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CONTENTS CIM MAGAZINE | NOVEMBER/NOVEMBRE | 2010

NEWS

B.C. Aboriginal mine training partnership underway Private and public sectors fund a program that provides

Aboriginals

with

training

and

support

by P. Caufield

Restoring the past Britannia Mine museum gets a

Outlook darkens for DRC developments Seizure

of First Quantum’s mining projects has left the company with no choice but to turn to the courts by P. Diekemeyer A clearer result ALS Environmental’s advanced mass spectrometer provides mining companies with a highly accurate measure of metal concentrations in water

makeover with a new name and new facilities by S. Stecyk

by P. Caulfield

UPFRONT 18 20 24 26

From the desktop to the mine face Next generation simulators are reshaping mining training as well as the makeup of the industry by H. Ednie An elegant alternative to smelting Revolutionary hydrometallurgical process offers an economical and environmentally sound substitute to smelting by A. Lopez-Pacheco Social capital A fund aimed at supporting Aboriginal business entrepreneurs receives financial and managerial support from the mining community by M. Eisner Shaking off the past B.C. Minister of State for Mining Randy Hawes discusses revenue sharing with First Nations, the Northwest Transmission Line and mining development by R. Bergen

82 4 | CIM Magazine | Vol. 5, No. 7

rd e

Annual Canadian Mineral Processors Operators’ Conference Conférence annuelle des minéralurgistes du Canada January 18–20, 2011 | 18–20 janvier 2011 Westin Hotel | Ottawa, Ontario

COLUMNS 45 46 48 50 52 54 56 58 60 62 64 67 68

CIM NEWS 71

73 74

MINING IN B.C. L’INDUSTRIE MINIÈRE EN C.-B. 28

Power and the people With tax revenue sharing in place and the construction of the Northwest Transmission Line ready to begin, mining in B.C. is poised for resurgence by D. Zlotnikov

L’énergie et les gens Avec l’établissement du partage des revenus et la construction de la Northwest Transmission Line prête à commencer, l’exploitation minière en C.-B. est bien placée pour la reprise

l’information de l’ICM atteindra bientôt son premier objectif Éminente visite à Rouyn-Noranada James Franklin rend visite à la section Rouyn-Noranda de l’ICM par C. Gagnier

Scholarship winner is mining her options

Norman Lotter discusses process mineralogy by R. Pillo

The way forward In what is being hailed as renaissance in mining in B.C., Mt. Milligan will be the first new mine to open since 1998 by P. Caulfield

Le passage progressif au nouveau système des TI Le projet d’implantation des technologies de

A cohesive approach to improving metallurgical efficiency Distinguished Lecturer

FEATURED PROJECT 38

No guts, no glory Greg Rasmussen revitalizes CIM branch in Prince George by R. Pillo One step at a time CIM’s IT project nears its first objective by A. Nichiporuk

PROJET EN VEDETTE

Something old, something new CIM’s Metallurgical Society rebrands itself by M. Eisner

FEATURE

Supply Side by J. Baird MAC Economic Commentary by P. Stothart HR Outlook by L. Forcellini Safety by H. Ednie Innovation by S. Creighton Eye on Business by J. Lewis and B. Harrison Engineering Exchange by H. Ednie Standards by S. Henley Canadians Abroad by H. Ednie First Nations by D. Curtis Student Life by J. Dahme, T. Barrett Women in Mining by B. Caelles Mining Lore by C. Baldwin

Le chemin de l’avenir Dans ce que l’on pourrait qualifier de renaissance minière en C.-B., Mt. Milligan sera la première nouvelle mine à ouvrir depuis 1998

Samantha Lickers is the winner of this year’s Taking Flight Scholarship by M. Eisner Mining rocks for Anne Belanger Scholarship winner is fascinated by rock formations by M. Eisner Joint luncheon on food security Potash the hot topic at CIM Toronto Branch / CIM Management & Economics Society annual luncheon by R. Hutson Rounding up exploration in Red Lake CIM Red Lake Branch holds Exploration Roundup 2010 by C. Storey

HISTORY

86 88

The miners’ safety lamp by F. Habashi Nevada-type gold deposits (Part 4) by R. J. Cathro

TECHNICAL SECTION 91 92

Canadian Metallurgical Quarterly CIM Journal

IN EVERY ISSUE 6 8 10 70 79 80 93

Editor’s message President’s notes / Mot du président Letters Calendar Welcoming new members Obituaries Professional directory

November 2010 | 5

editor’s letter Striking the right cords erhaps one of the most revealing indicators of the prevailing climate of optimism surrounding the future of the B.C. minerals industry is the rather upbeat title that PricewaterhouseCoopers (PWC) bestowed to the latest installment of its annual B.C. mining survey: “Rock on.”* The report — the 42nd of its kind — summarizes the 2009 financial results and major trends in the British Columbia mining industry. Keeping in mind that the survey was conducted during a year marked by the global slowdown, the tone of the report, as indicated by the title, is surprisingly upbeat. That is because despite a few sour notes and some definite harmony issues, the mining industry in B.C. is seemingly on a pathway to prosperity, albeit one that might entail some fine tuning. According to the PWC report, the B.C. mining sector contributed $5.7 billion to the provincial economy in 2009. Pre-tax earnings totalled $2.3 billion, which represented a decline from the all-time record of $3.2 billion reported in 2008, but still represented historically high levels. When you consider that 60 per cent of all Canadian exploration and mining companies are based in B.C. and that there are 24 mining projects in B.C. currently under review or in the permitting process, there can be little doubt that the health of the B.C. mining industry — and the outcomes and offshoots of the issues they are grappling with — will surely resonate across the Canadian mining industry as a whole. The feature article “Power and the people” examines two components vital to the mining resurgence in B.C. — infrastructure development and Aboriginal engagement. Writer Dan Zlotnikov speaks with a variety of stakeholder representatives — including industry, association, government and First Nations — to capture their perspectives as to the potential roadblocks and gateways to recovery and expansion. In this issue you will also learn why so many eyes are trained on gauging the success of our featured project — Thompson Creek Metals’ Mt. Milligan — which came close to not happening at all. Peter Caulfield’s story highlights the complexities of the issues facing the region and reinforces the integral role of early and effective engagement. Editor Ryan Bergen also had the opportunity to speak with B.C. Minister of State for Mining, Randy Hawes, who candidly shares his views on revenue sharing, the B.C. Mining Plan and addressing hostility towards the mining sector. Be sure to check out the preliminary program for the 43rd Annual Canadian Mineral Processors Operators’ Conference to be held in Ottawa from January 18–20, 2011. If you’ve never attended before, then come discover why dedicated delegates — undeterred by the frosty clime — look forward with great anticipation to visiting the nation’s capital the third week in January year in and year out. Finally, we are very pleased by the ever-increasing feedback we have been receiving at CIM Magazine. Please keep sharing your reactions and suggestions, as they are integral to ensuring that we are hitting the right notes.

Angela Hamlyn, Editor-in-chief * The full PricewaterhouseCoopers report can be accessed at http://www.pwc.com/ca/en/mining/mining-industry-british-columbia.jhtml 6 | CIM Magazine | Vol. 5, No. 7

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

Ryan Bergen, rbergen@cim.org Steve Stecyk, sstecyk@cim.org Columns, CIM News, Histories and Technical Section:

Andrea Nichiporuk, anichiporuk@cim.org Technical Editor Joan Tomiuk, jtomiuk@cim.org Publisher CIM Contributors Jon Baird, Correy Baldwin, Teresa Barrett, Barbara Caelles, R. J. Cathro, Peter Caulfield, Steven Creighton, Dawn Curtis, Jocelyn Dahme, Peter Diekmeyer, Heather Ednie, Marlene Eisner, Lindsay Forcellini, Claude Gagnier, Fathi Habashi, Stephen Henley, Bruce Harrison, Rick Hutson, Louise Blais-Leroux, Josh Lewis, Alexandra Lopez-Pacheco, Robbie Pillo, Paul Stothart, Carmen Storey, 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 Neal Young, nyoung@dvtail.com, ext. 325

This month’s cover Neptune Bulk Terminals, North Vancouver Photo courtesy of Scott Robert Collins 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.

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president’s notes Poised for growth This fall, the successful rescue of the miners trapped in a San Jose mine put mining and drilling in an enormously positive light globally for a change. Canadian companies were key to the rescue, with Cementation Canada, Precision Drilling and Atco all prominent at the site. The practices of Cementation Canada also held the spotlight at the recent CIM New Brunswick Branch Annual Convention, where the company showcased its role in the successful rescue efforts, including the development of an innovative raise boring head. We should take this opportunity to pat ourselves on the back and recognize that in safety, mine rescue and the broader area of corporate social responsibility, this country’s best companies are global leaders. Switching now to global markets, China’s voracious appetite for minerals persists. The immediate impact has been very positive for mine development across Canada, and British Columbia in particular, the main focus of this issue. It is gratifying to see a robust pipeline of projects returning to a province with such a rich mining heritage. This fall, CIM hosted a pair of major events, the Conference of Metallurgists in Vancouver and the MEMO Conference in Sudbury, which focused on the mining side of our activities. As always, safety and maintenance were a major part of this exciting and very successful conference. At the CIM national office, I’m delighted to report that, due to the hard work of the staff, the move to new facilities has gone very

smoothly and that the first elements of our new IT infrastructure, the new Exhibition Management Module, were successfully implemented in August. The other good news for the future is that we currently have over 1,800 students as members. This includes over 100 from the new student chapter at Queen’s University. Let’s engage them all and support their transition from students to active contributors to our industry. In conclusion, I would like to congratulate the team, led by the Canadian Mineral Processors, who secured the International Mineral Processing Conference for Canada in 2016, a major coup to bring it back to this country for the first time in nearly 30 years.

Chris Twigge-Molecey President

ICM bien placé pour croître! Cet automne, le sauvetage très réussi des mineurs emprisonnés dans la mine San José a mondialement mis les pleins feux, pour une fois extrêmement favorables, sur les forages et l’exploitation minière. Des compagnies canadiennes ont été l’une des clés du sauvetage; en effet, les compagnies Cementation Canada, Precision Drilling et Atco étaient toutes bien en vue sur le site. Les pratiques de Cementation Canada étaient aussi en vedette lors du Congrès annuel de la Section Nouveau-Brunswick de l’ICM; la compagnie a démontré son rôle dans les efforts fructueux du sauvetage, dont le développement d’une tête innovatrice pour le forage de monteries. Nous devrions saisir cette occasion pour nous féliciter et reconnaître que dans les domaines de sécurité, de sauvetage minier et celui plus vaste de responsabilité sociale des entreprises, les meilleures compagnies de ce pays sont des chefs de file mondiaux. Passant maintenant aux marchés mondiaux, nous notons que l’appétit vorace de la Chine pour les minéraux persiste toujours. L’impact immédiat a été très positif pour le développement minier à travers le Canada et surtout en Colombie-Britannique; d’ailleurs, la présente édition du Magazine y est consacrée. Il est valorisant de voir de nombreux projets solides revenir à une province possédant un héritage minier aussi riche.

8 | CIM Magazine | Vol. 5, No. 7

Cet automne, l’ICM a tenu deux grandes activités : la Conférence des métallurgistes à Vancouver et le Colloque MeMO à Sudbury. Ce dernier ciblait le volet extraction de nos activités. Comme toujours, la sécurité et la maintenance formaient la plus grande partie de cette conférence dynamique et très réussie. Au bureau national de l’ICM, je suis heureux de vous dire que, grâce au travail diligent du personnel, le déménagement dans nos nouveaux locaux s’est effectué de façon très ordonnée et que le premier élément de notre infrastructure de technologies de l’information, soit le module de gestion des associations, est entré en ligne en août. L’autre bonne nouvelle pour l’avenir est que nous avons actuellement plus de 1800 membres étudiants, incluant plus d’une centaine provenant du nouveau chapitre étudiant à l’Université Queen’s. Accueillons-les et aidons-les à passer d’étudiants à contributeurs actifs de notre industrie. Pour conclure, je voudrais féliciter l’équipe, menée par la Société canadienne du traitement des minerais, qui a réussi à obtenir que le Congrès de traitement des minerais se tienne au Canada en 2016, c’est un coup de maître de ramener ce congrès au pays après une absence de près de 30 ans. Chris Twigge-Molecey Président

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letters Getting it right Hello Angela, My thanks for the great job you are doing with the magazine. Keep up the good work! I am writing you about a small inaccuracy in the featured mine story — “A small window, a big opportunity” — printed on page 37 of the August issue of CIM Magazine. The photo caption incorrectly refers to “First Nations” comprising over a third of the workforce at Meadowbank. In actuality, Meadowbank employs local Inuit people and Inuit are not First Nations. To help with future stories, a more general term for indigenous people in Canada that can be used is “Aboriginal,” which includes First Nations, Métis and Inuit. The following government of Canada website is useful in describing the many terms used by INAC in describing the people it serves: www.aincinac.gc.ca/ap/tln-eng.asp. Hope that helps in future editing. Best regards, Tom Hoefer Executive director, NWT & Nunavut Chamber of Mines (former director of mineral & petroleum resources, Department of Indian Affairs & Northern Development – INAC) Hi Tom, Thank you so much for pointing out the inaccuracy and please accept our apology for the oversight. Your letter has encouraged us to address the topic in this issue’s First Nations column authored by Dawn Curtis of Indian and Northern Affairs Canada NT Region (p. 62-63). I think that it would be helpful for many of our readers to understand these important distinctions. In the meantime, I will share your letter with the CIM Magazine staff to encourage greater diligence in this matter going forward. Again, thank you for bringing this to our attention. Regards, Angela Hamlyn Editor-in-chief, CIM Magazine

10 | CIM Magazine | Vol. 5, No. 7

An impressive record Dear Professor Habashi, This brief note is in reference to your article, “The beginnings of mineral processing research in Canada (Part 6),” published in the August 2010 issue of CIM Magazine. I found the article of some considerable interest, since I have been employed by Sherritt and subsidiary companies for the past 25 years and your article makes considerable reference to the pioneering work of Sherritt in the field of hydrometallurgy. However, I was dismayed by the omission of the Sherritt Research Centre in Fort Saskatchewan in your listing of major metallurgical research centres in Canada. Metallurgical research has been conducted without pause in Fort Saskatchewan since the Sherritt Research division transferred from Ottawa in 1955, and a great many metallurgical inventions have been developed and patented over the years based on test results generated in the Sherritt laboratories. This long history of technical innovation, along with an impressive record of translating hydrometallurgical developments into commercial reality, undoubtedly qualify Sherritt’s Fort Saskatchewan facility as a major metallurgical research centre. Although specializing in the development of processes involving autoclaves since the 1950s, the Sherritt laboratory and pilot plant (now part of the Sherritt Technologies division) are equipped to evaluate a wide range of processing techniques, including size-reduction, flotation, liquid-solid separation, purification, solvent extraction and electrowinning, allowing for integrated testing of several process steps into an overall metals recovery process. Sherritt’s equipment has also been refined over the years, to allow for pilot plant testing at a significantly smaller scale than that of historical pilot plants, which greatly decreases the cost of process development work. Laboratory and pilot plant testing continues to be a key component of Sherritt's process development activities, and research metallurgists and technologists work alongside engineers and project managers in Fort Saskatchewan on projects both for the corporation and for external clients. As a direct result of the process development and design activities conducted by this group, more than 35 commercial refineries have been built around the world in the past fifty years. I believe that the metallurgists, technologists and engineers who make up Sherritt Technologies are justifiably proud of this record. Yours sincerely, Mike Collins Manager, process development, Sherritt Technologies Mike, Thanks for your note. Certainly I am aware of the excellent work done at Sherritt’s Research Division, which I visited many years ago. I apologize for this lapse and I hope that this Letter to the Editor corrects the situation. Fathi Habashi

news B.C. Aboriginal mine training partnership underway Program provides skills training and employment opportunities

A partnership of public- and private-sector players was formed recently to bring qualified Aboriginal candidates into the mining industry in British Columbia. The group, consisting of mining companies, Aboriginal groups, educational institutions and the federal government, seeks to create job opportunities and provide support for Aboriginals in the mining industry. “Mining is the single largest private-sector employer of Aboriginals in Canada,” said Laurie Sterritt, executive director, B.C. Aboriginal Mine Training Association (BCAMTA). “But relations between mining companies and Aboriginal communities where the mines operate are not always optimal. Our approach offers stakeholders a new way to work together that creates the opportunity for employers, educators and BCAMTA candidates to really understand what each of them needs to be successful,” she explained. The British Columbia Aboriginal mine training partnership, established in October 2009, is running a threeyear program that provides skills training in mining for Aboriginals and prepares them for employment. The program is aimed at qualified candidates in the northwest and central interior of the province. BCAMTA administers the project in conjunction with 16 partners, six of which have made commitments to provide 148 jobs for Aboriginal participants. The partnership provides candidates with training-to-employment plans that cover academic upgrading, job-specific training and apprenticeships, retention counselling and other on-the-job support. “The partners are committed to ensuring that Aboriginal people fully share in economic opportunities created by the mineral exploration and mining industry,” said BCAMTA chair Laureen Whyte in an announcement.

Photo courtesy of Nadine Israel, BCAMTA

By Peter Caulfield

BCAMTA graduates hired at New Gold (from left to right): Pat Gagnon, New Gold trainer; A.J. Lindley; Dustin Gordon; Denis DeRose; Darien Minnabarriet; Brad Neufeld; Cody Jules; and Leonard Jackson, BCAMTA regional manager.

“Aboriginal people in B.C. will have access to skills training to participate in the exploration and mining industry, and industry will benefit from accessing a quality pool of workers,” she added. Sterritt said BCAMTA works with its partners to reduce barriers for Aboriginals entering careers in mining. “We also provide candidates with a range of opportunities – entry-level jobs, pre-trades training, apprenticeships and coaching to help them ladder-up to the next occupational level,” Whyte said. The partnership, Sterritt explained, “provides a unique opportunity for partners with different points of view to come together and open the lines of communication with each other. Our efforts are already creating tangible results for Aboriginal communities and our corporate partners.” Human Resources and Skills Development Canada is contributing $4.4 million dollars; cash and in-kind contributions from industry and associations account for the remaining $22.7 million dollars required to support the 30-month program, including wages and benefits allocated to successfully employed candidates. Leonard Jackson, BCAMTA program coach, explained that there

are more than 200 applicants, over 125 candidates in various stages of training, and over 35 candidates in jobs as a result of the program. “In the central interior, we are working with two operating mines, Highland Valley Copper and New Afton, and one developing mine in Princeton, Copper Mountain,” he said. “Candidates can apply to the program through the mining companies or they can come to the BCAMTA offices first.” “Some of the Aboriginals who apply for mining jobs don’t meet all the necessary qualifications,” Jackson said. “So we get involved to help provide them with the types of skills upgrading they need in order to become better qualified.” “At the pace we’re going, there is no reason why we won’t surpass our employment targets,” added Sterritt. “Our candidates are consistently coming in strong on skills-assessments and they are really getting noticed by employers. We are preparing BCAMTA candidates to be ‘the best person for the job,’ every time.” Information about careers in exploration and mining and how the program works is available at www.bcamta.ca. CIM November 2010 | 11

news Restoring the past Britannia Mine Museum receives makeover By Steve Stecyk

Photo courtesy of Brittania Mine Museum

A piece of B.C. mining history was restored this fall with the re-opening of the new Britannia Mine Museum. The museum has just completed the second phase of a three-stage redevelopment project using $14.7 million that it received in donations from the federal and provincial governments as well as from mining industry companies and executives. The previously named BC Museum of Mining, located 40 kilometres north of Vancouver, is the site of the former Britannia Mine that had been in operation for nearly 70 years and was once the largest copper producer in the British Commonwealth. The last shift at the mine was in 1974; in 1988 it was declared a national historic site. The museum project offers visitors a glimpse into what life was like for the 60,000 people who worked and lived in the town during the life of the mine, and also showcases the seven decades of mining history in the Britannia Beach community. The site now boasts a brand new visitor centre, courtesy of donations from Lukas Lundin of Lundin Mining and Ross Beaty, CEO of Magma

As part of its upgrade project, the 20-storey historic mill building had all of its 14,416 window panes restored.

Energy Corp. The Beaty-Lundin Visitor Centre houses the theatrical mining exhibits, a mineral gallery, a theatre space and a gift shop, as well the Canadian Mining Hall of Fame. The museum had its grand opening in September and Kirsten Clausen, its executive director, is very pleased

with the renewed interest that it is now receiving. â&#x20AC;&#x153;We have really noticed a big difference in dwell time of folks,â&#x20AC;?said Klausen. â&#x20AC;&#x153;They come thinking, â&#x20AC;&#x2DC;ok letâ&#x20AC;&#x2122;s go spend an hour with the family, and weâ&#x20AC;&#x2122;ll do this.â&#x20AC;&#x2122; And three hours later, you see them leaving and theyâ&#x20AC;&#x2122;ve got smiles on their faces.â&#x20AC;?

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news The museum has received a strong financial support from the mining community. Over 24 donors — ranging from associations to legal firms to operations — have donated money to the project. But that was not the case at the outset, when the project began eight years ago. “The initial response was divided,” said Michael McPhie, director at the Association for Mineral Exploration British Columbia and cochair of the Britannia Beach Historical Society. “Certain individuals, along with the industry, felt it would be better just to tear all the old buildings down and cover the area with grass and move on. But then there was a core component of the industry that thought it was a very iconic, important part of B.C.’s history. And really, I think the turning point for the project came primarily by the initial contribution by Teck Corporation.” Teck’s $750,000 donation was matched by Placer Dome (Placer Dome

was bought by Barrick Gold, the year the donation was given). An additional $2 million was raised by industry individuals and companies. The funds, matched by the federal and provincial governments, were earmarked for the restoration of the historic mill building, which remains the centrepiece of the mine. The mill, a 20-storey building, contains one of the last remaining gravityfed concentrator mills in North America. In its prime, it processed 700 tonnes of copper a day, as well as gold, silver, lead, zinc and cadmium. A five million dollar boost in 2007 allowed the structure’s foundations to be secured, and its 14,416 window panes, roof and siding replaced or restored. The Britannia Mine Museum has an intact network of tunnels spanning 210 kilometres that visitors can explore using an underground train ride that gives them “a-day-in-a-miner’s-life” experience. “The public comes with that expectation,” said Klausen. “And

it is still one of the more popular things. It’s a quirky thing. Going underground in a safe way gets people’s heart rate going.” The museum has also addressed the issue of the impact that the mine has on the environment. The EPCOR Britannia Mine water treatment plant cleans up water after years of damage resulting from acid rock drainage. The mine museum is a prime example of the industry’s ability to meet the environmental challenges posed by mining and learn from it. “There were some environmental legacies that needed to be cleaned up. But that has been done and now the property is being used as an educational tool, as a place of discovery for young people,” said McPhie. “I think it represents the full life cycle of a project and also that the industry has learned from the past and is very much progressing to a much lighter footprint on the land in terms of environmental protection and stewardship.” CIM

November 2010 | 13

news Outlook darkens for DRC developments Recent seizure of assets brings to the fore the risks involved in doing business in developing countries

At one time, First Quantum Minerals’ operations in the Democratic Republic of Congo (DRC) held great promise. Its Kolwezi tailings project and Frontier copper mine employed more than 1,500 people, and the company, which invested close to one billion dollars in the mineral-rich West African nation, was one of its largest mineral extractors and taxpayers. Today, First Quantum’s hopes in the DRC are in ruins and the company is embroiled in the courts and international arbitration, battling an array of players that are divvying up the spoils from its former holdings. The final blow came in late August, when Sodimico, a DRC Quantum’s Frontier Mine, expropriated by the Democratic Republic of Congo, is now the subject of international state-owned mining com- First arbritration. pany, ordered the company to stop all mining operations at Frontier, the last propDevelopment Canada, agreed. Republic of the Congo looked like a erty it still controlled. “Experts have long been aware of a good fit. The Congolese property seizures variety of political, currency and The Canadian company’s troubles are forcing Canadian and international change of government risks attached started when the DRC government mining sector operators and developto doing business in developing coununilaterally reopened 63 mining coners to reassess the risks involved in tries,” said Schneider. “However when tracts with international players, doing business in the developing a big story like this comes around, it including First Quantum Minerals, world. “The expropriations are a draincreases awareness of these risks both and asked co-signors for additional matic symbol of the constant conflict among the general public and concessions, upfront payments and between resource holding countries, investors, who then tend to look for the like. usually in the emerging markets, and ways to mitigate them.” At one point, the DRC government investors and sponsors, often from the On paper, First Quantum Minerals’ suddenly broke off talks, and then developed world and backed up by venture into the Democratic Republic quickly seized First Quantum’s Kolinternational financial institutions,” of Congo looked well-structured. The wezi tailings project, and then more said Thomas Wexler, a partner at company already does business in recently, the Frontier Mine, which had Fasken Martineau LLP, and industry Mauritania and Zambia, two steady opened in 2007 and was expected to specialist. jurisdictions in Africa. So an investyield 1.43 million tonnes of copper in Signi Schneider, director of political ment in a more lucrative, though concentrate during the ensuing two and human rights risks at Export riskier, venture in the Democratic decades. 14 | CIM Magazine | Vol. 5, No. 7

Photo courtesy of First Quantum Minerals

By Peter Diekmeyer

news Following the Kolwezi seizure, First Quantum Minerals asked the International Chamber of Commerce in Paris to hold a hearing on its legality, a move that company officials believe triggered the Frontier seizure. For its part, the DRC announced that it would investigate First Quantum for “suspected widescale misconduct.” The DRC ranked 171 out of 179 in Transparency International’s 2008 Corruption Perceptions Index, and 182 out of 183 countries in the International Financial Corporation’s “ease of doing business” listing. Yet despite the forbidding numbers, some companies appear to be willing to take their chances. “The DRC is of course a special case, with rich deposits and unsettled politics,” said Wexler. “Increasing demand from Asian buyers and companies will also lead to further tie-ups with resource holding countries, often to the detriment of more established owners or investors.” First Quantum is not ready to give up the fight any time soon. In midSeptember, the company announced that it was taking further legal action in the matter against players that participated in divvying up its former mining assets. Its primary targets include two subsidiaries of Eurasian Natural Resources, which, Clive Newall, president of First Quantum, said “…had plenty of notice that they were dealing in stolen property.” On October 1, the company announced that it was heading into international arbitration in Washington, D.C. to regain its mining title to its Frontier Mine. The property has been sold to a Hong Kong company named Fortune. “We will continue to drive this legal process to its conclusion,” said Newell in a statement. “We are determined to achieve a just outcome and to uphold the standards of good governance, not only for our shareholders, but also for the Congolese people.” The Democratic Republic of Congo’s embassy in Ottawa declined to comment on the matter. CIM

Moving on up CIM incoming president-elect CIM is proud to welcome Terence Bowles as incoming president-elect. Bowles, who was recently appointed president and CEO of the St. Lawrence Seaway Management Corporation, brings to the CIM executive years of executive-level experience and business acumen. He recently retired from The Iron Ore Company of Canada where he was CEO and president since 2001. Under his tenure, the company improved safety standards, replaced and refurbished aging equipment, and increased productivity. Once the business process had been improved and streamlined, Bowles turned his focus to expanding production with a $1 billion capital investment. A graduate of Laval University in chemical engineering, Bowles went on to complete his master’s degree in business administration at McGill University. He later completed the Advanced Executive Program at the Kellogg Graduate School of Management and also received the ICD.D designation from the Institute of Corporate Directors Program. In 1975, following the completion of his MBA, Bowles went to work for the Dominion Bridge Company where he was put in charge of the marketing of industrial products, which dealt predominantly with the James Bay Hydro development project. Bowles later returned to work for Quebec Iron and Titanium in 1976, where he held various senior-level positions that included production director, vice-president of operations, senior vice-president planning, technology and finance, executive vice-president and president. Bowles presently lives in in Montreal with his wife Lise. They have three sons. John Blake has been appointed president and CEO of Luna Gold Corp. Blake, who has over 30 years of experience in the mining industry, was recently the chief executive and director of operations for the Indonesian subsidiary of Newcrest Mining. He also served as CEO of Australia Solomons Gold Ltd., executive director of Agincourt Resources Ltd. and president of PT Agincourt Resources Indonesia. He remains a non-executive director of Sihayo Gold, a company developing a gold mine in North Sumatra, Indonesia. Toronto-based Stonegate Agricom Ltd. has appointed James P. Geyer to the position of vice-president, North America , with responsibility for the Paris Hills phosphate project in Idaho. Geyer, who has more than 35 years of experience in mining operations, is a director of Gold Reserve Inc. and Thompson Creek Metals Company Inc. Over the years, he has held several executive positions, including senior vice-president for Gold Reserve and vice-president, operations at Pegasus Gold Corporation. November 2010 | 15

news A clearer result B.C. lab offers sharper tool for environmental monitoring

ALS Environmental recently moved into its new laboratory in the Vancouver suburb of Burnaby. The new facility, which covers 41,000 square feet, is notable for having one of the very few commercial high-resolution inductively coupled plasma mass spectrometers (HR-ICPMS) in North America. Tim Crowther, regional client services manager, ALS Environmental, said there are only “one or two” in Canada and “a few” in the United States. Only in Sweden is the instrument common in environmental labs. “The [instrument] is the most advanced technology available for analyzing trace amounts of metals and one of the first broad applications in a commercial environmental laboratory in Canada,” Crowther said. The HRICPMS is not another example of more powerful technology for its own sake. “Environmental regulators are becoming more demanding, especially on mining and exploration work being done in northern Canada,” Crowther added. “They want lab tests that are accurate and that can detect baseline concentrations of metals and other

Photo courtesy of ALS Environmental

By Peter Caulfield

ALS labratory’s highly prized high-resolution inductively coupled plasma mass spectrometer is one of a few commercially available units in North America.

contaminants in the most pristine waters in Canada, as well as tests that can check for the cumulative effect of metals over time. So we need to be able to provide the service and the results that the regulators, and our clients, ask us to provide.” The HR-ICPMS is about the size of a sub-compact car. Manufactured by

Thermo Scientific, it costs over half a million dollars. The instrument enables the lab to test for extremely low concentrations (parts per trillion) of metals such as cadmium, lead and zinc in water, fish, vegetation and blood samples, for example. It can also analyze milligram quantities of samples (e.g. from fish biopsies), which

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16 | CIM Magazine | Vol. 5, No. 7

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news enables it to examine the cumulative effects of metals in an environment over time. The analysis of a sample in the HRICPMS begins with the aspiration of a liquid into the instrument, which is then introduced into a plasma torch. The temperature of the plasma torch is approximately 6,000 degrees Celsius, or 10 times as hot as a typical pizza oven. The hot plasma breaks the sample into metal ions, which enables the lab to detect minute quantities of any metal that may be present in the sample. The more commonly used lowresolution spectrometers often cannot recognize differences in the masses of the metal ions in the sample. “To compare the HR-ICPMS to the more common low-resolution ICPMS is like watching high-definition versusstandard-definition television,” Crowther said. “The picture resolution is far superior.” Vancouver-based Lorax Environmental Services Ltd., an environmental P

consulting company, has been making use of ALS’s high-resolution mass spectrometer. Senior environmental geochemist Alan Martin said Lorax uses the instrument for analyzing surface, pore and ground waters. The high-resolution instrument is able to tackle complex contamination matrices, such as seawater or saline groundwater, without loss of sensitivity. “For pore water analysis, we have to conduct all of our analyses on samples that are only four to six milligrams,” Martin said. “ALS has configured its instrument so that it is compatible with these volume limitations.” Martin added that the high-resolution mass spectrometer is extremely sensitive, which enables it to detect trace elements, even if the sample has been diluted. “The high-res instrument also offers excellent spectral resolution of specific isotopes, which minimizes the potential for interference,” he said.

In addition to the HR-ICPMS, the laboratory has other instruments to deal with even the most complicated (i.e. many interferences from other elements) samples, such as atomic fluorescence spectrometers (AFS). These spectrometers detect the fluorescence of the gaseous form of metals such as arsenic, selenium, antimony and mercury to measure their concentration in a sample. “The spectrometer for mercury is a great improvement in sensitivity over the more commonly used atomic absorption spectrometer and will allow parts-per-trillion levels of detection in waters,” Crowther said. Another bow in the ALS environmental quiver is a collision/reaction cell ICPMS (CRC). Crowther said the CRC measures water and soil samples that have a significant concentration of metals or chemicals that can interfere with the measurement of other metals and is a significant improvement over the more common low-resolution mass spectrometer. CIM

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upfront TECHNOLOGY by Heather Ednie

From the desktop to the mine face Next generation simulators range from cost-effective to totally immersive conditions, although plans are underway to add slippery and wet driving conditions as a future option. Other developments in the works include a redesigned hydraulic excavator simulator scheduled for later this year, incorporating new digging simulation and much more realistic soil interaction. “This will then carry over to other simulators, such as a dozer simulator, to come in the future,” Keffer adds.

Screen shot of a fully simulated vehicle from 3DI’s Living Mine simulation package

n array of simulator technologies is working its way into the mining industry and proving to be powerful tools for both human resources and investor relations. A number of Canadian companies are among the leaders of this new technology development. Whether the advances come from established simulator market forces like Montreal-based Simlog and Edmonton’s 3D Interactive Inc., or from a newer player in mining simulation (but the world leader in simulation for aerospace and defense), CAE, the next couple of years promises a major shift in mine simulation applications. Simlog has sold over 1,100 software licences to the mining, construction and forestry markets in 45 countries. The simulation software is developed in close collaboration with equipment manufacturers and training specialists to ensure that the realism of the experience is communicated effectively to the student. “Compared to costly turnkey simulators, ours are affordable and better for training basic skills,” says Mike Keffer, director of marketing, Simlog. The PC-based platform requires a single computer and includes a wide choice of USB-ready controls. “Each of our ten types of equipment simulators offers a choice of levels of USB controls, from inexpensive and not realistic to higher priced, very realistic OEM controls built using real parts,” says Keffer. Trainees work through a series of modules focused on core skills, with exercises becoming increasingly difficult. On screen, a generic mine site is modelled under ideal

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Peace River Coal in British Columbia was facing challenges of high operator turnover. They approached Northern Lights College to create an Aboriginal operator training program, which piloted last summer. The program included Simlog simulator time and classroom time, as well as real equipment operation at the mine site. Simulator performance results allow students to target areas they need to better develop. Donna Merry, a workforce training/continuing education coordinator at Northern Lights College, says the simulator is a valuable asset to the program. “The trainers found an increase in student confidence and ability gained through using the simulator and program,” says Merry. “Now, all five of our pilot students are working as haul truck operators at Peace River Coal.”

The living mine 3D Interactive (3DI) is creating simulators for mining that will usher in a new generation of technology application, says Kelly Morstad, 3DI’s co-founder. “We’re taking advantage of the hardware technology now available and the amazing advancements in the video gaming world, and then adding some proprietary capabilities to fit in mining; the result is much more affordable, advanced simulation technology.”

Photo courtesy of Simlog Inc.

Photo courtesy of 3D Interactive Inc.

Bringing the classroom to life

A scene from Simlog's mining truck simulation software

upfront TECHNOLOGY

The mine’s topographical data can be uploaded from a number of mine software packages or infrared cameras. Once imported, the data is rapidly textured and rendered. “Your virtual as-built mine is ready to train truck operators on the intricacies of the new haul road, but go ahead and add icy or muddy conditions while you’re at it,” Morstad says. This year, 3DI will release their second generation of simulated earth technology, which replicates how ore reacts to forces and allows users to dial-in the properties of the type of ore to simulate. “Are you moving hard rock, coal, oil sands or overburden? Users are free to choose those qualities along with climatic conditions — any conditions that are pertinent to operation performance,” says Morstad. Not satisfied with developing the skills of a single operator, multi-users will connect via a network so even an entire shift can train on how to effectively collaborate to maximize production and safety in multiple conditions. Sessions can be captured and analyzed to support decisions on operating practices. “Operator efficiency directly relates to the drivers’ ability to perform their role optimally in the complete drillto-mill process,” Morstad explains. Currently, this technology is running in beta and the multi-user interface is being assembled into the workflow. Field trials will begin next year with Barrick, and Morstad expects to have the full product release by the end of the second quarter.

Jetting onto the scene A world leader in modelling, simulation and integrated training solutions for civil aviation and the military, CAE’s long-term strategy is to leverage its capabilities in new markets — mining is one of them. Last April, CAE acquired Datamine, a supplier of mine optimization software and consulting services. “We believe that by combining Datamine’s 29 years of expertise and credibility in mining with CAE’s 60 years of experience in simulation-based training, we will develop the industry’s most compelling technology and services geared towards increasing efficiency and improving safety of operations,” says Nick Leontidis, executive vicepresident, strategy and business development at CAE. CAE plans to build higher fidelity simulators than those employed in the mining industry today. “Our market analysis shows the majority of simulator training in mining is for equipment familiarization and standard procedures,” Leontidis says. “We are working on a more immersive environment, based on our aviation full-flight simulators, which will allow mining operators to improve all aspects of their daily work and make it more efficient and safe.” Through its Professional Services team, CAE has already conducted work on mining control centres, visualization, database format and simulated vehicle movement for mining companies. By leveraging advanced simulation and system integration capabilities used for the military, CAE is working on enhancing those solutions to enable the next generation of mining.

New simulators pack HR punch The scarcity of skilled operators is one of the key issues for Barrick Gold Corporation today, as they have a number of young, new employees joining their sites. Barrick views simulation as a key tool to assist skills development. “This is particularly true in countries where, for many, the mine equipment is the first vehicle they will have ever driven,” says Andrew Scott, director of mining information technology at Barrick. The teamwork simulation offered by 3DI (and, it is expected, CAE) shows much potential, he says. Barrick is working with both 3DI and CAE to move their simulators forward in the mine environment. “We have a lot of sites with simulators, but have an appetite for better, cheaper, more capable products,” Scott explains. “There is quite a lot of work going on to fill that niche.” “We’re using simulation not only for skill development, but also for site familiarization,” Scott adds. “Especially for our large, complex sites; we want to avoid our young operators getting lost. It will also enable moving operators between sites. They will be able to become familiar with the site prior to getting there.” Scott expects training will be only one application for the new simulation technology. “We’re now aiming to use the simulation environment for testing, proof of concept and selling the idea of mine automation — it helps tell the story,” he says. CIM

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upfront PROCESSING by Alexandra Lopez-Pacheco

An elegant alternative to smelting Chalcopyrite leaching process leaves a smaller footprint

So C u2+

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F e2+

4 F e 2+

C uF eS 2 C athodi c S i tte e

Anodi c S i te Unassisted chalcopyrite leaching

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F e2+ So Anodi c S i te

Galvanically-assisted chalcopyrite leaching

ack in 2003, David Dixon, a professor at the University of British Columbia’s Department of Materials Engineering, and then PhD student Alain Tshilombo were conducting research on the kinetics of leaching chalcopyrite, the major source of copper. “Alain ran some experiments to measure kinetics and to bolster an electrochemical model he was developing,” says Dixon. “And basically the experiments worked way better than we expected. I looked at the data and it was so obvious to me there was a process buried in there.” By June 2004, the researchers had unburied that revolutionary hydrometallurgical process and patented it as Galvanox™. It was a process they believed could offer an economical and a more environmentally responsible alternative to smelting, something which existing

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hydrometallurgical processes had not succeeded in doing to date on a widespread basis. As a result, approximately 80 per cent of world copper production is still produced by smelting chalcopyrite concentrates. “The efficient and easy and convenient hydrometallurgical treatment of chalcopyrite has been called the ‘Holy Grail’ of hydrometallurgy,” says Dixon. “It was viewed as the ultimate goal. There’s a huge amount of research on the subject and most of it has been more tragedy than comedy. We sort of felt we’d found the Holy Grail. It’s so easy, so straightforward and the lowest cost of all the existing hydrometallurgical treatments.”

“Sledgehammer free” In fact, Galvanox™ is a groundbreaking shift from other hydrometallurgical processes, all of which rely on what Dixon describes as three sledgehammers: C athodi c S i tte e high temperature, ultrafine grinding and corrosive chemicals such as chloride to extract the copper from the chalcopyrite. “All these sledgehammers have technical and economic drawbacks,” says Dixon. “Galvanox™ is basically sledgehammer free. It runs at 80 degrees Celsius, which is well below the boiling point, it’s pure sulphate solution, there’s no chloride, there’s no ammonia, there’s no nitrate, no chemical additives. You don’t even add sulphate because it comes from the ore itself. Everything you need for the leaching chemistry is generated from the ore. You just add water and oxygen.” “It’s actually a very simple process,” Dixon explains. “Instead of the sledgehammers, we use a catalyst, which is pyrite, and the pyrite typically comes from the ore. When pyrite particles come into contact with chalcopyrite particles, they can alleviate the need for chalcopyrite to support its own cathodic reaction. This means that chalcopyrite can become a pure anode and pyrite can become the surrogate cathode. This allows the chalcopyrite to break down

4 F e2+

upfront PROCESSING

unimpeded. This is called a “galvanic couple” and is what gives Galvanox™ its name.” Economically and environmentally, the advantages of Galvanox™ are notable. “The plant emissions are very minimal,” says Dixon. “It doesn’t generate a lot of acid, so we don’t have voluminous tailings. The resulting sulphur is completely inert but you also have the option of recovering that sulphur separately and compressing it into bricks and maybe even selling it to another company that could use it.” Any hydrometallurgical process reduces the environmental footprint of ore processing in contrast to smelting simply because it cuts back on the need for shipping, since the ore can be treated on site at the mill. “Basically, the hydrometallurgical plant is an extension of the mill, but unlike the other processes, Galvanox™ can treat tailings,” says Dixon. “We have successfully piloted the process on a tailings material that had 0.85 per cent copper. And we were able to recover more than 90 per cent of that copper. What Galvanox™ would allow an operator with a lowgrade deposit to do is to optimize the mill for clean, high-grade copper concentrate for shipping (and when you ship a 30 per cent concentrate, that’s more economical than shipping a 25 per cent concentrate) and then take the losses of copper into the tails and treat those and recover that copper. That means, with Galvanox™ as part of the mill, your total recovery may go from 95 per cent with a medium-grade concentrate, which is expensive to ship, to 98 or 99 per cent with a high-grade concentrate that is cheap to ship, and high-grade copper cathode from the tailings, which you can sell at a premium. So it really sweetens the economics of the whole operation.”

than 15 greenfield projects where the Galvanox™ process could be successfully applied. The copper mining industry is facing challenges in the coming decades as copper deposits become lower in grade and difficult to recover economically. “Alternative technologies will need to be developed and commercialized to satisfy world demand for copper,” says Sylwestrzak. “Traditional copper smelters are placing ever-increasing restrictions for deleterious elements such as arsenic on concentrates, but the number of these types of copper deposits that are considered for mining is increasing. Galvanox™ offers the opportunity to treat these types of copper ores economically and dispose of the deleterious elements in a safe, environmentally stable manner.” It is also, says Sylwestrzak, a self sufficient process. “It is its own reagent maker by being able to generate acid and heat requirements for the process internally. This allows the process to reduce operating costs and not be reliant on other processes,” he explains. “Significant opportunities also exist for current copper operations to consider combining a Galvanox™ process with a traditional smelter. It allows the traditional grade/recovery relationship that flotation concentrators operate at to be broken and to recover additional copper otherwise lost to tailings,” Sylwestrzak adds. “The Galvanox™ process is flexible in being able to economically recover copper from ore feeds as low as 0.85 per cent copper to grades of over 30 per cent.”

The next step For all its promise, Galvanox™ faces a hurdle — one that has nothing to do with the technology itself. “The hardest challenge with any technology is finding a mining

Anticipating demand The technology has impressed South African-based Bateman Engineering Projects: Global Technology, a division of Bateman Projects Limited, which in 2007 acquired the rights to exclusively market the Galvanox™ technology in about 20 countries. Since then, Bateman and UBC have pilot-tested three concentrates successfully at a purpose-built testing facility in Richmond, British Columbia, and have been able to produce LME Grade A Copper Cathode using the Galvanox™ process. As well, “Bateman and UBC have studied and tested at bench scale over 30 different concentrates from copper producing regions throughout the world,” says Linus Sylwestrzak, technical manager, Leaching Centre of Excellence at Bateman, which has identified more November 2010 | 21

upfront PROCESSING

company to partner you through the early development and commercialization stages because the perceived risks are higher,” says Sylwestrzak. “The mining industry is fairly conservative, and large mining companies today will always want to be the ‘first to be second’ because the risks of taking new technologies into operating plants today are seen to be very high. If someone else has taken the risk out of developing the technology, the operating companies feel happier to consider and apply such new technologies.” Bateman, however, is confident that it will be able to overcome this hurdle, not just because of its belief in Galvanox™, but also because it has previous success in commercializing and delivering two new leaching technologies to the copper mining industry: the Mount Gordon and Sepon Copper leaching processes. “We see the Galvanox™ process as a stepping stone from those processes because they were aimed at treating only secondary sulphides, while Galvanox™ is able to treat both primary and secondary copper sulphides, provided a source of pyrite is available,” says Sylwestrzak. “To ‘de-risk’ a project, Bateman and UBC complete a series of amenability tests for prospective Galvanox™ plant

opportunities when an initial inquiry is made regarding the process,” Sylwestrzak explains. “This work only requires one kilogram of copper concentrate and can be completed in six weeks. Following a review of the amenability test work, Bateman recommends completing a scoping study, which produces high-level techno-economical evaluation for the process so it can be compared against the costs of developing a concentrator and selling concentrate to a smelter for toll treatment. At the conclusion of these feasibility studies, the mine operator is able to make a decision as to whether to proceed with the commercialization of the process or complete further work.” Dixon understands the reluctance of mining companies wanting to avoid technological risk but he points out: “In the Galvanox™ process there’s exactly one part that has not been used before. Every other piece of technology in the flow sheet is absolutely dead-certain proven. There’s nothing novel about the rest of the flow sheet. It’s very conventional. So there’s really only one element of technological risk and as soon as someone builds a plant and shows it works well, there will be zero technological risk.” CIM

Achievements Cutting-edge business savvy BioteQ Environment Technologies Inc. has been awarded the Business Excellence Award for Outstanding Innovation and Best Practice by the Canada China Business Council at a gala reception in Beijing, China. The award recognizes the success of BioteQ’s strategies in the Chinese market, and this market’s impact on the company’s competitive edge and financial performance. Brad Marchant, BioteQ’s CEO, was honoured to receive this recognition, “China is an important market for BioteQ,” said Marchant. “Our success there is due to the commitment of our joint venture partners, Jiangxi Copper Company and our operations team. We anticipate continued growth in China as we expand our portfolio of industrial water treatment projects.”

Going green makes good business sense The Mining Association of BC (MABC) has awarded five worthy recipients with the 2009 BC Reclamation Awards at a banquet celebrating excellence in mine reclamation. MABC president Pierre Gratton congratulated the winners and applauded their strong commitment to reclamation. “As the current renaissance in B.C. mining takes hold, the significance of reclamation cannot be overstated,” he said. “The ability to open new mines is

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not only based on economic feasibility, but also on the size of the footprint, the impact on water quality and the reclamation design.” The recipients are: • Lehigh Materials, Sechelt Mine — BC Jake McDonald Mine Reclamation Award • Northgate Minerals Corporation, Kemess South Mine — Metal Mining Reclamation Citation • Teck Coal Limited, Elkview Operations — Coal Mining Reclamation Citation • Alpha Gold Corporation, Lustdust — Mineral Exploration Reclamation Citation • CertainTeed Gypsum Canada Inc., Windermere Mining Operation — Quarry Reclamation Citation

Cameco makes “A” list of best employers Cameco has been named one of “Canada’s Top 100 Employers” in a national competition organized by Mediacorp Canada Inc. and published in The Globe and Mail. This is the second consecutive year the company has been lauded with this recognition. Now entering its 12th year, the “Canada’s Top 100 Employers” competition is an editorial project organized by Mediacorp Canada Inc., a specialty publisher of employment guides and periodicals. Cameco CEO Jerry Grandey is proud of the recognition: “This third-party recognition confirms that our company-wide effort to create a positive, respectful and diverse workplace is succeeding.”

upfront EDUCATION/OUTREAC H by Marlene Eisner

Social capital Mining firms back Aboriginal business development fund “It’s hard for a small company to handle exponential growth,” explains McCormick, who will use the common equity investment of between one million and three million dollars from the CAPE Fund to help fuel the expansion. In addition to the dollars provided, the fund is structured to provide broad-based support. “The CAPE fund has a wealth of very successful business people that have a lot of experience and provide support to help small businesses turn to medium-size businesses — and that includes management and financial support,” he says.

Lofty intentions When the Martin family established the parameters of the CAPE Fund, the goal was to provide capital for investment projects while developing managerial skills and entrepreneurial talent among Aboriginal Canadians. They approached members of the business community to invest in more than a financial strategy; they encouraged them to be a part of the capacity building that many Aboriginal communities require to ease poverty and sharpen business acumen. “We wanted to attract Canada’s private sector to this problem and find a vehicle to get it involved,” explains CAPE Fund’s David Martin. “Basically, the challenges for our Aboriginal peoples are economic and social, and they go hand in hand. You’re talking about the youngest and fastest growing segment of our population. Most are under the age of 25, and it’s either going to be a lost opportunity if we don’t address the issue or it will form part of a solution to Canada’s impending labour problem,” says Martin, who sits on the committee that decides which companies are considered for CAPE funding. In the last two years, approximately 200 companies across Canada have been vetted, with two so far receiving CAPE support, and others about to be completed. Along with Manitobah Mukluks, One Earth Farms benefited from a three million dollar investment in common shares as part of the company’s $42 million first-year fund raising led by Sprott Resources. One Earth managed over 32,000 hectares of agricultural land in 2010 on its way to its target of over

The management behind the Manitobah Mukluks brand has native roots and, backed by equity investment from the CAPE Fund, global ambitions.

ean McCormick figured he had nothing to lose, and everything to gain, when he called up the managers of the Capital for Aboriginal Prosperity and Entrepreneurship Fund (CAPE). McCormick, the 36-year-old owner of Blue Moose Clothing Company Ltd., read an article about the fund and decided he had a betterthan-average chance of attracting their attention. McCormick, who is Metis, started his company out of Winnipeg in 1997, producing authentic, high-quality moccasins, mukluks, mitts and gauntlets, using traditional designs dating back thousands of years. Selling mostly to giftware boutiques, in August 2009 he decided to launch the Manitobah Mukluks brand to expand the line into the footwear industry and go global. The CAPE Fund seemed an ideal vehicle to help him grow. Former Prime Minister Paul Martin and his son David set up the fund last year. It is a mid-market, $50 million, private equity fund, which has attracted investors looking for a disciplined, socially responsible investment vehicle that can also provide positive rates of return. The mission of the CAPE Fund is to “further a culture of economic independence, ownership, entrepreneurship and enterprise management among Aboriginal peoples, on- or off-reserve, through the creation and growth of successful businesses.” Investments range from one million dollars to $7.5 million.

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upfront EDUCATION/OUTREAC H

400,000 hectares in the coming years, on tracts from Alberta to Manitoba.

Setting the foundation Peter Forton and Alex Farley, the CAPE management team, have extensive experience in private equity and investment banking. They are supported by an investment analyst and a member of the Missapawistik Cree Nation in Manitoba. The managers’ roll is to promote the fund and seek out and evaluate promising investment opportunities that match its mission. “We look to fund sustainable businesses and increase the percentage ownership and management involvement of our Aboriginal partners over time,” says Farley. “For our investments to be successful, we must generate both financial and social returns.” “We are looking to fund the growth or the acquisition of established medium-sized enterprises or businesses that have the potential to reach this level; we are not looking to fund small gas bars or convenience stores,” says Farley. “The fund can also do ‘startups’ but only where there is an experienced joint venture partner with specific industry background in the business area of the enterprise. In the end, our objective will be to create and/or support the growth of seven to ten successful Aboriginal businesses across the country, and prove that the CAPE model can work and is worthy of ongoing and increasing investor support.”

“I think the main message for us is that this is very closely associated with our core values and philosophy as a company: that is, business with an entrepreneurial flavour, driving economic and social growth. The dual mandate of financial and social return is why we think this is a fantastic opportunity.” Lee Nehring, vice-president of sustainability at Xstrata Nickel, also sits on the CAPE Fund advisory board. “The ability to raise equity is one of the greatest impediments to Aboriginal businesses and that’s why the Fund is an opportunity for Xstrata to be part of the solution,” says Nehring. In the case of Xstrata Nickel, whose mining concerns are in close proximity to the Inuit, First Nation and Metis communities of northern Quebec and Ontario, the underlying sentiment is that some of the fund’s investments will find their way to local businesses. “We hope the CAPE Fund investment will lead to greater investment to Aboriginals in general and naturally we hope some of those will be close to our operations,” says Nehring. “Mining relies on a wide spectrum of technical services, and buying local is very important to our business. The Canadian mining industry is one of the largest employers of Aboriginals in the country, and anything that increases the number of Aboriginal employees and contractors is a win for us.” CIM

The business world comes together The CAPE Fund has 21 investors from the banking, construction, insurance and resource sectors, each of which has contributed approximately $2.5 million. A representative from each company sits on the fund’s advisory committee. Six are from resource companies — Barrick Gold, Goldcorp, Teck, Xstrata Nickel, Nexen and Vale — yet there is no guarantee the businesses chosen will end up in mining’s backyard. “Mining projects, by their nature, tend to be very capital intensive and likely beyond the scope of direct investment from the Fund,” says Forton. “Yet there are many spin-off businesses, such as construction, drilling, catering, transport, logistics, etc., that support the industry, which would be targets for us where they involve Aboriginal partners.”

Paying it forward Peter Sinclair, vice-president of corporate social responsibility at Barrick Gold, sits on the advisory committee of the CAPE Fund. He says his company became involved because the social aspect of the fund reflects the corporate values at Barrick. “We think this is a fantastic initiative, with a unique approach to support local Aboriginal-run businesses; that was really what caught our imagination. It has a focus on entrepreneurial activities that is very closely associated with how Barrick started out.” Supporting an initiative that does not necessarily have mining as its top priority is not a problem, says Sinclair. November 2010 | 25

upfront Q&A by Ryan Bergen

Shaking off the past B.C. poised for development, says the government’s mining point man ining put B.C. on the map, and the province remains full of potential, but for years it has seemed destined to remain full of unrealized potential. The current government committed to changing that. In 2003, as the sector began to heat up, a government task force started work to develop a strategy to support a reinvigorated and sustainable mining industry. The British Columbia Mining Plan was the result. The plan, released in 2005, listed a number of actions to be taken related to Aboriginal engagement, incentives, health and safety and access to land. In September, CIM Magazine spoke to the Honourable Randy Hawes, B.C. Minister of State for Mining, to discuss the planned and unplanned events that have unfolded.

CIM: This summer yielded three revenue sharing agreements with First Nations, inspiring some to declare a mining renaissance in B.C. What do these agreements mean for the province? Hawes: It’s not a big secret that getting a mine permitted in B.C. has had a great deal of difficulty as we work through the consultation/accommodation process with First Nations. I think we were ranked 78 out of 78 in the Fraser Institute survey related to the Aboriginal question. We made the decision to change this and begin directly engaging First Nations. The first two successes were the Kamloops area bands that we made an agreement with on the New Afton Mine and now we have one with the McLeod Lake Band on Mt. Milligan. In the case of the New Afton Mine the agreements are going to provide probably $30 million over the life of the mines, as well as jobs and training, which sends an important message to First Nations across British Columbia. CIM: Some suggest that these agreements are the “low hanging fruit” when it comes to reaching agreements with Aboriginal stakeholders. What do you believe these agreements mean for the future? Hawes: I hope that what’s going to happen is other First Nations are going to see the benefit that is going to directly flow through these agreements, and when there is a revenue proposal in their territory, they’ll be anxious to sit down and discuss the same kind of thing with us. So I’m hoping that it makes the whole process much easier and it is much more like a partnership than the confrontational approach that has characterized the past. 26 | CIM Magazine | Vol. 5, No. 7

CIM: What were the most important lessons you learned from the process of working out these first agreements? Hawes: First Nations negotiators are very skillful — that was lesson number one. These are not easy agreements to put together. The bigger lesson was that by working together in a cooperative framework we are able accomplish some things that might otherwise have been much more difficult. We have been talking to the Nak’azdli, although we don’t have an agreement with them yet regarding Mt. Milligan. We are also talking to the Upper North Simalkameen about Copper Mountain, and we will be sitting down with the Tahltan, as Red Chris gets underway. CIM: If there are agreements to come, can we expect that they will be similar to the ones already completed? Hawes: For all agreements, the money needs to go into building an economic base and community development in the First Nation territory. There is no fixed percentage; there is no dollar amount. There are many, many variables that go in: How big is the mine? What kind of revenue can we expect? How big is the First Nation? How many First Nations are going to be affected? It could be one mine with half a dozen bands sharing revenues. CIM: We have not seen a progress report on the five-year-old BC Mining Plan from the province since the recession hit. Beyond the revenue sharing work, what are the greatest strides that have been made since the update in early 2007? Hawes: We are continuing to push the federal government for the “one project-one review” which was one of the major elements of the mining plan. There has been a little bit of progress. The feds have passed legislation that I think streamlines the federal assessment process, but we are not where we want to be yet, although we have been working hard on that. We have continued to be a leader in mine safety in Canada; we’ve put a safety audit program in place; the annual mine rescue competition has continued as well. We’ve spent quite a bit of money on reclamation. The flowthrough share agreement has been extended to 2013. We’ve extended the exploration tax credit until 2016. We’ve heard a lot from companies saying the permitting process is too onerous, so we are asking them to make a multi-year application.

upfront Q&A

We are also coordinating permits using a “single-window approach” for licensing, referrals, registrations and approvals. CIM: What about the Northwest Transmission Line and other infrastructure developments? Hawes: We’ve committed the resources and begun the development on Highway 37 electrification. That’s about as big as you can get, in terms of infrastructure projects. There are a number of mines that we believe are going to be developed along Highway 37. With electrification, the economics for these projects begins to look a lot better. We are really hoping the Galore Creek Mine goes ahead and there are other mines up there that are going to become much more viable. Also, the port of Stewart is going to see some considerable enhancements, we believe. As a deep, all-weather port in Northwest B.C., it is important, as there are a number of mines that would be looking to use Stewart. The owner of the port there is quite happy to expand capacity as required. CIM: Hostility toward mining is something everyone interested in developing the province’s resources must confront. If more projects get underway, how will the government address the resistance? Hawes: I think the response is through education, among other things. There isn’t a day that anyone here could go through without using something that has been mined. There probably isn’t even an hour. People need to understand that products in our daily lives come from somewhere. Every time we have a mine proposal we have someone from the environmental community strongly opposed to it. I’ve started challenging them: ‘If you don’t want to see mining in British Columbia, where do you want to see it? Do you want to see it in weak states that don’t have the capacity to enforce labour and environmental standards?’ We have high environmental standards and our mines in B.C. are very safe. Our workers’ rights are respected, and mining is the highest paying heavy industry on average. Many people already do understand this. In Princeton, near the Copper Mountain Mine scheduled to reopen, one third of the town’s population came to an open house to have a hot dog and celebrate the occasion. I understand that sometimes people don’t want something in their backyard but, frankly, we need these minerals.

a mine permitted, through an environmental assessment, and operating would have been very remote. We will be compensating the companies that have tenure there. This isn’t a precedent for anywhere else. Of course, the industry is not happy with this decision, and I understand why. At the same time, I think we have shown with other initiatives that the door is open for mining. We encourage it, we support it, but just not in the Flathead. CIM: Is there anything you would like to challenge the industry to improve on? Hawes: Yes. It relates to the Aboriginal question. We are working on revenue sharing, but it is absolutely critical — beginning with the exploration stage and further into development — to build a relationship with the First Nations. And you build that relationship by talking honestly and frankly and by, wherever possible, providing employment and training. It is very clear that those companies that have developed a great relationship before we come in to talk about revenue sharing make it a much easier process. But when a company comes in and is a little high-handed and passes off the responsibility of engagement to the province, it is a much tougher ride. CIM

CIM: Following the recent decision to prohibit mining in the Flathead Valley, uncertainty about protected areas in B.C. concerns many in the mining industry. Are those concerns well-founded and if not, why not? Hawes: This decision was not just about mining. Discussions about the area had been going on for a long time between B.C. and Montana and the two federal governments. The Flathead is a pretty unique place and the chances of having November 2010 | 27

mining in B.C.

Power and the people Infrastructure and engagement vital to mining resurgence in B.C. By Dan Zlotnikov

Imperial Metals’ Red Chris gold-copper-silver property lies on a plateau, 1,500 metres above sea level, 80 kilometres south of Dease Lake in northwest British Columbia.

espite its wealth of natural resources, British Columbia has had a difficult few years. The mountain pine beetle has bored into the heart of the province’s forestry industry, and the global financial crisis compounded the damage. Similarly, mining — another pillar of B.C.’s economy — has suffered. An industry survey published by PricewaterhouseCoopers in May of this year highlighted the impact of 2009’s decreased demand: virtually every type of mineral B.C. produces saw a drop in revenue. Metallurgical coal, which accounts for just over half of the province’s net mining revenues, was down 24 per cent in shipment volumes and saw a 40 per cent price decrease compared to 2008. As a victim of the economic downturn, the province is not unique. The mineral resource sector, however, has been in the doldrums for some time. Randy Hawes, the province’s Minister of State for Mining, puts it simply: “No new metal mines have been started up in British Columbia in the past ten years.” “We went through a pretty dismal decade,” explains Pierre Gratton, president and CEO of the Mining Association of

28 | CIM Magazine | Vol. 5, No. 7

BC. “In the ‘90s, there was an exodus of mining companies for a whole host of reasons. The only reason the industry kept going was because there were some existing mines in place.” But the past is the past, says Gratton, who believes the province is undergoing a mining renaissance. “The northeast coal region, which was down to no operating mines in the early 2000s, now has four operating mines with the potential to reach five or six in the next year,” says Gratton. “We’re also seeing a resurgence in base metal activity,” he continues, pointing out a number of projects in various stages of permitting and commissioning. In fact, the PricewaterhouseCoopers report lists no fewer than 13 projects in various stages of permitting, and a further seven engaged in exploration work. This explosion of activity has not gone unnoticed by the provincial government, which has eagerly embraced the promise of both tax revenue and the new jobs these projects promise to deliver. To make the operating in the province a more appealing prospect, the B.C. government has acted in two directions

Photo courtesy of Imperial Metals/Cas Sowa photo

mining in B.C.

simultaneously: initiating new infrastructure development projects and signing mining revenue-sharing agreements with three First Nations bands. “B.C. never entered treaties with most of the First Nations,” Hawes explains. “The supreme court here has ruled that there are rights and titles that exist in B.C. that were not extinguished through treaty-making or any other means, so we are obliged by law to enter this consultation and accommodation process.”

A jolt of energy The most prominent of the infrastructure projects is the Northwest Transmission Line, or NTL, currently in the final planning stages at BC Hydro. The NTL is planned as a 335kilometre, $404-million clean power expansion project from the Skeena substation near Terrace northward to a planned substation at Bob Quinn Lake. Following the Highway 37 corridor, this new 228-kilovolt extension will bring power to both communities and industrial developments in B.C.’s northwest. The line is an important catalyst for the level of mining activity in the vicinity. Of the 20 exploration or development-

stage projects in the province, seven are located along the Highway 37 route. The importance of the NTL for these projects cannot be overemphasized. As Imperial Metals states on its webpage for the Red Chris gold-copper-silver project, “The (2005) Red Chris feasibility study was based on the assumption that power supply would be available at Tatogga near Iskut, a distance of 23 kilometres from the mine site.” Another beneficiary will be the Galore Creek project, a joint venture between NovaGold Resources and Teck Resources. Rhylin Bailie, director of corporate and investor relations, NovaGold, says the plan was always to bring a power line to the site, but now the project will be able to tie into the new transmission line at a much lower cost. “There’s been a lot of interest in the project, and a lot of people are looking for it to succeed,” says Tim Jennings, senior project manager, Transmission & Distribution Major Project Delivery at BC Hydro. “We’ve already signed on an anchor tenant and obtained federal funding for the project.” That tenant, AltaGas, has inked a deal with BC Hydro worth $180 million, and is in the process of building the November 2010 | 29

mining in B.C. N mining, forestry, and oil and gas centres and the southern part of the province — notably the port of Vancouver. Rounding out the infrastructure growth scene is the Infrastructure Royalty Credit Program, aimed at encouraging natural gas and petroleum production in the northeast of the province. Under this program, the province offers royalty credits to companies engaged in construction of new pipelines and roads. According to an August press release from the Ministry of Energy, Mines and Petroleum Resources, B.C. has awarded $485 million in credits since the program’s introduction in 2004. For its investment, the province has seen 71 new road-based and 83 pipeline-based projects take place.

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Northwest Transmission Line (NTL) route alternatives

$700-million 195 MW Forrest Kerr hydroelectric facility, to be connected to the NTL at the planned Bob Quinn Lake substation. Looking beyond the existing developments, the NTL promises to have an enormous impact on future mining developments in northwestern British Columbia. Companies stand to realize significant cost savings by avoiding the use of diesel generators, but a ready supply of cheap, green energy will also create opportunities for local businesses, quite possibly in serving the needs of the nearby mines of the future. The NTL is not the only provincial initiative. The Cariboo Connector, a widening of 460 kilometres of Highway 97, is currently in the first stage of a $200-million construction project. According to the Ministry of Transportation, Highway 97 has seen only a three per cent increase in passenger traffic from 2000 to 2003, but heavy truck traffic jumped by 28 per cent over the same period, prompting the decision for the expansion. Stretching from Prince George in the north to Cache Creek in the south, the highway will offer a much-improved link between the 30 | CIM Magazine | Vol. 5, No. 7

The other major government initiative is a landmark decision that will enable First Nations stakeholder communities to beneHouston Houston fit from the mineral wealth of their ancestral lands. The B.C. government recently announced the signing of two revenuesharing agreements, known as economic and cultural development agreements (ECDAs). One is with the Tk’emlups and Skeetchestn First Nations, on whose shared territory the New Afton project is to GDS10-241 be built, and the other is with the McLeod Lake Indian Band, whose lands will host the Mt. Milligan copper-gold project, recently scooped up by Thompson Creek Metals Company in its acquisition of Terrane Metals Corp. The response from the First Nations signatories to the agreements has been quite positive. Chief Shane Gottfriedson, of the Tk’emlups First Nations, says the process was ambitious and the agreement an important milestone. “I think the deal-maker was that roughly a year ago, we had a meeting with Premier Gordon Campbell, Attorney General de Jong, Aboriginal relations minister Abbott, and myself and the chief of Skeetchestn,” says Gottfriedson. “We also invited Phil Fontaine, our national chief at the time, to attend. Basically, it was a high-level protocol meeting, and we said, ‘Let’s try to work something out that is unique and that shows the goodwill of the two governments, and let’s make it something that’s historic.’ We basically came out with the agreement this summer, signing the largest revenue-sharing agreement I’ve heard of within Canada, and we’re pretty excited about that.” From the government’s side of the process, Minister Hawes feels that the ECDAs are a very significant step T elkwa Telkwa

Image courtesy of BC Hydro

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Kw’alaams L Kw’alaa Lax laa am ams

mining in B.C. towards improving the often strained relationship between First Nations and mining companies. “I think they’re going to be the shining beacon that will lead us into a much better relationship in terms of resource development in First Nations territories,” he says. The B.C. government’s position is that the revenue-sharing agreements are the way to proceed. “For every significant expansion or new mine in B.C., we’ll sit down with the First Nation and negotiate revenue sharing,” Hawes says.

provincial government gave its approval to the project, but the federal government has yet to make a final decision, although the cabinet is expected to do so imminently. At issue, explains Brian Battison, vice-president of corporate affairs, Taseko Mines, is that in order to build the mine, Taseko will have to drain Fish Lake. “We searched long and hard for an alternative that would accommodate the retention of the lake, and there just isn’t one available; that’s because the ore body is immediately adjacent [downstream] of the lake,” he Prosperity in the explains. “In fact, were you to operbalance ate this mine through its full mine — B. Battison These first agreements are life potential, the rim of the pit actuimportant advances, but the path ally would encroach on the lake.” forward is still a challenging one. Taseko Mines’ ProsperOn the opposing side of the argument are the communiity development, about 250 kilometres northwest of the ties of the Tsilhqot’in First Nation, that consider Teztan Biny New Afton project, is not without controversy. The project — the Tsilhqot’in name for Fish Lake – to be their sacred has completed two distinct environmental assessment ancestral fishing territory. Stewart Phillip, Grand Chief of the processes, one provincial and one federal. In January, the Union of British Columbia Indian Chiefs, does not accept

“

We’re caught in the middle of a serious struggle between the First Nations and the Crown about who has control over the land.

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November 2010 | 31

Photo courtesy of Imperial Metals/Cas Sowa photo

mining in B.C.

Imperial Metals’ Red Chris camp, situated 23 kilometres by road from Highway 37. Construction on larger camp facilities to house 60 employees is under construction.

Taseko’s position that there is no alternative to the draining of the lake. “We’ve been down this road before with the Kemess North project and I think that the mining industry is simply attempting to kick this door in,” he says. The Kemess North proposal also required the destruction of a lake, and was denied a permit for that reason. “It will allow them to obliterate lakes, to have them designated as tailing pond impoundment areas, and it will ben-

efit their bottom line,” Phillip says. “The expression I used is that they’re going to have to sharpen their pencil more, and I think if they do that then we won’t have to do this again when the next company comes along.”

A deeper struggle

Photo courtesy of NovaGold

While at first glance this confrontation is about a lake, there are much deeper undercurrents and very serious and long-term implications, whichever way the decision goes. “I don’t think we should lose sight of the fact that the Tsilhqot’in national government, in particular the Tl’etinqox-T’in, were very successful in advancing their Aboriginal title and rights issues through the courts, and that litigation is still ongoing,” says Phillip. “Had it not been for a technicality in terms of the pleadings, there would have been a finding of Aboriginal title.” Battison says Taseko is in an awkward position. “We’re caught in the middle of a serious struggle between the First Nations and the Crown about who has control over the land,” he explains. The ultimate question being decided, Battison conFacilities including the snow canopy were installed at NovaGold's Galore Creek in 2007 before construction was suspended. The tinues, is “Do First Nations company says it will release a pre-feasability study on the property next year. 32 | CIM Magazine | Vol. 5, No. 7

mining in B.C. have a veto over land use in the province. Should the federal government decide no to the Prosperity project, then it would send a loud and resounding signal to mineral investors that I think could be interpreted as First Nations do in fact have a veto. And I think that would be viewed by oil and gas, forestry, mining, recreation, ranching, agriculture and tourism as a very troubling signal.” Battison’s sentiments are echoed by the Mining Association of BC’s Pierre Gratton. “A veto on decision-making in the current context is problematic for, I think, all industries in B.C. without clearly laid out rules that you could follow,” Gratton says. “Investors would be very wary of spending years and millions of dollars meeting or exceeding regulatory requirements and reviews only to fail at the final hour because of opposition by one group or part of a group.” At the same time, Gratton adds, “I think opportunities for greater engagement are worthwhile and important. First Nations have lived in B.C. for thousands of years and they should be properly engaged and feel that they’ve had a chance to participate effectively. I think there are obviously questions coming from them or concerns that that’s not really done effectively.” Greater engagement is something Hawes advocates as well, pointing out that while the mining companies are not

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required to negotiate IBAs with the First Nation stakeholders, having an IBA in place goes a long way to establishing a good relationship. “We advise the companies, if you don’t develop a relationship with the First Nations in whose territory you want to establish, you’re going to be going down a very rocky road,” says Hawes. When asked whether she is concerned about the future of her company’s projects if the First Nations in B.C. receive veto powers over mining development, Nova Gold’s Bailie answers categorically “no.” “That’s why we get in from day one and work with the First Nations groups,” she explains. “It’s so that we understand where they’re coming from and they understand where we’re coming from, and we’re really working together to develop the project. I think that makes all the difference in the world.” If mining development is to continue in British Columbia, a balance will have to be struck between Aboriginal rights and mineral investor certainty. The mid-year update to the Fraser Institute report shows the province has climbed on the subject of uncertainty over Aboriginal land rights. It was, prior to the revenue-sharing agreements, in fifth place – from the bottom. Clearly, companies are still concerned and many are certainly waiting for the legal landscape to stop shifting and the dust to settle. CIM

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l’industrie minière en C.-B.

L’énergie et les gens Les infrastructures et l’engagement sont essentiels à la relance de l’exploitation minière en Colombie-Britannique

algré ses richesses naturelles, la Colombie-Britannique a connu des années difficiles. Le dendroctone du pin ponderosa a grandement nui à l’industrie forestière, sans oublier la crise financière mondiale. L’industrie minière, un pilier de l’économie de cette province, a aussi souffert. Un sondage publié par PricewaterhouseCoopers en mai dernier a souligné l’impact de la demande moindre en 2009. Les revenus provenant de presque tous les types de minéraux ont chuté. Le charbon métallurgique, qui compte pour un peu plus de la moitié des revenus miniers nets de la province, a vu le volume de ses expéditions diminuer de 24 pour cent et son prix chuter de 40 pour cent par rapport à 2008. Randy Hawes, le ministre d’état pour les Mines, résume simplement : « Aucune nouvelle mine de métal n’est entrée en production en Colombie-Britannique au cours des dix dernières années. » Pierre Gratton, président-directeur général de la Mining Association of B.C., explique : « Nous avons eu une décennie difficile. Les mines existantes ont à elles seules préservé l’industrie. » Mais c’est du passé, croit-il. « La région houillère du Nord-Est, qui n’avait aucune mine en

exploitation au début des années 2000, en a maintenant quatre et le potentiel d’en avoir plus l’an prochain. Plusieurs projets de mines de métaux sont à l’étape des permis et de la mise en service. » Le Gouvernement provincial veut aussi avoir une croissance industrielle. B.C. Hydro construira sous peu une ligne de transmission de 344 km, la Northwest Transmission Line. Ce projet d’expansion de 404 M$ partira de la sous-station Skeena, à proximité de Terrace, vers une sous-station planifiée au lac Bob Quinn. Cette ligne sera un important catalyseur. Selon Rhylin Bailie, directrice des relations corporatives et avec les investisseurs chez Nova Gold, le projet Galore Creek, une coentreprise entre Nova Gold Resources et Teck Resources, en bénéficiera grandement; le plan a toujours été d’amener une ligne électrique au site, mais le projet pourra maintenant se raccorder à bien moindre coût. « Le projet de ligne suscite beaucoup d’intérêt », dit Tim Jennings, directeur principal de projet, Transmission et Distribution, B.C. Hydro. « Nous avons déjà un locataire-clé et nous avons obtenu du financement fédéral. » November 2010 | 35

Photo courtoisie de Scott Robert Collins

Le terminal vraquier Neptune, la porte pour les ressources extraites de l’Ouest canadien, est situé à l’extrémité de la baie Burrard à Vancouver Nord.

Photo courtoisie de NovaGold

l’industrie minière en C.-B.

NovaGold a construit des infrastructures, dont ce pont en 2007, sur la route menant au site Galore Creek avant que la construction n’ait été suspendue. La compagnie dit qu’elle diffusera une étude de préfaisabilité sur cette propriété l’an prochain.

Partager la richesse de la Terre Pour la première fois, les communautés des Premières nations intervenantes bénéficieront de la richesse minérale de leurs terres ancestrales. Le Gouvernement de la Colombie-Britannique a récemment annoncé la signature de deux Ententes de développement économique et communautaire. Une entente a été signée avec les Premières nations Tk’emlups et Skeetchestn; le projet New Afton sera construit sur ce terrain partagé. L’autre entente a été signée avec la bande indienne McLeod Lake pour le projet cuivre-or Mt. Milligan. Selon le chef Shane Gottfriedson de la Première nation Tk’emlups, l’entente constitue une importante étape-clé. « Je crois que la réussite de l’entente réside dans la rencontre tenue il y a environ un an entre le Premier ministre provincial Gordon Campbell, le procureur général provincial Michael de Jong, le ministre des Relations autochtones George Abbott, le chef de la nation Skeetchestn et moimême. Nous avions aussi invité Phil Fontaine, le chef national de l’époque. Nous nous étions dit : ‘Essayons d’établir quelque chose d’unique et qui reflète la bonne volonté des deux gouvernements.’ L’entente a été conçue cet été; nous avons signé la plus importante entente canadienne de partage des revenus que je connaisse. » Selon M. Hawes, ces ententes de développement économique et communautaire constituent un pas important vers l’amélioration des relations entre les Premières nations et les compagnies minières. Le Gouvernement de la C.-B. estime que ces ententes de partage des revenus constituent la manière de procéder. Malgré ces premières ententes, le chemin est encore rempli de défis. Le projet Prosperity de Taseko Mines est sujet à des controverses. Le Gouvernement provincial a donné son accord mais non pas encore le Gouvernement fédéral. Selon Brian Battison, vice-président, Affaires corporatives, Taseko Mines, Taseko devra drainer le lac Fish pour construire la mine. « Nous avons longtemps cherché une 36 | CIM Magazine | Vol. 5, No. 7

alternative, ce n’est simplement pas possible parce que l’amas minéralisé est tout juste en aval du lac. Si la mine devait durer sa pleine vie, le bord de la fosse empièterait sur le lac. » Par contre, les communautés de la Première nation Tsilhqot’in considèrent Teztan Biny – le nom Tsilhqot’in pour le lac Fish – comme étant leur territoire ancestral sacré de pêche. Stewart Phillip, le grand chef de l’Union des chefs indiens de la C.-B., n’accepte pas la position de Taseko qu’il n’y a pas d’autre option que de drainer le lac. « Nous avons déjà eu cette situation avec le projet Kemess North, qui demandait aussi de détruire un lac. Le permis avait alors été refusé », dit-il. « Cela permettrait d’oblitérer des lacs ou de les désigner comme bassins de résidus. Les dirigeants devront réviser la conception. » Alors qu’à première vue, cette confrontation concerne un lac, des questions plus profondes et de sérieuses implications sont en jeu. Selon M. Phillip, l’industrie minière ne devait pas forcer la promotion des projets. « Il vaudrait mieux dépenser du temps et des ressources pour établir des relations avec les peuples autochtones. » M. Battison dit que Taseko se trouve dans une situation compliquée : « Nous sommes au milieu d’une lutte entre les Premières nations et la Couronne à savoir qui contrôle le terrain. Est-ce que les Premières nations ont un droit de veto sur l’utilisation des terres? Si le Gouvernement fédéral devait dire non au projet Prosperity, les investisseurs comprendraient alors que les Premières nations ont en effet un droit de veto. Les industries du pétrole et du gaz, des forêts et des mines, du tourisme et de l’agriculture le verrait aussi comme un signe troublant. » Pierre Gratton de la Mining Association of B.C. dit : « Dans le contexte actuel, un veto sur la prise de décision sera problématique pour toutes les industries de la C.-B. s’il n’y a pas établissement de règles claires. Les investisseurs hésiteront à travailler durant des années et à dépenser des millions de dollars pour rencontrer ou dépasser les exigences réglementaires si, à la toute dernière heure, le projet échouait en raison de l’opposition d’un groupe ou d’une partie d’un groupe. » Il poursuit : « Je crois qu’il existe de grandes possibilités. Les Premières nations vivent en Colombie-Britannique depuis des milliers d’années; je crois qu’elles devraient concevoir qu’elles peuvent participer de manière efficace. Je crois qu’elles craignent que ce ne soit pas le cas. » « Nous avisons les compagnies de développer de bonnes relations avec les Premières nations à qui appartiennent les terrains où elles veulent s’établir », dit le ministre Hawes. « Sinon, elles pourraient se retrouver devant les tribunaux. » Rhylin Bailie de Nova Gold n’est pas inquiète de l’avenir des projets de sa compagnie. « Nous travaillons avec les groupes des Premières nations dès le premier jour. Nous voulons nous comprendre mutuellement; nous travaillons ensemble à développer le projet. » Pour que le développement minier puisse continuer en Colombie-Britannique, il faudra trouver un équilibre entre les droits des Autochtones et la confiance des investisseurs miniers. ICM

Photo courtesy of Thompson Creek Metals Company Inc.

featured project

Engineers conducting environmental planning

The way forward by | Peter Caulfield

Despite the fact that copper is trading today at about US$3.70, the Mt. Milligan project — the first new metal mine in British Columbia in more than a decade — very nearly didn’t happen.

Terrane Metals Corp. was created in 2006 when Goldcorp Inc. sold its copper and gold project, Mt. Milligan, to Rob Pease and his partners. However, Terrane could not secure the financing to begin construction. “In the end, we had to sell the company in order to build the mine,” says Pease, former president and CEO of Terrane. On October 20, 2010, Denver-based molybdenum miner Thompson Creek Metals Company acquired all of the issued and outstanding equity of Terrane. The total value of consideration paid to the shareholders of Terrane was approximately $700 million, of which approximately $420 million was paid in cash, and the remainder was from the issuance of approximately 24.3 million shares of Thompson Creek. 38 | CIM Magazine | Vol. 5, No. 7

Industry analysts say the project, which should commence production sometime in 2013, could kick start the B.C. mining industry as a whole, as well as benefit local First Nations and job seekers in central B.C.

Shovel-ready Mt. Milligan is 155 kilometres northwest of Prince George in central British Columbia — about 150 kilometres northeast of Thompson Creek’s Endako Mine. Mt. Milligan has proven and probable reserves of about 2.1 billion pounds of copper and six million ounces of gold. Average annual production over the 22-year lifespan of the mine is forecast to be 81 million

featured project pounds of copper and 194,000 ounces of gold. The mine could liked the management, so we agreed to be taken over. Now, create up to 400 permanent jobs. Mt. Milligan will be their number one growth asset.â&#x20AC;? Pease says Mt. Milligan is completely engineered, financed Thompson Creek chairman, CEO and director Kevin and has almost all of its permits in place. â&#x20AC;&#x153;The mine will be a Loughrey says there are a number of reasons behind his comconventional truck-and-shovel open pit operation that will panyâ&#x20AC;&#x2122;s decision to get into the copper business. â&#x20AC;&#x153;Until now produce copper concentrate with a high gold content,â&#x20AC;? Pease weâ&#x20AC;&#x2122;ve been a pure moly company, and we like the moly busisays. Mt. Milligan will be developed over the next two and a ness,â&#x20AC;? he explains. â&#x20AC;&#x153;But there are strategic advantages in half years. Commissioning of the mine and mill complex is diversifying. In addition, we had concluded the market wasnâ&#x20AC;&#x2122;t expected in 2013. Development is scheduled to commence late in 2010. Key components of the project include a 54,000 tonne-perday copper flotation process plant, tailings storage facility, plant ancillary facilities and a 92-kilometre power transmission line. Upgrading of a 26-kilometrelong mine access road was 90 per cent complete this fall. â&#x20AC;&#x153;At the plant site weâ&#x20AC;&#x2122;ve cleared the building area, and a 600-man construction camp is being assembled.â&#x20AC;? says Pease. â&#x20AC;&#x153;We expect to be finished that part of the project by the end of 2010, and then we can start pouring concrete and erecting mine buildings in spring 2011.â&#x20AC;? Pease adds that according to the mine development plan, the pit will be dug in fall 2011. â&#x20AC;&#x153;By late summer of 2012, we can start processing ore, with full com+GLC ?LB NPMACQQ P?U K?RCPG?JQ KMPC CDj AGCLRJW mercial production by the end of 2012 or the beginning of 2013,â&#x20AC;? he says. The con2FC +GLGLE 'LBSQRPW centrate will be transported to port facil"CK?LBQ &C?TWUCGEFRQ ities on the coast and shipped to -INING IS A HARD AND HARSH INDUSTRY %NDRESS (AUSER ARE ITS smelters in Japan and Korea. HEAVYWEIGHTS 7ITH A FULL LINE OF MEASUREMENT INSTRUMENTATION SOLUTIONS AND SERVICES DESIGNED TO MEET THE RUGGED REQUIREMENTS OF THE 0RIMARIES )NDUSTRY %NDRESS (AUSER IS YOUR IDEAL CHOICE FOR RAW MATERIAL HANDLING AND PROCESSING IN VARIED APPLICATIONS s 3LURRY FLOW MEASUREMENT s &LOTATION AND CLARIFIER OPTIMIZATION s +ILN TEMPERATURE CONTROL s -ONITORING OF ORE LEVELS IN BINS s #ONTROLLING CONCENTRATIONS IN ACID PLANTS s 3LURRY DENSITY MEASUREMENT s !IRFLOW QUALITY s !UTOMATION SOLUTIONS TO OPTIMIZE LOGISTICS PRODUCTION AND MAINTENANCE PROCESSES

A smooth transition In acquiring Terrane, Thompson Creek has diversified into copper and gold, both of which are trading at high prices now. For its part, Terrane, a Vancouver-based junior, has found a way to finance construction of the relatively large open pit project. â&#x20AC;&#x153;Terrane couldnâ&#x20AC;&#x2122;t finance Mt. Milligan itself,â&#x20AC;? explains Pease. â&#x20AC;&#x153;For one thing, market conditions werenâ&#x20AC;&#x2122;t favourable. For another, our corporate structure was such that an equity issue would have seriously diluted the stock and therefore would have been very risky for our shareholders. We liked Thompson Creek and

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November 2010 | 39

featured project

Photo courtesy of Thompson Creek Metals Company Inc.

that amount, $226.5 million was paid at the closing of the Terrane acquisition in October and the remaining $85 million will be paid during mine construction. In addition, Royal Gold will pay $400 per ounce for the first 550,000 ounces and $450 per ounce thereafter. The reason for the agreement with Royal Gold is to reduce Thompson Creek’s up-front expenses, says Loughrey. “Gold stream agreements are becoming more common as a way to finance mine construction.”

An engaged community

Employees logging core samples

going to reward a pure moly company with a premium on its share price.” Thompson Creek went looking for acquisitions, but found there were no big moly opportunities available that fit their criteria. “So we started looking elsewhere for opportunities,” Loughrey says. “We asked our shareholders what they thought of diversification and most were either positive or neutral.” Loughrey says he doesn’t expect the company will have a steep learning curve for the Mt. Milligan project. “Except for smelting, the mining methods used for moly and copper-gold are similar,” he says. “Furthermore, many of our staff are experienced in mining and processing copper and gold.” Thompson Creek has no plans at the moment to make major adjustments to Terrane’s mine development plan, according to Loughrey. “Once we get going, however, we will probably make a few changes,” he says. “Thompson Creek has access to more financing than Terrane. We might decide to spend more in order to get more.”

Dipping into the gold stream A portion of Thompson Creek’s financing for the development of the project is coming from a gold purchase agreement with Royal Gold, whereby the latter will purchase 25 per cent of the gold produced over the life of the mine at Mt. Milligan. Under the terms of the transaction, Thompson Creek will receive staged cash deposits totalling $311.5 million. Of 40 | CIM Magazine | Vol. 5, No. 7

Mt. Milligan will be the first new metal mine to open in B.C. since the Kemess copper and gold mine opened in 1998. Lena Brommeland, chair of the Association for Mineral Exploration British Columbia, says the development will benefit the province’s mining industry, the region and the province as a whole. “B.C. is well-endowed geologically and it is well-known as a mining centre of excellence around the world, but the real indicator of success is a new mine opening,” she says. “It will attract investors and focus the attention of explorers.” The local benefits are also very real. “The forestry industry in central and northern B.C. has been hit hard by the mountain pine beetle kill and a new mine in the region will bring new jobs and new economic activity,” Brommeland, a native of the area, says. “The people living in communities like McKenzie and Fort St. James are very excited.” Terrane’s Pease says his company has had a good working relationship with the McLeod Lake Indian Band, with many band members working on the construction site. In addition, the band recently signed an Economic and Community Development Agreement with the B.C. government whereby the band will share the mineral tax revenue generated by the mine, which lies within its traditional territory. Pease says he hopes the Nak’azdli Band of Fort St. James, the other First Nation to be affected by the mine, will sign a similar resourcesharing agreement. Pease adds Terrane has been largely successful in its negotiations with local First Nations because the company has dealt with their concerns in an open and transparent manner.

featured project For example, in response to requests from First Nations, Terrane made changes to the project design, including relocation of the water supply pond, re-alignment of part of the tailings dam and location of the concentrate rail load-out so that it avoided traffic through Fort St. James. In addition, Terrane and the Vancouver Island University and College of New Caledonia delivered a three-week environmental training program, resulting in many First Nations graduates working with Terrane’s consultants on the Mt. Milligan environmental baseline program. First Nations were also employed on project operations, including field work, exploration and road maintenance.

sneeze at these days.” He says the project will be a shot in the arm for the mining industry in British Columbia. “Production at Mt. Milligan will start and maintain a muchneeded momentum of new mine starts in B.C., including New Afton and Copper Mountain over the next few years, with many more on the books,” adds Schroeter. “And Terrane’s diligence in dealing with the First Nations issue is to be applauded.” Mt. Milligan might benefit Fjordland, too. “Our exploration focus is on the discovery of gold, copper and molybdenum deposits in British Columbia,” Schroeter explains. “We have two projects very close to or bordering the Mt. Milligan property.” CIM

Environmental impact Terrane has minimized the mine development footprint by clustering mine development into approximately 1,825 hectares spread over less than five kilometres, explains Pease. It also avoids environmentally sensitive areas, with no lakes being used for tailings impoundment. The tailings pond and plant site are located immediately adjacent to the open pit. Waste rock dumps were eliminated by incorporating waste rock into the construction tailings pond, and existing logging roads and right-of-ways were employed for access wherever possible, in order to minimize clearing. Pease says Mt. Milligan will have a strip ratio of one tonne of ore for 0.8 tonnes of waste, which is low for an open pit mine. When the mine is decommissioned, it will become a man-made lake. The tailings pond will be fully reclaimed and returned to a naturally vegetated state. “No smelter contracts have been signed yet, but we don’t expect any problems in that regard,” Pease says. “The concentrate that will be produced will be clean and low-risk.”

Much-needed momentum Hopes are high in B.C. that Mt. Milligan will spur the province’s sluggish mining industry to greater expansion. Tom Schroeter, president and CEO of Vancouver-based junior Fjordland Exploration Inc., says the $915 million capital cost to put the mine into production will be an economic and social boon to central B.C. “And it will undoubtedly have trickledown effects in the area,” says Schroeter. “Four hundred full-time jobs are nothing to November 2010 | 41

projet en vedette

Le chemin de l’avenir Le projet cuivre-or de Mt. Milligan

Photo courtoisie de Thompson Creek Metals Company Inc.

Une partie du financeLorsqu’en 2006 Rob Pease ment de Thompson Creek et ses partenaires (Terrane provient d’une entente Metals Corp.) ont acheté le d’achat d’or avec Royal projet cuivre-or Mt. Gold, ce dernier achetant 25 Milligan de Goldcorp Inc., pour cent de l’or produit au ils ne trouvaient pas de cours de la durée de vie de la financement pour commine. Selon l’entente, mencer à construire. Thompson Creek recevra « Nous avons dû vendre la des paiements comptants compagnie pour construire étalés totalisant 311,5 M$; la mine », dit M. Pease, de plus, Royal Gold paiera ancien président-directeur 400 $/once pour les général de Terrane. Le 20 550 000 premières onces octobre 2010, la minière d’or et 450 $/once par la spécialiste du molybdène, suite. Thompson Creek, a acquis Photo aérienne du projet cuivre-or Mt. Milligan situé à 155 km au nordTerrane s’entend bien Terrane. La valeur de la ouest de Prince George dans le centre de la Colombie-Britannique. avec la bande indienne de contrepartie payée aux actionnaires a été de 700 M$, soit environ 420 M$ comptant McLeod Lake, dont plusieurs membres travaillent à la construction. La bande a signé une Entente de développement et 24.3 millions d’actions de Thompson Creek. Le projet Mt. Milligan est situé à environ 150 km au nord- économique et communautaire avec le Gouvernement de la est de la mine Endako; il contient des réserves prouvées et Colombie-Britannique stipulant qu’elle obtiendra une partie probables d’environ 2,1 milliards de livres de cuivre et 6 mil- des revenus fiscaux générés par la mine. M. Pease souhaite lions d’onces d’or. Au cours des 22 années de vie prévues, la que la bande Nak’azdli de Fort St. James signe une entente mine devrait produire annuellement 81 millions de livres de similaire. Selon lui, les négociations ont été fructueuses en raicuivre et 194 000 onces d’or; 400 emplois permanents seront son de la transparence des négociations et de l’acceptation crées. « L’exploitation sera conventionnelle : une fosse à ciel par la compagnie de changer l’emplacement de certaines ouvert avec camions et pelles. La mine produira un concentré composantes du projet. Terrane, la University of Vancouver Island et le College of de cuivre avec une forte teneur en or qui sera acheminé par camion à Fort St. James, d’où il sera transporté par rail à New Caledonia ont élaboré un programme de formation perVancouver Nord et par bateau à des fonderies au Japon et en mettant à de nombreux membres des Premières nations de Corée », dit M. Pease. La mine et l’usine devraient être mises travailler à diverses phases du projet : études environnementales, exploration et entretien des routes. en service en 2012-2013. Terrane minimise son empreinte en regroupant le En juin 2010, Terrane a accordé le contrat d’ingénierie-approvisionnement-construction à AMEC Americas Limited et à Fluor développement et en évitant les endroits sensibles, tels que Canada Ltd. pour construire, entre autres, une usine de traite- les lacs, pour la disposition des résidus. Les haldes de stériles ment du cuivre par flottation, une installation d’entreposage des ont été éliminées en incorporant la roche stérile dans la construction du basin de résidus et les chemins forestiers exisrésidus et une ligne de transport d’énergie de 92 km. « Terrane ne pouvait pas financer Mt. Milligan sans aide », tants ont été utilisés lorsque possible. Mt. Milligan sera la première nouvelle mine en Colombieexplique M. Pease. « Les conditions de marché étaient défavorables et une émission d’actions aurait été très risquée pour nos Britannique depuis l’ouverture de la mine Kemess en 1998. actionnaires. » Nous étions d’accord pour une prise de contrôle Selon Lena Brommeland, présidente de l’Association for Mineral par Thompson Creek. Selon le président-directeur général de Exploration British Columbia, et Tom Schroeter, présidentThompson Creek, Kevin Loughrey, la courbe d’apprentissage ne directeur général de la compagnie junior Fjordland Exploration, sera pas trop difficile. « Sauf pour la fusion, les méthodes d’ex- ce développement profitera à l’industrie, à la région et à la province, attirant des investisseurs et des entrepreneurs. ICM ploitation du cuivre-or et du molybdène sont semblables. » 42 | CIM Magazine | Vol. 5, No. 7

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supply side |

COLUMNS

The economic impact of mining supply Jon Baird For years, CAMESE has lamented the fact that there is no quantitative measure of the revenues, job creation or GDP contribution of the supply side of the mining industry. While the extractive and processing elements are relatively easily captured by economists, the supply of the input goods and services that mining companies need is much more difficult to quantify. This is due to the fact that mining supply covers a wide range of subsectors as diverse as geophysical surveys, drilling services, software, consulting engineering, mining machinery and shaft sinking. The companies providing these goods and services are usually not classified as being within the mining industry, so statisticians include their contributions in other parts of the economy. After encouragement from CAMESE, Natural Resources Canada undertook a study of the mining supply sector and published its findings in 2000 in the report, “Canadian suppliers of mining goods and services: links between Canadian mining companies and selected sectors of the Canadian economy.” Although it offers a considerable amount of useful material, it falls short of quantifying the economic contribution of the mining supply sector. In recent publications, the Mining Association of Canada (MAC) states that “there are over 3,200 Canadian goods and services firms that provide technical, legal, financial, accounting, environmental and other expertise to the mining industry.” While this is a large number of companies, there is no measure of the value of those inputs. Even if the annual revenues of these firms were known, the sum would be misleading because the revenues of most of them must come from many sectors, not only mining. In its “Facts & Figures” publication, MAC states that “The mining industry’s impact extends beyond its

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

significant direct GDP contribution. and carry downstream into metal proFor example, the industry contributes duction and fabrication. A new survey, prepared for the over half of Canada’s rail-freight revOntario North Economic Developenues and Canadian port tonnage.” It adds: “The Canadian investment ment Corporation by Doyletech Corservices sector is also a prominent sup- poration, demonstrates the imporplier to the mining industry. During tance of mining supply in Northern the past five years, fully 32 per cent of Ontario. This study was based on global mining capital and 82 per cent interviews with 150 mining supply of global financing transactions were companies and then extrapolated to handled through the Toronto Stock the approximately 500 firms and Exchange. It is estimated that several organizations in Northern Ontario, all thousand Canadian brokers, analysts, of which derive more than 50 per cent exchange workers, consultants, trade of their revenues from supplying the finance experts and securities lawyers mining industry. The result shows total annual revdraw benefit from the strength of the enues of the mining supply sector in mining industry.” The Ontario Mining Association Northern Ontario of $5.6 billion, with (OMA) approached the contribution employment of 23,000 people. The of suppliers in another way in a 2007 direct employment for the extraction publication entitled “The economic and concentrating part of the mining impacts of a ‘representative mine’ in industry is estimated at about 10,000 Ontario.” This report, based on a (OMA reports 16,000 in the whole “model” mine, shows how 480 jobs in province), so the ratio of supplier jobs the production phase of a mine (direct to mining company jobs is once again employment) create 1,103 jobs in the about 2.3. Thus, there is a good deal of qualupstream supply chain (indirect itative and semi-quantitative eviemployment) and another 697 posidence that the employment of the tions (induced employment) in the economic activity that is generated mining supply sector in Canada when the employees of the mine and exceeds that of the mining industry their suppliers spend what remains of itself. Given the difficulty of using their wages after taxes and savings. standard statistical methods to capThe ratio of indirect to direct employ- ture the value of mining supply, it will take more study, perhaps using ment in this study is 2.3. The Quebec Mining Association and the Northern Ontario methodology, Quebec Mineral Exploration Associa- for the full economic impact of the tion have approached the problem in mining “cluster” across Canada to be their recently published results of a fully recognized. CIM study on “Quebec’s mineral industry cluster: Author socio-economic contribution to the development of Jon Baird, managing Quebec and its regions,” director of CAMESE and which claims 36,000 minthe immediate past ing jobs in the province president of PDAC, is against 16,000 in the supinterested in collective plier network. It is likely approaches to enhancing that the mining jobs the Canadian brand in include more than extracthe world of mining. tion and concentrating, November 2010 | 45

COLUMNS | MAC economic commentary It’s time for Canada to get serious about metals recycling As a consequence of its fundamental role (such as turning rock into 99.99 per cent pure metal), the Canadian and global mining industry faces a range of environmental challenges relating to water use, tailings management, air emissions and energy efficiency, among others. And, as a consequence of its global presence and importance in developing countries, the sector faces a range of social issues — Aboriginal relations, community engagement, social and health investments, etc. On these two inter-related themes, there is no shortage of demands placed upon the mining industry. In assuming its responsibilities, the industry invests heavily in schools, roads, hospitals, clinics and nutrition programs, among other initiatives, and adheres to numerous standards and protocols in addition to host government laws and regulations. One MAC member company has reported fully 15 codes and protocols that guide its global practice in the area of corporate social responsibility. These actions and investments are for the betterment of Canadian and global society, just as the products themselves, as built from minerals and metals, contribute to an improved quality of life. However, one socio-environmental area that does not receive sufficient attention in Canada, and where Canada arguably lags behind Europe, China and other regions, relates to the recycling of metals. While the Canadian mining industry is well prepared to re-process recycled metals, there is a need for other segments of Canadian society to step forward in this area — particularly consumer groups, NGOs and governments — and to push for greater responsibility on the part of all Canadians. Environment Canada estimates that electronic-waste volumes are 46 | CIM Magazine | Vol. 5, No. 7

Photo courtesy of Teck Resources Limited

Paul Stothart

A Teck employee holds shredded end-of-life electronics, also known as e-waste, that has been diverted from landfills.

increasing by around four per cent annually in our country. Electronics manufacturers have helped create a culture in western society of “disposable” technology — one that is embraced by Canadians seeking the latest electronic toy. Canada’s telephone and cable giants, focused on selling the latest gizmo and locking in multi-year service contracts around these products, generally view two years as a reasonable technology lifespan for their cell phones. Laptops, personal computers, iPods and flat-screen televisions also tend to fall out of favour after two to three years, and basement cupboards and garages across the nation are consequently filled with this “old” waste technology. Beyond the volumes of garbage associated with this wasteful culture, the e-waste issue also raises concerns regarding the release of metals and other potential pollutants once protective casings are broken during disposal. Electronic products, whether

cellular phones, laptops or systemized components in automobiles, typically contain a couple dozen different metals ranging from lead and boron to nickel and cadmium. In most Canadian regions, the flow of recycled materials depends upon a responsible consumer having to research what outlets may exist in the region, driving the e-waste to these outlets, and occasionally having to pay a fee on top of the inconvenience. Without a better organized and properly incentivized societal e-waste recycling system in Canada, it is inevitable that greater volumes of these metals will end up in landfills. This outcome not only damages the environment, it represents a loss of wealth associated with otherwise recoverable minerals — particularly at high metal prices. The recycling issue tends to receive greater attention internationally. EU environment ministers, for example, are presently examining a proposal on sustainable materials management,

which envisions a move from waste policies toward life cycle policies involving the extraction, product design, production, consumption and disposal phases. This ongoing exercise to promote responsible use of materials will likely be considered in the context of a 2011 European Commission decision to adopt a roadmap on resource efficiency. An EU e-waste directive has already required that all e-scrap be recycled. Countries such as China also tend to have an ingrained recycle and reuse culture, reflective of its historic need for raw materials, where scrap metal serves as an important input to the country’s manufacturing processes. For its part, the Canadian mining industry is well prepared to support a stronger Canadian societal effort in metals recycling. For example, Teck Resources is using furnace and metallurgical processing capacity in its Trail, British Columbia, facility to process e-scrap and, in so doing, recovers zinc, lead, indium, cadmium and other metals. The waste plastic and wood are used in co-generating energy and steam,

while silica and iron waste is re-used in cement production. Xstrata’s Horne smelter in Rouyn-Noranda, Quebec, also uses precious metalbearing recyclable materials as feedstock in producing 99 per cent anode copper. Xstrata recently completed an investment that doubled the Horne smelter’s e-scrap recycling capacity. (The fact that e-scrap reprocessing, desirable as it is, consumes more perunit energy is a point that should be considered in any future government greenhouse gas mitigation policies aimed at the smelting and refining segment). The future growth of such businesses in Canada will depend on the extent to which manufacturers, retailers and consumers are required by government policy to take responsibility for life-cycle management and stewardship of the products they produce and consume. CIM

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

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November 2010 | 47

COLUMNS | HR outlook Managing the cycle through long-term workforce planning Rapid economic change is a reality that makes strategic long-term workforce planning a challenge. In mining, plans tend to focus on shortterm operational objectives rather than long-term strategic human resources management. In order to deal with the impact that economic cycles have on industry employment and meet future HR needs, an industry-based, longer term workforce strategy would be a significant asset. Following a number of regional HR forums across Canada, industry representatives have clearly expressed a Teck employees participating in the Emerging Leaders Program. need for timely, reliable and relevant labour market information and resources for work- toward completion of a full MBA degree. In 2009, the proforce planning to help mitigate the consequence of rapid and gram was recognized by the Canadian Council on Learning significant changes in the supply of skilled workers under “Sharing the Flame: Recognizing Excellence in LearnBroadly speaking, MiHR recommends a two-pronged ing,” which was designed to honour innovative and effecapproach in planning for the forecasted labour shortage. tive learning programs. First, employers can continue their efforts to make the most Teck’s “Emerging Leader Program” is targeted at individof all available sources of talent. Strategies for this approach uals who have the potential to become senior leaders within include creating a culture of inclusion in the workforce and the organization. Development and mentoring programs increasing the representation of women, new Canadians and focused on long-term investment in employees are recogAboriginal peoples. Second, the industry can increase pro- nized as key components of employee engagement and ductivity through investments in workforce training and retention strategies. “One of our key priorities is keeping our development, combined with emphasis on innovation and employees motivated and engaged,” Utley says. Teck’s performance management program, “Building support for technology advances. Teck Resources Limited is an example of one Canadian Strength with People,” charts an employee’s progress and mining employer that is taking a multifaceted approach to career ambitions. Employees and their supervisors have conworkforce planning. The company’s strategy is to first focus structive conversations around performance, development on understanding its workforce before identifying possible and career planning. These conversations facilitate ongoing gaps and developing possible solutions, explains Jim Utley, coaching and feedback, and help employees set objectives to help them achieve their career goals. “We know what keeps Teck’s vice-president of human resources. Teck has a number of programs that demonstrate the people motivated is knowing clearly what is expected of company’s commitment to the training and development of them and then getting feedback on their progress and being its employees, such as its Graduate Diploma in Business recognized for their accomplishments,” explains Utley. Teck also has several programs in place to minimize Administration which, through a partnership with Simon employee turnover. The company closely monitors its Fraser University, offers MBA-level courses relevant to Teck’s turnover rate, conducts exit interviews and performs regular business needs. Since it was established in 1996, over 200 market reviews to ensure its compensation is competitive. In employees have taken courses within the program and 38 addition, Teck offers technical development and supervisory employees have completed all required courses for the and leadership training programs to its employees. “Our diploma. Twenty-five of these employees are now working 48 | CIM Magazine | Vol. 5, No. 7

Photo courtesy of Teck Resources Ltd.

Lindsay Forcellini

HR outlook | commitment to employee development programs is a way for Teck to show our employees that they are valued and appreciated,” says Utley. In addition to having a comprehensive workforce planning strategy, Utley stresses the importance of understanding your own workforce data, demographics and forecasts, and says reliable labour market information is an important resource for the industry as we work together to address the skills shortage. CIM

Author As marketing and communications coordinator, Lindsay Forcellini is responsible for supporting MiHR’s communications and online media initiatives, and coordinating the production of marketing and communications materials. Formerly a writer for Natural Resources Canada, she holds a bachelor’s degree in journalism from Carleton University.

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Coming soon from MiHR MiHR has developed two new resources, slated to launch this fall: the “Canadian Mining Industry Employment and Hiring Forecasts 2010” report and “Mining HR Forecasts” to proactively address these challenges and help industry by providing timely, mining-specific labour market information employers can utilize in their workforce planning. Developed under the Mining Workforce Information Network (MIWIN), these resources provide the most extensive research and analysis on Canada’s mining labour market and workforce planning to date. The report provides an economic overview of the Canadian mining industry and its labour market, as well as discussion on key labour market trends, including employment, labour productivity, educational attainment, employment relations, workforce demographics and diversity. Mining HR Forecasts is a website that includes an employment forecasting tool that allows users to generate custom reports for specific forecasting needs.

November 2010 | 49

COLUMNS | safety Walking the talk Taseko leaders take concrete steps to enforce safety

Across the industry, people often identify the same important steps to ensuring that a strong safety culture is enacted throughout an operation or company. Most professionals, for example, say safety is a “top-down” issue — that executives must demonstrate their commitment to safety if they expect the entire workforce to place it at the very top of the priority list. But what does “topdown” really mean? How do you ensure leaders are demonstrating a real commitment to safety, rather than simply expressing platitudes? The board of directors’ Environmental Health & Safety Committee visit to the SAG mill at Gibraltar. From left to right: John At Taseko Mines, an McManus, senior vice-president, operations, Taseko Mines; Laila Potvin, manager of milling, Gibraltar Mines; Richard Mundie, director, Taseko Mines; Williams Armstrong, director, Taseko Mines; and Wayne Kirk, director, Taseko Mines. elaborate system of policies, procedures and practices has been developed to ensure that a true safety culture thrives. of verifying safety standards. So about a year ago, the EnviFrom shareholders to on-site employees, the commitment to ronmental Health & Safety Committee, comprised of three safety is demonstrated in a concrete, visible fashion. board members, was created. The committee is responsible for reviewing the mine’s environmental, health and safety Performance-based investing performance, as well as auditing procedures, standards and Shareholders are increasingly basing their investment training. The committee also regularly visits the mine site choices on performance measures that extend beyond the to meet with employees and interview senior staff. “It really bottom line. “The shareholders don’t really make demands, demonstrates the importance of safety to the corporation,” but they are certainly very interested, and concerned, about McManus adds. “Their goal is to ensure that we have the our performance,” says John McManus, senior vice-presi- proper policies and mechanisms in place to meet corporate dent of operations at Taseko Mines. “We report on health, safety requirements.” safety and environment to them, so when they make their Taking it even one step further, each member sitting on investment decisions, they think positively about us.” the committee completed Gibraltar’s employee safety orientation and training. “In a lot of mines, you may never see a The BOD comes to site director set foot on site,” McManus says. “This committee The restart of Taseko’s Gibraltar Mine initiated the hir- really drives the message home to our employees that safety ing of new employees, which required reorienting the safety is a condition of employment here at Taseko.” practices of these new hires to that of Taseko’s culture. “We have to reinforce what we expect,” McManus explains. Safety is the new “hello” “Getting the corporate governance manual — which The corporate management is responsible for ensuring includes sections on health and safety standards — in the the company operates to the standards set by the board. It hands of every new employee is one of the first steps.” is here that a real commitment to safety must be demonWith this onslaught of new employees, the board of strated to convey its priority through to the operations. One directors decided it was time to become proactive in its role way in which this is accomplished is by insisting safety be 50 | CIM Magazine | Vol. 5, No. 7

Photo courtesy of Darrin Andrews, D & J Photography

Heather Ednie

safety | the first topic of all meetings and key discussions. Case in point, Dave Rouleau, the company’s vice-president of mining operations, has a daily discussion with the Gibraltar Mine general manager at 9:00 a.m. “The first item on the agenda of our calls is safety,” Rouleau says. “We talk about incidents, concerns and meetings. Only after he’s debriefed me on the safety performance do we go on to discuss production.” The policy of kicking off all discussions with safety is also practiced on site, during meetings between the mine manager and his superintendent, the department heads, and so on through the line. “People are aware they need to know what’s going on with respect to health and safety as it will be the first thing asked by their supervisor,” McManus adds. Corporate management demonstrates its commitment to safety in other ways: • The Whistle Blower Program provides employees with a safe and anonymous means of reporting concerns back to corporate. • Safety is part of corporate management’s goals and objectives, and part of their annual reviews. • Those sitting at the corporate management level are ultimately held responsible for the mine’s safety performance. For example, at quarterly BOD meetings, McManus must report on Gibraltar’s safety performance in the context of all other mines in British Columbia. “It really gets your attention,” he says. “I know I’m accountable, and the directors are listening.”

Safety is everyone’s business A real safety culture is nurtured by frequent on-site interactions between management and the workforce, which necessitates having quite an array of practices in place. “Our safety policy dictates that no job is so urgent that we don’t have time to do it safely, but we must constantly remind people of that,” McManus says. “We must provide training, develop procedures to enable safety practices, provide the equipment to do jobs safely and create procedures to deal with incidents. Our employees have to know we will

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enforce them — if someone refuses to work safely, they won’t work here.” Some additional ways site management demonstrates their commitment to safety include: • An Occupational Health and Safety Committee comprised of members of the site management team and the workforce, which meets monthly to review incidents and reports. Their aim is to find ways to further improve safety performance. • The requirement of all employees to successfully complete Gibraltar’s safety training programs, SAFESTART™ (advanced safety awareness and safety skills training) and SAFETRACK™ (observation and feedback training) from Electrolab. • A Safety Awards Program, which is based on both personal and on-site performance. • Requiring department heads be held accountable for safety performance. As there is no safety manager at Gibraltar, the Human Resources Department acts as a services group to all of the departments, providing resources, materials and training. Department heads report to the general manager, who reports to Rouleau, the vice-president. “It’s a short chain of command of accountability,” Rouleau says. “This way, we’re all accountable.”

Committed to upward movement After five years of operation, efforts to cultivate the safety culture on site have evolved. “The longer you work with people the better; it takes a while to get used to new approaches,” says McManus. “Our safety performance to date, I’d say, is adequate, but requiring improvement. We’ve had some incidents, but people responded well. It takes a while to build a culture.” Although Gibraltar’s safety performance is comparable to the other B.C. mines, their commitment to improving it and being the best is robust. “The overriding idea is that each of us is responsible for our own actions and will be held accountable,” McManus says. “You can’t ‘pass the blame’ — it’s all of ours. And we’re committed to making it work.” CIM

November 2010 | 51

COLUMNS | innovation Meeting industry’s needs Innovative microanalysis centre offers extensive analytical solutions

Photo courtesy of Saskatchewan Research Council

In February 2010, the Saskatchewan Research Council (SRC) announced the opening of a new laboratory facility — the Advanced Microanalysis Centre — centred on two pieces of equipment designed for micro-scale chemical analysis: a Cameca SX-100 electron microprobe and a New Wave UP-213 laser ablation system coupled to a quadrupole mass spectrometer. The Advanced Microanalysis Centre comprises several sample preparation facilities and additional analytical equipment — two complete thin section laboratories, one of which is dedicated to the preparation of thin sections from radioactive material and is located in an area licensed by the Canadian Nuclear Safety Commission (CNSC) for handling uranium ore, X-ray fluorescence (XRF) and X-ray diffraction (XRD) analysis. A scanning electron microscope (SEM) for highresolution imaging completes the analytical services the centre offers. These new services, in combination with those offered by SRC Geoanalytical Laboratories, offer an extensive set of analytical solutions to service the mining industry’s needs in a single location, helping ensure that all data and samples are kept secure and confidential. The new equipment and range of analyses have been well received by clients. Irvine Annesley, a senior geologist with Saskatoon-based JNR Resources Inc., says the centre allows him to use microanalytical techniques in Saskatchewan that were previously only available elsewhere 52 | CIM Magazine | Vol. 5, No. 7

Photo courtesy of Saskatchewan Research Council

Steven Creighton

Above: SRC’s Steven Creighton operates the Cameca SX-100 electron microprobe designed for micro-scale chemical analysis. Left: SRC’s Radhika Udinoor-Palliath conducts X-ray diffraction analyses for mineral identification.

in Canada, France, Germany, Australia and the United States. “It will save time and allow us to be more efficient in making leading-edge decisions for our uranium exploration programs,” shares Annesley.

Exploration, mining and processing using the Advanced Microanalysis Centre The Advanced Microanalysis Centre’s analytical capabilities are beneficial in exploring for a wide variety of commodities. A few industryspecific examples include: Diamonds: Electron microprobe analysis of kimberlite indicator minerals for major and minor element concentration to identify G10 garnets indicative of high diamond potential; trace-element analysis by laser ablation mass spectrometry for Niin-garnet thermometry. Uranium: The Advanced Microanalysis Centre can prepare thin sections of mineralized and other radioactive materials for petrographic descriptions and other analyses; the electron microprobe can be used for U-Th-Pb analysis of uraniferous minerals from which chemical ages can be calculated. XRF analysis offers whole-rock

innovation chemical composition including SiO2 and a separate, independent assay for total U (as U3O8). XRD analysis is commonly used to identify clays in alteration halos around uranium mineralization. Potash: XRD analysis is useful for identifying the minerals present both in the ore and in insoluble material. Furthermore, the clay minerals in the insoluble fraction can be measured semi-quantitatively by XRD. XRF analysis is used for whole rock chemical analysis and includes halogen (F and Cl) analysis. Oil sands/shales and coal: The primary thin section lab is capable of producing thin sections of semi-consolidated material and ultra-thin sections (<10 metres thick) of coal. XRF can be used to analyze oil sands/shale without the need for special sample preparation (e.g. extraction of hydrocarbons) including the analysis of potentially toxic trace metals (As, Se, etc.) or secondary products in tailings (e.g. Ti, Fe). Gold: SEM is commonly used for examining the morphology of gold grains as an indication of transport distance. Electron microprobe analysis of trace amounts of gold in sulfide minerals can be useful for tracing dispersed detrital grains to their source. Rare earth elements (REE): Electron microprobe analysis of REE-bearing minerals is useful for identifying not only the concentration of the REE present, but also the matrix type (phosphate, carbonate-fluoride, silicate or oxide). XRF analysis can provide the total rare earth oxides (REO) concentration of a bulk sample.

| COLUMNS

The centre is already working in close collaboration with the CLS synchrotron in Saskatoon and can provide support to synchrotron users. A significant benefit of this collaboration is that researchers will have information about the chemical composition of materials prior to using synchrotron technologies. SRC’s proximity to the CLS synchrotron makes this cross-collaboration a natural outgrowth of the increased knowledge-based infrastructure of the combined facilities at both laboratories, thereby providing valuable support to the mining industry. SRC is also using the centre to work with the University of Saskatchewan’s Department of Geological Sciences on joint projects. As well, Dr. Annesley of JNR Resources Inc. is collaborating with the centre to develop new exploration tools. CIM

Author Steven Creighton’s expertise is in diamond exploration, kimberlite geology and mantle petrology. He is highly qualified using electron and X-ray analysis techniques, and leads a team of experts and manages the Advanced Microanalysis Centre at Saskatchewan Research Council.

Developing new paradigms While the Advanced Microanalysis Centre is able to provide the routine analyses required for mineral exploration, access to equipment normally available only in universities provides the opportunity for collaborative, client-focused, applied research projects. One of the Advanced Microanalysis Centre’s main goals is to work with mineral exploration companies to assist in developing new exploration paradigms that will result in new discoveries and maximize value-added products in existing deposits. The facilities, expertise and technologies offered through the new centre will also provide the capability and infrastructure needed to develop these new paradigms in applied research and support service for resource exploration, mining, processing and development in other areas. Complementary research facilities such as SRC Environmental Analytical Laboratories, as well as other research labs such as the nearby Canadian Light Source (CLS) synchrotron, offer an impressive array of research capabilities in a wide range of disciplines. While the mining industry is one of the Advanced Microanalysis Centre’s key clients, other research areas, such as biomedicine, materials and biotechnology, are using these combined capabilities. November 2010 | 53

COLUMNS | eye on business “There’s royalty sharing in them thar hills!” How will the recent B.C./First Nations agreement affect future negotiations?

In August 2010, British Columbia became the first province to share royalties collected from specific mining projects with First Nations. It remains to be seen whether B.C.’s new approach to royalty sharing will be a one-off or if it will set the pattern for other B.C. mines and Canadian provinces. The government of British Columbia announced two separate agreements with First Nations to share a portion of provincial mining royalties derived from the production of mining projects currently under development. The first agreement, with the Members of the Stk’emlupsemc of the Secwepemc Nation join for a drumming circle during the historic mining revenue-sharing Stk’emlupsemc of the agreement signing on August 24, 2010. Secwepemc Nation, pertains to the New Afton Mine near project. Minister of State for Mining First Nations and, where necessary, Kamloops. The government Randy Hawes did not disclose what accommodate First Nation interests announcement indicates the agree- portion of provincial royalties this where Aboriginal rights and title are ment will allocate approximately $30 sum constituted, so it is not clear if a asserted. The province released its million, just under one-third of the similar sharing formula was used for New Relationship policy in May 2005, total provincial royalties anticipated to the two agreements, although he which was followed in November be collected over the expected 12-year emphasized that each such agreement 2005 by the Transformative Change life of the project. The New Afton is a one-off, without a set template. Accord. Two objectives of the policies Mine, a copper-gold project owned by The Mt. Milligan project has been are to “reconcile Aboriginal rights and New Gold Inc., is located at the site of developed to this stage by Terrane title with those of the Crown and a historic open pit mine and involves Metals Inc., which has been recently establish a new relationship based on new underground operations. Con- acquired by Thompson Creek Mining mutual respect and recognition,” and struction is underway in anticipation Ltd. The project obtained a provincial “to close the gap in economic opporof production commencing in 2012. environmental assessment certificate tunities by considering the implemenThe second agreement, with the in 2009 and anticipates copper/gold tation of revenue-sharing agreeMcLeod Lake Indian Band, is in production to commence in 2012. ments.” This is the first major develrespect of the Mt. Milligan Mine west These agreements are the latest step opment since the ill-fated Recognition of MacKenzie. The government in the development of the B.C. govand Reconciliation Act, which was announcement says it involves a ernment’s Aboriginal relations policy drafted in the spring of 2009 following reported $35 to $38 million in resulting from the Haida decision in consultation with First Nations, but provincial mining royalties, antici- 2004, when the Supreme Court of never made it to the B.C. Legislature. pated to be distributed to the band Canada recognized that the governIt would have recognized both Aborigover the estimated 23-year life of the ment is under a duty to consult with inal and Crown title to provincial land 54 | CIM Magazine | Vol. 5, No. 7

Photo courtesy of B.C. Ministry of Energy, Mines and Petroleum Resources

Josh Lewis and Bruce Harrison

eye on business | and reconciled the competing claims through benefit distribution structures such as royalty sharing agreements. Mining companies with projects in British Columbia have historically borne the burden of consultation and accommodation with First Nations, often entering into Impact Benefit Agreements and Accommodation Agreements. It remains to be seen what effect provincial royalty sharing may have on that practice. However, some speculative observations can be made: • While the B.C. government appears intent on proceeding with a strategy of recognition and reconciliation, the firestorm of public, aboriginal and industry criticism surrounding the failed Recognition and Reconciliation Act has caused them, at least for the moment, to chart a different course — albeit to what will likely be a similar destination. It appears that the government may be pursuing the royalty-sharing aspect of the Recognition and Reconciliation Act on a case-by-case basis, rather than in a broadly sweeping legislative instrument. • It is not clear what effect a new practice of royalty-sharing agreements will have on a project proponent’s financial contribution to accommodation; however, royalty sharing will hopefully contribute to an alignment of interest between the proponent and the First Nations. Some First Nations have discovered that the value of negotiated accommodation regrettably is almost always dependant on the project being developed and is illusory if the project is abandoned, delayed or unable to be permitted. Uncertainty in negotiations can often stem from the parties’ inability to recognize each other’s interests and the potential impacts, both good and bad, of the project. Agreements like these would not eliminate that issue, but may alleviate a major sticking point by aligning the interests of those parties that stand to benefit from a producing mine and allowing negotiators to focus greater attention on the remaining issues.

• Although promising in some respects, these agreements may be the low-hanging fruit on the royalty-sharing agreement tree. Both projects involve relatively amicable relationships and are at an advanced development stage. Locations that involve overlapping or disputed First Nation territorial claims, less conciliation or smaller royalties will not lend themselves to easy, predictable outcomes and agreements. The B.C. government remains firm in its stance that these agreements do

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not constitute recognition of full aboriginal title. However, this initiative is the first of its kind in Canadian history and does constitute a constructive effort to attempt to reconcile the positions of First Nations and the provincial government. Whether it is successful and British Columbia’s lead is followed by other provinces remains to be seen, but First Nations’ pressure across Canada with respect to title is not expected to abate, and creative, progressive solutions must be found. CIM

Authors Josh Lewis (left) and Bruce Harrison are Vancouver members of Fasken Martineau’s Global Mining Group. Having spent substantial portions of their lives living and working in the interior of British Columbia, they have a special interest in the developing relationship between resource companies and First Nations, both in B.C. and across Canada.

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November 2010 | 55

COLUMNS | engineering exchange Dredging up business Innovative equipment takes on challenging environments

Over the course of 44 years of operation, tailings solids had collected in the holding ponds at Xstrata Copper’s Kidd Operations in Timmins, Ontario. By 2008, upwards of 10 feet of material had accumulated and was threatening the operation’s capacity to manage and treat water flows from storms and spring melt. Fortunately for Kidd, Consolidated Giroux Environment, a dredge contractor with the ability to modify its machinery to handle just such a challenge, was able to provide a quick solution. The Kidd Operations, including both the underground mine and large base metals processing facilities, began in 1966. “The tailings have evolved over the years,” says David Yaschyshyn, superintendent, Re-established holding pond in foreground with terraced dredged tailings storage cells on the slope of thickened environment and hygiene, Xstrata tailings deposit Copper Kidd Operations. “We started with conventional slurry discharge and then moved dredge the ponds, which, complicating the situation even to thickened tailings in 1973. In fact, we pioneered along further, also contained old trees, stumps and sunken timwith E.I. Robinsky Associates the first thickened tailings ber that needed to be removed along with the tailings. site in North America.” To deal with such a situation, the company designed Today, the tailings management area spans 1,250 and built the AquaMaster, a self-propelled barge that operhectares, half of which is used for active tailings deposi- ates as support equipment for the larger dredges. It postion. The operation utilizes a low-density sludge treatment sesses a number of practical features, including spuds, stasystem, whereby lime is added to treat the acidic tailings bilizers and a hydraulic boom that can be retrofitted with a water. As the elevated tailings deposit has an average slope sludge press, debris bucket, excavator bucket, cutting of two per cent, water run-off can carry some tailings with talon, tree shearer or jackhammer. “The most important it. “With all the weather extremes in this part of the world feature, for Kidd Operations, was the guillotine shear,” — freeze, thaw, rain storms, drought, spring snowmelt — explains Clarence Giroux, president, Consolidated Giroux. it leads to erosion of the tailings,” Yaschyshyn adds. “This “With it, we can cut a 14-inch diameter tree 20 feet underwill be ongoing until the tailings deposit is closed. Erosion water.” carries tailings solids into our two water treatment plant In addition to the innovative modifications it made holding ponds, which, over time, will fill in if not to machinery, Giroux retrofitted all of its dredges with managed.” double-walled fuel and hydraulic tanks to prevent spills. It also equipped all of its dredges, barges and the AquaRemediating the holding ponds Master with biodegradable hydraulic oil. Aiming to improve the pond capacity at Kidd, Golder As Giroux dredged the holding ponds, they removed the Associates determined that dredging the ponds was the trees and other large debris with the AquaMaster, and most reliable and cost-efficient option, based on previous hauled the material to shore using a transport barge dredging experience on site. The firm then prepared the equipped with a hydraulic moving floor. A modified 915 design reports and construction drawings to be used, and Mud Cat was then used to remove the tailings from the provided periodic monitoring services to review the pro- pond and return them to the tailings cone. This machine, ject’s progress. Consolidated Giroux was contracted to modified by Giroux, is made of stainless steel to prevent 56 | CIM Magazine | Vol. 5, No. 7

Photo taken by Guy Talbot of Talbot Surveys

Heather Ednie

engineering exchange |

COLUMNS

high-density polyethylene (HDPE) pipeline on site — it offers a good abrasion resistance.” Photo by Eugene Rousselle, dredge manager at Consolidated Giroux

A perfect fit

The AquaMaster and transport barge in action at Kidd Operations

corrosion in such an acidic environment. It also features a 350-hp engine (the standard is 238 hp) that drives a screw pump instead of the typical closed-face impeller pump, which enables the machine to handle tree branches and heavy debris lying within the settled tailings. In the future, work in the holding ponds will be done on a more regular basis. “Ongoing maintenance will prevent the ponds from filling in and needing such a large cleaning,” Yaschyshyn adds.

Giroux operates 14 dredges for their various contracts and, over the years, they have been proactive in ensuring the equipment best suits the job and meets stringent environmental standards. “Every dredge that we have bought has been modified in our shop to fit the specific job we are working on, or to meet our safety standards,” Giroux explains. Consolidated Giroux has turned out to be the right size fit for Kidd Operations’ requirements. “They are not too big, not too small,” Yaschyshyn adds. “There are some very large dredging outfits in the Alberta oil sands and elsewhere. In our experience, Giroux is dependable and obviously environmentally conscious. Finally, here at Xstrata Copper, we’re very safety conscious and Giroux has been maturing with our safety requirements. They’ve adopted our standards and procedures.” Consolidated Giroux is happy to follow the safety guidelines set forth by Xstrata Copper. “We’ve trained our guys accordingly,” says Giroux. “And we are proud of our good safety record there.” CIM

Routine dredging of settling ponds Due to the cold weather in the winter, dredging is limited to the ice-free period from May to November. Part of the water treatment process requires the addition of lime to the acidic water (to create a hydroxide) in the on-site settling ponds, leaving a hydroxide sludge and some unspent lime behind. Giroux dredges these settling ponds to remove the hydroxide and unspent lime, and returns it to the tailings area for storage. Dredging is routinely carried out once a year, unless a situation calls for a higher frequency. “For example, Giroux may dredge the entire pond one year, then just do half of it the following,” says Yaschyshyn. “The frequency is based on our needs.” The water in the settling ponds tends to have a high pH level, due to the addition of lime. This basic environment is also corrosive, attacking materials such as aluminum and brass. As such, Giroux ensures that the equipment it uses in those ponds is not made of, or equipped with, any of those materials. As well, the basic environment can leave a brownish coating of scale — up to one-eighth inch — on all the equipment, which must be water or sandblasted off. Another challenge for Giroux is having to move materials over a long distance. “For a normal dredging job, we typically move materials about 4,000 feet,” Giroux explains. “At Kidd, it’s in the vicinity of 7,000 to 8,000 feet, requiring a lot of extra pipeline and booster stations to push the materials through. We have about 30,000 feet of

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November 2010 | 57

COLUMNS | standards New guidelines for international reporting of Russian mineral resources and reserves Stephen Henley With the privatization of many Russian mining companies in the early 1990s, the question of international financing of Russian mining operations first arose. All mining operations had sets of resource/ reserve estimates that could be used in the valuation process, but unfortunately these followed a classification standard that could not easily be reconciled with others, such as the CIM Standards & Guidelines for Resources & Reserves and the JORC Code, both conventionally used on international markets. Many different mappings were proposed between the Russian and international classifications, but these differed according to the deposit type and depending on their authors’ views on the reliability of Russian exploration and reserve estimation methods. As a result of the uncertainty, most projects were deemed to require a new independent deposit modelling exercise by a “bankable name” international consulting firm. This led rapidly to new problems. The estimates produced by such studies would often be irreconcilably different from the Russian numbers. This sometimes led to real problems, both in the markets and governmental, when reported resources and reserves were very different from those approved by GKZ (the State Commission on Mineral Reserves). However, a review of the definitions and use of both the CRIRSCO-aligned and Russian classification systems for mineral resources and reserves showed that the differences were much less than had been imagined. Even the definition of the Russian “Competent Expert” was surprisingly similar to that of the (Canadian) Qualified Person or (international) Competent

58 | CIM Magazine | Vol. 5, No. 7

Russian P3

C1 B A

Inferred

Indicated

Measured

CRIRSCO No equivalent

Generalized view of the guideline classification mapping. Please note that in more complex deposits, no resources of categories B and A are reported, and C1 will map to Indicated Resource rather than Measured Resource.

Person (QP/CP), although the more prescriptive Russian system allows less scope for professional judgement.

Development of the guidelines document In 2006, a working group was established jointly by CRIRSCO and GKZ to investigate the possibility of setting up conversion procedures between the Russian and international reporting systems. The idea was to avoid the subjective questions of relative reliability and confidence, and to work purely from the published definitions. By 2008, it was agreed in principle that a set of conversion guidelines could be developed. In early 2010, a consultation draft of the guidelines document was published. By July 2010, the consultation was completed and the document formally published on August 25 of this year. This document provides general guidance for conversion from Russian classified mineral resources to international CRIRSCO-aligned classifications. Under all circumstances, the actual conversions and final decisions rest with the professional judgement of the QP/CP. The conversion is in one direction only, from Russian to international. The opposite direction is not possible, as the Russian

classification has a larger number of categories. It also is not a requirement because the Russian system is itself integrated with procedures and documentation formats, which are unlikely to correspond directly with those used internationally.

Mapping Russian to CRIRSCO classifications In broad terms, the translation is simple. Russian categories map to mineral resources: • C1, B, A map to Measured Mineral Resources • C2 maps to Indicated Mineral Resources • P1 maps to Inferred Mineral Resources In more complex deposits (Russian “complexity class 4”) there will be relatively little C1 material and this will map to Indicated Mineral Resources. The Russian P2 and P3 categories of “prognostic resources” have no CRIRSCO equivalent, and express more general concepts of mineral potential of a region. The mapping is shown in a generalized form in the figure. Often C2 and C1 resources are quoted, but they are “authors’ estimates” and have not been registered with GKZ. These have therefore not passed through the associated “expert

standards |

SPECIALIZING IN

reviewâ&#x20AC;? independent audit which can, and does, modify reported figures. For this reason, it is not recommended, in general, that these authorsâ&#x20AC;&#x2122; estimates be converted to higher than the Inferred category. The GKZ registration procedure does take into account most of the modifying factors that would need to be considered in transferring material to mineral reserves. However, it does not take into account any adjustment for losses or dilution. For this reason, the QP/CP would need to apply his/her own judgement (as always) in transferring any material to reserves categories. There may be Russian â&#x20AC;&#x153;Exploitation Reservesâ&#x20AC;? defined informally at mining operations that will incorporate loss/dilution factors, which may be usable, or the QP/CP may need to form his/her own opinion on these and all other modifying factors. By definition, Exploitation Reserves will

have been derived from GKZ-registered resource estimates, as they relate to mining operations that otherwise would not have been permitted. In summary, there is now a set of guidelines to assist the QP/CP to report Russian resources and reserves under international standards without needing a separate deposit modelling exercise. The QP/CP must take

COLUMNS

responsibility for assuring himself/ herself of the veracity of the estimates and of all the modifying factors. For further information, download the guidelines from www.crirsco.com or www.perc.co. Detailed information on the Russian reporting system is available at www.gkz-rf.ru, but be forewarned that most of what is available here is in Russian. CIM

Author Stephen Henley is an independent consulting geologist with extensive experience on projects in Russia-CIS. He is currently the independent geological adviser to the board of Petropavlovsk plc and an equity participant in independent Russian PGM explorer OAO Pana. He is deputy chairman of PERC and a PERC representative on CRIRSCO. Steve was a co-founder of Datamine and chairman of the company from 1981 to 1993.

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November 2010 | 59

COLUMNS | canadians abroad Technology transfer is a global game Candente’s Sean Waller learns life lessons working abroad

Sean Waller, president of Candente Copper, has worked all around the globe. His experiences have taken him from Asia to South America, with stops in Australia and Europe along the way. Although his work currently centres in Peru, where his company’s primary project — Cañariaco — is in the feasibility stage, Waller has spent most of his career as an engineering consultant. “People don’t really appreciate the technology transfer by Canadians working overseas, especially by the consulting industry,” Waller says of his fellow Canucks. “Canadian companies do a huge amount of consulting overseas — all of it is technology transfer. Also, Canadian engineering firms are highly sought-after internationally,” he adds.

Globe trotter Originally from Vancouver, where he still resides, Waller’s A recent view of the Candente Copper Canariaco Norte exploration camp and proposed minesite in the Andes of Northern international experience dates Peru — the project that takes up most of Waller’s time these days. back to 1988, when he began working in Indonesia for Kilborn Engineering (now SNC-Lavalin). there. They wanted to learn about speak the local language. “If you want to Eager to discover the world around Canadian practices and teach us their work overseas, especially if you’re him, he was happy to see work assign- ways as well.” spending a lot of time in one country, ments abroad quickly come his way. The dawning of a new century learn the language,” he advises. “It’s “If you’re going to work in consulting, brought about new travel destinations. effective for work and a polite thing to you’d better be willing to travel,” he In 2000, Waller spent time in Australia do.” Although he was set to begin takexplains, having spent much of 1988 for while working with SNC-Lavalin. ing Spanish lessons two years ago, his to 2000 in Indonesia (even living there He followed that up with several engi- plans were delayed until this fall, primafor three years in the early 1990s) neering and business trips to Africa. rily due to his role as a member of the working at Freeport Indonesia’s Grass- Since 2004, he has spent a great deal of CIM Council and taking on chairing the berg copper/gold mine. time travelling in South America for CIM Conference and Exhibition 2010. In Waller’s case, when presented AMEC and, more recently, for Can- Waller also finds that, when working with the opportunity to travel, it never dente. These days, much of his work is abroad, it is very rewarding and enjoyoccurred to him to say “no.” “As a on the business side of the industry able to take the time to get to know the young engineer, it’s so rewarding,” he and includes time in Europe attending people you are working with outside of work. “It is a terrific way to gain new says. “You not only gain technical investor meetings. expertise, you also gain exposure and friends, as well as a real insight into their benefit from learning about other cul- Embracing diversity culture,” he adds. tures. I found wherever I worked, the During his stay in Indonesia, a preWhen working in Indonesia host people were very open to us being throughout the 1990s, Waller learned to dominantly Muslim country, Waller 60 | CIM Magazine | Vol. 5, No. 7

Photos courtesy of Sean Waller

Heather Ednie

realized how important it is to be aware of the local customs. “I learned it’s considered very rude to point at people,” he recalls. “You do it with your thumb instead, or wave — you must make a conscious effort.” Although he does not have children himself, Waller has observed that for families, working overseas can be a great experience, especially for those with young children. “Usually there are very good facilities for them,” he says. “As well, they can acquire another language and benefit from being exposed to a different culture. When I was at Freeport in Indonesia, only men could work, but many wives came with their husbands and kids, simply for the experience.” According to Waller, he has learned more from all of his travelling than he has in any classroom. His experiences have shaped the way he thinks and influenced his outlook on life. “In my early thirties, when I started working overseas for the first time, it taught me we’re all the same, with the same basic values,” he explains. “I’ve never forgotten that, no matter where I am.” CIM

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COLUMNS | first nations Canada’s Aboriginal groups: rights, treaties, land claims and consultation Building relationships early makes good business sense

Much of Canada’s mineral resources are located in areas covered by historic treaties, modern treaties (land claims agreements), self-government agreements, or the existing and asserted Aboriginal rights of one or more Aboriginal groups. When starting a project in a particular area, it is important to get to know which groups you need to engage and what is expected of you to move through the permitting, licensing and approval processes. The Canadian Constitution recognizes three Aboriginal peoples: Indians, Métis and Inuit. Although they are often referred Aboriginal engagement in Nahanni Butte, NWT, on the Canadian Zinc Prairie Creek Mine project to collectively as “Aboriginal peoples,” these are three distinct peoples that are further divided into many different groups and 1921. In parts of Canada where historic treaties were not communities with unique histories, languages and cultures. entered into, or where there was disagreement over the “First Nation,” a term that came into common usage in meaning and implementation of the original treaties, the the 1970s as an alternative for some uses of the word Crown established the Comprehensive Land Claims process “Indian,” is now commonly used; however, it has no legal to negotiate rights of land title, use and occupancy. This definition. The term “First Nations peoples” refers to Status “modern treaty” process began in the 1980s, and the agreeand Non-Status Indians in Canada. Some use First Nation to ments are commonly referred to as “land claims.” replace the word “band” in the name of their community or For example, in the Northwest Territories, Canada agreed reserve. to use the comprehensive claim process to negotiate a modCurrently, there are 615 First Nation communities in ern treaty with the Dene and Métis because of disagreement Canada, which represent more than 50 collective groups, over the meaning and implementation of original Treaties 8 and 50 Indian languages. and 11. More recently, self-government agreements are being “Inuit” are the Aboriginal people of circumpolar Canada. negotiated along with land matters — referred to as land, About 45,000 Inuit live in 53 communities in Nunatsiavut resource and self-government processes. (Labrador), Nunavik (Quebec), Nunavut and the Inuvialuit Sometimes an agreement may include more than one Settlement Region of the Northwest Territories. Each of Aboriginal group, as in the case of the Sahtu Dene and Métis these four Inuit groups has a settled land claim. Comprehensive Land Claim Agreement that includes both “Métis” refers to persons of Aboriginal and non-Aborigi- Sahtu Dene and Métis beneficiaries. Other agreements may nal ancestry who identify themselves as Métis and belong to involve only one group — for example, the Inuvialuit Settleor have ancestral ties to a Métis group distinct from other ment Agreement for the Inuvialuit. Aboriginal peoples. Métis groups have unique histories and It is important for businesses to recognize the distinction cultures based on their First Nation and European roots. between Canada’s Aboriginal peoples, and they must also understand how these distinctions may impact their busiLand, resource and self-government agreements ness. Companies need to get to know the regional or local In much of Canada, there are historic treaties between history and context in their project area. When planning and First Nations peoples and the Government of Canada — the conducting mining exploration and development initiatives, Crown — that date back to the 1700s, and as recently as a company must engage government and Aboriginal 62 | CIM Magazine | Vol. 5, No. 7

Photo courtesy of Canadian Zinc Corporation

Dawn Curtis

first nations | representatives early to learn about the specific rights and processes that apply. Modern land claims agreements are constitutionally protected, having force of law under Section 35 of the Canada Charter of Rights and Freedoms, and include detailed provisions to guide consultation with Aboriginal people on decisions that could affect them. In addition, individual Aboriginal groups and organizations may have their own protocols and exploration and development requirements for industry. And even if a group does not yet have a signed land, resource and self-government agreement, or â&#x20AC;&#x153;modern treaty,â&#x20AC;? they may have negotiated interim measures agreements for the area under negotiation. The existing rights of groups without a modern treaty, or who only have a historic treaty, are also constitutionally protected. In this case, the Crownâ&#x20AC;&#x2122;s duty to consult has been defined in common law through decisions of courts, notably Supreme Court of Canada decisions Haida, Taku and Mikkisew.

What does this mean for an exploration or development company? Any project or activity â&#x20AC;&#x201D; large or small â&#x20AC;&#x201D; requiring a federal approval, license or permit, and/or which could adversely impact established or potential Aboriginal and treaty rights, could trigger the Crownâ&#x20AC;&#x2122;s legal duty to consult. The courts have stated that third parties, such as developers, do not have a Section 35-based legal duty to consult with Aboriginal people. The Crown, while it may delegate procedural aspects of consultation to third parties, has sole legal responsibility for any consequences that flow from its actions and interactions with third parties that may adversely affect Aboriginal and treaty rights. However, normal due diligence and similar business practices that are carried out by a company in the course of its interactions, relations and dealings with Aboriginal groups, such as engagement and consultation, may be taken into account when the Crown is assessing consultation obligations related to permits and licenses. For example, a mining exploration company may meet with an Aboriginal group to explain a proposed drilling exploration project, answer any questions and possibly address their concerns. If the duty to consult arises in this

COLUMNS

particular case (i.e. the Crown decision that would allow the permitting of the proposed project), the Crown might take the companyâ&#x20AC;&#x2122;s consultation efforts and actions into account, as well as consultation that the Crown may have conducted, when assessing its consultation obligations. Experience has shown that forging strong, respectful relationships with Aboriginal groups early in the process is a good business practice. Getting accurate information is an important first step that allows companies to engage early and build relationships. It is also a good business practice to record and document all activities, meetings, discussions, issues, commitments and outcomes related to consultation. All parties benefit from proactive consultation and faceto-face engagement. In short, building relationships and sharing information with potentially affected Aboriginal groups from the very beginning of your project planning makes good business sense. CIM

Author Dawn Curtis is a senior communications officer with Indian and Northern Affairs Canada (INAC) NT Region, and lives in Yellowknife, Northwest Territories. Her work involves supporting INAC NT Regionâ&#x20AC;&#x2122;s Aboriginal and Territorial Relations Directorate.

Moving on up James M. Dawson has been appointed director and vice-president, exploration of Wolverine Minerals Corp. Dawson, a registered professional engineer with over 40 years of fieldwork experience, has been involved in many exploration discoveries, including the Blackdome Mine, Frasergold and Taurus properties in British Columbia, and the Big Horn Mine in Arizona. Dawson was also part of the original Pan Ocean team, which made the discovery of the Lac Cinquante uranium deposit in Nunavut in 1975.

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November 2010 | 63 9:01 AM

COLUMNS | student life Queen’s University launches CIM student chapter Jocelyn Dahme

Helping students connect with industry

Photo courtesy of Adam Walker

Teresa Barrett

The Canadian Mining and Metallurgical Foundation (CMMF) table at the Queen’s CIM Student Chapter launch. From left to right: Vic Pakalnis, Professor in Mining and Sustainability; Glenn Clark, President of CMMF; Kelly Bateman and Stephanie Zimmerling, Queen’s students; and Chris Twigge-Molecey, President of CIM

On September 21, 2010, a group made up of 82 students, faculty and CIM members gathered at the Clark Hall Pub at Queen’s University to celebrate the launch of the new Queen’s CIM Student Chapter. CIM president Chris Twigge-Molecey spoke to the crowd about the vast array of careers, challenges and innovations in the mining industry today. Of particular interest to the students in attendance were his opinions on the industry’s future and the growing opportunities in China and South America, for which he recommends learning Mandarin and Spanish as two emerging languages of importance to global mining. The new CIM Student Chapter at Queen’s University will give student members the opportunity to make new contacts and learn first-hand from industry veterans. Students will also be able to take advantage of networking opportunities at CIM meetings and career forums to help them in their searches for summer jobs or post degree employment. Queen’s University is excited to welcome CIM to its campus. The students are looking forward to nurturing their relationship with the CanaAuthor dian mining, metals and energy industries through such a celeJocelyn Dahme is a brated organization and are second-year mining ready to explore the future of engineering student Canadian mining alongside at Queen’s University. their industry counterparts. CIM

EVENTS TO WATCH FOR WINTER 2011 CIM is launching student chapters at universities across the country. Next stops: Laval University, McGill University/École Polytechnique (February 3rd) and the University of Toronto (Lassonde Institute). Info: tbarrett@cim.org

64 | CIM Magazine | Vol. 5, No. 7

MARCH 17, 2011 CIM Saskatoon Branch Student Paper Night 6 pm @ The Sheraton Cavelier Hotel Info: jim.corman@areva.ca

Tapping into the next generation of highly qualified professionals is vital to ensuring a bright future for the mining industry, and CIM is committed to helping make that happen. We are currently in the process of establishing a CIM student program that will help students connect with industry professionals through the implementation of CIM student chapters on CEGEP and university campuses, developing enhanced student programs at our conferences, and promoting CIM scholarships and bursaries. Already, CIM has: • Launched student chapters at the University of Saskatchewan, Queen’s University and Cégep de l'AbitibiTémiscamingue in Rouyn-Noranda. • Confirmed the launching of student chapters at four additional universities, three of which are taking place in the first quarter of 2011. • Developed a student program for next year’s CIM Conference & Exhibition in Montreal that will connect secondary and post-secondary students with industry veterans at M4S (formerly Mining in Society). • Committed to supporting teams participating in next year’s Canadian Mining Games taking place from February 24 to 27 at the University of Alberta. In an effort to lighten the financial burden that plagues many university students, CIM offers more than 50 scholarships and bursaries awarded through CIM National, its branches and societies, as well as through the Canadian Mining and Metallurgical Foundation. Watch for a complete list of CIM scholarships and bursaries in the next issue of CIM Magazine. For further information about CIM’s student program, contact Teresa Barrett, CIM’s membership liaison agent, at tbarrett@cim.org. CIM

women in mining |

COLUMNS

Where it all began A look at women’s groups in the Canadian mining industry Barbara Caelles Although historically mining has been an industry dominated by men, written and photographic records dating back to the early 1800s exist indicating that women worked in the coal industry in England and Wales; took part in the California, Alaska, Yukon and BC gold rushes; and have prospected throughout North America since the mid1800s. In fact, one of Canada’s most successful prospectors, the legendary Viola MacMillan, even became the first female president of the Prospectors and Developers Association of Canada in 1944 — a position she held for two decades. Despite this background, women entering mining-related careers in the 1960s and early 1970s found themselves the objects of some curiosity, as demonstrated by letters sent in to advice column gurus Ann Landers (Vancouver Sun, circa 197475; see p. 65) and Dear Abby (Toronto Sun, December 1975; see p. 66). The Northern Miner found them rare enough to be newsworthy and thus began assigning stories to Nean Allman, the newspaper’s first female reporter and first geologist on staff. “The editor liked my story so much that he suggested I take the women I interviewed out for lunch,” recalls Allman. “The four of us who met on that occasion had such a great time that we decided to continue the lunches, which gradually grew as more women began working in the industry. It wasn’t called ‘Women in Mining’ in the early days, though. It was just a lunch between some of the women geologists in town, a chance to meet like-minded souls since there weren’t very many women in the industry and most were relatively isolated and

Dear Ann: My husb and is a geologist fo r a major oil compa Recently he had to ny. take a young wom an geologist out to well to train her. Th an oil ey were together co nstantly for three travelled thousand weeks, s of miles alone in the car, ate all their together, even slept meals out on the rig. I’m not worried ab out the physical at traction, because m women geologists ost are so ugly they co uld go lion-hunting switch. I do resent wi th a the proximity betw een the two of them that length of time for and have told him so. He swears ever is strictly business. ything Why should women who choose to stay home and be wives mothers have to pu and t up with such stuf f just so these liber women can prove ated themselves in a m an’s ﬁeld? What about the oil companies? They profess to care abou welfare of their em t the ployees. Why not th eir employees’ wive wonder how other s? I wives feel about th ese situations and they deal with their ho w anxieties. — Geologist’s wife Circa 1974 – 1975

” n who is “not worried nAnswer: For a woma ur husband’s job co yo If . ar de it, ol Co t. se up pt the fact you sound pretty s, you’d better acce er mb me ew cr w ne scribe is sists of training e female. What you de ar s er mb me ew cr e ion that some of thos e be no discriminat insistence that ther n’s t. me ee wo sw of e lt th su th re wi e th the bitter So, we have to take x. se of sis ba e th on lady geologists, I by a few thousand ed er bb clo t ge I e lf from that comP.S. Befor as dissociating myse rd co re e th on go fe’s words in my want to ease don’t put the wi Pl . ks loo eir th t ou ment ab gh gaffes on my own. mouth. I make enou

junior, and they never met others across a table doing business.” By 1973, then-president of the Geological Association of Canada (GAC), Ward Neale, drew attention to the fact that, “Out of a GAC membership of 2,000, there are only three dozen female members.” In an effort to address this issue, GAC created the Status of Women Geoscientists Committee and appointed Nean Allman to head it. The committee’s findings were

published in GAC Information Circular No. 2 in 1976, bringing about an awareness of women working in the geoscience profession.

Early beginnings: a sisterhood was born Not all of the women’s groups were professional organizations, but rather a means for the wives and daughters of those working in the industry to become acquainted. In 1921, the

November 2010 | 65

Women’s Association of the Mining Industry of Canada — Toronto (WAMIC) was founded by Edith Tyrrell, wife of famed geologist Joseph Burr Tyrrell, “to foster friendship among women connected to the mining industry.” The association handed out their first scholarships in 1939 and, in 1964, the WAMIC Foundation was formed to provide scholarships, bursaries and awards to undergraduate students across Canada. In 1975, the Greater Vancouver Mining Women’s Association (GVMWA) was formed as a “fellowship organization for spouses of people connected with the mining industry.” By 1977, it had evolved into a charitable organization whose mandate was to raise public awareness of mining through education. Over the years, members have raised a considerable amount of money to support scholarships, science fair awards and a minerals education program. GVMWA also organized a Student Networking Evening for six years until Lynn Anglin and the Association for Mineral Exploration of BC took it over and made it an integral part of the annual Mineral Exploration Roundup. CIM also played a role in promoting women’s groups early on. At its annual conference in 1977, CIM held its first technical session geared specifically towards women, “Effects of mining community living and isolation,” which attracted a crowd of more than 400 people. Today, CIM holds a Women in Mining Forum and Reception each year as part of its annual conference and has a Women in Mining column in each issue of CIM Magazine.

Dear Abby, My husband works in the coal mines an d I just found out that they recently hi red some women to work right alongside the men! Abby, I don’t want my husband working wi th women. I’ve talked to lots of othe r wives, and they fee l the same way about it. We can see nothing but trouble ahead. What can we do about it? — Cumberland, KY December 1975

, Dear Cumberland men, but it’s working with wo d an sb hu ur yo ll become a You may not dig er” coal mines wi “h d an is” “h at highly unlikely th w reality. en — above or belo rtunities for wom po op l ua eq g di ly I personal ground.

evolved into more structured groups. The handful of geologists that used to meet for lunch grew throughout the 1980s and 1990s and eventually became Women in Mining (WIM) Toronto. WIM Vancouver had its beginnings in 2002 when Diane Gregory and I met at a Mineral Exploration Group

(MEG) lunch and decided it was the right time to try to form a group similar to the one that existed in Toronto. Within a few months, a 20-name email list grew to over 100 names, and today stands at over 400. In addition to WIM Canada (the only national non-profit organization), WIM networking groups have also formed in Manitoba, Northern

WIM groups around the world CANADA

UNITED STATES

wimcanada.org

WIM National

Manitoba

womeninmining.org wim@womeninmining.org

marilync@tdslaw.com cgazdic@sbminc.ca

Women In Mining Education Foundation (WIMEF)

Quebec (WIM Val-d’Or)

wimer23@wmca.net

fem.wim.valdor@gmail.com

California

Saskatchewan

CAchapter@womeninmining.org

pschwann.sma@sasktel.net

Denver

Toronto

Denverchapter@womeninmining.org

women-in-mining.com lorraine.godwin@geosoft.com

Nevada

Vancouver

Student Chapters

Women in Mining groups

amebc.ca/wim-vancouver mining.bc.ca/women_in_mining.htm

Missouri University of Science and Technology (MS&T)

Across the country, informal gatherings

Winnipeg

RollaChapter@womeninmining.org

66 | CIM Magazine | Vol. 5, No. 7

Northern Ontario

sar@tdslaw.com

NevadaChapter@womeninmining.org

Ontario, Quebec (WIM Val-d’Or) and Saskatchewan.

Giving back While networking remains the primary goal of WIM groups, many women also feel a profound sense of wanting to give back to the community, to educate others about their work, and to help out in some tangible way. In 2007, a team made up of WIM Toronto members took part in the Weekend Walk to End Breast Cancer and raised over $200,000 to become the top fundraising team. That same year, WIM Vancouver organized a cross-Canada team in the Run for the Cure and raised over $30,000. Two years later, the team was the 15th highest grossing fundraiser in Canada, and just this past year, WIM Vancouver won the CIBC Corporate Spirit Award for being the top fundraising team (raising nearly $50,000) at the Vancouver Canadian Breast Cancer Foundation CIBC Run for the Cure. Fundraising efforts carried out by WIM groups began generating considerable publicity. At a monthly luncheon in Toronto following the 2007 Weekend Walk to End Breast Cancer and Run for the Cure, the scheduled

Virginia Polytechnic Institute & State University (VA Teach)

VTChapter@womeninmining.org

AUSTRALIA somizzolo@ausimm.com.au ausimm.com.au/Content/default. aspx?ID=236

WIMARQ (Women in Mining and Resources Queensland) Brisbane akeogh@snowdengroup.com anitraross@bigpond.com womeninminingqueensland.com

teleconference attracted calls from Brazil, the United States and England. We suddenly became aware of the existence of other WIM groups around the world, as well as individuals inspired to set up groups where there were none. In terms of education, WIM Vancouver has worked in tandem with Sheila Stenzel, director of the Mineral Resources Education Program of British Columbia, Mining Association of BC, to promote geosciences by offering high school students the opportunity to complete a short work term with a mining company. The group has also taken a leadership role in mentoring. Most recently, at the University of British Columbia’s Women in Science (WISE) 2010 Career Evening, WIM Vancouver members spent one-on-one time with

From a single association in the 1920s to an ever expanding network, these groups continue to provide guidance and leadership to young women, and contribute substantially to their communities and charitable causes. To learn more about how you can become a member, please consult the sidebar for a complete list of groups around the globe.

Acknowledgment I would like to acknowledge and extend thanks to Nean Allman for her suggestions in putting this article together, and for her encouragement and support over the years. CIM

Author Barbara Caelles is a professional geoscientist with 40 years of experience in the mining industry. She was an exploration field geologist before turning to consulting to balance her profession with motherhood. She is a founding member of the Vancouver Women in Mining.

SWEDEN

wimwa.wordpress.com www.womeninmining.com wimwa@womeninmining.com sabina@momentumpartners.com. au

malin.stein@rmg.se

shdiwani@yahoo.com tawomat@yahoo.com

PERU

UNITED KINGDOM

melissaparedes@gmail.com mparedes@apoyoconsultoria.com

barbara@greenmining.co.uk

RUSSIA Oksana.ermolenko@kinross.com kryuchkova@nblgold.com

SOUTH AFRICA

Genevieve.Riviere@swannglobal. com

vnyengule@bullion.org.za sawima@mweb.co.za www.sawima.co.za

geos@easy.com.au

Here to stay

Perth Blog

WIMARV Melbourne

WIM Sydney

students, offering advice on how to prepare for a career in science and engineering.

TANZANIA

INTERNATIONAL womeninmining.net rimmrights.org

OTHER WOMEN’S ORGANIZATIONS Greater Vancouver Mining Women’s Association www.gvmwa.com

November 2010 | 67

The four funerals of Sophia Cameron Death and riches in the Cariboo Gold Rush T Correy Baldwin

When it all began John and Sophia had met in their youth, both raised on farms near Cornwall, Ontario. After setting their 68 | CIM Magazine | Vol. 5, No. 7

Image A-00350 courtesy of Royal BC Museum, BC Archives

brutal winter had just set in when Sophia Cameron was buried, with as much dignity and ceremony as was possible, in a tin casket beneath an abandoned cabin deep in the wilderness of British Columbia. It was 1862 and the Cariboo Gold Rush was in full force. Sophia was the only white woman in the area at the time, and all 97 of the neighbouring miners came to pay their respects. Little did they know how often this ceremony would be repeated before Sophia could finally rest in peace. Only her husband, John Cameron, had a notion of the difficulties that lay ahead, burdened as he was with a promise to return her body to their home in Ontario, or what was then known as Canada West. Cameron was aware of both the difficult journey back and the untold riches that lay ahead. For the time being, Cameron pressed ahead, working the claim they had staked just two months earlier. His patience paid off, and in late December, two months after his wifeâ&#x20AC;&#x2122;s death, Cameron found gold. Despite the harsh winter, he moved quickly, hiring 75 men and working them around the clock on three shifts. After a month of hard labour, Cameron offered $12 a day and a $2,000 bonus to any man who would help him carry Sophiaâ&#x20AC;&#x2122;s coffin out of the Cariboo.

Freight wagons along the Cariboo Wagon Road (circa 1867)

sights on marriage, Cameron went to California to work the gold mines, then to the Fraser Canyon Gold Rush in British Columbia in 1858. The rush only lasted a couple of years and Cameron soon returned to Cornwall to marry Sophia. After the Fraser River gold dried up, prospectors began exploring further north into the Cariboo region, whose watersheds drained into the Fraser. They found gold in 1861, the same year that Sophia gave birth to their daughter, Alice. When they heard that gold had been discovered, the new family packed up to join the Cariboo gold rush.

They arrived in Victoria in February 1862, after a long journey around South America by ship. But the trip had been too arduous for the 14month-old Alice, who died just days after their arrival. Weary, broke and in mourning, John and Sophia relied on a friend for the necessary provisions to continue on to the Cariboo Trail. The trail was an unreliable path that wound its way north over mountain passes, through deep canyons and past roadhouses named 100 Mile House and 150 Mile House. When they finally arrived at the gold rush town of Richfield late that August, they staked a claim on nearby

Williams Creek. Sophia had a share — rare for a woman at the time — as did the five men they were travelling with. Winter in the bush was difficult, with bitter temperatures and inadequate shelter. It was here that Sophia succumbed to typhoid fever in late October, whispering to her husband her dying wish to be buried in Ontario.

Bringing Sofia home Throughout all of February, Cameron and several other men carefully inched Sophia’s coffin south over the frigid mountain trail, through deep snowdrifts and thick forest, abandoning the coffin at least once in a blizzard to take shelter for the night, then continuing on in the morning. Death was all around them. The smallpox epidemic had just swept through the Pacific Northwest, arriving in Victoria from San Francisco in March 1862, most likely from a miner travelling to the Cariboo. It tore through communities and utterly devastated the Native population, even reaching the distant mining towns and roadhouses along the Cariboo Trail. To those who lived along the trail, the sight of Sophia’s toboggan-bound coffin would have been both frightening and frighteningly familiar. For Cameron, the memory of death was following him and meeting him at every stop. Cameron made it to Victoria that March. Knowing the bounty of gold that awaited him back in the Cariboo, he had Sophia’s coffin filled with alcohol to preserve her body and arranged for a second burial in Victoria, and then returned to his claim for one more season. And a good season it was. Cameron bought out neighbouring claims, hired more men and oversaw what had become one of the largest operations in the Cariboo. His work camp soon grew into a town, named Camerontown. In October, he returned to Victoria with his fortune, disinterred Sophia’s coffin and boarded a ship back to Cornwall. He arrived that winter and fulfilled his promise, burying his wife just after Christmas 1863. Cameron remarried two years later and built an impressive mansion in nearby Summerstown. But as the years went on, Sophia’s family grew suspicious of his wealth and Sophia’s death. Cameron had refused to let Sophia’s father see his daughter’s face before she was buried. He was also secretive about the extent of his wealth, and extravagant and rash in the ways that he spent it — including a host of investments and business ventures, many of which fell flat. Rumours began to spread. Some suspected that Cameron had left Sophia buried in the Cariboo or in Victoria, while others suggested he had sold her into slavery. Whatever the story, the family became convinced that Sophia’s coffin was filled not with her remains, but with gold. Cameron finally relented to their mounting accusations and in 1873, he once again raised Sophia’s coffin. It was opened, revealing her remarkably preserved body, still submerged in alcohol. All rumours were finally laid to rest, as was Sophia. Cameron moved her coffin to Summerstown and buried her — for the fourth and final time — near the mansion that he had built from their Cariboo gold. CIM

calendar CIM EVENTS

AROUND THE WORLD

Toronto Branch Luncheon meeting December 9 | Toronto, ON Contact: Rick Hutson Email: rick@cjstafford.com

MPES 2010 – Mine Planning and Equipment Selection December 1-3 Esplanade Hotel Freemantle, Freemantle, Western Australia www.ausimm.com.au/mpes2010

Edmonton Branch Technical Meeting December 13 | Edmonton, AB Contact: Fenna Poelzer Email: fpoelzer@nacg.ca

American Hall of Fame Banquet and Fundraiser December 4 Tucson Marriott University Park Hotel, Tuscon, AZ, USA www.miningfoundationsw.org

Section de Québec Conférence de James Franklin, Éminent conférencier de l’ICM 13 décembre | Québec, QC Responsable : Pierre Verpaelst Courriel : pierre.verpaelst@mrnf.gouv.qc.ca Saskatoon GeoSection Technical Meeting December 13 | Saskatoon, SK Contact: Gary Yeo Email: gyeo@denisonmines.com Los Andes Branch Presentation on Bioleach and Radomiro Tomic December 20 | Santiago, Chile Contact: John Selters Email: jselters@vtr.net 43rd Annual Canadian Mineral Processors Operators’ Conference/43e Conférence annuelle des minéralurgistes du Canada January 18-21 | Ottawa, ON www.cmpsoc.ca/annual-conference.cfm Saskatoon Branch Environmental Night January 20 | Saskatoon, SK Contact: Paul Labbé Email: paul.labbe@worleyparsons.com Section Québec Présentation – conférencier à confirmer 24 janvier | Québec, QC Responsable : Pierre Verpaelst Courriel : Pierre.Verpaelst@mrnf.gouv.qc.ca Saskatoon Branch Uranium Night February 17 | Saskatoon, SK Contact: Paul Labbé Email: paul.labbe@worleyparsons.com

70 | CIM Magazine | Vol. 5, No. 7

ACG In-Pit Waste Storage and Management Seminar December 8-10 Novotel Langley Hotel, Perth, Australia www.acg.uwa.edu.au Mineral Exploration Roundup 2011 January 24-27 Westin Bayshore, Vancouver, British Columbia www.amebc.ca Water in the Southern African Minerals Industry 2011 February 15-17 Ingwenyama Conference & Sport Resort, Mphumalanga, South Africa www.saimm.co.za/saimm-events 2011 SME Annual Meeting & Exhibit and CMA 113th National Western February 27-March 2 Colorado Conventions Center, Denver, CO, USA www.smenet.org PDAC 2011 March 6-9 Metro Toronto Convention Centre www.pdac.ca Minefill 2011 March 21-25 The Table bay Hotel, Cape Town, South Africa www.saimm.co.za/minefill2011 Asia Mining Congress 2011 April 4-8 Marina Bay Sands, Singapore www.terrapinn.com/2011/asiamining Paste 2011 – 14th International Seminar on Paste and Thickened Tailings April 5-7 Esplanade Hotel Fremantle, Perth, Western Australian www.paste2011.com

cim news Something old, something new CIM Metallurgical Society gets new name By Marlene Eisner What’s in a name? Everything, and that is why last month, the Metallurgical Society of CIM announced it was changing its name to the Metallurgy and Materials Society of CIM. Incorporated in 1967, the 1,700member society represents the technical diversity of the metals, minerals and materials community, and is dedicated to expanding the professional horizons of its members to better serve that sector of the industry. Including materials in the official name was a move that just made sense. The society has traditionally been associated with the production and processing of metals, but the engineering of materials is very broad and encompassing. Nonmetallic materials, such as composites and ceramics, have been around a long time and have always been integral to the society’s mission and activities.

“It’s not like some of these materials are absolutely new,” explains Greg Richards, president of the Metallurgy and Materials Society (still referred to as “MetSoc”) and an engineer with Teck. But alongside the familiar are the new, emerging materials that have gained prominence in the last few decades, such as nanomaterials and biomaterials, adding to the potential breadth and scope of the society. “We’ve always recognized the importance of materials in MetSoc, but as the field diversifies and grows, there is a need to indicate to the profession that we will cover these as well as the traditional areas of metallurgy,” adds Richards. Another driver behind the initiative was globalization. It was becoming evident that among other metallurgical societies, there was a growing trend to recognize the inclusion of materials as

a way to better represent the full field and what it entails. And finally, as long as MetSoc was tweaking its name to reflect the inclusion of materials, it was decided the timing was right to re-think and revamp the mission statement. “To a degree, we want to signal to the profession that this is a Canadian organization within CIM and we are serious about materials,” explains Richards. “If there were any ambiguity or doubts in the past about who we were seeking to serve, then here’s the answer. We just want to recognize what we’ve already been doing and that we are committed to it, will continue to do it, and will do more to bring in materials.” The end result is a blending of the old with the new, reaching out to materials on the one hand, while recognizing the history and core strength that exists in the Metallurgical Society. CIM

November 2010 | 71

cim news | award winner No guts, no glory How one CIM member breathed new life back into Prince George’s mining community By Robbie Pillo

Photo courtesy of Normand Huberdeau/NH Photographes

Three years after the CIM North Rasmussen’s first brush with Central BC Branch in Prince CIM conferences some years ago George, British Columbia, had shut was a memorable one. When he its doors, tenacious CIM member moved to Huckleberry Mines as Greg Rasmussen decided that it was chief metallurgist, his new mill time to step up and make a differsuperintendent surprised him ence. Having attended the neighwith the news that he was not bouring CIM South Central BC only to attend the Annual CanaBranch’s Annual Meeting in Kamdian Mineral Processors Operaloops and witnessing its trementors’ Conference (CMP) in Ottawa, but also expected to give dous success, Rasmussen realized a presentation. “He made it sound the future looked promising for like he was sending me on a trip, Prince George’s mining community but in reality, he had something and embarked on a journey to revielse mind,” he recalls, laughing. It talize the once dormant branch. was the first time Rasmussen ever “The mining industry within the Rasmussen receiving award at this past year’s CIM Conference & Prince George area was active, but it Exhibition from then president of CIM Michael Allan. spoke in front of large group and needed to remain connected,” he ended up relishing the learning recalls Rasmussen. In November experience. The conference was a 2007, after months of intense work, real eye opener as to the benefits of a time, selected the speakers according Rasmussen single-handedly delivered being part of a professional organizato local issues, made calls to promote the jumping point that catapulted the tion and the industry. “I have always the event, secured sponsorship and branch back onto the networking been a strong supporter of CIM and its called upon CIM’s Distinguished Lecscene. values,” he says. “It provides an essenturers Program to secure his keynote For his singular efforts in organiztial knowledge-sharing network.” speaker. ing the inaugural one-day conference, Whether starting a new branch or The one-day conference drew over Rasmussen received the CIM District 6 50 delegates who listened to keynote rejuvenating a pre-existing one, the Distinguished Service Award this past speaker Glenn Nolan, former Chief of process is not an easy feat. Rasmussen May. From registration management to the Missanabie Cree First Nation, and suggests talking to other local booking presenters, Rasmussen did it six other technical presentations branches and CIM National, which all. “At first, I was oblivious to what before gathering at a closing dinner. will provide support, contacts, ideas was involved and as it got more Rasmussen also chaired an annual and help in promoting your event. “It entailed, it grew into more work,” general meeting and purposely held it was only after the branch was reinrecalls Rasmussen. “But, as I have been during the lunch hour to ensure that stated that I spoke to other local known to have a stubborn streak, I all 50 delegates would be present to branches, particularly the CIM South decided to follow it through. I just had cast their votes and answer his call to Central BC Branch,” he recalls. “I wish action for branch executive volunteers I had done it sooner.” to give it a try.” In 2009, Rasmussen moved to VanFor most, organizing an event may — and it worked. A new executive was couver and has remained quite seem like a daunting task, especially elected with Rasmussen at the helm. involved with his CIM family — he was Since then, the event has grown when tackling it alone. But for one into an annual two-day conference Field Trip Chair of the CIM Conference who is coping with Attention Deficit and Exhibition 2010, regularly attends and doubled in delegates, presentaHyperactivity Disorder (ADHD), it can CIM Vancouver Branch meetings, and tions and topics. A portion of the propose even greater challenges. “When will pop into the local CIM branch ceeds generated from the 2008 annual I was growing up, coping with the meetings whenever in the Prince meeting went to support the Northern disorder was hard on my parents,” George and Kamloops areas. “NetworkBC Friends of Children Society, a nonRasmussen acquiesces. “But with time, ing and gaining new knowledge and profit organization assisting families I learned to cope with it and actually insights — this is what I retained from became really good at multitasking.” with children with extraordinary medical needs, a tradition that the branch attending that first CMP meeting, and it When it came to organizing the conis what CIM is all about.” CIM ference, Rasmussen took it one step at has since kept. 72 | CIM Magazine | Vol. 5, No. 7

cim news

Phase 1 STAGE 1 Membership functions

STAGE 2 Implement multi-language features

STAGE 3 CIM website, product sales and exhibits

STAGE 4 Events, Technical papers (abstracts) and registration

STAGE 5 Onsite registration

ONE STEP AT A TIME CIM’s IT project nears first milestone By Andrea Nichiporuk The first stage of Phase 1 of CIM’s information technology infrastructure overhaul project is nearing completion. “This is a major milestone for us,” says Jean-Marc Demers, CIM’s senior director of business management and strategic development. “We have completed the designs, are finalizing the analysis and are almost ready to go live with the association/contact relationship management (CRM) system.” This means that CIM National office staff will now be able to work directly with the new CRM system, allowing them to manage data and orders more efficiently.

Managing made easy

Image courtesy of Yu Centrik Inc

The new CRM system will enable CIM to better manage member relationships, member types, dues and interactions between CIM members at all levels. As well, its automated dues billing functionality facilitates the handling of large quantities of dues renewals — something the old system would have difficulty doing. Some of the other features the CRM system include the ability to: • Gather information such as areas of interest, professional expertise and job functions • Maintain and use an unlimited number of main and alternate contact details • Track company/subsidiary relationships • Transmit information to contacts using their chosen means of communication • Tag members according to membership type • Record member history • Track the membership application process • Bundle other purchases with dues billing • Record changes to member profiles The new look of the CIM website without difficulty • Process membership dues and renewals • Automate the delivery of notices and group billing • Offer members the option to auto-renew their membership Going forward • Support anniversary and calendar-year membership In the coming months, CIM will be set to begin promoting renewals the new website’s functionalities to its members. It is also In essence, this is a flexible system with the built-in working towards being ready to demonstrate some of these features at next year’s CIM Conference & Exhibition in Moncapability to grow alongside CIM. treal. A project of immense proportions such as overhauling Engineering a more efficient website With architectural renderings of the new CIM website now CIM’s information technology infrastructure is a necessary completed, the project has segued into the detailed engineer- step towards providing an optimal level of service to its meming phase, which is expected to take upwards of 12 to 18 bers and the industry, as well as building a formidable assomonths. The figure provides a look at the new, more user- ciation. CIM friendly design.

CIM – A COMMUNITY FOR LEADING INDUSTRY EXPERTISE November 2010 | 73

Phase 1 ÉTAPE 1 Fonctions des membres

ÉTAPE 2 Application des fonctions multilingues

ÉTAPE 3 Site Web de l’ICM, ventes de produits et expositions

ÉTAPE 4 Événements, documents techniques (résumés) et inscription

ÉTAPE 5 Inscription sur le site

UNE ÉTAPE À LA FOIS Le projet des TI de l’ICM s’apprête à franchir une première étape importante La première étape de la phase 1 des travaux de restructuration des technologies de l’information de l’ICM est sur le point de s’achever. « Il s’agit d’une étape importante pour nous », a déclaré Jean-Marc Demers, directeur principal, gestion des affaires et développement stratégique de l’ICM. « Nous avons terminé la conception, nous finalisons l’analyse et nous sommes presque prêts à mettre en route le système de gestion de la relation association/contact (CRM). » Le personnel du bureau national de l’ICM sera ainsi en mesure de travailler directement avec le nouveau système CRM et pourra gérer les données et les commandes plus efficacement. Le nouveau système de gestion de la relation association/contact (CRM) permettra à l’ICM de mieux gérer ses relations avec ses membres, les types d’adhésion, les cotisations et les interactions entre ses membres à tous les niveaux. De plus, l’automatisation de la facturation des cotisations facilite le traitement du renouvellement des cotisations en grande quantité, chose que l’ancien système avait de la difficulté à faire. Voici quelques-unes des autres fonctions du système CRM : • obtention de renseignements, comme le domaine d’intérêt, l’expertise professionnelle et la fonction professionnelle; • conservation et utilisation d’un nombre illimité de coordonnées des contacts principaux et suppléants; • suivi des relations société/filiale; • transmission de l’information aux contacts par les moyens de leurs choix; • repérage des membres par type d’adhésion; • conservation des antécédents des membres; • suivi du processus d’inscription des membres; • intégration des achats à la facturation des cotisations; • inscription facile des modifications aux profils des membres; • traitement des cotisations et du renouvellement des adhésions; • automatisation des envois d’avis et de la facturation en groupe; • option de renouvellement automatique de l’adhésion pour les membres; • traitement des anniversaires et du renouvellement annuel des adhésions. En somme, il s’agit d’un système souple ayant la capacité de croître avec l’ICM.

La conception d’un site Web plus efficace Les rendus architecturaux du nouveau site Web de l’ICM étant terminés, les travaux sont passés à la phase de l’étude

Image courtoisie de Yu Centrik Inc

La gestion simplifiée

Nouvelle conception du futur site Internet de l’ICM

technique détaillée, laquelle devrait prendre de 12 à 18 mois. La pièce jointe donne un aperçu de la nouvelle conception plus conviviale.

À venir Au cours des prochains mois, l’ICM sera prêt à commencer la promotion des fonctions de son nouveau site Web auprès de ses membres. Il se prépare également à faire la démonstration de certaines de ces fonctions au Congrès et Salon commercial de l’ICM de l’an prochain. Un projet d’une grande envergure comme la restructuration des technologies de l’information de l’ICM constitue une étape qu’il faut nécessairement franchir pour assurer un niveau optimal de service à ses membres et au secteur, ainsi que pour bâtir une association exceptionnelle. ICM

ICM — UNE COMMUNAUTÉ POUR UNE EXPERTISE DE PREMIER PLAN 74 | CIM Magazine | Vol. 5, No. 7

cim news Éminente visite à Rouyn-Noranda : un appel à de nouvelles solutions Par Claude Gagnier Le 28 septembre dernier, devant une quarantaine de personnes à une conférence de la section RouynNoranda de l’ICM, le docteur James Franklin, Éminent conférencier de l’ICM est venu tracer les possibilités afin d’augmenter le taux de succès des campagnes d’exploration minérales. Un examen des tendances mondiales concernant la demande de métaux tels le cuivre, le zinc, l’or, le fer, l’uranium, le platine, les terres rares, le molybdène, le tungstène, le chrome et le nickel démontre que les besoins seront multipliés dans les prochaines années. Actuellement les nouvelles découvertes ne parviennent tout simplement pas à remplacer le matériel miné. Plusieurs facteurs expliquent ce fait. Ainsi, même si l’on recycle de plus en plus, une portion des métaux est et sera toujours irrécupérable. De plus, la demande du marché des pays émergents croitra de façon exponentielle (sans compter la propre croissance de la demande des nations développées). Au cours des dernières décades, les découvertes de gisements géants (notamment en métaux de base) ont été relativement peu nombreuses. Une des conséquences est que le simple remplacement de tels gisements nécessite la découverte d’un nombre impressionnant de dépôts de moyenne ou petite taille. Depuis des temps immémoriaux notre niveau de vie étant lié à l’usage et à la disponibilité des minéraux, la simple conservation du niveau de vie actuel à l’avenir requiert l’amélioration de l’efficacité de nos campagnes d’exploration. Ces dernières devront ainsi être moins couteuse (en temps et en argent dépensé par tonne trouvée) et ce même si les gisements exploités sont plus profonds. Comment y parvenir? Plusieurs pistes de solutions ont été suggérées par le Dr Franklin. Premièrement le concept de développement durable deviendra inévitable. Nous

James Franklin examine de nouvelles solutions

devrons aussi améliorer la récupération dans les usines de traitement ainsi que la vitesse de remise en états des sites miniers. Le plus gros de l’effort devra cependant venir des géosciences. Les futures découvertes nécessiteront une exploration novatrice. Afin que parvenir à numériser puis informatiser les bases de données servant à l’exploration minérales et définir de nouvelles cibles d’exploration, nous devrons : développer des modèles de gisements métallifères plus descriptifs; mieux détecter les attributs critiques des gîtes en utilisant des critères quantitatifs (numérisables); mieux comprendre les relations entre les dépôts et la géologie régionale; mieux utiliser l’information disponible. Pour y parvenir la recherche multidisciplinaire sera de mise. Les critères définis comme étant les plus utiles (type de roche, altération, assemblages minéralogiques) devront être cartographiés de façon à ce qu’une analyse informatique puisse les traiter (une codification est impliquée). Des sources non-conventionnelles de métaux devront être examinées : il ne faut pas avoir peur de sortir des sentiers battus. Par exemple, si nous considérons les nodules de manganèse présents sur les fonds océaniques : le contenu en métal est élevé, quels sont

donc les défis technologiques? Si ces derniers étaient insolubles dans le passé, le sont-ils toujours aujourd’hui? Comparativement à nos compétiteurs (notamment l’Australie), le Canada investit relativement peu dans le domaine de la recherche appliquée aux mines. Notre compétitivité risque d’en payer le coût à long terme. Une recherche efficace implique un partage des coûts entre l’industrie et le gouvernement. Le réchauffement planétaire et l’ouverture des voies de navigation dans l’Arctique canadien ouvrent un énorme potentiel pour l’exploration minérale. En effet les coûts de transport devraient diminuer, l’exploration sera facilitée et plus économique. Le Dr Franklin a terminé sa conférence en nous parlant du CCIM : le consortium canadien en exploration minérale. Cet organisme de recherche en exploration implique plusieurs gros joueurs de l’industrie tels Barrick, De Beers, Vale, Teck, Cameco, Kinross, Goldcorp ainsi que des compagnies junior et des universités. Un de ses objectifs est d’identifier les besoins en exploration pour les 5 à 10 prochaines années. ICM Claude Gagnier est président de la section Rouyn-Noranda de l’ICM. November 2010 | 75

cim news A cohesive approach to improving metallurgical efficiency Xstrata’s Lotter met challenge head on using process mineralogy By Robbie Pillo Upon his arrival in 1997 at Falconbridge Ltd. (today Xstrata Process Support) as superintendent of mineral processing, Norman O. Lotter was given an open opportunity when it came to improving the efficiency of existing concentrator operations. Fast forward ten years, Lotter and his team successfully adapted the existing highconfidence flotation testing (HCFT) into a hybrid approach with complementary technologies. This providing a platform to quantify the full potential of an ore body in a concentrator and to specify an optimum flowsheet that would deliver this potential. As a member of this season’s CIM Distinguished Lecturers Program, this leader in process mineralogy guides us through the learning process behind the research of “Modern flowsheeting technology.” CIM: What was your approach to improving concentrator efficiency? Lotter: I put together two five-year plans where one would build upon the other. The first plan (1997-2002) was aimed at the dimension of time; in other words, building the process mineralogy team to address performance improvements for existing concentrators that were in production. The second step (2002-2007) focused on the dimension of space — looking at the entire ore body from a more predictive point of view, using modern processing mineralogy. This naturally resulted in working with viable new mine projects, and this is where the much larger value was realized. CIM: How did adapting the existing HCFT lead to an improvement in efficiency? Lotter: HCFT originated in South Africa in the late eighties and early nineties, and was based on platinum mineral processing. The adaptations we made 76 | CIM Magazine | Vol. 5, No. 7

ing the metallurgical performance of the ore resource. By stratifying the sampling of drill core, more accurate sampling equations result and, consequently, a more representative sample of ore resource will be achieved. The flotation testing of several samples of drill core now adds measurements that quantify that variation. In a new mine, we absolutely prefer to work from drill core as the sample material.

required establishing different sampling requirements and modifying existing sample preparation protocols. We embedded this approach into a standard practice. This means starting from representative sample material, and then identifying and reducing measurement errors in flotation testing so that you will have a 95 per cent level of confidence in the metallurgical results that you report. This approach also ensures proper characterization of the ore body from true samples in a manner that easily identifies the processing implications. In particular, it captures variations in the ore body and when properly translated into the flowsheet design, minimizes the risk that unexpected responses will develop in concentrator operations. CIM: How do you capture variations in the ore body? Lotter: We achieve this by analyzing and testing several drill core samples from a mineral resource. Individual assays of metal grade in the drill core will provide some idea of bulk ore grade, but it is insufficient for predict-

CIM: Why is working from drill core a better approach? Lotter: In taking the conventional approach when sinking a pilot shaft down the middle of the ore body, you are essentially extracting a couple of hundred tons of ore from that particular point. You have no guarantee that the rest of the ore body has similar characteristics. But the drill core comes from holes through the full space of the ore, across a grid. They expose the full variation of the ore far better than the pilot shaft. Another drawback to the pilot shaft is that it is more costly and time consuming. Drill core sampling will save millions of dollars and at least one year to 18 months in the project’s timeline. Drill core is produced in the normal course of exploration activities; all we ask is that the geologists receive additional funding and schedule to do a little bit more drilling — it’s a marginal cost compared to the conventional practice. CIM: What do you think are the best practices in variability testing? Lotter: The best practice of process mineralogy will first look at drill core testing and divide it into Geomet Units (ore types). We will then characterize samples according to these units. This is one of the key pieces in modern process mineralogy, in that the charac-

scholarship winner

| cim news

Scholarship winner is mining her options terization of the Geomet Unit is not only geological and mineralogical, it is also metallurgical — part of that description derives from flotation tests. Characterization of these units will result in very accurate mineral processing prediction. This also helps in identifying problematic ores. Runof-mine sampling identifies the existence of a metallurgical problem, but characterization of the individual Geomet Unit will help you pin down the culprit. CIM: You mentioned earlier that the first step in your plan involved building a process mineralogy team. What was in place before then? Lotter: After a couple of months of visiting many of Falconbridge’s operations and projects in 1997, it was clear to me that there was an opportunity to demonstrate the value of process mineralogy. Geologists and mineral processors were (traditionally) regarded as two separate disciplines. In addressing the specific needs of the projects, this convention needed to be changed to bring out the full flowsheeting needs. This was achieved by appointing a small multi-disciplined team in the technology centre at Sudbury. CIM: How did creating a cohesive team benefit the operation? Lotter: There was a fair amount of onthe-job cross-training between mineral processors and geologists. It’s an approach that was put together with a deliberate vision. It encouraged representatives of both groups to work and talk together and, quite naturally, cross-disciplinary information flowed. People have inquiring minds and want to make a contribution. This exchange helped us to ask the right questions — a key step at the beginning of the process, leading us to success. We became a balanced team; a strong team with different skills that worked together very easily. CIM

By Marlene Eisner Samantha Lickers’ interest in mining engineering came alive in 2007 at the Mohawk College in Hamilton, Ontario, when she took a certification program in pretrade and pre-technology. The 25year-old former Buffalo, New York, resident moved to Canada five years ago to be closer to her family in Six Nations and said that the one-year course at the college opened her eyes to the world of mining. “It was a general introduction to different courses, such as construction, automotive class, welding, computer classes and AutoCAD; a little bit of everything,” Lickers says. “I knew that was the direction I wanted to go into but I wasn’t sure where, and having the background from that program helped me decide to go into engineering.” Lickers is this year’s winner of the $1,000 Taking Flight Scholarship. In her scholarship application letter, Lickers described the many areas of mining that attracted her interest, from exploration and travel opportunities, to health and safety and working in an environmentally responsible manner. She even considered becoming a mining safety officer. In June, she graduated from Cambrian College’s two-year mining engineering technology program and decided to continue her studies. She is now enrolled in the two-year civil engineering program at Laurentian University in Sudbury, Ontario, and says the scholarship money will come in handy to help pay for books and rent so that she can focus on her school work. “I still have an interest in mining engineering, but I want to keep my options open for now,” she explains. “I’ve changed my mind on how to go about it. I wanted to go to work but then decided to continue on to school.” In two years, she will decide which direction to take; she will either apply to the two-year mining engineering program at Laurentian or go elsewhere to continue in civil engineering. “What I like about mining is that you’re getting resources needed to sustain life,” Lickers says. “There are so many things that mining is used for; it goes into everything that affects everyday life.” CIM

Watch for a listing of

CIM scholarships and bursaries in the next issue of CIM Magazine November 2010 | 77

scholarship winner

Mining rocks for Anne Belanger By Marlene Eisner Not many people get to handle a gun or be up close to fiery fresh lava, but at 21, this year’s winner of the $2,000 Scotiabank and Scotia Capital Markets Scholarship has done all that and more. Anne Belanger, who is in her fourth year studying earth sciences at Dalhousie University in Halifax, recently had a unique experience. “In Hawaii, one of the highlights was we got to see and poke flowing lava. I think it’s a geologist’s dream to do that; our group got lucky,” says Belanger about a 12-day field school trip she attended in early September. “You have to hold the hammer in one hand and guard your face with the other. You could only stay there for 15 seconds at the most due to the radiating heat.” In September 2008, after completing a Dalhousie Earth Sciences Field School, Belanger realized she wanted geology to be a part of her life. It was there that she came to appreciate rocks and rock formations. In the summer of 2009, while working in Iqaluit, Nunavut, with the Canada-Nunavut Geoscience Office, she became enraptured with the beauty and adventure of the North. “It was my first time on Baffin Island and just the scenery and the topography of the area, as well as being transported by helicopter, was unreal to me at the time,” Belanger says. “There were a lot of fjords and amazing scenery that most people don’t get to see; it was an exhilarating experience for me.” It was then she discovered the line of work that she wished to pursue. “The field work I did exposed me to exploration and economic geology in general,” explains Belanger. “The basis of mining is that you’re doing geology to gain money for the economy. I find a genuine interest in it, in all the environmental processes and metamorphic reactions involved in creating the rocks that we see every day. There’s a lot that goes into it and it’s interesting to find out how it all works together.” During her field study this past summer with the Geological Survey of Canada on the Melville Peninsula in Nunavut, Belanger was a junior geologist. She lived in tents at the Barrow River camp with about 20 other geologists and students. Each day, she and a partner would be picked up by helicopter and dropped off at a designated spot. Armed with an air photo, a GPS, a hand-held computer and a shotgun, they walked the path, recording the rocks, the minerals in the rocks and interesting structures. “It’s mandatory to work up North and have a gun license,” she explains. “There were polar bears at the end of the summer, and they go on land, so you take a shotgun.” Belanger says she would like to take a year off to gain experience working in the mining industry and to travel after she finishes school, but then plans to go back for her master’s in 2012. In the long term, her goal is to work in exploration geology and academia. “Ideally, I’ll probably get a PhD and have it tie in with industry, so I can do research about economic geology,” she adds. “It’s a lot about finding out how deposits are formed, so if there is a gold deposit, I would be responsible for finding out how it was formed and then a company can look for similarities and find different deposits.” CIM

cim news CIM welcomes new members Abdelgawad, Borhan, Quebec Adamcryck, Mark, Ontario Adelman, Jessica, Quebec Agopian, Jack, British Columbia Alberda, Philip, Alberta Allum, Ronald, British Columbia Al-Mangour, Bandar, Quebec Amir Farzadfar, Seyed, Quebec Armstrong, Danielle, British Columbia Arnaly, Joshua J., British Columbia Askari, Forogh, Ontario Bains, Sarbjyot, Newfoundland and Labrador Baker, Randal, USA Beaudoin, Raphael, Quebec Bekkering, Janpeter, USA Beland, Stephane F., British Columbia Bell Laxer, Corey, Quebec Bergeron, Paul G., Nova Scotia Bertrand, April, Nova Scotia Bhatnager, Mohit, British Columbia Blacklock, Scott, Saskatchewan Blais, Jason, British Columbia Blais, Adrien, Saskatchewan Blezy, Kevin, Saskatchewan Borkar, Hemant, Quebec Boschma, Adrielle, British Columbia Bosman, Wayde, British Columbia Bowles, Terence F., Quebec Bridge, Nathan, Ontario Brisson, Stephanie, Quebec Brouk, Dagmar, Australia Burke, Jeffrey, Nova Scotia Campos Alvarez, Nelson, Ontario Chakraborty, Abhishek, Quebec Chan, Jessie WH, British Columbia Chattopadhyay, Kinnor, Quebec Chau, Jennifer, British Columbia Chen, Dan, Quebec Cheung, Yuk-Ming, China Christakos, Jennifer, Ontario Christman, Paul, Ontario Christmas, Sarah, New Brunswick Chu, Haley, British Columbia Chu, Evan, British Columbia Chun Ng, Siu, British Columbia Clark, Lawrence, USA Constan, Eric, Quebec Corbett, Colin, Nova Scotia Cross, Brad, Saskatchewan D’Angelo, Francesco, Quebec Davaanyam, Zorigtkhuu, British Columbia Davidson, John C., Alberta Davis, Sarah, British Columbia Desjarlais, John, Saskatchewan

Desmeules-Roy, Olivier, Quebec Dhadda, Rimmy, Ontario DiCecco, Sante, Ontario Dixon, Arlene, Ontario Drianov, Petar, Quebec Dugalic, Matt, Ontario Edrisy, Afsaneh, Ontario Eduardo Martinez, Jose, British Columbia Eun Lee, Choong, British Columbia Fawcett, David A., British Columbia Fitzsimonds, James, Alberta Ford, Joshua, Nova Scotia Foster, Kyle, British Columbia Foster, Kristin, Ontario Fraser, Grather (Duke), Nova Scotia Frey, Alex, British Columbia Fry, Clayton, New Brunswick Fulcher, Michael, Ontario Gagnon, Philip, Nova Scotia Galbraith, Taylor, Saskatchewan Garcia-Vasquez, Magaly, British Columbia Gayle, Richard, Ontario Gervais Robert, Laurent, Quebec Gill, Jaspreet, Quebec Gluck, Thomas, British Columbia Graham, Matthew A., British Columbia Gray, Dianne, British Columbia Grey, Karen, New Brunswick Griiffiths, Jillian, Nova Scotia Hassan, Karim, Alberta Hewitt, Kelsey, Saskatchewan Hill, Maureen, Ontario Holaday, Brendan, Saskatchewan Hood, Shawn, British Columbia Howard, Tyler, Saskatchewan Howlett, Brian, Ontario Ibrahim, Hanaae, Ontario Ilcas Kaluw, Ilamba, South Africa Ip, Stephen, British Columbia Irbaz Shah, Syed, Quebec Islam, Aminul, Nova Scotia JeBailey, Elias, Nova Scotia Jung, Christin, British Columbia Kao, Jason, British Columbia Kearns, Andrew, Ontario Kelly, Eric, USA Kennedy, Chris, Ontario Khattar, Elias, Nova Scotia Kin Tang, Cheuk, Quebec Konkin, Stephen, British Columbia Laliberty, Mike, Ontario Lam, Jerome, British Columbia Lee, Dale, Alberta Lentz, Carlin, New Brunswick

Leung, Andrea, Alberta Leung, Jonathan L., British Columbia Levesque, Jason, New Brunswick Lewis, Mark, Saskatchewan L’Heureux, Simon, Quebec Li, Canran, British Columbia Li, Zhen, British Columbia Liu, Chen, British Columbia Loo, Jetzen E., British Columbia Lopez, Leonel, USA MacDonald, Michael, Nova Scotia MacInnis, Linette, Nova Scotia MacPherson, Kim, British Columbia Magaisa, Dominic, Alberta Main, Anson, Ontario Malard, Nicolas, Quebec Manacsa, Pierro, Manitoba Manavalan, Sathyanarayanan, Newfoundland and Labrador Mangi, Mansoor, Pakistan McColl, Darryl, British Columbia McLaughlin, Kathryn, Ontario McLean, Gordon Ernest, Nova Scotia Mercier, Louis, Ontario Millis, Dean, Saskatchewan Miranda Sanchez, Esther Milagros, Manitoba Moore, Meghan, Manitoba Morales Higa, Ken, Quebec Morden, Robert, Ontario Morrison, Ian, British Columbia Mullard, Zoe, British Columbia Mullen, Daniel, British Columbia Nadeau, Marie-Michèle, Quebec Nash, Gregory, British Columbia Nashaat, Marc, Ontario Neufeld, Chad, British Columbia Nguyen, Travis, British Columbia Nizami, Rabi, Ontario O’Sullivan, Michael John, Quebec Palkovits, Frank, Ontario Patsa, Lena, British Columbia Persaud, Daniel, Ontario Peterson, Kenton, Saskatchewan Pharasi, Sid, Ontario Pittman, Darren, Newfoundland and Labrador Poirer, Francis Ritchie, Quebec Primak, Jason, Quebec Proulx, Donald, Quebec Quan, Jia, British Columbia Race, Thomas, New Brunswick Rahardjo, Anthony H., British Columbia Ramyead, Yovan, British Columbia Rattanpal, Ramneek S., British Columbia

Rempel, Stephen, British Columbia Richards, Michael, New Brunswick Riopel, Michel, Ontario Ritchie, Erika, Saskatchewan Roberto Oliva, Edgar, Quebec Rohead-O’Brien, Hayley, New Brunswick Saldana, Felipe, British Columbia Salehipour, Rouzbeh, British Columbia Sarmiento, Diana, Alberta Sarwar, Sarmand, Pakistan Sehasothy, Jeyen, Ontario Sekhon, Chan S., British Columbia Sergy, Sheila, Yukon Territories Shahirnia, Meisam, Nova Scotia Sherman, Jeffrey, Ontario Shi, Lei, British Columbia Shteyner, Oleg, Ontario Sibley, Tyler, Australia Smith, Alex, New Brunswick Smith, Sandra, Ontario Soomro, Farooq, Pakistan Speta, Michelle, Alberta Stamenov, Toma, British Columbia Strahl, Bryan, British Columbia Sutherland-Dean, Jessica, Ontario Sweet, Greg, Nova Scotia Tang, Kaijun, Manitoba Tao, Hai Yuan, British Columbia Thatcher, Peter, British Columbia Thiessen, Eric, Ontario Toro Taylor, Juan Carlos, Chile Tran, Tony L., British Columbia Tripathi, Nagendra, Ontario Underhay, Sara Lise, Ontario Van de Wille, Philip, Quebec Van de Wille, Mathieu, Quebec Walker, Stephen, Ontario Wallace, Vanessa, Nova Scotia Watters, Mike, Ontario Weatherwax, Erin, British Columbia Weins, Kurtis, British Columbia Willett, James, Saskatchewan Williams, Daniel, Nova Scotia Williams, Troy, Ontario Wilson, Ryan, Saskatchewan Witow, Darryl, Ontario Wolf, Anton, Ontario Zhuang, Quan, Quebec Zimmer, Myles, Saskatchewan Zou, Yu, Quebec

Corporate members Adrok Ltd., United Kingdom Bateman Technologies Corp., Alberta CK Logistics, Quebec

November 2010 | 79

cim news Joint luncheon on food security

Obituaries

By Rick Hutson On September 16, the CIM Toronto Branch and the CIM Management & Economics Society held their annual joint luncheon featuring David Davidson, partner and senior analyst at Paradigm Capital, who gave an engaging presentation on “Potash — Why all the Drama?” to over 100 industry members and interested parties. Although potash has generally been under the investment radar, according to Davidson, there are compelling reasons for believing that potash demand will grow and consequently secure Canada’s position as a leading producer. Not only does Canada have approximately half of the world’s known potash reserves, PotashCorp is the world’s largest producer of potash at 10 million tonnes per year and is projected to grow to 16 million tonnes by 2015. As Davidson noted, the world population is projected to top eight billion by 2020, with China and India leading the way. Most of this growth will be concentrated in urban areas and with economic growth, increasing disposable incomes, increasing food consumption and little arable land to add, pressure is mounting on food producers to meet the growing demand. Because potash fertilizer is the single biggest influence in raising crop yields, its demand is growing as a result. About 80 per cent of the world’s potash production is consumed by countries with little or no potash reserves. Therefore, demand for potash is expected to continue to grow with a positive impact on the holder of approximately 50 per cent of the world’s potash reserves (Canada) and the world’s largest potash producer (PotashCorp). In recognition of his taking the time to speak to the group, the CIM Toronto Branch will be making a donation to the PDAC Mining Matters program and presented Davidson with a plaque noting the donation. A copy of Davidson’s talk is available on the CIM Toronto website at www.cimtoronto.org. CIM

A leader with an “iron fist and velvet glove”

Rick Hutson is chair of the CIM Toronto Branch. 80 | CIM Magazine | Vol. 5, No. 7

Giorgio Massobrio: 1927–2010 By Steve Stecyk Born in Genoa, Italy, a city renowned for its Renaissance culture, Giorgio Massobrio played a central role in the modern rebirth of the steelmaking industry both in Italy and Quebec. He graduated magna cum laude in electrical engineering from the University of Genoa in 1951 and shortly thereafter began his career at ITALSIDER steel company. He took part in the Marshall Plan, the massive U.S.-directed European reconstruction initiative following World War II, training at ARMCO Steel Corp in the United States, and helped in the rebuilding of the Italian Steel industry. Massobrio eventually rose through the ranks and was appointed executive vice-president of ITALSIDER in 1971 and was elected to its board of directors. In 1974, he was appointed Commendatore della Repubblica Italiana, a distinguished honour bestowed upon him for his role in the reconstruction of the Italian Steel industry. Massobrio brought his talents and fortitude to Canada in 1977, where he accepted a position at United States Steel Corp. He later went on to become the president and CEO of its subsidiary, Québec Cartier Mining, from 1980 to 1992, and was chairman of the board until 1994. In 1989, CIM awarded him with the prestigious INCO Medal for his contribution to the restructuring of the iron ore industry in Quebec. He was later elected president of CIM in 1995–1996 and was credited for steering CIM back onto a solid financial path. Don Worth, incoming CIM president at the time, thanked him for successfully applying his senior executive talents to the challenge of balancing the Institute’s books. “We needed his iron fist and velvet glove,” said Worth. Massobrio continued to apply his expertise as the general chairman of the CIM Centennial Conference Organizing Committee in 1998. In recognition of his contribution as past president and hard work toward the centennial celebrations, he was awarded the CIM Distinguished Service Medal in 2000. He also served as the director of the Mining Association of Canada and as a board member of Le Conseil du Patronat de Montréal. Massobrio was also the author of many technical papers on open hearth and basic oxygen steelmaking, as well as the use of computers for production control and management information systems. Throughout his life, Massobrio met many challenges, which he faced head on and with success and dignity. He passed away on September 4, 2010.

Steve Brosseau, a member of CIM since 1996, died on September 24, 2010. Kenneth E. Daniel joined CIM in 1958 and achieved Life Member status in 1994. He passed away on July 14, 2010. Nicholas Robb became a member of CIM in 1962 and a Life Member in 1995. He died on July 4, 2010.

Field trip attendees enjoy afternoon at Turcker’s Knob

Rounding up exploration in Red Lake By Carmen Storey The CIM Red Lake Branch Exploration Roundup 2010 was held this past June at the Cochenour Hall in Red Lake, Ontario. Over 40 participants attended the morning session presentations, which focused on exploration in the Red Lake camp. Kicking off the session, Andreas Lichtblau and Carmen Storey of the Red Lake Resident Geologist Office gave an overview of local exploration activities of the previous year. Other speakers included Ian Russell of Rubicon Minerals and Jim Rogers of Mega Precious Metals who presented in-depth updates on their respective companies’ projects. Over 20 people were treated to an afternoon field trip, led by Goldcorp’s chief geologist Dean Crick, to Tucker’s Knob — a new stripped outcrop area — courtesy of Goldcorp Inc.’s Red Lake Mines. CIM Carmen Storey is a director of the CIM Red Lake Branch.

Way to go team! This past August, the CIM National Office “CIM – Cure in Motion” team trekked through the streets of Montreal and surrounding areas to raise close to $14,000 for the Pharmaprix Weekend to End Women’s Cancers. The Montreal walk raised $5.1 million that will benefit the Montreal Jewish General Hospital Segal Cancer Centre.

From left to right: Robertina Pillo, Lise Bujold, Jean Vavrek, Joan Tomiuk, Teresa Barrett and Anne Brosseau.

www.cmpsoc.ca

General Information | Renseignements généraux This year’s conference, taking place in the Confederation Ballrooms at the Westin Hotel, will feature presentations on various aspects of mineral processing including: plant design and plant improvements, operations, new ideas and technologies, precious metals, laboratory and pilot plant testing. La conférence se tiendra à Ottawa, à l'Hôtel Westin, Salle de bal Confédération et comprendra des présentations traitant de divers aspects minéralurgiques tels que les opérations minières, l’optimisation des usines de traitement, la flottation, les technologies avancées, le traitement de l’or et la comminution.

Registration | Inscription Pre-registered delegates can pick up their registration kits at the conference registration desk located on the 4th Floor of the Westin Hotel on Monday between 19:00 and 22:00 and Tuesday to Thursday between 7:00 and 15:00. New registrations will be also taken during these times. The pre-registration fees (tax included) are • $450 – CIM/AIME/TMS members • $100 – CIM member retirees (60+) • $600 – Non-members (includes a one-year membership to CIM) Registration includes access to the conference, coffee breaks, Tuesday’s luncheon, Tuesday evening’s social reception, Wednesday evening’s reception/dinner, and conference proceedings. Note: To pre-register, the registration form must be received by December 31, 2010. Conference registration and attendance at social events should be indicated on the form or upon registration online at www.cmpsoc.ca. Requests for refunds must be made in writing prior to December 31, 2010. After that date, an administration fee of $100 will be charged for new and/or cancelled registrations.

Tous les délégués inscrits à l’avance pourront recevoir leur trousse d’inscription en se présentant au bureau d’inscription, 4e étage de l’Hôtel Westin, le lundi soir entre 19h et 22h et du mardi au jeudi de 7h à 15h. Les autres délégués qui désirent participer à la conférence pourront également s’inscrire à cet endroit, aux mêmes heures. Les frais de pré-inscription (taxe incluse) sont de : • 450 $ pour les membres de l’ICM, TMS et AIME • 100 $ pour les membres de l’ICM retraités (60+) • 600 $ pour les autres participants (inclus un abonnement d’un an à l’ICM) Ces frais donnent droit : aux conférences, aux pauses-café, au dîner le mardi, à la réception sociale le mardi en soirée, à la réception/souper le mercredi et à une copie des comptes rendus. N.B. : Les formulaires de pré-inscription doivent être reçus avant le 31 décembre 2010. Veuillez vous inscrire à la conférence et aux activités sociales en remplissant un formulaire d’inscription ou encore en ligne au www.cmpsoc.ca. Les demandes de remboursement doivent être faites par écrit avant le 31 décembre 2010. Après cette date, des frais de 100 $ s’appliqueront aux nouvelles inscriptions ainsi qu’aux inscriptions annulées.

Normand Huberdeau/NH Photographes

n behalf of the executive committee, I am delighted to extend an invitation to you to attend the 43rd Annual Canadian Mineral Processors Operators’ (CMP) Conference. Mineral processors add value by improving metallurgical performance, reducing costs and increasing margins from mined ore. Over the years, they have demonstrated leadership in continuously improving the technology and tools they use and the processes they manage. Challenging metallurgy, environmental issues and operating conditions both domestically and abroad continue to test the limits of mineral processing ingenuity.

u nom du comité organisateur, il me fait grand plaisir de vous inviter à participer à la 43e Conférence annuelle des minéralurgistes du Canada. Les minéralurgistes ajoutent de la valeur en améliorant le rendement métallurgique, en réduisant les coûts et en augmentant les profits des minerais extraits. Au fil des années, ils ont démontré un leadership dans l’amélioration constante des technologies et des outils qu’ils utilisent et des procédés qu’ils gèrent. Des enjeux métallurgiques, des environnements et des conditions de travail difficiles, au pays et à l’étranger, mettent continuellement à l’épreuve les limites de l’ingéniosité en traitement des minerais.

At the Canadian Mineral Processors Operators’ Conference, delegates will learn how their colleagues are improving the efficiency of their plants and mills, and how others solve sometimes complex and difficult problems. For over 40 years, the conference has provided a forum for communicating best practices in our industry and facilitated networking with colleagues, suppliers and researchers.

Lors de la Conférence des minéralurgistes, les délégués apprendront comment leurs collègues améliorent l’efficacité de leurs usines et comment d’autres règlent des problèmes parfois complexes et difficiles. Depuis plus de 40 ans, cette conférence a été le forum pour communiquer les meilleures pratiques de notre industrie et elle a encouragé l’établissement de réseaux avec des collègues, des fournisseurs et des chercheurs.

This year’s Technical Program promises to continue that tradition with topics ranging from operations and plant optimization to advanced technologies, gold processing and comminution. The mineral processing best practice guideline for evaluation of mineral deposits will also be presented for discussion in a special session during the technical program. The Student Mixer, a not-to-be-missed event, provides an opportunity for tomorrow’s leaders to meet some of industry’s finest.

Le programme technique de cette année promet de continuer cette tradition avec des sujets couvrant les opérations et l’optimisation des usines et les technologies avancées jusqu’au traitement de l’or et à la comminution. La Rencontre avec les étudiants, une activité incontournable, fournira aux chefs de demain l’occasion de rencontrer l’élite actuelle de l’industrie.

Amidst all of the networking and knowledge sharing lives a fierce rivalry that, by Canadian standards, can only be settled one way — on the ice. Once again this year, the East and West teams will battle for the Ray McDonald Trophy. Make sure you are there to cheer on your favourite team. Personally, the CMP conference remains integral for professional and technical development, along with being a fun time to catch up with peers in the industry. I trust you agree and look forward to seeing you in Ottawa this coming January.

Parmi tout le réseautage et le partage de connaissances, il existe une sérieuse rivalité, qui, selon les normes canadiennes, ne peut être réglée que d’une seule manière, sur la glace. Encore une fois cette année, les équipes de l’Est et de l’Ouest du pays joueront pour l’obtention du Trophée Ray McDonald. Soyez présents pour encourager votre équipe préférée. Sur une note plus personnelle, je considère que la Conférence des minéralurgistes constitue une partie intégrale du développement professionnel et technique, en plus d’être une occasion plaisante de renouer avec des collègues de l’industrie. Je suis certain que vous serez d’accord avec moi. Il me fera grand plaisir de vous voir à Ottawa en janvier prochain.

Dominic Fragomeni Conference chairman

Dominic Fragomeni Président de la Conférence

Short Course | Cours abrégé A short course on “Sampling in the mineral processing discipline — a practical primer” will be held Monday, January 17. The $300 fee includes meals and course material. Attendance is limited, so please register early. Un cours abrégé portant sur “Sampling in the mineral processing discipline — a practical primer” sera donné le lundi 17 janvier. Le coût, pour assister à ce cours, incluant le matériel et les repas est de 300 $. Les places disponibles étant limitées, veuillez vous inscrire le plus tôt possible. November 2010 | 83

Authors | Auteurs Authors, session chairs and regional representatives must register as conference delegates. A speakers’ breakfast will be provided on the day of the presentation at 7:00 to be held, tentatively, in the Alberta Room. Authors are to contact John Chaulk (613.947.0394, john.chaulk@nrcan.gc.ca) for presentation information.

Provisional Technical Program | Programme technique provisoire

Tous les auteurs, les présidents de sessions et les représentants régionaux doivent s’inscrire comme délégués à la conférence. Un déjeuner sera servi le jour de leur présentation à 7h dans le Salon Alberta (à confirmer). Auteurs, veuillez contacter John Chaulk (613.947.0394, john.chaulk@nrcan.gc.ca) pour obtenir de l’information au sujet des présentations.

8:15 Opening remarks Dominic Fragomeni (CMP2011 conference chair)

Operations

Accommodations | Hébergement

Un nombre limité de chambres a été négocié avec l’Hôtel Westin à un tarif spécial de 186 $ en occupation simple/double et 226 $ pour une chambre de luxe. Veuillez noter que les chambres sont retenues à votre intention jusqu’au 3 janvier 2011 — réserver votre chambre le plutôt possible afin d’éviter des inconvénients. Les réservations peuvent être faites en communiquant directement avec l’Hôtel Westin (tél. : 613.560.7000 ou téléc. : 613.560.2707). Si vous réservez par téléphone, prière d’indiquer que vous participez à la Conférence des minéralurgistes du Canada. Vous pouvez également réserver votre chambre en ligne à partir de notre site internet.

Companion Program | Programme d’accompagnement The Companion’s Program this year includes: • Visit to the newly renovated Canadian Museum of Nature • Coffee & Tea Social • Lunch and a show at the National Arts Centre • Wine and Food Tasting event

TUESDAY

A special rate of $186 (single/double) and $226 (deluxe) has been negotiated for a block of rooms at the Westin Hotel. The hotel will only guarantee these rooms until January 3, 2011 — book you room early to avoid disappointment. Book directly with the Westin Hotel at T: 613.560.7000 or F: 613.560.2707 (reference the Canadian Mineral Processors Operators’ Conference) or online through the link on the CMP website.

8:30 PLENARY: Better flowsheeting with modern process mineralogy N.O. Lotter (CIM Distinguished Lecturer) 9:10 Flotation flowsheet development at Teck Highland Valley Copper J. R. Hernandez-Aguilar and J. Basi 9:35 Agnico-Eagle LaRonde plant: metallurgical challenges present and future P. Blatter, J. Cayouette and P. Cousin 10:00 Coffee Break 10:30 Uranium milling in Northern Saskatchewan’s Athabasca Basin: past, present and future C. Edwards 10:55 Case study of thickened tailings at Goldcorp’s Musselwhite Mine in Northern Ontario S. Longo, J. Girard and S. Kam 11:20 Operating practices at Peñoles Concentrators – Mexico R. Espinosa 11:45 Modelling of the dry magnetic separation process at Rio Tinto Fer et Titane C. Bertrand, C. Bazin and P. Nadeau 12:10 Beer & Sandwich Lunch

Plant optimization 13:30 Optimizing Plant 2 at Kinross Paracatu, the world’s

13:55

14:20

14:45 15:15

Note that the $50 fee to participate in the program does not include a ticket to the Wednesday Reception and Awards Dinner. Cette année, le programme d’accompagnement offrira : une visite au Musée Canadien de la Nature tout nouvellement rénové, une réception sociale (thé et café), un dîner-spectacle au Centre National des Arts ainsi qu’une dégustation de vins et divers aliments. Le coût de ce programme est de 50 $ sans toutefois inclure le billet du souper de la réception et remise de prix qui aura lieu le mercredi soir. 84 | CIM Magazine | Vol. 5, No. 7

15:40

16:05

largest tonnage lowest grade primary gold milling operation G. Junior, W. Philips, R. Thorpe, C. Martin, R. Henderson and K. Ford Updating the Lucky Friday mill — experiences in revamping a historic milling operation R. Mondragon, D. Dean, C. Aguilar, B. Hancock and C. Martin Formulation and plant trial of a mixed collector suite for eland platinum N. O. Lotter, R. Monnapula, J. Oliveira, D. Fragomeni and D. J. Bradshaw Coffee Break Contaminant problems in Agrium’s Canadian phosphate business J.-F. Boulanger, J. Culverhouse, D. Grimm and K. Harding Gold recovery improvements at Fort Knox Gold Mine mill, Alaska B. Musgrove, J. Oleson, H. Propsom, K. Ford and R. Henderson Improving fluorine-bearing minerals rejection in the flotation development of a Brazilian sulphide copper ore A. Tavares, D. Couto and K. Gonçalves

Social Program | Programme sociale All activities take place at the Westin Hotel, unless otherwise indicated. Tous les activités se déroulent à l’Hôtel Westin, sauf si indiqué autrement. Monday | Lundi 19:00–22:00 Early conference registration [4th Floor] Inscription anticipée à la conférence [4e étage] 20:00–23:00 Student Mixer [Quebec Room, 4th Floor] Soirée-rencontre des étudiants [Salle Quebec, 4e étage] Tuesday | Mardi 7:00–8:15 Authors’ Breakfast [Alberta Room] Petit déjeuner des auteurs [Salle Alberta] 7:00–15:15 Registration [4th Floor] Inscription [4e étage] 12:10 Beer & Sandwich Social [4th Floor] Activité sociale avec bière et sandwichs [4e étage] 19:00 Hockey Cup Challenge [Carleton University] Partie de hockey [Université Carleton] 21:00 Chairman’s Reception [Governor General’s Ballroom] Réception du président [Sal de bal Gouverneur Général] Flotation

Wednesday | Mercredi 7:00–8:15 Authors’ Breakfast [Alberta Room] Petit déjeuner des auteurs [Salle Alberta] 7:30–15:15 Registration [4th Floor] Inscription [4e étage] Annual Business Meeting (all welcome) 11:30 [Confederation Ballroom] Séance administrative annuelle (ouverte à tous) [Sal de bal Confédération] 18:00 Executive Reception [Colonel Bay Suite] Réception de la haute direction [Suite Colonel Bay] 18:30 Reception [4th Floor] Réception [4e étage] 19:30 Annual Banquet [Confederation Ballroom] Banquet annuel [Sal de bal Confédération] Thursday | Jeudi 7:00–8:15 Authors’ Breakfast [Alberta Room] Petit déjeuner des auteurs [Salle Alberta] 8:00–15:15 Registration [4th Floor] Inscription [4e étage]

8:35 TBD

8:30 On the role of bubble size in column flotation J. R. Hernandez-Aguilar 8:55 A review of flotation columns application in rougher circuits M. Massinaei, M. Oliazadeh, S. Zeidabadi and M. R. Yarahmadi 9:20 A protocol for conducting plant trials testing grinding media to determine recovery improvements: The Ernest Henry Mine plant trial C. J. Greet, J. Twomey and A. Chung 9:45 Coffee Break 10:15 Evaluation of environmentally friendly collectors for xanthate replacement J. Dong and M. Xu 10:40 Development of AERO® MX3048 Promoter for MMG’s Sepon Concentrator, South Central Laos P. Riccio and T. Moore 11:05 Millerite and its impact on Cu/Ni separation M. Xu, F. Ford and V. Lawson 11:30 Annual Business Meeting

Gold Ore

WEDNESDAY

L. Lachance and F. Flament 13:55 Control system performance assessment – best practices M. Ruel 14:20 Galvanic interaction and particle size effects in selfheating of sulphide mixtures R. Payant, F. Rosenblum, J. E. Nesset and J. A. Finch 14:45 Coffee Break 15:15 Quantitative characterization of the REE minerals by QEMScan from the Nechalacho heavy rare earth deposit, Thor Lake Project, NWT, Canada T. Grammatikopoulos, W. Mercer, C. Gunning and S. Prout 15:40 Process mineralogy of Sudbury platinum group minerals as determined by mineral liberation analyzer F. D. Ford, C. R. Wercholaz, A. W. Lee and M. Xu

THURSDAY

Advanced 13:30 A new ERA tool for state-of-the-art metallurgical Technologies balance calculations

9:00 Beneficiation of concentrated ultrafine suspensions with a Falcon UF concentrator J. S. Kroll-Rabotin, F. Bourgeois and É. Climent 9:25 Improving the gold gravity performance: an investigation into the laboratory and plant gravity recoveries S. Koppalkar, A. Bouajila, C. Gagnon, S. Makni and G. Noel 9:50 Coffee Break 10:15 The use of diagnostic testwork and CIP/CIL modeling to improve the metallurgical performance at two IAMGOLD operations C. A. Fleming, M. Ourriban and P. Pelletier 10:40 Application of CELP for leaching gold and silver from high grades ores: case studies G. Deschênes and M. Fulton 11:05 Estimation errors for gold inventory in large carbon-in-leach tanks G. Blanchette, C. Bazin and P. Blatter 11:30 New method for speciation of free cyanide along with Zn & Ni cyanide complexes from industrial gold leaching E. G. Langeroudi, É. Proulx, C. F. Petre, A. Azizi, C. Olsen, C. Gagnon, P. Blatter and F. Larachi 11:30 Lunch

Comminution 13:30 Sophisticated ring geared mill drives: features and 13:55

14:20 14:45 15:15

15:40

Special

15:55 NI-43-101: Best practices in mineral processing T. Lipiec 16:05

16:30

experiences M. Ruffi and M. van de Vijfeijken Pump and cyclone design/optimization to maximize grinding circuit efficiency: a systematic method R. McIvor Grinding: Why so many tests? A. Doll and D. Barratt Coffee Break Measuring parameters for SAG mill design and optimisation: a comparison of the JK drop weight versus shortcut methods S. Stark, S. Bajic, T. Dam and C. Bailey Determining ore breakage characteristics using the steel wheel abrasion test T. Chenje, P. Radziszewski and V. Olivas Effect of grinding operation on product morphology in stirred mills R. Roufail, B. Klein and R. Blaskovich Conference Adjourns

November 2010 | 85

HISTORICAL

metallurgy The miners’ safety lamp A historical essay By Fathi Habashi, Laval University The Industrial Revolution began in the eighteenth century in the United Kingdom following a number of innovations in three major sectors — textiles, steam power and iron founding. In the case of the latter two, the steam engine went from being used to pump out mines to attaining widespread use in power machines in the 1780s, and coke replaced charcoal in the smelting of iron, which resulted in an increase in the production of pig iron for use in machinery and construction. A large quantity of fuel was needed to power a steam engine. Forests were shrinking at a quick pace; therefore, attention turned from wood to coal as a potential fuel source. The use of the newly invented safety lamp in the mines meant that coal mining was now relatively “safe.” What ensued was a shift from a wood-burning to a coal-burning economy. The miner’s lamp played an important role during this period. Coal mining was dangerous, due to the presence of methane in many coal seams. Miners going underground with an oil lamp or torch ran the risk of igniting the methane and causing an explosion. However, a certain degree of safety was provided by the safety lamp, which was invented in 1816 by Sir Humphry Davy (1778-1829) and independently by George Stephenson (1781-1848). The lamp consisted of a flame surrounded by a cylinder of metallic gauze, which allowed oxygen to penetrate through and feed the flame. The heat of the flame was dissipated by the metal and as such, prevented explosive gases outside the lamp from igniting. The lamp was immortalized by numerous artists. It was depicted in memorial statues and by at least two large monuments — one in the United Kingdom and the other in Germany. The British monument, constructed in 1998 by Jim Roberts, a 1992 graduate of Sunderland University, is located outside the Stadium of Light in the one-time coal mining district of Tyne & Wear in Sunderland. It serves as a reminder of the former Monkwearmouth Colliery, the site on which the stadium was built. The other monument was constructed between 1998 and 2007 in Moers, NordrheinWestfalen, Germany, by Otto Piene, a graduate of the Munich Art Academy. The monument stands 30 metres high, is made of steel and glass, and is meant to recall the

coal mining activity in the region. It was named “Geleucht,” which loosely translates to “once was shining.” The safety lamp was also depicted on a number of postage stamps. For example, a Spanish stamp issued in 1995 shows a safety lamp with an underground mine in the background. It also refers to the Mining Museum in Asturias, an old mining district in north western Spain. Stamps honouring the coal mines of the Saar Territory in Germany1 include: one showing a canary still being used in the 1930s to warn miners of lethal doses of explosive methane gas; one showing a safety lamp with wagons loaded with coal; and one showing a miner holding a safety lamp in his hand. Safety lamps also appear on German, Hungarian, Czechoslovakian and Luxemburger stamps. Safety lamps also appear on the coat of arms of the Koumac Province of New Caledonia and the Petrosani mining district in Romania. The Romanian stamp shows the pick and hammer — the miners’ symbol — and a pneumatic drill. The miners’ lamp has also been introduced to the coat of arms of many mining towns, such as the mining town of Nučice, Czech Republic. It was around 1910 that the battery-operated electric lamp was introduced, gradually replacing the Davy– Stephenson lamp. It was safer and its design provided better lighting. CIM 1

Saar or Saar Territory (German: Saargebiet) lies between Germany and France, was created by the Treaty of Versailles in 1919 after World War I with Saarbrucken as its capital, and has important coal mines and an intensive steel industry. It was administered by France, under League of Nations supervision pending a plebiscite to be held in 1935. The plebiscite resulted in an overwhelming majority in favour of re-union with Germany. After World War II, the territory was placed under French occupation and detached from Germany. It was returned to Germany in 1957.

Suggested readings Habashi, F. (1999). Mining and Civilization. An Illustrated History. Québec City: Métallurgie Extractive Québec. Distributed by Laval University Bookstore. Habashi, F., Hendricker, D., & Gignac, C. (2010). Mining and Metallurgy on Postage Stamps. Québec City: Métallurgie Extractive Québec Distributed by Laval University Bookstore.

Opposite page: 1. Spanish stamp; 2. Saar stamp; 3. A Hungarian stamp; 4. A Czechoslovakian stamp; 5. A Luxemburger stamp; 6. A New Caledonian stamp; 7. A Romanian stamp This page: 8. An oil lamp used in underground mining; 9. An ancient Greek carrying torch; 10. A safety lamp; 11. Humphry Davy; 12. George Stephenson; 13. Memorial for the 28 victims of the mine accident on pit “Vereinigte Präsident” in 1936 in Bochum Cemetery. Designed by Wilhelm Wulff (1891-1980); 14. Monument honouring miners at the Faculty of Architecture, University of Bratislava, Slovakia; 15. Location map of Sunderland, United Kingdom; 16. Miner’s helmet with battery operated lamp; 17. Coat of arms of the mining town of Nucˇice, Czech Republic; 18. Miners’ Lamp monument at the Stadium of Light in Sunderland; 19. “Geleucht” by day; 20. “Geleucht” by night

HISTORY OF

economic geology Nevada-type gold deposits (Part 4) By R.J. “Bob” Cathro, Chemainus, British Columbia

“One thing we did was kind of reintroduce the idea of prospecting. People in the States didn’t necessarily believe in prospecting. They thought you had to have either a geologist or more sophisticated exploration, but my experience in Canada indicated that prospecting was still very useful… Anyway, we introduced the idea of prospectors, and also the idea of an incentive bonus, which I always thought was a good idea. There again, that came from Canada because they didn’t do that much in the United States. Canada was very strong on that.” ~ Livermore, 2000

“There are many fine geologists who are simply not good prospectors… In Canada, (Newmont) used prospectors extensively and found them to be very effective if they were knowledgeable about a particular area or type of mineralization.” ~ Livermore, 1996

88 | CIM Magazine | Vol. 5, No. 7

At the end of 2008, nearly 50 years after the Carlin deposit was discovered, Nevada ranked as the fourth largest gold-producing area in the world after China, Australia and South Africa. Moreover, it was the world leader in terms of gold production per unit area (611 tonnes per million square kilometres). Production that year of 5.7 million ounces (54 per cent from the Carlin Trend) came from 19 major mining operations, while at least 68 companies (juniors and majors) drilled at a minimum of 123 projects. At the end of 2008, the mining industry held 70.2 million ounces of gold reserves in Nevada, enough to sustain production at current levels for about 12 years, plus another eight years in the resource category (Price, 2008). The 2008 production was actually 35 per cent lower than the peak production of 8.85 million ounces in 1998 (Driesner & Coyner, 2009). The Carlin trend is now recognized to be a 60-kilometre long, northwest alignment of predominantly carbonate-hosted gold deposits, which Newmont continued to dominate until the late 1980s and early 1990s. It began to lose the lead after American Barrick Resources, a subsidiary of the Toronto-based company, acquired the Goldstrike property at the north end of the trend from Western States Minerals Corporation and Pancana Minerals in January 1987 for $62 million. Reserves at that time were 19.6 tonnes (0.63 million ounces) in 10.3 million tons of oxide ore grading 1.9 g/t (0.055 oz/ton). Barrick recognized the depth potential and expanded the Goldstrike orebody into a diverse group of Carlin-type deposits, including some of the largest and highest grade examples known. One spectacular hole drilled into the heart of the Meikle deposit in 1989 intersected 136 metres of 16.1 g/t (0.47 oz/ton) between depths of 416 and 548 metres. At the end of 2001, the largest deposit, BetzePost, contained approximately 1,244 tonnes (40 million ounces), and Meikle contained 198 tons (7 million ounces) at an average grade of 24.7 g/t (0.72 oz/ton). Goldstrike is part of a larger sub-district that had a total gold endowment, at that date, of 1,960 tonnes (63 million ounces) within an area of 8.5 by two kilometres, placing it among the largest concentrations of gold on earth. This success was a product of the evolution in understanding of geology and ore controls, supported by the application of geochemical and geophysical exploration techniques (Bettles, 2002). Most of the Goldstrike mineralization is hosted by limy to dolomitic mudstones of the Devonian Popovitch Formation and brecciated limestones and dolomites of the Devonian-Silurian Bootstrap Limestone unit. The age of the gold mineralization is approximately 39 Ma, coeval with late Eocene dykes. Gold deposition favours the presence of reactive carbonate, porosity, permeability and the presence of iron, which can be sulphidized to form auriferous pyrite. Dissolution of carbonate has produced collapse breccias, which commonly host high-grade ore. The deposits have strong structural controls, with enhanced fracturing within 300 metres of the contact of a Jurassic diorite intrusion providing a first-order control of the Betze-Post deposit. Most of the gold in unoxidized ore is found in arsenian pyrite overgrowths on pre-ore pyrite and is associated with Hg, Sb and Tl. Marcasite and arsenopyrite are also present and the total volume of these sulphide minerals averages about 5 per cent. Supergene alteration has produced oxide ores to depths of up to 200 metres. At the Betze and Deep Post sub-deposits, mineralization occurs as stacked ore zones that attain a vertical range of 450 metres adjacent to the Post fault system (Bettles, 2002).

HISTORY OF

economic geology Wall-rock alteration is very critical in the formation of Nevada-type deposits. The most salient features are carbonate, in the form of decalcification (calcite removal) and more advanced decarbonatization (calcite/ dolomite removal); silicification, particularly within structural conduits; argillic alteration of primary silicate minerals; and gold-enriched sulphidation of reactive iron to form gold-bearing sulphide minerals. The general alteration progression includes the following major assemblages (from distal to proximal): limestone (calcite + dolomite + illite + quartz + Kspar + pyrite), to weak to moderate decalcification (dolomite halo), to strong decalcification, to decarbonatization (quartz + kaolinite/ dickite + pyrite +/- gold; (Teal & Jackson, 2002). This wealth and mineral potential Nevada gold production, 1960-2008 (Driesner & Coyner, 2009) has generated a vast amount of geoscience research and has contributed New occurrences of sediment-hosted, micron gold minenormously to the science of economic geology. However, there does not appear to be a consensus yet on terminol- eralization were discovered in central Yukon from 2008 to ogy. I have used the term “Nevada-type” as a generic term 2010 by ATAC Resources Ltd. and are currently the subject for non-intrusive-related, disseminated, carbonate sedi- of intensive exploration. While some of the new deposits mentary rock-hosted, low-temperature, stratabound, struc- appear to have strong similarities in mineralogy, alteration turally controlled, micron-gold mineralization. “Carlin- and geological setting to Carlin-type deposits, it is still type” should refer strictly to deposits in the Carlin trend, much too early to know if they will have the size and grade which are in different host rocks than the Getchell, to be economic. Current results are available on the comWinnemucca and other trends, and thus have different pany website at www.atacresources.com/s/home.asp. The new Yukon discoveries were made in an area that alteration and mineralization. The terms “noseeum” and “invisible” have been replaced by “micron” to define the has been tramped over by experienced prospectors for about 130 years, first for placer gold, later for silver-lead fine-grained nature of the gold. Most deposit types, such as porphyries, skarns, VMS and veins, and more recently for uranium and base metals. This sedex deposits, are widely distributed around the globe. On is an excellent example of how difficult it can be to disthe other hand, there are a few major mining camps, such cover micron gold mineralization, and another reminder as gold at Witwatersrand, South Africa, and nickel at that mineral exploration often requires an enormous Sudbury, Ontario, and Norilsk, Russia, that appear to have amount of faith and persistence. The first prospectors who entered the new gold district very few duplicates elsewhere. In spite of 50 years of familiarity and its obvious economic potential, and even though were the vanguard of the vast army that had been graduthe price of gold has increased about thirty-fold in this ally working its way northward and systematically scourperiod, discovering evidence of Nevada-type gold mineral- ing the Cordilleran drainages for placer gold in the search ization outside Nevada and Utah has proven elusive and it for another California goldfield. After being slowed temmay be a member of the latter group with geographic con- porarily by the Cariboo Gold Rush in southern British finement. Five deposits identified as Nevada-type were first Columbia in 1860 (Sutherland Brown & Ash, 2009), the recognized in Guizhou Province, China, in 1980 and simi- advance scouts encountered widespread small- and interlar mineralization has been reported in Shaaanxi, Hunan mediate-size placer deposits throughout northern British and Hubei provinces (Cunningham et al., 1988). However, Columbia, southern Yukon Territory and eastern Alaska. the deposits are reportedly still quite small by Nevada stan- In 1896, they found the rich Klondike camp in western dards. Additional deposits that may be Nevada-type are Yukon, which triggered the famous Gold Rush of 1898. It reported from Sarawak Indonesia, Iran, Africa and Peru is situated at Dawson City, near the International Boundary, approximately 250 kilometres west of the ATAC (Arehart et al., 2003). November 2010 | 89

HISTORY OF

economic geology discovery. Klondike attracted many of the most experienced and hardiest prospectors on the continent to Yukon, along with many more “cheechakos” (greenhorns) who proceeded to pan virtually every small stream and tributary, including the belt of rocks hosting the ATAC discovery. Although several significant placer deposits were found to the south and west, gold panning of the ATAC property was unproductive. The gold prospectors also discovered rich silver-bearing galena veins that were not economic at the time. One of those veins later became part of the Keno Hill silver camp, Canada’s second largest, which produced 6.6 million kilograms (214 million ounces) of silver, 323 thousand tonnes (711 million pounds) of lead and 198 thousand tonnes (437 million pounds) of zinc between 1919 and 1989 (Cathro, 2006). The silver camp, which attracted periodic waves of experienced prospectors who scoured the surrounding district for more rich veins, is situated only 60 kilometres south of the Tiger zone on the ATAC property. In 1959, Amerada Petroleum Corporation constructed the Wind River Trail, a 250-kilometre winter road from the end of the highway system at Keno Hill, to support exploration drilling farther north. The winter road followed overburden-filled valleys and actually crosses the ATAC property. Then, in 1964, the Geological Survey of Canada (GSC) conducted Operation Keno, its first large helicoptersupported, regional stream sediment, water, heavy mineral and rock sampling project, which covered 4,900 square kilometres (1,900 square miles) at a field expenditure cost of only $82,000. As (bad) luck would have it, the northern boundary of the GSC survey only covered the south side of the ATAC property and the creek draining the Tiger Zone was not sampled, possibly because it is difficult to land a helicopter nearby. No other gold occurrences have been found on the south side of the claims. In 1979, a joint venture of several energy companies, which was searching for large sedex lead-zinc-silver deposits, visited the ATAC property and examined a small area of poorly exposed, intrusive dykes and sills situated about 3.5 kilometres from the Tiger Zone. Weathering had exposed a small iron-stained, tremolite skarn zone containing minor amounts of scheelite, chalcopyrite and pyrrhotite that had developed in calcareous rocks. The joint venture, which staked claims in the area in 1979 that partially covered the Tiger Zone, was not routinely assaying for gold, which was common practice at the time because of the low gold price. In any event, detailed sampling would have been needed to obtain significant gold assays. ATAC first visited the tungsten skarn in 2006 to determine if any gold was associated with it and found that an iron oxide cap at the edge of the Tiger zone had a high arsenic background. Reanalysis for gold gave enough encouragement to warrant systematic geochemical sampling 90 | CIM Magazine | Vol. 5, No. 7

and prospecting in 2007 and led to the first drilling in 2008. That resulted in an extensive staking program covering almost 200 kilometres of strike length of Paleozoic carbonate rocks that are sandwiched between two regional thrust faults. In 2009-10, ATAC discovered another significant gold occurrence (Osiris) about 100 kilometres east of Tiger and confirmed with drilling that it was a Carlin-type deposit. More than a century passed between the first examination of the ATAC property by gold prospectors and the recognition of Nevada-type gold mineralization. The principal reason for that delay was the absence of placer gold in the creeks or visible gold in the talus. The fact that micron gold deposits are so rare outside Nevada, which is located thousands of kilometres to the south, undoubtedly played a part during the last 50 years. We can safely assume that the central Cordillera between Nevada and Yukon will see a lot more exploration in coming years.

Acknowledgments Rob Carne of ATAC Resources kindly provided information about the new Yukon discoveries as well as Nevada references and skilled editing. Information about the GSC’s Operation Keno was supplied by Chris Gleeson, one of the principals involved in the design, field operation and publication of the data. CIM

References Arehart, G. B., Chakurian, A. M., Tretbar, D. R., Christensen, J. N., McInnes, B. A., & Donelick, R. A. (2003). Evaluation of radioisotope dating of Carlin-type deposits in the Great Basin, Western North America, and implications for deposit genesis. Economic Geology, 98, 235-248. Bettles, K. (2002). Exploration and geology, 1962 to 2002, at the Goldstrike property, Carlin trend, Nevada. In T. B. Thompson, , L. Teal, & R. O. Meeuwig (Eds), Gold deposits of the Carlin trend. Nevada Bureau of Mines and Geology, Bulletin 111, p. 54-75. (This paper was first published in Integrated Methods for Discovery: Global Exploration in the Twenty-First Century. Society of Economic Geologists Special Publication No. 9, April 2002, p. 275-298.) Cathro, R. J. (2006). The history and geology of the Keno Hill silver camp, Yukon Territory. Geoscience Canada, 33(3), 103-134. Cunningham, C. G., Ashley, R. P., Chou, I.-M., Zushu, H., Chaoyuan, W., & Wenkang, L. (1988). Newly discovered sedimentary rock-hosted gold deposits in The People’s Republic of China. Economic Geology, 83, 1462-1467. Driesner, D., & Coyner, A. (2009). Major mines of Nevada 2008: Mineral industries in Nevada’s economy. Nevada Bureau of Mines and Geology, Special Publication P-20, p. 23. Livermore, J. S. (1996). Carlin-type gold exploration in Nevada since the Newmont discovery in 1961: 1996 Jackling Lecture. SME-AIME Transactions, 300, 79-83. Livermore, J. S. (2000). Prospector, Geologist, Public Resource Advocate: Carlin Mine Discovery, 1961. An oral history conducted in 1992, 1997, and 2000 by E. Swent and M. Fuerstenau, Regional Oral History Office, The Bancroft Library, University of California, Berkeley. Available at http://content.cdlib.org/view?docId=kt796nb3xp&brand=oac&doc.view=entire_text Price, J. G. (2008). Overview, in The Nevada Mineral Industry 2008. Reno: Nevada Bureau of Mines and Geology, Special Publication MI-2008. Sutherland Brown, A., & Ash, C. H. (2009). The history and geology of the Cariboo Goldfield, Barkerville and Wells, BC. Geoscience Canada, 36(1), 1-31. Teal, L., & Jackson, M. (2002). Geologic overview of the Carlin trend gold deposits. In T. B. Thompson, L. Teal, & R. O. Meeuwig (Eds.), Gold deposits of the Carlin trend. Nevada Bureau of Mines and Geology, Bulletin 111, p. 9-19.

technical abstracts CANADIAN METALLURGICAL QUARTERLY High-Temperature Oxidation of Bessemer Matte M. Muinonen, Vale – Technical Services Limited, Mississauga, Ontario, G. Plascencia, CIITEC – IPN, Cerrada Cecati, Catarina, Mexico, and T. Utigard, Material Science and Engineering, University of Toronto, Toronto, Ontario

Slag Chemistry of the Mitsubishi S and Cl Furnaces at the Xstrata Copper-Kidd Metallurgical Site P. Coursol, N. Tripathi, P. Mackey, Xstrata Process Support, Falconbridge, Ontario, T. Leggett and A. Salomon de Friedberg, Xstrata Copper-Kidd Metallurgical Site, Xstrata Copper, Timmins, Ontario

Investigation of the Arc Erosion Behaviour of W-Cu Composites K.-H. Tseng, Department of Mechanical Engineering, Far East University, C. Kung, Department of Computer Application Engineering, Far East University, T.-T. Liao, K.-Y. Chen and D.-P. Han, Department of Mechanical Engineering, Far East University

Droplet Solidification of Impulse Atomized Al-0.61Fe and Al-1.9Fe H. Henein, Department of Chemical and Materials Engineering, University of Alberta, Edmonton, Alberta, V. Buchoud, École des Mines de Nancy, Parc de Saurupt, Nancy cedex, France, R.-R. Schmidt, Stiftung Institut für Werkstofftechnik, Bremen, Germany, C. Watt, Department of Chemical and Materials Engineering, University of Alberta, Edmonton, Alberta, D. Malakho, Department of Materials Science and Engineering, McMaster University, Hamilton, Ontario, C.-A. Gandin, CEMEF UMR CNRS-ENSMP 7635, École des Mines de Paris, Sophia Antipolis, France, G. Lesoult, École des Mines de Nancy, Parc de Saurupt, Nancy cedex, France, and V. Uhlenwinkel, Stiftung Institut für Werkstofftechnik, Bremen, Germany

ABSTRACT Thermogravimetric oxidation tests were carried out on Bessemer mattes containing copper, nickel and sulphur to investigate the feasibility of high temperature fluid bed roasting. It was not possible to heat the nickel-copper sulphide particles in an inert gas since the discrete particles would melt before reaching the required temperatures, resulting in large liquid droplets. The sulphides were therefore heated in air, leading initially to sulphate formation and oxidation of metallics, followed by sulphate decomposition and sulphide oxidation. It was found that below 900ºC the oxidation kinetics were too slow for any practical application. Above 1050°C, the copper-nickel oxide calcine starts to agglomerate due to sintering. In the suitable operating range from 900ºC to about 1050ºC the rate of oxidation was found to increase with increasing temperature. ABSTRACT The Kidd Creek smelter of Xstrata Copper employs the Mitsubishi Process. The present paper focusses on the slag and matte chemistry of the smelting furnace (S-Furnace) and the cleaning furnace (CL-Furnace). In particular, the slag chemistry in each of these furnaces was investigated using the Factsage™ software to better understand the impact of slag and matte compositions on the slag liquidus and the oxidic copper content of the slag. In order to perform the calculations to the required degree of accuracy, all degrees of freedom for each system were fixed with respect to actual industrial parameters such as the slag, matte and gas phase compositions for each furnace. The results are presented and discussed with respect to the current operation of the S-furnace and ideas for potential improvements are also identified. ABSTRACT In practical applications, silver-based composite materials have been used for high load bearing or high class contact materials. However, composites such as CdO-Ag and silver-based SnO2, TiO2 and ZnO are not economically feasible due to toxicity concerns and cost effectiveness. On the other hand, copper matrices are widely used for electrical contact applications in a diverse range of fields. In this study, particle-reinforced copper (W-Cu and TiC-Cu) composite powders were fabricated using a novel electroless copper plating process. Electrical contacts made of pure Cu and the Cu matrix powders were employed for dynamic electrode tests. The specimens were subjected to 1,000 and 10,000 arc breakings to study the effects of arc erosion on the contacts as well as their make-and-break life. Results show that the contacts made of pure Cu had the greatest loss of mass and the shortest life while the W-Cu composites preserved most of their mass; in addition, the W-Cu composites with finer W particles (1 mm) outperformed the rest of the composites. ABSTRACT Al-0.61wt%Fe and Al-1.9wt%Fe alloys were atomized in helium and nitrogen atmospheres, using impulse atomization. It is found that assuming that the eutectic is composed of a-Al and Al4Fe phases, the undercooling is about 10ºC and 17ºC for the 0.61 and the 1.9 wt% Fe alloys. The maximum solubility of Fe in the primary a-Al phase is 0.068 wt% and 0.12 wt% in the 0.61 and 1.9 wt% Fe alloys and the eutectic is found at 3.1 and 5.5 wt% Fe for these two alloys, respectively. Calculated cooling rates using the metastable values of the phase diagram for each alloy showed that the cooling rates ranged from 20 to 10,000 K/s. The measured cell spacing l, was linked to the cooling rate CR according to the equation l= B SCR-n where B and n are constants, depending on the composition of the alloy. Good agreement was found between the experimentally determined coefficients B and n and those calculated from the coarsening model proposed by Kurz and Fisher [1]. Excerpts taken from abstracts in CMQ, Vol. 49, No. 3. Subscribe—www.cmq-online.ca November 2010 | 91

technical abstracts CIM JOURNAL Toward optimum value in underground mine scheduling B. Maybee, Curtin Graduate School of Business, Perth, Australia, L. Fava, Symbioticware, Sudbury, Ontario, P. G. Dunn, Curtin University of Technology, Perth, Australia, S. Wilson, Mine Advantage Inc., Toronto, Ontario, J. Fitzgerald, Scotia Capital, Toronto, Ontario

Influence of extraction process and coagulant addition on thixotropic strength of oil sands fine tailings W. G. Mille, WorleyParsons Services, Perth, Australia, J. D. Scott and D. C. Sego, University of Alberta, Edmonton, Alberta

Review of mining practices at depth at Agnico-Eagle’s LaRonde mine F. Mercier-Langevin, Agnico-Eagle Mines Ltd., Cadillac, Quebec

ABSTRACT The scheduling of underground mining activities is a complex task that must simultaneously satisfy a large number of constraints. A schedule optimization tool (SOT) for underground mine planning is described and its use for investigating strategic decisions is illustrated through a case study. The main components of the SOT include (a) a genetic algorithm that searches for optimal schedules, (b) guidance for the application of heuristic rules, and (c) sliding, which implements just-in-time development. Findings indicated that preliminary scheduling performed before invoking the SOT, intended to provide a good starting point for the search, did not ultimately lead to higher value schedules. RÉSUMÉ Le séquencement des activités minières souterraines constitue une tâche complexe qui doit répondre à de nombreuses contraintes simultanément. Un outil d’optimisation du séquencement (SOT) pour la planification souterraine est décrit et son utilisation pour analyser les décisions stratégiques est illustrée par une étude de cas. Les principales composantes du SOT comprennent (a) un algorithme génétique qui recherche des séquencements optimaux, (b) des lignes directrices pour l’application des règles heuristiques et (c) la construction par poussage, qui met en œuvre le développement juste à temps. Les résultats démontrent que le séquencement préliminaire effectué avant de faire appel au SOT, ce qui devait fournir un bon point de départ pour la recherche, ne conduisait pas en bout de ligne à de meilleurs séquencements. ABSTRACT The influence of using different extraction processes (caustic versus non-caustic) on the thixotropic strength of oil sands fine tailings is examined, as is the influence of adding a coagulant to caustic fine tailings. The thixotropic strength of fine tailings at large void ratios manifests itself as a bonding or gel strength that has been widely noted both in the laboratory and in the field. This gel strength has a significant influence on preventing the initial consolidation or settlement of fine tailings. Differences between the fine tailings’ thixotropic strength development are explained based on their physical and chemical characteristics. RÉSUMÉ L’influence de l’utilisation de différents procédés d’extraction (caustiques p/r non caustiques) sur la résistance thixotropique des fins résidus de sables bitumineux est étudiée, en plus de l’influence de l’ajout d’un coagulant aux résidus fins caustiques. La résistance thixotropique des résidus fins à de grands indices de vides s’exprime par une force de liaison ou de gel qui a été bien reconnue, au laboratoire et sur le terrain. Cette résistance de gel a une influence significative sur la prévention de la consolidation initiale ou du tassement des résidus fins. Les différences entre la résistance thixotropique des divers résidus fins sont expliquées en se basant sur leurs caractéristiques physiques et chimiques. ABSTRACT Agnico-Eagle’s LaRonde mine is one of the deepest mines in Canada. Ground conditions in the deeper levels can be very challenging, ranging from hard and brittle, to soft and squeezing. As a result, rock mechanics and ground control practices have had to evolve considerably to accommodate progressively deeper mining activities. This paper focuses on the deeper levels of mines and how the difficult ground conditions encountered there have influenced the mining strategy. The first section examines ground control practices and support systems in highly stressed, poor quality rock. The evolution of level layout is also presented. Finally, improvements in stope sequencing are reviewed. RÉSUMÉ La mine LaRonde d’Agnico-Eagle est l’une des mines les plus profondes au Canada. Les conditions de terrain aux niveaux les plus profonds peuvent poser d’importants défis; en effet, le roc peut varier de dur et cassant à mou et plastique. Par conséquent, les pratiques de mécanique des roches et de contrôle du terrain ont dû évoluer considérablement pour correspondre aux activités minières de plus en plus profondes. Cet article porte sur les niveaux miniers les plus profonds et sur la manière dont les conditions difficiles de terrain ont influencé la stratégie minière. La première section examine les pratiques de contrôle du terrain et les systèmes de soutien dans le roc de piètre qualité soumis à de fortes contraintes. L’évolution de l’aménagement des niveaux est aussi présentée. Finalement, les améliorations dans le séquencement des chambres d’extraction sont analysées.

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

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November 2010 | 93

voices from industry

Breaking new ground in B.C. Aboriginal relations By Zoë Younger, vice-president, corporate affairs, Mining Association of British Columbia

ritish Columbia’s mining sector is on the cusp of a renaissance. Several new mines have opened or are in construction, while other major projects are in final stages of regulatory approval. Driven by the demand from emerging markets, strong commodity prices have spurred a renewed interest in the province’s major commodities — steelmaking coal, copper, gold and molybdenum. If all goes well, the sector is poised to grow by some 30 per cent in the next five years. B.C.’s renaissance is clearly driven by its greatest strengths: a solid geoscience database, low-cost power, skilled labour, good infrastructure and one of the most competitive tax jurisdictions in North America. The province is also known for some significant challenges — perhaps the greatest of these is navigating the quagmire of Aboriginal issues. However, there is now growing optimism that we are headed in a new and positive direction in this area due to some bold new initiatives by industry and the province. British Columbia is different from the rest of Canada. Land claims here remain largely unsettled. The courts continue to rule on the nature and extent of Aboriginal rights, and with each decision, new expectations are created on all sides about the nature of Aboriginal interests and the mechanisms and depth of consultation required from governments and industry. First Nations in B.C. have long asserted that Aboriginal title, which is claimed the province over (and some due to overlapping claims), means that First Nations are in a position to decide on the kinds of activities that take place on the land and collect a share of the revenues generated by the development of the resources. Disagreements with both levels of government on these issues have been the root cause of many confrontations, lengthy delays and lost opportunities, with industry often the “ham in the sandwich,” left trying to advance projects through direct negotiations with First Nations communities. The concept of having First Nations benefit directly from resource developments in their traditional territories has been evolving over the last decade. This year, for the first time, groundbreaking resource revenue-sharing

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agreements have been concluded between the province and three First Nations communities involving two new mining projects: the Tk’emlups and Skeetchestn Indian Bands (New Afton) and the McLeod Lake Indian Band (Mt. Milligan). Through these agreements, the province will share a portion of the mineral tax paid by the mines with these First Nations. In the first agreement between the province and Skeetchestn Indian Bands, the two participating First Nations will share 37.5 per cent of the mineral tax in connection with the New Afton Mine. The province estimates the financial benefit to be $30 million for the two communities over the life of the mine (expected to be 12 years). The McLeod Lake agreement is linked to the Mt. Milligan project and provides for 15 per cent revenue sharing for the band, worth approximately $35 million to the McLeod Lake Band over the life of the mine. Negotiations with other bands for other new mines or major mine expansions are in progress. There is no legal requirement for the province (or industry, for that matter) to share revenues, nor does the new revenue-sharing policy affirm or deny rights and title claims. However, revenue sharing is a meaningful way to build relationships and align the economic interest of government, proponents and the participating Aboriginal communities in the success of a mining project. Environmental issues, jobs, training and community benefits will continue to be at the forefront of negotiations between companies and communities, but government-togovernment revenue-sharing agreements will set a new stage for successful and collaborative negotiations. Industry is optimistic about the positive influence these agreements will have on Aboriginal relations and the competitiveness of the B.C. mining sector with other jurisdictions. The province is showing the rest of the country, and indeed the world, that relationships that have been riddled with conflict and confrontation in the past can be redefined based on respect, collaboration and a common interest in the socio-economic well-being of communities. It is hoped that as more agreements of this kind are concluded, Aboriginal community support for mining will increase and that to First Nations, as much as nonAboriginal communities, building a mine in an area will come to represent the socio-economic healing and growth that is desperately needed in so many communities. CIM

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