cim magazine june/july 2014

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IN THIS ISSUE C IM MAGAZINE

JUNE/JULY | JU IN/JU ILLET2014

Enirgi Group and its ADY Resources team, withtheir brine operation high on the salt flats ofArgentina, are determined to be ready to providebattery-grade lithium when the electric vehiclemarket takes offby Pierrick Blin and Antoine Dion-Ortegaphotography by Michel Huneault

40 Carbon capture is the future of coalBut can we get there fast enough?by Graham Chandler

51 A cleaner burn Through the use of filters, catalyticconverters and more efficient engines,manufacturers and miners are making greatstrides in their ability to control potentiallyharmful diesel emissions and reduceexposure to underground workersby Eavan Moore

22 Quebec’s key assetCreated a little more than two years ago,Ressources Quebec – a subsidiary of theprovincial government’s investmentagency – has $1 billion to invest in localprojects at all stagesby Antoine Dion-Ortega

cover story

June/July 2014 | 5

54

40

22

8 Editor’s letter 10 President’s notes 12 Letters to the editor

tools of the trade 14 The best in new technology

compiled by Tom DiNardo

news 16 Industry at a glance 24 Metallurgical coal prices are at a

five-year low, causing many B.C.coal mines to delay expansionsand cut productionby Christopher Pollon

26 A fatal bear attack at Suncor’sbase plant near Fort McMurrayhas put the spotlight on wildlifesafetyby Ian Ewing

columns 28 Part-time processing can equal

big energy savingsby Michelle Levesque

30 Systems engineering for theinnovation supercycleby Andy Reynolds

31 Feds can’t play favourites withrail rulesby Brendan Marshall

upfront: safety 32 A widespread outbreak of Ebola

threatens the resource richregion of West Africaby Correy Baldwin

34 Forty years ago a wildcat strikein Elliot Lake, Ontario shifted theway safety was treated acrossall industriesby Alexandra Lopez-Pacheco

36 Energy drink consumption isskyrocketing, but is the health ofthe workforce paying the price?by Tom DiNardo

38 University of Alberta safety andrisk guru Gord Winkel made theleap to academia from Syncrudein 2010, and continues to makethe mining industry a betterplace to workby Vivian Danielson

cim community 65 Record-breaking CIM Convention

2014 in Vancouver provesMining's 4 Everyoneby CIM Magazine staff

travel 62 Karratha, Australia

by Tom DiNardo

mining lore 82 Rumours of a local hunter using

gold bullets in his rifle onVancouver Island sparks anexpedition, led by guide andraconteur Tomo Antoineby Correy Baldwin

77 Technical abstracts 81 Innovation showcase 81 Product files

& Professional directory

contenufrancophone

6 | CIM Magazine | Vol. 9, No. 4

24 34

CIM Magazine estdisponible entierement en français en ligne :magazine.CIM.org/fr-CA

page couverture59 Profile de projet

Le Groupe Enirgi et l’équiped’ADY Resources sontdéterminés, avec leursopérations d’extraction desaumure dans les lacs salésargentins, à offrir un lithium dequalité batteries lorsque lemarché du véhicule életriqueprendra enfin son envolpar Pierrick Blin et Antoine Dion-Ortega

10 Mot du président

46 La technologie de captage etstockage du CO2 peut-ellesauver l’industrie du charbon?par Graham Chandler

65 La communauté de l’ICM 81 Résumés techniques

59

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MAKING A COMMITMENT TO LOWERING YOUR COSTS

In May, CIM honoured members of theCanadian mining industry, including thewinners of the John T. Ryan safety awards.

The trophies were given out to mine opera-tors who had the lowest reportable injury fre-quency in 2013. Though there are only threecategories – coal, metal and select mines – thespotlight had to be divided six ways becausecontenders in two of the three categories hadno reportable lost time injuries at all. Any life-time CIM member with 50 years in the indus-try can tell you how remarkable that achieve-ment is. There are some still around whoremember being warned that the average costfor 500 feet of shaft development was one life.

The day after the CIM awards gala, an explosion roared through theunderground workings of the Soma coal mine in Turkey. The blast, subse-quent fire, and the spread of poisonous gases killed 301 of the nearly 800workers underground at the time, making it the worst mine disaster in thatcountry’s history. It also drove people into the streets to protest Turkey’spoor safety standards in the mining industry and its government’s callousreaction to the event. Reporting on the disaster revealed that the mine hadbeen inspected a number of times, apparently confirming the need for aninvestigation into the corruption and lax enforcement in the sector thatopposition lawmakers had demanded just weeks before the explosion.Coal company executives have since been arrested and mining practices inthe country are now subject to the scrutiny that was tragically overdue.

Progress toward safer workplaces is not a slow and steady march.Forty years ago in Ontario, union members, incensed by the apparentdisregard for the recently discovered cancer-risks of uranium mining,walked off the job in an illegal strike to push for better safety standards.As Alexandra Lopez-Pacheco details in “The strike that saved lives” (p.34), the overhaul of occupational health and safety practices that fol-lowed was a catalyst for innovation and mining’s safety record in thiscountry improved dramatically.

Ten years from now, I hope the members of the Turkish mining industrywill be able to boast similar advances. The terrible irony of the Soma dis-aster is that the vast majority of the lessons and recommendations that willcome from the investigation will likely not be new. They have already beenlearned and integrated into operations, as the crowded stage for the JohnT. Ryan awards demonstrated.

The deaths of Marc Methé and Norm Bissaillon at the Lockerby Mineand Lorna Weafer at Suncor’s oil sands site in May, however, highlight howelusive the goal of “zero harm” is. Regardless of the scale, whether inCanada or overseas, as quickly as progress in safety can potentially bemade, it can be undone that much faster.

Ryan Bergen, [email protected]

@Ryan_CIM_Mag


editor’s letter Editor-in-chief Ryan Bergen, [email protected] editor Angela Hamlyn, [email protected] editor Andrea Nichiporuk, [email protected]

Section editors Peter Braul, [email protected] Mathisen, [email protected]

Copy editor/Communications coordinator Zoë Koulouris, [email protected]

Web content editor Maria Olaguera, [email protected]

Editorial intern Tom DiNardo, [email protected]

Contributors Correy Baldwin, Pierrick Blin, Vivian Danielson, PeterDiekmeyer, Antoine Dion-Ortega, Ian Ewing, Graham Chandler,Michelle Levesque, Alexandra Lopez-Pacheco, Brendan Marshall,Eavan Moore, Christopher Pollon, Andy Reynolds, Karen Rolland, ChrisWindeyer

Editorial advisory board Alicia Ferdinand, Garth Kirkham, Vic Pakalnis, Steve Rusk, Nathan Stubina

Translations Antoine Dion-Ortega, SDL, Karen Rolland

Published 9 times a year by:Canadian Institute of Mining, Metallurgy and Petroleum 1250 – 3500 de Maisonneuve Blvd. WestWestmount, QC H3Z 3C1Tel.: 514.939.2710; Fax: 514.939.2714 www.cim.org; Email: [email protected]

Advertising salesDovetail Communications Inc.30 East Beaver Creek Rd., Ste. 202Richmond Hill, Ontario L4B 1J2Tel.: 905.886.6640; Fax: 905.886.6615; www.dvtail.com Senior Account Executives 905.886.6641Janet Jeffery, [email protected], ext. 329Neal Young, [email protected], ext. 325Account ManagerFiona Persaud, [email protected], ext. 326

Subscriptions Included in CIM membership ($174.00); Non-members (Canada),$270.00/yr (PE, MB, SK, AB, NT, NU, YT add $11.00 GST, BC add$26.40 HST, ON, NB, NL add $28.60 HST, QC add $32.95 GST +PST, NS add $33.00 HST) Non-Members USA and International:US$290.00/year. Single copies, $25.00.

This issue’s coverA collecting pond at the Rincón Salar lithium projectPhotograph by Michel Huneault

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

Copyright©2014. All rights reserved.

ISSN 1718-4177. Publications Mail No. 09786. Postage paid at CPA Saint-Laurent, QC.

Dépôt légal: Bibliothèque nationale du Québec.The Institute, as a body, is not responsible for statements made or opinions advanced either in articles or in any discussion appearing in its publications.

Printed in Canada

Hard to win, too easy to lose

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president’s notes | mot du président

Où sont passées les deux dernières années ?Il y a deux ans ce mois-ci, l’ICM me contactait pour me demander d’envisager d’accepter le poste de pré-

sident de l’institut, et je me souviens de m’être alors fait la réflexion « tu as tout le temps de t’y préparer ». Ehbien, ces deux années sont passées à la vitesse grand V !

En réalité, le travail commence immédiatement. Les quatre membres du bureau du président, à savoir leprésident élu entrant, le président élu, le président et l’ancien président, sont tous activement impliqués pen-dant les quatre années de leur mandat. Ce n’est là que l’un des nombreux exemples révélant l’engagementde l’ICM envers le travail d’équipe à tous les niveaux, un facteur essentiel à son succès indéfectible.

Le congrès de l’ICM, qui s’est tenu à Vancouver au mois de mai, a été couronné de succès à bien desniveaux : une participation sans précédent ; un salon commercial et une cérémonie de remise des prix qui affi-chaient complet ; et une salle comble au gala de Joy Global. Les excellents programmes technique et de laJournée finance et gestion minière ont attiré du monde et les salles étaient remplies pour la plupart des pré-sentations. Au pavillon de M4S, des étudiants pleins d’enthousiasme allaient de kiosque en kiosque pour pren-dre part aux activités éducatives et s’entretenir avec les bénévoles. Les retours des enseignants ont égalementété très positifs. Ne sous-estimons pas, ne serait-ce qu’une minute, la valeur de cette occasion offerte aux étu-diants de découvrir la variété exceptionnelle de carrières proposées dans l’industrie des minéraux.

Le congrès de l’ICM marque l’aboutissement d’une année d’efforts déployés par le bureau national de l’ICMet une équipe de bénévoles dédiés. Le travail fourni par ces personnes est énorme ! C’est pourquoi je tiens àles féliciter pour leur excellent travail, et souhaite remercier les nombreux commanditaires pour leur soutienqui permet à l’ICM de développer des programmes et des initiatives lui garantissant de rester la communautépour une expertise de premier plan.

C’est un honneur pour moi d’être votre président, et je me réjouis à la perspective de cette année passion-nante et riche en événements. Je suis certain que d’ici peu, je me demanderais « où est donc passée cette der-nière année ».

Sean WallerCIM PresidentPrésident de l’ICM


Where have the past two years gone? Two years ago this month I was approached by CIM and asked to consider taking on the role

of president, and I remember thinking that I had lots of time to prepare. Well those two yearshave flown by!

In reality, the work starts right away. The four members of the president’s office – the incom-ing president-elect, the president-elect, president and past-president – are all fully engaged dur-ing their four years of service. This is but one of the many instances that illustrate the dedicationto teamwork at all levels in CIM, which is critical to its continued success.

The CIM Convention in Vancouver in May was a success by any measure: a record atten-dance; a sold-out exhibition; a sold-out awards gala; and a full house at the Joy Global Gala.The technical and Management & Finance Day programs were excellent, with standing roomonly in many presentations. When I toured the M4S pavilion, it was absolutely buzzing withexcited students running from booth to booth where they participated in educational activitiesand spoke with volunteers. Feedback from teachers was extremely positive as well. We cannotfor a minute underestimate the value of providing students the opportunity to see the variety ofterrific career opportunities available in the minerals industry.

The CIM Convention is the culmination of a year’s worth of effort by the CIM National Officeand a team of dedicated volunteers. It is a lot of work! I wish to congratulate them all on a jobwell done, and thank the many sponsors whose support allows CIM to develop programs andinitiatives that ensure we remain the Community for Leading Industry Expertise.

I am honoured to be your president and look forward to an exciting and busy year. I am surethat all too soon I will be saying “Where did the past year go?”

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letters

For more insight into the subject, Isuggest reading a special report pub-lished in 2009 by the Wall Street Jour-nal titled “Unlocking the full potentialof women in the U.S. economy.” Thisarticle gives good insight into the busi-ness case for diversity, what holdswomen back, and offers apath to change. Another excellent ref-erence is www.catalyst.org. Catalyst isa non-profit organization whose mis-sion is to help create more inclusive,diverse workplaces where any personcan thrive. I encourage the leaders ofany company lacking a diverse work-force to check out these resources andsee how a diverse workforce can bene-fit their organization.

Donna M. Cortolezzis, P.Eng.Ph.D. studentLaurentian University

The future of exploration

Eavan Moore’s story On the Land inthe May issue of CIM Magazine was awell-written, timely reminder that thefuture is now for aboriginal participa-tion in the mineral industry.

While access to capital for aborigi-nal communities to participate directly

in mine development remains a chal-lenge, participation in early-stageexploration offers more possibilities fora lower cost entry into the business.

Aboriginal Peoples are highlyskilled observers of the natural envi-ronment, a skill that lends itself to tra-ditional prospecting. Indeed, there aremany examples of accomplished abo-riginal prospectors but relatively fewexamples where these prospectors havegone the next step of staking claimsand forming a company to attract part-ners and build a business.

In addition to the many current ini-tiatives in training and skills develop-ment to facilitate employmentopportunities for Aboriginal Peoples inmining operations, as an industry, wealso need to help inspire more entre-preneurial spirit in aboriginal commu-nities so that talented young peopleappreciate the wealth creation oppor-tunity that prospecting offers.

This is starting to happen in a num-ber of northern communities and inthe future, I submit that aboriginalentrepreneurs will be the leaders of themineral exploration industry inCanada.

Donald S. BubarCEO of Avalon Rare Metals

A call to actionIn Maureen Jensen’s interview (“The

pioneer spirit,” March/April 2014),when asked about the barriers womenface, she said the business has fewerwomen and the numbers are chang-ing. She also said graduating classesare equally split between men andwomen. In engineering, the split is notequal – only 19.2 per cent of womenare enrolled in engineering programsin Canada. The highest enrollmentwas in 2001 at 20.7 per cent; however,according to the Ontario Network ofWomen in Engineering, the percentageof women has been in decline sincethen, averaging 17-18 per cent for thelast five years.

I agree with Ms. Jensen that diversityin a workforce is needed; howevercompanies need to do more than justtalk, they need to take action. A firststep may be for a company to lookat the representation of men andwomen in every job class. If it isn’tequal, then the next step is to deter-mine why and what can be done toenact change. There is no easy solution– this is a complex subject that encom-passes, education, training, hiring prac-tices, government policy and retentionissues. It also requires a strong com-mitment at the executive level to bringabout permanent change.

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TOOLS OFTHE TRADE

◢ Packing powerWhat if you could add to your drilling depth whiledrilling more productively at the same time? In March,Boart Longyear unveiled its LM110 undergrounddiamond coring drill, which sports a new 110-kilowatt(kW) power pack. This allows users to drill efficiently atdeeper depths with one-third more torque than the90-kW power pack in the previous model. “That justmeans when you’re in a deeper hole, it’s much easier[to continue drilling],” said Justin Warren, senior globalproject manager. Due to the modular nature of the LMdrill series, Boart Longyear is selling a 110-kW powerpack kit separately, as it is compatible with its oldermodels. This allows customers to upgrade their currentdrills by replacing the older power packs. Drillers alsohave the option of adding a rod handler to the newdrill rig, making the rod-loading process easier andsafer. They can also add Boart Longyear’s Drill ControlInterface, which includes display and optimizationfunctions like data logging, reporting and otherproductivity tools.

Compiled by Tom DiNardo

◢ Predict your blast fragmentationInconsistent and unexpected blasting results due to theunknown characteristics and variables in rock have thepotential to cost companies millions of dollars in cleanupand additional fuel consumption. To improve blastingresults, WipWare has added BlastCast to its suite of blastof fragmentation analysis software. The new tool allowscustomers to forecast blast fragmentation before actualblasting occurs. Users adjust their blasting parameterssuch as hole diameter and rock density, and BlastCastgenerates a graph that predicts blast fragmentation.After blasting, users compare the actual results withpredicted results using photo-analytic technology and asthey continue to blast and update parameters, BlastCastpredictions become more accurate, unearthingpreviously unknown variables. “By solving that unknown,you’ve got a very accurate predictive model for the rocktype under your operation,” said Tom Palangio, company

president. “You keep using our software to measure butnow you’re able to predict with more accuracy and fine-tune the blast to meet your specific needs.”

◢ Drill durabilityDesigned for use at hard rock operations in harshconditions, Joy Global’s new rotary blasthole drill seeksto minimize maintenance downtime. The P&H 285XPCdiesel hydraulic drill can operate in -40 C temperaturesand is designed for 270- and 311-millimetre diameterhole applications, making it ideal for iron ore andcopper operations. “We were looking to provide a drillbest suited for that market that combines the reliabilityand productivity of other drills we have in our productline,” said Eric Wilkinson, product manager for drills.The diesel power unit in the 285XPC facilitates mobilityfor various drilling functions around mine sites byremoving the trail cables necessary with an electric drill.The drill comes with Joy Global’s Universal Drill Cab tosimplify training for operators familiar with other P&Hdrill models and also improve safety with unobstructedviews of the drilling area through expansive windows.

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news

Canada faces a zero-spam future

Canada’s new anti-spam legislationwill come into effect July 1, forcingmany Canadian businesses to changetheir current electronic communica-tions practices or potentially face largefines.

The new act will apply to “com-mercial electronic messages” (CEM)sent by email and text message andthrough social media like Facebookand Twitter, originating from bothwithin and outside Canada. Individu-als contravening the act will face up to$1 million in penalties, while busi-nesses could be fined up to $10 million.

Victor Dudas, a lawyer at Vancou-ver firm Clark Wilson, said the firststep companies must take is to deter-mine if the messages they send are infact CEM as defined by the new law.Such messages include offers to pur-chase, sell, barter or lease a product,goods, a service, land or an interest orright in land. For example, an emailsent out by a junior mining companyreporting new mineral discoveries orassay results with the hopes of drivinginvestment is considered a CEM andwould be subject to the new law.

A major thrust of the law is toensure recipients of commercial mes-sages have granted consent in advanceof receipt. According to analysis bythe firm, the law will require that“prior express consent” be obtainedfrom a recipient before the message isdelivered. The onus will be on thesender of commercial messages toprove that this mandatory prior con-sent has been granted, meaning allcompanies will need to create newsystems to properly document all con-sent received, while continuallyupdating all customer email lists anddatabases. In many cases, companieswill also need to obtain “fresh” con-sent from their customers to ensurethey are compliant with the rules.Finally, Dudas said companies mustdocument all the steps taken to com-ply with the act.

– Christopher Pollon

Agnico Eagle pledges $5M for Nunavut university

The news came pretty much out ofthe blue. Agnico Eagle Mining’s (AEM)chairman, Jim Nasso, stood on stage atthe Nunavut Mining Symposium inIqaluit in April and did somethingnobody had done before: commit

money – $5 million to be exact – tothe establishment of a university inNunavut.

Canada remains the only circumpo-lar nation without a university in itspolar regions. Training opportunitiesfor trades and specific professions likenursing and teaching abound, butaspiring students of the humanities,sciences and commerce must leave theterritory to pursue their studies.

But do not expect a U of Nu toopen its doors any time soon. Nunavutsuffers from a high school dropout rateapproaching 75 per cent, and govern-ment policy is focused on that prob-lem, said Wende Halonen, aspokeswoman for the Department ofEducation. “The gesture by AEM andinterest in building a university isappreciated and came as a surprise,”Halonen said, but added, “there hasnot been any lengthy discussionaround a university.”

By contrast, Nasso is bullish on theproject. He expects the first donationto inspire more benefactors to comeforward. “We were bent on doing it,”he told Iqaluit’s Nunatsiaq News. “Ithink a lot of people are going to comeforward [with funding] and this willcome to fruition sooner than you think.” - Chris Windeyer

Prez takes a pieCIM past-president Bob Schafer is presented with a pie

by Mining Association of British Columbia president andCEO Karina Briño at the annual Teck Celebrity Pie Throwin downtown Vancouver on May 15. Schafer and 16 othermining professionals took pledges prior to receiving a pie in

the face for the Mining for Miracles charity, which is raisingfunds to create a biobank at the B.C. Children’s Hospital.Schafer raised $17,944.45 and the event brought in a totalof $777,259.

– Herb Mathisen

Courtesy of B.C. Children’s Ho

spital Found

ation

from

+1.705.855.1310 [email protected] hard-line.com

W E C A N

A N Y T H I N G Y O U R U N .

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NRCan’s Rickfordoptimistic with newQuebec regime

Quebec’s extractive industries couldsee renewed vigour following the elec-tion of Philippe Couillard’s Liberalprovincial government, said Greg Rick-ford, Canada’s recently appointed federal

minister of natural resources. “We wantto extend our hand to work together,”said Rickford in a mid-April presenta-tion to the Conseil des Relations Interna-tionales de Montréal (CORIM), his firstto a Quebec audience.

Rickford cited several areas of poten-tial cooperation including a better cli-mate on federal-provincial joint review

panels, implementation of the 2011Canada-Quebec agreement related tothe development of hydrocarbons in theSaint Lawrence River, mine safety issues,and building new export markets.

“We always liked the Plan Nord,”said Rickford, referring to the previousLiberal administration’s plan todevelop minerals in the province’snorthern region. That plan was essen-tially put on hold following the PartiQuébécois defeat of the Liberal Charestgovernment in 2012. The Parti Québé-cois regime was widely seen as havingdone damage to Quebec’s mining-friendly reputation through its effortsto toughen the existing royalty regime.

Several aspects of Rickford’s biogra-phy suggest that he will extend morethan just a friendly ear to Quebec min-ing sector stakeholders. The new min-ister hails from northern Ontario’smineral-rich “Ring of Fire” region,completed both law school and hisMBA in Quebec, and in his first pressconference demonstrated a goodknowledge of local issues.

Raymond Chrétien, CORIM chair-man, echoed Rickford’s optimismabout the province’s resource extrac-tion sector, saying that the new federal-ist Couillard regime would bring “fouryears of stability.” Chrétien added thatrecent challenges with the proposedNorthern Gateway and Keystonepipelines increased the chances of apossible flow reversal of Enbridge’s 9Bpipeline, which would see shipmentsof Alberta oil sands production to ter-minals in Montreal and possibly Que-bec City. This change would boosteconomic development in Quebec andreduce the province’s dependency onforeign energy sources, he said.

– Peter Diekmeyer

Jochen Tilk namedPotashCorp CEO

PotashCorp announced in earlyApril that Jochen Tilk will take over asthe next president and CEO of thecompany. After stepping down fromthe top position, CEO Bill Doyle willstay on as a senior advisor to Tilk untilJune 2015, to aid in the transition.

news

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The appointment, effective July 1,2014, ends a three-year selectionprocess for PotashCorp’s new leader.Tilk has worked in the mining indus-try for 30 years, most recently servingas president and CEO of Inmet Min-ing, although he has no previousexperience in potash. “He has a verystrong reputation as an operatingCEO with an ability to manage a com-pany’s assets very wisely and he’ll be avery good leader,” said Bill Johnson,senior director of public affairs atPotashCorp.

Outgoing CEO Bill Doyle served asPotashCorp head for nearly 15 years,building it into the largest potash pro-ducer in the world. During his tenure,PotashCorp staved off a 2010 hostiletakeover bid by BHP Billiton. However,in the last year, the potash price drophas hit the Saskatoon-based companyhard: in December 2013, it cut roughly18 per cent of its workforce. “Bill Doylehas been a tremendous leader of thisorganization and overseen incrediblegrowth in not only our potash opera-tions but also our nitrogen and phos-phate operations as well,” saidJohnson. - Tom DiNardo

Two dead in latestSudbury accident

On May 6, a “fall of ground” inci-dent killed two drillers at FirstNickel’s Lockerby nickel mine south-west of Sudbury. In the wake of theaccident, two stop work orders wereissued by the Ontario Ministry ofLabour for water drainage and groundfall issues at the mine. According tothe company, work at the mine wassuspended until May 8, when activi-ties resumed everywhere except at theaccident site.

The tragedy comes exactly onemonth after a 36-year-old worker diedand another was seriously injured atVale’s Copper Cliff smelter in Sudbury,and two years after two perished at thecity’s Stobie mine. This latter incident,caused by a muck slide, led the labourministry to launch a one-year “safetyand prevention review” this February,which has brought together experts

from industry, labour and health andsafety to review ways to make currentmining operations safer.

Topics for review include workertraining, water management prac-tices, and the proper use of barricadesand warning systems around openholes. Technological advances likenew bolting and reinforcement tech-niques to prevent collapse and rockbursts will also be reviewed. “Wehave assembled a group of expertscommitted to occupational healthand safety in the mining sector toprovide advice to the review,” saidGeorge Gritziotis, chief preventionofficer for Ontario, who is leading theprocess. “This will be a targeted, well-focused consultation.”

In the meantime, Labour’s investiga-tion into the causes of the Lockerbyaccident continues. – C.P.

Fire claims 301 at Turkishcoal mine

An explosion and fire in a Turkishcoal mine killed 301 workers on May13. Authorities are still investigatingthe cause of the explosion in the minein Soma, roughly 230 kilometressouthwest of Istanbul.

Carbon monoxide poisoning isthought to have claimed the most vic-tims, as an underground fire carriedthe deadly gas throughout the entiremine, which is owned by the SomaCoal Mining Company. Reports fromTurkish media indicate that companyofficials ignored high levels of carbonmonoxide on sensors in the mine daysprior to the fire. Government and min-ing officials claim, however, that themine was inspected regularly and thatsafety standards were met.

The battle for OsiskoIn April, Osisko announced it was being acquired by Yamana Gold and

Agnico Eagle, ending a dramatic four-month bidding war. In the deal, Yamanaand Agnico Eagle each acquired 50 per cent of Osisko for a total of $3.9 billion,while creating a spinoff company, New Osisko. The partners will form jointcommittees to operate Osisko’s Canadian Malartic gold mine in Quebec. Theprocess, however, started in January with a hostile takeover bid by Vancouver-based Goldcorp, which Osisko fought tooth and nail. Here is a look at the time-line of the bids: - T.D.

industry at a glance

JANUARY13 Goldcorp offers $2.6 billion in cashand shares for all outstanding commonshares of Osisko, representing $5.95 pershare in cash and stocks.

APRIL2 Osisko announces a friendlyacquisition agreement with YamanaGold, which would see Yamana acquirea 50 per cent interest in Osisko’s miningand exploration assets for $441.5 millionin cash and 95.7 million common sharesof Yamana (worth $929.6 million) for anaggregate cash and stock value of $7.60per share.

10 Goldcorp increases its offer forOsisko common shares to $7.65 pershare for a total consideration of $3.6billion.

16 Yamana Gold and Agnico Eagleannounce a deal to jointly acquire 100 percent of Osisko’s issued and outstandingcommon shares for $3.9 billion ($8.15 pershare). The deal would also create aspinoff company, New Osisko, whichwould receive royalties from the CanadianMalartic project and future royalties fromany projects from Osisko’s Kirkland Lakeassets. New Osisko retains $155 millionand Osisko’s Mexico properties.

21 Goldcorp announces it will notamend its offer to Osisko.

23 Goldcorp’s final offer to acquireOsisko shares expires.

MAY30 Osisko shareholders approve theAgnico Eagle/Yamana offer. New Osisko isborn.


Following the incident, the Turkish court arrested eightsuspects for “causing multiple deaths” in the mine disasterincluding Ramazan Dogru, general manager of the company,and CEO Can Gurkan, Reuters reported. The tragedy is theworst mining accident in the country’s history. The incidenthas sparked unrest in Soma and demonstrations acrossTurkey. – T.D.

Northern Dynasty upbeat despite newsetbacks for Alaska’s Pebble mine

Storm clouds continue to gather over Northern DynastyMinerals’ proposed Pebble mine, one of the largest undevel-oped copper-gold-moly resources on the planet, locatedupstream of the world’s biggest sockeye salmon fishery atAlaska’s Bristol Bay.

Concerns about potential impacts to the salmon resourcehave brought attention from international media and morerecently, the U.S. government. In February, the Environmen-tal Protection Agency took the unusual step of launching aClean Water Act process to identify options to protect theBristol Bay salmon fishery. On May 22, Northern Dynastyapplied for an injunction to stop the process, which the com-pany says threatens to derail the project even before a devel-opment proposal is submitted.

As the court action unfolds, the estimated US$6-billionproject has become a political hot potato for potential part-ners. In April 2014, Rio Tinto abandoned the project, “gift-ing” its near-20 per cent stake in Northern Dynasty to twoAlaskan charitable foundations. This was after Anglo Ameri-can withdrew from an option agreement with NorthernDynasty last year, and Mitsubishi divested in 2011.

In late May, Sean Magee, Northern Dynasty’s vice-presidentof public affairs, said the company is pursuing two priorities:identifying new funding partners and finalizing documentsneeded for an environmental review. He noted that both Angloand Rio Tinto’s departures were influenced largely by the 10-year lag time between investment and Pebble production.Northern Dynasty’s share price dropped from over $21 in early2011 to under 90 cents at the end of May. – C.P.

Cline compensated for B.C. coal propertiesToronto-based Cline Mining reached a settlement agree-

ment with the government of British Columbia in April toabandon coal licences and applications in the province inreturn for $9.8 million in cash. The settlement resolves a civilclaim, filed two years ago by Cline against the provincial gov-ernment, over three affected mining leases in southeasternB.C.

In a surprise announcement in 2010, the provincial gov-ernment declared a moratorium on mining in the FlatheadValley of B.C., just north of the Montana border. Followingthat decision, Cline, which had been granted three miningleases in the area prior to the ban, filed a claim for compen-sation of the property valued at $500 million. After attempts

to negotiate a settlement stalled, Clinefiled a civil claim with the SupremeCourt of British Columbia in 2012.The company alleged that the provin-cial government had expropriated theircoal properties in the area.

“The B.C. government recognizesthe value of mineral exploration andmining but there are instances wherethis must be balanced with the need toprotect environmentally sensitiveareas, like the Flathead,” said miningministry spokesperson Matt Gordon.“Including the recent Cline mining set-tlement of $9.8 million, eight of 10tenure holders’ claims have now beensettled and their tenures relinquishedfor a total cost of $21.56 million.”

In December 2010, Cline Mininghad a market capitalization of around$500 million. Since then, however, ithas lost nearly all of its value, and thecompany recently extended a forbear-ance agreement with senior lenders toJune 30, 2014. – T.D.

June/July 2014 | 21

industry at a glance

Source: Nuna Logistics and Environment Canada

Digging deep to find the solutions that matter.

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For over 45 years, CONSPEC Controls has been designing, developing andmanufacturing ventilation management, gas detection, process control equipment and systems. And we continue to do so with innovations that notonly perform, they outperform in some of the harshest conditions on Earth -mining environments. Our ultimate goal: the protection of workers while operating environment and ventilation controls efficiently to ensure maximum safety, productivity and favourable cost containment.

By the numbers: N.W.T. ice roadThough it was a common gripe across most of the country this winter, you

likely did not hear any miners in the Northwest Territories complaining abouthow cold it was. That is because those consistently frigid temperatures allowedtheir vital winter ice road, which connects northern mines to the southern high-way system in Yellowknife, to open – and stay open – supplying them with muchof the fuel, commodities and equipment needed to sustain year-round operations.The 365 kilometre road opened on January 30 and closed March 30, according toTim Tattrie, project manager of ice roads for Nuna Logistics. - H.M.

Thickness of ice in inchesrequired to transportlargest loads

42

0

7,482245,116

+100,000-42.1

injuries

The coldest day inYellowknife duringthe ice road season(without windchill)in degrees Celsius

Number of loadstransported thisseason

Total combinedweight of those loadsin metric tonnes

Weight of the largest load – a loader, transported on a 13-axletrailer – in kilogrammes

26 Days during the iceroad season wherethe temperaturedipped below -30 Cin Yellowknife


In April, Montreal-based StornowayDiamonds put together $944 million infinancing, clearing the way to build itsRenard diamond mine. As part of thedeal, the company secured $220 millionfrom a relatively new subsidiary of theQuebec government, RessourcesQuébec, and another $105 million fromthe Caisse de dépôt et de placement duQuébec, for a total of $325 million ingovernment funding – a little more thanone third of the total construction cost.“The successful completion of thesetransactions will remove the lastremaining financing risk for the projectand allow principal project constructionto commence,” said Stornoway CEOMatt Manson, when the financing wasannounced.

Ressources Québec (RQ) was bornjust two years earlier, as a subsidiary ofInvestissement Québec (IQ). JeanCharest’s Liberal government set aside$1.2 billion to invest in oil and gas andmining projects through the new body.To try to maximize Quebec’s benefitsfrom the extractive sector, RQ wouldgather up the government’s $236 mil-lion in existing holdings and invest $1billion more in future projects. Despitetwo provincial elections and a fairamount of political debate over miningregulations, RQ has become a keyplayer in the financing of new projectsin Quebec.

“RQ was the cornerstone of ourfundraising,” said Benoit Gascon, presi-dent and CEO of Mason Graphite,which completed two funding agree-ments for a total of $15.6 million onApril 28 to advance its Lac Guéretgraphite project. “They said: ‘We’rehere. Go get the rest, but we’re here.’”RQ’s $3-million investment in the proj-ect convinced other brokers of its solid-ity, he explained. “RQ was clearly thebig boost that enabled us to close thecampaign on time, and with much moremoney than we had expected.” MasonGraphite plans to complete its feasibility

Quebec’s key assetRessources Québec’s $1 billion fund helping local projects advance

By Antoine Dion-Ortega

study in early 2015. Currently, its proj-ect has estimated Measured and Indi-cated Resources of more than 50 milliontonnes with an average graphite gradeof 15.6 per cent.

When RQ was created, the govern-ment’s idea was to cover the entiremining cycle, not only the explorationphase, which fell under Soquem’sdomain as a government organizationthat helps fund local exploration com-panies and research. “RQ was the sub-sidiary that would take on the wholedevelopment of mining projects, fromexploration to production – somethingthat Soquem did not do,” said LucSéguin, RQ’s vice-president for busi-ness development. “We currently have10 to 12 partnerships in our portfolio,but we have an equal amount in ourpipeline.”

RQ selects the projects it will supportbased on five main criteria. First, theproject must make an “easily measura-ble” contribution to the province’s eco-nomic development. “We don’t makeinvestments only to get a return,”explained Séguin. That said, the projectmust also be profitable. “If there is

enough probability that the project willsee light, we jump on board.”

Projects must have an experiencedmanagement team. “We are patientinvestors; we don’t interfere in the com-pany’s operations. We thus need to trustthe managers because they will make thedifference after a while,” said Séguin. Theorganization also seeks to take positionson emerging markets, rather than declin-ing ones. “We target the new minerals:rare earths, lithium, nickel in the stain-less steel production chain, vanadium,”he said. “We look at how these marketsevolve to decide whether we step in.”

Finally, the project must have sociallicence. Here, the lessons of the MineArnaud apatite project, a joint venturebetween Yara International and IQ,loom large. The project, in the Sept-Îlesregion, has been the target of protestsrecently. “We never anticipated thatthere would be so much opposition tothe project,” Séguin said. “We underes-timated the public’s intervention.”

RQ’s most common support consistsof taking minority equity participationin companies, often with a debt portionconditional to the completion of the

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Ressources Quebec, a subsidiary of the provincial government’s investment agency, Investissement Québec, hasbeen active since its inception two years ago, funding local resource projects, like Stornoway’s Renard diamondproject, seen above.

Courtesy of Stornoway Diamonds

June/July 2014 | 23

financing package. RQ will often seek tonegotiate a royalty or a streaming deal.

Its portfolio is currently worth about$300 million, with the Renard projectclearly acting as its flagship. “Stornoway’sproject is the most likely to see light inthe short term, since we are about tocomplete the fundraising, which meansthat construction could start this sum-mer,” said Séguin. On May 23,Stornoway announced it had raised morethan $132 million in a public offering ofsubscription receipts, which was a pre-condition of the RQ investment.

In a time where markets aredepressed, having RQ on board is price-less for junior mining companies. “For alot of companies, one of the most diffi-cult stages is the scoping study through

your feasibility study,” said Mark Selby,interim CEO of Royal Nickel Corp(RNC). “A lot of investors want to bethere for the exploration potential, butwhen you get the scoping study is whenthe heavy lifting starts.”

RQ invested $12 million in RNC’sDumont project in August 2012, inexchange for a 0.8 per cent royalty on thenet smelter return – an agreement thatSelby qualified as an “invaluable help.”

“When government agencies areinvesting alongside, it sends a strong signalof support to potential partners that theprovince wants the project to go forward,”he said. “It makes it a much easier sale inAsia or Europe.” RNC completed its feasi-bility study in June 2013. Selby said he ishoping to find a minority partner for a 30

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to 45 per cent interest in the Dumont proj-ect by the fall, which would allow it to startconstruction early next year. “It is a $1.2-billion capital expense, so we are talking toRQ to see if they are interested in advanc-ing the project through production.

“Only maybe in Finland would yousee anywhere close to this level of sup-port from government to the miningindustry,” said Selby.

According to Gascon of MasonGraphite, Quebec has a development-oriented mentality which is not opposedto government interventions when it istime to finance mining projects: “It is notjust subsidies, it is about holding inter-ests in companies to attract foreigninvestors and support the local ones. Therest of Canada doesn’t have that.” CIM


Metallurgical coal prices have fallento their lowest point since 2009, andnowhere in Canada has the fallout beenmore severe than in British Columbia,where nearly 90 per cent of all steel-making coal in the country comes from.

Hard coking coal lost more than halfof its value between the second quarterof 2011 and early 2014, falling fromUS$313 per tonne to roughly US$120per tonne in May, prompting B.C. min-ers to slash jobs and scale back plans fornew expansions. The downturn couldalso derail B.C. Premier Christy Clark’starget, set back in 2012, of realizingeight new mines and nine expansionsby 2015.

The biggest blow so far came onApril 15, when Alabama-based WalterEnergy announced the suspension ofoperations at the Wolverine mine in theprovince’s northeast, leaving 415 full-time workers in limbo. The companywill cut another 280 jobs this July withthe idling of the Brazion mine opera-tions. “Particularly at Wolverine, thecomplex geologic conditions and dis-tances involved in moving coal to theport influences our costs of productionand cost of sales,” said Tom Hoffman,Walter Energy’s spokesman, of the deci-sion to halt operations.

Meanwhile Teck Resources,Canada’s biggest coal producer withfive metallurgical coal mines in B.C.and western Alberta, deferred its newlypermitted Quintette mine expansionnear Tumbler Ridge last year. In a con-versation with CIM Magazine in May,Teck spokesman Chris Stannell wouldnot confirm the fate of two otherrecently permitted metallurgical coalexpansions in B.C., noting only that theeconomics of expansion remain bleak.“We estimate that as much as 35 to 40million tonnes of global seaborne-traded steelmaking coal is currentlybeing produced at a negative margin atcurrent prices, which is not sustain-able,” he said. For comparison’s sake,

Under pressureMetallurgical coal operators navigating tough times in B.C.

By Christopher Pollon

Teck produced 26.9 million tonnes ofmetallurgical coal in 2013.

A continued slowdown in coal pro-duction does not bode well for theprovince: the mineral represents over50 per cent of its total mineral pro-duction revenues and is B.C.’s singlelargest export commodity. Most of it isexported to South Korea, Japan, andChina, where it is used to manufac-ture steel.

B.C.’s rich deposits of metallurgicalcoal are concentrated to the easternextremities of the province, much of itcontrolled by Teck Resources, whichbecame the second biggest globalexporter of seaborne metallurgicalcoal after it purchased Fording Cana-dian Coal Trust for about US$14 bil-lion in 2008.

One bright spot is Anglo Ameri-can’s ongoing expansion of its Trendmine near Tumbler Ridge. LastAugust, as prices were already drop-ping, Anglo American’s CEO MarkCutifani made a point of visitingTrend-Roman for an earth-turning

ceremony, as a symbolic show of con-fidence not only for the project but inthe future of B.C. metallurgical coal.At the time, the company said theexpansion was made economic by thelow production costs at the newRoman site, located next to the Trendmine with an existing rail link to tide-water.

In March, the company receivedfinal permitting allowing roads and abridge to be built to access the Romandeposit. “Our project is moving aheaddespite the present market conditions,”said Federico Velásquez, Anglo Ameri-can’s director of corporate and externalaffairs Canada, in May. “This is goodnews in terms of metallurgical coal forBritish Columbia.”

The proposed Murray River under-ground coal project near Tumbler Ridgealso appears to be moving forward. Theproject gained notoriety across Canadain 2012 when its owner, HD Mining,planned to hire temporary foreignworkers from China to work on the site.The company is proceeding under a

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Metallurgical coal prices have plummeted since mid-2011 and B.C. producers are feeling the effects, leading tolayoffs and project delays. Anglo American is bucking this trend, though, by forging ahead with its Trend-Romanexpansion, shown above.

Courtesy of Anglo American

June/July 2014 | 25

permit that will allow for the bulk sam-pling of 100,000 tonnes of coal as theprelude to a potential mine, as the proj-ect continues to advance through theB.C. and federal environmental assess-ment processes.

The current low prices partiallyreflect global oversupply brought on bya glut of coking coal from Australia, saidGeordie Mark, a researcher at Vancou-ver’s Haywood Securities. But his firm isforecasting a rebound in metallurgicalcoal prices leading to an anticipated2016 price of $175 per tonne. This opti-mism is based on two interrelated facts:a fixed amount of metallurgical coalexists in the world, and it is indispensi-ble in making steel. And while concernspersist about a slowdown in the rate of

Chinese growth, Mark said the impor-tant thing is that continued stronggrowth is still occurring year-on-year.

For the interim, the situationremains dire for companies hoping toraise money and advance early-stageprojects like Compliance Energy’s Ravencoal project on Vancouver Island.

“Mining companies across the world,particularly those in the exploration anddevelopment phase, are finding it toughright now to attract funding from theequity markets,” said Mark. “But thesector will pull through; we’ve beenthrough this cycle many times.” CIM

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Courtesy of Anglo American

Anglo American CEO Mark Cutifani, left, and B.C.mines minister Bill Bennett at the Trend-Roman earth-turning ceremony on August 15, 2013.


On May 7, a Suncor Energy instru-ment technician, Lorna Weafer, wasmauled and killed by a black bearwhile working at the Suncor base plantnorth of Fort McMurray, Alberta.

Although bear attacks are uncom-mon to begin with, what makes thisincident especially perplexing is theapparent determination shown by theanimal during the attack. The site inquestion is a large industrial facility,which bears typically avoid. As manyas six of Weafer’s co-workers used fireextinguishers, air horns and even awater cannon to try to scare the ani-mal away, to no avail. The adult malebear would back off momentarily butthen return. The mauling lastedroughly an hour, Mike Ewald, anAlberta Fish and Wildlife investigator,told CBC News.

Predatory attacks like this areextremely unusual but do account formost black bear fatalities. The lastblack bear fatality recorded in Albertaoccurred in 1991 and was the result ofa predatory attack. Fewer than twofatal black bear encounters happen peryear in all of North America.

At Suncor, bear safety awarenessmaterials, advisories, and informationsessions are made available to workers,according to spokesperson Sneh Seetal.During times of high bear activity,increased emphasis is placed on bearsafety. This includes placing postersaround work sites and facilitating dis-cussions during safety meetings.Employees working in the bush carrybear spray and those in the base campcarry air horns to scare aggressivewildlife away.

Suncor remains tight-lipped aboutany potential changes to its wildlifesafety training and procedures whiletheir investigation is ongoing, but See-tal said additional bear safetyreminders have been provided toemployees, and provincial Fish andWildlife officers have increased bear

Wildlife safety in the spotlightTragic event at Suncor plant raises questions about how to protect workers

By Ian Ewing

surveillance around the company’s FortMcMurray site.

Will Gibson, a spokesperson forSyncrude, which has a large oil sandsoperation north of Fort McMurray, saidthe community is really shook up overthe incident. “Fort McMurray is a city,but in some ways, it’s very much asmall town,” he said. “I’ve lived here 10years and I’ve never heard of some-thing like this and I’ve never heard of ablack bear doing something like this.”

Since the incident, Gibson said Syn-crude has issued “dos and don’ts”reminders about bear safety, addingwildlife protection is part of itsemployee orientation training. But theevent has not caused Syncrude toreview its wildlife training and protec-tion policies, as it is waiting until theinvestigation is completed “to see ifthere’s anything that we can learn fromit,” he said. At that point, the companywill decide whether to reassess orchange its policies.

Many jurisdictions have put in placemeasures to try to ensure safety forthose working in the wilderness. “Wehave some general outlines accordingto the Occupational Health and Safety(OHS) legislation in Alberta,” saidBrookes Merritt, a spokesperson withAlberta’s OHS department, noting thata lot of the specific responsibilitiesabout training are left up to employers.Companies are required to completehazard assessment plans for eachpotential workplace risk, for instance.If a company was found to have inade-quate plans, Merritt said the depart-ment could demand that a plan beupdated, enforce a stop work order orlevel more punitive measures.

Like in Alberta, companies inYukon must also develop a wildlifemanagement plan. “That plan has toidentify the risks associated with thesurrounding environment and mitigatethose risks,” said Richard Mostyn, apublic affairs liaison at the YukonWorkers’ Compensation Health andSafety Board. “Companies must outfittheir at-risk workers with appropriateprotective gear. That gear mightinclude bear spray or any other deter-rents.”

Compliance is hard to track, how-ever. Yukon OHS officers perform ran-dom inspections to determine if therisk assessments and mitigation meas-ures taken by companies are adequate,but they are not responsible for assess-

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BLACK BEAR ATTACK FACTS:

At least 63 reported black bear deaths in Canada and the United States

between 1900 and 2009

***

49 of those incidents occurred in Canada and Alaska

***

91 per cent of fatal attacks occurred when the victim was alone or with just one other person

***

92 per cent of fatal attacks involved a predatory male bear

Source: “Fatal attacks by American black bear on people: 1900–2009”

in The Journal of Wildlife Management

Courtesy of U. S. Fish and Wildlife Service - Northeast Region

June/July 2014 | 27

ing risk. That is up to employers, supervisors and workers,said Mostyn. The territory’s government is in the earlystages of developing a database to track the number andseverity of bear encounters, among other things. Eventually,that would provide them with more data-driven conclu-sions about wildlife encounters and how to prevent or mit-igate them. The Yukon government publishes a widely usedbrochure, entitled “Guidelines for Industrial Activity in BearCountry,” which represents a consolidated set of recom-mendations to help companies navigate the planningrequirements to reduce bear attractants.

Good camp design and maintenance is essential, andvigilance will ensure that bears never become habituated tohumans or conditioned to associate humans with foodsources. Ensuring that bears cannot access food, garbage,and other attractants like petroleum products, and also set-ting boundaries for wildlife around camps are highly effec-tive measures. Incinerating food waste after every meal –not burying it or burning it in an open pit or drum – elim-inates many attractive odours.

Total prevention is very difficult, though, since human-wildlife conflicts are a product of numerous variables,explained Ramona Maraj, a carnivore biologist with theYukon government. The availability of natural foodresources and the location of the camp are big factors. Sotoo is the personality of individual animals – bears, like anyanimal, can be unpredictable. Indeed, for all the wildlifesafety procedures in place, some experts doubt whether anyamount of training could have prevented a determinedattack like the one at Suncor. CIM

Lisa Colnett joins Detour Gold board of directors

Ms. Colnett is a human resources executive with over 20years of experience in a variety of industries ranging frommining to information technology. She began her career atIBM Canada and was a founding executive of Celestica Inc.Since 1991, she has held senior roles in human resources,information technology and strategy including senior vice-president and chief information officer of Celestica Inc.,senior vice-president, human resources, also of CelesticaInc. and senior vice-president, human resources and cor-porate services, of Kinross Gold Corporation. She is cur-rently an independent director of TSX-listed Parkland FuelCorporation.

MOVING ON UP


Wait until you’re full – part-time processing can equal

big energy savingsBY MICHELLE LEVESQUE

E N E R G Y

cycle. For example, a facility operating at 50 per cent of designcapacity could adopt a two-week on/two-week off schedule; amill running at 75 per cent of design capacity could have aone-week shutdown period for every three weeks of operation.

One mill in Ontario has already started to realize the effi-ciencies that can be gained by modifying its schedule and opti-mizing milling operations. North American Palladium hasbeen operating its Lac-des-Iles mill intermittently since 2010.Still, in 2012, when the facility operated on a two-weekon/two-week off schedule, it ran at 74 per cent capacity,demonstrating that there is room for improvement and itcould benefit from additional savings.

After completing our follow-up survey, we developed part-load models for the three base metal facilities we looked at byusing the part-load model derived from the original audit. Wealso adopted cost models to reflect economies of scale. Inter-mittent operation of the three base metal facilities in 2012would potentially have reduced electricity consumption bybetween 16 per cent and 36 per cent.

Understanding billing structures is also important to maxi-mize financial savings. In Ontario, facilities with an averagedemand greater than five megawatts are considered “Class A”customers and their demand charges can be significant. Byshutting down mills during peak demand hours in Ontario,thereby decreasing energy consumption when power is mostexpensive, miners can reduce costs even further. Shuttingdown a mill can potentially reduce its total electricity load by90 per cent, with only equipment like lights, fans and agitatorsremaining in operation. In 2012, every megawatt saved by a“Class A” facility during the five peak demand hours corre-sponded to savings of roughly $275,000 per year. For a millwith an average demand of five megawatts, this translates tomore than $1 million in annual savings; the savings would beproportionally greater for larger operations.

It is possible to significantly reduce energy expenditures atmilling facilities, especially those with low utilization, consid-ering the current billing structure in Ontario. Energy conser-vation measures can provide savings, but it is equallyimportant that whenever energy is used at a facility, it is doneas efficiently as possible. Confronting the elephant in the roommay be intimidating, but the rewards are worthwhile and sus-tainable in terms of both efficiency and overall savings. CIM

Energy costs are increasingly a drain on an operatingmine’s budget. However, miners can make low-costchanges like running mills at full capacity through careful

scheduling to save millions.In 2008, a consultant conducted an energy use study,

which began with an energy audit at a base metal milling facil-ity that assessed electricity use to identify potential savings.After gathering and analyzing a year’s worth of hourly electric-ity data for each of the plant’s 292 pieces of electrical equip-ment, 10 energy conservation measures were indentified thatcould reduce this facility’s energy use by about five per cent. In2012, MIRARCO (Mining Innovation Rehabilitation andApplied Research Corporation) conducted a subsequent analy-sis to determine the influence of plant use relative to designcapacity on unit electricity consumption (kilowatt perhour/tonne of ore milled). An electricity part-load model forthe plant was derived to illustrate how much electricity pertonne of ore processed was consumed at different through-puts. Not surprisingly, the most efficient use of electricityoccurred when the plant operated at design capacity. If theplant studied had been operated at 100 per cent of designcapacity instead of 74 per cent, the electricity savings wouldhave amounted to 14 per cent. In energy management terms,this was the “elephant in the room.”

A mill can operate below design capacity for many reasonssuch as unplanned maintenance, changes in ore characteris-tics, fluctuating market conditions or a shortage of ore supply.But if the reason is due to reduced ore production, a mill canimplement an intermittent schedule to ensure the facility oper-ates at design capacity. Management must consider the costs ofore storage, additional material handling, and recovery lossesand labour, as well as operational issues in the mill and down-stream processes when making such a decision. But if the sav-ings outweigh the costs, this presents an opportunity formilling facilities to improve their bottom line.

Following the initial audit, MIRARCO surveyed 13 millsoperating in Ontario in 2012 to examine how these facilities wererun. The three base metal mills that we looked at were operatingbetween 47 per cent and 74 per cent of design capacity, whereasthe 10 gold milling facilities were run between 59 per cent and120 per cent of design capacity. It should be noted that nine outof these 10 gold mills were operating above 75 per cent.

It became clear that these companies could save electricityand, ultimately, money if they modified their operating sched-ules. This would entail shutting down the facility periodicallywhile stockpiling ore, then processing the ore, and repeating the

t y t

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Michelle Levesque is a researcher at MIRARCO. She is pursuing a PhD innatural resources engineering from Laurentian University and the focus of herresearch concerns energy management for the mining sector.

Leaders in safety innovation.

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Dumas brings a culture of safety innovation to some of the world’s most challenging underground

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including three for safety innovation. After all, we’ve been to the depths of the earth.

We’ll go to the ends of it to ensure success for your project.

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SE to bring rigour to solutions, and to ensure that the requiredsystem capability is achieved.

The mining sector could use SE tools to understand how can-didate technologies can enable profitable extraction of decliningore grades without leading to unforeseen management or main-tenance problems, or contributing to future liabilities. Require-ments for skills, training, revised procedures and operatinginterfaces, maintenance capacity, or other contingencies wouldbe identified upfront as part of the innovation cycle. The risk bur-den, so often a barrier to innovation, would be understood interms of the whole-system capability and rationally allocatedamong role players. This would facilitate long-term alliances that

reduce the capital investmentrisks of mining development.

The ability to manage tech-nology risk in a system con-text is what makes SE ideallysuited to the adoption of newtechnologies. This holds truenot only when the system iscreated, but throughout its lifeas new requirements or obso-lescence demand the insertionof new technologies. Systemsintegrators practising SE have

become good at technology selection, and end users havelearned to see the benefits of outsourcing these kinds of deci-sions even if it puts them at a technical knowledge disadvan-tage. With this approach, consultants have a critical role to playas trusted partners who can speak with experience about risksand opportunities. SE adoption by the mining industry wouldalso impact equipment suppliers as improved operations andprocesses interact with developments in automation, capabilityand operability. Deliberate management of interfaces and inter-actions at all stages of the life cycle would further strengthenequipment supply chains.

The challenge of the innovation supercycle is clear: usingthe right technologies to increase mining productivity in thenew era of undifferentiated geology will lead to previouslyunseen levels of complexity. Miners should consider whetherSE can help prepare them for this seismic change. Are theirsupply chain relationships future-proof? Who will execute thesystems integrator role? Are investment models ready forincreased upfront engineering effort? New alliances that out-source technology risk management and integration functionsmay be part of the answer. CIM

I nnovation impacts industries in waves of activity that last foryears or even decades, bringing major change to some sectors,and creating entirely new supply chains while destroying old

ones. Over the past century or two, these waves have becomesteeper, bringing change with increasing complexity and speed.Soon the mining industry will be in the midst of a major changeas the realities of low-grade ores create a need for new, advancedtechnologies. This impending coincidence of growing needs andan explosion of suitable but diverse solutions will create an“innovation supercycle.” The mining industry will be challengedto manage new roles and interactions during the design, con-struction, operation, retirement and remediation phases.

In the past miners were, ina sense, competing only withfluctuating commodity valueswhere the source of theircompetitive advantage wasthe quality of their deposits.In the new era of undifferenti-ated deposits and growinglabour costs, miners willincreasingly find efficientoperations to be aninescapable imperative. Pro-ductivity will become muchmore important, and the source of competitive advantage willshift from geology to technology. Automation alone could turnout to be a way station, beyond which system integration islikely to be the source of further progress.

Systems engineering (SE) formalizes the integration of inter-disciplinary components of complex systems to meet therequirements of operators as well as many other affected partiesthrough entire system life cycles. It has become a profoundlyimportant enabler for dealing with rapidly changing technol-ogy. SE demands significant upfront effort in analyzing thecapability requirements of the whole system across its entire lifecycle. Extensive use is made of modelling and simulation todetermine how the richly detailed requirement set can best bemet. Crucially, this activity continues throughout the system’slife – and so it must – because requirements will inevitablychange with time. As the system comes into existence, integra-tion is constantly revisited from a whole-system perspective;this is quite different from managing component interfaces in afront-end engineering design. It ensures that the whole systemmeets the whole capability requirement for its whole life. Theaerospace, defence and, more recently, the information andcommunication technology, and nuclear power sectors havesuccessfully embraced complexity using formal approaches like

Systems engineering for the innovation supercycle

BY ANDY REYNOLDS


Andy Reynolds is general manager, energy, mining and environment with theNational Research Council of Canada.

I N N O V A T I O N

In the past miners were, in a sense,competing only with fluctuating commodityvalues where the source of their competitiveadvantage was the quality of their deposits.In the new era of undifferentiated deposits

and growing labour costs, miners willincreasingly find efficient operations to be an

inescapable imperative.

June/July 2014 | 31

prevents companies from expanding their market share interna-tionally, and creates a perception of company unreliability in theirrelations with customers. Rail service caused a range of challengesfor miners through the winter period, resulting in some instancesin the downscaling of production at operations. It is a perennialissue across the network and needs to be addressed as such.

In order to tackle rail service issues effectively, it is essentialto properly identify the nature and extent of the problem. Ifsector- and company-specific data were available to the govern-ment and shippers, they would be able to more easily deter-

mine the cause of servicedisruptions. Various perform-ance measures could provideevidence of capacity displace-ment from one shipper toanother or, conversely, provethat railways are actingresponsibly and that servicedisruptions are, as the rail-ways maintain, beyond theirdirect control as but one partof the larger transportation

ecosystem. Moreover, transparency would likely lead to less ofan adversarial relationship between railways and shippers, asboth parties, being aware of the strength of each other’s posi-tion, would be motivated to negotiate in order to avoid a legalproceeding and arrive at mutually beneficial results.

While appearing before the House of Commons Agricultureand Agri-Foods Committee on Bill C-30, MAC advocated forpolicies informed by accurate data, recommending the govern-ment enact a railway requirement to provide both regularmonthly public rail performance data on a sector basis, andconfidential company-specific performance data upon request.

As the government begins the 2015 Statutory Review ofthe Canada Transportation Act, it would be wise to ensurethose conducting the review have the information required tomake informed public policy decisions. Data transparencywould permit the government a clearer understanding of howthe logistics supply chain is performing, where challengesexist, and what policies are needed to properly address themto the benefit of shippers and theCanadian economy as a whole. CIM

T his spring, the federal government instituted mandatorygrain-shipping quotas for railways in an attempt to rem-edy delays in agriculture shipments incurred this winter.

But similar rail service issues have also plagued other industrieslike mining. The government’s interventionist and sector-spe-cific approach to addressing Canada’s rail transportation chal-lenges runs counter to its trade and economic developmentpriorities, and will not address the problems. Reliable and effec-tive rail service is no less essential for mining and other prod-ucts as it is for the movement of grain. Transportation policy,informed by railway data,should reflect this.

A particularly harsh win-ter, causing trains to travelslower with fewer cars in tow,converged with a bumpercrop to create a significantgrain backlog on the Prairies.The government’s responsewas to mandate grain sector-specific volume commitmentsfor Canada’s Class I railways.

First, through an Order in Council, and then through Bill C-30 Fair Rail for Grain Farmers, the federal government enactedrequirements for Canada’s Class I railways – CN and CP – tocarry no less than one million tonnes of grain combined eachweek. Failing that, they would be subject to monetary penal-ties. The current order in council keeps the one-million-tonneminimum until August 3, 2014, after which a new minimumlevel could be instituted by the government. Bill C-30 sunsetsin August 2016, meaning these exclusive volume commitmentswould be in force for at least the next two years.

The government acted under the auspice that it needed toprotect Canada’s trade reputation as a world-class grain sup-plier, when in reality the provisions enacted may dampen ourreputation with regard to the rest of the economy. Railwayshave a limited number of cars, crew and equipment at their dis-posal to service all sectors. Requiring minimum volume com-mitments for grain effectively allocates rail capacity to the grainsector at the expense of all other shipping sectors.

As the largest customer group of Canada’s railways, consis-tently accounting for more than half of the total rail freight rev-enue generated in Canada and nearly half of the total volumecarried by Canadian railways annually, this is a big issue for min-ing. Though the issues surrounding agriculture shipments thiswinter were severe, the problems are systemic in nature, wide-spread throughout the shipper community and longstanding.Poor rail service creates unpredictable operating environments,

Feds can’t play favourites with rail rules

BY BRENDAN MARSHALL

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

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

Transparency would likely lead to less of anadversarial relationship between railwaysand shippers, as both parties, being awareof the strength of each other’s position,would be motivated to negotiate in order toavoid a legal proceeding and arrive atmutually beneficial results.


Beating backan EbolaoutbreakPrevention and planningcritical in defence againstinfectious diseases By Correy Baldwin

solid plan can minimize this risk and allow a company notonly to respond quickly and effectively to an outbreak butplay a proactive role in controlling the spread of the virusas well.

Getting to this point takes a lot of work and often requiresassistance from medical emergency management experts.Tullow Oil sought the services of International SOS (ISOS),the world’s largest integrated medical and security assistancecompany. “We have medical and security responses for anylevel of issue,” explains Doug Quarry, medical director atISOS. “We also provide medical staff and often the facilityitself to assist companies in their ventures and adventuresaround the world, everything from having medics on oil rigsto running full-sized, 40-bed hospitals.” For Tullow, ISOShelped make travel planning decisions and provided advice,but it did not arrange field clinics.

“Not every operation will require the same facilities,” saysGill. “Some locations may have well-equipped clinics whileother locations may only have first aiders. It all depends onvarious factors, such as the number of people on site, thechances of injuries or illnesses, the distance to reliable healthfacilities and the availability of medical emergency support inthe area.”

The remoteness, duration and extent of an operation allhelp determine its overall health risks. Other factors includethe local environment, wildlife, and endemic diseases, andany activities that could increase the risk of exposure to dis-eases and infected wildlife. These include land development,hunting of wild game, poor waste management and foodstorage, as well as the lack of sanitation and potable water inthe local communities.

Ebola is a nasty virus – some victims suffer bothinternal and external bleeding – and with a deathrate approaching 90 per cent, it is difficult to imag-ine a worse scenario for a remote mining camp than

a possible outbreak. But that threat is real for companiesoperating in Africa, and particularly in West Africa. In late-March, the virus broke out in southern Guinea, quicklyspread to the north, and by May had crossed into Liberiaand Sierra Leone, where several people who fell victim tothe disease in Guinea were buried. More than 200 peoplehave died.

Dr. Sajjad Ahmed Gill followed the crisis closely. As grouphealth advisor for Tullow Oil, a British oil and gas explo-ration and production company that operates throughoutWest Africa, it is his job to protect the company’s people andoperations from such outbreaks. In this instance, it meantconstantly monitoring the surrounding countries, and com-municating with staff and a network of industry and healthorganizations. “There were lots of rumours and it was a bigchallenge to extract accurate information,” he recalls.

Plan for the worst“West Africa has a unique pool of diseases that are not

usually present in other parts of the world,” says Gill. “Anycompany working in such areas should be well aware aboutthe risk of such diseases around them and should have arobust emergency management system to manage disease outbreaks.”

A disease prevention strategy and a health emergencyresponse plan are the first lines of defence. An outbreakcan have a devastating effect on operations, says Gill, but a

International SOS has set up emergencyclinics similar to this one in Liberia

throughout West Africa.

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upfront- - - S A F E T Y

Know what you are up againstHealth risk assessment begins before any project develop-

ment and continues through construction, production andreclamation activities. “We will visit the site, and look at theendemic diseases and the quality of the medical services inthe area,” says Quarry. “Then we give the client a realistic setof suggestions as to what sort of medical services they mightneed around the site, and what sort of training or support thenational employees might need.”

The Ebola virus is particularly contagious and lethal;the current strain is the most severe, with a 70 to 90 percent death rate. There is no vaccine and no known cure.The virus is likely carried by bats, and humans are infectedafter hunting and eating an infected bat or another wildanimal that the bat has infected. It then spreads betweenhumans through contact with infected body fluids. An out-break can be difficult to identify, as the early symptomsresemble other less-dangerous fevers. It can also be diffi-cult to track, with a relatively lengthy incubation period ofup to 21 days.

The best defence is often a good offence, and publichealth measures and support for local health facilities aresome of the most effective areas on which to focus resources.“In most developing countries, the local health facilities arequite limited and the local health system needs external sup-port,” says Gill. Companies like ISOS can provide assistancethrough malaria-control and vaccination programs and pub-lic health education services, which are important for a viruslike Ebola, since people in remote communities often knowvery little about how it spreads.

Safety at odds with traditionSome West African customs pose a major challenge to

mitigating the spread of Ebola: according to traditionalfuneral rites, the dead body is washed prior to burial. SoISOS developed a series of educational materials for its clientcompanies, which distribute these to the general public anduse them to educate and train their own staff. “Education isa big part of the management of this disease,” says Quarry.“Training is so important.”

The risk to foreign workers is generally low, says Quarry:“Ebola is spread by direct contact with infected body fluids,and that is really more likely when you’ve got a sick familymember, when you’re living in the same house and caring forthem. The main risk is really to the local, national folk, andmuch less for expatriates and business travellers.”

Still, companies must be prepared to act if the diseaseposes a risk to their operations. “The response depends onthe level of risk,” explains Gill. “It ranges from restriction oftravel, to the evacuation of staff and closure of operations.The operational personnel may be reduced in number, theworkforce from certain areas may be monitored and opera-tions may be stopped for a short or long term.”

Tullow made important business decisions for staff safety.Operations were quickly modified to minimize the exposureof Tullow staff at all levels. At the same time Tullow

June/July 2014 | 33

contributed with other international health organizations topublic medical treatment.

Similar work is being done by ArcelorMittal, which oper-ates an iron ore mine in Liberia, just across the border fromthe most affected area in southern Guinea. ArcelorMittal hasworked with ISOS to set up an on-site clinic. “When the cri-sis started, we realized very early there was a big risk for thisclinic because it really is the best clinic in the area,” saysQuarry. “The medical services in that area are pretty poor, soit was quite likely that if there were cases, that they wouldcome to our clinic. But it’s not set up to be a public healthfacility, or a general hospital.”

ISOS brought in educational material, and ArcelorMittalrelied on them to train its national staff. An isolation unit wasset up at the mine clinic, and personal protective equipmentwas brought in for clinic staff and staff at the nearest localhospital – health care workers are some of the most at-risk ofexposure. Most importantly, says Quarry, they also broughtin a senior infectious diseases doctor from South Africa, whosupervised the modification of the clinic and the training ofits health staff. He travelled to other national hospitals tohelp establish isolation units and train staff on the use of per-sonal protective equipment and infectious disease spread,and worked with Guinea’s Department of Health to set up theEbola containment strategy. CIM


The strike thatsaved livesThis year marks the 40th anniversary of the Elliot Lake wildcat walkoutBy Alexandra Lopez-Pacheco

brought in kicking and screaming. Eventually, when it becameinevitable that there would be changes, toward the end, theycame to understand it had to be resolved.”

The birth of modern health and safety regulationsDespite the controversy, there is universal agreement that

then Premier William Davis’s decision to launch a royal com-mission to investigate health and safety in mines was one ofthe best things to have happened to the province’s mining sec-tor. Chaired by engineering professor James Ham, the HamCommission came back in 1975 with more than 100 recom-mendations. This report became the bedrock of the province’sOccupational Health and Safety Act (OHSA), which came intoforce in the fall of 1979 not just for mining but across allindustries.

Vic Pakalnis, now president and CEO of the Mining Inno-vation Rehabilitation and Applied Research Corporation, whoworked for 30 years in occupational health and safety for theOntario Ministry of Labour, describes Ham as the father ofoccupational health and safety in Canada. “Ham coined theconcept of an ‘Internal Responsibility System,’” says Pakalnis,“which is the foundation of the culture of safety we have in themining industry as well as all of its health and safety regulations.”

The OHSA, known as the “green book,” became a trend-setter, Kerr says. It is used by mining operations around theworld as a best-in-class guide for worker health and safety tothis day.

According to Pakalnis, in the mid-1970s, Ontario’s miningindustry had the highest injury rates of all industrial sectors inthe province. “Today, mining has one of the lowest rates ofinjuries,” he points out. But the act also improved productivity,with safety driving many of the technological innovations.“And it all started with a wildcat strike,” Pakalnis says. “It wasan illegal strike, but they did the right thing and then the gov-ernment and industry did the right thing too.”

Ironically, because the federal government deemed ura-nium, a resource for nuclear energy and weapons, under itsjurisdiction, Elliot Lake’s miners were not initially protected

Ontario government representatives 40 years ago presentedresearch linking radiation to lung cancer at a conference inParis, France. In the audience were several members of theUnited Steelworkers of America (USW), whose organizationhad been fighting the mining industry and the Ontario gov-ernment for improved health and safety at the Denison andRio Algom uranium mines in Elliot Lake, Ontario. In additionto a high incidence of injuries, hundreds of miners were ill ordying from silicosis and lung cancer, which the union believedwas caused by silica dust. The union representatives wereshocked to discover the government had found there wasanother cause behind the high rates of lung cancer – radiation– and had not bothered to inform miners or to take any actionto protect them. The USW members shared the news withtheir co-workers back in Elliot Lake, and this proved to be thelast straw. On April 18, 1974, about 1,000 miners from Deni-son went on a three-week wildcat strike.

“I think the conference, combined with the general dissat-isfaction with the occupational health and safety regulationsand laws in the province at that time, caused the strike,” saysFergus Kerr, now vice-president of operations at GlobalAtomic Fuels Corp., who joined Denison in 1977 and becameits general manager a decade later.

The strike drew the attention of the media, the public andOntario’s politicians. Mining health and safety suddenlybecame a hot-button issue.

The response from mining companies is remembered dif-ferently, depending on who you speak to. Some recall anindustry that embraced change while others are less positive.

“Just around that time, the uranium market improved dra-matically,” says Kerr. “So there was pressure from politicians atboth a federal and provincial level and pressure from theunions, and the industry realized if they were going to expandtheir operations, they better do it right. There was a combina-tion of events and circumstances that came together at thattime.”

Leo Gerard, USW’s current international president, movedto Elliot Lake shortly after joining the union in 1977, and hesees it slightly differently: “[The mining companies] were

The

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rdThe 1974 wildcat strike in Elliot Lake

instigated major changes in mine safety andwas a catalyst for change across all industries.


under the new act. “It was bureaucraticbaloney,” says Gerard. “We fought our waythrough it and ended up getting a resolutiontwo or three years later. By then, we’d negotiatedmost of the provisions of the OHSA into the col-lective agreements at Elliot Lake.”

The next challenge: reducing fatalitiesDespite the dramatic decrease in the num-

ber of non-fatal injuries, mining fatality rateshave not decreased to the same degree over thelast few years. While fatality rates are far lowerthan they were in 1974, over the last five yearsthere has been little movement in the fatalityrate, with an average of 5.6 worker deaths ayear between traumatic injury and occupa-tional illness-triggered deaths. “We’re scratch-ing our heads as to why this is,” says Kerr. “It’s the sameinternationally.”

The USW pushed for an inquiry back in 2011 when twomen were killed at one of Vale’s Sudbury nickel mines. In Feb-ruary 2013, the Ontario government launched a review ofmining safety headed by the Ministry of Labour’s first chiefprevention officer, George Gritziotis. “I’m not suggesting thatall incidences are not tragic and of concern,” says Gritziotis,“but for me, eliminating the fatalities is at the core of whatdrives me in this job.”

The review, which included 11 public consultation sessionsacross Ontario’s mining communities between March and Mayand considers feedback from the public and the mining indus-try, “will release deliverables and best practices as we goalong,” says Gritziotis. “There may be a regulation that needsto be refreshed.”

Gerard would like to see another inquiry and points to theimprovements that resulted from theHam Commission, the Stevenson Com-mission in 1986 on ground control andmine rescue, and the Burkett Commis-sion on mine and plant safety in 1982.“Each one of them drove forward somemeaningful suggestions and recommen-dations,” says Gerard. “A review processis a review of things that have alreadyoccurred and looking at what transpired.An inquiry gets in-depth into what thingswere done. If you look back at the history,it’s been some 30 years since the lastinquiry.”

A lot has changed since 1979While no one yet understands why

fatality rates have not budged, much haschanged since the health and safety actwas introduced. Kerr, who is employervice-chair of the advisory group to thegovernment’s current review, thinks one

of the big challenges today will be the consistency of trainingas the industry recruits young workers to replace retiringboomers.

“I remember when I was at Elliot Lake,” says Kerr. “Bothcompanies were going through a major expansion. Neithercould find miners or tradesmen. We decided if we can’t hirethe miners, we’ll make them. They set up what were state-of-the-art facilities at the time for miner and trades training. Wewere young, having families, developing our skills and knowl-edge together. I look very fondly on those days. I think thathad a huge impact on health and safety, taking a whole newworkforce and training them from scratch with best practices.”

Gerard also remembers those days. “We grew up together.We had our issues with the people who ran the smelters andmines, but our kids played hockey together,” he says, addingthe sale of many mines to foreign companies has changed thatdynamic. CIM

June/July 2014 | 35

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Dave Mellor was president of UnitedSteelworkers of America Local 5762

during the Elliot Lake strike.


Three years ago, a haul truck operator at a gold mine inNevada collapsed on the catwalk at the end of a 12-hour shift. The man worked for Gold Canyon Miningand Construction, a company that did contract work

in various mines around Nevada. Witnesses said he appearedto have a seizure. He had shown up that day, just like everyother, with a lunch that consisted of about four energy drinksand nothing else, according to John Moss, safety and compli-ance officer for the company at the time. Following the inci-dent, energy drinks were outlawed.

Without a medical diagnosis, it is impossible to say for surethat the energy drinks the worker consumed caused his col-lapse. But his is not a unique incident; energy drinks areincreasingly common on the worksite and many stories circu-late in the industry about miners experiencing adverse healtheffects from overconsumption. The health and safety sector hastaken note of these aggressively marketed caffeine, sugar, andadditive-laden beverages.

Roberta Spicer, superintendent of health and safety at J.S.Redpath Limited, is collecting data on the drinks’ adverseeffects to produce educational material for her company. Aspart of her project, she started several discussions on banningenergy drinks in mining on different LinkedIn message boards.Spicer says she was impressed with the response from miningprofessionals, and those from other industries, but the storieswere sometimes horrific. “That was a huge part of the discus-sion, people reporting, ‘Oh this guy had a seizure, this guy hadto be taken to the hospital, this guy’s heart exploded, this guyhas permanent heart damage,’” she says. “The amount of sto-ries was unbelievable.”

Cause for alarmIt is difficult to determine how big an issue energy drinks is

in mining because there are a lot of anecdotes but no hard factson accidents related to their consumption on mine sites.Adverse health effects are, however, well documented in soci-ety at large.

One reason for the rise in concern is increased consump-tion. In 2005, U.S. residents consumed an estimated 2.3 bil-lion energy drinks, according to an article in the Journal of theAmerican Medical Association. By 2010, that number was sixbillion and has continued to climb.

Anecdotally, at Redpath, Spicer says safety professionalshave also noticed an increase in consumption by workers andare concerned. Jim Mathiasen, general safety supervisor at ValeCanada’s Ontario nickel operations, has been vocal about thedetrimental effects of energy drinks and has also seen a rise inconsumption among workers at the sites he oversees. “I’m see-ing these cans and these little bottles everywhere,” he notes.

The increase in consumption appears to be correlated tothe number of energy drink-related hospital visits. The DrugAbuse Warning Network report for 2011 disclosed that visitsto emergency departments in the United States involvingenergy drinks doubled from 2007 to 2011, totalling more than20,000 in that year. Of that number, 58 per cent were con-nected only to energy drinks, meaning no other drugs acted ascontributing factors.

Known side effects of energy drinks range depending ontheir ingredients but include nausea, increased heart rate,altered heart rhythm, chest pains, dehydration, vomiting,

Energy drink consumption is on the rise andexcessive consumption has been linked to

seizures, abnormal heart rhythm, nausea andother harmful side effects.

Safety managersabuzz overenergy drinksMining companies wonder how todeal with excessive consumptionBy Tom DiNardo

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insomnia, and seizures, according to the American Associationof Poison Control Centers.

The root of the problemThe health risks associated with energy drinks stem in part

from the high levels of caffeine, but what sets them apart fromother caffeinated drinks like coffee or tea are the additives.Energy drinks contain large quantities of sugar – sometimesabove the maximum recommended daily intake of 32 gramsper 2,000 calories – that provide a temporary rush of energy.Excessive sugar consumption over a long period of time islinked to diabetes and obesity.

Guarana is another additive that contains the highest levelsof naturally occurring caffeine of any plant in the world. Nat-ural caffeine, like what is found in the seeds of guarana plants,is not always calculated into the amount listed in nutritionalfacts on energy drink cans, so consumers may be ingestingmore than they know. Health Canada recommends a maxi-mum daily intake of 400 milligrams (mg) of caffeine.

In practice, these additives, along with others such as tau-rine and ginseng, are mixed with caffeine. A 16-ounce can ofNOS contains 170 mg of caffeine, about the same as 16 ouncesof coffee (depending on the brand), and an eight-ounce cup ofblack tea contains about 55 mg. In 2012, Health Canadacapped the maximum allowable caffeine content from allsources at 180 mg per can and required the drink manufactur-ers to provide annual reports on consumption figures as wellas any health incidents. In the past, NOS had levels as high as260 mg per can.

On site, safety supervisors are focused on curbing recklessconsumption habits. An extenuating problem for miners isthat caffeine is a diuretic, increasing urine production andleading to a loss of fluids and sodium. This causes consumersto dehydrate at a faster rate than normal, a serious concern forworkers in high heat or physically demanding environmentssuch as underground mines. A recent newsletter issued by Valeon the potential dangers of energy drinks after a plannedmaintenance period warns workers, “Dehydration has beenshown to adversely affect decision-making and cognitive per-formance, which could be associated with an increased risk ofincidents and may contribute to a decline in productivity.”

Reducing consumptionOne way to deal with this concern is to ban energy drinks

outright from mine sites, as Gold Canyon did. After the seizureincident, the company that owned the mine also banned thedrinks from its underground operations. “They had guys whowere showing up with heart palpitations or going into seizuresbecause of not being adequately hydrated for what they weredoing underground,” Moss remembers.

This may be hard, however, as workers are unlikely torespond well to bans on a legal substance. “[Workers] are per-mitted to drink whatever they want in the rest of their livesand for them to come into the workplace and have us say ‘it’sbanned,’ it can be taken as a very negative thing, especiallywithout first providing the education,” says Spicer.

Another more subtle way to deal with the issue is to makeenergy drinks unavailable on site. This is easier at fly-in/fly-outsites, for example, where companies control what is sold incafeteria vending machines and in stores on site. By not stock-ing energy drinks, workers do not have access to them unlessthey bring them on site themselves. This is the tactic taken byGoldcorp in one of its remote sites in northern Quebec. Thecompany does not sell energy drinks in the cafeteria, butworkers would not be penalized for consuming energy drinksthey bring to work. Spicer says many other mining companiesare doing the same thing.

Some companies are educating employees of the potentialdangers of energy drinks. In its newsletter, Vale recommendsthat employees avoid drinks with high caffeine and sugar con-tent including energy drinks. “Energy drinks increase risk ofseveral health problems including heart attack and stroke,” itcautions. “This is a major concern with the number of youngworkers on site.” Sudbury-based Pioneer Construction Inc.also recently published a safety bulletin for employees on thedangers of energy drinks, listing the possible side effects andharmful ingredients. CIM

Dealing with energydrinksRoberta Spicer’s tips for safetyprofessionals• Teach about the dangers of energy drinks and advise

employees to only drink in moderation or avoid themall together (discuss in safety huddles/meetings,provide educational posters/pamphlets, et cetera).

• Ensure heat stress management programs and traininginclude hazards of drinking caffeine and energydrinks, which speed up dehydration.

• Recommend healthier alternatives (water, fruits andvegetables) to support energy needs.

• Advocate getting more sleep, exercising, et cetera.• Encourage management to remove energy drinks

from vending machines.• Create a corporate culture discouraging the use

of energy drinks.• Limit or eliminate use of energy drinks for work:

– that requires the use of PPE– in hot environments– that is physically demanding

• Provide fatigue management and awareness trainingand discuss the hazards of energy drinks in thattraining.

• Advise those with fatigue issues to talk to their doctors– there may be an underlying health problem.

June/July 2014 | 37

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Canada’s mining industry has a safety record that beatsmany other industrial sectors, yet Gord Winkelbelieves miners can do even better by continuouslyimproving and sharing their practices. Toward that

end, in 2010 he retired as a vice-president from SyncrudeCanada to lead the engineering safety and risk management(ESRM) program at the University of Alberta. This pioneeringprogram is the only one of its kind in Canada and has operatedsince 1988 to develop strategies to continuously reduce risksto people, the environment, facilities and production.

Winkel, a three-time CIM Distinguished Lecturer (2002,2008 and 2013), has been a tireless safety advocate, workingto advance practices in the surface mining industry throughknowledge sharing, technology, best practices and innovation.

CIM: What motivated you to make the leap from the miningindustry to academia?Winkel: During 30 years of operations management in miningand mineral processing, we received many opportunities tolearn and build up bench strength in safety and riskmanagement that will be helpful to the next generation ofengineers and business leaders. It’s fair to say that this journeyturned into an opportunity to give back to students the benefitof this learning.

CIM: What goals do you hope to achieve with the ESRM program?Winkel: The vision is that every engineering student will takesafety and risk management as part of their curriculum andtake it with them as a core competency into the future. We alsowant to open up these studies to all disciplines – other sciencesand business. Safety is a moral imperative and the mostimportant workplace value. A thousand people die nationallyevery year only because they went to work. That has tochange.

CIM: Canada’s mining industry has evolved into one of thesafest heavy industries, yet the public seems unaware of thisachievement. Why, and what can be done to change that?Winkel: Good news seldom makes the front page so peopletend to look at mines based on perceptions that are formedfrom media reported incidents. Everyone in the Canadianmining industry (418,000 people as of 2013) should be anambassador and help people understand the positive factsabout responsible development, cutting-edge technologyapplication to improve performance, award-wining reclam -ation programs, how mining contributes greatly to ourstandard of living, and of course achievement in improvedsafety performance. Facts are friendly and it’s everyone’s job toshare them.

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Raising the safety barAn interview with Syncrude veteran and safety guru Gord WinkelBy Vivian Danielson

Canada + 800 [email protected]

Remote sites, extreme weather and complex geology are some of the challenges in mining projects. Add to that, the social, environmental and regulatory processes faced by mining companies. Golder Associates’ integrated consulting, design, and construction solutions provide project stakeholders with the information to tackle challenges at every stage of their mining projects, not just for today but for the future. Engineering Earth’s Development, Preserving Earth’s Integrity.

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CIM: You have a great deal of experience in the oil sandsindustry. What are the most challenging issues there and howare they being met?Winkel: This industry constitutes mining, mineral processing,utilities, upgrading and more all under one roof, and eachsector has different risk exposures and challenges to bemanaged. Each part of the operation needs to be risk-assessed,right from the ground up, and you also have to risk-assess overthe life cycle of the project. I think the industry is doing a goodjob of managing this unparalleled diversity of risk, and in theface of rising societal expectations and some disappointingincidents, needs to continue this improvement journey.

CIM: The oil sands industry has been transformed by advancedtechnologies. Can you provide an example?Winkel: Syncrude pioneered hydrotransport technology thatmoved extractive processing into the mining cut. Crusherswere used in combination with new technologies to mix themined oil sands with hot water in-pit, and the resulting slurrywas piped to the processing plant. The utilization of efficientpipeline transport also vigorously mixed the oil sand slurry andliberated the bitumen from the sand and water. This in turnenabled another new technology called low temperatureextraction. This suite of new technologies significantly reducedthe energy footprint for mining and mineral processing.

We did our first commercial-scale hydrotransport pilotproject in October 1993 and incorporated it into our nextmine pit development in 1997. We made hydrotransport tech-nology available to the rest of the industry, where it hasbecome the baseline technology for all surface mining opera-tions in the oil sands. It’s been a game-changer.

As with any new technology, you must have a protocol inplace to assess risk at every development step, and take thetime and effort to safely integrate it into the overall operation.

CIM: Do you see technologies in development that will improvesafety in the future, perhaps examples that are alreadycommercialized but not used in mining? Winkel: The industry is always looking at other sectors, andconducts its own research and development, but always withrisk in mind even at the conceptual stage. When things are toorisky, it’s best to back off until better solutions are found. Theindustry also shares information worldwide through forumssuch as SMART [Surface Mining Association for Research andTechnology]. Automated mining equipment, vibrationreduction, collision avoidance and fatigue monitoring systemsare just some of the new safety supportive technologies underconsideration.

CIM: The oil sands attract thousands of employees from all overthe world. How do you design and implement health and safetyprograms for such a diverse workforce?Winkel: People from diverse cultures may have done thingsdifferently before, so you have the responsibility to supportthem with the latest and best training in practices to manageworkplace risks. People like to work in places with a strong

safety culture. But safety isn’t just about training or bestpractices. It has to be instilled as a core value and animperative ahead of any other objective. That requiresleadership from the top, and the involvement of all employeesto become leaders in safety at every organizational level.

CIM: The “human factor” is often cited as a cause of safetyincidents even when safety training programs are in place. Howimportant are drug and alcohol policies and other types ofinitiatives to reduce human error in the workplace?Winkel: We need to be careful how we view the human factorand humbly acknowledge that none of us is perfect; there willbe lapses in judgment and errors will be made. Good safetysystems are designed with this reality in mind. This works bestwith a team approach, where people are engaged, observingand looking out for each other.

CIM: Do you see a need for greater collaboration betweenindustry, educational institutions and government agencies toensure best practices in industrial health and safety?Winkel: I think they’re doing a good job now, and newopportunities for collaboration are opening up through theInternet and other networking technologies. There is also anopportunity to increasingly engage smaller companies andcontractors and extend this type of collaboration to them. CIM

June/July 2014 | 39

CANCARBON

CAPTURE ANDSTORAGE

COALMINING

With worldwide attention focused onreducing greenhouse gas emissions fromcoal-fired electricity generation, the casefor producers to invest in new technology

is stronger than ever.

By Graham Chandler

Peter Kent was Canada’s environment minister on Sep-tember 5, 2012, when he announced regulations for reduc-ing greenhouse gas (GHG) emissions from coal-firedelectricity generation plants. The announcement ended yearsof speculation and anxiety for Canadian coal producersincluding the majority that sold thermal coal for domesticconsumption. Ottawa reckoned something had to be done:coal-fired electricity was responsible for 11 per cent of thecountry’s total GHG emissions and the vast majority of emis-sions from the electricity and heat sector.

That was two years ago, and about one year remainsbefore they begin to apply to new coal plants on July 1,2015. The regulations apply a performance standard to allcoal-fired electricity generation units, both new and thosereaching the end of their useful life. The standard is set at420 tonnes per gigawatt hour – the emissions intensity ofnatural gas combined cycle (NGCC) technology (where gasturbines use their exhaust heat to boost electricity generationby 50 per cent) and impossible to achieve for coal-fired unitswithout emissions reduction technology.

Coal plants currently release about twice the carbon diox-ide (CO2) per megawatt as NGCC plants, and if they cannotmatch their competitors, they must be shut down. First clo-sures are expected in 2020. Most Canadian coal plants areexpected to be forced to cease operations by 2029.

It is not only Canada taking action. In the United States,the Environmental Protection Agency (EPA) is currently pro-posing new GHG emissions performance standards on fossilfuel-fired electric utility steam generating units and inte-grated gasification combined cycle units that burn coal,petroleum coke, and other fossil fuels. These standards arebased on partial implementation of carbon capture and stor-age (CCS) as the best system of emission reduction.

How to duck a big punchCoal producers with markets in the electricity generation

sector are left with a choice: invest in a solution or wait forthe fate sure to be handed to them. An HSBC report from2012 estimates that the thermal coal industry could see coalasset valuations plummet by as much as 44 per cent. Thebank predicted the “big four” U.K. miners – BHP Billiton,Anglo American, Rio Tinto and Xstrata (now Glencore) – willlose between $12 billion and $25 billion in stock value if

June/July 2014 | 41

there is no dramatic shift in the way burning coal releasesCO2 into the atmosphere.

“The new GHG regulations on coal may force a significantamount of low-cost coal capacity to be retired long before itotherwise would,” says Dave Butler, the executive directorof the Canadian Clean Power Coalition, an association ofCanadian and American electricity producers devoted todeveloping and advancing commercially viable solutions forlowering coal power plant emissions. “There is a significanteconomic loss associated with retiring these plants prema-turely.”

But with the application of CCS, most of these plantswould not need to be retired. CCS is essentially the only waycoal-fired electricity generating plants will be able to meetthe new standards. The technology involves removing CO2from the generating process and sequestering it in safeunderground geological formations. This can reduce GHGemissions by 90 per cent or more. Recovered CO2 can alsobe sold to enhance oil recovery in some situations.

As a strategic move, some coal producers are exploringways of getting involved with CCS projects like FutureGen,a first-of-its-kind, near-zero emissions coal-fuelled powerplant, in cooperation with the U.S. Department of Energy(DOE). The DOE is contributing $1 billion, and other proj-ect partners will fund the remainder of the project’s $1.65-billion capital cost. Most of those partners are coalproducers: Alpha Natural Resources, Anglo American, JoyGlobal, Peabody Energy and Glencore.

Expected to be on line in 2017, the FutureGen projectwill upgrade an Illinois power plant with oxy-combustiontechnology, which combusts coal in the presence of a mix-ture of oxygen and recycled flue gas to produce an ultra-clean stream of CO2. Each year, some 1.1 million tonnes ofCO2 will be captured from the plant – more than 90 per centof its carbon emissions. The CO2 will be transported andstored underground. The aim is to test and commercializean entire integrated CCS approach.

Producers’ participation makes economic sense. AngloAmerican entered into the FutureGen alliance out of a spe-cific corporate strategy. “Coal makes up an important part ofour portfolio and we believe it has a significant role to playin the future, particularly in the developing world,” saysEmily Blyth, the company’s media manager. “We do, how-ever, accept that it is our responsibility to ensure that wekeep pushing the boundaries as far as reducing the carbonintensiveness of our operations and, in fact, our goal is torun low – if not carbon-neutral – mines by 2030.” She says

in order to achieve this, Anglo American has to invest heavilyin technologies and research and build constructive relation-ships with partners across academia, industry, government,and in the NGO community. “Our participation in Future-Gen is part of that approach.” Blyth says Anglo American’soverall investment in GHG emissions reduction to date –including CCS – is US$201 million.

Anglo American has been involved in various interna-tional CCS developments at the research and pilot scales,Blyth notes. “In Australia, we also contribute to the Coal 21Fund for development of low emission technologies and inSouth Africa we are founding members of the Centre for Car-bon Capture and Storage,” she says. The centre is buildingtechnical and human resources capacity in South Africa inorder to make CCS implementation possible.

Ken Humphreys, CEO of FutureGen, says several globaland North American coal companies have made importantcommitments. “Notable examples [of CCS projects] with coalproducer involvement include the DOE Regional Carbon

Regulations are expected to force the closure of coal-fired power plants unlesscarbon capture and storage technology can be implemented.

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“Fossil-based utilities and coalproducers have a major strategicinterest in the success of CCS”

- Ken Humphreys, CEO of FutureGen


June/July 2014 | 43

Sequestration Partnerships that cover much of the U.S. andCanada; the Australian Callide oxy-combustion pilot projectand Surat basin storage project; and the South African geo-logic storage assessment studies.”

There are other CCS projects underway in nearly all cor-ners of the globe at varying stages of development, and manyare receiving financial support from the mining industry. It

can be difficult to choose which projects are most deservingof investment. Australian Coal Association Low EmissionsTechnology (ACALET) has several producers participatingin its CCS research. “The New Hope Group, along with mostother black coal producers in Australia, fund ACALETthrough a voluntary levy,” says a New Hope Group represen-tative who spoke on the condition of anonymity. He saysACALET will fund up to $1 billion into various CCS projectsover 10 years.

“We invested US$430 million in emissions reduction andenergy efficiency projects across our operations globallybetween FY2007 and FY2012,” says Eleanor Nichols, aspokesperson for BHP Billiton. “We participate in the Coop-erative Research Centre for Greenhouse Gas Technologies,

one of the world’s leading collaborative research organiza-tions focused on CCS.” BHP Billiton is also a member of theGlobal Carbon Capture and Storage Institute that aims toaccelerate the development, demonstration and deploymentof CCS globally through knowledge sharing, fact-basedadvice and advocacy and work to create favourable condi-tions to implement CCS.

But Humphreys says that while producer involvement inearly stage CCS R&D and pilot projects is high, producerinvolvement in commercial-scale projects like FutureGen ismuch more limited. That is principally due to the challeng-ing market economics that first-mover coal-based CCS proj-ects currently face. According to the independent Center forClimate and Energy Solutions, installation of CCS technol-ogy will result in short-term electrical rate increases of 45 to83 per cent, depending on whether it is retrofitting an exist-ing plant or adding CCS at the construction stage of newplants. Peabody Energy’s involvement in China’s GreenGenproject is a good example of a coal company forging ahead,Humphreys says. GreenGen expects CCS to be operationalby 2020, storing more than 80 per cent of CO2 emissions.Peabody did not respond for comment.

A daunting project with a lot of uncertainty

Why should coal producers get seriously involved withadvancing CCS? “Policy-makers are clearly moving towardpolicies and regulations that are intended to reduce carbonemissions,” advises Humphreys. “How fast those policies andregulations will move forward is unclear, but it is very clearthat coal will continue to be a dominant global fuel, and thatcarbon will continue to be a business issue. Investments inadvanced technology that reduce carbon emissions are astrategic hedge in an uncertain regulatory future. Invest-ments in CCS position the coal industry as a problem solver.”

In fact, Humphreys considers producers’ involvement anecessity. “Fossil-based utilities and coal producers have amajor strategic interest in the success of CCS,” he says. “Withlow North American gas prices, most fossil utilities are shift-ing focus toward natural gas-based strategies. It is in thestrategic interest of the coal industry to demonstrate that coalwith CCS can be affordable and have a carbon footprintequal to or better than natural gas.”

Butler agrees but cautions that CCS is still an expensiveand unproven technology commercially: “More of theseplants need to be built to bring their costs down. However,low natural gas prices have helped reduce power prices,making it more difficult to justify CCS projects on coalplants.”

The Canadian Clean Power Coalition has been studyingCCS technologies for a decade now, says Butler, and can helpproducers get involved despite the hurdles. “We help ourmembers understand which GHG reduction options arelikely to be more attractive than others,” he explains. “Wealso study new technologies that may be available in adecade. In addition, there are several CCS test facilities in

“One of the key components of the revenue streamthat we needed to make the project’s economics work wasthat there would be a value on the CO2 emissions thatwere reduced,” explains Don Wharton, vice-presidentpolicy and sustainability, TransAlta Corporation. “As itturned out, the [federal government] regulation put novalue on carbon reduced, so that revenue stream disap-peared.”

The second expectation for the revenue stream was to besales of CO2 to Alberta oil and gas producers for enhancedoil recovery (EOR). “It turned out the commercial entity wewere negotiating with made the decision that, rather thanCO2 flooding, they were going to put their money into hor-izontal drilling technology, so that revenue streamdried up,” says Wharton. “Thosetwo things happened coinci-dentally and essentiallymade it impossiblefor us to be ableto build theproject onbudget.”

North America. The National Carbon Capture Center in theU.S. has also been testing new and novel carbon capturetechnologies. Helping to fund testing of these new technolo-gies and joining the Canadian Clean Power Coalition wouldbe a good way to get involved.”

Butler points out that they have had very strong financialparticipation from Canada’s largest producer of thermal coal,Sherritt International, whose Canadian coal operations arenow part of Westmoreland Coal Company. “It is in the inter-ests of coal suppliers to help coal consumers find ways toextend the life of existing coal plants and to find ways tobuild new coal plants which meet the emissions control reg-ulations. That way they will be able to grow and sell morecoal,” he says.

But recent low thermal coal prices of less than US$75 pertonne compared with $190 in mid-2008 challenge the eco-nomics for producers looking to get seriously into CCSinvesting.

In fact, economics were blamed for the 2012 demise ofProject Pioneer, a large CCS project in Alberta. Project Pio-neer was a joint effort by coal producer TransAlta Corpora-tion, Capital Power L.P., Enbridge Inc., and the federal andprovincial governments to demonstrate commercial-scaleviability of CCS technology. Although it demonstrated thatthe technology works and capital costs were in line withexpectations, the market for carbon sales and the price ofemissions reductions were insufficient to allow the projectto proceed.

Two large scale power plant CCS projects are under construction: Mississippi’s Kemper County and Saskatchewan’s Boundary Dam. Kemper County will capture carbon pre-combustion (above left) while Boundary Dam will use a post-combustion carbon capture process (above right).


June/July 2014 | 45

Wharton accepts, however, that in order for CCS to becommercially viable, a project should not rely on sellingCO2. “First and foremost this was a demonstration project,and we recognized in the long haul that sequestration wasgoing to be the big nut because Alberta [oil wells] couldn’tabsorb all the CO2 that coal-fired power produces shouldCCS take off,” he says. “So we had both an EOR stream anda sequestration stream; we drilled disposal wells as part ofthe project.”

Wharton has faith in the capability of CCS technologydespite the current marginal economics. “I think the majorthing we proved to ourselves was that the technology wouldwork – both the capture and the sequestration.” He sayswhat was not proven was the economics, and he still believesthat is the outstanding issue as to whether CCS can bedeployed on coal-fired power in a way that allows them tobe competitive with other forms of electricity. “That’s still tobe proven,” he says. “You can put CCS on a plant but if it’snot economic, especially in deregulated electricity marketslike Alberta, you are hampering your ability to sell yourproduct.”

He says the handful of worldwide coal-fired plants withCCS that are moving ahead have an advantage: “One is thatalmost all of those other jurisdictions are regulated electricityjurisdictions; Saskatchewan is a perfect example. They aremoving ahead very well on their Boundary Dam project butthey get to pass those costs through to the ratepayer oncethe regulator approves it. So it is a whole different ball game

than companies fronting a lot of the capital cost and thenhaving to sell into a competitive market.” SaskPower’sBoundary Dam project, one of the leading CCS demonstra-tion projects as applied to power generation in Canada, hasno coal producers as investors, according to projectspokesperson Tyler Hopson.

But Wharton feels that is no reason for producers toturn their backs on CCS: “It has huge possibilities if wecan work the project economics and scale factors prop-erly. So we are carefully watching developments on thatbroad global technology to see if and when it might proveto be economic and some of those will be externalitieslike the price of natural gas as a competitive fuel.” He fig-ures the supply and price of natural gas will be majordetermining factors in whether CCS for coal-fired gener-ation takes off.

Still, Wharton does not expect to see a miracle technol-ogy that changes the game overnight. He has some advicefor would-be investors: “Number one, it is a long game.Don’t expect that something is going to pop out in the nextthree to five years. The stage of technology development onCCS and the economics that go along with it are kind of likethe oil sands were 20 or 25 years ago. In our view it is likelyat least a decade away before CCS becomes a commerciallycompetitive and viable solution and will go gangbusters.”

A decade is a long time in the current regulatory envi-ronment, however; and only cash is likely to speed up theresearch necessary to make CCS a commercial reality. CIM

Le 5 septembre 2012, Peter Kent, alors ministre de l’en-vironnement du Canada, a annoncé une réglementationvisant à réduire les émissions de gaz à effet de serre (GES)provenant des centrales de production d’électricité à partirdu charbon. Cette annonce a mis fin à des années de spécu-lation et d’angoisses pour les producteurs de charbon cana-diens, y compris pour la plupart qui vendent leur charbonthermique à des fins de consommation domestique. Ottawaa reconnu qu’il fallait agir : l’électricité produite à partir ducharbon représente 11 % des émissions totales de GES duCanada, et la majeure partie sont imputables au secteur del’électricité et du chauffage.

Voici deux ans que cette annonce a été faite, et d’ici plusou moins une année, le 1er juillet 2015 exactement, la régle-mentation devra être appliquée par les centrales au charbon.Elle leur impose à toutes une norme de rendement, aux nou-velles comme à celles atteignant la fin de leur durée de vieutile. Cette norme est fixée à 420 tonnes par gigawatt-heure,à savoir l’intensité des émissions de la technologie de cyclecombiné au gaz naturel (CCGN), où des turbines à gazutilisent leur rejet thermique pour augmenter de 50 % la pro-duction d’électricité. Cette norme ne pourra être respectée àmoins que les centrales alimentées au charbon ne s’équipentd’une technologie de réduction des émissions.

Les centrales au charbon rejettent environ deux fois plusde dioxyde de carbone (CO

2) par mégawatt que les centrales

à CCGN, et si leur performance ne peut égaler celle de leursconcurrents, elles devront alors être fermées. Les premières

fermetures sont prévues pour 2020. La plupart des centralescanadiennes pourraient devoir fermer leurs portes d’ici 2029.

Le Canada n’est pas le seul à prendre des mesures. AuxÉtats-Unis, l’agence de protection de l’environnement (EPA)propose actuellement de nouvelles normes de rendement enmatière d’émissions de GES pour les centrales électriques àcycle à vapeur alimentées aux combustibles fossiles et les cen-trales à cycle combiné à gazéification intégrée (CCGI) qui brû-lent du charbon, du coke de pétrole et d’autres combustiblesfossiles. Ces normes reposent sur la mise en œuvre partiellede la technologie de captage et stockage du dioxyde de car-bone (CSC) en tant que système le plus efficace de réductiondes émissions.

Comment esquiver les coupsLes producteurs de charbon qui dépendent des marchés

du secteur de la production d’électricité ont deux possibilités :investir dans une solution, ou attendre que le verdict tombe.Un rapport de HSBC de 2012 estime que l’industrie du char-bon thermique pourrait voir les évaluations des actifs de char-bon s’effondrer de jusqu’à 44 %. La banque prévoyait que les« quatre grandes » sociétés minières du Royaume-Uni (BHPBilliton, Anglo American, Rio Tinto et Xstrata, maintenantGlencore), pourraient perdre entre 12 et 25 milliards $ de leurvaleur en bourse si elles ne réduisent pas radicalement lesémissions de CO

2dans l’atmosphère issues de la combustion

du charbon.


la technologiede captage etstockage du co2

peut-elle l’industrie du

charbonPar Graham Chandler

June/July 2014 | 47

« Les nouvelles réglementations en matière de GES quis’appliquent au charbon pourraient bien entraîner le retraitd’une grande partie de la capacité de production de charbonà bas prix bien avant la date escomptée », explique DaveButler, directeur exécutif de la Canadian Clean Power Coali-tion (CCPC, la coalition canadienne pour l’énergie propre),une association de producteurs d’électricité canadiens etaméricains qui se consacrent audéveloppement et à l’avancement desolutions commercialement viablespour réduire les émissions des centralesthermiques alimentées au charbon.« Les pertes économiques associées à lamise hors service prématurée de cescentrales sont considérables. »

Mais en appliquant la technologiede CSC, on pourrait éviter la clôture dela plupart de ces centrales. La tech-nologie de CSC est fondamentalementle seul moyen pour les centrales ther-miques alimentées au charbon de seconformer aux nouvelles normes. Elleimplique d’éliminer le CO

2du procédé

de production d’électricité et de leséquestrer dans des formationsgéologiques souterraines sécurisées.Elle pourrait contribuer à réduire lesémissions de GES de 90 %, voire plus ;en outre, le CO

2récupéré peut être vendu pour améliorer

la récupération de pétrole dans certains cas.Dans une optique stratégique, certains producteurs de

charbon explorent les moyens de s’impliquer dans des projetsde CSC tels que FutureGen, la première centrale électrique àcharbon en son genre qui ne génère pratiquement aucuneémission, en coopération avec le Department of Energy (DOE,le ministère de l’énergie) des États-Unis. Le DOE attribue1 milliard $ à ce projet, et d’autres partenaires du projetassureront le coût en capital restant du projet, d’une valeur de1,65 milliard $. La plupart des partenaires sont des produc-teurs de charbon : Alpha Natural Resources, Anglo American,Joy Global, Peabody Energy et Glencore.

Le projet FutureGen, qui devrait être opérationnel d’ici2017, modernisera une centrale électrique de l’État de l’Illinoisà l’aide de la technologie d’oxycombustion, un procédé decombustion du charbon dans lequel on utilise comme com-burant de l’oxygène pur et du gaz de carneau recyclé pourproduire un flux ultra-propre de CO

2. Chaque année, quelque

1,1 million de tonnes de CO2sera capté de cette centrale, ce

qui représente plus de 90 % de ses émissions de carbone. LeCO

2sera ensuite transporté et stocké sous terre. L’objectif du

projet est de tester et de commercialiser une approche intégréetotale de CSC.

La participation des producteurs est tout à fait logique dupoint de vue économique. Anglo American a intégré l’allianceFutureGen dans le cadre d’une stratégie d’entreprise spéci-fique. « Le charbon constitue une part importante de notreportefeuille et selon nous, il aura un rôle important à jouer à

l’avenir, notamment dans le monde en développement »,explique Emily Blyth, directrice des médias de la société.« Nous admettons cependant qu’il est de notre devoir de nousassurer de faire notre possible pour limiter l’intensité des émis-sions de dioxyde de carbone que génèrent nos activités;d’ailleurs, notre but est d’exploiter d’ici 2030 des mines à faibleémission de carbone, voire neutres en carbone. » Pour y par-

venir, explique-t-elle, Anglo Americandoit énormément investir dans les tech-nologies et la recherche et développerdes relations constructives avec despartenaires du monde universitaire, del’industrie et du gouvernement ainsi quedans la communauté des ONG. « Notreparticipation à FutureGen fait partieintégrante de cette approche. »Mme Blyth indique que l’investissementtotal d’Anglo American dans la réductiondes émissions de GES à ce jour, tech-nologie de CSC comprise, est de201 millions $ US.

Anglo American s’est impliquée dansdivers développements internationauxde la CSC à l’échelle pilote et de larecherche, explique Mme Blyth. « En Aus-tralie, nous contribuons aussi au Coal 21Fund pour le développement de tech-nologies à faible taux d’émissions, et en

Afrique du Sud, nous sommes les membres fondateurs duCentre for Carbon Capture and Storage. » Ce centre renforceles capacités techniques et en ressources humaines de l’Afriquedu Sud afin de permettre la mise en œuvre de la CSC.

Ken Humphreys, directeur général de FutureGen,explique que plusieurs sociétés charbonnières d’Amérique duNord et du reste du monde ont pris des engagements impor-tants. « Parmi les exemples notables [de projets de CSC] danslesquels se sont engagés des producteurs de charbon, citonsles partenariats régionaux sur le captage du charbon du DOEqui couvrent une bonne partie des États-Unis et du Canada ;le projet pilote d’oxycombustion Callide et le projet de stock-age du bassin de Surat en Australie ; et les études d’évaluationdu stockage géologique en Afrique du Sud. »

D’autres projets de CSC sont en cours pratiquementpartout dans le monde. Ils se trouvent à divers stades dedéveloppement et beaucoup reçoivent un soutien financier del’industrie minière. Il est très difficile de déterminer quels pro-jets sont les plus dignes de bénéficier d’un investissement.Plusieurs producteurs participent aux travaux de recherchesur la CSC menés par l’Australian Coal Association Low Emis-sions Technology (ACALET). « Le New Hope Group, ainsi quela plupart des autres producteurs d’anthracite d’Australie,financent ALCALET par le biais de cotisations volontaires »,explique un représentant du New Hope Group qui a requisl’anonymat. Il explique qu’ACALET investira jusqu’à 1 mil-liard $ dans divers projets de CSC sur une période de 10 ans.

« Nous avons investi 430 millions $ US dans des projetsportant sur la réduction des émissions et l’efficacité énergé-

« La réussite desprojets de CSC revêt un

intérêt stratégiqueimportant pour les

services reposant surles combustibles

fossiles et pour lesproducteurs de

charbon »– Ken Humphreys, directeur général de FutureGen

bustibles fossiles et pour les producteurs de charbon »,explique-t-il. « Étant donné le bas prix du gaz en Amériquedu Nord, la plupart des services basés sur les combustiblesfossiles se tournent vers des stratégies reposant sur le gaznaturel. D’un point de vue stratégique, il est dans l’intérêt del’industrie du charbon de démontrer que les centrales à char-bon équipées d’une technologie de CSC peuvent être abord-ables et ont une empreinte écologique équivalente oumeilleure que celle des centrales à gaz. »

M. Butler est d’accord, mais prévient que la CSC reste unetechnologie encore coûteuse et non éprouvée sur le plan com-mercial. « La plupart de ces centrales devront être construitespour réduire leurs coûts. Cependant, les prix relativement basdu gaz naturel ont contribué à faire baisser les prix de l’élec-tricité, ce qui rend plus difficile de justifier le développementde projets de CSC dans des centrales à charbon. »

La Canadian Clean Power Coalition étudie la technologiede CSC depuis une dizaine d’année, déclare M. Butler, et peutaider les producteurs à s’impliquer malgré les difficultés qu’ilspourraient rencontrer. « Nous aidons nos membres à com-prendre quelles options seraient susceptibles d’être plus avan-tageuses que d’autres », déclare-t-il. « Nous étudionségalement de nouvelles technologies qui pourraient êtredisponibles d’ici une dizaine d’années. En outre, on trouveplusieurs installations pilotes de CSC en Amérique duNord. Le National Carbon Capture Center aux États-Unis testeaussi depuis un certain temps des technologies innovantes decaptage du CO

2. Contribuer au financement de ces nouvelles

technologies et adhérer à la Canadian Clean Power Coalitionsont de bonnes manières de s’impliquer. »

M. Butler fait remarquer que la coalition a perçu une trèsforte participation financière de Sherritt International, le plusgrand producteur de charbon thermique canadien, dont lesexploitations canadiennes de charbon dépendent désormaisde la Westmoreland Coal Company. « Les fournisseurs decharbon ont tout à gagner à aider les consommateurs à trouverdes manières de prolonger la durée de vie des centrales à char-bon existantes et d’en construire de nouvelles conformes auxréglementations en matière de contrôle des émissions. Celaleur permettra de se développer et de vendre davantage decharbon », dit-il.

Cependant, la chute récente des prix du charbon ther-mique à moins de 75 $ US par tonne, par rapport à 190 $ USmi-2008, représente un frein économique pour les produc-teurs envisageant sérieusement d’investir dans la technologiede CSC.

De fait, l’économie a été mise en cause pour l’échec en 2012de Pioneer, un grand projet de CSC en Alberta. Le projet Pio-neer était un effort commun de la TransAlta Corporation, deCapital Power L.P., d’Enbridge Inc. et des gouvernementsfédéral et provincial visant à démontrer la viabilité à l’échellecommerciale de la technologie de CSC. Bien qu’il ait démontréque la technologie fonctionne et que les coûts en capitauxrépondaient aux attentes, le marché pour les ventes du CO

2

et le prix des réductions des émissions ne suffisaient pas pourpoursuivre le projet.

tique dans toutes nos exploitations dans le monde entre lesannées fiscales 2007 et 2012 », indique Eleanor Nichols,porte-parole de BHP Billiton. « Nous participons au Cooper-ative Research Centre for Greenhouse Gas Technologies, l’undes principaux organismes de recherche collaborative auniveau mondial se concentrant sur la technologie de CSC. »BHP Billiton est aussi membre du Global Carbon Capture andStorage Institute (l’institut mondial du captage et stockage ducarbone) qui cherche à accélérer le développement, la démon-stration et le déploiement de la technologie de CSC à l’échellemondiale en promouvant le partage des connaissances, lesconseils et la défense de cette cause fondés sur des faits ainsique les travaux nécessaires pour créer les conditions favorablesà la mise en œuvre de la CSC.

Cependant, M. Humphreys explique que malgré l’engage-ment important des producteurs dans les projets pilotes et lespremières étapes de R&D sur la CSC, leur implication dansdes projets d’envergure commerciale tels que FutureGen estbien plus limitée. Ceci s’explique principalement par l’é-conomie de marché complexe à laquelle sont actuellementconfrontés les premiers projets de CSC destinés aux centralesthermiques alimentées au charbon. D’après le Center for Cli-mate and Energy Solutions, une organisation indépendante,l’installation de la technologie de CSC entraînera une augmen-tation à court terme des tarifs de l’électricité de 45 à 83 %,selon si elle implique la modernisation d’une centrale existanteou l’ajout de la technologie de CSC à l’étape de constructionde nouvelles centrales. L’engagement de Peabody Energy dansle projet GreenGen en Chine est un bon exemple d’une sociétécharbonnière qui va de l’avant, explique M. Humphreys.D’après les responsables de GreenGen, la technologie de CSCsera opérationnelle d’ici 2020 et permettra de stocker plus de80 % des émissions de CO

2. Peabody n’a pas répondu à ces

observations.

Un projet intimidant parseméd’incertitudes

Pourquoi les producteurs de charbon ont-ils tout intérêtà s’engager aussi sérieusement vis-à-vis du développementde la CSC ? « Les décideurs politiques adoptent clairementdes politiques et réglementations visant à réduire les émis-sions de dioxyde de carbone », explique M. Humphreys.« La vitesse à laquelle ces politiques et réglementations pro-gresseront est incertaine, mais ce qui est sûr, c’est que lecharbon continuera d’être un combustible dominant àl’échelle mondiale, et le dioxyde de carbone un enjeu com-mercial. Les investissements dans une technologie avancéequi permet de réduire les émissions de CO

2constituent une

couverture stratégique dans un avenir très incertain en ter-mes de réglementation. Les investissements dans la tech-nologie de CSC font de l’industrie du charbon une solutionau problème. »

Pour M. Humphreys, l’engagement des producteurs est unenécessité. « La réussite des projets de CSC revêt un intérêtstratégique important pour les services reposant sur les com-


June/July 2014 | 49

« L’un des éléments clés du flux de rentrées dont nousavions besoin pour garantir le succès économique du projetétait d’appliquer une valeur à la réduction des émissions deCO

2», explique Don Wharton, vice-

président à la politique et audéveloppement durable chezTransAlta Corporation. « Il s’esttrouvé que la réglementation imposéepar le [gouvernement fédéral] n’ap-plique pas de valeur à la réduction desémissions de dioxyde de carbone,aussi ce flux de rentrées a disparu. »

La seconde attente pour le flux derentrées concernait les ventes duCO

2aux producteurs de pétrole et

de gaz de l’Alberta à des fins derécupération assistée des hydrocar-bures (RAH). « Il s’est avéré que l’en-tité commerciale avec laquelle nousmenions les négociations a décidéque, plutôt que d’investir dans l’in-jection de dioxyde de carbone, elleallait se tourner vers une technologiede forage horizontal, aussi ce flux derentrées s’est tari », déclareM. Wharton. « Ces deux facteurs onteu lieu par pure coïncidence, et ontessentiellement eu l’effet de nousempêcher de construire le projetavec le budget prévu. »

M. Wharton reconnaît cependantqu’afin de faire de la CSC une tech-nologie commercialement viable, unprojet ne peut pas uniquement tablersur les ventes de CO

2. « Tout d’abord,

il s’agissait d’un projet de démonstration et nous avonsreconnu que sur le long terme, la séquestration allait devenirun véritable problème car les [puits de pétrole] de l’Alberta nepourraient absorber tout le CO

2que rejettent les centrales élec-

triques à charbon au cas où la technologie de CSC prenne sonenvol », explique-t-il. « Nous avions donc d’un côté, la RAHet de l’autre, la séquestration ; nous avons foré des puits destockage dans le cadre du projet. »

M. Wharton reste confiant dans la capacité de la technolo-gie de CSC malgré sa faible rentabilité économique actuelle-ment. « Nous sommes parvenus à nous prouver que latechnologie, autant le captage que la séquestration, pouvaitmarcher. » Ce qui n’est pas prouvé, comme il l’explique, estsa rentabilité, et il reste persuadé que cela constitue le prob-lème dominant au déploiement de la CSC dans des centralesà charbon d’une manière qui leur permette de faire concur-rence aux autres formes d’électricité. « Cela reste à prouver »,ajoute-t-il. « On peut installer la technologie de CSC dans unecentrale, mais sa non-rentabilité, surtout sur des marchés del’électricité déréglementés comme ceux de l’Alberta, con-stituera une entrave à la vente de notre produit. »

Il explique que la poignée de centrales à charbon dans lemonde dotées de la technologie de CSC qui affichent de bonsrésultats présentent une différence. « L’une de ces différences

est que dans pratiquement toutes lesautres juridictions, le marché del’électricité est réglementé ; laSaskatchewan est un parfait exemple.Le projet de Boundary Dam avancetrès bien, mais la différence est queles responsables répercutent les coûtssur le contribuable une fois que l’or-ganisme de réglementation l’aapprouvé. Cela n’a donc rien à voiravec des sociétés devant avancer lamajorité des coûts en capital etensuite vendre sur un marché com-pétitif. » Le projet de Boundary Damde SaskPower, l’un des plus grandsprojets de démonstration de la tech-nologie de CSC appliquée à la pro-duction d’électricité au Canada, necompte aucun producteur de char-bon parmi ses investisseurs, expliqueTyler Hopson, porte-parole du projet.

Mais M. Wharton a le sentimentque ce n’est pas la raison pour laque-lle les producteurs tournent le dos àla technologie de CSC. « Les possi-bilités sont immenses si nous par-venons à bien exploiter la rentabilitéet les facteurs d’échelle du projet.Ainsi, nous observons attentivementles développements de cette tech-nologie au niveau mondial pourdécider si et quand elle sera rentable,

et certains dépendront de facteurs externes comme le prix dugaz naturel en tant que combustible au coût compétitif. »Selon lui, la demande de gaz naturel et son prix seront desfacteurs déterminants dans l’avènement de la technologie deCSC pour la production d’électricité à partir de charbon.

Bien entendu, M. Wharton ne s’attend pas à voir surgir unetechnologie miracle qui changera la donne en l’espace d’unenuit. Mais il a quelques conseils à donner aux investisseurs àvenir. « Premièrement, il faut miser sur le long terme. Ne vousattendez pas à ce qu’une solution miracle voit le jour dans lestrois à cinq années à venir. La phase de développement tech-nologique de la CSC et les facteurs économiques qui l’accom-pagnent sont un peu comme le cas des sables bitumineux il ya 20 à 25 ans. À notre avis, il faudra compter environ unedécennie avant que la technologie de CSC ne devienne unesolution compétitive et viable du point de vue commercial, etconnaisse un véritable succès. »

Une décennie est cependant une période bien longue auvu de l’environnement réglementaire actuel, et seuls lesinvestissements pourront accélérer la recherche pour faire dela technologie de CSC une réalité. ICM

La règlementation pourrait forcer la fermeture des centrales aucharbon si les technologies de captage et stockage desémissions de carbone ne sont pas appliquées.

Vera

Kai

lova

10 Trade Show Booths leftBONUS: Each exhibitor receivesone full-registration pass.

6 Short Coursesheld in conjunction and mirror the technical themes:• Control of Mineral ProcessingSystems

• Risk Management• Process Safety and ManagementAwareness

• Process Hazard Analysis• Energy Storage Course Overview• Process Safety and Managing Risk

View speakers’ list online

PROSPERITY THROUGH PROCESS ADVANCEMENTS

Technical Themes:• Arsenic Metallurgy• Process Control Applications• Rare Earth Elements• Process & Flowsheet Development• Risk Management• Bill Davenport Symposium• Metals & Mineral Process in honor of Dr. Ram Rao

• Light Metals Processing• Nanoscale Materials Characterization• Vanadium• Materials Manufacturing• Multiscale Modelling and Simulations of Failure in Structural Materials

• Process Safety Management inMetallurgical Operations

An Industrial Tourto CESL Pilot / DemoPlant and SGSTechnology Centre.

September 28 – October 1, 2014Hyatt Regency Hotel, Vancouver (BC)

CONFERENCE OF METALLURGISTSREGISTRATION

IS OPEN

“The regulations have preoccupiedevery engine manufacturer,” saysKevan Browne, communications

director at Cummins Engine Company.“What are the emissions levels? How do wemeet them? And when do we meet them?”

Diesel combustion produces a soot com-posed of carbon, hydrocarbons, and solidsulfur compounds and generates toxic gasesand vapours like carbon monoxide, polyaro-matic hydrocarbons, sulfur dioxide, andnitrogen oxides (NOx). The World HealthOrganization says that without adequate con-trols, such as exhaust after-treatment, thesediesel byproducts can cause a range of possi-ble health problems, including respiratory ill-nesses and cancer for workers. Although thedegree of risk is still being debated, latest

industry standards are reducing diesel emissions to near-zero levels, and themining industry is rapidly moving ahead to introduce cleaner diesel-poweredequipment.

High levels of soot – otherwise known as particulate matter (PM) – andNOx have forced mine operators, governments, and suppliers to work hardon finding solutions to reduce diesel emissions and worker exposure. Whilea holistic approach is recommended – from cleaner fuel to vigourous main-tenance practices to better ventilation in underground mines – the greatesttechnological change has occurred in engine combustion and exhaust after-treatment.

June/July 2014 | 51

A cleaner burnModern diesel engines keep soot and nitrogen oxides under controlBy Eavan Moore

On January 1, 2015, the final stage of a 20-year journey toward near-zero dieselemissions will commence. By that date, every new diesel engine sold in the UnitedStates will reduce the diesel particulate matter and nitrogen oxide in its exhauststream by more than 90 per cent of their pre-1996 levels, in accordance with theTier 4 Final regulations phased in by the U.S. Environmental Protection Agency(EPA).

technologyEM I S S I ONS CON TROL

HJS Emission Technology’s StratusSMF-AR system.

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After-treatment retrofitsWith an older engine, the burden of dealing with PM falls

to a diesel particulate filter (DPF). The basic concept hasexisted since the 1970s: a honeycomb-shaped ceramic, metal,cordierite or knitted glass fibre filter traps soot from theexhaust, and the accumulated soot is periodically burned offto regenerate the filter.

Al Hovda, global manager of the exhaust and emissionsbusiness at Minneapolis-based filtration company Donaldson,says soot buildup problems have driven improvements in DPFdesign. Any burn-off during regeneration will result in someash production, and newer generations of DPFs have largerinlet channels to collect more ash and extend service intervals.

But excessive soot buildup, which can cause the DPF torequire service, persists because a vehicle’s duty-cycle doesnot always allow the engine to run hot enough to reach therequired burn-off temperature. If a DPF regenerates at 500 C,the engine will have to operate at or above this temperature atleast 20 per cent of the time to avoid excessive soot buildup.A test of new DPFs, conducted from 2000 to 2004 at Vale’sunderground Stobie mine, as part of the mining industry-ledDiesel Emission Evaluation Program, showed that even heav-ily used vehicles needed assistance to get their engines to thattemperature that often.

Strategies for raising exhaust temperature can either beactive, involving some intervention such as injecting extrafuel or starting up a heater, or passive, which can mean eitherraising the exhaust temperature automatically or lowering thethreshold temperature for filter regeneration.

One filter Vale plans to install on selected light-duty vehi-cles across its Sudbury operations combines both active andpassive strategies. The Stratus SMF-AR, a sintered metal filtermade by HJS Emission Technology and sold in North America

by T.F. Hudgins, uses heating elementsencircling the filter to help it to ignite, whilea ferrocene fuel additive lowers the reactiontemperature. Bob Clayton, manager ofinternational sales at T.F. Hudgins, says thefilter can drop the ignition temperature by200 C while cutting PM by up to 99.7 percent. According to Cheryl Allen, principalengineer of ventilation at Vale, the filterreduced PM emissions by more than 99 percent on the two engines Vale tested.

Diesel oxidation catalysts (DOCs) canalso help reach and sustain burn-off temper-atures. DOCs serve many functions, but

their most common use – converting carbon monoxide andhydrocarbons into water vapour with a precious-metal cata-lyst, often platinum and/or palladium – also produces heatthat boosts regeneration in the DPF.

The downside to platinum and palladium is that they con-vert nitrogen oxide to NO2, a respiratory irritant. But Claytonsays that is another benefit of the Stratus SMF-AR: it canreduce NO2 depending on the engine’s operating condition.Johnson Matthey, which uses NO2 to oxidize soot in its CRTfilters, has a new “Low-NO2” version that Vale is currentlytesting on heavy-duty vehicles.

Saying no to NOxNOx emissions increase in the same high-temperature

combustion conditions that reduce PM and it is tougher totreat through retrofits. Under looser emissions rules, it waspossible to strike a balance between PM and NOx using pre-cise engine controls. But starting with Tier 3 engines, “therequirements to reduce both PM and NOx were such that theonly way they could do that is not play one against the other,but come up with after-treatment technologies that reduceboth,” says Michel Grenier, regional director of research pro-grams with CanmetMINING.

That is reflected in the technology used to meet Tier 4Final standards, which began to apply to mid-size off-roadengines – between 173 and 751 horsepower (hp) – as of Jan-uary 1, 2014. These machines power most underground min-ing equipment and must now emit no more than 0.01 gramsof PM and 0.30 grams of NOx per horsepower-hour. That isthe same PM content as the Tier 4 Interim levels, but only halfthe previously allowable NOx. “We call it near-zero levelsbecause it’s so low it’s virtually impossible to get any lower,”says Cummins’s Browne.

Vale installed a low-NO2 advanced continuouslyregenerating trap diesel particulate filter system,manufactured by Johnson Matthey, on a heavy-duty load-haul-dump vehicle at its Totten mine forfield testing.Co

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June/July 2014 | 53

NOx-specific after-treatment, calledselective catalytic reduction (SCR), is nowstandard across Tier 4 Final engines. A solu-tion of water and urea, called diesel exhaustfluid (DEF), is sprayed into the exhauststream, where the heat converts it intoammonia. The ammonia reacts with NOx toform nitrogen and water with the help of acatalyst, reducing exhaust-borne NOx byup to 90 per cent. A second slip catalysteliminates any excess ammonia.

SCR systems can reduce an engine’s oper-ating cost as well as its emissions. Manufac-turers say such systems improve fuelefficiency by up to 5 per cent because the engine operation canbe optimized for criteria other than nitrogen reduction. With atypical DEF requirement of two to three gallons per 100 gal-lons fuel burned, the total cost of fluid and diesel is lower.

This also reduces the burden on PM filters, according toDoug Mihelick, commercial manager at Caterpillar’s enginedivision. “The SCR system allows us to tune the engine to pro-duce a little higher engine-out NOx and lower particulates,”he explains. For Caterpillar, that means that some Tier 4 Finalmachine models accomplish enough soot removal throughpassive regeneration that they never need supplemental activeregeneration. Some of its engines do not require a DPF at all.

Cummins’s Browne remarks that when the less severe Tier4 Final kicks in for engines of 751 hp and above – like thoseof large surface mining equipment – Cummins will be meet-ing the requirements with SCR alone.

That is possible in part because in-cylinder controls aresteadily improving. The more thoroughly fuel burns, thefewer waste products it sends into the exhaust stream. TheTier 4 engines use high-pressure fuel injection systems con-trolled electronically; the more precisely timed the injectionand the greater the surface area of fuel droplets are exposed tooxygen, the better combustion will occur.

A typical mid-size engine also uses exhaust gas recirculation(EGR) to reduce the production of NOx by cooling down thecombustion chamber with a portion of the inert gas from theexhaust stream. “Since 2011, most of our off-highway enginesbelow 751 horsepower have had EGR on them,” Browne says.“You’ll find them on almost every engine supplier now.”

A new trackWhile technology users will be ironing out kinks for

years to come, the engine manufacturers have dusted off

their hands and declared “job done” on emissions. Brownesays Cummins is changing track now. “From Cummins’perspective, emissions have driven all of the technologychanges for the last 10 years,” he comments. “We’ve haddates which are fairly aggressive to meet from the EPA andthe European Union.” Now, he says, the focus will be onperformance improvements rather than regulatory com-pliance.

That means back-to-basics reliability, but it also means theconversion catalysts are likely going to continue to becomemore efficient and the after-treatment devices smaller. Alter-native fuels and electric hybrid installations may receive moreattention.

Meanwhile, Canmet is conducting further research intonew after-treatment technologies. The American Conferenceof Government and Industrial Hygienists (ACGIH), whichproposes health-motivated workplace guidelines, has offeredit a challenge by suggesting that the threshold limit value forNO2 over an eight-hour shift be reduced from 3.0 parts permillion to 0.2 parts per million. Though the ACGIH does notitself set regulations, a number of provinces tend to adopt itsguidelines.

“This is causing a lot of concern with mine operatorsacross Canada,” says Grenier. “So whatever technology we arelooking at right now must not only take into account the needto reduce diesel particulate matter, but also to have an impacton NO2, specifically.”

As well, says Grenier, “We’re working on alternative ener-gies for powering underground equipment. In other words,whether it’s fuel cell-powered vehicles or fully electric battery-driven vehicles, our aim here is eventually to go to the zero-emission underground mine, thereby affecting workers’ safetyand health in a positive way.” CIM

A diesel particulate filter installed on a 10-tonne locomotive at Vale’s Creighton mine.

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The rechargeable battery market has sparked interest in the lithium rich salt flatsor salars of Chile and Bolivia, as well as in Argentina, where ADY Resources aredeveloping a full-scale lithium extraction operation on the Rincón Salar.

June/July 2014 | 55

salars, trapped between Andean volcanic chains at the junc-tion of Argentina, Chile, and Bolivia.

Fifteen years ago, Daniel Galli, an original member of theADY team, was concentrating on the sodium sulphateresources in the Rincón Salar, where he had secured numerousclaims. The lithium rush that started around 2004 prompted achange of focus. The price of lithium carbonate, which wasless than US$2,000 per tonne in 2000, surged under the grow-

On the road that crosses the Argentine province of Saltaup to the Chilean border, llama herds are the onlyobstacles holding drivers back in this wide-open

landscape.It takes four hours to drive from the provincial capital of

Salta to the Rincón Salar, a 400,000-hectare crust of brownand white minerals. The region, known as the Lithium Trian-gle (see sidebar), is the setting for most of the South American

ADY Resources and itsparent company, Canadian-basedEnirgi Group, are about to reap the benefit ofyears of hard work, patience, persistence and technologydevelopment in the Argentine salt flats known as salars. Together, they arepoised to become a player in the global lithium market, aiming to construct andoperate a 25,000 tonne-per-annum lithium carbonate operation in 2017.

BY PIERRICK BLIN AND ANTOINE DION-ORTEGA

PHOTOGRAPHY BY MICHEL HUNEAULT


project profile | R I N C Ó N S A L A R

into properly defining their resource – those who do not willlose to the companies that have demonstrated a low-costposition underpinned by technology, a long-life extractableresource, and the expertise to bring the product to market,”concludes Richardson.

Volcanic dustThe richness of the Rincón Salar is derived from the neigh-

bouring hills. “Lithium is found in the surrounding volcanicrocks, ignimbrite and tuff rocks where lithium concentrationoften reaches 70 parts per million,” says Sergio Lopez, geolog-ical consultant and manager at IMEx Salta. For two millionyears, physical erosion has drawn lithium along with otherminerals from these rocks. Carried by rain, these ions cascadedown the slopes and are entrapped in vast basins. Mineralshave been accumulating and, under the effect of natural evap-oration, concentrating to levels in the range of 0.1 per cent. Inthis mix are magnesium, potassium, and sodium chloride,which ended up forming the salars – huge porous spongessoaked with brine.

Each salar has its own unique characteristics. The matureones have rich mineral concentration in their brines and abrownish, sharp crystalline crust, whereas younger ones areoften dazzling white lakes resembling vast ice rinks.

Producers in the Lithium Triangle are looking for porousformations from which the brine can be effectively pumped

ing demand for lithium batteries from the electronics market.When it met its peak at US$7,500 per tonne in 2007, Galli wasdeveloping a process to extract lithium with AdmiraltyResources, the original project owner. Admiralty ran intofinancial trouble, and the project attracted attention from otherinvestors.

In late-2009, the project was acquired by Sentient Group,an independent Australian private equity investment groupspecializing in the global resources industry. The lithiumcarbonate market has stabilized since then at US$5,000 toUS$6,000 per tonne, with producers ramping up to satisfy aballooning annual global demand, which is now about217,000 tonnes per year. Market research firm Roskill esti-mates that number will likely reach 238,000 tonnes by2017. Add to that the recent announcement from the elec-tric automobile manufacturer Tesla of its proposed US$5-billion lithium-ion battery plant, and the potential forsustained growth looks good. In 2020, the company planson producing more lithium ion batteries each year than wereproduced worldwide in 2013. “This news is a positive signfor the industry but it also means that important decisionswill have to be made by credible lithium producers if the‘lithium genie’ is to be released from the bottle,” says WayneRichardson, president and CEO of Enirgi Group. “In therace to bring on new supply to support future plans such asthe Tesla ‘gigafactory,’ lithium producers must invest heavily

The best salars are not the white flat ones, but rather the brown, sharp-edged ones such as the Rincón, which are older and contain higher concentrations of lithium.

lithium. A portion of the undesirable minerals that are less sol-uble are eventually precipitated to the bottom, just like a glassof salt water left to sit on the counter.

The main challenge in the extraction process is the presenceof magnesium. It is primarily precipitated out using lime. Inthe original process, calcium and remaining magnesium bondwith sodium sulphate and, when pressed through a filter, largetablets of gypsum with magnesium hydroxide are left behind.“This is the most potentially deleterious waste in the process,”says Carlos Galli, Daniel Galli’s son, and the general manager

June/July 2014 | 57

R I N C Ó N S A L A R | project profile

out like an oil reservoir. Homogeneity is also an asset. Lowmagnesium concentrations are ideal because they limit thecost of separating the unwanted mineral.

Enirgi Group has consolidated ADY’s claims on theRincón Salar, a 1,000-metre deep mature salar with a 0.045per cent lithium concentration – which ranks lower than saltflats such as Atacama (0.14 per cent) but higher than manyothers in the region, and the lithium is easier and less costlyto extract.

In 2011, Sentient transferred ownership and managementof its lithium assets to its Canadian subsidiary Enirgi Group asa precursor to funding the first full-scale plant expansion.

That same year, Enirgi Group launched its pilot plant to fur-ther develop its process to improve extraction performanceand to evolve the technology before ramping up to larger-scaleproduction. Trial batches are being continuously tested andthe quality improved to meet customer specifications in NorthAmerica, Asia, Europe, and locally in Argentina. Enirgi Groupplans to construct a commercial facility in 2015 and begin pro-ducing in 2017.

An elusive mineralFrom the air, a lithium project could well be mistaken for

an exotic resort, with beautiful blue and green pools set sideby side in the middle of a crystalline flat, surrounded by dra-matic mountain ranges.

Currently, to extract brine for the pilot process, ADY hasconstructed a series of 30 by 100- metre-wide pools about onemetre deep, called natural ponds, where brine naturally accu-mulates and concentrates. However, to supply brine for fullproduction, ADY will sink production wells some 20 to 60metres deep into the salar to pump the brine. The brine ispumped into a series of shallow, lined pools where the sun andwind accelerate the evaporation process, concentrating the

Once the magnesium and calcium are separated, brine is heated up to 90 degreesCelsius and mixed with sodium carbonate.

Once at the surface, the brine is pumped into evaporationponds, where its lithium concentration will increase while

less soluble minerals will end up depositing.

itself to the carbonate and precipitates. Once dry, the lithiumcarbonate resembles table salt. “Unlike lithium metal, lithiumcarbonate is benign and safe to transport,” says Carlos. “Thewhole process brings lithium concentration from 0.045 percent in the brine, to 18.0 per cent in the final product.”

The most abundant byproduct of this process is naturallyoccurring sodium chloride – table salt. However, bringing it tomarket is out of the question for ADY. Local communities,from which the majority of the company’s 160 employeescome, have been producing it from the salt flats for centuries.Competition from an industrial production nearby would cer-tainly damage their artisanal market. “We don’t wish to createsuch disruption, and it is not a viable business for ADY,” saysCarlos.

The end productADY currently produces three grades of lithium carbonate,

which are exported to global markets in 700-kilogram pack-ages, mostly for glass, ceramic and battery production. Thecarbonates generated by ADY are all 99 per cent pure, but thecomposition of the one per cent of impurities varies dependingon the customer. Battery producers are especially demanding.“For automobile batteries, the level of quality is much higher,”explains Galli. “The [preferred] concentration reaches 99.3 percent, and even up to 99.5 per cent. The secret is managing theimpurity distribution.” Impurities include calcium, magne-sium, sodium, potassium and boron. Although clients fromany industry would rather reduce impurities to a minimum,lithium battery producers have much higher standards thanthose in the glass and ceramic field. The “battery grade” thusrequires an extra refining step.

ADY has been refining its extraction process for seven yearsnow. In 2012, after substantial investment, ADY produced itsfirst commercial quantities of lithium carbonate and has grad-ually raised its annual production rate. Enirgi Group’s initialgoal is to build a facility with a 25,000-tonne capacity by 2017– expected to cost at least US$200 million – with the determi-nation to be one of the top three global producers.

Step by stepThe pilot plant was critical in refining the trial process, as it

has become clear that it is necessary to make changes beforescaling up to a larger plant. “It’s like being at school,” says Car-los. “The intermediate steps we are taking right now are allow-ing us to gain a deep understanding of our resource and thetechnical challenges.”

As part of this careful progression, Enirgi Group decidedto build a demonstration plant of the commercial process tovalidate it at higher production volumes. Constructed inSydney, Australia, the plant will be shipped to the high-alti-tude Rincón Salar to verify it performs well at 13,500 feetabove sea level. With both the process and the engineering inhand, ADY will ensure it can compete with other major play-ers in the region, such as SQM and FMC, which already run45,000- and 23,000-tonne-per-year plants respectively. CIM

of operations for ADY Resources, as he crumbles a piece ofgypsum with his bare hands. “And it’s not dangerous.” In thecommercial plant, though, the filtering process will beupgraded so that it will not need sodium sulphate anymore,further reducing costs.

As lithium remains soluble until the end, it is finallyextracted by heating the brine to 90 degrees and addingsodium carbonate. At this temperature, the lithium attaches


project profile | R I N C Ó N S A L A R

Though the glass and ceramics market accounts for more than a third of lithiumdemand, the promise of the growing electric auto industry is the carrot for manyinvestors.

A small market withgrowing competitionComprised of the northern regions of Chile, Argentina,and the Bolivian South, the Lithium Triangle consists ofa series of high and arid plateaus holding numerous saltflats with varying concentrations of lithium. A 2011 U.S.Geological Survey report stated that the region holdsmore than 45 per cent of worldwide resources. Chilealone produces nearly 33 per cent of the global output.

Interest in the lithium global market has exploded since2004. Still, it remains a minor commodity market thatis barely worth US$1 billion. Chile’s lithium exports areworth a little more than $US200 million, not evenequal to half of one per cent of its copper exports.

Lithium is increasingly extracted from pegmatite gran-ite rock. In Canada, two lithium mines were recentlylaunched by Canada Lithium and Nemaska Lithium.“It’s more profitable to produce from salt flats,” saysSergio Lopez, a consulting geologist with IMEx Salta.“While production costs from rock are decreasing andcould eventually compete with them, energy andreagents form a large portion of operating costs andtoday are high.”

June/July 2014 | 59

R I N C Ó N S A L A R | profil de projet

Il y a quinze ans, Daniel Galli, un membre des premièresheures d’ADY, se concentrait sur les ressources de sulfate desodium dans le Salar del Rincón, où il avait consolidéplusieurs concessions. La ruée vers le lithium qui a com-mencé aux alentours de 2004 l’a incité à rectifier le tir. Leprix du carbonate de lithium, qui était inférieur à 2000 $USDpar tonne en 2000, a bondi grâce à la demande croissante debatteries au lithium sur le marché des appareils électron-iques. Quand il a atteint son pic à 7500 $USD par tonne en2007, M. Galli développait un procédé d’extraction delithium avec Admiralty Resources, qui manquait toutefois de

Sur la route qui traverse la province argentine de Saltajusqu’à la frontière chilienne, le seul obstacle quiretarde la conduite sont les troupeaux de lamas, massés

çà et là sur les côtés.Il faut quatre heures pour faire le trajet de la capitale

provinciale Salta au Salar del Rincón – une étendue de rocheacérée brune et blanche de quelque 400 000 hectares. Il setrouve au cœur du « triangle du lithium » (voir encadré) qui– coincé entre les chaines de volcans andins à la jonction del’Argentine, du Chili et de la Bolivie – concentre la plupartdes salares d’Amérique du sud.

ADY Resources et sa société mère canadienne, Enirgi Group, sont en voie de récolterles fruits de dures années de labeur, de patience, de persistance et de développementtechnologique dans les lacs salés argentins – les salares. Ils souhaitent maintenantmettre un pied dans le marché mondial du lithium, grâce à la construction d’uneusine qui devrait produire 25 000 tonnes de carbonate de lithium dès 2017.

PAR PIERRICK BLIN ET ANTOINE DION-ORTEGA

PHOTOGRAPHIE PAR MICHEL HUNEAULT

Le marché des batteries rechargeables suscite un intérêt grandissant pour les salares riches en lithium du Chili,de la Bolivie et de l’Argentine, où ADY Resources développe son usine de production commerciale au

Salar del Rincón. Carlos Galli, directeur des opérations d’ADY (ci-dessus), explique le procédé de traitement.

Le Groupe Enirgi a consolidé les concessions du Rincón,un salar mature de quelque 1000 mètres de profondeurprésentant une concentration de lithium de 0,045 %, ce quiest inférieur à d’autres salares de classe mondiale telle l’Ata-cama (0,14 %), mais demeure plus élevé que beaucoupd’autres dans la région, et à un coût d’extraction moindre,selon Enirgi.

En 2011, Sentient a transféré la propriété et la direction deses actifs dans le lithium à sa filiale canadienne, le GroupeEnirgi – un geste précurseur pour le financement de la pre-mière expansion de l’usine.

La même année, Enirgi a lancé son usine pilote afin de raf-finer son procédé avant de passer à la production à plusgrande échelle. Les échantillons sont continuellement testéspour qu’ils répondent aux différentes spécifications desclients nord-américains, asiatiques, européens et argentins.Enirgi prévoit construire son usine commerciale en 2015 etlancer la production en 2017.

Un long nettoyageVu du ciel, un projet d’exploitation de lithium pourrait

être confondu avec une station balnéaire exotique, avec debelles piscines bleues et vertes creusées côte à côte au cen-tre d’un lac cristallin cerné de spectaculaires chaînes demontagnes.

Pour extraire la saumure pour l’usine pilote, ADY a creuséà un mètre de profondeur une série de tranchées de 30 par100 mètres, appelés étangs naturels, où la saumure suinte etse concentre. Par contre, pour pouvoir alimenter la futureusine de traitement à grand volume, il faudra creuser cinq àdix puits de 20 à 60 mètres pour pomper suffisamment desaumure. L’eau recueillie est envoyée dans les piscines, où lesoleil et le vent se chargeront d’accélérer le processus d’éva-poration, augmentant à chaque fois sa concentration enlithium. Une partie des minerais indésirables, moins sol-ubles, précipitent éventuellement et décantent au fond,exactement comme dans un verre d’eau saturé de sel etoublié sur le comptoir.

Le premier défi du processus de traitement, c’est le mag-nésium, que l’on extrait en grande partie avec de la chaux,avec lequel il précipite. Dans le processus original, le cal-cium et le magnésium restants se lient avec le sulfate desodium et sont ensuite pressés à travers un filtre, qui lescapture. Il en résulte de grands panneaux de gypse con-tenant de l’hydroxyde de magnésium. « C’est le résidu leplus dangereux du processus! », s’exclame Carlos Galli, lefils de Daniel Galli et le directeur général des opérationspour ADY Resources, en effritant le matériau de ses mainsnues. « Et ce n’est pas dangereux. » Cependant, dans l’usinecommerciale, le processus de filtrage sera amélioré de sortequ’on n’aura plus besoin du sulfate de sodium, ce quiréduira les coûts.

Enfin, on capture le lithium en chauffant la saumure à 90degrés Celsius et en y ajoutant du carbonate de sodium. Àcette température, le lithium remplace le sodium en se liant

financement pour aller plus loin. Mais le projet attirait déjàl’attention d’autres investisseurs.

Fin 2009, le projet a été acquis par le groupe privéaustralien Sentient, qui se spécialisait dans les ressourcesnaturelles. Le marché s’est depuis stabilisé à 5000 ou6000 $USD par tonne, avec une production mondiale rat-trapant rapidement la demande, qui atteint maintenantles 217 000 tonnes par an. La firme de recherche Roskillestime que le chiffre pourrait grimper à 238 000 dès2017. Si l’on ajoute l’annonce récente du fabricant auto-mobile Tesla, qui prévoit investir 5 milliards $USD dansune usine d’ici 2020, le potentiel de croissance sembleévident. À lui seul, le fabricant californien pourrait pro-duire plus de batteries au lithium que ce qui s’est produitmondialement en 2013.

« C’est une bonne nouvelle pour l’industrie, mais cela sig-nifie aussi que des décisions importantes attendent les pro-ducteurs si l’on veut que le “génie du lithium” sorte de labouteille », a commenté Wayne Richardson, président et chefde direction au Groupe Enirgi. « Dans la course pour appro-visionner les projets tels celui de Tesla, les producteursdoivent investir massivement dans la définition de leurressource – ceux qui ne le feront pas perdront au profit dessociétés ayant démontré des technologies tirant les coûts versle bas, des gisements durables et l’expertise pour acheminerleur produit sur le marché. »

Poussières de volcanLa richesse des salares provient des montagnes de la

région. « Le lithium est présent dans les roches volcaniquesenvironnantes, ignimbrite et tufs anormalement riches enlithium avec des taux pouvant atteindre 70 ppm », expliqueSergio Lopez, géologue consultant et gérant d’IMEX SaltaS.R.L. Depuis deux millions d’années, ces roches libèrent,sous l’effet de l’érosion, les minéraux qu’elles contiennent,dont les ions de lithium. Transportés par la pluie, ceux-civiennent terminer leur course dans ces vallées sans issue.Les minéraux s’accumulent ainsi et, sous l’effet de l’évapo-ration, se concentrent à des niveaux de l’ordre de 0,1 %.Dans ce mélange se retrouvent aussi le magnésium, lepotassium et le chlorure de sodium, qui finissent par for-mer un salar – une énorme éponge poreuse imbibée desaumure.

Chaque salar présente des caractéristiques uniques. Lesplus matures, dont la saumure présente une bonne concen-tration de minéraux, ont une couleur brune et une surface decristaux de sel extrêmement acérés, tandis que les plusjeunes ont une surface lisse, d’un blanc immaculé, et ressem-blent à de vastes patinoires.

Les producteurs dans le « triangle du lithium » cherchentles formations les plus poreuses, dont la saumure peut êtreaisément pompée, à la manière d’un réservoir de pétrole.L’homogénéité est également un atout. Enfin, de faibles con-centrations de magnésium sont préférables, car elles limitentle coût de séparation des éléments indésirables.


profil de projet | R I N C Ó N S A L A R

sera expédiée au Salar del Rincón au début de l’annéeprochaine pour être testée dans son nouvel environnement.Avec à la fois le processus et l’ingénierie, ADY s’assureraqu’elle peut rivaliser avec les acteurs mondiaux de la région,tels SQM et FMC, qui ont déjà des usines produisant 45 000et 23 000 tonnes par an respectivement. ICM

June/July 2014 | 61

R I N C Ó N S A L A R | profil de projet

au carbonate et précipite. Après séchage, on obtient du car-bonate de lithium, semblable au sel de table. « Le carbonatede lithium est en fait une manière sure et efficace de trans-porter le lithium métallique », affirme Carlos Galli.« L’ensemble du procédé permet de passer d’une concentra-tion de lithium de 0,045 % à la source à 18 % dans le pro-duit final. »

Dans ce procédé, le produit secondaire le plus abondantest le chlorure de sodium – du sel de table. Il n’est toutefoispas question d’écouler ce produit sur les marchés. Les com-munautés locales, d’où provient la majorité des 160employés de la société, produisent déjà du sel à partir dessalares depuis des siècles. Un compétiteur industriel à prox-imité serait fatal à leur marché artisanal. « Nous ne voulonspas leur nuire, et c’est pourquoi nous ne considérons pas lesel comme une opportunité d’affaires », dit Carlos.

Le produit finalADY produit trois types de carbonate de lithium, lequel

est exportés dans des sacs de 700 kg, la plupart du temps àdes fabricants de verre, de céramique et de batteries. Les car-bonates que produit ADY sont tous purs à 99 %, mais lacomposition du dernier 1 % d’impuretés varie en fonction duclient. Les producteurs de batteries sont particulièrementtatillons. « Pour les batteries d’automobiles, le niveau dequalité est beaucoup plus élevé », explique Carlos. « La con-centration [préférée] atteint 99,3 %, et même 99,5 %. Lesecret est dans la distribution des impuretés. » En plus dumagnésium, les impuretés comprennent le calcium, lesodium, le potassium et le bore. Bien que tous les clients del’industrie préfèrent un minimum d’impuretés, les produc-teurs de batteries ont des normes plus élevées que ceux duverre ou de la céramique. La « teneur batterie » nécessitedonc une étape de raffinage supplémentaire.

Cela fait maintenant sept ans qu’ADY améliore sonprocessus d’extraction. En 2012, après des investissementssubstantiels, ADY a produit ses premiers sacs de carbonatede lithium, augmentant progressivement sa production.L’objectif est de construire, d’ici 2017, une usine d’unecapacité de 25 000 tonnes, à un coût minimal de 200 mil-lions $US – et d’ainsi se hisser parmi les trois premiers pro-ducteurs mondiaux.

Étape par étapeL’usine pilote était primordiale pour optimiser le procédé

à l’essai : elle a démontré qu’il était nécessaire d’y apportercertains changements avant de se lancer dans une productionà grande échelle. « Elle est comme une petite école », illustreCarlos Galli. « Les étapes intermédiaires que nous traversonsen ce moment nous permettent de prendre notre temps, et debien faire les choses par la suite. »

C’est la raison pour laquelle Enirgi a décidé de construireune usine de démonstration pour valider son nouveauprocédé et démontrer qu’il est adapté à la production de vol-umes plus élevés. Construite à Sydney, en Australie, l’usine

Bien que le marché du verre et de la céramique compte encore pour plus dutiers de la demande de lithium, la promesse de croissance de l’industrie de lavoiture électrique est la principale motivation pour de nombreux investisseurs.

Un petit marché qui grandit viteComprenant le nord du Chili et de l’Argentine ainsi quele sud de la Bolivie, le « triangle du lithium » désigne unensemble de hauts plateaux andins arides où se retrou-vent un nombre impressionnant de salares à forte con-centration de lithium. Un rapport du Geological Surveyaméricain de 2014 estime que plus de 45 % desressources mondiales de lithium y sont situées. Le Chilià lui seul représente près de 33 % de la productionmondiale.

Le marché mondial du lithium a explosé en 2004.Pourtant, il demeure un marché négligeable, atteignantà peine le milliard $USD. Les exportations de lithiumdu Chili valent un peu plus de 200 millions $USD, cequi n’équivaut même pas à 0,5 % de ses exportationsde cuivre.

Sans compter que le lithium commence à être exploitéà partir des roches pegmatites granitiques. Au Québecseulement, deux mines de lithium sont déjà lancées, soitQuébec Lithium et Nemaska Lithium. « Il est encoreéconomique de produire à partir des salares, » affirmeSergio Lopez, géologue consultant et gérant d’IMEXSalta S.R.L. « Par contre, les coûts de production dulithium de roche baissent et pourraient éventuellementles concurrencer. »


Australia’s North Westregion is known for its succulent seafood.Rock lobsters, prawns,marron (large cray-fish), trout and barra-mundi are all caughtoff the coast. If you arethe more adventuroustype, you could try thecrocodile, kangaroo oremu served at manyrestaurants in the area.

Etcetera Restaurantis one of three diningoptions in the Kar-ratha InternationalHotel. Open sixnights a week, itsmain dishes range inprice from $20 to $40and are comple-mented by an exten-sive wine list anddessert menu. Therestaurant, accus-tomed to serving busi-ness travellers, cancater to groups aslarge as 60 people;bookings are recom-mended.

TRAVEL

By Tom DiNardo

Karratha, or “good country” in the local indigenous tongue, is the fastest growing cityin the Pilbara region of Western Australia. The town was established in 1969 afterHamersley Iron – now a subsidiary of Rio Tinto – purchased the land, in partnership

with the state government, to provide more housing for the iron ore ports in nearby Dampier.Since then, the town has flourished thanks to Hamersley Iron and Woodside’s North WestShelf project. The current population is around 20,000 in town, with a fly-in/fly-out (FIFO)population that fluctuates between 3,000 and 5,000. If you’re in Karratha on business, takesome time to explore North West Australia and enjoy the local culture. The rugged outbackbeckons with beautiful national parks, snorkelling and fishing, and thousand-year-oldaboriginal artefacts. If you prefer to stay downtown, Karratha boasts the largest shoppingcentre in the region. Either way, make sure to pack for warm weather. Even in the winter,the temperature rarely drops into the single digits.

Karratha

WHOTO CONTACT

CONSULATE OF CANADA, PERTH Tel.: 61 (8) 9322-7930 (Office hours: by appointment only)US CONSULATE GENERAL, PERTH Tel.: 61 (8) 6144-5100 (8:30 a.m.–4:30 p.m.). Email: [email protected] BAY HOSPITAL Millstream Road, Karratha WA 6714, 61 (8) 9143-2333, Emergency Contact Fire/Police/Ambulance 000

Blanche Barfeatures atapas menuwith smalldishes pricedat around $8and offers a warm,friendly environment.For those who prefersomething more sub-stantial than tapas,larger dishes are alsoavailable. Try theMediterranean paellawith chicken andseafood that servestwo for $60. The surf& turf with lamb cut-lets and local barra-mundi sells for $47.

The restaurant scenein Karratha is improv-ing, but niche options

Located downtown, ibis Styles Karratha is idealfor professionals in town on business. The hotelhas a bar, restaurant, outdoor swimming pooland barbecue area, with rooms starting at $210.The luxurious Karratha International Hotel islocated minutes from the commercial districtwith rates beginning at $220. The hotel includesthree restaurants, meeting rooms available forguests and an outdoor pool surrounded by trop-ical gardens.

For an interesting alternative, The Ranges Kar-ratha is a four-star resort only 1.5 kilometres

from the central business district,with 41 one-bedroom, ranch-

inspired apartments startingat around $260. Each

apartment is equippedwith a king-size bed,kitchen, living area,bathroom and pri-vate balcony. Theneighbouring gardens

and large pool areserene spots to unwind

after a long day.

TIP

Temperatures in winter days may hover

around 26 C but drop to a cooler 10 C at night, so dress

appropriately when heading out for the evening.

Be advised that some restaurants and cafés

prohibit high-visibility clothing, so check with the establishment beforehand.

WHERE TO DINE

can still be lacking. Soif you’re in neighbour-ing Point Samson, a56-kilometre (km)drive from Karratha,take a client to Tata’s Restaurant.There you will findlocal seafood disheslike the Samson Reefwith salmon, oysters,prawns and babysquid for $65 or inter-esting twists on classics like the Viet-namese chicken saladfor $20.

WHERE TO STAY

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mailto:[email protected]

June/July 2014 | 63

Luckily, Karratha has a local commercial airportthat is roughly 15 km from downtown. Flyingfrom North America can take anywhere between30 to 50 hours and can cost as little as $2,500round trip, although you’ll have to deal with twoor three layovers each way. If you have time tospare, consider making Perth your flight destina-tion and take a few days to drive the 16 hoursalong the coral coast of West Australia to Karratha.

The Pilbara region can be difficult to navigate without access to a car.There is a community bus service that runs between towns but it is onlyavailable four days a week; taxi services are known to be unreliable.Your best bet is to rent a car during your stay. Karratha Airport has carsavailable for hire from familiar rental agencies such as Hertz, Avis andAlamo.

WHERE TO EXPLORE

HOW TO GET THERE

If you are a naturenut, you’re in luck:hiking, fishing andsnorkelling are allwithin driving dis-tance of Karratha. Forthose interested inlocal history, walk onthe Jaburara Her-itage Trail for a self-guided tour of thearea. The walk coversKarratha’s past andyou will meander byaboriginal rockengravings and arte-facts at various sitesalong the way. It alsooffers lookouts ofKarratha and the sur-rounding region. Thehike does includesome steep hillclimbs and will takeroughly three hoursto complete, so anelevated fitness levelis recommended. TheDampier Archipel-ago, off the coast ofDampier, a 20-minute drive fromKarratha, comprises42 picturesqueislands, 25 of which

are part of theDampier ArchipelagoMarine Park. Keep aneye out for dugongand bottlenose dol-phins; these mam-mals are usuallyspotted around thearchipelago, which isalso a gathering placefor humpback whalesbetween July andSeptember. Turtlesuse the beaches tonest from Septemberto April, and 26 dif-ferent species ofseabirds can be spot-ted throughout theislands. Gorgeousreefs around theislands make for greatsnorkelling and div-ing spots.

An hour and a halfdrive south from Karratha will bringyou to Millstream-Chichester NationalPark – a tropicaloasis in the middle ofthe desert withgorges and naturalpools. Keep driving

south and you’llreach the KarijiniNational Park. Here,100-metre chasmsand waterfalls inviteexplorers. If you’re inKarratha betweenMarch and October,head to HearsonsCove to see the Stair-

case to the Moon.This natural phe-nomenon is causedby the rising of thefull moon reflectedoff the mudflats atlow tide on certainnights during theAustralian winter,creating the optical

illusion of stairs lead-ing to the low-hang-ing moon.

Wen

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ongo

TIPWhen driving

between towns in the Pilbara region, make sure you are well equipped as the drivescan be long with few rest areas.

Bring a first-aid kit, extra food, gas and plenty

of water.

GETTING AROUND

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1. Staircase to the Moon,Roebuck Bay, Broome

2. Karijini National Park 3. Dampier Archipelago.

An Introduction to Cutoff Grade: Theory and Practice in Open Pit and Underground Mines (with a new section on blending optimization strategy)Cutoff grades are essential in determining the economic feasibility and mine life of a project. Learn how to solve most cutoff grade estimationproblems by developing techniques and graphical analytical methods, about the relationship between cutoff grades and the design of pushbacks inopen pit mines, and the optimization of block sizes in caving methods.INSTRUCTOR Jean-Michel Rendu, USA • DATE September 3-5, 2014 • LOCATION Montreal, Quebec, Canada

Geostatistical Mineral Resource Estimation and Meeting the New Regulatory Environment: Step by Step from Sampling to Grade ControlLearn about the latest regulations on public reporting of resources/reserves through state-of-the-art statistical and geostatistical techniques; howto apply geostatistics to predict dilution and adapt reserve estimates to that predicted dilution; how geostatistics can help you categorize yourresources in an objective manner; and how to understand principles of NI 43-101 and the SME Guide.INSTRUCTORS Marcelo Godoy, Newmont Mining, Denver; and Roussos Dimitrakopoulos, McGill University, Canada • DATE September 8-12,2014 • LOCATION Montreal, Quebec, Canada

Quantitative Mineral Resource Assessments: An Integrated Approach to Planning for Exploration Risk ReductionLearn about exploration risk analysis for strategic planning. Understand how to demonstrate how operational mineral deposit models can reduceuncertainties; make estimates of the number of undiscovered deposits; and integrate the information and examine the economic possibilities.INSTRUCTORS Don Singer, USA; and David Menzie, U.S. Geological Survey, USA • DATE September 29-October 1, 2014 • LOCATION Montreal, Quebec, Canada

Strategic Risk Management in Mine Design: From Life-of-Mine to Mining ComplexesLearn how you can have a significant, positive impact on your company’s bottom line by utilizing strategic mine planning methodologies and software;improve your understanding of strategic mine planning and life-of-mine optimization concepts, as well as your understanding of the relationship ofuncertainty and risk, and how to exploit uncertainty in order to maximize profitability. Note: The strategic mine planning software used is Whittle.An optional half-day skills refresher workshop on Whittle may be available.INSTRUCTORS Tarrant Elkington, Snowden, Australia; and Roussos Dimitrakopoulos, McGill University, Canada • DATE October 15-17, 2014 • LOCATION Montreal, Quebec, Canada

June/July 2014 | 65

CIM community

CIM Convention 2014 organizers and volunteers couldnot have asked for a better week: the sun was shining,attendance records were broken and, with the diversity

of presentations and delegates from 49 countries, the eventtruly illustrated that Mining is 4 Everyone.

Patty Moore, convention general chair, said she was reallypleased with the early numbers. “We’re more than 7,000[attendees] and we had 1,268 delegates, which I believe breaksa record,” she said on site. This was confirmed after the event,which took place from May 11 to 14.

L es organisateurs et les bénévoles du congrès 2014 de l’ICMn’auraient pas pu demander mieux comme semaine : le soleilbrillait, la fréquentation a atteint un niveau record et, grâce à

la diversité des présentations et des délégués de 49 pays, l’événementa vraiment montré que l’exploitation minière est pour tout le monde.

Patty Moore, présidente générale du congrès, s’est dite vraimentsatisfaite des premiers chiffres. « Nous sommes plus de 7 000 [partici-pants] et nous avons accueilli 1 268 délégués, ce qui établit un record,je crois », a-t-elle dit sur place. Cette affirmation a été confirmée aprèsla clôture de l’événement, qui s’est tenu du 11 au 14 mai.

The opening plenary was moderated by CBC journalist Mark Kelley and featuredTed Thomas, special advisor with the Devonshire Initiative, Alice Wong, Camecochief corporate officer, Eira Thomas, CEO and president of Kaminak Gold and

Oumar Toyugeni, Iamgold’s regional vice-president of West Africa.

La plénière d’ouverture était animée par le journaliste de CBC Mark Kelley etcomptait parmi ses invités Ted Thomas, conseiller spécial pour l’Initiative

Devonshire; Alice Wong, chef de la direction corporative à Cameco; Eira Thomas, présidente et chef de direction à Kaminak Gold,

et Oumar Toyugeni, vice-président régional pour l’Afrique de l’ouest à Iamgold.

All photos: Jon Benjamin Photography

RECORD-BREAKING ATTENDANCECIM Convention 2014 proves that Mining is 4 Everyone

UN TAUX DE PARTICIPATION RECORD QUI DIT TOUTLe congrès 2014 de l’ICM prouve que l’exploitation minière est pour tous

By CIM Magazine staff | Par le personnel du CIM Magazine

A learning momentAs out-of-town delegates and attendees arrived in Vancou-

ver for CIM’s annual flagship event, the Vancouver ConventionCentre was already bustling with activity. M4S (Mining forSociety) CIM’s popular educational show, opened to the public

Une leçonAu moment où les délégués et participants de l’extérieur arrivaient

à Vancouver à l’occasion de l’événement-phare annuel de l’ICM, leVancouver Convention Centre fourmillait déjà d’activité. La populaireexposition éducative M4S (Mining for Society) de l’ICM a ouvert ses


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on Sunday, with participants engaged in interactive activitiesthat detailed the entire mining cycle. Roughly 70 exhibitsspread throughout seven pavilions focused on best practices inthe mining industry, with an emphasis on how mining relatesto everyday life.

The interactive event, which welcomed more than 2,900participants, was also open to local schools, with students,aged eight through 18, taking part in the fun and the learningexperience. Natalie Roberts brought her grade 7 class from HDStafford Middle School in Langley, B.C. This was the first yearshe decided to organize a fieldtrip to M4S and her studentsloved the interactive activities. “It’s a great opportunity forhands-on learning,” said Roberts.

“It’s really neat!” exclaimed Lauryn, one of Roberts’s stu-dents, whose favourite part of the event was using an opticalcommunications system simulator at the Penguin ASI booth.

While young people learned the ins and outs of the indus-try, mining professionals got to delve deeper into a wide varietyof subjects at nine workshops held on Sunday. Topics rangedfrom explaining new rules under NI 43-101 to dust control toadvice on gaining and retaining social licence, allowing partic-ipants to improve their knowledge in these areas and learnfrom subject matter experts.

Planning for the futureAll the while, CIM’s brain trust was busy fleshing out the

details of its strategic outreach initiative at its inaugural Lead-ership Congress. This event brought the organization’s execu-tive and national staff together with branch and societyleaders. On the table: the future of CIM activities and how theycan meet the needs of the institute’s members.

The roughly 50 congress participants discussed the sixgoals that came from membership surveys and round tabletalks with districts and societies over the last year. CIM leadersdebated the institute’s priorities and what sorts of activities theorganization should pursue to achieve its goals. Outgoingpresident Bob Schafer said he hoped the new strategic planwould be adopted at the next CIM Council meeting in August.

But the implementation of this plan will fall to CIM’s newlyminted president, Sean Waller, president of Candente CopperCorp., who was inducted at the Annual General Meeting.

CIM’s financials were also presented at the meeting, withoutgoing affable finance chair Michael Cinnamond painting ahealthy picture of CIM’s purse, indicating that although CIM

portes au public le dimanche; les participants se sont intéressés à desactivités interactives expliquant en détail le cycle minier. Quelque70 expositions réparties dans sept pavillons ont mis l’accent sur lespratiques exemplaires dans l’industrie minière, plus particulièrementsur l’application de cette dernière au quotidien.

L’événement interactif, qui a attiré plus de 2 900 participants, étaitaussi accessible aux écoles locales. Des élèves de 8 à 18 ans ont prispart au plaisir et à l’expérience d’apprentissage. Natalie Roberts avaitamené sa classe de septième année de l’école intermédiaire HD Staf-ford de Langley, en Colombie-Britannique. Il s’agissait de la premièrevisite de M4S qu’elle organisait, et ses élèves ont adoré les activitésinteractives. « C’est une excellente occasion d’apprentissage pra-tique », a résumé Mme Roberts.

« C’est vraiment intéressant! », s’est exclamée Lauryn, une desélèves de Mme Roberts, pour qui le clou de la sortie a été le simulateurde système de communication par fibre optique au kiosque de Pen-guin ASI.

Pendant que les jeunes apprenaient les tenants et les aboutissantsde l’industrie, les professionnels du secteur ont pu approfondir unvaste éventail de sujets au cours de neuf ateliers tenus le dimanche.Les sujets allaient des nouvelles règles en vertu de l’instrument NI 43-101 au contrôle des poussières, en passant par des techniques decommunication destinées à obtenir et à conserver l’aval des collecti-vités locales; et ont permis aux participants d’améliorer leurs connais-sances dans ces domaines et d’apprendre d’experts techniques.

Planifier l’avenirPendant ce temps, l’état-major de l’ICM s’affairait à étoffer son ini-

tiative d’intervention stratégique à son premier congrès des diri-geants. Cet événement a rassemblé la direction de l’organisation et lepersonnel national ainsi que les dirigeants des sections et des socié-tés. Au programme : que réserve l’avenir aux activités de l’ICM et com-ment l’Institut peut-il répondre aux besoins de ses membres.

Les quelque 50 participants au congrès ont parlé des six objectifsdégagés des sondages auprès des membres et lors des tables rondesavec les districts et les sociétés au cours de la dernière année. Les diri-geants de l’ICM ont discuté les priorités de l’Institut et le type d’activi-tés que l’organisation devrait envisager pour atteindre ses objectifs. Leprésident sortant, Bob Schafer, a dit espérer que le nouveau plan stra-tégique serait adopté à la prochaine assemblée du conseil d’adminis-tration de l’ICM, en août.

Mais la mise en œuvre de ce plan reviendra au nouveau présidentde l’ICM et président de Candente Copper Corp., Sean Waller, qui a étéintronisé lors de l’assemblée générale annuelle.

Les états financiers de l’ICM ont également été présentés à laréunion, où l’affable directeur des finances sortant, Michael Cinna-mond, a tracé un portrait de la santé de la bourse de l’ICM. Il a indiquéque, malgré une perte projetée de 200 000 $ en 2013, l’ICM a en faitréalisé un surplus de 47 000 $.

OuvertureSur cette bonne nouvelle, les délégués sont allés prendre un verre

et revoir de vieux amis, ou s’en faire de nouveaux, à la réception orga-nisée conjointement par les sociétés d’exploitation minière souter-raine et à ciel ouvert. L’attention s’est ensuite portée sur la réception

(top left, clockwise): 1) M4S (Mining for Society) brought in nearly 3,000 students 2) Panning for gold with Yukon Dan. Students and teachers explored the impact thatmining has on society at the M4S show. 3 and 5) More than 500 exhibitors showedoff their goods on the sold-out Expo! Floor. 4) Student Poster Program 6) Attendeesdanced the night away at the Joy Global Gala.

1) Presque 3 000 étudiants et enseignants se sont rendus au Vancouver ConventionCentre pour en apprendre davantage sur l’industrie minière et sur le rôle importantdes minéraux dans la société. 2) Yukon Dan, spécialiste en lavage d’or à la batée. 3 et 5) Les plus de 500 fournisseurs, sociétés et consultants de l’industrie minièrereprésent ont présenté leurs produits sur le salon commercial de l’EXPO! 4) Affichesdes étudiants 6) Les participants ont dansé toute la nuit au Gala Joy Global.

had budgeted for a loss of $200,000 in 2013, it had actuallyturned a $47,000 surplus.

Opening upOn that positive note, delegates set off to enjoy a drink and

to see old – and meet new – friends at the Surface and Under-ground Mining Societies’ reception, which was being hostedjointly by the two societies. The attention then turned to theSMS Equipment and Komatsu opening reception that startedoff the convention with a bang – literally. After SMS Equip-ment president and CEO Bruce Knight and other CIM digni-taries welcomed guests, Schafer was called to the dais.Channelling his inner Wile E. Coyote, he pushed down a trig-ger that ignited an impressive pyrotechnic display of Queen’s“We Will Rock You,” which culminated in a gigantic boomheard throughout the convention centre.

With adrenaline flowing, the Expo! floor was opened. Morethan 500 mining company suppliers, equipment manufacturers,technology and service providers, and consultants showed offtheir wares. Patricia Ceron, marketing manager from DassaultSystèmes Geovia, said she was busy on the floor: “Generally, we

d’ouverture de SMS Equipment et Komatsu, qui a inauguré le congrèsavec grand éclat. Littéralement. Après que le président et chef de ladirection de SMS Equipment, Bruce Knight, et d’autres dignitaires del’ICM eurent souhaité la bienvenue aux invités, M. Schafer a été appeléà monter sur le podium. S’inspirant de Wile E. Coyote, il a appuyé surun détonateur qui a déclenché un spectacle pyrotechnique impres-sionnant sur l’air de « We Will Rock You », de Queen, qui s’est conclu parun énorme boum qu’on a pu entendre dans tout le palais descongrès.

C’est sur cette poussée d’adrénaline que le salon Expo! a ouvertses portes. Plus de 500 fabricants d’équipement, fournisseurs de tech-nologies et de services et consultants ont mis leurs produits enmontre. Patricia Ceron, directrice du marketing de Dassault SystèmesGeovia, a dit être très occupée à l’exposition : « Généralement, nousparlons à des ingénieurs principaux, à des gestionnaires et à des direc-teurs financiers. Tout s’est très bien passé. »

Mines pour tous : l’assemblée plénièreLe lundi matin, plus de 600 professionnels du secteur minier ont

assisté à l’assemblée plénière « Mining 4 Everyone », sur le thème del’exploitation minière pour tous, où le modérateur, le journaliste de la


CIM community

Western District Distinguished Service AwardPatty Moore, Vancouver, BCCIM Distinguished LecturersKen Thomas, Oakville, ONJanice Zinck, Ottawa, ONJoseph Ringwald, New Westminster, BCBen Chalmers, Ottawa, ONRoss Gallinger, Toronto, ONCIM FellowshipDonald Gallienne, Sept-Îles , QCDonald P. Leroux, Québec, QCHani Mitri, Montreal, QCKenneth S. Coley, Hamilton, ONMichael J. Collins, Fort Saskatchewan, ABJohn Goode, Toronto, ONDouglas James Kramble, Saskatoon, SKTony Lipiec, Vancouver, BCIan Orford, Vancouver, BCMalcolm E. Robb, Yellowknife, NTTerence F. Bowles, Verdun, QCVale Medal for Meritorious Contributions to MiningRoss Beaty, Vancouver, BCMacParland Memorial Award for Excellence in Maintenance,Engineering and ReliabilityAndré Lemay, Sudbury, ONMel W. Bartley Outstanding Branch AwardCIM GTA West Branch, Oakville, ONCIM Community Service AwardAllan D. Akerman, Sudbury, ONCIM Presidents’ Role Model MedalCatharine Shaw, Toronto, ON

CIM AWARD WINNERS |LES GAGNANTS DES PRIX D’EXCELLENCE DE L’ICM

CIM awards gala | Gala de remise des prix de l’ICM

A.O. Dufresne Exploration Achievement AwardDavid Palmer, Toronto, ONBarlow Medal for Best Geological PaperJim Oliver, Kamloops, BCJohn Ayer, Sudbury, ONBenoît Dubé, Quebec, QCRoger Aubertin, Gatineau, QCMike Burson (posthumous)Gerald Panneton, Toronto, ONRichard Friedman, Vancouver, BCMike A. Hamilton, Toronto, ONCIM Distinguished Service MedalDonald R. Lindsay, Vancouver, BC

are talking to senior engineers, managers and CFOs. It hasbeen great.”

Mining 4 Everyone: the plenaryOn Monday morning, more than 600 mining professionals

attended the “Mining 4 Everyone” themed plenary session,where moderator and CBC journalist Mark Kelley was frank toattendees when addressing diversity in mining and its reputa-tion in general: “I would humbly say that you have an imageproblem.”

But, as panelists illustrated, the reputation in part comesfrom incomplete and uncoordinated communication with thepublic. As Rio Tinto Canada regional vice-president and newlyannounced CIM incoming president-elect, Virginia Floodnoted: “We give ourselves an image that mining is only aboutextraction and engineering. Many don’t connect improving liv-ing standards to mining.”

Mining is indeed the largest employer of aboriginal Canadi-ans and it generates business opportunities for residents inremote communities, where employment is often lacking.Oumar Toyugeni, Iamgold’s regional vice-president of West

CBC Mark Kelley, s’est adressé franchement aux participants sur lespoints de la diversité de l’industrie minière et de sa réputation engénéral : « Je dirais en toute humilité que vous avez un problèmed’image. »

Mais, comme les panélistes l’ont illustré, cette réputation est enpartie le fait d’une communication fragmentaire et non coordonnéeavec le public. En tant que vice-présidente régionale de Rio TintoCanada et future présidente de l’ICM, Virginia Flood a fait cetteremarque : « Nous projetons cette image où l’industrie minière selimite à l’extraction et au génie. Bon nombre ne voient pas le lien entrel’amélioration du niveau de vie et l’exploitation minière. »

Les mines sont le plus grand employeur d’autochtones au Canadaet génèrent des occasions d’affaires pour les habitants des régionséloignées, où les emplois sont souvent rares. Au dire d’Oumar Toyu-geni, vice-président régional d’Iamgold pour l’Afrique de l’Ouest, sacompagnie tente d’engager localement le plus possible, ce qui réduitle recours aux employés expatriés et, du même coup, la perceptionqu’un projet donné ne profite qu’à des étrangers.

Cameco adopte cette pratique à ses mines d’uranium de l’Austra-lie et du nord de la Saskatchewan; c’est le plus grand employeur d’au-tochtones du secteur privé au pays. Mais Alice Wong, cadre principale

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Robert Elver Mineral Economics AwardJohn R. Ing, Toronto, ONJ.C. Sproule Northern Exploration AwardKaminak Gold Discovery Team, Vancouver, BCJohn T. Ryan Safety Trophy - Metal minesWilliams Operating Corporation - Williams Mine, Marathon,ONJohn T. Ryan Safety Trophy - Metal minesCameco Corporation - McArthur River Mine, Saskatoon, SKJohn T. Ryan Safety Trophy - Select MinesPotashCorp - New Brunswick Division, Sussex, NBJohn T. Ryan Safety Trophy - Select MinesGraymont Inc. - Usine de Bedford, Bedford, QCJohn T. Ryan Safety Trophy - Select MinesGraymont Western Canada Inc. - Faulkner Operation,Faulkner, MBJohn T. Ryan Safety Trophy - Coal MinesTeck Coal Ltd. - Greenhills Operations, Elkford, BCSyncrude Award for Excellence in Sustainable DevelopmentMichael P., Sudbury, Oakville, ONBedford Award, Mark Sitter, Toronto, ONPeter Xavier, Skead, ONDavid Bernier, Timmins, ONSteven Bowles, Montreal, QC

Mining Engineering Outstanding Achievement AwardBHP – Jansen Shaft Development Team, Saskatoon, SKTSM Community Engagement AwardIAMGOLD Corporation, Dakar-Fann, SenegalTSM Environmental Excellence AwardSyncrude Canada Ltd., Fort McMurray, ABHatch-CIM Mining and Minerals Project Development SafetyAwardTeck Highland Valley Copper Mill Optimization Project, LoganLake, BCHR Diversity AwardTeck Resources LtdCIM Leading in MiningBarbara Kirby, Ottawa, ONChristy McDonough, Saskatoon, SKJean Vavrek, Montreal, QCScott Martin, Vancouver, BCMarie-Hélène Thomas, Cochrane, ONNatalie Warman, Toronto, ONThomas Davidson, Fernie, BC

WANT TO PUT A FACE TO THE NAME? VISIT WWW.CIM.ORG TO READ PROFILES OFTHE 2014 CIM AWARD WINNERS | VISITEZ LE WWW.CIM.ORG POUR CONSULTER LES

HISTOIRES DES GAGNANTS DES PRIX D’EXCELLENCE DE L’ICM 2014.


CIM community

Africa, said his company tries to maximize local hires, whichreduces ex-pat employment and, along with it, the perceptionthat a project is only benefitting foreigners.

Cameco follows this practice at its Australian and northernSaskatchewan uranium operations, as the largest private abo-riginal employer in the country. But Alice Wong, Cameco’schief corporate officer, said there is definitely more work to bedone: “We need to move them on into technical jobs and man-agement jobs.”

Ted Thomas, special advisor with the Devonshire Initia-tive, spoke about how small and early misunderstandingsbetween companies and communities can blow up to becomedisputes or conflicts. He referenced a Harvard paper thatpegged the costs of daily dispute delays at $10,000 for alucrative exploration project and $3 million for a mid-sizedproducing operation.

Kaminak Gold has recognized this, considering earlyengagement with communities a no-brainer. With its CoffeeGold project in Yukon, Eira Thomas, CEO and president, saidthe company signed an exploration cooperation agreementwith the Tr’ondëk Hwëch’in First Nation which included com-mitments to communicate potential project impacts, investi-gate local business opportunities at the exploration stage, andallow the community members to have a say in the design ofthe environmental assessment baseline studies.

Dirk Claessens, IBM’s vice-president of industrial sectorgrowth, gave attendees some tangible ways that miners couldgauge public sentiment and promote the industry during hisopening remarks. “Technology allows you not only to read theinformation around you, but understand what [local residentsare] saying, so you can do something with it,” he said.

Internationally knownThe plenary session was available live online for the second

year and around 100 people streamed the event. Conventiondelegates came from all over the world too. Roughly 75 repre-sentatives, made up mainly of local businesspeople fromGuinea, Burkina Faso, Senegal, and Côte d’Ivoire, looked toidentify Canadian suppliers to integrate into their supply chainat the event. International delegations from Latin America andMongolia also attended. Rafiou Oyeossi, director general ofSparex, a central purchasing department for the materialsindustry in Côte d’Ivoire, came to the convention in the hopesof finding potential equipment suppliers for his clients in WestAfrica. “I think here we’re going to find our procurement solu-tion,” he said.

Getting technicalAnswers to many unique operational or philosophical

questions were to be found at one of the more than 40 techni-cal program sessions offered. This year’s lineup was brokendown into six different streams: global dimensions of mining;innovations; harnessing our diverse world; construction toproduction; managing operations from mine to mill; and rockengineering.

de Cameco, affirme qu’il y a encore du pain sur la planche : « Nousdevons leur faire occuper des postes techniques et de direction. »

Ted Thomas, conseiller spécial de Devonshire Initiative, a expliquécomment de petits malentendus entre les sociétés et les collectivitésau début du processus peuvent vite prendre des proportions conflic-tuelles, voire contentieuses. Il a fait référence à un article d’Harvard quiévaluait le coût quotidien des retards causés par un litige à 10 000 $pour un projet d’exploration lucratif et à 3 millions de dollars pour unemoyenne entreprise.

Kaminak Gold l’a compris et considère que l’implication des collec-tivités à l’aube d’un projet va de soi. Avec le projet Coffee Gold auYukon, Eira Thomas, chef de la direction et présidente, dit que sonentreprise a signé avec la Première Nation des Tr’ondëk Hwëch’in uneentente de coopération à l’exploration qui inclut la promesse de com-muniquer les retombées potentielles du projet; d’étudier les occasionsd’affaires locales à l’étape de l’exploration; et de permettre auxmembres de la communauté d’avoir leur mot à dire dans la concep-tion des études environnementales préliminaires.

Dans ses propos d’introduction, Dirk Claessens, vice-président de lacroissance du secteur industriel d’IBM, a donné aux participants desoutils concrets pour évaluer l’opinion publique et faire la promotionde l’industrie. « La technologie nous permet non seulement de lire l’in-formation qui nous entoure, mais aussi de comprendre ce que [leshabitants] disent, de façon à pouvoir utiliser cette information », dit-il.

Renommée internationalePour la deuxième année, l’assemblée plénière était diffusée en ligne

en direct, et une centaine de personnes ont pu assister à l’événementen transit. Les délégués au congrès étaient venus de partout dans lemonde. Environ 75 représentants présents à l’événement, principale-ment des gens d’affaires de la Guinée, du Burkina Faso, du Sénégal etde la Côte d’Ivoire, cherchaient des fournisseurs canadiens à intégrer àleur chaîne d’approvisionnement. Des délégations de l’Amérique latineet de la Mongolie étaient aussi de la partie. Rafiou Oyeossi, directeurgénéral de Sparex, un service d’approvisionnement centralisé pour l’in-dustrie des matériaux de la Côte d’Ivoire, est venu au congrès avec l’es-poir de trouver des fournisseurs d’équipement pour ses clientsd’Afrique de l’Ouest. « Je pense que nous trouverons ici la solution ànos besoins d’approvisionnement », a-t-il dit.

Sur le plan techniqueOn a aussi pu trouver réponse à de nombreuses questions opéra-

tionnelles et philosophiques uniques à l’une des plus de 40 séancestechniques offertes. Cette année, le programme était divisé en sixvolets : les dimensions mondiales de l’exploitation minière; l’innova-tion; l’exploitation de notre monde diversifié; le processus de laconstruction à la production; la gestion de l’exploitation de la mine aubroyeur; et la mécanique des roches.

Le programme technique comprenait également un symposiumsur l’éthique dans l’exploitation minière. Candace Ramcharan, deRio Tinto Fer et Titane, était au nombre de plusieurs conférenciers quise sont attardés sur le sujet des partenariats équitables avec les collec-tivités. Les relations individuelles définissent souvent les partenariatsentre les sociétés minières et les collectivités locales, et la rotationinévitable du personnel des mines signifie que ces relations pré-

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(from top left, clockwise): 1) The Expo! floor 2) Taking in the technical sessions 3) Mining Association of British Columbia President and CEO Karina Briño delivers the keynoteaddress at the closing luncheon. 4) Goldcorp’s Christine Marks delivers the keynote speech at the Women in Mining reception. 5) Networking between sessions 6) The CIMclosing luncheon was held in conjunction with the Vancouver Board of Trade.

1) Le salon Expo! 2) Une session du programme technique 3) Karina Briño, présidente et chef de direction à l’Association minière de Colombie britannique, prononce sondiscours liminaire lors du déjeuner de clôture. 4) Christine Marks, de Goldcorp, prononce son discours liminaire à la réception de Women in Mining 5) Réseautage entre lesséances 6) Le déjeuner de clôture de l’ICM s’est tenu en compagnie de la Chambre de commerce de Vancouver.

The technical program also included an ethics in miningsymposium. Rio Tinto Fer et Titane’s Candace Ramcharan wasone of several speakers who focused on the topic of equitablepartnerships with local communities. Individual relationshipsoften define partnerships between mining operations and localcommunities, and the inevitable staff turnover at mine sitemeans that those valuable relationships are easily undone. Toguarantee continuity, Ramcharan said, good governance has tobe in place to ensure connections are not lost. Operations musthave people who will be champions of the partnerships, andshe stressed those “champions must be deeply convinced ofthe value of the partnerships.”

Women in miningOn Tuesday, more than 400 attendees gathered for the

Women in Mining Reception to discuss barriers holdingwomen back from careers in the industry and how to breakdown those walls.

Christine Marks, Goldcorp’s director of corporate com-munications, spoke about the company’s “Creating Choices”program in her keynote speech. Four years ago, Goldcorpdeveloped the program to train, develop and mentor womenin the company. In the three years since its launch, CreatingChoices has graduated more than 1,000 women to muchsuccess.

Student timeThe convention also helped students connect with potential

mentors and even try to land jobs, as part of its student pro-gram and job fair. At the Student-Industry Luncheon, youngprofessionals got a chance to chat with mining professionalsand company recruiters, while also listening to helpful tips onhow to stand out from other recruits.

Talking moneyThe convention’s technical program closed off on Wednes-

day with the Management and Finance Day that featured talks,

cieuses se défont facilement. Pour assurer la continuité, selonMme Ramcharan, on doit mettre en place une bonne gouvernanceafin de veiller à ce que ces liens ne soient pas coupés. Les entreprisesdoivent pouvoir compter sur des employés qui se feront les cham-pions de ces partenariats; et, a-t-elle souligné, « ces champions doiventêtre fermement convaincus de la valeur des partenariats ».

Les femmes dans les minesLe mardi, plus de 400 personnes étaient rassemblées à la réception

de Women in Mining pour parler des obstacles qui freinent l’avance-ment des femmes dans l’industrie et des façons de les abattre.

Christine Marks, directrice des communications d’entreprise deGoldcorp, a parlé du programme « Creating Choices » dans son dis-cours d’ouverture. Il y a quatre ans, Goldcorp a créé le programme afinde former, de perfectionner et de conseiller les femmes dans l’entre-prise. Au cours des trois années qui ont suivi le lancement de Crea-ting Choices, plus de 1 000 femmes ont complété le programme avecgrand succès.

Le tour des étudiantsLe congrès a également aidé les étudiants à établir des liens avec

des mentors potentiels et même à essayer de trouver un emploi, puis-qu’une partie du programme à leur intention est une foire de l’emploi.Au dîner-causerie des étudiants et de l’industrie, les jeunes profession-nels ont eu la chance de s’entretenir avec des professionnels de l’in-dustrie minière et des recruteurs, tout en obtenant des conseils utilespour se démarquer des autres candidats.

Questions d’argentLe programme technique du congrès s’est conclu le mercredi par

la Journée gestion minière et finance, qui comprenait des discussions,des présentations et une table ronde sur des sujets tels que la dili-gence raisonnable adéquate, la gestion du risque, l’analyse du marchéet des produits de base, et les tendances en matière d’investissements.

Gordon Bogden, chef de la direction d’Avanti Mining, a commencésa présentation avec de mauvaises nouvelles sur les tendances enmatière de financement minier et les problèmes d’accès au capital.« Dans le climat économique actuel, il est très difficile pour les sociétésminières d’obtenir des fonds, puisque les sources habituelles de finan-cement par emprunt et par actions s’épuisent peu à peu », a-t-il dit,avant de rappeler avoir fait cette même déclaration au congrès del’ACPE il y a 15 ans.

L’hybride, pas seulement pour les véhiculesQuand on lui a demandé ce que les participants de toutes les caté-

gories pourraient retenir, Lise Bujold, directrice des congrès et dessalons de l’ICM, a répondu ceci : « La technologie nous a permis d’en-richir l’expérience pour tout le monde, pour les participants sur placecomme à distance. Pendant le congrès, la conversation sur les médiassociaux, le partage de photos, l’utilisation de l’application mobile par1 500 personnes et la diffusion en direct des séances ont concouru àproduire un événement hybride puissant avec une lunette vers l’exté-rieur et vers l’intérieur. Du coup, le besoin de papier et de documentsimprimés s’en trouve réduit. »

CIM community

The popular Management and Finance day. / La journée Finance et gestion minière.


Les mines, la fondation de la vie desCanadiens

Des représentants de l’industrie minière et d’industries connexesse sont rassemblés à l’occasion du dîner-causerie de clôture ducongrès de l’ICM organisé avec le Vancouver Board of Trade.Karina Briño, présidente et chef de la direction de la Mining Associa-tion of British Columbia et conférencière de marque, a parlé de l’im-portance de l’exploitation minière dans la vie de tous les jours, de latechnologie à l’infrastructure. En tant que représentante d’unemployeur important de la province, elle a également abordé lesavantages de l’industrie minière pour l’économie de la Colombie-Bri-tannique. « Nous voulons transmettre un message ferme et positif », adit Mme Briño. « Travaillons ensemble pour assurer la croissance de l’in-dustrie minière. »

Du plaisir à la tonneBien entendu, le congrès n’était pas qu’affaire de perfectionne-

ment professionnel, de négociations et de transactions commerciales,et de réseautage. Les nombreux événements sociaux, cinq à sept etréceptions de la semaine ont permis aux grands travailleurs de s’amu-ser un peu. Le gala de remise des prix de l’ICM a donné à l’industrie lachance d’honorer certaines des réalisations exceptionnelles de sesnombreux ambassadeurs. Et, grâce à un divertissement spectaculaire,la foule est restée jusqu’à la toute fin.

Le soir suivant, les participants et les délégués ont sorti leurs chaus-sures de danse pour le gala Joy Global, qui a présenté un feu d’artificeimpressionnant sur Coal Harbour.

« Dans l’ensemble, la réaction de tout le monde a été excellente »,a dit Patty Moore, au dernier jour du congrès.

Et l’événement de l’an prochain s’annonce tout aussi réussi. Près de90 % de l’espace du salon commercial est déjà vendu, et le thème,« Nouvelles dimensions », promet de donner lieu à des discussionsanimées. Le congrès 2015 de l’ICM aura lieu au Palais des congrès deMontréal, au Québec, du 9 au 13 mai. ICM

June/July 2014 | 73

CIM community

CIM Awards Gala, sponsored by Caterpillar and its Canadian dealers / Le gala deremise des prix de l’ICM, commandité par Caterpillar et ses leaders Canadiens

presentations and a panel discussion on topics ranging fromproper due diligence, risk management, market and commod-ity analysis to equity trends.

Gordon Bogden, Avanti Mining CEO, opened his presenta-tion on trends in mine financing and access to capital issues ona dire note. “Financing for mining companies in the currenteconomic climate is a difficult task, as conventional sources ofdebt and equity financing have been drying up steadily,” hesaid, before qualifying that his statement had previously beenmade at PDAC 15 years ago.

Hybrid is not just a kind of vehicleWhen asked what participants of all categories may take

away, Lise Bujold, CIM director of conventions and tradeshows, said: “Technology has allowed us to expand on theexperience for everyone, both the on-site and remote partici-pants. The conversation on social media during the conven-tion, the sharing of pictures, the use of the mobile applicationby 1,500 people and the live broadcasting of sessions – it allmakes for a powerful hybrid event with views from the insideout and vice versa. It also reduces the need for paper andprinted materials.”

Mining a foundation of Canadian lifeRepresentatives from mining and related industries came

together for the CIM Closing Luncheon, held in conjunctionwith the Vancouver Board of Trade. Karina Briño, Presidentand CEO of the Mining Association of British Columbia andkeynote speaker, discussed the importance of mining in dailylife, from technology to infrastructure. She also spoke to thebenefits of the mining industry on the local BC economy as amajor employer in the province. “We want to send a strongand positive message,” said Briño. “Let’s work together tomake sure the mining industry grows.”

No shortage of funOf course, the convention was not all about professional

development, business wheelings and dealings, and network-ing. The week’s many social events, mixers and receptions pro-vided hardworking professionals the opportunity to have a bitof fun. The black-tie CIM Awards Gala offered the industry achance to recognize some of the outstanding achievementsfrom its many champions. And, with over-the-top entertain-ment, the crowd stayed until the very end.

The following night, attendees and delegates broke outtheir dancing shoes at the Joy Global Gala, which featured animpressive fireworks display over Coal Harbour.

“Overall, the impression from everybody has been great,”said Patty Moore, as the convention wrapped-up its last day.

And next year’s event is poised to bring much of the same.The expo floor is already 90 per cent sold and the theme,“New Dimensions,” promises to engender huge discussion.CIM Convention 2015 will be held in Montreal, Quebec at thePalais de Congrès from May 9 to 13. CIM

SUBMIT YOUR ABSTRACT BY OCTOBER 31, 2014> CONVENTION.CIM.ORG

The Iron Ore, Planetary and Terrestrial Mining Sciences and Ethics in Mining Symposiumswill be included with registration for CIM Convention delegates.

A selection of papers presented at CIM Convention 2015 will be available online throughthe cim.org Technical Paper Library.

CALLING FORNEW PERSPECTIVESUNDER THE FOLLOWING THEMES

> ENVIRONMENTAL PARADIGMS

> INNOVATION – PRESENT AND FUTURE

> UNDERGROUND MINING INSIGHTS

> DIVERSITY – FROM GENDER TO GEOGRAPHY

> OPERATIONAL EXCELLENCE – A SAFE OPERATION IS A RELIABLE ONE

> MAINTENANCE ENGINEERING – IMPACTING EVERY LEVEL

> RARE EARTHS MINERALS – FROM PROSPECTING TO PROCESSING

> EXPLOSIVES & BLASTING – BREAKING GROUNDS

> GEOLOGY & GEOSTATISTICS

> IRON ORE SYMPOSIUM (IOS)

> ETHICS IN MINING SYMPOSIUM

> PLANETARY AND TERRESTRIAL MINING SCIENCES SYMPOSIUM (PTMSS)

New DimensionsCALL FOR ABSTRACTS

CIM DELIVERSTECHNICAL RESOURCES The CIM Convention is owned and operated by the Canadian Institute of Mining, Metallurgy and Petroleum.

L’ICM ASSUREUN PARTAGE DE SAVOIR ETDE RESSOURCES TECHNIQUES

SOUMETTEZ VOTRE PROJET AVANT LE 31 OCTOBRE 2014> CONVENTION.CIM.ORG

Les Symposiums sur le minerai de fer, Mines et Éthique ainsi que Science Minière Planétaireet Terrestre (PTMSS) seront inclus dans les frais d’inscription des délégués au congrès de l’ICM.

Les papiers et présentations du congrès 2015 de l’ICM seront publiés en ligne dans la librairetechnique de l’ICM au www.cim.org.

NOUVELLES PERSPECTIVES RECHERCHÉESSOUS LES THÈMES SUIVANTS

> TENDANCES ENVIRONNEMENTALES

> INNOVATION - PRÉSENT ET AVENIR

> PERSPECTIVES D’EXPLOITATION MINIÈRE SOUTERRAINE

> DIVERSITÉ - GENRE, GÉOGRAPHIE ET PLUS

> EXCELLENCE OPÉRATIONNELLE – SÉCURITÉ ET FIABILITÉ

> INGÉNIERIE ET ENTRETIEN – IMPACTS MULTI NIVEAUX

> MINÉRAUX DE TERRES RARES – DE LA PROSPECTION À LA FABRICATION

> EXPLOSIFS ET MÉTHODES – PERCÉES TERRESTRES

> GÉOLOGIE ET GÉOSTATISTIQUES

> SYMPOSIUM SUR LE MINERAI DE FER

> SYMPOSIUM MINES ET ÉTHIQUE

> SCIENCE MINIÈRE PLANÉTAIRE ET TERRESTRE (PTMSS)

APPEL À CONTRIBUTIONS

Nouvelles dimensions

Le congrès de l’ICM est une marque de l’Institut canadien des mines, de la métallurgie et du pétrole.

Methodology for design risk assessment in burst-prone mines: A case studyD. J. Cheung, Nyrstar Myra Falls, Campbell River, British Columbia, Canada; V. N. Kazakidis, Laurentian University, Sudbury, Ontario, Canada

ABSTRACT Seismicity and rockburst problems in hard-rockmines negatively impact safety and profitability. The authorspropose a design risk methodology as a relative risk assess-ment for underground excavations vulnerable to rockburstdamage. It considers rock mass conditions relating to min-ing-induced stress, geological structure, rock massproperties, and mining influence. Application of themethodology to rockburst cases involving seismically activefault zones at the Craig mine in Sudbury, Ontario, Canada,demonstrates that design changes can reduce exposure andeconomic risks. Mines with high geotechnical risk can usethe design risk methodology to evaluate design alternativesas a risk management strategy.

RÉSUMÉ Les problèmes de sismicité et de coups de toit dans lesmines de roches dures ont un impact négatif sur la sécurité et larentabilité. Les auteurs proposent une méthode de calcul du risqueen tant qu’évaluation relative du risque pour les excavations souter-raines vulnérables aux coups de toit. Elle tient compte desconditions de la masse rocheuse en ce qui a trait aux contraintescausées par l’exploitation, la structure géologique, les propriétés dela masse rocheuse et l’influence de l’exploitation. L’application de laméthode aux cas de coups de toit impliquant des zones de faillessismiquement actives à la mine Craig à Sudbury, Ontario, Canada,démontre que les changements dans la conception peuventréduire l’exposition et les risques économiques. Les mines à risquegéotechnique élevé peuvent utiliser la méthode de calcul du risqueafin d’évaluer les diverses options de conception en tant questratégie de gestion du risque.

Using a pit optimization tool to calculate oil sands mining inventoryL. Chunpongtong, Independent Consultant, Calgary, Alberta, Canada

ABSTRACT Oil sands production occurs on a massive scale,making orebody estimation a challenge. In rainy conditions,operators can have difficulty accessing ore at the mappedlocation. Without enough inventory as a buffer, the high-cost stockpile is depleted quickly, necessitating the removalof significant amounts of overburden and interburden tomeet plant feed requirements. The inventory curve—a plotof ore inventory on a period-by-period basis—plays animportant role in selecting an appropriate scheduling sce-nario. This paper presents a programmable method forcreating an inventory curve according to parameters in theinventory definition by using a pit optimization tool.

RÉSUMÉ La production des sables bitumineux s’effectue à grandeéchelle, ce qui complique les estimations du gisement. Sous desconditions pluvieuses, les opérateurs peuvent avoir de la difficulté àestimer le minerai à l’endroit cartographié. Dans l’absence d’unequantité suffisante d’inventaire pour servir de tampon, la réserve,établie à coût élevé, est rapidement épuisée, ce qui nécessite l’en-lèvement de quantités importantes de morts-terrains en surface etintermédiaires pour rencontrer les demandes d’alimentation desusines. La courbe d’inventaire – une représentation graphique del’inventaire de minerai selon les périodes – joue un rôle importantdans le choix d’un scénario d’ordonnancement approprié. Cet arti-cle présente, au moyen d’un outil d’optimisation de la fosse, uneméthode programmable pour créer une courbe d’inventaire selonles paramètres de définition d’inventaire.

June/July 2014 | 77

T E C H N I C A L A B S T R AC T S

CIM journal

Excerpts taken from abstracts in CIM Journal, Vol. 5, No. 2.To subscribe, to submit a paper or to be a peer reviewer—www.cim.org

Excerpts taken from abstracts in CIM Journal, Vol. 5, No. 2.To subscribe, to submit a paper or to be a peer reviewer—www.cim.org

Factors affecting the permeability of low-permeability sandstone uranium deposits: A case studyW. S. Liao, L. M. Wang, G. P. Jiang, and Y. Jiang, Beijing Research Institute of Chemical Engineering and Metallurgy, Beijing, China

ABSTRACT The authors measured porosities and permeabili-ties for cores from a low-permeability sandstone uraniumdeposit in Inner Mongolia. Features studied included finepore structure, mineral composition, cation exchange capac-ity, granule appearance, and cementing features. In general,grading of the grains was relatively poor, which decreasedthe radii of the pore channels. The pore throat distributionwas significantly heterogeneous. Pore channels ranged fromsmall to large, but the lack of large pore channels led to lowpermeability. Cementation by calcite and clays, includingmontmorillonite, chlorite, and kaolinite, resulted in porechannel narrowing, further decreasing the permeability ofthe formation.

RÉSUMÉ Les auteurs ont effectués des mesures sur les porosités etles perméabilités de carottes provenant d’un gisement de grès uran-ifère à faible perméabilité en Mongolie intérieure. Ils ont étudié lescaractéristiques telles que la structure des pores fines, la composi-tion minéralogique, la capacité d’échange cationique, l’aspectgranulométrique et les caractéristiques de cimentation. De manièregénérale, le classement granulométrique était relativement mauvais,ce qui diminue le rayon des chenaux des pores. La distribution desréseaux de rétrécissements était significativement hétérogène. Leschenaux des pores varient d’étroits à larges mais le manque delarges réseaux engendre une faible perméabilité. La cimentation parla calcite et les argiles, incluant la montmorillonite, la chlorite, et lakaolinite, rétrécit les chenaux entre les pores, diminuant encore plusla perméabilité de la formation.


CIM journal


Hydraulics of hexavalent chromium reduction in constructed wetland mesocosmsA. Rodriguez-Prado, Independent Consultant, Saskatoon, Saskatchewan, Canada; W. C. Lennox, Department of Civil and EnvironmentalEngineering, University of Waterloo, Waterloo, Ontario, Canada; R. L. Legge, Department of Chemical Engineering, University of Waterloo, Waterloo,Ontario, Canada

ABSTRACT It is possible to adequately describe chemicalreduction of hexavalent chromium, Cr(VI), in industrial andmining wastewater in constructed wetlands by applying dif-ferent kinetic models (e.g., half-order, second-order).Accounting for hydraulic transport of contaminants inreduction equations can also improve such description. Theauthors developed an explicit advection-dispersion bulk flowequation and applied it to model Cr(VI) reduction in labora-tory wetland mesocosms. The results indicated that themodel adequately described wetland exit Cr(VI) concentra-tions and Cr(VI) reduction, representing an improvementover the commonly used graphic method and potentiallyimproving the wetland design.

RÉSUMÉ Il est possible de décrire adéquatement la réduction chim-ique du chrome hexavalent, Cr(VI), dans les eaux usées industrielleset minières de marais artificiels en appliquant différents modèlescinétiques (p. ex. de demi-ordre, de second ordre). Il est aussi possibled’améliorer cette description en tenant compte du transporthydraulique des contaminants dans les équations de réduction. Ilsont développé une équation explicite advection-dispersion d’é-coulement en vrac et nous l’avons appliqué à un modèle deréduction du Cr(VI) dans des mésocosmes de marais en laboratoire.Les résultats indiquent que le modèle décrit les concentrations deCr(VI) de sortie du marais et la réduction du Cr(VI) de manièreadéquate, ce qui représente une amélioration par rapport à la méth-ode graphique couramment utilisée et une possibilité d’améliorer laconception du marais.

June/July 2014 | 79

Excerpts taken from abstracts in CMQ, Vol. 53, No. 3.To subscribe – www.cmq-online.ca


canadian metallurgical quarterly

Preparation of Ti�Si�Al alloy by aluminothermic reduction of TiO2 bearing blast furnace slagQ. Y. Huang, School of Metallurgical and Materials Engineering, Chongqing University of Science and Technology, Chongqing, China; X. W. Lv, R. Huang, School of Materials Science and Engineering, Chongqing University, Chongqing, China; J. J. Song, Center of Material for ChongqingMetrology Institute of Quality Inspection, Chongqing, China

ABSTRACT The aluminothermic reduction of Ti containingBF slag was carried out to prepare Ti�Si�Al alloy in this studyin order to improve the recovery rate of the Ti from the vana-dium�titanium magnetite ore and solve the deposit problemof huge amount of BF slag bearing 20–25%TiO2. It wasfound that the mass of alloy increased with increasing Aladdition. The mass of the slag obtained was more than thatcalculated by FACTSage by 2–4%, meaning some unreducedoxide still remained in the slag, and/or that equilibrium wasnot obtained. The Perovskite and Pyroxene minerals disap-peared, and the CaAl2O4 and MgAl2O3 were the dominantphases with increasing the Al2O3 in the slag. The Ti5Si3,AlTi3 and TiSi2 were the main phase in the solidified alloy.The LFe, LSi, and LTi, which represents the distribution ratioof the elements like Fe, Si and Ti between the metal and theslag, decreased with increasing temperature, and increasedwith increasing the Al addition. The measured LFe departedgreatly from the equilibrium, while the measured LSi almostreached the equilibrium. The LTi reached the equilibriumwhen the Al addition was less than 18%, LTi departed fromthe equilibrium condition when the Al addition was morethan 18%. The recovery of both Ti and Si increased withincreasing the Al addition. For Ti, it reached 80% when theAl addition was above 20%. For Si, the recovery is alwayslower than that of Ti, it reached 70% when the Al additionwas above 24%.

RÉSUMÉ Dans cette étude, on a effectué la réduction aluminother-mique de laitier de haut-fourneau, contenant du Ti, pour préparerl’alliage de Ti-Si-Al afin d’améliorer le taux de récupération du Ti deminerai de vanadium-titanium-magnétite et de résoudre le prob-lème de dépôt d’une quantité énorme de laitier de haut-fourneauporteur de �20–25% de TiO2. La masse de l’alliage augmentait avecl’augmentation de l’addition d’Al. La masse du laitier obtenu étaitplus importante que la masse calculée par FACTSage par �2�4%, indi-quant qu’une certaine quantité de l’oxyde non-réduit subsistait dansle laitier et/ou que l’on n’avait pas atteint l’équilibre. Les minéraux dePérovskite et de Pyroxène ont disparu et le CaAl2O4 et le MgAl2O3constituaient les phases dominantes avec une augmentation del’Al2O3 dans le laitier. Le Ti5Si3, l’AlTi3 et le TiSi2 constituaient la phaseprincipale de l’alliage solidifié. Le LFe, le LSi et le LTi, qui représententle rapport de distribution des éléments comme le Fe, le Si et le Tientre le métal et le laitier, diminuaient avec une augmentation de latempérature et augmentaient avec une augmentation de l’additiond’Al. Le LFe mesuré s’éloignait grandement de l’équilibre, alors que leLSi mesuré atteignait presque l’équilibre. Le LTi atteignait l’équilibrelorsque l’addition d’Al était de moins de 18%, le LTi s’éloignait de lacondition d’équilibre lorsque l’addition d’Al était de plus de 18%. Larécupération tant du Ti que du Si augmentait avec l’augmentationd’addition d’Al. Quant au Ti, il atteignait 80% lorsque l’addition d’Alétait au-dessus de 20%. En ce qui concerne le Si, la récupération étaittoujours plus faible que celle du Ti; elle atteignait 70% lorsque l’addi-tion d’Al était au-dessus de 24%.

Creep performance of wrought AX30 and EZ33 magnesium alloysA. Siebert-Timmer, M. Fletcher, L. Bichler, UBC – Okanagan Campus, Kelowna, British Columbia, Canada; D. Sediako, NRC-CNBC, Chalk River,Ontario, Canada

ABSTRACT Wrought magnesium alloy bars, sections andtubes have been extensively used in the aerospace, electron-ics and automotive industries, where component weight is ofconcern. The operating temperature of these components istypically limited to <100°C, since Mg alloys undergo appre-ciable creep above this temperature due to grain boundarysliding and plastic deformation leading to intergranular fail-ure. The objective of this study was to investigate thecompressive creep performance and microstructure stabilityof two wrought magnesium alloys (AX30 and EZ33) uponexposure to 175°C and 50 MPa test conditions. The creepbehaviour of each alloy was studied using neutron diffrac-tion, as well as classical extensometer techniques. The resultssuggested that the EZ33 alloy exhibited uniform elastic

RÉSUMÉ On a fait un usage considérable de barres, de sections etde tubes corroyés d’alliage de magnésium dans les industries del’aérospatiale, de l’électronique et de l’automobile, où le poids despièces est à considérer. La température de fonctionnement de cespièces est limitée typiquement à moins de 100°C, puisque lesalliages de magnésium subissent un fluage appréciable au-dessusde cette température à cause du glissement du joint de grain et dela déformation plastique menant à la rupture intergranulaire. L’ob-jectif de cette étude consistait à examiner le comportement defluage en compression et la stabilité de la microstructure de deuxalliages corroyés de magnésium (AX30 et EZ33) sous les conditionsd’essai d’une exposition à 175°C et 50 MPa. On a étudié le comporte-ment de fluage de chaque alliage en utilisant la diffraction desneutrons ainsi que les techniques classiques de l’extensomètre. Lesrésultats suggèrent une réponse élastique uniforme avec une défor-

Excerpts taken from abstracts in CMQ, Vol. 53, No. 3.To subscribe – www.cmq-online.ca

response with a total plastic deformation of 0·3% after 24 h.In contrast, AX30 exhibited �~9% strain hardening on theplane, and a total plastic deformation of 1·5% after 24 h.Microstructure analysis revealed that grain size remainedconstant during creep testing for both alloys. However, thedissolution of Al2Ca intermetallics in the AX30 alloy resultedin the formation of β-Mg17Al12 phase, which contributed toaccelerated creep deformation.

mation plastique totale de 0·3% après 24 heures pour l’alliage EZ33.Par contraste, AX30 exhibait �~9% de durcissement par écrouissagedans le plan () et une déformation plastique totale de 1·5% après 24heures. L’analyse de la microstructure révélait que la taille de graindemeurait constante lors de l’essai de fluage des deux alliages.Cependant, la dissolution des intermétalliques Al2Ca dans l’alliageAX30 avait pour résultat la formation de la phase βMg17Al12-�, ce quicontribuait à accélérer la déformation par fluage.


canadian metallurgical quarterly


On the oxidation resistance of a powder metallurgy nickel-based superalloyD. C. Murray, Department of Process Engineering and Applied Science, Dalhousie University, Halifax, Nova Scotia, Canada; N. L. Richards, Department of Mechanical and Manufacturing Engineering, University of Manitoba, Winnipeg, Manitoba, Canada; W. F. Caley, Department of Process Engineering and Applied Science, Dalhousie University, Halifax, Nova Scotia, Canada

ABSTRACT To evaluate the influence of reactive minor ele-ments on oxidation resistance of a nickel-based superalloy,0�5w/o Si, and/or 0�1w/o Y were added in various combina-tions to a quaternary powder metallurgy alloy that consistedof a ternary master alloy, Ni�12Cr�9Fe+6w/o Al (w/o). Theprocessing included production of transverse rupturestrength (TRS) bars by uniaxial pressing followed by sinter-ing to 1300°C and Gleeble thermo-mechanical deformationto reduce porosity. Sectioned TRS bars were then oxidised(static) at 900°C in air for times up to 1000 h and the influ-ence of the Si/Y additions on oxidation resistance wasdetermined via a combination of weight gain data andmicrostructural examination. It was found that the additionof 0�5w/o Si to the quaternary Ni�Cr�Fe�Al powder metal-lurgy system provided a measureable improvement inoxidation resistance both in terms of thickness of oxide layerand in overall weight gain. Conversely, 0.1w/o Y provided lit-tle benefit when added with the Si and was shown to bedetrimental in the absence of Si. Interestingly, little differencewas noted in final microstructures. Specifically, variation in%γ′ between samples was minimal (58.3�61.7 v/o) and a dis-tinct precipitate free zone was always present between theoxide and the γ + γ ′ matrix.

RÉSUMÉ Afin d’évaluer l’influence des oligoéléments réactifs sur larésistance à l’oxydation d’un superalliage à base de nickel, on aajouté 0�5% en poids de Si et/ou 0�1% en poids d’Y en combinaisonsvariées à un alliage quaternaire de la métallurgie des poudres quiconsistait en un alliage ternaire maître, Ni�12Cr�9Fe+6% en poidsd’Al. Le traitement incluait la production de barres de résistance à larupture transversale par pressage uniaxe, suivi par le frittage à1300°C et par la déformation thermomécanique de Gleeble pourréduire la porosité. Les barres sectionnées de TRS étaient ensuiteoxydées (en statique) à 900°C à l’air jusqu’à 1000 h et l’influence desadditions de Si/Y sur la résistance à l’oxydation était déterminée parl’intermédiaire d’une combinaison de données de gain de poids etd’examen de la microstructure. On a trouvé que l’addition de 0�5%en poids de Si au système quaternaire Ni�Cr�Fe�Al améliorait de façonmesurable la résistance à l’oxydation, tant en termes de l’épaisseurde la couche d’oxyde que de son gain global en poids. Réciproque-ment, 0.1% en poids d’Y avait peu de bénéfices lorsque ajouté avecle Si et l’on a montré qu’il était nuisible en absence de Si. De façonintéressante, on notait peu de différence dans les microstructuresfinales. Spécifiquement, la variation entre les échantillons du% de ��était minime (58.3 à 61.7% en volume) et une zone distincte sansprécipités était toujours présente entre l’oxyde et la matrice deγ �+��γ ′.

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June/July 2014 | 81

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Gold has alwayshad a powerfullure, and history

has shown that peoplewill go to great lengths topursue the faintest hintsof its existence – evenrumours of a hunter usinggold for bullets. This wasall it took for specialconstable Samuel Harris,who led an expedition upthe Cowichan River, as-yet-unexplored bysettlers, on VancouverIsland during the summerof 1860. Guiding thegroup in this unfamiliarterritory was one-armedTomo Antoine, one of theHudson’s Bay Company’s (HBC) top guides and the man whofirst caught word of the golden bullets.

Apparently a Ditidaht man had found an outcropping ofgold-bearing quartz while out hunting in the mountainsbeyond Cowichan Lake. Being short on ammunition, he tookchunks of the gold and formed them into musket balls. Talltale or not, it was too good a story to pass up. Antoine told itto Harris, who passed it on to James Douglas, governor of Van-couver Island, who ordered an immediate expedition to con-tact the Ditidaht and find the gold.

Tomo Antoine, of Iroquois and Chinook heritage, had beenborn into the HBC fur trade. His father was a company furtrader, though he died when Antoine was but an infant. As ayoung man, Antoine caught the attention of Douglas, who hadestablished HBC’s Fort Victoria in 1841, and soon the future“father of British Columbia” was hiring Antoine to guide thefirst HBC expeditions into the interior of Vancouver Island.

Antoine had plenty of bravado and his wild ways could getthe better of him. In 1856, he took an interest in a womanfrom a local tribe near present-day Duncan and her offendedhusband-to-be shot Antoine, the bullet ripping through hisarm and entering his chest. A local medicine man savedAntoine’s life, but doctors in Victoria could not save his arm:Tomo Antoine became One-Armed Tomo. Meanwhile, theshooter was apprehended by British authorities, convicted andhanged. Antoine became a sworn enemy of the peoples in theregion and could never return.

But not all was lost. The amputation hardly slowed Antoinedown, and soon he was back at work, canoeing with a modi-


fied paddle and break-ing trail for thecolonists. By then, thefur trade was givingway to the hunt forgold. The Californiagold rush came andwent, as did the FraserRiver rush. Thou-sands of men hadcongregated on thewest coast, ready tojump on the slightesthint.

The July 1860 tripup the Cowichan

River was Harris and Antoine’s secondattempt: the two hadtried it in February but

were thwarted by the season’s early flooding. On both trips theteam panned for gold, finding enough flecks to tempt themfurther. After 11 days they reached Cowichan Lake, and soonlocated the Ditidaht village where they expected to find thehunter.

The plan was to find the man whose gun fired golden bul-lets and have him lead them to his hidden gold mine. The Diti-daht, however, had more urgent things on their mind, as theircommunity was suffering from a deadly outbreak of smallpox.The chief offered a deal: the tribe would help the men and letthem prospect on Ditidaht territory, but only if they firstreturned with smallpox medicine.

The team agreed. They hurried back down the river andgathered supplies, returning by mid-August. The medical sup-plies were enough to stop the spread of smallpox. The gold,though, proved more elusive: the man who knew of its where-abouts had died in the outbreak.

The only thing left for the team was to explore the shoresof Cowichan Lake for signs of gold. As with Cowichan River,Harris found enough colour to file a positive report, but littlemore. It might have been enough to prompt a flurry ofprospecting, but by then another gold rush had hit, turningthe attention of the gold-crazed to the Cariboo, and then camethe Klondike. Eventually, the bullets were forgotten.

Antoine got his vindication in 1864, when he guided anexpedition along the Sooke River that sparked a gold rush atLeechtown. He eventually retired to the backwoods, a well-paid man.

But he never did find those golden bullets. CIM

One-Armed Tomo and the golden bulletsby Correy Baldwin

Special constable Samuel Harris, who built the John Bull Inn in Cowichan Bay (seen above) in1859, led a gold finding expedition in 1860 based on rumours of an aboriginal hunter usinggolden bullets in his rifle. The story was passed along to Harris by animated local guide andraconteur Tomo Antoine.

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cim magazine june/july 2014

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