cim magazine june/july 2010

CONTENTSCIM MAGAZINE | JUNE/JULY 2010 | JUIN/JUILLET 2010

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

NEWS 10 Lithium boom in South America Companies from around the world turn attention

to Andean plateau by C. Kroll

12 Hands-free, human-free haulage UBC researcher is tracking the mine site performance of automated vehicles by C. Baldwin

13 Don Deranger elected president of Learning Together First Nations groupwill pursue increased industry engagement to broaden Aboriginal involvement in the miningprocess by P. Caulfield

14 Too big to feed? Michael Chender discusses opportunities and limits to growth at CIMConference and Exhibition by P. Caulfield

15 Mining the future for immediate solutions Demand for in situ resource utilizationhas space agencies and mining technologists looking for shared solutions by M. Paduada

17 Regulatory realignment Deborah McCombe provides insider’s view on the proposedrevisions to NI 43-101 by D. Zlotnikov

UPFRONT 18 SymBotic relationship Open-platform monitoring

system designed to support the smooth, wireless exchangeof information by D. Zlotnikov

20 Navigating the advances in underground navigation The frontiers of robotic mapping beyond thereach of satellite technology by J. Marshall

22 Teck moulds its new leaders Internal development programs make the most of the human resources in house by S. Solomon

24 “Projects guy” gets down to work CIM PresidentChris Twigge-Molecey discusses the ambitious agenda forthe year ahead by R. Bergen

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CONFERENCE OF METALLURGISTS | OCTOBER 3–6, 2010

FEATURED MINEMINE EN VEDETTE 36 Farallon joins the neighbourhood Socioeconomics and “parallel-track” approach play

central roles at the company’s project in southwestern Mexico by D. Zlotnikov

40 Farallon : un nouveau voisin Rôle essentiel de l’économie sociale dans le développementde la mine G-9

June/July 2010 | 5

FEATURELOGISTICS/LOGISTIQUE 28 How reliable are your assets? A departure from running-time-based maintenance could

be the key to avoiding dreaded downtime by G. Woodford

34 Vos actifs sont-ils fiables? Les données et les modèles prédictifs réduisent le temps d’arrêtdes équipements mais l’intégration des systèmes tarde

28

COLUMNS 46 MAC Economic Commentary by P. Stothart 47 Supply Side by J. Baird 48 Standards by R. Holland, C. Waldie and L. Arsenault 50 Eye on Business by D. Prupas 52 HR Outlook by L. Forcellini 53 Canadians Abroad by H. Ednie 54 Vie étudiante par P. Groleau 55 Student Life 56 Safety by H. Ednie 58 Engineering Exchange by H. Ednie 60 Women in Mining by H. Ednie 61 First Nations by J.C. Reyes 62 Innovation by S. Katary 64 Mining Lore by C. Baldwin 90 Voices from Industry by T. Skinner

CIM NEWS 42 CIM Conference and Exhibition 2010

A roundup of key events at this year’s conferenceand trade show

66 Beyond the podium CIM Distinguished Lecturers season’s record-breaking success by R. Pillo

67 CIM M/E Society awards CentennialScholarships Students get a boost from theirlarger CIM family by M. Eisner

68 What does it take to be a good leader?Three young industry achievers claim their rewardsby M. Eisner

71 COM 2010 49th Annual Conference of Metallur-gists preliminary program

HISTORY 77 Nevada-type gold deposits (Part 1)

by R.J. Cathro

80 The beginnings of mineral processingresearch in Canada (Part 5) by F. Habashi

TECHNICAL SECTION 83 Canadian Metallurgical Quarterly 86 Exploration and Mining Geology 87 CIM Journal

IN EVERY ISSUE 6 Editor’s message 8 President’s notes / Mot du president 9 Letters 70 Welcoming new members 70 Obituaries 76 Calendar 89 Professional directory

36

June/July 2010 | 5

Opening up the lines of communication “The battery lifetime was 20 minutes, but that wasn’t really a bigproblem because you couldn’t hold that phone up for that long.”

~ Martin Cooper, inventor of the first practical mobile phone for hand-held use, which weighed one kilogram (2.2 pounds).

On April 3, 1973, Martin Cooper, a researcher andexecutive with Motorola, placed the first call on ahand-held mobile phone. The call, made just before

heading into a press conference at the New York Hilton,connected Cooper to his rival, Dr. Joel Engel, a researcherat Bell Labs. The two companies had been engaged in along race to produce the first portable mobile phone.

The competitive nature of that first cell phone conver-sation, essentially high-tech “trash talk,” set the tone forlater development. Since then, the race for wirelesstelecommunication dominance has become nothing shortof a marathon, with an ever-increasing number of com-

petitors attempting to create systems and devices faster and better than the next. Asimultaneous, and related, competition has sprung up on the systems technology front.

However, the very competitiveness that has spurred so much technological advance-ment has had its drawbacks, as manufacturers jealously guard their systems and tech-nology. Add to this a multiplying network of systems that are unable, or not permitted,to “speak” to one another, as well as a reluctance by companies to share data with themanufacturers, out of fear of the information landing in “the wrong hands,” and itbecomes harder to determine the “winners and losers” in this technology race.

In this issue of CIM Magazine, we take a look at some of the applications of wire-less technology in the mining industry, as well as the logistical implications of the lackof systems integration — in particular with respect to asset management.

In the feature article “How reliable are your assets,” regular contributor GillianWoodford explores how diagnostic data and predictive modelling can reduce equip-ment downtime, increase reliability and save money at today’s mining operations byproviding real-time warnings about potential breakdowns. At the same time, we dis-cover that a great deal of the data collected is rendered virtually useless because ofa lag behind other industries in integrating its data collection systems.

Be sure to check out the “President’s notes” by new CIM president Chris Twigge-Molecey on page 8 as well as a Q&A with him on page 24, in which he shares some ofthe priorities of his mandate in the coming year. We also provide a recap of some ofthe highlights of the annual CIM Conference and Exhibition, which took place inVancouver in May. By all accounts, the event was a spectacular success – an achieve-ment that is being drawn upon as plans are already well underway for next year’s eventin Montreal. Abstracts are now being accepted for the technical program, which prom-ises to be stronger and more extensive than ever. (See Call for Abstracts on page 65.)

Open, two-way dialogue is also integral to the success and evolution of CIMMagazine, so please keep your feedback and suggestions coming so that we can inte-grate your ideas into our future editorial. It is this type of knowledge exchange thatwill help propel CIM forward as a community for leading industry expertise.

Angela Hamlyn, Editor-in-chief


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

Section EditorsNews, Upfront and Features:Ryan Bergen, [email protected], CIM News, Histories and Technical Section:Andrea Nichiporuk, [email protected]

Technical Editor Joan Tomiuk, [email protected]

Publisher CIM

Contributors Luc Arsenault, Jon Baird, Louise Blais-Leroux,Correy Baldwin, R.J. Cathro, Peter Caulfield, Heather Ednie,Marlene Eisner, Lindsay Forcellini, Philippe Groleau, FathiHabashi, Robert Holland, Shannon Katary, Cristina Kroll,Joshua Marshall, Mike Paduada, Robbie Pillo, Dianne Prupas,Juan Carlos Reyes, Tim Skinner, Sam Solomon, Paul Stothart,Craig Waldie, Gillian Woodford, Dan Zlotnikov

Published 8 times a year by CIM855 - 3400 de Maisonneuve Blvd. West Montreal, QC, H3Z 3B8Tel.: 514.939.2710; Fax: 514.939.2714 www.cim.org; Email: [email protected]

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This month’s coverRio Tinto Alcan employee securing front wheel hub inheavy machinery workshop at East Weipa bauxitemine. Photo courtesy of Rio Tinto, Christian SprogoePhotography

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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.

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president’s notes

It is an honour and a pleasure to be taking on the leader-ship of CIM at a time such as this. The Institute is in greatshape with a modernized governance structure now in place,a solid financial base and a range of vibrant activities unfold-ing across the country. We clearly owe past president MichaelAllan, the outgoing Council and the National Office staff alarge debt of gratitude for steering the Institute through theturbulence of 2009 so successfully.

It was great to meet so many of you at the CIMConference and Exhibition in Vancouver, and what an event itwas! The setting was spectacular and the conference enjoyeda record turnout. Especially gratifying was seeing the contin-ued growth of Mining in Society and the impact it had on over6,600 school children and teachers. I extend our congratula-tions to the whole Vancouver organizing team.

Looking to 2010-11, we have a full schedule ahead withseveral major events: Uranium 2010 in Saskatoon in August;the Conference of Metallurgists in Vancouver in October(incorporating Lead-Zinc 2010 and co-organized with TMS);and Copper 2010, co-organized by MetSoc, in Hamburg in

June. This lineup is a testa-ment to the global technicalleadership that we have cometo expect from CIM.

The coming year will be abusy one, with initiatives to bothstrengthen and expand CIM. Isat down with the editors ofCIM Magazine to speak aboutwhat lies ahead. You can findthat discussion on page 24.

This edition of the maga-zine focuses on logistics, par-ticularly maintenance and com-munications, which are keychallenges for any of our facili-ties. It is astonishing to see the level of innovation in a sector weoften take for granted, — innovation we ignore at our peril.

I trust you will find ample value in this issue as well as inthe many projects slated for the year ahead.

Chris Twigge-MoleceyCIM President

C’est un honneur pour moi, mais aussi une source dejoie, que de diriger l’ICM à un tel moment. L’Institut a le ventdans les voiles, grâce à l’adoption d’une structure de gou-vernance modernisée, à ses solides assises financières ainsiqu’à une gamme d’activités dynamiques qui ont lieu dansl’ensemble du pays. J’exprime ici ma vive reconnaissance auprésident sortant Michael Allan, au conseil sortant ainsi qu’aupersonnel, qui ont réussi à tenir les rênes de l’Institut durantune année 2009 tumultueuse.

J’ai été ravi de pouvoir rencontrer plusieurs d’entre vousà l’occasion du Congrès et Salon commercial de l’ICM àVancouver. Quelle réussite! Un nombre record de personnesy ont participé dans un emplacement spectaculaire. La crois-sance soutenue de l’activité « Les mines dans la société »,ainsi que ses répercussions sur plus de 6 600 enseignantset élèves, ont été particulièrement gratifiantes. Toutes mesfélicitations à tous les membres de l’équipe responsable del’organisation du Congrès et Salon commercial de Vancouver.

Si nous regardons du côté de l’exercice 2010-2011,notre horaire chargé comprend plusieurs activités impor-tantes : Uranium 2010 à Saskatoon en août, la Conférencedes métallurgistes à Vancouver en octobre (comprenant

Plomb-Zinc 2010 organisé en coopération avec TMS) ainsique la réunion internationale « Cuivre 2010 » organisée encoopération avec la MetSoc à Hambourg en juin. Ce pro-gramme illustre le leadership technique mondial auquel l’ICMnous a habitués.

La prochaine année sera chargée, en raison d’initiatives quivont à la fois renforcer et accroître les activités de l’ICM. J’airencontré les responsables de CIM Magazine afin de discuterde l’avenir. Vous pouvez lire cette discussion à la page 24.

Ce numéro est axé sur la logistique, c’est-à-dire les activ-ités détaillées d’une exploitation. La maintenance et les com-munications sont des enjeux cruciaux pour toute entreprise.Il est étonnant de voir la capacité d’innovation d’un secteurqu’on considère comme acquis; sous-estimer cette innova-tion peut être risqué. J’espère que vous trouverez un grandnombre de choses intéressantes dans ce numéro, de mêmeque dans nos nombreux projets prévus pour la prochaineannée.

Chris Twigge-MoleceyPrésident de l’ICM

A busy and exciting year ahead

Une année chargée et emballante à l’horizon

June/July 2010 | 9

lettersSeeking sanction and remedy

To the readers of CIM Magazine,I appreciate this opportunity to provide

some clarifications with respect to the arti-cle “CSR grows up” in the May issue of CIMMagazine (p. 35) in which I am quoted.

I have noted, in this article and else-where, that the mining sector should bejoining civil society groups in seekingsolutions to the urgent need for mecha-nisms by which people living in weakgovernance zones who are damaged bymining projects can seek sanction andremedy. The government’s CSR Strategydoes not address this urgent issue. Bill C-300, while it cannot address the needfor remedy, or reparation for damagesdone, does at least address the issue of theneed for sanction by making some forms of Canadian gov-ernment support for extractive projects contingent on theircompliance with internationally recognized environmentaland human rights standards.

With regard to mining practices and gov-ernance in Canada, I am quoted as saying“mining companies are still allowed todump tailings into pristine lakes here butnot in rivers.” In fact, as a result of Schedule2, which was added to the Metal MiningEffluent Regulations in 2002, mining com-panies operating in Canada may seek per-mission to dump mine tailings and wasterock into both lakes and rivers, as well aswet lands, as long as these natural waterbodies are dammed off before they aredestroyed. While this is better than thepractice of some Canadian mining compa-nies that operate overseas and dump uncon-tained mine tailings into river systems or

the ocean, it is still a far cry from environmental best practice.

Catherine CoumansMiningWatch Canada

CIM is expanding and moving into a newoffice space to serve you better.Our new mailing address, effective

July 19, 2010, will be:

L’ICM s’agrandit et emménage dans de nouveaux locaux pour mieux vous servir.Notre nouvelle adresse postale, en vigueur

dès le 19 juillet 2010 sera :

CANADIAN INSTITUTE OF MINING, METALLURGY AND PETROLEUM (CIM)L’INSTITUT CANADIEN DES MINES, DE LA MÉTALLURGIE ET DU PÉTROLE (ICM)

3500 boul. de Maisonneuve Blvd. ouest/West • Suite 1250 • Westmount, QC • H3Z 3C1

The CIM NationalOffice is relocating!Le bureau national de l’ICM déménage!

Much of the world’s lithium supply is on the highAndean plateaus of South America, and companies fromaround the world, expecting elevated demand, are stakingtheir claims to the vast deposits in Chile, Bolivia andArgentina.

Partnered with Australian mineral exploration com-pany Orocobre Limited, Toyota recently invested in land inthe northern Argentine province of Jujuy to extractlithium for car battery manufacturing. Orocobre reportedToyota will pay $4.5 million to complete a feasibility study— which should be ready for the fall of 2010 — andacquire 25 per cent equity interest in the venture.

Orocobre already has a project operating in the JujuyProvince, in Salar de Olaroz, as well as 60,000 hectareson 10 salars, or salt flats, in the Argentine provinces ofSalta, Jujuy and Catamarca. According to Orocobre, pro-duction in Salar de Olaroz is expected to start in 2011.In addition, the company will acquire approximately41,000 hectares of land just outside the Salar de Olaroz site.

As noted in a release from the company, the SalinasGrandes area shows the highest grade average lithium andpotassium results from any sampling program inArgentina, with average grades of 1,409 milligrams oflithium per litre (mg/L) and 16,394 mg/L potassium. In

newsLithium boom in South AmericaSurging interest in mineral-rich salt flats

By Cristina Kroll


The Salar del Hombre Muerto region in Argentina, the location of FMC Lithium's facility

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total, they are contiguous extensions of the existingresource of 350 million kilolitres of brine at 800 grams oflithium per kilolitre.

FMC Lithium, a subsidiary of FMC Chemical, ownsa lithium facility in Salar del Hombre Muerto and hasbeen producing lithium products in Argentina since1998. “Argentina provides the base lithium buildingblocks for nearly all of our lithium sales and down-stream production,” said Sallie Hendrick, marketingcommunications specialist for FMC Lithium. “To ensurewe can meet the future needs of our growing customersand maintain our share of a growing market, FMCLithium has embarked on expansion plans at its salar inArgentina, with projected completion expected in late2011.” The initiative will increase the company’slithium brine and carbonate capacities by about 30 percent, she said.

Chemetall Foote is also very active in the Latin Ameri-can lithium scenario with its La Negra production facility,located in the Antofagasta region in Chile. The plant hasbeen functioning since 1984, producing lithium carbonatebased on the natural brines from the Atacama salar.

Finally, SQM lithium operations include the brineslocated in the Salar de Atacama region in Chile. In thislocation, the company produces lithium carbonate, potas-sium chloride, potassium sulphate, boric acid and magne-sium chloride. This company estimates thatthe reserveslocated in the Salar de Atacama, with the current produc-tion levels, would last at least 30 more years. CIM

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Near the Jujuy frontier, in the province of Salta, the localgovernment confirmed a number of companies are invest-ing in lithium: Ekeko and Li3 Energy sondea in Salar dePozuelos; Li One, Orocobre, Minera Exar, Compañía Minera Solitario Argentina, Latin American MineralsArgentina, Rodiña and Bolloré Group. French conglomer-ate Bolloré is working with the mining firm Eramet, whichhas stated “the consortium continues to examine variousprojects, including a project for a complete industrial chainfor lithium in Bolivia.”

The energy company Li3 is also in the act, havingrecently announced purchase agreements to acquire therights of the Puna Lithium portfolio. The portfolio consistsof four mining properties located in Puna, known to haveresource potential for lithium and potassium. Amongthem, the Centenario salar has been confirmed to returnvalues of up to 1,500 mg/L lithium, and the Rincon salarreported an estimated 1.4 million tonnes of lithium. Thecompany claims that, combined with Li3’s other holdingsin Nevada and Peru, the newly acquired land in Argentinaand Chile makes Li3 one of the largest holders of prospec-tive lithium acreage in the world.

Also, with an eye on the growing market for car batter-ies, the Canadian auto parts giant Magna has investedsome $7 million initially in exchange for land fromLithium Americas, a Canadian company that specializes inlithium extraction in the northern Argentine Puna Plateau.Magna also recently announced that it intends to build twolithium-ion battery plants to supply electric vehicles.

Bolivian potentialBolivia has the world’s largest lithium reserves —

nearly 40 per cent of the worldwide supply — althoughthe reserves remain unexploited. This is about to change,as the Bolivian Mining and Metallurgy Ministry ispreparing a new model facility for lithium manufactur-ing in the Salar de Uyuni. The 12,000-square-kilometresalt flat on the Bolivian high plateau holds nine milliontonnes of lithium reserves, according to the country’smining ministry.

The government’s plan is to obtain 40 tonnes permonth of lithium carbonate, potassium sulphate, as wellas other products. Along with the Bolloré Group, Japanesemanufacturer Mitsubishi has shown interest in exploringthe Salar de Uyuni to build lithium batteries, said the gov-ernment.

Bolivian president Evo Morales is looking for a partnerto exploit 50 per cent of the iron and lithium reserves inthe Cerro Mutún. The Bolivian vice-minister of productiondevelopment, Héctor Córdoba, has met with executivesfrom Hyundai in South Korea, reported Spanish newsagency EFE.

Longstanding producersAccording to a report of the International Lithium Cor-

poration, the three largest South American lithium produc-ers are SQM, Chemetall and FMC Chemical.

June/July 2010 | 11

news

What could be safer than putting awell-trained driver behind the wheelof a 300-tonne open-pit haulagetruck? How about no driver at all? Nota human driver, at any rate.

Although autonomous technologyhas been around for a long time,autonomous haulage trucks have onlybeen in use for a couple of years, andonly by a handful of companies in afew mines, including Rio Tinto’s WestAngelas Mine in Australia andCodelco’s Gabriela Mistral Mine inChile. Mining giant BHP Billiton,together with Caterpillar, began a pro-gram in 2008 to automate minehaulage trucks, driven by concern fordriver fatalities.

In spite of its promise, the industryremains cautious about this technol-ogy and is waiting to see the resultsfrom mines using these trucks.

Juliana Parreira at the Universityof British Columbia has been study-ing the potential benefits of usingautonomous haulage trucks in openpit mines and is offering a tool forproject managers who are consideringthis technology. She uses ExtendSim— a simulation software package that

Hands-free, human-free haulageExploring the potential of autonomous trucks

By Correy Baldwin

helps project managers define theimprovements in their mining sys-tems if they replace manual haulagetrucks with autonomous ones. She isstudying a number of key perform-ance indicators (KPIs) that includesafety, productivity, fuel consump-tion, tire wear, and operating andmaintenance costs.

Autonomous haulage trucksremove operators from high-risk areasin transporting large quantities of min-ing material, but do they improve productivity?

AchievementsCommitment to sustainability

Roca Mines’ MAX molybdenum mine has won the 2009 Mining and Sustain-ability Award, presented by the Honourable Randy Hawes, Minister of State forMining, British Columbia, and Pierre Gratton, president of the Mining Associ-ation of British Columbia.

The award recognizes commitment to mining and mineral development thatmeets the growing needs of all communities while maintaining a healthy envi-ronment and vibrant economy for present and future generations. ScottBroughton, president and CEO of Roca, accepted the award on behalf of allemployees, contractors, suppliers, local communities and management whohave all helped to make the mine a success.


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“All manual processes have varia-tions,” said Parreira, “and manual systems are going to be irregular interms of speed and position on ahaulage route. But an autonomoustruck doesn’t need to stop and it canmaintain a set speed. It can become amore constant process.” Not only doesa truck not have to take lunch breaksor go home at the end of a shift, its per-formance can be set to optimum break-ing and accelerating points, reducingfuel consumption and tire wear.

It sounds ideal, but autonomoustechnology is expensive and extensive,requiring infrastructure such as com-munications towers, data networks,precise GPS and the automated systemson the trucks themselves, whichinclude highly sensitive object-avoid-ance sensors. “The cost-benefit analysisis complex and it is important that thetechnology be properly characterized,”said Parreira. Only after careful study todefine the extent of positive improve-ments and cost reductions can a mineconsider applying the technology. “Itdepends on the particular mine and sit-uation which may require adaptation toaccommodate an autonomous system.The overall utilization and mechanicalavailability increase together with thelife of the equipment to compensate forany deterioration in cycle time.” CIM

news

A push for broader exposure,increased activity and industryengagement will define the futurefor Learning Together, said theorganization’s new president, DonDeranger. In April, Deranger,Vice-Chief of the Prince AlbertGrand Council in Saskatchewan,was elected to a two-year term aspresident of the not-for-profitorganization whose purpose is toenable more Aboriginal communi-ties in Canada to benefit frommineral exploration and minedevelopment.

Deranger’s election was a part ofLearning Together’s annual generalmeeting, which took place at theorganization’s recent two-dayannual conference in Vancouver.

Deranger said he wants to increasethe number of events and workshopsheld by the organiztion. “LearningTogether is not known equally wellacross the country and we have towork to change that,” he said. “FirstNations communities across Canadaface common challenges where min-ing and exploration are concerned. Weneed to learn more about the industryand mining needs to take the concernsof First Nations seriously.”

Also elected to the board wereKim Rainville, treasurer; Lana Eagle,vice- president; Chief Theresa Hall,secretary; Glenn Nolan, past presi-dent; as well as Jack Blacksmith, Dar-rel Beaulieu, John Cutfeet and MaryBoyden.

Learning Together executive direc-tor Juan Carlos Reyes said 130 peopleregistered for the conference. Morethan 40 First Nations communitieswere represented, with delegates from Quebec, Ontario, Manitoba,Saskatchewan, Alberta, BritishColumbia, the Northwest Territories,

Don Deranger elected presidentof Learning Together First Nations organization marks fifth anniversaryat Vancouver conference

By Peter Caulfield

Yukon and Nunavut. Two Sami, whoare Nordic indigenous people, trav-elled from Norway to attend the con-ference.

Also in attendance was Jean Vavrek,CIM executive director. This is thefourth year that a representative of CIM,which has been increasing its level ofsponsorship of the event, has attended aLearning Together conference.

“It’s a good format — open, smalland intimate — with a diverse group,”Vavrek said. “It’s a terrific opportunityto see how other people perceive themining industry and to build up rela-tionships over the years. It’s a learningexperience for everyone.”

Reyes explained that the confer-ence followed a tried-and-true for-mat. “Our conference is the sameevery year,” he said. “We have twoworkshops to teach [the mining]industry about First Nations and twoworkshops to teach First Nationsabout the industry. [In addition, thereare] five case studies for industry andcommunities to learn from others.”

Past president GlennNolan said LearningTogether brings Aboriginalcommunities together totalk about their experi-ences, both good and bad,related to mining and tolearn how to seek a greaterbenefit from mining in theirterritories.

“According to the latestNRCan information bulletin,there are 1,200 projects,from early to closed stage,located near or adjacent toan Aboriginal community inCanada,” he said. Nolanexplained that he came upwith the idea for LearningTogether about 10 years ago.

“I realized companies had a significantinformation gap on best approaches toworking with communities,” he said.“But, more importantly, I saw a signifi-cant lack of access to meaningful andrelevant information related to allstages of the mining cycle for Aborigi-nal communities.”

He added that because of this gap,First Nations communities oftenrefused to discuss anything until theyunderstood the process.

“This led to a difference in objec-tives between the companies advocat-ing the development of a mining claimand the communities that needed tobetter understand the issues related toa project, including the various oppor-tunities and the possible environmen-tal impacts before moving forward,”Nolan explained.

The first Learning Together confer-ence was held in 2006. Prince Albertwill be the host of next April’sevent.

www.learning-together.ca

CIM

June/July 2010 | 13

Learning Together’s newly elected president Don Deranger is also Vice-Chiefof the Prince Albert Grand Council and on the board of governors forCameco.

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news

Very large companies might beginto fall out of favour with investors,suggested mining consultant MichaelChender at the recent CIM Confer-ence and Exhibition’s Managementand Finance Day.

Chender, of the Halifax-basedMetals Economics Group, was one ofseveral speakers who addressed thetopic of global outlook and discussedrecent trends in financing and acquisi-tions activity. He began by noting thatfinancings have recently reboundedfor base metals and gold. In addition,the number of initial public offerings(IPOs) has grown since the beginningof 2010.“Although the IPOs havetended to be small so far, there aresome big ones in the works,” headded.

In addition to IPOs, other sourcesfor money that have been coming intothe market include China’s state-backed companies; sovereign wealthfunds, such as Singapore’s TemasekHoldings; and private equity. “A lot ofmoney has been flowing into miningfrom cyclically dormant sources,”Chender said. “Some funds haveshifted from three per cent in com-modities to five per cent or more. Andnew funds have started up to invest inmid-tier companies.”

He added that many investors havea growing appreciation of commodi-ties as a long-run investment becausethey are disappointed with the per-formance of some financial assets.“There has been a big, long-antici-pated jump in acquisitions in the pasttwo months,” Chender said.“Investors are feeling comfortableabout the prospects for mining andthey expect the recovery to continue.”

But is now the best time to be mak-ing acquisitions? “Nobody knowswhat the future will bring and nowmight be the top of the market,”Chender said. “Whether the acquisi-tions pay off depends on whether

Too big to feed?Mining industry trends explored at CIM Conference and Exhibition

By Peter Caulfield

prices keep going up.” Chender saidmost acquisitions don’t pay offbecause they’re made at or near thetop of the cycle. “Few acquisitions aremade at the bottom of the cycle,which is the best time,” he explained.“Most get made once a robust recov-ery is well underway and investors arefeeling more confident.”

In addition to acquisitions, invest-ment dollars are flowing into oldprojects.“Because discovery rates are

down, old projects — those that havehad jurisdictional or environmentalproblems — are being recycled,”Chender said. “A lot of projects arestarting to look attractive again. Manyare very large, however, and comewith big capital costs.”

The trend towards bigger compa-nies and projects might change in thefuture, he argued. “Size has its advan-tages, such as being able to takeadvantage of economies of scale andgreater investor visibility, but sizecomes with a price, too. As compa-nies get larger, the number of projectslarge enough for them to economi-cally take on shrinks. Some big com-panies may become like dinosaurs —increasingly hard to feed.”

Because smaller projects are over-looked by big companies, andbecause investors today have accessto large amounts of sophisticatedinformation, Chender said smallercompanies, developing smaller proj-ects at favorable returns, could attractmore attention in the future. “Somebig companies might even eventuallyhave to consider dividing themselvesinto smaller entities,” he added.“Nothing grows without limit.”

www.metalseconomics.com

CIM


Giving backRio Tinto Alcan will contribute $3 million to five cooperative research anddevelopment projects in Quebec. Set up jointly by the Natural Sciences andEngineering Research Council of Canada (NSERC) and Rio Tinto Alcan, theprojects will be run by the Université du Québec à Chicoutimi, the Universitéde Sherbrooke, and the École Polytechnique de Montréal. Four projects will bedirectly linked to the study and improvement of various aspects of the electrol-ysis process (the Hall-Héroult process), while the fifth will focus on carbonstores in the boreal forest.

“These joint efforts will contribute to training young scientists and ensuringthat we have a new generation of highly specialized staff, which Quebec soci-ety and major corporations need to be able to rely on as they pursue theirdevelopment,” said Jean Simon, president, Primary Metal - North America, RioTinto Alcan.

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June/July 2010 | 15

Canadian astronaut Chris Hadfield touched down in Sud-bury in April to strengthen theconnections between terrestrialmining technology and futurespace missions. It marks ongoingcollaborations between theCanadian Space Agency and theCanadian mining industry.

In situ resource utilization(ISRU), the technological capabil-ity to obtain resources beyond ouratmosphere, has the astronauticsindustry gravitating towardsCanada’s mining centres.

Norcat (Northern Centre forAdvanced Technology), a Sud-bury-based non-profit organiza-tion that supports innovation andcommercialization for small- andmedium-sized enterprises, has been aleader in creating partnerships across awide array of sectors to work on ISRU.Norcat invited mining industry repre-sentatives to the technology briefingwith Hadfield to encourage new part-nerships between mining and space.Among those in attendance wereAndrew Scott, director of mininginformation technology and automa-tion at Barrick Gold, Marc Boisson-neault, vice-president of XstrataNickel’s Greater Sudbury operations,and Charles Graham, director ofCAMIRO’s mining division. The brief-ing included a presentation about Nor-cat’s work in international field testsconducted earlier this year, as well as aguided tour of equipment in Norcat’shigh-security prototype developmentcentre.

“Norcat has done some really inter-esting, cutting-edge work, not only insupporting the mining industry, butalso the future mining industry,” saidHadfield, who has previously served aschief of robotics for the NASA astro-naut office at the Johnson Space Cen-ter, and is now chief of InternationalSpace Station operations.

Mining the future for immediate solutionsBroad applications for space mining technology

By Mike Paduada

Resources of interest range fromoxygen and propellant manufacturedin space for outbound and return tripsof spacecraft, to minerals in asteroidore bodies.

“It sounds sort of crazy, but thereare enormous mineral resourcesbeyond our own atmosphere,” Had-field explained. “Eventually, we willmine them. We just haven’t developedthe technology yet. So, who’s going todevelop it, and why shouldn’t it be acountry like Canada, or an organiza-tion like Norcat or a company that itsupports? We are leading the world inthose areas on earth.”

Even though Hadfield and Norcathave their eyes on the stars, they weregrounded enough to discuss how ISRUwork is relevant to mining today. Nor-cat director of innovation DaleBoucher, Hadfield and several of themining executives discussed applica-tions to current mining issues.

“We believe we can take this kindof capability, shrink it into somethingsmall, and fit it in some of the tightenclosures that are required in themining industry,” said Boucher. “Byreducing the size of equipment so thatit’s always operating in ore, we could

mine a much higher grade and go afterresources that are not available today.”

“We need to take care of the miningthat’s going on right now and keepprofitable,” said Hadfield. “At the sametime, I think it is important to looktowards the future and the directionwe should be going in.”

Hadfield praised Norcat’s contribu-tion to the recent field tests that tookplace at a temporary site in Hawaii ear-lier this year. He conducted geologicalsimulations at the site during the fieldtest. The overall deployment, led bythe Canadian Space Agency, was aninternational effort that broughttogether NASA, the German Aero-space Center and about 20 organiza-tions, including Norcat. Theiractivities used prototype technologiesto simulate resource prospecting, sitepreparation, resource extraction andsite logistics that could be conductedin future tele-operated space missions.

“When we arrive [at an extraterres-trial surface], we need to have thetools that will allow us to make itworthwhile,” explained Hadfield.“That’s what Norcat and the compa-nies that it supports are working on.When we do get there, we’re going toneed to set up operations.”

Boucher claimed the field work onthe volcanic terrain was a welcomechallenge for Norcat. “It was dusty, itwas windy, it was hard — it was ascreaming success,” he said. “Weproved that we could realistically go toa remote environment and generateproducts such as oxygen or water fromthe dirt that’s lying on the surface.Using that water, we could produceoxygen, which we used to fire a smallrocket engine. And we produced hydro-gen to power up a fuel cell that drove anexcavator for the mining operations. Itwas a very successful deployment andwe’re very proud of it.”

www.norcat.org/innovation-space.aspx

CIM

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Dale Boucher (left) shows Chris Hadfielda prototype planetary drill.

An Introduction to Cutoff Grade Estimation: Theory and Practice in Open Pit and Under-ground Mines

Cutoff grades are essential in determining the economicfeasibility and mine life of a project. Learn how to solvemost cutoff grade estimation problems by developingtechniques and graphical analytical methods; about therelationship between cutoff grades and the design ofpushbacks in open pit mines; and the optimization ofblock sizes in caving methods.

Instructor: Jean-Michel Rendu, Consultant, United States • Date: September 8-10 • City: Montreal

Geostatistical Mineral Resource/Ore ReserveEstimation and Meeting the New RegulatoryEnvironment: Step by Step from Sampling toGrade Control

Learn about the latest regulations on public reporting ofresources/reserves through state-of-the-art statisticaland geostatistical techniques; how to apply geostatisticsto predict dilution and adapt reserve estimates to thatpredicted dilution; how geostatistics can help you catego-rize your resources in an objective manner; and how tounderstand the principles of NI 43-101 and the SME Guide.

Instructors: Michel Dagbert, Geostat Systems Int., Canada,Jean-Michel Rendu, Consultant, United States, and RoussosDimitrakopoulos, McGill University, Canada • Date: September13-17 • City: Montreal

Mineral Project Evaluation Techniques and Applications: From Conventional Methods to RealOptions

Learn the basics of economic/financial evaluation tech-niques, as well as the practical implementation of thesetechniques to mineral project assessments; how to gain apractical understanding of economic/financial evaluation

principles; and how to develop the skills necessary toapply these to support mineral project decisions.

Instructors: Michel Bilodeau and Sabry A. Abdel Sabour, McGillUniversity, Canada • Date: November 8-11 • City: Montreal

Upcoming 2011 Seminars

NEW — Certification in Ore Reserve Risk and MinePlanning Optimization

Spread over a period of four months, this four-weekcourse is designed for busy mining professionals whowish to update their skills and knowledge base in modernmodelling techniques for ore bodies and new risk-basedoptimization methodologies for strategic mine planning.Gain practical experience by applying the followinghands-on concepts and technical methods: methods formodelling ore bodies; stochastic simulations, case studiesand models of geological uncertainty; and demand-drivenproduction scheduling and geological risk.

Instructor: Roussos Dimitrakopoulos, McGill University, Canada •Date: Starts in May • City: Montreal • Info: www.mcgill.ca/conted/prodep/ore

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

Strategic Risk Management in Mine Design: FromLife-of-Mine to Global OptimizationInstructors: Gelson Batista, AMEC, Canada; Roussos Dimi-trakopoulos, McGill University, Canada; and Gerald Whittle, Whit-tle Consulting, Australia • City: Montreal

news

June/July 2010 | 17

site visit to ensure the original report isstill up to date.

The new rules would lighten theload while retaining the same chain ofaccountability. To achieve this,McCombe said, the Qualified Personwould be signing off on technical dis-closure in the technical report andaccompanying disclosure when thereport is initially filed on SEDAR. Theproposed revision would also eliminatethe requirement for updated consentsfrom the Qualified Person who first pre-pared the report. The burden for ensur-ing the report is up to date would shiftfrom its author to the mining companyand its in-house Qualified Person.

Who constitutes a “Qualified Per-son” under the Instrument, particu-larly with respect to the requirement ofmembership in a professional associa-tion may also change.

“Right now, in addition to the Cana-dian professional associations, there is aprescriptive list of recognized foreignassociations and designations the Qual-ified Person must have, as part of NI43-101; this list is currently included inthe Instrument and is therefore securi-ties law,” McCombe said.

Regulatory realignmentAn expert perspective on proposed NI 43-101 revisions

By Dan Zlotnikov

CALL 1-877-245-7473 FOR OUR BROCHURE minesitesolutions.com

Heavy up on value.

This made the Instrument largelyunable to respond to evolving profes-sional associations and certificationin the field; amending the list wouldhave required changes at the legisla-tive level every time a new profes-sional association had to be added.

Under the new rules, as the list offoreign associations will now be partof the Companion Policy and guid-ance not law, McCombe explained,the regulators “will be able to modifythe list as new professional associa-tions are set up,” streamlining theprocess.

The CSA is soliciting commentfrom all interested parties, with theamendments available on the websitesof the Alberta, British Columbia, NewBrunswick, Ontario, Quebec andSaskatchewan securities commissions.The comment period closes on July23rd.

Be sure to read the “Standards”column on page 48 for additionalinformation on the proposed NI 43-101 revisions.

www.securities-administrators.ca

CIM

In April, the Canadian SecuritiesAdministrators (CSA) completed ayear-long revision process of NationalInstrument 43-101. So what were someof the issues the revisions addressed?Deborah McCombe, executive vice-president at geological and miningconsultancy Scott Wilson Roscoe Pos-tle Associates, Inc., and a major con-tributor to CIM Special Volume 56,Mineral Resources/Reserves and Valua-tion Standards, pointed to the sectiongoverning consents of Qualified Per-sons as the most significant change inthe proposed revisions.

Currently, McCombe explained, theauthor of the technical report wouldhave to sign off on any new publicallyreleased document referencing thatreport. Mining companies have facedthe problem of getting in touch with theauthor, sometimes years after the fact.This has been especially acute in time-sensitive situations, such as limitedfinancing windows or acquisition talks.The changing reality at the property is afurther complication, McCombe added.The Qualified Person who authored thereport — and who bears legal responsi-bility for its accuracy — may require a

In the complex, harsh world of mining, the SymBot, a newequipment monitoring platform that communicates bysatellite, cellular network and Wi-Fi, is built tough and,as the name suggests, SymBot plays well with others. The SymBot platform, designed to comply with open

standards for industrial automation and systems interoper-ability, is a durable, energy-efficient hardware/softwaredevice that can be applied to monitor equipment informa-tion such as location, pay load data and emissions oroperating environments.

The device hails back to 2008 when its parent company,Symboticware, received grants from the Ontario and federalgovernments to develop what was an R&D project into afull-fledged commercial product.

Above ground, a partnership was formed between Sym-boticware, junior mining firm Baffinland Iron Mines, theCentre for Excellence in Mining Innovation (CEMI) andLaurentian University. The project centred on a weathermonitoring system on north Baffin Island. The challengewas not just extreme weather; the company’s co-founder andpresident, Kirk Petroski, explains that the monitoring sta-tions are accessible by helicopter only, which makesin-person site visits difficult, costly, and subject to thevagaries of the local weather.

Hands on/hands freeTo make site visits as infrequent as possible, Sym-

boticware managed to cut power consumption on the

SymBotic relationshipEquipment monitoring system provides two-way communication in the harshest environments

SymBots down to as little as 10W, and used solarpanels to keep the batteries topped up, makingthe unit almost completely self-sufficient. Also,SymBots’ satellite uplink means that the cus-tomers no longer have to visit the station toretrieve the collected data. But most important isthat the satellite connection provides two-waycommunications and the SymBots’ operationalparameters can be remotely controlled.

“SymBots allow the researchers or industrypersonnel to check the status and conditionsaround the station in real time and to change theparameters as needed,” explains Symboticware’smarketing and sales manager Bora Ugurgel. “So, ifyou’re sampling every five seconds, you canchange that to every two hours in the wintermonths.”

The utility of up-to-the-minute informationprovided by these weather stations is clear, saysBaffinland Iron Mines’ manager of sustainabledevelopment Matthew Pickard. “The data isimportant to us because it can tell us if we are

expecting weather up there, but it can also be useful fromthe operational side. We have proposed mine infrastructureacross a 250 kilometre strike width, so you don’t want a hel-icopter taking off and then turning around and coming backbecause it ran into bad weather. That can amount to thou-sands of dollars in costs to no useful end. Once we confirmthe SymBots can work independently in the long, dark, coldwinters of North Baffin Island, we hope to expand their useinto other remote monitoring functions such as water qual-ity monitoring.”

The Baffin Island project — which has since expanded toinclude Peregrine Diamonds, another advanced-stage explo-ration company — is going to be revisited this summer witha second phase. This time, Symboticware will be introducinga hybrid solar-wind power generation system to keep theSymBots charged up, but the software side will also seeenhancements.

“We’re trying to reduce costs for our customers,” saysUgurgel. “Satellite data transmission costs are about $2 perkilobyte. With our in-house data compression system, we’dbe able to compress the data by 70 to 80 per cent, signifi-cantly reducing airtime costs.”

In its underground projects, Symboticware sought outwhat Petroski describes as early adopters — mines in whicha wireless communications infrastructure has been set up.

“The timing was paramount to the success of where weare today,” he adds. “Given that there was a decline in theeconomy and mining really took a hit, there was a period


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when a lot of the automation guys, forexample the automation superintendent atVale Inco, were looking for ways to do busi-ness better and to bring in a lot of newtechnologies.”

The SymBots are currently being used byboth Vale Inco and Xstrata Nickel to moni-tor mobile equipment — most notably thetwo companies’ load-haul-dump (LHD)vehicles. Since the SymBots can draw powerdirectly from the LHD machines they aremonitoring, power management is not asmuch of an issue in this context, says Pet-roski. On the other hand, connectivity andconstant vibration were a concern. Therewere also more direct threats to effective operation — beinghit by large rocks, for instance.

“When you’re placing the SymBot on an LHD, you haveto look in hard spots to keep your sensors safe and lasting aslong as you can,” explains Ugurgel.

Enhanced information exchangeThe need for mobile equipment monitoring is not new,

and Symboticware had to contend with a wide range ofexisting solutions and devices already in place, which, infact, was an advantage for the SymBot. As operator needs fordata collection grew over the years, so did the number ofspecialized solutions in the driver’s cab — each with its owndisplay, control system, and proprietary data standard. Thegrowing trend for crowded cabs led to a push for open stan-dards — common data formats that would allow for greaterinteroperability between all the disparate systems. WhenSymboticware approached them, both Vale Inco and Xstratawere already moving towards greater use of IREDES — theInternational Rock Excavation Data Exchange Standarddesigned to smooth the transfer of information betweenmining machines and office computers. It is no coincidencethat the SymBots supported IREDES, along with OPC UA —a complementary, communication interface.

The idea is not to replace existing, proprietary systems,says Petroski, but to step in where these systems have gaps.Two projects currently being worked on at Symboticwareare being demonstrated on Caterpillar 1700G LHDmachines, “based on Caterpillar’s proprietary data system,”says Petroski. “In the context of these projects, we’re devel-oping a protocol translator — taking Caterpillar data,running it through a translator and pushing it up to the sur-face in the format that the clients wanted; in this case anIREDES-based format.”

An open-platform solutionLook inside the SymBot enclosure and you are not

going to see much in the way of custom parts. Sym-boticware tries to use as many commercial off-the-shelfparts as it can, says Petroski. In a marked contrast to the

proprietary trend, Symboticware’s software OPIS(TM)(Open Platform for Intelligent Systems) facilitates an openplatform environment, meaning anyone with the skill anddesire can alter the programming, or write their ownapplication for the platform.

This was the factor that compelled CEMI to partner withSymboticware, explains Allan Akerman CEMI’s R&D pro-gram director: “With closed systems you are tied in with onesupplier; with open systems you can use the best of any sup-plier.” Added to that, he says there is also a cost advantageto meeting the single IREDES requirements rather than mul-tiple standards. “The majority of mining equipmentmanufacturers are now on board with IREDES,” he says, andmore and more mining companies are committing to thesingle standard as well.

“If I could use the analogy, we’ve developed the iPhonefor the mining industry, and you’re loading applications ontothis device,” says Petroski. “The money is in the applica-tions. So we’re developing our own applications, but we’realso integrating third-party applications into our system andproviding that to our users as per their needs.”

With five SymBots operating “in the wild” and 16 alreadyon order for this summer’s projects, Symboticware is still ayoung, but clearly growing, company. Petroski says heexpects the company’s eight-person roster to grow to 12within a year, mostly adding technical sales and supportstaff. Capitalizing on the platform’s flexibility, the companyhas a number of new applications planned for the SymBot,ranging from an open WiFi-RFID (radio-frequency identifi-cation) reader and tracking system to a portableenvironmental monitoring station, which can be movedfrom spot to spot as needed, without requiring costly instal-lation of fixed equipment.

For the time being, Symboticware is not looking toexpand into other industries, although Petroski readilyacknowledges that there are many other promising areas forthe SymBot. “We want to succeed and excel in these twomarkets before we tackle others,” he says.

www.symboticware.com

CIM

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SymBots have a number of equipmentmonitoring applications including load-haul-dump vehicles.

In surface mining, the introduction of the satellite-basedglobal positioning system (GPS) has had a remarkableimpact, possibly representing one of the most sweepingtechnological revolutions in the past 30 years. Together

with advances in wireless data communications, GPS hasmade material tracking and fleet management systemsnearly commonplace in surface operations.

Currently, however, no directly comparable technologyexists for accurate and real-time positioning of mobileequipment underground. Yes, there are partial solutions, buta breakthrough product available to mining companies thatoperate underground has not arrived.

Technology woesBecause satellite GPS signals cannot usefully penetrate

obstacles like rock, one practice is to place many uniquelyidentifiable radio frequency devices (e.g., RFID tags/receiversor Wi-Fi access points) throughout the mine. This methodrequires that the wireless devices be placed at known locationsso that equipment can be roughly monitored by registeringsensed devices with a central database of device locations byway of an underground communications network.

Navigating the advances in underground navigationStraight talk on mobile equipment positioning and robotic mapping

Although this method may be suffi-cient for some purposes (such asentry-point tracking), it lacks many ofthe advantages that the satellite GPSprovides on surface. Underground,only occasional positioning informa-tion is provided — whenever a vehiclehappens to be near a device. Installinglarge numbers of tags for more precisepositioning is not an elegant solution.

Positioning truth from fictionUnfortunately, common misconcep-

tions exist about the state-of-the-art inunderground mapping and vehicle posi-tioning. The first is that radio signals(e.g., Wi-Fi signals) can directly provideGPS-like positioning in undergroundmines. There have been some promis-ing advances in this area, but even themost recent research suggests that innon-trivial environments — wherethere are obstacles that prevent directline of sight to all devices — the prob-lem has yet to be fully solved. Three ormore overlapping radio signals arenominally required, which is not really

practical for underground mines, and problems such assevere multipath, shadowing and interference have plagueddevelopers. Nevertheless, this approach does show promise.

A second misconception is that inertial measurementunits (IMUs), which consist of accelerometers and gyro-scopes, can alone be used for global positioning andmapping. This method is commonly known as “dead reck-oning” and works by integrating motion measurementsover time to estimate position and orientation. However,measurement errors are also integrated, resulting inunbounded estimation uncertainty over time. Early navalvessel navigators knew this very well. When used for map-ping, dead reckoning makes it impossible to determine withany accuracy when a vehicle has returned to a previouslytraversed area.

Efforts to improve IMU measurements with visual data(e.g., from lasers or cameras) have a long history in therobotics community, such as in planetary rover navigationand mapping, yet the error accumulation problem oftenremains. There are some very accurate IMUs on the market,but their high cost makes them impractical. And, ultimately,estimation uncertainty still grows, just more slowly.


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Researchers from Carleton University and MDA Space Missions at the CANMET Experimental Mine in Val-d’Or,Quebec, where they recently carried out field testing of some concept robotic mapping and undergroundpositioning technologies (left to right: Jamie Lavigne, Unal Artan, Joshua Marshall and Stefan Radacina-Rusu).

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In this work, we have concentrated on the problem of cre-ating a planar grid map — also called an “occupancy grid” —of a large-scale underground mine by using dead reckoningcombined with a scanning laser rangefinder. First, informa-tion about the environment is collected, which is then used inan offline map generation process. We have been successful atsolving the map consistency and positioning problems withan optimization approach that relies on matching laser scans.

Preliminary field testing has taken place in various envi-ronments during the past year as we now approach theobjective of delivering a GPS-like underground navigationproduct for underground mining. There is growing confi-dence that our system will have the potential to improvesafety, contribute to the advancement of remote and auto-mated vehicle systems, and enable the design anddeployment of unique and truly useful asset managementsystems for underground operations.

www.mine.queensu.ca

CIM

Another misunderstanding is that the technology existsfor accurately triangulating underground position by usingrock-penetrating very low frequency (VLF) signals. VLFsignals have a wavelength of between 10 and 100 kilome-tres. To the best of our knowledge this has yet to bedemonstrated and thus, at present, we rate this possibilityas inconclusive.

Finally, some believe that existing autonomous miningvehicle products already solve the robotic mapping andpositioning problems. Yes, the industry has seen great suc-cess in the development of autonomous trammingtechnologies (although, as a designer, the author may beslightly biased in this regard); however, these systems havenot explicitly required a solution to the positioning problemwith dead reckoning. This is because they are in fact trainedto follow a particular route irrespective of whether the routecrosses itself or not. In other words, the nature of theautonomous tramming task requires that the vehicle per-form only local positioning, not fully global positioning.

While advances in these areas may be realized in thefuture, technology consumers should be alert to the differ-ence between credible advances and what may simply turnout to be wishful thinking.

Map-based global positioningSuppose that we could create an accurate “map” of an

underground drift network, one detailed enough to includeeven bumps in the walls and other pertinent information.Could we devise a technique for estimating a vehicle’s posi-tion and orientation within that map? Would this be goodenough? Recent developments in robotic mapping and map-based underground positioning by researchers, includingthe author, from MDA Space Missions in Brampton, Car-leton University, and now Queen’sUniversity, funded in part by theOntario Centres of Excellence and theNatural Sciences and EngineeringResearch Council of Canada, hasfocused on this question.

Such a system would hinge on theability to create an accurate and glob-ally consistent map. As describedearlier, if only dead reckoning wereused to build the map, then inconsis-tencies in the map would inevitablyoccur. This would be especially appar-ent in a large environment, such as anunderground mine level. The resultingmap would be “inconsistent” because itwould contain multiple points on themap that represent the same point inthe actual environment. This wouldoccur when the sensors used to acquiremapping data return to an already traversed location.

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About the author Joshua Marshall,P.Eng., is an assistant professor in TheRobert M. Buchan Department of Miningat Queen’s University, where he studiesadvanced mining systems and robotics.He is also an adjunct research professorin the Department of Mechanical andAerospace Engineering at CarletonUniversity. He holds two patents related tomining machine automation and haspublished on the subjects of mobilerobotics and equipment automation.

When you are looking to hire new managers, youhave two options: hire from the outside or hirefrom within. Teck Resources Limited has electedto take the latter route as much as possible.

“There’s an advantage to working with people who arefamiliar with our vision, our priorities, our strategy and whohave experience in our business,” says Patricia Dillon, Teck’sdirector of employee communications and engagement.

Teck, like other mining companies, recently found itselffacing two crucial human resources issues. First, many man-agement positions are currently filled by employees nearingretirement age, and second, an industry-wide downturn adecade ago pushed a number of mining workers into otherindustries, creating a generation gap that has left relatively few40-year-olds in line to take over those management positions.

Recognizing the need created by those factors, Teckelected to provide its current employees with specializedtraining so that they could one day fill the leadership postsfrom within the company. And so Teck’s ambitious develop-ment programs were initiated.

Emerging leadersIn 2007, Teck created its Emerging Leader Program

(ELP) to train employees in management practices and

Teck moulds its new leadersDevelopment from within pays dividends

leadership, and to teach them about the company’s opera-tions. Employees are selected for the course from alldivisions of the company — from the pits to the corporateoffices — based on recommendations by their supervisors.The program has graduated a total of 29 employees since itsinception. One such employee, Andrew Davies, who holdsa PhD in geology, was a senior technical expert in Teck’sNorth American mineral exploration division when he wasselected to be part of the first Emerging Leaders class.

After only a month into the program, Davies was thrustinto a leadership role and promoted to general manager ofexploration — a job on the commercial side of the companyrather than the technical one to which he had becomeaccustomed. “The ELP process was kind of a live trainingground,” he says.

The program brings a group of workers together for fivedifferent learning modules over the course of a year.“Within the modules, there were lots of 30-minute brain-storming exercises in small groups,” says Davies. “Andthere was assigned reading prior to each session that triedto get you to do some strategic thinking. It was about howyou go from being a technical specialist to being in abroader role with greater complexity and depth, thinkingabout bigger strategic implications.”


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The first two generations of the Emerging Leaders Program. A third cohort begins the program later this year.

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Others in Davies’s ELP cohort graduated to senior man-agement positions at Teck as well. Two became generalmanagers of entire mines, one is now a vice-president ofthe company, and others are leading initiatives in differentareas of Teck’s operations. Last year, for example, a groupof ELP graduates were tasked with performing an in-depthreview of the company’s sustainability practices. Teck’snew Sustainability Working Group, of which Davies is amember, grew out of that review. “They look at us, in away, as potential change agents in the organization,” heexplains. “We have studied the challenges of the organiza-tion, and we have built a tremendous amount of verticalintegration.”

The fact that Teck put together a program as forward-thinking as ELP is a testament to the company’scommitment to developing its employees, says Davies. “It’sa powerful retention and development tool,” he adds. “Itwas a pretty profound experience. It opened my eyes topotential and opportunities that I never thought were inme, but others saw in me. It changed me, and I owe Teck a lot.”

Business Education ProgramComplementing the Emerging Leader Program is the

Business Education Program offered in partnership withSimon Fraser University. Since 2008, Teck has offered athree-year MBA program to employ-ees with identified leadershippotential. Currently, there are 24 stu-dents enrolled, all of whom areworking for Teck full time.

The program, which results in anMBA degree from Simon Fraser University upon completion, is cus-tomized to meet Teck’s needs. “Thecourses are selected to reflect Teck’sbusiness priorities and incorporateTeck case studies and issues anddata,” says Dillon. Courses offeredinclude: Ethics, Strategies for Sustainability, International Manage-ment, Operations Management,Managerial Finance, Business Strat-egy, and one called Applied StrategicAnalysis, which incorporates a finalproject.

Employees selected for the MBAprogram have their tuition paid infull by Teck, continue to work fulltime while attending six full-dayclasses per course, and completecourse assignments outside of work.

The current program is an exten-sion of the original BusinessEducation Program, which grants a

June/July 2010 | 23

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graduate diploma in business administration upon comple-tion, says Dillon. “We’d been offering GDBA courses sincethe late 1990s with great outcomes and so we had this pos-itive experience to build on.”

Developing successBoth the Emerging Leader and the Business Education

Program are beneficial in terms of retention and recruiting,says Dillon. “To know that your manager recognizes youand is prepared to recommend that the company invest todevelop your skills and give you a broader understandingacross a variety of business units — that absolutely is a verypowerful retention tool.” And it is that kind of career-advancement opportunity that attracts people to comework at Teck, she says.

So far, the company’s development programs haveproved popular among employees. Workers who havegone through the programs have particularly appreciatedreceiving personalized feedback on their performance in avariety of areas, including interpersonal skills, says Dillon.“At the end of the day,” she explains, “it’s not just techni-cal skills you need to be a good manager.” That is why Teckhas expended so much energy developing its own well-rounded leaders.

www.teck.com

CIM

CIM’s current president took the lead at an auspi-cious time. This year’s CIM Conference andExhibition 2010 in Vancouver, where Michael Allanpassed the torch to Chris Twigge-Molecey, enjoyed

an exceptional turnout with over 6,000 participants. Inaddition, there was an equally strong turnout for the three-day Mining in Society show. CIM Magazine spoke to thenew president to find out how to carry that momentumforward and what challenges lay ahead.

CIM: In Vancouver, plenary moderator Rex Murphy gave arousing defense of the mining industry. He pointed out that it“does things that are central to the world in which we live.”Do you believe the industry is doing a good job of portrayingthis?Twigge-Molecey: I think, as an industry, we do anappallingly bad job of telling the world how important weare to the civilization we live in. I don’t think many peopleunderstand the range of consumer goods and buildingmaterials — things that make our lives liveable — dependon the mining industry.

CIM: So then, what should we do about it?Twigge-Molecey: Public advocacy is not in CIM’s mandate.We leave that to the Mining Association of Canada (MAC).However, we have a responsibility to ensure the relevantfacts are available to support MAC. Proactively, CIM’s Min-ing in Society initiative is hugely important. It is helpingstudents understand where the mining business fits intoeconomic activity so that they grow up with a more

“Projects guy” gets down to workNew CIM president to apply a steady hand

balanced view of the importance ourbusiness. We do, however, have to bevery careful that we preserve ourintegrity; that we provide facts and notbe seen as trying to use those facts forany particular political purpose.

CIM: 2009 was a tumultuous year. How,in retrospect, did CIM handle it?Twigge-Molecey: CIM did extremelywell. There was a plan in place for theVancouver event, as well as variousother events throughout the year; theyall happened as planned, they all mademoney for us. So, one way or another,the approach of following throughwith our plans while being cognizantof the changes happening around usworked out well. There were certainlytimes when we were worried about

who would sign up for Vancouver, but that turned out tohave been misplaced concern.

CIM: Last year, as part of its strategic planning, CIM leadershipspent time revisiting the Institute’s organizing principles andcreated a “blueprint” to direct future growth. How can wegauge the fidelity of future activities to past values andachievements?Twigge-Molecey: Implementation of the blueprint is aprocess. The first step was to get the framework for ourvision, values and aspirations in place, which was done bya group from CIM’s Council. The next step is to engage theleadership of the societies and branches in that sameframework, who will then, in turn, need to engage themembers. It is a cascading communication program ratherthan a detailed action plan. At this point we’ve passed thefirst phase and are beginning to communicate more effec-tively with the societies and branches.

CIM: You’ve referred to yourself a “projects guy.” The corporateinformation technology redesign initiative is a major projectwith a lot of potential. How will CIM achieve that potential?Twigge-Molecey: Those in the projects business know thatthe way you get through one successfully is by clearlydefining the scope, the milestones, the budget and thenmonitoring progress. We need to track where we are ascompared to where we should be and then be ready to askourselves “what are we going to do about it?” The key is toproactively manage a project rather than let it flow underits own momentum.


upfrontQ & A b y R y a n B e r g e n

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The IT project is the biggest CIM has ever undertaken.It is a complete revamping of our infrastructure for thefuture. A lot of the services that we plan on providing themembership depend on that infrastructure. IT projects areinfamous for going over budget and over schedule, and wedon’t have the capacity to handle that if that happens. So itis essential that we stick to thebudget, scope and schedule.

CIM: You’ve spoken of cyber-member-ship as one means of achievingmembership growth. What do youimagine for this?Twigge-Molecey: CIM is aboutknowledge transfer; it is a commu-nity with a shared interest aroundmining, metallurgy and petroleum.There is a large number of people inour business around the world thatdo not have strong technical soci-eties to support them, who would bevery happy to tap into our knowl-edge base and to network with us ina variety of different ways. Cyber-membership seems a very goodopportunity to get those profession-als engaged. They may operate incountries where full fees are a lot ofmoney for them, but they would geta large percentage of the benefitsthrough the Internet, which we canoffer at a lower price.

CIM: How else can CIM extend its international reach?Twigge-Molecey: Conflicting conferences is an issue thatour international vice-president, Peter Lahucik, and hiscountry groups are facing head on. The North AmericanExtractive Metallurgy Council, which includes CIM’s Met-allurgical Society; the Minerals, Metals and Materials

Society; and the Society for Mining,Metallurgy and Exploration, has beenvery effective in this respect. Thethree are now deliberately coordinat-ing their conferences in NorthAmerica. We have also started coordi-nating our conferences with theSouth Africans and the Australians,but we have a way to go on that.

CIM: You have talked about strengthen-ing branches and societies. What willtell you that CIM is succeeding?Twigge-Molecey: We’ll be watching tosee if our membership and our reten-tion rates are increasing, becausepeople stick around if they are gettingvalue. For branches and societies, thesame criteria apply. The other crite-rion I’m focused on is the quality ofthe presentations at the technicalfunctions. The Canadian MineralProcessors Society and MetSoc haveexcellent material and there is no rea-son why that shouldn’t be ourexpectation for all societies. CIM

June/July 2010 | 25

upfrontQ & A

There is a large numberof people in our

business around theworld that do not havestrong technical

societies to supportthem, who would bevery happy to tap into

our knowledge base andto network with us in avariety of different ways.

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Executive networking: (from left to right)Francois Landry, Martin Poirier, CIMpresident-elect Chuck Edwards andChris Twigge-Molecey on the exhibition floor in Vancouver.

president-elect Chuck Edwards isalready pushing hard to have peer-reviewed papers for the 2011Conference in Montreal. I expect thatwe will have some, which is a step inthe right direction. That said, therewas a time when many of the technicalpresentations were limited to vendorpresentations, so we have come a longway in developing a world-class tech-nical program.

CIM: CIM is dedicated to supporting theCanada Mining Innovation Council(CMIC). Why is this engagement impor-tant?Twigge-Molecey: I’ve spent all myworking life on the innovation end ofthe mining and metals businessthrough the development and com-mercialization of new technologies.I’m a firm believer that one has tocontinue to innovate in a controlledway for a number of reasons —improving safety is a big driver, as areeconomics and environmentally sus-tainable technologies. Research turnsmoney into knowledge, but innova-tion turns knowledge into money. Wehave members on both sides of this equation, and CIMsupports CMIC in its interest to align their objectives and“bridge the gap.” CMIC can help ensure that there is aconsistent and collaborative framework that researchersare working within to avoid duplicating efforts. We alsoneed to be sure that researchers are doing things that havea prospect of contributing to the innovation requirementsthat will keep this country and our industry competitive.The CMIC, with the support of CIM, can help meet thatchallenge.

CIM: What will the continued development of the Centre forExcellence in Corporate Social Responsibility mean for CIMand the industry? Twigge-Molecey: It’s exciting that the federal governmentrecognizes that CIM has a role to play in this forum. Wesee it as an opportunity to lead internationally in terms ofCSR expertise, developing CSR resources that can bedeployed by mining companies anywhere in the world.The feedback I’ve had from both CIM members and non-members has been that it is a very positive initiative andthey are anxious for the resources that it will make avail-able. As many mining projects around the world arederailed by CSR-related issues, these tools, case studiesand disciplined thinking that we are making available willbe hugely useful.

CIM: Why did you join CIM originally andwhat advantage did it provide?Twigge-Molecey: When I was a youngmechanical engineer, working onsmelter projects, I was approached tojoin the non-ferrous pyrometallurgycommittee of MetSoc — I was honouredto be asked. Through that committee Igot involved in organizing conferencesand, once on the inside, the networkingopportunities with clients, suppliersand members — the people you need toknow to be effective in the industry —was very obvious.

CIM: How do we attract the newest gen-eration of students and youngprofessionals?Twigge-Molecey: If you are going afterthe young people who have alreadydecided they are interested in miningand metallurgy, the key is to make surethey stay in the business, and that’s noteasy. You have to manage the businesscycles and some companies do that bet-ter than others.

Also, there are a lot of people in ourbusiness who are not metallurgists, min-ing engineers or geologists. Mechanical,

electrical, civil and environmental engineers all go to differ-ent departments and they may not even think about miningwhen they are studying. To attract them is a different kind ofchallenge. We are starting to think about attracting studentsfrom these other fields to our university chapters. We willhave to give the initiative a year or so to take root, assessprogress and adjust our course accordingly.

CIM: One storyline in Vancouver was how CIM and its keyevents flourished despite the turbulence of 2009. What storydo you want to be able to tell next year at the Conference andExhibition in Montreal?Twigge-Molecey: It is clear we are heading into anotherperiod of economic uncertainty and commodity pricevolatility. Canada, as we found out last year, is betterplaced than many countries to withstand these shocks.This time next year, despite the turbulence globally, I hopeto be able to report on a year of continued growth in serv-ices, a growth in our international reach and influence, andupgraded technical publications, all despite the economicuncertainty. We look forward to celebrating a blockbusterconference and exhibition, which will include technicalstreams dedicated to iron ore and the environment in addi-tion to those focused on best practices, projects,innovation, people and communities, as well as financeand risk management. It will be an exciting year. CIM


upfrontQ & A

This time next year … I hope to be able toreport on a year ofcontinued growth inservices, a growth inour international reachand influence, andupgraded technicalpublications, all

despite the economicuncertainty.

COPPER 2010June 6-10, 2010Hamburg, Germanywww.cu2010.gdmb.de

MINING SOCIETY OF NOVA SCOTIA 123rd Annual MeetingJune 10-11, 2010 Cape Breton, NSwww.miningsocietyns.ca

URANIUM 2010August 15-18, 2010Saskatoon, SKwww.metsoc.org/u2010

CONFERENCE OFMETALLURGISTS(COM 2010)October 3-6, 2010Vancouver, BCwww.metsoc.org/com2010

LEAD ZINC 2010October 3-6, 2010Vancouver, BCwww.metsoc.org/COM2010/tp_lead_zinc.asp

MAINTENANCE ENGINEERING/MINE COPERATORS’ CONFERENCE (MEMO 2010)October 24-27, 2010Sudbury, ONwww.cim/org/memo2010

43rd ANNUAL CANADIAN MINERAL PROCESSORS OPERATORS’ CONFERENCEJanuary 18-20, 2011Ottawa, ONwww.cmpsoc.ca

CIMMAIN EVENTS

Mark your calendars!

CIM is keeping you busy over the comingyear with numerous opportunities forknowledge sharing, networking and learning how your business can operatemore responsibly.

CIM CONFERENCE& EXHIBITION 2011MAY 21 – 25, 2011 • MONTREAL, QC

www.cim.org/montreal2011

From the open skies to the open pit, predictive maintenance was first applied in the airline industry.

If it ain’t broke don’t fix it. Instead, find the worn out com-ponent that may break before it causes a catastrophicfailure to the whole machine. Mining’s traditional run-ning-time-based approach to asset maintenance isgradually giving way to a more sophisticated predictive

method that relies on algorithms and diagnostic dataobtained from equipment sensors to produce real-timewarnings about potential breakdowns.

The shift is already contributing to less downtime andimproved reliability. But experts say the mining sector lags

behind other industries in integrating its data collectionsystems, thereby rendering much of the data collected vir-tually useless, and stops companies from really reining inthe dreaded downtime that costs them hundreds of mil-lions of dollars each year.

Introducing errorOnce upon a time, the concept of long-term reliability

really did not exist. But, unlike their operators, machinesare not biological creatures. If they are well-maintained and


logistics

How reliable are your assets?Data and predictive models

are reducing equipment downtime, but system integration lags

By Gillian Woodford

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their parts replaced when worn out, they can theoreticallygo on for years and years without diminished performance.This rather revolutionary notion is actually not new, as itcomes to us from the engineers who developed theprocess called reliability-centred maintenance (RCM) forthe aviation industry in the 1950s and 1960s.

After World War II, the commercial air travel industrywas ripe for expansion. But crash rates were troublinglyhigh and very often caused by equipment failure. Thesewere believed to be due to equipment age and so time-based maintenance was ramped up. To everyone’s dismay,crashes actually increased.

The industry was frantic to fix the problem. After care-fully analyzing the crash data, aviation engineers quicklydiscovered that, in fact, only 11 per cent of airline equip-ment failures were due to age. Astonishingly, the highestproportion of failures actually occurred in new or recentlyrepaired equipment. They realized they needed to meticu-lously tease out each underlying factor behind the failuresin order to prevent new ones. Thus RCM was born. Its firstsuccess was the development of the Boeing 747 in theearly 70s.

Maintenance then and nowThese principles inform most of the predictive mainte-

nance programs used in today’s mining companies. Butmost operations are still using a combination of running-time-based and monitoring-based maintenance.

Traditionally, maintenance has been performed eitherwhen a breakdown occurs or scheduled after a certainnumber of running hours. However, as the aviation industryso starkly demonstrated, time-based maintenance is notnecessarily the way to go. In addition, this requires having

replacement equipment for use whenbroken equipment is in the shop — ahuge investment.

Predictive maintenance programshelp reduce these problems. “Youdon’t necessarily have the truck comein for traditional standard mainte-nance,” explains Malcolm Scoble, pro-fessor of mining engineering at theUniversity of British Columbia. “Youcan call it in when the part is reliablyobserved to be approaching failure,scheduled at a sensible and conven-ient time.” This is done using a combi-nation of wear-and-tear data comingfrom sensors and operator inspec-tions. Predictive models based on thatsame data can tell you when to fix asubcomponent. This takes less time,fewer parts and costs less than pullingthe machine out of service for a largecomponent repair, such as an enginewhen it is not warranted.

There are a variety of sources of data for reliability mon-itoring. The principal of these are sensors located on the

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Aerial view of a 45-tonne CAT haul truck laden with grade 1 armour stone (10 to 20 tonnes) destined for thebreakwater at the harbour in Madagascar. On either side of the truck are the various grades of rock that arestockpiled at the quarry.

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machines. Most heavy machinery used in mining now comes hardwired witha number of sensors to monitor things like vibrations and engine tempera-ture. Some have sensors that keep an eye on air filters; others monitor theoil and tires. “We’re offering vibration sensors as standard,” says Joe Helfrich,senior vice-president of surface mining products at equipment manufacturerBucyrus. He adds that the cost per sensor has gone down enormously in thelast few years.

Operator inspections are also key. At many companies, operators stillenter their inspection data on a paper check sheet, which is filed away after-ward. There are higher tech alternatives, such as asset performance man-agement company Ivara’s integrated system, which has operators usinghandheld devices instead of paper sheets to enter their inspection data. Thisis then transmitted wirelessly to the centralized system where it is crunchedwith the rest of the data to produce recommendations on when repairsshould take place. But users of this sort of approach are still in the minority.

Reliability in actionThe reams of data generated by these sources are handled in a variety

of ways by different companies. Many have developed pragmatic systems tomine data effectively.

At Vale, for example, “data is automatically collected based on operatorinput and system diagnostics,” explains Frank Catalano, assistant managerat the company’s Stobie nickel mine in Sudbury. The data is exported andanalyzed externally, much of it in partnership with Sudbury’s LaurentianUniversity.

The leader of this research partnership, Nick Vayenas of Laurentian’sSchool of Engineering, uses Vale’s data to create reliability models usinggenetic algorithms. For example, Catalano says, Vayenas looked at thecompany’s load-haul-dump machine fleet and determined the primarycauses for downtime. An improvement team was formed locally at the minesite to figure out how future failures can be prevented. “The teams brain-storm and put ideas into play and measure if they work,” says Catalano. “Ifnot, they try something else.” Vale has been collecting data for about adecade and launched its data monitoring system three years ago using a


Asset intelligence from consolidated data sources

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number of technology consultants. The system is nowstandardized across Canadian and UK operations.

A small number of companies have integrated theirdata monitoring and analysis systems and brought themin-house. Rio Tinto’s ongoing mine monitoring system is agood example. In 2004, Rio Tinto decided to tackle itsmaintenance problem head-on. The company estimatedthat through a combination of dispatching, asset healthand high-precision GPS improvement, it could provide netpresent value by US$100 million over 10 years, but thatfigure is widely seen as “a huge underestimation,” saysDan Adams, senior advisor in mine monitoring and controlat Rio Tinto.

In planning, Rio Tinto chose the technologies it wantedto use and then set about ensuring they were interopera-ble. Implementation often had to be customized to eachsite, based on its particular needs. Remoteness and tem-perature extremes (ranging from -50ºC in Labrador to40ºC in Namibia) added a further layer of complexity. Inmany cases, the vendors — Caterpillar, Modular Mining andMining Information Systems — had to go to great lengths

to make their systems compatible with technologies andenvironments at the various sites. So far, 20 mines areintegrated and others are at various stages of integration.

Remote controlThis approach has completely revolutionized the way

Rio Tinto approaches maintenance. “In the old days, you’ddetect a problem because smoke was coming out of amachine,” says Adams. “Now, if a subcomponent fails, we

June/July 2010 | 31

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From the open skies to the open pit, predictive maintenance was first applied in theairline industry. Inset: A laden truck deposits its load of ore into a pocket at the IronOre Company of Canada's Luce pit.

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At Rio Tinto, implementation of its system required ahuge range of expertise. As many of its sites are extremelyremote, just finding people to procure, install and supportthe base technologies like wireless servers was a mam-moth undertaking.

Vale encountered similar issues during implementationof its system. “Everybody’s busy; it’s hard to get peopleexcited that there’s something in it for them, and especiallystaying with it,” says Catalano. “We try to involve people indeveloping the system – that helps.” In terms of manpower,maintenance engineers were brought in when they first setup the system and they continue to run the remote controlcentres.

Ivara’s approach is to teach people at the mine how touse the system. They do not perform analysis for their cus-

tomers. The software can be managedby existing IT staff and no newengineers are needed to run it.


logistics

can identify it remotely.” He gives the classic example of ashovel failure. Previously, the operator would call in to sayhe was having a problem. The controller would tell him toreset the alarm. This would be repeated up to five moretimes until finally the operator saw smoke pouring out indi-cating catastrophic failure. “Now,” says Adams, “we find thereason behind it.”

The result has been both improved reliability and achange in priorities. “We prevent a lot of catastrophic fail-ures now,” he says, adding, “it’s become unacceptable tohave an engine fail, whereas five to 10 years ago that wanot the case.”

This culture shift has been aided by major improve-ments in the reliability of the machinery itself. “The reliabil-ity of our electric shovels in the last 10 years has gonefrom the high 80s to the high 90s,” says Helfrich, althoughhe acknowledges it is tough to attribute this solely toimproved monitoring and detection. “It’s a significant driver,but the same technologies have made overall reliabilitybetter too.”

So are these reliability programs really saving anybodyany money? “Absolutely,” says UBC’s Scoble. It is hard toquantify how much, but “like safety, maintenance is some-thing companies can’t afford to ignore.” Ivara tells its clientsthat overall maintenance costs can usually be slashed byabout 20 per cent using its integrated RCM-basedapproach, with an even larger knock-on savings in down-time reduction.

Vale’s Catalano says maintenance is so enmeshed withother logistical functions it is difficult to put a dollar figureon the benefits of its reliability program but he is adamantthat “it’s definitely reducing costs.”

In a case study, Ivara showed how they were able toproject a reduction in maintenance costs related to cylin-der failure on a CAT 5130 Excavator. The company’s pol-icy, based on manufacturer recommendation and operatorexperience, was to change the cylinders every 10,000hours. Ivara’s RCM practitioner reassessed the cylinderfunction in its real context and realized leaking cylinderswere causing total failures. A simple solution — checkingthe cylinders visually for leaks every two weeks – was rec-ommended. Maintenance costs for the excavator were pro-jected to drop from $635,000 to $43,000.

The human elementFor Rio Tinto, the biggest hurdles have not been with

resources or technology, but with buy-in. “Our biggest chal-lenge has been getting people to embrace new processesand new technology,” says Adams. Surprisingly, training,promoting and having people keep using the technologyhave taken up more time than getting the technology towork. Things are getting better, but some sites have beenslow to adapt. “There’s been a shift from mechanics work-ing on machines with wrenches to looking at onboard datafrom remote monitoring,” he says. “It’s been a lot of work todemonstrate the benefit.”

“However, there is a real need for existing people to takeon the role of reliability practitioner,” says Bill Fulton, whoholds that title at Ivara.

The future is automaticMost in the industry say the future of equipment tech-

nology is automation, so some of these manpower issuescould eventually disappear. By eliminating operators fromthe equation, costs can be reduced by cutting back onsalaries, minimizing safety concerns and reducing down-time associated with shift changes and other manpowerissues.

Rio Tinto has built future automation in as part of itsmonitoring system planning. It has already found that sitesalready set up with monitoring and maintenance technolo-gies are much more comfortable adding new technologies.

At their Western Australia iron ore site, forinstance, an autonomous drill project hasrecently been successfully integrated into theexisting monitoring and control system.

June/July 2010 | 33

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Reliability is an even bigger concern with automatedequipment than operator-run equipment. Because it isoften more complex, there are more things that can break.Taking one of these machines out of service is a massiveundertaking, so preventing failures is more important thanever.

Vale’s Catalano has another compelling reason to movetowards automation: automated equipment will producebetter data. “The data is cleaner if the operator is elimi-nated,” he says. “You go into the system and program it toproduce outputs.” The information would be uploaded wire-lessly and produce reliability data. Problems would beflagged directly by the system to controllers, and manage-ment would decide whether to take action. This level ofautomation is not realistic yet at most mines because thebase technology is not currently in place – most mines donot have wireless networks installed, for example. ButCatalano adds that most new mines include such technol-ogy in their feasibility studies.

Trouble sharingSome non-operators believe mining companies have

stalled in their commitment to really taking reliability to thenext level. “There are big missing links,” says Ivara’s Fulton.“There are lots of islands of data out there squirreled awayin Excel or Access files that are not connected to decision-making tools driving the right work.” It’s estimated that 70per cent of reliability analyses are never implemented,mostly because companies flounder with the complex fol-low-through required to get them executing in computer-ized maintenance management systems.

The reasons for this are not clear. Some, like Helfrich,believe operators and manufacturers are at a bit of animpasse in terms of sharing strategic data. “Sometimesthere is a turf war between the original equipment manu-facturer and the owner over who owns the data,” he says.“Mining operators will say, ‘We don’t want the data leavingthe mine, because we don’t want it to end up in the wronghands’. I understand that, but the data is unusable.”

Helfrich says manufacturers need to bring operatorsaround to sharing strategic data, which will help make themachines better, improving everyone’s bottom line. “Weneed to demonstrate how we’ll protect the data,” he adds.“If we don’t trust each other, all the data in the world won’tmake the machines more reliable.” Helfrich adds that onthe tactical data side, as Rio Tinto’s story demonstrates,there are no such ownership issues.

Fulton thinks the mining industry has simply been onstandby but is finally realizing that in a fluctuating commod-ity market, slashing downtime is suddenly a real priority. Hesays mining can take its cue from clients in the power gen-eration sector. “They’re eager to share information. We’veeven set up a client data sharing site on the Internet.” Evencloser to home, the steel industry has started sharing datawith its colleagues in the aluminum sector. “They realizethere’s no benefit to holding back information on equipmentfailure,” says Fulton. “There’s no competitive advantage.” CIM

La tradition des mines d’effectuer la maintenanceselon le temps d’utilisation est graduellement rem-placée par une méthode prédictive plus sophistiquée,

basée sur des algorithmes et des données de diagnosticobtenues de sondes sur les équipements dans le but deproduire des alertes sur de potentielles défaillances.La fiabilité est déjà améliorée et il y a moins de temps

d’arrêt. Cependant, selon les experts, le secteur minier estloin derrière les autres industries dans l’intégration dessystèmes de collecte de données; les temps d’arrêt coû-tant des millions de dollars par année ne sont pasmaîtrisés.On croyait que les machines, tout comme le corps

humain, se détérioraient avec le temps. Mais les machinesne sont pas biologiques; si elles sont bien maintenues,elles devraient fonctionner sans diminution de rendement. Après la Deuxième Guerre mondiale, le nombre de voy-

ages par avion augmentait mais le nombre d’écrasementsétait très élevé. On croyait que l’âge des équipements étaiten cause et la maintenance en fonction du temps a aug-menté. À la surprise générale, le nombre d’écrasements atout de même augmenté. Après avoir analysé les données,les ingénieurs ont constaté que seulement 11 pour centdes pannes d’équipement étaient dues à l’âge et que laplus grande proportion de défaillances était sur des

équipements neufs ou récemment réparés. C’est ainsiqu’est née la maintenance axée sur la fiabilité (MAF).Les programmes de maintenance prédictive aident à

réduire les problèmes. « Vous ne faites pas nécessaire-ment entrer le camion pour une maintenance traditionnellerégulière », explique Malcolm Scoble, professeur de génieminier à l’Université de la Colombie-Britannique. « Vouspouvez le faire entrer lorsqu’une pièce semble approcherune défaillance et selon un horaire qui vous convient. »Cela se fait en combinant des données sur l’usure, enreg-istrée par des capteurs, et des inspections par les opéra-teurs. Les modèles prédictifs basés sur ces mêmes don-nées peuvent vous indiquer qu’il est temps de réparer unesous-composante. Il faut alors moins de temps et celacoûte moins cher que de retirer la machine du service pourune réparation majeure. Des capteurs installés sur les équipements constituent

une source de données pour le suivi de la fiabilité. La plu-part des équipements miniers ont maintenant des capteurspour les vibrations et la température des moteurs. D’autrescapteurs peuvent surveiller les filtres, l’huile et les pneus.« Les capteurs de vibrations sont maintenant standards »,dit Joe Helfrich, vice-président principal, produits d’exploita-tions en surface, Bucyrus. Il ajoute que le prix des capteursa grandement chuté au cours des dernières années.


logistique

Vos actifs sont-ils fiables?Les données et les modèles prédictifs réduisent le temps d’arrêt des équipements mais l’intégration des systèmes tarde

Des capteurs sur les équipements lourdspermettent un suivi de fiabilité plus complet

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Les inspections par les opérateurs sont des points clés.Cependant, dans plusieurs compagnies, les opérateursinscrivent les données sur une feuille de papier qui estensuite classée. Il existe d’autres options telles que lesappareils utilisés par la compagnie Ivara, une compagnie degestion du rendement des actifs. Les opérateurs ont de petitsappareils pour entrer les données, lesquelles sont ensuitetransmises à un système centralisé où elles sont traitées pourproduire des recommandations de maintenance.Certaines compagnies ont développé des systèmes

pragmatiques pour traiter les très nombreuses donnéesgénérées. Chez Vale Inco, « les données sont collectéesautomatiquement : les diagnostics du système et lesentrées des opérateurs », explique Frank Catalano, assis-tant directeur de la mine de nickel Stobie à Sudbury. Cesdonnées sont exportées et analysées à l’externe, engrande partie en partenariat avec l’UniversitéLaurentienne. Le directeur de ce partenariat de recherche,Dr Nick Vayenas, utilise les données de Vale Inco pourcréer des modèles de fiabilité au moyen d’algorithmesgénétiques. D’autres compagnies traitent les données recueillies à

l’interne. Rio Tinto a choisi les technologies et elle s’estassurée qu’elles étaient interexploitables. L’implantationdevait être adaptée pour chaque site. L’éloignement et lestempératures extrêmes (de –50 ºC au Labrador à 40 ºC enNamibie) ajoutaient à la complexité. Caterpillar, ModularMining et Mining Information Systems ont adapté leurssystèmes aux technologies et aux environnements locaux.Les commandes à distance ont complètement changé

la maintenance chez Rio Tinto. Avant, un opérateur sig-nalait qu’il avait un problème sur un équipement et le con-trôleur lui disait de redémarrer le moteur; cela se faisait àquelques reprises jusqu’à ce que de la fumée sorte dumoteur. « Nous empêchons maintenant des défaillancescatastrophiques », dit M. Adams. « Il est actuellement inac-ceptable d’avoir une panne de moteur. »Est-ce que les programmes de fiabilité sauvent vraiment

de l’argent? « Absolument », dit M. Scoble. « Il est difficilede quantifier les montants mais, tout comme la sécurité, lescompagnies ne peuvent les ignorer. » La compagnie Ivaradit à ces clients que les coûts d’ensemble de la mainte-nance peuvent être réduits d’environ 20 pour cent par l’u-tilisation de la MAF, sans compter les économies généréespar la réduction des temps d’arrêt.Dans une étude de cas, Ivara a montré la réduction des

coûts reliée à une défaillance du cylindre sur une excava-trice CAT 5130. La politique de la compagnie, basée surles recommandations du manufacturier, était de changerles cylindres à toutes les 10 000 heures. Le spécialistechez Ivara a réévalué la fonction du cylindre et a réaliséque des fuites causaient les défaillances. Avec une solu-tion simple de vérification visuelle régulière pour des fuites,les coûts de maintenance de l’excavatrice devraient chuterde 635 000 $ à 43 000 $.« Notre plus gros défi chez Rio Tinto a été de faire

accepter les nouveaux procédés et la nouvelle technolo-

gie », dit M. Adams. De manière surprenante, la formation,la promotion et l’utilisation constante de la technologie ontdemandé plus de temps que l’implantation de la technolo-gie. « Les mécaniciens travaillant avec une clé doiventmaintenant regarder des données téléchargées. » ValeInco a rencontré des difficultés semblables. « Tous sonttrès occupés; nous avons impliqué les gens dans la miseen place du système et cela a aidé », dit M. Catalano.L’approche d’Ivara est d’enseigner aux gens de la mine à seservir du système. « Les logiciels peuvent être gérés par lepersonnel d’informatique en poste; il faut cependantdévelopper un poste de fiabiliste », dit Bill Fulton, détenteurde ce titre chez Ivara. L’avenir de l’industrie réside dans l’automatisation. En

éliminant les opérateurs, les coûts chuteraient encoreplus : salaires, sécurité, changements de quarts de travailet autres. Rio Tinto a déjà intégré l’automatisation dans saplanification de systèmes de suivi. À son site en Australieoccidentale, un projet de foreuse autonome a été intégréavec succès au système existant de suivi et de contrôle. Selon Frank Catalano, Vale Inco a une autre bonne rai-

son d’automatiser : les équipements automatisés four-nissent de meilleures données. L’information seratéléchargée et produira des données fiables. Les prob-lèmes seraient signalés directement à des contrôleurs et ladirection déciderait d’agir ou non. Ce niveau d’automatisa-tion n’est pas réaliste à la plupart des mines puisque latechnologie de base, par exemple les réseaux sans fils,n’est pas encore en place. Il souligne cependant que la plu-part des nouvelles mines incluent une telle technologiedans leurs études de faisabilité.« Il existe de grandes lacunes », dit M. Fulton.

« Beaucoup de données sont stockées dans des dossiersExcel ou Access et ne sont pas reliées à des outils de prisede décisions. » Environ 70 pour cent des analyses de fia-bilité ne sont jamais implantées car les compagnies nemettent pas en œuvre les suivis complexes requis pourque l’exécution se fasse par les systèmes informatisés degestion de la maintenance.Les raisons de la non-implantation ne sont pas claires.

Certains, comme M. Helfrich, croient que les opérateurs etles manufacturiers hésitent à partager des donnéesstratégiques. Les opérateurs miniers ne veulent pas queles données quittent la mine; elles sont alors inutilisables.Selon lui, le partage de données stratégiques aidera àaméliorer les équipements. « Si nous ne pouvons pas nousfaire confiance les uns les autres, toutes les données aumonde ne rendront pas les équipements plus fiables. » M. Fulton croit que l’industrie minière est simplement en

attente mais qu’elle réalise que la diminution des tempsd’arrêt est une véritable priorité. L’industrie minière peutprofiter de l’expérience du secteur énergétique – il y amême un partage de données dans l’Internet. L’industrie del’acier a aussi commencé à partager des données avec lesecteur de l’aluminium. « Il n’y a aucun avantage compétitifà retenir de l’information sur les pannes d’équipement »,conclut M. Fulton. ICM

June/July 2010 | 35

logistique


featured mine

I

Farallon joins theneighbourhood

by | Dan Zlotnikov

With a trio of newly identified gold zones to complement the recentlycommissioned zinc mine on its Campo Morado property, FarallonMining has great promise. That promise includes a commitment to

the community that hosts the operation.

Workshops supported by Farallon helped local women make the best use of food items such as soya, which was novel to the daily diet.

It is the weekend and you have been looking forward to somerelaxing gardening. The eggplants should be just about ripe.With a smile you grab the work gloves and head out back.The sight that greets you is anything but relaxing. Ragged

pits and mounds of dirt have replaced orderly rows of lettuce.The tomato plants’ roots are dug up and shredded. Horrified, youturn to your eggplants to find the culprit — the neighbours’ dog— excitedly tunnelling its way into the soft dirt under them.The dog’s owners, who only recently moved into their newly

built home across the street, are understanding and apologetic.The wife offers you a cold drink while the husband pulls out acheque book. “How much?” he asks.Now, suppose the conversation goes differently. The owners

are still apologetic but no one reaches for a cheque book.

Instead, they offer to help fix what can be fixed and half anhour later are both in your back yard, spade and shovel in hand.The next morning there is a pickup truck parked outside and apair of workers are closing up any dog-sized gaps they find.

A clear visionWhen Dick Whittington, president and CEO of the mid-tier

mining operator Farallon Mining, talks about his mine being agood neighbour to the local communities, he is very clearabout which of the two examples above he has in mind. “Weneed to be good neighbours,” he says. “Everything we do, wedo just as if you moved into a new neighbourhood. We wantto truly be an integrated part of the community.” Simply writ-ing a cheque just won’t cut it.

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over — they’re talking about respect and the relationship withthe community.” Farallon’s socioeconomic team doesn’t wait for the local res-

idents to come to the mine with complaints. Instead, the teamis on the road every day, listening to local issues and bringingthem before the company leadership. “You can’t run a mine

June/July 2010 | 37

featured mine

Farallon has been been working hard tobe a good neighbour in the area near its G-9 Mine in Mexico’s southwesternGuerrero state. In addition a number of localinitiatives the company has launched,Whittington has embraced corporate socialresponsibility (CSR) as an underlying princi-ple to guide day-to-day decision-making.“The sustainable development definition

we developed really starts with me,” hesays. “It starts with a commitment from thetop and manifests itself in different waysthrough the organization. Before you startwriting stuff on paper, it has to come fromwithin yourself, within the people in thecompany. They really have to live CSR or it’sjust another mantra, another placard on thewall that everyone’s supposed to follow, but once it’s up on thewall, everyone just gets on with their job.”

A working relationshipTo attain the level of acceptance and awareness Whittington

describes, Farallon’s employment contracts start not with pro-duction goals, efficiency improvements or safety guidelines butwith a requirement that all employees — from senior manage-ment to the underground drillers — be respectful, responsiblemembers of the community. The importance of CSR is embedded in Farallon’s corporate

structure. “There are two people who can shut this mine down,”says Whittington, “the general manager of operations and thegeneral manager of socioeconomics. If the general manager ofsocioeconomics says, ‘You guys are screwing it up, we’re notdoing things right, and we’re going to have to shut this minedown,’ then we’re going to shut it down. Now, he’s not going todo it irresponsibly, but what it tells everybody in the organiza-tion is that you have to listen to the socioeconomic people. Youcannot ignore them.”The general manager of socioeconomics reports directly to

the CEO and not to the general manager of the mine.”Thatmeans he has access to me on any issues, at all times, and hecannot be shouted down or ignored by the productionmachine,” says Whittington.Whittington also recognized that the production team and

the socioeconomic team needed radically different skill sets.“The production machine is impatient,” he says. “It’s demand-ing. It’s a heartbeat throbbing away at 160 beats per minute.”For the socioeconomic team, he was looking for a different skillset. “You want empathy. You want people who are going to lis-ten more than they’re going to talk. You want people withimmense patience — people who can listen to someone com-plaining about their dog getting run over and yet fully under-stand that this person isn’t talking about their dog being run

The concentrate is trucked 700 kilometres to the port city of Manzanillo.

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Opposite page, top to bottom: 1. Seedlings from the mine's treenursery will be transplanted to surrounding areas; 2. At the equipmentworkshop on site; 3. Adult education workshops provided technicaltraining as well as literacy programs; 4. The flotation plant; 5. Loadingconcentrate for transport. All photos courtesy of Farallon Mining.

Farallon’s secret to super-fast mine developmentWith less than four years between the original greenfields

discovery and the official start of commercial production,Farallon’s G-9 Mine is a model of speedy development — espe-cially considering the construction phase overlapped both aperiod of severe equipment supply constraints and a recession. President and CEO Dick Whittington credits this success to

the so-called parallel-track approach. That means exploration,mill construction and early mine development activities allhappen simultaneously. Of course, that puts more money atrisk if a decision is made to scrap the project or to make dras-tic changes to the mine plan. The risk was also increased, it seemed, by Farallon’s deliber-

ate decision not to conduct a feasibility or prefeasibility studyto show potential investors. Whittington explains: “We lookedat the economics of the project and the board quickly realized,why spend 18 months and $20 million telling us something wealready knew? We were confident we’d be able to persuadeenough people to that point of view.” He was proven right, asmore than $110 million raised in 2006 alone demonstrated.Part of the reason for the parallel-track approach’s success

in persuading investors, says Whittington, was because the ideawas pitched at a time when a number of other projects hadfallen short of expectations. “There were several companieswho’d done feasibility and prefeasibilty studies and pilot planttesting on their projects,” he says. “And when it came time tobuild their project they were 50 to 60 per cent over budget andin some cases, years behind schedule.”The decision to speed up development saved the company

from two potential major pitfalls. First, it was able to lock inpricing on a significant portion of its major equipment pur-chases prior to the supply price spike of 2007. Second, in thespring of 2008, Farallon secured a purchase agreement formuch of its silver and an offtake agreement for all of its copperand zinc concentrate production – which in the last quarter of2009 amounted to 23.4 million pounds of zinc and 2.4 millionpounds of copper. Had Farallon waited for the results of a fea-sibility study, those negotiations would likely have been pushedback, right into the middle of the credit crunch.In the end, Whittington says, the mine was built on sched-

ule at just 20 per cent over the cost stated in the preliminaryestimate — well within the estimate’s margin of error.“Without the parallel-track approach, we would have beencaught by the credit crisis,” he says. ”In hindsight, this was adecision that really paid off.”

By Dan Zlotnikov

without being in the stopes every day, and you can’t run a socio-economic program without being in the communities every day,”Whittington explains.

Setting down rootsIn addition to the work of its socioeconomic team, the com-

pany has helped fund an adult literacy program that serves 22local communities. Since the program began in 2006, it has seen40 students graduate.A 1,000-tree nursery is in place and the company plans to

expand it to 100,000 trees to be replanted back into the sur-rounding area. Some of the trees currently being grown were onthe verge of extinction and were saved, thanks to the nursery.The 100,000 trees are just one of the long-term benefits

Whittington hopes the mine will bring to the region. Currently,the mine employs 400 workers directly and approximately 1,400more indirectly; many of the latter are skilled tradespeople. “If you look at an area where a mine started up, the process

requires you to develop skilled workers: electricians, carpenters,mechanics,” says Whittington. “All of these people can move to adifferent local job or start up their own business to sell productsor services to a different end user than the mine. That, ultimately,is the goal.”For Farallon’s CSR initiatives, Whittington emphasizes the

importance of not simply handing down solutions – not beingSanta Claus, as he puts it – but of creating the capacity for localcommunities to address their own problems over the longerterm. For instance, when one local community wanted to con-nect itself to the national grid, Farallon could easily have shoul-dered the $160,000 cost of the project. But the community’sproblem was not a lack of funds, Whittington says. The Mexicanfederal government offered grants for this type of project but thelocal administrators were daunted by the 100-page applicationforms. Farallon offered its assistance with the paperwork and thecommunity retained all ownership of the project. The result wasa successful grant application and the power line is now in thefinal stages of being installed.Farallon’s success at G-9 stems from not just addressing com-

munity concerns but doing so in a manner that creates futurecapacity, says Whittington. “It’s an intellectual undertaking as well as a lot of hard work,”

he says. “You can’t change the whole world, but hopefully you can change one corner of it if you integrate yourselveseffectively into the culture without in any way imposing yourselves onto that culture. That’s the big challenge.”

www.farallonmining.com

CIM

June/July 2010 | 39

Farallon Mining's Campo MoradoProject is 160 kilometres south-west of Mexico City.

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mine en vedette

UUn matin, vous constatezque votre jardin a tout étédéraciné et chambardé – lechien du voisin s’y estdonné à cœur joie. Lesmaîtres du chien, de nou-veaux voisins, s’excusent etsortent leur chéquier. Et sile dénouement avait étédifférent? Les voisins s’ex-cusent mais au lieu depayer, ils sortent pelle etrâteau?

Dick Whittington, prési-dent-directeur général deFarallon Mining, sait lequeldes deux exemples il veut suivre. « Nous voulons être partieintégrante de la communauté. » Produire un chèque ne suf-fit pas.

En plus de lancer de nombreuses initiatives locales, dontun programme de littératie pour 22 communautés avoisi-nantes, la minière Farallon travaille fort à être un bon voisin àsa mine G-9, située dans le sud-ouest de l’état de Guerrero,au Mexique. M. Whittington accorde une grande place à laresponsabilité sociale des entreprises (RSE) en tant queprincipe directeur dans les décisions quotidiennes.

« La définition du développement durable commence avecmoi, avec un engagement de la direction; il faut véritablementvivre la RSE, sinon ce n’est qu’un mantra ou une plaque sur lemur », dit M. Whittington. Pour atteindre le niveau d’accepta-tion et de sensibilisation dont il parle, les contrats d’em-bauche commencent non par des objectifs de production,d’amélioration d’efficacité ou de directives de sécurité, maisavec l’exigence que tous les employés – de la direction auxforeurs sous terre – soient des membres responsables etrespectueux de la communauté.

L’importance de la RSE fait partie intégrante de la structurecorporative de Farallon. « Deux personnes peuvent faire fer-mer cette mine : le directeur général des opérations et ledirecteur général de l’économie sociale », dit M. Whittington.Ce ne sera jamais fait à la légère mais le message est qu’il fautrespecter cet aspect de l’exploitation.

Selon M. Whittington, les deux équipes – production etéconomie sociale – ont besoin d’habilités radicalement

Farallon : un nouveau voisinRôle essentiel de l’économie sociale

dans le développement de la mine G-9

opposées. « L’équipe deproduction est impa-tiente, le travail estexigeant. L’équipe d’é-conomie sociale a besoind’empathie et d’unegrande patience pourdécouvrir ce dont il estvéritablement questiondans une conversation –souvent le respect et lesrelations communau-taires. L’équipe d’é-conomie sociale n’attendpas que les résidentslocaux verbalisent les

plaintes, elle est sur la route à tous les jours. » Une pépinière de 1 000 arbres est en place et la compa-

gnie planifie un agrandissement à 100 000 arbres, dontquelques essences qui étaient près de l’extinction. Les arbresne constituent qu’un des bénéfices à long terme; la mineemploie directement 400 travailleurs et assure l’emploi d’en-viron 1 400 autres indirectement. « Dans une région de nou-velles mines, il faut former des travailleurs qualifiés : élec-triciens, menuisier et mécaniciens. À tout moment donné, cesgens peuvent déménager ou partir à leur propre compte. »

Quant à la RSE, M. Whittington souligne l’importance dene pas jouer au Père Noël avec des solutions déjà établies; ilfaut plutôt créer des capacités pour que les communautésrèglent leurs propres problèmes à long terme. Par exemple,lorsqu’une communauté voulait se brancher au réseau élec-trique national, Farallon aurait pu assumer les 160 000 $ ducoût du projet. Les problèmes de la communauté n’étaientpas un manque d’argent, dit M. Whittington, puisque le gou-vernement fédéral mexicain offre des subventions pour cetype de projet. Les administrateurs locaux étaient plutôtdébordés par le formulaire de demande de plus de 100 pages.La compagnie a offert son aide et la communauté a obtenusa subvention.

Le succès de Farallon à la mine G-9 découle non seule-ment de son attention aux besoins de la communauté maisdu fait qu’elle crée des capacités pour l’avenir. « C’est unengagement intellectuel et beaucoup de travail et c’est là legrand défi», dit M. Whittington. ICM

Des ateliers d’éducation aux adultes dans la communauté où se trouve la mine fournissent de la formation technique ainsi que des programmes de littératie

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CONGRÈS ET SALON COMMERCIAL 2011

MINES SANS FRONTIÈRES

PROGRAMME TECHNIQUE

PROJETS PRATIQUESEXEMPLAIRES

GESTIOND’ENTREPRISE ET DES RESSOURCES

HUMAINES

RESPONSABILITÉENVIRONNE -MENTALE ET

SOCIALE

INNOVATION ETTECHNOLOGIE

SCIENCES DE LA TERRE

SYMPOSIUM SUR LE MINERAI DE FER

LUNDI MATIN Assemblée plénière

LUNDI APRÈS-MIDI Plan Nord I

Gestion del’environnement

et de l’eauSécurité Réussites

autochtones Francophonie VI Géologie IRessources ferreuses :

Disponibilité et projets endéveloppement

MARDI MATIN Pré-faisabilitéavancée

Plan Nord II –Logistique

Francophonie IV –Planification de la main-d’oeuvre I

EnvironnementCCIM – Études de cas

Mécanique desroches I Activités minières

MARDI MATIN Design etconstruction

Géotechnique – La voie payante

Plan Nord III –Planification de la main-d’oeuvre II

Francophonie V –Infrastructure I

Systèmes de gestion etplanificationminières

Géologie II Bouletage et concentration

MARDI APRÈS-MIDI

Déclassement à terme

Francophonie III –Chaîne

d’appro visionnement

Actionnaires (NC 43-101, etc.)

Plan Nord IV –Infrastructure II

SMART –Exploitation à ciel ouvert

Mécanique desroches II

Environnement et progrèstechnologiques dans la

réduction du minerai de fer

MERCREDI MATIN

Francophonie I –Développementéconomiquerégional I

Nouveaux concepts en matière

d’automatisation et de transport

minier

Journée finances et gestion

Études de cas

Plan Nord V

Gestion del’eau

Aperçu sur les producteurscanadiens et internationaux

MERCREDI MATIN

Francophonie II –Développementéconomiquerégional II

Entretien et fiabilité Journée finances et gestion

La prochainenouveauté

Gestion del’énergie

Plan Nord VI

MERCREDI MIDI DÉJEUNER DE CLÔTURE

MERCREDIAPRÈS-MIDI

Journée finances et gestion

Assemblée plénière de clôture

APPEL DE COMMUNICATIONSSous le thème « MINES SANS FRONTIÈRES », l’ICM prépare un programme technique exhaustif pourlequel des articles sont présentement demandés. Le programme comprend les volets suivants :projets, pratiques exemplaires, gestion d’entreprise et des ressources humaines, responsabilitéenvironnementale et sociale, innovation et technologie, sciences de la Terre et symposium sur leminerai de fer.

Les articles rédigés en français sur les thèmes du programme seront également pris en compte pourles volets Francophonie (accent mis sur des projets de pays francophones); Plan Nord (un projet dugouvernement du Québec visant à stimuler le développement économique et social des régionsnordiques, au profit de ces régions et de l’ensemble du Québec); et séances du Symposium sur leminerai de fer. Pour toutes ces activités, des services de traduction simultanée seront offerts.

DATES IMPORTANTESSoumission des résumés : le 30 septembre 2010 | Avis d’acceptation : le 20 décembre 2010

SOUMETTEZ VOS RÉSUMÉS DÈS AUJOURD’HUIwww.cim.org/montreal2011

First contact and lasting impressionsVeteran broadcaster Rex Murphy left the audience bothcharmed and charged with his lively defence of the miningindustry, setting the tone for a Plenary Session that featured astellar panel. Don Lindsay, president and CEO of TeckResources Limited; Anthony Kelly, training coordinator, Centrefor Social Response; Pablo De la Flor, vice-president corporateaffairs, Compañía Minera Antamina S.A.; Ronald Thiessen, CEOand director, Hunter Dickinson; and Jack Blacksmith,president, Cree Mineral Exploration Board applied their broad,international expertise to the topic of “First Contact.” Theywere asked: How can mining companies get an early, accurateand relevant understanding ofa community’s concernsand their context? What arethe biggest challenges andkey initial steps at the firstcontact stage? What rolesdo host governments andindependent entities play inthe first contact process?

Bright minds gathered under bright skies at the CIM Conference and Exhibition 2010

Aspirited plenary discussion, project sessions spilling out the doors, streams of studentspouring into Mining in Society and an energized exhibition hall showcased the tireless effortsand careful planning of dedicated volunteers and CIM National Office staff. The technical

sessions, at the heart of CIM’s Conference and Exhibition, drew leaders in operational excellence,innovation, community engagement, as well as financial and environmental practices. Theknowledge exchanged and the connections made at these sessions are central to CIM’s reenergizedcommitment to being a community for leading industry expertise. Based on the buzz around theconvention centre, CIM is on the right track.

Photos courtesy of Normand Huberdeau/NH Photographes

CIM CONFERENCEAND EXHIBITION 2010CONGRÈS ET SALON COMMERCIAL DE L’ICM

“Just wanted to let you know that Ienjoyed this years’ CIM Conference.In my opinion, it was the strongesttechnically. Good work!”

~ Samuel Mah, Director, Engineering,

Silver Wheaton Corp.

Canada’s largest industryequipment and serviceseventOver 430 exhibiting companies took part inthis year’s exhibition — the largest one todate, that welcomed over 6,100 people.Getting a jump start on next year’s event,over two-thirds of the Montreal 2011exhibition booths have already sold.New to the exhibition this year was the Face-to-Face program that saw 112 participantssecuring important business contacts.

“The format of the Face-to-Faceactivity is excellent, and I thinkthe future is very promising.Mining companies, consultingengineering firms and suppliersare going to adopt the Face-to-Face formula. Endress+HauserCanada will support the processin the years to come.”

~ Roland Quenneville, BusinessDevelopment, Services & Solutions,

Quebec & Maritimes

"Being a part of the CIM conferenceyear after year has aided us inachieving our networking goals inan effort to develop excellence inmining innovation. The conferencetaps into global experts from themining world which greatly assistsCEMI to establish new andinnovative R&D projects andprograms."

~ Peter K. Kaiser, President and CEO,

Centre for Excellence in Mining Innovation (CEMI)

“On behalf of Australian exhibitorsat CIM 2010 and Australian TradeCommission-Canada, I would liketo thank you for organising such agreat event. You and your teamdid a fantastic job in organisingthis world class event. Congratu-lations on a job, well done! I lookforward to working with you onCIM 2011.”

~ Alireza RafieeDirector, Market Development

Australian Trade Commission - Toronto

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THANKS TO OUR SPONSORS

The conference night lifeEvenings brought delegates together in a more relaxed setting. The Men ofthe Deeps concert, sponsored by Teck Resources and Wardrop Engineering,launched the social program. Their performance in the historic BritanniaMine resonated with songs that hit both melancholic and comic notes. TheSMS Equipment/Komatsu-sponsored Opening Reception saw conference-goers flood the exhibition floor, as they were treated to food, wine and music.The CIM Awards Gala, made possible by Caterpillar, was as memorable as itwas spectacular, and the P&H MinePro Services Reception and Dance haddelegates rocking to the music.

CIM DISTINGUISHED SERVICE MEDALJames L. Popowich, Vernon, BCVALE INCO MEDALRobert A. Quartermain, Vancouver, BCSELWYN G. BLAYLOCK MEDALPhillip J. Mackey, Montreal, QCMEMBERS AWARDPierre Laroche, Theford Mines, QCSYNCRUDE AWARD FOR EXCELLENCE IN SUSTAINABLEDEVELOPMENTBioteQ Environmental Technologies Inc., Vancouver, BCOsisko Mining Corporation, Montreal, QCPAST PRESIDENTS’ MEMORIAL MEDALAdam Tonnos, Sudbury, ON A.O. DUFRESNE AWARDEdwin Gaucher, Saint-Ferréol-les-Neiges, QCJ.C. SPROULE MEMORIAL PLAQUEGarth Kirkham, Burnaby, BCCOAL AWARDAllen Wright, Calgary, ABROBERT ELVER MINERAL ECONOMICS AWARDKarl J.C. Harries, Gananoque, ONMCPARLAND MEMORIAL MEDALJohn (Jack) R. Morris, Comox, BCJULIAN BOLDY MEMORIAL AWARDPhilip Olson, Saskatoon, SKBARLOW MEMORIAL MEDALKathleen G. Thorne, Fredericton, NBDavid R. Lentz, Fredericton, NBDonald Hoy, Thunder Bay, ON Les R. Fyffe, Fredericton, NBLouis J. Cabri, Ottawa, ONMETAL MINING SOCIETY AWARDCarol Plummer, Kittilä, FinlandCIM-BEDFORD CANADIAN YOUNG MINING LEADERS AWARDPaul Blatter, Cadillac, QCJim Sarvinis, Oakville, ON Bernard Tan, Vancouver, BCMEL W. BARTLEY AWARDSection Harricana, Val-d’Or, QC CIM DISTINGUISHED LECTURERS AWARDMahesh Chaturvedi, Winnipeg, MBMichael Doggett, Vancouver, BCJames M. Franklin, Nepean, ONNorman O. Lotter, Falconbridge, ONDavid D. Rodier, Mississauga, ON JOHN T. RYAN TROPHIESMETAL MINE CATEGORYCamecoMcArthur River Mine, Saskatoon, SKSELECT MINE CATEGORYDiavik Diamond Mine, a Rio Tinto Harry/ Winston DiamondCorporation joint venture, Yellowknife, NTCOAL MINE CATEGORYSherritt, Genesee Mine, Warburg, ABCIM FELLOWSHIPJoseph Aiello, Calgary, ABDaniel Ashman, Trail, BCMarcel Djivre, Sudbury, ON Hubert W. King, Salt Spring, BCDavid R. Lentz, Fredericton, NBKenneth W. Major, Maple Ridge, BCRon Molnar, Peterborough, ON Nicholas Parchewsky, Edmonton, ABIan Turner, Montreal, QC Bert Wasmund, Mississauga, ON Zenghe Zu, Edmonton, ABDISTRICT 6 DISTINGUISHED SERVICE AWARDGreg Rasmussen, Vancouver, BCFIFTY YEAR CLUBRichard Addison, Vancouver, BCM.P. Amsden, Oakville, ONJohn M. Anderson, Vancouver BCAnthony F. Banks, Saskatoon, SK Roy S. Boorman, Fredericton, NBC. Henry Brehaut, Toronto, ONRichard L. Brown Jr., Mountainside, NJ, USALeland L. Davis, Magnolia, TX, USAGontran Foy, Sainte-Foy, QCJ.F. Gartner, Willowdale, OND.J. Gendzwill, Saskatoon, SKGeorge E. Holmes, Sun City, AZ, USAG.W.Hornby, Vancouver, BCDouglas A. Knight, West Vancouver, BC Marcel Morin, Gatineau, QC Rene A. Morin, Nepean, ONDonald I. Nelson, Summerland, BCPatrick H. O’Neill, New Canaan, CT, USAWilliam Petruk, Ottawa, ONKeith N. Pople, West Vancouver, BCJohn A. Pursel, Wasaga Beach, ON William E. Stanley, West Vancouver, BCH.R. Steacy, Ottawa, ON Michael,Sudbury, Oakville,ON William I. Turner Jr., Montreal, QC John E.,Udd, Nepean ON Douglas G. Valentine, Oakville, ON Robert E. Van Tassell, High River, AB Richard A. Walli, Oshawa, ONEdward M. (Ted) Yates, Toronto, ON

MEDIA

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NG IN

SOCI

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FRIEN

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RECOGNIZING INDUSTRY’S FINEST

2010 CIM AWARD WINNERS

Excited faces all aroundAt any given moment you could find hundreds ofsmiling faces touring the Mining in Society show.Over 6,600 people saw, up close, concrete examplesof how mining impacts on everyday life.Mining in Society is adopting a new name — M4S.Continuing with the same focus, M4S will teach theimportance of mining, minerals, metals andmaterials (the 4Ms) to our society. Watch for it atnext year’s conference!

COLUMNS | MAC enonomic commentary

With due respect to cobalt and coal,it is fair to state that diamonds and goldare the world’s two most prestigiousminerals. They hold the deepest emo-tional meaning among consumers,with traditional and cultural ties tocommitment, union, luck, love andmarriage. They are also the mineralsthat are most indicative of personalwealth, affluence, sophistication andsocial status.

These two minerals and their corre-sponding industries have long shared anumber of similarities in terms of thesurrounding market drivers, pricemarkups and social pressures. Forexample, the fundamental driver of theglobal market in both gold and dia-monds is jewellery. According to theWorld Gold Council, fully 68 per centof the world’s demand for gold over thepast five years was for use in jewellery.While the delineation is less exact indiamonds, it is estimated that gem-quality diamonds used in jewelleryaccount for over 80 per cent of thevalue of the world diamond market.

A second point, and the conversefrom the above, is to note that theindustrial application market for dia-monds and gold is relatively modest insize. Only 14 per cent of world golddemand stems from industrial uses(the remaining 18 per cent is forinvestment purposes). While impor-tant in the dental, electronics, medicaland environmental fields (with a grow-ing potential in nanotechnology), theseindustrial uses for gold face the chal-lenge of being commercially feasible atraw material price points that are cur-rently well north of $1,000 per ounce.

Of mined diamonds, less than 20per cent of production value is des-tined for industrial markets — princi-pally for uses such as cutting, grindingand drilling. Synthetic diamonds, sincetheir invention in the 1950s, havefound broad industrial application and

serve to reduce demand and prices formined industrial diamonds. In indus-trial uses, synthetic diamonds arearound six times more prevalent thanmined diamonds.

A third shared characteristic, againflowing from the dominant jewelleryend use, speaks to the importance ofpsychology, emotion and image to theend value. Driven by these non-quan-tifiable variables, the value of carefullymanaged marketing can be seen in theestimate from Rio Tinto that the dia-monds produced and released to theworld market in a recent year were val-ued at $9 billion as rough diamonds,$14 billion after being cut and pol-ished, $28 billion in wholesale dia-mond jewellery, and $57 billion inretail jewellery sales. Parallel statisticsfor gold are difficult to find, although asimilar six-fold markup from mine toearring may not be out of line.

A fourth reality shared between goldand diamonds is that each has faced sig-nificant social and environmental chal-lenges in the past and responded, asindustries, with serious undertakings.Faced with the “blood diamonds”threat, the global diamonds communityresponded with the Kimberly Process— an initiative to develop a govern-ment-based certification standard andhence stem the flow of such revenues.Faced with broad NGO opposition,including the “no dirty gold” campaign,leading companies responded with acyanide management code, while thejewellery industry, in consultation withthe gold mining sector,developed a businesspractices certificationstandard under theResponsible JewelleryCouncil. As well, in devel-oping countries, gold anddiamond mining compa-nies have broad socialresponsibility programs

that include direct contribution tobuilding schools, roads, electrical grids,hospitals, clinics, community halls, andchild health and nutrition programs.

Finally, it is interesting to note thatimportant connections can be drawnbetween Canada and China in both goldand diamonds. Canada is a world-scalesupplier of both — ranked third in dia-monds and eighth in gold, and with thepotential to remain a strong player asdevelopments in Quebec, BritishColumbia and the northern territoriesmove towards completion. In the globalmarketplace, the emergence of a largemiddle class in China and India will addsignificantly to the world demand forgold and diamonds. The middle classpopulation of China is presently esti-mated at 250 million people, with a pro-jection that 600 million could achievethis status by 2015. McKinsey Consult-ing estimates that the middle class pop-ulation in India will increase 12-fold by2025 — from around 50 million peopleat present to over 580 million. Thesecountries will be the world’s two largestdrivers of demand growth for gold anddiamonds over the coming decades.

For all of the similarities, thereremains an interesting marketing dif-ference between gold and diamonds.Gold is bought and sold openly onthe world’s trading markets, and real-time prices and transactions can beeasily and efficiently concluded.Conversely, because each stone has


Diamonds and gold: a common past,present and future� Paul Stothart

About the author Paul Stothart is vice-president,economic affairs, at the MiningAssociation of Canada. He isresponsible for advancing theindustry’s interests regardingfederal tax, trade, investment,transport and energy issues.

(continues on page 47)

(continues from page 46)

supply side | COLUMNS

different characteristics and value,there is no public market for dia-monds, and sales transactions aretherefore less transparent.

With the success of new discover-ies and marketing strategies in

Canada, Australia and Russia, the dis-tribution and marketing of diamondsis now largely controlled by a handfulof companies. Although De Beers’dominance of the world market hasdeclined from around 85 per cent toan estimated 45 per cent, its famous1948 catchphrase “a diamond is

forever” remains as relevant as ever.Research shows that women over-whelmingly drive market demand,either buying jewellery for themselvesor as the recipient of gifts. Readerstake note.

www.mining.ca

CIM

June/July 2010 | 47

Federal Bill C-300 will soonundergo its third reading in the Houseof Commons. While it may sound rea-sonable at first glance, if this bill werepassed into law, the practical resultwould be destructive for Canadianminers and their suppliers. Although Itouched upon this topic in my articlein the December 2009/January 2010issue of CIM Magazine, I feel it shouldbe discussed further.

This private member’s initiativegives the government 12 months todefine what corporate social responsi-bility (CSR) is and start applying sanc-tions to Canadian companies in theextractive industries working in devel-oping countries. CSR has never beforebeen defined this way. While manyCSR codes exist, they are largelydesigned to cover actions of states andinvolve voluntary compliance. It willnot be easy to come up with a legis-lated code in this complicated, con-tentious field that is fair to companiesand individuals working in complexsituations around the world.

The bill’s fundamental injustice, inaddition to many procedural and legalflaws, is that it will allow our own gov-ernment’s role as investigator to beused against us by the media, anti-mining groups, foreign governmentsand competitors. Sanctions such as thewithdrawal of government supportthrough Export Development Canada,investments by the Canada PensionPlan, and the services of our diplo-matic and trade officials around the

Stop Bill C-300 from crippling the miningindustry and its suppliers� Jon Baird

world would heavily hit mining com-panies and their suppliers. Instead ofpunishing mining companies, effortshould be put into developing Cana-dian aid programs.

Many countries where Canadianshave mining interests will not takekindly to Canadian law interfering intheir affairs. Recently, in condemningBill C-300, Peru’s Ambassador toCanada said: “We have our own rules;we are capable of managing our ownenvironment without foreign direction.”

Anti-mining groups will submittheir allegations. They will have noth-ing to lose and will suffer no conse-quences, whatever the reason for theiraccusation. They may subject yourcompany to negative publicity cam-paigns that will be very detrimental toyour operations. These groups areonly accountable to their donors, whomay mean well but who do not under-stand complex issues.

Mining companies and their suppli-ers, on the other hand, have every-thing to lose: time and money todefend themselves; their standing withshareholders; their relations with peo-ple in their local commu-nities; their reputation,and much more. In myview, if Bill C-300becomes law, Canada willstart losing mining com-pany head offices.

It is not as if Canadianminers run uncontrol-lably all over the world.

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

About the author

Jon Baird, managing directorof CAMESE and theimmediate past president ofPDAC, is interested incollective approaches toenhancing the Canadianbrand in the world of mining.

Our industry is already highlyaccountable through internationalstandards, financial controls, laws andregulations. Indeed, Bill C-300 isunnecessary.

Led by the Prospectors and Devel-opers Association of Canada (PDAC),the industry is calling on MPs to voteagainst Bill C-300. MPs need to hearfrom you that they must vote againstthe bill and be given the reasons why.

PDAC has set up a website,www.pdac.ca/c300, where you will find:• A template letter• Possible points for your letter(s)• PDAC’s position• How to reach your own MP• A list of key MPs who should also

receive your letter• The bill itself• Transcripts of committee hearings

on the billRemember: A personal letter to an

MP signed by you is worth 100 signa-tures on a petition or 100 postcards.Do it today!

www.camese.org

CIM

COLUMNS | standards


In April 2010, the Canadian Securities Administrators(CSA) published for comment the proposed changes toNational Instrument 43-101 Standards of Disclosure forMineral Projects, Form 43-101F1 Technical Report, and 43-101CP Companion Policy (collectively NI 43-101). The pro-posed changes reflect the results of our consultation withvarious sectors of the industry and our experience of work-ing with NI 43-101.

Written comments from industry participants are beingcollected on whether they support or oppose the proposedchanges, and why; and whether we should keep, modify oreliminate the technical report trigger for short form prospec-tuses. The comment period ends July 23, 2010.

Purpose of the proposed changesIn general, we believe the proposed amendments will:

• Eliminate or reduce the scope of certain requirementswhile maintaining investor protection.

• Provide more flexibility to mining issuers and QualifiedPersons in certain areas.

• Provide more flexibility to accept new foreign profes-sional associations, professional designations and report-ing codes as they arise or evolve.

• Reflect changes that have occurred in the mining indus-try.

• Clarify or correct areas where NI 43-101 is not having the intendedeffect.

Summary of key proposed changes1. We have added or amended severaldefinitions including: • Adding a definition of “acceptable

foreign code,” and amending the def-initions of “professional association”and “Qualified Person,” to replaceprescriptive lists with objective teststhat will accommodate changeswithout formal amendment.

• Amending the definition of “histori-cal estimate” to permit disclosure ofthird-party estimates made after2001.

• Expanding “preliminary economicassessment” to include preliminaryeconomic analyses after the comple-tion of a prefeasibility or feasibilitystudy.

WANTED: Industry comments on changes to NI 43-101� Robert Holland, Craig Waldie and Luc Arsenault

2. We clarified our existing requirements applicable to alldisclosure by: restricting the disclosure of economic analy-ses that include exploration targets and historical estimates;restricting the disclosure of gross metal or mineral value andmetal or mineral equivalent grades; and requiring that dis-closure of historical estimates always be accompanied bycautionary language.

3. We amended the obligation to file a technical report by:• Removing the requirement to file updated certificates and

consents of Qualified Persons when relying on a previ-ously filed technical report.

• Expanding the technical report trigger to include anyfirst-time written disclosure of mineral resources, mineralreserves or preliminary economic assessments.

• Allowing a conditional six-month filing delay for a tech-nical report supporting mineral resources, mineralreserves or a preliminary economic assessment, if theseestimates are supported by a current technical report filedby another issuer.

4. We expanded the exemption from filing an independenttechnical report for producing issuers, if certain conditionsare met.

5. We exempted royalty holders from the requirement to filea technical report, if certain conditions are met.

About the authors

Robert Holland (left), chief mining adviser with the British Columbia SecuritiesCommission, is responsible for NI 43-101 compliance reviews of prospectus, technicalreports and other regulatory filings of British Columbia-based mining companies.

Craig Waldie (centre), senior geologist with the Ontario Securities Commission, isresponsible for NI 43-101 compliance reviews of prospectus, technical reports and otherregulatory filings of Ontario-based mining companies.

Luc Arsenault (right), geologist with the Autorité des marchés financier, is responsible forNI 43-101 compliance reviews of prospectus, technical reports and other regulatoryfilings of Quebec-based mining companies.

| COLUMNS

June/July 2010 | 49

macfactsThe minerals and metalssector accounted for 48per cent of the 282 milliontonnes in commodity volumes carried by the railroads in Canada in2007.

6. We substantially amended the tech-nical report form by:

• Making the form less prescriptiveand more adaptable for advanced-stage and producing properties.

• Allowing the Qualified Personmore discretion regarding the levelof detail required under each sec-tion, based on stage of developmentof the property.

• Replacing Item 25 with eight newitems that reflect the major compo-nents of various economic analysis.

7. We amended the companion policyto track the sections of NI 43-101 towhich it refers, and remove or updateold guidance, and add new guidance

8. We made a consequential amend-ment to the short form prospectusrules to allow firms that employ Qual-ified Persons to sign expert consents,rather than the Qualified Person, ifcertain conditions are met.

For more information about theseand other proposed changes, and howto provide your written comments, seethe CSA Notice and Request for Com-ment (April 23, 2010). Copies of thisnotice and the revised instrument,form and companion policy are posted on the websites of CSAmembers.

www.bcsc.bc.ca/policy.aspx?id=9974

www.osc.gov.on.ca/en/15019.htm

www.lautorite.qc.ca/userfiles/File/Consultations/100423-43-101fr-conspubl.pdf

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The aftershocks in the international business commu-nity from the lengthy jail sentences recently issued by acourt in Shanghai to four mining company executives onbribery-related charges are gradually subsiding. In theirwake, however, is a heightened awareness that the corpo-rate risk landscape has changed. “It is no longer possiblefor companies or employees to resort to corrupt practicesand bribes without risking serious domestic and interna-tional consequences,” declares Transparency International.

Corruption is the abuse of entrusted power for privategain. Over the last 30 years, a legal minefield of domesticand international anti-corruption legislation has been cre-ated to stop it. Now, almost all countries have their owndomestic anti-corruption legislation, and over 100 coun-tries have signed onto various international anti-bribery orcorruption conventions. One way or another, a Canadiancompany conducting business in or outside of Canada iscovered by such legislation.

Defining corruptionAn outline of international and Canadian standards � Dianne Prupas

COLUMNS | eye on business

AMC Consultants.

the business of mining.

GeologyMining EngineeringNI43-101 ReportsFeasibility StudiesDue DiligenceUnderground & Open Pit

amcconsultants.ca

Expert. Quality. Advice.

Photo: Greg Tossel

The most far-reaching of this legislation is the U.S. For-eign Corrupt Practices Act (FCPA) that was enacted in1977. Canadian companies listed on a U.S. exchange needto carefully consider its extraterritorial effects. It criminal-izes the payment or offer of a bribe to a foreign official,political party, party official or political candidate any-where in the world when the impugned acts were commit-ted by a U.S. concern or U.S. issuer for the purpose ofobtaining a business advantage. It also creates record-keep-ing and reporting obligations in respect of any payments toforeign entities or individuals for all companies listed on aU.S. stock exchange or otherwise subject to the U.S. Secu-rities and Exchange Act.

In Canada, the Criminal Code creates various offences forindividuals and corporations that bribe Canadian officialsand in 1999, Canada ratified the OECD [Organisation forEconomic Co-operation and Developement] Convention onCombating Bribery of Foreign Public Officials in InternationalBusiness Transactions by enacting the Corruption of ForeignPublic Officials Act (CFPOA) to address internationaloffences. The CFPOA forbids the conferring of (or offering,aiding or conspiring to confer) any benefit for the purposeof influencing a foreign official to misuse their power inorder to gain a business advantage. It also prohibits the pos-session of the proceeds from such impugned activities. Thereach of the CFPOA is more restricted than the FCPA, how-ever, and to be subject to its jurisdiction, a material portionof the impugned activities would have to have been com-mitted in Canada. This has been interpreted to include actsby a Canadian citizen or a business entity incorporated orregistered to do business in Canada, as well as acts that oth-erwise have a material impact on Canadians.

Penalties for breach of anti-corruption statutes aresevere. Under the CFPOA, for example, there is no statuteof limitations; the fines that can be imposed do not haveprescribed maximums; and natural persons can, addition-ally, face jail sentences of up to five years. Violations of theanti-corruption provisions of the Canadian Criminal Codecarry a ten-year maximum jail term. Under the U.S. FCPA,violations carry both criminal and civil liability. Corpora-tions are subject to fines of up to US$2,000,000 peroffense; individuals are subject to prison sentences of up tofive years and fines of up to US$100,000. In 2009, the U.S.Department of Justice imposed penalties in FCPA mattersof US$817,300,000, almost double the aggregate penaltiesit imposed in 2008 and more than tenfold the fines itimposed in 2007.

There is no legislation obliging companies to have ananti-corruption compliance program. Nevertheless, the


advised to adopt a conservative approach to complianceand implement robust anti-corruption compliance pro-grams that, as recommended by the U.S. Federal Guide-lines, are effective in creating an organizational culture thatencourages ethical conduct and a commitment to compli-ance with the law.

www.fasken.com/global-mining

CIM

About the author

Dianne Prupas, corporate/commercial associate at FaskenMartineau DuMoulin inJohannesburg, is active in the area ofinternational law and cross bordertransactions, and is a member of thefirm’s Global Mining Group.

9:58 AM

eye on business | COLUMNS

U.S. Federal Sentencing Guidelines (U.S. Guidelines)include provisions for the possible mitigation of penaltiesif an offending company can demonstrate it has imple-mented an effective compliance program. Although mitiga-tion on this basis is not formalized in other jurisdictions, itis reasonable to expect more leniency by prosecutorswhere a strong anti-corruption program is in place. TheU.S. Guidelines’ recommendations for an effective compli-ance program have generally been accepted as the globalstandard for such programs and are summarized below.Note the regulatory compliance guidance promulgated byCanada’s Competition Bureau is substantively similar.

The U.S. Guidelines for establishing an effective anti-corruption compliance program provides the following:

1. The company must promote an organizational cul-ture that promotes compliance with the law and an ethicalculture.

2. The promotion of an organizational culture thatencourages an ethical culture entails the following: • The company must establish standards and procedures

to prevent and detect criminal conduct. In this regard,the company’s directors must ensure that senior man-agement implements a compliance program for whichoperational responsibility has been delegated to specificpersonnel with appropriate authority and resources.

• The company’s directors must also be knowledgeableabout the content and operation of the compliance pro-gram and exercise reasonable oversight thereof.

• The company must use reasonable efforts to excludefrom its senior management any individual who hasengaged in conduct inconsistent with the principles ofits anti-corruption program.

• The company must regularly communicate and train itsemployees and agents on the standards of conductestablished by its compliance program.

• The company must monitor and audit its operations todetect criminal conduct, including creating a system foranonymous reporting of concerns or violations.

• The company must also promote and enforce the pro-gram through the creation of employee incentives anddisciplinary measures.

• The company must respond appropriately in the eventcriminal conduct is detected.In recent years, there has been an intensification of

enforcement of anti-corruption legislation globally. Canadaassembled an international anti-corruption team of theRCMP in 2007, resulting in a dramatic increase in activeinvestigations. The U.S. Department of Justice prosecutedmore FCPA actions in the last two years than in the preced-ing 20 years combined. With this increasing vigilance andgiven the severity of the penalties, companies are well-

June/July 2010 | 51

COLUMNS | HR outlook


Women account for only 14.4 percent of the mining industry workforce— the lowest representation amongprimary industry categories in Canadaaccording to a recent study released byWomen in Mining (WIM) Canada inpartnership with MiHR.

The two organizations have joinedforces to launch “Ramp-UP: A Studyon the Status of Women in Canada’sMining and Exploration Sector” tohelp employers achieve gender diver-sity in the workplace and to help cre-ate more career opportunities forwomen in the mining sector. Thestudy surveyed female employees andstudents, employers and educators onissues such as working conditions andretention, work-life support, opportu-nities for advancement, school-to-work transition, and level of awarenessand long-term appeal of mineral sectorcareer opportunities.

MaryAnn Mihychuk, president ofWomen in Mining Canada, says therewas a real need for this type of study toestablish a baseline to measureprogress and to “address thedichotomy between industry percep-tion and women’s needs.”

Diverging perceptionsRamp-UP revealed a marked differ-

ence in the perspectives of women,sector employers and educators. One-third of educators and employersbelieve that working conditions needto be addressed. With the exception ofthe need for flexible work arrange-ments, employers were more likely toreport that no female-specific barriersexist in the sector. By contrast, nearlytwo-thirds of female employees believethat some working conditions need tobe addressed for women to succeed inthe industry.

Heather Bruce-Veitch, HR generalmanager at the Iron Ore Company ofCanada and Ramp-UP steering

Ramp-UP studyUnderstanding the status of women within the Canadian mining sector� Lindsay Forcellini

Industry is invited to becomeinvolved by participating in the VirtualMineMentor Program, SpeakersBureau or by sponsoring these pro-grams to ensure career outreach con-tinues.

Looking aheadAn increase in women’s participa-

tion in the sector offers many potentialbenefits, including solutions for alooming skills shortage, increasedinnovation potential and enhancedproductivity, as well as increasedworkforce retention. And women areup to the challenge.

“Women are ready and willing toaccept any and every challenge in thisindustry, from operations to the board-room,” says Mihychuk. She adds thatit is important for employers to have aclose look at their workforce andboardroom to see if there is an oppor-tunity for improvement and to try anew diversity strategy.

Going forward, it is also importantfor employers to set specific, mea-sureable goals in their diversity strat-egy, such as acquiring safety equip-ment in women’s sizes, and to “keeplearning from each other to ensurewomen’s issues are heard by all min-ing companies, regardless of size,”adds Bruce-Veitch, who is confidentthe industry is moving in the rightdirection towards creating a diverseworkforce.

www.mihr.ca

CIM

About the author

As marketing and communications coordinator, LindsayForcellini is responsible for supporting MiHR’scommunications and online media initiatives, and coordinatingthe production of marketing and communications materials.Formerly a writer for Natural Resources Canada, she holds abachelor’s degree in journalism from Carleton University.

committee member, says she was sur-prised to learn that employers believethey have gone further in the progressof female participation, while womenin the sector disagree. “This disconnectsends a message to keep the momen-tum going,” she adds. “Employers aredemonstrating progress but employeesare saying there is still far more work tobe done to get to where we need to be.”

The major issue identified wasinflexible work arrangements. Thesecond most important challengereported by women participants wasworkplace culture, which was closelyfollowed by the need to travel andwork in remote locations. The issuewas not that women cannot travel, butrather about receiving ample notice ofassignments. Providing schedulingflexibility was also identified as some-thing that would assist female workersin coordinating home and workresponsibilities.

Coming togetherMiHR’s partnership with WIM

Canada on the study builds upon theCouncil’s continued commitment tomaking workforce diversification anindustry priority. An important aspectof Ramp-UP focuses on post-second-ary students to make them aware ofthe opportunities in the minerals sector. “Explore for More,” the miningindustry’s career brand, promotes min-ing as a career of choice, and targetsunder-represented groups, includingwomen.

canadians abroad | COLUMNS

June/July 2010 | 53

As deposits go deeper and deeper,new technologies will be the key totheir successful extraction. With itsfocus on technological advancements,the Canadian mining industry has areal opportunity on the global front.“The only other country comparableis Australia,” says Richard Moore,vice-president exploration for Vis-mand Exploration. “With a renewedthrust for innovation in explorationhere in Canada, we’re looking forwardto exciting times.”

Beginning in 1989, Moore spenttwo years living in Bonao, a village inthe middle of the Dominican Repub-lic, while working for Falconbridge atits Falcondo operation. During thisassignment, he was tasked with intro-ducing technology to the small explo-ration group which, at the time, wasfocused on base metal deposits.

Persuading the group to embracetechnology — especially computers— required a cultural change. “Myaim was to get the geologists to thinkmore for themselves,” Moore recalls.“There was a tendency to allow the‘boss’ to make all the decisions. But weencouraged the geologists to use theirknowledge and experience to makedecisions on their own and to thinkforward.” With Moore, the groupworked on longer term project plan-ning, focusing on efficiencies androbust systems, and overcoming thetendency to simply plan for today.

Moore says it was a fantastic expe-rience for him, although he regretsnot having learned the language.“Unfortunately, the group all spokeEnglish quite well, so I never devel-oped a good understanding of Span-ish,” he says. “I recommend to anyonegoing overseas, to put effort intolearning the language. You’ll get somuch more out of being there. Justembrace the language and culture andlearn.”

The problem solverA Canadian provided technology support around the globe � Heather Ednie

While living in the DominicanRepublic, Moore travelled to Chile anumber of times to consult on the Col-lahuasi project for Falconbridge, whichat the time, was under exploration.Moore’s role was to give feedback toFalconbridge and make recommenda-tions on what should be done differ-ently, as the company was not the oper-ator of the joint venture.

“The partners were sinking a shaftin a small copper vein operation,” herecalls. “We thought it was inappropri-ate and succeeded in changing theexploration program to a broader one.This led to the discovery of the Ujinadeposit — a shallow, porphyry depositof high-grade, super gene enrichment.”

In 1995, Moore began a new rolewith Falconbridge, which he dubbed“exploration manager of all the parts ofthe world no one else wanted to have.”He covered Asia, Russia and thePacific, and began racking up frequentflyer miles as he jetted to various inter-national destinations.

Moore’s team developed explorationprojects in Russia and, with nickelexploration as a focus, he travelled

throughout India, the Philippines andAustralia. “We didn’t have huge budg-ets, but we found tremendous explo-ration opportunities and it was veryeasy to get joint-venture partners,” hesays. In Russia, there was an abun-dance of tremendous skills but the con-cept of “economic deposits” was miss-ing. “They were used to the idea of pro-viding a commodity as needed, no mat-ter what the costs,” he adds.

The culture in Russia at the timeplaced value on very hard work andworkers had a strong sense of preserva-tion. There was a tendency to hold backnecessary information as a safeguard.But their abilities were obvious. “Iremember one time in the bush think-ing, ‘if ever there’s a group of people I’dwant to be abandoned with in the bush,this group is the one,’” Moore says. The16-person team he is recalling included15 with PhDs. “The one guy with aM.Sc. was relegated to being the cook,”Moore laughs. “There’s incredible train-ing and skills available.”

In 1999, Moore became Falcon-bridge’s director of technology support,ensuring that they were using the latesttechnologies and supporting researchas required across the company. Mostof it was Canadian, although whennecessary, they looked elsewhere, suchas to Rhodes University in SouthAfrica. “You go where the best peopleare to solve problems,” he adds.

Currently with Vismand Explo-ration, Moore works on projects inGreenland, Chile, Spain and Canada.Having gone to Greenland with Falcon-bridge years ago to shut down a project,he returned with Vismand and, usingdeep search technologies, answered theoriginal problem posed by that project.“However, issues persist with high costsof drilling, so the project is now parkedonce again,” he adds. “The potentialremains — it’s a technology problem —one to solve in the future.” CIM

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Richard Moore examines flood basalts while exploringfor nickel deposits on Disko Island, Greenland.

Chaque année, les étudiants dudépartement de Génie des mines et dela minéralurgie et de Génie desmatériaux et de la métallurgie de l’U-niversité Laval organisent un voyagede quelques jours en Abitibi pendantla semaine de relâche. Ils visitent dif-férentes compagnies minières qui ontl’amabilité de les accueillir et de mon-trer leurs infrastructures et diversesopérations en cours. Le but premierde cette activité est d’informer lesnouveaux arrivants au baccalauréaten leur offrant un aperçu des réalitésdu terrain.

Comme toutes les mines sont dif-férentes, cette expérience trèsenrichissante et agréable renseignesur plusieurs aspects de l’industrieminière. Cette année, la visite com-prenait : le Projet Westwood deIAMGOLD, situé sur le site de la mineDoyon, la mine Goldex d’Agnico-Eagle et le projet Canadian Malarticd’Osisko.

Le premier jour, le groupe de 25étudiants et le directeur du départe-ment M. Jacek Paraszczak se sont ren-dus sur la propriété IAMGOLD pour

Une expérience inoubliableUn groupe d’étudiants de passage en Abitibi� Philippe Groleau

visiter le projet Westwood. Quel pro-jet! Un puits foncé à l’aide d’uneimmense aléseuse et la constructiond’un chevalement de calibre national.C’est un projet que plusieurs scep-tiques croyaient impossible à accom-plir. En matinée, un groupedescendait par la rampe Warrenmacpendant qu’un autre visitait les instal-lations de surface, puis les groupesont changé de place. C’était pour cer-tains leur première descente sousterre et les questions étaient nom-breuses.

Le projet est déjà bien avancé maisil n’est pas encore rendu au stade deproduction. Cette visite nous a per-mis de voir les différents problèmes etcontraintes rencontrés lors du démar-rage d’une nouvelle mine.

Durant l’après midi, nous avonsvisité le concentrateur de la mineDoyon. C’était le moment de voir etd’apprendre le fonctionnement d’uneusine de traitement. C’est la partieplus attendue par les adeptes demétallurgie mais les gens de minespouvaient voir ce qu’il advient duminerai une fois qu’il est extrait.

Pendant cette visite, quatre chanceuxpigés au sort sont descendus dans lepuits en fonçage et ont pu observer letravail avec un « Galloway ». C’estune opportunité très rare qui a été trèsappréciée. Le lendemain, à la mineGoldex, nous sommes descendus sousterre; c’était un instant spécial pourceux qui descendaient dans une cagepour la première fois. La visite dugarage et des différents entrepôts étaitau programme, suivie d’une visite dela salle des marteaux et d’un chantierlongs trous en pleine opération de for-age, tout pour épater et intéresser. Cefut très complet comme visite, inclu-ant même le concasseur à mâchoiresgéant, avant de remonter à la surface.La mine Goldex utilise une méthodede minage totalement différente desautres mines ainsi que des appareils àla fine pointe de la technologie.

En après-midi, nous avons visitél’usine de traitement. C’est très dif-férent d’observer une usine relative-ment neuve où rien n’a été ajouté paraprès ce qui complexifie le réseau dela pulpe. L’usine est presque com-plètement automatisée et les


COLUMNS | vie étudiante

Le dome à la mine Goldex; Photo de groupe devant les camions de 250 tonnes d’Osisko; Chevalement du Projet Westwood d'IAMGOLD en construction. Photos courtoisie deJacek Paraszczak et Philippe Groleau.

An unforgettable experienceA group of students visits the Abitibi region of Quebec

Every year, the students in Laval University’s Mining, Metallurgy andMaterials Engineering Department organize a multi-day trip to Abitibi tovisit mining companies that are generous enough to play host to a group ofstudents, giving them a tour of their site infrastructures and various opera-tions. The main goal of the trip is to provide the undergraduate studentswith a glimpse of the realities of the field.

The experience was as much fun as it was enriching, and it providedinformation on many aspects of the mining industry. This year, the tourincluded: IAMGOLD’s Westwood Project, located at the Doyon Mine;Agnico-Eagle’s Goldex Mine; and Osisko’s Canadian Malartic project.

On the first day, the group of 25 students, along with our departmenthead, Jacek Paraszczak, made its way to IAMGOLD’s Westwood projectwhere a shaft was sunk using a huge boring machine and a headframe wasunder construction. This is a project that many skeptics thought impossi-ble, yet it is now well advanced. As half of our group went down the War-renmac ramp, the other group visited the surface facilities; then they tradedplaces. This project enabled us to see the various problems and constraintsthat can arise when starting up a new mine.

In the afternoon, we learned about the inner workings of a processingplant during a visit to Doyon Mine’s concentrator. During this leg of thetour, four lucky students were picked to go down into the shaft that wasbeing sunk and were able to observe the work being done with a Galloway.This was a very rare opportunity that was greatly appreciated.

The next day we went underground at the Goldex Mine; it was a specialmoment for those of us who were heading down in a cage for the first time.The day’s program included a tour of the garage and various warehouses,followed by a visit to the crusher room and a longhole stope, where drillingoperations were in full swing. We even got to see the giant jaw crusherbefore heading back up to the surface. The Goldex facility uses a totally dif-ferent mining method than other mines, as well as cutting-edge equipment.

Later, we visited the relatively new processing plant — how different itwas to see a plant where nothing has been added after the fact that wouldmake the pulp network more complex. The facility is almost completelyautomated and as such, the operators must keep their eyes peeled on sev-eral screens to make sure that operations are proceeding smoothly. Finally,before we left, we had a chance to see the large friction winch control room,and to go up to the top of the headframe for a first-hand look at its opera-tion.

The last day started with a bus tour of Osisko’s Canadian Malartic proj-ect where we were able to travel alongside 250-tonne trucks — and take afew snapshots — before going to see the huge electric shovel. Finally, as theultimate ending to a great three-day trip, we were treated to the “noon blast”(approximately 25,000 tonnes!) — a “small” blast according to the Osiskofolks, but it was amazing nonetheless.

This year’s trip was made possible thanks to contributions by IAMGOLD,Agnico-Eagle, Osisko, MISA and CIM. Who knows? Perhaps we’ll do itagain next year!

About the author Sherbrooke native Philippe Groleau is finishing his second year inmining engineering at Université Laval. He is spending this summer doing an internshipat the Goldex Mine in Abitibi.

CIM

June/July 2010 | 55

opérateurs surveillent le bon déroule-ment des opérations sur de multiplesécrans. Puis, avant de quitter, nousavons eu la chance de voir la grandesalle de contrôle du treuil à friction etde monter jusqu’au sommet duchevalement pour le voir fonctionnerde nos propres yeux.

Le dernier jour a débuté par unevisite du projet Canadian Malartic enautobus. Nous avons eu la chance decôtoyer des immenses camions de 250tonnes et de prendre quelques photosavant d’aller voir l’immense pelle élec-trique. Finalement, « la cerise sur lesundae », nous avons assisté ausautage de midi (environ 25 000tonnes, un petit sautage selon les gensd’Osisko). Puis, après ces trois joursbien remplis, ce fut le retour à Québec.

Un grand merci encore une fois àIAMGOLD, Agnico-Eagle, Osisko,MISA et l’ICM pour leur contributionà cette belle expérience. Qui sait?Peut-être à l’année prochaine!

Auteur Philippe Groleau, un jeune étudiantqui termine sa deuxième année en Géniedes mines à l’Université Laval. Il est origi-naire de Sherbrooke et effectuera cet été unstage à la mine Goldex en Abitibi.

ICM

student life | COLUMNS

“At Cameco, safety is a corevalue,” says Rick Morrison,superintendent of safety, health,radiation and quality at the com-pany’s McArthur River operation.“It drills down from the CEO,right into the workplace. Work-ing safe is a required condition ofemployment.” This outlook onsafety garnered Cameco Corpora-tion’s McArthur River Mine the2009 John T. Ryan Trophy foroutstanding safety performance.

Over the last three years, thesafety culture at McArthur Riverhas developed significantly.Expectations related to safety areclearly communicated toemployees. Morrison says thecommitment from the top has tobe genuine to influence safety atthe site level. “People know whetheryou’re sincere or not.” Safety is oneof the key measures of success on site— it is integrated into the businessplan and is one component of thebonus system.

A real safety culture needs an emo-tional commitment to prevent com-placency. At McArthur River, thatemotion runs all too deep. The oper-ation experienced its first and onlyfatal accident in 2006. “It’s a terriblething to happen,” Morrison says. “Wewill never let it be forgotten. We’relike a family here. You don’t wantanyone hurt on your site.”

There is no one program for safetyat McArthur River but rather an arrayof programs and processes thatweave together to build the frame-work for a safe environment and fos-ter a culture of safety across the site.These programs are relatively stan-dard. However, by maintaining afocus on these procedures and instill-ing safety as a condition of employ-ment, McArthur River has achievedoutstanding results.

Walking the talkMcArthur River makes safety job one� Heather Ednie

Five points for safetyOne common element of

McArthur River’s safety program isthe Neil George Five-Point Safety Sys-tem. Developed in the late 1940s, thesystem is widely used across Quebec,Ontario and Saskatchewan. It lays outa systematic approach to ensuringworkplace safety through five compo-nents:• Checking the entrance and travel-

ways• Ensuring the workplace and

equipment is in good workingorder

• Making certain that employees areworking properly

• Performing a specific act of safetyin the workplace

• Determining whether employeescan and will continue to workproperlyThe system makes people ask

themselves about key elements ofsafety while in the workplace. Fromthere, action plans are formed. “Theimportant thing is, people areempowered to stop and make changes

when needed,” Morrison says. “It’salso important that the supervisorvisits employees in the workplace.And open communication is a must.Anybody with a safety concerndeserves an answer.”

Embracing the IRSIn 2009, the Internal Responsibil-

ity System (IRS) was rolled out jointlyby the mine management, the UnitedSteel Workers, and McArthur River’soccupational health and safety com-mittee. “The IRS outlines layers ofresponsibilities,” Morrison explains.“Everyone has the right to a safeworkplace. Everyone has the right toparticipate in the safety process. Andeveryone has the right to refuseunsafe work.”

Lead indicators are built around thesafety lag indicators. For example, jobtask observations, or contact efficien-cies (visits by the supervisor in theworkplace), may contribute to under-standing the risks in specific tasks.

McArthur River employees knowthat all incidents are reported in the


COLUMNS | safety

Radiation exposure for all workers is carefully monitored as part of McArthur River's comprehensive safety program.

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Cameco incident reporting system(CIRS). McArthur River’s informationis merged in a database with that ofall other Cameco sites, allowing forcross-referencing and identificationof trends and potential risks. CIRSinformation is used to teach teamsand to set action plans to reduce risk.The company encourages employeesto report every incident, no matterhow small. This diligent reportingfeeds other safety procedures on siteand builds a more concise picture ofthe operations.

If a couple of incidents occur in arow, Morrison says his team begins toworry that it may be a trend. If that isthe case, they take action with asafety stand-down. Using creativemethodology, they investigate the sit-uation and take action to address anymounting problems that might exist.“We’re not afraid to stop work andaddress what’s happening; it’sexpected,” says Morrison. “It showsthe commitment to high safety stan-dards. It takes courage and moxy toprioritize safety to the point of stop-ping work, but it’s necessary. Wewon’t take any risks. It’s not worth it.”

Job hazard analysisThe job hazard analysis (JHA) is a

procedure for times when no proce-dures apply. All operations, includingMcArthur River, have many proce-dures in place, but often employeesfind themselves performing unfamil-iar tasks. That is when a JHA is carriedout. The group gets together andagrees on how the task will be doneand writes up the procedure. If, whendoing the task, it is decided to deviatefrom the written procedure, the groupmust come back together to agree onthe altered approach. “JHAs recognizerisk and put controls in place to miti-gate that risk,” Morrison adds. “Wehave JHAs frequently — at least daily.”

Although the focus of a strongsafety program is on preventing inci-dents from occurring, McArthurRiver’s mine rescue team and emer-gency response team are both excep-tional. Cameco allocates a great dealof training to these teams. Not only

an asset in case of emergency, theobvious corporate support for theseteams underlines the company’s com-mitment to safety standards.

Home at the end of the dayA number of support systems add

to the safety program onsite. Theseinclude the Safety, Health, Environ-ment and Quality System; the Con-tractor Management Program; strin-gent safety standards; and a fullydeveloped program on preventativemaintenance. All these programs aresupported by a systematic approachto training.

Morrison says that Cameco reallywalks the talk — and proves it. The

June/July 2010 | 57

safety | COLUMNS

Giving backFulfilling needs

UNICEF and the International Zinc Association (IZA) have joined forcesin the Zinc Saves Kids campaign launched on January 27 during the WorldEconomic Forum in Davos, Switzerland. Don Lindsay, chairman of IZA, pre-sented UNICEF executive director Ann Veneman with a check for US$1.66million as part of IZA’s multi-year commitment to this initiative. In addition,IZA will contribute to support UNICEF’s relief work in Haiti.

The initiative will raise funds to support UNICEF’s zinc supplementationprograms for children in developing countries. “Scaling up the use of thera-peutic zinc could prevent an estimated 300,000 diarrhea-associated childdeaths annually,” said Veneman. “This initiative will expand delivery of zincsupplementation to children in the world’s poorest and most remote commu-nities.”

“Children are our greatest resource, and our industry is committed toworking with UNICEF to raise the awareness of zinc deficiency in childrenworldwide and to raise funds to help solve the problem,” said Lindsay.

level of regulatory scrutiny is high inuranium mining, so the company hasstringent audit programs to ensurethey are doing what they claim. Theircommitment to safety goes beyondcompliance and recognizes workersafety as the most important aspect oftheir operations.

“We have a terrific team here. Ourpeople are the number one reason forour success,” Morrison adds. “This iswhy I like being part of the McArthurRiver team. I really believe the seniorexecutives believe what they’re say-ing, and safety truly is the companypriority.”

www.cameco.com

CIM

Some problems are nice to have.Such is the case for Claude Resources’Seabee Gold Project at Laonil Lake,Saskatchewan, where continued explo-ration success has resulted in a chal-lenge to expand tailings facilities tomeet the extended mine life capacity.

Seabee Mine entered production in1991, with a planned mine life ofthree years. Now, almost 20 yearslater, it is still going strong, with noend in sight. The original tailingsfacility, designed for three years ofoperation, was modified in 1997(including changes in the mill) tohandle production up until 2004, atwhich point a new facility that wouldcarry production through 2009 wasdesigned and constructed.

Expanding upIncreasing tailings capacity by adding new layers to an existing facility� Heather Ednie

However, with permitting under-way (since obtained) at the Santoy 8— another satellite gold deposit —combined with continued extensionof reserves in the main Seabee Mine,the need for greater tailings capacitywas imminent. Golder Associateshelped with the permitting of theSantoy 7 satellite deposit and wasretained again in 2007 to find optionsfor another facility.

Finding the solutionLeon Botham, principal, Canadian

mining sector leader for Golder Asso-ciates, says his team looked at a num-ber of options to expand tailingscapacity at Seabee. They investigatedthe local area for opportunities to

build a new facility, but found noth-ing they deemed reasonable withoutusing another lake, which was notideal. No options were presented atan acceptable cost to meet the neededcapacity.

So, the team returned to the exist-ing tailings facilities and got creative.East Lake was part of the originalconstruction and was filled to capac-ity in 2004. A second facility at Trian-gle Lake was nearly, but not quite,full. With creative juices flowing,Botham’s team turned their sights onexpanding the Triangle Lake facility.Although the dams’ design requiredmodification, it was the easier of thetwo to expand.

“The original dams are essentiallyconcrete walls, which made it easierand less costly to raise the existingtopography,” Botham explains. “Wewent from concrete walls to rockfilldams with geomembrane liners. Byraising the structure, we were able togive three more years’ capacity to theTriangle Lake facility.”

At East Lake, there is highground on the west side and dams


COLUMNS | engineering exchange

East Lake tailings management facility, Seabee Mine

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Panoramic view of the Seebee Mine site

all the way around the rest. Thechallenge was what to do with theexisting topography on the westside. “We chose a method that hadbeen used in other places, such as ineastern Canada, but never inSaskatchewan,” Botham says. “Wewill build rockfill dykes on top ofthe existing tailings. New tailingsproduced will be deposited in cellson top of the existing tailings facilityand the water will flow down.” Inthe stacked tailings, the dykes willcontain the solids, and the waterfrom the tailings slurry will flowthrough the dykes to be collected inthe existing pond.

In total, the two expansions willallow for about five and a half years’additional tailings capacity forSeabee. Knowing the mine plan ismost likely to extend beyond that,plans for a second Triangle Lake tail-ings facility expansion are already inplace. Although this second expan-sion has not yet been permitted, theplan is to dam off an adjacent lowlying area and use the same tailingsstacking method employed at EastLake.

The first Triangle Lake and EastLake facilities expansions recentlyreceived regulatory approvals, withconstruction set to start when thesnow melts. A remote camp, there isan ice road in the winter, but only fly-in access the rest of the year. ClaudeResources will use their own on-siteequipment to build the new tailingsmanagement structures.

During construction, the biggestchallenge will be at the East Lakefacility. “The tailings we’re buildingon are still saturated, so when webuild on them, pore pressure willincrease,” Botham says. “We’ll needto allow that pressure to dissipate aswe go. So a key part is going to be get-ting the timing correct, by controllingthe rate at which the fill is placed.”

Going forward, the plan is for theEast Lake tailings facility to operatein the summer and the Triangle Lakefacility in the winter. The objectivesare to get both facilities built as

quickly as possible and into use thisyear.

“This will be a demonstration proj-ect for the Saskatchewan regulators asthe stacking method is new to theprovince and will show it does worksafely,” Botham adds. “The success ofthe East Lake expansion will enableeasier permitting for the secondexpansion of Triangle Lake.”

Permitting was a challenge, as thestacking method at the East Lakefacility was new. It required a trulycollaborative effort to keep the gov-ernment informed. Botham says that

Claude Resources Inc. and GolderAssociates are a real team and workedas one to communicate with the gov-ernment to ensure their proposal waswell-understood.

“It’s been an educational projectfor me and an interesting challenge,”Botham adds. “It’s exciting — we’renot just looking at an additional five-year life, but we’re focused on thehorizon, and we’ve identified how tokeep going forward.”

www.golder.comwww.clauderesources.com

CIM

June/July 2010 | 59

engineering exchange | COLUMNS

Proposed layout of the East Lake tailings facility

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When Catharine Shaw began work-ing in the mining industry, the firstthing that impressed her was the peo-ple. “They are passionate and driven,and the industry is a whole commu-nity unto itself,” she explains. “Thecommunity is small but the projectsare huge, and they have massiveimpact on everyday life. I had noknowledge of mining before — it’s nottaught, not talked about, but it’s allaround us. I want to be a part of theindustry for the rest of my life.”

The Golder girlThis August will mark eight years

for Shaw at Golder Associates,although she only joined the mininggroup in 2005. “I’m a huge advocatefor Golder Associates — I get a littletenacious about it at times,” shelaughs. “It’s like going to school — I’mlearning all the time.”

Currently continuing her educationin business studies, Shaw was previ-ously involved in a number of startupcompanies, including her first ventureseveral years ago launching a designateddrinking and driving service in Vancou-ver. Soon after, she decided it was timeto work in a more corporate setting.

When she learned about GolderAssociates, the employee-ownershipmodel was a major factor in her deci-sion to come on board. “All my previ-ous work had been independent,” sherecalls. “The employee-owner modelwas a real attraction.” At Golder, Shawis responsible for marketing and busi-ness planning and implementation,with a key focus on client relation-ships for mining across Canada; inaddition, she works with mining lead-ers around the globe.

“My main focus is on implementingthe strategic initiatives for the year anddeveloping the marketing programthat compliments our strategy,” sheexplains. ”I’m part of Golder’s mining

A networker and connectorGolder’s Shaw immersed in mining� Heather Ednie

client sector program in Canada. As amember of that team, I provide themining industry with a name and aface of Golder — it’s like being a con-duit for information. I am a networkerand a connector — the focus is on get-ting things done.”

Shaw’s abilities are being recog-nized. In 2008, she won Golder Asso-ciates’ President’s Award for Excellencein Customer Service and New Clientand Business Development.

Her aim is to become an associate,and considering it takes peer recogni-tion, a strong profile (both internallyand externally), a demonstration ofcommitment, and of working and liv-ing the core values, it sounds likeShaw is already on the right path.

Industry advocateOnce introduced to the mining

industry, Shaw wasted no time gettinginvolved. She had been active with CIMas a Toronto Branch member and waspart of the organizing committee for theCIM Conference and Exhibition in2009. This year, she was appointed theinterim chair of the CIM MississaugaBranch during its startup. She is excitedabout the endeavour and honoured by

the recognition. “I believe in the pur-pose of the proposed branch — wehave a whole pool of resources and peo-ple here, and the desire for more tech-nical information,” she says. “It’s a greatopportunity for collaboration. I’m look-ing forward to working with the otherbranches and submitting our proposalto Council to fully launch before theyear’s end.”

Shaw is also involved with Womenin Mining (WIM) Canada, serving asits secretary and co-chair of the com-munications committee and, for thefourth time, being part of the WIMteam in the Weekend to End Women’sCancers. And last October, WIMCanada was incorporated. “It’s been awonderful adventure,” Shaw says. “Itstarted with a group of women andtheir vision of a need for a nationalvoice and formulizing purpose. In ashort time, we’ve incorporated, com-missioned and publicized a genderstudy entitled Ramp-UP, and held twosuccessful events. Now is the time torally and get going — we have a lot ofmen and women interested.”

Shaw’s passion about the miningindustry extends to her concerns overattracting the best workforce fortomorrow, especially in the businesssectors. She wants to see miningbecome part of the Grade 3 curricu-lum, at an age when children start toidentify with the world. And, she high-lights a need for mining spokespeopleto give talks at the university level, innon-traditional fields.

“We need to give presentations onhow their skill sets would be well-applied in this industry and get themthinking ‘mining,’” she explains.“We’re a consumer society, all aboutproducts — so people don’t see min-ing. We need to get the good story ofmining out there.”

www.golder.com

CIM


COLUMNS | women in mining

Catharine Shaw

first nations | COLUMNS

June/July 2010 | 61

At this year’s Learning Togetherconference in Vancouver, one of thepresenters spoke of the increasingneed for junior exploration and min-ing companies to build and strengthensolid relationships with regional Abo-riginal communities. He referenced arecent incident that took place in theRing of Fire where exploration washalted during a blockade by the FirstNation communities of Webequie andMarten Falls as a result of poorly man-aged relationship building, and theflow of funding to these projects wasstifled. He went on to say that BayStreet is finally starting to realize theimportance for companies to nurturestrong Aboriginal alliances and part-nerships. Another of our presenters,Learning Together director Jack Black-smith, focused on community engage-ment and corporate social responsibil-ity. In short, these topics have neverbeen more relevant.

The sometimes inflamatory andstrained relationship between industryand Aboriginal communities mightprompt government intervention asthey attempt to implement what theyperceive to be a measured approach forrelationship building. However, theimpacts of this could be detrimentalfor both Aboriginal communities andindustry. Bill C-300, for example, cur-rently making the rounds in Parlia-ment, has a lot of merit on the surface.However, when you stop and thinkabout the thousands of other cases in

The drawbacks of the government regulating Aboriginal and industry relationships� Juan Carlos Reyes

which the relationships between com-munities and industry have been phe-nomenal, this new regulation mightcreate unnecessary complications.Otherwise amicable relationshipscould be strained by giving morepower to the naysayer.

The summary section of Bill C-300states: “The purpose of this enactmentis to promote environmental best prac-tices and to ensure the protection andpromotion of international humanrights standards in respect of the min-ing, oil or gas activities of Canadiancorporations in developing countries.It also gives the Minister of ForeignAffairs and Minister of InternationalTrade the responsibility to issue guide-lines that articulate corporate account-ability standards for mining, oil or gasactivities and it requires the Ministersto submit an annual report to bothHouses of Parliament on the provi-sions and operation of this Act.”

Unless more is done to ensure thatthe all-too-frequent incidents of shat-tered relations occur much less fre-quently, everyone will be forced tolive with a government-implementedrelationship strategy that will limitthe freedom to negotiate in goodfaith. And many of our companiesand Aboriginal communities do notrequire this intervention. There areindeed many partners with limitedresources that have nonethelessdeveloped very ingenious andrespectful ways to engage and become

meaningful partners, despite this lackof funding.

For example, there was a smallexploration company doing work withWahgoshig First Nation that foundcreative ways to engage and incorpo-rate opportunities for the communityduring their drilling program. Theyengaged their driller as a trainer andbrought in young summer students ashelpers to assist with the work. With atight budget, this company was able todevelop a solid relationship with thecommunity that continues today. Myfear is that once a government strategyis implemented, some communitiesmight have very high expectations forwhat constitutes consultation, andaccomodation examples like Wah-goshig will no longer take place.

We need to increase the support fororganizations like the Canadian Abo-riginal Minerals Association (CAMA)and Learning Together that are work-ing hard to ensure that our Aboriginalcommunities receive ample informa-tion and assistance, including lessonslearned from past mistakes and cre-ative methods being utilized by othercommunities with great success. Theseorganizations are the ideal intermedi-aries for industry and Aboriginal com-munities as we forge new bonds ofcooperation on mutually beneficialterms — not those proscribed by gov-ernment.

www.learning-together.ca

CIM

About the authorJuan Carlos Reyes is an Aboriginalconsultant with efficiency.ca and theexecutive director of Learning Together.He is passionate about human rights andworks tirelessly to help improve the livesof Canadian Aboriginal people.

macfactsIn 2006, Canada exported around $410million worth or iron ore and $340 million in non-ferrous products andalloys via ship to the US, while importing $240 million worth of iron ore.

The Centre for Excellence in Min-ing Innovation (CEMI) in Sudbury hasfocused its R&D efforts on facilitatingthe delivery of step-change researchinitiatives identified as criticallyimportant to the mining industry. Itstrives to establish excellence in strate-gic areas of research — deep mining,mineral exploration, integrated mineengineering, the environment and sus-tainability — as highlighted in its 2009Annual Report.

The three major initiatives this yeartarget energy savings through use ofventilation on demand (VOD); rapidmine excavation through under-ground mine construction (UMC),with CEMI’s primary focus on associ-ated ground control requirements; andrisk identification and managementfor mining complex and deep ore bodies (GeoRisk).

In 2009, CEMI received $4.25 mil-lion of federal funding to install, test andmeasure the efficiency of novel VODtechnologies to decrease energy costsand increase productivity. This funding,in conjunction with funding from ValeInco, Xstrata Nickel, NRCan and theCanada Mining Innovation Council(CMIC), has allowed a more vigorousassessment of VOD. The initiative will:• Determine whether mobile equip-

ment can transmit exhaust quality-related information in an operatingU/G environment to better defineventilation needs.

• Compare the relative costs ofinstalling VOD at the outset of amine or retrofitting an existingoperation.

• Develop a better business modelthat can assess the incrementalcost/benefit of various stages ofVOD.

• Evaluate sensor reliability and den-sity.Additionally, Peter Kaiser, president

and CEO of CEMI, is working with

CEMI hones research initiativesThe focal points: ventilation, underground construction, geotechnical risk � Shannon Katary

Rio Tinto on a strategic research proj-ect in underground mine construction,specifically in the pre-operational con-struction phase of new mines, with afocus on high-speed mechanical shaftsinking and tunneling. Issues underinvestigation include innovative sup-port installation systems and new sup-port design methods, particularlywhen mining at depth or in highlystressed ground. Rio Tinto initiallycommitted one million dollars toaddress ground control issues relatedto mechanized excavation at depth.

The GeoRisk project, whichincludes core contributors GolderAssociates, Itasca Canada, the Univer-sity of Toronto’s Lassonde Institute,Laurentian University, Mira Geo-science, MIRARCO, Queen’s University,

Vale Inco and Xstrata Nickel, will helpto identify, as well as mitigate andmanage, risks associated with complexdeep ore bodies in order to create saferworkplaces, reduce development time-lines and control fault slip groundmovement. The project addresses riskissues of concern to both investors andmining company management alikewhen accessing deep ore bodies incomplex geological settings. Theseissues include geotechnical matters,safety and economic concerns associ-ated with major capital investments,and higher operating costs in deepunderground mines, particularly thosesubject to “above-normal” geotechni-cal challenges.

The value of the project is clear: iflong-term investments are to flow to


COLUMNS | innovation

The CEMI team (front): Al Akerman, R&D program director; (first row) Natalie Lafleur-Roy, finance and operations;Jane Djivre, business development officer; Sandra Djivre, workshop coordinator; Peter K. Kaiser, president and CEO;(second row) Andrew Wilson, research engineer-in-training; Glenn Lyle, R&D program director; Keith Bullock, R&Dprogram director; (third row) Shannon Katary, marketing and human resources specialist; Benoit Valley, researcher;Damien Duff, R&D program director.

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deep Canadian mines, investor riskmust be reduced. R&D program direc-tor Damien Duff anticipates innova-tions to include better site characteri-zation; risk assessment in early minedesign, in particular through the use ofhazard mapping; advanced energyrelease controls and optimal minesequencing techniques.

The project is now being expandedto include a specific focus on the issueof fault slip rock burst controls inunderground mines. “It has becomeapparent from our industry consulta-tion that this issue is of fundamentalinterest to most mining companieswith deep mines,” says Duff. “Thescope and impact of this form of rockbursting is large enough that address-ing it will involve a coordinated inter-national research effort,” he adds.

Under Duff’s direction, CEMI hasbeen hosting a series of experimentaldesign workshops for its proposed

International Fault Slip ControlResearch Initiative (IFSCRI), a multi-million dollar, multi-year programintended to develop a globally recog-nized research initiative to improvefault slip control techniques in under-ground mines. Involving the input ofresearch and industry leaders in seis-micity, geophysics, structural and engi-neering geology, data integration andmodelling, as well as mine engineeringand other related fields, these multi-disciplinary round-table sessions havebeen providingvaluable insightsinto the novelresearch and tech-nology R&D proj-ects needed to bet-ter understand howto control theenergy release asso-ciated with fault

slip in underground high-stress orebodies.

These collaborations are the foun-dation for safer, more sustainablemines in the future. CEMI welcomesinterested participants to learn moreand get involved in this and otherexciting initiatives by visiting our web-site or contacting the author or R&Ddirectors directly.

www.miningexcellence.ca

CIM

June/July 2010 | 63

About the author

Shannon Katary is the marketingand human resources specialist forCEMI. She promotes CEMI and itsmandate through hosting variousactivities such as workshops,seminars, lecture series and forumsfocused on advancing CEMI’sstrategic research programs andprojects.


Finding silver in KenoStriking it big after the Klondike Gold Rush

� Correy Baldwin

It was in the fall of 1918 when LouisBeauvette, an expert woodsmanand occasional miner, came across

rocks containing silver ore while hunt-ing in the hills above Duncan Creek inthe backwoods of the Yukon. He begantracing the rocks further uphill to findtheir source, but it grew cold and beganto snow. He was forced to turn back,determined to return the followingyear.

Prospectors had long known thatsilver existed in the Yukon, but few hadsought after it. There, gold was every-thing. It was not only worth more thansilver but had more glamour as well.The Klondike Gold Rush was in fullswing just ten years earlier and the dis-covery on Bonanza Creek in 1896began a stampede that brought some40,000 entrepreneurs to the ram-shackled boomtown of Dawson City.

Like all booms, it did not last. First,gold was discovered in Nome, Alaska,and by the early 1900s, the largest golddeposits in the Klondike had begun tobe picked clean. The rest of the stam-peders were eventually drawn away tofight in World War I. For a time, cop-per mining responded to wartimedemands, but this, too, tapered offwhen the war ended. The Yukon econ-omy was on the verge of collapsing.

Luckily, a handful of men stuckaround to keep searching the creekbeds and hills for the next big find.They were in a relatively good position— Yukoners were becoming stampede-proof after too many false rumours,and there were far fewer prospectorsaround. The Duncan Creek area whereBeauvette was waiting out the winterwas nearly deserted.

Just as the snow clearedin early July, he heard thatan investor named FredBradley was in the area toconsider the LookoutMountain property. Hopingto entice him with his ownfind, Beauvette quickly setoff to claim his silver. Hesoon found the ore andtracked it to its source, where he col-lected samples and staked a claim. Butas he approached the town of Mayo, heheard the whistle of a steamboat as itleft for Dawson — he had missedBradley by mere minutes.

Beauvette was in a bind — heneeded his samples assayed, but he alsowanted to prospect the hill more thor-oughly before too many others heardabout his find. He approached JackPickering, whose Lookout Mountainproperty Bradley had just turned down,and who was now quite broke. The twoagreed to work together. Pickeringwould take the samples to Dawson andcatch Bradley, and Beauvette wouldhead back to the hill.

Pickering left on the next steam-boat, but when he got to Dawson hewas too late: Bradley was already gone.Pickering instead turned to the trustedAlfred Kirk Schellinger, an assayer forthe Yukon Gold Company. Schellingerwas so impressed with the samples —among the richest he had ever seen —that he packed some supplies and leftwith Pickering on the next steamboatback to Mayo. They were now a partyof three.

Meanwhile, Beauvette had enlistedJames Anderson, an experienced minerand a colleague of Pickering’s, to help

him prospect the hill. When everyonemet up in Mayo, they had become aparty of four. One more man wasrequired. Together, they hired theeccentric “Pegleg Scotty” Mowatt andhis two-horse team to carry supplies upthe hill in one of Pickering’s wagons.

Finally, after a brief incident in whichone of the horses left camp during thenight and Mowatt set off on wooden legto find it, all five men stood together ontop of Beauvette’s hill. Schellinger sur-veyed the area, and Beauvette andAnderson prospected more thoroughly,finding another silver vein. Together, onJuly 29, they staked and claimed thehilltop. There were six claims amongthem, including Beauvette’s originalRoulette claim — a nod to prospecting’sgambling spirit. Following his lead,Pickering named the spot after anothergambling game: Keno.

Schellinger returned to his office inDawson to assay the silver and to sellthe claims to Yukon Gold on behalf ofthe entire party. A rush to Keno Hillfollowed; the next year over 600 claimswere filed and over 100 men wereemployed on the Yukon Gold property.The town of Keno City was settled andby the middle of the 1920s, the Kenomines had brought the once-flaggingYukon economy back to life. CIM

Louis Beauvette, circa 1930s

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CIM CONFERENCE& EXHIBITION 2011

MINES WITHOUT BORDERS

Technical Program

SUBMIT YOUR ABSTRACTS TODAYwww.cim.org/montreal2011

PROJECTS BEST PRACTICESPEOPLE AND BUSINESS

MANAGEMENT

ENVIRONMENT & SOCIAL

RESPONSIBILITY

INNOVATION &TECHNOLOGY

EARTH SCIENCES

IRON ORE SYMPOSIUM

MON AM Plenary

MON PM Plan Nord I Environment & Water Management Safety Aboriginal

SuccessesFrancophonie

VI Geology IIron Resources: Availability

and Projects in Development

TUE AM Advanced Pre-Feasibility

Plan Nord II –Logistics

Francophonie IV –Work Force Planning I Environment CMIC – Case

StudiesRock

Engineering IMining Operations

TUE AM Design &Construction

Geotechnical –The Profitable Way

Plan Nord III –Work Force Planning II

Francophonie VInfrastructure I

Mine Planning & Management

SystemsGeology II Pelletizing

& Concentration

TUE PMDecommissioning

throughthe Life Cycle

Francophonie III –Supply Chain

Shareholders(NI 43-101, etc.)

Plan Nord IV –Infrastructure II

SMART –Surface Mining

Rock Engineering II

Environment and Advancesin Technology of Iron Ore

Reduction

WED AMFrancophonie I –

Regional EconomicDevelopment I

New Concepts in Mine Haulage and Automation

Finance & Management Day

Case Studies

Plan Nord V

WaterManagement

Highlights on Canadian andInternational Producers

WED AM

Francophonie II –Regional EconomicDevelopment II

Maintenance & Reliability

Finance & Management Day

The Next New Thing

EnergyManagement

Plan Nord VI

Closing Luncheon

WED PM Finance & Management Day Closing Plenary

CALL FOR ABSTRACTSUnder the theme of “MINES WITHOUT BORDERS,” CIM is developing a comprehensive technicalprogram, for which papers are currently being solicited. The program streams include: Projects, BestPractices, People & Business Management, Environment & Social Responsibility, Innovation &Technology, Earth Sciences and Iron Ore Symposium.

Papers written in French under the program themes are also being considered for the Franco phonie (a focus on projects in French-speaking countries); Plan Nord (a Quebec government initiative aimed atstimulating the economic and social development of the northern regions, for the benefit of thoseregions and also of Québec as a whole); and Iron Ore Symposium sessions, all of which will featuresimultaneous translations.

IMPORTANT DATESAbstracts submission: September 30, 2010 | Notice of acceptance: December 20, 2010

cim news

This past season’s CIM Distin-guished Lecturers Program — anattendance record-breaking success —featured outstanding speakers andinspiring individuals who captivatedCIM branch and society audiencesacross the country. Each field-leadingexpert left his mark, sparking discus-sion that is integral to fostering CIM’srole as a community for leading indus-try expertise.

Steve Scott delivered his talk,“Seafloor Massive Sulfide Mining –the Dawning of a New Industry,” at17 venues between January andMarch. The subject never failed togenerate enthusiasm and probingquestions about this new source ofbase and precious metals. He had fourversions of his presentation in bothofficial languages and delivered twoof them in French.

“After attending Steve Scott’s talk, Iemailed my old classmates with a

Beyond the podium CIM Distinguished Lecturers leave lasting impressions

By Robbie Pillo

must-attend recommendation at theirlocal branches,” said Ron Sinkiewicz,CIM Red Lake Branch chair.Sinkiewicz’s regard for Scott’s presen-tation is shared by MetSoc-CIMMcGill Student Chapter presidentNalini Singh who noted, “The possi-bility and reality of underwater miningcaptured the imagination of all, bypushing the lines of traditional miningventures.”

Over 13 CIM branches acrossCanada have benefitted from DonThompson’s timely address, “Settingthe Record Straight,” in which he dis-pelled the myths surrounding the oilsands industry and demonstrated thisindustry’s commitment to balancingsignificant development and economicbenefits without sacrificing environ-mental stewardship. “This presenta-tion should be a required part of highschool education across the continent,”said Fenna Poelzer, CIM Edmonton

Branch chair. “Thompson kept stu-dents and industry veterans equallyengaged by providing facts, citing hissources and encouraging everyone tonot only verify his points themselves,but to take advantage of additionallearning opportunities as well.”

Kelly Lendsay delivered a powerfulmessage in his talk on “AboriginalInclusion: A New World of Opportu-nity.” Pierre Verpaelst, Quebec Branchchair said, “He left an enduring andstrong impact on all who attended histalk.” CIM Edmonton Branch educa-tion chair Gord Morris noted, “Lend-say is on the right path to furtherenhance Aboriginal participation inthe workforce in Canada.”

Engin Özberk’s presentation,“Innovation and Uranium Miningfrom a Canadian Perspective,”attracted quite a lot of interest, includ-ing from our members up north.“Even though almost all our members


CIM DISTINGUISHED LECTURERS 2010–2011 LINEUP

MAHESH C.CHATURVEDI

University of Manitoba,Winnipeg, MB

The Role of Boron inDesign Superalloys

MICHAEL DOGGETT

HanOcci Group,Vancouver, BC

Long and Short of theMinerals Industry: ATale of Two Extremes

JAMES M. FRANKLIN

Franklin Geosciences,Nepean, ON

Future MineralResources Discoveries:New KnowledgeNeeded for Discovery

NORMAN O. LOTTER

Xstrata ProcessSupport, Falconbridge,ON

Modern FlowsheetingTechnology

DAVID D. RODIER

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

SustainableDevelopment – A Passing Fad or the Strategic WayForward?

BOOK NOW: www.cim.org/activities/lecturers2011.cfm

here are geologists, we found histalk to be very interesting andinformative,” said David Watson,CIM Yellowknife Branch chair.

According to Carmen Storey,CIM Red Lake Branch director, lec-turer George Kipouros “made acomplex topic understandable” withhis presentation titled “Materialsand Asset Integrity.”

Of course, the knowledgeexchange goes both ways. “The pro-gram provides an important serviceto its members, the community atlarge and the lecturer,” said SteveScott. “Long may it continue!”Scott’s enthusiasm was matched byThompson who said, “I wasvery honoured to have been invitedto speak to people who drive theCanadian economy.”

From corporate social responsi-bility to innovative exploration, theupcoming 2010-2011 CIM Distin-guished Lecturers series (see lineupon previous page) promises to keepaudiences up to speed on the nextwave of industry information anddevelopments. Be sure to book earlyand reap the benefits of this trulyremarkable opportunity. CIM

Lunchbox Winnersfrom draw at CIM Conference

and Exhibition 2010

BLACK MINERS LUNCHBOXRobert Ens,

National Mine Service

CAMOFLAUGE MINERS LUNCHBOXBrett Woolward,

McGill Mining Engineering Student

STAINLESS STEEL MINERS LUNCHBOXScott McElroy, Voith Turbo

PINK MINERS LUNCHBOXVanessa Neuman, Rescan

www.minerslunchbox.ca

cim news

Brad Pederson likes to bekept on his toes. AndrewReimer has been intriguedwith minerals since the age ofnine. Pederson and Reimer,both mechanical engineeringstudents, are recipients of theCIM Maintenance and Engi-neering Society 2009 Centen-nial Scholarship. The $1,998award is open to any CIM

national member or the son, daughter or spouse of a CIM national member cur-rently enrolled in a post-secondary educational institution studying in the M/Edisciplines with the intent of pursuing a career in the mining industry.

Mining graduate enjoys challenges of the NorthPederson, a 23-year-old Metis studying at the University of Saskatchewan, grad-

uates with honours this June. The Martensville, Saskatchewan, native says he firstbecame interested in mining while working summers in construction near the ura-nium mines of northern Saskatchewan. “I knew that I wanted to work in the miningindustry when I saw the exciting challenges that they have to overcome,” he says. “Itcan be a fast-paced industry that keeps you on your toes. That is important to me.”

One of the challenges Pederson was able to see up close was the issue of acces-sibility, a critical factor associated with remote mining areas. “As the sites are so farnorth, even getting food for your employees can be a daunting task, as there is nogrocery store nearby,” he says. “Shipping and receiving does not occur instantly, andgetting parts for broken machinery can be costly as they may take days to arrive.”

Winning the scholarship was “fantastic” he says, and the money will be used toreduce some of the debt he has acquired during his school year. After graduation,Pederson hopes to continue working as a project co-ordinator with his summeremployer, Points Athabasca Contracting Ltd. Partnership, with plans to move intoa project manager’s position when he gains more experience and obtains his P.Eng.

Skier, rugby player and soon-to-be minerAndrew Reimer, 20, is studying at University of New Brunswick in Fredericton

and says his interest in mining was sparked by a video program. “When I was nine,my father developed a piece of education software called ‘New Brunswick’s Min-eral Wealth.’ I was given the privilege of beta testing it, and the fun characters andmini-games peaked my interest.”

Reimer says he is grateful for winning the scholarship and has used the moneyto help pay for university expenses. “It was such a relief,” he adds. “Being in uni-versity can be a little tough on the wallet. I decided not to take a part-time job dur-ing the year so I could better concentrate on my studies. This scholarship reallymade a difference to me being able to keep my mind on school instead of work.”

Reimer has spent his summers working for the New Brunswick Department ofNatural Resources and J.D. Irving. He’s an avid skier and part-time ski instructorat Crabbe Mountain, as well as a rugby player, representing the Fredericton Loyal-ists team and the UNB Ironmen.

“Although I haven’t yet worked in the mining industry, I am interested in min-ing because there are so many international opportunities,” Reimer says. CIM

CIM M/E Society awards CentennialScholarshipsBy Marlene Eisner

June/July 2010 | 67

Brad Pederson Andrew Reimer

cim news


Good communication skills,commitment, respect, inclusion,team building, common goalsand passion: these factors are justpart of the equation when itcomes to determining — andchoosing — the kind of leader-ship that moves companies for-ward in the best possible way.

Jim Sarvinis, Paul Blatter andBernard Tan are this year’s recip-ients of the CIM-Bedford Cana-dian Young Mining LeadersAward. Newly created this year,the award recognizes young leaders 39years of age or under for “exceptionalachievement and their potential forfuture leadership growth in varioussectors of mining, including corporateperformance, operations, finance, tech-nical services and innovation, market-ing and trading, and services andsupport functions.”

Sarvinis, Blatter and Tan were cho-sen from an outstanding slate of wor-thy nominees by senior corporateleaders and mentors. Each of them hasbeen identified as a role model who hasset exemplary standards, leading theirteams on the road to success. Inanswering each of the eight questionsin the nomination package, colleaguesand supervisors were clear in express-ing the degree to which each winnerembraced the mantle of leadership inpositive and successful ways.

Unleashing talent from withinJim Sarvinis, 37, is the director of

thermal energy at Hatch. He isdescribed as a person greatly admiredand respected by everyone in the com-pany. His strength lies in his vision, hisloyalty and his honesty, which is felt byeveryone with whom he works.

“Jim’s leadership abilities are provenby his team’s respect for his manage-ment style,” writes colleague PatriciaLai. “Among the junior/intermediateengineers with whom I work closely,

What does it take to be a good leader?Industry’s rising stars share their strategies for success

By Marlene Eisner

the consensus is that we all appreciatethe trust, respect and freedom that Jimallows us to have to shape and growour careers in our chosen direction,while at the same time providing valu-able advice and guidance.”

For Sarvinis, good leadership is allabout understanding people and allow-ing them to flourish. “The first thing isto have the right team, and then it is tobring out the best in each individual byletting them do what you ask and notstanding in their way,” he explains.

“There’s a tendency for people tomicromanage their team and it’s coun-terproductive. It clamps a lid on peo-ple’s potential. Empower your team todo well by giving them opportunitiesto excel.”

The next step is to develop a goodcommunication and feedback system inorder to validate the work people aredoing. This, says Sarvinis, ensureseveryone is aware that they are a vitalpiece in the puzzle that forms the biggerpicture. “I find people really appreciateit, especially the younger generation ofengineers coming in,” he explains.“They want to feel like they are con-tributing to something bigger thanthemselves, to understand how the partthey play is important to the outcome.”

Team spiritAt 35 years of age, Paul Blatter has

had impressive results at Agnico-Eagle.

He began his career at the company in1999. Working first as a productionmetallurgist and then as a project met-allurgist, he eventually felt he wasready for a new challenge. He wantedto work on a project from beginning toend and was assigned to the Lapa proj-ect as assistant superintendent on theconcentrator.

“The Lapa project became a modelof success — and a model to follow —throughout the company,” writes DanyRodrigue, who worked with Blatter onthe project and nominated him for theaward. “Paul didn’t hesitate for a sec-ond to share that success with his col-leagues.”

The success of any project oftenrests on the collaborative effort of ateam. Blatter’s colleagues say he has away of engaging his employees thatbrings them together to form a cohe-sive unit. “He is very committed to histeam,” writes Rodrigue. “He utilizeseach person in the team according tohis strength and then manages to getthe best out of each individual.”

It’s all about transmitting a sense ofpassion, determination and job satis-faction to the team, says Blatter. Hedoes this by letting team membersknow how important their participa-tion is to the success of the project andthe satisfaction that comes from work-ing together towards a common goal.“By uniting as a team and pulling

Jim Sarvinis Paul Blatter Bernard Tan

cim news

together for a common goal, people arevalidated and really enjoy the workthey are doing,” he explains. “Every-one gets to their goal and is hungry formore.”

“The team was successful, the planwas executed and we had a great timedoing it,” says Blatter.

Embracing change Showing exceptional leadership

qualities during times of change is oneof the many reasons Robert Dickinsonnominated Bernard Tan for the youngleadership award. In the last nine years,Hunter Dickinson has expanded from40 to 140 employees as projectsadvanced from exploration towardsproduction. As new acquisitionschanged their management style and

the day-to-day role of the company,Tan continued “to show leadershipduring this time of changing relation-ships,” writes Dickinson.

Tan, 34, credits his leadership skillsto his role models at Hunter Dickinson.One important lesson he says he haslearned is to show by example, andthat means everyone, regardless oftheir title or position, should pitch intowards a common goal.

“Everything I know about leader-ship I learned here,” says Tan. “Theindividuals I work with show a lot ofleadership by example and to me that’simportant. As someone who wants tolearn, it’s something to see the individ-uals here, regardless of the level they areat, roll up their sleeves and put in thehard work. There is no such thing as

something that is too small to reach thegoal. To me that is how a leader shouldperform. You are part of the team.”

Tan says that he gains inspirationfrom the diversity of people withwhom he works and enjoys their var-ied backgrounds and the differencesthey bring to the worktable. “There is atremendous amount of diversity inmining — different professionalgroups, engineers, administrators —each of them brings unique viewpointsthat steer the ship in the right direc-tion,” he explains.

“Everyone that I know that has beensuccessful takes the time to listen topeople and when you do that, youlearn more about who you work with,”Tan adds. “Listening is absolutely cru-cial to team success.” CIM

June/July 2010 | 69

John B. Chalmers joined CIM in 1938 and became a Life Memberin 1974.

Benjamin Evans Dean joined CIM in 1960 and became a LifeMember in 1992. He passed away on March 18, 2010.

James Thomas Fyles became a member of CIM in 1957. A LifeMember since 1991, he died in late January 2010.

Charles Andrew LuVerne Hogg joined CIM in 1950 and became aLife Member in 1981. In 1934, he was a founding member of the OreGangue Geological Students’ Society at the University ofSaskatchewan; the geology department still awards the Hogg BookPrize to support worthy geology students. He was a pioneer in thedevelopment of the natural resources of Saskatchewan, serving firstas Deputy Minister of Natural Resources (1946) and then was thefirst Deputy Minister of Mineral Resources (1953). In 1956, heformed his own company as an independent geologist, and founded

three public companies. He continued to practice geology long intohis 80s as a consultant and prospector in both oil and gas and hardminerals. His long service to the University of Saskatchewan wasrecognized as a University Regent, and as Chair and member of theSaskatchewan Research Council. He was also awarded an honorarydegree in engineering from the university. He died on March 25,2010.

H.R. (Nick) Oldale joined CIM in 1960, joined the Mining Society ofNova Scotia in 1974 and became a Life Member of CIM in 1998. Hewas a past president and Life Member of The Mining Society of NovaScotia, and received several citations for his contributions to theorganization. He was a District 1 Councilor of CIM and chairman ofits 1995 annual general meeting held in Halifax. He was also amember of the Association of Professional Engineers of Nova Scotia.He was named a Paul Harris Fellow and in 1991, a Fellow of CIM. Hepassed away on March 3, 2010.

Obituaries

Amaya, Jorge, ChileAnderson, Melissa, ManitobaAppelgren, Jorgen, SwedenAsalgado, Juan, ChileAtkinson, Brad, USABajaj, Apoorva, IndiaBarnes, Arthur, OntarioBédard, Denis, QuébecBempah, Owusu Albert, GhanaBesharatizadeh, Reza, IranBlain, Jennifer, QuébecBlainer-Fleming, Janis, USABokaria, Udit, IndiaBoksteyn, Robert, AlbertaBovellan, Jari, FinlandBowness, Lawrence, AlbertaBreton St-Jean, David, OntarioBurger, Danie, GermanyCarin, Christianne, AlbertaCasebeer, Cody, AlbertaChabot, Rejean, SaskatchewanChen, Guangxi, GermanyChinedu Ugwuegbu, Chima, NigeriaChoi, Yosoon, KoreaCoolidge, Jillian, OntarioCuba, Miguel, AlbertaCunningham, Peter, OntarioDa Costa, Mervyn, AlbertaDarlington, William, AustraliaDeraisme, Jacques, FranceDesbiens-Lévesque, Jean-Francois, QuébecDeWolfe, Jerry, AlbertaDuncan, Lisa, AustraliaEakin, Ben, British ColumbiaEarnest, Pat, USA

Espinoza, Daniel, ChileFerlatte, Gilles, QuébecFlank, Steven, OntarioForrest, Daniel, QuébecFournier, Jean-Denis, QuébecGonzalez, Eric, USAGordon, Robert Scott, OntarioGoycoolea, Marcos, ChileGrunerud, Rory, British ColumbiaHamidizadeh, Ramin, British ColumbiaHarrison, David, QuébecHuang, Zhangyou, USAHum, Ryan, OntarioHummelman, Nicholas, British ColumbiaIssel, Andrew, USAJohnson, Ken, USAJones, Stephen, OntarioJouen, Didier, QuébecJulich-Trojan, Cassandra, OntarioKapageridis, Ioannis, GreeceKashani, Ali, British ColumbiaKazemi, Parviz, IranKeitirang, Modiredi, OntarioKesting, Martin, GermanyKim, Peter, OntarioKoffie, John, United KingdomKoppe, Jair, BrazilKoppe, Vanessa, BrazilKorobko, Valentin, USALajoie-Filion, Catherine, QuébecLearey, Parker, British ColumbiaLeclerc, Jessica, QuébecLegassie, Sean, New BrunswickLi, Hui, USA

Li, Zhongrong, British ColumbiaLin, Mike, British ColumbiaLiu, David, British ColumbiaLoken, Michael, OntarioLouve, Jordan, QuébecMacInnes, Jane, Nova ScotiaMacNeil, James, QuébecMarquez, Gustavo, QuébecMcGraw, John-Wesley, OntarioMorales, Camilo, ChileMorales, Nelson, ChileMoreno, Eduardo, ChileMorin, Chris, QuébecMorin, Mark, QuébecMortazavi, Saviz, OntarioNapier, William, OntarioNguyen, Son, VietnamNguyen Chi, Quang, VietnamNguyen Hai, Phuong, VietnamNguyen Manh, Diep, VietnamOla, Oyedele, ManitobaOlavi Auranen, Ilpo, FinlandPablo Mardones, Juan, QuébecPablo Vielma, Juan, USAParvanian, A. Masoud, IranPederson, Brad, SaskatchewanPeirano, Fernando, ChilePitis, Constantin D., British ColumbiaQueyranne, Maurice, British ColumbiaRamsay, Kurtis, OntarioReimer, Andrew, New BrunswickRiopel, Martin, OntarioRodriguez, Leonel, QuébecRofuail, Reem, British Columbia

Rosko, Michael, USARudinsky, Stephen, QuébecSahin, Yasemin, TurkeySchubert, Joachim, AlbertaSe, Stephen, British ColumbiaShutuc, David, OntarioSiemieniuk, Steven, OntarioSingh, Navin, IndiaSingh, Preetpal, OntarioSingh Sohota, Labhjeet David, AustraliaSmith, Amanda, USASolar, Andres, ChileStanford, Fred, OntarioSundberg, Michael, AlbertaTafazoli, Saeed, IranTaheri, Mehdi, OntarioTanweer Razi, Syed, British ColumbiaThompson, Matthew, AustraliaThorkleson, Derek, British ColumbiaTonkin, Cindy, AustraliaTrelawny, Peter, OntarioVargas, Marcelo, ChileVerly, Georges, British ColumbiaVerret, Sean, AlbertaVos, Robert, OntarioVu Van, Dong, VietnamWatson, Tim, British ColumbiaWebber, Tiago, BrazilWeeks, Jordan, QuébecWhitehouse, Ian, AustraliaWinkel, Reik, GermanyYoung, Jennifer, British ColumbiaZhang, Jiwen, ChinaZhang, Meimei, Australia

CIM welcomes new members

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Held in conjunction with:

HYATT REGENCY HOTEL | VANCOUVER, BC | OCTOBER 3–6, 2010

www.metsoc.org/com2010

Organized by:

Co-organized by:

of

METALS 2010TRADE SHOWOpen on Monday andTuesday, October 4 and 5,The Metals 2010 TradeShow will be located in thefoyer of the technical ses-sions, in the hub of theaction. Contact MetSoc toreserve one of the fewspaces still available.

On behalf of the Metallurgical Society of CIM, Iam pleased to invite you to the 49th annualConference of Metallurgists, to be held in Van-couver, British Columbia, on October 3–6, 2010.A broad technical program, spanning the world ofmetallurgy and materials, forms the foundation ofthis event. The meeting, held in conjunction withPb-Zn 2010 and co-organized by TMS, will bringtogether the world’s leading experts on theextraction and processing of lead and zinc.

The program includes the Fifth International Sym-posium on Advances in Refractories, the latest inthis major international series. In total, the confer-ence will host 11 symposia including: Innovation;Light Metals; Environmental Degradation and Control; Rheology in Fine ParticleSystems; Materials for Clean Energy Systems; Sustainability for Profit; FractureControl; Aerospace Materials; and Nanomaterials. These sessions will bringtogether attendees from all sectors of our community to discuss the latestdevelopments, research and trends in the industry, academia and society.

A diverse selection of short courses and industrial tours complement the tech-nical program. As well, the conference will feature a number of networkingevents to ensure that you have the chance to renew acquaintances and makenew contacts. I extend a particular invitation to students to participate in thePoster Session and to attend the special events.

Our host city offers an unrivalled variety of opportunities to explore theurban/suburban settings and surrounding countryside. I look forward to seeingyou there in October. Enjoy the conference and all that it has to offer.

Greg RichardsConference ChairTeck Metals Ltd.

Short Courses The conference will be preceded by a number ofshort courses on Saturday and Sunday, October 2–3.

Lead-Zinc Short CoursesLead-Zinc ProcessingThis course will focus on the fundamental aspects of theextractive metallurgy of lead and zinc, and will complementthe presentations given in the symposium itself.

Iron and Steel Mill ResiduesThe processing of residues from the iron and steelmakingindustry for the recovery of zinc or zinc and pig iron will bethe focal point of this course.

Treatment of Plant EffluentsTopics to be covered in this course include: chemistry,technological aspects, recent advances and actual casestudies in effluent treatment for discharge and/or reuse • management of sludges produced during effluenttreatment • zero liquid discharge for effluent treatment • specific effluent treatment issues for the lead and zincindustries.

Technologies for the Production of Sulphuric AcidThis course will focus on: acid plant fundamentals • gascleaning for metallurgical acid plants • acid plant contactsection • acid plant strong acid section • safety and riskmanagement for sulphuric acid plants • acid plant materialsof construction and corrosion issues, maturing acid plantsand capacity creep • acid plant controls andinstrumentation • startup of a new plant.

Technical Program Lead-Zinc 2010 — 5th decennialsymposium with plenary speakerNobuo Yamazaki, president ofDowa Metals and Mining Co.

Light Metals — Aluminum,Magnesium, Titanium

5th International Symposium on Advances in Refractories(ISAR 2010) in honour of Michel Rigaud

Aerospace Materials and Manufacturing: Advances inMaterials, Processes and Repair Technologies 2010

Materials for Clean Energy

Management of Innovation

Materials Degradation and Fracture Control (CFRC)

Sustainability for Profit

Nanomaterials

8th UBC-McGill-UA International Symposium on theFundamentals of Mineral Processing: Rheology andProcessing of Fine Particle Systems

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Student Program It is never too early to start building a network and at COM,the opportunities are numerous.

Enter a poster and present it to peers and industryprofessionals for a chance to win the $500 Poster Prize.

Join us on the lanes for an evening of free bowling. Createlife-long friendships with fellow student delegates whileenjoying drinks and food, graciously provided by Vale Inco.

Work the room at the Student-Industry Mixer, sponsored byBarrick Gold. The Poster Prize winner will also be revealed.

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Keep up to date on programdevelopments. Visitwww.metsoc.org/com2010 forthe complete technical program

Materials Science Short CourseFracture Control in EngineeringThis course will centre on: stress corrosion cracking • basics offracture mechanics • and more! See our website for a list ofspeakers.

Mineral Processing Short Course and TourRheology and Processing of Fine Particle Systems The course will cover the following topics and includes a tourof the mineral processing laboratories at the Norman B. KeevilInstitute of Mining Engineering at the University of BritishColumbia:• Basic concepts of rheology and viscosity• Techniques and equipment used to study rheology and

viscosity• Surface chemistry and rheology of mixed mineral systems • Rheology of suspensions of anisotropic minerals • Rheology of thickened tailings and paste • Rheological aspects of processing lateritic ores • Effect of slurry rheology on fine grinding and flotation • Transport of non-Newtonian slurries • Processing of non-Newtonian slurries • Micro-rheology of mineral slurries • Rheology of coal-water slurries

Environment Short CourseSustainability for ProfitThis course will present and discuss opportunities to developprojects that can reduce greenhouse gas emissions and thosethat are eligible under the current schemes and/or a post-Copenhagen new scheme. The international backgroundunder which greenhouse gas emission-reduction projects canbe implemented will be given, as well as the steps toidentifying opportunities. Market aspects will also bediscussed.

Management Short CourseManaging InnovationTopics to be covered include: • managing innovation• intellectual property portfolio• inventive skills improvementPresenter: Zion Bar-El, Ideation International Inc.

The HistoricalMetallurgy Committeeof MetSoc will host abox lunch featuringguest speaker Phillip J.Mackey, recent retireeof Xstrata ProcessSupport, on “Lessons ofhistory — Thebeginnings of moderncopper and nickelsmelting technologiesand the quest for energy

efficiency and sulphur capture.” No reservations ortickets required; however, seating is limited.

Special Lead-Zincluncheon with invitedguest speaker DonLindsay, president andCEO of Teck ResourcesLimited. Tickets availablefor purchase on theregistration website.

Special Event — The Materials section of theMetallurgical Society ishonouring Michel Rigaud,professor emeritus, for hisachievements in advancingthe science of Refractories.Join us for this specialdinner to celebrate hisachievements.

Special Events

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Organizing Committee

Conference ChairGreg RichardsTeck Metals Ltd.

Technical Program Co-chairZhenghe XuUniversity of Alberta

Technical Program Co-chairQingxia (Chad) LiuUniversity of Alberta

Short Courses ChairPeter LindBarrick Gold Corporation

Industrial Tours Doug McKayTeck Metals Ltd.

Trade Show ChairMonica NasmythSNC-Lavalin

Student Activities & Poster ChairEd AsselinUniversity of British Columbia

Publicity ChairRachel MooreTeck Metals Ltd.

Sponsorship Chair Michael Kingc/o MetSoc of CIM

Publications & Technical Program CoordinatorRonona SaundersMetSoc of CIM

Arrangements, Treasurer & General InquiriesBrigitte FarahAdministration & Meeting Planning, MetSoc of CIMTel.: 514.939.2710, ext. 1329Fax: [email protected]

Important DatesAUGUST 3 Early-bird registration deadline

SEPTEMBER 3 Deadline for accommodation reservations at the conference rate (Hyatt Hotel)

SEPTEMBER 3 Deadline for pre-registration and cancellation

Industrial Tours Industrial tours are limited in capacity, so register early.

CAPTIN (Canadian Autoparts Toyota, Inc.)Wednesday, October 6Visit the CAPTIN facility, touted as one of the most efficient manufacturing operations inBritish Columbia. The company’s facilities have been a source of innovation and industrystandards for many years.

Teck Metals Ltd., Trail OperationsThursday and Friday, October 7–8At Trail, located in British Columbia’s beautiful Kootenay region, participants will see andlearn about one of the world’s largest integrated zinc/lead smelting and refining complexes.

Innovation (Toxco, Trail Operations and Firebird Technologies)Thursday, October 7See how Toxco Inc. has developed recycling solutions for most batteries and portableelectronics, recycling usable materials from not only lithium, but also from nickel cad-mium, nickel metal-hydride, lead, mercury and most other batteries.Learn why Firebird Technologies Inc. is now a leading manufacturer of antimonide-basedcompound semiconductor wafers, specifically Indium Antimonide (InSb).

Hydrometallurgy (CESL Pilot/Demo Plant and Barrick Technology Centre)Thursday, October 7CESL focuses on sustainable external and internal growth opportunities, technologytransfer and improvement projects. CESL’s proprietary processes are developed andadvanced at the combined pilot and demonstration plant facility in Richmond, BritishColumbia. The Barrick Technology Centre is a metallurgical technical facility that provides metallurgi-cal support services to Barrick’s Technical Services Group and its Research and Develop-ment Group, and the company’s mine sites around the globe.

InterstyleThursday, October 7Interstyle Ceramic & Glass infuses design and engineering excellence in the production ofinnovative glass and ceramic tiles.

25% DISCOUNT! Buy the complete set of COM 2009proceedings (6 books & 2 CDs) for only $550 on site and benefit from a 25% discount off the regular price.


Sponsors Several sponsorship opportunities arestill available. Contact Michael King at [email protected] for details.

PREMIER SPONSORS:

SPECIAL EVENTS AND CONTRIBUTORS:

SUPPORTING SOCIETIES:

June/July 2010 | 75

SAVE $100!

Social Program Welcome ReceptionAll delegates are invited to attend the Welcome Reception, sponsored by our Premiersponsors. Enjoy complimentary drinks and hors d’oeuvres while you renew oldacquaintances and meet new friends.

MetSoc Annual General MeetingThe society will hold its Annual General Meeting, featuring the inauguration of the newMetallurgical Society president.

MetSoc Awards BanquetThe society honours its members with award presentations at the MetSoc AwardsBanquet. Tickets for members, authors, session chairs, non-members, sister societies andprincipal exhibitors are complimentary, but must be reserved as seating is limited. Life andretired members, students and guests may purchase tickets at registration.

Register before August 3rd and save!

Early-bird rates (before August 3):

CIM national members • sister societies $800

CIM life members Free

CIM retired members $200

Authors • presenters • session chairs $800

Students • student presenters $200

Non-members $950

www.metsoc.org/com2010

calendarCIM EVENTS

Sudbury BranchRudolph Kneer Memorial Golf TournamentAugust 7Sudbury, ONContact: Gary PoxleitnerEmail: [email protected]

Uranium 2010August 15-18Saskatoon, SKwww.metsoc.org/U2010

Los Andes BranchAugust 17Santiago, ChileContact: John SeltersEmail: [email protected]

Section QuébecTournoi Géogolf27 août Québec, QCResponsable : Pierre VerpaelstCourriel : [email protected]

Toronto Branch Frank Grieco Golf DaySeptember 1Toronto, ONContact: Rick Hutson Email: [email protected]

Edmonton Branch Technical MeetingSeptember 13Edmonton, ABContact: Fenna PoelzerEmail: [email protected]

South Central BC BranchAnnual General Meeting Meeting and ConventionSeptember 15-17Kamloops, BCContact: Maria CatalfamoEmail: [email protected]

New Brunswick Branch35th Annual ConventionSeptember 23-25Bathurst, NBContact: Barbara RoseEmail: [email protected]

AROUND THE WORLD

XXV Mineral Processing Congress — IMPC 2010September 6-10Brisbane Convention and Exhibition Centre, Brisbane, Australiawww.impc2010.org

Safety 2010 World ConferenceSeptember 21-24Queen Elizabeth II Conference Centre, London, UKwww.safety2010.org.uk/

XV Peruvian Geological CongressSeptember 27–October 1Centro de Convenciones Cusco, Cusco, Perùwww.congresosgp.com

Mine Waste 2010 September 29–October 1Sheraton Perth Hotel, Perth, Australiawww.minewaste2010.com

SEG 2010 ConferenceOctober 2-5Keystone, Colorado, USAwww.seg2010.org

8th Annual Canadian Business for Social Responsibility Summit October 1Toronto, Canadawww.cbsr.ca

CRO Summit – Sustainability 2.0November 3-4Union League Club of Chicago, Chicago, Illinois, USAwww.crosummit.com

Zinc Processing ’10November 13-14Vineyard Hotel, Cape Town, South Africawww.min-eng.com/zincprocessing10

Enermin 2010November 14-16Sheraton Santiago Hotel and Convention Centre, Santiago, Chilewww.enermin2010.com

Mine Closure 2010November 23-26Sheraton Miramar Hotel and Convention Centre, Viña del Mar, Chilewww.mineclosure2010.com


June/July 2010 | 77

Nevada-type gold deposits (Part 1)By R.J. “Bob” Cathro, Chemainus, British Columbia

history

It is unlikely that there is another small part of the earth’s crust that enjoys thedistinction held by Utah’s Oquirrh Mountains, which hosts two mineral depositsthat were the first of their types to be mined in North America (and possibly any-where). One was the Bingham Canyon porphyry copper mine, where miningbegan in 1903; the other was the Mercur gold mine, located on the southwestflank of the mountain range about 22 kilometres south of Bingham, where goldproduction started in 1893. The two camps also share a common ancestry throughJoseph R. De Lamar, a prominent mine owner at Mercur, who optioned part of theBingham Canyon deposit and sent three of his top engineers to examine it in 1898,including Daniel C. Jackling who turned it into a world-class copper mine(Cathro, 2009a).

Although mining of another member of the porphyry family (this one of thetin-rich variety) had commenced along the German/Czech Republic border about1440 and continued until 1991, it was not well known in North America and thesimilarities were not recognized (Cathro, 2009b). It was probably more than 25years after mining began at Bingham Canyon before its geometry and genesisbegan to be understood. Similarly, the realization that Mercur was a Nevada-typedeposit did not become obvious until about 1968, when Newmont ExplorationLtd. began to explore there. That was significant because Newmont had made thefirst modern discovery of this type of mineralization at Carlin, Nevada, in 1961and was the acknowledged expert. That was the same year that Hewitt (1968)published a paper pointing out the strong resemblance between mineralization atMercur and Getchell, Nevada.

The Mercur camp was given its name in 1879 when a German prospectorstaked the Mercur claim on a cinnabar showing discovered during the silver boom.The first gold occurrence was only discovered in 1883 by means of fire assaysbecause the gold was too fine-grained to be seen visually or recovered in a goldpan. An attempt in 1890 to recover gold using mercury amalgamation from 1350tonnes of ore averaging about 27.4 grams per tonne (0.8 ounces per ton) tonachieved a recovery rate of only 15 per cent because the pulp formed a thick slimymud that was impervious. It is hard to imagine how frustrating it must have beenfor the prospector who was given the exciting news by the assayer that his sampleof apparently barren rock had given a good gold assay. After he crushed andpanned more samples and still could not find any gold, the assayer kept insistingthat he had discovered something valuable. Even after he had started mining andset up an amalgamation plant, there was still very little to show for it. Accordingto Coope (1991), Mercur prospectors brought a legal action in Salt Lake Cityagainst an assayer for that very reason.

According to Palmer (1909), the first cyanide mill in the Western Hemispherewas built at the Mercur Mine and, for a time, it was the largest straight cyanideplant in the world. The recovery rate increased substantially after the cyanide millwas converted to the new MacArthur-Forrest cyanide process, becoming the firstin the United States to use it commercially. During 1897-98, De Lamar built the900 tonne-per-day Golden Gate mill, with Jackling serving as his construction andmetallurgical engineer. Reputed to be the largest cyanide mill in North America atthe time, it employed gravity feed and a flow sheet that involved roasting (whenneeded), fine grinding and cyanide. Three of the roasters were referred to as“Jackling type.” An AC electrical current was delivered over a 70-kilometre trans-mission line. This mill recovered about half of the estimated 2.9 million grams(921,000 ounces) that the camp produced between 1890 and 1912, at a recovery

“The first recorded prospecting in the Mercur

area took place in 1869 with the establish-

ment of a small camp named Lewiston at the

head of (what became) Mercur Canyon in later

years. The prospectors… (found) small pods

of rich silver mineralization, without significant

base metals… In the 1870s, Lewiston grew to

a town of about 1,500 people… By 1881, the

silver ores were exhausted and Lewiston had

dwindled to a town (with only) one resident.”

~ Mako, 1999

Location of the Mercur Mine, Utah (from Mako, 1999)

rate of 76.7 per cent. If that rate is applied to the entire campproduction, it suggests that the gold content of the ore minedduring that period was about 37.3 million grams (1.2 millionounces). At its peak in 1890, the camp had a population ofabout 5,500, most of Italian and Chinese descent.

Production resumed when the official gold price wasraised from $20.67 to $35.00 per troy ounce in February1934, and ended when the government suspended gold mining during World War II. Another 5.9 million grams(190,000 ounces) were produced during this period.

The next phase of exploration was conducted from 1973to 1975 by Getty Oil Company under an option from GoldStandard, Inc., which had consolidated the complicatedclaim ownership in the camp. In 1981, Getty began construc-tion of an open pit mine and a 2,700 tonne-per-day carbon-in-pulp mill complex with a targeted production rate ofabout 2.5 million grams (80,000 ounces) per year. AfterTexaco, Inc. acquired Getty in 1985, it sold Getty’s mininginterests to Barrick Resources (USA) Inc. Barrick, which alsohad production experience on this type of deposit in Nevada,expanded the mill by 20 per cent, introduced dump leachingof lower grade oxide ore, and stockpiled higher grade, butrefractory ore. In 1988, an 825 tonne-per-day autoclave wasinstalled for pressure oxidation of the refractory ore, whichwas later enlarged about 15 per cent, along with the mill.Mining ended in 1997 and the recovery plants closed in1998. Total gold production from 1983 to1998 was about46.5 million grams (1.49 million ounces).

In its 127-year history, more than 37.7 million tonnes ofore containing about 108.9 million grams (3.5 millionounces) of gold were mined in the Mercur gold camp, anaverage grade of approximately 2.9 grams per tonne (0.084ounces per ton). About 81 million grams (2.6 million

ounces) of gold (at a recovery rate of 74 per cent) and 36 mil-lion grams (1.16 million ounces) of silver were recovered,plus 3,470 flasks of mercury. Stripping ratios ranged from 2.0at the Marion Hill pit to 6.1 at Sacramento, and averaged 3.6.According to Hewitt (1968), the fineness of the gold (not tobe confused with grain size) was 833. (Fineness is a measureof the gold content of the native gold, defined as the ratio ofgold to gold+silver; pure gold = 1,000.)

GeologyThe Carlin Mine in Nevada, discovered in 1961, was the

first place where this deposit model was recognized in themodern era. Many geologists use the name Carlin-type torefer to all sediment-hosted disseminated gold deposits,which is confusing because it is so site specific. Since then,more than 50 similar deposits have been found in Nevadaand many of them have subtle but significant differences inhost rocks, mineralization and structural control. The differ-ences are quite evident at Mercur, which is why I prefer to usethe more general name “Nevada-type” for this family of golddeposits.

They have also been called “no-see-um” deposits, refer-ring to the fact that the gold flakes can only rarely be seenwith the unaided eye. In fact, they are usually so fine thatwhen they are released from the rock, by erosion or crushing,they float in water, cannot be collected in a gold pan, and donot accumulate in gold placers. For that reason, this family ofgold deposits were not discovered by old-fashioned prospect-ing with a gold pan. In spite of the fine-grained, invisibleappearance, ore grades in these deposits can exceed 34 gramsper tonne (one ounce per tonne), which almost defies logic.

The intensive geological study received by the Mercur dis-trict has been well summarized by Mako (1999). Mining

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economic geology


Generalized stratigraphy of the Mercur gold mine (from Mako, 1999) Geology of the Mercur Mine area (from Mako, 1999)

showed that micron-sized gold is associated with arsenicalpyrite, marcasite, barite, and arsenic and thallium minerals,which are disseminated throughout the altered host rock andyounger veinlets. Three types of pyrite have been identified— euhedral, zoned and filigree; the latter variety contains thehighest As, Tl and Au values. The favourable units generallyhave a background in the tens to hundreds of ppm Tl. Hewitt(1968) reported that the thallium grade of the depositsranges from 0.023 to 0.059 per cent. At least eight rare thal-lium minerals have been recognized. The geochemicallyanomalous suite of associated elements includes Au, Ag, As,Hg, Sb and Tl. Alteration of the host rocks in various parts ofthe camp includes decalcification, silicification, argillization,carbon-flooding and oxidation.

The Mercur deposits are hosted by the 1,000-metre-thick Upper Mississippian Great Blue Formation, whichconsists predominantly of carbonate lithologies that weredeposited on a shallow, miogeoclinal shelf with intermit-tent periods of shoaling. The sedimentary sequence hasbeen folded into the broad, northwesterly trending, doublyplunging Ophir anticline.

The key host for gold mineralization is called the MercurMember, which is about 70 metres thick. It is distinguishedby its high content of invertebrate fossils, primary permeabil-ity and porosity, and an elevated iron content (0.2 to 3.0 percent, averaging 1.1 per cent). The Mercur member was fur-ther subdivided into four units, three of which are mineral-ized. The other is called Barren Limestone.

The lowest of the three mineralized units is the MagazineSandstone Beds, usually 12 metres of calcareous sandstone,siltstone, and limestone. Much of the mineralization is pres-ent at the base in lenses of jasperoid called Silver Chert. Theeight metre-thick middle member, Mercur Beds, is composedof fossiliferous grey limestone, silty limestone and calcareoussiltstone. The fossil content is important for preservingporosity and permeability, which makes this the best host forhigh-grade gold mineralization in the camp. The Upper Bedsunit is 24 to 36 metres thick and is similar in lithology to theMercur Beds but without the fossil component, which makesit a poorer host rock.

Three Tertiary-age igneous rock units were intruded intothe sedimentary strata within the Mercur district — thePorphyry Hill Quartz Monzonite, the Eagle Hill Rhyolite andthe Golden Gate Breccia Rhyolite. The first two igneous unitsoccur as dykes and sills, whereas the third has only been seenas clasts of rhyolite porphyry and igneous matrix in theGolden Gate breccia pipe. It is exposed in the Golden Gateand Marion Hill pits.

Three breccia bodies that occur near the gold depositshave been described as pipes, based on their geometry, tex-tures and composition, and are probably Oligocene in age.

The largest, Golden Gate, was found last because itoccurred in a recessive area that was covered by old mill tail-ings and the old town of Mercur. The “Ingersoll cut” withinthe pit contained almost 2.5 million grams (80,000 ounces)

of gold at an average grade of 1.6 grams per tonne (0.046ounces per ton) within the breccia body. The breccia exhibitsevidence of internal reworking and mixing and the marginsdisplay a distinctive brown colour. The clasts are angular tosubrounded, range in size from very fine grains to large boul-ders, and are composed of a wide variety of all the units inthe sedimentary sequence. The Sacramento breccia occurredin the pit of the same name. It contains highly altered angularclasts in a red, fine-grained silicified matrix. Other thanerratic weak mineralization in the lower part, this breccia wasunmineralized. The Kirk breccia, which was present in theMercur Hill pit, was similar to the Sacramento breccia butwithout the hematite staining. Alteration was less intenseand only erratic weak mineralization was noted.

Almost all the ore came from four open pits, which com-pletely reworked the former underground mines. They werenamed (from south to north) Sacramento, Mercur Hill,Golden Gate and Marion Hill. A fifth pit, Rover, was insignif-icant. The first two pits partially overlap while the last twoadjoin each other.

There has been speculation about how much of thefavourable Magazine Sandstone and Mercur beds might havebeen eroded away. The topography of Mercur Canyon sug-gests that it could be as much as 136 million tonnes. If halfof this was ore, another 193 million grams (6.2 millionounces) of gold may have been removed by erosion, in whichcase the original deposit could have contained nearly 300million grams (10 million ounces). Moreover, it might neverhave been found because of cover rocks.

AcknowledgmentsAs I was completing the previous series on porphyry

deposits, it was Ken Krahulec of the Utah Geological Surveywho made me aware that Mercur, which is located so close toBingham Canyon, appears to be the first Nevada-type, sedi-ment-hosted gold deposit to be mined anywhere. It seemedonly common sense to discuss this deposit-type next while Iwas in the“neighbourhood.”Thank you, Ken. I would alsolike to thank Rob Carne for help in finding references and forreviewing an earlier draft. CIM

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June/July 2010 | 79

ReferencesCathro. R.J. (2009a). Porphyry deposits (Part 2). Montreal: CIM Magazine, Vol. 4, No. 7,November, p. 88-90.

Cathro, R.J. (2009b). Porphyry deposits (Part 1). Montreal: CIM Magazine, Vol. 4, No. 6,September/October, p. 102-104.

Coope, J. Alan (1991). Carlin Trend exploration history: discovery of the Carlin deposit.Reno: Nevada Bureau of Mines and Geology, Special Publication 13, p 5.

Hewitt, W.P. (1968). Western Utah, eastern and central Nevada. In J.S. Ridge (Ed.), Oredeposits of the United States, 1933-1967: the Graton-Sales volume. New York: TheAmerican Institute of Mining, Metallurgical, and Petroleum Engineers Inc, Vol. 1, p. 857-885.

Mako, D.A. (1999). A post-mining view of the Mercur gold district, Tooele County, Utah.Reno: Geological Society of Nevada Special Publication 30, 44 p.

Palmer, Leroy A. (1909). Cyanidation at Mercur, Utah. In H. Foster Bain (Ed.), Recentcyanide practice (second edition), (1910). San Francisco: The Mining & Scientific Press,p. 256-262.

Academic, industrial and government researchWhen Université Laval was created in 1852, it com-

prised the four faculties of theology, medicine, law andarts. The humanities and sciences were taught under thearts faculty. At that time, engineering was not regarded as asubject suitable for a university whose primary missionwas to advance the faith.

The first teacher of chemistry, mineralogy and elementsof metallurgy in the Faculty of Arts was Thomas SterryHunt. A Yale University graduate, he was employed from1847 to 1852 as a chemist-mineralogist at the newlyfounded Geological Survey of Canada in Montreal. He washired by Laval University in 1856. In 1862, he taughtchemistry at Morrin College in Quebec City, which wasaffiliated with McGill University in Montreal. In 1868,Hunt returned to the United States to become a professorof geology at the Massachusetts Institute of Technology. Heserved two terms as the president of the AmericanChemical Society.

The Hunt-Douglas ProcessIn 1862, German chemist Max Schaffner found that

copper oxide was soluble in a ferrous chloride solution, anobservation that drew Hunt’s attention. Hunt contacted hisfriend James Douglas, a theologian-turned-medical-doctor,in Quebec City. He suggested that Douglas applySchaffner’s discovery to treat the low-grade copper oxideore at his family’s Harvey Hill Mine in Leeds Township,south of Quebec City.

Douglas tested the process at the mine and found it tobe promising. Becoming deeply interested in mining andmetallurgy, he abandoned theology and medicine. By 1869,Hunt and Douglas had developed a new hydrometallurgi-cal process to treat copper ores and filed a Canadian patentfor their process.

In 1870, Arthur Lewis, an English investor visited theHarvey Hill mine works and was impressed with what hesaw. At the same time, Juan Stewart Jackson applied for apatent in Chile on behalf of Douglas. Jackson was thepresident of the Chilean Compañia de Minas de laInvernada, a limited liability corporation founded inValparaiso in 1870. He arranged for Hunt and Douglas tovisit Chile to apply their process at the Invernada, about48 kilometres northwest of Santiago. Accordingly, Douglasarrived in Chile aboard the S.S. Panama on February 21,1871. Hunt could not travel with him because of hisengagements.

At the Invernada Mine, the leaching agent was prepared by treating a commercially available ferrous

sulphate solution (copperas) with an excess of sodiumchloride (salt) and crystallizing as much of the sodiumsulphate formed as possible according to:

FeSO4 + 2 NaCl → FeCl2 + Na2SO4

The leaching of copper oxide by ferrous chloride solu-tion could be represented by:

CuO + Fe2+ + H2O → Cu2+ + Fe(OH)2

The dissolving action was due to the acid generated bythe hydrolytic action of the ferrous ion:

Fe2+ + H2O → FeOH+ + H+

FeOH+ + H2O → Fe(OH)2 + H+

CuO + 2 H+ → Cu2+ + H2O

The ferrous hydroxide thus formed was known to be agelatinous precipitate difficult to filter. The leaching actionof ferrous chloride could have succeeded for copper oxideore containing silicate gangue, but not for carbonates likelimestone. Any carbonate present would compete withcupric oxide (CuO) and immediately react with the acidpresent, leading to the precipitation of ferrous hydroxide.Thus, the reagent was lost and the process did not func-tion. The Hunt-Douglas process was a failure because itwas not based on sound chemistry. However, it representedthe first attempt to use a hydrometallurgical process toleach ores in Canada.

Pyrometallurgical researchAround the time of the development of the Hunt-

Douglas hydrometallurgical process, a great deal of signifi-cant pyrometallurgical research was also being conducted.One of the more important contributors to the advance-ment of pyrometallurgy was Alfred Stansfield, McGillUniversity’s first professor of metallurgy. A graduate ofEngland’s Royal School of Mines, Stansfield assistedWilliam Roberts-Austen at the Royal Mint where heimproved the design of the recording pyrometer. He joinedthe staff of the Royal School of Mines in 1898 and came toCanada in 1901. Among his notable contributions to thefield were his publications, The Electric Furnace: its evolu-tion, theory and practice (1907), The Commercial Feasibilityof the Electric Smelting of Iron Ores in B.C. (1919), and TheElectric Furnace for Iron and Steel (1923).

Around that time, William L. Goodwin and WilliamNicol, who had both studied at Heidelberg in Germany,

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metallurgy

The beginnings of mineral processing research in Canada (Part 5)By Fathi Habashi, Department of Mining, Metallurgical, and Materials Engineering, Laval University


also carried out important metallurgical research atQueen`s University in Kingston.

Not just researchers, but mentors too, played a criticalrole in the advancement of metallurgy. One such mentorwas George Guess, a distinguished extractive metallurgistwho headed the Department of Metallurgy at theUniversity of Toronto. One of his students, Telfer E.Norman, had submitted a thesis that contained someimpressive thermochemical calculations that described anew concept in the smelting of copper and nickel concen-trates. Guess encouraged Norman to send a copy of thethesis to the editor of the Engineering and Mining Journal.Fearing that the editor would reject his student’s submis-sion only because he was an undergraduate student, Guesssent the paper out from his home address, without naminghimself as a co-author. The paper was published in 1936 inthe journal’s October-November issue under the title,“Autogenous Smelting of Copper Concentrates withOxygen-Enriched Air.” Norman’s work thus precededFinnish company Outokumpu’s 1947 development of flashsmelting technology by more than a decade.

At the National Research Council, Lloyd M. Pidgeon, a1929 graduate of McGill University, developed a processfor producing magnesium metal using the reactionbetween calcined dolomite and ferrosilicon. An interestedgroup of prominent Toronto mining men raised capital,enabling Pidgeon to establish a pilot plant. After a year anda half of encouraging results, commercial applications ofthe process seemed viable. This led to the formation ofDominion Magnesium, which Pidgeon joined in 1941 as adirector of research. Because of the demand for magnesiumduring World War II, six magnesium plants were builtthroughout North America. Pidgeon, who also developedmetallothermic technologies for the production of calciumand strontium, was appointed professor and head of theDepartment of Metallurgical Engineering at the Universityof Toronto, a post he held until his retirement in 1969.

In 1938, Gérard Letendre, another alumnus of the RoyalSchool of Mines, established the first Department ofMining and Metallurgy at Laval University’s School ofMines in Quebec City. Some years later, André Hone

founded and chaired the Department of Metallurgy atMontreal’s École Polytechnique.

Roger Potvin, who joined Laval University in 1940 toteach electrometallurgy and corrosion, had been involvedin research into the recovery of elemental sulphur frompyrite by chlorination. During World War II, he served asa consultant for the military research laboratory at ValCartier in Quebec. In 1945, Potvin was sent by theCanadian Department of Reconstruction to help the Alliedoccupation forces’ investigations into the state and devel-opment of metallurgical technology in Germany. He exam-ined the production of beryllium by the electrolysis ofberyllium chloride, and the production of zirconium andtitanium. His reports were published in the CIMTransactions in 1946. In addition, Potvin inspected lightalloy casting works in southern Germany — theMetallgesellschaft Research Laboratory, the VereinigteDeutsche Metallwerke company and the production of tho-rium and uranium. His findings were published as BritishIntelligence Objective Sub-Committee (BIOS) reports.

Between 1946 and 1950, Potvin and his colleague,Albert Cholette, a professor of chemical engineering atLaval, proposed an electric furnace process for the treat-ment of the iron ores of Quebec. The proposal did notreceive the blessings of Premier Maurice Duplessis, whobelieved it would be more profitable for Quebec to ship theore to the United States. Duplessis was supported byGerard Letendre, who chaired Laval University’sDepartment of Mining and Metallurgy at that time. Thisdifference fuelled an intra-faculty conflict that Cholettedescribed in his book Le fer du Nouveau-Québec et la Sagede la Siderurgie (2000).

Another noteworthy researcher was Clarence S. Samis.Born in Arcola, Saskatchewan, Samis was educated inWinnipeg and earned his doctorate from the University ofLondon in 1937. He worked in the industry for few yearsbefore joining the University of British Columbia in 1945,where he conducted extensive pyro- and hydro-metallurgi-cal research.

During this era, William-Henry Gauvin left his home inParis to pursue his doctoral studies at McGill University.

H I S TO R I C A L

metallurgy

June/July 2010 | 81

Thomas Sterry Hunt (1826-1892)

James Douglas (1837-1918)

William L. Goodwin (1856-1941)

William Nicol (1861-1924)

Alfred Stansfield (1872-1944)

Telfer E. Norman (1908-2001)

After earning his PhD in 1944, he worked for two years inthe industry before returning to his alma mater as an asso-ciate professor of chemical engineering. He retained hisindustry connections, acting as consultant to the Pulp andPaper Research Institute of Canada. Eventually in 1957, hebecame the head of its Chemical Engineering Division.

Gauvin invented the atomized suspension technique, inwhich a high-temperature spray system pyrolizes (vapor-izes) waste from pulp and paper processing. His work onthermal plasma jets, especially in metallurgical applica-tions, is considered ground-breaking. In 1961, he foundedthe Noranda Research Centre in Montreal and went on tobecome its director of research and development. Duringhis directorship, researchers at the Centre developed a newprocess for transforming copper concentrates directly tometallic copper in what became known as the NorandaReactor. Serving on many national committees, Gauvinalso helped shape Canadian national scientific policy.

Louis S. Renzoni, a contemporary of these pioneers,hailed from Copper Cliff, Ontario. A graduate of Queen’sUniversity in Kingston, Renzoni experimented with theanodic dissolution of nickel sulphide anodes at theInternational Nickel Company. In 1957, the company indus-trialized his work at its refinery in Thompson, Manitoba.

The Turkish-born Talat Mehmet Salman earned a doc-torate from McGill University in 1965. He went on to chairthe mining department at McGill just before his demise in1979. Salman’s principal research interest was the benefici-ation of gold ores, a field to which he made substantialcontributions.

Charles Cooper, who earned a PhD in chemistry fromthe University of British Columbia in 1949, joinedCanadian Copper Refiners in Montreal East in 1953 as chiefchemist. In 1962, he was appointed director of the NorandaResearch Centre. From 1970 to 1975, as a project managerwith the United Nations Development Program, he helpedfor the Chilean government to establish of a national min-ing and metallurgical research centre in Santiago. Returningto Canada in 1975, Cooper was appointed a professor ofmetallurgical engineering at Queen’s University.

Cooper is especially known for the volumes on tel-lurium and selenium that he edited in 1971 and 1974,respectively. During his tenure at Queen’s University, heconducted research into solvent extraction and the ionexchange of precious metals. A founding member and edi-tor of the Copper-Cobre Conferences, Cooper also editedthe journal Hydrometallurgy.

Charles Robb Masson, a doctoral alumnus of theUniversity of Aberdeen, came to Canada as post-doctoralfellow at National Research Council in Ottawa. In 1952, hemoved to the Council’s Atlantic Research Laboratory inHalifax, Nova Scotia. Well known for his theories on sili-cate polymerization in slags, Masson helped advance thestudy of slags by organizing the first conference on the sub-ject. Held in 1980 in Halifax, the conference was so suc-cessful that it continued to be held after his passing in1988.

Spyridon N. Flengas, who was born in Athens, Greece,graduated from the University of Athens with a B.Sc. inchemistry and with a D.Sc. from the University of London.He came to Canada as a post-doctoral fellow at the MinesBranch and then joined the faculty at the University ofToronto in1960, where he did extensive work on the elec-trochemistry of fused salts.

James M. Toguri, a 1959 doctoral graduate of theUniversity of Toronto, held various post-doctoral felow-ships in the UK, Norway and the United States beforereturning to teach at his alma mater in 1967. He is highlyregarded in the scientific community for his extensiveresearch in pyrometallurgy. Toguri was also the first editorof the journal, Canadian Metallurgical Quarterly, a positionhe held for over 20 years.

Another important contributor to Canadian metallurgywas Alan Kay, a graduate from the University of Glasgow,who joined McMaster University in 1969. At McMaster, hedid much to advance the field of the physical chemistry ofsteelmaking.

Thus, over the course of more than a century, the workof pioneering scientists has secured Canada’s reputation asa world leader in the field of extractive metallurgy. CIM

H I S TO R I C A L

metallurgy


Lloyd M. Pidgeon(1903–1999)

André Hone (1906-2001)

Louis S. Renzoni (1915-1979)

Charles Robb Masson (1922-1988)

Spyridon N. Flengas (1925-2004)

Alan R. Kay (1931-1998)

technical abstractsCANADIAN METALLURGICAL QUARTERLY

June/July 2010 | 83

Development of a Chemical Model forthe Solubility of Calcium Sulphate inZinc Processing SolutionsG. Azimi, V.G. Papangelakis, University of Toronto,Toronto, Ontario, and J.E. Dutrizac, CANMET-MMSL,Ottawa, Ontario

Dissolution of Low Iron Sphalerite inFerric Sulphate-Sulphuric Acid MediaJ.E. Dutrizac, CANMET-MMSL, Ottawa, Ontario

Monitoring the Influence of Gelatin andThiourea on Copper ElectrodepositionEmploying Electrochemical NoiseTechniqueFariba Safizadeh, Anne-Marie Lafront, Edward Ghali,Department of Mining, Metallurgy and MaterialEngineering, Laval University, Ste-Foy, Quebec, andGeorges Houlachi, LTE, Hydro-Quebec, Shawinigan,Quebec

Gold and Silver Cyanidation from aResidue Produced by Leaching Dead-Roasted Copper White MetalI. Wilkomirsky, Department of Metallurgical Engineering,University of Concepción, Chile, N. Rojas, Pedagogic andTechnological University, Boyacá, Colombia, and E. Balladares, Department of Metallurgical Engineering,University of Concepción, Chile

ABSTRACT A new model capable of predicting the solubility of calcium sulphatesolid phases in zinc sulphate processing solutions from 25 to 95°C was developed.The model uses the Mixed Solvent Electrolyte model of the OLI systems software tocalculate the activity coefficients of the electrolyte species. The model was testedusing recently developed experimental measurements. It was shown to accuratelypredict the solubility behaviour of calcium sulphate in multi-component zinc process-ing solutions containing ZnSO4, H2SO4, MgSO4, MnSO4, Fe2(SO4)3, Na2SO4 and(NH4)2SO4. The model can also explain the complex effect of coexisting metal sul-phates on the solubility of the CaSO4 phases.

ABSTRACT The dissolution of low iron sphalerite, nominally ZnS but also containing0.08% Fe and trace amounts of Cd and Mn, in ferric sulphate-sulphuric acid mediawas investigated using closely sized fractions of crushed sphalerite crystals and sin-tered disks made from the crushed crystals. Linear kinetics are observed and thepredominant reaction products are ZnSO4, FeSO4 and elemental sulphur. The leach-ing rate increases systematically with increasing temperature and the calculatedapparent activation energy is 56 kJ/mol for the sized sphalerite and 54 kJ/mol forthe sintered disks. The relatively high apparent activation energy suggests that therate is chemically controlled, a conclusion supported by the insensitivity of the rate tothe disk rotation speed.

ABSTRACT The copper electrodeposition from sulphuric acid electrolytes in the pres-ence of thiourea and gelatin as additives was investigated using Electrochemical Noise(EN) and Linear Sweep Voltammetry (LSV) in conjunction with the scanning electronmicroscopy technique. This study was oriented to examine the utility of using EN tech-nique to characterize the electrowinning process and the deposit structure morphologywas compared to LSV, an electrochemical method generally used industrially. Both ENand LSV techniques were successful in revealing the effect of different concentrationsof thiourea and gelatin on the copper electrodeposition process. In this study, LSVdetected an excess of thiourea leading to porous deposit; while the EN analysis in thetime domain (skewness and kurtosis parameters) detected the presence of nodulesand has provided useful information concerning the morphology of the deposit closelyrelated to the macroscopic and microscopic studies.

ABSTRACT The present work discusses the gold and silver recovery by cyanidationfrom a solid leach residue produced by a new alternative of processing copper matteor white metal. The leach residue contains mainly hematite, cupric ferrite, insolublesand precious metals. An increase in temperature increases the gold dissolution, whilethe opposite effect was found for silver. The low silver dissolution appears to be theresult of the roasting step of the copper white metal. Although no direct evidence of asilver-iron ferrite or silver-copper double oxide was found in the residue, results indi-cate that metallic silver dissolves in the ferrite both by intergranular diffusion andFick’s diffusion, with a diffusion coefficient of 5 x� 10-4 sq.cm2/s at 800°C.


Study of the Thermodynamic Properties ofthe Al-Mg Binary System Between 973-1073 K by the EMF MethodG.R. Karimi Aghdam and M. Soltanieh, Department ofMaterials and Metallurgical Engineering, Iran University ofScience and Technology, Narmak, Tehran, Iran

On the Formation of Extruded SurfaceSegregation Layer in Aluminum DirectChill Casting ProcessM.O. El-Bealy, Ain Shams University, Cairo, Egypt

ABSTRACT The thermodynamic properties of an Al-Mg binary system with 0.07 to12.10 at% Mg were determined at temperatures between 973-1073 K. The follow-ing Mg concentration cell was used: Mg (pure), MgCl2-CaCl2 (eutectic), Al-Mg (melt).In this system, Mg shows negative deviation from Raoult’s law. Alloys between 0 to 6at% Mg obey Henry’s law. The Henrian coefficient of Mg was 0.47, 0.52 and 0.53 at973, 1023 and 1073 K, respectively. The EMF values were used for calculating thepartial and integral Gibbs free energies, enthalpies, entropies, excess Gibbs freeenergies and Wagner’s first order interaction coefficient.

ABSTRACT The aim of this research work was to develop a mathematical model tostudy the formation of extruded surface segregation phenomenon during the earlystages of solidification in an aluminum direct chill casting process. Some typicalcases in conventional direct chill casting processes related to increase surface seg-regation and fluctuation in macrosegregation with distance from the ingot surfacewere simulated. Good agreement was found by previous measurements and simu-lated results. Model results were discussed to explain the effects of different thermalsolidification factors and interdendritic strain on the extruded surface segregationlayer phenomenon. The results show that this phenomenon is sensitive to alloy com-position and forms in the gap between the ingot surface and mould wall. Also, themodel results point out that this phenomenon appears as a direct effect of the extru-sion mechanism of interdendritic solute liquid associated with the interdendritic straindistribution in the coherent region in the mushy zone.

ABSTRACT This paper presents the results of a computing simulation of steel flow ina one strand slab tundish. For verification of the mathematical model and results ofthe numerical simulation, experimental research during continuous steel castingprocess was conducted. The effect of the industrial experiment was characteristic ofa change in chemical elements when steel grades were changed in the course of thecasting sequence. The internal geometry of the considered object was changed bytwo types of flow control devices, i.e., subflux turbulence controller and gas perme-able barrier. From these calculations of residence time distribution of steel curve(RTD) the influence of argon blowing and use of the subflux turbulence controller onsteel flow in the tundish have been obtained.

ABSTRACT The hot cracking susceptibility of two different Al-Mg alloys during weld-ing at various applied strains was investigated. At each strain value, the amount ofhot cracking susceptibility increased with increasing magnesium content. Thermalanalysis results verified that hot cracking susceptibility indeed can be related to thesolidification range. As suggested in the solidification range approach, the results ofthe present study confirm that the extent of solidification and liquation crackingdepend on the magnitude of solidification range and the strain imposed during weld-ing. The fracture surfaces of liquation and solidification cracks were investigated withEDS. Liquation crack surfaces were found to have high Mg content whereas solidifi-cation crack surfaces revealed iron rich phases. A quench test was designed toobserve the effect of mid-plane segregation zone. It was observed that high segrega-tion at the mid-section of the alloy having higher magnesium can increase theliquation cracking susceptibility during welding since it decreases the solidus temper-ature of the intergranular liquid.

Numerical Simulation of Steel FlowThrough a One Strand Slab Tundish with Steel Flow ControlDevicesAdam Cwudzinski, Department of Metals Extraction andRecirculation, Faculty of Materials Processing Technology andApplied Physics, Czestochowa University of Technology,Czestochowa

Hot Cracking Susceptibility of Twin RollCast Al-Mg Alloy WeldsSüha Tirkes, Caner Batıgün, Welding Technology and Non-Destructive Testing and Research/Application Center, MiddleEast Technical University, Ankara, Turkey, and Alpay Ankara,Department of Metallurgical and Materials Engineering, MiddleEast Technical University, Ankara, Turkey

June/July 2010 | 85

Excerpts taken from abstracts in CMQ, Vol. 49, No. 1.Subscribe—www.cmq-online.ca

Novel Thermal Processing of Dual PhaseSteels: II – Work Hardening and FractureMechanismsM. Westphal, Materials Science and Engineering, McMasterUniversity, Hamilton, Ontario, J.R. McDermid, MechanicalEngineering, McMaster University, Hamilton, Ontario, J.D.Boyd, Mechanical and Materials Engineering, Queen’sUniversity, Kingston, Ontario, and J.D. Embury, MaterialsScience and Engineering, McMaster University, Hamilton,Ontario

Characterization of Buffer Layers on Ni-based Substrates for YBCOSuperconductorsIsil Birlik and Erdal Celik, Dokuz Eylul University, Departmentof Metallurgical and Materials Engineering, Buca, Izmir, Turkey

Estimation of Corrosion Rate of Mild Steelin Sea Water and Application of GeneticAlgorithms to Find Minimum CorrosionRateSubir Paul, Department of Metallurgical and MaterialEngineering, Jadavpur University, Kolkata, India

ABSTRACT Metal oxide buffer layers provide a continuous, smooth textured andchemically inert surface for growth of the YBCO (YBa2Cu3O7-x) film and prevent metaldiffusion from the substrate into the superconductor. Textured, crack free and contin-uous buffer layers were obtained through the sol-gel technique. Prior to the coatingprocess, solution characterization was performed by turbidimeter, pH meter, contactangle goniometer and rheometer. Heat treatment profiles were determined by usingDTA-TG and FTIR. The coated layers were characterized by means of XRD, SEMEDS,AFM and a scratch tester. As a result, textured growth of CeO2, Eu2O3 and Gd2O3thin films on textured Ni tapes by the sol-gel dip coating process were successfullyperformed.

ABSTRACT The volume fraction, scale and distribution of the non-ferritic phases(NFP) in the microstructure of a series of dual phase steels were varied by novelthermal processing. The effects of these microstructural modifications on uniaxialtensile properties are reported. By refining the scale of both the ferrite grains and theNFP particles, the fracture strain was increased significantly with minimal reductionin uniform strain. The fracture damage mechanisms are decohesion of NFP particlesat 293 K (ductile failure) and cleavage micro-cracking of ferrite grains at 77 K (brittlefailure). Recommendations are made for microstructural design of DP steels for spe-cific applications.

ABSTRACT Life prediction of steel structure in marine environment is a challengingtask for design and corrosion engineers for existing structures as well as new struc-tures to be constructed. The major parameters influencing the rate of marinecorrosion are salinity, sulphate, bicarbonates, pH and temperature and dissolved oxy-gen. These parameters have a wide range of variation, depending on geographicallocations of the structure as well as various depths of seawater in which parts of thestructures are submerged. In the present investigation, endeavours have been madeto estimate the corrosion rate for a given geographical location in an ocean with anycombinations of these variables, by performing few laboratory experiments. Geneticalgorithms have been applied with a combination of five genes: chloride, sulphate,dissolved oxygen, pH and temperature to obtain the optimum combination of thesefive parameters that would bring down the corrosion rate of steel to a minimum.

technical abstractsEXPLORATION AND MINING GEOLOGY


Geological and HydrogeologicalConditions for Forming UraniumOccurrences in the Froqlos–Jabal AbouRabah Region, Palmyrides, SyriaJ. Asfahani, R. Al-Hent and M. Aissa, Geology Department,Atomic Energy Commission, Damascus, Syria

Alkali/Alumina Molar Ratio Trends inAltered Granitoid Rocks Hosting Porphyryand Related DepositsJ.F. Davies and R.E. Whitehead, Department of EarthSciences, Laurentian University, Sudbury, Ontario

Assessing the Returns to CopperExploration, 1989–2008Michael D. Doggett, HanOcci Mining Advisors, Vancouver,British Columbia, and Richard A. Leveille, Freeport McMoRanExploration, Phoenix, Arizona, USA

Base Metal Sulfide Mineralization inLower Carboniferous Strata, NorthwestIrelandChristopher J. Persellin, Chesapeake Energy Corporation,Oklahoma City, Oklahoma, USA, Jay M. Gregg, Boone PickensSchool of Geology, Oklahoma State University, Stillwater,Oklahoma, USA, Kevin L. Shelton, Department of GeologicalSciences, University of Missouri, Columbia, Missouri, USA, IanD. Somerville, School of Geological Sciences, UniversityCollege Dublin, Belfield, Dublin, Ireland, and Eliot A.Atekwana, Boone Pickens School of Geology, Oklahoma StateUniversity, Stillwater, Oklahoma, USA

ABSTRACT This paper focuses on determining the favourable geological and hydroge-ological conditions for forming uranium occurrences in Froqlos–Jabal Abou Rabahregion, Palmyrides, Syria. Eighty rock samples from this area have been analyzed byspectrometric gamma-ray technique in order to determine the radioactive concentra-tions of eU and eTh, and %K. Uranium concentrations in shallow and deepgroundwaters have also been determined. High uranium concentrations have beenregistered due to the presence of phosphatic outcrops in the study region. The uraniummigration trends and its remobilization have been analyzed through the analysis of thebehaviour of eU, eTh, and their ratio. The role of the groundwater movement in trans-portation and re-deposition of uranium mineralization is discussed.

ABSTRACT Alkali/alumina and MgO/alumina molar ratio plots graphically portray bothchemical and mineralogical changes accompanying potassic, phyllic, argillic, chloritic,and alunitic alteration of quartz monzonites and granodiorites hosting porphyry (as wellas lode and greisen) ore deposits. The molar ratio plots can be used to identify differ-ent types of alteration. In most cases, the identification based on molar ratios coincideswith petrographic data. In those instances where the molar ratio and petrographic iden-tifications do not agree, the mineralogy may need to be re-examined. Hydrothermalalteration studies using trace elements could benefit from the application of comple-mentary alkali/alumina molar ratio plots.

ABSTRACT Economic returns for the copper industry have been assessed by buildingcash flow models for each of the 100 new mines brought into production over the past20 years. Ninety-one of the 100 new mines returned the assumed 8% cost of capitaland generated a positive net present value (NPV) at the development decision point.

The returns to exploration were measured by deducting the cost of exploration perdeposit from the returns to development per deposit. Overall the copper business hasprovided positive returns to exploration. The returns to development and exploration areshown to be highly sensitive to the cost of capital and metal price assumptions. Withrespect to deposit type, porphyry deposits are both larger (NPV) and exhibit lower prof-itability (IRR) than the non-porphyry deposits.

ABSTRACT Zn-Pb sulfide mineralization at Abbeytown Mine and Twigspark Quarrycomprise the only known carbonate-hosted base-metal sulfide deposits in the SligoSyncline, northwest Ireland. Limestone sedimentation occurred uniformly throughoutthe region during the lower Carboniferous (Mississippian) as observed by field relation-ships and lithofacies; however, petrographic and stable isotope evidence indicate thathost rock dolomitization occurred under different conditions at localities to the west andeast of the Ox Mountains Inlier, suggesting significant uplift and geologic isolation ofthese areas prior to dolomitization. Localized fluid flow systems are thought to beresponsible for sulfide mineralization and associated epigenetic carbonate cements.West of the Ox Mountains Inlier at Abbeytown, evidence of three geochemically distinctfluids are observed. The source of the higher-salinity fluid is likely seawater evaporatedto near the point of halite precipitation. Data from base-metal sulfide prospects innorthwest Ireland indicate no connection with the regionally extensive flow systemthought to be responsible for Zn-Pb deposits throughout the Irish Midlands.

Excerpts taken from abstracts in EMG, Vol. 19, Nos. 1 and 2.Subscribe—www.cim.org/geosoc/indexEMG.cfm

technical abstractsCIM JOURNAL

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

June/July 2010 | 87

A time-value framework for reportingmineral assetsE.J. Sides, AMEC, London, United Kingdom

Bulk sampling of mineral projects using asample tower: Lessons from the fieldH. Thalenhorst, Strathcona Mineral Services Limited, Ontario,D. Dumka, Comaplex Minerals Corp., Alberta

ABSTRACT In this paper, the argument is put forth that the codes used for publicreporting of mineral resources and mineral reserves have some significant limitationswith regard to the information provided to investors on the short- to medium-term valueof mining properties. A time-value framework for reporting mineral assets is proposedin order to overcome these limitations. The potential benefits of this system are dis-cussed, including the ability to incorporate factors directly into the magnitude of thereported mineral assets. The proposed framework would assist in the standardizationof mineral assets reporting in such a manner that they could eventually be more read-ily included in financial statements.

RÉSUMÉ Dans cet article, il est discuté que les codes utilisés pour la divulgationpublique des ressources minérales et des réserves minérales ont d’importantes limita-tions en ce qui concerne l’information fournie aux investisseurs sur la valeur despropriétés minières à court et à moyen termes. Un cadre valeur-temps pour divulguerla valeur des actifs minéraux est proposé dans le but de surmonter ces limitations. Lesavantages potentiels de ce système sont discutés tels que les temps de demande depermis et de construction, directement dans l’ampleur des actifs minéraux divulgués.Le cadre proposé aiderait à normaliser la divulgation des actifs minéraux de sorte qu’ilspourraient éventuellement être plus facilement inclus dans les états financiers.

ABSTRACT For an advanced mineral exploration project that has a “nugget” issuemaking the assessment of the deposit grade difficult, a bulk sampling program usinga sample tower can provide information that is otherwise not obtainable prior to actualproduction. This paper presents a practical bulk sampling and sample preparation pro-tocol, lists design features for the sample tower, examines the sampling errors that willbe encountered, provides information on quality control procedures, and looks at thecosts and benefits of such a program, based on the experience of undertaking bulksampling programs during the period of 1985 to 2008.

RÉSUMÉ Au stage d’exploration avancée, il peut être difficile d’évaluer la teneur d’ungisement minéral lorsque le projet comporte un effet « pépite »; un programmed’échantillonnage en vrac utilisant une tour de division des échantillons peut fournir del’information qui autrement ne serait pas disponible avant la véritable production. Cetarticle présente un protocole pratique d’échantillonnage en vrac et de préparationd’échantillons; il liste les caractéristiques de conception de la tour de division deséchantillons, analyse les erreurs d’échantillonnage qui seront rencontrées, fournit del’information sur les procédures de contrôle de la qualité et examine les coûts et lesavantages d’un tel programme, basé sur l’expérience découlant de programmesd’échantillonnage en vrac entrepris entre les années 1985 et 2008.

ABSTRACT Ilmenite from the Everett deposit in Quebec was characterized both chem-ically and mineralogically. The sample investigated contained 40% Fe2O3, 21% TiO2and 21% SiO2. The ilmenite grains contained about 20 to 25% hematite intergrownblades, with widths ranging from 2 to 30 µm. Crushing the sample to less than 0.85mm led to significant liberation of the ilmenite from the gangue minerals. Gravity sep-aration followed by magnetic separation of this size fraction led to a TiO2 concentrategrading of about 30% TiO2, with a recovery of 94%.

Mineralogical characterization andconcentration of Everett deposit ilmenite oreS. Pedler and T.A. Utigard, University of Toronto, Ontario

technical abstractsCIM JOURNALExcerpts taken from abstracts in CIM Journal, Vol. 1, No. 1. Subscribe—www.cim.org


Innovative dragline monitoringsystems and technologiesJ.F. Vynne, Thunderbird Mining Systems,Washington, USA

RÉSUMÉ De l’ilménite du gisement Everett au Québec a été caractérisée chimique-ment et minéralogiquement. L’échantillon analysé contenait 40 % Fe2O3, 21 % TiO2 et21 % SiO2. Les grains d’ilménite contenaient de 20 à 25 % de lamelles d’hématiteimbriquées dont les largeurs variaient de 2 à 30 µm. Le broyage de l’échantillon àmoins de 0,85 mm a permis de très bien libérer l’ilménite des minéraux de la gangue.Une séparation gravimétrique suivie d’une séparation magnétique de cette fraction adonné un concentré dont la teneur était d’environ 30 % TiO2, avec un taux derécupération de 94 %.

ABSTRACT This paper examines several of the systems and processes that have beendeveloped over the past few years and are now being utilized by major mining compa-nies on draglines in North America, Australia and South Africa. These technologiesinclude production monitors and reporting systems, GPS navigation systems, structuralintegrity monitoring systems, structural analysis studies to increase the dragline ratedsuspended loads (RSLs) and inspection and response strategies. The use of thesetechnologies provides significant increases in dragline production and reduces main-tenance costs, downtime and the chance of a catastrophic failure.

RÉSUMÉ Cet article analyse plusieurs systèmes et processus qui ont été développésau cours des dernières années et qui sont maintenant utilisés par les grandes com-pagnies minières sur les pelles à benne traînante en Amérique du Nord, en Australie eten Afrique du Sud. Ces technologies comprennent des systèmes de suivi de la produc-tion et de production de rapports, des équipements de radionavigation GPS, dessystèmes de suivi de l’intégrité structurale et des analyses structurales afin d’aug-menter les charges suspendues nominales des pelles à benne traînante et desstratégies d’inspection et de réaction. L’utilisation de ces technologies augmente sig-nificativement la production de la pelle à benne traînante et diminue les coûtsd’entretien, les temps d’arrêt et le risque d‘une défaillance catastrophique.

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voices from industry


Innovation is not a one-time event that occurs like abolt of lightning from the sky — it is a constant evolu-tion of ideas and insights that builds on previous work

and capability to deliver incrementalperformance. There are times whena technology will act as a catalyst tostimulate a wave of innovation.Wireless networking applied to sur-face mining is such a technology.

Wireless networking is a strate-gic enabling technology for surfacemining, as unlimited and high-capacity connectivity will instigatenew automation opportunities.These opportunities will improve theperformance of individual equip-ment and operators and, moreimportantly, will enhance the per-formance of the entire minethrough optimization of all its oper-

ating components. Greater benefits are gained fromimproving the total system versus the individual pieces.

The benefit of networking is the ease and unrestrictedability it brings to maximize the connection between asmany components as possible. It is this “connectivity” thatis strategic. The obvious example is the World Wide Web.The strategic advantage and benefit of the Internet is itsability to connect to “anyone, anywhere.” This providesunlimited opportunities to all but eliminate the disadvan-tages of time and distance and enhances the delivery ofbusiness and personal capability, products, services, knowl-edge, etc. This “technology” has fundamentally changed theway business is done, e.g. banking, integrated manufactur-ing, telecommunications and retail.

One sector that has lagged behind is our miningindustry. Both mine operators, OEMs (original equeptmentmanufacturers) and some OTMs (original technology man-ufacturers) have been resistant to open up and drive thedevelopment and implementation of open technology andnetworking standards in the operating mine. The industryhas been victim to proprietary, expensive and closed tech-nology solutions by OEMs and OTMs and, to a great extent,the mine operator has passively allowed this approach.

This largely occurred due to lack of operationalknowledge and understanding of the benefits of automa-tion and networking. It is not a shortage in funding, asmining companies will pour millions of dollars into ERP(enterprise resource planning) solutions that do not

provide any competitive strategic advantage. In fact, theindustry has appeared to have gone backwards — as anexample, activity-based costing, or knowledge-basedcosting, seems to have disappeared. When you are in acommodity-based business, the competitive advantage isgained by being able to “put together” the product valuechain better than your competition. Operating excellenceis the competitive advantage, which is where we need toimprove, and automated technology and networking is akey enabler.

The times they are a-changin’ The Surface Mining Association for Research and

Technology (SMART) has, for a number of years, been driv-ing the need and establishment of intelligent technologyand networking standards for mobile mining equipment.The purpose of the initiative is to establish a set of stan-dards that will enable easy and low-cost delivery andoperation of automated applications for mobile miningequipment and, even more importantly, for the integra-tion, optimization and performance of the whole mine.There is a step change opportunity to improve the entiremining performance through effective integration andtotal systems thinking and management.

A significant step forward was accomplished inVancouver on May 8, 2010, just prior to the CIMConference and Exhibition. A SMART industry meeting washeld, sponsored by Teck Resources Limited, with a repre-sentative committee of mine operators, and the majorOEMs and OTMs. For the first time, universal alignment, inprincipal, was achieved regarding the acceptance andapplication of common “off-the-shelf” industry standardsfor wireless networking and onboard data access and inte-gration. This is a significant accomplishment and a moveforward for the industry. The OEMs and OTMs must becomplimented for managing their competitive spirits andrecognizing the need and the benefits to the industry, andthemselves. This evolution to fundamental “open” tech-nology infrastructure will provide the catapult for the nextlevel of mining innovation.

The final, and most important, success factor is theopenness, commitment and support of the leadership ofthe mining companies to standards and integrated sys-tems thinking, as they are the only ones that can make ithappen. The future is going to bring a wave of new tech-nology and automation innovation that will ride on high-speed wireless networking and drive a higher level ofoperating excellence. It is up to us to catch that wave. CIM

Making the right innovative technology connectionsBy Tim Skinner, president, SMART Systems Group, co-chair, SMART Standards Technology Committee, past chair, CIM Society for Innovative Mining Technology, and chair, CIM IT Steering Committee

cim magazine june/july 2010

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