Slideshare: Maximizing Value-Add of Mining Developments

Maximizing Value-Add of Mining Developments Innovative Opportunities to Meet Changing Expectations Karen Chovan, Enviro Integration Strategies Janice Zinck, Natural Resources Canada Bryan Tisch, Natural Resources Canada CIM ESRS February 8, 2018

Productivity =

Value Derived Time, Money & Effort Invested

1 = Break Even

5 = Maximum Value

Storyline Mining Realities Opportunities Fewer Challenges, Lower Spend, Greater Value! “ New” Views

Shifts

Spending & Risks

Realities of Mining • A LOT of Materials Management • Unique & Variable – No “One-Size Fits All” • Long Term Stability Challenges • High Risk, Poor External Perceptions • High Costs at all Lifecycle Stages

$$ Front End Spend •

Deposit Delineation & Characterization

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Extraction Sequencing & Optimization

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Processing Experiments & Pilots

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Geochemical & Impact Analyses - Wastes

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Baseline Environment Studies

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Stakeholder Engagement & Approvals Processes

$$ Management Spend •

Siting, Modelling & Design of Waste Treatment, Handling & Containment Systems

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Construction, Maintenance & Closure Requirements of Waste Containment Systems

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Water Management Systems

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Lifecycle Environmental Monitoring Infrastructure and Program Implementation

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Financial Assurance Updates & Regulatory Reporting

Photo credit: http://www.mining.com/wp-content/uploads/2016/02/11.jpg

A Need to Innovate “Delay of Projects: $25-30Bn for Social-enviro Issues”

Business Risks Increasing

Progressive Incremental Shifts • Optimizing Extraction, Blasting, Comminution • Processing & Material Handling Innovations • Energy & Water Efficiencies & Recovery • Real-time Use of Big Data & IoT, Automation

Risks of Tailings Mgmt…

• Dr. Andy Robertson, on the rising risks of tailings management…

increasing 20X, every 1/3 century! lower grades = more volume, = longer, higher dams, = greater footprint • Unknowns about long-term performance of massive containment infrastructure & incremental changes to tailings over time…

More Drivers to Change…

• Putting operational decision making into hands of front-line employees…

without ALL the context • Increased transparency requirements • Societal drive towards a circular economy

How can we Reverse Risk Trending?

A N ew Pe

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X 0 1 R y b

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g n i t a u l a v e- e

S A W

!

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Less waste = less cost Leaner development

Smaller footprint Progressive closure

Lower risk!

Shared costs and risks Supportive stakeholders

Faster permits Increased ROI

Greater value for all‌ But What IS Waste Anyways?

What is of Value?

What’s in Your Ore body?

• Multiple ores, different grades?

• REEs? • Industrial Minerals?

• Low Grade Residuals…

Waste Valued with Fresh Eyes What’s in Your Waste?

• Granite. Slate. Limestone.

• Gravel & Sand • Feldspars, Clays

The Times of India estimates that the illicit market for sand is worth around $2.3bn a year...A 2014 report by the United Nations Environment Programme estimates [sand and gravel] account for up to 85% by weight of everything mined globally each year.

Photo credit: http://www.ejolt.org/2014/08/building-an-economy-on-quicksand/

Critical Elements in Mine Wastes

Source: “ Reprocessing of mining waste: Combining environmental management and metal recovery?� , Bellenfant et al., Mine Closure 2013

Residual Ores Recovery Tailings re-processing examples

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Go Gold Resources – gold & silver - Mexico

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Century Bull – zinc – Queensland, AU

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Kimberley Ekapa Mining JV – diamonds – Kimberley, SA

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DRD Gold Limited – gold – Johannesburg, SA

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Lonmin PLC - platinum - Johannesburg, SA

http://gogoldresources.com/ http://www.mmg.com/en/Investors-and-Media/News/2017/02/28/170228-New-life-for-Century.aspx https://www.petradiamonds.com/our-operations/our-mines/kem/ http://www.drd.co.za/ http://m.miningweekly.com/article/resilient-lonmin-delivers-sturdy-output-extracts-cash-from-tailings2018-01-22/rep_id:3861

Waste to Product Conversion Byproducts Extraction, Conversion Examples

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Minerals Research Laboratory extracts various industrial minerals from tailings wastes, and other wastes such as incinerator ash

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Orbite processes red mud, fly ash and other waste streams to produce alumina, rare earths and rare metals, as well as other valuable materials

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Ferrock TM uses CO2 and various iron-bearing waste streams: 5 times stronger & more flexible than concrete

http://www.orbitealuminae.com/English/applications/waste-monetization/default.aspx https://www.buildabroad.org/2016/09/27/ferrock/

Gensource Potash Corp • Selective Dissolution w/ Enhanced Crystallization Recovery • Reduced Infrastructure & Engineering Risks • Product Pre-sold & Direct Shipped in Bulk

Shifting to Lifecycle, Proactive Planning • Risk-Based Approach • Modifications for Expansion • Collaborations for: – Abandoned sites – Closing sites – Operating sites!

Example:

– Goldex Mine

Value from Synergies

In Virginia, over 2.3M tons of abandoned waste - GOB coal – has been fed to a circulating fluidized bed hybrid energy plant

Source: https://www.dom.com/about-us/making-energy/coal-oil-andgas/virginia-city-hybrid-energy-center

Shared Land & Infrastructure • Solar &/or Wind Power • Agriculture / Forestry • Medicinal Plants or Fish Farming?!

Photo: http://www.solarreserve.com/en/solutions/mining-industry

Shared / Post Infrastructure Use • High-Tech Laboratories • Underground Data Storage

Photo: https://www.snolab.ca/science/

Post-Mine Land & Infrastructure Tourism – Golf, Biking, Gardens, and more…

Customer Partnerships & JVs • Product pre-sales • By-product creation

• Shared &/or repurposed infrastructure

• Development costs

• Future land-use

Call to Action… “ We are literally swimming in a sea of unlimited possibilities... and you will only see what you’re looking for!”

- Darren Hardy, The Compound Effect

Is your property as Productive as it could be?

Photo credit: Powderruns via VisualHunt / CC BY

Collaborate & Win, Together!

Let’s put our heads together.

Fresh eyes, more eyes will see more opportunities!

A collaborative network is stronger than a single mind.

Advancing Collaboration “ a time will come when customers may choose to only purchase from providers who have no tailings or water risks, or other similar things�

Carl Weatherell CMIC-CEMI + CLEER Supercluster

How do you do MORE WITH LESS? You do it DIFFERENT! Understand Systems Risks & Dependencies Introduce Lean and Green Strategies Facilitate Multi-Stakeholder Collaboration

Contact: Karen Chovan, MASc, PMP, PEng 306-270-1430 kchovan@envirointegration.com

www.envirointegration.com

EMMC Collaboration Strategy Pilot:

Mining Value from Waste Progress update

Š Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017

Validating the Strategy • Focus in three main areas: – Build a culture of innovation for a clear, collective and measurable target – Share resources and leverage existing strengths, tools and organizations.

– Support a culture of communication and collaboration © Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017

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December Workshop • Support for “Mining Value from Waste” concept • Four priority areas endorsed • Several Clean Growth proposals in preparation – CGP did not facilitate a collective proposal © Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017

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Workshop Highlights • Expand to include communities (Indigenous, local, investors), incentives, demonstration • Focus on liability reduction, by-product recovery not just metals • Need better data/models for liability • National leadership, holistic approach • Report to be released shortly © Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017

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Common objective (draft) Pan-Canadian effort to develop tools, technologies, and policies to de-risk and accelerate demonstration and full-scale waste reprocessing projects to reduce mine waste liability and provide value (jobs, resources, etc.) Š Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017

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Build the Network • Community space to share information on who’s doing what – To be formalized • Look for synergies and opportunities to collaborate • Use network to maximize interpretation, impact and facilitate innovation • Cooperative approach with other existing R&D programs • Share resources and facilities • Additional workshops / events – ESRS webinar, PDAC, CIM, RFG © Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017

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