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32

CONTENTS|CONTENUCIM MAGAZINE | DECEMBER 2012 / JANUARY 2013 | DÉCEMBRE 2012 / JANVIER 2013

NEWS 16 Industry at a glance 26 Rising risks in Quebec Mining industry

focused on recovering public trust by K. Lagowski

30 New Mining Act in Ontario Regulationsdesigned to increase early consultation withFirst Nations by H. Mathisen

32 Debate over imported coal workersChinese mine pushes Canadian labour marketquestion by Z. Macintosh

34 Details of Quebec-Cree agreementreleased Land use planning central toexpanded role of First Nations in governanceby A. Dion-Ortega

TOOLS OF THE TRADE 10 Communication Compiled by H. Mathisen

COLUMNS 36 MAC Economic Commentary A bumpy road to a bright future by B. Marshall

38 Finance Greenfield projects in the new financing world by M. Chiesa

40 HR Outlook Is technological innovation the solution to the skills crunch? by R. Montpellier

42 Communications Staff engagement key to process improvement by B. De Windt

44

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

UPFRONT 44 The might of the round table EMESRT

provides one voice to accelerate saferequipment designs by H. Mathisen

46 From reactive to proactive Intelligentapproach to inspections finds its niche inmining by A. Lopez-Pacheco

48 High-tech ore bodies Shift to miningelectronics more mental than material by Z. Macintosh

50 How to say “upside potential” inMandarin Gordon Houlden on undevelopedopportunity in the Middle Kingdom by A. Dion-Ortega

004-005 TOC v9.qxd_Layout 1 2012-12-17 10:24 AM

84 CIM CALENDAR OF EVENTS Calendrier des événments de l’ICM 2013

CIM COMMUNITY 68 In the driver’s seat CIM leads Canadian

mining industry development in West Africa

L’ICM aux commandes L’ICM aux avant -postes du développement de l’industrieminière canadienne en Afrique de l’Ouest by/par C. Baldwin

71 Building a united front Innovations in mining 2013 – Latin America highlights impor-tance of collaboration by D. Zeldin

73 CSR done right Selwyn Blaylock Medal win-ner Stephen Quin takes community interests toheart by D. Plouffe

75 Reaching out CIM Edmonton Branch buildslocal ties with students by K. Lagowski

76 Bigger is better Montreal CIM Branch joinsCMMF funds pool

Voir en grand La section de Montréal del’ICM rejoint le fonds commun de la FCMMby/par D. Zeldin

78 Time to take control Philip Thwaites shedslight on importance of automation in processcontrol by A. Lopez-Pacheco

79 Creating the mindset for operationalexcellence MSGC helps develop global mining standards and best practices by H. Ednie

82 What makes students tick? CMMF scholarship winners reveal what fuels their passion for mining by L. E. Moore

84 CIM Calendar of Events 2013 Calendrierdes événments de l’ICM 2013

TECHNICALABSTRACTS 93 CIM Journal 94 Exploration & Mining Geology

IN EVERY ISSUE 6 Editor’s letter 8 President’s notes / Mot du president 95 Innovation showcase 96 Professional directory 98 Mining Lore Coal mining disaster: the 1958

Springhill Bump by C. Baldwin

December 2012 / January 2013 | 5

FEATURE | ARTICLE VEDETTEPERSPECTIVES 2013 - A TEST OF METTLE 54 Addition by subtraction Miners are tightening their belts, and seeking out efficiencies

within and across operations by H. Mathisen

56 On the record Industry players and advisors offer their takes on the prospects for the comingyear by A. Reitman

60 The tech (r)evolution Making good on the promise of existing and emerging automationtechnologies by E. Moore

63 En faire plus avec moins Les mineurs se serrent la ceinture et recherchent l’efficacitédans toutes les facettes des opérations par H. Mathisen

66 L’évolution technologique révolutionnaire Rentabiliser les technologies de l’automati-sation existantes et émergeantes. par E. Moore

54

004-005 TOC v9_Layout 1 2012-12-17 10:47 AM


editor’s letter Editor-in-chief Angela Hamlyn, [email protected]

Managing editor Wah Keung Chan, [email protected]

Senior editor Ryan Bergen, [email protected]

Section editorsFeatures: Ryan Bergen, [email protected] and Upfront: Peter Braul, [email protected], CIM Community, Histories and Technical Section:Dinah Zeldin, [email protected] editor / Communications coordinatorZoë Koulouris, [email protected]

Web editor Nathan Hall, [email protected]

Editorial internsHerb Mathisen, [email protected]ë Macintosh, [email protected] Olaguera, [email protected]

Publisher CIM

Contributors Correy Baldwin, Mauro Chiesa, Bertrand De Windt,Antoine Dion-Ortega, Heather Ednie, Krystyna Lagowski, AlexandraLopez-Pacheco, Zoë Macintosh, Brendan Marshall, Herb Mathisen,Ryan Montpellier, Eavan Moore, Lynn Elizabeth Moore, Dan Plouffe,Anna Reitman, Charis Tsevis

Translations SDL

Published 8 times a year by CIM1250 – 3500 de Maisonneuve Blvd. WestWestmount, QC, H3Z 3C1Tel.: 514.939.2710; Fax: 514.939.2714 www.cim.org; Email: [email protected]

Subscriptions Included in CIM membership ($170.00); Non-members (Canada), $220.00/yr (PE, MB, SK, AB, NT, NU, YT add$11.00 GST, BC add $26.40 HST, ON, NB, NL add $28.60 HST, QCadd $32.95 GST + PST, NS add $33.00 HST) Non-Members USAand International: US$240.00/year Single copies, $25.00.

Advertising SalesDovetail Communications Inc.30 East Beaver Creek Rd., Ste. 202Richmond Hill, Ontario L4B 1J2Tel.: 905.886.6640; Fax: 905.886.6615; www.dvtail.com National Account Executives 905.886.6641Janet Jeffery, [email protected], ext. 329Neal Young, [email protected], ext. 325

This issue’s coverA mosaic created by Athens-based visual designer Charis Tsevis.For more of his designs, visit tsevis.com.

Layout and design by Clò Communications Inc.www.clocommunications.com

Copyright©2012. All rights reserved. ISSN 1718-4177. Publications Mail No. 09786. Postage paid at CPA Saint-Laurent, QC. Dépôt légal: Bibliothèque nationale du Québec.The Institute, as a body, is not responsible for statements made or opinions advanced either in articles or in any discussion appearing in its publications.

Printed in Canada

“There is no real ending. It’s just the place whereyou stop the story.”

~ Frank Herbert

The annual Outlook issue, that binds thepast and coming year, is a moment of reckon-ing in the editorial cycle. It is a time to recallthe highlights (such as news this past springthat our November 2011 “Plan Nord” editionearned a Tabbie Award), learn from the chal-lenges (there were a few press deadlines thatwere made by the skin of our teeth), and beginlaying down plans for 2013 (such as ourexpansion to nine issues). This Outlook issue isparticularly poignant for me as it is the finalone for which I will serve as editor-in-chief. I

am thrilled to announce that, commencing with the February 2013 issue,our incumbent senior editor, Ryan Bergen, will be assuming the role.

Anybody that knows me surely knows how passionately I feel aboutCIM Magazine. I have repeatedly referred to mine as “the best gig a personcould ask for.” However, with the growing demands and opportunities onthe communications front, it has become increasingly challenging to wearboth the hats of editor-in-chief and CIM director of media and communi-cations. These roles have evolved into two distinct positions, and CIMManagement and Council have been very supportive in recognizing thischange. It was no easy task to choose which hat to wear. However, that dif-ficult choice was made easier by the fact that I am leaving the magazine insome very capable hands.

In the three years that Ryan has been with CIM Magazine, his dedication,vision and editorial prowess have been key to the evolution and success ofthe magazine and the variety of other products of the publications depart-ment. I look forward to supporting him in my advisory capacity as execu-tive editor, as he takes the magazine in exciting new directions.

I would also like to acknowledge the invaluable contribution of ourexceptional publications team, including the three talented individuals whoare currently interning with CIM Magazine: Zoë Macintosh, Herb Mathisenand Maria Olaguera. What a team! Your enthusiasm, commitment and skillhave contributed to my growth as both an editor and a person.

Finally, I would like to thank CIMers for your incredible support. I havegreatly appreciated the generosity with which you have shared your sug-gestions, stories and feedback, and it has been my honour to make thoseideas come alive on the pages of CIM Magazine. I am looking forward toengaging with you all in my capacity as director of communications, pub-lications and media.

On behalf of the CIM national office, I would like to wish you all a veryhealthy, happy and prosperous new year!

Angela Hamlyn,[email protected]

Change is in the air

006-006 Editor v6_004-004 Editor 2012-12-17 10:26 AM

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December is here and, tomy surprise, so is the mid-pointof my tenure as CIM president.

In October, I enjoyed thehospitality of Robert Carey,vice-president of the Under -ground Mining Society, and JeffSpence, chair of the Saskatoonbranch, when I joined thebranch and its many welcomingmembers for their annualPotash Night. A record 300people attended, including TimJoseph, vice-president ofDistrict 4/5, which includes the

Saskatoon branch. While in Saskatchewan, I also received anexpertly guided tour of The Mosaic Company’s Colonsay mine,courtesy of mill superintendent Mike Castleberry and undergroundsuperintendent Trevor Eagles. The mine’s state-of-the-art miningtechnology, featuring automated boring and conveyor systems,together with the highly skilled mining people on site, explain whySaskatchewan is a world leader in potash. Of course, the size andquality of the deposits also help!

We are currently preparing our plans and budgets for next year.Our most important upcoming activity is the 2013 CIM Convention in

president’s notes

Toronto, our annual conference. Our technical program organizers areputting together a strong lineup of presentations, and the exhibitionfloor space is already sold out. If you watched the Grey Cupcelebrations, you know that Toronto is not lacking in entertainment.Start making your plans to attend this event, which is shaping up to bea big success.

We are also addressing the future leadership of CIM. We havebegun the nomination process for an incoming president-elect whowill serve as president in 2015-16. And, in the coming year we will bestepping back to review our strategy and objectives for the future.

In this issue, we are highlighting CIM’s activities outside Canada’sborders with news on developments in West Africa and at our newbranch in Peru. These initiatives are indicative of CIM’s future direction– 70 per cent of Canadian mining assets are located abroad, so CIMmust follow and support our members as they lead the Canadianmining industry forward on the global stage.

I wish you all a healthy and prosperous new year and want to thankall of our active national, branch, and society members for their effortson behalf of CIM in 2012.

Terence Bowles, CIM President

Déjà décembre et, à ma grande surprise, j’entame également la der-nière moitié de mon mandat à titre de président de l’ICM.

En octobre, à mon arrivée dans cette section, j’ai pu bénéficier del’hospitalité de Robert Carey, vice-président de la Société d’exploitationminière souterraine, et de Jeff Spence, président de la section deSaskatoon, ainsi que de l’accueil chaleureux de ses nombreuxmembres lors de la Soirée de la potasse annuelle. Une foule record de300 personnes était présente, dont Tim Joseph, vice-président duDistrict 4/5, qui comprend la section de Saskatoon. Au cours de monséjour en Saskatchewan, j’ai également pu profiter d’une visite guidéede la mine Mosaic Company de Colonsay, gracieusement offerte par lesurintendant d’usine Mike Castleberry et le surintendant du travail sou-terrain Trevor Eagles. L’utilisation d’une technologie novatrice d’exploi-tation minière, faisant appel à du matériel de forage et des systèmes deconvoyeurs automatisés, ainsi que les employés hautement qualifiés quiy travaillent, expliquent pourquoi la Saskatchewan est le chef de filemondiale en production de potasse. Bien entendu, la taille et la qualitédes gisements y sont également pour quelque chose!

Nous préparons actuellement nos plans et nos budgets pour l’annéeprochaine. La principale activité de l’année 2013 sera le congrès del’ICM, notre conférence annuelle, qui se tiendra à Toronto. Nos organi-sateurs du programme technique mettent actuellement en place unevaste gamme de présentations. Les places dans la salle d’expositionsont déjà toutes vendues. Si vous avez vu les célébrations entourant la

Coupe Grey, vous savez que la ville de Toronto ne manque pas de diver-tissements. Commencez à vous préparer si vous prévoyez participer àcet événement, qui promet d'être un grand succès.

Nous travaillons également à combler le futur poste de président del’ICM. Nous avons entamé le processus de nomination en vue de l’élec-tion prochaine d’un président qui sera en poste de 2015 à 2016. Deplus, nous passerons en revue notre stratégie et nos objectifs d'avenir.

Dans ce numéro, nous mettons l’accent sur les activités de l’ICMmenées à l’extérieur du Canada, en vous donnant des nouvelles sur lesdéveloppements en Afrique occidentale et dans notre nouvelle sectionau Pérou. Ces initiatives témoignent de l’orientation future de l’ICM.Étant donné que 70 % des actifs miniers canadiens se situent à l’étran-ger, l’ICM doit suivre et appuyer ses membres tandis qu’ils s’affairent àstimuler l’industrie minière canadienne sur la scène internationale.

Je vous souhaite à tous la santé et la prospérité en cette nouvelleannée et j’aimerais remercier, au nom de l’ICM, tous les membres actifsà l’échelle du pays, d’une section ou de la société de leurs efforts en2012.

Terence Bowles, Président de l’ICM

Looking forward to 2013

En route vers 2013


008-008 Pres Notes v3_pres notes 2012-12-13 3:06 PM


ErrataRevenue bump

In “Mining payments up” (p. 23, November 2012),we cited a recent Mining Association of Canada reportincorrectly. The report estimates that Canada’s provin-cial and federal governments may have collected anextra $1.5 billion, not $300 million, in taxes and royal-ties from the sector in 2011 compared to 2010. Weregret the error.

Traduction infidèleDans l’article « L’exploration d’hydrocarbures au

Québec », paru dans le dossier spécial sur le Québec (p.68, novembre 2012), une erreur s’est glissée dans la tra-duction des chiffres donnés par Paul Durling, géophysi-cien en chef chez Corridor Resources. À la page 74, lacitation aurait dû indiquer que le gisement Old Harrycontient un potentiel de plusieurs billions, et non mil-liards, de mètres cubes de gaz naturel. La citation auraitdû également mentionner que le gisement pouvait êtreéconomiquement viable pour un projet de gaz naturel siCorridor Resources pouvait trouver plusieurs billions,et non milliards, de mètres cubes de gaz naturel. Nousnous excusons de cette erreur.

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A global company.

BESTECH receives Stellar Award

BESTECH received a 2012 Employer Stellar Award from the Edu-cation Co-ordinating Team of Workforce Planning for Sudbury andManitoulin for its support of students in the Sudbury and Manitoulinareas. It gave 13 co-op placements to students from LaurentianUniversity, University of Guelph, Michigan State University, Cam-brian College and Lockerby Composite School this past summer.The objective of this award is to foster collaboration betweenpotential industry employers, schools and students to provideopportunities and develop the future workforce. BESTECH alsopledged $25,000 to College Boreal’s fundraising campaign, MajorCapital. “We are thrilled to be honoured as a community employerand we will continue to look to our local educational institutions tocomplement our current team of professionals,” said MarcBoudreau, co-CEO of BESTECH. “The talent that comes from ourlocal schools is incredible. BESTECH has hired so many brilliantindividuals, whom we found in our own backyard. Our partnershipswith the various colleges and universities will allow us to maintainaccess to top students who are expertly trained, while the studentswill be able to further expand their knowledge by gaining workexperience in their field of study.”

ACHIEVEMENTS

009-009 Corrections v3.qxd_Layout 1 2012-12-13 3:06 PM


http://www.martin-eng.com/trademarks

◢ Communicatewithout a network

In the event of an underground

emergency, Vital Alert

Communication Inc.’s through-the-

earth CanaryLink-IS transmitter can

provide a lifeline to stranded miners.

The Toronto-based company has

developed technology that allows for

wireless, real-time, two-way voice and

text communication vertically through

up to 1,500 feet of rock and earth. The

transmitter, which uses the principles of

magnetic induction to generate a

magnetic field that pulses through the

earth, operates independently of a

mine’s communication infrastructure.

“Safety is our target,” says Andrew

Moores, Vital Alert’s senior sales

manager. Placed in a refuge chamber

or a safe room, the 200-pound device

transmits a very low frequency (VLF)

signal from underground to operators in

a surface control room. The

CanaryLink-IS is designed for use in

coal mines and is currently in the

MSHA-approval process. Moores says

the company hopes to release the

product within eight months. The

company’s hard rock CanaryLink

transmitter, weighing roughly 15

pounds, is commercially available and

in use in mines from Sudbury to South

America. Both products are compatible

with UHF/VHF radios and pre-existing

leaky feeder communication systems.


TOOLS OFTHE TRADE communication

Selective hearingSensear Communications’ SP2x lets workers cut through the

noise around them. The speech-enhancement and noise-

suppression ear bud technology blocks ambient noise up to 110

decibels, while also enabling communication, whether face to

face, via two-way radio or Bluetooth on a cell phone.

The portable SP2x, which can be clipped to a belt, connects to

most radios through a cable, so an operator can communicate

over radio – or through Bluetooth technology – without a boom

microphone. This is because the SP2x, using Sensear’s

microphone-array technology, actually picks up soundwaves in the

ear and separates speech from the background noise, says David

Cannington, Sensear’s chief marketing officer. The SP2x is useful

to haul truck operators in open pit mines, who often have to crank

up their radios to make them audible in their vehicle cabins,

where noise levels can range from 80 decibels to 90 decibels.

“Typically, they’ve been given earplugs to protect their hearing

and it tends to defeat the whole purpose,” says Cannington,

adding that operators using the SP2x can turn everything down

and protect their hearing as a result.

Signs of sleepAustralian

company

Optalert has

come up with a

novel use for

protective glasses.

A light-emitting diode built into custom frames can read an

equipment operator’s eyelids 500 times per second and detect the

early physiological signs of drowsiness. Based on how widely and

how quickly the driver’s eye is opened, a score from one to 10 is

displayed for the operator on a dashboard reader. When

drowsiness, in the form of a high reading, is detected, three alarms

are triggered – including a 90-decibel auditory warning alarm – to

avoid fatigue-related accidents. Kathryne Panna, the company’s

marketing projects coordinator, says Optalert Glasses are meant

primarily for heavy-equipment operators like haul truck drivers.

Customers can also access real-time alertness readings for their

workforce or they can browse the individual fatigue patterns of

specific employees.

010-015 Tools of the Trade v7_Layout 1 2012-12-14 9:21 AM

Wenco International Mining Systems Ltd. can

replicate a company’s entire surface mining site digitally

to give customers an overview of their operations while

work is happening on the ground. A rugged onboard

computer is fitted to each piece of machinery a

customer wishes to monitor, relaying coordinates

wirelessly from that machine to Wenco’s system software

◢ Long-distance relationship saverand onto a virtual mine plan overlay called

MineVision. This system can improve safety with its

proximity-warning capabilities and facilitate

equipment navigation around a mine site, while

also monitoring equipment health. The

FleetControl system automates dispatching by

telling operators where to go based on

predetermined productivity or quality

requirements. Equipment operators receive

instructions on a display screen mounted to their

dashboards, and this can eliminate backlogs

around excavation sites or inform operators to get

specific ore blends at loading zon es before

heading to crushers, says Glen Trainor, director of

global marketing and North American sales.

Dispatchers can override the automated

directions. Wenco staff provide system-

commissioning and ongoing training on site, says

Trainor, adding that clients tell him the system is

easy to learn.



◢ Tough computersThe MOBL-D2 from Octagon Systems is its

smallest and most cost-effective ruggedized mobile

computer to date. Sean Fendt, the company’s

principle engineer for the mining division,

explains that the computer enclosure was

designed without active moving parts like spinning

discs, coolant pumps or fans to eliminate failures

associated with vibration and repeated shock. “It’s

really meant to withstand the harsh applications of

heavy equipment,” says Fendt. The computer has a

mobile power supply, can operate in temperatures

ranging from -30 C to 70 C and functions on just

six to 11 watts of power. The computer has

potential for a wide range of applications: with

built-in GPS, location tracking is a major feature,

as is vehicle diagnostic interfacing to monitor

equipment health. The MOBL-D2 can log and

record data, support user-display interfaces and

enable Ethernet, radio, 802.11 Wi-Fi network,

cellular and even satellite radio communications.

“The

applications

are limited

only by the

imagination of

the person

writing the

software,”

says Fendt.

◢ RFID underground trackingThe ImPact Tracking

System from Mine Site

Technologies Inc. (MST)

is making it easier for

companies to keep track of

their most valuable assets

underground. Radio

frequency identification

(RFID) tags – fitted to

equipment, carried

underground or

embedded in miners’ cap lamps – emit a 2.4-gigahertz

signal that is picked up by Wi-Fi access point readers

spaced throughout an underground mine. This

information is transferred via fibre optic cable or radio

modem to a computer in a surface control room, where

personnel, vehicle and equipment locations are displayed

on either a grid or sortable list. Not only do the tags boost

safety by pinning down the exact whereabouts of

underground personnel, but they can also increase

productivity, says Joe Gladu, general manager with MST

Canada. When starting a shift, a miner can immediately

locate a piece of equipment by looking it up on an

embedded display underground, instead of wasting time

searching for it. Gladu adds that companies are also

starting to use the tags to track inventory for loss or

misplacement prevention uses. The system is compatible

with underground leaky feeder and wireless

communication networks.


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◢ Tire-preserving technologyBuilding on its

existing fleet

monitoring

system,

Pennsylvania-

based IronSyte

Monitors has

rolled out

TireSyte, a

product that lets

customers keep

constant tabs on their haul truck tires.

Each tire’s valve stem is fitted with a tire pressure

sensor that contains a circuit board and a miniature

radio; the sensor takes a reading of the tire’s

pressure and temperature every seven and a half

minutes. This information is received by a central

control unit mounted to the truck and then

transmitted to the company’s data server. Tom

Lampert, owner of IronSyte Monitors, says if the

tire’s pressure or temperature go above or below

thresholds preset by the customer, a text or email

alerts the maintenance department immediately. “If

you are 10 per cent down on tire pressure, you will

lose 10 to 20 per cent of your tire life,” says

Lampert, adding that fuel consumption also

decreases when tires are kept up to specifications.

Lampert says customers tell him the system –

customizable to any industrial tire – pays for itself

within a month, considering a 300-tonne truck tire

can cost upwards of $50,000.



◢ Boldly going everywhereMobile devices have historically not been permitted in

potentially hazardous methane collection sites due to

explosion risks posed by the sparks the devices can

generate. But Snively Inc.’s new PDA, which received

ATEX approval for operation in explosive

atmospheres in October, allows

inspectors and mine safety coordinators

to scan equipment barcodes, use safety

inspection compliance software and

even remotely access SAP work orders

at mine faces. “This model is basically

a rugged mobile computer,” says

Justine Blank, the company’s vice-

president, adding it has a built-in

video camera and can be used as a

wireless radio. The device’s battery

was designed for a 12-hour shift,

and users can check emails and

communicate via VOIP phone,

since it is compatible with 802.11

a/b/g/n wireless networks. The

device weighs two pounds with

the battery and is 9.8 x 3.3 x

2.3 inches. Already available in

Europe, the PDA is currently

undergoing U.S. Mine Safety

and Health Administration

approval testing; the

company hopes to release it

in the United States in early

2013.

Compiled by Herb Mathisen

◢ Keep tabs on your fleetBlue Sky Network’s new SkyRouter tracking

system allows fleet managers to simultaneously

monitor their aircraft, marine and ground vehicles

on one map, in real time. Vehicle location and

diagnostic information are transmitted from

installed or portable tracking devices to either the

Iridium network of 66 low-Earth orbiting satellites

or local GSM networks, and then displayed on

SkyRouter’s cloud-based portal. SkyRouter is also

accessible on Android and iOS devices through a

mobile app. Customers get pole-to-pole coverage,

making SkyRouter ideal for companies operating offshore

and in remote northern or southern locations, according to

Paul Duran, the company’s vice-president of marketing and

sales. “Other technologies don’t give you global coverage,”

says Duran. A unique feature of the system is that

D1000A/C transceivers in helicopters and fixed-wing

planes, installed in tandem with the ACH1000 control

head, let aircraft communicate directly with fleet

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BHP sells diamondbusiness

The Harry Winston Diamond Cor-poration has agreed to purchase theEkati mine, along with a sorting facilityin Yellowknife, N.W.T. and marketingoffices in Antwerp, Belgium, from BHPBilliton for $500 million.

The Ekati diamond mine has been inoperation since 1998 and, over the lastfive years, has produced an average ofnearly US$750 million in rough dia-monds each year. Harry Winston an -nounced it could push back the mine’sslated closing date of 2019 if diamondprices go up. The sale comes nearly oneyear after BHP first announced it wouldreview its diamond business.

“BHP Billiton’s focus is on large,long-life, low-cost, expandableupstream assets and has a global pursuitof a simpler business,” said BronwynWilkinson, a BHP spokesperson. “BHPBilliton’s investments in Ekati have cre-ated substantial value for shareholdersand Northern Canada. However, in theabsence of opportunities to recreate thissuccess elsewhere, BHP Billiton con-cluded that a continued presence in thediamonds industry would not be con-sistent with our strategy.”

Harry Winston is not new to thenorthern diamond mining game, own-ing a 40 per cent stake in Rio Tinto’sDiavik diamond mine. – Herb Mathisen

Mining M&As down in 2012

Economic uncertainty, renewed re -source nationalism, rising operatingcosts and volatile markets have con-tributed to a decrease in the number ofmining mergers and acquisitions(M&As) so far this year, according to areport from Ernst & Young.

Between January and September2012, 684 deals took place, down 16per cent from 816 in the same period theyear before. The total value of M&As fellby 43 per cent to $76.8 billion from$133.7 billion in the first nine months.

Bruce Sprague, Ernst & Young’sCanadian mining and metals leader, saidwith equity financing extremely tight forjunior miners, executives are patientlywaiting for their companies’ valuationsto improve. Meanwhile, intermediatesand majors are becoming more method-ical when it comes to growth, leading toa potential disparity between how muchjuniors want to sell for and how muchbuyers want to spend.

“[Intermediates and majors] are notdoing acquisitions just for the sake ofdoing them anymore,” he said.

The report is optimistic about M&Aactivity in 2013, although mostly withregard to smaller, strategic partnershipsinstead of blockbuster deals.

“I think there will be a focus by theacquirers on the internal rate of return

and they will want to do things that arecreative in the short term, because Ithink investors are requiring that,” saidSprague. – H.M.

TransCanada joins GrandRapids pipeline project

Commitment from TransCanada andheavy investment from Chinese- controlled Phoenix Energy HoldingsLtd. clinched plans for the first major oilpipeline to service future oil sands westof Alberta’s Athabasca River. “It’s defi-nitely safe to say that [Phoenix] isunderpinning the entire project,” saidTransCanada media relations specialistGrady Semmens. “Their commitment topartner and move volumes on the proj-ect has made it feasible to proceed.”

The companies formed a 50:50 jointventure that doles operations and con-struction responsibilities to Trans -Canada and “primary user” privileges toPhoenix, a PetroChina subsidiary.

Upon completion in 2017, the nearly40-inch diameter, 500-kilometre pipecould move 900,000 barrels of dilutedbitumen a day from a feeder west ofFort McMurray to the Enbridge termi-nal in Edmonton.

“There is a lot of projected growth inthe west Athabasca region and, at thistime, very little pipeline infrastructureto move the product out of that area,”Semmens said. “So there is quite a bot-tleneck and this project is one that will,we hope, be somewhat of a backbonesystem.”

An approval process beginning in2013 could let construction commencein 2014. – Zoë Macintosh

Queensland lifts uraniummining ban

The government of Queensland,with support from the Australian Lab our government, is re-opening ura-nium mining in the state after a 23-yearban. The announcement closely fol-lowed a three-day trip Prime MinisterJulia Gillard made to India to promoteher country’s uranium resources.

“Uranium exports will earn Queens-land tens of billions of dollars over thenext two decades, providing thousands

news | industry at a glance

Harry Winston purchased the Ekati diamond mine and other assets from BHP Billiton for $500 million.

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of jobs across rural and regional areas,”Queensland Premier Campbell New-man said. “Global demand for thisenergy will create enormous opportuni-ties in coming years.”

Queensland is the last of the Aus-tralian states with large uraniumdeposits to lift its ban.

A six-person Uranium Implementa-tion Committee will submit a best

practices framework to government bymid-March 2013.

According to Minister for NaturalResources and Mines Andrew Cripps,Queensland’s known uranium depositsare worth AUD$10 billion.

The Australian Uranium Associationreported that around AUD$18 millionwas spent on uranium exploration inQueensland in 2011. – Z.M.

Canada and China to sharecoal health expertise

The Canadian International Devel-opment Agency’s (CIDA) Policy OptionsProject (POP) in China has commis-sioned the Foundation for InternationalTraining (FIT) to conduct a knowledgetransfer program between Canada andcoal-rich Ningxia Autonomous Region,China.

POP was awarded the grant after itreceived a request for help from theNingxia department of health, whichplans to revamp its policies.

Seminars in Canada with occupationalhealth and safety experts will educateNingxia policymakers and regulatory offi-cials on “strategies and standards in voca-tional disease prevention, control andreduction,” said Michelle Sweet, commu-nications and program director for FIT.

“Most of the training and knowledgeexchange will take place in Canada,”Sweet said. The first of two study mis-sions by Ningxia officials will com-mence in May 2013.

A one-week tour in October alreadygranted Nova Scotia mine inspector Pleman Woodland a chance to visit sitesin China. Woodland toured facilities inNingxia to identify areas for improve-ment, according to Chrissy Matheson, aspokesperson for the Nova ScotiaLabour and Workforce Development.She added that exposure to Chineseoperations helps “ensure that [NovaScotia inspectors] maintain currencywith developing technologies and pro-cedures as they relate to workplacehealth and safety.” – Z.M.

Canada retools foreigninvestment rules

The Canadian government updatedits policy concerning the sale of Cana-dian companies to foreign state-ownedenterprises (SOEs), which could impactfuture investment in Canada. The deci-sion comes along with the approval oftwo major acquisitions by foreign SOEs.In early December, China National Off-shore Oil Corporation’s (CNOOC)US$15.1-billion acquisition of Calgary-based Nexen Inc. was approved, as wasthe $6-billion purchase of natural gas


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producer Progress Energy ResourcesCorp. by Petronas of Malaysia.

Over the next four years, the thresholdthat will trigger an Investment Canada Actreview of attempted acquisitions of Cana-dian firms by private foreign enterpriseswill rise to $1 billion. But attemptedtakeovers by SOEs will be triggered by theexisting $330- million standard.

Prime Minister Stephen Harper saidfuture takeovers of Canadian oil sandscompanies by foreign SOEs would onlybe considered under “exceptional cir-cumstances,” adding that “further suchforeign state control would not be of netbenefit to Canada.”

A discussion paper released after theannouncement by the Canadian business

law firm Osler called the CNOOC deal a“tipping point” for foreign SOE invest-ment in Canada. The paper argued thatHarper has clearly indicated a preferencefor minority ownership from SOEs inCanadian companies or for privateinvestment from outside Canada. – H.M.

Tantalum deal affectsglobal prices

A supply agreement for tantalum wasstruck between Advanced MetallurgicalGroup’s (AMG) Mibra mine in Brazil andan undisclosed industrial manufacturerfor a substantial portion of the mine’soutput. The Mibra mine is the world’slargest producer of tantalum. AMGstated it has the capacity to produce300,000 tonnes per year of the specialtymetal used to make superalloys andcapacitors for smartphones and otherelectronics. Deliveries according to thenew agreement will begin in the secondquarter of 2013.

The deal affected tantalum pricesglobally. “It re-set the market price,” saidDennis Zogbi, president of North Carolina-based market research firmPaumanok Publications Inc. Prior to theOctober deal, the speciality metal soldfor approximately US$140 per pound,Zogbi said. Afterwards it sold for around10 per cent higher, he estimated. Thisupswing comes on the heels of a surgethat has seen tantalum prices nearlytriple over the last two years, accordingto the U.S. Geological Survey. – Z.M.


Barrick Gold ranks high on carbondisclosure index

The Carbon Disclosure project (CDP)named Barrick Gold Corp. to theCDP Canada 200 Carbon DisclosureLeadership Index for a third straightyear. This list consists of Canada’s 20leading companies with the highestcarbon disclosure scores on corpo-rate carbon-related issues, includinggreenhouse gas emissions, strategyand governance. It is Barrick Gold’ssecond top five ranking in this survey.

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Oyu Tolgoi moves one stepcloser

Oyu Tolgoi LLC has signed a powersupply agreement with a Chinese com-pany for its US$6-billion project insouthern Mongolia, meaning commer-cial production could begin as early asthe first half of 2013.

As part of the purchasing agreementwith China’s Inner Mongolia PowerCorp., the mine can source and subcon-tract power from suppliers outsideMongolia for the first four years of pro-duction, but is committed to havingMongolia provide all of the mine’spower afterwards. Mongolia does notcurrently have the capacity to provide

the project’s power needs, according toan Oyu Tolgoi LLC press release.

The mine will initially start produc-tion as an open pit mine and developunderground block caving operations,with the mine’s overall lifespan esti-mated at more than 50 years. – H.M.

First Nations oppose FIPATreaty

A number of Aboriginal groups saynew rights granted to Chineseinvestors by the Canada-China For-eign Investment Promotion and Pro-tection Agreement (FIPA) couldjeopardize Canada’s constitutionalduties to First Nations. The St’at’imcChiefs Council, the Chiefs of Ontarioand the Union of B.C. Indian Chiefs allwrote open letters to Prime MinisterStephen Harper to that effect, and theAssembly of Manitoba Chiefs sent asimilar letter to Chen Deming, theChinese minister of commerce.

These First Nations leaders broadlycriticize the agreement, tabled lastSeptember, for providing better legalprotection to Chinese investors’ inter-ests than to Aboriginal title, rights andtreaty rights.

FIPA would introduce costly feesfor measures perceived as expropria-tion, which some argue would make itdifficult for the Canadian governmentto side with Aboriginal groups in landclaim disputes with Chinese compa-nies. According to Jessica Clogg, exec-utive director of environmentaladvocacy-focused legal firm WestCoast Environmental Law, “The threatof multi-million-dollar investor-statesuits will create a profound disincen-tive for the Crown to negotiate hon-ourably regarding environmental andcultural protection measures in treatiesor other legal agreements with FirstNations.” – Z.M.

BP agrees to US$4.5Bsettlement

London-based BP has agreed to aUS$4.5-billion settlement with theUnited States government and the Secu-rities and Exchange Commission (SEC)for its actions that led to the Deepwater


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Horizon oil spill in the Gulf of Mexicoin 2010.

The company pled guilty to 11counts of manslaughter and three addi-tional charges pertaining to environ-mental violations and misleading thegovernment as to the severity of thespill. Two BP supervisors were chargedwith manslaughter and one seniorexecutive was charged with obstruc-tion of Congress. The settlement – withUS$4 billion to be paid to the U.S. gov-ernment and US$525 million to SEC –is the country’s largest ever, and BP willpay in instalments over six years.

On April 20, 2010, a blowout at theMacondo well, located 67 kilometres offthe coast of Louisiana, killed 11employees, injured 17 more and causedthe largest oil spill in American history.An estimated five million barrels of oilflowed into the Gulf of Mexico for threemonths until the well was finallycapped on July 15.

In a release, BP said it has paid outmore than US$9 billion in claims to

businesses, government departmentsand individuals affected by the spill andexpects to pay roughly US$7.8 billion in

future settlements. The U.S. govern-ment intends to continue to pursue fur-ther civil action against BP. – H.M.

industry at a glance | news

BP agreed to a US$4.5 billion settlement with the U.S. government and the Securities and Exchange Commission(SEC) for actions that led to the Deepwater Horizon spill.

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Mining academy opens inFlin Flon

Now up and running, the NorthernManitoba Mining Academy in FlinFlon aims to increase opportunities forresidents to fill future jobs in theregion’s mining sector.

Executive director Rob Penner saidthe academy will adapt its courses tosuit industry demands.

“We don’t have a set repertoire ofprogramming that we deliver year afteryear,” he said. “Our curriculum andpro gramming evolves all the time andresponds to the needs of industry.”

HudBay Minerals, for instance,expects its Reed copper mine near FlinFlon to begin production within a yearand Penner said the company will needskilled underground miners. The acad-emy will partner with industry, which cansponsor students in programs and volun-teer its own personnel to conduct trainingcourses. The academy will also work withuniversities to develop its curriculum.

Penner said exploration technicianand diamond driller helper programsare already underway and that hehoped to soon offer the first year ofthe University of Manitoba’s geologi-cal sciences program. The 3,500-square-foot academy, operating underthe University College of the North,will provide fall-arrest, all-terrain-vehicle certification and safetycourses, along with a variety of othertraining programs.

The academy boasts an under-ground mining simulator, a wet laband mineral analysis and microscopy equipment so research work can beconducted in the area. – H.M.

Ottawa sued for Quebecfracking ban

Lone Pine Resources, Inc. wants$250 million in federal compensationfor oil and gas exploration permitsrevoked by the Quebec provincial gov-ernment in 2011. A tribunal held by a

World Bank organization will deter-mine if assets were indeed expropri-ated from an American company, aviolation of NAFTA’s Chapter Eleven,which protects foreign investors.

“[Canada] is responsible underNAFTA for the responsibilities of theprovince, which it can’t control,” saidPeter Kirby, a Montreal-based seniorpartner with Fasken Martineau. Henoted that if the tribunal sides withLone Pine, Canada, and not Quebec,would be obligated to pay.

Although Lone Pine Resources Inc.is based in Delaware, it only has oper-ations in Canada and is the parentcompany of Lone Pine ResourcesCanada Ltd., which is headquarteredin Calgary. Those are factors which,said Kirby, will throw its status as a for-eign investor into question.

Quebec’s Bill 18, the act suspendingoil and gas mining permits in the St.Lawrence River, explicitly decreed nocompensation would be awarded.

– Z.M.


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In 2008, Quebec was ranked asnumber one by the Fraser Institute’sannual survey of mining companies,which gathers opinions about 93 min-ing jurisdictions around the world.But in 2011, Quebec slipped severalnotches to number five. At the recentMining Business Risks summit inToronto, the decline of the province’sstanding was in the spotlight, as majorplayers discussed how miners can mit-igate growing social risk in Quebec.

According to Jean-Marc Lulin, pres-ident and CEO of Longueuil-basedAzimut Exploration, the downwardpath began with the 2009 QuebecAuditor General’s report that targetedloopholes in mining taxation and trig-gered a systematic protest within Que-bec against mining. “This covers a largerange of protest, not only about taxa-tion, but also issues like uraniumexploration and open pit mining,which have been subject to well- organized protests by anti-miningactivists,” he said.

Lulin pointed out that activists arepreying on Quebecers’ heightenedsense of fear over the environment.

Those fears were quantified in a2012 Canadian EnvironmentalBarometer study by EnvironicsResearch Group. “Residents of Quebec

Rising risks in QuebecMining industry focused on recovering public trust

By Krystyna Lagowski

were second only to British Columbiain their concern about the environ-ment,” said Darren Karasiuk, vice-president of corporate and publicaffairs at Environics Research Group.“They’re very alarmist when it comesto the environment.”

What is more, 39 per cent of thosepolled believe environmental groups –specifically Greenpeace – show leader-ship in addressing their concerns. The

news

government’s leadership only impressedfour per cent of the respondents.

One antidote may lie in public out-reach. The auditor general’s report wasone of the factors that spurred the cre-ation of an organization called Minal-liance in 2009 by the Quebec MineralExploration Association (AEMQ), theQuebec Mining Association (QMA) andother industry players. Minalliance’smandate is to educate the public about

Mining developments in Quebec can meet with considerable popular opposition.

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the positive aspects of mining. “Ourvision is to make the mineral industrya source of pride for all Quebecers,”said Normand Champigny, chair ofthe board of directors of Minalliance,as well as president of Donner Metals.“And ‘pride’ is a word we use deliber-ately – it’s important to Quebecers.”

It is possible that the very successof the mining industry in Quebec hasmade it a target. “Quebec has wit-nessed a boom in this industry, whichhas elevated it to more visibility,” saidChampigny. “Once, it was the success-ful forestry industry that was underattack, but as it diminished in impor-tance, mining has taken its place.”

Minalliance has taken a proactivestance, and started by hiring a skilledcommunications specialist. “We under-stand where our target market is,”noted Champigny. Initially, he said,Minalliance members were skeptical

about an edgy video that portrays rocksas “sexy.” But when it was released tothe general public, an Environics studyfound that the video increased the pub-lic’s approval ratings of the miningindustry by three per cent.

Minalliance has also released videosfeaturing interviews with industryinsiders to both dispel myths andpresent the industry’s realities to thepublic, using social media and webtools. “The industry often has beencategorized as low-tech,” observedChampigny. “A book created with theUniversité du Quebec à Montreal, theMining Association of Canada and theProspectors and Developers Associa-tion of Canada (PDAC) focused on100 innovations in the industry, and isavailable as a reference tool for themedia, academics, et cetera.”

A study and strategic forum washeld on the role of Montreal in the

development of Quebec’s naturalresources. “Many Quebecers believethe benefits of mining are for the north,when in fact, there are over 1,800 sup-pliers to the mining industry in Mon-treal,” said Champigny.

Minalliance is also targeting youngpeople with positive messaging aboutmining. The organization attended theEureka outdoor science festival inMontreal, reaching 60,000 students.And the Mining Matters elementaryand high school educational initiative,sponsored by PDAC, will be broughtto Quebec schools in French. “Wewant to make sure younger people geta better understanding of what theindustry is about,” explainedChampigny.

“Quebec is still a great place to domining, and we want to stay up there,”he said. “Our messaging highlightswhat is being done right.” CIM

news

026-035 News v7_Layout 1 2012-12-13 3:00 PM

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Canadian_Institute_of_Mining_CA_u412v_Dec.indd 1 2012-11-09 18:08:27

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A new Mining Act in Ontario requir-ing companies to submit plans andapply for permits before conductingexploration work is being phased in.When companies wish to conduct low-impact exploration activities – such assmall-scale line cutting and trenching –they will need to submit plans to theprovincial government, which in turnwill inform potentially affected privateand Aboriginal landholders of the work.When this work surpasses quantitativethresholds, or requires mechanizedequipment, the company will have to gothrough a permitting process that willgive affected groups a chance to askquestions and suggest conditions for theproject. For line cutting, the threshold is1.5 metres wide.

For now, compliance is voluntarybut it will become mandatory on April1, 2013. The government is encourag-ing companies to submit permits duringthis voluntary phase by making theprocess free; a permit fee has yet to bedetermined.

Garry Clark, executive director of theOntario Prospectors Association, saidmany in the industry have expressed

New Mining Act in OntarioRegulations designed to increase early consultation with First Nations

By Herb Mathisen

concerns that the new rules will requireextra work, cause delays and ultimatelycost companies money. A company can-not start work until 30 days after it hassubmitted an exploration plan, and per-mit approvals are expected to take 50days; plans expire after two years andpermits after three. Clark said compa-nies will have to build these timelinesinto their project plans, noting thatadded uncertainty exists over potentialtemporary holdups dealing with site-specific terms and conditions that couldprolong the consultation process.

“That’s the biggest worry,” he said.“There’s going to be a slowdown on howyou get a permit.”

Rob Merwin, director of the OntarioMining Act Modernization Secretariat,offered a different view. “We think thatthese new rules and tools just providethat clarity and certainty that peoplewere looking for,” he said, adding theprocess compels companies and FirstNations to build positive relationshipsearly on. Merwin said the new rules stillallow prospectors to stake claims with-out consultation but also to recognizeAboriginal and treaty rights by providing

First Nations with free, prior andinformed consent over the use of theirtraditional lands.

The new rules do not require compa-nies and First Nations to reach formalagreements before permits are issued,but Merwin said the governmentencourages these types of contracts, asthey “provide certainty and stability thata permit alone can’t achieve.”

The Mining Act does lay out someguidelines for effective formal agreements.The new rules state that any contractshould not place excessive burden oncompanies or undermine the feasibility ofa project. These contracts can consist ofongoing monitoring and in for mation-sharing commitments, while also includ-ing financial components relating toadministrative fees or future employment,depending on the scale of the proposedproject. “These arrangements do notmean a payment of an access fee or a drill-hole fee,” said Merwin.

Since the regulations came into effect,Shawn Batise, executive director of theWabun Tribal Council (WTC), said hisphone has been busy. The WTC, whichrepresents six First Nation communities

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026-035 News v7_Layout 1 2012-12-13 3:00 PM

around Timmins, Ontario, has signedmore than 15 agreements with explo-ration companies and, by this time nextyear, Batise believes that number couldbe as high as 40: “We signed two agree-ments in the last week.”

The council negotiates a standardagreement with companies, whichincludes information-sharing commit-ments along with financial accommoda-tion measures accounting for a “verysmall percentage” of the work being pro-posed. For a $250,000 drill program,Batise said the council would ask for anamount “in the thousands,” whichwould assist the communities in moni-toring the project and in accessing tech-nical and legal reviews. “The expense tothe company at the early exploration

stage is pretty minimal,” he said, addingthat the council also asks for companyoptions and share advances. The newprocess may, however, have a heavierimpact on smaller companies with lim-ited resources.

Kenning Marchant, a lawyer andAboriginal engagement advisor, saidlarger companies have more flexibility tonegotiate deals, but junior companiesmay not be able to pursue some proper-ties, especially if an agreement cannot bereached and a dispute has to be resolvedthrough litigation. The federal flow-through shares program – a majormeans for junior companies to raisemoney for drilling – needs to be tweakedso that companies can access this financ-ing early in consultation and engagement

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work, which is a precondition fordrilling, according to Marchant.

“Everyone wants to have good rela-tions between mining companies andFirst Nation and other stakeholders,because that is good for everybody,”Marchant said, noting that the specula-tive nature and limited economic bene-fits available at the exploration stagemust be acknowledged during negotia-tions. “The big benefits come when youactually find a mine,” he added.

The province has held nine industryworkshops and will reach out to 44 FirstNation communities to explain the newrules and the basics of the miningsequence, while also training commu-nity members to assess and providecomment on plans and permits. CIM

026-035 News v8.qxd_Layout 1 2012-12-17 10:25 AM


Chinese-controlled HD Miningattracted widespread ire in Octoberfor its decision to bring in 201 Chi-nese workers for its Murray Rivermetallurgical coal deposit. Main-stream media alleged that the company discriminates ag ain st Ca nadians because of its listing of“Mandarin” as a requirement in jobads. The company plans to developthe Murray River deposit as a long-wall project, a method of under-ground coal mining no longerpractised in Canada. Production isexpected to begin in 2015.

Jody Shimkus, vice-presidentof environmental and regulatoryaffairs at HD Mining, has publiclycited the lack of longwall miningexperience in Canada as reason forthe company’s need to look else-where for labourers. The Cana-dian Temporary Foreign WorkersProgram permitted the hires bygranting a positive Labour Market Opin-ion to the company’s application.

But a statement provided by Shimkusconfirmed the temporary foreign workersare being brought in to do 100,000tonnes of bulk sampling work, not long-wall mining. Longwall mining involvesan automated shearer traveling back andforth across the coal face, with a hydraulicroof support system that automaticallyadvances. The method’s last successfulincarnation in Canada, the Prince mine inCape Breton, closed in 2001 after adrawn-out decline. Bulk sampling, on theother hand, is a standard mining processin all mineral extraction sectors by whicha company assesses the value of a deposit.In this case, bulk sampling is happeningsimultaneously with the creation of thenew mine’s tunnels and entryways.

“This pre-operation stage involves[surface] ground preparation, which isdone by local Canadian companies, andunderground work which requires spe-cial skills proven rare in BC and Canada,”the statement from HD Mining said.

Debate over imported coal workersChinese mine pushes Canadian labour market question

By Zoë Macintosh

But Bobby Burchell, Canadian repre-sentative of the United Mine Workers ofAmerica, diasagrees. “For them to saythere’s no [coal bulk sampling] expertisein Canada, that’s bullshit,” he said.Burchell, who has experience with long-wall mines, added that only the greaterexposure to methane gases makes under-ground coal sampling differ from gold ordiamond sampling.

The federal government may backhim up. Currently, it is reviewing theTemporary Foreign Workers Program.“We are not satisfied that sufficient effortswere made to recruit or train Canadiansinterested in jobs,” said Diane Finley,Minister of Human Resources and SkillsDevelopment. “It is clear to our govern-ment that there are some problems withthe Temporary Foreign Worker Program.We take these very seriously.”

The idea of bringing in foreign expe-rienced labour has brought the impor-tance of training to the fore of discussion.

“In my opinion there should be a lotmore training dollars put in by both the

coal companies and the governments totrain younger Canadians to work in themines,” Burchell said, pointing out thatlongwall production at the Murray Riverproject is still more than a year away.

Burchell represents the union forGrande Cache Coal, one of two under-ground coal mines still operating inCanada. The mine has also trained “a lot”of Canadian hard rock miners, he said,bringing them up to speed on the coalenvironment’s unique conditions andhazards once underground.

Training for longwall mining,though, will take investment ofresources. “There are many people thatbelieve you can train a longwall miner ora coal miner in 10 minutes, and it’s notgoing to happen,” said Ed Taje, seniorinspector of underground coal mines inB.C., who has experience in longwallmining. “The reason they mine coal isthat it burns. So you’re basically mininga fuel. As a result, you’re way moreparanoid and cognisant of that. It’s a dif-ferent culture.”

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Longwall mining machines automatically move across the coal face.

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Several B.C. mine inspectors havealready undergone a longwall knowledgeexchange in China. An October 2011tour of HD Mining and partners’ minesin China was the first time most had everseen a longwall, Taje said. “It openedtheir eyes,” he explained. “I think theywent, some of them, with the expecta-tion that they were going to see the [neg-ative] newspaper articles about China.And they actually went to a modernoperation with current standards […]not much different from here.”

The reason B.C. inspectors need addi-tonal training is because all of Canada’slongwall experience lies on the East Coastin an aging population of miners now intheir mid-50s. That workforce could stillbe available for mentoring and training,said Bob MacDonald, director general ofsite operations and remediation at Enterprise Cape Breton Corporation.

MacDonald said the question ofimporting coal labour is not likely to goaway. “They are dealing with [importinglabour] as a matter of fact in the Aus-tralian coal mining industry,” he said“They are struggling right now to findcoal mining people. It’s really a battlearound the world.” CIM

The University of Toronto’s Department of Civil Engineering and Lassonde Institute of Mining invite applications for a tenure-stream position at the rank of Associate or Full Professor. The successful candidate will be appointed to a prestigious Endowed Chair and be expected to take a leadership role in the

term with the possibility of renewal following a favourable review. The successful candidate will commence his/her duties on July 1, 2013 or as soon as possible thereafter.

The Department of Civil Engineering at the University of Toronto is committed to excellence in teaching and interdisciplinary research. Candidates must have exceptional undergraduate and graduate teaching in disciplines related to mineral/mining engineering and an international reputation for innovative research in any area related to the mineral/mining industries.

The Lassonde Institute of Mining promotes and facilitates cross-disciplinary research related to challenges facing the mineral and energy sectors. Lassonde Mineral Engineering crosses traditional university disciplines to provide a

relevant applied science and engineering. Graduates are highly sought by industry, consulting and research establishments.

Candidates should hold a doctoral degree, be eligible for registration as a Professional Engineer in Ontario, and must have demonstrated leadership, administrative capabilities, communication skills and a strong vision to develop the potential synergies that are available at the University of Toronto. Evidence of excellence in teaching and research is required. Salary will be commensurate

letter, curriculum vitae, teaching dossier (including a statement of teaching philosophy), and a statement outlining current and future research interests. If you have questions about this position, please contact [email protected]. All application materials should be submitted online.

apply.

Applicants should also ask at least three referees to send letters directly to the department via e-mail to [email protected] by the closing date, February 28, 2013. Applications will be reviewed when they are received.

The University of Toronto is strongly committed to diversity within its community. The University especially welcomes applications from visible minority group members, women, Aboriginal persons, persons with disabilities, members of

and permanent residents will be given priority.

Associate/Full Professor in Mining-related disciplines, Endowed Chair (Tenure Stream)

Cameco makes dreams come true

Cameco, in cooperation with theSaskatchewan Cancer Society andthe Saskatchewan Roughriders foot-ball team, unveiled the names of indi-viduals participating in the CamecoTouchdown for Dreams program. Thedreams of five women who havebeen diagnosed with life-threateningcancer will become a reality withinthe next three years. The recipientsare from Alida, Dundurn, Moose Jaw,Outlook and Regina.

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This past summer, the government of Quebec and the CreeNation reached a major agreement on governance in EeyouIstchee-James Bay, a region containing hundreds of targets forfuture mineral exploration. The new deal gives added land useplanning power to the Cree. While previously approved permitswill be maintained, the agreement could have a significantimpact on how future development will be carried out in this330,000-square- kilometre territory.

The area is divided into three categories of governance: Category I lands are exclusively reserved for Aboriginals’ use. OnCategory II lands, hunting, fishing and trapping rights arereserved for them, and on Category III lands, they have thereserved hunting and harvesting rights to only some animalspecies. The latter two categories are the ones affected by thenew agreement.

Until now, the government of Quebec established objectivesfor development on Category II and III lands. The Cree had nosay in the planning stages but were consulted afterward. “Theexisting governance regime excluded the Cree from participat-ing in the governance of our own territory and, therefore, itposed a very serious obstacle to the democratic governance ofthe region,” said Tina Petawabano, director of Cree-Quebecrelations at the Grand Council of the Crees.

“What changes is that the Cree will be more implicated inthe creation of the development objectives of the territory,” saidNicolas Houde, professor of political science at the Universitédu Quebec à Montréal. “[Mining] projects will have to fit in theglobal view of the region’s development. They will be selectedaccording to their relevancy.”

This means that if the Cree Nation plans to establish a newlyprotected area, the provincial government will take that intoaccount when issuing exploration or environmental permits.This could influence where and how an exploration companychooses to operate in order to respect the new planning.

The provincial government has the power to reject a landuse plan, though, according to Houde, “it would be difficult tojustify a refusal.” How those land use plans are developeddepends on which category the land falls under.

On Category II lands, a new Cree Nation government willreplace the former James Bay municipality. It will essentiallyhave the powers of a regional county municipality (RCM) and willcreate its own land use plans. This government will cover 16.5 percent of the James Bay territory. According to Houde, the CreeNation government will make its plans after consulting local com-munities and then submit them to the provincial govern ment.

“The Cree will be able to exercise local and supra-localmunicipal responsibilities, as well as the planning and man-agement of certain resources,” said Petawabano. “At the outset,the Cree Nation government will assume expanded powers,under specific agreements with Quebec, regarding lands and

forestry resources. In time, these powers may extend to otherresource sectors, subject to agreement with Quebec.” Whetherthese expanded powers will concern mineral resources, andwhat they would consist of exactly, are issues that will be clar-ified through on-going separate negotiations with the Quebecgovernment.

A similar change will occur on Category III lands. In thiscase, the new regional government will include representativesof the Cree, non-natives and, for the first five years, the govern-ment of Quebec. Before now, land use planning in Category IIIlands, which cover almost 82 per cent of the James Bay terri-tory, was the sole responsibility of the province.

“In the future, exploration permits will have to take intoaccount land and resource use plans developed by the CreeNation government for Category II lands and by the regionalgovernment for Category III lands,” Petawabano pointed out.“Claim holders will be invited to consult with the Cree Nationgovernment and with the affected Cree community.”

Petawabano has made it clear that permits granted before thesignature of the agreement “will be maintained.” She also insistedthat as long as mining projects meet their global developmentobjectives for the land, “the Cree are prepared to support andparticipate in resource development in [their] territory.”

A municipal land use plan has no legally binding effects onexploration permits, but a company whose project does not fitin could find it more difficult to go through the environmentalassessment process, since social licence is a condition forapproval. CIM

Details of Quebec-Cree agreement releasedLand use planning central to expanded role of First Nations in governance

By Antoine Dion-Ortega

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Fordia receives Quebec award for performance

The Quebec Society for Quality (QSQ) awarded diamond tool,equipment and accessory manufacturer Fordia the GrandPrix québécois de la qualité for its management and overallperformance. “I am extremely proud of the accomplishmentsof our employees since the company’s founding in 1977,”said Luc Paquet, president of Fordia. “Thanks to the com-bined efforts of all our departments, we have achieved newheights in terms of our performance. We are very honouredto be receiving this most prestigious award for the secondtime in our history.” The QSQ said teamwork and good busi-ness practices are what set Fordia apart, making it one of thebest businesses in the province. Fordia has expanded itsglobal presence with offices in Colombia and South Africa,and with distribution outlets in China and Mongolia.

ACHIEVEMENTS

026-035 News v7_Layout 1 2012-12-13 3:00 PM

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A bumpy road to a bright futureBY BRENDAN MARSHALL

columnsM A C E C O N O M I C C O M M E N T A R Y

This was an active year for the mining industry. China’sweaker demand for mined products and other globalmarket forces sent price fluctuations through several

mined commodities. The continued credit crunch adverselyaffected exploration prospects. Resource nationalism contin-ued to rear its head as miners’ number one risk worldwide.These events shaped the past year in mining and have affectedforecasts for 2013. Although the industry’s outlook remainsfavourable over the long term, there is no shortage of chal-lenges to face over the coming year.

China, an enormous consumer of minerals and metals anda driver of growth in the mining sector, made headlines inMarch by cutting its annual growth target from eight per cent –its goal in place since 2005 – to 7.5 per cent. In October, theIMF followed suit, also reducing itsgrowth projections for China. To put thesefigures in perspective: 7.5 per cent growthis still robust, and China still accounts forupward of 40 per cent of global base metaldemand, compared to five per cent in the1980s. If the past is the best indication ofthe future, then China is unlikely to runout of gas overnight, and will continue todrive demand for minerals and metals.

Despite these moderately reduced growth projections, theprices of certain key products remained buoyant, albeit volatileat times. For example, iron ore prices slumped 42 per centfrom April’s high to a three-year low of $87 per tonne, only torebound to $110 per tonne in September, as Chinese investorsanticipated domestic stimulus measures to increase demandfor steel. Potash, though buoyant, has also descended fromprice peaks in recent years. Meanwhile, some speculate goldwill reach $2,000 per ounce in the short term while copperremains strong – both supporting multi-metallic operationsacross Canada.

Even with historically buoyant prices, factors beyond sup-ply and demand played larger roles for some mined productsin certain jurisdictions. The price of nickel, for example, hastripled over the last decade to $17.7 per tonne. However,when production input cost increases are factored in – such asoil and coal’s respective 349 and 296 per cent increases – thefacts change. In Canada, when changes in labour costs (up 26per cent), consumer price index (up 25 per cent) and dollarvalue (up 56 per cent) over the decade are factored in, the reality becomes clearer: high prices do not necessarily equalhigh profits.

In Canada, the significantly reduced availability of capital isa challenge for prospectors. Although it is also true for somemajors, today’s environment has been particularly demandingfor junior companies. The current risk-averse sentiment

among investors, linked to uncertainty about global economicstrength, is likely to endure until U.S. and European economicfluctuations stabilize. This prospect is difficult for many Cana-dian companies and may carry on for some time yet. Ambigu-ity over the length of global economic uncertainty, the adverseimpact this uncertainty has on the ability to raise funds, andthe crucial exploration role that junior companies play presentsignificant challenges to the industry, especially consideringthe marked decline in Proven and Probable Canadian basemetal Reserves.

Finally, according to Ernst & Young, resource nationalismremained the number one risk to miners. Perhaps the most glaring example is Australia’s July 1 Senate approval of a 30per cent tax on iron ore and coal mining profits – proof that no

jurisdiction is immune to this phenomenon. Similar examplesare spurring mining companies to exercise heightened precau-tion when investing in future projects. But Canada’s aggressivetrade expansion has helped increase both flexibility and invest-ment security in resource-rich countries. Examples from 2012include bilateral agreements with China, Tanzania, otherstrategic partners and the Trans-Pacific Partnership, whoseimportance and scope are poised to surpass NAFTA.

Despite concerns, particularly over Chinese growth rates,the Canadian mining sector’s future is bright. Proactive measures – such as preserving Canada’s attractive and stabledomestic regulatory and investment environment, whileenhancing international growth opportunities through bi- andmultilateral trade expansion – provide Canadian industry adegree of certainty and flexibility in a volatile time. Growth,even if at a moderately reduced pace, is likely to remain strongover the long term. As a country rich in mineral resources andmining talent, Canada has the opportunity to capitalize on agrowing mining sector,even if there are somebumps along the way. CIM

Brendan Marshall is director of economic affairs at MAC. He works to advancethe mining industry’s interests and understanding of key economic issues suchas taxation, international trade and investment, transportation, energy andclimate change, and innovation.

“China is unlikely

to run out of gas overnight, and will continue to drive demand

for minerals and metals.”

036-043 Columns v17_Layout 1 2012-12-13 2:59 PM

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Project-completion financing equity: Equity markets are bearish,especially for a mining company with opaque results or capitalspending in excess of its means. Still, companies can obtainproject-completion financing, provided that financial and tech-nical disclosure in their data room is clear and complete.Osisko, Detour Lake and Rubicon are good examples of this.

Stream financing: Greenfield projects can receive cash up front inexchange for metal deliveries at discounted prices over the pro-duction life of the project. The upsides of stream financinginclude fewer restrictive conditions to qualify for the loan anda lender that shares the production risk. However, a junior witha greenfield project must approach this option with caution inorder to avoid being locked into a single source of partialfinancing. Juniors should make stream financing arrangementsin tandem with other financing agreements to ensure sufficientfunding can be secured.

Existing assets: Many companies are now matching capitalexpenditure plans to operating cash capacities or selling exist-

A s mining projects get larger and riskier, capital marketsbecome more conservative. Markets are thus very frag-mented, leaving mining companies, large and small, to

consider piece-meal funding and bundling options fromnumerous sources. Here are some sources of funding to consider:

Bank financing: Due to economic unrest in Europe, coupledwith fluctuating commodity prices and increased risk, banks –which have historically been the main source of long-termlending – can no longer afford to make large, long-term com-mitments. While some banks can offer revolving credit facilities – which provide the liquidity essential for a company’sworking capital needs and interim construction – these areonly available if the company has existing solvent operationsto offer as collateral, if there is an assurance of a payout fromeither medium-term debt issues or asset sales, or if the com-pany has a strategic equity partner. A non-producing juniordoes not have this option available.

Greenfield projects in the new financing world

BY MAURO CHIESA

F I N A N C E




ing assets to finance new assets. Examples of the latter includeTaseko’s sale of equity in Gibraltar to finance New Prosperity aswell as Sabina’s sale of Hackett River zinc/silver assets for cashto support the Back River development. Large mining compa-nies, including BHP, RTZ, Iamgold and Kinross, are also puttingassets up for sale. Another strategy recently adopted by majorsis to offer stream financiers a delivery assurance on the metalliability in the form of production from existing mines. Metalfinancings by Barrick and Teck in 2008, and then by HudBayand Inmet in 2012, suggest a new trend is developing, wherebymetal financing is no longer just for the juniors. Yet anotherstrategy, adopted by both Barrick in Africa and SouthGobi inAsia, is issuing shares in emerging stock markets. As such mar-kets have a better understanding of projects in their region,they offer higher proceeds and lower risk.

Strategic partner capital: A strategic partner can bring technical,financial and commercial values to the table. For instance,Quadra FNX and Sumitomo’s recent joint venture, whichreflects current industrial interest in securing exclusive supply,provides Quadra FNX with a secure source of financing. Butmuch planning is required by the lesser partner. The failure ratefor joint ventures is high, as fluctuating market conditions canoften create divergent interests for partners.

Export credit agencies (ECA) and international financing institutions(IFI): Countries, including Canada, support their goods and

Mauro Chiesa has over 33 years of experience in financing and advisingextractive and infrastructure projects around the world. He has worked withmultinational banks, the World Bank Group and EDC.

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services exports with financing via their respective ECAs, suchas Export Development Canada (EDC). These organizationsoffer fixed-rate, long-term financing that is both very competi-tive and often available for projects in countries where privatefinanciers fear to tread. Canada’s EDC is an exception; it hasbeen approved to also finance projects situated in Canada.

IFIs, such as the International Finance Corporation of theWorld Bank Group, focus on benefits to the recipient country’sdevelopment, offering competitive financing to projects that candemonstrate a positive economic impact. While both groupsrequire competitive procurement on the goods and services –meaning that receiving the funding will take more time – theyoffer terms with sizeable soft benefits, including deterrents topolitical interference and re-financing flexibility should circum-stances require. For instance Eximbank, the U.S.’s ECA,financed Baja Mining’s Boleo project with a 3.02-per-cent fixedinterest rate and a 14-year total term, which compare favourablywith current market rates and restructuring flexibility.

Supplier financing: Given the recession, many manufacturers andin-house financiers can offer supplier financing on their sup-plied goods and services. They can also co-finance with banks,ECAs or IFIs to provide a more complete financing package. CIM


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H R O U T L O O K

Is technological innovation the solution to the skills crunch?

BY RYAN MONTPELLIER

projects will get the green light, significantly driving upstaffing demand.

This will undoubtedly lead to increased labour costs, asthe race to secure talent continues. The skills shortage warning has started to lose its effect, as companies have beenhearing the same message for years. But the fact remains thatwe need to act now before we find ourselves facing an uptickin the market and no workers to sustain it. In fact, 2012 hasalready seen several large potential mining projects delayedor outright cancelled due to rising costs. But what can indus-try players do?

Labour shortages are not easily solved. From a purely eco-nomic point of view, whenever a resource becomes scarce,the cost of that resource increases and ultimately, throughcapital substitution, is replaced with another input. Aca-demic papers on this topic, published by MIT and otherinstitutions, show that the scarcity of an input factor encour-ages investment in innovation and the adoption of technol-

In 2012, Canadian mining companies continued to struggleto recruit and retain the right people to operate their mines.The skills shortage facing companies today is real and is

having a significant impact on majors, juniors, contractors andsuppliers. For the past two years, it has held the second spoton the risk agenda in Ernst & Young’s annual report, Businessrisks facing mining and metals. Despite these challenges, the last12 months were relatively easy for most recruiters. Commod-ity prices stagnated and in some cases receded significantly, soemployment growth in the sector was tepid. Thus, the major-ity of recruitment efforts in 2012 were focused on replace-ment, not on expansionary demand.

Historically, commodity price increases translated to devel-opment of new projects, and to ramped-up production atexisting operations. According to the Mining Association ofCanada (MAC), there are currently over $140 billion of newor expansion projects in the environmental assessment andpermitting phase. As the market improves, a number of these


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world, we have several examples of remote mining – minesthat operate certain types of equipment from a distance, andeven, in some cases, from the surface.

In my opinion, the industry will see increasingly largerinvestments in technology and innovation. According to Sta-tistics Canada, the minerals and metals industry is alreadyspending over $500 million per year in research and devel-opment (R&D), and seven of the top 100 R&D companies inCanada are mining companies. The investments are takingplace and impacts on the workforce are inevitable. We willcontinue to be more efficient, more productive and lessreliant on labour as the main production input. The industrywill still obviously need people, but the skill sets requiredwill be very different.

Although technology will play a big part in the long-termsolution, companies are still faced with pressing HR needs inthe short-to-medium term. There is clearly no silver bullet, butsome companies are faring better than others. CIM

ogy. Consequently, the labour scarcity we are currently facingin mining will likely lead to significant technologicaladvances and/or step-change innovation.

For 2013 and beyond, I fully expect to see this phenome-non take place. Already, at several mines in Australia, wherethe scarcity of labour is more acute than in Canada, we areseeing GPS-guided, driverless haul trucks. For example, theKomatsu Autonomous Haulage System is being deployed atRio Tinto’s West Angelas mine. In Canada and around the

Ryan Montpellier is the executive director of the Mining Industry HumanResources Council (MiHR) in Canada. Most recently, Ryan was awarded the2011 Canadian Institute of Mining Bedford Young Leadership Award, whichrecognized his achievements in addressing the industry’s human resources andlabour market challenges.

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Four ways to find and keep topemployeesConsultations with over 30 mining HR leaders help MiHR identify initiatives to attract and retain staff1. Diversify your workforce: develop key attraction, recruitment and

retention strategies for women, Aboriginals, and Canadian immi-grants.

2. Identify the highly qualified or high-potential employees and fasttrack or mentor their development.

3. Recognize the knowledge, skills and abilities of your workforcethrough formal credentialing programs like the Canadian MiningCertification program.

4. Introduce flexible work arrangements and customizable schedulesto suit the needs of your employees. A one-size-fits-all philosophydoes not work.


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We took a photograph to document the issue and sent it tothe corporate office as part of a project update. The dissemina-tion of the photo resulted in an uproar at the mine: the oper-ations manager and his team were furious, as they felt thephoto could damage their reputation with top management.The CI group realized the situation demanded proper internalstakeholder management; we had to communicate with theoperations team and explain that we were on their side andwanted to support their quest to obtain the necessaryresources to improve the truck cycle times.

To rectify the situation and make the project a success, wemet with operations management, apologized and presented a

plan to manage CI projects collaboratively. First, we identifiedthe decision-makers on the operations side. Then, instead ofpositioning the CI group as project managers, we asked thedecision-makers on the operations side to lead the project,while members of the CI group acted as facilitators. We madesure operations staff received proper CI training – in this caseSix Sigma, a leadership program focused on process improve-ment and waste management. We also scheduled regular proj-ect review meetings with the corporate office, making surepresentations were made by the operations team, not by the CIgroup. All field visits and inspections were led and executed byoperations, and there was recognition for staff achievementsvia newsletter notifications, project completion celebrationsand board director visits to the mine. We also built a processto both identify and develop future CI projects with ampleinput from the operations team.

After the first year, the operations team had implementedCI projects worth over US$4 million in savings and had startedan internal training program to certify their key leadersthrough the Six Sigma program. Through this painstakinglyachieved success, I learned that rolling out an effective CI pro-gram is all about empowering the people working in the day-to-day operation to lead their own process improvements. CIM

Bertrand de Windt is an international HR and business excellence consultantwith over 20 years of experience in the mining industry. He specializes inchange management and cultural transformation through leadershipengagement groups and organizational behavioural design. Bertrand has beeninstrumental in organizing the opening of the CIM Lima Branch.

Everyone wants to cut costs, but merely establishing poli-cies and processes to trim the fat won’t work. Initiativesto improve an operation’s productivity and efficiency and

to eliminate waste will only succeed when an operation’s staffbuys in and supports them.

In 2010, as regional director of business excellence for alarge mining firm, I learned this lesson well. I led a team ofcontinuous improvement (CI) specialists on several projectsat an open pit gold mine in the Andean Highlands of Peru.There, I discovered first-hand that change cannot happen ifthe staff on the ground are not behind it.

One project I worked on was a standard waste reductioninitiative. One hundred expensive andfuel-inefficient four-by-four trucks werebeing used to transport mine staff 80kilometres to and from the mine. Myteam identified that using buses to trans-port staff would save US$675,000 peryear and would reduce the safety risksassociated with so many vehicles circulat-ing on a dangerous mountain road sur-rounded by communities. We met with members of themine’s maintenance group and with operations managers toimplement policies and procedures for the proper use ofvehicles. But despite agreeing upon a clearly defined processand policy, nothing changed.

What was missed? When designing the processes andpolicies, we did not engage the staff at the mine who wouldbe using the new form of transportation. We did not realizethat the trucks had become status symbols. Additionally,staff were unwilling to comply with the change because wehad neither involved them in the decision-making processnor communicated the project’s benefits, such as keepingthem off dangerous roads. The CI group was perceived as abunch of intruders that had come to divest people of theirright to proper transportation, and the project was abandoned.

Another project I led fared much better, despite initialhiccups. The CI group’s task was to improve trucks’ cycletime during the first 300 metres of the haul. We started witha field visit to evaluate the situation. There was a long line oftrucks waiting to be loaded, because already loaded truckswere taking too long to leave the area. It was raining, andbecause the maintenance of the front of the pit was not suf-ficient for the weather conditions, trucks were getting stuckin the mud. We discovered that the operations team was notusing the right types of materials to waterproof the mine anddid not have access to equipment to improve this process.

Staff engagement key to process improvement

BY BERTRAND DE WINDT


columnsC O M M U N I C A T I O N S

“Change cannot happen if the staff on the groundd

are not behind it.”



Until recently, modifying earth-moving equipment wasaccepted as a cost of doing business for miners, saysTony Egan, Xstrata Coal’s business development andspecial projects manager.

“In Australia, we got pretty good at actually modifyingequipment locally with the dealers,” he says, although thisprocess often delayed the delivery of their multi-million-dollarequipment by up to eight weeks and increased costs. Eganwondered why the safety features he was waiting for were notavailable on all factory-made equipment to begin with, and hewas not alone.

Companies like his had been asking equipment designingdepartments for safety features that went beyond ISO stan-dards, but with splintered voices from industry, original equip-ment manufacturers (OEMs) could not justify the cost ofmaking changes.

This drove Egan to come up with a novel strategy. If manycompanies, backed by their combined purchasing power, couldcome together to speak with one voice to manufacturers’ mar-keting departments – the holders of the research and develop-ment purse strings – then OEMs would be compelled to listen.

That was the beginning of the Earth Moving EquipmentSafety Round Table (EMESRT), which has grown over the lastsix years into a global conglomerate of 15 of the world’s largestmining companies.

It would seem OEMs got themessage: Egan points out that“local assembly times and costshave been reduced significantly”– as much as 80 per cent – by theefforts of EMESRT.

ISO standards not up to snuffEquipment accidents make up

a large percentage of workplacefatalities. According to an Aus-tralian study published in theJournal of Safety Research, 36.7per cent of workplace fatalitiesbet ween 2000 and 2002 “defi-nitely or probably had design-related issues involved” withmachinery and equipment. Inmining, over 57 per cent of allfatalities were design-related, thestudy showed.

Jim Joy, risk managementservices manager with JKTechPty Ltd. and EMESRT facilitator,says OEMs historically designed

equipment to meet ISO safety codes. But while these stan-dards address baseline safety requirements, Joy believes thatthey do not identify the unique risks or the human factorsthat arise.

“What we are trying to do at EMESRT is say ‘you need to gobeyond standards,’” notes Joy.

EMESRT established eight different hazard categories –ranging from working at heights to dealing with rims and tires– called design philosophies. The round table developed atask-based risk assessment technique in each of the designphilosophies. Each task associated with operating or maintain-ing a piece of equipment – and each risk posed to a worker –is now evaluated. By determining how often a task is per-formed and the severity of the task’s unwanted consequences,EMESRT quantifies risks and identifies areas that pose signifi-cant danger to workers. Armed with this information, OEMscan work on solutions to eliminate or to reduce key high-riskareas when designing equipment.

For example, Egan says, Caterpillar recently redesignedequipment so that routine maintenance tasks like oil filterchanges are conducted from ground level, instead of havingthe work done at heights. “If you’re not up in the air, you can’tfall, can you?” he points out.

Before EMESRT, Egan recalls, manufacturers only got feed-back from customers when they experienced problems. “The

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Caterpillar added powered access systems to its large mining trucks, large wheel loaders and large tractors in recent yearsdue, in part, to its engagement in EMESRT.

The might of the round tableEMESRT provides one voice to accelerate safer equipment designs

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BarrickBHP Billiton

Centennial CoalCliffs

CollahuasiNewcrest Mining Limited

NewmontPeabody Energy

Rio TintoSasol

Suncor EnergySyncrude

ValeXstrata

“BIG SEVEN” OEMS:Atlas CopcoCaterpillar

HitachiJoy GlobalKomatsuLiebherrSandvik

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A draft of this new process was unveiled in February 2012,when EMESRT company representatives visited the plants ofthe “big seven” OEMs on three continents. Equipment manu-facturers were asked for feedback – something Edwards appre-ciates: “I think it shows a level of respect.”

Joy believes that moving forward with the process will beEMESRT’s biggest challenge in the new year. Manufacturerswill buy in if purchasers want them to, he reckons, but get-ting member companies to incorporate EMESRT’s proce-dures into their own internal procurement processes mightbe more difficult.“When you go to a global company with alot of commodities and to business units around the worldwith various cultures, it’s a different story,” he says, explain-ing how some companies use multi-year contracts with sup-pliers, while others “have mines buying whatever they wantto buy.”

Joy says EMESRT is expanding its regional exposure andwants to introduce more people to the organization. A work-shop that will be held during the 23rd World Mining Congressin Montreal next August is currently in the works.

But, Joy says, once EMESRT’s processes becomeentrenched in OEM design procedures, the group willbecome obsolete. He says this could even occur as soon as fiveyears from now. “A huge amount of progress has been made,but it’s a long journey.” CIM

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design weakness would never be discovered until somebodywas eventually injured in a major accident.”

But if designers receive proactive, consistent feedback fromexperienced equipment users, they can make changes early onin the design phase.

Addressing universal needsSome OEMs used to experience “paralysis by analysis,” says

David Edwards, safety solutions manager with Caterpillar’sglobal mining division, because they were trying to respondindividually to an infinite number of often contradicting sug-gestions. “When you have that much discrepancy in customerwants and opinions, it’s hard for a manufacturer to design tosatisfy what everyone wants,” he says.

However, when EMESRT provided its design philosophieshighlighting specific areas of concern, it gave much-neededconsistency to the voice of major mining customers.

“They do not specifically tell us what to design, nor do theytell us how to design it,” says Edwards. “All they want to do isgive us the information and then trust that we’ll go back andwe’ll make good design decisions. Having the input of a consis-tent voice from our customers really unleashed a lot of creativityand a lot of product feature development in the last six years.”

For instance, working at heights and vehicle access riskswere some of the first to be identified by EMESRT. Edwardsnotes the company added powered access systems to its largemining trucks, large wheel loaders and large tractors, andwider stairs to all its products in recent years, in part due toengagement with the round table.

“EMESRT’s input gave us the confidence that we were pro-viding the right solution, rather than worrying about whetherwe were responding to company A, B, C or D’s opinion,”Edwards recalls. And while he notes improvements to elimi-nate slip and fall injuries were planned before the round tablewas established, he says EMESRT’s involvement helped Cater-pillar roll out these changes faster.

“When you have a design philosophy that is essentiallysigned off on by 15 companies – the biggest customers in theworld – saying ‘we want this,’ it makes it easier for us to prior-itize our engineers’ time,” Edwards explains.

EMESRT evolvesThe round table is moving onto the next stage of its plan.

Companies will soon be asking OEMs for a “safe design infor-mation” document before purchasing equipment, incorporat-ing EMESRT into member companies’ formal procurementprocesses. Joy says this document will be similar in nature to amine’s risk register, which details controls put in place for cer-tain high-risk activities. This sheet will demonstrate whether anOEM has included EMESRT’s work into the equipment designprocess by explaining how they addressed high-risk tasks.

With this checklist from OEMs, companies will ultimatelydecide on the safest equipment with their cheque books, Egansays. He believes manufacturers will try to “leap-frog” eachother in addressing the problems highlighted by the roundtable members.


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Mechanical integrity risk-based inspection has beencentral to maintenance in the oil and gas industryfor years, “but it’s almost unheard of for the miningindustry,” says William Minter, client solutions

engineer for Pinnacle AIS. Pinnacle, a Houston, Texas-basedfirm, is hoping to change that; it specializes in asset integritymanagement, engineering consulting services and asset man-agement software. The Mosaic Company was one of the firstmining companies to seek out Pinnacle’s expertise.

Mosaic’s new risk-based inspection program, unlike thoserooted in regulatory compliance, is based on assessing risk forevery stationary and structural asset in the mine. “Today,inspections are not required for all assets, only regulated ones,so you find facilities that may have never inspected many assets– sometimes more than half of their assets in the field,” Mintersays. On the other hand, “risk-based inspections are performedfor all assets at a facility, so all are included,” he adds.

According to Minter, mining companies have lagged inadopting risk-based mechanical integrity programs for a num-ber of reasons. Traditionally, mines have been built with a lifeexpectancy of 30 or 40 years, which is relatively short. Butwith today’s advances in processes and technologies, and agrowing economy, mine life cycles are being extended indefi-nitely. In addition, the consequence of a common failure in themining industry is very different from one in the oil and gasindustry. Even one small malfunction can mean immediate,major problems in the energy sector. “Leak-type failures in arefinery can easily lead to a fire or even an explosion,” Minterexplains. “Catastrophic failures can cost lives and get the attention of both regulating bodies and the media. In the

mining industry, the most common failurestypically don’t get that attention becausethe failures aren’t catastrophic – if a pipe isleaking, it’s likely only leaking water.”

What has been overlooked in mining,says Minter, is that common failures cantrigger a ricochet effect, with one small fail-ure affecting other assets and leading tomore serious failures, which can result inlost production time if a shutdown forrepairs is needed. In some cases, a cata-strophic failure can result in injury of per-sonnel in the area.

Every risk measuredFailures of major assets in potash and

phosphates led Mosaic’s management tolook at a new system for safety inspections.However, they were not the only forces driv-ing the change, says Lorne Huyghebaert,

former manager of mechanical integrity at the Mosaic Potashbusiness unit. “Over the long term, it makes you a more cost-efficient company,” he says. “As well as being safer, when youinspect your assets in the right places at the right frequency, youhave less surprises to react to.”

With help from Pinnacle, Mosaic is in the process of com-puting a number value for every potential risk that exists:nothing is left in the margin. “There are a lot of failures that canhappen before the catastrophic ones,” says Minter. “So wewant to look at the most common and likely failures, like abeam buckling, which is an early indication that the roof mightcollapse eventually.”

The risk-based mechanical integrity system looks at boththe consequence and probability of failure. “The consequenceof an asset failure is specific for each individual asset,” saysMinter. “We consider consequence to health and safety, envi-ronment, public image and economic loss.” The probability offailure is based on a degradation study that identifies what willcause an asset to fail, and the likelihood of failure, he notes.“We not only know when to inspect an asset, we also knowhow and where to inspect that asset. The degradation studyalso tells us who should inspect that asset; for advancedinspections, we need to use a specific type of inspection per-sonnel.” Highest-risk assets get inspected first.

According to regulations, an ammonia storage tank wouldrequire a simple five-year external visual inspection and a 10-year internal inspection. “Aside from these regulated inspec-tions, a company may have no idea how to inspect, when theyshould inspect, where to focus inspections, and who should behired to perform the inspections,” says Minter. Now, at Mosaic,

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Mosaic’s mechanical integrity inspections go far beyond regulatory compliance.

From reactive to proactiveIntelligent approach to inspections finds its niche in mining

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each individual ammonia tank will have inspection schedulesthat fluctuate over time, adapting to changes in the field.

“Stress corrosion cracking is difficult to identify in routineinternal visual inspections, meaning that if an internal visualwas performed in the past, it may have easily overlooked thistype of damage,” says Minter. “For all intents and purposes, we

might assume that a company has never inspected for stresscorrosion cracking, further increasing the asset’s risk.”

Mosaic’s first step at the K1 and K2 potash mines in Ester-hazy – its pilot sites for the project – has been to assemble aninventory of all structural and stationary assets: a databasetotalling 1,417 entries for both mines, which required around18 months and 1,000 Mosaic man-hours to complete, in addi-tion to the Pinnacle resources. But with lessons learned, sub-sequent sites brought on board will take less time, saysHuyghebaert. It may appear prohibitively time-consuming tocreate an authoritative database of every asset’s risk level, butthe process becomes easier to maintain once in place and startsrelatively casually.

“We start by gathering all the documentation we can,” saysMinter. If there is missing information, Pinnacle makes an esti-mate, which is run by Mosaic staff. “In the future, if somebodydoes an analysis of the material to identify its composition,they can come back to the software and validate that assump-tion. Once that’s changed in the software, it will update the riskcalculation and inspection plan for that asset.” In other words,a system based on mechanical integrity risk improves in accu-racy the longer it is in place.

Over and above regulatory requirementsOver the next five years, with the help of Pinnacle, Mosaic

will be rolling out the mechanical integrity-based program toall of its five potash and nine phosphate mines and facilities.The mining company has created a new position – director ofmechanical integrity, filled by Kelvin Dereski – to head theprogram. The team he oversees, along with inspection contrac-tors, will complete the inspections of all structural and station-ary assets at each site over the course of two to three years.Mosaic’s team will be ready to take over the program on itsown, starting with the Esterhazy Potash and New Wales Phos-phates sites, in March 2013.

The process has already resulted in a few eye-openers forMosaic. “We were surprised when the risks assessed forsome of the potash assets were higher than for phosphate,which has a lot more chemicals and hazardous material,”recalls Huyghebaert. “If you recognize the risk, you inspectmore frequently.”

Mosaic’s program will take some time to evolve fully andwill include the development of design standards for repairing


existing assets, installing new assets, and re-designing existingones to current or new standards.

Once it has fully established the program, Mosaic hopesto be able to convince government regulators that risk-basedinspections are far more effective and proactive. “We’ll haveall the data to back it up,” points out Huyghebaert. It is an

ironic twist, giventhat until now, in -spec tions programshave been primarilyabout complying withgovernment regula-tions. When mechani-

cal integrity programs took root in the oil and gas industry,it was because of comprehensive inspection regulations andnot internal initiative.

Huyghebaert says it is hard to understand why miningcompanies failed to realize the superiority of the risk-basedmechanical integrity system before now. “What does the num-ber of times the earth revolves have to do with the degradationof an asset?” he asks. “You have to know what your degrada-tion rate is to have an effective system. Risk-based mechanicalintegrity inspection is just one of those things that makes somuch sense. Once you know about it, you wonder why wehaven’t always done it this way.” CIM

“Once you know about it, you wonderwhy we haven’t always done it this way.”



Cellphones contain a vast array of minerals – gold, sil-ver, platinum, copper – and over 50 other specialtymetals. As an ore body, trashed cellphones represent amuch higher per-weight value than raw materials from

a mine: a fact that has spawned a value chain that parallelsconventional mining. However, there is a lot of progress to bemade in the field, and the greatest barriers to increased pro-duction come from psychology, not from technology.

“It took me a while to see the value of buying and sellingold cellphones because I thought I was in the recycling busi-ness,” says Patrick Hebert Jr., director of electronic scrap col-lector CellCycle.ca. “But, really, it’s a form of mining – urbanmining. We’ve got these products that have high value and areno longer being used. And we just have to be more creativeabout sourcing.” The Canadian company provides discarded

electronic products in bulk to both regional and foreignsmelters.

Before starting his own business, Hebert was an e-waste stream analyzer at a now-defunct electronicsrecycling company. In 2009, a fire assay of phones ledhim to re-evaluate his employer’s approach to e-cycling.The test showed that ash from burning cellphones con-tained 235 grams of gold per tonne. “An entire com-puter had about 11 grams of gold per tonne,” Hebertsays. Suddenly, the company’s practice of grinding upbulky, lower grade products like TVs and computers forre-sale to a smelter seemed wasteful.

Yet when Hebert suggested targeting the cellphonestream, he encountered a flat “No.” The e-waste recyclerwas not interested in focusing its volume reductionservice on products that required a heat treatment – themost effective way to separate the highly comingledmetal and plastic in cellphones, Hebert says. Emissionswere too great of a concern. The company went underthat same year due to low profits.

Hebert believes that for e-recyclers to be truly suc-cessful, they need to change business models. “Mythinking is that e-recycling is more like mining thanrecycling,” he says.

The mining mindset: active collection of e-wasteWhile researching a safe way to dispose of seven

million bags of by-product that remained when therecycling company shuttered, Hebert visited facilitiesthat extract value from the waste products of the min-ing industry. Speaking with people who sell bricksmade from industrial mining sludge, he discoveredthere are many accustomed to hunting for worth inwaste. Hebert was inspired to take a cue from themining industry and target, rather than passively col-

lect, material streams. His company has a two-pronged approach to its manage-

ment of the cellphones: CellCycle.ca buys phones from indi-viduals and corporations, wipes the data and sells the phonesthrough eBay, its retail store, or international distributors.Phones that cannot be resold due to damage or entrencheddata bring in profit for the company through sales to EDIRefining, an Orillia, Ontario-based distributor that shreds,bulks and ships the cellphones to final destinations like theXstrata-Horne smelter in Rouyn-Noranda, Quebec, and theBoliden Rönnskär smelter in Skelleftehamn, Sweden.

“One way to look at it is rather than one location ordeposit that has a lot of value, we have 26 million [Canadiancellphone subscribers] who have things of value,” saysHebert. “But, more specifically, there are companies within

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Cellphones have a much higher per-weight value than mined ore bodies.

High-tech ore bodiesShift to mining electronics more mental than material

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that 26 million people, the large organizations that have sev-eral hundred or thousand employees, who also distributephones to their people. And those are our sources, those areour mines.”

Many consumers hesitate to part with their phonesbecause of privacy concerns, Hebert says. Convincing themthe exchange is safe and making the process easy is half thebattle. CellCycle.ca facilitates this choice by guaranteeingthat all phones that cannot be wiped clean are destroyed.The offer is especially appreciated by IT departments of cor-porations, which can now enjoy the disposal of hundreds ofunits without compromising company secrets.

According to Hebert, in Canada, cellphones are beingdiscarded at a rate of up to six tonnes per day, or threephones per second. His conservative estimate for the valueof that material is $15,000 per tonne.

In the U.S., there is an even larger market, and a greaterbusiness opportunity, provided the e-waste is not illegallyshipped overseas for cheaper processing. “There are no U.S.smelters which can reclaim the precious metals in the circuitboards, although there are refineries that can pre-processthem,” says Sarah Westervelt, e-Stewardship policy directorof the Seattle-based non-profit group Basel Action Network,which runs initiatives to monitor global trade of toxic waste.“But when companies export e-waste for further processing,they need to ensure they are not violating a UN Treaty calledthe Basel Convention, which restricts international trade inhazardous waste.” Westervelt says theillegal shipment of e-waste to China andIndia makes it hard for legitimate e-waste recyclers to do good business inNorth America.

Incentive needed to encourage tradeDespite the relatively few smelters that

process e-waste in North America,experts agree that the greatest barriers toincreased electronic recycling come fromcollection, not processing.

Even with the most advanced technol-ogy, notes Thomas Graedel, professor ofindustrial ecology at Yale, “If you onlycollect half the stuff in a way that you canrecycle it, you’re never going to do betterthan 50 per cent.”

Concerns about sensitive data on olddevices dissuade people and companiesfrom giving up their used cellphones.“There is a huge amount of value on thephone, and also there’s the fear that a newdevice will fail and the user will have togo back to the old one,” says Hebert. “It’sa psychological barrier.”

Just as miners looking to develop far-away ore bodies must rely on the con-struction of infrastructure, a legislative


framework could help realize the potential of urban mining. In2005, the European Parliament installed the Waste Electricaland Electronic Equipment (WEEE) directive, which set a 2016target of 13 kilograms per person per year for the collection oflisted products and prohibited their disposal in landfills. Cur-rently, Sweden recaptures 16 kilograms per person and 75 percent of all electronics it puts into the market, though the aver-age EU member state’s rate is 25 per cent, says RogerSundqvist, general manager of Boliden’s Rönnskär smelter.Regional government employees run free drop-off centres ineach Swedish city, he adds, and pre-treatment companies payfor freight to their facilities.

“The WEEE directive is working well in Scandinavia and innorthern Europe,” says Ann Lundholm, communications man-ager for the Boliden Rönnskär smelter. “Other countries inEurope still have a long way to go before recycling stations areorganized and supply chains to pre-treaters are set up. Whenthis is fully implemented, we will see much higher volumes ofe-scrap on the market. This opens up possibilities for smelters.”

Hebert thinks an approach to e-waste that more closely fol-lows how other commodities are treated is necessary. “Whenthe metal exchanges list different grades of circuit boards, Ithink then we will be taking it more seriously,” he says. “Thereshould be a financial attachment to what this material is worth.If you could trade frozen pork belly futures on the ChicagoMercantile Exchange, then you should certainly be able totrade circuit boards.” CIM



Few Canadians have scrutinized their country’s relation-ship with China as closely as Gordon Houlden, directorof the China Institute at the University of Alberta. Sincehe first joined the Canadian Foreign Service in 1976,

Houlden has kept a toehold in the land of the dragon. He haswitnessed, often from the inside, the drastic political and economicmutations the country has undergone over the last 35 years.

Houlden has been posted twice to Hong Kong and twice toBeijing, where he served as minister at the Canadian Embassyfrom 2001 to 2004. He then moved to Taipei, where he wasappointed executive director of the Canadian Trade Office from2004 to 2006. Before joining the China Institute in 2008, hewas the director general for East Asia in the Department of For-eign Affairs and International Trade.

CIM: Are China’s state-owned enterprise (SOE) acquisitions, suchas CNOOC buying Nexen, going to significantly affect the miningsector?Houlden: There have already been Chinese investments in themining sectors in B.C., in the Yukon and in the high Arctic; butwe are at an early stage. We are seeing a lot of SOEs “goingabroad,” to use their phrase, but there is a bigger wave of invest-ments that will break on our shores eventually, and that is pri-vate investments.

If you look at the percentage of the GDP that is generated bythe government, in the case of Canada it is 40 per cent, almost

identical to the U.S. In France it is 52 per cent. But in China, itis just over 20 per cent. The government strategy for 30 yearshas been to reform the SOEs and to allow a private market togrow – and grow it has. Of course certain sectors, particularlythe mining and the energy sectors, are still dominated by quasi-monopolies or monopolies highly concentrated in SOEs own-ership. But we may feel a loosening of some of these over time.

CIM: So what will it take to develop those prospects?Houlden: If Canada has a general policy of openness in terms ofinvestment – and I don’t mean not having any oversight – thatto me sustains the mining industry. I am not suggesting Chinahas to own everything in sight either. But if you are sitting therewith a mine, that mine is worth more because China is buyingits product. If you are in the developmental phase or in theexploration phase, your ore body is worth more because ofChina’s demand, or potential Chinese investments.

A lot of the smaller mining companies lack the capital tobegin to fully develop their properties. The fact that you’ve gota deep pocket in China as a bidder will mean that your prop-erty is worth more. Take China out of the equation, somehowisolate the economy the way it was 30 years ago, and proper-ties will be worth less. So there is a benefit there; a policywhich has Canada open to Chinese investments helps sustainthe value of those ore bodies and the stock values of the Cana-dian mining companies.

upfrontQ & A b y A n t o i n e D i o n - O r t e g a

How to say “upside potential” in MandarinGordon Houlden on undeveloped opportunity in the Middle Kingdom

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upfrontQ & A

CIM: Should we fear the SOEs as they acquire assets in strategicCanadian sectors such as energy? Houlden: In my view, many of the strategic risks are exaggerated,both in oil extraction and mineral extraction. Our big oil sandsprojects take two or three decades to fully exploit. Canada is asovereign country; we could turn off the tap any time wewanted without a challenge. And oil doesn’t even go to China,it’s sent down to the U.S.

I’m not saying that security shouldn’t be part of the calcula-tion. My concern would be that if you are trying to build amajor relationship with China in one dimension alone, justfrom a security perspective, or just from an investment perspec-tive, you are going to end up with a distorted position, a policythat doesn’t work well and that will probably lead you astray.Even the U.S. doesn’t look at China in those terms.

CIM: Just how important is China’s increasing demand for themining sector? Would many miners be able to survive if theChinese economy was less hungry?Houlden: You don’t have to sell a single pound of a commodityto China. It doesn’t really matter if you are selling to the U.S.,or to Japan or to Europe and your commodity is not evengoing to China. The amount of money you are receiving, thepricing that the miners have been able to harvest is signifi-cantly factored and significantly higher because of Chinesedemand. It is not a direct contract of service selling to China –China is present in that deal in some fashion.

CIM: Local mineral processing is a hotpolitical issue in many regions of Canada.In Quebec, unions would like to see thegovernment require foreign companies todo their steelmaking in-province. Do youthink this is reasonable?Houlden: I’m all in favour of processingraw materials in Canada where it can bedone in an economic fashion. Simplyrequiring processing, though, where it isnot economically feasible, is not going toachieve anything because you can’t force acorporation to buy your material. Iron oreis relatively widely found. China is a hugebuyer from Brazil, from Australia, fromIndonesia, and only to a small extent fromCanada.

In certain high-value cases, and ofcourse oil is a classic one, requiring pro-cessing would be a bit easier. Even inAlberta, though, we agonize over thisissue because in theory you can upgrade


and export as gasoline or kerosene, but it’s not always econom-ically viable. If you ask the Albertans, of course, we’d like tohave our processing. I understand why B.C. doesn’t want tosell logs, they want to sell timber. I totally understand thatQuebec wants processing. But you cannot ignore the econom-ics of the trade, because if you simply ignore that and try totwist the arms of mineral owners and exporters where there’sno economic viability, you’ll kill the industry. Certainly it’sworth exploring an equation with economic partners who arebuying our minerals, but if it’s not viable, it’s simply not goingto happen.

CIM: How is China going to change the global market in thecoming years? Houlden: This is not all good news, but if we assume the con-tinued melting of the Arctic ice pack, one of the countries thatwould benefit in a huge way would be China. You could cut theshipping time from Shanghai to Rotterdam by 66 per cent bysailing through the Arctic.

Which country has the widest potential appetite for miner-als from the High Arctic or the Northwest Territories orNunavut? Certainly that’s China, given its profile as a consumerand given its capital. A lot of mineral exploration in the Arcticprobably doesn’t make any economic sense now, but those cir-cumstances would change with an open Arctic Ocean. I am notsaying “bring on global warming,” but if this is going to hap-pen, there will be an effect on the Canadian mining sector andon the viability of mining in the High Arctic. CIM


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Quantitative Mineral Resource Assessments: An IntegratedApproach to Planning for Exploration Risk ReductionLearn about exploration risk analysis for strategic planning.Understand how to demonstrate how operational mineral depositmodels can reduce uncertainties; make estimates of the number ofundiscovered deposits; and integrate the information and examinethe economic possibilities.

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052-052_Journal peer reviews v6_Layout 1 2012-12-17 10:30 AM

http://www.mcgill.ca/conted/prodep/ore

A test of METTLE

Volatile prices, policy changes and an uncertain outlookfor the global economy will test the discipline and flexibility of both

miners and developers in the months ahead. Enduring the crucible

means they will have to rely on steady improvement, intelligent

innovation and well-aligned priorities. For our look at 2013, we

sidestep superstition and explore the forces animating the industry

and how they may be harnessed to push through the coming year.

Operations Perspectives Innovation

Assaying at Gran Colombia’s Maria Damaplant in Antioquia, ColombiaCourtesy of Gran Colombia

053-062 Feature_Outlook 2013 v4_Layout 1 2012-12-13 2:55 PM


Reducing operating costs and careful spending are the orders of the day, as themining industry braces for a rocky year. Whether for added protection from volatilecommodity markets or just smart business, many miners are looking inwards andtightening their belts. Barrick Gold initiated a company-wide portfolio review and iscommitted to reducing costs, which includes the potential sale of its share of AfricanBarrick Gold to China Gold. And Teck Resources announced in October that itwould not only defer more than $1.5 billion in capital spending but also attempt toreduce annual operating costs by $200 million.

Also in the fall, Vale CFO Luciano Siani said the Brazilian giant would reassess its“low value adding” operations and could halt or divest of mines not making money.“This is a different approach as, in the past, we privileged volumes over value; wedidn’t do this sort of detailed analysis to try to understand what specific assets arecontributing value for shareholders,” he said during an investors’ conference call.“But now we are committed to not operate those assets which are not value adding.”

Attacking costs from all angles“We’ve gone through a period of some pretty high commodity prices that have

probably allowed companies to slip by a little too easily at times, and we know thiscan’t last,” says Otto Schumacher, a mine cost consultant for 30 years and a directorwith InfoMine USA.

No magic formula exists to break down operation costs, as expenses vary for eachindividual mine. But generally one third to one half of costs are wrapped up in per-sonnel, Schumacher says. And while human resources often account for the largestportion of a mine’s expenses, that is a tough place to reduce costs, since workforceshave become leaner in the last 10 to 15 years. Moreover, a smart employee retentionstrategy is critical for reducing recruitment and initial training expenses once economicconditions are more favourable. Schumacher said equipment operation costs, includ-ing fuel, maintenance and supply parts for equipment, account for the next largest por-tion of expenses – around 25 per cent, plus the cost of operators. Schumacher arguesthat smart maintenance spending and deployment of personnel are critical toincreased productivity.

More and more, companies are examining this area, aiming to decrease equip-ment downtime and make operations run smoother. The Copper Mountain MiningCorporation took a maintenance-centred approach at its British Columbia mine thatwent into operation last year. Jim O’Rourke, the company’s CEO, explained that theoperation diverted money it used to spend on haul truck tires toward road mainte-nance, which has in turn led to a reduction in tire costs.

To reduce its energy bill, which O’Rourke put at $2 million per month, the com-pany partnered with BC Hydro and its Power Smart program. A full-time electrical

Operations

Addition by subtractionby Herb Mathisen

Four wind turbines at the Diavik mine in the Northwest Territories wentinto operation in September to reduce the mine’s reliance on diesel.

Courtesy of Diavik



engineer now works on-site, seeking out plant and processinefficiencies. O’Rourke says the mine will soon implementmodifications to its ball mill to reduce energy consumption.

This has been an ongoing focus for Taseko Mines Ltd. at itsGibraltar copper-molybdenum mine – first opened in 1971and acquired by the company in 1999 – in south-central B.C.

“Energy efficiency in the 1970s was not a major design con-sideration,” says Rob Rotzinger, Taseko’s general manager ofprojects. As part of an upgrading process, the companyreplaced its conventional tumbling ball mill in 2009 with astirred Metso Vertimill, which has reduced energy consump-tion by roughly four million kilowatt hours per year, decreas-ing the grinding circuit’s energy requirements by 35 per cent.

Taseko also receives funding from BC Hydro to employ anon-site energy manager who reviews plants and processes tofind efficiencies.

Quebec, Ontario, Manitoba and other provincial utilitiesoffer similar energy conservation partnerships for mines con-nected to their grids.

Data miningThe reams of data produced by today’s mining equipment

and plants are also a rich deposit of information, if handledwell. “It just seems,” says Schumacher, “that the more data youcollect, the more you analyze, the more research you do, youalways find ways of improving.”

For the majors with operations around the globe, soundmanagement of operations information becomes very critical,says Jose J. Suarez, managing director and lead for NorthAmerica mining with consultancy firm Accenture.

“A CEO of a mining company is under tremendous pressurefrom the market to have the right returns, and that CEO has tohave data to tell him which operating plants are the best produc-ers,” Suarez points out. “That’s not only the quality of the ore,but also which ones are the most low-cost producers, whichones are the high-cost producers able to effect changes, whichare the new mines, which are the new mines and operations thatshould be bought. All of this information is very critical, and[having] access to this data is going to be one of the items thatis going to be very important for mining companies to address.”

Into the windOf course some factors – commodity prices, a mine’s actual

mineral deposit characteristics, the local climate – cannot beinfluenced. But miners can convert challenges to their advan-tage, as Rio Tinto’s Diavik diamond mine did to help reduce itsreliance on diesel and its exposure to the risk of climate change.The mine, 300 kilometres northeast of Yellowknife, N.W.T.,had relied on diesel exclusively to power its operation and, in2006, a warmer winter resulted in a shorter ice road season.

“We, like the other mines in the North, found ourselves ina situation where we were unable to fully resupply,” says DougAshbury, Diavik communications advisor. This meant flying inseveral million litres of fuel at an added expense.

In response, the mine confirmed it had a viable windresource and went ahead with the construction of a 9.2-megawatt wind farm. The four 2.3-megawatt turbines first


On the recordby Anna Reitman


provided power to Diavik’s grid in September. The project cost $33 million and isexpected to reduce Diavik’s diesel use by approximately five million litres per yearand supply 10 per cent of its overall power.

“If we reduce our reliance on diesel, then ultimately we reduce our fuel costs,” saysAshbury, who notes that company officials expect the wind project to have paid for itselfin eight years based on the 10 per cent power supply calculation. The mine has alreadyseen the wind farm supply as much as 25 per cent of its power. The turbines will alsocut 100 ice road fuel loads and reduce the mine’s carbon footprint by six per cent.

Xstrata’s Raglan nickel mine in northern Quebec is currently studying the feasi-bility of constructing its own wind farm to reduce diesel consumption and supportits expanding operation.

Perspectives

John Gravelle is PwC’s miningindustry leader for Canada and

the Americas, based inToronto. He assists largemining companies with

business issues.

JOHN GRAVELLE

32%i ncrease of mining costs

between 2003 and 2010 source: Accenture

CIM: Alternative finance is a hot topic, especially as PwC’s report shows a43 per cent decline in market cap for the top 100 mining companies on theTSX Venture. But in accessing those dollars, is it who you know?

JG: Asian investment has received attention because the dollars are sobig, and those tend to be vertical integration plays. The Labrador Trough,for example, has seen acquisitions by Chinese companies like Wisco andIndian companies like Tata Steel. These arrangements require people whohave connections at senior levels and can access the right level of thoseorganizations. A number of people have gone over to China and spentmonths, failing to speak to the right level.

Most of the action has been in iron ore, but there is also anticipation forsome high-quality chrome deposits and other base metals. More low- profile have been Chinese and private interests in potash. Another verticalintegration play is rare earths; Toyota made a deal in Quebec, for example.

Steel and auto companies do not want to run mines, they want economicincentives. The formula tends to be a stake in the public company’sshares, a joint venture interest in the property and guaranteed off-take.

CIM: Is there positive news for juniors?

JG: 2013 should be more upbeat. For commodities, I think gold has alreadyturned the corner, but base metals still need good news coming out ofChina. China has dealt with inflation problems and the government transi-tion. It is important for a one-party system to show good economic resultsin the first year after a regime change, but the infrastructure spendingannounced in recent months is going to take time to translate intodemand for resources.

The wild card out there is Europe. If Europe can avoid a meltdown as faras banking solvency and sovereign defaults, then things are looking goodfor base metals over thenext quarter or two.

I have also seen opti-mistic signs in mergersand acquisitions inColombia and Mexico –takeovers like Calvista by AUX. CIM

Market capitalization of the Top 100 TSXV mining companies (in billions) source: PwC

$$2011 2012

20.6 11.7



Necessary reflection“In the mining industry, we are at the whim of the international market for metal

prices. The only thing we compete in is being a low-cost producer,” says CopperMountain’s O’Rourke. “You should always try to maximize your efficiencies, and Ithink that’s just part of what we do. It’s just good business.”

And, adds Suarez, competition is bound to get more intense. Keeping a close eyeon costs and how they match up against the rest of the field will make the difference.“Once you have that benchmark,” he says, “you go back to your operations andanalyse, ‘Am I there?’ If ‘yes’, great. What can you do to get a little bit better? But ifyou’re not there, then what do you have to do in the operations to get to that bench-mark for the market? When you do that, you are going to see a reception in the mar-ketplace that is going to be very, very positive.” CIM

CIM: What advantages does West Africa have?

MB: West Africa has in recent years emerged as one of the world’s majorgold fields, and with global gold production flat or in decline, and the formerleading producers such as South Africa in irreversible decline, the region isone of the few that is not only maintaining a robust production profile butalso offers a great potential for new world-class discoveries. With theindustry generally struggling to deliver growth elsewhere, Ghana, Mali,Senegal, Tanzania, the Ivory Coast and Burkina Faso hold the prospect ofrich pickings for the astute gold miner. The same is true of Central Africaand notably the Democratic Republic of Congo, which is highly prospectivefor gold but still relatively underexplored.

CIM: What are some of the greatest challenges?

MB: The greatest risk factor in investing in West Africa is common to allemerging countries: a lack of infrastructure and limited skills. Our philoso-phy of investing for the long term, supported by the successful partner-ships we have built with our host countries, has enabled us to address theinfrastructure issue, and we are pursuing ways of expanding thisapproach. At present, for example, we are in discussion with a number ofWest African governments and power utilities about the development ofa regional power grid. As far as political risk goes, this has diminished inrecent years, although Mali and the Ivory Coast are still dealing with theafter-effects of the earlier unrest there. This has not impacted, to any sig-nificant extent, on our operations there and we are confident that full sta-bility will be restored. In recent months, some West African governmentshave shown an appetite for a larger slice of the mining cake, but again webelieve that by demonstrating the development of a sustainably profitablegold mining industry – which will benefit all stakeholders, notably its hostcountry – we will persuade them to join us in a long-term commitment tothis goal.

CIM: What do you think the big stories will be?

MB: For gold, the real growth still sits with the Ivory Coast, Ghana, Mali,Senegal and Burkina Faso. For iron ore, it is Guinea and Liberia. Thesecountries have new governments taking a fresh look at how a fiscalregime and accountability measures are applied at the same time asthese jurisdictions undergo their own political evolution. I expect continuedimprovement in transparency. CIM

MARK BRISTOW

Mark Bristow has been RandgoldResources’ chief executive sinceits incorporation. The companywas founded on his explorationwork in West Africa and he is astrong voice for a sustainable mining industry. Randgold has

numerous operations and explo-ration programs across West and

Central Africa.


Anne Stevenson-Yang is the co-founder and research direc-tor of J Capital Research, whichprovides independent researchon China. She has over 20 years

of experience in the country.

ANNESTEVENSON-YANG

CIM: What do you think of the growth prospects for China?

ASY: Very weak if you look past the headline numbers like GDP to thesub-numbers, like manufacturing output, corporate profitability, commodity prices, and other metrics. The economy is tumbling hard.There has recently been an uptick in the industrial economy, particularlysteel, but I believe it was driven by expectations of political changerather than any underlying demand, and production and commodityprices will now sag again.

CIM: There have, however, been successful rounds of fiscal stimulus. Howeffective would future stimulus be for commodities?

ASY: I don’t think that there will be stimulus; I would expect more of a liq-uidity injection. The government and other economic actors appear tobelieve that new money is providing a negative return at this point.Instead of creating new investment, liquidity injections are keeping banks’doors open.

CIM: Through its state-owned enterprises, China is investing heavily over-seas while still controlling investment into China. How do you see thisplaying out?

ASY: There is cash in the economy and a policy of favouring energy andnatural-resources asset acquisitions. But China has a system in whichthere is capital deployed without much scrutiny and an incentive systemthat does not make a lot of sense. This is not a recipe for rational eco-nomic acquisitions. That doesn’t mean there aren’t any, but there areother motivations outside of economics. As for loosening policy for for-eign ownership within China, I would be very surprised. CIM



CIM: Going into next year, how will mining developers advance projects?

RM: One of the challenges is that 15 years ago, governments weredesperate for foreign investment and altered tax regimes to encour-age exploration. Then, one or two governments later, you don’t havethe same people there with the same commitment to develop-ment; they are more committed to populist political actions andneed a source of revenue.

In our case, to bridge a gap in our cash flow created by Argentina’spolitical moves with its central bank, we are doing a US$60-millionrights issue. This form of financing is not that common in NorthAmerica. We are offering our shareholders the right to acquire anadditional 10 per cent of their shareholding at a 50 per cent discountto market. I will be taking down my proportionate share and I ampersonally backstopping the entire financing.

CIM: What should they avoid or embrace?

RM: Bank on your costs going up. Whether it’s government, labour orsuppliers, there will be demands and margins will shrink. There havealso been a large number of companies looking to produce low-grade deposits, and I would suspect they want to work on a bettergrade to give a larger margin of comfort. Mining developers shouldsharpen their pencils, look at their costs and think about shareholders.

Basically, we have come out of a period very much like the late 80sand are going into a period much like the early 90s. There was a hugeproliferation of companies, lots of unfulfilled promises and operatingcosts jumped considerably. Consolidation will be the theme for thenext year. Investors will be drawn back by increasing share prices dueto M&A activity. Next year will deliver better price performance. CIM


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Rob McEwen is the executive chairman,director, president and CEO of McEwenMining, a mid-tier gold producer in the

Americas with projects in various stagesof operations and development in

Argentina, Mexico and Nevada.






The tech (r)evolutionby Eavan Moore

Innovation

This year, Rio Tinto put the first 10 of an anticipated 150Komatsu autonomous-ready haul trucks into service at its ironore operations in Western Australia. And at the latest Minexpoin Las Vegas, Caterpillar unveiled its own autonomous haultruck, another step toward a reality in which remote operationscentres seamlessly oversee unmanned operations, from rock torail. This ambitious vision aims to rebuild the modern minefrom scratch, wring greater value from ore bodies, and recastthe role of a miner.

For mines already in operation, advances in automationtechnology may not be remaking operations but they are refin-ing them, whether by removing people from high-risk, repeti-tive tasks or by introducing more control to material movementand other business-critical aspects of production.

Safety and predictabilityAaron Carter, principal consultant at Improvement

Resources Pty Ltd., predicts that the near-term adoption ofdiscrete automation will have a double focus: to remove peo-ple from risky and repetitive tasks like material sampling andconveyor roller replacements, and to control variability ofprocess outputs where greater control and certainty of theoutcome is business critical. “That’s where we’ll see automa-

tion continue to be developed and implemented in themine,” he says.

Consultants like Carter and Jonathan Peck, owner of PeckTech Consulting, work with mining clients to identify whichtechnologies help address their operational needs. Most clients,says Peck, are not looking at full-scale autonomy; instead, theyneed to make interactions between people and existing equip-ment more efficient. “Rather than remove the operator from thetask, how do we provide operator-assist capabilities, so that wecan provide better tools to more accurately identify the materialbeing excavated as well as ensuring the right material goes tothe correct destination?” asks Peck. “That, to me, is the trendright now for the majority of operations, more so than trying toachieve a fully autonomous mine.”

Resistance is futileBefore inundating their site with new technology, miners

often need to unlock the potential of the technology theyalready possess. Dispatch systems’ ability to automate informa-tion and aid decision-making increases every year, but, arguesMark Baker, owner of CheckMark Consulting: “Most of themine management systems in the world are expensive beancounters, with very few operations using the dispatching

In the mill control room of the Copper Mountain mineCourtesy of Copper Mountain Mining Corporation



systems’ algorithms to improve their efficiencies. They’re fight-ing the old train of thought where people think that they cando a better job than a computer.”

That reluctance to cede control to computers has informedequipment design, says Eric Hsieh, technology product man-ager at Joy Global. The adaptive controls on Joy Global’s new4800XPC shovel, for instance, use the responsiveness of an ACdrive to react quickly in potentially harmful situations. Whensensing an abrupt deceleration, the controls, in effect “begin topull inertia out of the system, regardless of what the control sys-tem or the operator is calling for,” says shovel project managerPat Singleton. But they act invisibly; in fact, operators tell JoyGlobal the shovel feels more responsive to their commands.

Generational turnover and the increasing acceptance ofeveryday automation in other sectors, like the automotiveindustry, have incited cultural change in the last few years andwill continue to do so. “When you look into the automotiveindustry and people getting more comfortable with the conceptof operator-assist functionalities, this is bringing it more to day-to-day understanding and acceptance,” says Daniel Robertson,business development manager at Siemens Industry.

And though automation usually connotes the elimination ofhuman jobs, there will be new skills needed to deal with amodern mine. Peck suggests that more mines will hire technol-ogy managers, for example, in order to more methodicallyselect and integrate the right technology into operations.

Starting safelyHsieh points out that while equipment operators might dis-

agree with mine managers about the role technology ought toplay, they can all agree that safety is paramount. Safety featureslike collision-avoidance systems will be next to come down JoyGlobal’s pipeline, as they are the least controversial to imple-ment due to their passive role in most operations.

Autonomous drilling has taken off, probably because of itsease of implementation. “It’s a relatively low-risk foray intoautomation for a mining company,” explains Curtis Stacy, gen-eral manager, mining systems at Flanders. “A drill is easy to cor-don off. And if something goes awry with the automation, thenyou can always put a person on that machine.”

As a third-party technology provider, Flanders sells both asemi-autonomous configuration, in which the operator initiatesthe drilling process by pressing a button, and a fullyautonomous package with a command centre able to monitormultiple drill rigs around the world. The person monitoringthem “can start them, stop them, call in for fuel, things likethat,” says Stacy. “But the drill rig itself performs its drillingfunctions autonomously.” In the last two years, Flanders hasseen demand for its autonomous package jump from 20 percent of installations to 80 per cent.

Piece-by-piece improvementThird party technology providers like Flanders will continue

to fill critical gaps left by the major manufacturers, says Peck.For example, he argues, “[OEMs] still need to enable improve-ments in the manner in which their machines interact withother pieces of equipment, from different suppliers.” The speed

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and precision with which trucks can be loaded has a directimpact on haul cycle times, so Peck believes that more auto-mated shovel-truck interactions will fulfill an as-yet unrealizedpotential in autonomous haulage systems. “Then you can max-imize cycle times and increase productivity,” he says, “at a pointin the mining process that is traditionally a bottleneck.”

Siemens, meanwhile, is working to fill the excavatorautomation gap by developing a one-touch digging mechanismto automate specific tasks, such as swinging over to a truck, andto prevent overloading of the bucket or haul truck. The chal-lenge lies in programming these manoeuvres to handle digginginto real earth, explains Robertson. “We’ve put our vision sys-tem on a full-scale machine,” he says, “but as far as the diggingthrough the bank, we’ve been proving that interrelation in amodel environment first.” The company plans to commercial-ize this operator-assist function in the next few years, and,according to Robertson, Siemens is “pushing very strongly tohave a bundled package available for 2014.”

Brian Mace, manager of Hitachi mining applications andproducts, believes these interim technologies are the foundationof true autonomy. Hitachi has plans to launch an autonomoushaulage system by 2016, built on the success of its AC drivecontrols in combination with technologies from Wenco.

And while surface mines have taken a recent lead on imple-menting automation, there are developments in semi-automa-


tion from major manufacturers in the underground realm.Caterpillar and Atlas Copco both sell LHDs that are operablefrom surface command centres. On the other hand, third partiesappear likely to continue building innovative navigation tools tosupport automating underground equipment. One of thosetools is the laser-based underground GPS localization device,which Peck predicts will see commercialization by 2014.

An information economyThese technologies all rely on a robust IT infrastructure.

Companies like Siemens and Flanders face the challenge ofcontrolling interactions between different manufacturers’equipment – a task made more difficult by uniquely encodedand proprietary details of original equipment manufacturerengineering. Robertson believes mining companies will need toplay a more active role if they are to overcome these barriers.“The mines themselves can insist that they have a fleet of differ-ent types of equipment,” he says, “and that they want it all tobe able to communicate together.”

Hsieh foresees slow but inevitable convergence on a singlestandard. “In the next four years, you’ll see new mines comeonline that have advanced planning with full automation inmind, in which case the information infrastructure will be acritical part of their planning,” he says. “I think we will neces-sarily have to converge. I’m an optimist.” CIM



En faire plus avec moinspar Herb Mathisen

Exploitation

Réduire les coûts d’exploitation et dépenser avec parcimonie :voilà le mot d’ordre, alors que le secteur se prépare à affronterune année tumultueuse. Que ce soit pour mieux se protéger desmarchés des produits de base volatils ou simplement par précau-tion, de nombreuses entreprises se remettent en question et seserrent la ceinture. Barrick Gold a entrepris un examen de sonportefeuille à l’échelle de l’entreprise et s’est engagée à réduire lescoûts, ce qui comprend l’offre de vente de ses parts dans BarrickGold (Afrique) à China Gold. Teck Resources a quant à elleannoncé en octobre non seulement qu’elle remettait à plus tarddes dépenses en capital de plus de 1,5 milliard de dollars, maisqu’elle tenterait également de réduire de 200 millions de dollarsses coûts d’exploitation annuels.

Également cet automne, le directeur financier du géantbrésilien Vale, Luciano Siani, a dit que la société allait réévaluerses activités « à faible valeur ajoutée » et pourrait suspendre lesactivités des mines qui ne rapportent pas ou s’en départir. « Ils’agit d’une approche différente; en effet, dans le passé, nousavons privilégié le volume par rapport à la valeur, nous ne fai-sions pas ce genre d’analyse détaillée pour tenter de compren-dre quels actifs en particulier apportaient une valeur pour nosactionnaires, a-t-il déclaré lors d’une conférence téléphoniqueavec les investisseurs. Mais maintenant, nous nous engageonsà ne pas exploiter les actifs qui n’apportent pas de valeurajoutée. »

S’attaquer aux coûts sous tous les angles« Nous avons traversé une période de flambée des prix des

produits de base, ce qui a probablement accordé un peu de

répit aux entreprises, mais nous savons que cela ne durerapas », dit Otto Schumacher, consultant spécialisé dans lescoûts dans le secteur minier depuis 30 ans et directeur d’In-foMine aux États-Unis.

Il n’existe pas de formule magique pour faire chuter lescoûts d’exploitation : en effet, les dépenses varient d’une mineà l’autre. Mais en général, entre un tiers et la moitié des coûtssont liés au personnel, dit Schumacher. Et tandis que lesressources humaines représentent souvent la part la plusimportante des dépenses d’une mine, il s’agit d’un domaineoù il s’avère difficile de réduire les coûts étant donné que lamain-d’œuvre s’est faite plus rare au cours des dix à quinzedernières années. De plus, une stratégie judicieuse de main-tien des effectifs est essentielle pour réduire les frais derecrutement et de formation initiale lorsque la conjoncturedeviendra plus favorable. Schumacher affirme que les coûtsd’exploitation de l’équipement, y compris le carburant, l’en-tretien et les pièces, représentent la deuxième plus grandepart des dépenses, à savoir environ 25 %, à laquelle s’ajoutentles coûts liés aux opérateurs. Schumacher souligne l’impor-tance d’une gestion des dépenses d’entretien et d’une réparti-tion du personnel judicieuses si l’on souhaite accroître laproductivité.

Les entreprises se penchent de plus en plus sur ce pointdans le but de diminuer le temps d’indisponibilité dumatériel et de faciliter l’exploitation. À sa mine en Colom-bie-Britannique qui est entrée en service l’année dernière,la Copper Mountain Mining Corporation a adopté uneapproche centrée sur l’entretien. Le PDG de l’entreprise,

À la mine Copper Mountain, la maintenance accruedes routes a permis de réduire les coûts de pneu.

Courtoisie de Copper Mountain Mining

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Jim O’Rourke, a expliqué que les fonds habituellementalloués à l’achat de pneus de camions-remorques avaientété utilisés à la place pour l’entretien des routes, ce qui apar la suite conduit à une réduction des coûts destinés àl’achat de pneus.

Pour réduire sa facture énergétique, évaluée à deux mil-lions de dollars par mois par O’Rourke, la société a établiun partenariat avec BC Hydro et son programme Éner Sage.Un ingénieur électricien travaille maintenant sur place àplein temps afin d’étudier les pertesd’efficacité dans les installations etles processus. O’Rourke dit que lamine va bientôt modifier sonbroyeur à boulets afin de réduire saconsommation d’énergie.

Pour Taseko Mines Limited, ils’agit d’un objectif permanent à samine de cuivre-molybdène Gibraltar,ouverte en 1971, dans le centre-sudde la Colombie-Britannique.

« Dans les années 1970, l’efficacité énergétique n’était pasvraiment au cœur de la conception », déclare Rob Rotzinger,directeur général des projets à Taseko. En 2009, dans le cadred’un processus de mise à niveau, l’entreprise a remplacé sonbroyeur à boulets traditionnel par un broyeur Vertimill deMetso qui a permis de réduire la consommation d’énergied’environ 4 millions de kilowattheures par an, diminuant lesbesoins en énergie du circuit de broyage de 35 %.

De plus, BC Hydro octroie des fonds à Taseko afin quecelle-ci emploie un gestionnaire d’énergie sur place dont lemandat est d’examiner les installations et les processus afind’en améliorer l’efficacité.

Les services publics provinciaux du Québec, de l’Ontario,du Manitoba et d’autres provinces offrent des partenariats sim-ilaires en matière de conservation de l’énergie aux mines reliéesà leurs réseaux.

Exploration de donnéesLorsqu’elles sont bien gérées, les quantités de données pro-

duites par les installations et le matériel miniers d’aujourd’huireprésentent un précieux gisement d’information. Commel’explique Schumacher, « on dirait que plus vous recueillez dedonnées, plus vous en analysez, plus vous faites de recherches,plus vous trouvez des moyens de vous améliorer ».

Pour les grandes sociétés ayant des installations partoutdans le monde, une gestion solide des données sur l’exploita-

tion est d’une importance capitale,affirme José J. Suarez, directeur généralet chef de l’exploitation minière enAmérique du Nord pour la sociétéd’experts-conseils Accenture.

« Le marché exerce une pressionconstante sur les PDG des sociétésminières afin que celles-ci dégagent debons rendements et les PDG doiventdisposer de données leur indiquant les

installations les plus productives, souligne Suarez. Il ne s’agitpas seulement de la qualité de minerai, il faut égalementdéterminer les producteurs dont les coûts de production sontles moins élevés et ceux présentant des coûts d’exploitationplus élevés qui sont susceptibles de remédier à la situation; ilfaut aussi déterminer lesquelles sont de nouvelles mines ettrouver de nouvelles mines ou activités qu’il serait bon d’ac-quérir. Toutes ces données sont essentielles et l’accès à celles-ci revêt une importance capitale pour les sociétés minières. »

Dans le ventNaturellement, il est impossible d’influer sur certains fac-

teurs tels que le prix des produits de base, les caractéristiquesréelles du gisement de minéraux d’une mine ou encore le cli-mat local. Cependant, les sociétés minières peuvent tournerces défis à leur avantage, comme dans le cas de la mine de dia-mants Diavik de Rio Tinto qui a réussi à réduire sa dépendance

32%L’augmentation des coûts

des opérations minières

entre 2003 et 2010source: Accenture

Les quatre éoliennes sont entrées en service en septembre à mine Diavik aux Territoires du Nord-Ouest afin de réduire leur consommation de diesel.

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au diesel et son exposition aux risques liés aux changementsclimatiques. La mine, située à 300 kilomètres au nord-est deYellowknife (Territoires du Nord-Ouest), avait tout misé sur lediesel pour alimenter ses installations. Or, en 2006, un hiverplus chaud a écourté la saison des routes de glace.

« Comme les autres mines dans le Nord, nous noussommes retrouvés dans l’incapacité de nous ravitailler », adéclaré Doug Ashbury, conseiller en communication deDiavik. Cela a obligé la mine à acheminer plusieurs millions delitres de carburant par avion, ce qui a représenté des dépensessupplémentaires.

Pour remédier à la situation, la mine a confirmé qu’elle dis-posait d’un potentiel éolien viable et s’est lancée dans la con-struction d’un parc éolien de 9,2 mégawatts. Les quatreturbines de 2,3 mégawatts ont commencé à fournir de l’élec-tricité au réseau de Diavik en septembre. Le projet a coûté33 millions de dollars et devrait permettre de réduire la con-sommation de diesel de Diavik d’environ cinq millions delitres par an et subvenir à 10 % de ses besoins généraux enénergie.

« En réduisant notre dépendance au diesel, en fin decompte, nous réduisons nos coûts de carburant », a déclaréAshbury, tout en soulignant que la société s’attendait à ce queles coûts du projet éolien soient amortis d’ici huit ans étantdonné les 10 % de besoins énergétiques couverts; il est déjàarrivé que le parc éolien comble 25 % des besoins en énergie.

Les turbines permettront également de couper 100 charge-ments de carburant par route de glace et de réduire de 6 %l’empreinte de carbone de la mine.

La mine de nickel Raglan de Xstrata dans le nord duQuébec étudie actuellement la possibilité de construire sonpropre parc éolien afin de réduire sa consommation de dieselet de contribuer à l’expansion de ses activités.

Réflexion nécessaire« Dans le secteur minier, nous sommes à la merci du

marché international des prix des métaux. Le seul aspect oùnous pouvons être concurrentiels, c’est de produire à faiblecoût, affirme O’Rourke de Copper Mountain. Il faut toujoursessayer d’être plus efficace, et je pense que c’est l’essence mêmede nos activités. Simplement, de bonnes pratiques d’affaires. »

Il poursuit en ajoutant que la concurrence va certainements’intensifier. C’est en surveillant de près les coûts et la façon dontces derniers s’agencent par rapport au reste du secteur que l’onpeut faire avancer les choses. « Vous devez prendre cet aspect encompte, analyser vos activités, puis déterminer où vous en êtes.Si vous y êtes, vous vous trouvez en excellente position. Deman-dez-vous ce que vous pouvez faire pour vous améliorer encoredavantage. Et si vous avez encore du chemin à parcourir,demandez-vous comment progresser pour atteindre ce point deréférence du marché. Vous verrez alors que le résultat d’une telleréflexion aura des retombées extrêmement positives. » ICM



Cette année, Rio Tinto a mis en service les dix premierscamions lourds de la flotte prévue de 150 camions de trans-port autonomes Komatsu, dans ses sites d’exploitation de min-erai de fer en Australie-Occidentale. À la dernière expositionMinexpo à Las Vegas, Caterpillar a dévoilé son propre camionde transport autonome, une autre étape vers des centres d’ex-ploitation dirigeant à distance les opérations sans équipage, duroc jusqu’aux rails. Cette vision ambitieuse, dont l’objectif estde repenser la mine moderne, permettrait de tirer une valeuraccrue du minerai et de repenser le rôle de la minière.

Pour les mines déjà exploitées, les avancées technologiquesdans l’automatisation ne permettront pas de transformerentièrement les opérations, mais elles pourront certainement lesraffiner, en éliminant la nécessité de faire appel à des personnespour les tâches répétitives à haut risque ou encore en mettanten place plus de mesures de contrôle dans les déplacements deminerai et dans d’autres aspects critiques de la production.

Sécurité et prévisibilitéAaron Carter, conseiller en chef chez Improvement

Resources Pty Ltd., prévoit qu’à court terme, l’adoption destechnologies d’automatisation se produira sur deux fronts :premièrement, l’élimination de la nécessité de faire appel à despersonnes pour les tâches risquées et répétitives commel’échantillonnage du minerai et le remplacement des rouleauxdu convoyeur, et deuxièmement, le contrôle de la variation dela production là où la certitude du résultat est critique à l’en-treprise. « C’est dans ces applications que nous verrons ledéveloppement et la mise en œuvre de l’automatisation dansles mines », explique Aaron Carter.

Les conseillers comme Aaron Carter et Jonathan Peck, pro-priétaire de Peck Tech Consulting, travaillent avec les entre-prises minières pour déterminer quelles technologies peuventrépondre à leurs besoins opérationnels. Selon Jonathan Peck, la plupart des clients ne recherchent pas des solutions

d’automatisation complètes, mais plutôt un moyen d’accroîtrel’efficacité des interactions entre les gens et l’équipement exis-tant. « Au lieu d’éliminer l’opérateur d’une tâche, se demandeJonathan Peck, comment pouvons-nous augmenter ses capac-ités à l’aide d’outils lui permettant de mieux identifier lesminéraux extraits et de s’assurer du bon acheminement desdifférents minéraux? C’est la tendance actuelle pour la majoritédes opérations, bien plus que la réalisation d’une mine entière-ment autonome. »

Toute résistance est futileAvant d’inonder leur site de nouvelles technologies, les

minières doivent souvent tirer le plein potentiel des technologiesdéjà en place. Selon Mark Baker, propriétaire de CheckMarkConsulting, la capacité des systèmes de répartition à automatiserle flux de données et à aider le processus de prise de décisionsaugmente d’année en année, mais « la plupart des systèmes degestion des mines dans le monde ne sont utilisés que commedes calculatrices dispendieuses, alors que très peu d’algorithmesdes systèmes sont utilisés pour améliorer l’efficacité des proces-sus d’exploitation. On travaille encore avec l’idée qu’une per-sonne peut faire un meilleur travail qu’un ordinateur ».

Cette aversion à l’idée de céder le contrôle aux ordinateursa inspiré le design de l’équipement, souligne Eric Hsieh, chefdes produits technologiques chez Joy Global. Par exemple, lescontrôles adaptatifs sur la nouvelle pelle d’extraction 4800XPCde Joy Global font appel à la vitesse de réaction d’un moteurc.a. pour réagir rapidement dans des situations de risquepotentiel. Quand ils détectent une décélération soudaine, lescontrôles « réduisent progressivement l’inertie du système,peu importe les commandes données par l’opérateur »,explique le directeur de projet de pelle, Pat Singleton. Ces con-trôles agissent de façon transparente. En fait, les opérateursdisent à Joy Global que la pelle d’extraction répond mieux àleurs commandes.

Innovation

La salle de commande du broyeur de la mine Copper Mountain.

L’évolution technologique révolutionnaire

par Eavan Moore

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Le changement de génération et l’acceptation accrue del’automatisation au quotidien dans d’autres secteurs, commedans l’industrie automobile, ont mené à un changement deculture au cours des dernières années et continueront de lefaire à l’avenir. « Quand on regarde l’industrie de l’automobileet la manière dont les gens sont de plus en plus à l’aise avec leconcept d’opérations assistées, on comprend que l’automatisa-tion est acceptée et qu’elle fait partie du quotidien », affirmeDaniel Robertson, directeur du développement des entrepriseschez Siemens Industry.

Et si l’automatisation est généralement synonyme d’élimi-nation de tâches humaines, les gens devront développer denouvelles aptitudes pour travailler dans un environnementminier moderne. Selon Jonathan Peck, les minesembaucheront plus de directeurs technologiques, par exem-ple, afin de sélectionner et d’intégrer plus méthodiquement lesbonnes technologies dans les processus opérationnels.

Partir du bon piedEric Hsieh souligne que, bien que les opérateurs

d’équipement puissent être en désaccord avec les directeurs demine en ce qui a trait au rôle de la technologie dans les mines,ils peuvent certainement s’entendre sur le fait que la sécuritéest d’importance primordiale. Les fonctionnalités de sécuritécomme les systèmes d’évitement de collision seront lesprochaines à être produites par Joy Global, puisque ce sont lessystèmes les moins difficiles à mettre en place en raison de leurrôle passif dans la plupart des opérations.

Le forage autonome a déjà commencé, probablement en rai-son de la facilité de mise en œuvre des systèmes. « C’est un pre-mier pas dans l’automatisation représentant relativement peu derisques pour une société minière, explique Curtis Stacy,directeur général des systèmes miniers chez Flanders. C’est faciled’automatiser la foreuse. Et si l’automatisation tourne mal, il esttoujours possible de mettre un opérateur sur la machine. »

À titre de fournisseur de technologies, Flanders vend desconfigurations semi-autonomes, dans lesquelles l’opérateur ini-tie le processus de forage en appuyant sur un bouton, de mêmeque des configurations entièrement autonomes, opérées à partird’un centre de commande d’où il est possible de surveillerplusieurs appareils de forage dans le monde. La personne effec-tuant la surveillance peut initier le forage, l’arrêter, demanderdu carburant, etc. « Toutefois, l’appareil de forage effectue sesfonctions de forage de façon autonome. » Au cours des deuxdernières années, Flanders a vu la demande pour ses configu-rations autonomes passer de 20 % des installations à 80 %.

Améliorations à la pièceLes fournisseurs de technologies comme Flanders contin-

ueront de combler des lacunes critiques laissées par les fabri-cants, explique Jonathan Peck. Par exemple, il affirme que « lesfabricants d’équipement d’origine doivent toujours ouvrir laporte aux améliorations dans la manière dont leurs machinesinteragissent avec les pièces d’équipement d’autres four-nisseurs ». La vitesse et la précision avec lesquelles les camionspeuvent être chargés ont une incidence directe sur la durée ducycle de transport, et Jonathan Peck estime que l’amélioration

des capacités d’interaction entre les pelles d’extraction et lescamions permettra de réaliser des gains d’efficacité dans lessystèmes de roulage autonomes. « Ensuite, il devient possiblede maximiser le cycle et d’augmenter la productivité, à unpoint qui représentait jusqu’à maintenant un goulet d’étrangle-ment dans le processus. »

Dans un même temps, Siemens s’efforce actuellement d’au-tomatiser l’excavatrice en concevant un mécanisme d’excava-tion pour automatiser certaines tâches, comme ledéplacement au-dessus d’un camion, de même que pouréviter les surcharges de la pelle ou du camion de transport. Ledéfi réside dans la programmation de ces manœuvres pourprendre en charge les opérations sur le terrain, expliqueDaniel Robertson. « Nous avons installé le système découlantde notre vision sur une machine, mais pour ce qui est de l’ex-traction du banc, nous effectuons d’abord des études dans unenvironnement modélisé. » L’entreprise prévoit commer-cialiser cette fonction d’assistance dans les prochaines annéeset, d’après Daniel Robertson, Siemens s’efforce d’offrir cettefonction pour 2014.

Brian Mace, directeur des applications et produits minierschez Hitachi, croit que ces technologies temporaires servirontde pierre d’assise vers la véritable autonomie. Grâce au succèsde son système de contrôle à moteur c.a., combiné à des tech-nologies de Wenco, Hitachi prévoit lancer un système detransport autonome d’ici 2016.

Et, bien que les mines de surface aient pris la tête dans lamise en place de mesures d’automatisation, les fabricantsmajeurs ont réalisé d’importants développements dans la semi-automatisation pour les mines souterraines. Caterpillar et AtlasCopco vendent toutes deux des chargeurs-transporteurs pou-vant être opérés à partir d’un centre de commande en surface.Toutefois, les fournisseurs tiers continueront probablement deconcevoir des outils de navigation novateurs appuyant l’au-tomatisation des équipements souterrains. L’un de ces outils estun appareil de localisation GPS au laser qui, selon les prédic-tions de Jonathan Peck, sera commercialisé d’ici 2014.

Une économie d’informationCes technologies nécessitent toute une infrastructure des TI

robuste. Des sociétés comme Siemens et Flanders font face à undéfi de taille : elles doivent contrôler les interactions entre deséquipements de divers fabricants, tâche compliquée par laprésence de détails exclusifs de l’ingénierie d’origine de cetéquipement. Daniel Robertson croit que les sociétés minièresdevront jouer un rôle plus actif dans le processus si elles souhait-ent contourner ces obstacles. « Les minières peuvent insister surle fait qu’elles possèdent une flotte d’équipement provenant dedifférents fabricants et qu’elles veulent que ces différentes piècesd’équipement puissent communiquer entre elles. »

Eric Hsieh entrevoit une lente et inévitable convergencevers un standard unique. « Au cours des quatre prochainesannées, nous verrons de nouvelles mines entrer en jeu avecune planification précise ayant pour objectif l’automatisationcomplète, explique-t-il. L’infrastructure informatique jouera unrôle critique dans cette planification. Je crois qu’il sera néces-saire de concilier les efforts. Je suis optimiste. » ICM



CIM communityI n t e r n a t i o n a l

As a region with many emerging mining jurisdictions,West Africa has much to offer Canada. Canadian businessesare connecting with West African industry partners, whilegovernments on both sides are working to promote a boomin development opportunities. CIM is at the forefront ofthis exchange.

The Institute has emerged as a leader in the region, facil-itating industry partnerships and becoming a vital linkbetween the Canadian and West African industries, andbetween national and regional governments. In October,the government of Canada sought out CIM’s expertise dur-ing a discussion with Prime Minister Stephen Harper andseveral other government representatives in Dakar, Senegal.

The discussion, attended by a select group of sevenCanadian business representatives, focused on both thebusiness climate in Senegal and Canadian business interestsin the country, as part of Ottawa’s efforts to bolster tradeand to develop industry partnerships in West Africa. Theprime minister was in Senegal to finalize an investmentagreement between the two countries and to discuss busi-ness relations as they move ahead.

En tant que région avec plusieurs juridictions minières émer-gentes, l’Afrique du l’Ouest a beaucoup à offrir au Canada. Les entre-prises canadiennes établissent des relations avec des partenairescommerciaux ouest-africains, tandis que les gouvernements de partet d’autre travaillent à promouvoir l’essor des occasions de développe-ment. L’ICM est aux premiers rangs de ces échanges.

L’Institut est devenu un leader dans la région en facilitant la créa-tion de partenariats et en jouant un rôle clé d’agent de liaison entreles industries canadienne et ouest-africaine, ainsi qu’entre les gouver-nements nationaux et régionaux. En octobre, le gouvernement cana-dien a sollicité l’expertise de l’ICM lors d’une discussion avec lepremier ministre Stephen Harper et plusieurs autres représentantsgouvernementaux à Dakar (Sénégal).

Cette discussion, à laquelle participaient sept représentants d’en-treprises canadiennes triés sur le volet, a porté sur le climat desaffaires et les intérêts des entreprises canadiennes au Sénégal, dans lecadre des efforts d’Ottawa visant à stimuler les échanges commer-ciaux et à mettre sur pied des partenariats avec l’industrie ouest-afri-caine. Le premier ministre s’est rendu au Sénégal pour finaliser unaccord d’investissement et discuter des relations commerciales entreles deux pays en vertu de cette entente.

L’ICM aux commandesL’ICM est aux avant-postes du développement

de l’industrie minière canadienne en Afrique de l’Ouest

By / Par Correy Baldwin

Pierre Boivin, partner at McCarthyTétrault and co-leader of the Africasubcommittee of CIM’s InternationalAdvisory Committee, meets PrimeMinister Stephen Harper.

Pierre Boivin, associé chez McCarthy-Tétrault et codirecteur du sous-comité

african du comité consultatifinternational de l’ICM, recontre lepremier ministre Stephen Harper.

In the driver’s seatCIM leads Canadian mining industry development in West Africa

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CIM community

“Harper is known to enjoy meeting with the privateindustry and, in this instance, his objective was to speakdirectly with some of the key players involved in Senegal,”says Pierre Boivin, a partner at McCarthy Tétrault, who rep-resented CIM at the meeting. Boivin is co-leader of theAfrica subcommittee of CIM’s International Advisory Com-mittee, along with Daniel Gagnon, general manager, mininggroup at Met-Chem Canada. “It was also fact-gathering tohelp him prepare for a meeting with the president of Sene-gal, where he would have the opportunity to voice the con-cerns, preoccupations and objectives of Canadian businessand industry,” added Boivin. The subcommittee has beenplanning CIM’s activities in the region since it was formedon May 5, 2012.

The mining sector was a major focus of the discussion,with three other mining sector representatives participating– Teranga Gold, Iamgold and the Oromin Joint VentureGroup. Boivin stressed CIM’s role in fostering businessdevelopment of the Canadian mining industry in Senegal.According to Boivin, CIM can be instrumental in stimulat-ing trade, employment and investment, as well as in devel-oping supply chains and training capacity, and inpromoting best practices.

CIM has previously collaborated with the Canadian gov-ernment in West Africa through trade missions and thedevelopment of corporate social responsibility models. Thiscollaboration will continue with future trade deals andinvestment programs.

CIM puts feet on the groundIn conjunction with the meeting, CIM announced the

opening of its first West African branch in Dakar, as wellas agreements in principle to open branches in Oua-gadougou, Burkina Faso; Conakry, Guinea; and Abidjan,Côte D’Ivoire. “The prime minister’s visit has, for us, crys-talized the importance of West Africa,” says Jean Vavrek,executive director of CIM.

CIM is also establishing its presence in West Africathrough partnerships with West African organizations,most significantly the Centre Africain d’Études Supérieuresen Gestion (CESAG), a university-level management schoolthat will act as secretariat of the new branch.

The Dakar branch will allow CIM to organize initiativesand programs on the ground. Programs run through thebranch will connect West African businesses with Cana-dian suppliers of goods and services. They will also buildsupply chains, develop technical and professional train-ing, bring industry professionals and practictionerstogether, and share Canadian expertise and best practices.

Initial programs will focus on upgrading training forSenegalese graduate geologists so that they can be recog-nized as professional geologists under Canadian stan-dards, and on improving technical programming atSenegalese technical schools.

« On sait que M. Harper aime bien rencontrer les joueurs de l’in-dustrie privée et, dans ce cas-ci, son objectif était de s’entretenirdirectement avec certains des principaux intervenants au Sénégal »,explique Pierre Boivin, associé chez McCarthy Tétrault et représentantde l’ICM lors de cet événement. M. Boivin est codirecteur du sous-comité africain du comité consultatif international de l’ICM, de mêmeque Daniel Gagnon, directeur général, Groupe minier chez Met-Chem Canada. Le sous-comité planifie les activités de l’ICM dans larégion depuis sa création, le 5 mai 2012. « Cette rencontre visait éga-lement à recueillir des faits pour l’aider à préparer sa rencontre avecle président du Sénégal, pendant laquelle il aurait la possibilité d’ex-primer les inquiétudes, les préoccupations et les objectifs des entre-prises et de l’industrie canadiennes », ajoute M. Boivin.

Le secteur minier a été au cœur de la discussion, à laquelle ont prispart trois autres représentants du secteur minier, soit Teranga Gold,Iamgold et Oromin Joint Venture Group. M. Boivin a souligné le rôlede l’ICM dans le développement de l’industrie minière canadienne auSénégal. Selon lui, l’ICM peut jouer un rôle déterminant dans l’essordu commerce, de l’emploi et de l’investissement, dans le développe-ment de chaînes d’approvisionnement et de capacités de formationet dans la promotion de pratiques exemplaires.

L’ICM a déjà collaboré avec le gouvernement canadien sur desprojets touchant l’Afrique de l’Ouest dans le cadre de missions com-merciales et de l’élaboration de modèles de responsabilité socialed’entreprise. Cette collaboration se poursuivra lors des prochainesopérations commerciales et dans le cadre de divers programmesd’investissement.

L’ICM prépare le terrainParallèlement à la rencontre, l’ICM a annoncé l’ouverture de sa

première section ouest-africaine à Dakar, ainsi que des accords deprincipe pour les sections qui doivent ouvrir leurs portes à Ouaga-dougou (Burkina Faso), à Conakry (Guinée) et à Abidjan (Côted’Ivoire). « Pour nous, cette visite du premier ministre a cristallisé l’im-portance de l’Afrique de l’Ouest », déclare Jean Vavrek, directeur exé-cutif de l’ICM.

L’ICM est également en train d’établir des activités en Afriquede l’Ouest au moyen de partenariats avec diverses organisationsouest-africaines, plus particulièrement avec le Centre africaind’Études Supérieures en Gestion (CESAG), une école universitairede gestion qui assurera les fonctions de secrétariat pour la nou-velle section.

Grâce à sa section de Dakar, l’ICM pourra organiser des initiativeset des programmes directement sur place. Les programmes menéspar l’entremise de cette section permettront de tisser des liens entreles entreprises ouest-africaines et les fournisseurs canadiens de bienset de services, de créer des chaînes d’approvisionnement, de déve-lopper des ressources en formation technique et professionnelle etde partager le savoir-faire et les meilleures pratiques du Canada.

Dans un premier temps, les programmes privilégieront la mise àniveau de la formation des géologues diplômés sénégalais, pourqu’ils puissent être reconnus comme géologues professionnels envertu des normes canadiennes, ainsi que l’amélioration des pro-grammes techniques des écoles techniques sénégalaises.



CIM community

CIM has also announced the funding of two researchprojects: to develop its understanding of and possibilitiesfor a regional supply chain for gold mining in West Africa,and to examine options to develop a Franco- AmericanInstitute of Mining. “We’re also looking to improve theawareness of investors about the potential in West Africa,because it’s really misunderstood,” says Vavrek.

Event sets gold standard for collaborationThe CIM Gold Symposium, organized with support from

the Canadian embassy at Dakar and CESAG, was held onNovember 3, 2012, in the Senegalese capital. The sympo-sium, themed “Doing Business in the Mining Sector in WestAfrica,” was the first of its kind in the region. It focused onlegal and commercial frameworks that Canadian miningcompanies and suppliers need in order to operate in WestAfrica.

A wide range of topics, from corporate social responsibil-ity to resource evaluation, was explored. One panel focusedon how to develop employment forecasting models to coor-dinate both the programs and capacity at educational insti-tutions with the needs of the mining industry. PanelistMaxime Detraux of PricewaterhouseCoopers discussed thesimilarities between infrastructure needs of West Africa andthe Canadian North, and brought up the possibility ofaddressing the needs in West Africa through a Plan Nord-style approach.

“The idea was to bring them processes that worked forus and to create business links with some of the key indus-try leaders in Senegal,” points out Vavrek. The symposium,he says, showcased Canadian expertise and generated busi-ness opportunities for Canada.

Now, with the event a success, the concept can be taken toother West African countries. “Canadian trade commissioners

L’ICM a également annoncé le financement de deux projets derecherche: pour mieux comprendre les enjeux et les possibilitésd’une chaine d’approvisionnement et pour examiner les options dedéveloppement d’in institut minier franco-africain. « Nous voulonsaussi sensibiliser davantage les investisseurs au potentiel de l’Afriquede l’Ouest car il existe beaucoup d’incompréhension à ce sujet »,explique M. Vavrek.

Un événement phare pour la collaborationLe symposium sur l’exploitation aurifère de l’ICM, organisé en

collaboration avec l’ambassade canadienne à Dakar et le CESAG, aeu lieu le 3 novembre 2012 dans la capitale sénégalaise. Sous lethème Faire des affaires dans le secteur des mines en Afriquede l’Ouest, cet événement constituait une première dans la région.Il mettait l’accent sur les cadres juridiques et commerciaux dont lessociétés minières et les fournisseurs canadiens ont besoin pourmener leurs activités en Afrique de l’Ouest.

Des sujets très variés ont également été abordés, allant de la res-ponsabilité sociale d’entreprise à l’évaluation des ressources. Unedes discussions entre experts portait sur la façon de créer desmodèles prévisionnels pour l’emploi afin d’aligner à la fois les pro-grammes et la capacité des établissements d’enseignement sur lesbesoins de l’industrie minière. L’expert Maxime Detraux de Pricewa-terhouseCoopers a parlé des similarités entre les besoins en infra-structures de l’Afrique de l’Ouest et ceux du Nord canadien, tout enévoquant la possibilité de satisfaire les besoins ouest-africains aumoyen d’une démarche inspirée du Plan Nord.

« L’idée consistait à présenter des processus qui ont fonctionnépour nous et d’établir des relations d’affaires avec certains des chefsde file de l’industrie au Sénégal », souligne M. Vavrek. Selon lui, lesymposium a servi de vitrine à l’expertise canadienne et a générédes occasions d’affaires pour le Canada.

Cette initiative s’étant avérée fort fructueuse, le concept peutdésormais être appliqué à d’autres pays ouest-africains. « Les délé-

Opening ceremony of the Gold Symposium held at the Centre Africain d’Études Supérieures en GestionLe symposium sur l’exploitation aurifière de l’ICM qui a eu lieu au Centre Africain d’Études Superieures en Gestion



CIM community

are really keen to see us bring similar types of symposiumsto the regions they are in,” says Vavrek.

“You’ve got to take that first step,” adds Boivin, whowas also a speaker at the symposium. “Then the ball getsrolling and you build momentum. Through such forums,business people, government officials, mining compa-nies, industry players and academics can join forces tofacilitate business development opportunities in theregion, such as the exchange of products and services.”

“We can start by bringing together communities ofexpertise in West Africa,” says Vavrek. “They have a lot thatthey could share between themselves, but they don’t yet haveas good mechanisms to do that as we do. Our network ofbranches, along with our concept of technical societies is ide-ally suited to bridging that gap, and helping them cometogether.” CIM

gués commerciaux canadiens tiennent vraiment à ce que nous orga-nisions d’autres symposiums semblables dans les régions où ils setrouvent », affirme M. Vavrek.

« Ce qu’il faut, c’est faire le premier pas », ajoute M. Boivin, égale-ment conférencier lors du symposium. « Ensuite, les choses progres-sent d’elles-mêmes et continuent sur leur lancée. Grâce à ces forums,les gens d’affaires, les représentants des gouvernements, les sociétésminières ainsi que les intervenants de l’industrie et les universitairespeuvent, tous ensemble, favoriser la création d’occasions d’affairesdans la région comme l’échange de produits et de services. »

« Nous pouvons commencer par rassembler les communautés d’ex-pertise en Afrique de l’Ouest », ajoute M. Vavrek. « Elles ont beaucoup deressources qu’elles pourraient partager entre elles, mais elles ne dispo-sent pas des mécanismes nécessaires à cette fin. Notre réseau de sec-tions ainsi que notre concept de sociétés techniques sont la solutionidéale pour combler cette lacune et les aider à unir leurs forces. » ICM

Just a few short weeks after the CIMLima, Peru Branch was opened, theinaugural event, Innovations in Mining2013 – Latin America, further estab-lished its role as a vital crossroads for themining community in the region.

Held November 29-30 at the JWMarriot Hotel, the two days of presenta-tions and networking events broughtinternational companies operating inPeru together around the common goalof defining affordable strategies toincrease efficiency and profitability,while mitigating risks. The eventattracted 50 delegates from across theAmericas, including representativesfrom Barrick Gold Peru, Golder Associ-ates, Hatch, SNC-Lavalin, Anatamina,Anglo American and other companiesactive in the region.

The results of the program helpeddefine the future objectives for thebranch, says event organizer and branchchair Bertrand De Windt, who leadsSteps Up Consulting. “We need to pro-mote cooperation and downplay compe-tition among mining companies in Peru,and the mining companies need to col-laborate more closely with surroundingcommunities to develop joint programs

Building a united frontInnovations in Mining 2013 – Latin America highlights importance of collaboration

By Dinah Zeldin

that will benefit lives and education ofresidents.”

Presentations focused on techniquesto mitigate risks of project failure or dis-ruption in operations. Nathan Stubina,vice-president inter national at CIM andmanager of the Barrick Technology Cen-tre, opened the discussion with a talkthat examined obstacles facing the indus-try today and factors that may affect oper-ations in the future. Other speakersidentified strategies that can be adopted,approaching the mining project from avariety of angles: Mark Kennedy, chieftechnology officer at Norwegian engi-

neering firm Proval Partners, spokeabout potential impacts of technicalrisks; Rafael Tupayachi, human resourcesmanager, Conteras del Halzago GoldFields, addressed trends in humanresources and proposed managementstrategies; Bertrand De Windt and AlMaiorino, president of Boston-basedpublic relations company Public Strategy,focused on approaches to corporate socialresponsibility and on innovative pro-grams for community engagement.

“It was an excellent program,” saysStubina. “Water issues, public percep-tions of mining and the training ofyoung engineers were recurringthemes. The format allowed for lots ofinteraction, which the audience reallyappreciated.”

The event closed with a cocktailreception that included traditional Peru-vian drinks, and a sampling of Peruviancuisine at the Larco Mar Centre. Thebranch’s next event, a lunch lecture, willbe held in February. In 2013, thebranch will also launch the CIM Leader-ship Development program in Peru,which will provide participants with anopportunity to visit operations acrossthe country. CIM

Nathan Stubuna opens the panel discussion.

068-091 CIM Community v20_Layout 1 2012-12-17 10:35 AM


CIM communityA w a r d W i n n e r

The simple desire to seethe world in his youthbrought Stephen Quin toCanada early in his career,allowed him to participate inthe discovery of severalworld-class deposits andhelped him become a well-respected mining executive.Recognized for his focus oncorporate social responsibility,Quin is the recipient of the2012 CIM Selwyn Blaylock Medal that recognizes dis tin - guished service to Cana dathrough exceptional achiev -ement in the fields of mining,metallurgy or geology.

After graduating from theRoyal School of Mines in London,British-born Quin started his career byworking in exploration in Canada butwas quickly drawn to the broad spec-trum of disciplines involved in projectmanagement. His first job as a projectmanager was in Wales in 1984. In 1986,Quin returned to Canada to work forMiramar Mining Corp., and over aperiod of 18 years, led notable projectssuch as the Hope Bay gold project inNunavut, which he helped take from3.4 million ounces to 10.8 millionounces of gold in resources over sixyears. Quin also collaborated withNorthern Orion Explorations, a Mira-mar affiliate, on a joint venture withBHP Billiton, which led to the discoveryof the giant Agua Rica copper-golddeposit in Argentina.

Quin’s geology background was ofgreat value in his executive roles when itcame to identifying projects with bigpotential. “You get a better sense of con-fidence that you’re making the rightdecisions,” he explains. “You can look atthe information yourself and make yourown judgments, instead of being totallyreliant on technical people.”

CSR done right Selwyn Blaylock Medal winner Stephen Quin takes community interests to heart

By Dan Plouffe

Perhaps his most challenging andsuccessful project was the developmentof the Minto mine, a copper-gold oper-ation in the Yukon. When Quin’s com-pany, Sherwood Copper, acquired thesite, it had been dormant for 30 years.Due to a cumbersome regulatoryprocess, no new mines had been per-mitted in the Yukon for 10 years andnone were in operation when Sherwoodgot involved.

Sherwood Copper was a success,going from acquisition to productionin just under two years. During thecontinued growth and expansion of theMinto mine, Sherwood joined the Cap-stone Mining Corp. banner. Additionaldiscoveries were made and operationswere expanded to what is now almosta 4,000-tonne-per-day operation, upfrom 1,560 tonnes when it began.

The mine was the first of its kind inCanada: it is located on wholly ownedFirst Nations land, so the project had tohave First Nations support to beallowed to continue. Ensuring it had apositive local impact was essential.

Fortunately, corporate so ci al respon-sibility was always a priority for Quin,

who says a successful min-ing project should act “like apebble in the water with theripples flowing outward,”meaning that economicbenefits from the projectshould be felt at the locallevel first and then spreadout into the communitiesbeyond.

Quin promoted the cre-ation of sustainable busi-nesses and trades in theregion by offering directemployment contracts, byhelping establish the YukonMine Training Associationto facilitate on-the-job train-ing for First Nations, by

providing scholarships and app ren -ticeship opportunities to locals, and bygiving First Nations companies priorityaccess to contracts, such as catering,trucking and drilling, while supportingcapacity development.

Quin volunteered with governmen-tal and industry organizations andhelped develop new laws to facilitateboth project financing and an im -proved mineral royalty structure in theYukon. He used his positions to pushfor an agreement that has helped spura renewal of mining in the region. Akey element in the deal, he notes, wasproviding the Yukon and First Nationsgovernments a greater share of federalrevenues if a mining project was suc-cessful, instead of being capped out ata very low rate. As a result, local gov-ernments see direct benefits from minedevelopment in their territory.

Still on the quest for new adven-tures and discoveries, Quin left Cap-stone in 2011 to take the helm aspresident and CEO of Midas GoldCorp., a Vancouver-based gold explo-ration company with a world-classgold asset in Idaho. CIM

Stephen Quin accepts award from Chuck Edwards, immediate past-president of CIM



CIM communityB r a n c h P r o f i l e

The winning team for the SE Coalminer’s STARS golf tournament, sponsored by CIMEdmonton, accepts a trophy from Tim Joseph, branch chair.

Who’s who?2012–13 CIM Edmonton Branch Executive

CHAIRTim Joseph

VICE-CHAIRCoralee Laubman

TREASURERLaura Joseph

MEMBERSHIP – INDUSTRYLaura Joseph

MEMBERSHIP – STUDENTSJennifer Dornstauder

MEMBER AT LARGE/DIRECTORGord Morris

PUBLIC RELATIONSRamtin Nouzari

AWARDSFenna Poelzer

Reaching outCIM Edmonton Branch builds local ties with students

By Krystyna Lagowski

The CIM Edmonton Branch started in 1912 as the North-ern Alberta Group of the Rocky Mountain Branch, a smallgroup of professionals that got together to exchange knowl-edge about their field. After decades of activity, the branchwas officially named the CIM Edmonton Branch on March 20,1981. Today, it is one of the most active groups within theCIM network and, with its broad membership base of profes-sionals and students, runs a variety of programs to both sup-port the industry and to engage local stakeholders in mining.

The branch’s biggest focus is young people. “Whetherthey’re already involved in the mining industry through theirdegree program, or just in high school deciding on a career,we want to talk with them,” explains Tim Joseph, branchchair, associate professor of mining engineering at the Uni-versity of Alberta and president of JPi Canada.

“Probably two thirds of our branch members are studentsin mining engineering, geology or processing engineering,”he adds. “The students are part of the organizing committee;they’re part of the way we choose our speakers and the activ-ities in our branch – they have a huge say.”

The student members also manage an outreach programto high schools and elementary schools, developed in 2011after branch members realized educational programs to pro-mote mining were reaching target audiences too late. Already,

the branch has 130 elementary and high schools signed upfor visits over the 2012-13 school year.

Branch meetings, which are held on the first Monday ofevery month at the University of Alberta’s Faculty Club, featurespeakers from various sides of the mining industry. “Of the 70to 100 people who turn out, there are 60 to 70 students,” saysexecutive board member Gord Morris, an account managerwith Wajax Equipment. “We want to encourage their atten-dance, so they don’t pay a nickel.”

The branch also offers various scholarships. It contributes$1,000 to the $3,000 Ian Muirhead Memorial Scholarship,also funded by the Alberta Chamber of Resources, in addi-tion to independently funding two $2,000 scholarships formining engineering students, and one $1,000 scholarship fora geology student at either the Northern Alberta Institute ofTechnology or Grant MacEwan University.

Joseph, who has been the chair or vice-chair of theEdmonton branch for about four years, has helped organizethree national CIM conventions in Edmonton, and is lookingforward to 2015, when the Mine Equipment and Mine Oper-ators Conference will be in town. “Last May, we had 13,500people from all over the world come to the CIM Conven-tion,” he points out. “It was the biggest yet for CIM.”

The branch also sponsors an annual golf tournament in sup-port of the Alberta Shock Trauma Air Rescue Society (STARS).“It’s a helicopter emergency rescue service for Alberta, Saskat -chewan and parts of British Columbia,” says Morris. “To date,we’ve raised over $100,000 for STARS – it’s a great cause.”

The wide range of initiatives organized by the Edmontonbranch is part of its commitment to give back to the Cana-dian mining industry. “I’ve been involved in the Canadianmining industry for many years,” says Joseph. “It’s been along, rewarding career, and I’m happy to put something backinto it.” CIM

2013 Edmonton CIM Branch Events13

January 7 • Student awards & student speaker night with incoming CIMpresident-elect Sean Waller

February 4 • Speaker: Dr. Philip Currie, Alberta’s researcher and dinosaurguru

• Spouse night upstairs in Harriot Winspear Room

March 4 or • Michel Jebrak, CIM Distinguished Lecturer, April 8 chair in mining entrepreneurship at UQAM-UQAT

• Innovation in Mining Exploration



CIM communityN e w s

Montreal was the firstCIM branch to contributeto the Canadian Miningand Metallurgical Founda-tion’s (CMMF) pooledfund, designated for CIMsocieties and brancheswishing to invest in pro-grams that support min-ing and metallurgicaleducation. On October 23,the branch transferred$100,000 to CMMF tocreate a sustainable schol-arship fund. The interestfrom the sum will gotowards two $1,750annual scholarships forsecond-year mining engi-neering and geology students in Quebec.

“It was our mission from the beginning to support peo-ple wanting to complete their studies in the mining indus-try,” says Ian Turner, Montreal branch treasurer. “This wasthe best way to create a scholarship fund that would besustainable and would support our mandate.”

The decision offers myriad benefits to the CIM MontrealBranch. Registered as a non-profit organization, CIM canneither accumulate funds nor issue tax receipts for dona-tions. However, CMMF, created by CIM members in 1972to support education and to promote the mining industry,is registered as a charitable organization, so it can both col-lect donations and issue tax receipts to donors. CMMF’spooled fund also offers a guaranteed rate of return, and allpaperwork associated with managing pooled funds, suchas T4As, will be handled by the foundation.

“It was a simple and efficient way to expand our schol-arship programs,” says Turner. “We are very impressedwith the way CMMF is handling the funds.” While CMMFtakes care of the money, scholarship winners are selectedby a committee with representatives from the CIM Mon-treal Branch.

CMMF will accept and manage funds contributed byany CIM branch or society, as long as the monies are com-patible with the foundation’s mission to promote theindustry and support education. Funds can be alotted forprograms like scholarships or for financial support for stu-dents to attend industry events.

Montréal est la première sec-tion de l’ICM à avoir offert desfonds en contribution au fondscommun de la Fondation cana-dienne des mines et de la métal-lurgie (FCMM) destiné auxsociétés et sections de l’ICM quidésirent investir dans des pro-grammes de soutien à la forma-tion dans le domaine des mines etde la métallurgie. Le 23 octobre, lasection de Montréal a transféré100 000 $ à la FCMM pour créerun fonds durable de boursesd’études. Les intérêts provenantde cette contribution produirontdeux bourses annuelles de 1 750 $destinées aux étudiants dedeuxième année des programmes

de génie minier et de géologie au Québec. « Depuis nos tout débuts, notre mission consiste à aider les

personnes qui désirent effectuer leurs études dans le secteur minier, »souligne Ian Turner, trésorier de la section. « C’était la meilleure façonde créer un fonds de bourses d’études à la fois durable et compatibleavec notre mandat. »

Cette décision offre plusieurs avantages à la section de Montréal.L’ICM, qui est enregistrée en tant qu’organisation sans but lucratif, nepeut ni accumuler des fonds ni émettre de reçus d’impôt enéchange de dons. La FCMM, créée par des membres de l’ICMen 1972 pour aider aux études et promouvoir l’industrie minière, estun organisme de charité enregistré qui peut récolter des dons etémettre des reçus d’impôt à ses donateurs. Le fonds commun de laFCMM offre aussi un taux de rendement garanti, et la fondation sechargera de préparer tous les formulaires nécessaires à la gestiondes fonds communs, comme le formulaire T4A.

« C’est une manière simple et efficace de diversifier nos pro-grammes de bourses, » précise M. Turner. « Nous sommes très impres-sionnés par la façon dont la FCMM gère les fonds. » Si la FCMMs’occupe de la gestion de l’argent, le comité de sélection des récipien-daires des bourses est composé de représentants de la section deMontréal de l’ICM.

La FCMM acceptera et gérera les fonds donnés par toute sectionou société de l’ICM, dans la mesure où ceux-ci sont utilisés dans le res-pect de la mission de promotion de l’industrie et d’aide aux études dela fondation. Les fonds peuvent être destinés à des programmescomme des bourses ou un soutien financier aux étudiants qui dési-rent participer à des événements de l’industrie.

From left/Gauche à droit : Martin Poirier, Mackenzie Watson, Ian Turner, Jean Vavrek,Serge Major, René Dufour and Hani Mitri

Bigger is better | Voir en grandCIM Montreal Branch joins CMMF funds pool

La section de Montréal de l’ICM rejoint le fonds commun de la FCMM

By / Par Dinah Zeldin



CIM community

“The use of the funds is up to the owners of themoney,” explains Glenn Clark, CMMF president. “Theprograms that are decided upon will be advertised alongwith other programs that are already in place. This extraexposure will be good for the programs and also for min-ing in general.”

Two of CIM’s technical societies, the Canadian MineralProcessors Society and the Metallurgy and Materials Soci-ety, have also contributed to CMMF’s fund.

“We would like to see the pooled fund spread acrossCanada,” says Turner. “We recommend to any branchesthat are able to contribute take part. This helps transformdepleting scholarship programs into sustainable scholarships.”

To find out more about the pooled fund, contact Serge Major,director of finance and administration, CIM, at [email protected].

CIM

« La manière dont les fonds seront utilisés est décidée par leur pro-priétaire, » explique Glenn Clark, président de la FCMM. « Les pro-grammes choisis seront promus avec ceux qui sont déjà en place.Cette visibilité supplémentaire sera bénéfique pour les programmescomme pour l’industrie minière en général. »

Deux des sociétés techniques de l’ICM, la société Canadian MineralProcessors et la société Metallurgy and Materials, ont déjà offert unecontribution au fonds de la FCMM.

« Nous espérons voir le fonds commun s’étendre à tout leCanada, » souligne M. Turner. « Nous recommandons à toutes les sec-tions de participer dans la mesure de leurs moyens. Cela aidera à assu-rer la durabilité des programmes de bourses qui s’épuiseraientautrement. »

Pour en savoir plus sur le fonds commun, vous pouvez écrire à SergeMajor, directeur des finances et de l’administration de l’ICM, àl’adresse [email protected].

ICM





CIM communityD i s t i n g u i s h e dL e c t u r e r

Nowadays industrial power costs aremore than double, so any strategy to controlpower and to shift production to lower-rateperiods can be extremely beneficial. Unfortu-nately, this is rarely taken into consideration ina new plant design.

CIM: How widely in place is effective use ofautomation in process controls at miningoperations? Thwaites: Seventy-five per cent of all industryassets are under process control, yet more than60 per cent of process control loops are under-performing because either they were not set upproperly or are not being properly maintained.

Control engineers go in and identify problemswith control loops. We see many examples of improperly set-upcontrol loops, which I talk about in my presentation. I use oneexample of a flotation level controller in which retuning – and useof the correct integral value – illustrates the benefit of tighter con-trol and bias elimination. A bias means the operator has to mem-orize that the target set point is not offset on this controller.

When this is done, we can move to more advanced control –where we push to the limits of the process, or minimize consum-ables, power, chemicals, steel, and so on – thus making the busi-ness parameters more profitable.

CIM: What do you think it will take for the industry to trulyembrace best practices in this area?Thwaites: The industry does very well in terms of sharing experi-ences. CIM’s events are a prime example and are incrediblyimportant. The research groups and universities are very muchon the sidelines, but they are important because they have tounderstand what industry requires. We need educated controlengineers. The suppliers of the control system and the operationsteam are also crucial.

Teamwork is essential – both at a plant and at an industrylevel. Within the plant, we need management to support theproject. For the industry, it’s going to take teamwork involvinguniversities, suppliers of the control systems and instrumenta-tion, as well as those out in the field. CIM

Philip Thwaites began his career as anengineer in mineral technology after grad-uating from Imperial College London’sRoyal School of Mines in 1980. He hassince worked at the Kidd Creek metallurgi-cal site and the Norwegian Nikkelverknickel refinery and is currently manager ofthe process control group at the XstrataProcess Support Centre, where he alsoleads a process engineer in training pro-gram for Xstrata Canada. In his presenta-tion, “Manual control, process automation– or operational performance excellence?What is the difference?” he focuses on theimportant role automated process con-trols play in improving efficiencies.

CIM: Why is automation in process controls such an importantissue for the industry?Thwaites: Every owner wants to be as efficient as possible so thatthey get the best bottom line, the highest grade or recoveries andthe maximum returns. In essence, this is what can be achievedthrough effective use of automation and process controls. If youdon’t have the highest minerals recovery possible, these are lossesevery day. If your final concentrates consume too much energy,these are energy losses; if you use too many chemicals, these arechemical losses that affect the bottom line.

CIM: Can you explain how automation and process controls canhelp improve efficiencies?Thwaites: As a controls engineer, I don’t see a pump as just apump. I see where it is operating on its operating curve as part ofthe whole system. Taking all of these things into considerationcan tell me if the pump is operating efficiently.

Through better process control we can tighten up tempera-tures, flows, pressures, chemical additions, power usage and soon. If processes are tight and automated, they are more efficientand easier to operate.

CIM: What is the return on investment?Thwaites: The cost is minimal, but the return on investment ismassive. At the former Kidd Creek metallurgical site, we tookadvantage of Ontario Hydro’s time-of-day and seasonal rates byprogramming them into the computer to automate the powercontrol for the whole metallurgical site. In five years, with no lossof production, we saved $17.6 million. We chose to control theentire site’s power load on a minute-by-minute basis and to shiftas much production as we could to cheaper, off-peak hours.

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

POUR DEMANDER UN CONFÉRENCIER, visitezwww.cim.org, téléphonez au (514) 939-2710,

ou envoyez un courriel à [email protected].

Time to take controlPhilip Thwaites sheds light on importance of automation in process control

By Alexandra Lopez-Pacheco


http://www.cim.org


http://www.cim.org



CIM communityC o m m i t t e eA c t i v i t y

As today’s mine operations are chal-lenged to become increasingly efficient,productive and responsible, the need tostandardize processes, technologies andtools grows. The CIM Mining Standardsand Guidelines Committee (MSGC)was formed last spring, with a mandateto help companies address this need.Since then, MSGC has rapidly gainedrecognition in the industry, and alreadyhas several projects underway and moreinitiatives in the works.

MSGC was divided into six workinggroups, each focused on developing ini-tiatives for a specific area. Among theprojects driven by these groups, twopromise results for early next year. TheSituation Awareness working group’sproject, Situation Awareness and Com-mon User Interface for Large Excavators,will result in a system prototype to beopenly shared with the industry. Also,efforts to standardize access to data fromonboard mobile mining equipment aremoving ahead with multi-stakeholdercollaboration facilitated by two MSGCworking groups: Onboard Technologyand Connectivity, and Onboard Data

Creating the mindset for operational excellenceMSGC helps develop global mining standards and best practices

By Heather Ednie

and Access. Currently, efforts are focusedon benchmarking successes in otherindustries, such as the fixed plant andpetroleum industries, and on determin-ing stakeholders’ data requirements, aswell as on what is already available inexisting onboard systems.

MSGC activities will continue togain momentum through 2013, asmore com panies join the committeeand projects move forward. The com-mittee will strengthen awareness aboutthe implementation and the use ofstandards and guidelines in miningthrough various avenues, includingimplementation of a social media strat-egy, independent workshops, contribu-tions to media and sessions at industryconferences like the SME Annual Meet-ing & Exhibit, the 2013 CIM Conven-tion and the 2013 World MiningCongress. The committee will also hosta joint MSGC-EMESRT conferencenext August. Finally, a Global MiningStandards Scoping Study that maps allstandards applicable to operationalmining will be launched in collabora-tion with the Canadian Standards

Association. The study aims to iden-tify gaps where standards or guide-lines development would benefit theindustry.

As a global organization bringingtogether all stakeholders for the miningcommunity, MSGC has three mainobjectives: to be a knowledge centre andinformation hub; to encourage andenable collaboration and communica-tions; and to facilitate and drive both theimplementation and the development ofstandards and guidelines for the globalmining industry. The committee’s effortsare supported by key partners, includingCIM, the Society for Mining, Metallurgyand Exploration (SME) and the Surface Mining Association for Research andTechnology (SMART). Also, participat-ing com panies contribute funding andparticipate in MSGC events, communi-cations and working groups. Corporateparticipation grew to over 40 miningcompanies, suppliers and consultants inearly November.

More information is available on the MSGCwebsite: www.globalminingstandards.org.

CIM

The Situation Awareness workinggroup is leading R&D efforts tostreamline data to appear on one,standardized screen in all shovel cabs.

MSGC working groups and activity highlights for 2013Asset Management: To develop proposed common definitions for use of information in mine opera-tions and maintenance.

Onboard Data and Access: To compile a Data Dictionary of onboard access points and a database ofexisting systems used onboard mobile equipment.

Onboard Technology and Connectivity: To collect case studies from other industries and informationon protocols, such as OPC and J1939, in order to identify how all stakeholders can access data fromonboard devices.

Situation Awareness: The Common User Interface (large excavators) project will be completed by theend of 2012. In 2013, steps for roll-out to industry will be outlined and further research activities willbe identified.

Underground Mining: To map data transfer across the generic mining workflow, identify opportunitiesto derive the most value and support onboard data access projects with underground environmentexperience.

Operational Safety and Risk Management: To continue work on leading indicator development as a means to support best practices and to benchmark corporate safety standards.


http://www.globalminingstandards.org

Leadership mondial : Oser le changementGlobal Leadership...the Courage to Change

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068-091 CIM Community v18_Layout 1 2012-12-13 2:53 PM Page 86

THE BUSINESS OF MINING HAPPENS AT CIML’INDUSTRIE MINIÈRE, C’EST L’AFFAIRE DE L’ICMWhen it comes to our program, we’re all business!

Our industry continues to face the challenges of managing tremendous growth against the backdrop of a shifting global political landscape and an unpredictable super-cycle. Companies are reorganizing corporate assets and seeking out new opportunities, while at the same time recalibrating to respond more nimbly to a dynamic M&A environment,

Our rigorous and comprehensive technical program will address “The Courage to Change” with topics such as Strong Leadership Skills, Change Management and Business Financing. Our plenary session,

to the paradigm shifts we face. In short, our 2013 program will be all business.

Your success is CIM’s business. Registration opens on December 15.

Pleins feux sur l’excellence en exploitation

L’industrie minière continue de devoir gérer une croissance remarquable

«Leadership mondial : Oser le changement» et portera sur des sujets tels

L’ICM se préoccupe de votre succès. La période d’inscription débute le 15 décembre.

068-091 CIM Community v18_Layout 1 2012-12-13 2:54 PM Page 87


CIM communityS c h o l a r s h i pW i n n e r s

Every year the Canadian Mining and Metallurgical Foun-dation (CMMF) awards an array of scholarships to the mostdedicated mining engineering and geology students inCanada. According to CMMF manager Deborah Smith-Sauvé, a student’s passion for the industry dictates whetherhe or she is selected for a scholarship.

“We are looking for students who will be really happy tobe in mining at the end of the day,” she says. “We are notlooking for top marks, so much as for people who are pas-sionate.” Smith-Sauvé points out that while applicants mustbe in good academic standing to qualify, winners are chosenlargely based on their personal essays and their letters of rec-ommendation. “These letters really show us if they are com-mitted to the industry,” she explains.

CIM Magazine tracked down three of this year’s scholar-ship winners to find out what makes them passionate aboutmining.

Nicholas Joyce – Universityof British Columbia (UBC)$2,000 Scotiabank and ScotiaCapital Markets Scholarship*

Nicholas Joyce has a solid un -der standing of economicsalong with three seasons offield experience in resourceexploration, but he is stillseeking the link betweenexploration milestones andstock market success.

“I have spent severalyears trading mining stock on North American exchanges

in an effort to gain an appreciation of market forces as theypertain to stock price valuation in the industry,” he says. “I’mrealizing that good news in the field doesn’t mean that thestock is going up.”

Joyce started university with a math honours and physicsdegree in mind, but the grandson of two geologists changedcourse and is poised to graduate from UBC with a B.Sc. ingeology and a minor in economics.

In 2010, four weeks of persistent door-knocking landedthe UBC student an interview with Bill Wengzynowski, for-mer president of Archer, Cathro and Associates Ltd., and asummer job as a labourer in the Yukon.

“In the evenings, Wengzynowski would mentor me as ageologist,” Joyce recalls. Subsequent summer jobs with the

What makes students tick?CMMF scholarship winners reveal what fuels their passion for mining

By Lynn Elizabeth Moore

firm saw Joyce leading a diamond drilling program andworking as a prospector.

Joyce is considering going to work as a mining sector ana-lyst before beginning a master’s degree in geology.

*The Scotiabank and Scotia Capital Markets Scholarship wasestablished in 1998 on the 100th anniversary of CIM. Each year,a $2,000 scholarship is available to a geology student in Canada.

Lindsey Taylor – Queen’sUniversity$2,000 Caterpillar and itsCanadian DealersScholarship*

Lindsey Taylor arrived atQueen’s University inKingston, Ontario, intenton becoming an engineer,but unsure about how tocombine her passion forthe environment with her

interest in engineering.A first-year geology course got her thinking about mining

and, later, a visit to the mining faculty’s open-house event sealedher fate.

“They were so open and welcoming,” Taylor recalls. “Theyalso talked about how global the industry was and about theopportunities for travel.”

Now in her final year of mining engineering at Queen’s,Taylor is intent on helping society “get the resources it needsin the most economical way, while engaging with communitiesand minimizing the ecological footprint of the operation.”

During recent summers, the Toronto native has worked atPotashCorp.’s Rocanville underground potash mine in Sas -kat chewan and visited Inmet Mining Corp.’s developmentproject in Panama while working for the company’s Toronto-based design team. A class field trip in the fourth year of herengineering program took her to several mines in Chile,including Codelco’s El Teniente underground copper mine.

Taylor intends to focus her career on mine reclamationand safety.

*The Caterpillar and its Canadian Dealers Scholarship wasestablished in 1998 on the 100th anniversary of CIM. Each year,a $2,000 scholarship is available to a mining engineering studentin Canada.


FOR MORE INFORMATION ABOUT THE SCHOLARSHIPS CMMF OFFERS VISIT WWW.CMMF72.ORG


CIM community

Sidney Mamakwa – Cambrian College$1,000 Taking Flight Scholarship*

According to SidneyMamakwa, the doorway tohis dream career opened in2009 while he was workingat Goldcorp’s Musselwhitemine in northwestern On -tario, near his First Nationcommunity of WunnumminLake.

Mamakwa’s interest inmining deepened as helearned of the many tal-ents and skills required in

the industry during his yearas a civil technician in the mine’s project office. Engineersand geologists told Mamakwa about their professions andencouraged him to pursue a career in mining.

He enrolled in the mining engineering technician programat Cambrian College in Sudbury where, upon his graduationin May 2012, he was awarded the Governor General’s Aca-demic Medal. He graduated with a 95 per cent average andwas “a model student who regularly helped others with theircourses,” according to the citation that accompanied themedal.

Mamakwa, 32, who has twice attended the annualProspectors and Developers Association of Canada confer-ence, is closely following the Oyu Tolgoi copper project inMongolia. He wants to focus his career on new mine con-struction projects and on the Aboriginal consultationprocess. He has returned to Cambrian for an engineeringtechnology program diploma and is considering enrolling ina university mining program.

*The Taking Flight Scholarship was established in 2009 to encour-age Aboriginal students interested in a career in mining. Up tofour $1,000 scholarships are available each year.

CIM


45th ANNUAL CANADIAN MINERAL PROCESSORS OPERATORS’ CONFERENCE

45e CONGRÈS ANNUEL DES MINÉRALLURGISTES DU CANADA(CMP 2013)

January 22-24, Ottawa, ONwww.cmpsoc.ca

CIM CONVENTION CONGRÈS DE L’ICM

(TO13)May 5-8, Toronto, ON

www.cim.org/toronto2013

23rd WORLD MINING CONGRESS & EXPO(WMC 2013)

August 11-15, Montreal, QCwww.wmc-expo2013.org

30th INTERNATIONAL SYMPOSIUM ON AUTOMATION AND ROBOTICS IN CONSTRUCTION AND MINING

(ISARC 2013)August 11-15, Montreal, QC

www.isarc2013.org

MAINTENANCE ENGINEERING, MINE OPERATOR’S CONFERENCE 2013

(MEMO 2013)September 29-October 2, Kamloops, BC

www.memo2013.cim.org

3rd ANNUAL SYMPOISUM ON SAFETY AND RELIABILITY IN THE MINING AND RESOURCES INDUSTRIES

October 20-22, 2013Hilton Toronto, Toronto, Ontario, Canada

www.cim.org

52nd ANNUAL CONFERENCE OF METALLURGISTS LE 52e CONGRÈS ANNUEL DES MÉTALLURGISTES

(COM 2013)October 27-31, Montreal, QC

www.metsoc.org

CONFERENCES/CONGRÈS

THE COMMUNITY FOR LEADING INDUSTRY EXPERTISELA COMMUNAUTÉ POUR UNE EXPERTISE DE PREMIER PLAN

CIM CALENDAR OF EVENTS 2013

CALENDRIER DES ÉVÉNMENTS DE L’ICM 2013

www.cim.org84 | CIM Magazine | Vol. 7, No. 8


http://www.cmpsoc.ca

http://www.cim.org/toronto2013

http://www.wmc-expo2013.org

http://www.isarc2013.org

http://www.memo2013.cim.org

http://www.cim.org

http://www.metsoc.org

http://www.cim.org

HARRICANACONTACT: MARCEL JOLICOEUR ([email protected])

16 JANVIER Mine Niobec20 FÉVRIER Société d’exploration diamantifère Stornoway15 MARS Vin et fromage, Hôtel Forestel24 AVRIL Projet Zeus, Exploration MatamecMAI Rencontre de la section locale, Val d’Or1 JUIN Tournoi de golf annuel, Club de golf Belvédère

MONTRÉALCONTACT: MARTIN POIRIER ([email protected])

29 AOÛT Tournoi de golf annuel, MontréalSOUPER CONFÉRENCE, MCGILL FACULTY CLUB, MONTREAL

Janvier, février, mars, avril, septembre, octobre, novembre

QUÉBECCONTACT: LOUIS MARCOUX ([email protected] )

26 JANVIER Conférence de Steve Thivierge de Niobec,Université Laval

25 FÉVRIER Conférence, sujet à déterminée, Université Laval25 MARS Assemblée générale annuelle et soirée étudiante,

lieu à déterminer6 SEPTEMBRE Tournoi de golf annuel, Club de Golf du Lac

St-Joseph

QUEBEC NORD-ESTCONTACT : PATRICE TREMBLAY ([email protected])

19 DÉCEMBRE Remise de bourses étudiantes de l’ICM etdégustation bière et saucisse, Centre des congrès,Sept-Îles

PRÉSENTATIONS TECHNIQUES, CENTRE DES CONGRÈS, SEPT-ÎLES

21 janvier, 18 février, 18 mars, 22 avril, 20 mai

ROUYN-NORANDACONTACT : CLAUDE GAGNIER ([email protected])

16 JANVIER Éminent conférencier de l’ICM : Cheryl Allen, UQATHIVER Formation avec Dr. M. Bardoux, lieu à confirmer22 FÉVRIER Éminent conférencier de l’ICM: Wayne Goodfellow,

UQATHIVER/PRINTEMPS Formation avec Dr. M. Doggett, lieu à confirmer20 MARS Conférence de Martin Bergeron, Aurizon, UQAT23 AVRIL Conférence de L.N. Djon, North American

Palladium, UQATAVRIL/MAI Activités de la semaine minière 2013, lieu à

confirmer24-25 AVRIL Formation avec Dr. Éric Marcoux, lieu à confirmer30 AVRIL Conférence de G. Roy de Xstrata Zinc et N.

Champigny de Donner Metal, UQATMAI Conférence de Dr. Thomas Monecke, UQATSEPTEMBRE Conférence de Dr. Howard Poulsen, UQAT17 SEPTEMBRE Conférence de Dr. Tikou Belem, lieu à confirmerAUTOMNE Conférence de Dr. L. Corriveau, de la Commission

Géologique du Canada, UQATNOVEMBRE Conférence de P. Turcotte, UQATAUTOMNE Souper d’huîtes annuel, lieu à confirmer

DISTRICT NOVA SCOTIA, NEW BRUNSWICK, PEI, NEWFOUNDLAND & LABRADOR

LABRADORCONTACT: MARK BLAKE ([email protected])

Events still in planning stage

NEW BRUNSWICKCONTACT: SEAN MCCLENAGHAN ([email protected])

FEBRUARY 8 CIM student-industry meet and greet, University of New Brunswick, Fredericton

MARCH 15-16 Potash Cup – Curling bonspiel, SussexSEPTEMBER 19-21 38th Branch Annual Convention, BathurstNOVEMBER 4 2013 AGM and Distinguished Lecturer presentation,

Delta Hotel, FrederictonNOVEMBER 5 CIM student-industry meet and greet and

Distinguished Lecturer presentation, University of New Brunswick, Fredericton

THE MINING SOCIETY OF NOVA SCOTIACONTACT: FLORENCE SIGUT ([email protected])

JUNE 6-7 2013 AGM, Inverary Inn, Baddeck FALL General Meeting 2013, Halifax

NEW FOUNDLANDCONTACT: LEN MANDVILLE ([email protected])

FEBRUARY Distinguished Lecturer presentation and AlexanderMurray Geological Club winter lecture, MemorialUniversity

SPRING Geological Association of Canada lobster boilNOVEMBER Mineral Resources Review 2013, Delta St. John’s

Hotel & Conference Centre

DISTRICT QUEBEC

AMOSCONTACT: ROBERT CLOUTIER ([email protected])

29 JANVIER Conférence sur la gestion des eaux souterraines,UQAT

7 FÉVRIER Journée minière, Amos19 FÉVRIER Conférence de Knick exploration, Amos19 MARS Conférence de Patrick Sévigny de QMX, Amos6 AVRIL Sortie à la cabane à sucre, lieu à déterminerAVRIL Conférence, sujet à déterminer, Amos25 AVRIL Conférence de Pierre-Philippe Dupont de RNC et

visite industrielle11 JUIN Visite de Canada Lithium, AmosMAI Conférence de Patrick Godin de Stornoway, AmosÉTÉ Tournoi de golf de l’ICM, lieu à déterminer

CHAPAIS-CHIBOUGAMAUCONTACT: PATRICK HOULE ([email protected])

Activités en cours de planification

1

2














SAGUENAYCONTACT: STEVE THIVIERGE ([email protected])

JANVIER Éminent conférencier de l’ICM : à déterminer, UQACFÉVRIER 5 à 7 et l’Assemblée annuelle avec conférence

locale, UQACFÉVRIER Éminent conférencier de l’ICM : à déterminer, UQACAVRIL Forum régional de discussion “Bar des mines,”

ChicoutimiAVRIL Visite de la carrière Granite Moreau, Lac St-JeanAVRIL Vin et fromage ICM/CONSOREM, ChicoutimiAVRIL Party de crabes, ChicoutimiOCTOBRE Oktoberfest, ChicoutimiNOVEMBRE Party d’huîtres, Chicoutimi

THETFORD MINESCONTACT: NORMAN BOUTET ([email protected])

26 JANVIER Tournoi de curling et assemblée annuelle, ThetfordMines

DISTRICT ONTARIO (East of the 86th meridian)

COBALTCONTACT: TODD A. STEIS ([email protected])

JANUARY AND Seafood night, HaileyburySEPTEMBER

MONTHLY MEETINGS, HAILEYBURY

February, March, October, November

GREATER TORONTO AREA WESTCONTACT: CATHARINE SHAW ([email protected])

FEBRUARY 7 Membership drive cocktail reception, Otello’sBanquet & Conference Centre, Oakville

JUNE 13 CIM GTA West Golf Tournament, location TBDSEPTEMBER 4 Canada Southern Africa Chamber of Business/CIM

GTA West – Cheese and wine cocktail at Hatch,Oakville

LUNCHEON MEETINGS, OTELLO’S BANQUET & CONFERENCE CENTRE, OAKVILLE

March 20, April 24, May 29, October 23, November 27

HAMILTONCONTACT: SHANNON CLARK ([email protected])

Events still in planning stage.

NORTHERN GATEWAYCONTACT: TOM PALANGIO ([email protected])

FEBRUARY 21 Seafood mixer, Clarion PinewoodAPRIL 28-4 Mining Week, North BayJULY 29-AUGUST 2 Teachers mining tour, session 1, North BayAUGUST 19-23 Teachers mining tour, session 2, North Bay

3

SEPTEMBER 13 Annual golf tournament, Highview golf course

OTTAWACONTACT: JOHN UDD ([email protected])


PORCUPINECONTACT: SHANNON CAMPBELL ([email protected])

JANUARY 19 Curling bonspiel, TimminsMARCH Speakers night, TimminsAPRIL Spring break-up ball in conjunction with Porcupine

Prospector and Developers Association, TimminsJUNE Speakers night, TimminsAUGUST 17 Annual Porcupine CIM golf tournament, Hollinger

Golf CourseNOVEMBER Steak and lobster social, TimminsDECEMBER AGM and Christmas social, Timmins

SUDBURYCONTACT: CHRISTINE BERTOLI ([email protected])

FEBRUARY 9 Winterlude dinner & social, Caruso ClubAPRIL 18 CIM Distinguished Lecturer: Phil Thwaites, Dynamic

EarthJUNE 14 Annual lobster dinner, Caruso ClubAUGUST 17 Rudolph Kneer Memorial golf tournament, Lively

Golf & Country Club, LivelyOCTOBER 17 Student wing night, Dynamic EarthNOVEMBER 21 Social evening, Dynamic EarthGENERAL MEMBERSHIP MEETINGS, DYNAMIC EARTH

January 17, March 21, September 19

SUDBURY GEOLOGICAL DISCUSSION GROUPCONTACT: PHIL THURSTON ([email protected])

Event still in planning stage.

TORONTOCONTACT: TOM RANNELLI ([email protected])

JANUARY 17 Luncheon, National ClubFEBRUARY 7 AGM, Offices of the PDACFEBRUARY 21 Student-industry luncheon, Royal York HotelMARCH PDAC-CIM national joint luncheon, Convention

CentreAUGUST 28 Frank Greico Memorial golf tournamentSEPTEMBER 19 MES-CIM Toronto joint luncheon, National ClubOCTOBER 17 Taste of Toronto, networking event, National ClubDECEMBER 12 SNC-Lavalin Hamilton lectures series, National ClubTORONTO CIM BRANCH LUNCHEONS, NATIONAL CLUB

April 18, May 23, June 6, November 21















FEBRUARY 4 Conference of Dr. Philip Currie, Alberta’s researcher& dinosaur guru, Spousal night upstairs in HarriotWinspear room, University of Alberta Faculty Club

BRANCH MEETINGS, UNIVERSITY OF ALBERTA FACULTY CLUB

March 4, April 8

FORT MCMURRAYCONTACT: NAGENDER DASYAM ([email protected])

FEBRUARY 20 CIM Distinguished Lecturer: Phil Thwaites, BobLamb Center

MARCH Curling funspiel, MacDonald Island ParkJUNE 22 CIM golf tournament, Fort McMurray Golf ClubTECHNICAL TALKS, BOB LAMB CENTRE

January 17, April 16, May 14, September 17, November 19,December 10

YELLOWKNIFECONTACT: DAVID WATSON ([email protected])


DISTRICT BRITISH COLUMBIA AND YUKON

CROWSNESTCONTACT: JEFF COLDEN ([email protected])

JUNE Annual golf tournament, Fernie

NORTH CENTRAL BCCONTACT: JOHN DAVIDSON ([email protected])

FEBRUARY 23 Lecture of Christy Smith from Taseko, Williams LakeJUNE 19-20 Lecture of Brian Kynoch from Imperial Metals,

Prince George

SOUTH CENTRAL BCCONTACT: RICHARD WEYMARK ([email protected])

SEPT. 29-OCT. 2 SCBC Branch hosts MEMO 2013, KamloopsMAY 11 Kamloops Mining Day

TRAILCONTACT : MARVIN NEUFELD ([email protected])

APRIL AGM, TrailTECHNICAL PRESENTATIONS, TRAIL

February, May, September, November

VANCOUVERCONTACT : KEN ROBERTS ([email protected])

FEBRUARY 21 Luncheon Marriott, location TBD, VancouverNOVEMBER 14 Student nights, location TBD, Vancouver LUNCHEONS, VANCOUVER

March 21, April 18, May 23, June 20, September 26, October 17

INTERNATIONAL

LOS ANDES, CHILI CONTACT : ([email protected])


LIMA, PERUCONTACT : BERTRAND DE WINDT ([email protected])


6

DISTRICT ONTARIO (West of the 86th meridian, Manitoba,Saskatchewan & Nunavut)

RED LAKECONTACT: CARMEN STOREY ([email protected])


SASKATOONCONTACT: JEFF SPENCE ([email protected])

JANUARY 17 Environmental (safety) night, Sheraton HotelFEBRUARY 28 Uranium night, Sheraton HotelMARCH 21 Student paper night, Sheraton HotelAPRIL 18 Annual spring social, Sheraton HotelJULY 5 Annual golf tournament, Willows Golf and Country

Club

SASKATOON GEOLOGICAL SECTIONCONTACT: CORY KOS ([email protected])


THOMPSONCONTACT: IGNE ROBINSON ([email protected])


THUNDER BAYCONTACT: MARK SMYK ([email protected])

JANUARY Mineral Resource investment showcase, Valhalla InnFEBRUARY Greenstone Gold short course, Masonic LodgeMARCH Annual curling funspiel, Fort William Curling ClubAPRIL Annual student paper night, Airlane Hotel and

Conference CentreSEPTEMBER Mineral Resource investment showcase, Valhalla InnNOVEMBER Mineral Resource investment showcase, Valhalla InnDECEMBER Annual Christmas cocktail party, Tony and Adam’s

WINNIPEGCONTACT: ED HUEBERT ([email protected])


DISTRICT ALBERTA, MACKEZIE DISTRICT & NWT

CALGARYCONTACT: TERESA LAVENDER ([email protected])

CALGARY CIM BRANCH LUNCHEONS, TURNER VALLEY ROOM

January 16, February 13, March 13, April 10, May 15, June 12

EDMONTONCONTACT: TIM JOSEPH ([email protected])

SEPTEMBER 10 Conference of Stuart Middleton, AMEC, Universityof Alberta Faculty Club

OCTOBER 1 Conference of George Read, Shore Gold Inc.,University of Alberta Faculty Club

NOVEMBER 19 CIM Distinguished Lecturer: Cheryl Allen, Vale,University of Alberta Faculty Club

DECEMBER 10 Conference of Andrew Kaczmarek, Victoria Gold,University of Alberta Faculty Club

JANUARY 7 Student awards & student speaker night with CIMpresident-elect Sean Waller, University of AlbertaFaculty Club

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Hosted in Canada for the fi rst time!Oct. 27-31, 2013, Montréal, QC, CanadaCOM 2013 held with MS&T2013 brings together over 3,000 scientists, engineers, students and suppliers to discuss current research and technical applications.

Submit your abstract by March 15, 2013 to take part in this global forum of information exchange.

Check out our Twitter, LinkedIn, Facebook pages.


COM TOPICS INCLUDE: Materials, Processes for Aerospace

Hydroelectric Turbine Manufacturing Ralph L. Harris Memorial Mineral Processing Research Light Metals for Transportation

Neutron Scattering Technology Cross-Pollination Magnesium Technologies Rare Earth Elements Hydrometallurgy: Materials & Equipment

Featuring short courses and a variety of industrial tours.Trade Show includes over 150 Booths! www.metsoc.org


http://www.metsoc.org


On behalf of the members of the mining industry, we wish to thank youfor responding so generously to our Giving Campaign 2011. Your con-tributions have helped us raise over $40,000 (excluding special giftssuch as gifts of securities). All donations received after December 31,2011, will be published in the spring 2013 CMMF REPORT, unless yourequest to be listed as anonymous.

Au nom de tous les membres de l’industrie minière, nous vous remercionsd’avoir répondu en si grand nombre à notre Campagne de financement2011. Votre générosité nous a permis d’amasser plus de 40 000 $ (excluantles dons spéciaux tels que les transferts de valeurs mobilières). Tous les donsreçus après le 31 décembre 2011 seront publiés dans le Rapport de FCMMqui paraîtra au printemps 2013, à moins que vous ne préfériez conserverl’anonymat.

Thank you! Merci!

Your funds support: MineralsEd (formerly known as MineralResources Education Program of BC) • M4S: the educational show on Mining,Minerals, Metals and Materials • PDAC Mining Matters • CIM DistinguishedLecturers Series • Scholarships

Vos dons appuient: M4S : le salon éducatif portant sur les Mines,Minéraux, Métaux et Matériaux • MineralsEd (anciennement Mineral ResourcesEducation Program de la Colombie britannique) • PDAC Mining Matters •Programme des éminents conférenciers de l’ICM • Bourses

40 years of service to the industryCMMF has been actively supporting education and promotingthe minerals industry for the past 40 years

The Canadian Mining and Metallurgical Foundation(CMMF) was established in 1972 as a charitable founda-tion “to create and support a strong program of educationaland charitable activities directed towards improving the con-tribution of the Canadian minerals industry to the progressand well-being of Canada.”

40 ans de service envers l’industrieLa FCMM soutient activement l’éducation et assure la promotion de l’industrie des minéraux depuis 40 ans

La Fondation canadienne des mines et de la métallurgie(FCMM) a été fondée en 1972 comme organisme charitablepour « créer et soutenir un solide programme d’activités éducatives et caritatives visant à améliorer la contribution de l’industrie minérale canadienne au progrès et au bien-être duCanada. »

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Anonymous/anonyme (2) Mr. Michael J. Allan, FCIMNyrstar Langlois Ltd.Mr. Glenn Clark, FCIMCorporation minière Osisko Mr. David ElliotMr. Emmett J. HorneInmet Mining OperationLes mines Opinaca LtéeMines Agnico-Eagle LtéeMr. Gordon Slade, FCIMMr. Robert A. Spencer, FCIMM. et Mme Luc SauvéM. Jean Vavrek, FCIMThe Walmley Foundation

Anonymous/anonyme (1)BCP Construction of Hawaii Inc.Ms. Jennifer A. ClarkMr. George C. CouplandMr. R. E. Gordon DavisMr. Donald O. Downing, FCIMMr. Allan D. MacTavishMr. H. E. (Buzz) Neal, FCIMMr. David S. Robertson

Anonymous/anonyme (1)Mr. Paul Marcus BlytheMs. Patricia Dillon, FCIMMr. Raymond N. DudgeonMr. Peter FerderberM. Jean FortinMr. John R. GoodeMr. J. Lennart HedlundMr. Dale M. Hendrick & Ass.Mr. John Frank HepburnMr. David L. JohnstonMr. John KiernanMr. Rogers A. LudgateMr. Robert McIvorMr. Willem J. Bernelot MoensMr. Leland R. NortonMr. John H. ParkerMr. Peter StaceyMr. Howard R. Stockford, FCIMMr. Chris Twigge-Molecey, FCIMMr. Larry Stanley UrbanoskiMr. Howard J. WiggettMr. Donald J. Worth, FCIM

Anonymous/anonyme (2) Mr. John M. Anderson, FCIMM. Norman AndersonMiss Rosario M. AstuvilcaMr. G. Allan BakerMr. Derek John BarrattMr. William F. BawdenMr. Robert BellMr. William Carl BerridgeMr. Robert H. BorstM. Don Bourgeois & FilsMr. C.O. BrawnerMs. Anne Marie BriessendenMr. R. Ronald BrownM. Robert Bryce, FCIMMr. Alfons BuzasMr. William A. CaseMr. Biswajit ChandaMr. Edward H. ChownMr. Curtis ClarkeMr. Donald W. CoatesMr. Edmund W. M. CokayneMr. Gerald E. CooperM. David CorriveauMs. Jamie DonovanM. René Dufour, FCIMM. Cyrille DufresneMr. Piers M. Ebsworth, Eng.Mr. Frederick A. EdwardsMr. David J. EmeryMr. Carl A. FreitagMr. Daniel GagnonMr. Krasimir GeorgievMr. Gordon R. HarrisMr. Daniel HewittMr. Christian A. HesseMr. Chin Choi HoMr. Robert W. HornalMr. Michael J. HumphrisMr. Lawrence D.A. JacksonMr. Juhan J. KalmetMr. Douglas Arthur KnightM. Pierre LalandeM. Eric LavoieMr. Max LenarciakMr. Geoffrey C. MarlowMr. Alex McLeanMr. William McNeil, FCIMMineTech Int’l LimitedMr. Jack MullinsMr. and Mrs. Jack McOuat, FCIM

Dr. Arthur PalmerM. Serge PerreaultMr. Robert Hugh PinsentMr. Yulo PerezMr. Gary R. RiceM. Michel RigaudMr. Laurie E. ReedMr. Harold E. RuddMr. Roy SalkusMr. Terence F. SchornMr. Larry SeeleyMr. Colin Smith, FCIMMrs. Jane SpoonerMr. William E. StanleyMr. Michael P. SudburyMr. Peter Tarassoff, FCIMMr. Tim J. TermuendeMr. Steele TomlinsonMr. W. Anthony TriggsMr. George VooroMr. Jack H. Walsh, FCIMMr. Alan R. WattMr. Phillip Charles WalfordMr. A. James WalkerMr. William L. WallaceMr. Douglas P. WalliDr. Gus Van Weert, FCIMMr. Andrew L. WeisharDr. John O. WheelerMr. Howard J. WiggettMr. Richard M. WilliamsMr. Kitch WilsonMr. Arthur WinckersMr. David WortmanMr. D. M. Wyslouzil, FCIMMr. Edward M. Yates

Anonymous/anonyme (1)Mr. Brian Abraham, FCIMMr. Volker Henning AhlbornM. Sebastien AllardMr. Kenneth ArneMr. Roger AubertinMr. Alan BayM. Michel L. BilodeauMme Louise Blais-LerouxMr. Brian BussM. Richard CôtéMr. Askok DalviMr. Hoba DonMr. Brian L. FenoulhetMr. James A. Finch

M. Jean FortinMr. Bernhard FreeMr. Rock R. GagnonMr. Wilson GiraldoMr. Carlton N. GoddardMr. R. Michael GrayMr. Roderick GuthrieMs Caroline HanssonMr. Wayne Hickey, FCIMMr. Lionel HurstMr. Jerry JelinekMr. John KeenanMr. George R. KentMr. Len KnoxMr. Peter D. KondosM. André LachapelleM. Réal J. LafleurM. Maurice LauzonMr. Robert G.H. LeeMr. Arthur L. LibermanMr. Phillip MackeyMr. Jan Werner MatousekMr. Ismael MolinaMr. George MoubayedM. Phillip MudryMr. Donald I. NelsonMr. Dennis NethertonMr. and Mrs. John Orton Ms Karen PaineMr. Brian J. PaulMr. Nicholas ParchewskyMr. Richard PeeversMr. Ernest O. PitschelMr. Victor ProkopchukMr. David Mark RichardsMr. Colin RobertsMr. John Eric RudkinMr. Maheswar SahooMr. Michael SamuelsMr. David J. SeleckMr. Wolfgang D. SkublakMr. Harold R. SteacyMr. Nathan StubinaMr. Alan TaylorMr. Robert E. Van TasselTechnical Economists Ltd.M. Gilles A. TremblayM. Marcel ValléeMr. Chris VincentMr. Jack R. O. WalliMr. Arthur H. WebsterMr. Umetaro Yamaguchi


Although a separate legal entity from the Canadian Institute of Mining,Metallurgy and Petroleum (CIM), CMMF was established and continuesto be funded by CIM individual members.

La FCMM est une entité distincte de l’Institut canadien des mines, de la métal-lurgie et du pétrole. La FCMM a été fondée par les membres de l’ICM et con-tinue à bénéficier de leur appui.


CIM TechnicalPublicationsCommitteeCHAIRChuck Edwards

CANADIAN MINERALPROCESSORS SOCIETYMichael SueCatherine Pelletier

MANAGEMENT ANDECONOMICS SOCIETY Mark Lamoureux

ENVIRONMENTAL AND SOCIALRESPONSIBILITYSOCIETYChuck Edwards

METALLURGY ANDMATERIALS SOCIETYRobert HarrisonPeter Lind

GEOLOGICAL SOCIETYChuck Edwards

ROCK ENGINEERINGSOCIETYDouglas Milne

MAINTENANCE ANDENGINEERING SOCIETYMarcel Djivre

SURFACE MININGSOCIETYTim Joseph

UNDERGROUNDMINING SOCIETYGary PoxleitnerLuis Peloquin

Peer ReviewersSamaneh AlibeigiJuan AnesDerek ApelJames F. ArchibaldHooman Askari-NasabEdouard AsselinPeter H. AtkinsonWilliam BagnellAndrew BamberNicola BantonArthur BarnesLaura BattisonLuc-André BeauchampAlan BeavanWalter BecorenaDonna BeneteauJeff BoisvertVeronique BoivinMarc BoudreauMohamed O. Bouna AlyKeith BoyleColin BriscoJames BrownBrian BussAmy ByersWinnie CaiPeter CainAllan ChanKinnor ChattopadhyayLoy ChunpongtongJesse ClarkJ. Lewis CluettKaren CoatesJeff ColdenCyril ColeGerry ConnaughtonDonna CortolezzisPascal CoursolTad CrowieRoland E. CrullBoyd R. DavisDavid DeGagneGuy DeschenesSean DessureaultDickson DeyBrett DickieRoussos G. Dimitrako-poulosMarcel M. DjivreGlenn S. DobbyJie DongChris A. DoughertyGeorgi DoundarovMartin DrennanW. Scott DunbarLinda DuncanMarek DworzanowskiKen Dyck

Tim EatonChuck EdwardsRobert EdwardsHoda EiliatKamran EsmaieliGennaro EspositoVern W. EvansRobin FauquierSalar FazliBruce C. FielderJohn A. FolinsbeeDominic FragomeniLuc GagnonLouis-Pierre GagnonEnrique GarayTony GeorgeAndrew GillamRyan GirlingMarcelo GodoyTadeusz GolosinskiJohn R. GoodeCharles GrahamMartin GrenonAl GuseDoreen HackerJohn HadjigeorgiouRobert HallMel HarjuRobert HarrisonMohd Hazizan MohdHashimFerri HassaniJames F. HatleyClaire HayekGerhard W. HeinrichRobert HendersonAdam HesseBrent Max HilscherJoseph HinesEric H. HintonSimon HobsonMike HoffmanSeyed Hamid HosseiniShili HuCarlos Eduardo HuarangaChayñaImtiaz HussainSuzan IbrahimEnrique IsagonChristopher JacobsTim JosephRichard JundisAbrar KalhoroDave KenwellMohammadreza TavakoliKhalediBrad KingstonBernhard KleinEdmund Kofie

Sunil KoppalkarGregory W.R. KuzykMark LamoureuxGraeme LamsonGeoffrey LaneAli LashgariEmma LeightonAndy LemayLi LiGuo Li-jiePeter J. LindVolodymyr LiskovychGordon LivingstoneMatt LofstromGlenn LyleGary MacSporranPadma MahadevanVeerendra MaharshiFarideh MalekiTanai MarinJoshua MarshallChristopher MartinJonathan MatthewsGeorge McIsaacRichard A. McIvorF. Bennett McLaughlinStuart McTavishHamidreza MehriziLouise MichaudDean MillarDouglas MilneBrett MoldovanRobert MorozValery MorozovErin A. MossAbdul MunemGhazaleh NazariOwen NeimanJan NessetChristopher O’ConnorOlujide OlurinIan OrfordSergei PanasiukVladimiros PapangelakisJacek (Jack) ParaszczakAdrienne PattersonEdgar M.L. PeekCatherine PelletierLuis PeloquinBruno PereiraIan M. PlummerCarol PlummerMark PolakJeff PooleGary PoxleitnerJ.R. Robert PronovostRobert RaponiTommaso RaponiPaul M. Rennick

Jodi Lynne RobertsKenneth John RobertsColin RobertsJohn RobertsonGerry RobleskyChick RodgersAfshin SadriRivaldo SantosRafael SantosEric SchramlBryan SchreinerLorne SchwartzErfan SharifiLeandro SilvaRaymond SimondRichard SissonCinziana SistTimothy SkinnerMike SmithDouglas M. SmithLawrence D. SmithMayooran SomanathanKeith N. SpencePeter StokerNathan StubinaMichael SueGary W. TaylorStephen TaylorGerson TeixeiraDenis ThibodeauMarkus TimuskDavid TisdaleMamadou ToureBasilios TsikourasPaul TuckerGideon van TonderAdel VatandoostAnne VeegerHoracio VergaraMatthew ViolotPeter WaggittJamie WaineXinran WangNiall WeatherstoneJerry WedzichaPeter WellsPeter WhittakerPeter WinterburnZhixian William XiaoQuanmin YangTrevor YeomansRay YostFran YungwirthMuhammad Zaka EmadJack ZhangJanice M. Zinck

BECOME A PEER REVIEWER! www.cim.org • [email protected]

CIM JournalThank you for volunteering

as peer reviewers and paper chairs.

Merci à tous les membres et directeurs bénévoles des comités de lecture.

092-094 Technical Abstracts v3_Abstracts 2012-12-17 10:30 AM

http://www.cim.org


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

T E C H N I C A L A B S T R AC T S

CIM journal

Anisotropic minerals inflotation circuitsJ. S. Laskowski, Norman B. Keevil Instituteof Mining, University of British Columbia,Vancouver, British Columbia, Canada

ABSTRACT Anisotropic minerals are important constituents of many ores. This group includes bothvaluable minerals (e.g., molybdenite in Cu-Mo ores) as well as gangue minerals (e.g., talc in plat-inum-bearing sulphide ores in South Africa, graphite in Cu-Ni sulphide ores in Canada, chrysotilein Ni sulphide ores in Australia, and clay minerals in all types of ores). Aqueous suspensions ofanisotropic minerals exhibit different properties than suspensions of isotropic minerals. The pres-ence of anisotropic minerals in flotation circuits affects the flotation process.

RÉSUMÉ Les minéraux anisotropes sont des constituants importants de nombreux minerais. Cegroupe comprend à la fois des minéraux de valeur (p. ex. la molybdénite dans les minerais Cu-Mo)et des minéraux de la gangue (p. ex. le talc dans les minerais sulfurés contenant du platine enAfrique du Sud, le graphite dans les minerais Cu-Ni du Canada, le chrysotile dans les minerais sul-furés de nickel en Australie et les minéraux argileux dans toutes sortes de minerais). Dessuspensions aqueuses de minéraux anisotropes possèdent des propriétés différentes de celles dessuspensions de minéraux isotropes. La présence de minéraux anisotropes dans les circuits de flot-tation affecte le processus de flottation.

ABSTRACT In this study, the effect of using conventional crushing and high-pressure grinding rolls(HPGR) in combination with dry or wet milling was investigated using a base-metal sulphide (BMS)sphalerite and a platinum group mineral (PGM) ore to determine how these processes affect theflotation performance. In sphalerite, irrespective of the crushing procedure (HPGR or conventional),dry milling resulted in the highest grades and recoveries of zinc, whereas in PGMs, similar treat-ment produced the poorest results. The results were investigated further by the effect of factorssuch as percentage liberation and particle size on the flotation results.

RÉSUMÉ Dans cette étude, l’utilisation d’un broyage conventionnel et de cylindres de broyage àhaute pression (HPGR), combinée à un broyage à sec ou humide, a été analysée en se servant d’unsulfure de métal commun, la sphalérite, et d’un minerai contenant des métaux du groupe du pla-tine (MGP) afin de déterminer comment ces processus affectent le rendement de la flottation. Pourla sphalérite, peu importe la procédure de broyage (HPGR ou conventionnelle), le broyage à secdonnait les plus hautes teneurs et les meilleures récupérations du zinc, alors que pour les MGP unpareil traitement donnait les moins bons résultats. Les résultats ont été analysés plus en profon-deur en considérant l’effet des facteurs tels que le pourcentage de libération et la taille desparticules sur les résultats de la flottation.

Comparative study of high-pressure grinding rolls andconventional wet and drygrinding methods on theflotation of base-metalsulphides and platinum groupmineralsN. A. Chapman, N. J. Shackleton, and V. Malysiak, Anglo Research, Crown Mines,South Africa; C. T. O’Connor, Centre forMinerals Research, University of Cape Town,Rondebosch, South Africa


092-094 Technical Abstracts v3_Abstracts 2012-12-13 2:52 PM

http://www.cim.org

Excerpts taken from abstracts in EMG, Vol. 20.Subscribe—www.cim.org

T E C H N I C A L A B S T R AC T

exploration and mining geology

Systematic and Integrative OreCharacterization of Massive sulphideDeposits: an Example from Voisey’sBay Ni-Cu-Co Ovoid Orebody, Labrador,CanadaM.A.E. Huminicki, P.J. Sylvester, M. Shaffer, D.H.C.Wilton, D. Evans-Lamswood, and R.I. Wheler

ABSTRACT — Systematic characterization of the mineralogy of massive sulphide oredeposits can provide valuable insights into ore genesis and metallurgical processingthat would not be apparent otherwise. We describe a method wherein (1) normativemineral abundances are calculated from whole-rock chemical assays using an algo-rithm, (2) the results are cast in block models, (3) the results are then verified withautomated image analysis of a subset of samples prepared as grain mounts bybackscattered electron imaging and X-ray mapping on a scanning electron microscope,and (4) those verified results are integrated with textural data determined by opticalmicroscopy.

The technique is applied to the magmatic Ni-Cu-Co sulphides of the Voisey’s Bay Ovoidore deposit in Labrador, Canada, based on geochemical assays of 3,175 whole-rocksamples. Three principal ore zones are defined in the Ovoid ore deposit. Type I oreoccurs in the centre of the deposit; it is magnetite-rich and pyrrhotite-poor with inter-mediate contents of pentlandite and chalcopyrite. Type II ore surrounds Type I ore andis pentlandite-chalcopyrite-rich with intermediate contents of pyrrhotite and magnetite.Type III ore occurs at the base and along the outer periphery of the northern part of theore deposit; it is pyrrhotite-rich and chalcopyrite-poor with an intermediate content ofpentlandite, and a low-to-intermediate content of magnetite.

SOMMAIRE — La caractérisation systématique de la minéralogie des gîtes de sulfuresmassifs peut fournir des indications précieuses sur la genèse des minerais et le traite-ment métallurgique qui ne seraient pas disponibles par d’autres méthodes. Nousdécrivons un procédé par lequel (1) un algorithme est utilisé pour calculer l’abondancede minéraux normatifs à partir d’analyses lithogéochimiques, (2) les résultats sontexprimés dans des blocs diagrammes, (3) les résultats sont par la suite validés paranalyse d’image automatisée sur un microscope électronique à balayage en électronsrétrodiffusés et par cartographie en rayons X sur des échantillons constitués de grainsmontés en résine, et (4) les résultats de cette validation sont combinés aux donnéestexturales obtenues par microscopie optique.

Cette technique est appliquée aux sulfures magmatiques de Ni-Cu-Co du gisementOvoïde, en utilisant les analyses géochimiques de 3175 échantillons de roche totale.L’Ovoïde comprend trois types de minerai. Le type I est situé au centre du gisement; ilest riche en magnétite et pauvre en pyrrhotite avec des quantités intermédiaires depentlandite et de chalcopyrite. Le minerai de type II entoure le minerai de type I et estriche en pentlandite et en chalcopyrite avec des quantités intermédiaires de pyrrhotiteet de magnétite. Le minerai de type III se trouve à la base ainsi qu’en bordure externede la partie nord du gisement; il est riche en pyrrhotite et pauvre en chalcopyrite, avecun contenu intermédiaire en pentlandite et une quantité faible à moyenne de magnétite.


092-094 Technical Abstracts v3_Abstracts 2012-12-13 2:52 PM

http://www.cim.org

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One of the final seven rescued miners was Maurice Rud-dick, who had done much to keep up the spirits of otherstrapped underground, despite having broken his leg in thebump. Ruddick even organized a birthday party for a 29-year-

old miner on their fourth day under-ground and sang to the menthroughout their nine-day ordeal. Arenowned baritone, Ruddick often ledhis fellow miners in song while workingor resting underground, and sang in aquartet in his spare time. He was mod-est about his role, but others attributedtheir survival to Ruddick’s positivespirit. He was named Citizen of the Yearby the Toronto Telegram after the rescue.

Marvin Griffin, the governor of Geor-gia, later invited 19 of the survivors tostay at a luxurious holiday resort in hishome state. Griffin had been in Canadaduring the disaster and had been movedto do something for those who had beentrapped. Ruddick was one of the invi-tees, but when Griffin learned that themuch-respected miner was African-Canadian, he insisted that Ruddick bekept segregated.

The other miners were not im -pressed, with one miner reportedly saying, “There was no seg-regation down in that hole, and there’s none in this group.”However, Ruddick obliged Griffin, not wanting to comebetween his fellow survivors and their much-needed vacation.Along with his wife and their children, Ruddick stayed in a sep-arate trailer and did not see his white companions until the vaca-tion was over.

Back home, the Springhill miners had to look elsewhere forwork. The bump was so destructive to the underground work-ings that the mine was shut down after the rescue effort, neverto reopen. CIM

Coal mining disaster: the 1958 Springhill Bumpby Correy Baldwin

The coal mining town of Springhill, Nova Scotia, has theunfortunate distinction of suffering three major miningdisasters at its underground Cumberland mine. The first,

an explosion in 1891, killed 125 miners. Another explosionripped through the mine in 1956,killing 39. Two and a half years later, onOctober 23, 1958, a third disaster dev-astated the mine. Seventy-four menwere killed and 100 were rescued, inwhat became known as the 1958 Bump– the largest bump in North Americanhistory.

A “bump” occurs when geologicalstresses in a mine – often triggered bythe removal of coal from the bedrock –cause the mine to collapse in on itself,resulting in effects similar to those of asmall earthquake. The three shock-waves that shook the mine also shookthe town above.

There were 174 men working at thetime, and many of them were trapped3,900 metres from the entrance. Theaffected shaft was one of the deepest inthe world, extending nearly 1,200metres below the surface. When res-cuers descended into the mine, theywere hampered by fresh pockets of methane, partially collapsedshafts and tunnels blocked by fallen rock. By early morning,they brought 75 survivors to the surface.

Additional rescue teams from other coal mines across NovaScotia came to help. On the morning of October 29, rescuersmade contact with a group of 12 miners trapped behind a 49-metre rockfall. The next morning, they tunnelled through andreached the men. A final group of seven survivors was foundand rescued on November 1, after having spent nine daysunderground.

Both Canadian and international news organizations rushedin to cover the story. The ongoing rescue effort became a majormedia event, and the first major international story in Canadato be covered by a live television broadcast – a medium pio-neered at Springhill by the Canadian Broadcasting Corporation.Prince Philip, the Duke of Edinburgh, even visited the site,accompanied by Nova Scotia Premier Robert Stanfield.Reporters crowded the mine entrance, interviewing every sur-vivor and rescuer who surfaced, bringing some miners momen-tary fame. One survivor, Douglas Jewkes, became a spokesmanfor 7Up after asking for the drink upon emerging from themine. Others later appeared on the Ed Sullivan show.


The seventh and last man being removed from Springhill’sNo. 2 colliery to waiting ambulance

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CIM Magazine December '12/January '13

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Transcript of CIM Magazine December '12/January '13