including using renewable resources for 26 per cent of its energy requirements, recycling and reusing water an average of three times during operations and reducing greenhouse gas emissions by 297,000 tonnes since 2011. According to president and CEO Don Lindsay, the new goals for carbon reduction, water use and more represent the company’s commitment to improving mining practices. “At Teck, we are always challenging ourselves to improve sustainability performance, so we can be sure we are providing the mining products needed for a cleaner future in the most responsible way possible,” said Lindsay in a press release. Teck’s 2019 report builds on previous sustainability initiatives announced earlier this year, such as its continued commitment to using renewable energy resources. In January, Teck purchased SunMine, a solar energy facility on one of its former mine sites from the City of Kimberley in British Columbia. Currently 82 per cent of Teck’s electricity is sourced from renewable energy. The decision follows the company’s decision to rescind its Frontier project application. In a letter to the federal Minister of the Environment and Climate Change, Jonathan Wilkinson, Lindsay cited increased federal and global scrutiny on climate change and emissions as part of the reasons for its decision. The Frontier mine would have produced an estimated four million tonnes of greenhouses each year of its 40-year mine life. – Tijana Mitrovic May/June 2020 • Mai/Juin 2020 | 25

Courtesy of Larry Clark

MINING MENTORS

Passion tempered with compassion leads to understanding Advice to young mining professionals from veteran mining executive Larry Clark By Tom DiNardo

arry Clark began his career as an underground miner at the Henderson molybdenum mine in Colorado in 1978. He graduated from the Colorado School of Mines in 1986 and, after stints working at a consultancy and a mining software company, Clark was hired by Newmont. He was there for 17 years, finishing as senior director of mining technology before moving on to Jolimont Global Mining Systems as the North American principal. From March 2018 to March 2020, he was COO of Newtrax Technologies. A lot has changed in the industry since Clark first went underground in the 1970s, particularly the technology used. Whereas electric equipment was once scarce, companies are now adopting battery-powered trucks – not to mention the use of smartphones at underground mines. But the challenge, said Clark, is that the industry is still risk averse. According to him, the next generation of miners will be the one to overcome the industry’s technology aversion and push it forward. 26 | CIM Magazine | Vol. 15, No. 3

CIM: What is the most important quality that you look for in a young professional? Clark: It’s the person’s drive, passion, energy and self-motivation. My view is that, from a technical perspective, [any] school is competent and can provide you with a technical background. What I’m looking for is work ethic. I’m looking for the person who’s eager to come in and solve problems. I’m looking for young people who, even without direction, will run out, gather some information, come back and say, “Here’s where I think we should go.” I guess it’s best captured as someone who’s eager to learn all the time.

CIM: What was the most difficult but worthwhile professional quality for you to cultivate? Clark: Developing the skill of active listening. I have been in so many meetings where some people take all the oxygen in the room and other people don’t get a chance to say a word. Develop

mining mentors the skill of not just being there and hearing, but actually listening to the content and absorbing it. Don’t have your cellphone with you. Don’t have your laptop with you. Don’t think about the other things that are on your plate. Be in the moment. That’s a skill that, certainly for me, has been difficult.

CIM: How has apparent failure set you up for future success? Clark: People learn through experience and observation. Most of the time you learn from what didn’t go right. The thing that generally gets in the way of learning from those failures is your ego. It gets in the middle of things and says, “Well, I didn’t really fail. They didn’t prepare this in time for me to get that in time.” You’re going to have to look in the mirror here because often it was something that you did personally or your team did, and you just need to suck it up, drop that egotistic unwillingness and learn from it. What I’ve told both young students when I mentor them and people within even our own company is to fail fast and fail cheap. Then please don’t fail the same way twice. That’s called a blunder. But I’m not going to punish people for taking a calculated risk.

CIM: What’s one seemingly insignificant habit that makes a big difference in a young professional’s career? Clark: [Punctuality.] In my opinion, somebody calls a meeting, you’re not on time if you’re not five minutes early. I might have worked hard to put an agenda together for this meeting and the fact that you didn’t show up means you don’t really respect the fact that I did that in advance of this meeting. Everybody else is there, and if you come in late and we have to repeat what we said because we need to bring you up to speed, that’s just not efficient. And it just doesn’t convey respect and it doesn’t build the right work ethic. What I try to demand from people is be punctual. For me, that’s five minutes ahead of the meeting. And come to the meeting prepared to have an intelligent conversation.

CIM: If there was one decision in your professional life that you could redo, what would it be? Clark: Confronting people in ways that were not compassionate. One of my bosses, who I would consider perhaps my best boss, took me aside once and she said, “Larry, I love your passion, but don’t forget passion with compassion.” You want to be exuberant, and energetic, and lively, and all that stuff, but don’t let that mask your own ability to understand other people and be compassionate. I try to live by the adage, “always assume positive intent.” People are generally motivated to do the right things, but it’s pretty easy to jump on something and say, “had he paid closer attention to that…” or, “had he been on top of this thing…” but you don’t know all the context.

I always recommend that students and new graduates stay up with their industry associations like SME or CIM. Those are extremely important because the magazines not only give you current event information but being a participant in those societies gives you a bond and keeps you abreast of what’s going on in the business. The conferences are great because they bring the newest technologies to the table and allow you to bump elbows with what is a fairly small fraternity in the mining business. The last thing is looking at more of the psychological side. Michelle Ash, the former chief innovation officer for Barrick, is a good friend. She has a degree in mining engineering and an MBA, but she also has a degree in psychology. I asked her about that at one point, and she said it’s actually something that she would recommend to students or recent graduates. Take a class in the softer sciences like anthropology or psychology – things that use the other side of your brain. Read about what motivates people. What sort of behaviours do you get from different types of people and how do you deal with those people? Learning about yourself and learning about people is really important from a team-building and team-effectiveness perspective. The Five Dysfunctions of a Team by Patrick Lencioni is another really good book. And by the way, read some stuff that’s not about mining. Read Lord of the Flies or something that gets you away from the business.

CIM: What advice would you give to a young person who would like to approach a potential mentor but may feel intimidated? Clark: Ask someone that you actually would like to be your mentor for suggestions. Just say flat out, “I’m looking for someone who can help mentor me in this, this, and this area. I really enjoyed your presentation,” or whatever it was that made you interested in them as a mentor. And then ask them for suggestions of who would be able to help you from a mentorship perspective. Either they’re going to say, “You know what? I really like your style. I don’t mind spending some time with you,” or, “Here are some suggested names.” You’ve got to get over the shyness. You just have to ask. If the answer is no, well okay, that’s my second favourite answer. But you don’t get it if you don’t ask them. CIM

Further recommended reading from Larry Clark The Seven Habits of Highly Successful People by Stephen Covey The Leadership Pipeline: How to Build the Leadership Powered Company by Ram Charan, Stephen Drotter and James Noel What to Ask the Person in the Mirror: Critical Questions for Becoming a More Effective Leader and Reaching Your Potential by Robert S. Kaplan

CIM: In your opinion, what is essential reading for any young mining professional? Clark: I’m of the opinion that you need to keep your technical

mining mentorS

skills polished. Attending conferences, reading papers, reading slide decks or attending those kinds of new technology presentations is important. I’m also a firm believer in improving your leadership in management understanding and skills. There’s a great book called Managing from the Heart [by Hyler Bracey, Jack Rosenblum, et al]. It’s all about that passion with compassion.

Running throughout 2020, our Mining Mentors series will feature conversations with industry veterans and budding professionals on strategies for building a career in mining. Do you know someone who should be featured in this section? Reach out to us at editor@cim.org. May/June 2020 • Mai/Juin 2020 | 27

How to perform a remote site visit By Avakash Patel, P.Eng

ine site visits have long been held in high regard by prospectors, mining companies, regulators and investors. There is no doubt that having a technical team available to view any asset and provide observation and opinion is critical to understanding the asset. Most professionals agree that the cleanliness and hygiene of a site, facility, operation and their respective sub-parts reflect the management, project, operation and culture in general. Given the many restrictions on travel under the current circumstances and the possibility that at least some could remain in place for an extended time, remote visits where a professional or a team view and observe a site without being physically present demand special attention. A site visit is normally used to validate information and data on a particular property. During any site visit, even a remote one, a number of peripheral observations happen naturally that can help form an opinion on the property, management and operation. A remote site visit can never completely replace an actual site visit. The intent of this guideline, adapted from a larger guideline on mine site visits, is to provide as much information as possible about remote site inspection to reduce the risk of a desktoponly or data-room review. The word “virtual” is not used here because this guideline covers actual site visits, where both images and sounds are live, not created in computer graphics. Many engineering, procurement and construction management companies produce virtual 3D models that are based on engineering design, but 3D models are generally not as-built, and in some cases, a follow up physical inspection is necessary for certain disciplines. A remote site visit can reduce the risk of reliance on reports and data without personal physical confirmation, and if performed properly, the information and data validation will be sufficient to reduce the risk associated with a desktop-only review.

Prior to a remote site visit Prior to the site visit, the maximum possible data and information should be gathered. It is helpful to ensure that the data is evaluated, understood and assessed for any gaps that the site visit may need to address. A parallel site team should be established to carry out the visit. Each remote discipline lead (RD) responsible for the visit should be assigned a local counterpart site inspector (SI) who will collect and transmit the required site sensory information. Although preferable, it is not required that the SI be a specialist in the discipline of the RD. Each SI should be provided instruction regarding how to properly use any communication, measurement or documentation equipment. There are two parts to the technology required to carry out a remote site visit. The first is real-time communication methods, including compatible software for transmission and reception. 28 | CIM Magazine | Vol. 15, No. 3

The second is the equipment and the software necessary to gather and transmit sensory information. This equipment can vary from a simple smartphone or tablet to surveying and measurement tools, including helmet cameras, eye glass cameras, microphones, and drones. Full agreement must be made on the technologies to be used for a remote site visit. A trial run is recommended to ensure the equipment and software works and to ensure the SI can successfully use it. It is recommended that a two-part meeting between RDs and SIs be held to coordinate the site visit. The first part of the meeting should include the entire team to highlight the scope and intent of the visit*. The second part is for each RD to coordinate with his or her respective SI individually. A number of activities need to be performed in preparation for part two, including but not limited to: • The RD should provide an agenda and plan for the locations and areas they would like the SI to visit. • The RD should send through the main elements to examine in each area. This will be the map/schedule for the remote site visit. • The RD and SI should discuss the merits and weaknesses of the plan and finalize the actual “tour route” or “remote map.” Mobile communication devices need to be tested in all regions of the visit and facility. If live communication is not possible, then the method for storage and transmission of information must be agreed to. A recorded method can be used for instruction and for feedback when live communication is not possible. Ensure all communications devices are fully charged and have backup sources of power. The preferred methods of communication should be Wi-Fi or cellular, but if these are not available, then the site technology would govern how communication can happen between the RD and SI. A smartphone or helmet camera with audio is best suited for the SI. Do a trial run. The SI should ensure that he or she can view what the camera lens captures. In the case of phones, the front camera can be used, and in the case of helmet cameras a remote or heads-up display can be used. Also make sure that photos can be taken directly by the RD through an application or by taking screen shots. The SI may also take and send photos to the RD. Upon approval and instruction, the SI can also take short videos as necessary. During the actual inspection, the RD will instruct the SI to move the camera slow and steady for optimal video, or to zoom in and out as necessary or to move closer or farther away or a different direction, so there must be agreement on the camera movement terms (i.e., pan, directional movements, zoom in/out) and calibration. For safety, it is critical to emphasize to the SI the importance of being aware of surroundings and watching where he or she is * See “WHY – Purpose of the Review and Visit” in Part 1 of “Mine and Mining Site Visit Guidelines – A Practical Approach.”

column walking or stepping to avoid trips or falls. The SI must keep his or her eyes on the walk path at all times, not on the display of the device transmitting information. Once the RD and SI work through the above details and do a trial run, they should be ready for the inspection. In some instances, periods with no Wi-Fi or cellular connection or delayed audio or video transfer may present a challenge, but it is generally not a significant barrier to completing an effective inspection. Finally, a full schedule should be developed to match both physical inspection and interview time. This needs to be coordinated to have live conference video to discuss observations and address questions with operational, maintenance, project, and/or management personnel before the date of the visit to establish on-site availability or at minimum availability for communication.

Remote site visit For a comprehensive remote inspection, it is recommended that the SI does two site inspections, on top of the trial run. This will allow for communications issues and errors, and for changes in real time differences in observance. Two separate inspections will provide the RD the opportunity to go through the first transmission and create a comprehensive list of items to capture that were missed during the first inspection. A second inspection will give the SI the opportunity to prepare to capture items that were not captured during the first inspection. When possible, if matching “tour routes” or “remote maps” between multiple disciplines, it is possible that the second

inspection can be a team or grouped inspection, with one SI serving multiple RDs. This is only possible once each RD has completed the first inspection, and has conferred with other RDs on the team to see if synergies exist. A final report should be provided by the SI of what was inspected, viewed or observed. It should include schedules, dates and times as necessary, and it should be provided to the RD as proof and documentation of the remote site visit. This documentation is critical to establishing a record of what was requested to be viewed and what was actually viewed.

Technologies There are a number of technologies that can serve for remote site inspection, including smartphones or tablets, helmet cameras, eye glass cameras, microphones and drones. Keep in mind that since there are practical limitations of control, timing, capacity, accuracy, depending on the complexity of the technology, more than one technology should be used to complete the remote site visit. The redundancy can bridge any gaps between the technologies used. CIM This column was excerpted and adapted from “Mine and Mining Project Site Visit Guidelines: A Practical Approach.” Read the full guidelines to performing remote site visits at https://www.rpmglobal.com/wp-content/uploads/2020/04/ Mine-and-Mining-Project-Site-Visit-Guidelines-A-Practical-Approach.pdf. Avakash Patel, P.Eng., is President – Advisory and Consulting Americas at RPMGlobal. He has worked for junior and major mining companies, as well as for top-tier EPCMs. He has been involved in various stages of project development and his experience spans multiple commodities and locations globally.

Strategic Mine Planning with New Digital Technologies, Risk Management and Mineral Value Chains At the time of a continuing rebound of metal markets, learn how the application of new digital technologies can add substantial value to strategic mine planning and asset valuation. The new technologies and related tools integrate technical risk management while capitalizing on the synergies amongst the elements of mineral value chains through their simultaneous optimization – from mines to products to markets. INSTRUCTORS Roussos Dimitrakopoulos, McGill University, Canada and Ryan Goodfellow, Newmont Goldcorp, USA • DATE September 2020 • LOCATION Montreal, Quebec, Canada

Geostatistical Mineral Resource Estimation and Meeting the New Regulatory Environment: Step by Step from Sampling to Grade Control This course is designed according to the latest regulations on public reporting of Mineral Resources. It aims at showing how state-of-the-art statistical and geostatistical techniques help answer the requirements of those regulations in an objective and reproducible manner. A particular emphasis is put on understanding sampling and estimation errors and how to assign levels of estimation confidence through the application of resource classification fundamentals. In addition to a solid introduction to mining geostatistics, this course provides a comprehensive overview of industry best practices in the broader field of Mineral Resource estimation. INSTRUCTORS Georges Verly, Wood, Canada and Roussos Dimitrakopoulos, McGill University, Canada • DATE September 21-25, 2020 • LOCATION Montreal, Quebec, Canada

May/June 2020 • Mai/Juin 2020 | 29

Photo courtesy of Nicholas Allen

Five 5.6-megawatt, high-efficiency Wärtsilä generators provide power to Agnico Eagle's Meliadine mine in Nunavut. Heat recovered from the generator engine exhaust is circulated through the mine site, providing heat to surface buildings and underground operations connected to the hot-water loop.

Taking heat High-efficiency gensets, fuel flexibility and smart load-shedding help cut diesel needs at Agnico Eagle’s Meliadine cogeneration plant By Herb Mathisen

he construction and commissioning of Agnico Eagle’s Meadowbank mine – the gold miner’s first foray into the Far North – was an educational experience with a steep learning curve. Logistical, operational and human resource challenges tested the company’s ingenuity and taught it a lot of lessons about how to bring a mine into production and keep it operating: lessons that Agnico Eagle applied to Meliadine, its second mine in Canada’s Low Arctic. Those learnings extended to the powerplant as well. Meadowbank’s heat recovery system – using by-product thermal energy from electricity-producing generators to heat operations – worked well in theory, but not so much in practice. “Mostly, people design as if the gensets are going to be running full steam, super hot, whereas we know that, in general, they always run a bit lower to keep some reserve and make sure there are no 30 | CIM Magazine | Vol. 15, No. 3

blackouts,” said Nicholas Allen, a mechanical engineer at BBA. The engineering firm was brought in to optimize the plant between 2012 and 2014. “As soon as you go off of that perfect operation, it’s not efficient at all.” But getting the most out of heat recovery systems is crucial in Nunavut, where Agnico Eagle relies on diesel for all of its energy on site. “We have other mines in southern Quebec and more down south in other countries. At those mines, we’re thinking about energy optimization but we take it to another level in Nunavut,” said Éric Lavoie, an electrical engineer with Agnico Eagle who worked closely with Allen on the design of the plant at Meliadine (which was commissioned in November 2018; the mine began commercial production in May 2019). “In Nunavut, we’re counting every kilowatt that is available, and we’re saying, ‘Okay, what can we do with that energy?’”

energy efficiency Steps to recovery To maximize heat recovery at Meadowbank, BBA focused on small, specific measures – like developing cleaning procedures to improve recovery rates from generator engine exhaust – while also looking at the bigger picture. They [had] never officially formalized their risk tolerance for blackouts, said Allen. This is important because powerplant operators do not pay for fuel but can feel responsible for outages, so it is common that they run all engines at lower loads. Although this burns more fuel, it gives operators an immediate reserve to tap into if the load spikes or a generator unexpectedly shuts down. Allen and his team put a question to Agnico Eagle’s brass: “How many blackouts do we want per year and how much money are we losing during these blackouts? Is this better than running all the engines lower?” As a result, generators were run hotter, at a higher load factor, improving heat recovery rates. These and other changes cut diesel use by roughly two million litres per year at Meadowbank, without any substantial equipment improvements or upgrades. When it came time for detailed design of the cogeneration plant at Meliadine, Agnico Eagle’s next project in Nunavut, the company again turned to BBA, asking the company to incorporate the lessons of Meadowbank. Right away, Agnico Eagle wanted to involve operations in the design process and commissioning of the power plant, so Meliadine staff knew how to run the systems properly to achieve the desired heat recovery rates. “It’s a hard one because the more we want to recover, the more the systems become complex,” said Allen. “If the users don’t operate the systems correctly, we can design the greatest powerplant, but it will not be as efficient as it’s supposed to.” The system BBA designed injects thermal energy recovered from the gensets into a hot-water loop that heats the processing plant and all other surface buildings connected to the network. A second loop continues on to heat air in the underground mine to roughly two or three degrees Celsius, before returning to the plant, where the cooled water is heated up again. The entire heat distribution system runs more than five kilometres in total. Allen said it reliably heats the surface buildings but requires some help to heat the underground mine when the temperature drops below -25 Celsius. The total efficiency of the cogeneration plant is about 80 per cent, according to Allen. “In other words, each kilogram of diesel contains about 43 Megajoules. From that, about 19 Megajoules are converted to electricity, and another 16 Megajoules into heat during the winter,” said Allen.

Reliability is huge A crucial factor to consider with off-grid powerplants is reliability. A generator failure can shut down production operationwide, and that can get expensive. To minimize this problem, Agnico Eagle implemented load-shedding, which allows the operator to run the engines at optimal loads to get the most efficient performance from the generators. “If one engine instantly stops for some problem, then you can load-shed, for example, the cafeteria or the lodging, or a certain part of the process you know you can stop without affecting productivity,” said Allen. “There was no additional investment. It was just thinking about the network in a smart way. If something does go wrong, you just load-shed a sector that you’ve chosen in advance.” This gives the operator time to start up a back-up generator and power returns to affected areas minutes later.

Agnico Eagle also built reliability into the Meliadine plant by purchasing five 5.6 megawatt, high-efficiency Wärtsilä generators. These 720-r.p.m. gensets run at a low speed, meaning less wear and tear on the engine and better reliability. They are also five per cent more efficient than the 900-r.p.m. generators at Meadowbank. This gain in efficiency translates to roughly 2.5 million litres of diesel saved every year. But it’s more than that, explained Allen. Agnico Eagle can ship in fuel only four months each year when the ice goes out of Hudson Bay, so this reduction means fewer storage tanks, less fuel to transport to site by ship and fewer trucks on the road. It also translates to a decreased risk of spills and fewer greenhouse gases emitted. “There are a lot of advantages to reducing diesel consumption when you’re up North.” BBA made the business case for the more expensive gensets. There was more than diesel savings to consider with each behemoth, 100-tonne generator, too. “Lower speed for the same power means a bigger engine. That’s why it’s more expensive,” said Allen. “You also need more space in your building, a bigger foundation.” Agnico Eagle made the investment because the payback on what these generators cost, versus the generators at Meadowbank, was only about two years – Meliadine’s current projected mine life is 12 years. Getting the generators to site posed a few logistical challenges, considering Nunavut lacks a deep-water port. Each generator was moved off a ship anchored in deep water and onto a multi-axel trailer sitting on a barge. When this barge came to land the trailers were towed onto the beach and then travelled 35 kilometres to Meliadine. Five generators as well as eight 50tonne, prefab cogeneration plant buildings were moved this way. A late summer in 2018 pushed back the schedule.

Fuels for the future From the very start, Agnico Eagle insisted on de-risking Meliadine by ensuring its plant could be compatible with liquid natural gas (LNG) and renewable power. The rationale made sense: if the mine uses many tens of millions of litres of diesel per year and that price goes up by even $0.50, the company is stuck and operating costs increase by tens of millions. Dual-fuel generators that run on both diesel and LNG already existed on the market, said Allen. “But the problem is if you’re using dual-fuel but running on diesel, you’re actually three per cent less efficient while waiting for [the possible incorporation of] natural gas [at a later date].” After speaking to many manufacturers, Finnish company Wärtsilä proposed an option where Agnico Eagle could easily convert its generators to LNG at a later date. “They are efficient as diesel engines, but if you do want to convert them to dual-fuel, then you only take two weeks, you pay that money at that time for conversion and you’re ready to operate on them,” said Allen. The company could stagger the genset switchovers so the operation would not be affected. The plant can also integrate renewable energy. “We’ve been doing internal studies on a wind farm and we have been working on that for a couple of years now,” said Lavoie. “We’re saying that we need to again keep our minds open and look for opportunities.” That flexibility to alter course with the winds of change means the longer Meliadine produces gold, the more Agnico Eagle is rewarded for the up-front investment and planning it put into its cogeneration plant. CIM May/June 2020 • Mai/Juin 2020 | 31

Courtesy of Anglo American

Anglo American plans to add a hydrogen-powered haul truck to its existing fleet at the Mogalakwena Central Pit platinum mine.

The elements of hydrogenpowered mining With regulations being written, trials underway and companies considering adoption strategies, hydrogen’s time may finally be here By Ian Ewing

ydrogen power has long been hailed as the energy of the future – but always seemingly a few years away. Despite decades of research, development and incremental gains, the use of hydrogen energy is today still mainly limited to a handful of niche industrial applications. But the case for hydrogen has strengthened, and in the mining industry, the pieces are finally coming together. Mining companies are trialling the technology, including, Anglo American, which is creating its own hydrogen-powered open-pit haul truck. Hydrogen technology companies are also interested in the mining market. DynaCERT (which produces a hydrogen-injection system for diesel engines), for instance, has partnered with Sudbury-based mining equipment supplier Total Equipment Services to create a Sparta-branded underground mining utility vehicle that is being tested at a currently unnamed northern Ontario mine. Also, in anticipation of hydrogen’s eventual use at operations, standards are being written to regulate safety and usage best practices and to give miners enough confidence in hydrogen to consider using it. Marc Bétournay is one of the people writing those standards. As a principal research scientist at CanmetMINING, part of Natural Resources Canada (NRCan), he has been working since 2000 to make hydrogen mainstream. Now, he thinks it is ready. “It’s entirely possible that within three years there will be hydrogen fuel cell vehicles on the surface at mine sites,” he said. “That is where it’s going to begin.” 32 | CIM Magazine | Vol. 15, No. 3

While the hydrogen-power researcher’s enthusiasm is understandable, he isn’t alone in seeing the potential of the fuel source. “Hydrogen is the energy of the future,” said Dominique Beaudry, corporate director for innovation at Agnico-Eagle, explaining that hydrogen power is one way mining can respond to climate change. “We are very interested,” she said, but added that her company has only just started working on its case study for hydrogen. Glencore Canada also sees a future with hydrogen. The company has trialled hydrogen at the Raglan mine, by using a hydrogen loop with electrolyser and fuel cells to store excess energy generated by a wind turbine for later use – and it is now exploring underground fuel cell vehicles as well. The obstacles to uptake – expense, safety and technological readiness – are open questions. The operational changes required and incomplete or non-existent guiding standards and best practices make adoption intimidating. And where is the need?

On the surface The potential energy savings are attractive enough to Anglo American that it is sidestepping the traditional mining OEMs by doing its own conversion of a 290-tonne diesel haul truck into what the company said is the world’s largest hydrogen-powered mining vehicle. Anglo American staffers (along with engineering support from U.K.-based Williams Advanced Engineering)

energy efficiency developed the conversion processes and the miner turned to suppliers such as Vancouver’s Ballard Power Systems to provide components. The truck’s diesel engine is being replaced by a hydrogen fuel cell module paired with a scalable high-power modular lithiumion battery system, controlled by a high-voltage power distribution unit delivering in excess of 1,000 kWh of energy storage according to Williams Advanced Engineering. Anglo American partnered with ENGIE, an energy services company, to provide on-site hydrogen generation capacity as well as storage and dispensing facilities at the open-pit Mogalakwena platinum mine in South Africa, where the haul truck will be used. “Refuelling is a specific area we are focused on,” said Anglo American spokesperson Katie Ryall, “since it’s a major benefit of hydrogen, in that you can refuel much faster compared to charging a battery electric vehicle.” “We can now generate our own fuel on site, eliminating our reliance on importing fuels and decoupling ourselves from the oil price,” she added. “The haul truck use case is very compelling, from an economic, environmental and technical perspective.” Ryall said this project will help address the reliability and safety questions around this fuel source. She sees commercially ready solutions for mining three to five years away, with adoption in the open-pit environment first. Ryall explained that the company has set out “ambitious” carbon and energy targets for 2030, and that hydrogen infrastructure will help enable a move to net zero carbon emissions. “To decarbonize our operations, developing a zero emission solution for materials movement is necessary. In the mobile application, hydrogen is well suited to the 24/7 activities at the site, where production is paramount and asset utilisation needs to be very high.”

SAFETY - First, Last and Always.

Under the earth The biggest single driver in the move to hydrogen underground may prove to be regulations surrounding diesel particulate matter (DPM) in underground environments. Since DPM in confined spaces was declared carcinogenic by the World Health Organization in 2012, regulatory agencies have implemented increasingly stringent limits. “There are limitations currently on the books for all the mining jurisdictions in North America, and elsewhere,” said Bétournay. The options for mines are to increase ventilation, or to decrease the quantity of DPM they emit. The cost of ventilation can be breathtaking. Instead, by removing diesel from underground, an operation can save 25 to 50 per cent of its ventilation costs, said Bétournay. “You could be talking about hundreds of thousands to millions of dollars per year per mine.” Ryan Sookhoo, director of new initiatives at Hydrogenics, a hydrogen technologies company observed, “there are some natural synergies for a zero emission vehicle to be used in a mine. observed. The carbon footprint of a mining operation and the ventilation requirements [underground] are primarily driven by the emissions of the vehicles in the tunnels. And miners can pay a high price for the fuel and the vehicles, because they can be fairly remote.”

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Hydrogen vs. electric Some of the benefits of hydrogen – reducing the carbon footprint, cutting down on energy costs – are already being

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May/June 2020 • Mai/Juin 2020 | 33

addressed by electrically powered vehicles, which have gained acceptance in underground mines. That acceptance is expected to grow over the coming years. According to the Hadapsar, India-based research company, MarketsandMarkets, ”electrical mining equipment is estimated to have a major stake post-2030, accounting for more than 40 per cent of the overall mining equipment market.” The company also predicts that “the electrification of mining equipment in Canada is estimated to be much faster than in the US and Australia.” While some may question if hydrogen can find a niche for itself given the earlier adoption of battery electric vehicles (BEVs) or if hydrogen is even needed, analysts Bernd Heid, Martin Linder, Anna Orthofer, and Markus Wilthaner at McKinsey & Co. make the case why there’s a role for it. In an article entitled “Hydrogen: The next wave for electric vehicles?” they outline the argument for hydrogen’s adoption. “Hydrogen and batteries are often portrayed as competing technologies, and batteries have received a lot of attention in recent years (‘proton versus electron’). The relative strengths and weaknesses of these technologies, however, suggest that they should play complementary roles. Battery electric vehicles exhibit higher overall fuel efficiency as long as they are not too heavy due to large battery sizes, making them ideally suited for short-distance and light vehicles. Hydrogen can store more energy in less weight, making fuel cells suitable for vehicles with heavy payloads and long ranges. Faster refueling also benefits commercial fleets and other vehicles in near-continuous use. How the technologies relate will depend mostly on how battery technology will evolve and how quickly cost reductions from scaling fuel-cell production can be realized.” There is another argument in favour of hydrogen: In remote locations where mines are forced to generate their own electricity, hydrogen-powered vehicles could be an attractive alternative to BEVs, especially if the mines rely on diesel or natural gas generators to produce electricity.

Hydrogen hybrids Hydrogen proponents are anticipating that fuell cell electric vehicles (FCEVs) will eventually become the dominant mining vehicle architecture, rather than battery electric. Hydrogen powered vehicles could offer similar use cases and physical and logistical infrastructures as diesel vehicles, with lower ventilation costs and none of the health risks. Modular fuel cells would allow full-shift endurance and similar power output as diesel engines. The vehicle architectures would be similar to battery electric vehicles currently in use or under development. “Usually the battery or electric drive train model is a precursor to the fuel cell,” noted Sookhoo. “A fuel cell vehicle is 90 per cent an electric vehicle.” To achieve this vision, the vehicle OEMs will need to get on board. “The next step in the market is to basically have the OEMs who already supply vehicles in the mining industry come to the table,” said Sookhoo. Once work begins in earnest, he predicts it will take about five to seven years to produce a commercialmodel fuel cell mining vehicle.

Setting standards for hydrogen usage The primary document governing the use of hydrogen in Canada is the Canadian Hydrogen Installation Code (CHIC), the 34 | CIM Magazine | Vol. 15, No. 3

2020 version of which is going to public review shortly. For the first time, the CHIC will contain a section on hydrogen in mining. “It’s sort of generic requirements and statements, just to make sure that this application is reflected,” explained Andrei Tchouvelev, a hydrogen standards and codes expert. But, he added, several provinces have formally adopted the CHIC into their regulatory process, and others are following. Compared to other commercial and industrial uses of hydrogen, surface mines and vehicles can already use largely the same standards and design criteria. Underground, there are additional challenges to overcome. Confined spaces amplify the potential effects of any released gas, in terms of both ignition and suffocation risk. Adequate ventilation is needed to maintain the concentration below the lower flammability limit (LFL) of hydrogen in case of leaks or damage, particularly in an environment where ignition sources abound. The ventilation requirement is less than that for diesel, but may require careful design of refuelling or dispensing points to ensure adequate airflow in those areas. “The next step is to be more practical, to look at the potential architecture of the vehicle and the configuration of a specific mine,” said Tchouvelev. But he thinks the industry is well positioned to make that step. “The amount of safety knowledge that has been accumulated [to date] is significant,” he added, mentioning research that has been conducted into hydrogen dispersion behaviour underground, training and emergency response requirements, and sensor technologies for leak detection. In designing dispensing architectures, Tchouvelev said, “We can lean on the experience with conventional [above-ground] refueling stations. It’s not like people are starting from scratch.” Part of that accumulated knowledge comes from the mining companies themselves, as Agnico Eagle, along with Glencore, Vale, Eldorado, and others, have been participating in hydrogen working groups led by NRCan, proving technologies and use cases, sharing research data, developing best practices, and identifying gaps in industry codes and standards for the use of hydrogen in the mining context.

Approaching the starting point Perhaps all this means that hydrogen is right where it has always been: a few years away. But beyond mining hydrogen is already a US$120 billion industry, with over 65 million tonnes produced annually. Increasing adoption in other industries, including public transportation (buses and trains), warehousing (where hydrogen-powered forklifts are becoming common), and shipping (everything from UPS trucks to container ships) points to momentum that the mining industry might be wise to take advantage of. “If you wait too long, you’re going to end up taking the fuel cell that was already designed for a train and having to adopt it to mining,” cautioned Sookhoo. “But if you get into the discussions now, maybe you can get a fuel cell that’s the perfect hybrid between a train engine and a mining engine, and leverage the volume and cost savings from that synergy.” Bétournay thinks that work will begin soon. He said some battery electric equipment manufacturers have already been approached by mining companies looking for hydrogen fuel cell vehicles. And at a roundtable discussion in December, he added, “the consensus on hydrogen ranged from ‘it’s an interesting option’ to ‘when can we start using it?’” CIM

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Letâ&#x20AC;&#x2122;s show them what we are all about. In partnership with Science North, CIM is developing a mineral literacy program to increase and improve public awareness of the minerals and metals industry. Our Earth's Riches (working title) will be a state-of-the-art travelling exhibit that will be on display full-time at science centres, museums and other venues across Canada. We estimate Our Earth's Riches to provide an exciting interactive experience to 1.5 million Canadians who will learn about our industry's commitment to advanced technology, safety, sustainability, and diversity and inclusion. In other words, the real minerals and metals industry. We can't do this alone. We need your help to make Our Earth's Riches a reality. Financial and in-kind support is needed and if you or your company feel this is important to the future advancement of our industry, please donate.

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Courtesy of Christian Stiebahl

B2Gold Corp. is building a $38 million hybrid solar/heavy fuel oil plant at its Fekola mine in Mali, and expecting to save $9 million in energy costs per year.

Banking on the sun Although construction on B2Gold’s solar plant in Mali is currently on hold, the company is committed to the alternative energy source By Lynn Greiner

uilding on the success of the solar project at its Otjikoto mine in Namibia, B2Gold’s Fekola mine in Mali will eventually be home to one of the largest off-grid hybrid solar/heavy fuel oil (HFO) plants in the world. Originally slated for completion in the third quarter of this year, construction has been temporarily suspended due to issues related to COVID-19 (it is expected to be finished within six months of restarting). When commissioned, the plant will provide 30 megawatts of power in addition to the existing 64 megawatt HFO and diesel capacity. The solar plant will also have a 15.4 megawatt hour battery component with up to 17.3 megawatts of discharge power.

Why solar? B2Gold originally began processing ore at Fekola in September 2017, but within a year the company wanted to expand its operations and increase its throughput from six million tonnes per annum to 7.5 million. Eight CAT 16CM32 HFO generators and four CAT 3516B diesel generators (totalling an installed capacity of approximately 64MW) powered the plant, but the expansion provided an opportunity for B2Gold to reduce some operating costs while reducing the company’s carbon footprint. An additional source of power wasn’t strictly needed – after the expansion is completed, the power demand will be 40 megawatts, an amount the existing HFO plant can meet – but adding in another energy source makes more engines available for maintenance. “At the time we were making [the original] construction decision for Fekola, we looked at a number of sources of energy,” 36 | CIM Magazine | Vol. 15, No. 3

said Dennis Stansbury, senior vice-president of engineering and project evaluations at Vancouver-based B2Gold. “We’re a long way from the grid in Mali, and the amount of power available on the grid was in question, so we had to do something standalone and made the decision to construct the HFO plant. “When we later looked at upgrading the power plant, we looked at wind generation, but there are insufficient sustained winds, and the combination of a flat countryside and a river that dries up for part of the year meant that hydro power was out. That left solar as the best option to combine with our existing power plant. “When we ran the numbers with all the current information, it has about a four-year payback,” Stansbury said. “And so my question… wasn’t, ‘well, why did you do solar?’ It was ‘why would you not do solar?’ It’s has a very short payback and that’s why we went so big and chose a 30 megawatt plant.”

Reasons for the switch Money, for starters. Based on our study assumptions, total estimated cost savings will be about $9 million per year; the mine’s life has now been extended to 2030, with B2Gold expecting “significant estimated increases in average annual gold production to over 550,000 ounces per year during the five-year period 2020–2024 and over 400,000 ounces per year over the life of mine” working on the estimate of 81 per cent indicated and 19 per cent inferred mineral resources. The solar plant, with a capital cost of $38 million, will reduce processing costs by more than seven per cent, and save at least

13.1 million litres of HFO per year. The environment wins too – CO2 emissions will shrink by about 39,000 tonnes per year, and on a sunny day the solar power will allow at least three of the HFO generators to be shut down for maintenance during the day without affecting production. The icing on the cake, Stansbury said, is that by using batteries, the operation will be able to almost entirely dispense with the use of the diesel generators, which are currently used only in situations that require emergency power such as taking a mill down and quickly restarting it, as they are able to spin up power rapidly to meet spikes in demand. (HFO generators, which produce power at about two-thirds the cost of diesel generators, are not as efficient for quick-start or emergency situations in the same way as diesel ones, as they take longer to bring on line, and run most efficiently The seven megawatt solar power plant at B2Gold’s Otjikoto Mine is serving as a model for the one at Fekola. when used at 85 per cent of their nominal capacity). B2Gold is considering omitting diesel generators therefore how much solar power, to expect on any given day. It from future plant designs, even those without solar, and using even includes cloud detection capabilities. on-demand battery power to take up the slack when necessary “If you have a day, [when] you’ve got some sunshine and then and then recharging the batteries with excess HFO (or solar) you’ve got some clouds, and you’re trying to produce a significapacity. cant amount of your power with solar, you have to keep what we The solar installation at Fekola will consist of 92,736 mono- call spinning reserve online,” Stansbury explained. “What that crystalline passivated emitter and rear cell (PERC) solar mod- means is if the cloud bank thickens a little bit, the production ules (385/390 watt-peak capacity) from Canadian Solar from your solar panels is going to drop. You have to make sure arranged in 3,312 strings over 69.4 hectares, connected to 276 that you have enough HFO generators online that they can pick inverters. The arrays use a single-axis tracking system from up that difference. So, on a cloudy day, let’s say you really need Array Technologies that tips the panels up to maximize the two generators running at 85 per cent efficiency – that’s kind of amount of solar radiation they receive at any given time of day. the sweet spot – and your solar is picking up the rest of it. But if A dual-axis tracking system that also turns panels from side to you’ve got a cloudy day, you probably have to run three engines side was evaluated, but it was determined that the additional because you need that spinning reserve to pick up any drop that complexity and capital cost associated with this could not be you might have in the solar production because of clouds or any justified. other interruptions. Everything is pulled together and controlled by an integrated “With the battery system, you don’t need to do that, you just control system that is being developed to combine Wärtsilä’s run the two engines you need. If there’s a period of time where GEMS system with the existing supervisory control and data additional power is required, the battery supplies that power, so acquisition (SCADA) system being used to currently run the HFO it allows you to run your fuel engines much more efficiently plant. This integrated control system counters power spikes, because you have the batteries as part of your system.” allows startup of milling equipment without firing up additional That saves a lot of money since the HFO engines do not run engines, and permits operations to maximize the time HFO efficiently at 60 to 65 per cent capacity. It is harder on them, as engines are down. The system also allows for remote monitoring they do not achieve complete combustion of the fuel. Running of the power station. As solar output increases in the morning, them at a fairly high load minimizes the amount of fuel congenerators can be shut down, minimizing wear and fuel consumed per kilowatt hour and is easier on them from a maintesumption. The automated system compensates for issues with nance point of view. The batteries recharge once requirements generators, even in the middle of the night, feeding battery abate using excess output from either the solar or HFO generapower to keep production running uninterrupted. tors, as it is available. B2Gold relied on two German renewable energy companies B2 Gold is developing several other deposits near the Fekola Suntrace (which was the project lead) and BayWa r.e. to do the operation. With the addition of solar power at Fekola, it may be project analysis, engineering designs, layouts, final cost esti- possible to power other smaller processing plants from the cenmate, and procurement evaluations. As the project progresses, tralized Fekola power installation and do so at a lower cost than their employees will also assist with site installation, commis- other power supply options. “The logic of keeping [all of the sioning and training of the solar plant operators. power generation capacity] in one plant makes a tremendous amount of sense. So we’re looking at ways that we can expand Tracking the weather the solar component and probably expand the battery compoThe final piece is a weather forecasting system by Reuniwatt nent to the plant if we were to add additional production facilithat allows operators to figure out how much sunshine, and ties in the area,” said Stansbury. CIM May/June 2020 • Mai/Juin 2020 | 37

Courtesy of Christian Stiebahl

energy efficiency

Courtesy of Jocelyn Bouchard

Finding efficiency through better housekeeping Paying attention to process control leads to significant savings for mineral processing plants By Carolyn Gruske

rocessing plants have the reputation of being energy inefficient, but a recent study has put some hard numbers on their energy usage. After investigating three industrial grinding mill circuits operated by Agnico Eagle Goldex Division, Mine Canadian Malartic and New Gold New Afton Mine, researchers concluded “on average, 79 per cent of the supplied electrical energy was converted to heat absorbed by the slurry, eight per cent was lost through the drive system and approximately two per cent was transmitted to the ambient air. Only nine per cent of the input energy was actually used for grinding.” In this regard, not much has changed in a very long time. As the lead author of the paper “Breaking down energy consumption in industrial grinding mills” (published in CIM Journal Volume 10, Number 4, 2019), Jocelyn Bouchard, a Université Laval associate professor of chemical engineering, believes there are easy efficiencies to be gained and energy to be saved. CIM Magazine spoke to Bouchard and asked him about making processing plants more efficient.

CIM: What can mineral processing operations do to improve their efficiency? Bouchard: A good example is ball mills. In most of the operations, you can process a little bit more material if you find the optimum operating point with roughly the same amount of energy, so the plant [energy] output will not change, but the amount of material you are processing is greater. If you look at the energy per tonnes you are using, it’s going to be a lower number. This, I think, is a good starting point. You try to maximize your asset utilization and use your equipment to a maximum capacity. Just with that, you can probably improve the energy 38 | CIM Magazine | Vol. 15, No. 3

consumption figures by anything from five to 15 per cent. Fifteen per cent could be a bit of a stretch, but from a simulation we are conducting currently, I would say five to 12 per cent is reasonable.

CIM: Could you explain how you achieve this optimization? Bouchard: There are many things you can do. Often people will target a certain product size that is based on offline laboratory work that has been done prior to the project or is being routinely done every few months, just to check if they are targeting the right particle size. But this target should be changing all the time, perhaps every six hours, every 12 hours, or even every hour, depending on the characteristics of the ore you are currently processing. If you measure online – or even offline – more frequently, ask “am I in the right target?” and readjust that target, you may be able to process more ore. You are probably targeting a product size that is much smaller than you actually need to reach your grade recovery target for your final concentrate or even reach the recovery in a gold plant. For instance, typical values are 75 microns. If you just get the 75 microns to 80 or 82 or 83 microns, you might have five, 10 or 12 per cent less power utilization in your plant, so it makes a huge difference.

CIM: Does changing the size affect anything else? Bouchard: If you are already at the right target, then you cannot process more. You can process slightly more, but not by changing the target. One way to do it is to systematically monitor and control the entire distribution online. We have sensors that can do that.

energy efficiency CIM: What are some simple, doable things mines can do right now to improve mill efficiency? Bouchard: Design a proper control strategy. The very basic ones would allow you to reach a steady operation and maintain it. This is not always done properly. Before I became a professor in 2012, I worked for a few years in the industry. A very good friend of mine, Eduardo Nuñez, and I were working in the same place, in the process control group. He was doing a project in a mill, and he implemented a very simple control strategy. Everything was already in place there. The most basic controls we used, PIDs (proportional-integral-derivative controllers) were just looking at density measurements downstream, the hydrocyclones, and the level in the pump box of the grinding circuit – and just doing so, he decreased the kilowatts per tonne by seven to eight per cent. It was not a very sophisticated project. This was something very simple. It can be done. The plants already have the hardware to do it. They may lack the in-house expertise to do it, but we have consultants around that can do that.

CIM: If plant managers want to improve their process control systems and procedures, where do they start? Bouchard: There’s a guy at BBA, Michel Ruel. He’s very wise and he always says, “Do your housekeeping first.” So, look at everything you’ve got implemented already and make sure it works up to your expectations. Just doing that will probably bring you 50 or 60 per cent of the benefits. But you need people who are able to understand controllers and make them work properly. Quite often, it’s hard to find the right people in the plant to do that. Since the plant is running, operators will put the controls in manual, handle the plant the best they can, and at the end of the day, they will probably make their budget anyway. Then they’ll say, “I don’t need the controller.” So, start from the basics, check all your controllers, make sure all your instrumentation is working fine, and make sure there are no configuration problems in your control system, because that is a very common problem.

CIM: What is the next step? Bouchard: It’s funny. Lots of people do the next step as the first step. They will look to technology. In all the plants, there are normally two types of industrial controller – the programmable logic controller (PLC), and sometimes you will have a distributed control system (DCS) as well. In the early days, they were very different technologies. Now, they both do a bit of what the other does. Some plants will still have PLC for the basic control layer and then they will add the DCS for a second layer, but now, we can assume all the plants work either on one or the two systems and they should have this first technology layer working properly. For the second step people look at more technology. Instead of doing the housekeeping, they will start right off the bat with model predictive control (MPC) technology. To do that, you need to purchase a new system, you need new hardware. Predictive control technology is very powerful. We do lots of applications in our research using this. It has been used for decades in the oil and gas business and it works fine. It’s very sophisticated and it lets you do lots of things you can’t do with PID controllers. What people like about [predictive control technology] is that it’s kind of a black box that does magic and can make some predictions. People think it will solve all their problems. If you start with that on a shaky foundation, it ain’t going to work. People see that and

then they pull the plug and say “that control doesn’t work.” But if you did your housekeeping properly, the second layer is when it’s time to think about MPC. With MPC, you can have actual mathematical optimizing done. Imagine a bell-shaped curve with the peak of the curve being up – with optimization you have a mathematical function and you are trying to find the peak of it, and what will bring you to the peak. This is what we call form optimization in the sense that you are not just trying to do better. You are trying to find the best point of the curve where you are going to be operating at the highest throughput or the highest profit or whatever. The controller has a cost function. The cost function will be defined as you will, meaning you can set the controlled variable to be at a set point. So you add the throughput to the cost function. As long as you are increasing the throughput, your cost will be going down. So, at every control interval, say every two seconds, the optimization routine will be trying to find what are the best conditions that will bring you to your lowest cost. That’s what can be done with MPC. When you do MPC as well, it’s time to look at new sensors. I was talking before about size distribution sensors, so this is when you’d start implementing those. You may want to think about sensors on your ore feed. You can have a camera on your conveyor trying to estimate your size distribution or even the content of your ore in terms of grades. Once you go there, the next step is what we call real-time optimization. Real-time optimization is still doing optimization, but it’s not doing it dynamically. It will look at optimal operating conditions in terms of what the market is doing, what is the price of the concentrate on the market, what zone of your mine you should be exploiting now. Real-time optimization is not executed every second or every minute. It will be looking at it more like every day or every shift, so it’s less frequent.

CIM: What level are most processing plants at? Bouchard: Real-time optimization is still the Holy Grail. I don’t think anybody is doing it. Perhaps in oil and gas, but I haven’t seen any applications. Most are still at step one [the housekeeping stage]. Even there, there are different types of layers. Some plants are doing very well, and I understand why they aren’t doing more because they’re happy with what they’ve got, and that’s fine. For the second step, we are starting to see some applications. I know Agnico Eagle implemented some MPC controllers in their grinding circuits. I think it was two years ago. I haven’t seen the results, but apparently they are very satisfied with them. The types of plants that are doing the second technological level pretty well are still rare. And even the first level done well is rare. One point I’ve mentioned before is to make the most out of what you have at hand before trying to purchase new hardware, gear, equipment. Try to see if you are using what you have to the maximum extent. Ask, “am I getting all the benefits I am supposed to get from it?” I think that’s always the first step you should take and by doing so, you save money and you invest in people, because a lot of people will be developing applications using your equipment, your facilities. You are training your people as well, so you’re working on the human asset and not just on the equipment asset side of things. That should be there. I think it’s the most important thing and it’s sometimes missed by some people, because it’s not sexy. CIM May/June 2020 • Mai/Juin 2020 | 39

Zeroing in on

CO2

As miners commit to reducing their carbon footprints, the scope of that commitment continues to grow By Cecilia Keating

ver the past year, BHP, Rio Tinto, Vale and Teck have pledged to reach “net-zero” emissions by 2050. Now, the race is on: in Canada and farther afield, miners are decarbonizing by deploying electric fleets, sourcing greener power and developing cleaner strategies for smelting and shipping processes. “Going green used to be nice-to-have. Now it’s become mainstream, with the likes of [mutual fund company] BlackRock coming out to say that environmental, social, governance (ESG) [accountability] forms a major part of its decisions on whether to invest in mining stocks,” said Julian Kettle, vice-president of metals and mining at energy consultancy Wood Mackenzie. Decarbonization efforts by miners thus far have been “underwhelming,” he said, and promises like Rio Tinto’s recent pledge to spend US$1 billion (CAD$1.4 billion) on green initiatives are a “good start, but need to ramp up quickly,” – a course, he noted, that is now complicated by the outbreak of COVID-19. Some pathways to decarbonization sites are tried, tested and cost-competitive. At new mines, renewable energy-sourced electricity often makes business sense, given that clean energy is, by definition, greener and can also be cheaper than power sourced from fossil fuels. Other decarbonization strategies require further innovation and investment. The availability and maturity of electric equipment for surface mining is lagging behind underground mining, and efforts to decarbonize carbon-intensive processes such as steelmaking and aluminum smelting – increasingly seen as partly the mining sector’s responsibility – are in an even more germinal stage. Scrutiny of carbon emissions inevitably begets more scrutiny and reveals a further challenge to commodity producers. Scope 3 emissions, or emissions incurred off-site and further down the chain including shipping, smelting and end use of materials, can 40 | CIM Magazine | Vol. 15, No. 3

be as much as 30 to 40 times higher than a mine’s on-site operational and power emissions. For example, in 2019 Teck produced 290 kilotonnes of carbon emissions from off-site electricity, 2,936 kilotonnes at its operations, and 73,000 kilotonnes later down the supply chain. In other words, 96 per cent of carbon emissions were incurred after the materials left operations. Similarly, in 2018 Vale’s scope 3 emissions were responsible for 96 per cent of the company’s total emissions. These were primarily split between shipping vessels (two per cent) and clients (93.9 per cent). As such, a growing number of investors and consumers are calling on the industry to expand “net-zero” pledges to include scope 3 emissions. Miners have so far omitted supply chain emissions from their 2050 commitments, noting that they are hard to measure and shared among a myriad of companies, but attitudes are changing, with major industry associations acknowledging the need to report scope 3 and the advent of a growing number of collaborations between mining companies and downstream customers that set out to better count and tackle supply chain emissions. Moreover, a more holistic and easy accounting regime for the mining sector beckons, thanks to a new carbon accounting framework being developed by a Rocky Mountain Institute-led coalition.

Electric dreams While Canada is home to many of the underground mines that are deploying battery electric equipment – including Newmont

feature

Goldcorp’s Borden operation, Kirkland Lake Gold’s Macassa operation and Glencore’s under-construction Onaping Depth project – electric surface mining is much earlier on the development curve, both at home and abroad. Nouveau Monde Graphite released a feasibility study for its Matawinie open-pit graphite project in 2018 that conceived a fully electric mine. Progress is constrained by the limits of low-carbon surface equipment, according to Verónica Martinez, senior program officer for innovation and climate change at the International Council of Mining and Metals (ICMM). “We’ve seen huge progress in terms of electric vehicles and trucks in the past few years, but the scale of what is needed in the mining industry – for example, a 400-tonne haul truck – is quite different,” she said, explaining that 80 per cent of operational emissions on mine sites emanate from mobile equipment. “Even if companies want to adopt technology or buy off-the-shelf technology right now to cut [operational emissions], the technology is not available,” she added. The ICMM’s Innovation for Cleaner Safer Vehicles (ICSV) connects its 27 members with leading original equipment manufacturers (OEMs) to encourage the adaptation of existing technologies and the creation of pilot projects for newer

technologies. The initiative is designed to promote the commercialization of zero-carbon surface mining vehicles by 2040. “If we want to have the technology commercially available by 2040, that means that between now and 2030, we have to develop and test the technology before we can incorporate it at scale. So, it may seem like 2040 is a long [time away], but actually we don’t have that much time,” Martinez said. Peter Wan, technology and innovation lead at Teck, an ICSV contributor, emphasized the urgency of trialling and deploying electric mobile equipment to delegates at the SME MineXchange Conference and Expo in February – the same month that Teck unveiled its new target: to be a carbon-neutral operator by 2050. “If we buy a fleet of trucks today, we’re only one fleet cycle away from 2050,” Wan said. Teck is taking a staged approach to deploying zero-carbon equipment, Wan explained. Given that first movers typically pay a “capital premium,” the plan is “identify those sectors that have maturity, where prices are already coming down to ‘early majority’ prices,” he said. (Early majority refers to the first sizable chunk of the market to invest in an innovative solution, following brave early adopters. Early majority pricing is typically lower than introductory pricing but higher than when the item is more of a commodity.) Then, Teck will adopt the technology those industries use and “help drive the mining market.” An example of this is a pilot project at its Elk Valley operations, where two Lion Electric buses have been introduced for crew transport. Saint-Jérôme, Quebec-based Lion has existing school bus customers across North America and it also offers Class 8 OTR trucks and garbage trucks, so Teck can benefit from that experience, even if mining applications are a new usage for the vehicles. Introducing electric vehicles on site involves overhauling operating philosophies, Wan added. For example, the recent trial of a 15-tonne autonomous electric haul truck made by Volvo demonstrated that the miner could reduce truck sizes but maintain productivity. An electric-first mindset also throws open the door to alternative approaches such as in-pit crushing and conveying and reimagines how material is handled. Wan noted that a lot of the surface equipment used by Teck today, including 300-tonne haul trucks, Caterpillar D11 dozers and Caterpillar 24 motor graders, are “simply not available” as electric models.

Powering up Renewables are already the cheapest source of electricity in many parts of the world, and they are predicted to become even more affordable. The International Renewable Energy Agency forecasts that electricity generated by onshore wind and solar photovoltaic (PV) technologies will be “consistently” cheaper than electricity by fossil fuels worldwide in 2020. Financial savings are one of the reasons why mining is fast becoming one of the biggest corporate buyers of renewable energy. Anglo American signed a US$190 million (CAD$273 million) deal with Atlas Renewable Energy in March for 15 years of solar power from a to-be-constructed 330 megawatt solar plant. In late 2019, BHP signed four deals for renewable power that would reduce power costs at its Chilean copper mines by 20 per cent while fully transitioning their electricity supply off fossil fuels. The economics of the switch were so rosy that BHP set aside a provisional US$780 million (CAD$1 billion) in its financials to nix preexisting coal deals. May/June 2020 • Mai/Juin 2020 | 41

Market challenges are the primary barriers to the full decarbonization of power at mine sites, according to ICMM’s Martinez, with many miners committed to long-term fossil-fuel-power agreements signed before renewables became competitive. At remote mines, developing an on-site clean energy powerplant backed by energy storage is more feasible than inking a clean energy deal with a utility or renewables developer. At Glencore’s Raglan nickel mine in northern Quebec, six megawatts of

Breakdown of scope emissions SCOPE 1: DIRECT GHG EMISSIONS • Direct GHG emissions occur from sources that are owned or controlled by the company, for example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, and other sources, as well as emissions from chemical production in owned or controlled process equipment • Direct CO2 emissions from the combustion of biomass shall not be included in scope 1 but reported separately • GHG emissions not covered by the Kyoto Protocol, e.g. CFCs, NOx, etc. shall not be included in scope 1 but may be reported separately

SCOPE 2: ELECTRICITY INDIRECT GHG EMISSIONS • Scope 2 accounts for GHG emissions from the generation of purchased electricity consumed by the company. Purchased electricity is defined as electricity that is purchased or otherwise brought into the organizational boundary of the company • Scope 2 emissions physically occur at the facility where electricity is generated

SCOPE 3: OTHER INDIRECT GHG EMISSIONS • Scope 3 is an optional reporting category that allows for the treatment of all other indirect emissions • Scope 3 emissions are a consequence of the activities of the company, but occur from sources not owned or controlled by the company • Some examples of scope 3 activities are extraction and production of purchased materials; transportation of purchased fuels; and use of sold products and services Source: World Resources Institute and World Business Council for Sustainable Development, Greenhouse Gas Protocol – A Corporate Accounting and Reporting Standard – Revised Edition

42 | CIM Magazine | Vol. 15, No. 3

wind energy with three megawatts of energy storage displaces some four million litres of diesel annually. The four-turbine 9.2 megawatt wind farm at Rio Tinto’s Diavik mine has been in operation since 2012. The most ambitious on-site renewables projects, however, are happening outside of hydroelectricity-rich Canada, in remote locations where diesel is expensive, supply chains precarious and electricity grids strained. Rio Tinto is investing US$98 million (CAD $140 million) on a battery-backed 34 megawatt solar array to power its Koodaideri iron ore mine in Western Australia, which will satisfy 65 per cent of the mine’s power needs. Canadian miner B2Gold is building a 30 megawatt solar plant at its Fekola gold operation in Mali (see page 36) – powerful enough to save 13.1 million litres of heavy fuel oil a year. As the clean energy industry matures, new financing models are making on-site renewables deployment less onerous. In Mali, Resolute Mining has enlisted British renewables and microgrid developer Aggreko to build a hybrid power plant at its Syama gold operation that includes 20 megawatts of solar and a 10 megawatt storage system. Aggreko sells the power to Resolute through an “extendable” 15-year power deal. Resolute’s CEO John Welborn described it as a “compelling” offer for an operation with decades of potential beyond its official 15-year life. Aggreko remains the owneroperator and financier of the power project and capital expenditures remain off Resolute’s balance sheet. “It’s a longterm offtake agreement, with a significant capital demand that’s met by Aggreko. That’s something that certainly as a miner is new,” Welborn said. “It’s the perfect fit for the solution we’re looking for.” The plant will cut energy costs from the current US$0.23 - 0.28 per kWh to US$0.15 per kWh and reduce carbon emissions by 20 per cent. The energy transition offers Resolute an opportunity to bolster its relationship with nearby communities. The miner has signed a separate agreement with Aggreko to explore ways to provide electrical power to locals. “Instead of trying to access power infrastructure that is either not there or going to struggle to be financed, we are actually reversing that by bringing financing, operating and development of power infrastructure that can create microgrids in and around the mine site,” Welborn said. “The downstream impacts on health, on education, and on quality of life will actually come from the electrification of emerging economies. That’s potentially a more immediate benefit than the environmental one.”

The challenges of scope 3 While there is little debate over miners’ responsibility to cut down operational and electricity emissions, downstream emissions, or scope 3 emissions, are more contentious. In March, Rio Tinto chairman Simon Thompson rejected proposals to set scope 3 emissions targets, claiming that they are “primarily the emissions of our customers, mainly steelmakers in China, over which we have very limited control.” Others contend that the inclusion of scope 3 emissions is imperative and their omission renders mining companies’ 2050 ‘net zero’ targets meaningless. “Decarbonizing on the site level is within miners’ control and they’ve made that commitment, but in the grand scheme of things it won’t change the world. When it comes to emissions, the issue is in the smelting stage,” explained Wood Mackenzie’s Kettle. Andrew Grant, head of oil and gas at financial think tank Carbon Tracker, said that the omission of scope 3 emissions “has an impact on how relevant the targets are.”

A McKinsey report published in January noted that 28 per cent of global carbon emissions are scope 3 emissions from mining, with coal combustion and steel and aluminum production the biggest contributors. Scope 1 (operational) and scope 2 (offsite electricity) combined are estimated at one per cent.

“Decarbonizing on the site level is within miners’ control and they’ve made that commitment, but in the grand scheme of things it won’t change the world. When it comes to emissions, the issue is in the smelting stage.” Julian Kettle, Wood Mackenzie vice-president of metals and mining

There is growing industry recognition that scope 3 must be included. ICMM updated its climate change position in late 2019 to include a commitment to collective engagement with third parties to determine the best approach to reporting scope 3. Vale and BHP have vowed in the last six months to set public scope 3 reduction goals in 2020. It’s no small feat: the former’s scope 3 emissions make up 95 per cent of the company’s carbon footprint, while the latter’s make up 97 per cent.

Collaborating for mutual benefit “Scope 3 is the hot topic right now,” ICMM’s Martinez said, adding that the increased scrutiny will prompt “more collaborations between companies and customers to develop strategies around how to invest in [clean] technologies and engage in carbon accounting across the supply chain.” One example is ELYSIS, a Montreal-based joint venture from Rio Tinto and Alcoa that has successfully managed to decarbonize an aluminum smelting process that has remained essentially unchanged since its invention in 1886. ELYSIS is working with the partners, together responsible for 10 per cent of global aluminum production, and Apple. “It’s the biggest breakthrough in [the aluminum industry] in history,” explained ELYSIS’s CEO Vincent Christ. “It’s mind boggling. We sometimes call it the holy grail because of its uniqueness.” Traditional methods of aluminum production – which account for one per cent of annual greenhouse gas emissions, according to research from Columbia Center on Sustainability Investment – involve passing an electrical current through a large carbon anode, which burns off and emits carbon dioxide into the atmosphere. The new technology uses an inert anode instead, and emits oxygen. ELYSIS intends to commercialize the technology by 2024 and sold its first batch of carbon-free aluminum to Apple in December. Construction of a research facility in Saguenay, Que., is underway. It is scheduled to open in the second half of 2020. “This is one of the rare cases, where a breakthrough technology also brings increased productivity, a decrease in production costs, and immunization against tariffs linked to any carbon pricing mechanism,” Christ explained. He added that having “an investor like Apple brings an angle of customer view into what we are doing, which is very useful.”

The initiative – which has benefitted from investments of $13 million from Apple, $55 million from Rio Tinto, $55 million from Alcoa, and $120 million in total from the federal and Quebec governments – is one of a number of cross-sector partnerships borne out of a collective need to limit the carbon intensity of supply chains. Chilean copper miner Codelco is working with BMW to develop and introduce new sustainability standards to the copper supply chain, Europe’s biggest iron ore miner LKAB has joined forces with steelmaker SSAB and utility company Vattenfall to develop what they call fossil-free steel. And while Rio Tinto maintains it has “limited control” over scope 3 emissions, the company signed an agreement in the fall with China’s largest steelmaker Baowu Steel Group and Tsinghua University to explore ways to curb carbon emissions in steelmaking.

But whose responsibility is it, anyway? Questions about the responsibility of scope 3 emissions are not unique to the mining sector, according to Suzanne Greene, manager of the sustainable supply chains program at the Massachusetts Institute of Technology (MIT). “It’s across the board. What part of your scope 3 do you actually control? What part do you procure? What part can you dictate what happens? Which part is out of your hands? […] To me, it opens a larger philosophical discussion about who is responsible for which parts of the supply chain,” she said. Greene recommended that miners sink efforts into measuring and reducing the scope 3 emissions within their reach. “The most power [miners] have is in low-carbon procurement of their own supply chain. Transportation could be one of those things. They pay directly for their iron ore or copper to go on a ship to China, and that’s something they can really get reliable numbers on. What type of ship did it go on? Where did it port? How far did it travel? How much weight did it carry?” she said. “Those are more reliable numbers than, for example, what happens after [the material] leaves China.” Greene coauthored the Global Logistics Emissions Council (GLEC) Framework for logistics emissions and is now working on a new methodology, dubbed the Coalition on Materials Emissions Transparency (COMET) framework, which will allow stakeholders across the mining supply chain to evaluate and compare the embodied carbon emissions of different products. COMET was launched by MIT’s sustainable supply chains initiative, the Rocky Mountain Institute (RMI), the Colorado School of Mines and the Columbia Center for Sustainable Investment at the World Economic Forum in January 2020. It is aiming to establish a universal, standardized approach to measuring supply chain emissions in mining within 12 to 18 months. The framework will shy away from averages found in other carbon reporting approaches, and make reporting “easier to deal with and more accessible,” according to Greene. “Right now, it is just so complicated. You need a PhD to even think about it. We want to take it out of that zone,” she said. The push for corporate scope 3 accountability is relatively new, RMI’s director of materials initiatives Paolo Natali explained, having emerged in a somewhat unmethodical manner due to pressure from two very different stakeholder groups: downstream companies looking to clean up their procurement processes, and heavy industry investors concerned with climate risk. “Methodological rigour has only recently started to become an issue, and all the implications – primarily the problem of enabling actual traceability versus industry averages – are a relatively recent thing. That’s why we’re getting to it now,” Natali said. CIM May/June 2020 • Mai/Juin 2020 | 43

VIRTUAL PROGRAM

First VIRTUAL Uranium Conference! Stay connected! Launch date planned for early June 2020

The conference will mark the 4th edition of the decennial Uranium Conference and the first virtual conference of Uranium at MetSoc!

Learning at your ﬁngertips – when you want, where you want Live webinars with keynote and invited talks

Organizing Committee

CHAIR Chuck Edwards Extractive Metallurgy Consulting

44 | u2020.metsoc.org

HONORARY CHAIR Engin Ozberk Mitacs

COMMITTEE MEMBERS Rashid Bashir Lassonde School of Engineering, York University Mark Bellino Hatch Mike Dry Arithmetek

Arthur Lieu NexGen Energy Ltd. John Root Sylvia Fedoruk Canadian Centre for Nuclear Innovation Inc. Nathan Tedford Hatch

CONFERENCE PRESENTATIONS AND PAPER HIGHLIGHTS Uranium, thorium and other nuclear fuels: processing, refining and conversion CO2 emissions, environmental protection and regulatory issues Business and economic aspects of uranium extraction and utilization Uranium geology (exploration techniques, geochemistry, ore deposits and mineralogy) Uranium production (uranium mining technologies and methodologies, heap & stope leaching) Uranium mining and milling waste management (decommissioning, remediation and long-term monitoring, tailings and waste rock management) Practices for respectful conversations about nuclear technology

TECHNICAL CHAIR Rashid Bashir, Lassonde School of Engineering, York University

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2019-2020

DISTINGUISHED LECTURERS THE PROGRAM The CIM Distinguished Lecturers program started in 1968 and has continuously provided a lineup of individuals who have shared their knowledge with the mining community for over five decades. Every year, the lecturers are elected by their peers through the CIM Awards program and hold the title for a complete season (September to June). CIM is privileged to count more than 260 of the industry’s finest as its lecturers. Because the motto “once a lecturer, always a lecturer” defines our pride and dedication in ensuring that the learning curve is endless,

For more information, contact: Dist_lecturer@cim.org | 514.939.2710 ext: 1344

a complete list of past lecturers is available at www.cim.org, where you can beneﬁt from the ever-growing pool of expertise that the program has to offer.

HOW IT WORKS The Distinguished Lecturers program is offered to 41 CIM Branches, 10 Technical Societies and 12 Student Chapters. Universities can also request a lecture. CIM National defrays the cost of air travel, while the requesting body covers local expenses (accommodation, transportation, etc.)

To book a Distinguished Lecturer visit: https://www.cim.org/request-a-lecturer/

Proudly sponsored since 1972 by the CIM Foundation, whose continuous support and generosity allows the CIM Distinguished Lecturers Program to connect CIM members with leading industry expertise. The CIM Distinguished Lecturers program is owned and operated by the Canadian Institute of Mining, Metallurgy and Petroleum (CIM).

Courtesy of Canadian Mineral Processors Society of CIM

CIM news

Tom Shouldice (left) with Alex Doll

Craig Hudson (right) with Rebecca Payant

Mark Adams (left) with Scott Martin

Chuck Edwards (right) with Stuart McTavish

And the CMP winners are… Excellence in mineral processing was celebrated at the annual CMP Conference By Michele Beacom

he Canadian Mineral Processors Society of CIM kicked off this year’s awards ceremonies on Jan. 22. Here is the roster of winners: Tom Shouldice, CEO at Base Metallurgical Laboratories Ltd., won the Mineral Processor of the Year Award. Over his 25-plus year career, Shouldice has made significant technical contributions to process development for many significant projects and mines currently in production. The Bill Moore Special Achievement Award for early-career members of CIM/CMP went to Craig Hudson, principal metallurgist at Atlantic Gold Corp. Mark Adams, a director at Outotec, won the Ray MacDonald Volunteer Award in recognition of his 15 years of committed volunteering in both the mining industry and in the community. At the SAG 2019 conference in Vancouver in September, Greg Lane was presented the Art MacPherson Comminution Award for his work in comminution circuit design with a focus on energy and cost efficiency. Chuck Edwards, in recognition of his extended career in mineral processing, was awarded the CMP Lifetime Achievement Award

Jean-François Dupont took this year’s CMP Best Presentation Award. The following student awards for were handed out: • Andre Laplante Memorial Scholarship: Kyle Owen-Springer • Byron Knelson Memorial Scholarship: Kyle Lamont • 1st Lucky Amaratunga Technical Report Competition: Luke Visconti • 2nd Lucky Amaratunga Technical Report Competition: Laurence Boisvert • 3rd Lucky Amaratunga Technical Report Competition: Matthew Goldblaum Nikki van Noord Kyle Owen-Springer

CIM-Science North initiative receives a big donation Don MacLean, founder of MacLean Engineering, wrote a big cheque in support of the CIM-Science North mineral literacy program Our Earth’s Riches. MacLean’s $100,000 donation moves the project that much closer to CIM’s $1 million goal.

May/June 2020 • Mai/Juin 2020 | 47

lettre de l’éditeur

SECTION

francophone Se préparer à « l’après » MAI/JUIN 2020

Lettre de l’éditeur

Mot du président

La récupération de la chaleur, une alliée pour amortir les investissements Par Herb Mathisen

article de fond 52

Pleins feux sur la neutralité carbone Alors que les sociétés minières s’engagent à réduire leur empreinte carbone, la portée de cet engagement ne cesse de croître Par Cecilia Keating

Nous publions progressivement sur notre site Internet les articles du CIM Magazine en version française.

’autre jour, sur le chemin du retour à la maison après notre balade au parc, ma fille aînée a été la première à repérer ce couple qui marchait dans la direction opposée, des cornets de glace à la main. Mes trois enfants ont tout de suite su d’où venaient ces cornets, et nous avons viré à gauche toute. Notre glacier local a profité des températures agréables du premier samedi ensoleillé de l’année pour tester le marché. Les propriétaires avaient sorti leurs présentoirs réfrigérés devant le magasin. Gantés et masqués, les vendeurs distribuaient des boules de glace aux passants qui faisaient la queue à intervalles réguliers dans la rue. Normalement réservé au stationnement, le trottoir avait temporairement été élargi par la ville pour accueillir l’affluence de clients. Par rapport à d’habitude, le choix de parfums était limité ; mais quel intérêt de proposer tout l’éventail de saveurs exotiques quand la plupart des clients se laissent finalement tenter par la traditionnelle glace au chocolat ? Après plus d’un mois de confinement, personne ne semblait se demander si le glacier faisait partie des services essentiels. Nous avons dégusté nos crèmes glacées en guise de déjeuner et, à l’unisson avec le flot continu de passants, avons félicité cette institution locale pour son ingéniosité. Il y a un mois, lorsque la première vague de coronavirus touchait l’Amérique du Nord, l’un des bailleurs de fonds dans la prise ferme de SilverCrest Metals s’est finalement opposé au financement des travaux de développement de la société ; une semaine auparavant, les investisseurs s’étaient mis d’accord pour acheter 75 millions de dollars d’actions dans la société. Carolyn Gruske, chef de rubrique du CIM Magazine, a contacté le chef de la direction de SilverCrest Eric Fier pour obtenir son point de vue sur la situation (voir notre article COVID19 scuttles SilverCrest mining deal, p. 18, uniquement en anglais). Il lui expliquait que la résolution des problèmes est ancrée « au plus profond de notre ADN ». Ayant indéniablement à cœur de motiver son équipe, il soutenait qu’elle saurait se montrer à la hauteur de l’enjeu. Sa réponse m’a paru très audacieuse dans un contexte où les négociateurs d’actions et beaucoup d’autres perdaient leur sang-froid. Mais avec une telle expérience, son message à ce moment précis était rassurant ; il anticipait même la situation actuelle. Si nous n’avons pas encore déterminé les méthodes définitives à adopter, nous sommes d’accord sur une chose. Rien ne sera sans doute jamais plus vraiment comme avant, mais nous allons devoir trouver de nouvelles façons de vivre et de travailler. Cela passera par une résolution collective des problèmes, qui réinvente (du moins pour le futur proche) pratiquement tous les aspects de notre quotidien, depuis la futile visite chez le glacier jusqu’à la myriade de procédés permettant de trouver, d’extraire et de transporter les ressources minérales dans le monde, ou encore l’élaboration de notre magazine qui relate ces accomplissements. Je suis impatient de découvrir notre degré d’ingéniosité.

Ryan Bergen, Rédacteur en chef editor@cim.org @Ryan_CIM_Mag

Jon Benjamin Photography

mot du président

Être présent J’avais rédigé ce billet avant l’apparition de la pandémie liée au COVID-19 et j’envisageais de le réexaminer, éventuellement de le remanier à la lumière des événements actuels. Après réflexion, j’ai décidé de ne rien changer, mes connaissances médicales étant trop limitées pour prodiguer des conseils plus utiles que ceux que vous avez sans doute déjà glanés auprès des innombrables sources d’information qui relatent la situation actuelle. J’ai donc laissé inchangée ce qui sera ma dernière communication en tant que président de l’ICM pour vous rappeler à toutes et à tous que nous travaillons dans une industrie exceptionnelle, et que nous surmonterons cette passe difficile tout en continuant d’être un acteur clé dans l’amélioration des conditions de vie des habitants de notre planète. En ces périodes difficiles, prenez soin de votre santé.

eing There (La présence), un ouvrage fascinant de Jerzy Kosinski, a été adapté à l’écran dans un film primé aux Oscars (sous le titre français « Bienvenue, Mister Chance »), dans lequel Peter Sellers, l’acteur principal, joue le rôle de Chauncey Gardiner. Spécialiste d’un domaine particulier (le jardinage), M. Gardiner se retrouve un jour, par inadvertance, catapulté dans un monde complexe qu’il doit affronter. Je me retrouve dans Chauncey Gardiner. Toute ma vie, j’ai travaillé dans l’entrepreneuriat minier et la mise en valeur des mines, un domaine indéniablement très spécialisé de l’exploitation minière. Lorsque j’ai été nommé président de l’ICM (un mandat d’une année qui, en réalité, dure plus de trois ans), j’ai découvert une toute nouvelle facette de l’industrie des minéraux et des mines. Cette expérience a marqué une toute nouvelle phase d’apprentissage dans ma vie, qui m’a permis d’approfondir mon éventail de connaissances et également d’exercer un peu mon français.

C’est toutefois pour une autre raison que j’ai choisi ce titre, Being There. Mes propres expériences et ma petite contribution cette année sont le fruit de ma présence sur le terrain, qu’il s’agisse de rendre visite aux sections ou de participer à des conférences et des événements, d’interagir avec des sociétés, d’écouter attentivement et de m’efforcer de comprendre les difficultés et les accomplissements de chacune des parties constituantes de l’ICM. Le fait d’être présent a été une véritable source d’inspiration, tout comme mes rencontres avec des personnes exceptionnelles qui ont un penchant marqué pour l’action et le savoir-faire nécessaire pour mener à bien leurs actions. J’ai beaucoup appris cette année, et voici ce que je sais. L’ICM est une communauté composée de personnes extrêmement intelligentes, passionnées et innovantes qui aspirent à ce qu’il y a de mieux pour le Canada et le reste du monde, et qui sont conscientes du rôle de notre industrie des mines et des minéraux pour y parvenir. Elles travaillent sans relâche, défendent leurs idéaux et font changer les choses dans notre industrie et notre société. Le Canada est un pays magnifique. Je le savais déjà, mais j’ai eu l’occasion de me rendre dans de nombreuses communautés et de rencontrer des personnes exceptionnelles sur tout le territoire, des découvertes et des rencontres qui ont rendu mon mandat d’autant plus passionnant. Car si le Canada est un territoire particulièrement diversifié sur le plan géographique, ce ne sont pas tant ses points de vue spectaculaires qui le rendent si spécial, mais ses habitants exceptionnels. Je suis conscient et comprends bien le rôle important de l’industrie minière, aujourd’hui et demain, dans l’avenir de notre planète. Cela peut paraître impertinent, mais les métaux et les minéraux que nous produisons feront partie intégrante de la solution face au changement climatique, à la faim dans le monde et à bien d’autres enjeux auxquels nous sommes confrontés à l’échelle planétaire. N’est-ce pas réconfortant de savoir que l’on fait partie de cette solution ? Dans notre secteur, le Canada est un chef de file. Contrairement à une idée préconçue, être un bon chef de file n’a rien à voir avec le fait d’être le plus gros producteur, d’afficher le PIB le plus élevé ou d’être la plus grande société. Être un bon chef de file consiste à montrer l’exemple et à joindre l’action à la parole pour ce qui importe le plus, notamment la protection de nos populations et de notre environnement, le respect de la diversité et l’inclusion. Dans ces domaines et bien d’autres, le Canada mènera notre industrie mondiale vers l’idéal qu’elle doit atteindre, à savoir devenir un lieu d’acceptation sociale et un moteur de l’amélioration de la qualité de vie pour tous. Et nous savons tous qu’à bien des égards, le Canada est un exemple pour le reste du monde. L’ICM joue un rôle important dans tout cela. C’est en organisant les connaissances de pointe, en créant un réseau solide et en sensibilisant davantage le public à notre industrie que nous aidons l’industrie minière canadienne à devenir ce qu’elle doit être, un chef de file mondial dans les domaines qui importent le plus. Et dans la foulée, nos enfants et petits-enfants seront fiers de nous. N’est-ce pas réconfortant d’être là pour eux ?

Roy Slack Président de l’ICM May/June 2020 • Mai/Juin 2020 | 49

Avec l’aimable autorisation de Nicholas Allen

Récupérer la chaleur… et les investissements Groupes électrogènes à haut rendement, flexibilité dans les types de combustibles utilisés et délestage intelligent sont des éléments qui aident à réduire les besoins en diesel de la centrale de cogénération de la mine de Meliadine d’Agnico Eagle Par Herb Mathisen

a construction et la mise en service de la mine de Meadowbank d’Agnico Eagle (la première incursion de la société d’exploitation aurifère dans le Grand Nord) ont été une expérience enrichissante, assortie d’une courbe d’apprentissage abrupte. Les difficultés rencontrées sur les plans logistique, opérationnel et des ressources humaines ont mis à l’épreuve l’ingéniosité de la société. Elles lui ont aussi appris à mener une mine jusqu’à la phase de production et à continuer à l’exploiter, des enseignements qu’Agnico Eagle a mis en pratique à Meliadine, sa deuxième mine située dans la région du Bas-Arctique au Canada. Ces enseignements concernaient également la centrale électrique du site. Le système de récupération de la chaleur de Meadowbank, qui utilise la chaleur résiduelle des génératrices produisant de l’électricité pour chauffer l’exploitation, fonctionnait bien en théorie, mais moins bien en pratique. « La plupart du temps, la conception prévoit le fonctionnement des groupes électrogènes à plein régime et à température élevée, alors qu’on sait bien qu’en général, ces derniers fonctionnent toujours à un régime légèrement plus bas de manière à garder des réserves et à éviter des pannes », déclarait Nicholas Allen, ingénieur mécanique à BBA. Agnico Eagle a fait appel à cette firme de génieconseil pour optimiser la centrale entre 2012 et 2014. « Dès lors que l’on s’éloigne des conditions optimales de fonctionnement, le processus n’est en réalité pas du tout efficace. » Il est pourtant primordial d’exploiter de manière optimale les systèmes de récupération de la chaleur dans le Nunavut, une région où Agnico Eagle dépend du diesel pour toutes les sources d’énergie utilisées sur le site. « Nous avons des mines dans le sud du Québec, et plus au sud dans d’autres pays. Si l’optimisation énergétique reste au cœur de nos préoccupations dans ces mines, nous franchissons une tout autre étape au Nunavut », indiquait Éric Lavoie, ingénieur électricien à Agnico Eagle, qui a travaillé étroitement avec M. Allen sur la conception de la centrale de Meliadine (sa mise en service remonte à novembre 2018, et la production commerciale a débuté en mai 2019). « Au NunaCinq génératrices Wärtsilä à haut rendement de 5,6 mégawatts alimentent en électricité la mine de Meliadine d’Agnico Eagle dans le Nunavut. La chaleur récupérée dans les gaz d’échappement des moteurs des génératrices circule dans tout le site minier ; elle réchauffe les bâtiments de l’exploitation en surface et la mine souterraine reliés au circuit d’eau chaude.

50 | CIM Magazine | Vol. 15, No. 3

vut, nous comptons chaque kilowatt disponible, et nous nous efforçons de trouver une utilité à cette énergie. »

Étapes vers la récupération Afin d’optimiser la récupération de la chaleur à Meadowbank, BBA a orienté ses efforts sur des mesures spécifiques à petite échelle, par exemple en mettant en place des procédures de nettoyage visant à améliorer les taux de récupération de la chaleur des gaz d’échappement des moteurs des génératrices, tout en tenant compte du contexte global. « La société n’a jamais clairement officialisé sa stratégie de tolérance au risque en cas de pannes », déclarait M. Allen. C’est un point important, car si les opérateurs de centrales électriques ne paient pas pour le carburant, ils se sentent responsables des pannes. Ainsi, il est courant qu’ils fassent tourner tous les moteurs à une charge inférieure. Si cette pratique consomme davantage de carburant, elle a le mérite de donner aux opérateurs une réserve immédiate dans laquelle puiser si la charge atteint un pic ou si une génératrice tombe subitement en panne. M. Allen et son équipe ont demandé aux dirigeants d’Agnico Eagle « quel nombre de pannes ils acceptaient par an et combien d’argent la société perdait, et s’il était préférable de faire tourner tous les moteurs à plus bas régime ». Par conséquent, les génératrices fonctionnaient à plus haute température, à un facteur de charge supérieur, ce qui a amélioré les taux de récupération de la chaleur. Ces changements et d’autres ont permis de réduire la consommation annuelle de diesel d’environ deux millions de litres au site de Meadowbank, sans aucune amélioration ni modernisation majeures de l’équipement. Quand vint le moment de procéder à une conception détaillée de la centrale de cogénération à Meliadine, le second projet d’Agnico Eagle dans le Nunavut, la société a de nouveau pris contact avec BBA pour lui demander d’intégrer à sa nouvelle mine les enseignements que son équipe avait tirés à Meadowbank. Immédiatement, Agnico Eagle a souhaité faire participer l’équipe des opérations au processus de construction et à la mise en service de la centrale, de manière à ce que le personnel de Meliadine maîtrise mieux les systèmes afin de parvenir aux taux souhaités de récupération de la chaleur. « C’est un projet difficile, car la complexité des systèmes est proportionnelle à la

efficacité énergétique

quantité de chaleur que l’on veut récupérer », indiquait M. Allen. « Si les utilisateurs ne gèrent pas le système correctement, nous aurons beau concevoir la centrale électrique la plus performante, elle n’atteindra jamais son rendement optimal. » Le système conçu par BBA injecte de l’énergie thermique récupérée dans les groupes électrogènes dans un circuit d’eau chaude qui réchauffe l’usine de traitement et tous les autres bâtiments de l’exploitation en surface reliés au réseau. Un deuxième circuit chauffe ensuite l’air dans la mine souterraine à environ deux ou trois degrés Celsius (°C) avant de revenir dans l’usine où l’eau refroidie est de nouveau chauffée. Ce système de distribution de la chaleur s’étend au total sur plus de cinq kilomètres. D’après M. Allen, il chauffe en toute fiabilité les bâtiments en surface, mais a besoin d’aide pour chauffer la mine souterraine lorsque la température descend en dessous de -25 °C. L’efficacité énergétique totale de la centrale de cogénération est estimée à 80 %, indiquait M. Allen. « En d’autres termes, chaque kilogramme de diesel contient approximativement 43 mégajoules, dont environ 19 mégajoules sont converties en électricité et 16 mégajoules en chaleur en hiver », précisait-il.

La fiabilité, un facteur crucial La fiabilité est un facteur capital à prendre en compte dans les centrales électriques hors réseau. Une panne de génératrice entraînerait l’immobilisation de la production dans toute l’exploitation, ce qui pourrait s’avérer coûteux. Afin de minimiser ce genre de désagréments, Agnico Eagle a mis en œuvre un plan de délestage des charges, qui permet à l’opérateur de faire fonctionner les moteurs à des charges optimales afin d’obtenir le meilleur rendement des génératrices. « Si l’un des moteurs s’arrête instantanément pour un problème quelconque, il suffit de délester les charges, par exemple en coupant l’électricité à la cafétéria ou dans les logements, ou en arrêtant une partie du processus qui n’affectera pas la productivité », indiquait M. Allen. « Aucun investissement supplémentaire n’a été nécessaire. Il fallait simplement envisager le réseau de manière intelligente. En cas de problème, il suffit de délester les charges d’un secteur que l’on a choisi au préalable. » L’opérateur dispose ainsi du temps suffisant pour activer la génératrice de secours, et l’électricité est rétablie dans les zones affectées quelques minutes plus tard. Agnico Eagle a aussi renforcé la fiabilité de la centrale de Meliadine en achetant des génératrices Wärtsilä à haut rendement de 5,6 mégawatts. Ces groupes électrogènes de 720 tours/minute fonctionnent à faible vitesse, ce qui signifie que le moteur s’use moins vite et est plus fiable. Leur rendement est également supérieur de 5 % à celui des génératrices de 900 tours/minute utilisées à Meadowbank. Ce gain d’efficacité se traduit par une économie d’environ 2,5 millions de litres de diesel par an. Mais les gains ne s’arrêtent pas là, expliquait M. Allen. Agnico Eagle ne peut s’approvisionner en carburant que pendant quatre mois de l’année, lorsque la glace fond dans la baie d’Hudson. De fait, cette économie engendre une réduction du nombre de cuves de stockage nécessaires et du carburant à transporter sur le site, ainsi que du nombre de camions sur les routes. Elle se traduit également par une réduction du risque de marées noires et des émissions de gaz à effet de serre (GES). « Quand on vit dans le Nord, les avantages d’une baisse de la consommation de diesel sont innombrables. »

BBA a fait valoir les facteurs de rentabilité des groupes électrogènes plus coûteux. Les économies de diesel n’étaient pas le seul élément à prendre en compte avec chacune des gigantesques génératrices de 100 tonnes. « Pour réduire la vitesse et obtenir la même quantité d’électricité, il faut un plus gros moteur, d’où le coût supérieur », indiquait M. Allen. « Il faut aussi plus d’espace dans votre bâtiment, et une plus grande capacité portante. » Agnico Eagle a pris la décision d’investir car le délai de récupération de l’investissement dans ces génératrices, par rapport à celles utilisées à Meadowbank, était de deux années seulement (la durée de vie prévue de la mine de Meliadine est de 12 ans). Le transport des génératrices jusqu’au site a posé quelques difficultés logistiques, notamment en raison de l’absence d’un port en eaux profondes dans le Nunavut. Chaque génératrice a été transférée d’un bateau ancré en eaux profondes vers un semi-remorque à plusieurs essieux placé sur une barge. Lorsque la barge est arrivée à terre, les semi-remorques ont été tractés sur le rivage puis sont partis en direction de Meliadine, à 35 kilomètres de là. Cinq génératrices et les éléments de huit bâtiments préfabriqués de 50 tonnes pour la centrale de cogénération ont été envoyés à la mine de cette manière. Avec l’arrivée tardive de l’été en 2018, le calendrier a été décalé.

Des carburants pour l’avenir Dès le début, Agnico Eagle s’est fait une priorité de limiter les risques à Meliadine en s’assurant que sa centrale serait compatible avec le gaz naturel liquéfié (GNL) et les énergies renouvelables. Les raisons de cette décision coulaient de source. De fait, si la mine utilise des dizaines de millions de litres de diesel par an et que le prix de ce carburant augmente ne serait-ce que de 0,50 dollar, la société se retrouve coincée et les coûts d’exploitation augmentent de dizaines de millions de dollars. On trouvait déjà sur le marché des génératrices bicombustibles fonctionnant au diesel et au GNL, expliquait M. Allen. « Le problème est que si l’on utilise la technologie bicombustible mais que la machine tourne au diesel, on se retrouve avec un rendement inférieur de 3 % en attendant [l’intégration possible] de l’option gaz naturel [ultérieurement]. » Après s’être entretenue avec de nombreux fabricants, Agnico Eagle s’est tournée vers la société finlandaise Wärtsilä qui lui a proposé une solution lui permettant, plus tard, de facilement convertir ses génératrices au GNL. « Ces moteurs sont tout aussi performants que ceux fonctionnant au diesel, mais si l’on décide de les convertir en moteurs bicombustibles, cela ne prend que deux semaines ; l’investissement dans la conversion a lieu à ce moment-là, et on peut rapidement commencer à les utiliser », précisait M. Allen. La société pourrait échelonner l’adoption des groupes électrogènes de manière à ne pas perturber les activités. La centrale permet également l’intégration des énergies renouvelables. « Nous avons mené des études en interne sur un parc éolien et nous y travaillons depuis maintenant environ deux ans », indiquait M. Lavoie. « Il nous faut de nouveau garder l’esprit ouvert et chercher les occasions qui s’offrent à nous. » Cette flexibilité à modifier le cours des choses dans un contexte où les vents changent signifie que tant que Meliadine produira de l’or, Agnico Eagle tirera profit de son investissement initial et sera récompensée pour la planification préalable de sa centrale de cogénération. ICM May/June 2020 • Mai/Juin 2020 | 51

Pleins feux sur la neutralité

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es sociétés BHP, Rio Tinto, Vale et Teck se sont engagées, depuis une année, à atteindre la « neutralité carbone » (zéro émission nette de dioxyde de carbone) à l’horizon 2050. La course est lancée. Au Canada et dans des pays plus lointains, les sociétés minières tentent de « décarboniser » leurs activités, à savoir réduire, voire supprimer leurs émissions de dioxyde de carbone (CO2), en utilisant des parcs de véhicules électriques, en puisant leur énergie dans des sources plus écologiques et en mettant au point des stratégies plus propres pour les méthodes de fusion et le transport des marchandises. « Jusqu’ici, il était bienvenu d’adopter des mesures écologiques. Aujourd’hui, c’est une tendance généralisée. Des sociétés [de fonds mutuels] telles que BlackRock proclament que la [responsabilité] environnementale, sociale et de gouvernance (ESG) constitue un facteur de décision important pour ses investissements dans des actions minières », déclarait Julian Kettle, vice-président de la section Métaux et mines de la société de conseil spécialisée dans l’énergie Wood Mackenzie. Les efforts de « décarbonisation » (à savoir l’ensemble des mesures et techniques visant à réduire la teneur en carbone, plus spécifiquement en CO2, des énergies, voire d’une économie entière) déployés par les sociétés minières ont jusqu’à présent été « décevants », déplorait-il. Des promesses telles que celles, récentes, de Rio Tinto, d’investir un milliard de dollars américains (soit l’équivalent de 1,4 milliard de dollars canadiens) dans des initiatives vertes sont, certes, « un bon départ, mais devront faire leurs preuves rapidement ». Une course contre la montre que la pandémie liée au COVID-19 rend désormais encore plus complexe. Certaines démarches en faveur de la décarbonisation des sites sont éprouvées, testées et constituent une option compétitive. Dans les nouvelles mines, il est logique sur le plan économique de puiser l’électricité dans des sources d’énergie renouvelables. L’énergie propre est, par définition, plus écologique et peut parfois être moins onéreuse que l’électricité produite à l’aide de combustibles fossiles. Les autres stratégies de décarbonisation requièrent une innovation et un investissement supplémentaires. 52 | CIM Magazine | Vol. 15, No. 3

Alors que les sociétés minières s’engagent à réduire leur empreinte carbone, la portée de cet engagement ne cesse de croître Par Cecilia Keating

Par rapport à l’exploitation minière souterraine, la disponibilité et la maturité de l’équipement électrique utilisé pour l’exploitation minière à ciel ouvert accusent un certain retard, et les efforts visant à décarboniser les procédés à forte intensité de carbone tels que la production d’acier et la fusion de l’aluminium (que l’on considère toujours plus comme étant en partie de la responsabilité du secteur minier) se trouvent dans un état encore plus embryonnaire. L’examen minutieux des émissions de CO2 engendre inévitablement une surveillance encore plus rigoureuse et constitue un enjeu supplémentaire pour les producteurs de produits de base. Les émissions de champ d’application 3, à savoir des émissions résultant d’activités extérieures et en aval de la chaîne de valeur telles que le transport, la fusion et l’utilisation finale des matériaux, peuvent être jusqu’à 30 ou 40 fois supérieures aux émissions résultant des activités opérationnelles ou de l’utilisation d’électricité sur place dans une mine. En 2019 par exemple, Teck a généré 290 kilotonnes d’émissions de CO2 provenant d’électricité produite à l’extérieur de ses sites, 2 936 kilotonnes dans ses exploitations et 73 000 kilotonnes en aval de la chaîne d’approvisionnement. En d’autres termes, 96 % de ses émissions de CO2 étaient générées après que les matériaux ont quitté l’exploitation. De même, les émissions de champ d’application 3 de Vale en 2018 représentaient 96 % des émissions totales de la société. Elles étaient initialement réparties entre les navires (2 %) et les clients (93,9 %). Ceci explique qu’un nombre croissant d’investisseurs et de consommateurs appelle l’industrie à inclure les

article de fond

émissions de champ d’application 3 dans ses promesses de « neutralité carbone ». Jusqu’ici, les sociétés minières n’incluaient pas les émissions de leurs chaînes d’approvisionnement dans leurs engagements à l’horizon 2050, alléguant qu’elles sont difficiles à évaluer et qu’elles sont réparties entre une myriade de sociétés. On observe toutefois un changement d’attitude ; les grandes associations industrielles reconnaissent l’importance de communiquer leurs émissions de champ d’application 3, et on assiste à l’avènement d’un nombre croissant de collaborations entre les sociétés minières et les clients en aval qui s’efforcent de mieux comptabiliser les émissions de la chaîne d’approvisionnement et de s’y attaquer. Par ailleurs, une coalition dirigée par le Rocky Mountain Institute (RMI), un centre de recherche et d’études américain sur l’énergie, a élaboré une norme de comptabilisation des émissions de CO2 qui prévoit un régime plus simple et holistique de comptabilité pour le secteur minier.

Rêves électriques Le Canada abrite de nombreuses mines souterraines utilisant un équipement électrique à batterie, par exemple la mine Borden de Newmont Goldcorp, la mine Macassa de Kirkland Gold et le projet Onaping Depth de Glencore, en cours de construction. En revanche, l’exploitation minière à ciel ouvert entièrement électrique n’en est qu’à ses débuts en termes de développement,

au Canada comme à l’étranger. Nouveau Monde Graphite a publié en 2018 une étude de faisabilité pour sa mine de Matawinie, un projet d’exploitation du graphite à ciel ouvert, qui prévoit une mine 100 % électrique. D’après Verónica Martinez, dirigeante principale du programme pour l’innovation et le changement climatique à l’International Council of Mining and Metals (ICMM, le conseil international des mines et métaux), les progrès sont restreints par les limites de l’équipement générant peu d’émissions de CO2 utilisé pour l’exploitation à ciel ouvert. « Ces dernières années, nous avons assisté à de grands progrès en termes d’électrification des véhicules et des camions, mais l’envergure des équipements nécessaires dans le secteur minier, par exemple un tombereau de 400 tonnes, est bien différente », déclarait-elle, expliquant que 80 % des émissions associées à l’exploitation des sites miniers émanent de l’équipement mobile. « Même si les sociétés souhaitent, aujourd’hui, adopter une technologie ou en acquérir une déjà commercialisée pour réduire [les émissions liées à leurs activités], cette technologie n’existe pas », ajoutait-elle. Le programme de l’ICMM baptisé Innovation for Cleaner, Safer Vehicles (ICSV, l’innovation au service de véhicules plus propres et sûrs) met en relation ses 27 membres et des fabricants d’équipement d’origine (FEO) afin d’encourager l’adaptation de technologies existantes et la création de projets pilotes aux technologies les plus récentes. L’initiative vise à promouvoir la commercialisation d’engins miniers sans émissions de CO2 pour les exploitations à ciel ouvert à l’horizon 2040. « Pour la commercialiser d’ici 2040, nous devrons développer et tester cette technologie d’ici 2030 avant de pouvoir l’intégrer et l’adapter à la production. On peut penser que 2040 est [encore loin], mais finalement, nous y arriverons vite », indiquait Mme Martinez. Devant les délégués du congrès et du salon commercial annuel MineXchange de la Society for Mining, Metallurgy and Exploration (SME, la société des mines, de la métallurgie et de l’exploration), qui a eu lieu en février dernier, Peter Wan, directeur de la technologie et de l’innovation à Teck et collaborateur dans l’initiative ICSV, insistait sur l’urgence de tester et d’utiliser l’équipement mobile électrique. Au même moment, Teck révélait son nouvel objectif : être un exploitant sans émissions de CO2 d’ici 2050. « Si nous achetons aujourd’hui un parc de camions, un seul cycle de vie du parc nous sépare de 2050 », expliquait M. Wan. Teck adopte une approche progressive envers l’utilisation d’équipement sans émissions de CO2, ajoutait-il. Les précurseurs paient généralement « le prix fort », aussi il faut « identifier les secteurs qui utilisent déjà ces technologies et où les prix ont baissé, puis les adopter aux tarifs appliqués à la “majorité précoce”, indiquait-il (par majorité précoce, on entend la première part de marché relativement importante à investir dans une solution innovante, suivant de près les courageux premiers adeptes. La tarification de la majorité précoce est généralement inférieure aux prix de lancement, mais supérieure lorsque l’article en question est davantage un produit de base). Teck adoptera alors la technologie qu’utilisent ces secteurs et « contribuera à son adoption au sein du marché minier ». Son projet pilote mené à l’exploitation Elk Valley en est un exemple ; deux cars de la Compagnie Électrique Lion y sont utilisés pour le transport des équipes. Les clients de la Compagnie Électrique Lion, basée à Saint-Jérôme, au Québec, lui achètent ses cars scolaires dans toute l’Amérique du Nord. La société propose également des camions urbains et des camions poubelle de catégorie Lion8, May/June 2020 • Mai/Juin 2020 | 53

ce qui permet à Teck de bénéficier des offres même si les applications minières constituent un nouvel usage pour ces véhicules. L’introduction de véhicules électriques sur le site exige de réviser les philosophies d’exploitation, ajoutait M. Wan. Par exemple, le récent essai d’un camion électrique autonome de 15 tonnes fabriqué par Volvo a montré que la société minière pouvait réduire la taille de ses camions tout en préservant la productivité. Une mentalité axée sur « l’électrique avant tout » ouvre la voie à d’autres approches, telles que le concassage et le transport dans la fosse minière, et permet de repenser la manipulation des matériaux.

« Lorsqu’il est question d’émissions, le problème se situe réellement à l’étape de la fusion » Julian Kettle, vice-président de la section Métaux et mines de la société de conseil spécialisée dans l’énergie Wood Mackenzie. Comme le faisait remarquer M. Wan, une grande partie de l’équipement utilisé par Teck dans l’exploitation à ciel ouvert aujourd’hui, y compris des camions de transport de 300 tonnes, des bulldozers Caterpillar D11 et des niveleuses automotrices Caterpillar 24, « n’existe tout simplement pas » en version électrique.

Transition énergétique à l’horizon Les énergies renouvelables constituent déjà la source d’électricité la plus abordable dans de nombreuses régions du monde, et elles sont vouées à devenir encore moins coûteuses. Selon l’International Renewable Energy Agency (IRENA, l’agence internationale pour les énergies renouvelables), l’électricité générée par les technologies photovoltaïques (PV) éoliennes et solaires à terre sera « invariablement » moins chère que l’électricité produite à partir de combustibles fossiles à l’échelle mondiale en 2020. Les économies réalisées sont l’une des raisons pour lesquelles le secteur minier devient rapidement l’un des plus grands acquéreurs des sources d’énergie renouvelables. Le 15 mars dernier, Anglo American a signé une transaction de 190 millions de dollars américains (l’équivalent de 273 millions de dollars canadiens) avec Atlas Renewable Energy pour 15 années d’alimentation en énergie solaire provenant d’une centrale solaire de 330 mégawatts dont la construction est prévue. À la fin de l’année 2019, BHP a signé quatre ententes pour une alimentation en énergies renouvelables qui lui permettrait de réduire de 20 % les coûts de ses mines de cuivre chiliennes, tout en éliminant totalement le recours aux combustibles fossiles pour ses besoins en électricité. Les données économiques liées à cette transition étaient si optimistes que BHP a mis de côté à titre provisoire 780 millions de dollars américains (soit un milliard de dollars canadiens) dans ses états financiers pour mettre un veto à ses transactions préexistantes reposant sur le charbon. D’après Mme Martinez de l’ICMM, les enjeux du marché constituent les principaux obstacles à la décarbonisation totale dans les sites miniers ; de fait, de nombreuses sociétés minières sont tenues par des accords à long terme sur l’utilisation des combustibles fossiles pour leurs besoins en électricité, signées bien avant que les énergies renouvelables ne deviennent des options compétitives. 54 | CIM Magazine | Vol. 15, No. 3

Dans les mines isolées, la construction d’une centrale électrique fonctionnant aux énergies propres sur le site, sécurisée par un système de stockage d’énergie, est une option plus envisageable que de signer une entente sur l’utilisation d’énergies propres avec un service public ou un développeur d’énergies renouvelables. À la mine de nickel Raglan de Glencore dans le nord du Québec, six mégawatts d’énergie éolienne et un système de stockage d’énergie de trois mégawatts se substituent à quelque quatre millions de litres de diesel chaque année. Le parc éolien à quatre turbines de 9,2 mégawatts de la mine Diavik de Rio Tinto est en service depuis 2012. L’un des plus ambitieux projets d’utilisation des énergies renouvelables sur le site se trouve cependant loin de notre territoire canadien riche en hydroélectricité, dans des régions isolées où le diesel est onéreux, les chaînes d’approvisionnement instables et les réseaux électriques mis à rude épreuve. Rio Tinto investit 98 millions de dollars américains (140 millions de dollars canadiens) dans une centrale solaire photovoltaïque équipée d’un système de stockage à batterie de 34 mégawatts pour alimenter son exploitation de minerai de fer de Koodaideri, en AustralieOccidentale, qui couvrira 65 % des besoins énergétiques de la mine. La société minière canadienne B2Gold construit une centrale solaire de 30 mégawatts sur le site de son exploitation aurifère de Fekola au Mali (voir pp. 36), qui lui permettra de réduire de 13,1 millions de litres par an sa consommation de mazout lourd. À mesure que le secteur des énergies propres gagne en maturité, de nouveaux modèles financiers rendent moins onéreuse l’utilisation sur le site des énergies renouvelables. Au Mali, Resolute Mining s’est assuré le soutien d’Aggreko, un développeur britannique de microréseaux et d’énergies renouvelables, pour construire une centrale solaire hybride dans son exploitation aurifère de Syama qui inclut 20 mégawatts d’énergie solaire et un système de stockage de 10 mégawatts. Aggreko vend son énergie à Resolute au titre d’un accord d’approvisionnement en énergie de 15 ans « prolongeable », que John Welborn, chef de la direction de Resolute, décrit comme une offre « intéressante » pour une exploitation ayant une durée de vie potentielle de plusieurs décennies au-delà de ses 15 années officielles. Aggreko reste le dirigeant propriétaire et le gestionnaire des finances de ce projet sur l’énergie ; quant aux dépenses d’immobilisation, elles demeurent hors bilan pour Resolute. « C’est un accord d’écoulement à long terme, avec une demande en capital importante gérée par Aggreko. Pour une société minière, il s’agit indéniablement d’une nouveauté », déclarait M. Welborn. « C’est la meilleure option pour la solution que nous recherchons. » Cette centrale permettra d’abaisser les coûts actuels se situant entre 0,23 et 0,28 dollar américain par kilowattheure (kWh) à 0,15 dollar américain par kWh, et de réduire les émissions de CO2 de 20 %. Cette transition énergétique permet à Resolute de préserver ses relations avec les communautés voisines. La société minière a signé une entente distincte avec Aggreko pour explorer les manières d’approvisionner les habitants de la région en électricité. « Au lieu d’essayer d’accéder à une infrastructure électrique qui n’existe pas ou qui sera difficile à financer, nous inversons la situation en amenant au sein et autour du site minier le financement, l’exploitation et le développement d’une infrastructure électrique pouvant créer des microréseaux », indiquait M. Welborn. « Les répercussions en aval sur la santé, l’éducation et la qualité de vie proviendront, de fait, de l’électrification des économies émergentes. C’est un avantage qui peut

article de fond s’avérer plus immédiat que l’impact positif réel sur l’environnement. »

Les enjeux liés aux émissions de champ d’application 3 Si le consensus est quasiment total quant à la responsabilité qui incombe aux sociétés minières de réduire les émissions liées à leurs activités ou leur consommation d’électricité, les émissions en aval, ou « émissions de champ d’application 3 », sont plus controversées. En mars, le président de Rio Tinto Simon Thompson a rejeté les propositions d’établir des objectifs quant aux émissions de champ d’application 3, proclamant que « ces émissions provenaient essentiellement de nos clients, principalement des aciéristes en Chine, sur lesquels nous avons un contrôle très limité ». D’autres prétendent que l’inclusion des émissions de champ d’application 3 est impérative, et que les objectifs de neutralité carbone des sociétés minières d’ici 2050 n’ont plus aucun sens si on ne les prend pas en compte. « Les sociétés minières sont maîtresses de la décarbonisation d’un site, et elles se sont engagées à le faire ; cependant, tout bien considéré, cela ne changera pas le monde. Lorsqu’il est question d’émissions, le problème se situe réellement à l’étape de la fusion », expliquait M. Kettle de Wood Mackenzie. D’après Andrew Grant, responsable de la section Pétrole et gaz du groupe de réflexion financier Carbon Tracker, l’omission des émissions de champ d’application 3 « a une incidence sur la pertinence des objectifs ». Un rapport (uniquement disponible en anglais) publié par McKinsey en janvier indiquait que 28 % des émissions mondiales de CO2 sont des émissions de champ d’application 3 provenant du secteur minier, la combustion de charbon et la production d’acier et d’aluminium étant les plus grands responsables. Ensemble, les émissions de champs d’application 1 (émissions directes liées à l’exploitation) et 2 (émissions indirectes associées à l’électricité) sont estimées à 1 %. L’industrie prend de plus en plus conscience de l’importance d’inclure les émissions de champ d’application 3 dans ses objectifs de neutralité carbone. Fin 2019, l’ICMM a revu sa position sur le changement climatique afin d’inclure un engagement envers l’obligation collective avec des tiers de déterminer la meilleure approche pour communiquer les émissions de champ d’application 3. Vale et BHP se sont engagées ces six derniers mois à fixer des objectifs publics de réduction des émissions de champ d’application 3. C’est un véritable exploit, sachant que ces dernières représentent 95 % de l’empreinte carbone de Vale, et 97 % de celle de BHP.

La collaboration dans l’intérêt mutuel « Le champ d’application 3 est au cœur de l’actualité en ce moment », indiquait Mme Martinez de

Analyse des champs d’application des émissions CHAMP D’APPLICATION 1 : ÉMISSIONS DIRECTES DE GES • Les émissions directes de GES proviennent de sources qui sont détenues ou contrôlées par la société (par exemple, les émissions qui résultent de la combustion dans les chaudières, les fours, les véhicules, etc. détenus ou contrôlés par la société ou celles qui résultent de la production chimique dans du matériel de traitement détenu ou contrôlé par la société) • Les émissions directes de CO2 qui résultent de la combustion de la biomasse ne font pas partie du champ d’application 1 ; elles doivent plutôt être déclarées séparément • Les émissions de GES qui ne sont pas répertoriés dans le protocole de Kyoto (par exemple, les chlorofluorocarbones ou CFC, les oxydes d’azote ou NOx, etc.) ne font pas partie du champ d’application 1 ; elles peuvent cependant être déclarées séparément

CHAMP D’APPLICATION 2 : ÉMISSIONS INDIRECTES DE GES ASSOCIÉES À L’ÉLECTRICITÉ • Le champ d’application 2 englobe les émissions de GES qui résultent de la production d’électricité achetée et consommée par la société. L’électricité achetée correspond à l’électricité acquise ou incluse dans les périmètres organisationnels de la société • Les émissions de champ d’application 2 sont produites par l’établissement qui produit l’électricité

CHAMP D’APPLICATION 3 : AUTRES ÉMISSIONS INDIRECTES DE GES • Le champ d’application 3 est une catégorie à déclaration facultative qui incorpore toutes les autres émissions indirectes • Les émissions de champ d’application 3 résultent des activités de la société, mais proviennent de sources qui sont détenues ou contrôlées par une autre société • L’extraction et la production de matériaux achetés, le transport de carburant acheté et l’utilisation de produits et services vendus sont des exemples d’activités du champ d’application 3 Source : World Resources Institute (WRI, l’institut des ressources mondiales) et World Business Council for Sustainable Development (WBCSD, le conseil mondial des entreprises pour le développement durable), Greenhouse Gas Protocol – A Corporate Accounting and Reporting Standard – Revised Edition (Le protocole des gaz à effet de serre : une norme de comptabilisation et de déclaration destinée à l’entreprise - Version révisée)

May/June 2020 • Mai/Juin 2020 | 55

l’ICMM. La surveillance accrue engendrera « davantage de collaborations entre les sociétés et les clients en vue de mettre au point des stratégies portant sur les investissements les plus judicieux dans les technologies [propres] et l’engagement envers la comptabilité carbone dans toute la chaîne d’approvisionnement ». Prenons comme exemple ELYSIS, une entreprise commune de Montréal entre Rio Tinto et Alcoa, qui est parvenue à décarboniser une méthode de fusion de l’aluminium, restée inchangée depuis son invention en 1886. ELYSIS travaille main dans la main avec ces partenaires, responsables de 10 % de la production mondiale d’aluminium, et Apple. « Il s’agit là de la plus grande révolution de l’histoire de [l’industrie de l’aluminium] », expliquait Vincent Christ, chef de la direction d’ELYSIS. « C’est incroyable ; on surnomme parfois cette collaboration le Saint Graal, car elle est unique. » Les méthodes traditionnelles de production de l’aluminium qui, d’après des recherches du Columbia University Climate Centre (le centre d’études sur le climat de l’université Columbia), sont responsables de 1 % des émissions annuelles de gaz à effet de serre (GES), impliquent de faire passer un courant électrique à travers une grande anode en carbone, qui brûle et émet du CO2 dans l’atmosphère lors de sa combustion. La nouvelle technologie se sert d’une anode permanente (ou anode inerte) qui libère de l’oxygène. ELYSIS prévoit de commercialiser cette technologie d’ici 2024 et a vendu en décembre son premier lot d’aluminium produit sans émissions de CO2 à Apple. Un centre de recherche à Saguenay, au Québec, est en cours de construction ; il devrait ouvrir ses portes au deuxième trimestre 2020. « Il s’agit de l’un des rares cas où une technologie révolutionnaire s’accompagne d’une hausse de la productivité, d’une baisse des coûts de production et d’un vaccin contre les tarifs liés à tout mécanisme de tarification du carbone », expliquait M. Christ. « Compter Apple parmi nos investisseurs vient ajouter un point de vue consommateur très utile à nos activités », ajoutait-il. Cette initiative, qui a bénéficié d’investissements de 13 millions de dollars de la société Apple, de 55 millions de dollars de Rio Tinto, de 55 millions de dollars d’Alcoa et de 120 millions de dollars au total des gouvernements fédéral et du Québec, est l’un des nombreux partenariats intersectoriels nés du besoin collectif de limiter l’intensité carbone des chaînes d’approvisionnement. La société d’exploitation cuprifère chilienne Codelco travaille de concert avec BMW pour développer et introduire de nouvelles normes de durabilité dans la chaîne d’approvisionnement du cuivre ; la plus grosse société européenne d’exploitation de minerai de fer LKAB a uni ses forces avec l’aciériste SSAB et l’entreprise publique Vattenfall pour développer un « acier produit sans combustibles fossiles ». Alors que Rio Tinto maintient que la société a « peu de contrôle » sur les émissions de champ d’application 3, elle a signé une entente à l’automne avec le plus grand producteur d’acier chinois Baowu Steel Group et l’université Tsinghua pour explorer les manières de limiter les émissions de CO2 dans l’élaboration de l’acier.

Mais au final, qui est responsable ? Les questions liées à la responsabilité des émissions de champ d’application 3 ne se limitent pas au secteur minier, expliquait Susan Greene, directrice du programme dédié aux chaînes d’approvisionnement durable du Massachusetts Institute of Technology (MIT, l’institut de technologie du Massachusetts). 56 | CIM Magazine | Vol. 15, No. 3

« Tous les secteurs sont concernés. La question est de savoir quelle fraction de vos émissions de champ d’application 3 vous contrôlez réellement, quelle fraction vous achetez, quelle fraction vous permettra de décider de l’évolution des choses et quelle fraction vous échappe totalement. […] Pour moi, ceci ouvre un débat philosophique plus vaste concernant la responsabilité de chacun dans certaines parties de la chaîne d’approvisionnement », indiquait-elle. Mme Greene recommandait aux sociétés minières d’orienter leurs efforts vers l’évaluation et la réduction des émissions de champ d’application 3 qu’elles maîtrisent. « Il est du ressort des [sociétés minières] de s’approvisionner en produits et services générant peu d’émissions auprès de sociétés soucieuses de leur empreinte carbone. Les transports pourraient en faire partie. Les sociétés paient directement pour l’expédition par bateau de leur minerai de fer ou de leur cuivre vers la Chine, et c’est une donnée fiable qu’elles peuvent obtenir facilement. Il est possible de savoir sur quel type de bateau et dans quel port le chargement a été envoyé, quelle distance ce chargement a parcourue, et quel était son poids », expliquait-elle. « Ce sont des données bien plus fiables que, par exemple, le devenir des matériaux après [qu’ils] ont quitté la Chine. » Mme Greene est la coauteure du Global Logistics Emissions Council Framework (GLEC Framework, le cadre du conseil des émissions mondiales liées à la logistique). Elle travaille désormais sur une nouvelle méthodologie, baptisée Coalition on Materials Emissions Transparency Framework (COMET Framework, le cadre de la coalition sur la transparence des émissions issues des matériaux), qui permettra aux parties prenantes de toute la chaîne d’approvisionnement du secteur minier d’évaluer et de comparer les émissions de CO2 inhérentes à différents produits. Le cadre COMET a été lancé par l’initiative du MIT sur les chaînes d’approvisionnement durables, le RMI, la Colorado School of Mines (l’école des mines du Colorado) et le Columbia Center on Sustainable Investment (CCSI, le centre dédié à l’investissement durable de l’université Columbia) lors du forum économique mondial qui s’est tenu en janvier 2020. Il vise à définir une nouvelle approche universelle normalisée de l’évaluation des émissions liées à la chaîne d’approvisionnement dans le secteur minier sur une période de 12 à 18 mois. Le cadre s’éloignera des moyennes trouvées dans d’autres approches de comptabilisation des émissions de CO2, et « rendra la communication plus simple à gérer et plus accessible », indiquait Mme Greene. « À l’heure actuelle, l’approche est tout simplement trop complexe. Il vous faut un doctorat rien que pour y penser. Nous voulons nous éloigner de cette complexité », ajoutait-elle. L’incitation exercée auprès des entreprises pour qu’elles rendent compte de leurs émissions de champ d’application 3 est relativement récente, expliquait Paolo Natali, directeur des initiatives sur les matériaux du RMI. Elle a émergé d’une manière relativement peu méthodique en raison de pressions émanant de deux groupes de parties prenantes très différents, à savoir les sociétés en aval qui cherchent à mettre de l’ordre dans leurs processus d’acquisition, et les investisseurs des industries lourdes qui s’inquiètent du risque pour le climat. « La rigueur méthodologique n’est devenue un problème que dernièrement ; toutes les implications, et essentiellement l’importance de se fonder sur un traçage réel et non sur des moyennes industrielles, sont relativement récentes. C’est pour cela qu’on ne s’en préoccupe que maintenant », indiquait M. Natali. ICM

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MINING LORE Over a century of giving By Tijana Mitrovic

58 | CIM Magazine | Vol. 15, No. 3

Courtesy of Columbus Library

or over a hundred years, By 1922, Ontario was prothe children of Timmins’ ducing one million ounces of Schumacher neighbourgold annually. Schumacher had hood have received a little someacquired multiple mining operthing under their Christmas trees ations in northern Ontario, the from a special benefactor, a minU.S. and Mexico over the years, ing entrepreneur named Frederand he began selling the operaick W. Schumacher. tions and land for great profits. Schumacher, a Danish immiHe sold his operation near Aura grant, was working as a pharmaLake to the Hollinger Company cist and patent medicine for $1.7 million. wholesaler in Waco, Texas, in the Schumacher continued to late 19th century when he build his fortune. After a few ordered a full train-car of Peruna attempts, he ultimately sold medicine, meant to cure excesanother one of his Porcupine sive congestion known as lots to the Dome Company. He catarrh. had first offered to sell the land When Dr. Samuel Hartman, to the company in 1911 at the the high-society doctor of Columheight of the rush asking for bus, Ohio, who invented Peruna, $75,000. When the company heard the size of the order, Hartrejected this initial price, he man decided to personally doubled it. Each time Dome’s deliver the shipment to Texas. management rejected his offer, Upon meeting Schumacher, Harthe would double the price, until man asked Schumacher to come negotiations finally broke down to Ohio and work for him. at $600,000. In Columbus, Schumacher It was Schumacher who got eventually took over the adverthe last laugh: in 1936 Dome tising for the drug. Peruna was desperate, as it was now became extremely popular certain its ore continued onto across the country. At its peak, his land. Dome finally bought product sales reached the lot for over $1.1 million and US$100,000 per day and Peruna Frederick W. Schumacher became the namesake of the Schumacher 20,000 company shares, which became the largest-selling pro- neighbourhood in Timmins, Ontario. were themselves worth prietary medicine in the U.S. $600,000 at the time. despite it being little more than a mix of water and alcohol. Once Schumacher’s mines were all sold, he continued the traPeruna’s success turned Schumacher into one of the Colum- dition of giving back to the community, and eventually Aura Lake bus’s wealthiest men. became the town of Schumacher. Even when the town of SchuAfter the Food and Drug Administration passed a new Pure macher became incorporated into Timmins, he kept up his yearly Food and Drug Act in 1906, leading Hartman and Schumacher to tradition of distributing Christmas gifts to the community’s dilute the medicine, Schumacher made a career change. He children. joined the rush to northern Ontario to find precious metals. Schumacher died in Columbus, Ohio, in 1957 at the age of 93. The Porcupine area had become the site of a gold rush after He included a provision in his will to establish a foundation to several prospectors struck gold in 1909. The area known as the keep the gift-giving tradition going: the F. W. Schumacher “Golden stairway” would become home to the Dome, Hollinger Christmas Gift Fund. In the 1970s, the volunteer fire brigade of and McIntyre mines. Schumacher took over buying the presents for the neighbourBy 1914, Schumacher had sunk a shaft and started a mine on hood children on behalf of the fund. Each year the volunteer firea lot he had purchased for $25,000 by the town of Aura Lake in fighters, many of whom grew up in the Schumacher the Porcupine camp. neighbourhood and received gifts from the fund themselves, Schumacher soon became well acquainted with the town and purchase, wrap and distribute gifts to the elementary-schoolits people. For the Christmas of 1916, he made the gold-fever aged children. induced promise of presents for the children of every miner in The children of the neighbourhood continue to receive gifts in town. the name of F.W. Schumacher: snake-oil pitchman, mining speculator and community benefactor. CIM

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