Mining Week 2010

THE ESTEVAN MERCURY

JUNE 2, 2010

Mining Week

D-SECTION

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Page D-2

THE ESTEVAN MERCURY, WEDNESDAY, JUNE 2, 2010

Earliest coal seams found in 1857 Coal mining in Saskatchewan has been around for more than a century.

The earliest recorded observations of the coal seams in southern Saskatchewan are found in the Palliser Expedition report by James Hector and Captain Palliser in 1857.

The investigations in the Souris Valley of the Estevan mapping area were prompted after learning of First Nations descriptions of coal seams exposed in the coulees and valley walls.

The International Boundary Commission report of Dawson (1875) followed. Shallow boring operations were conducted into several seams between the Souris Valley, Estevan and the Turtle Mountains, Southwestern Manitoba. However, the earliest thorough geologic reports related to the southern coalfields were known to be written in 1914 and 1918.

Mining started in the e a r l y 1 8 7 0 ’s . I n 1 9 2 3 individuals of native descent could recall mining along the banks of Willow Bunch Lake as early as 1872.

The earliest lignite mining in the Cypress map-area is not recorded, but it is probable that the Mounted Police station at Fort Walsh utilized the locally excavated seams.

George and Sidney Pocock reached the Souris Valley in the spring of 1880 and, with Chris Troy, a local homesteader, located several outcrops.

Samples were extracted and taken to Winnipeg and Hugh Sutherland organized an expedition to Roche Percee. There, the first load of commercially mined lignite was shipped on barges down the Souris and Assiniboine Rivers to Winnipeg.

The lignite seams primarily served farmers in the immediate vicinity of the lines during the late 19th century and early 20th century.

The market area of the Estevan coalfield wid-

ened between the late 1920’s and 1940’s with its use as an industrial fuel in Moose Jaw, Regina, Brandon, Winnipeg and minor local points in the area.

Small quantities were shipped infrequently to Swift Current, Saskatoon and several towns in western Ontario.

The Manitoba and western Ontario markets for Saskatchewan lignite production were aided by the ban on export of American hard coals into Canada during the First World War. The subsidies granted to the railroads during the Great Depression were also structured to induce u t i l i z a t i o n o f We s t e r n Canadian coals farther

eastward.

Environmental studies were conducted between 1918 and 1924 on the feasibility of semimanufacturing the lignite into industrial briquettes.

A plant was established by the government at Bienfait, and subsequently turned over to a private company to operate.

The Sunlight Coal Company opened the first extensive stripping pit in 1927. The project was not considered economically viable after the water-saturated coal froze during transport in the railway cars thereby becoming unmarketable.

Underground extraction techniques dominated the commercial mining operations prior to the

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Second World War. Many of the underground drift and shaft mines in the Estevan coalfields extended over an entire legal subdivision (40 acres) and some enveloped a quarter section or larger.

The Truax-Traer Company introduced strip mining in 1930 and provided severe competition to the established companies using more extensive conventional underground techniques. The rapid expansion of inexpensive tonnage during the 1930â&#x20AC;&#x2122;s reduced delivered cost to the point where large industrial users as far east as the head-of-the-lakes district in Ontario burned Saskatchewan lignite.

There were approximately 100 active mines

in the province by the close of the war in 1945.

Most of these were small operations with carts to transport the coal to local markets.

Only 13 mines shipped coal greater distances via railroad. All these were in the Estevan coalfield, in the vicinity of Estevan, Bienfait, Shand and Pinto.

The gradual conversion to strip mining during the decade following the Second World War was widespread. Underground production virtually ceased by 1955.

The production of the Estevan coalfield in the 1950â&#x20AC;&#x2122;s was characterized by the gradual elimination of the smaller underground mines and the

dominance of four major operations, three of which were fully engaged in stripping operations.

Relatively inexpensive natural gas supplies seriously threatened distant lignite markets. Only the largest mining companies were able to survive the competition.

Production during this post-war period was largely controlled by the Western Dominion Coal Mines Ltd., successor to the Traux-Traer Company (60 per cent), Manitoba and Saskatchewan Coal Company (21 per cent), Roche Percee Coal Mining Company (10 per cent) and the Eastern Collieries (nine per cent).

Combined annual production from the

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mines exceeded four million tons.

Production statistics for southern Saskatchewan showed a steadily increasing annual tonnage from 200 tons in 1890 to nearly 4.3 million tonns in 1977. It wasnâ&#x20AC;&#x2122;t until 1936 that the mines produced more than one million tons of coal. That figure dropped to 960,000 in 1939, but increased to more than a million tons the next year. The companies hit the two-million tons mark in 1950, three million in 1971 and four million in 1976.

Today, Sherritt Coal (formerly Prairie Mines & Royyalty Ltd.) is the only company involved in coal mining in the Estevan and Bienfait areas.

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THE ESTEVAN MERCURY, WEDNESDAY, JUNE 2, 2010

Page D-3

“Always something new going on” at Sherritt – McKinnon There’s never a dull moment at Sherritt Coal for Brian McKinnon.

In his first full year as general manager for Sherritt’s local mining operations, McKinnon said the Boundary Dam Mine had a record setting year, producing about 6.5 million tons of coal in 2009.

“We had an extremely good year,” McKinnon said. “The power plants ran extremely well, and they didn’t have any issues with the coal. We gave them an excellent product, so there were no hiccups in their system. The weather co-operated and the equipment co-operated.”

McKinnon forecasts that the mine will produce about 6.3 million tons of coal in 2010, slightly lower than the 2009 production numbers. Still, the company has a number of other projects on the go.

Likely the most highly anticipated project set for completion in 2010 is the activated carbon plant at the Bienfait Mine. The plant is the first of its kind in Canada and one of only a handful in all of North America.

Activated carbon works to remove mercury from the flue gas of coalfired power plants. With new regulations being imposed on mercury emissions from power plants, activated carbon is likely to be a highly sought after product.

Construction of the plant began in February 2009, and completion was projected for sometime within the first or second quarter of 2010. McKinnon confirmed that the plant should be up and running by mid-June.

“We’re heating up the multi-hearth, we’re tying

Brian McKinnon in all the different stages … we’re testing all of the different facets of the plant and once we can get the

multi-hearth heated up, we can feed product through and then start to get the activated carbon out the other

end,” McKinnon said. “So, we’re in the process right now, it’s just when you start something new there

are leaks and different things we have to fix.”

“There are other companies [producing activated carbon] in the States, so it’s kind of like the race is on, who can get their plant up and running and who can get their product out on the market,” said McKinnon.

Sherritt also continues to work on land reclamation in 2010.

“Reclamation’s extremely important to us.

With the way the mining industry is going this year, it has really picked up worldwide. We had quite a bit of equipment on order which we expected to get in at the end of March, beginning of April – it’s been delayed until July or August, so that’s put a little bit of our leveling of the spoil piles behind,” McKinnon said.

Despite the heavy

workload, the new GM has settled into his position.

When he started in August 2008, a dragline went down for eight months, leaving the company scrambling to get their coal.

By 2009, McKinnon said things straightened out for the company, making way for an exceptional year.

McKinnon says this year he is more familiar with the ins and outs of the company than ever before.

“Now I know a lot more of the people, a lot more of the processes.

We can just concentrate on trying to make things more efficient,” McKinnon said. “It went from when I first got here with the draglines being down, to trying to get this activated carbon plant up. So, there’s always something new going on.”

Protecting environment a big concern for Sask. companies Environmental stewardship and sustainability are important to the mining industry. Environmental practioners are an important part of the workforce at all mine sites. The Saskatchewan mining industry directly employs dozens of dedicated environmental professionals at operations throughout the province.

• The Saskatchewan mining industry invests considerable human resources and millions of dollars every year in environmental stewardship activities, including the monitoring of environment stations at sites, prevention and mitigation of environmental impacts, and in decommissioning and reclamation efforts and ongoing research efforts.

• In recognition of the importance of environmental management to the industry the Saskatchewan Mining Association annually sponsors environmental engineering scholarships at the two Saskatchewan universities.

• Environmental stewardship is a part of mine planning from conception to production through to reclamation. Mining companies incorporate reclamation and decommissioning plans as part of the environmental impact assessment statement that is submitted to Saskatchewan Environment. These plans go through a thorough public review process before a mine operating license is granted.

• As part of their license to operate, all mines are now required to provide financial assurance to government so that in the event that a mine may get abandoned in the future the funding is in place to reclaim the site.

• All mine sites are governed by a myriad of both federal and provincial regulations including the Canadian Environmental Protection Act, the Fisheries Act, the Navigable Wa t e r s A c t , t h e M e t a l Mining Efficient Regulations, the Species at Risk Act, the Environmental Management and Protection Act, the Spill Control Regulations, the Clean Air Regulations, the Mineral Industry Environmental Protection Regulations, the Hazardous Materials regulations, the Halocarbon Control Regulations just to mention a few.

• The industry actively participates in research, development and implementation of new technologies to improve combustion efficiency, reduce greenhouse gas emissions, increase resource conservation and further reduce environmental impact.

• Mining is a tempo-

rary use of the land that only uses 0.1 per cent of available land in the province (less than the size of Saskatoon).

• All mines have extensive tree planting programs for shelterbelts and wildlife habitat.

• Buffer lands around potash operations are managed for sustainable agriculture and/or wildlife habitat.

• Saskatchewan’s coal mines are unique, in that they undergo continuous reclamation. The objective is to reclaim annually an area equivalent to that which is disturbed. Mined areas are reclaimed to productive farmland two to three years after production. Prior to mining, cover soil is salvaged and

then directly replaced on recontoured lands.

• Revegetation to minimize wind and water erosion occurs (as soon as practical) following coversoil replacement.

Reclaimed lands are revegetated to a permanent agronomic forage or native species cover that enhances biodiveristy, provides better wildlife habitat and adds organic matter that promotes carbon sequestration.

• Mined lands are reclaimed to an acceptable predetermined sustainable multi-land use so that the land can be returned to a productive state as soon as possible. Reclaimed land could be returned to cereal or forage crop, pasture, natural forest, wildlife

habitat, recreation and commercial land uses.

• Water management plans utilized by coal mining operations minimize the impact on surface and ground water resources.

• Industry and governments, through a sub committee of the Canadian Mines Ministers, is looking at ways to address the cleanup of orphaned mine sites. The Gunnar and Lorado Mines in northern Saskatchewan are currently in the process of remediation and reclamation.

• On the exploration front, Canada continues to show world leadership as the Prospectors and Developers Association recently released their environmental excellence in explorative initiative

(E3). E3 is an unparalleled online resource of data and environmental management practices designed to promote and ensure that the highest levels of environmental stewardship are practised on mineral exploration projects worldwide. The SMA was one of the supporting organizations of this initiative and is pleased to see that it is now available to all practitioners at no charge.

• The SMA is also a founding participant of

the Saskatchewan Mineral Exploration Government Advisory Committee (SMEGAC), an industrygovernment working group that has developed best management practices for mineral exploration. In May 2008, the work of this group is being recognized for an award of environmental excellence by the Association of Professional Engineers and Geoscientists of Saskatchewan. (www.saskmining. ca/news).

We recognize and appreciate the importance of the mining industry to our community.

Saluting the Mining Industry in our Community DOREEN EAGLES, MLA ESTEVAN CONSTITUENCY OFFICE

• On the regulatory front, a major milestone was the passing of the provincial government’s Reclaimed Industrial Sites Act in May 2006. The act is expected to come into force this year and form the basis of permanent institutional control over decommissioned mine sites on Crown land. A perpetual care fund established by mine operators and administered by the province will finance longterm monitoring.

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Page D-4

THE ESTEVAN MERCURY, WEDNESDAY, JUNE 2, 2010

Plenty of interesting careers in mining industry â&#x20AC;˘ Mining is one of the fastest growing industries in Saskatchewan. In the next 10 years, an estimated 18,000 new employees will be needed in the Saskatchewan mining industry to meet replacement needs as well as fill new positions. â&#x20AC;˘ The direct and indirect workforce in Saskatchewan will grow by 42 per cent in the next 10 years. â&#x20AC;˘ In the next 10 years, high-demand occupations in the Saskatchewan mining industry include tradespeople, (millwrights, electricians, heavy-equipment mechanics, mechanics, welders, pipefitters, steam engineers) miners, supervisors, heavy equipment-operators, plant/ mill operators, administrative services, engineers, technologists (environmental, instrumentation, laboratory) and geologists. â&#x20AC;˘ In Canada an estimated 80,000 people will be needed within the next 10years â&#x20AC;&#x201C;with over 120 occupations to choose from. â&#x20AC;˘ Saskatchewanâ&#x20AC;&#x2122;s mining sector provides direct and indirect employment for approximately 25,000 peo-

ple and is the main private sector employer in northern Saskatchewan. â&#x20AC;˘ The average weekly salary of an employee in the mining industry is almost twice that of the average weekly salary of Saskatchewan employees in other sectors.

wide range of areas from exploration through production and processing to administration and marketing.

All mining companies offer extensive training to their employees. â&#x20AC;˘ Saskatchewan mining is a technological leader with 85 per cent of the work force

mendous growth.

Careers in exploration Career opportunities in the exploration area, considered the research and development of the mining cycle would include: â&#x20AC;˘ Geologists â&#x20AC;˘ Geophysicists â&#x20AC;˘ General Field Work-

â&#x20AC;˘ The mining industry spends over $3 billion annually on wages, goods and services. â&#x20AC;˘ The Saskatchewan mining industry is a great employer offering job and career opportunities in a

using advanced technology. â&#x20AC;˘ The mining industry in Saskatchewan needs more people. Many of the existing employees are projected to retire in the next few years at the same time that the industry is undergoing tre-

ers â&#x20AC;˘ Geological Technicians â&#x20AC;˘ Assayers â&#x20AC;˘ Engineers â&#x20AC;˘ Prospectors â&#x20AC;˘ Pilots â&#x20AC;˘ Drillers

This old drill press was once used in the mining industry during the 1940â&#x20AC;&#x2122;s and â&#x20AC;&#x2DC;50â&#x20AC;&#x2122;s. Now it sits idle at the Bienfait museum.

Exploration activity also generates other career opportunities such as expediting services for food, supplies and office staff.

Careers in developing, producing and marketing Developing the mines, producing and then marketing the minerals produce career opportunities in many areas including: Engineers â&#x20AC;˘ Mining â&#x20AC;˘ Civil â&#x20AC;˘ Electrical â&#x20AC;˘ Environmental â&#x20AC;˘ Geological â&#x20AC;˘ Mechanical â&#x20AC;˘ Metallurgical â&#x20AC;˘ Chemical Marketing In 2008, Saskatchewanâ&#x20AC;&#x2122;s mining industry produced a record $9.7 billion of product requiring a variety of marketing and sales specialists. â&#x20AC;˘ Accountants â&#x20AC;˘ Investor Relations â&#x20AC;˘ Financial Analysts Technicians â&#x20AC;˘ Computer Technicians â&#x20AC;˘ Draftspersons â&#x20AC;˘ Environment Technicians â&#x20AC;˘ Instrument Technicians â&#x20AC;˘ Lab Technicians â&#x20AC;˘ Metallurgical Technicians â&#x20AC;˘ Radiation Techni-

cians Trades people â&#x20AC;˘ Electricians â&#x20AC;˘ Carpenters â&#x20AC;˘ Welders â&#x20AC;˘ Machinists â&#x20AC;˘ Millwright â&#x20AC;˘ Mechanics â&#x20AC;˘ Pipefitters â&#x20AC;˘ Plumbers â&#x20AC;˘ Steam Engineers Operators â&#x20AC;˘ Draglines â&#x20AC;˘ Drillers â&#x20AC;˘ Heavy Equipment â&#x20AC;˘ Helpers â&#x20AC;˘ Labourers â&#x20AC;˘ Mill Operators â&#x20AC;˘ Miners â&#x20AC;˘ Shovels â&#x20AC;˘ Truck Drivers Administration Running a mine requires more than engineers, miners, technicians and operators.

Someone has to purchase supplies, pay bills, do the hiring and attend to numerous essential duties. Careers in mine administration include: â&#x20AC;˘ Administrative Assistants â&#x20AC;˘ IT Specialists â&#x20AC;˘ Human Resources â&#x20AC;˘ Lawyers â&#x20AC;˘ Public Affairs â&#x20AC;˘ Purchasing Agents â&#x20AC;˘ Security Guards â&#x20AC;˘ Warehouse Personnel Health & Safety The mining industry is proud of its outstanding safe-

ty and health achievements.

It has a lower lost-time accident rate than the provincial average, lower than a number of occupations including government workers.

Saskatchewan mines have often won National Safety Award winners. Careers in this area include: â&#x20AC;˘ First Aid Attendants â&#x20AC;˘ Industrial Nurses â&#x20AC;˘ Safety Officers â&#x20AC;˘ Radiation Technicians The environment Environmental stewardship is important to the mining industry. Environmental practitioners are an important part of the workforce at all mine sites. Each year, the Saskatchewan mining industry devotes considerable resources and millions of dollars to reduce its environmental footprint, including activities such as site monitoring, prevention and mitigation of environmental impacts, decommissioning and reclamation and ongoing research efforts. â&#x20AC;˘ Environmental Technicians â&#x20AC;˘ Biologists/Ecologists â&#x20AC;˘ Environmental Engineers Interested in knowing more? www.saskmining.ca www.acareerinmining.ca www.mihr.ca

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THE ESTEVAN MERCURY, WEDNESDAY, JUNE 2, 2010

Exploration is critical to mining industry • Exploration is the key to sustainability in the mining industry — it is often referred to as the “R & D” (Research & Development) of the industry.

• To be a sustainable industry, mining companies need to identify new resources to replace the ore that is mined out.

• The length of time to bring an exploration discovery into production is constantly increasing and currently averages 10 to 20 years.

• Because mineral components are found in almost all consumer goods, mining will continue to be a dominant industrial sector in our global economy.

• Growth in the economies of many developing countries is causing an increasing demand for many metals and minerals.

• Exploration is the search for new economic sources of minerals most of which are now buried deep beneath the surface of the earth.

• Exploration has evolved into a highly sophisticated, multidisciplinary science using principles of geology, physics, chemistry, and even biology to probe deep beneath the earth’s surface.

• Exploration is the highrisk end of the industry as it involves investing large sums of capital for which there is no guaranteed return.

• Exploration requires patience and persistence as fewer than 2 per cent of mineral showings or initial discoveries will actually evolve into mines.

• In Saskatchewan most of the mineral rights are owned by the province and companies or individuals obtain the rights to explore by staking a claim or acquiring a permit or a lease.

• The first stages of exploration typically involve making observations about the rocks or soils on the land surface (geological mapping), and taking samples for various types of chemical analyses.

Computer-processed images of the land surface taken from satellites are also widely used to evaluate structures that may provide clues to potential areas of mineralization.

• Later stages may consist of measuring the physi-

cal, magnetic, or electrical properties of the rocks using high-tech instruments located on the ground or in an aircraft flying over the land surface.

Again, extensive computer processing and careful scientific interpretation is needed to find out what lies beneath the surface.

• These early stages of exploration generally have little or no lasting impact on the land.

• Protection of the environment starts right at the beginning of the exploration cycle and as the exploration work becomes more involved the proponents are required to make environmental-impact submissions.

• Right from the first phase of exploration; proponents require a variety of permits before undertaking any activity.

• The most significant disturbances caused by exploration are access roads; these are either retained for future use by local residents, or reclaimed.

• Exploration expenditures in Saskatchewan reached a record $474 million in 2008 including $204.4 million for uranium, $73. 2 million for diamonds, $8.9 million for gold, $6.8 million for base metals, and industrial minerals including potash, clays, coal and rare earth elements totaling $181.7 million.

• In 2009 exploration for industrial minerals, including potash and coal, will overtake both uranium and diamonds to become the focus of mineral exploration in Saskatchewan.

• In the past 3 years, over $1 billion has been invested in mineral exploration in

The char plant at the Bienfait Mine is a vital part of Sherritt Coal’s local mining operations.

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Saskatchewan, primarily for uranium.

• Saskatchewan ranked No. 1 in Canada in terms of greenfield exploration expenditures for both 2006 and 2007 per cent compared to sixth place in 2004 (6%).

• The SMA Exploration Committee has worked with government regulators to develop 14 Best Management Practices for Mineral Exploration Activities to assist government and industry in the application and approval process for activities on land administered by Saskatchewan Environment. This guide provides information to assist in the planning, initiation and completion of a mineral exploration program in a fashion that will help minimize environmental impacts and meet relevant legislative requirements.

Page D-5

Local mines working on lengthy safety streak Safety is the number one priority at the Boundary Dam and Bienfait Mines says general manager Brian McKinnon.

Prairie Mines and Royalty Ltd. has a lengthy safety record to show for it. Together, the two southeast Saskatchewan mining locations have gone six-and-a-half years without a lost time injury.

McKinnon says the key to the company’s success in regards to safety is the fact that everyone is kept in the loop.

“We have lots of standard operating practices, we have a good training program, we document everything, and we try to keep everybody involved in what’s happening. Every crew meeting starts with safety as the priority and what’s happening. I think it’s a mindset – people want to work safe,” McKinnon said.

If all goes well, McKinnon said the company will hit seven

years without an LTI on January 10, 2011.

“Once you start building that record up, people don’t want to break it. They want to continue on. People help each other out – the employees are making sure everyone else is safe,” McKinnon said.

As with any company, one of the challenges for Sherritt is keeping new employees safe. McKinnon said the company has hired about 140 workers in the last three years and has relied on the experienced workers to help out.

“We bring new people on and we need help training. So, we rely not only on our safety and training people, but on the employees that have been here for a long time to help train and give the guys advice,” McKinnon said.

McKinnon said a new safety adviser has also been hired to help keep employees safe.

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Page D-6

THE ESTEVAN MERCURY, WEDNESDAY, JUNE 2, 2010

Safety comes first in Saskatchewan Safety is first and foremost for all members of the Saskatchewan Mining Association and member companies invest their time and effort in developing and maintaining a positive safety culture at all their operations.

• Saskatchewan mines have an excellent safety record. This record is recognized at the national level, as Saskatchewan mines have been frequent winners of the national J. T. Ryan Safety Awards sponsored by the Canadian Institute of Mining Metallurgy and Petroleum and Canada Mine Safety Appliance Company.

• Mining represents one of the safest industries in the province, averaging

less than one lost time accident (LTA) for every 200,000 hours or 100 years worked for the past 16 years.

• Saskatchewan mining has some of the lowest Workers’ Compensation Board assessment rates in the province – lower than workers in the health or government sectors; a result of continuing efforts to reduce accidents through improved training and safe workplace practices.

• Looking at the frequency of home injuries, statistically it is safer working in the mining industry than around the house.

• The SMA Safety Committee is comprised

Mining Week celebrates investment and economic growth The benefits of Saskatchewan’s mining industry will be in the spotlight this week as the province recognizes Mining Week.

Saskatchewan’s mining industry touches practically everyone in the province, and has a major impact on our economy.

This year’s theme of Mining: Investing in Saskatchewan’s Growth recognizes both the industry as a driving force and the contribution it’s expected to make to our future. The week is also a celebration of the more than 30,500 people employed directly and indirectly in mining and in jobs induced by mining activities.

“Mining is critical to the economic health and wealth of our province,” E n e rg y a n d R e s o u r c e s Minister Bill Boyd said.

“Mining contributes to our overall prosperity and GDP, and it builds communities, providing wellpaying jobs for people across the province.”

“In the next 10 years the Saskatchewan mining industry will require an additional 18,000 workers, including 4,000 tradespeople such as industrial mechanics, electricians and heavy equipment mechanics as well as over 500 engineers,” Saskatchewan Mining Association president Kelvin Dereski said.

Mining is Saskatchewan’s third largest industry - an industry that has shown considerable resilience from the global economic slowdown of last year. Value of Saskatchewan mineral sales was approximately $5 billion in 2009.

Mineral exploration activity, which leads to the discovery of new mines and growth of the industry, continues to be strong.

Exploration spending is expected to be approximately $355 million this y e a r, a n d w o u l d m a k e 2010 the second best year for exploration and mark an increase from actual expenditures of $275 million in 2009.

The Fraser Institute’s 2009-10 survey of mining companies ranked Saskatchewan’s investment climate and resource potential sixth best out of 72 jurisdictions across Canada and around the world.

This is up from a ninth place ranking in 2008 and 12th place in 2007. According to Statistics Canada, capital investment in Saskatchewan’s mining industry is expected to reach $2.5 billion in 2010, an increase of almost 10 per cent over 2009.

“Mining continues to rebound from an offyear globally in 2009, and investors are looking to Saskatchewan for the diversity of our resources and our strong business climate,” Boyd said.

“Over the next 10 years, the potash industry alone is investing almost $12 billion on Saskatchewan’s existing mine sites. There is also the potential of new potash mines and uranium operations and maybe even a diamond mine that will result in billions more in investments.”

The Saskatchewan Mining Association coordinates Mining Week events, and has a variety of activities scheduled throughout the week.

of dedicated Safety Professionals from all mine site operations. It meets monthly to share information pertaining to their sites. Its mandate is: — To form a network of safety personnel to share information on accidents, dangerous occurrences, potential hazards and safety product information to enhance health and safety at mining operations.

— The safety committee is the common voice for the mining industry in the establishment of review of acts, regulations and codes which may impact the health and safety in the mining industry.

The safety Committee sponsors joint training initiatives which benefit all members, and is active in promoting health and safety, not only at the mines but also throughout the province — The safety committee also promotes excellence in mine rescue, emergency response and mine planning. Over 200 emergency response personnel from Saskatchewan mining operations par-

ticipate in various mine rescue, fire fighting and first aid competitions each year. The Emergency Response/Mine Rescue Skills Competition is held at the conclusion of Saskatchewan Mining Week and showcases teams’ proficiencies.

• Forty-two years ago, at the Association’s first annual general meeting, one of the key initiatives reported on was working with the Mine Safety Inspection Branch to develop an acceptable standard for mine and rescue equipment at each mine and for the training of crews.

• The Mine Safety Unit, Occupational Health and Safety Branch of the Ministry of Advanced Education, Employment and Labour inspects all mines in the province on a regular basis.

• Saskatchewan mine supervisors are required to hold Department of Labour certification of their knowledge of the occupational health and safety act and regulations, certification in first aid, and certification in supervisory duties in an emer-

Salute to one of Estevan’s greatest contributors!

WOODMCLEAN COUNTRY TISDALE

ESTEVAN

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gency. No other industry in Saskatchewan has these safety requirements.

• Active occupational health and safety committees are an important part of Saskatchewan mines’ efforts to reduce accidents in the workplace • Safety training at Saskatchewan mine sites is continuous with workers initially having an extensive safety training orientation that is reinforced by ongoing safety programs. All crews have regular safety briefings to ensure that safety is the first criteria considered before any task is undertaken.

• Though rare, instances such as the underground fire at Esterhazy in January 2006 reinforce the importance and value of the daily effort placed on safety and the training all employees receive. The orderly and professional emergency/mine rescue response showcased Saskatchewan’s and Canada’s leadership in the area of mine worker health and safety.

• Saskatchewan mining companies have up-

wards of 1000 trained emergency response people, many of whom live in smaller communities throughout the province.

• The Exploration Safety Sub-Committee successfully hosted their first Exploration Safety Workshop in May 2009, with over 120 participants from a dozen companies attending.

• Many mining companies offer first aid and CPR training to all their employees as well as to their spouses, contributing to the Emergency

Response capabilities of many communities.

• Saskatchewan’s mining industry, through the SMA, is actively participating in research projects that will result in safety improvements at mines.

• Saskatchewan’s mining industry is a strong supporter of the Saskatchewan Safety Council’s “ S A F E S A S K AT C H E WAN” initiative, and the SMA works with other like-minded safety organizations to promote the culture of safety at the workplace, and at home.

Saluting Estevan’s Mining Industry GIRARD BULK SERVICE LTD.

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D&C Wanner Construction Ltd. Business: 634-5901 • Cellular: 421-1444

1 Day Incident Investigation Workshop provides the necessary tools for supervisors or safety personnel to conduct effective investigations that get to the root causes of incidents.

Industrial Supervisor Training courses are intended for new and experienced supervisors, workers transitioning into supervisory roles and Àrst line managers responsible for Àeld supervisors. These courses cover the aspects of what makes an industrial supervisor effective in dealing with workers, workloads, tools and equipment while staying compliant to occupational health and safety law.

We can customize these courses to the client’s needs.

Visit us at: www.dbsafetysolutions.com

D.B. Safety Solutions Inc. Don Beahm CRSP, CHSC Weyburn, Sask.

Phone: 306-842-3584 • Cell: 306-861-7093

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441- 4th Street, Estevan www.highenergyperformance.ca Monday - Friday 8 a.m. -5:30 p.m.

THE ESTEVAN MERCURY, WEDNESDAY, JUNE 2, 2010

Page D-7

You have questions? We have answers WHAT IS THE ECONOMIC IMPACT OF MINING IN SASKATCHEWAN? Mining is GREAT for Saskatchewan. It is the provinceâ&#x20AC;&#x2122;s third largest industry and a significant contributor to the provincial economy spending over $3 billion annually on wages, goods and services, and generating over $2 billion annually to the provincial government revenue through royalties and taxes. Mining has been identified as one of the key growth sectors for the Saskatchewan economy.

HOW MANY JOBS DOES SASKATCHEWANâ&#x20AC;&#x2122;S MINING INDUSTRY CREATE? The mining industry creates direct and indirect employment for over 25,000 people in the province. A large percentage of these people live and work in rural or northern Saskatchewan.

The average weekly salary of an employee in the mining industry is almost twice that of the average weekly salary of Saskatchewan residents.

HOW DOES SASKATCHEWAN MINING COMPARE TO THAT IN OTHER PROVINCES? In 2008, Saskatchewan was Canadaâ&#x20AC;&#x2122;s leading mineral producing jurisdiction with production valued at over $9.7 Billion. Saskatchewan accounted for 21.5 per cent of Canadaâ&#x20AC;&#x2122;s output in 2008 â&#x20AC;&#x201D; an increase of over 7 per cent from 2007.

HOW DOES SASKATCHEWAN MINING RANK INTERNATIONALLY? Saskatchewan is a prominent player in the global mining picture contributing to Canada being the worldâ&#x20AC;&#x2122;s largest producer of both potash and uranium (the only two mineral commodities for which Canada is the worldâ&#x20AC;&#x2122;s leading producer). Canada produces about

one-third of the worldâ&#x20AC;&#x2122;s potash supply which includes some production from a PCS mine in NB. Saskatchewan is Canadaâ&#x20AC;&#x2122;s only uranium producer accounting for 22 per cent of world production. With extensive reserves of both these commodities Saskatchewan is in a position to capture new market opportunities and will continue to dominate world markets for many years to come.

WHAT IS THE VALUE OF MINERAL SALES IN SASKATCHEWAN? The total value of mineral sales in 2008 was a record $9.7 billion; doubling the previous record of $4.6 B set in 2007. Escalating potash prices resulted in potash accounting for about 82.5 per cent of this total, and uranium about 15.5 per cent.

WHAT IS THE FUTURE OF MINING IN SASKATCHEWAN? Mining has a bright future in the province.

Not only will we continue to dominate world potash and uranium markets for many years to come but Saskatchewan also has tremendous untapped mineral resource potential - for example the emerging diamond play east of Prince Albert has the potential to add another world class mining camp to our stable of resources.

There is also potential for additional gold and base metal production and for new commodities such as rare earth elements and magnesium and other minerals from brines in the prairie evaporite.

WHAT IS THE ROLE OF MINERAL EXPLORATION IN SASKATCHEWAN MINING? Exploration is the key to sustainability in the mining industry â&#x20AC;&#x201C; it is often referred to as

the research and development of the industry.

Given the long lead times between an initial discovery and mining (10 â&#x20AC;&#x201C; 20 years on average) it is critical to maintain active exploration programs in the province. In the past three years, over $1 Billion has been invested in mineral exploration in Saskatchewan, primarily for uranium. Exploration expenditures in 2008 reached a new record of $474 Million - ten times the increase of the level of expenditure seen in 2005. Exploration Expenditures in 2009 were expected to be reduced to approximately $244, reflecting the junior mineral sectorâ&#x20AC;&#x2122;s difficulty in raising financing on the equity markets. In 2009 exploration for industrial minerals, including potash and coal, will overtake both uranium and diamonds to become the focus of mineral exploration in Saskatchewan.

HOW MUCH SASKATCHEWAN LAND IS USED FOR MINING? Despite its significant economic impact, in total mining only occupies 0.1 per cent of the total landmass of the province, an area smaller than the city of Saskatoon.

HAS MINING BECOME ENVIRONMENTALLY SENSITIVE AND RESPONSIBLE? Environmental stewardship is important to the mining industry and environmental practioners are an important part of the workforce at all mine sites. Each year, the Saskatchewan mining industry devotes considerable resources and millions of dollars to reduce its environmental footprint, including activities such as site monitoring, prevention and mitigation of environmental impacts, decommissioning and reclamation and ongoing research efforts. Min-

ing companies must now have an approved reclamation plan and financial assurance in place before they are given a license to operate.

HOW DOES MINING AFFECT EACH OF US IN SASKATCHEWAN? Mining provides an economic foundation for all of Saskatchewan residents â&#x20AC;&#x201C; northern, rural and urban. Mining companies in Saskatchewan directly contributed almost $2 Billion in revenue to the provincial government in 2008.

These revenues support government programs and services such as health care, education and infrastructure development. In 2009, mining companies are forecast to provide over $2Billion in direct revenues accounting for 20 per cent of the Government of Saskatchewanâ&#x20AC;&#x2122;s total budget revenues.

Globally, the mining companies in Saskatchewan are feeding and fueling the world.

Potash is used as a fertilizer to improve crop quality and quantity to feed the worldâ&#x20AC;&#x2122;s growing population on a decreasing area of arable land, and uranium is providing a source of non-GHG emitting energy to countries all over the world.

Closer to home, coal mined from southern Saskatchewan provides almost 60 per cent of the base power load for Saskatchewanâ&#x20AC;&#x2122;s electrical energy. Virtually everything around us from computers, jewelry, cars, windows, cellphones, wall board, cosmetics, medical treatments, vitamins, toothpaste all contain components of minerals. There is a saying in the industry â&#x20AC;Ś â&#x20AC;&#x153;if it canâ&#x20AC;&#x2122;t be grown it was probably mined.â&#x20AC;?

And as noted above, - many of the fertilizers that help things grow are mined right here in Saskatchewan. The benefits and products from mining surround us every day.

Proud

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1010 6th Street, Estevan

Ph: 634-6060

Fax: 634-8340

Lignite Lady is an old dragline no longer in use.

Salute to One of our Community's Greatest Contributors

A Salute To Mining Week!

Salute to all dedicated Miners!

1120 6th Street, Estevan

Ph: 634-2255 â&#x20AC;˘ Fax: 634-1227 Estevan - 238 4th St. 634-6276 Weyburn - 150 16th St. 842-6274

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e-mail: johnsonpandh@sasktel.net

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V HY VW HYDQ (0 H HUFXU\

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Office: 634-9955 Randy Franke: 421-2244

Estevan, Sask.

Page D-8 g

THE ESTEVAN MERCURY, WEDNESDAY, JUNE 2, 2010

Think of all the things in your daily life that depend on the availability of reliable, stable sources of electricity... like lights, computers, schools and hospitals. Now consider where all that electricity comes from.

The majority of the electricity used in Saskatchewan is generated by coal mined right here in our province. With modern technology coal is a clean source of energy.

Sherritt Coal is proud to celebrate Saskatchewan Mining Week. www.sherritt.com

Bienfait Mine Boundary Dam Mine Poplar River Mine