CIM Magazine August 2010 by CIM-ICM Publications

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CO NTENTS CIM MAGAZINE | AUGUST 2010 | AOÛT 2010

NEW S 10 12

Prefeasibility study underway at Galore Creek “Exceptional demand” revives copper-gold-silver project in northern British Columbia by P. Caulfield Ivory Coast re-opens for business Officials from Western African country reach out to investors in Montreal by P. Diekmeyer

13 14

Colombia joins key Latin American players Mineral resources, free market policies and renewed security draw interest to the long-troubled nation by M. Schwartz A historic breakthrough Xstrata Copper’s Kidd Mine ramp development winds its way into the record books by R. Roberts

Mining takes centre stage at business ethics conference Canadian Business Ethics Research Network draws professionals and academics together to share notes by P. Diekmeyer

UPFRO NT 18 20

Building awareness “Ounce by Ounce” Employee engagement program at IAMGOLD yields precious material for workers and front office by G. Woodford Canada Lithium Corp. powers it up Demand for hybrid electric vehicle driving the development of Quebec lithium project by P. Diekmeyer

Down to earth Miners and aerospace experts matching space exploration technologies with mining challenges by D. Zlotnikov

Expanding resources to take on enduring challenges Growth on the agenda for new PDAC president Scott Jobin-Bevans by E. Moore

PRELIMINARY PROGRAM

October 24–27, 2010

4 | CIM Magazine | Vol. 5, No. 5

CO LUM NS 44 45 46 48 49 50 52 54 55 56 82

CIM NEW S

FEATURES HUM AN RESO URCES/ RESSO URCES HUM AINES 26

Future prospects Breaking down barriers

Northern Gateway cruisin’ for a cause Annual boat cruise benefits local initiatives by C. Mayhew

between disciplines, genders and cultures essential to filling mining jobs by M. Eisner

Une mine de potentiel La créativité : un

incontournable pour trouver des moyens d’éviter une pénurieimminente de ressources humaines

Engaging speakers engaging audiences Meet CIM’s roster of distinguished lecturers by R. Pillo Setting the stage Project update on CIM’s new IT infrastructure by A. Nichiporuk Beyond the call Adam Tonnos is building a better community by R. Pillo Planting the seeds for blooming ties Joint WIM – CIM Toronto Branch meeting by R. Hutson

G O LD/O R 32

MAC Economic Commentary by P. Stothart Supply Side by J. Baird Engineering Exchange by H. Ednie HR Outlook by R. Montpellier Eye on Business by R.H. Cooper Innovation by T. Hynes Women in Mining by H. Ednie Standards by D. McCombe First Nations by J.C. Reyes Mining Lore by C. Baldwin Voices from Industry by R. Mailhot

The currency of gold As global economic uncertainty turns investors on to the merits of gold, producers push ahead with measured growth

Un stage doublement avantageux M. L’Heureux reçoit bourse étudiante par M. Eisner et M.I. Anelli

by D. Zlotnikov

La valeur de l’or Une croissance stable – la norme pour les producteurs d’or

La version française est disponible sur le web à www.cim.org/bulletin

La semaine minière du Québec à Saguenay Aperçu des activités de la section Saguenay de l’ICM par S. Thivierge Préparer le terrain Mise à jour du projet sur la nouvelle infrastructure de TI de l’ICM par A. Nichiporuk

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Un intérêt pour la génie mécanique La bourse J.D. « Pat » Paterson est accordée à M. Bédard par M. Eisner et M.I. Anelli MEMO 2010 Mine Engineering / Mine Operators’ Conference preliminary program

HISTO RY 72

Nevada-type gold deposits (Part 2) by R.J. Cathro

The beginnings of mineral processing research in Canada (Part 6) by F. Habashi

TECHNICAL SECTIO N FEATURED M INE

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Canadian Metallurgical Quarterly CIM Journal

MINE EN VEDETTE 36

A small window, a big opportunity Agnico-Eagle Mines masters the elements and logistics to start up its Meadowbank operation in Nunavut by C. Baldwin

Une petite fenêtre, de grandes possiblités Agnico-Eagle maîtrise les éléments et la logistique pour démarrer l’exploitation Meadowbank au Nunavut

IN EVERY ISSUE 6 8 58 67

Editor’s message President’s note / Mot du président Welcoming new members Calendar

August 2010 June/July 2010 | 5

editor’s letter Seizing golden opportunities

Editor-in-chief Angela Hamlyn, editor@cim.org Section Editors News, Upfront and Features:

Ryan Bergen, rbergen@cim.org

s I was working down through the strata that covered my desk in preparation for the recent relocation of the CIM national offices, I came across an issue of CIM Magazine from our archives. The cover of the August 2006 edition made one solitary proclamation in a stark, bold font: “Human Resources Crisis.” We were in the process of putting the finishing touches on this current HR-themed issue when I found it, so I could not help but stop what I was doing and take a closer look. For, as we report in the following pages, that crisis has not subsided in the four years since. If anything — the recent economic downturns notwithstanding — it has worsened, and poses an even larger threat to the industry. As you will read in the feature story, “Future Prospects,” a report due to be released by the Mining Industry Human Resources Council (MiHR) this fall pegs the looming deficit of qualified people for our industry to be in excess of 100,000. Additionally, a staggering 21 per cent of those currently employed in our industry will be eligible to retire in just two years. Writer Marlene Eisner explores some of the creative programs underway aimed at attracting a new pool of qualified people, including students, females, new Canadians and Aboriginals. From MiHR’s progressive web portal and social media initiative to Goldcorp’s creative marketing efforts, many organizations are doing their part so that we are not destined to read an even gloomier headline in 2014. Also in this issue we offer a special focus on another precious resource — gold. Regular contributor Dan Zlotnikov explores why and how the global economy’s ongoing troubles is spelling good news for the gold sector. From Timmins to Africa, read about expansion plans at Kirkland Lake Gold, IAMGOLD and Goldcorp, as Canadian mining companies from across the spectrum capitalize on gold’s gilded status — albeit with prudence. In the article “A small window, a big opportunity” on page 36, writer Correy Baldwin gives us a glance inside Agnico-Eagle Mine’s new Meadowbank operation in Nunavut. Be sure to check out the preliminary program for the upcoming Maintenance Engineering / Mine Operators’ Conference — MEMO 2010 — to be held October 24 to 27 at Laurentian University in Sudbury. With a wide range of field trips, a dynamic technical program, fun-filled social lineup and a sold-out trade show, it promises to be a must-attend event, so if you have not registered already be sure to do so right away. On a final note, as mentioned earlier, the CIM national office has moved, so please take note of our new mailing address on page 47. In the meantime, our email addresses remain the same, so please keep sending us your thoughts on the articles you have read, or give us a heads up on things you would like to see in future issues. Your ideas are golden.

Keep the mail coming! cim.org editor

Angela Hamlyn, Editor-in-chief 6 | CIM Magazine | Vol. 5, No. 5

Columns, CIM News, Histories and Technical Section:

Andrea Nichiporuk, anichiporuk@cim.org Technical Editor Joan Tomiuk, jtomiuk@cim.org Publisher CIM Contributors Maria Anelli, Jon Baird, Correy Baldwin, Louise Blais-Leroux, R.J. Cathro, Peter Caulfield, Rosalind Cooper, Peter Diekmeyer, Heather Ednie, Marlene Eisner, Fathi Habashi, Rick Hutson, Tom Hynes, Robert Mailhot, Chelsa Mayhew, Deborah McCombe, Ryan Montpellier, Eavan Moore, Robbie Pillo, Juan Carlos Reyes, Ryan Roberts, Michael Schwartz, Paul Stothart, Steve Thivierge, Gillian Woodford, Dan Zlotnikov Published 8 times a year by CIM 1250 – 3500 de Maisonneuve Blvd. West Westmount, QC, H3Z 3C1 Tel.: 514.939.2710; Fax: 514.939.2714 www.cim.org; Email: magazine@cim.org Subscriptions Included in CIM membership ($150.00); Non-members (Canada), $168.00/yr (GST included; Quebec residents add $12.60 PST; NB, NF and NS residents add $20.80 HST); U.S. and other countries, US$180.00/yr; Single copies, $25.00. Advertising Sales Dovetail Communications Inc. 30 East Beaver Creek Rd., Ste. 202 Richmond Hill, Ontario L4B 1J2 Tel.: 905.886.6640; Fax: 905.886.6615 www.dvtail.com National Account Executives 905.886.6641 Janet Jeffery, jjeffery@dvtail.com, ext. 329 Beth Kukkonen, bkukkonen@dvtail.com, ext. 306

This month’s cover A worker finishes doré bars at Goldcorp’s Red Lake operation in Ontario. Photo courtesy of Goldcorp Layout and design by Clò Communications. Copyright©2010. 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

An Introduction to Cutoff Grade Estimation: Theory and Practice in Open Pit and Underground Mines Cutoff grades are essential in determining the economic feasibility and mine life of a project. Learn how to solve most cutoff grade estimation problems by developing techniques and graphical analytical methods; about the relationship between cutoff grades and the design of pushbacks in open pit mines; and the optimization of block sizes in caving methods. Instructor: Jean-Michel Rendu, Consultant, United States • Date: September 8-10 • City: Montreal

Geostatistical Mineral Resource/Ore Reserve Estimation and Meeting the New Regulatory Environment: Step by Step from Sampling to Grade Control Learn about the latest regulations on public reporting of resources/reserves through state-of-the-art statistical and geostatistical techniques; how to apply geostatistics to predict dilution and adapt reserve estimates to that predicted dilution; how geostatistics can help you categorize your resources in an objective manner; and how to understand the principles of NI 43-101 and the SME Guide. Instructors: Michel Dagbert, Geostat Systems Int., Canada, Jean-Michel Rendu, Consultant, United States, and Roussos Dimitrakopoulos, McGill University, Canada • Date: September 13-17 • City: Montreal

Mineral Project Evaluation Techniques and Applications: From Conventional Methods to Real Options Learn the basics of economic/financial evaluation techniques, as well as the practical implementation of these techniques to mineral project assessments; how to gain a practical understanding of economic/financial evaluation

principles; and how to develop the skills necessary to apply these to support mineral project decisions. Instructors: Michel Bilodeau and Sabry A. Abdel Sabour, McGill University, Canada • Date: November 8-11 • City: Montreal

Upcoming 2011 Seminars NEW — Certification in Ore Reserve Risk and Mine Planning Optimization Spread over a period of four months, this four-week course is designed for busy mining professionals who wish to update their skills and knowledge base in modern modelling techniques for ore bodies and new risk-based optimization methodologies for strategic mine planning. Gain practical experience by applying the following hands-on concepts and technical methods: methods for modelling ore bodies; stochastic simulations, case studies and models of geological uncertainty; and demand-driven production scheduling and geological risk. Instructor: Roussos Dimitrakopoulos, McGill University, Canada • Date: Starts in May • City: Montreal • Info: www.mcgill.ca/ conted/prodep/ore

Theory and Practice of Sampling Particulate Materials (Part 1)/QA-QC, Mine and Project Audits (Part 2) Instructor: Dominique François-Bongarçon, AGORATEK, United States • City: Montreal

Strategic Risk Management in Mine Design: From Life-of-Mine to Global Optimization Instructors: Gelson Batista, AMEC, Canada; Roussos Dimitrakopoulos, McGill University, Canada; and Gerald Whittle, Whittle Consulting, Australia • City: Montreal

president’s notes The power of knowledge sharing My first few months as CIM president have offered a very exciting introduction to the dynamism of our industry and of CIM. The CIM Conference and Exhibition 2010, held in Vancouver in May, provided an excellent kick-start and was closely followed by my attendance at the highly successful annual general meeting (AGM) of the Mining Society of Nova Scotia (MSNS), held at the spectacular Keltic Lodge on Cape Breton Island. These events drove home to me the deep sense of pride our members have, both in our industry and in their local branches and societies. In 1987, the MSNS produced a history of their society to celebrate its 100th anniversary. In that book, I came across the following quotation from the president’s address at the AGM of 1900: “In my address last year, I drew attention to the importance of writing papers for the society. I regret to say that the same difficulty is still experienced and that very few members contribute, notwithstanding we have a very large membership well qualified to do so.” So, what has changed in the past 100 years? These society meetings remain; however, they are a resource we can capitalize on more effectively. Looking forward to the CIM Conference and Exhibition 2011 to be held in Montreal, this is a challenge I want to renew. To succeed as an organization, we must fulfill our mandate of providing world-class technical knowledge and opportunities for the transfer of best practices between our members and with others around the globe. This necessitates that we, as active practitioners, provide input to the technical content of the various meetings and conferences at the national, society, district, branch and chapter levels.

In May, I attended a joint luncheon between the CIM Toronto Branch and Women in Mining. This annual event gave me an intimate perspective on some of the human resource challenges and opportunities addressed in this issue of CIM Magazine, and reinforced to me the necessity of continuing to attract more women to our industry. We have an enormous demographic gap opening up over the next decade and we must persist in encouraging both women and First Nations Peoples to acquire the wide range of skills our sector requires and then to bring them into our organizations. Over the next few months, I will continue to attend branch and society events and impart a simple message: As an organization, we are only as strong as the cumulative contributions of you, our members. With summer here, I wish everyone the best for your vacations and look forward to a busy and rewarding fall.

Chris Twigge-Molecey, CIM President

Le pouvoir du partage des connaissances Au cours des premiers mois de mon mandat de président de l’ICM, j’ai pu constater avec grand intérêt le dynamisme qui anime notre industrie et l’ICM. L’année a démarré du bon pied avec le Congrès et Salon commercial de l’ICM 2010, qui s’est tenu à Vancouver en mai. Juste après, j’ai assisté à l’assemblée générale annuelle (AGA) de la Société minière de la Nouvelle-Écosse (MSNS), événement couronné de succès qui s’est déroulé dans le magnifique pavillon Keltic Lodge sur l’île du Cap-Breton. Ces événements m’ont permis de mesurer l’immense sentiment de fierté de nos membres à la fois dans notre industrie et dans leurs sections et sociétés locales. En 1987, la MSNS a publié l’histoire de la Société à l’occasion de son 100e anniversaire. Dans cet ouvrage, j’ai relevé le passage suivant dans l’allocution prononcée par le président à l’AGA tenue en 1900 : « Dans mon discours de l’an dernier, j’attirais l’attention sur la nécessité de produire des articles pour la Société. Je constate malheureusement que les mêmes lacunes persistent et que très peu de membres en rédigent, en dépit du fait que nous en comptons un grand nombre qui serait amplement en mesure de le faire. » Qu’est-ce qui a changé au cours des 100 dernières années? Ces assemblées ont toujours lieu aujourd’hui. Cependant, nous pourrions tirer parti de ces tribunes plus efficacement. En vue de la tenue du Congrès et Salon commercial de l’ICM 2011, qui se tiendra à Montréal, voici le défi que je souhaite renouveler. Si nous voulons que notre organisation prospère, nous devons remplir notre mandat qui consiste à offrir des connaissances techniques de premier ordre et des occasions de transfert de pratiques exemplaires 8 | CIM Magazine | Vol. 5, No. 5

entre nos membres et d’autres parties prenantes à l’échelle mondiale. À titre de praticiens actifs, cela exige que nous participions au contenu technique présenté dans le cadre des différents congrès et assemblées organisés à l’échelle du pays et des sociétés, des districts, des sections et des sections étudiantes. En mai, j’ai assisté à un déjeuner commun de la section de Toronto de l’ICM et de Women in Mining. Cet événement annuel m’a donné un aperçu direct de certains défis et possibilités relatifs aux ressources humaines dont il est question dans le présent numéro de CIM Magazine, et a renforcé ma conviction selon laquelle il est nécessaire d’attirer plus de femmes dans notre industrie. Au cours de la prochaine décennie, nous allons faire face à un écart énorme sur le plan démographique. Nous devrons continuer à encourager les femmes et les membres des Premières nations à acquérir les multiples connaissances recherchées dans notre secteur, puis à favoriser leur intégration dans nos organisations. D’ici quelques mois, dans le cadre des activités des sections et des sociétés, je continuerai à transmettre le simple message suivant : comme organisation, notre force émane de la somme des contributions individuelles de chacun d’entre vous, nos membres. L’été est arrivé et je vous souhaite à tous d’excellentes vacances. J’aurai le plaisir de vous retrouver pour un automne bien rempli et gratifiant.

Chris Twigge-Molecey Président de l’ICM

news Prefeasibility study underway at Galore Creek Economics favourable for revival of project in northern British Columbia

NovaGold Resources Inc. and Teck Resources Limited recently announced that a prefeasibility study (PFS) had started at their Galore Creek copper-gold-silver project in northwestern British Columbia. Following one season of construction in 2007, the project was suspended when a review revealed substantially higher capital costs and a longer construction schedule for the project than originally planned. NovaGold director of corporate and investor relations Rhylin Bailie said NovaGold and Teck have completed optimization studies to simplify the project and expand throughput. In addition, copper and gold prices have risen considerably Geologists at Galore Creek in northwestern BC, one of North America's largest undeveloped copper-gold-silver deposits. since 2006, when the original feasibility study was completed. Bailie said there is “exceptional line built along the access road to tie “We believe we’ve met our objecdemand” for gold and copper in world tives of simplifying the design and into the 287 kV transmission line that markets now. the British Columbia and Canadian allowing for expansion,” Bailie said. The PFS is based on a revised mine governments have pledged to build. According to the new plans, ore On April 15, the governments plan completed by Galore Creek Min- will be crushed in the valley and then announced that the power line projing Corporation (GCMC), which conveyed through a tunnel and along ect had entered the public review manages the project for 50-50 owners an access road to the processing process for its Environmental AssessNovaGold and Teck. The study will plant. From there, concentrate will be ment Certificate. provide capital cost estimates, as well piped along the remainder of the Galore Creek, which was acquired as permitting, construction and pro- access road to BC Provincial Highway by NovaGold in 2003, is one of North duction timelines. GCMC expects the 37. The PFS will also consider alterAmerica’ s largest undeveloped copperPFS, which is usually a stepping stone natives for transporting the concengold-silver deposits. The Galore Creek to a bankable feasibility study, will be trate to market. resource estimate totals measured and Some components of the revised completed in the first half of 2011. indicated resources of 8.9 billion The main changes to the Galore plan, such as the mill and tailings locapounds of copper, 7.3 million ounces tion, will require new permits or Creek project include: of gold and 123 million ounces of sil• Relocation of the tailings facility to amendments to existing permits. ver, with additional inferred resources allow for the construction of a con- However, most of the permits required of 3.5 billion pounds of copper, 3.3 for road construction remain in good ventional tailings dam; million ounces of gold and 61 million • Relocation of the processing facili- standing. “In the last two years, we’ve ounces of silver. established access approximately ties to allow for future expansion; In February 2006, NovaGold halfway to the mine site from Highway • Realignment of the tunnel and entered into a comprehensive Partici37,” Bailie said. access road; pation Agreement with the Tahltan The project is expected to use elec• Increase of daily throughput to Nation, ensuring collaboration tric power primarily, with a power potentially 90,000 tonnes per day. 10 | CIM Magazine | Vol. 5, No. 5

Photo courtesy of NovaGold

By Peter Caulfield

news between both parties for mine planning, mine operation and environmental protection. Almost 65 per cent of project employees are Tahltan members. Under the terms of the Galore Creek partnership agreement, Teck is funding all project costs until it completes its financial earn-in for the project. At the end of the first quarter of 2010, Teck had $25 million left to spend. Once that amount is depleted, the costs of the project will be split 50-50 between NovaGold and Teck. Jason Weber, president and CEO of Kiska Metals Corporation, which has

the Grizzly copper-gold porphyry exploration property 52 kilometres east of Galore Creek, said the decision to restart the Galore Creek project is good news for his company. “It will make it easier for us to find a joint venture partner for Grizzly,” Weber said. “We’re just four kilometres off the access road that’s being completed between Galore Creek and Highway 37. That greatly improves the

economics of Grizzly and gives us lots more flexibility.” Weber said Kiska Metals is not the only exploration company that will benefit from a revived Galore Creek project. “There are many other projects in the area,” he said. “There’s lots going on there.” CIM www.novagold.com www.teck.com

Achievements A-teams in safety The BHP Billiton-EKATI team took top honours in both the overall underground and overall surface competitions at the 53rd Annual Mine Rescue Competition, hosted by the Workers’ Safety and Compensation Commission (WSCC) of the Northwest Territories and Nunavut. The two-day Mine Rescue event, part of Mining Week activities, saw close competition involving seven mine rescue events and six competing teams from three mines. Diavik Diamond Mine Inc., a Rio Tinto/Harry Winston Diamond Corporation joint venture, won in the surface obstacle task and written test. Team captain Joan Robertson is the first female captain in the competition’s 53-year history. “The Mine Rescue Competition allows the teams to showcase their exceptional calibre of emergency response. The high level of competition encourages teams to keep their skill levels honed throughout the year,” said David Arthur, mine rescue coordinator for the WSCC. “The strong performance of all teams clearly demonstrates the northern mining industry’s commitment to safety,” said Arthur.

The Power of Collaboration The Mining Industry Human Resources Council Your source for Human Resource solutions and information to build strength, competitiveness and sustainability throughout the Canadian mining industry.

Visit www.MiHR.ca for valuable resources

August 2010 | 11

news Ivory Coast re-opens for business Big hopes lie in its mining sector

Ivory Coast rarely appears on the A-list of mining opportunities. In the Western African nation, potential initiatives have long been held back by poor infrastructure and political turmoil, which have raged for much of the past decade. However, according to Louis Bony, Ivory Coast’s ambassador to Canada, the country, which its officials say has “enormous mining potential,” is worth a look. “After hard times, our national reconciliation process is complete,” said Bony, at a recent event in Montreal organized by the Canadian Council on Africa to help build business and economic ties between Canada and Ivory Coast. “People are always asking us when we will hold elections. It is true that elections are important and we are moving towards them this year.” While almost all nations claim to be open to investment all the time, the fact that Ivory Coast is actively courting investors shows, at least, that it is putting its money where its mouth is. Like many countries, Ivory Coast has a keen interest in partnering with the mining sector companies that want to develop its substantial mineral deposits. These range from gold and iron to nickel and manganese, to name a few. The state-owned resource development corporation SODEMI, has emerged as the country’s key tool for helping the Ivory Coast government accomplish this, through the partial stakes it takes in some — though not all — key mining sector developments there. According to Raoul Kouame, SODEMI’s director of operations, the firm has conducted a vast exploration program on the Ivory Coast’s territory, and built up a database of potential development opportunities. Among the major international players now partnering with SODEMI are the French firm COMINOR, in an open pit gold mine in the Zouen-Hounien 12 | CIM Magazine | Vol. 5, No. 5

Photo courtesy of Conseil Canadien pour l'Afrique

By Peter Diekmeyer

Investors gathered in Montreal to learn more of the "enormous mining potential" in Ivory Coast.

region; FORACO, another French firm that is conducting exploration activities; and India-based Tata Steel, which is moving to mine iron in the Mont Nimba region. According to a report prepared by Tricia Wilhelm of Export Development Canada, Ivory Coast has the strongest economy in West Africa and “its government has historically been quite open to foreign investment and has actively encouraged greater foreign participation in the local economy.” Yet, while turmoil in Ivory Coast over the past few years and its president Laurent Gbagbo’s repeated postponement of elections may have scared off some investors, MarcAntoine Audet, CEO of Landen Capital is not one of them. Through its subsidiary SAMA Nickel Corporation, Landen Capital is conducting an extensive drilling exploration campaign 600 kilometres northwest of Abidjan, the country’s economic capital, which according to company officials, has excellent

infrastructure facilities. That is in strong contrast with much of the rest of the country, where roads, rail, power and water facilities are often lacking. Audet characterizes the results of SAMA’s recent diamond drill program as “excellent,” and has said that SODEMI, which owns a 33.3 per cent stake in the operation, has been “particularly helpful.” If so, that would be good news for Ivory Coast, which has committed to increasing mining sector research, ramping up exploration and operations work, and completing major mining-related industrial projects. The overall goal is to grow its mining sector to 10 per cent of GDP by 2015. CIM

mac facts

Average weekly wages and salaries in the mining industry exceeded $1,300 in 2008.

news Colombia joins key Latin American players Stability and security boost attractiveness, say mineSouthAmerica speakers By Michael Schwartz Confidence in Colombian mining opportunities is growing as security — a major obstacle to resource exploration and development — continues to improve, delegates to mineSouth America: Focus on Colombia learned in June. Investors heard from Scotiabank senior economist Oscar Sanchez on how the global slowdown hit everywhere, including Colombia, and yet, he said, “Colombia is still standing — in 2009 we experienced growth, albeit small. Chile and Mexico declined last year.” In addition, a new government is settling in: “Its fiscal policies are being awaited with interest,” added Samchez. Jorge Neher, a partner at Macleod Dixon LLP was also optimistic about Colombia, now the eighth largest gold producer in the world. The law firm is opening an office in the country and Neher said that investment in Colombia is growing just as the opposite is happening in Bolivia, Ecuador and Venezuela. Colombia’s strengths, for Neher, lie in infrastructure/roads, security, political stability, geological database and qualified personnel. Encouraging findings also emerged from the Fraser Institute’s latest survey of 3,000 mining executives regarding mining jurisdictions around the world. The think tank’s vice-president of research, international, Fred MacMahon, explained that Colombia still exhibits some deterrents to mining but nothing on the lines of the strongly anti-mining regimes. “Despite the generally poor results from Latin America, Colombia showed significant improvement this year,” he observed. “The improved score might be a result of the mining community’s increased confidence in the country due to its improved political stability and security, and to the mining community catching up with this news.” That Colombia is a market-in-waiting was reinforced by Hans Rasmussen, president and COO of Eaglecrest Explorations. He noted that Colombia is the least explored region of the mineral-rich Andes Cordillera. This year, the company has a US$6 million exploration program that will include sampling, mapping, aeromagnetic surveying and drilling. One of Eaglecrest’s projects is the Fredonia gold development near Medellin. “We have nothing but good news,” said Rasmussen. “Five years ago, we wouldn’t have gone to Colombia. We would not have felt safe there.” Of course, knowing the country and anticipating its risks are crucial. Graeme Burt, a partner at the social engagement and development consultancy firm rePlan, addressed the issue of social licence. In Colombia and 15 other countries, Burt collates social, economic and

housing issues, and then tries to anticipate them. Earning and maintaining broad community support is crucial, he said. Mining operators must create a good reputation with the local population, disclosing, consulting, planning and negotiating — the “human geology” — as he phrased it. Burt revealed his top ten recommendations. They included building trust early, obtaining and using feedback, and acquiring land carefully, as mistakes can create real resentment. Even more importantly, jobs must go to locals. He suggested a company would do better to hire 50 local people to do the digging rather than buying an excavator. Nothing gets people on the street quicker than missed opportunities such as this, said Burt. Burt finally advised his audience to “manage expectations.” They may run very high in local communities, but operators must be honest. CIM

August 2010 | 13

news A historic breakthrough Kidd Mine sets new mark for underground ramp development

In early June 2010, workers at Xstrata Copper’s Kidd Mine in Timmins, Ontario, broke through the last of the rock between the 9,500-foot and 9,600-foot levels, completing the deepest continual ramp from surface in the world. The ramp portal round was developed from the open pit in 1969, and the ramp, approximately 5.1 metres in width and height, now winds down from surface for approximately 20 kilometres at a grade of 15 per cent. The breakthrough is the latest in a series of development stages, the total cost of which is $148 million. The majority of the ramp was driven down from the 8800 Heat, ventilation challenges and the disposal of waste rock within a working mine had to be overcome to arrive at this point. Level, starting in January 2007, and reached 150 metres past the 9500 Level in May 2010. In August dled along with the operating mine’s Heat is also a major issue, and is 2008, development started from the waste and ore. especially a concern during the sum9600 shaft station up the ramp access mer. Kidd uses a set of cold stopes For ventilation, the down ramp to the ramp breakthrough location. fresh air is supplied to 9000 Level (where ice is generated in the winter In addition to the challenges asso- through the No. 4 shaft and an inter- months) and a mechanical refrigeraciated with working at such extreme nal fresh air raise, and then forced tion plant to cool the air. However, in severe heat, Kidd implements a depths — such as ventilation volumes through three-metre-diameter fresh air work/rest regime to minimize the risk and extreme temperatures — came raises to supply the required airflow to of heat stress. As the project completes the problem of removing the waste 9100 Level through to 9500 Level. The changes to the ventilation setup, the rock. The work crews developing a down ramp is currently exhausted heat will become easier to manage. ramp and the five levels between through a 1.5-metre-diameter raise on Flooding also constrained develop9,000 feet and 9,500 feet shared facil- 9100 Level and a six-metre-diameter ment execution. Due to mine depth, ities with an operating mine produc- raise on 9000 Level, with the permathe dewatering system is staged; coning 2.5 million tonnes per annum nent six-metre-diametre raise exhaust sequently, if a higher pumping station from 2,000 feet down to 8,800 feet. system from 9200 Level to 8300 Level The down ramp development pro- expected to be complete this month. requires maintenance, then the lower duces approximately 3,500 tonnes of The up ramp is supplied with fresh air level will not pump, and when its waste a week, which is trucked either from the No. 4 shaft, and exhausted sump overflows, it drains to the block to the 8800 waste bin or directly to a via ducting in the No. 4 shaft to 8800 below. In response, a temporary waste stope between the 8300 and Level. Prior to the ramp breakthrough, pumping station on 9200 Level was 8800 levels. The up ramp produces a ventilation curtain was constructed installed while developing the 9500 approximately 1,000 tonnes of waste a to maintain the same ventilation sys- Level main sump. To mitigate rock stress and protect week, which has to be dumped onto a tem. Now that breakthrough has the workers approaching breakoccurred, ventilation tests are being grizzly to load directly into the skip. through, the face was distressed within carried out to optimize the air flow Including vertical raising, the project 12 metres of breakthrough. Eightuntil the breakthrough of the new produces, on average, 5,000 tonnes of metre-reamed holes were drilled as exhaust raise in August 2010. waste per week, which must be han14 | CIM Magazine | Vol. 5, No. 5

Photo courtesy of Xstrata Copper

By Ryan Roberts

! !

part of the cut; as well, ! eight-metre perimeter holes were drilled at 45 degrees. These holes were charged with one stick of powder at the end of the holes and fired in sequence with a standard round to destress the area. To ensure the round was safe to drill, the face was screened and Swellexed. With the breakthrough complete, the Stage II development team will continue the ramp down from the 9600 shaft station ! ! to a shaft breakthrough at approximately 9,800 feet. This! will ! allow the mine to muck the shaft bottom and for the area to be used as over flow capacity for the main sump on 9500 Level. A new bin from the 9600 shaft station to 9200 rock breaker will also be completed by September. On 9500 Level, capital development will

! !

news

The three-year-long project included the of contributions Dumas Contracting for the down ramp, Redpath Mining for the up ramp, the mine services of Access Mining, Machines Roger for service hole and paste hole drilling, the electrical work of Monarch Automation Construction, diamond drilling from Orbit Garant, and ! mine and construction consultants Genivar. Despite over one million man hours ! worked, no lost time injuries occurred. CIM Figure courtesy of Xstrata Copper

continue some special ! ! ! and ! ! ! ! ! ! projects, ! ! including a powder magazine and a fuel bay, will be completed. The stopes on 9400 Level, complete with exhaust and fresh air raises, are scheduled to be ready for operation in the first quarter of 2011 and on 9500 Level in the following quarter.

About the author Ryan Roberts, C. Eng (U.K) works at Xstrata Copper and is the Stage II project engineer.

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August 2010 | 15

news Mining takes centre stage at business ethics conference Speakers explore common and contested ground By Peter Diekmeyer Mining industry stakeholders gathered in Montreal in late May to take part in a public dialogue titled “Human Rights, Resource Extraction and First Nation Economic Development,” a one-day event that was part of the Canadian Business Ethics Research Network’s third annual conference. The event brought together academics and professionals engaged in business ethics research and practice for three days of discussions and workshops designed to connect silos of expertise and experience. Among the sessions on the public dialogue, “theme day” focused on the challenge of sustainable development inside Canada. It included the experiences of the Naskapi Nation in the

iron ore producing region of northeastern Quebec, as well as a presentation of the impact and benefit assessment community toolkit, designed as a resource for First Nations communities looking to begin negotiations with resource companies. A lively a two-hour morning panel discussion addressed Bill C-300, the private members’ initiative being put forward by Liberal MP John McKay that would spell out the ethical responsibilities of Canadian mining companies that are engaged in resource extraction in developing countries. If passed, the new bill would require that Canadian companies that seek assistance from federal agencies,

such as Export Development Canada, the Canada Pension Plan and the Department of Foreign Affairs and International Trade, meet certain minimal eligibility criteria. “Canadian mining companies are among the finest there are,” said McKay. “However, when you have 3,000 projects around the world, there are going to be some issues. We can dismiss some of the NGO complaints that we have been getting, but after a while we have to give them an ear. For example, we have heard stories about Canadians travelling in Guatemala taking the maple leafs from their backpacks because of the bad reputation that certain mining companies have given us there.”

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16 | CIM Magazine | Vol. 5, No. 5

news John Lewis, who spoke on behalf of KAIROS, an ecumenical partnership that takes positions on social issues, agreed. “Canadian mining companies that operate overseas right now are not regulated,” said Lewis. “We need to change that.” While private members’ bills generally are not taken too seriously, McKay has already sponsored two of them that have received royal assent. His current initiative has passed a second reading in the House of Commons and is currently in the Standing Committee for Foreign Affairs and International Development for further study. The main problem with private members’ bills is that they cannot commit government funds, which severely hampers Bill C-300’s effectiveness, said Murray Rankin, a partner with law firm Heenan Blaikie LLP. “It is a laudable effort,” said Rankin. “But it is flawed from a procedural point of view.” “The bill does not even include the rudiments of due process, such as the

right to hear the other side,” Rankin added. “And the potential for the politicization of the entire process is quite high.” If the new measures become law, complaints against Canadian mining companies are supposed to be reviewed by two ministers who, according to Rankin, would almost certainly pass the job on to subordinates. Furthermore, since Canadian governments change frequently, so would the party affiliations of ministers charged with conducting those reviews, which means that they would be handled inconsistently. To top it off, the bill foresees no appeal process. Other participants in the open forum acknowledged Bill C-300’s weaknesses, but cited it as an example as a good first step forward, an opinion shared by MacKay. “The sanctions foreseen for those who violate the guidelines are very weak, small slaps on the fingers really,” said MacKay. “But you have to start somewhere.”

To close the day of public dialogue, CIM executive director Jean Vavrek and James Cooney, retired vice-president, international government affairs for Placer Dome, invited delegates from academia and business to suggest research opportunities or collaborations that could advance and improve CSR initiatives. For more information on material generated at the conference or questions related to CBERN contact Hilary Martin (hmartin@cbern.ca) CIM www.cbern.ca

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August 2010 | 17

upfront EDUCATI O N/ O UTREAC H by Gillian Woodford

Building awareness “Ounce by Ounce”

Photo courtesy of IAMGOLD

IAMGOLD rewards enterprising staffers with gold

Each process in the workshop was specifically designed to take employees through generating, sorting and, finally, recommending the top ideas that had a high-impact outcome but used low resources. Top seven reported to management for consideration.

hen IAMGOLD grew from a small holding company of 24 employees in 2005 to a full-fledged mining outfit of 2,800 practically overnight, it needed a way to connect with its new staff — fast. The company’s communications department devised an ambitious employee education road show, jetting senior executives to all of its sites to give presentations on what IAMGOLD does, including why and how, to give workers a view of the bigger picture. Workshops and brainstorming sessions followed to expose upper management to the finer details. And to get people really motivated, the staffers who came up with the best business ideas at the sessions would win an actual ounce of gold. “We wanted all our employees to understand the rudiments of the business,” explains Karen Jury, director of communications, who is largely responsible for getting the

18 | CIM Magazine | Vol. 5, No. 5

program, dubbed “Ounce by Ounce,” off the ground. “By teaching employees the basic business drivers in gold mining, and all the ounces of effort required to produce an ounce of gold, we believed employees would become more engaged and enrolled in participating directly as business partners. The objective of Ounce by Ounce was to find a way for employees to contribute in meaningful ways to the success of our business. So the business literacy program was developed to educate and engage employees, thereby establishing an entrepreneurial, business-oriented culture.” Everyone at IAMGOLD — from miners to accountants to warehouse staff — participated in the initiative. As with most companies, employees knew their own jobs but did not necessarily see how they fit into the larger context. “IAMGOLD is not vastly different from other companies,” says COO Gord Stothart, who took part in the Ounce by Ounce tour. “People in the trenches are just that — they’ve got their heads down. They sometimes have little appreciation of the underlying business of what they’re doing.” Stothart feels that most companies are missing the opportunity of benefiting from a diversity of people thinking about problems. “If you only have managers working on issues, you’ll only get managers’ solutions,” he says.

Gold 101 Ounce by Ounce really took employees through the entire business process, from the ground up. “We covered basic business drivers such as Finance 101 and Mining 101,” says Jury. Our senior executive team spoke on topics ranging from ‘what’s a strip ratio?’ and ‘what are the cost drivers?’ even if those things didn’t seem immediately relevant to everyone’s job. We wanted to educate and engage all IAMGOLD employees in the business so that they could directly impact and influence their individual sites’ objectives which, consequently, would contribute to the achievement of our corporate objectives.” Twelve senior executives (including the CEO and COO) were involved, travelling in pairs or trios to all of IAMGOLD’s sites, and gave presentations to small groups in the morning, during which they would explain the company’s business in terms that everyone could grasp. This was not always so easy, says Stothart. Sometimes the corporate people had to step outside their own preconceptions about what others knew. For instance, the seemingly simple exercise of explaining what a share is was much tougher than anyone imagined. “When we finally landed on a con-

upfront EDUCATION/OUTREAC H

ceptual description that worked — well, that was very gratifying,” says Stothart. On top of that, says Jury, they were working in several different languages and confronting challenges more fundamental than cutting through business jargon. “We went to places where literacy was an issue and where many employees had not met the most senior individuals in the company,” Jury explains. In these instances, presentations were primarily verbal and utilized many visual aids. In the afternoon, facilitators nominated by mine managers ran workshops with smaller groups. These workshops included brainstorming sessions in which employees would try to come up with ideas that would have a big impact on productivity but that could be implemented at a low cost. Out of the hundreds of ideas generated per workshop group, the team would vote on the best seven ideas, which were subsequently presented to the executive team for consideration towards implementation. These were then scored on a 40-point scale; ideas that scored higher than 30 were sent on to upper management for consideration. Approximately 20,000 business ideas were generated, with 132 accepted for initial assessment. Over and above these Ounce by Ounce sessions was a contest in which employees were invited to submit additional business plans and, if implemented, they would be awarded an ounce of gold. So far, six individual plans (over and above the workshops) have been implemented and six corresponding ounces of gold have been awarded to the employees who came up with them.

Cost cutters The program cost the company approximately $566,000 ($211 per employee) to educate and enrol 2,684 employees and has produced over $2 million annually in potential cost savings, says Jury. Regarding the “Win an Ounce of Gold Contest,” the overall best idea came from Caroline-Michèle Laplante, a geologist at the Mouska Mine in Quebec. Her suggestion — for the company to purchase a portable XRF analyzer rather than send samples to outside labs — will save $30,000 in the first year and $80,000 in each subsequent year. The XRF analyzer performs lithogeochemical analyses of the chemical composition of rock to facilitate core logging and help determine where to drill. IAMGOLD geologists used to send samples out at a cost of $70 per sample and had to wait up to a month to receive the results. The XRF analyzer can produce an instant analysis right in the field. Other results, though less tangible, had big effects, both on attitudes, morale and on the bottom line. Jury recalls an exchange at the Rosebel Mine in Suriname where the costly effect of late or incorrect invoices was explained. “A gentleman stood up in the session and said, ‘Nobody ever explained that to me before and its impact from site to corporate,’” she says. Another simple idea from Rosebel —

switching from plastic to metal cutlery in the cafeteria — has saved the company $60,000, says Jury.

Open doors Sophie Dufresne, senior project leader for continuity improvement at Rosebel, and an Ounce by Ounce facilitator, says the program has really changed things at her work site. “Communications have improved at all levels. I see employees going directly to managers with a problem,” she says. “Before, maybe they’d do that with someone they felt comfortable with. It’s created an atmosphere of openness and trust.” Stothart has seen this as well. “People are more comfortable coming up to me and being forthright with their concerns,” he says. This openness has brought some surprises, too. Stothart says he was taken aback by the number of employees who thought former CEO Joe Conway was the owner of IAMGOLD. “They were very interested to know that he was an employee like everyone else,” he says. In later workshops, Dufresne says an exercise called the Cost Game revealed to national employees where the revenues generated from Rosebel were distributed, as many employees thought that IAMGOLD corporate received all profit. “The idea was to show where the money goes, from paying royalties and taxes, to power costs, to labour and so on,” she says. “The perception from national employees changed from thinking corporate in Toronto was solely benefiting to understanding where the profits were generated, and that much of the monies earned stayed in country. By the end of the program some of the national employees had changed their outlook. “Some came to my office and said, ‘Really? I didn’t know the government received so much of our profits,’” she says. “All they saw was the report of dividends in the newspaper.” Stothart says meeting and exchanging ideas with the entirety of company’s employees was enjoyable and insightful. “I was able to listen beyond the questions being asked and ferret out the issues at play,” he says. He was also able to connect with staffers on a more personal level. “At the close of each session, we’d have a social hour and we’d have a chance to interact with the employees one on one.” He was awed by the diversity of IAMGOLD’s employees and the cultures and languages they bring to the company and says the whole experience, though gruelling at times, was “very exhilarating.” The first run of Ounce by Ounce lasted 18 months and wrapped up in December 2009. “It was a Herculean task,” says Jury. So would IAMGOLD employees recommend this kind of exercise to other companies? “Most definitely,” says Dufresne. Stothart agrees: “Yes — but only if you’re willing to listen. It was not only a program in which we educated employees, they in turn taught the executives a lot about what really is going on at the mine site level. CIM www.iamgold.com August 2010 | 19

upfront SUSTAINABILIT Y by Peter Diekmeyer

Canada Lithium Corp. powers it up Photo courtesy of Canada Lithium Corp.

Val-d’Or property could be key to helping meet global demand for lithium

Drilling supervisor Claude Jacques at Canada Lithium Corp.'s property near Val-d'Or.

he roar of pistons, it seems, is drowning out the pleas for people in this country to reduce their greenhouse gas emissions by driving less. Between 1990 and 2007, the increase in emissions from private vehicles far outpaced population growth in Canada. For the time being, the best response to confronting mounting automobile emissions is coming from advances in battery technology powering vehicles rather than changing the behaviour of the people at their wheels. The sales of hybrid cars have been growing steadily and that spells opportunity for Peter Secker. Secker is president of Canada Lithium Corp, which is currently raising funds to finance the setup of an extraction facility at a property 60 kilometres north of Val-d’Or, Quebec. The company bought the open-pit lithium carbonate development in May 2008 from IAMGOLD, for six million shares and $350,000 in cash. This past spring, Secker stopped in Montreal to try to drum up some of the $148 million he estimates he will need to develop the site. “We are very optimistic,” says Secker, regarding the project for which prefeasibility work has been done. The study, prepared by Montreal-based BBA Inc., estimates 2,950 tonnes per day production using conventional open pit methods with an estimated 4.26:1 stripping ratio. The initial mining plan pegs the mine life at just under 15 years, although a NI 43-101 resource estimate released in March revealed that the project has measured and indicated resources of 31.6 million tonnes grading 1.11 per cent and an

20 | CIM Magazine | Vol. 5, No. 5

additional inferred mineral resource of 38.9 million tonnes grading 1.12 per cent. Those new figures could support annual production of 40 million pounds of battery-grade lithium carbonate for at least 30 years, says Secker. The processing design proposed would rely on conventional crushing, grinding and flotation to produce spodumene and a 6.5 per cent lithium carbonate concentrate. A feasibility study is currently underway and if all goes well, the company expects commissioning to be completed by 2012. “All the pieces add up,” says Secker. “Lithium demand is expected to be strong during the coming years. Val-d’Or would be a relatively low cost operation, in a mining friendly province, and the resource base there is impressive.”

Lithium batteries: a growing power source Although lithium is also used in greases, glass and ceramics as well as aluminum, Secker’s main interest is in its potential in the battery market, which is growing by leaps and bounds. According to Secker, lithium contains three times the energy density of nickel hydride but only weighs about a third as much. Furthermore, lithium batteries can operate at extremely low temperatures (as low as -60 degrees C) and can last between 10 and 15 years. As a result, lithium batteries, long used in a variety of products such as cell phones, computers and power tools, are increasingly finding new things to power, including chainsaws, wheelchairs and scooters. Secker says he anticipates the biggest source of future lithium demand could come from the car industry. Steadily growing environmental concerns, brought starkly to the fore in recent months as a result of the massive oil spill at BP’s Gulf of Mexico facility, are driving customers into more carbon-light alternatives.

A low-emission alternative More than 300,000 hybrid cars were sold in the United States last year alone, and as unit production increases and government subsidies pour into the market, costs will almost certainly come down in the coming years. For example, the U.S. government alone has announced US$27.6 billion in loans or grants to car and battery makers. According to

upfront SUSTAINABILIT Y

Secker, the auto industry, attracted by the performance of the Chevrolet Volt, which travels at the cost equivalent of 2.5 litres per 100 kilometres, is slated to have 25 lithium batterypowered car models on the market by 2012. Not surprisingly, industry suppliers have been quick to jump on the bandwagon. In late May, Magna International, Canada’s largest auto parts maker, announced that it would invest up to $600 million on new plants to make lithium-ion batteries.

A promising property Nissan Motor Co. CEO Carlos Ghosn expects 10 million electric vehicles to be sold annually by 2016. The batteries for those vehicles will have to come from somewhere. The biggest lithium producers during coming years will be brine deposit facilities operated by SQM and Chemetall in Chile and by FMC Chemical in Argentina. However, none of those sites are located anywhere near the U.S. mainland, which raises security of supply concerns among some industry watchers. “Because a spodumene and lithium carbonate facility had already operated (at Lithium Canada’s Quebec site) between 1955 and 1965, the property already has excellent existing infrastructure including a one kilometre paved road, rail

facilities and electric power,” says Secker. “Val-d’Or is also a big mining town so there is a readily available supply of skilled labour.” What makes the Quebec site particularly attractive says Secker, is the high grades and relative pureness of the mineralization found there, which is well-suited for use in high-grade lithium carbonate used in car batteries.

Getting the product to market This spring, Canada Lithium Corp. also hired long-time industry veteran Peter Woodhouse as project manager. Woodhouse brings to the table close to 30 years of engineering, procurement, construction and management expertise, in both resource development and mining operations. Once production gets underway, Secker expects that finding clients and shipping the product to them will be the least of his problems. “We are a just a short 14-hour drive from Detroit, so customers will have considerable security of supply,” says Secker. “We have also negotiated a marketing agreement with Mitsui to help sell our product in Asia where the bulk of battery operated vehicles will be made in coming years, so the fit is excellent.” CIM www.canadalithium.com

August 2010 | 21

upfront N E W F RO N T I E R S by Dan Zlotnikov

Down to earth Photo courtesy of NASA JPL

Bringing NASA’s Mars’ rover to the mine site

The Athena rover is one of a range of extra-terrestrial exploration platforms that have the potential of meeting mining challenges.

f you could get your very own Mars rover, what would you do with it? In essence, this is the question at the heart of a new project at Barrick Gold Corporation. For the last 18 months, Barrick has been partnered with the NASA Jet Propulsion Lab (JPL) and Peck Tech, a Montreal-based mining technology consulting firm, to adapt a Mars Rover for use at mine sites to explore the potential for advances in areas such as safety, efficiency and geotechnical monitoring. Testing of the technology is expected to start in the next quarter, says Andrew Scott, director of mining information technology at Barrick. “We see a lot of opportunities in the application of technologies that have been, or will be, developed for space exploration,” he explains. “The harsh environment they have to contend with, the energy limitations, the navigation challenges they have to overcome — how they solve these problems can help us with our problems in the terrestrial sense. Even the experience in robotics and the algorithms they’ve had to develop, demonstrates the robustness we can apply directly to mining.” The subject of the first round of tests is the Athena rover, a six-wheeled Mars rover prototype, explains Issa Nesnas, group supervisor at NASA JPL and principal investigator for the collaboration. The goal is to collect proof-of-concept data

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and demonstrate the capabilities of the existing designs, says Nesnas. The results, while likely not a perfect fit for Barrick’s intended use, will then serve to guide design adjustments and further testing. NASA is looking at this partnership as a multi-year collaboration, with multiple projects taking place simultaneously; Athena is just the beginning. “We have a fleet of rovers, for different types of applications,” Nesnas explains. “We have rovers that can carry different payload sizes, rovers that are wheeled and ones that are legged, and rovers that can traverse 90 degree cliffs.” The different platforms can be fitted with a wide range of equipment. Because NASA’s original mission for the rovers involved prolonged periods of operation on other planets, the agency has put a lot of effort into miniaturizing its sensing equipment, minimizing both weight and power demands. Now, terrestrial mining is set to reap the benefits of these efforts: smaller rovers can fit into more places, and low power draws mean they can go farther and stay out longer without the need for fresh batteries.

Ground-penetrating radar One such miniaturized sensor package is the groundpenetrating radar, or GPR. The upcoming testing will work on establishing the possible applications and advantages of the technology to a mine operator. But GPR is already showing promise for the industry, says Peck Tech CEO Jon Peck. “In its basic commercial form, GPR has been used to identify buried pipes and cables in urban environments prior to construction,” he says. “But in the world of JPL, GPR is used for detecting water and density differences on the surface of planets and at landing sites, prior to putting down a rover.” The technology’s been miniaturized, it runs on extremely low power. It can survive a very wide range of temperatures and operate under very harsh conditions. And you look at all of these constraints and go, ‘Wow, that’s mining.’” One of the major challenges that Barrick and many other open-pit mines have faced over the years, Peck adds, is the impact to highwall stability caused by standard drilling and blasting operations. With a rover-mounted GPR, the mine operator may gain a better understanding of changes to the rock structure, using the radar to identify the presence fractures that may have resulted from blasting.

upfront NEW FRONTIERS

“If you can do that without having to drill and geophysically log the holes,” says Peck, “you can enable detailed identification of the rock mass characteristics for a block of ground with few additional costs and effort.” And, of course, being able to get the data without having to send humans into high-risk areas is a major advantage as well. Nesnas adds that another rover, the Axel, is being considered for later stages of testing. The Axel is designed to traverse very steep terrain, to the point of being able to climb down highwalls and across intact and blasted benches in an open-pit mine. “Interestingly enough, based on some of the images we have of the surface of Mars, there’s an analogy between the kind of layering in open-pit mining and the terrain we’ve seen on parts of Mars’ surface,” says Nesnas, “so this platform could be quite suitable for mining use.”

Finding an application for the tool Since the first generation of rovers was built in the 1970s, the technology of the extraterrestrial vehicles has steadily advanced. The result is a rover that is far more aware. For terrestrial applications, a combination of GPS and inertial sensors ensures it always knows where it is. Multiple optical sensors allow the rover to find a path through rough terrain and also provide visual odometry information as another positioning option, and smart components keep it informed on which tool is attached to its manipulators at a given time. This degree of interconnection and onboard processing capacity mean the rover can do more independently. One of the developments under discussion will have the rover collecting and analyzing mineral samples with little to no human supervision. “There’s a whole suite of sensors being developed that could be applicable to the mining domain — it’s just a question of getting the right people connected,” says Nesnas. Barrick is also exploring the potential of JPL’s hardened, high-impact sensing systems. “Ideally, we’d like to get the sensors down the drill hole,” says Scott. Currently, in order to collect blast movement data, mining companies must drill a second hole, since no sensor can survive being in the same drill hole as the blast material. There is a possibility, Scott says, that the sensors NASA has used in space will prove hardy enough to survive in immediate proximity to the blast. “Drilling that second hole means additional cost, additional time,” he explains. “If we didn’t have to do that, it would be a huge benefit.” All this technology sounds great, but it also sounds expensive. Not so, says Peck. “Putting a fully autonomous

mine together would cost millions upon millions of dollars, but JPL has some very basic technologies that could be applied tomorrow to mining programs, and they are quite straightforward,” he says. Once the technology is adapted for and fielded in mining applications, Nesnas adds, it can be commercialized and licensed to private companies to manufacture the designs through the California Institute of Technology (Caltech). JPL is a federally funded research and development centre that is managed by Caltech for NASA. Interest is already increasing, Peck says, with a few large mining companies ready to enter into discussions with JPL representatives regarding applicable technologies.

Taking the long view When it comes to Barrick’s balance sheet, Scott readily admits that no short-term benefits are expected from the project other than the GPR work. But improving the next quarterly statement is not the goal for this project; Barrick has already invited a number of other mining companies to participate in the collaboration and, at the moment, has no plans to keep any of the developments for its own exclusive use. “I think there are plenty of opportunities in JPL’s space technology that the industry as a whole can benefit from,” Scott explains. “Even if these early projects aren’t successful, we’ll continue to build upon the relationship.” Developing solutions for the long term is Barrick’s top aim for this collaboration. “If you look at the projects that will be coming online in 20 to 30 years’ time, some of those are going to require new technology to be possible,” says Scott. CIM www.jpl.nasa.gov

August 2010 | 23

upfront Q&A by Eavan Moore

Expanding resources to take on enduring challenges New PDAC president committed to building bridges and capacity he Prospectors and Developers Assocation of Canada (PDAC) welcomed its new president in March. Scott Jobin-Bevans is the president and CEO of Ontario-based gold exploration company Treasury Metals Inc., as well as director and founding partner at Caracle Creek International Consulting Inc. In his role as a director at PDAC, Jobin-Bevans co-founded the Student-Industry Mineral Exploration Workshop (S-IMEW), an annual two-week mineral exploration and networking workshop for budding geoscientists. CIM recently caught up with him to learn about his plans for his twoyear term and beyond.

CIM: In 2006, PDAC set out to attract more people to the exploration sector, expand PDAC’s role internationally, secure access to land, and formulate a strategy for corporate social responsibility (CSR). Where has PDAC made the most, and least, progress so far? Jobin-Bevans: We’ve made significant progress in CSR. We introduced “e3 Plus: A Framework for Responsible Exploration” at PDAC 2009 and we’re out there in the industry to promote CSR and good practices in exploration or mining operations. We’ve done that both on an international level and here at home. The free entry and access to land issue is still a big challenge. In Canada, the effort to create green spaces tends to take away large tracts of land from the exploration process. The challenge fundamentally rests on educating the average citizen about the impact of mining operations and how important they are to the economy. CIM: In your new role as president, what changes do you hope to bring to the organization? Jobin-Bevans: I don’t foresee major changes. We have the resources now to get more proactive on some of our issues. Over the last half-dozen years, our finances have expanded more than our operations. We’re seeing good revenues from our convention and we don’t anticipate that will change much, so, going forward, we can now plan with a robust balance sheet. Another change would be building more 24 | CIM Magazine | Vol. 5, No. 5

capacity at PDAC itself; I think there’s room to expand our offices and staff. CIM: What project are you most excited about? Jobin-Bevans: The First Nations/ Aboriginal community engagement and education work we’re doing in Ontario, in particular, is very interesting. It’s a very complicated challenge but I think there’s a lot of goodwill out there between the communities and our industry to work together to continue building this relationship. I have worked in northern Ontario and have a project in northwestern Ontario, so I have a vested interest in working with the northern communities. The big challenge is trying to make sure we keep our door open to work with First Nations groups and we don’t let the government, federal or provincial, mess that up by allowing a wedge to be driven into our relationship. Those communities are where the mining and mineral exploration industries will find our future employees. CIM: S-IMEW is now in its fourth year. What lessons have you learned over this time? Jobin-Bevans: What we have learned from the participants is surprising. These students are usually in their third or fourth year of geoscience, but some of them have actually come in still undecided on their career, and had some very negative comments about the mining industry at the start of the two weeks. At the end of the workshop, we canvass the students, and consistently find they have changed their minds and attitudes about the industry. In many cases they’re shocked about how responsible our industry is, how safe it is and how important it is to this country. I think this demonstrates that the way students are educated in this country doesn’t give them practical hands-on experience or a balanced view on the industry. Their perception of mining comes from a newspaper or the web. As we know, TV reports, newspapers and the Internet sometimes give a bias. When you actually visit a mine and see how things are done, the reality starts to hit home. I think they all leave with more appreciation for what mining does for the economy.

upfront Q&A

CIM: How else will you usher students part of the accreditation system would into this sector? be recognized for their efforts. Jobin-Bevans: In the last five years, we’ve built up student attendance at CIM: CSR has been prominent in the the PDAC convention from under news lately, with Bill C-300 in Parliament 100 to over 1,000. These students that would require investigations of fedaren’t just coming to the convenerally defined abuses. In addition to the tion, they’re actually becoming voluntary principles that PDAC has members. worked to encourage, do you see a place We do it by offering more profor sanctioning/penalizing companies that gramming and financial support. do not adhere to responsible practices? Last year, we sponsored over 250 stuJobin-Bevans: I think voluntary complidents to come to the convention, ance with best practices is the way we’ve supplementing their travel expenses been doing it and the way we should and accommodations. We also have continue to do it. During the CSR over $10,000 available every year to roundtables that preceded Bill C-300, sponsor student field trips at schools the consensus among all stakeholders around the country. We’re trying to and groups involved was that an increase that sort of funding. ombudsman would be set up to handle I think it falls not only on the juncomplaints from anywhere in the world. iors, who don’t have a lot of capital, Left alone, our industry does a very but on the cash-flowing mid-tier and good job in self-regulating best practices major producers out there to supand earning its social license to operate. — S. Jobin-Bevans port the youth who are considering a You’re not going to be financed for projcareer in our industry. We need a ects if you’re being irresponsible or more collective approach to support you’re getting bad press. students and to not only bring them into the geosciences but to retain them by keeping them working. When things CIM: In carrying out PDAC’s objectives, what roles do you went bad in the old days, senior mining companies would expect members to play? keep hiring students anyway for exploration. Now, they Jobin-Bevans: On Bill C-300, we would like to see particigenerally don’t do that, so we have to work together to pation in our letter-writing campaign to MPs and a real ensure that the industry continues to have the number of solidarity among them to defeat the bill. In my 20 years in skilled professionals it needs. this industry, C-300 seems to be the first opportunity I’ve seen to rally as an industry around a national cause. CIM: PDAC’s e3 Plus initiative has established a framework for The other way is to try and talk up our industry abroad. socially responsible exploration, with reporting and verification We’ve always failed ourselves as an industry by not schemes in development. How do you plan to bring companies promoting ourselves very well when good things happen. on board once the initiative is fully developed? Jobin-Bevans: It’s always going to be a work in progress; the CIM: PDAC recently commissioned a study showing junior next addition to e3 Plus will be the accountability section, exploration companies had experienced a sharp financing which includes performance criteria, reporting guidelines drop in the economic downturn, followed by a rebound in and verification. It’s our objective to introduce the first ver- 2009. Are you concerned by the state of financing for explosion of this at the PDAC convention in 2011.We’ll have an ration projects? awareness campaign to let the industry know that it is out Jobin-Bevans: It is starting to come back. There’s not a full there and then a training program of international scope. recovery yet, that’s for sure. The flow-through tax credit The initiative will provide performance indicators against allows juniors in Canada to raise money, whereas in other which companies can compare their practices with others, jurisdictions around the world they couldn’t raise any as well as reporting criteria, so they can then share their money. It did help us through this. There’s still a concern results with their stakeholders. out there; they’re not loosening the purse strings as aggresThe PDAC is contemplating a certification system like ISO sively as they’ve done in the past. Companies are pretty such that companies who want to be recognized and certified cautious about hiring. But you are seeing a 100 per cent with respect to e3 Plus can make the business decision to do turnaround from this time last year in terms of people so. The e3 Plus guidelines would need to be followed and a doing exploration work. CIM reporting and verification process would be required to maintain their accreditation. Those companies that chose to be www.pdac.ca

“

“In my 20 years in this industry, C-300 seems to be the first opportunity I’ve seen to rally as an industry around a national cause.”

“

August 2010 | 25

Photo courtesy of MiHR

human resources

Future prospects

An exceptional worker — women remain under-represented in mining.

Creative solutions a must to avoid the looming HR deficit By Marlene Eisner

rett Dickie fell into mining as a matter of chance. As a chemical engineering student at the University of Saskatchewan, Dickie knew nothing about mining until a summer job at Cameco opened his eyes to a whole new world. “We don’t really have any knowledge of mining coming out of school because we are really focused on oil and gas,” says the 27-year-old, who is now an engineer-in-training with AMEC. “I took the Cameco job to explore my options, to see what’s in Saskatchewan and what is involved. It was a real eye-opener. I didn’t know it was such a big industry.”

The outlook In 2006, the Mining Industry Human Resources Council (MiHR) released “Prospecting the Future: Meeting Human Resources Challenges in the Canadian Minerals and Metals Industry.” The conclusion was simple: the future of the mining industry depended on finding enough 26 | CIM Magazine | Vol. 5, No. 5

qualified people to replace retiring workers in a steadily aging workforce. Four years later, an update to that report, to be released by MiHR this September, indicates not much has improved. If anything, the problem has become more serious. And the challenge of tapping into the next generation of highly qualified professionals like Dickie is more vital than ever. “The industry is absolutely facing a labour shortage, and it is more significant than we’d estimated in 2005,” explains MiHR executive director, Ryan Montpellier. “The forecast for 2010 to 2020 is that we will need more than 100,000 new workers, mainly due to workers retiring, so there is a very substantial challenge.” One avenue of recruitment was closed, at least temporarily, in June as Citizenship and Immigration Canada scratched mining engineers from its list of eligible skilled-worker visa applicants. The change reflects the short-term slackening of demand due to the recent downturn in the market.

human resources Recent statistics indicate that more than half the current mining workforce is 45 years of age and over, with the average retirement age being 59, compared to 62 for other industries. This means 21 per cent of those currently employed will be eligible to retire in two years. “Those people will have to be replaced,” says Montpellier. Attracting enough qualified workers to fill those jobs is the challenge; the solution is in finding new ways to do so.

working in finance and administration. If you look at primary roles such as managers, production miners, skilled tradesmen, electricians, equipment mechanics, heavy machine operators — the numbers fall to under three per cent. As much as we’re doing, real progress is masked to some extent. However, there is a huge potential workforce.” A workforce that says it is ready and able, if only it were more accepted.

Getting the message out

First Nations and first generations

Stories like Dickie’s resonate with Chuck Edwards, director of metallurgy for AMEC Americas Ltd., and have prompted him to take action. CIM’s president-elect is part of a team trying to introduce mining and mineral processing courses at the University of Saskatchewan. “My own background is chemistry and chemical engineering,” says Edwards. “I didn’t give mining a 10-second thought until I went to work for Inco. I was looking for a job and Inco needed someone who understood enough about surface chemistry to do research on flotation, but it was a fluke. As an industry, we do not place enough effort on communicating with all the engineering disciplines to point out to them that there are many jobs in mining for their discipline.” One solution, says Edwards, is to set up more CIM student chapters at universities and invite mining and minerals industry engineers from all disciplines to the meetings to speak with the students. This collaborative effort was successful in CIM’s recent attempt to generate interest in a student chapter at, the University of Saskatchewan. “One hundred students came out from other areas of engineering,” he says. “We wanted them to know that there are jobs in the mining industry for them. The next step is to hold more meetings. CIM student chapters have fallen away and CIM has decided to re-invigorate and restart them.” MiHR is also reaching out to engage young people. Through a web portal, visitors can access a mentoring program, a speaker’s bureau meant to connect mining professionals with curious audiences, as well as a Facebook page and YouTube channel with videos on mining careers. MiHR’s efforts, explains Montpellier, are not limited to the computer terminal: “We speak to career counselors and meet with educators to talk about modern mining.”

Often it is difficult to attract workers to remote areas, so it makes perfect sense to train the people who live in the communities close to mines to be valuable additions to the long-term workforce. This is the thinking behind the recently launched British Columbia Aboriginal Mine Training Association. Industry, along with government, Aboriginal communities, training institutions, the Association for Mineral Exploration in BC and the Mining Association of BC, have created the program that will initially be a three-year partnership to train and help find employment for Aboriginal people. Hard Creek Nickel is one of six mining companies that have agreed to find jobs for graduates of the initiative. The company is in the early development stage of its Turnagain project, a giant disseminated nickel-sulphide deposit located in north-central BC just east of the community of Dease Lake. “Our reason for being involved early on is to start engaging and learning about the local Aboriginal workforce,” explains Ed Beswick, manager of environment and Aboriginal affairs at Hard Creek. “We will need good employees during our development and mining, and this initiative really provided an important opportunity for us.” Beswick adds, “so far most of the help we have had from the local communities like Dease Lake and Watson Lake in the Yukon have been seasonal, but as the project advances these jobs will become permanent and training through the association will be custom fit for mining.” The other areas to tap, such as youth and new Canadians, also require innovative ways of thinking, says Montpellier. Currently, 8.7 per cent of those employed in mining are comprised of new Canadians, compared to 21 per cent of the entire labour force. “The mining industry is going to have to do a lot to make itself more attractive and appealing to attract this new source, which is immigration,” he explains. “It’s a question of organizations valuing diversity and becoming more inclusive of other cultures and other work styles. It’s not a cookie-cutter approach. It is a challenge to bring the new Canadians out to where the mines are located.” The same can be said for the youth factor. An increasing number of young people are leaving rural settings to embrace an urban lifestyle. How can the industry make a remote mine location seem an exciting choice? “The challenge is convincing people what the mining industry is about; that mining is a viable career,” says Montpellier.

Moving in new directions It is time to think outside the hiring box, says Montpellier. Some groups not traditionally found in great numbers in mining, such as women, Aboriginal Peoples, people with disabilities and new Canadians, need to be pursued with a greater effort and understanding. Some progress has been made. The number of women in mining has been steadily increasing: it is currently at 14 per cent, an increase from 10 per cent in 2005. But numbers can be deceiving. “It’s going in the right direction,” says Montpellier, “until one drills down and takes out the number of women

August 2010 | 27

human resources Ramping up female employment A January 2010 report penned by Women in Mining (WIM), in conjunction with MiHR, titled “Ramp-UP: A Study on the Status of Women in Canada’s Mining and Exploration Sector,” aimed to evaluate the gender issue. Female employees, students, employers and educators were interviewed on issues such as working conditions and retention, work-life support and opportunities for advancement. Perhaps the most telling result was how far apart employees and employers were on recognizing industry barriers for women. Two-thirds of the women interviewed said barriers still existed for them to be successful in the industry, compared with one-third of the employers that acknowledged barriers existed. The report offered recommendations to improve the situation. Some of these included creating career development opportunities for women working within mineral organizations; meeting the real-life needs of women by offering flexibility in work schedules; debunking myths surrounding what women can and cannot do in the field; encouraging women to pursue careers in the sector through women’s networks and industry associations; and promoting a positive image of mining to more women’s associations and groups to heighten awareness of career opportunities. “I think one of the easiest things for employers to do when they are advertising positions is to include a specific invitation to women to apply,” says WIM president MaryAnn Mihychuk. Similar gestures need to extend into the workplace, she adds: “There are prime, wellpaid jobs working underground, but facilities must be in place for women at the job sites.”

Left, top to bottom: Programs such as the British Columbia Aboriginal Mine Training Partnership are designed to draw more of the First Nations population to the industry; Attracting young people to mining operations will have to run against the current of migration to urban centres; Retiring workers represent a serious challenge to HR departments across the industry. All photos courtesy of MiHR

28 | CIM Magazine | Vol. 5, No. 5

human resources Working toward a unified plan Murray Odesse, director of recruitment for Goldcorp, says his company, which has 10,000 employees in Canada, the United States, Mexico, Guatemala and Chile, has had reasonable success in filling jobs in all areas, from recruiting new graduates to bringing in geologists, engineers and miners. To find their employees, the company uses a mix of direct marketing, outreach to universities and agencies when they “need to find someone to fill more niche positions,” explains Odesse. In spite of these successes, Odesse recognizes that filling the demographic gaps left when the numbers of senior professionals begin to retire will be a major challenge, not only for his company, but for the industry as a whole. “Some of the things MiHR identified in 2005 are still very real,” he says. “The demographics and an aging workforce, that hasn’t changed.” Although emerging technologies have been able to solve some of the manpower problems, people are the mainstay of the industry, says Odesse. “We still need to maintain our diligence in attracting people into the industry and keeping them there,” says Odesse. The two areas his sector is feeling the crunch in are engineering and in the mining workforce, which he says is “generally an older, more experienced workforce. If you look at the demographic chart, in many areas it’s skewed to the worker who will retire in a short window of time.” Individual companies

are doing their best to attract and retain workers, he says, but because everyone is doing their own thing, there is no way of knowing if it is working as well as it could.

Are we doing enough? “It’s tough question to answer,” says Montpellier. “There is a lot being done by a number of organizations, but more can be done.” That would include changing the public’s perception of what mining is, which is generally a negative picture fueled by a blend of antiquated ideas and bad press. “It’s unfortunate that whenever mining makes the news, it’s because there’s a labour dispute or a fatality; none of the successes are reported,” Montpellier says. “We need to get the message out, promote the modern mining industry and dispel the negative myths. We’re making progress through our Explore for More brand, but we simply don’t have the resources to do a huge national careers-in-mining campaign.” “The reality is that mining is extremely modern,” says Odesse. “I go underground and I’m amazed at the technology there. It’s a very different work environment than peoples’ perceptions would suggest. It’s very much a 21st century job.” CIM acareerinmining.ca wimcanada.org bcamta.ca

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August 2010 | 29

Photo courtoisie de RHiM

ressources humaines Des programmes tels que le Aboriginal Mine Training Partnership de la Colombie-Britannique sont conçus pour attirer une plus grande partie de la population des Premières nations dans l'industrie.

Une mine de potentiel La créativité : un incontournable pour trouver des moyens d’éviter une pénurie imminente de ressources humaines

tudiant en génie chimique à l’Université de la Saskatchewan, Brett Dickie ne connaissait rien à l’industrie minière avant d’occuper un emploi d’été à Cameco. Un tout nouveau monde s’est ouvert à lui grâce à cette expérience. « J’ai accepté l’emploi à Cameco pour voir quelles étaient mes options et pour mieux connaître la Saskatchewan et ce secteur. Ça m’a littéralement ouvert les yeux. Je ne savais pas que cette industrie avait une telle envergure. »

Perspectives En 2006, le Conseil des ressources humaines de l’industrie minière (RHiM) a rendu public un rapport intitulé Prospecter l’avenir : relever les défis des ressources humaines dans l’industrie canadienne des minéraux et des métaux. Sa conclusion était simple : pour assurer l’avenir de l’industrie minière, nous devons trouver suffisamment de travailleurs qualifiés pour suppléer aux départs à la retraite dans un contexte de vieillissement constant de la main-d’œuvre. Selon une version actualisée de ce rapport qui sera diffusée par le RHiM en septembre, le problème s’est aggravé depuis 2006. 30 | CIM Magazine | Vol. 5, No. 5

« Nul doute, l’industrie fait face à une pénurie de maind’œuvre », indique le directeur général du RHiM, Ryan Montpellier. « Pour la décennie 2010-2020, nous prévoyons avoir besoin de plus de 100 000 nouveaux travailleurs, principalement en raison des départs à la retraite. Nous avons donc un très grand défi à relever. » De récentes statistiques indiquent que plus de la moitié de la main-d’œuvre actuelle dans le secteur minier est âgée d’au moins 45 ans. L’âge moyen de la retraite dans le secteur est de 59 ans, comparativement à 62 ans dans d’autres secteurs.

Faire passer le message Inspiré par des histoires comme celle de Brett Dickie, le président élu de l’ICM, Chuck Edwards, directeur de la métallurgie à AMEC Americas Ltd., s’est joint à une équipe dont les membres militent en faveur de l’adoption de cours sur l’exploitation minière et la minéralurgie à l’Université de la Saskatchewan. Selon M. Edwards, l’une des solutions serait d’implanter davantage de sections étudiantes de l’ICM dans les universités et d’inviter des ingénieurs de toutes les disciplines, qui travaillent dans le secteur des minéraux et des mines,

ressources humaines

Photo courtoisie de RHiM

à des rencontres où ils pourraient disemployés du secteur minier sont des cuter avec les étudiants. La première Néo-Canadiens, comparativement à 21 % de l’ensemble de la population active. tentative de M. Edwards en vue de Ce constat s’applique aussi aux susciter de l’intérêt pour une section étudiante à l’Université de la jeunes, lesquels sont de plus en plus Saskatchewan a été couronnée de nombreux à quitter un milieu rural pour succès. adopter un mode de vie urbain. Com« Cent étudiants provenant d’autres ment l’industrie peut-elle leur donner branches du génie se sont présentés », envie d’aller travailler dans une mine raconte-t-il. « Nous voulions leur faire située en région éloignée? « Expliquer savoir qu’il y a des emplois pour eux aux gens en quoi consiste l’industrie dans le secteur minier. À présent, nous minière et les convaincre qu’une cardevons organiser d’autres rencontres. rière viable les y attend : voilà le défi Les sections étudiantes de l’ICM manque nous devons relever. » quent de dynamisme; nous souhaitons Accroître l’effectif les stimuler, leur donner un second Une employée exceptionnelle - les femmes féminin souffle. » En janvier 2010, Women in Mining Le RHiM utilise un portail Web pour demeurent sous-représentées dans le milieu minier. (WIM), en collaboration avec le RHiM, joindre les jeunes. Cela dit, les efforts de mobilisation de l’organisme ne se limitent pas au a publié un rapport sur la présence des femmes dans l’incyberespace, comme l’explique M. Montpellier : « Nous dis- dustrie minière, lequel était intitulé À FOND : une étude cutons avec des conseillers en orientation et rencontrons sur le statut des femmes dans le secteur canadien des des enseignants pour leur parler de l’évolution du secteur minéraux et des métaux. Dans le cadre de celui-ci, des employées, des étudiantes, des employeurs et des minier. » enseignants ont été interrogés sur des questions comme Une nouvelle direction les conditions de travail, la fidélisation du personnel, Il est temps de sortir des sentiers battus en matière l’équilibre entre le travail et la vie personnelle et les possid’embauche, estime M. Montpellier. Ainsi, nous devons bilités d’avancement. La conclusion la plus éloquente intensifier nos efforts de recrutement auprès de certains réside probablement dans la perception diamétralement groupes de travailleurs traditionnellement peu représentés opposée qu’ont les employées et les employeurs des dans l’industrie minière, comme les femmes, les membres obstacles à l’emploi pour les femmes dans le secteur. des peuples autochtones, les personnes handicapées et Ainsi, les deux tiers des répondantes ont déclaré que les les Néo-Canadiens, et faire preuve de davantage de com- femmes devaient encore surmonter des obstacles pour préhension. réussir dans ce secteur, opinion partagée par le tiers des « Nous semblons aller dans la bonne direction », affirme employeurs interrogés. M. Montpellier, « jusqu’à ce que l’on compare nos effectifs « Je pense que l’une des choses les plus faciles à faire féminins à ceux d’autres secteurs, comme les finances et pour un employeur quand il cherche à pourvoir à un poste l’administration. Nous avons beau nous améliorer, nos pro- est d’ajouter à la description de poste une note invitant les grès réels sont occultés, dans une certaine mesure. Cela femmes à poser leur candidature », affirme la présidente dit, un énorme bassin de main-d’œuvre est à notre portée. » de WIM, MaryAnn Mihychuk. Des initiatives du genre doivent également être prises au travail, ajoute-t-elle. « Il y Premières nations et premières a d’excellents emplois bien rémunérés dans les mines, mais les employeurs doivent prévoir des installations pour générations S’il est difficile d’inciter des gens à aller travailler dans les femmes sur les chantiers. » des régions éloignées, pourquoi ne pas former les résidants de ces régions pour qu’ils constituent de précieux En faisons-nous assez? atouts à la main-d’œuvre? Voilà le raisonnement ayant « Difficile à dire », estime M. Montpellier. « Plusieurs mené à la création d’un programme récemment lancé en organisations font beaucoup d’efforts, mais il serait possiColombie-Britannique, le British Columbia Aboriginal Mine ble d’en faire plus. » On pourrait notamment penser à modTraining Partnership. Ce programme triennal est axé sur la ifier la perception qu’a le public du secteur minier, laquelle formation et l’insertion professionnelles des membres des est généralement négative; le secteur suscite en effet des peuples autochtones. idées dépassées tout en faisant les frais d’une mauvaise Nous devons également adopter une démarche nova- presse. ICM trice pour recruter des travailleurs faisant partie des autres groupes visés, comme les jeunes et les Néo-Canadiens, acareerinmining.ca/fr soutient M. Montpellier. À l’heure actuelle, 8,7 % des wimcanada.org August 2010 | 31

Photo courtesy of IAMGOLD

gold Last year IAMGOLD increased its interest in the Sadiola mine in Mali to 41 per cent.

The currency of gold Steady growth the standard for gold producers By Dan Zlotnikov

ead between the lines of a chart following record high gold prices over the last few years and you will find a number of other stories: the subprime mortgage debacle and subsequent credit crisis, fears over Europe’s deficit-ridden economies, high unemployment in the United States. With each peak, the ascending value is all the reminder you need of the role gold has traditionally played: a hedge against financial turmoil. The ongoing financial tumult is a powerful motivation for people to continue buying gold, says Charles Oliver, senior fund manager at Sprott Asset Management. Combine that with the dramatic growth of the US monetary base — i.e the printing of US dollars — and Oliver expects to see prices reach the US$2000 mark within two years. The reasons for Oliver’s high hopes for gold and, by extension, low expectations for developed nations’ economies, are numerous. To start with, despite the financial stimulus package, the US has lost eight million jobs over the past four years, and Oliver does not expect this to be reversed any time soon. Worse yet, he points out, much 32 | CIM Magazine | Vol. 5, No. 5

of the program aimed at tackling unemployment was funded with borrowed money, increasing the government’s debt load and interest payments. As the economy recovers and the Federal Reserve raises interest rates, more and more money will have to be spent on servicing this debt. The situation is similar in Europe, and not just in heavily indebted countries like Greece and Ireland. And as recent events have shown, when one country in the eurozone suffers, the pain is shared by all the others. Nor is the US out of the fire, says Oliver, pointing out that while there has been extensive coverage of the European deficits, the current situation in the United States has been largely ignored. “I’m shocked it hasn’t hit the same sort of front-page headlines,” he says. “If you look at the US, they’re going to run a deficit this year of around $1.6 trillion. Their GDP is US$14 trillion. Hey, guess what – their debt to GDP ratio is over 10 per cent too!”

Social forces Making things even worse, Oliver warns, is the looming exit of baby boomers from the workforce, ending a big

gold source of tax revenue. “In 2010 the first baby boomers turn 65. When they’re 64, they’re at their peak earning and they’re paying peak taxes. Once they turn 65 and retire, those peak tax levels turn into very minimal amounts,” Oliver explains. Another problem with aging boomers is they tend to use the healthcare system a lot. According to the US Congressional Budget Office, healthcare costs are expected to go from roughly US$800 billion to US$1.6 trillion per year in the next decade. “That’s adding another five per cent deficit to GDP right there,” he says. All of this means the financial pains of the world’s largest economies are likely to continue for the foreseeable future. This will keep people looking for alternative, more stable, investment vehicles: hard assets of all types – and Oliver is bullish on those as well – but given that gold has served the role of capital preservation tool for 2,000 years and more, Oliver expects more people than ever before will turn to it this time. In fact, Oliver suggests that US$2,000 an ounce is nowhere near the top range for gold. “I think gold may go beyond US$5,000,” he says. “I don’t know how far it will go; it all depends on the governments of this world drastically cutting their spending, and at this point in time I don’t see them being responsible and doing the right thing.”

The bright side of the coin The dreary financial situation means it is a bad time to be a Greek government employee, but an excellent time to be a gold producer. A number of Canadian operators agree. Underground operator Kirkland Lake Gold is now completing the first phase of its 36-month, two-phase mine expansion, which will allow the company to move from its current production levels of 50,000 ounces per year to between 90,000 and 100,000 ounces this fiscal year. The second phase, says director of investor relations Lindsay Carpenter, will roughly double that figure again, with a fiscal year 2013 target of 180,000 to 200,000 ounces a year. And, she adds, the mine expansion program is currently proceeding ahead of schedule. Mid-tier operator IAMGOLD, with eight gold producing mines, has also been growing. Despite having reached the end-of-life stage at two mines in the past two years, the company has maintained its nearly one-million ounce production levels by completing a major expansion and introducing significant operational enhancements at its Rosebel Mine in Suriname. That mine’s 2010 attributable production is expected to exceed 380,000 ounces. The company’s newest mine, Essakane, has just been commissioned and is expected to produce more than 500,000 ounces over the next 18 months. Right, top: Gold pour at Goldcorp's Red Lake Mine in Ontario; bottom: Goldcorp aims to boost production to more than 3.5 million ounces over the next five years. A worker finishes doré bars at Red Lake. Photos courtesy of Goldcorp

August 2010 | 33

gold IAMGOLD is also continuing exploration at a rapid pace, says executive vice-president and COO Gordon Stothart. “Among companies our size, I think we are certainly among the more aggressive for exploration,” he says. “Our exploration budget for this year is $35 million for greenfields and another $43 million for brownfields exploration.” In addition to its exploration program, the company is looking at acquiring other properties and companies, but Stothart emphasizes that as IAMGOLD is growing, its criteria for potential acquisitions are becoming more

34 | CIM Magazine | Vol. 5, No. 5

stringent. New properties have to offer in excess of two million ounces in reserves and resources and have the potential to decrease the company’s average cost per ounce produced. They should also be in areas that are reasonably stable politically, and IAMGOLD has been careful – even with six of its eight gold mines spread across the African continent – to focus on countries whose economic and social interests are well aligned with the company’s. “We have a very active corporate development group that continues to scour the opportunities out there for acquisitions,” says Stothart, “but obviously it’s important that we pay the right price. That’s a big piece of the picture. We like acquisitions, but it’s not just growth for growth’s sake; it’s profitable growth.” Among the majors, Goldcorp is the largest producer of Canadian gold, with three major mines in the Ontario area. Of the 2.42 million ounces the company produced in the 2009 fiscal year, 1.17 million were produced in Canada. Goldcorp’s focus has historically been on operations in countries with low political risk. The company’s executive vice-president and COO, Steve Reid, highlights the fact that of the 12 mines Goldcorp currently has in operation, nine are located in NAFTA countries. These mines also account for approximately 70 per cent of the company’s total reserves. But Goldcorp, too, has major expansion plans. According to Reid, the company is working on projects that will increase its production by more than 50 per cent over the next five years, to well over 3.5 million ounces of annual production. Not included in that total are a number of longer range developments, including Eleonore, in northern Quebec. Yet the current and near-future price of gold is not enough on its own to spur experienced operators into new developments. The emphasis across the board appears to be on controlled growth. “We’ve all been in the business long enough to know price cycles work in two directions,” says IAMGOLD’s Stothart. “While it’s wonderful where the gold price is right now, and our current outlook is that gold prices will continue to be strong, it’s always important to be prepared to protect the company on the downside. Cash cost management is a key piece of that.”

Photo courtesy of Kirkland Lake Gold

gold

Foundation for growth: hoist building under construction at Kirkland Lake Gold

Reid echoes the sentiment, pointing out that despite its expansion plans, Goldcorp has recently sold some of its higher operating cost properties, focusing on what it terms its core mines. “We’re not afraid to do that if it helps our overall strategy of increasing our quality,” explains Reid. “Our growth is focused more on quality than it is on quantity.” Similarly, Kirkland Lake has been working to decrease its cash costs, with this goal being a major reason for the expansion. The company’s 2005 discovery of the South Mine Complex deposit offers high-grade ore on par with GoldCorp’s nearby Red Lake Mine, says Carpenter. The company is planning to use the high-grade deposit and higher number of ounces produced to push down its current high cost per tonne, with targets of around $250 per tonne currently and $200 per tonne, once the phase 2 expansion is complete. As the financial uncertainty persists in the short and medium term, gold producers will continue to reap the benefits of market interest, and gold-producing countries — Canada included — will continue to enjoy the tax revenues. Gold alone is not enough to make debt-ridden economies healthy, but gold’s usefulness as a safer investment

cannot be underestimated. In the larger context, gold producers are helping the world economies take a big step towards some much-needed stability. CIM

August 2010 | 35

Photo courtesy of Agnico-Eagle Mines

featured mine

Agnico-Eagle's Meadowbank gold mine in Nunavut went into production early this year.

A small window, a big opportunity by | Correy Baldwin

The caprice of fortune and the merits of hard work aligned on a late spring day at the Meadowbank operation of Agnico-Eagle Mines. The day the company officially opened its newest mine, the only of its kind in Nunavut, the price of gold reached a new high.

In a remote region 320 kilometres west of Hudson Bay lies the hamlet of Baker Lake, Nunavut’s only inland community. Seventy kilometres north of this is the Meadowbank Mine — a large-scale, open-pit mine run by Agnico-Eagle Mines (AEM). It is the company’s newest venture and is set to become its largest gold producer. Although Meadowbank is AEM’s first tundra location, the company has plenty of experience in northern climes. Its flagship mine — LaRonde, in northwestern Quebec — has been

36 | CIM Magazine | Vol. 5, No. 5

in operation since 1988. AEM recently opened the Goldex and Lapa mines near LaRonde, as well as the Kittila Mine in northern Finland. Each northern mine, however, comes with its own set of challenges. “We have to deal with the extreme weather on top of the basic logistics of putting together a fair-sized project,” says general manager Denis Gourde. Baker Lake is joined to the western shore of Hudson Bay by Chesterfield Inlet (a 200-kilometre-long inlet) that in turn connects into Baker Lake, which is part of the drainage for the

featured mine Thelon River system. This salt water/freshwater corridor has proven vital to Meadowbank, providing a transportation route for barges carrying equipment and supplies to Baker Lake during construction. However, the open-water season in the Arctic only runs from the end of July until mid-October. “Predicting the end of the season is always a challenge,” explains Gourde. “We have a window of 10 to 11 weeks, so we have to mobilize all the fuel, construction and operating supplies, and equipment parts on the barges over a very short season — everything we need for the year.” Last summer alone, 41,000 tonnes of freight were brought in to finalize construction. Navigating this challenge has required precise planning and coordination. On February 27 of this year, Meadowbank poured its first gold bar — right on schedule.

A feat of engineering — and patience A gold showing was initially discovered in the area in 1983, and interests in the project were purchased by Cumberland Resources, which began exploration drilling and environmental and engineering studies. In April 2007, AEM became 100 per cent owner of Meadowbank, acquiring Cumberland in an all-share acquisition valued at $710 million. The 1,200 hectare Meadowbank property covers a portion of the 25-kilometre Meadowbank gold trend in the Woodburn Lake Group, an area underlain by Archean-age volcanic and sedimentary rocks. The Meadowbank trend hosts three main deposits: Goose Island, Portage and Vault — all shallow enough to be mined as open pits. All three deposits lie beneath the shallow Second and Third Portage lakes, sections of which must be isolated by containment dykes and then drained in order to access the ore. Construction of the dyke system has been challenging due to the short summers. “Only 1,000 metres of dyke can be constructed over a season,” says Gourde, “meaning construction of the entire dyke network has been spread over three summers.” “Initial stripping began in summer 2008 to collect raw materials for dyke construction and landscaping, and to collect material to produce aggregates for concrete. That summer, we finished the first dykes

Right, top to bottom: Gold was first poured in February; The processing plant handles 8,500 tonnes of ore per day; Members of First Nations comprise over a third of the workforce at Meadowbank All photos courtesy of Agnico-Eagle Mines

August 2010 | 37

featured mine

needed to isolate a complete arm of the lake and had dewatered it by May.” Two seasons of dyke construction remained but the mine had already become fully operational as completion of the first dykes had opened up the Portage pit to production. “We’ve been working in the pit since then,” says Gourde. “At the end of 2009, we had 600,000 tonnes of ore ready to be processed.” Dykes around the Goose Island pit will be completed by 2011. The Portage and Goose Island pits are expected to be depleted by 2014, at which point production will begin at the Vault pit, which will provide ore until at least 2018. When the mine closes, the dykes will be breached and the pits flooded. All three pits lie within seven kilometres of the on-site processing plant and mine camp. Ore is trucked to the mill and, once crushed, fed into an 8,500 t/d conventional process plant that will operate year-round. The plant consists of crushing, grinding, gravity concentration, thickening, cyanide leaching and gold recovery in a carbon-in-pulp circuit, followed by smelting to form gold bars. Tails are treated with a standard sulphur-dioxide air process to destroy the cyanide, and then pumped to a tailings 38 | CIM Magazine | Vol. 5, No. 5

facility. Tails will be permanently frozen and covered by nonacid-generating waste rock and monitored for a minimum of 10 years after the mine closes. All process water is reclaimed for the mill, and waste ore is used for dyke construction, fill material, or placed in two waste sites or back in the minedout pits. Meadowbank has 32.2 million tonnes of proven and probable reserves, with a grading of 3.5 g/t, containing 3.6 million ounces of gold. Current indicated resources contain 1.5 million ounces of gold, with another 0.4 million ounces of inferred resources. Total cash costs at Meadowbank are US$460/ounce. The operation is expected to produce 350,000 ounces per year over its 10-year mine life, although AEM hopes to increase the average daily production rate from 8,500 tonnes to 10,000 tonnes, which would bring annual gold production to more than 400,000 ounces. The large property has significant exploration potential as well. The Portage pit has already been extended and further exploration shows promise for extending both the Goose Island and Vault pits. A 75-person exploration camp runs yearround, with breaks during the spring ice break-up and the fall freeze-up.

featured mine

The social licence When AEM decided to build the Meadowbank Mine in 2007, they entered into an Inuit Impact Benefits Agreement (IIBA) with the Kivalliq Inuit Association (KIA). Under the Nunavut land claim agreement, each major developer must negotiate an IIBA with a regional Inuit association, a system designed to foster economic development and environmental conservation in Nunavut. “The agreement provides for maximizing Inuit employment, training for Inuit, protection and encouragement of the Inuktitut language at the mine site, for maximizing Inuit business participation through preferential contracting conditions, for wildlife protection and for other issues related to maximizing Inuit benefits from the mine,”explains Larry Connell, corporate director of sustainable development for AEM. The agreement also allows the KIA some administration of business development and scholarships. It includes a post-closure wellness fund to help ease the region back into life without the mine once production is finished. This last concept has become one of AEM’s core values: “to invest in our host communities to create economic benefits and

opportunities that will outlive our activities and contribute to them achieving economic, social and environmental sustainability.” AEM has an office in Baker Lake with a community liaison officer and committee. The company works closely with local leaders and holds community meetings and feasts to keep people updated on progress and plans at the mine. The company also sponsors a wide range of activities and events, from sports programs and youth leadership programs to summer festivals. A university scholarship fund has been set up for students from the region. To ensure that community and business relationships continue to run smoothly, the now three-year-old IIBA is currently undergoing a review by both parties to assess what is working and what is not. Baker Lake is not the only community being affected by this new project. In a territory with a population of just over 30,000, a new multi-million dollar project affects everyone. By the time Meadowbank reaches full production in 2011, the mine could increase the Nunavut GDP by a full 20 per cent. Meadowbank’s presence is especially important given that it is the only operating mine in the territory — the Jericho diamond mine closed in 2008. August 2010 | 39

Photo courtesy of Agnico-Eagle Mines

featured mine

The mine has a workforce of over 500.

Immediate impact Nearly 45 per cent of the money AEM has spent on capital expenses for Meadowbank has been with Northernbased businesses. During the first two years of construction, AEM spent $16 million using Baker Lake services and businesses. Equipment and supplies have been barged in by Northern Transportation Company. Arctic Fuel and Peter’s Expediting have trucked those supplies up a 110-kilometre all-season road that was built by Nuna Logistics to connect Meadowbank to Baker Lake. Northern businesses have supplied prefab buildings, constructed containment dykes, unloaded barges, supplied food for the camp kitchen, and provided cultural sensitivity training. Guided by the IIBA, AEM has been working to maximize not only business opportunities but Inuit employment as well. Since AEM set up in the area, it is estimated that unemployment rates in Baker Lake (population 1,800) have fallen from 45 per cent to under five per cent. Of the 507 employees at Meadowbank, 177 are Inuit — 125 from Baker Lake alone. That translates to 35 per cent of the workforce. As Kivalliq’s workforce does not always have the high-tech skills AEM needs, training has been a big part of the company’s initial outlay. AEM provides the funding for education and skills development and works with the Kivalliq Mine Training Society to train local workers for specific jobs at Meadowbank. It also provides continued training to enable Inuit employees to advance in their career. Inuit employees have found work in all aspects of Meadowbank — the camp, the mine, the process plant and in geology. They’ve been hired as kitchen help, technicians, and equipment operators, as well as for higher paid positions like drillers, blasters and haul truck operators. Employees work a 40 | CIM Magazine | Vol. 5, No. 5

two-week on, two-week off schedule, and are flown to the mine — the camp boasts a 1,900-metre airstrip. Language issues have been a challenge. Measures have been put in place to allow Inuktitut to be spoken on the work site, but English is required for radio communication because of safety concerns. As for “southerners” picking up Inuktitut, “it’s a tough language,” says Connell, “but some of our southern employees are making the effort to learn some words of greeting and politeness.” “The unique interaction between the cultures at Meadowbank helps our southern-based employees better understand the problems faced by the Inuit as they transition to an economy in which they can participate on a more equal footing,”Connell adds.

A deeper engagement AEM’s workforce is non-unionized, so to provide a forum for employees to voice their concerns, the company has organized what it calls collaboration committees, which can be found in each of its Canadian divisions. “It is more difficult than having a union,” says Connell, “because you are always open for negotiation; however, the rewards are greater in that there is a venue for true employee participation.” “This committee is made up of employee representatives elected by their co-workers and representatives of management,”Connell explains. “It is structured to get representation from each of the mine’s working areas or departments. The committee meets on a regular basis with the mine manager and department heads and all topics relating to employment conditions are open for discussion, including, but not limited to, disciplinary problems and procedures, work schedules, how employees are paid, benefits and working conditions.” Connell admits that Inuit employees have tended to be suspicious of this approach. He says it is up to AEM to earn their trust, at which point the committee will be able to function ideally. He points to the success of the collaboration committee at LaRonde, which has been functioning for many years. Even rates of pay are discussed and negotiated at the committee level. The same is true for Meadowbank. “The key point,” says Connell, “is that AEM is intent on creating a venue or forum for its employees to be involved in all aspects of our day-to-day mining business.” CIM www.agnico-eagle.com

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Photo courtoisie de Agnico-Eagle Mines

mine en vedette Dôme d'entreposage de minerai à la mine Meadowbank d'Agnico-Eagle

Une petite fenêtre, de grandes possibilités

La mine à ciel ouvert Meadowbank est située à 320 km à l’ouest de la baie d’Hudson et à 70 km au nord du hameau de Baker Lake, au Nunavut. Bien que Meadowbank constitue la première mine dans la toundra pour Agnico-Eagle, la compagnie possède beaucoup d’expérience dans le Nord : notamment aux mines LaRonde, Goldex et Lapa, en plus de la mine Kittila en Finlande. Chaque mine nordique comporte toutefois ses propres défis. Baker Lake est relié à la baie d’Hudson par le bras de mer Chesterfield, d’une longueur de 200 km. Toutefois, les eaux sont libres de glace seulement de la fin juillet à la mi-octobre. « Il est toujours difficile de prédire la fin de la saison », explique M. Gourde, le directeur général. « Nous avons une fenêtre de 10 à 11 semaines; nous devons donc mobiliser tout ce dont nous avons besoin pour un an durant une très courte saison. » Le 27 février dernier, Meadowbank coulait son premier lingot, tel que prévu à l’échéancier. 42 | CIM Magazine | Vol. 5, No. 5

Un tour de force d’ingénierie et de patience Un indice d’or avait été découvert dans le secteur en 1983; Cumberland Resources acheta des intérêts et commença du forage d’exploration et des études environnementales et techniques. En avril 2007, Agnico-Eagle a acquis Cumberland, une transaction évaluée à 710 millions de dollars. La propriété Meadowbank couvre une portion des 25 km de l’axe aurifère Meadowbank dans le Groupe de Woodburn Lake. Les trois gisements principaux : Goose Island, Portage et Vault sont tous à des profondeurs permettant une exploitation à ciel ouvert. Ils sont cependant situés sous des lacs, ce qui nécessite des digues de confinement et du drainage. « Le décapage a commencé à l’été 2008 afin d’obtenir des matériaux pour la construction des digues et des agrégats pour le béton. Il a été possible d’isoler un bras du lac et de le drainer. Il restait deux saisons de construction de digues mais la fosse Portage était déjà en exploitation. « Nous y travaillons depuis

mine en vedette

Les camions et les pelles étaient parmi les milliers de tonnes d’équipements à être transportés par barge.

Les trois principaux gisements de Meadowbank sont à faible profondeur et peuvent être exploités à ciel ouvert.

ce temps », dit M. Gourde. « À la fin de 2009, 600 000 tonnes de minerai attendaient d’être traitées. » Les fosses Portage et Goose Island devraient être épuisées en 2014; à ce moment la fosse Vault entrera en production. Lorsque la mine fermera, les digues seront détruites et les fosses ennoyées. Les trois fosses sont à moins de 7 km de l’usine de transformation de 8500 t/j et du camp minier. Le minerai est acheminé par camions; il est ensuite broyé, concentré par gravité, épaissi et lixivié au cyanure. L’or est récupéré dans un circuit de charbon en pulpe pour être finalement coulé en lingots. Après traitement pour détruire le cyanure, les résidus seront gelés en permanence et recouverts de roche stérile non génératrice d’acide. Toute l’eau de traitement est reprise dans l’usine; la roche stérile sert à la construction de digues et en tant que matériau de remblai. Meadowbank possède 32,2 millions de tonnes de réserves prouvées et probables à une teneur de 3,5 g/t, soit 3,6 millions d’onces d’or. Les ressources indiquées actuelles contiennent 1,5 million d’onces d’or et les ressources inférées contiennent 0,4 million d’onces. Les coûts effectifs totaux de Meadowbank sont de 460 $US/once. L’exploitation devrait produire 350 000 onces d’or par année durant sa vie de 10 ans. Cependant Agnico-Eagle espère augmenter le taux de production quotidienne à 10 000 t/j, ce qui signifierait une production annuelle de plus de 400 000 onces. De plus, une équipe de 75 personnes travaille à l’exploration; l’extension des fosses semble prometteuse.

de maximiser la participation commerciale par des conditions contractuelles préférentielles. » L’entente comprend un fonds post-fermeture. La compagnie commandite aussi de nombreuses activités et événements sportifs et culturels. Un programme de bourses universitaires a été établi pour les étudiants de la région. Dans un territoire où la population dépasse à peine 30 000, un projet de plusieurs millions de dollars touche tout le monde. Lorsque la mine sera en pleine production en 2011, elle pourrait accroître le PIB du Nunavut de 20 pour cent. La présence de Meadowbank est d’autant plus importante que c’est la seule mine du territoire, la mine de diamants Jericho ayant fermé en 2008. Près de 45 pour cent des dépenses en capital de Meadowbank concernent des compagnies du Nord. AgnicoEagle a dépensé 16 M$ en deux ans auprès de commerces de Baker Lake. La Northern Transportation Company a transporté les fournitures et les équipements par barge, puis Arctic Fuel et Peter’s Expediting les ont transportés par camion sur une route construite par Nuna Logistics. Depuis l’installation d’Agnico-Eagle dans la région, il est estimé que le taux de chômage à Baker Lake (population 1800) a chuté de 45 pour cent à moins de 5 pour cent. Des 507 employés de Meadowbank, 177 sont Inuit. Les questions langagières ont constitué un défi. Des mesures sont en place pour que l’inuktitut soit parlé sur le site; cependant les communications radios sont en anglais en raison de la sécurité. « L’inuktitut est une langue difficile », dit M. Connell. « Certains employés ‘du Sud’ font toutefois des efforts pour apprendre quelques mots de salutations. » Les employés n’étant pas syndiqués, la compagnie a organisé des Comités de collaboration formés de représentants élus par les employés et de représentants de la direction. Le comité se réunit régulièrement et tous les sujets sont discutés, les conditions d’embauche, les questions de discipline, les horaires et les conditions de travail. « Agnico-Eagle veut que les employés soient impliqués dans tous les aspects de l’exploitation », dit M. Connell. ICM

Le permis social d’exploiter Agnico-Eagle a conclu une Entente sur les répercussions et les avantages pour les Inuits (ERAI) avec la Kivalliq Inuit Association (KIA) en 2007. Selon l’Accord sur les revendications territoriales du Nunavut, les grands promoteurs doivent négocier une ERAI avec une association inuite régionale. Selon Larry Connell, directeur du développement durable : « L’entente permet de maximiser l’embauche d’Inuits, de protéger et d’encourager la langue inuktitut sur le site minier et

August 2010 | 43

COLUMNS | MAC economic commentary The competitiveness of mineral processing in Canada Paul Stothart Throughout our history, there has been a call for greater value-added in Canadian resource production. The image of Canada as a “hewer of wood and drawer of water” has long irritated many Canadians — including politicians and industrial strategists who have felt that Canada should be more sophisticated and more active in manufacturing value-added products. Rather than exporting lumber, we should export furniture or even prefab houses. In the mining sphere, rather than sending raw concentrate or bitumen abroad, we should be producing refined petroleum products, chemicals, finished jewelry, specialized metal alloys and the like. Or to move another few steps along the continuum, we should have inherent raw material advantages in producing computers, iPods, medical equipment and machinery. Historically there has been some appeal to this argument, including at the political level. Why send something abroad in an unfinished form when additional jobs and wealth could be associated with adding production value at home? This has manifested itself on some occasions in past decades, when inland mineral processing facilities in Ontario, Manitoba and New Brunswick were established largely for political reasons. Curently, several of these facilities are under competitive pressure — more so because of poor location rather than a failed economic model. In hindsight, some of these processing facilities would be more competitively positioned today if they were located on waterways with modern port and marine facilities, rather than inland where rail and truck costs and delays must be built into the equation. The nickel processing facility presently being constructed in Newfoundland and Labrador, while driven 44 | CIM Magazine | Vol. 5, No. 5

in part through political pressure, at least has the advantage of being located on the coast. The Department of Natural Resources Canada has recently been examining value-chain and competitiveness aspects of the Canadian minerals and metals industry. This preliminary work has produced some very interesting findings. There is a fair amount of mineral value-added work that occurs in Canada. In base metals, 30,000 jobs in extraction correlate with a similar number in smelting/refining and with 280,000 in semi-fabrication and fabrication plants. In copper value-chain analysis, Canadian operations show a strong comparative advantage in the earliest stages such as concentrate, refined copper, pipe and wire, and progressively less advantage in the downstream stages of machine shops, semiconductors and generators. In terms of value-added per dollar revenue (or per employee), the greatest wealth is generated at the extraction to concentrate stage, with progressively lower levels of wealth generated from the smelting, semi-fabrication and fabrication stages. In terms of the competitiveness of Canadian base metals processing operations, while there is some variability among the ten aluminum facilities, overall, Canada’s aluminum smelters are very competitive internationally, drawing upon energy cost advantages. In nickel processing, Canada has a significant competitive advantage — in part due to the sale of by-products such as sulphur. In zinc, Canadian smelters are generally positioned in the middle globally in terms of cash

costs, although the global cost curve is relatively flat such that incurring new costs could render a smelter uncompetitive. Finally, in copper processing, Canadian facilities are high cost, in the top quartile, as evidenced partly through the recent and pending closure of some facilities. Beyond wage costs and age of facility, there are of course many other factors that affect, or potentially could affect, the competitive balance of Canadian value-added operations. Imposing unilateral climate change charges in the form of energy fees, for example, could affect competitiveness. Volatile energy costs or unpredictable electricity supply can dramatically affect competitiveness, a factor that Ontario best consider as it makes important energy infrastructure decisions. Transportation costs and efficiency can play a pivotal role, highlighting the importance of items such as competitive rail service. Scale of operation can be another important variable — the average capacity of the world’s top ten copper smelters has grown from 270,000 to 480,000 tonnes in a decade, an 80 per cent increase that is leaving Canadian facilities in its wake. Erecting raw material export barriers, a policy seen in China and some other countries, provides advantage to their manufacturers by effectively subsidizing input costs, thereby negatively affecting (continues on page 45)

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

supply side |

Coping with the stronger Canadian dollar Jon Baird The strength of our currency is making newspaper headlines as several economic indicators, including commodity prices, work in its favour. The domestic mining industry sells its products in U.S. dollars but has costs in Canadian currency. Thus, receiving fewer Canadian dollars in revenue means shrinking margins for miners. Most of Canadaâ&#x20AC;&#x2122;s minerals and metals companies have assets outside of our borders. Their costs at foreign operations outside of the United States rise if the U.S. dollar weakens relative to the currency of the host country. Also, repatriated profits may be reduced when exchanged for Canadian funds. The high Canadian dollar may discourage downstream processing in this country, as it becomes cheaper to do it overseas. This was one of the reasons given by Xstrata when it closed its Timmins metallurgical complex. On the other hand, commodity prices are rising in U.S. dollars, so the future of our producers is not that bleak. Furthermore, producers can hedge their currency risk if they choose. Also, their balance sheets will be improved if they have debt denominated in U.S. dollars while their purchases of exploration properties and mining operations in other countries will become cheaper. So, all in all, a

COLUMNS

A page for and about the supply side of the Canadian mining industry

strong Loonie may not hurt the pro- Canadian exporter is protected ducers much. against sharp rises in the Loonie. The For suppliers that export, the situa- deal could also benefit by saving the tion is different. The high Loonie dual cost of the buyer converting to means that Canadian products and U.S. dollars and subsequent converservices are more expensive for for- sion by the Canadian seller to our eigners, at least in U.S. dollars. How- currency. ever, some commodity-rich countries Many Canadian suppliers rememto which we export are seeing their ber how they got caught when the currencies rise too. Thus, they can still Loonie shot to a modern-day high of afford to buy Canadian. US$1.1024 on November 7, 2007. Canadian manufacturers can now They had valid offers outstanding and buy U.S. and European production contracts to fulfil in U.S. dollars. It machinery at a discount and without really hurt. Had they quoted in the tariffs that were discarded in the Canadian dollars they would have March 2010 Federal Budget. Given been protected. the global nature of manufacturing I believe that Canadian manufacsupply chains, U.S. dollar-denomiturers, in general, having had a couple nated inputs for our manufacturers of years to worry about the threat of a will be cheaper. high dollar, are ready to cope with it. Of course, exportersâ&#x20AC;&#x2122; costs of for- There are defences, input costs may be eign sales trips, attendance at trade lower and businesses are doing all they shows and other international market- can to optimize productivity. CIM ing and selling activities should decrease with a stronger Canadian dol- www.camese.org lar. Exporters can hedge currencies, but this is a About the author risky business unless you Jon Baird, managing know exactly what your director of CAMESE and foreign currency requirethe immediate past ment is. president of PDAC, is One of the best tactics interested in collective is to simply quote in approaches to enhancing Canadian dollars. Buyers the Canadian brand in can then compare their the world of mining. currency directly. The

(continued from page 44) competing Canadian value-added operations. Finally, as raw material supply becomes scarcer in the longer term, it is conceivable that the availability and cost of recycled material could become a highly important driver. In some countries, public policy decisions have been taken to ensure a major presence in mineral processing,

regardless of the intrinsic strengths or weaknesses of the industry. Canadian policy-makers have generally avoided this path, largely exposing the industry to the vagaries of open markets and free-flowing investment. This is a fine strategy, provided our transportation, tax, trade and investment, environmental, and energy policies are similarly

enlightened, aligned and supportive. In line with this strategy though, Canadians should not be surprised if the bulk of investment occurs in the extraction and concentrate stages where the most value is added and where Canadians are most competitive. CIM www.mining.ca August 2010 | 45

COLUMNS | engineering exchange Innovation at work Novel tailings management allows Minto to proceed on schedule

Photo courtesy of EBA Engineering Consultants

Heather Ednie

Spread and compact operation on tailings stack surface.

As permitting and regulations grow more complex, tailings management has become a major discipline unto itself. An effective tailings management plan can make, or break, a mine plan. With so many variables to consider, companies are turning to tailings experts to guide the development of such systems to suit their operations. When Capstone Mining Corporation acquired Minto Explorations Ltd. in June 2005, the acquisition included the partially constructed, but inactive, Minto Mine operation. Within two years, the once-dormant site reached commercial production and since then, the mine has increased production by more than 100 per cent — all with the help of an effective tailings management plan. A high-grade copper-gold mine located 240 kilometres north of Whitehorse, in the Yukon, Minto Mine had all permits in place before economic 46 | CIM Magazine | Vol. 5, No. 5

pressures forced its previous owners to cease construction. The original mine plan included partial dewatering of the tailings at the mill. The resulting paste tailings would flow down the valley where a dam would catch water run-off and recirculate some of it back to the mill as process water. Capstone asked EBA Engineering Consultants to review the tailings management plan in 2006. “We told them the plan was fundamentally flawed,” recalls Don Hayley, director of Arctic resource projects for EBA’s Arctic Practice, who has over 40 years of experience on engineering projects in the Arctic. “You have to understand how the water content in the paste tailings affects the angle at which it will flow.” Minto Mine is located in a valley with an average along-valley gradient of approximately five per cent. At the planned 67 per cent solids content, the slope on the paste tailings would be

5.5 per cent — very close to the valley slope. If the water content ran high, the slope angle would drop off rapidly, to four per cent or less. “In such a case, the tailings would continue to travel all the way down the valley to the dam, compromising the dam and water supply reservoir,” he explains. Hayley led a team seeking an alternative tailings management plan. Two options were considered. The first consisted of building an interior rockfill dyke up slope where the tailings would come to rest, and the water would continue to flow down the valley. Although a sound option, such dyke construction was not included in the existing permit and would therefore have required an additional permitting process, resulting in a substantial loss of time for the development of the mine — upwards of two years. The second option considered was dry stack tailings. This method,

Photo courtesy of EBA Engineering Consultants

CIM has New Digs!

Tailings discharge from the process plant ready for load-out to the disposal site.

increasingly popular in the North, includes removing most of the excess water from the tailings, leaving a fine sandy soil to be trucked and placed. “In fact, dry stack tailings are not totally dry, but dry enough to behave like engineered embankment fill,” says Hayley. “They therefore have their own inherent strength, and can be trucked and placed, remaining stable on their own. Notably, this method easily met the existing permit requirements.” The dry stack tailings method is advantageous as additional dams are not required. Also, at mine closure, it simply requires covering the stacked tailings with a layer of waste rock; there should be minimal requirement for further maintenance and monitoring. The disadvantages of the method are with respect to operating costs. At Minto Mine, an additional building had to be constructed to accommodate massive filter presses for dewatering. This process consists of compressing the tailings slurry, allowing water to run out on a series of filters. The dryer materials fall through the bottom onto a conveyor belt to be stacked for transportation to site. “The cost associated with constructing the separate building and acquiring and maintaining the filter presses is substantial, and you need redundancy in the system so that it always meets output volume,” admits Hayley. “So, yes, the operating cost is higher than some traditional tailings

management methods. However, as permits become more restrictive — especially those related to water management — such alternative methods are increasingly attractive by reducing the environmental footprint, and there is always an offsetting reduction in capital cost for dam construction.” A dry stack tailings storage facility (DSTSF) site was located over a gently sloping area southeast of the tailings filter building, relatively close to the mill. Its location minimizes potential impacts on Minto Creek, and will contain approximately 3,800,000 m3 of tailings. Minto Mine has come a long way since the first Arctic operation’s use of the dry stack tailings method. Some mines, like Xstrata Nickel’s Raglan Mine in northern Quebec, create permafrost within the stacked tailings, although that is not in the cards for Minto. As plans to extend the mine life continue to evolve, the limited extra space for stacking the tailings had to be addressed. Luckily, a solution was readily available. “Minto’s plans include continuing to a new pit once the first is mined-out,” Hayley says. “So, the first pit will be a repository for tailings and some waste rock.” This was no stroke of luck, but the result of a well-laid-out tailings management plan. CIM www.eba.ca

Le bureau national de l’ICM a déménage!

CIM has expanded and moved into a new office space to serve you better. Our new mailing address is: L’ICM s’agrandit et a emménagé dans de nouveaux locaux pour mieux vous servir. Notre nouvelle adresse postale est : CANADIAN INSTITUTE OF MINING, METALLURGY AND PETROLEUM (CIM) L’INSTITUT CANADIEN DES MINES, DE LA MÉTALLURGIE ET DU PÉTROLE (ICM) 3500 de Maisonneuve Blvd. W. 3500 boul. de Maisonneuve o. Suite 1250 Westmount, QC • H3Z 3C1

COLUMNS | HR outlook Looking ahead to 2020 New resources help industry forecast hiring requirements Ryan Montpellier The Canadian mining industry is highly competitive on the world stage and has the potential to remain successful for many years. Countries undergoing rapid economic development will continue to need the raw materials that Canada provides; however, this potential is threatened by looming labour shortages and human resources issues facing the sector. Several labour market trends are impacting the availability and quality of people in mining, most notably the aging workforce, productivity and challenges in attracting new talent to the sector. One of the Mining Industry Human Resources (MiHR) Councilâ&#x20AC;&#x2122;s priorities is to offer solutions to these human resources challenges by providing labour market information (LMI) to sector stakeholders on an ongoing basis. LMI encompasses data on employment levels, hiring requirements, turnover and worker demographics, and facilitates decisionmaking. This valuable information is particularly useful to HR practitioners, workforce planners, academia, transitioning workers, immigrant and Aboriginal organizations, youth and others. It is regularly used as input into the development of economic and social policies, workforce planning and decisions regarding investment in training. By exploring anticipated hiring requirements over the medium to long term, we are helping industry take

practical measures to ensure that the risks associated with a boom or bust can be mitigated. This entails forecasting future hiring requirements in the sector, by occupation and region, based on a number of explanatory input variables such as fluctuations in commodity prices, retirement rates, turnover and productivity. This summer, MiHR is releasing two powerful LMI resources: â&#x20AC;˘ a national report outlining the labour market trends and a 10-year occupational and regional forecast in mining; and â&#x20AC;˘ an online tool that will allow industry stakeholders to create custom HR forecasts and feed them into their strategic plans and scenario models. Key findings from this research reveal that employment in mining is much more volatile compared to most other sectors in Canada. Also, the industry is quickly aging and is not regenerating itself fast enough; the average retirement age in mining is much younger, at 59.5, compared with an average of 62 for the entire economy. The mining industry will therefore face the challenges of the retirement exodus before most industries in Canada. Under the baseline scenario in the forecasting model, the Canadian mining industry will have to hire 100,000 new workers by the year 2020. If commodity prices perform better than expected, under a modest expansionary scenario, cumulative hiring

mac facts

The mining industry accounts for approximately one of every 48 Canadian jobs. The mining and mineral processing industry directly employed 351,000 in 2008. 48 | CIM Magazine | Vol. 5, No. 5

requirements could reach over 135,000 workers. Even under the expansionary scenario, the majority of those workers are not due to growth, but rather replacement workers. Attracting, recruiting and retaining this many people in such a short period will be a daunting task and industry will need to continue its investment in maximizing all potential sources of labour. To fill the talent gap, continued efforts to attract and retain youth, women, new Canadians and Aboriginal Peoples will provide access to a larger pool of work-ready individuals. Furthermore, given the large demands on replacing retired workers from a depleted labour pool, the industry will have to increasingly rely on improving or, at a minimum, maintaining productivity levels. Increases in productivity will come through investments in training and education and through innovation, capital asset acquisitions and advancements in technology. Central to achieving a balanced and effective workforce is industry collaboration. MiHR has mobilized industry partners to work more collaboratively than in the past on issues that apply to everyone: diversity, mobility, career awareness, retention, standardization, transition and certification. MiHR invites you to participate in the development of these solutions and share your ideas as we move forward in addressing the HR challenge. CIM www.mihr.ca

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

eye on business |

COLUMNS

How to establish a due diligence defence Rosalind H. Cooper When an accident takes place and the government decides to lay charges under occupational health and safety legislation, the ability of a company to successfully defend those charges will depend on its ability to demonstrate that it exercised “due diligence” in all of the circumstances. There has been much discussion over the years regarding what constitutes due diligence, and there have been a number of cases where this issue has been assessed by the courts. However, often the determination of whether due diligence has been exercised will turn on the facts in each case. It will also depend on standard practices in the industry, and how the conduct of the company that has been charged measures up against those industry standards. The mining industry is one that is fraught with dangers and hazards and, as such, the ability to demonstrate due diligence can be challenging, even in situations where significant efforts have been made to avoid the particular incident. Recently, the Association for Mineral Exploration British Columbia and the Prospectors and Developers Association of Canada published the Canadian Mineral Exploration Health and Safety Annual Report, which included health and safety policy guidelines for junior mineral exploration companies. The guidelines set out general duties for the board of directors, as well as reporting and training recommendations. In addition, the guidelines contain a due diligence checklist that is extremely helpful in self-assessing whether there are sufficient measures in place to avoid incidents and demonstrate due diligence. One area where mining and exploration companies often neglect to focus attention relates to the fact that much of the work occurs at remote locations and at workplaces that are often less than adequately equipped

with means of communication and that face extreme weather challenges. The unique nature of some of this work does not in any way lessen the efforts that must be made to protect health and safety of workers and, in fact, heightens the safety precautions that must be taken. This is because, in determining whether due diligence has been exercised, an important component is the foreseeability of a hazard or danger. Mining and exploration companies also frequently retain contractors to conduct specific work activities on their behalf. Many of these companies are often surprised to learn that they are responsible for the safety of their contractors and can be charged in relation to incidents involving their workers. For this reason, it is as important to be able to demonstrate due diligence in the context of contractors as it is with true employees. The reason for this is that most occupational health and safety legislation places duties and responsibilities on those that retain the services of independent contractors to ensure their safety. In fact, much of this legislation does not distinguish between the duties owned by true employees versus independent contractors. In order for a company to position itself to demonstrate due diligence with respect to its contractors, efforts must be made when retaining the contractor to make inquiries into the company’s safety record, to review training and safety practices, and to take other steps to ensure that the contractor is

properly qualified and works safely. All of these efforts must be documented. In addition, any agreements with the contractor should specify exactly what is expected of the contractor, and the contractor should be required to acknowledge these expectations. There should also be contractor safety programs developed and implemented to both ensure that contractors are properly trained and aware of their responsibilities and also to demonstrate due diligence. Contractors should be made familiar with the workplace and informed of hazards or other dangers particular to that workplace prior to the work commencing. They should also be informed of any changes made that could affect safety in the workplace. Finally, ongoing monitoring of the contractor’s compliance with legal and other requirements is another important component of exercising due diligence, as is timely action upon becoming aware that such requirements are not being met by the contractor. It continues to be challenging to demonstrate due diligence in the context of an occupational health and safety prosecution. Although the jurisprudence to date has held that “perfection” is not required, there is no doubt that the threshold is a high one. Mining and exploration companies will need to take appropriate measures to place them in the position of being able to demonstrate that the threshold has been met. CIM www.fasken.com/global-mining

About the author Rosalind Cooper is a partner with Fasken Martineau and practices in the areas of environmental law and occupational health and safety law. She is named in The 2010 Lexpert®/American Lawyer Guide to the Leading 500 Lawyers in Canada and is also listed in The Best Lawyers in Canada. August 2010 | 49

COLUMNS | innovation The Canada Mining Innovation Council Update on accomplishments Tom Hynes, CMIC interim executive director The Canada Mining Innovation Council’s (CMIC) vision is to ensure Canada is a global leader in the mining industry through cutting-edge research and innovation. It represents a partnership between the mining industry, associations, academia and government, with a commitment to two primary goals: • Increasing mining research, innovation and commercialization efforts in order to strengthen Canada’s preeminent role as a global leader in mineral exploration, mining and knowledge-based services and technologies. • Increasing the supply of highly qualified graduates from mining and earth science faculties to meet the significant current and future demand of industry, government and academia. The impetus for what eventually became CMIC began in 2006 and 2007 with discussions between interested parties from industry, academia and government. It has since matured and developed into its current incorporated status, with wide-ranging, cross-sector support from coast to coast.

Achievements along the way In September 2007, federal, provincial and territorial mines ministers met and endorsed the establishment of the Canada Mining Innovation Council. With the endorsement came a request that the Council develop a PanCanadian Mining Research and Innovation Strategy to be presented at the 2008 Energy and Mines Ministers’ Conference. Launched in the fall of 2007, CMIC’s transitional board of directors was drawn from industry, academia and government, with a secretariat supported by Natural Resources Canada (NRCan) and the Canadian Institute of Mining, Metallurgy and Petroleum (CIM). 50 | CIM Magazine | Vol. 5, No. 5

CMIC’s first order of business was to develop the research strategy requested by the mines ministers. In early 2008, it sought the Canadian mining community’s input on the economic, social and environmental drivers that would shape the future of mining research and innovation in Canada, as well as the significant areas of challenge and opportunity. These were provided through seven regional workshops held in early 2008 involving over 150 leaders from the private, public and academic sectors. CMIC then commissioned the following: • four expert papers covering the full mining cycle (exploration, extraction, processing and cross-cutting environmental issues); • a report on mining strategies in foreign jurisdictions; and • a report on the strategies and initiatives being undertaken by Canadian federal, provincial and territorial governments to support the Canadian exploration and mining sector.

Setting priorities This information was used to prioritize the research needs of the industry and, subsequently, to create the PanCanadian Mining Research and Innovation Strategy. The strategy was brought back to the mines ministers in September 2008, where it was reviewed and approved. As part of the effort to develop the implementation plan for targeted areas of research, four working groups were established to address the themes of environment (energy, water, tailings and effluent management), exploration, deep mining and process efficiency. Workshops were held in December 2008 and January 2009 to identify priority projects of a national scale for early implementation. CMIC also endorsed NRCan’s Green Mining

Initiative as the main vehicle to cover its environmental priority. Another priority for CMIC is the issue of Highly Qualified People (HQP). In May 2008, a first workshop occurred with industry and academic leaders to discuss the present and future needs for HQP in the field of mineral extraction. Additional workshops covering the other aspects of the mining cycle are being planned. As part of the HQP Implementation Plan, CMIC worked with the Mining Industry Human Resources Council (MiHR) to develop a study aimed at determining the current and projected industry supply and demand for HQP in all phases of the mining cycle. It also sought to increase the understanding of the barriers and opportunities in the attraction, development and retention of HQP in the industry. MiHR received $400,000 last August from Human Resources Skills Development Canada to proceed with this study. A CMIC representative will sit on the project advisory committee. In the summer of 2009, with the mining industry still in the midst of a global economic slump, CMIC and its members raised $139,100 to support work terms for 23 students in industry and for academic placements on mining-related projects. During 2010, a further 17 such students will be employed. The CMIC board also participated in the proposal of a series of important innovative projects to be funded through the Canada Community Adjustment Funds. In August 2009, the Centre for Excellence in Mining Innovation (CEMI) received $4,250,600 to install, test and measure the efficiency of novel ventilation-on-demand technologies to decrease mining costs and increase productivity. This project covers part of CMIC’s energy efficiency mandate, a portion of which has been

innovation | provided by NRCan, which has funded consultant reports on energy-efficient, alternative fuels and technologies, and demand management.

CMIC board In March 2009, CMIC was incorporated as a not-for-profit organization. A first permanent board of 14 members was nominated a couple months later, and a subsequent board was elected at the first CMIC annual general meeting in May 2010. The first executive director was hired in August 2009 on a one-year contract, and a subsequent permanent director will be hired within the next few months. The board has also decided to have a permanent secretariat and is seeking the support of industry, associations, universities and governments for its operations. A strategic alliance with CIM was formed in October 2009 to provide administrative, accounting and communications services to CMIC.

Recent developments For 2010, three main issues were chosen by the CMIC board for further development: exploration technology, energy efficiency and tailings management. For each of these topics, an organizing committee, which includes an industry champion, is planning a series of workshops to define research priorities and process development. CMIC’s goal is to launch two collaborative research programs on these issues with national scale and strategic focus on these issues this year. The Exploration Technology Program is probably the most advanced at this time, and has engaged champions from industry to fund the development of a research program proposal. Preliminary discussions with potential funding agencies are quite positive. Information letters about CMIC and its mission have been sent to the vicepresidents of research (or equivalent) of every Canadian university where geosciences or mining-related programs are provided. Several of these universities have since become members of CMIC. A CMIC policy manual

and a business plan are currently being developed in preparation for the CMIC annual general meeting next spring. For the other priority areas of the Pan-Canadian Mining Research and Innovation Strategy, CMIC, in collaboration with CIM, is currently developing a website dedicated to innovation, as proposed by the Collaboration and Innovation Systems and Culture Working Groups. E-communications tools will be developed that can be used as networking tools between members of the Canadian mining research community. Recently, companies such as 3M, and others, have volunteered time and resources to help CMIC reach consensus on its “brand” for the website and other communication vehicles.

COLUMNS

In May 2009, CMIC issued its first InnovaMine newsletter, which was distributed to all delegates at the CIM Conference and Exhibition 2009 in Toronto. This anniversary issue represents the third instalment; a monthly electronic version has been proposed. If the e-newsletter receives the green light, it would be slated to start this coming fall, coinciding with the new website going live. CIM Taken from the InnovaMine newsletter, Issue 3.

About the author Tom Hynes has worked in the uranium and base metals industries, and has been a provincial regulator and a federal government research manager. He is an active supporter of the Canada Mining Innovation Council.

Going forward A peek at CMIC initiatives currently in the works • Exploration Technology Initiative A partnership between 13 junior and major mining companies, the Prospectors and Developers Association of Canada, and Natural Resources Canada is working to develop the tools needed to discover remote, undercover and deep mineral deposits. • Tailings Management Initiative This initiative addresses environmental and land management concerns, and is currently the concerted efforts of CMIC members and oil sands companies. Other commodities will be brought on board during the coming months. • Energy Efficiency Initiative Three technical reports have been commissioned to determine the current status of energy efficiency, alternative fuels and technologies, and demand management. Talks are underway between CMIC members and mining companies to develop a research plan that would accommodate future industry needs. • Environmental Management Initiative This priority has been linked to NRCan’s Green Mining Initiative, which will work in collaboration with CMIC on furthering research efforts into mine waste management, mine decommissioning, footprint reduction and ecosystem risk management. • Cyanide Code Workshop CMIC is planning to co-sponsor, along with the International Cyanide Management Institute, two workshops on the International Cyanide Management Code for the Manufacture, Transport and Use of Cyanide in the Production of Gold, to be held this coming fall (tentatively in Vancouver and Toronto). • CMIC Website Watch for the launch of the CMIC website planned for this coming fall.

August 2010 | 51

COLUMNS | women in mining Making it in Canada’s North Armstrong turned a lifelong dream into reality Heather Ednie

Allison Rippin Armstrong had always dreamed of going to Canada’s North — the mysticism of it called to her. One fateful day, while she was an undergraduate student in biology and environmental science at Trent University, opportunity knocked. A professor, who was an ornithologist, was organizing a work term in the North for that coming summer. Armstrong quickly studied the birds of interest and managed to convince the professor to bring her to Churchill, Manitoba, kicking off what was to become a rewarding career in the mining industry. “That trip was my introduction to the North, and it’s been a love affair ever since,” Armstrong recalls. “It’s a magical place.” As soon as Armstrong and her husband graduated from university, theymoved to Yellowknife. There she held a variety of jobs, including working for the Yellowknives Dene 52 | CIM Magazine | Vol. 5, No. 5

First Nation, Dene Nation and for EKATI Diamond Mine, where she was a compliance specialist. At EKATI, she worked with the fisheries authority on water life monitoring, land use and inspections — all facets of the environmental department. “I literally went from sitting on the technical advisory committee drafting Diavik’s water license to going to EKATI and being sent out by snow machine on a water sampling mission,” she says. “I helped develop terms and conditions and then had to implement similar conditions. I learned that those writing the terms and conditions need to really understand the practicality of it.” Since moving to Alberta in 2004, Armstrong has been working as an independent environmental consultant. Most of her clients are junior exploration companies that hire her to guide them through the permitting process. Although some of her

contracts focus on the Yukon, Saskatchewan and Alberta, the majority of her work centres on Nunavut. For many, the process of starting up a company is fraught with challenges and sacrifices. Luckily for Armstrong, building a successful consulting business came quite easily to her. “In October 2004, when I’d just moved to Alberta, I was contracted by Pam Strand of Shear Minerals to assist on the application process for land use permits and water licenses for the Churchill Diamond Project,” she recalls. “By the time the Geoscience Forum in Yellowknife occurred that November, all sorts of companies were asking for help to navigate the regulatory process.” Armstrong speaks fondly of her former home and says Nunavut is a very friendly place to work. “If you pick up the phone, people are incredibly helpful,” she adds. “It’s all about networking and open communications.”

Let passion be your guide Even as an independent consultant, Armstrong’s passion and convictions dictate the work she does and the clients she takes on. She admits to being extremely particular about who she will work with. “If I’m going to work with a company, it must be committed to reducing its environmental impact and working within the regulatory requirements — it can’t just be lip service,” she adds. “The things I’m passionate about, the companies I do business with are as well. It’s nice to know those companies are out there.”

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Over the years, Armstrong has been fortunate to be involved in some projects with real potential, working alongside very innovative teams. One such example is a contract she has with Starfield Resources on their Ferguson Lake Project. Even though Starfield is an exploration company, every member on the team had previously participated in building a mine — it was an experience she truly cherishes. “The project is located near caribou calving grounds, so we needed to be innovative — you can’t just look at putting in traditional haul roads and so on,” she recalls. “The team came up with the concept of using a slurry pipeline instead.” Armstrong happily insists the people she works with are innovative, forward-thinking and concerned about the environment. On the flip side, she says the regulatory *

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in mining |

climate is open, helpful and communicative. “I believe in the projects and teams, and the government believes good projects will mean# *

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COLUMNS

economic benefit for the community,” she explains. When not working with exploration companies, Armstrong works with Indian and Northern Affairs Canada and the Nunavut Water Board. “I see myself as a bridge — given my experience with Aboriginal organizations as well as my work at a mine and with regulatory bodies,” she explains. “So I see all perspectives, and try to encompass the needs and concerns of each party.” Although much of her work is done remotely from her home office, field work is what she enjoys the most. “Going into the communities and spending time on consultations is the prize of the job,” Armstrong asserts. “Working at exploration camps and doing environmental baseline work is the icing on the cake for me.” CIM ar_enviro@yahoo.ca *#

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August 2010 | 53

COLUMNS | standards The evolution of standards CIM tools fuel discussion Deborah A. McCombe International standards for the reporting of mineral resources, mineral reserves and exploration results have been developing at a rapid pace for the past 20 years due to the globalization of the mining industry. Standards for the valuation of mineral properties have followed a similar course. In May 2010, CIM released the revised version of Special Volume 56, a compendium of the current Canadian and international reporting standards for mineral resources and reserves, Canadian stock exchange reporting requirements for the mining industry, CIM best practice guidelines and papers describing industry practices in the area of mineral resource and reserve estimation. Canadian valuation standards and relevant papers describing valuation best practice form the second portion of the volume. Used to its full potential, this volume and other useful tools can potentially serve as catalysts for the evolution of standards guidelines.

Canadian standards In the wake of several mining scandals that occurred in the 1990s, the Ontario Securities Commission and the Toronto Stock Exchange jointly formed the Mining Standards Task Force (MSTF), which prepared recommendations for improving the standards of practice and disclosure in the industry. These recommendations focused on four key changes: • formulating the concept of the “Qualified Person” • establishing industry standards and best practice guidelines • adopting CIM mineral resources and reserve definitions • establishing national regulations and improving regulatory oversight The Canadian Securities Administrators (CSA) incorporated many of the MSTF recommendations in a Canadian 54 | CIM Magazine | Vol. 5, No. 5

securities law — National Instrument 43-101 Standards of Disclosure for Mineral Projects — which came into effect in 2001, was amended in 2005 and is currently in the process of being updated. CIM took a leading industry role by developing the CIM Definition Standards on Mineral Resources and Mineral Reserves adopted in 2000, amended in 2005 and incorporated by reference into NI 43-101. This resulted in the inclusion of several CIM best practice guidelines as guidance in the Companion Policy of NI 43-101 including: Exploration Best Practice Guidelines (2000); Guidelines for the Reporting of Diamond Exploration Results (2003); Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines (2003); and Best Practice Guidelines for Rock Hosted Diamond Estimation (2008). Additionally, in March 2003, the Standards and Guidelines for Valuation of Mineral Properties was approved by CIM Council. In developing the Canadian industry standards, the excellent achievements and experiences of the national reporting organizations in Australia, South Africa, the United States and the United Kingdom as well provided valuable guidance. In many cases, their standards provided models to be followed, albeit with a Canadian flavour, reflecting our unique governance structures.

national reporting organizations in Australia, Canada, Chile, South Africa, the United States, the United Kingdom and Western Europe. The template provides a basic, non-binding model for countries that do not have a national standard or that want to modify their existing systems to make them internationally compatible. With the emergence of countries such as Russia and China as major producers and consumers of minerals, it will be beneficial for their mineral reporting standards to be harmonized with those of the traditional Western mining countries. Representatives from CRIRSCO and the relevant organizations in Russia and China are now in the process of “mapping” the Russian and Chinese system to the template to obtain a clear understanding of what is meant by the terms in each system.

International standards

www.cim.org/publications/specialVols. cfm

In 2006, a major milestone in international reporting standards was reached when the Committee for Mineral Reserves International Reporting Standards (CRIRSCO) published its International Reporting Template for Exploration Results, Mineral Resources and Mineral Reserves (template). CRIRSCO currently represents

Leading the way Standards for the estimation of mineral resources and reserves and valuation of mineral properties have advanced dramatically in recent years, and CIM members have taken a leading role in developing Canadian reporting standards. Articles in the Standards column of CIM Magazine and compilations such as CIM Special Volume 56 should stimulate further discussion and provide clarity on acceptable industry practices as these standards evolve. CIM

About the author Deborah McCombe, executive vice-president of Scott Wilson Roscoe Postle Associates, is a consulting geologist strongly involved in Canadian disclosure standards for the mining industry.

first nations |

COLUMNS

Turning over a new golden leaf Juan Carlos Reyes Let’s face it: You would probably have to be living in a cave to miss the fact that right now, gold is the hottest commodity on the market. Hovering at about $1,250 an ounce, this precious mineral is also one of today’s most promising investments. Many mining and exploration companies in the gold sector are bringing in earnings well above average, and there does not seem to be any slowdown in sight. The state of gold right now has a huge potential for Aboriginal communities. Most new, and many existing gold ventures are located in Aboriginal territories in Canada and around the world. This reality has not escaped today’s gold industry, and many company public relations divisions have put in a lot of extra hours over the past few years trying to sanitize their public images with local and global indigenous communities. Leading the charge in this recent “cleansing” have been relatively new and emerging companies. However, when it comes to effective community engagement and Aboriginal employment commitments, there are few better examples than Detour Gold Corporation. Detour Gold recognized very early that a proactive approach to Aboriginal engagement was needed in order to purge the negative image that has plagued many gold companies globally. Utilizing a bevy of corporate policies and grassroots initiatives, Detour Gold has worked hard to address the concerns of communities that have traditional territory in areas of proposed development. There were some real challenges going forward, though. One issue was the fact that the communities they were dealing with had traditional territories that overlapped in the region where the development was proposed. About three years ago, I met with Gerald Penneton, the CEO of Detour Gold. He told me about his visits to the three communities that were

going to be most impacted by development and about meeting their leaders face to face to present the company’s position. To Penneton, this was something that made common sense and — good business practice. Today, though, this sort of thinking is rare. It just so happens that one of Learning Together’s strong community partners was one of the stops on Penneton’s outreach tour. They told me that their experience and discussions with Detour had been extremely positive. Another player working hard to engage communities and improve corporate relationships with neighbouring Aboriginal partners is Goldcorp. For years, the Timmins area adjacent to the Porcupine fault has been a rich source of gold. Timmins itself was built largely because of these gold deposits. At the time, however, the Aboriginal communities in the region did not possess the same sort of rights they have now — and so they were overlooked. Fast-forward to today and the picture is more than a little different. To help close any existing gaps that might exist between Goldcorp’s Porcupine operations and the surrounding indigenous communities, the company has recently hired an Aboriginal affairs manager. Mary Boyden, an Aboriginal leader in the industry, is well known and respected by her peers both in the Aboriginal world and in the mining industry. Her previous job as mining initiatives development officer for Wahgoshig First Nation has offered her plenty of firsthand experience about what needs to be done to help these communities build solutions that work. She has a deep understanding of the issues facing

communities in the region, and her role is to help facilitate the relationships between these communities and Goldcorp. This is a role she is taking very seriously because it is so important. Her goal is to build relationships through collaboration by getting to know the communities and their issues, and then to help develop common goals that can be achieved. One project in particular that Boyden would like to put in motion is an employment generator and skills development process for these communities. If there is one thing to learn from the successes of Detour and Goldcorp, it is that to be successful in negotiating, you have to take into account all the communities involved in the project, not just the most proactive ones. In many cases, communities will overlap, depending on the proximity of the projects. These are just two examples from the many that I know that are quickly percolating within industry. The picture has been clear for some time now: gold’s value will likely continue to rise, and with it the need for more money to invest in new deposits. This is one of the reasons it is vitally important that new and existing gold mining companies clean up their act and begin building serious relationships with Aboriginal communities, right from the beginning. CIM www.learning-together.ca www.detourgold.com www.goldcorp.com

About the author Juan Carlos Reyes is an Aboriginal consultant with efficiency.ca and the executive director of Learning Together. He is passionate about human rights and works tirelessly to help improve the lives of Canadian Aboriginal people.

August 2010 | 55

Soulis Joe’s lost silver The legacy of a Newfoundland prospecting family Correy Baldwin

56 | CIM Magazine | Vol. 5, No. 5

Photo courtesy of Newfoundland and its Untrodden Ways, by J.G. Millais, New York: Longmans, Green, 1907

Photo courtesy of Library and Archives Canada (PA-195497).

n 1969, Ted Keats and his son Allan showed up in Gander, Newfoundland, at the newly opened Noranda office — one of the largest mining and exploration companies in Canada. They met with Ron Hawkes, the district geologist, and explained to him that there was silver in the area. The story went that Keats’ grandfather, a trapper by the name of Soulis Joe, had come across a silver deposit in the bush but had never revealed its location to anyone. Keats’ brought out a silver sample to prove that it was not just a story — Soulis Joe’s original nugget had become something of a family heirloom. Ron Hawkes was intrigued, but he knew that Noranda would need more to go on than a silver nugget and a family story. The company was looking for prospectors, however, and Keats’ and his son were offered the job. They were given a canoe, supplies and $250 a month, and were flown to upper Terra Nova River. The father-and-son team had to rough it in the backcountry — they were alone and had to hunt for their own food. It was a life that Ted Keats knew well. He had begun working in

Above: Mi'kmaq trappers from Conne River, ca. 1906. Left: Portrait of Mi'kmaq Man photographed on board the French naval vessel Sésostris, Newfoundland, 1859.

the woods at an early age, and had tried his hand at prospecting for the first time when he was 12, looking, of course, for his grandfather’s lost silver. Keats’ and his son were sure that Soulis Joe’s silver was out there, and now that they were prospecting for Noranda, they were intent on finding it.

The family tree The Keats family traces its ancestry back to a Mi’kmaq man from Nova

Scotia named Soulis Joseph — a name given to him by the French priests to whom he had spent several years in servitude. He was later sold to the captain of a merchant ship who called him Black Soolie — a reference to the low status that he shared with the other black slaves on the ship. In 1760, when the ship docked at St. George’s Bay, Newfoundland, he escaped into the wilderness. Soulis Joseph made a home for himself in the Mi’kmaq settlement of Conne River on Bay d’Espoir on Newfoundland’s south coast. He became a trapper, as did his sons and grandsons. In the mid-1800s, a young man named Soulis Joe from the same family left Conne River and headed into the

interior in search of good trapping territory. He travelled far, becoming an expert trapper, woodsman and guide. He also built a reputation for finding mineral deposits, seeking them out whenever he checked his trap lines. Eventually he made his most famous discovery, returning to Port Blandford on Bonavista Bay after a hunting trip, carrying a high-grade silver sample. He claimed to have found a quartz vein deep in the bush that contained a massive silver showing. He told few people about his find, but the story of his silver grew, and people became determined to find it. Soulis Joe, however, was not interested in giving away his secret, especially not to anyone whose attitude he did not like, and especially not to a white man. He was known to play tricks on people and lead them astray. He became an expert at losing those who tried to follow him into the bush in hopes of finding his silver.

The elusive deposit The silver had eluded prospectors ever since. Ted and Allan Keats were hoping to change this in 1969 while prospecting for Noranda. But after a month and a half in the backcountry, Soulis Joe’s silver remained elusive, and father and son emerged from the bush without finding it. They did not come out empty-handed, however, but found several other impressive samples that proved invaluable to Noranda. More than that, a family legacy of prospecting had begun. Keats and his son had become an excellent team and the two discovered the Point Leamington and Tally Pond deposits together. Keats worked for Noranda throughout the 1970s and 80s, and was involved in the Burnt Pond and Duck Pond discoveries. When it came time to retire, Keats was working beside all four of his sons — Allan, Fred, Calvin and Suley — and he opted to remain as camp cook to be close to them. When Ted Keats died on February 4, 2010, he was described as an independent, industrious, adventurous and generous man. Each of Keats’ sons has made a name for himself as a prospector, and together they have racked up an impressive list of finds. They also married into the Stares, Crocker, Barrett and Smith families, all involved in mining and prospecting. Now, Keats’ grandchildren and great-grandchildren are involved in the industry, four of them as CEOs. Twenty-one members of the five families over four generations have been involved in prospecting and mining, and in 2007 the Prospectors and Developers Association of Canada awarded the Keats-Stares family the Bill Dennis Prospector of the Year Award. Soulis Joe’s legacy remains as strong as ever. Although his silver remains lost, he has come to inspire what has been called Newfoundland’s first family of prospecting. Soulis Joe eventually settled down in the Bonavista Bay area, where he married and spent the rest of his life hunting, trapping, guiding and prospecting. A few modest landmarks bear his name: Soulis Brook flows out of Soulis Pond near Benton on the way to Gander, and another Soulis Pond lies west of Conne River, his original home on the south coast. Even though he has left his mark on the map of Newfoundland, his gravesite is unknown. His final resting place, just like his silver find, remains a mystery. CIM August 2010 | 57

cim news Northern Gateway cruisin’ for a cause by Chelsa Mayhew barbeque dinner during the two-and-a-half hour scenic cruise on the Chief Commanda II. Event proceeds were donated to a number of initiatives, such as the Scholarship Program and the 2010 Mining Teachers Tour, an event hosted by the Canadian Ecology Centre. “Special thanks go to our generous sponsors who made this event a resounding success,” says Tim Bremner, chairman and senior vice-president of Foraco Canada Ltd. “It is with ongoing support that we continue to raise awareness of existing opportunities in the mining industry.” The CIM Northern Gateway Branch is continuing its stride with its Annual Golf Tournament, to be held on September 17 at the High View Golf Course in the North Bay area. CIM CIM members enjoying some high seas fun

In June, the North Bay-based CIM Northern Gateway Branch hosted their Annual Boat Cruise on Lake Nipissing. Held in partnership with the Ontario Mining Association, the event kicked off the organization’s biennial conference. The group of 135 enjoyed great tunes and a fantastic

SPONSORS: Atlas Copco • Boart Longyear • Cementation • Canadore College • City of North Bay • FLSmidth • Foraco • Gardewine North • J.S. Redpath • Knight Piesold • Knox Insurance • MacLean Engineering • Mining Technologies International • Stantec • Sudbury Area Mining Supply & Service Association • Sandvik • Schauenburg Industries Ltd. and Wipware. O Chelsa Mayhew is the Northern Gateway Branch media chair

CIM welcomes new members Anderson, Robert, Botswana Adewole, Adeyinka, British Columbia Amstutz, Claudia, British Columbia Archibald, Eric, Ontario Avery, Christopher, Ontario Bartley, Chris, Ontario Beneteau, Donna, Ontario Bishop, Alasdair, Nova Scotia Boudens, Daniel, Ontario Boudreau, Catherine, Québec Bradford, Jason, Ontario Brodeur, Grant, Ontario Bush, Gregg, USA Cameron, Christopher Ian, Ontario Cape, Tim, Ontario Chapman, Andrew Robert, Ontario Coates, Stephen, Québec Coburn, Devon, Ontario Collins, Benjamin, British Columbia Cook, Lindsay, Ontario Cooper, Jordan, Ontario Currie, Rachel Olivia, Ontario

Dale, Lucas, Ontario Defina, Chris, Ontario DeJulio, Victor, Ontario Deshaies, Martine, Québec Dhal, Chandan, Ontario Dimock, Craig, Ontario Dumiso Bayani, Aobakwe, Ontario Duncan, Jim, Ontario Falaki, Mehdi, British Columbia Fang Lu, Wang, British Columbia Farsad, Dena, Ontario Ferrier, Dan, Ontario Finnie, Roxanne, British Columbia Flett, Lauren, Ontario Flynn, Thomas, Manitoba Forster, John Howard, Ontario Fyfe, Matt Russell, Ontario Gabatlhalefe, Ditiro, Ontario Grewal, Harpreet, British Columbia Grimes, Nyree, Ontario Gupta, Sumit, India Hamel, Frédéric, Québec

58 | CIM Magazine | Vol. 5, No. 5

Harris, Rebecca, Ontario Haviland, David, Ontario Haynes, Noel, Ontario Hey, Christopher, Ontario Hlouschko, Stefan, Ontario Hong, Jihoon, Ontario Hope, Justin, Ontario Horvath, Saralyn, Ontario Humphrey, Mike, British Columbia Idrees, Yasir, Ontario Inkster, Sean, Yukon Territory Jacobs, Anthony, British Columbia Kalra, Aarash, Québec Khan, Jahanzeb, Pakistan Knutson, Matthew, Ontario Kumar, Sandeep, India Kuuskman, Michaela, Ontario Landry, David, Ontario Latif, Shahid, Alberta Lee, Jennifer, Ontario MacEachern, Breanna, Alberta MacFadden, Bryan, Saskatchewan Mado, Otsile, Ontario Marsh, Allan, Nova Scotia

McGinn, Daniel, Ontario Molnar, Zsolt, Ontario Momini, Panteha, Ontario Morgan, Ashley, Alberta Morin, Samuel, Ontario Morreu, Robert, Ontario Moswete, Setso, Ontario Mulholland, Véronique, Ontario Norris, Jessica, British Columbia Nyoka, Lloyd, Ontario Oleskiw, Michael, Ontario Osmond, Sarah, Newfoundland and Labrador Owens, Brett, Ontario Pascoal, Anthony, Ontario Paul, Chris, British Columbia Pringle, Joshua, British Columbia Rahmati, Hossein, Alberta Ramadan, Ahmad, Ontario Rui Frutuoso, Alberto, Ontario Sabr, Abdel adim, Québec Samson, Ursule, Québec Saydou Bah, Mamadou, United Kingdom

Sekganedi, Kagiso, Ontario Shugg, Kelsey, British Columbia Simpson, Scott, Ontario Somers, Aaron, Ontario Soock, Stephen, Ontario Squires, Courtney, Ontario Staples, Paul, British Columbia Stewart, David, Ontario Stone, Michelle, Ontario Suh, Jangwon, Korea Tetland, Mikkel, Saskatchewan Toby, Jaclyn, Ontario Valino, Mary Joyce, British Columbia Vallejos, Javier Andres, Ontario Van Laren, Ariana, Ontario Weir, Trevor, Ontario Wheeler, Mark, Ontario Winkelmeyer, Ariel, British Columbia Yang, Gary, Ontario Yasmin, Shaon, Ontario

distinguished lecturers

| cim news

Engaging speakers engaging audiences Meet CIM’s distinguished roster of lecturers by Robbie Pillo Fostering CIM’s role as a community for leading industry expertise, the 201011 CIM Distinguished Lecturers series promises to keep the mining community up to speed on the next wave of industry information and developments. These leading experts in their fields are changing the face of the industry, inspiring their audiences and nurturing the young minds of tomorrow. In his presentation entitled “The role of boron in the design of superalloys,” renowned material science and engineering researcher Mahesh Chaturvedi presents an overview of his latest study on the effect of boron concentration on fatigue and fracture, as well as on the weldability of Inconel 718 superalloy. Chaturvedi says he is pleased to be part of the program: “Having received membership benefits from CIM for over 40 years, this is my way of expressing my thanks to this organization.” Acclaimed geologist and scientist James Franklin agrees. “CIM serves mining and exploration communities in many ways, and one of these is in its role of providing continuing education to its members. I’m pleased to be part of

the Distinguished Lecturers Program.” Franklin’s presentation, “Future mineral resource discoveries: new knowledge needed for discovery,” takes a look at innovative discovery and extraction technologies needed to meet the demands of rapidly developing nations. Unfettered by distance and difficulty of travel, our lecturers are determined to spark interest in their audiences and provide a catalyst for discussion. “The program provides an opportunity to discuss topics relevant to today’s minerals industry in a more intimate setting than the usual conference venues,” says Michael Doggett, a consultant with over 25 years of experience in the field of mineral economics. Doggett looks forward to sharing views on his presentation, “The long and short of the minerals industry: a tale of two extremes,” which focuses on the challenges and implications of operating in a business environment with often conflicting short- and long-term objectives. Norm Lotter’s presentation on process mineralogy, “Modern flowsheeting technology,” takes a look at this new hybrid approach. “It is still

very young and has plenty of opportunity for development; however, even as it stands, it is capable of delivering very high value to Greenfield and Brownfield projects, as well as improving current operations,” says Lotter. “My hope is to raise the visibility of these opportunities to a wider audience.” Noted for his work in sustainable development, David Rodier’s presentation, “Sustainable development — a passing fad or a strategic way forward,” uses practical examples to demonstrate the reasons why the mining, metals and petroleum industries need to take on their current and future operations with a strategic approach. “Depending on the priorities of the audience, I would attempt to weave in issues of local interest,” adds Rodier. The CIM Distinguished Lecturers series is made possible thanks to generous sponsors such as Atlas Copco and the Canadian Mining and Metallurgical Foundation that support CIM’s quest to help its members connect with some of the industry’s greatest minds. Be sure to book early and reap the benefits of this unique opportunity. CIM

CIM DISTINGUISHED LECTURERS 2010–2011 LINEUP

MAHESH C. CHATURVEDI

MICHAEL DOGGETT

JAMES M. FRANKLIN

NORMAN O. LOTTER

DAVID D. RODIER

University of Manitoba, Winnipeg, MB

HanOcci Group, Vancouver, BC

Franklin Geosciences, Nepean, ON

Xstrata Process Support, Falconbridge, ON

Retired, Noranda Inc. (38 years); Hatch, (5 years), Mississauga, ON

BOOK NOW: www.cim.org/activities/lecturers2011.cfm August 2010 | 59

cim news

Setting the stage Project update on CIM’s new IT infrastructure by Andrea Nichiporuk CIM’s information technology infrastructure overhaul project, first introduced to CIM Magazine readers in the May 2010 issue, is well underway. Once fully implemented, the new systems and website will allow CIM to dynamically access, analyze and leverage information and knowledge. An important component of CIM’s Blueprint Strategy, we are laying the foundation for CIM’s growth, in terms of enhanced services, membership resources and relevance to the mining industry in Canada, as well as internationally.

TAKING CIM TO A WHOLE NEW LEVEL To remain competitive in today’s technology-driven world, a system evolves with the times, adapts to any given situation and produces results quickly. The new IT infrastructure will enable CIM to do just that — and more. “We are building the foundation, creating an environment where all of CIM’s constituents can leverage these new technologies to better serve their groups and mandates,” says Jean-Marc Demers, CIM’s senior director of business management and strategic development. This integrated system environment, based on the open .net platform, is comprised of four new systems which will 60 | CIM Magazine | Vol. 5, No. 5

interface with our existing financial management systems. The new systems include: • association/contact relationship management (CRM) • exhibitor management • web content management • document management

IF YOU BUILD IT, THEY WILL COME Although not yet visible on the current CIM website, the progress that has been made so far on the project is substantial. Building a system of this magnitude and capability is a major undertaking. To ensure it remains on track, CIM Council appointed a steering committee representing various CIM constituents to oversee the development of the project, which has been laid out in three phases: • Phase 1 — Developing and implementing the IT systems architecture, setting up the association and exhibition management systems, and creating the user experiencedesigned website. • Phase 2 — Developing specific areas of the website including: technical paper management, CIM programs and awards, publications, advertising, and sponsorship management.

cim news • Phase 3 — Working collaboratively with CIM stakeholders in maximizing the efficiency of the new IT infrastructure. The rationale behind the change came from CIM leadership’s strong desire to improve on and enhance our services to existing and future members. Updating the IT infrastructure is the key component of this objective. With a new infrastructure in place, the possibilities will be virtually endless and will include: • easier access to technical information; • better resources to facilitate and promote networking and knowledge sharing; • efficient and user-friendly web resources; • streamlined event management and registration tools; • instant updates of member information; • multi-lingual capabilities • enhanced search capabilities; • greater collaboration with other organizations; and so on.

THE PROJECT TO DATE Although Phase 1 is still approximately a year away from being completed, a lot of work has gone on behind the scenes. With a project of this scope and size, CIM has taken a staged approach to its implementation. “With such a major change to CIM’s systems, website and business processes, it is essential that we implement them in manageable stages within the

capital funding for project,” says Peter Becu, IT project manager and acting IT director. Work completed to date includes: • Development of a project charter. • Selection of vendors and implementation partners. • Completion of contract negotiations with chosen partners. • Consultation with CIM stakeholders through online surveys, card sorting exercises, one-on-one interviews, and focus groups. The latter, held during the CIM Conference and Exhibition this past May, consisted of groups representing a cross-section of CIM’s membership. • Implementation of minor “cosmetic” changes to the existing CIM website, as members await the launching of the new website scheduled for the end of 2010. • Commencement of the initial training of CIM staff in the association management system. • Initiation of the process of building internal competencies to support the systems and websites, in order to become fully autonomous. New national office positions will include a director of IT, a senior systems analyst and web developer. This project will provide CIM with the foundation for growth, securing its future for many years to come. Watch for updates on this and other CIM initiatives in future issues of CIM Magazine. CIM

CIM – A COMMUNITY FOR LEADING INDUSTRY EXPERTISE

BE THERE

BE SEEN

BE KNOWN

CIM EXHIBITION 2011 WHERE CANADA PRESENTS EQUIPMENT, SERVICES AND TECHNOLOGY TO MINING EXPERTS AND THEIR COMMUNITIES

RESERVE YOUR BOOTH SPACE TODAY Contact Martin Bell, 514.939.2710, ext. 1311 | mbell@cim.org | www.cim.org/montreal2011 Exhibition: MAY 22–24 | Conference: May 21–25 | Palais des congrès de Montréal

70% booths sold August 2010 | 61

cim news | award winner Beyond the call of duty Grassroots leader Adam Tonnos is making his community a better a place by Robbie Pillo strategies to technical ingenuity — by listening and putting into practice the things he has done to make BESTECH so successful.”

“Aha!” moment

Easter Seals Local Ambassador Amy Adair (right) presenting Tonnos with Caring Corporate Award for BESTECH

Since graduating from Queen’s University’s engineering physics department, Sudbury-native Adam Tonnos has put his ideas — and ideals — into action, answering the call to lead and making his community a better place to live, work and raise a family. For his efforts, Tonnos received this year’s CIM Past Presidents’ Memorial Medal, presented to a CIM member 45 years of age or less who has set an outstanding example to the organization’s and industry’s young men and women. Tonnos began his career with BESTECH, a Canadian leader in industrial automation, environmental monitoring and software development, during his second year of university, and has risen through the ranks to become the company’s sales manager. “After working three weeks at my summer job at a local bakery and having my ears and nose stuffed with flour all day, I had enough,” he recalls. “So, I emailed Marc Boudreau, BESTECH’s founder, and asked if my C.V. had come through.” This pro-active move 62 | CIM Magazine | Vol. 5, No. 5

not only secured Tonnos a summer position as a software developer at BESTECH, but another summer job the following year and, consequently, a full-time position upon graduating in 2002. Tonnos had no idea his career path would lead him to the mining industry. “I wanted an organization that I would be able to contribute to,” he says. “I was looking at it from that perspective as opposed to the actual role. At that time, BESTECH had only 15 employees and I saw its huge growth potential. I wanted to know how the company worked, get a feel for the industry it served, and see if I could make a difference within it.” From project manager to architect, Tonnos has played several key roles that contributed tremendously to the company, before moving on to sales management. “As the team grew, I was able to take on additional responsibilities and project management roles,” he explains. “I worked closely with the CEO, Marc Boudreau and I was able to learn so much from him — from sales

A defining moment in Tonnos’ life came while walking with his wife in downtown Sudbury one evening. “I just turned to her and said ‘I want to be a community leader’ — that was it.” Ever since then, Tonnos has been hard at work giving back to his community, from mentoring a child in the Big Brothers program to participating in the Canadian Cancer Society’s Relay for Life walk. “Giving back to the community and volunteering is an important part of the BESTECH culture as well, and management supports its team members joining local community organizations’” says Tonnos. “These experiences are unbelievably rewarding, not only for personal growth, but also that you are contributing. The acknowledgment and gratitude I’ve received has taught me to show my appreciation to those who are doing good things for others. ” “I have always had a hard time saying no,” says Tonnos. And CIM could not be more pleased. Much like his experience at BESTECH, Tonnos has held several positions on CIM’s Sudbury Branch executive — treasurer, then vice-chair and today as branch chair. When Tonnos decides to get involved, he jumps in with both feet. “Having that vision of where I want to be, at least in the short-term, helped me to make the decision,” he says. “As long as the volunteer work is aligned with who I am and what I value, I’ll get in there.”

Leading by example Inspired by the BESTECH’s learning culture, Tonnos hopes to reciprocate. “The willingness to not only grow a company but to grow its employees as

cim news

well makes me want to treat people the same way that I have been treated, especially now since the BESTECH team is growing so quickly. Dialogue happens more freely when there is a sense of learning from one another. Mutual learning and open communication are powerful tools in a fast-paced innovative company like BESTECH.” Tonnos is now embarking on a new mentoring endeavor at the company. He plans to coach employees to help them grow personally and professionally in an effort to establish long-term goals and objectives for themselves. “I believe that introducing employees to goal-setting and planning will help them and the company grow exponentially,” he explains. Tonnos is a living testament to the benefits you receive from becoming actively involved. As such, he urges students entering the workforce to get involved. “Whether through your

company or community involvement, there are plenty of opportunities to leave your mark,” he says. “If those opportunities are not evident, then ask people where help is needed. Whether through CIM or at BESTECH, I never worked towards the role or position I was hired for, but rather towards what needed to get done. Going beyond my duty has helped both my professional and personal advancement.” Tonnos credits his desire to contribute to the industry and his community to the loving relationship he has at home with his wife and three young children. “My wife has played a tremendous part in helping me become the person I am today,” he says. “Her ability to think and plan for the long-term complements my energy and enthusiasm. I absolutely want to be a positive influence in the lives of my children.” It is this commitment that makes for an outstanding community leader. CIM

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Planting the seeds for blooming ties Joint Women in Mining – CIM Toronto Branch Luncheon by Rick Hutson This past May, Women in Mining (WIM) and the CIM Toronto Branch held a joint luncheon at the National Club. Keynote speaker Lynda Bloom, president and CEO of Halo Resources Ltd., related the latest developments in Northwest Manitoba, including the recent discoveries by HudBay Minerals in Snow Lake, Halo Resources in Sherridon and VMS Ventures in Reed Lake. Bloom pointed out the region’s significant change in direction when the major players adopted a royalty strategy of optioning off properties to junior mining companies, bringing the region into a new era of dividend-paying investments. She also described the amount of under-explored potential in the region — a big scope for future discoveries. Other presenters included Lorraine Godwin, business manager for Geosoft Inc. and co-chair of WIM Toronto, and Jean Lucas, business development director and managing partner for Eco Waste Solutions and vice president of WIM Canada. CIM president Chris Twigge-Molecey was also in attendance and presented a summary of CIM’s plans and objectives for the coming year. WIM and the CIM Toronto Branch plan to continue the annual joint luncheon as a vehicle to provide timely and important information to members of both groups and to encourage cooperation and joint activities. CIM

“member tools” O Rick Hutson is the chair of the CIM Toronto Branch August 2010 | 63

cim news | boursiers Un stage doublement avantageux par Marlene Eisner et Maria I. Anelli Le 25 janvier dernier, la section Québec de l’ICM remettait en collaboration avec l’Université Laval, quatre bourses totalisant 1000 $ lors de la « Soirée conférences étudiantes ». Cet événement annuel de compétition de présentations de stage, se déroulait devant des membres de la section ainsi que des étudiants et des professeurs de l’université. Simon L’Heureux, âgé de 25 ans et étudiant en 4e année du programme Génie des matériaux et de la métallurgie, avait concouru pour l’expérience oratoire. Toutefois, il fut très heureux que sa présentation d’un stage chez Rio Tinto Alcan (usine de Laterrière) avait séduit l’auditoire d’une soixante de personnes lui méritant une bourse de 400 $. Son choix se porta spontanément vers ce stage fort apprécié vu les projets d’équipe stimulants auxquels il avait participé : notamment, un projet ceinture verte pour l’optimisation de l’enlèvement du sodium dans l’aluminium et un projet pour la réduction du gaz naturel pour le chauffage des creusets pour le transport de l’aluminium.

La semaine minière du Québec 2010 au Saguenay

« Je devais faire des campagnes d’échantillonnage avec les techniciens pour ensuite analyser les données recueillies et ainsi pouvoir améliorer les procédés », expliqua M. L’Heureux. Premier de sa famille à œuvrer dans l’industrie minière, le tout nouveau bachelier originaire de St-Tite, mais qui habite à Québec depuis 2005, a toujours su qu’il poursuivrait des études dans ce domaine. Cette somme contribua donc, à défrayer ses frais de scolarité et à réduire ses dettes. Dans cinq ans, M. L’Heureux souhaiterait idéalement occuper un poste d’ingénieur de procédé en métallurgie offrant de nombreux projets motivants ainsi que des perspectives de carrières et la possibilité de voyager. Selon lui, dans les prochaines années l’industrie minière canadienne fera face à des défis reliés à l’exploitation d’une façon économique tout en réduisant l’emprunte sur l’environnement. « De plus, il est nécessaire de continuer à former de la main d’œuvre qualifiée pour demeurer compétitif avec les autres pays », conclut-il. ICM

MISE À JOUR

par Steve Thivierge Pendant la semaine minière du Québec, la section Saguenay de l’ICM a organisé deux activités. Une rencontre intitulée le Bar des mines, un forum de discussion sur le sujet : « L’acceptabilité sociale du développement minier », a eu lieu le 28 avril. Cette activité gratuite et ouverte au public comprenait des intervenants de différents milieux pour ouvrir et entretenir la discussion en franche camaraderie : Olivier Riffon, un écoconseiller diplômé; Ursula F. Larouche, une biologiste du ministère; Yoland Dubé, directeur général de la mine Niobec; Bernard Lapointe, président de Ressources d’Arianne; et MarieLine Tremblay, hydrogéologue et modératrice du forum. Pour clore la semaine minière, le traditionnel Party de crabes du 30 avril a réuni environ 80 participants à la marina du Saguenay. Des étudiants, des prospecteurs, des professeurs, des gens de l’industrie et de services ont fraternisés ensemble. ICM O Steve Thivierge est président de la section Saguenay de l’ICM 64 | CIM Magazine | Vol. 5, No. 5

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Préparer le terrain Mise à jour du projet sur la nouvelle infrastructure des TI de l’ICM

Le projet de réorganisation de l’infrastructure des technologies de l’information de l’ICM, présenté d’abord aux lecteurs de CIM Magazine dans le numéro de mai 2010, progresse bien. Une fois terminés, les nouveaux systèmes et le site Web offriront à l’ICM des outils dynamiques pour accéder à des connaissances et à de l’information, pour les analyser et les exploiter. Il s’agit d’une composante importante de la stratégie modèle de l’ICM alors que nous posons des bases pour asseoir la croissance de l’ICM sur le plan de l’amélioration des services, des ressources offertes aux membres et de la pertinence au secteur minier canadien, de même qu’à l’échelle internationale.

AMENER L’ICM À UN NIVEAU TOTALEMENT NOUVEAU Pour demeurer concurrentiel dans le monde dominé par la technologie d’aujourd’hui, il est indispensable de disposer d’un système qui évolue avec le temps, qui s’adapte à toutes les situations et qui produit des résultats rapides. La nouvelle infrastructure de TI permettra à l’ICM de faire exactement cela — et plus encore. « Nous établissons la base, créons un environnement où toutes les parties prenantes de l’ICM pourront tirer parti de ces nouvelles technologies afin de mieux servir leurs groupes et remplir leur mandat », explique JeanMarc Demers, directeur principal, gestion des affaires et développement stratégique de l’ICM. Cet environnement système intégré, reposant sur la plateforme open .net, est constitué de quatre nouveaux systèmes qui s’ajoutent à nos systèmes de gestion financière. Les nouveaux systèmes comprennent : la gestion de relations association/contact (CRM), la gestion d’exposants, la gestion du contenu du site Web et la gestion de documents.

SI ON LE CONSTRUIT, ILS VIENDRONT Bien qu’ils ne soient pas encore visibles sur le site Web de l’ICM, les progrès qui ont été réalisés jusqu’à maintenant dans le projet sont importants. Bâtir un système de cette ampleur et d’une telle capacité représente une entreprise importante. Pour être sûr de maintenir le cap, le Conseil de l’ICM a nommé un comité directeur représentant les différentes parties prenantes de l’ICM afin de superviser le déroulement du projet qui a été décomposé en trois phases : • Phase 1 — Conception et mise en œuvre de l’architecture des systèmes de TI, mise en place des systèmes de gestion des associations et des exposants et création du site Web reposant sur les expériences d’utilisateur • Phase 2 — Mise au point de sections spécifiques du site Web dont : gestion d’articles spécialisés; programmes et prix de l’ICM; publications; publicité; et gestion des commanditaires • Phase 3 — Collaboration avec les partenaires de l’ICM afin de maximiser l’efficience de la nouvelle infrastructure informatique Le changement a été motivé par la ferme volonté de la part de la direction de l’ICM d’améliorer et d’accroître les services

offerts aux membres actuels et futurs. La mise à jour de l’infrastructure informatique constitue la pierre angulaire de cet objectif. Une fois la nouvelle infrastructure en place, les possibilités seront pratiquement infinies. Elles comprendront notamment : un meilleur accès à des renseignements techniques; des ressources plus efficaces favorisant le réseautage et le partage des connaissances; des ressources Web efficaces et conviviales; des outils de gestion d’événements et d’enregistrement; des mises à jour instantanées des renseignements relatifs aux membres; des capacités multilingues; des capacités de recherche plus poussées; et une collaboration plus étroite avec d’autres organisations; etc.

LE PROJET À CE JOUR Bien que la phase 1 ne sera pas parachevée avant un an environ, beaucoup de travail a été réalisé en coulisse. En raison de l’envergure et de la portée du projet, l’ICM a opté pour une mise en œuvre progressive. « Vu l’importance de la transformation des systèmes, du site Web et des processus administratifs de l’ICM, nous devons absolument privilégier une mise en œuvre réalisable selon les fonds d’immobilisations disponibles à chaque étape du projet », affirme Peter Becu, chef du projet des TI et directeur des TI par intérim. Parmi les travaux effectués à ce jour, mentionnons : • élaboration d’une charte de projet; • sélection des fournisseurs et des partenaires de mise en œuvre; • parachèvement des négociations contractuelles avec les partenaires désignés; • consultation des partenaires de l’ICM par l’intermédiaire de sondages en ligne, exercices de classement de cartes, entrevues face à face et groupes de discussion. Ces derniers, organisés durant le Congrès et Salon commercial de l’ICM en mai de cette année, consistaient en groupes représentant un échantillon des membres de l’ICM; • mise en œuvre de changements mineurs de pure forme au site Web actuel de l’ICM, alors que les membres attendent le lancement du nouveau site Web prévu à la fin de 2010; • début de l’initiation du personnel de l’ICM au système de gestion des associations; • démarrage du processus de développement de compétences internes pour appuyer les systèmes et les sites Web, en vue d’une autonomie absolue. Les nouvelles positions au sein du bureau national comprendront un directeur des TI, un analyste principal des systèmes et un développeur Web. Ce projet dotera l’ICM d’assises propices à sa croissance et lui permettra de préserver son avenir pendant de nombreuses années encore. Des nouvelles à ce sujet et d’autres initiatives de l’ICM seront publiées dans les prochains numéros de CIM Magazine. ICM

ICM — UNE COMMUNAUTÉ POUR UNE EXPERTISE DE PREMIER PLAN

cim news Un intérêt pour la génie mécanique par Marlene Eisner et Maria I. Anelli À la prochaine rentrée des classes, MarcAntoine Bédard pourra se concentrer à la réussite de ses études sans trop se soucier d’argent grâce à la bourse commémorative J.D. « Pat » Patterson reçue au début de 2010. La société de l’ingénierie et de l’entretien de l’ICM offre annuellement cette bourse non renouvelable. Âgé de 20 ans, M. Bédard amorcera sa deuxième année du BAC en Génie mécanique à l’Université Laval, et cette bourse de 1500 $ contribue à réduire son fardeau pécuniaire. « Le concours est ouvert à un enfant d’un membre national de l’ICM qui commence ses études postsecondaires avec l’intention de poursuivre une carrière dans l’industrie minière », il a expliqué. M. Bédard a habité des villes minières depuis son enfance ce qui a inévitablement accru sa fascination pour ce domaine. De plus, son père a étudié en Génie minier à l’Université Laval et a travaillé de nombreuses années pour la Noranda Inc. devenu Xstrata.

SOYEZ PRÉSENT

Il a longuement réfléchi avant de choisir une sphère d’étude à la faculté de Génie. Toutefois, passionné par tout ce qui touche la mécanique et la conception de systèmes, le Génie mécanique s’imposa. Où sera M. Bédard dans cinq ans ? « Je compte retourner en Abitibi-Témiscamingue après mes études. Mon intérêt porte vers tous les aspects du Génie mécanique liés à l’industrie minière, tel le dessin, la conception mécanique, la mise en service des équipements et des procédés. Alors, ce secteur fera sans doute partie de mon quotidien », il a ajouté. Entre temps, il complète un stage au service de mécanique industrielle au sein du Groupe Stavibel; une firme de services professionnels d’ingénierie dont plusieurs projets sont liés à l’industrie minière. « Le défi majeur de l’industrie minière est d’offrir un climat de travail intéressant, en gardant une exploitation profitable de la ressource, et ce, dans le plus grand respect de l’environnement », a conclu M. Bédard. Parions, qu’il saura relever le défi. ICM

SOYEZ VU

SOYEZ RECONNU

SALON COMMERCIAL DE L’ICM 2011 UNE DÉMONSTRATION UNIQUE AU CANADA D’ÉQUIPEMENT, DE SERVICES ET DE TECHNOLOGIES À L’INTENTION DES EXPERTS DU SECTEUR MINIER ET DE LEURS COMMUNAUTÉS

RÉSERVEZ VOTRE STAND DÈS AUJOURD’HUI Personne-ressource : Martin Bell, 514-939-2710, poste 1311 | mbell@cim.org www.cim.org/montreal2011 Salon commercial : du 22 au 24 mai | Congrès : du 21 au 25 mai Palais des congrès de Montréal

70% des stands déjà réservés 66 | CIM Magazine | Vol. 5, No. 5

calendar CIM EVENTS

AROUND THE WORLD

South Central BC Branch Annual General Meeting and Convention September 15-17 | Kamloops, BC Contact: Maria Catalfamo maria.catalfamo@teck.com

XV Peruvian Geological Congress September 27-October 1 Centro de Convenciones Cusco, Cusco, Perù www.congresosgp.com

Saskatoon Branch General Interest Night September 16 | Saskatoon, SK Contact: Jim Corman Jim.Corman@areva.ca Sudbury Branch General Membership Meeting September 16 | Sudbury, ON Contact: Gary Poxleitner gary.poxleitner@valeinco.com Toronto Branch Luncheon Meeting September 16 | Toronto, ON Contact: Rick Hutson rick@cjstafford.com Northern Gateway Branch Golf Tournament September 17 | North Bay, ON Contact: Tim Bremner Bremner@foraco.com Section Québec Activité étudiante : bière et pizza 17 septembre | Québec, QC Responsable : Pierre Verpaelst Pierre.Verpaelst@mrnf.gouv.qc.ca New Brunswick Branch 35th Annual Convention September 23-25 | Bathurst, NB Contact: Barbara Rose Brose@xstratazinc.ca Vancouver Branch Luncheon Meeting September 23 | Vancouver, BC Contact: Alex Doll alex.doll@cimvancouver.org Cobalt Branch Seafood Night September 30 | Haileybury, ON Contact: Todd Steis todd.steis@mti.ca

Mine Waste 2010 September 29-October 1 Sheraton Perth Hotel, Perth, Australia www.minewaste2010.com SEG 2010 Conference October 2-5 Keystone, Colorado, USA www.seg2010.org CRO Summit – Sustainability 2.0 November 3-4 Union League Club of Chicago, Chicago, Illinois, USA www.crosummit.com Process Mineralogy ‘10 November 10-12 Vineyard Hotel, Cape Town, South Africa www.min-eng.com/processmineralogy10 BioHydromet ‘10 November 8-9 Vineyard Hotel, Cape Town, South Africa www.min-eng.com/biohydromet10 Enermin 2010 November 14-16 Sheraton Santiago Hotel and Convention Centre, Santiago, Chile www.enermin2010.com Mine Closure 2010 November 23-26 Sheraton Miramar Hotel and Convention Centre, Viña del Mar, Chile www.mineclosure2010.com SIPPE 2010 Shanghai 5th International Petroleum and Petrochemical Technology Equipment Exhibition November 25-27 Shanghai New International Exhibition Centre, Shanghai, People’s Republic of China www.sippe.org.cn MPES 2010 Mine Planning and Equipment Selection December 1-3 www.ausimm.com.au/mpes2010

August 2010 | 67

Organizing Committee Honorary Chair Tito Martins Co-chairs Roy Slack Al Akerman Technical Program Samantha Espley Marcel Djivre Trade Show John Larsen Martin Bell

October 24-27, 2010

Welcome to MEMO Hosted by CIM's Sudbury Branch, Metal Mining Society, and Maintenance and Engineering Society, and with support from the CIM Northern Gateway Branch, the Maintenance Engineering / Mine Operators' Conference (MEMO) 2010 will be held from October 24 to 27 at Laurentian University in Sudbury, Ontario.

Tours Mike Garbutt Ryan Dutrisac Social Program George Darling Richard Jundis Mining in Society Sophia Gallagher Claudine Beausoleil Accommodations Paul Reid Sponsorship/Advertising Oliver Koski Jean Vavrek Publicity/Marketing Marlene Moore Treasurers Peter Vilgren Lester Kneen Administrator Cindy Meeks

Sudbury has always been recognized as one of the world’s most important mining areas. Within it, there is a new economy, both in terms of operations and services, which has led to a renewed focus on environmental solutions, new and improved relations with First Nations partners, and a better understanding of the mining industry by the general public. Designed with this in mind, a theme of "Mining in the new Economy" was chosen to showcase strategies that Canadian mining companies use to remain competitive, and to highlight the increasing need for cooperation between operations and maintenance. Building on the theme, the Technical Program will focus on both underground and surface mining operations. The Plenary Session will include Vale’s president and CEO, Tito Martins, and will deliver vital information and know-how in light of the current global economic conditions. The trade show will include a large outdoor equipment display, and a new addition to the MEMO conference, the Mining in Society show will feature a series of interactive displays intended to educate local youth about mining. The show is open to the public and admission is free.

Registration Chantal Murphy

Mark your calendar and be in Sudbury for MEMO 2010 — this is one industry event you won’t want to miss!

Volunteers Charles Graham Mike Mayhew

Al Akerman and Roy Slack Conference co-chairs

FRIENDS

NICKEL

GOLD

SPONSORS

Plenary Session In keeping with the conference theme — Mining in the New Economy — the Plenary Session will bring together a panel of leading industry experts to discuss the significant changes resulting from the last economic downturn and offer their views on where the industry is going. Including Tito Martins, president and CEO of Vale and MEMO honorary chair, the session promises to be as entertaining as it is enlightening.

Photo courtesy of Normand Huberdeau/NH Photographes

Field Trips Maximize your conference experience by seeing Sudbury’s latest technological advances first-hand. Field trips, held on Thursday, October 28, are limited in capacity so be sure to book early.

Stainless Steel Technology Stainless Steel Technology employs the latest Cad 2D & 3D solid modelling, parametric modelling & Cad/Cam software to enhance engineering and manufacturing capabilities. The site boasts a one-ofa-kind drop-test tower that is able to perform non-destructive braking trials on personnel conveyance devices. Tour the facilities with a chance to view a drop test. Time 9:00–11:00 | Cost $80 MOL – Materials Testing Lab Located at the Willet Green Miller Centre, the Materials Testing Lab houses a specially designed testing facility for steel cables that has serviced the mining industry for close to 20 years. The trip will include a tour of the facility and viewing a rope test. Time 9:00–11:00 | Cost $80 Rail-Veyor Technologies Rail-Veyor is a cross between a railroad and a conveyor system. This novel system is able to load and dump on the fly, negotiate a 20 per cent grade and turn corners without difficulty. Propelled by electrically powered drive stations distributed along the line, it is also energy-efficient and produces virtually no emissions. The trip will include a site visit to the Rail-Veyor at a Sudbury Basin operation. Time 9:00–11:00 | Cost $80

Photo courtesy of James Hodgins for Vale

Xstrata Nickel – Nickel Rim South Mine Nickel Rim South Mine is Sudbury’s newest operation. The project was started in 2003 and was handed over to operations at the end of March 2010. The trip will include an underground tour focused on infrastructure, and a short surface tour. Time 8:00–12:00 | Cost $80

MIRARCO VR Lab The Virtual Reality Laboratory (VRL) allows for immersive 3D presentations before a 3.9-million pixel, 22-foot concave screen. MIRARCO provides VRLs to clients for investor relations purposes, mine planning and design, exploration reviews and training sessions. The trip will include a VR lab demonstration as well as a presentation on seismic analysis and risk assessment. Time 9:00–10:00 | Cost $80 (date to be confirmend) Totten Mine Surface Tour Totten Mine, Vale’s first mine in the Sudbury Basin in 35 years, is a $400 million project. Work began in 2007 and is now on schedule for completion for a spring 2011 opening. The 2,200 tonne-per-day operation will create 150 jobs and has a projected mine life of 20 years. While on site you will tour the hoisting plant and headframe, high-density sludge plant and water containment infrastructure, large-diameter raise boring for the ventilation system and main FA fan installation. Time 9:00–11:00 | Cost $80 August 2010 | 69

Photo courtesy of Normand Huberdeau/NH Photographes

Technical Program

Mining in Society

Sessions will offer insight on key topics of interest on four major themes:

A new addition to the MEMO conference, the Mining in Society show (MIS) is industry’s chance to connect with the public — its potential customers and future employees. Held in Laurentian University’s Fraser Hall on Monday, October 25 and Tuesday, October 26, MIS will feature pavilions displaying seven main areas of mining — Exploration, Mining/Processing, Sustainability, Products/Fabrication, Education, New Frontiers and Health Safety — allowing visitors to take a walk through the mine cycle.

Human Resources/Management • Innovation and Technology • Mining Experiences • Maintenance and Engineering VIEW THE COMPLETE TECHNICAL PROGRAM ONLINE AT

www.cim.org/memo2010

Participants will also be treated to Dynamic Earth’s underground tour, which recreates over a century of mining in Sudbury, and includes several activities at the Science North complex. Exhibiting at MIS is free — CIM provides the space and facilities. Visit www.cim.org/memo2010 and find out how you can participate.

Social Program Opening Reception Mix and mingle with fellow conference participants at the MEMO 2010 Opening Reception, while enjoying a selection of fine wine and cheeses, and some light entertainment. Date Sunday, October 24 | Time 18:30-20:30 | Location Science North | Cost Free | Note Shuttle bus leaves from hotels between 17:30 and 18:30 MEMO 2010 Gala At the MEMO 2010 Gala, a taste of Italy awaits you! Held at Sudbury’s acclaimed Caruso Club, the evening’s entertainer, comedian Mike Bullard, will amuse the audience with his quick wit and distinctive brand of insight and humour. Date Monday, October 25 | Time 18:30–22:30 | Location Caruso Club | Cost $125 | Note Shuttle bus leaves from hotels between 17:30 and 19:00

70 | CIM Magazine | Vol. 5, No. 5

The Golder Charity Casino Night Place your bets and hope that lady luck is on your side at the Golder Charity Casino Night, hosted by Golder Associates Ltd. Items will be auctioned silently throughout the evening. All proceeds from the auction and a portion of the ticket sales will benefit the Miners for Cancer charity. Hors-d’oeuvres will be served. Date Tuesday, October 26 | Time 19:00–22:00 | Location Holiday Inn, Room Geo D and E | Cost $34 (includes play chips for casino tables) | Note A cash bar will be available Conference Luncheons Lunch will be provided to conference goers, as part of their registration fees. Date Daily from October 25 to 27 | Time 11:30 to 13:30 | Location In the tradeshow area | Cost Extra luncheon tickets can be purchased for $20 each

Photo courtesy of Normand Huberdeau/NH Photographes

Student Poster Competition Be one of the post-secondary students who will showcase their talents to leading industry professionals on a wide range of topics — from innovative mining methods to mining health and safety and environment. Cash prizes will be awarded.

Accomodations Special conference rates are available (please reference ”MEMO 2010 from CIM”). Room blocks at the Hampton Inn and Homewood Suites will be released on September 8, and on September 23 for the other hotels. HOTELS

Holiday Inn Sudbury 800.461.4822 www.hisudbury.ca Best Western Downtown 866.sudbury www.bestwesternontario.com Radisson 1.800.333.3333 www.radisson.com/sudburyca Quality Inn 1.800.461.1120 www.qualityinnsudbury.com Hampton Inn 705.523.5200 www.hamptoninn1.hilton.com Homewood Suites 705.523.8100 www.homewoodsuites1.hilton.com

NOW SOLD OUT!

Trade Show Learn about the tools, technologies, services and other opportunities to foster the strength of your operation. EXHIBITORS Company

Booth

3M Canada Company

255 106

King Packaged Materials Company

110

ABB/Simsmart ABC Canada Technology Group

223

Levert Executive Worldwide

108

Acklands-Grainger Inc.

218

Levert Personnel Resources/ 105 Levert WorkSafe Services

Atlas Copco Construction and Mining Canada

213

Maclean Engineering & Marketing Co. Limited

111

McDowell Brothers Industries

217

Mine Design Technologies

243

Mining Technologies International Inc.

280

Cattron-Theimeg Canada Ltd. 282

MPI Mobile Parts Inc.

101

Cementation Canada Inc.

253

Nordic Mine Technology Inc.

219

109

Normet Canada Ltd.

254

245

Orica Canada, Inc.

244

Cubex Limited

102 225

Penguin Automated Systems Inc.

234

Dyno Nobel Canada FLSmidth Ltd.

286

R.D.H. Mining Equipment

220

Four Leaf Solutions Inc.

285

221

Golder Associates Ltd.

264

ROCK-TECH Sales & Services Ltd.

Hatch

103

Sandvik Mining and Construction

104

HLS HARD-LINE Solutions Inc. 265

SKF Canada Limited

235

Horne Conveyance Safety Ltd. 233

Toromont CAT

224

Industrial Fabrication Inc.

212

274

ITT Water & Wastewater

273

TSI Group (Incorporating Sam Computers)

J.S. Redpath Limited

215

Ultra Seat Corporation

107

Jennmar Canada

210

Walden Equipment

112

BASF Construction Chemicals 275 CANMET Mining and Mineral Sciences Laboratories

283

Cast Resource Equipment Limited

263

Chess Controls Inc. COGEP

www.cim.org/memo2010

HISTORY OF

economic geology Nevada-type gold deposits (Part 2) By R.J. “Bob” Cathro, Chemainus, British Columbia

Although the Mercur Mine, situated in Utah about 300 kilometres east of Carlin, Nevada, began production in 1898 and is a Nevada-type disseminated gold deposit, it is not recognized as the first discovery of its type. The reason is that geologists did not realize it was a distinct deposit type until 1968 (Cathro, 2010). Although several small examples of the family had been discovered in Nevada ~Kaufman, 1992 much earlier in the 20th century, first prize goes to the Carlin deposit, which was discovered in 1961 by John Livermore and Alan Coope of Newmont Mining Company. Not only did they have the vision to imagine, from a study of the published literature, that this gold deposit model must exist, they proved it by finding a commercial example. At the time of the discovery, Newmont had virtually no competition for gold exploration in Nevada because the price was fixed too low to make exploration attractive. Moreover, everyone thought that the early prospectors had found all the gold that occurred at surface using gold pans and shovels, and none of the known discoveries were of commercial size or grade. This deposit type is most accurately described with the unwieldy name “sediment-hosted disseminated gold,” and locally called “Carlin-type.” However, it is referred to in this series as “Nevada-type” because Carlin is too site-specific. In actual fact, most of the deposits of this type that have been discovered display important differences to Carlin and to each other. In the early days, they were also called “noseums,” or invisible gold, deposits because the gold was literally invisible in both fresh and weathered specimens. The flakes were so fine that they floated in running water, could not be concentrated in a gold pan, and did not congregate in placer deposits. The Carlin discovery demonstrates how far the science has advanced in the last 50 years and ranks as one of the 118º 116º 115º 117º greatest accomplishments in modern economic geology. Who would have predicted that a previously unrecogJerritt nized deposit model, particularly of an ancient and valuCanyon Getchell able metal like gold, could quickly result in one of the trend RMT world’s best gold districts? Unlike the world-class mines that have been the main focus of this series until now, 41º Carlin was not an obvious target that an experienced prospector could recognize and envisage becoming a mine once someone could solve the transportation problems and raise the necessary development capital. Between the start of production at the Carlin Mine in 1965 and the end of 2008, Nevada-type deposits proAlligator 40º Ridge duced a cumulative total of 5,077 tonnes (157.9 million troy ounces) of gold (Price, 2009). This amounts to 3.2 per cent of total world production of 159,000 tonnes (5.1 Nevada billion ounces) since the beginning of civilization (U.S. Geological Survey estimate). Miles 0 25 50 100 Newmont, a name created by a combination of New York and Montana, is a major American mining company 39º 0 25 50 100 Kilometers with a long and proud history. It was the creation of William Boyce Thompson (1869-1930), one of the most Major trends of Nevada-type gold deposits in northeastern Nevada. Gold deposits are successful mining investors, executives and promoters of shown by circles; RMT = eastern limit of the Roberts Mountain Thrust (allochthon). his generation. Thompson was born in Montana and Figure provided by Don Sweetkind of the USGS [from Cline et al. (2005); modified by raised in Butte, then briefly attended Columbia College of Mike Cathro] “(Carlin) would prove to be a monumental discovery of profound importance to Newmont and, furthermore, it would lead to a revival of the long dormant gold mining industry in Nevada.”

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72 | CIM Magazine | Vol. 5, No. 5

HISTORY OF

economic geology Mines in New York before heading for Wall Street. His first big breaks were participating in the initial financing of Bingham Canyon by Utah Copper Company and then brokering the 1906 deal in which the Guggenheims acquired control of the Nevada Consolidated (Ruth) porphyry deposit at Ely, Nevada. Recognizing the importance of professional William Boyce Thompson, the founder advisers, he initially relied of Newmont Mining Corp, in 1909 (from Ramsey, 1973). on mining engineer Henry Krumb and geologist George Gunn to identify outstanding opportunities. In the next few years, he used his financing skill to either gain control or acquire an interest in two other major porphyry copper deposits in Arizona — Inspiration at Globe and Magma at Superior. That was just the start of an incredible string of huge mining financings that built the basis of his personal fortune and became the foundation of Newmont. In 1916, he helped the Guggenheims finance the rich copper-silver deposit at Kennicott, Alaska, and consolidate it with their interests in the Bingham Canyon, Ruth, Ray and Braden (Chile) mines to form Kennecott Copper. After 1925, Fred Searls Jr. became his chief geologist. Between 1920 and 1928, Thompson helped finance Hudson Bay Mining at Flin Flon, Manitoba, which began production in 1930. In 1928, as well, Newmont joined American Metal Company in forming South African Copper Company, which acquired the O’okiep ore body in South Africa. Thompson was also involved in the founding of Texas Gulf Sulphur, Anglo American Corp. and Rhodesian Anglo American Ltd. According to Wikipedia (2010), Thompson was also a director of the Metropolitan Life Insurance Company and the Federal Reserve Bank of New York. In 1916, Thompson formed a private holding company, Newmont Company, to hold his growing portfolio of investments and corporate holdings. As his fortune continued to expand in the booming war years, he changed the name to Newmont Corporation and converted it into a public company in 1921. The name was changed again to Newmont Mining Company in 1925. According to Wikipedia (2010), Newmont earned $32 per share in 1927 and was soon the third largest mining company in the world, after De Beers and Anglo American Corp. As his health began to decline rapidly during the late 1920s, Thompson decided to dispose of his stock holdings. Whether it was another example of the astute judgement that marked his career or just plain luck, most of his selling had been completed before the stock market collapse in November 1929, six months before his death. Newmont, which was now being managed by an executive committee

and a blue-chip board, was not so fortunate. Like most companies listed on Wall Street and elsewhere, Newmont’s stock price was decimated, from a 1929 peak of $236 to $3.87 in 1932. The history of the company consists of three distinct periods: 1) the growth of a major mining company under Thompson until the Fred Searls, Jr., president of Newmont stock market collapse; 2) surMining Corp, 1946-1954, and chairman viving the Great Depression 1954-1966 (from Ramsey, 1973). and becoming a large copper producer during the post-war period; and 3) becoming a world-class gold producer since the Carlin discovery. In a way, the third stage is the end of a long and winding route that began with a decision that was made just before Thompson died and that he was not keen about. That was the 1929 purchase of a 51 per cent interest, for less than $500,000, in the two best gold mines in the California Motherlode camp, Empire and North Star (Cathro, 2008). The two adjoining mines were merged into a new company named Empire Star Mines. The deal was negotiated by Fred Searls against the advice of his associates, who were concerned because of the difficult economics of gold mining at a time when the gold price was fixed at $20.67 per ounce. Raised in Nevada City, in the heart of the Motherlode, he had been watching for opportunities there since joining Newmont. Fortune smiled on the company in February 1934 when U.S. President Franklin Roosevelt persuaded Congress to increase the gold price to $35.00. This certainly was not done to help struggling mining companies; it was the final step in a desperate strategy that began a year earlier, immediately after his inauguration. The United States was on the gold standard, under which both banks and the government guaranteed to redeem their notes and deposit liabilities at the rate of $20.67 per ounce of gold. The United Kingdom had abandoned the gold standard in September 1931, near the start of the Depression. The U.S. was forced to do the same when a banking crisis developed just as President Herbert Hoover’s term was ending. Both foreign and domestic depositors and note-holders were rushing to cash in their dollars for gold, which resulted in a run on U.S. banks. The fear was that a large number of banks would fail because there was insufficient gold to cover demand and the U.S. gold reserves would be depleted. Speculation that the U.S. might end the gold standard made the crisis worse as people rushed to obtain gold while they could. To solve the problem, the gold standard had to be abandoned quickly. Roosevelt took office on March 4, 1933, and the process began three days later. August 2010 | 73

HISTORY OF

economic geology New laws were passed quickly to give the federal government the right to purchase all the gold in private hands at the old price and become the sole owner of gold in the U.S. At the beginning of February 1934, the U.S. established a new gold price of $35.00. This stabilized the banking system by creating a large inflow of gold into the country from elsewhere because of the fixed, higher price. The Treasury made a huge profit (almost $3 billion) because it had bought gold at $20.67 prior to its revaluation to $35.00. Next, the U.S. readopted a limited form of the gold standard. From January 31, 1934, to August 15, 1971, the Treasury purchased gold from all sellers at $34.9125, but sold gold only to foreign monetary authorities and licensed industrial users at $36.0875. By 1934, Empire Star was operating five mines in the Grass Valley-Nevada City district. As the Depression began to bite deeper and base metal prices crumbled, and in spite of intensive cost-cutting, Newmont was still in a shaky financial position. When the price jumped in February, the value of its annual gold output immediately jumped 75 per cent to $3.5 million, and Newmontâ&#x20AC;&#x2122;s dividend income rose 630 per cent to $1.1 million in 1934. By additional borrowing and judicial trading in the stock market, Newmont was able to increase the market value of its portfolio from about $9 million in 1932 to nearly $30 million in 1934. Through serendipity, Empire Star had become the crucial support that enabled Newmont to survive the Depression and enlarge its gold exploration budget. It was also the first step in Newmontâ&#x20AC;&#x2122;s emergence as an important gold company and the long road to the Carlin Mine. Searls accelerated his search for other gold opportunities and Newmont was operating 12 gold mines in North America by 1939 (Wikipedia), including five in the Motherlode district and six in Canada. They were all smallto medium-sized underground deposits. In 1934, Newmont acquired control of two medium-sized Canadian gold deposits, the Island Mountain Mine at Wells, British Columbia and the Northern Empire Mine in the Beardmore-Geraldton camp, Ontario. Newmont became interested in Island Mountain, located in the heart of the famous Cariboo Gold Rush, after a pyritic gold deposit was discovered in 1932, and operated it until 1954. Production while under Newmont ownership was about 10,380 kg (334,000 oz) of gold and 1,500 kg (48,140 oz) of silver from seven million tonnes of ore at a recovered grade of 14.8 g/t (0.43 oz/ton) gold and 2.1 g/t (0.06 oz/ton) silver (Henceforth, tonne = t and all grades are recovered, not reserve). The Northern Empire Mine was operated by Newmont until 1942 and produced about 4,640 kg (149,000 oz) of gold from 426,000 tons, a grade of 12.0 g/t (0.35 oz/ton). In 1937, Northern Empire bought control of the nearby Magnet Mine, which produced from 1938 to 1942 and again from 1946 to 1956, and Tombill Mine (1938 to 1942). Production was 4,890 kg (152,000 oz) of gold from 74 | CIM Magazine | Vol. 5, No. 5

326,500 tonnes at a grade of 14.4 g/t (0.42 oz/ton) from Magnet, and 1,870 kg (60,100 oz) from 172,900 tonnes averaging 12.3 g/t (0.36 oz/ton) from Tombill. In 1935, Newmont entered into a partnership with prominent financier Bernard Baruch to acquire the Getchell Mine in Nevada from a Nevada banker, Noble Getchell. They built a 900 t/d cyanide plant to process oxide ore averaging about 12.0 g/t (0.35 oz/ton), which was quite profitable until the underlying sulphide ore was encountered. It was an unrecognized noseum gold deposit. Newmont continued its investment in new Canadian gold deposits in 1935 when it acquired the Berens River property in Ontario, which produced 5,060 kg (157,350 oz) of gold from 508,500 tonnes of ore between 1936 and 1948, at a grade of 9.6 g/t (0.28 oz/ton). The mine was so far north of the Red Lake gold camp that building a road was impractical and all equipment and supplies had to be flown to the site. The last of the Canadian deposits acquired by Newmont was the Sachigo River Mine, situated in an even more remote part of northwestern Ontario. It was discovered in 1935 by geologist Eldon Brown and produced 1,635 kg (52,500 oz) from 42,200 t grading 38.7 g/t (1.13 oz/ton) between 1938 and 1942. It is interesting that Brown later became the president of Sherritt Gordon Mines Ltd., which opened a small nickel mine at Lynn Lake, Manitoba, in 1952 using a new ammonia leach hydrometallurgical process. Newmont financed the new process and acquired a 40 per cent interest in the company.

Acknowledgments Except where indicated, information on Newmont is from R.H. Ramsey (1973). L.H. Officer (2004) is the source of information on the banking crisis and abandonment of the gold standard in 1933-34. Special thanks go to Don Sweetkind and Mike Cathro for preparing the Nevada location map. CIM

References Cathro, R.J. (2008). California gold (Part 3). CIM Magazine, Vol. 2, No. 7, p. 102-104 . Cathro, R.J. (2010). Nevada-type gold deposits (Part 1). CIM Magazine, Vol. 5, No. 4, p. 77-79. Cline, J.S., Hofstra, A.H., Muntean, J.L., Tosdal, R.M., & Hickey, K.A. (2005). Carlin-type gold deposits in Nevada: critical characteristics and viable models. Economic Geology 100th Anniversary Volume, p. 451-484. Kaufman, M.A. (1992). Mountains of ore and rivers of gold: stories of a contemporary prospector. Spokane: Dos Vulturos Company and The Arthur H. Clark Company, p. 119124. Officer, L. H. (2004). Gold Reserve Act of 1934. In B.K. Landsberg (Ed.), Major Acts of Congress, MacMillan - Thomson Gale, 2004.enotes.com.2006, http://www.enotes.com/major-acts-congress/gold-reserve-act, accessed on May 20, 2010. Price, J.G. (2009). Overview, in The Nevada Mineral Industry 2008. Reno: Nevada Bureau of Mines and Geology, Special Publication MI-2008. Ramsey, R.H. (1973). Men and mines of Newmont: a fifty-year history. New York: Octagon Books.

HISTORICAL

metallurgy The beginnings of mineral processing research in Canada (Part 6) By Fathi Habashi, Department of Mining, Metallurgical, and Materials Engineering, Laval University

Further developments in academic, industrial and government research Pressure hydrometallurgy In 1945, Sherritt-Gordon Mines began funding the work of University of British Columbia researcher Frank F. Forward, who was studying the recovery of nickel from nickel sulphide deposits at Lynn Lake, Manitoba. Forward’s investigations resulted in the development of the ammonia pressure leaching technique and the precipitation of metallic nickel from solution by hydrogen under pressure. Closely associated with this research was another scientist, Vladimir Nicolas Mackiw. Born in Ukraine, Mackiw had studied at the Universities of Breslau (now Wroclaw, Poland), Erlangen (Germany) and Louvain (Belgium) before coming to Canada in 1948 and joining SherrittGordon Mines. That year, Sherritt discussed with the Chemical Construction Corporation (a subsidiary of American Cyanamid, also known as Chemico) the establishment of a small pilot plant in Canada to research the ammonia leach process. The process was to be explored for Sherritt’s Lynn Lake Mine whose remote location, lack of access to energy and supplies, and relatively low ore reserves rendered an on-site smelter unviable. Meanwhile, Forward’s successes in applying the ammonia leaching process prompted the establishment of a small pilot plant in Ottawa where tests were to continue on nickel-copper concentrate. Mackiw soon joined Forward’s Ottawa-based team and made an important breakthrough. He discovered that copper could be precipitated from the leach solution as copper sulphide prior to nickel removal, when the solution was boiled at atmospheric pressure, due to the presence of trithionate and thiosulphate ions. This discovery made it potentially possible to recover nickel directly by reduction from the leach solution and foregoing the precipitation of nickel ammonium sulphate, a step that was earlier regarded as indispensible. Next, Mackiw and his colleagues turned their attention to the chemistry of the nickel reduction step. While they worked on the ammonia leach in Ottawa, Chemico made important headway in advancing the hydrogen reduction process at a pilot facility in Stamford, Connecticut. Chemico’s researchers found that nickel could be deposited onto fine seed particles (instead of plating vessel walls) and that the resultant powder could assume the form of a marketable product by successive depositions. In 1953, Mackiw and his group demonstrated the compaction of nickel powder into briquettes. By 1965, all Canadian

five- and ten-cent coins were made using Sherritt’s nickel and by 1980, about 40 per cent of the Western world’s refined nickel was produced by the techniques developed by Sherritt and Chemico. Another significant researcher to work at SherrittGordon’s Ottawa testing facility was Britain’s David J.I. Evans, who had graduated from the Royal School of Mines in London with a PhD in 1953. He rose rapidly through the ranks at Sherritt-Gordon Mines, becoming the director of research in 1967 and a vice-president at the Fort Saskatchewan plant in Alberta in 1973. He co-edited the proceedings of the International Laterite Symposium (1979, SME-AIME, New York). Among Sherritt-Gordon’s impressive stable of in-house researchers was Wasyl Kunda, a graduate of the Technical University in Prague. Working with Forward and Mackiw, Kunda made important contributions to the fields of hydrometallurgy and powder metallurgy.

Iron and steel In 1948, Canada imported 93 per cent of its iron ore. By 1970, largely as a result of intensive exploration in Ungava Bay, this had decreased to 18 per cent, as Canada became the world’s fourth largest iron ore producer after the former USSR, the United States and France. Since the deposits discovered were of low grade, tests were conducted to enrich the ores by mineral processing techniques. In 1959, scientific attention turned to the production of iron by direct reduction. A large sample of Canadian iron ore, enriched at the laboratories of the Mines Branch, was sent to Niagara Falls, Ontario for testing at the Strategic Udy pilot plant.

Short but productive careers Mineral processing research in Canada was advanced by the progressive achievements of many researchers who dedicated entire lifetimes to their work. Unfortunately for Canadian science, some of these lifetimes were all too short. Most notable among the scientists who passed away in their prime were Yves Bérubé, J. Keith Brimacombe, Gilles Barbery and André Robert Laplante. Yves Bérubé, who was born in Montreal in 1946, joined Laval University after earning a PhD from the Massachusetts Institute of Technology in 1966. In 1976, he entered the political arena, holding various posts in the Quebec government — Minister of Natural Resources, Minister of the Treasury, followed by Minister of Higher Education. He died in 1993 at the age of 53. J. Keith Brimacombe was born in Windsor, Nova Scotia, and graduated from the University of British Columbia. He August 2010 | 75

HISTORICAL

metallurgy won a Commonwealth Fellowship and travelled to England to study under F.D. Richardson at the Royal School of Mines. He completed his education at the University of London and returned to the University of British Columbia in 1970 as an assistant professor. In the following years, he established a research program in metallurgical process engineering and built a large interdisciplinary research group that worked in collaboration with Canadian companies such as Stelco, Hatch Associates, Algoma Steel, Cominco, Inco and Alcan. In 1985, Brimacombe founded the Centre for Metallurgical Process Engineering at the University of British Columbia and became its first director. His research — focused on industrial metal production processes such as the continuous casting of steel, the flash smelting of lead and copper converting — was cut short by his death in 1997 at the age of 55. Gilles Barbery was born in Saint-Germain-en-Laye, France, and received his bachelor’s degree in engineering from the Paris School of Mines. He went on to obtain an M.Sc. from Columbia University in New York, and a Diploma from the Imperial College of Science and Technology in London. His first professional assignment was in Bolivia (1966-1967), where he participated in a project on the beneficiation of tin ores. After graduating from Imperial College, he joined Laval University as an assistant professor. Between 1971 and 1976, he returned to England, lecturing at Imperial College. From there, he returned to France and became the director of the Mineral Processing Department of the Bureau de recherches géologiques et minières at Orléans. Concurrently, he also held adjunct professor positions at the Paris School of Mines and the University of Orléans. In 1982, Barbery became an associate professor at Laval University. After his untimely demise in 1989 at the age of 46, a book that he had been working on — Mineral Liberation: Measurement Simulation and Practical Use in Mineral Processing — was edited and published posthumously. André Robert Laplante was keenly interested in and contributed extensively to gravity-based gold recovery methods. He joined McGill University’s Department of

Frank F. Forward (1902-1972)

Vladimir Nicolas Mackiw (1923-2001)

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Mining, Metals and Materials Engineering in 1980, after serving at the University of Toronto and Montreal’s École Polytechnique. An outstanding and dedicated teacher, he met his end at age 53, in a cross-country skiing accident. CIM’s Canadian Mineral Processors Society disburses an annual scholarship of $5,000 in his honour.

Summary Interest in scientific mining and metallurgy in Canada can be traced back to the time of the Jesuit College founded in 1635 in Québec City. Its library contained an original copy of the Latin edition of Agricola’s De Re M etallica published in 1555. In 1842, the Geological Survey of Canada was created to explore for mineral resources. Montreal-born William E. Logan was the first head of the organization. During the second half of the 19th century, important deposits of gold, nickel, copper, asbestos and phosphate rock were discovered. In 1901, the German-born Eugene Haanel was appointed director of the newly created Mining Section in the Ministry of Interior. Haanel established the Assay Office of the Dominion of Canada in Vancouver to help gold prospectors and operators in the region. The Mining Section grew rapidly and later became known as the Mines Branch. The Branch conducted the first extensive metallurgical research in Canada and invited the Second Empire Congress of Mining and Metallurgy to convene in Ottawa in 1927. The early history of Canada’s metal extraction industry was characterized by a tendency towards experimentation on a large scale. Plants were often built before their technical or economic viability was established, or before even the guarantee of an adequate supply of ore was secured. As a result, there were many failures for every success. All this, however, changed when the Geological Survey and the Canadian Bureau of Mines were founded. The golden age of metallurgical research in Canada could be said to have coincided with John Convey’s leadership of the Mines Branch from 1951 to 1973. Extensive uranium research was conducted and the Gold Operators

A Canadian coin made of nickel produced by hydrometal- David J.I. Evans lurgical methods (1928-1980)

Yves Bérubé (1940-1993)

HISTORICAL

metallurgy Suggested readings Convey, J. et al., (Eds). 6th Commonwealth Mining and Metallurgical Congress. (1957). The milling of Canadian ores. Toronto: Northern Miner Press. Crossfield, E. T. (1998). Pride and vision: the Canadian Institute of Mining, Metallurgy and Petroleum, 1898-1998. Montreal: Canadian Institute of Mining Metallurgy and Petroleum. Damjanovi, B., Goode, J. R. (2000). Canadian milling practice. Montreal: Canadian Institute of Mining, Metallurgy and Petroleum.

J. Keith Brimacombe (1943-1997)

Gilles Barbery (1943-1989)

André R. Laplante (1953-2006)

Habashi, F. (1997). Forty Five Years IMPC. In H. Hoberg & H. von Blottnitz (Eds.), Proceedings XX International Mineral Processing Congress, Volume 1 (Vol. 1, pp. 2563). Clausthal-Zellerfeld: GMDM Gesellschaft für Bergbau, Metallurgie, Rohstoff, und Umwelttechnik. Habashi, F. (1999). CMMI Seventy Five Years. CIM Bulletin, 92 (1030), 81-85.

Committee was founded in 1962. This committee later became the Canadian Mineral Processors Society of CIM. The year 1962 also saw the establishment of the Conference of Metallurgists and the Canadian Metallurgical Quarterly, a learned journal publishing original Canadian metallurgical research.

Appendix Major metallurgical research centres in Canada Research centres established in Canada have fostered the development of various disciplines in the minerals-related sciences. Notable among these were: Alberta Research Council (1921); Ontario Research Foundation (1921); Lakefield Research (Falconbridge) (1941); British Columbia Research Council (1950s); Quebec City’s Mineral Research Center (1960); The Noranda Research Centre at PointeClaire, Quebec (1961); and Inco’s J. Roy Gordon Research Laboratory in Mississauga, Ontario (1966). CIM

Habashi, F. (2004). The Beginnings of Mining Education in Canada. Part 1. CIM Bulletin, 97 (1077), 71-75. Habashi, F. (2004). The Beginnings of Mining Education in Canada. Part 2. CIM Bulletin, 97 (1078), 115-123. Ignatieff, A. (1981). A Canadian research heritage: an historical account of 75 years of federal government research and development in minerals, metals and fuels at the Mines Branch. Ottawa: Canada Centre for Mineral and Energy Technology. Kutz, K. (1998). Untold Wealth: Canada’s Mineral Heritage. Darien, Connecticut: Gold Fever Publishing. Olivier, C. A. (1985). Assistance technologique dans le domaine mineral au Quebec depuis 1881. Quebec City: Government of Quebec, Ministry of Energy and Resources, Mineral Research Center. Rowe, R. C. (1948). Mining progress in the province of Quebec. Canadian Mining Journal, 69(10), 101-204. Tory, H. M., & Adams, F. D. (1939). A History of science in Canada. Toronto: Ryerson press. Udd, J. E. (2000). A century of achievement: the development of Canada’s minerals industries. Montreal: Canadian Institute of Mining, Metallurgy and Petroleum. Vallières, M. (1989). Des mines et des hommes : histoire de l’industrie minérale québécoise des origines au début des années 1980. Québec: Ministry of Energy and Resources. Warrington, C. J. S., Nicholls, R. V. V. (1949). A history of chemistry in Canada. Toronto: Pitman.

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August 2010 | 77

technical abstracts CANADIAN METALLURGICAL QUARTERLY Magnesium Removal from Molten Al-Si Alloys Using Zeolite F. Barrera-Méndez, J.C. Escobedo-Bocardo, D.A. CortésHernández, J.M. Almanza-Robles, R. Muñoz-Arroyo and H.M. Hernández-García, CINVESTAV Unidad Saltillo, Saltillo, Coahuila, México

A Process for Production of a Niobiumcontaining TiAl Based Alloy A.R. Kamali, Department of Materials Science and Metallurgy, University of Cambridge, Cambridge, The United Kingdom, M. Hadi, Department of Materials Science and Engineering, Malek Ashtar University of Technology, Shahin Shahr, Iran, J. Khalil-Allafi and A.R. Ebrahimi, Department of Materials Science and Engineering, Sahand University of Technology, Tabriz, Iran

Damping in Civil Engineering Using SMA. Part I: Particular Properties of CuAlBe for Damping of Family Houses V. Torra, A. Isalgue, F. Martorell, CIRG-Applied Physics, ETSECCPB, Polytechnical University of Catalonia, Barcelona, Catalonia, Spain, F.C. Lovey, Centro Atomico Bariloche, Instituto Balseiro and CONICET, S.C. Bariloche, Argentina, and P. Terriault, Département de génie mécanique, École de technologie supérieure, Université de Québec, Montréal, Québec

Evaluation of the Lifetime and Effect of Furnace Thermal Cycling on Stress Rupture Behaviour of a Thermal Barrier Coated Superalloy Used in a Turbine Blade A.K. Ray, S.C. Bose, P.K. De, H.K. Das, D. Mandal, National Metallurgical Laboratory (CSIR), Jamshedpur, India, M.Z. Alam, V.S.R.A. Sharma and D.K. Das, Defence Metallurgical Research Laboratory, Hyderabad, India

Study on Volatilization Rate of Silicon Melt at Vacuum K. Wei, W. Ma, K. Xie, D. Liu, Y. Dai, National Engineering Laboratory for Vacuum Metallurgy, Faculty of Metallurgical and Energy Engineering, Kunming University of Science and Technology, Kunming, People’s Republic of China, and K. Morita, Institute of Industrial Science, The University of Tokyo, 4-6-1 Komaba, Meguro-Ku, Tokyo, Japan

78 | CIM Magazine | Vol. 5, No. 5

ABSTRACT A study of magnesium removal from an aluminum base alloy using the technique of submerged injection of solid reagents with zeolite as the oxidizing solid agent is presented. The effects of the zeolite water content, process temperature, injection rate and particle size on the magnesium removal rate were studied using a factorial experimental design. A comparison between the magnesium removal efficiencies obtained when using silica and zeolite was established. After studying the importance of each variable, a secondary optimization study was performed using a surface response methodology. Experimental conditions with the strongest effect were temperature of the molten alloy and zeolite water content. It was verified that zeolite is a better magnesium removal agent than silica. ABSTRACT A new generation of turbine engines based on titanium aluminides may be commercially manufactured if these materials could be produced more cheaply and more easily. In the present work, challenges faced during the production of a -TiAlbased alloy (Ti-48Al-2Cr-2Nb-1B (at%) including the evaporation of aluminum and the formation of niobium-rich inclusions were studied and a set of recommendations has been proposed to overcome them. It was demonstrated that mechanical properties of an alloy produced after an appropriate heat treatment is comparable to alloys produced by other methods. Prevention of extra melting times has a strong impact on economics and commercialization of these materials. ABSTRACT The properties of SMA (or smart materials), are associated with a first order phase transition named martensitic transformation, that occurs between metastable phases from the upper temperature phase (austenite) to the lower temperature phase (martensite). The first order transformation (in stress, deformation and temperature coordinates) has a hysteresis and provides different kinds of applications. Two types of applications can be considered in the damping of structures in civil engineering. The first one is related to the reduction of the damage produced by earthquakes. The second one is the increase of the lifetime of cables in bridges. This paper analyzes the behaviour of a CuAlBe alloy towards its use as a damper in anti-seismic structures: the SMA creep and its reduction by appropriate heat treatment, the evolution of the alloy by the ageing and the fatigue life of the alloy are the subject of studies. ABSTRACT This paper highlights the trends recently observed while evaluating the lifetime of a thermal barrier coated (TBC) AE-437A Ni base superalloy mostly employed for manufacturing compressor and stationary stator blades in aero turbines from accelerated creep tests in air at 800°C. Based on accelerated stress rupture properties, the TBC specimens had superior life in terms of rupture hours compared to that of the bare substrate as severe high temperature oxidation is likely the cause of the reduced lifetime of the bare substrate while accelerated creep experiments are carried out in an oxidizing environment. The effect of furnace thermal cycling on accelerated creep properties of the TBC samples at 70 MPa and 800°C was also studied. ABSTRACT In this paper, the theoretical volatilization rate of silicon was analyzed at different temperatures in order to study the temperature influence on the volatilization rate of silicon under vacuum conditions. The experimental volatilization rates of silicon were obtained by experimental measurements.

Significance of Feed Classification by Hydrocycloning on Flotation Copper Recovery S. Farrokhpay, H. Reza Manouchehri and S. Grano, Ian Wark Research Institute, The ARC Special Research Centre for Particle and Materials Interfaces, University of South Australia, Mawson Lakes, Australia

The Theory of Surface Potential Energy, Minimum Particle Size and Non-Fractal Nature of Fragmentation E. Stamboliadis, Technical University of Crete, Chania, Greece

Comparative Rates of Precipitation of Ammonium Jarosite and Sodium Jarosite in Ferric Sulphate – Sulphuric Acid Media J.E. Dutrizac, Mining and Mineral Sciences Laboratories, CANMET, Ottawa, Ontario

Thermodynamic Research of Leaching Copper Oxide Materials with AmmoniaAmmonium Chloride-Water Solution L. Wei, T. Motang, T. Chaobo, H. Jing, Y. Shenghai, Y. Jianguang and C. Yongming, School of Metallurgical Science and Engineering, Central South University, Changsha, People’s Republic of China

Fluid Bed Roasting of Nickel-Copper Matte M. Muinonen, Vale Limited, Mississauga, Ontario, G. Plascencia, CIITEC-IPN, Cerrada Cecati, Col. Sta. Catarina, Mexico, and T. Utigard, Materials Science and Engineering, University of Toronto, Toronto, Ontario

ABSTRACT This paper focuses on the effect of feed classification by hydrocycloning on copper recovery of a complex copper-lead-zinc sulphide ore from Somincor in Portugal. A series of flotation tests and solution/surface analyses were performed. Surface analysis indicated that the ore surface is heavily oxidized. The presence of oxidized lead and zinc on the surfaces may be effective on copper recovery. The feed was classified using a hydrocyclone to fine and coarse fractions and flotation tests were conducted on each fraction. Higher copper recovery was obtained from the hydrocyclone products compared to the unclassified feed. It is concluded that the improved flotation behaviour after hydrocycloning is due to surface cleaning. ABSTRACT The type of distributions of the dimensional properties of particulate materials obtained by grinding has been shown in previous papers. The present work, after further mathematical manipulation of the already known theory of surface potential energy, gives a theoretical explanation for the type of distributions experienced. The proposed theory explains why the distribution of particles of particulate materials produced by fragmentation of larger particles does not extend to zero size and the number of particles produced is a definite one. Consequently, fragmentation is not fractal in the sense that the cumulative distribution of the number of particles coarser than any size x cannot be simulated by an exponential equation of x that extends to infinite as x approaches zero. ABSTRACT The comparative rates of precipitation of ammonium jarosite and sodium jarosite were determined in Fe(SO4)1.5-H2SO4 media. The apparent activation energy for the precipitation of ammonium jarosite and sodium jarosite is approximately the same. The rate of precipitation of both ammonium jarosite and sodium jarosite increases as the concentration of potassium jarosite seed increases from 0 to 50 g/L. At 100°C for solutions containing 1.50 M ZnSO4, the average rate of ammonium jarosite precipitation is 20% greater than that of sodium jarosite precipitation. The totality of the present data indicates that the rate of ammonium jarosite precipitation is about 15% greater than that of sodium jarosite precipitation. ABSTRACT The solubilities of copper hydroxide Cu(OH)2, copper oxide CuO, atacamite Cu(OH)1.5Cl0.5, malachite Cu2(OH)2CO3 and chessylite Cu3(OH)2(CO3)2 in an ammoniaammonium chloride-water solution were calculated using an exponential computation method based on both mass balance and charge balance equations. The range of stability of each solid phase was also established. A group of experiments were designed to validate the veracity of the results of the thermodynamic calculation. ABSTRACT Fluid bed roasting of Bessemer matte containing copper, nickel and sulphur was carried out on a laboratory scale at temperatures from 900°C to 1050°C. The oxidation of the first 80% of the total sulphur in the samples was rapid while the remaining 20% took significantly longer. The initial rapid oxidation allowed for the formation of oxide layers around the otherwise molten sulphides minimizing the tendency for agglomeration and sticking. The roasted calcine formed a NiO phase saturated with 30% tenorite (CuO) in solid solution.

Excerpts taken from abstracts in CMQ, Vol. 49, No. 2. Subscribe—www.cmq-online.ca

August 2010 | 79

technical abstracts CIM JOURNAL

Estimation of shock loss factors at shaft bottom junction using computational fluid dynamics and scale model studies T. Purushotham, University of Alaska, Fairbanks, Alaska, B.S. Sastry and B. Samanta, Indian Institute of Technology, Kharagpur, India

ABSTRACT The shaft bottom junction in a mine ventilation system is an important source of shock loss due to the combined effect of bend and area change. The occurrence of high-volume flow rates through this configuration can potentially result in high energy losses. The current research examines the process of shock loss at a characteristic shaft bottom junction of an underground coal mine. Investigations are performed on both laboratory-scale models and three-dimensional computational fluid dynamics (CFD) simulations, under both exhausting and forcing shaft bottom conditions. The effects of the plat roughness and the shaft bottom length on the shock loss factor values are also examined. RÉSUMÉ Dans un système de ventilation minière, le raccordement dans le bas du puits constitue une importante source de perte par choc en raison de l’effet combiné d’un coude et d’un changement de section. La présence de taux élevés d’écoulement de grands volumes d’air dans une telle configuration peut potentiellement conduire à de grandes pertes d’énergie. La présente recherche étudie le processus de perte par choc à un raccordement typique au fond d’un puits dans une mine souterraine de charbon. Des essais sont effectués sur des modèles à l’échelle du laboratoire et sur des simulations tridimensionnelles par dynamique des fluides numérique (CFD) sous des conditions d’évacuation et de forçage d’air au fond du puits. Les effets de la rugosite de la plaque et la longueur au fond du puits sur les valeurs du facteur de perte par choc ont été examinés.

Evolution and optimization of the gravity recoverable gold test L. Huang and S. Koppalkar, COREM, Québec, Québec

ABSTRACT The development and evolution of the gravity recoverable gold (GRG) test procedure at McGill University is reviewed in this paper. Since the late 1980s, the research group led by the late Professor André Robert Laplante at McGill University has undertaken fundamental studies and applied research of the Knelson concentrator to develop a sustainable method of estimating GRG. Around 1994, a methodology using a 3-in. Knelson concentrator to measure gravity recoverable gold was established at McGill University. As a result of more than 10 years of improvement and optimization, this technique has become a standard method of evaluating GRG for gold ores, gold plant streams and platinum group metals. Recently, a modified version of the GRG test was developed to provide a quick and rough estimate of the GRG in a sample; this simplified test has the advantage of reduced mass, processing time and cost. RÉSUMÉ Le développement et l’évolution du procédé d’essai de récupération gravimétrique de l’or à l’Université McGill sont analysés dans cet article. Depuis la fin des années 1980, le groupe de recherché dirigé par feu professeur André Robert Laplante à l’Université McGill a entrepris des études fondamentales et de recherche appliquée sur le concentrateur Knelson afin de développer une méthode durable d’estimer l’or à récupération gravimétrique. Vers 1994, une méthodologie a été établie à l’Université McGill, selon laquelle on utilise un concentrateur Knelson de 3 pouces pour mesurer l’or récupérable par gravité. Après une dizaine d’années d’améliorations et d’optimisations, cette technique est devenue une méthode standard d’évaluer l’or à récupération gravimétrique dans les minerais aurifères, les pulpes des usines d’extraction d’or et les métaux du groupe du platine. Dernièrement, une version modifiée (simplifiée) de l’essai a été développée afin de fournir une estimation rapide et approximative de l’or à récuperation gravimétrique dans un échantillon. Cet essai simplifié a l’avantage de réduire la masse et le temps requis, en plus de diminuer les coûts. Excerpts taken from abstracts in CIM Journal, Vol. 1, No. 2. Subscribe—www.cim.org

80 | CIM Magazine | Vol. 5, No. 5

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August 2010 | 81

voices from industry

The “gold standard” in human resources: Osisko’s sustainable development for a new generation of mining Robert Mailhot, vice-president of human resources, Osisko Mining Corporation n 2005, Osisko Mining Corporation was an explorationbased company with fewer than ten employees. Employment of more than 450 employees today reflects Osisko’s unparalleled market growth rate over the past five years. The pace of our transformation into a leading gold developer and operator obviously presents tangible challenges as we try to seek, recruit and retain the next generation of Canada’s mining industry professionals. When I accepted the newly established position of vice-president of human resources, I resolved to create a hiring template reflective of Osisko’s corporate commitment to a fresh outlook on mining. For me, what sets Osisko apart is our ultimate goal — to become the industry reference point for sustainable development in the Canadian mining sector, whether environmental, economic or social in nature. To uphold that underlying principle at all corporate levels, Osisko seeks to attract talented, passionate employees who are principled individuals. I firmly believe that philosophy is the key to our rapid success.

Employing and developing the resources Through its creation of solid, well-paying jobs, Osisko has become a major contributor to Quebec’s economy. Our commitment to local hiring and training is a serious commitment — though not without an occasional touch of “creative” thinking: the two local women hired as the first operators for 240-tonne trucks were former bus drivers. Fortuitously, our recruiting and training initiatives have the side effect of maximizing regional economic benefits, including a five-month program to train future milling operators. Another key objective for Osisko involves building and strengthening relationships with regional First Nations Peoples. Osisko and some Algonquin enterprises have undertaken several collaborative initiatives, which include recruiting, training and forming business partnerships. We hope that this open dialogue will provide a backdrop for delivering a better social and economic future for regional First Nations Peoples. Osisko understands that quality employees are behind the profit figures in every great company. Through forward-thinking planning and implementation, we can project our human resources requirements and develop 82 | CIM Magazine | Vol. 5, No. 5

strategies to attract and retain the right people to propel us forward. We recognize that effective recruitment is critical for continued future success, whether through our university partnerships or through regional recruitment. As part of our outreach to the community of Malartic, one strategy has been job fair participation. In June 2009, over 500 visitors attended Osisko’s first job fair targeted at the population of Abitibi-Témiscamingue. Attendees could participate in unconventional coaching sessions covering such topics as how to have a successful interview and how to write a winning C.V. In a process we dubbed “Speed Jobbing,” thirteen volunteer interviewers conducted over 400 mini-interviews of five minutes each, which was an innovative way for potential candidates to meet with managers and existing employees. Our present database of over 15, 000 curriculum vitae, including many from the Malartic region, demonstrates the attainability of our local hiring goal. As a responsible corporation, Osisko is committed to social development. Our human resources department collaborated with Le Tremplin de Malartic high school to develop a school retention program called La Corporation Victoire. To discourage dropping-out of school to join the workforce, we are committed to hiring high school diploma graduates to ensure that individuals have a wide range of options available to them. Along with our integrated approach to sustainable development, I believe that Osisko can also establish the “gold standard” benchmark in human resources. Osisko’s desire to maintain good employee relations led to the spring 2010 creation of a Labour Relations Committee. Its objectives are to facilitate interaction between management and employees and to efficiently redress employee concerns. Osisko’s employees have participated in several confidential job satisfaction surveys, including “Le Défi du meilleur employeur au Québec 2010,” undertaken through the human resources firm of Watson Wyatt. For HR, these surveys act as a tool with which to empower and to listen to employees, and to improve sectors that need attention. Our goal is to be continuously recognized for our industry leadership and our focus on employee job satisfaction. Why do Osisko employees take such pride in their jobs? My sense is that our employees feel they are part of something incredible: Every employee feels as though the Osisko story is not yet written in its entirety, and that they can be a part of writing it. With our pens dipped in the ink of sustainable development, I believe that Osisko can leave an indelible mark on the Canadian mining industry. CIM

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