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FEATURE: Despite a troubled history and enduring challenges, West Africa is seen as the new frontier for mineral exploration and extraction

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Page 1: CIM Magazine May 2011
Page 2: CIM Magazine May 2011

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Page 3: CIM Magazine May 2011

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Page 4: CIM Magazine May 2011

4 | CIM Magazine | Vol. 6, No. 3

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28

NEWS 14 Water scarcity a growing concern Water management is becoming a vital issue

for mining companies by P. Brent

16 New MAC president poised for national stage Pierre Gratton focused on reducing federal-provincial regulatory overlap by T. Loree

18 Mineral development agreements cause of contention “Unrealistic expec-tations” a main culprit in undermining agreements between governments and firms by P. Brent

20 South Africa looking forward Delegation visits mining convention to ease concernsabout the country’s mining policies by J. Borsato

21 Lawyers raise concerns about South African policy Legal experts discusskey issues surrounding mining investment in South Africa by V. Heffernan

22 Talking up the merits of the merger TMX Group discusses benefits of mergerwith the LSE at PDAC Convention by M. Paduada

24 BC Hydro gets approval for Northwest Transmission Line Long awaitedB.C. environmental certificate brings power line project one step closer to realization by P. Caulfield

26 SNC-Lavalin celebrates 100 years Montreal-based firm commemorates its centennial of engineering excellence by H. Ednie

CONTENTS|CONTENUCIM MAGAZINE | MAY 2011 | MAI 2011

UPFRONT 28 Innovation needs no risks SNC-Lavalin expertise aids Barro

Alto Mine in plant facility design and construction by H. Ednie

30 Staying connected around the globe Inmarsat’s IsatPhonePro keeps miners linked in the remotest regions by H. Ednie

32 CSR Counsellor review process seeks conciliatoryapproach CSR Counsellor for the Extractive Sector unveils disputeresolution process mechanism by H. Ednie

34 Robots go where men fear to tread Penguin AutomatedSystems Inc.’s robots are designed to perform multiple tasks in hazardous situations by G. Baiden, Y. Bissiri and S. Luoma

38 Perfecting the grind IsaMill is a high-intensity and low-energymill designed to maximize mineral recovery by P. Caulfield

40 Making a profit while making a difference Businessmanand social entrepreneur Pete Ondeng wants companies to invest inAfricans as well as Africa by R. Andrews

COMMODITY FOCUS 60 Lustre restored Evolving industrial applications and strong

investor interest are putting the shine on silver by E. Moore

Page 5: CIM Magazine May 2011

FEATURED PROJECTPROJET EN VEDETTE 52 Today’s record becomes tomorrow’s standard Early production sets a fast pace

at IAMGOLD’s Essakane Mine in Burkina Faso by D. Zlotnikov

58 Les records d’aujourd’hui sont les normes de demain Une mise en productionprécoce établit une cadence rapide à la mine Essakane d’IAMGOLD au Burkina Faso

43

FEATUREMINES WITHOUT BORDERSMINES SANS FRONTIÈRES 43 Towards a common goal Despite a troubled history and enduring challenges, West Africa

is seen as the new frontier for mineral exploration and extraction by A. Lopez-Pacheco

50 Oeuvrant vers un objectif commun Malgré son histoire trouble et des défis incessants,l’Afrique de l’Ouest est perçue comme la nouvelle frontière pour l’exploration et l’extractionminérales

52

COLUMNS 65 Supply Side by J. Baird 66 MAC Economic Commentary by P. Stothart 68 HR Outlook by R. Montpellier 70 Safety by A. Lopez-Pacheco 74 Aboriginal Perspectives by J. Borsato 76 Standards by D. McCombe 78 Innovation by T. Hynes 80 Metals Monitor by the staff of Metals Economics Group 82 Women in Mining by V. Heffernan 84 Eye on Business by C. Feldkamp and K. O’Callaghan 88 Parlons en par C. Masson 90 Canadians Abroad by H. Ednie 92 Student Life by R. Grunerud 94 Mining Lore by C. Baldwin122 Voices from Industry by M. Pheko

CIM NEWS 97 Paying it forward Vale Inco Medal winner Robert

Quartermain is recognized for his contributions togeology and the community by C. Baldwin

99 Top of the class Two Memorial University of Newfoundland students receive CIM scholarshipsby M. Eisner

102 Searching for the optimal balance CIM Distinguished Lecturer Mahesh Chaturvedi dis-cusses his research on superalloys by A. Lopez-Pacheco

105 Ready, willing and able IT and membership departments expand to support CIM’s strategic planby A. Nichiporuk

106 Strength in numbers Society reorganization designed to better meet member needs in an evolving industry by H. B. George

109 Prête, disposée et compétente L’équipe del’ICM est maintenant complète et en mesure desoutenir le plan stratégique

110 La force du nombre L’ICM poursuit la reorganizationde ses sociétés

HISTORY112 The foundations of modern economic

geology (Part 3) by R. J. Cathro115 Social problems in the mining industry:

a historical essay (Part 3) by F. Habashi

TECHNICAL SECTION119 CIM Journal abstracts

IN EVERY ISSUE 6 Editor’s message 8 President’s notes / Mot du président 10 Letters 12 LinkedIn comments 91 Calendar101 Welcoming new members120 Professional directory

Page 6: CIM Magazine May 2011

And this is one of the major questionsof our lives: how we keep boundaries,what permission we have to crossboundaries and how we do so.

~ A. B. Yehoshua

When I was young, my parents encouraged me toconsult our globe whenever homework or currentevents brought an unfamiliar location to my

attention. This exercise undoubtedly contributed to my deci-sion to pursue political science in my undergraduate studies

and made me practically “untouchable” on the geography questions in Trivial Pursuit. Despite my early geopolitical exposure, I am embarrassed to admit that I know

extremely little about either the politics or topography of Africa: something that wasdriven home during the editorial exploration of the continent for this issue.

Although I do not mean to say that everyone shares my blind spot, I do proposethat many of us have a long way to go in our understanding of the issues and intri-cacies of this vast continent. And, considering the enormous potential – and poten-tial difficulties – surrounding the development and extraction of mineral riches thatlay buried there, it is certainly not something we can afford to remain in the darkabout for much longer.

In this issue of CIM Magazine, we present a special focus on Africa. In our featurearticle, “Towards a common goal,” writer Alexandra Lopez-Pacheco looks at theopportunities and challenges of resource development in West Africa where, accord-ing to some of the sources she speaks with, there has been a trend towards reformsdesigned to attract foreign direct investment into the mining sector. Although thepolitical landscape there remains far from smooth, sources share their thoughts onhow early and effective engagement can help to mitigate some of the risks.

IAMGOLD’s new Essakane gold mine in Burkina Faso stars as this issue’s project pro-file. Despite being in operation for less than a half a year, in 2010, the mine produced122,000 ounces of gold, with another 370,000 to 390,000 forecasted for this year.Writer Dan Zlotnikov also gives an account of the company’s successful resettlementof 13,000 residents – a testament to the company’s commitment to good communityrelations and participation.

We are honoured that South Africa’s High Commissioner to Canada, Mohau Pheko,contributed our Voices from Industry column. She takes the opportunity to demystifysome of the negative perceptions about her country and invites the Canadian miningindustry to discover an abundance of opportunities in their place.

On a final note, I would like to extend my gratitude to outgoing CIM PresidentChris Twigge-Molecey. It has been a great pleasure working with him this past year.His global perspective and valued input have helped us to stretch CIM Magazine’s edi-torial boundaries.

Angela Hamlyn, Editor-in-chief

6 | CIM Magazine | Vol. 6, No. 3

editor’s letter

Editor-in-chief Angela Hamlyn, [email protected]

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

Technical Editor Joan Tomiuk, [email protected]

Web Editor Rosy Saadeh, [email protected]

Publisher CIM

Contributors Richard Andrews, Greg Baiden, Jon Baird,Correy Baldwin, Yassiah Bissiri, Louise Blais-Leroux, JeffBorsato, Paul Brent, R.J. Cathro, Peter Caulfield, Heather Ednie,Marlene Eisner, Claudia Feldkamp, Hartley Butler George, RoryGrunerud, Fathi Habashi, Virginia Heffernan, Tom Hynes,Alexandra Lopez-Pacheco, Thom Loree, Steffon Luoma,Christelle Masson, Deborah McCombe, Ryan Montpellier, EavanMoore, Kevin O’Callaghan, Mike Paduada, Mohau Pheko, Staffof the Metals Economics Group, Paul Stothart, Dan Zlotnikov

Published 8 times a year by CIM1250 – 3500 de Maisonneuve Blvd. West Westmount, QC, H3Z 3C1Tel.: 514.939.2710; Fax: 514.939.2714 www.cim.org; Email: [email protected]

Subscriptions Included in CIM membership ($150.00); Non-members (Canada), $168.00/yr (GST included;Quebec residents add $12.60 PST; NB, NF and NSresidents add $20.80 HST); U.S. and other countries,US$180.00/yr; Single copies, $25.00.

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

This month’s cover Burkinabe worker at IAMGOLD’SEssakane Mine (IAMGOLD); Spill response training atEssakane (IAMGOLD); Freeport-McMoRan's drillingoperations in the Katanga District of the DRC(Freeport-McMoRan); Loading ore at Kalsaka (CluffGold); Core shack at IAMGOLD's Siribaya property in Mali (IAMGOLD). Layout and design by Clò Communications.

Copyright©2011. 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

Challenging boundaries

Page 7: CIM Magazine May 2011

Miners everywhere face similar challenges. Running a safe operation is your highest priority. Nothing matters more. Meeting production and profitability targets is also critical. The pressure is always on to deliver more tons at a lower cost. Environmental responsibility is another key concern. We are all challenged to do the right thing, meeting demand for minerals and metals in a manner that sustains the earth. Caterpillar and your Cat® Dealer understand your priorities. We welcome the opportunity to put our products, services and technologies to work in your operation. Together we can achieve all your business objectives—Mining safely. Mining more. Mining right.

To learn more contact your Cat Dealer or visit www.cat.com/miningright

© 2011 Caterpillar All Rights ReservedCAT, CATERPILLAR, their respective logos, “Caterpillar Yellow” and the “Power Edge” trade dress, as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission.

MINING SAFELY.

MINING MORE.

MINING RIGHT.

Page 8: CIM Magazine May 2011

president’s notes

I was astonished to realizethat this will be my last messageto you as president of CIM,which makes it difficult to com-press all I would like to say intomy allotted page.

To begin, “Mines withoutBorders,” the theme of the CIMConference & Exhibition 2011 inMontreal this year, brings intosharp focus the key issues weall face in a globalized world. Wehave to manage more complexoperations with a shortage ofqualified people. We have cross-cultural bridges to build span-ning enormous differences inworld views. We have to manage

lower grade ore bodies in regions with daunting logistical and cultural chal-lenges. Emerging issues such as resource nationalism or mineral sourcetracking mean our business is growing more difficult, not easier.

To address this increasing complexity, it is clear that the CIM structureneeds to be streamlined. To this end, the CIM Council has approved theamalgamation of the Oil Sands Society, The Coal and Industrial MineralsSociety and the Metal Mining Society into two new societies, the SurfaceMining Society and the Underground Mining Society. A major benefit will

be a clearer structure to potential sponsors and better co-ordination andeffectiveness of our mining-related activities. This is discussed in detail inthe article on page 106.

Over the year, we have made substantial progress on many fronts: • We have improved governance practices and maintained a solid bal-

ance sheet. • Phase 1 of our IT project is on target to be completed this year.• The Environmental Society has come back to life with a strong leader-

ship team.• International activities have grown substantially with CIM’s co-spon-

sorship of international events and winning bids for several majorglobal conferences for Canada over the next five years.

• Most gratifying of all, we have grown student membership, the futureof our business.It is with great pleasure and confidence that I pass the baton to incom-

ing president Chuck Edwards. Lastly, I would like to thank the CIM staff for their dedication and hard

work over the year. They and the unseen hundreds of volunteers across thecountry have contributed to the great organization we have – one that wecan all be proud of.

Thank you all.

Chris Twigge-MoleceyCIM President

Quel étonnement ce fut de me rendre compte qu’il s’agit de mondernier message vous étant adressé à titre de président de l’ICM; il estdonc difficile pour moi de condenser tout ce que j’ai à vous dire danscette unique page qui m’est donnée.

Pour commencer, le thème « Mines sans frontières », thème duCongrès et salon commercial de l’ICM 2011 à Montréal cette année, apermis de cerner et de préciser les principaux enjeux auxquels nousfaisons tous face au sein d’un environnement mondialisé. Nous devonsgérer des opérations plus complexes alors que nous subissons unepénurie de main-d’œuvre compétente. Nous devons franchir des gouf-fres trans culturels pour parvenir à réconcilier des conceptions du monderadicalement divergentes. Nous devons gérer des gisements à faibleteneur dans des régions qui présentent des défis logistiques et culturelsconsidérables. Par ailleurs, de nouveaux enjeux tels que le nationalismevis-à-vis des ressources ou le traçage des minerais signifient que nosaffaires se compliquent plutôt que de se simplifier.

Pour pouvoir s’attaquer à une telle complexité croissante, il est mani-feste que la structure de l’ICM nécessite une rationalisation. À cette fin, leconseil de l’ICM a approuvé la fusion de la Société des sables bitumineux,la Société du charbon et des minéraux industriels et la Société de l’ex-ploitation des mines et des métaux pour former deux nouvelles sociétés :la Société d’exploitation à ciel ouvert et la Société d’exploitation minièresouterraine. Une telle structure plus claire constituera un avantage de tailleaux yeux des commanditaires éventuels et permettra une meilleure coor-dination et une efficacité accrue de nos activités en lien avec l’exploitationminière. Ce sujet est abordé en détail dans l’article de la page 110.

Au cours de l’année, nous avons progressé de manière considérablesur plusieurs fronts : • Nous avons amélioré les pratiques en matière de gouvernance et

nous avons déposé un bilan solide. • La phase 1 de notre projet concernant les technologies de l’informa-

tion suit son cours et sera terminée cette année.• La Société de l’environnement a repris un souffle de vie grâce à une

équipe aux compétences éprouvées en matière de leadership.• Les activités internationales se sont développées de manière appré-

ciable grâce aux événements internationaux en partie commanditéspar l’ICM et grâce à nos soumissions retenues pour la tenue deplusieurs conférences mondiales majeures au Canada au cours descinq prochaines années.

• Il est surtout très agréable de noter une augmentation du taux d’adhé-sion parmi les étudiants, lesquels constituent l’avenir de notre entreprise. C’est avec un grand plaisir et une entière confiance que je passe le

flambeau au nouveau président Chuck Edwards. Enfin, j’aimerais remercier le personnel de l’ICM pour leur dévoue-

ment et leur travail acharné au cours de cette année. Leur apport, ainsique celui des centaines de bénévoles invisibles de part et d’autre dupays, ont contribué à développer cette merveilleuse organisation dontnous pouvons tous être fiers.

Merci à tous.

Chris Twigge-MoleceyPrésident de l’ICM

One year wiser, one year stronger

En un an, nous avons gagné en sagesse et en force

8 | CIM Magazine | Vol. 6, No. 3

Page 9: CIM Magazine May 2011
Page 10: CIM Magazine May 2011

“To err is human, to forgivedivine”

In the previous issue of CIMMagazine, the word “circa” acci-dentally found its way into theHistorical Metallurgy article (p.88-90). The dates are in fact exactand not approximations. Ourapologies to Dr. Habashi.

In the March/April 2011 issueof CIM Magazine (p. 22-23), inthe article entitled “Mapping thepast reaps continual rewards” byNeville Judd, it was incorrectlynoted that North American Tung-sten Corp.’s Can Tung Mine islocated in Yukon. The mine is infact located in the Northwest Ter-ritories. CIM Magazine apologizesfor the error.

10 | CIM Magazine | Vol. 6, No. 3

letters

Dr. Habashi,

It was a pleasure to read your article on the history of the miners’ safety lamp inthe November 2010 issue of CIM Magazine. For somebody working in the min-ers’ cap lamp industry, I can appreciate how much progress has been madeduring the past decades for the benefit of the miners. I work for NL Technologiesbased in Toronto, Ontario. As you can see from the attached photo of the lampswe’ve manufactured over the past 25 years, it is easy to appreciate the decreasein size, all the while improving its performance for the benefit of the miner.

Best regards,Elmer Bauman

Light, bright

Innovative Solutions for Potash Drying and Granulation

GEA Barr-RosinE-mail: [email protected] Representation: For local contact details and more information about GEA Barr-Rosin, access www.barr-rosin.com

Page 11: CIM Magazine May 2011
Page 12: CIM Magazine May 2011

12 | CIM Magazine | Vol. 6, No. 3

In order to innovate, the mining industry needs tocollaborateCollaboration the key to innovation and success: Vol. 6,No. 1, p. 30

we can get the industry stakeholders to commit to r&d by explain-ing its practical benefits to them. generally, it seems that industryviews r&d as an expenditure only. Few companies take advantageof the benefits that r&d may afford them. In the coal mining industry,for example, applying sequence stratigraphy in coals helps to planand mine it efficiently. I have recently tested it in one of my projectsat an Indian mine. It is like earning $20 by investing no more than $1.

Vinay Sahay, geologist, Mining exploration pty Ltd, nagpur Area, India

It is interesting to discover that this is now a trend in the miningindustry, and a practice not yet developed. I have witnessed howcollaboration for innovation has been performing in the aerospace,automotive and varying mechanical industries, and this informativearticle has helped me to better understand the issues and needs ofthe mining industry regarding collaboration for innovation.

Alexandre Troppi, energy Industry - Audience & Communities Manager,dassault systemes, paris, France

MineDesignWiki – an online resource for minedesignSharing knowledge in the digital realm: Vol. 6, No. 1, p. 28

this is a very exciting and useful resource that can help us to betterunderstand how our area of expertise fits into the overall develop-ment of a mine. In addition, it should help people with vision to growan opportunity into production and profitability.

Doug Ballard, equipment solutions provider, Vancouver, British Columbia, Canada

this is a great initiative. I work for a supplier to the mining industry,and with experienced personnel becoming increasingly difficult tofind, I believe this will be a valuable training and reference tool.

Ricky Jackson, sales Manager, sandvik Mining and Construction pty Ltd, tasmania, Australia

home profile Contacts groups Jobs Inbox Companies More

Aboriginal perspectives – from roadblocks tobuilding blocksFrom roadblocks to building blocks: Vol. 6, No. 1, p. 68

good for noront! I’m sure this will make an important difference tothe communities where they operate. I’d like to see our senior com-panies support the next level of education – making miningengineering degrees a real possibility for young Aboriginal peoplefrom mining communities. I believe that communities and their cul-tures will be invigorated and industry will benefit if we help thembecome mine designers and managers.

Anne Johnson, phd student, robert M. Buchan department of Mining,Queen’s university, kingston, ontario, Canada

Iron ore – the commodity of growthFuture growth built on iron ore legacy: Vol. 6, No. 2, p. 38

As a former steelmaker for many years, I assure you that iron oreprices will continue to play a major role in steel production cost forthe coming five-year cycle!

Wesam Hanna, steel / refractory p.eng, toronto, ontario

good article, but the iron ore mining and price pattern has to be for-mulated to meet the demand of developing economies in Africanand CIs countries. one has to bring all the players to a commonplatform and then rethink the price issues.

Rajendra Chaubey, Chief general Manager, nsAIL, Indore Area, India

great article, however, will a 20 per cent drop in the Chinese econ-omy have an effect on iron ore? yes it will. But to what degree? theystill need iron ore to manufacture goods or their economy will imme-diately come crashing down.

Donald Sisk, Ceo, global Mining group LLC, new york, new york

SCAN THE QR CODE BELOW wIth your sMArt phoneto Be tAken dIreCtLy to CIM’s LInkedIn pAge.

Join the discussion on

gets

Groups t Canadian Institute of Mining Advanced

CIM gets LinkedInCIM’s LinkedIn group providesenlightening feedbackCIM currently boasts over 2,000 members on LinkedIn. Join ustoday and get involved in the compelling dialogue.

Below are a few of the myriad LinkedIn comments received dailyin response to CIM Magazine’s editorial topics.

X

Page 13: CIM Magazine May 2011

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Page 14: CIM Magazine May 2011

news

Water’s role as a criticalresource for communitiesand mining firms, its scarcityand its usage were the focusof three presentations at theMining, People and the Envi-ronment conference held inconjunction with the PDACConvention in Toronto inMarch. The panelistsincluded a mining engineer,the head of a water treatmentcompany and an environ-mental researcher.

Water usage is “an increas-ingly important issue for themining industry,” Rob Kerr,vice-president of researchfirm GlobeScan Inc., toldattendees of the conference.Kerr, who chaired the panelon water usage, said publicperception of mining compa-nies currently ranks in the“low to average” range. Hisfirm, which handles stake-holder research on issues andreputation management for anumber of industries includ-ing mining, noted that insurveys of communities andstakeholders, “the importance of waternever goes down.”

Citing Canadian figures, DavidBleiker, senior associate engineer withMississauga, Ontario-based engineer-ing and project management firmAMEC, said that although miningprocesses account for a tiny portion ofwater usage, the industry’s impact canbe outsized. “It is not necessarily thewater we use, it is the water weaffect,” he explained. “Let’s face it,when we screw up in the miningindustry, it tends to stay around for along time.”

Bleiker added that dealing withwater issues comes down to “goodsolid science and engineering and then

Water scarcity a growing concern Practices will come under greater scrutiny, say industry panelists

By Paul Brent

making sure that you communicate itwell.” A key issue for the engineer iswhat he termed “water balances,” suchas promising to have a zero dischargesite, forgetting that water uses will dif-fer when a mine progresses fromexploration to operation and closure.Projects can have unintended andhard-to-predict effects on surface andgroundwater. Hoped-for “zero dis-charge” projects, for example, may ormay not be low impact with regards towater when it comes to nearby com-munities, he said.

David Kratochvil, president and COOof wastewater treatment companyBioteQ Environmental TechnologiesInc., presented his company’s innovative

treatment solution for themining industry. The Van-couver-based company’smulti-stage technology canremove saleable metals suchas copper, zinc and cobaltfrom wastewater, then later,iron and aluminum, andfinally, sulphate (saleablegypsum product), leavingbehind clean, useable water.The process also removeshazards such as cadmium,lead and arsenic. “In a nut-shell, we take water that iscontaminated, cannot be dis-charged, cannot be reused,and we clean it so that it canbe discharged or reused, andin the process of doing that,we generate saleable prod-ucts that can be shippedoffsite,” Kratochvil said.

Piet Klop, acting directorof the Washington-basedWorld Resources Institute,noted that the mining sec-tor’s thirst for water is morepressing than ever beforebecause of increasing waterscarcity around the world.

“And climate change is going tomake everything worse still,” he said.Klop also predicted increasinglytough regulations and enforcementon water quality in the near future.“It may not happen everywhere,” hesaid. “But the trend is pretty clear;there is going to be a lot morescrutiny.”

In a question-and-answer session, the presenters agreed that miningcompanies are doing a better job han-dling water issues. “The industry isgenerally far more aware than everbefore,” said Bleiker. “They are look-ing to use reclaimed water; they arelooking to just reduce the footprintin general.” CIM

BioteQ’s water treatment processes recovers dissolved metals from wastewater.

14 | CIM Magazine | Vol. 6, No. 3

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Page 15: CIM Magazine May 2011

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Outotec's offering is now enhanced by the addition of Larox filters. For more information, visit us at CIM 2011 Montreal CA - Booth #2015.

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Page 16: CIM Magazine May 2011

news

16 | CIM Magazine | Vol. 6, No. 3

What a difference 12 years canmake. When Pierre Gratton was firstappointed to the Mining Associationof Canada in 1999 as vice-president ofsustainable development and publicaffairs, the dot-com bubble was aboutto burst and mining was considered asunset industry. The emphasis thenwas on diversification and away fromthe traditional resource sector.

Since then, the resource sector hasrebounded (notwithstanding the crisisof 2008) and mining is once again invogue. All in all, it is a promising timefor the industry – and for Gratton inhis new role as president and CEO ofMAC. Before this appointment, he hadserved as president and CEO of theMining Association of British Colum-bia since 2008.

“During the dot-com era, it wastough getting any kind of attention inOttawa,” recalled the 46-year-oldMontreal native. “But the world haschanged. People now realize that thereis essentially one economy and it’s nei-ther old nor new, neither traditionalnor hi-tech. There’s also a greaterrecognition that mining, capital-inten-sive as it is, drives the high-techindustry. Mining companies are con-stantly looking at ways to improveefficiency and deal with environmentalchallenges.”

Gratton is confident that the funda-mentals are in place for a long-termupward cycle. “We’ll continue to seedips, sure, but the dips could end upbeing better than the peaks were 10years ago,” he said. “One thing is cer-tain: this is a new era. The primeminister has referred to Canada as an‘energy superpower.’ When he saysthat, he is mainly referring to the oilsands, which are largely mining opera-tions. What Canada is, in fact, is amining superpower.”

Whereas in the past, MAC focusedprimarily on domestic matters, its

New MAC president poised for national stage Pierre Gratton vows to push back on “regulatory creep”

By Thom Loree

mandate has expanded to includeinternational concerns. “The globalissues with which the industry iswrestling with have become moreprominent and complex, whether theyare trade, human rights or corporatesocial responsibility,” Gratton noted.

In 2004, Gratton played a pivotalrole in developing MAC’s award-win-ning initiative Towards SustainableMining (TSM), which set out perform-ance indicators that MAC membersare required to implement and reporton annually. Today, TSM is being usedat advanced exploration projects bothat home and abroad.

“The program has advanced to thestage where it is really about imple-mentation,” explained Gratton. “Agrowing number of our Canadian-based member companies areapplying TSM to their off-shore proj-ects and this, in turn, means greatercredibility and support. As a result,Canada’s mining companies are beingrecognized worldwide for what they’redoing in the area of corporate socialresponsibility.”

Efforts by MAC and other industryorganizations to persuade governmentto cut the corporate income tax ratehave recently met with success. At thebeginning of this year, the tax rate waslowered to 16.5 per cent from 18 percent, and further reductions areexpected. What this means, said Grat-ton, is that the mining industry’sconcerns about tax rates have beenlargely addressed.

With tax competitiveness essen-tially a fait accompli, MAC has turnedits attention to regulatory improve-ments. “We’ve started to make someheadway in that area,” said Gratton.“For example, amendments to theCanadian Environmental AssessmentAct have put the Canadian Environ-mental Assessment Agency in chargeof comprehensive studies, eliminatinga lot of the delay and uncertainty thatexisted before.”

Gratton cautioned against what hetermed “regulatory creep,” that is, thecontinual expansion of the federalgovernment into provincial jurisdic-tions. “The emphasis now is onbuilding greater provincial-federal har-monization, avoiding duplication, andgenerally having more thoughtful,consistent and workable regulatoryregimes,” he explained.

The latest challenges facing indus-try are what Gratton referred to as“good problems,” the problems asso-ciated with success. “As the industryexpands in response to rising com-modity prices, we are going to see agreater focus on Canada’s infrastruc-ture – transportation and energy – tomake sure we can get our products tomarket efficiently and cost-effec-tively,” he said. “And we are going tohave to intensify our efforts in gettingmore people interested in working inmining. The human resource chal-lenges we are already facing are onlygoing to intensify.” CIM

Pierre Gratton said he will focus on regulatoryharmonization and human resource challenges.

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SAVING MINES MILLIONSIN ENERGY COSTS

Mines of the future will be going deeper, resulting in higher costs for infrastructure, ventilation and energy. How your mine addresses these future challenges will separate your company from the rest of the mining industry.

BESTECH, one of Canada’s leading firms specializing in engineering, automation, so f tware deve lopment and energy management has created NRG1-ECO. NRG1-ECO (Energy Consumption Optimization) is a mine-wide energy management system that can save mines millions of dollars in energy costs per year. NRG1-ECO can be applied to automated equipment and processes such as compressors, pumps and ventilation to significantly reduce energy consumption.

NRG1-ECO was developed with an open architecture so that it will work with technology already in use at any mine.Integration is at the core of NRG1-ECO and its ability to incorporate with new or existing mine technology offers mines, old or new, the opportunity to realize significant energy savings.

The NRG1-ECO system can be customized to to reflect each mine’s needs and protocols in order to leverage the highest ROI for each mine site.

This year, NRG1-ECO was installed at Vale’s Coleman Mine and Xstrata Nickel’s Fraser Mine, both in Sudbury, Ontario, Canada.

“We worked together with BESTECH on what was needed in the industry and they’ve completed the development of NRG1-ECO’s Ventilation-On-Demand management tool for us,” says Cheryl Allen, Chief Engineer - Ventilation, Vale Mines Mill Technical Services, Canadian Operation.

A mine ventilation system usually operates at peak capacity 100 per cent of the time. NRG1-ECO’s VOD (Ventilation-On-Demand) module enables the mine to instantly control the ventilation system’s air flow to when and where it is needed. This allows a mine to reduce its ventilation costs by as much as 30 per cent, which represents significant savings given that ventilation costs make up almost 50 per cent of a mine’s energy costs.

BESTECH’s NRG1-ECO technology is attracting world-wide attention from other mining giants, including North America’s fastest growing senior gold producer, Goldcorp Inc. “We looked at two different systems. It seemed BESTECH was offering a complete package from ground up. We’re hoping to go ahead with NRG1-ECO in a two-stage approach. First, have the system up and running on two levels in the Hoyle Pond Mine in Timmins and if that proves to be satisfactory, then we will expand it to the rest of the mine,” says Imola Götz, Chief Engineer, Hoyle Pond Mine, Goldcorp.”

Assistance with Energy-Efficiency Grants and Rebate applications is available to mines for both the initial NRG1-ECO site assessment and commissioning to help leverage increased profitability and savings.

“We worked together with BESTECH on what was needed in the industry and they’ve completed the development of NRG1-ECO’s Ventilation-On-Demand management tool for us.”

Cheryl Allen, Chief Engineer - Ventilation, Vale Mines Mill Technical Services, Canadian Operation.

To find out more information on NRG1-ECO, go to www.bestech.com/NRG1-ECO.

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NRG1-ECO Web Based HMIThe Web Based HMI allows remote access to standard process control HMI. Shown here is a VFD Fan under cascading closed loop PID control.

Many types of environmental monitoring sensors can be integrated into the NRG1-ECO control system to monitor various parameters including temperature, relative humidity, carbon monoxide (CO), carbon dioxide (CO2) and nitrogen monoxide (NO); providing real-time data to support Ventilation-On-Demand.

Marc Boudreau (BESTECH President & CEO), Sarah Paajanen (BESTECH Project Manager) and Cheryl Allen (Vale Chief Ventilation Engineer/Project Manager). Photo Provided by Vale.

w w w . b e s t e c h . c o m

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Mineral development agreements cause of contentionLack of understanding leads to unmet expectations

By Paul Brent

Metals at the WEF. Banks is also anadjunct professor with the University ofColorado Law School.

Among the key findings of the WEFstudy were that many mineral develop-ment agreements led to unrealisticexpectations. “This theme came throughover and over again,” said Banks. Goinginto negotiations, there was an insuffi-cient understanding of the “nature,scope and timing of the benefits andcosts” from the projects during the earlystages of negotiation and development,he said. Frustrations also included thetiming of tax revenue flowing out of theproject, and the speed and depth ofemployment from the project.

A second common criticism, particu-larly in developing countries, wastermed as “asymmetric bargainingpower.” Mining companies typicallyhave hard-won expertise drawing updevelopment deals, while governmentsoften have little or no experience doingsuch deals. “When you have this type ofasymmetry it can really impair the per-ceived legitimacy of these types ofagreements,” Banks explained.

Another issue is agreements in whichkey details of the deal are not made pub-lic. “When that is the case, then peoplewill automatically assume the worstabout what is in the agreement and abouthow the agreement was negotiated,” headded. “So while there might be compet-itive advantages to keeping agreementssecret, people need to understand thatthere are often a lot of costs.”

The WEF intends to hold eight to 10multi-stakeholder dialogue sessionsaround the world over the next year,starting with a meeting in Brazil in April.“Ideally, some pilot projects might bedeveloped on one or two of these specificrecommendations or proposed solu-tions,” said Banks. “And the hope is thata framework for mineral developmentarrangements could be developed.” CIM

18 | CIM Magazine | Vol. 6, No. 3

prices have skyrocketed and people feellike they didn’t cut a good enough deal,and they are not getting enough of ashare of the pie.”

Over the past year, the WEF held aseries of meetings in Columbia, Tanzaniaand Mongolia. As well, stakeholder con-sultations and interviews wereconducted with the resources industry,government, civil society (includingNGOs) and other relevant actors (acade-mics, consultants) in Africa, Asia-Pacificand Latin America to explore the issue ofmineral development agreements. “Itseemed like a very good idea to try tolook at what exactly were the dynamicsof these types of agreements,” saidBanks, a former Newmont Mining Corp.executive who chairs the Global AgendaCouncil on the Future of Mining and

Mineral development agreementsbetween governments and miningfirms are increasingly becoming flash-points for controversy, according toWorld Economic Forum (WEF) execu-tive Britt Banks.

In many parts of the world, mineraldevelopment agreements are heraldedwith promises of jobs and revenue,only to quickly fall short of expecta-tions, Banks said in his keynote addressat the Mining, People and the Environ-ment conference held in conjunctionwith the PDAC Convention in Torontoin March. “Five years later it seems as ifabsolutely nobody is happy with thesituation,” he explained. “The newgovernment that has taken power sincethen says, ‘Wait a minute [we] didn’tnegotiate this agreement,’ commodity

Page 19: CIM Magazine May 2011

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South Africa’s mining industry is open for business. Thatwas the message that the mining delegation from SouthAfrica wanted to make sure was heard loud and clear at thisyear’s PDAC Convention held in Toronto in early March.

Led by South African Minister of Mineral Resources SusanShabangu, a delegation of business and labour representa-tives of the Mining Industry Growth and Development TaskTeam was at the international gathering to allay investor’sconcerns about the recent Fraser Institute report that rankedSouth Africa 67th out of 79 in mining jurisdictions.

Shabangu said that to encourage development, it is vitalthat South Africa’s policy-makers continually review theirlegal framework in order to align it with broader nationalstrategies that guide future development. She stressed thatany policy framework for future development must be tai-lored to South Africa’s needs – just as Brazil and otheremerging economies have done with great success.

Proposed amendments to the Mineral and PetroleumResource Development Act were a hot topic at the seminar.

South Africa looking forwardGovernment delegation addresses issues plaguing reputation

By Jeff Borsato

Attendees had many questions regarding Section 11 of theAct, which regulates the transferability of prospecting andmining rights. Shabangu outlined how Section 11 is beingcarefully reviewed to ensure that ambiguities in some of theprovisions are removed. As well, she said that a streamliningof the licensing processes to a virtual “one-stop shop” formining requirements would be instituted. She added that theministry is reducing the wait time for mining and prospect-ing licenses from six months to three months. The ministeris also focused on strengthening the provisions to improveworking conditions in mines, as well as publishing a newmining charter that includes clearer requirements.

On her first diplomatic assignment, Mohau Pheko, SouthAfrica’s high commissioner to Canada, emphasized theimportance of a collaborative relationship between the min-erals industry, its workers and the citizens of South Africa asa whole. “Collaboration will help to create a fair playing fieldbetween the state and industry,” she said. Pheko outlined thegovernment’s vision to ensure the domestic supply of key

Page 21: CIM Magazine May 2011

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materials such as coal. She also highlighted core issues oflocal consumption versus export for coal, and how maintain-ing a steady domestic supply remains a key issue for hergovernment.

Senzeni Zokwana, president of the National Union ofMine Workers and of the International Federation ofChemical, Energy, Mine and General Workers’ Union,focused his remarks on the people who make up the indus-try. Employing approximately 460,000 people directly and400,000 on the supply and service side, the minerals andexploration industry remains a vital component of South

Africa’s economy. Zokwana pointed to ongoing efforts bythe government and unions to promote not just academiccredentials of workers, but also direct skills, includingtrades. “Engaging youth is critical to South Africa’s contin-ued development, and we must face the challenge toengage firms to develop skills needed for the future,” hesaid. Both Zokwana and Shabangu referred to a recent pol-icy framework released by the South African governmentknown as “The New Growth Path,” which prioritizes themining industry value chain as one of the “growth nodes”of the economy. CIM

May 2011 | 21

The euphoric atmosphere of the2011 PDAC Convention dissipatedsomewhat down the road at theRadisson Hotel in Toronto, where asobering session on the state of themining industry in South Africatook place in tandem with theannual gathering of global miners.The truth is that South Africa hasmissed out on the commodityboom other countries have enjoyedbecause of the uncertainty of itsregulatory environment, explainedBruce Shapiro, president ofMineAfrica Inc., the organizer ofthe event.

The “South Africa’s Mining Industry: The Perceptionsand Reality” seminar drew roughly 75 participants to hearlawyers from South Africa and Canada discuss the country’sregulations and the possibility of mining assets beingnationalized. While most presenters concluded that nation-alization was unlikely, even though the option is beinginvestigated by the ruling African National Congress, theycould not ignore the fact that South Africa has fallen to 67thplace out of 79 countries in the Fraser Institute’s annualranking of ability to attract investment in mineral explo-ration. “It’s too soon to tell if we face a crisis,” said PeterLeon, a partner at Webber Wentzel Attorneys in SouthAfrica. But he added that even though the country has vastmineral reserves, mining GDP declined one per cent peryear during a seven-year boom period for commodities.

When South Africa introduced its mining charter in2002, the idea was to make changes to redress historicalimbalances entrenched by apartheid. But regulatory uncer-tainty, vague licensing requirements and a few high-profilecases of alleged corruption have discouraged investment in

Lawyers raise concerns about South African policy Increasing regulations creating uncertainty for mining investment

By Virginia Heffernan

the sector. To address these inade-quacies, the country has placed amoratorium on issuing prospectinglicences and set up a task force toreview the mining laws.

While the legal experts wereencouraged by the promise of anew electronic system to track min-eral rights, they remain dismayedby the vague demands of recentamendments to the mining charterconcerning beneficiation, commu-nity development and blackeconomic empowerment, includingthe requirement for a minimum tar-get of 26 per cent ownership of

mining companies by historically disadvantaged SouthAfricans by 2014. Presenters also voiced concerns about therecent launch of a state-owned mining company called theAfrican Exploration Mining and Finance Corporation. Thenational company may be given exemptions under the Min-ing Act, would be competing with the private sector formineral resources, would be self-regulating and would relyon taxpayer funding, all negatives in their eyes.

Most of the hope for a better regulatory environmentrests with South African Mineral Resources Minister SusanShabangu, who was in Toronto to attend the PDAC Conven-tion and allay investor concerns. She is reviewing the lack oftransparency in the system and came out publicly againstnationalization at the Mining Indaba conference held inCape Town in February.

“I don’t think nationalization is a real threat, but it isunfortunate that it is being investigated by the government,”said Manus Booysen, another partner in Webber Wentzel.“And it’s disappointing that we have slipped once again onthe Fraser Institute report.” CIM

Peter Leon, of SouthAfrican law firm WebberWentzel

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The TMX Group and London StockExchange Group have a tough chal-lenge ahead of them. How do theyconvince the over 1,700 mining com-panies listed on their combinedplatforms and investors with $1.19 tril-lion in market capitalization that themerger will provide a clear net benefitto the markets?

The TMX Group took the first stepby bringing the discussion to the min-ing companies and investors thatconverged in Toronto in March for the2011 PDAC International Convention,Trade Show and Investors Exchange.Of the 27,700 attendees at the confer-ence (which shattered last year’s recordof 22,000) an estimated one-quarterwere international delegates, represent-ing over 100 countries.

Talking up the merits of the mergerTMX Group presents its case at the PDAC Convention

By Mike Paduada

The PDAC Convention gave theTMX Group an opportunity to presentits case and address questions in a last-minute addition to the technicalsession program. Kevan Cowan, TMXGroup president of TSX Markets andthe group head of equities, explainedthat this is a strategic move in the faceof impending global consolidation thatwill allow the merged group to reduceoverhead, improve infrastructure andsecure a strong, competitive position inglobal capital markets.

According to Cowan, the benefitsof the union include competitive pricing, high-quality service and unri-valed access to capital markets. Forthose that are content with Canada’scurrent top standing in the globalmining equity marketplace, “we may

risk losing that competitive advantageif we don’t participate in consolidationinternationally,” Cowan added.

“The TMX Group has been quite cen-tral to the fact that Canada has been aworld leader in this industry,” explainedTony Andrews, PDAC executivedirector. “They have developed a nichemarket specialization in mining. Othercountries want to emulate Canada andstart a capital market that facilitatesraising money for junior companies.We have to be aware that others wouldlike to do this.”

Listening to what PDAC membershad to say on the merger, it seems thatthey are taking a wait-and-see approachat this point. Executives from over 20mining companies in the investor’sexchange, ranging from small juniors tomultinational majors, were asked theiropinion. All declined to comment offi-cially, but some common apprehensionswere about listing fees and improvingcapital markets. “My phone certainly has-n’t been ringing off the hook with peopleexpressing concerns,” said Andrews.“From what I’ve heard, people feel thereis little to no risk in the short term.”

Weighing in on the next phase of themerger discussion, Andrews applaudedthe Ontario government's decision toform a select committee. Made up ofprovincial parliamentarians from theLiberal, Progressive Conservative andNDP parties, the committee was taskedwith reviewing the impact of the merger;their report was released in April. Whileit did not favour or oppose the mergeroutright, it did make nine recommenda-tions. Among them was that thereshould be equal representation of theTMX on the board of directors. Underthe current proposed agreement, theTMX occupies seven out of 15 seats onthe board. The Ontario select commit-tee's recommendations are not binding.The ultimate decision rests in the handsof the federal government. CIM

22 | CIM Magazine | Vol. 6, No. 3

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Page 24: CIM Magazine May 2011

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After a year-long review, the BritishColumbia government’s EnvironmentalAssessment Office granted an environ-mental certificate to BC Hydro for itsproposed Northwest Transmission Lineproject. By bringing inexpensive electricity to northwestern BritishColumbia, most of which is outside theprovince’s power grid, the new line isexpected to have far-reaching economicbenefits for an underdeveloped part ofthe province.

Gavin Dirom, president and CEOof the Association for Mineral Explo-ration British Columbia, says theregion has “world-class geology,” but

BC Hydro gets approval for Northwest Transmission Line Power line will energize mine development in northwestern B.C.

By Peter Caulfield

development has been limited by alack of infrastructure. “Granting theenvironmental assessment certificatefor the line represents the start of anew era for mineral exploration anddevelopment in northwestern B.C.,”he said. “Replacing diesel-generatedwith low-cost hydro-electric powerwill make a huge difference.”

The proposed $404-million projectincludes a new 287-kilovolt transmis-sion line that will extend 344kilometres from the Skeena substa-tion south of Terrace, along theHighway 37 corridor to a new substa-tion near Bob Quinn Lake. The

project will also include new accessroads and an upgrade to the Skeenasubstation.

According to Dirom, there aremore than 935 mineral occurrencesin the region that could benefit fromthe transmission line. Of that num-ber, 67 are in the resource category.And the provincial government hasidentified 25 major exploration proj-ects in the northwest.

Pierre Gratton, outgoing presidentand CEO of the Mining Association ofBC, said the power line has the poten-tial to attract more than $15 billion ininvestment, create 10,700 jobs and

24 | CIM Magazine | Vol. 6, No. 3

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Page 25: CIM Magazine May 2011

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generate $300 million in annual taxrevenues for governments.

The B.C. Ministry of Environmentannounced that the three-year con-struction period, which will begin inlate spring or early summer 2011 andconclude at the end of 2013, isexpected to generate an average of860 person-years of full-time directemployment. The operational phaseof the project is expected to generatemore than 36 person-years of employ-ment over the life of the project.

AltaGas, a Calgary-based company,recently signed an agreement with BCHydro to build and develop the For-rest Kerr project. The $700-millionproject will provide 195 megawatts ofpower to the Northwest TransmissionLine. Work has already begun on theproject and a large construction camphas been built to house the workersneeded to get the plan underway.

Some well-known explorationprojects that are also expected to ben-efit from the new line include: RedChris (Imperial Metals Corporation),Galore Creek (Teck Resources/NovaGold Resources Inc.), Kutcho (Cap-stone Mining Corporation) andMount Klappan (Fortune MineralsLtd.).

Byng Giraud, vice-president, cor-porate affairs at Imperial Metals,expects that Imperial’s Red Chrisdevelopment, a planned 30,000-tonne-per-day copper-gold open pitmine, will likely be the first majorconsumer of power from the line. Thecompany anticipates that it will beable to connect to the Bob Quinnhydro site, 120 kilometres away froma proposed mill. “The new power linewill make Red Chris a more attractiveinvestment,” Giraud said.

Before BC Hydro can start clearingthe right-of-way to begin constructionof the line, it needs the permissionfrom federal environmental assess-ment regulators, who also examinedthe project. Bruce Barrett, BC Hydro’svice-president of transmission anddistribution major projects, said theproject should receive approval in thespring of 2011.

BC Hydro has also signed impactbenefit agreements (IBAs) with the Nisga’a, Kitselas, Tahltan and the Met-lakatla First Nations. Negotiations arecurrently underway with other FirstNations. Glenn Bennett, chief council-lor of Kitselas First Nation, said, “Theline will be extremely beneficial to the

region, which is very depressed eco-nomically. We need the employment.”

Bennett said the Kitselas signed anIBA with BC Hydro about six monthsago. “We received a one-time pay-ment from BC Hydro and the right tobid on construction contracts pertain-ing to building the line,” he said. CIM

May 2011 | 25

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In April, Montreal-basedengineering and constructiongiant SNC-Lavalin celebratedits centennial. “This is atremendous achievement,”declared Pierre Duhaime, thecompany’s president andCEO, at the SNC-LavalinInternational Symposium.“We’re very proud of everyone of our employees, bothpast and present, who havemade SNC-Lavalin the amaz-ing company that it is today.”

Looking back at the his-tory of the company is liketracing the development ofmodern Quebec.

After opening his one-manengineering consulting officein Montreal in 1911, ArthurSurveyer developed a strongreputation for excellence inengineering. In 1937, Sur-veyer entered into a partnership withEmil Nenniger and Georges Chênev-ert. A decade later, the name waschanged to Surveyer, Nenniger andChênevert. In the late 1960s, the firmcompleted Manic-5, still the largestmultiple-arch dam in the world. In1967, the company became SNC as itexpanded its services to include proj-ect management and turnkey projects.By 1977, SNC had operations in over40 countries and continued to growthrough the decade.

Lalonde and Valois formed in 1936to focus on highway and institutionalprojects. The company was renamedLalonde, Valois, Lamarre, Valois andAssociates (LVLVA) in 1963 and even-tually became Lavalin in 1972. Lavalin’sprojects included building Alcan’sSaguenay-Lac-Saint-Jean smelter andthe James Bay hydroelectric develop-ment project.

In 1991, the two largest engineeringcompanies in Canada merged to become

SNC-Lavalin celebrates 100 years Engineering and construction firm maintains strong presence in mining

By Heather Ednie

SNC-Lavalin, which has continued togrow and expand internationally overthe last two decades.

The mining and metallurgy sectorhas been an important part of theSNC-Lavalin portfolio, said FerozAshraf, executive vice-president ofglobal mining and metallurgy opera-tions. “Our multi-product expertisecovers aluminum, alumina, base met-als, precious metals, phosphate,potash, and mine reclamation and tail-ings, to name a few,” explained Ashraf.“We have carried out successful proj-ects for all of the major clients in thissector, often in challenging and remotelocations.” SNC-Lavalin currently hasmulti-year contracts with AngloAmer-ican, Vale and Freeport-McMoRan,and has recently signed an agreementwith BHP Billiton for its potash, dia-mond and speciality minerals sector.

As part of its centennial celebrations,the company has launched an initiativecalled 100 Acts of WE CARE. It will

recognize 100 examples of employeeengagement in his or her communitythat reflect the sustainable developmentvalues of SNC-Lavalin. CIM

26 | CIM Magazine | Vol. 6, No. 3

SNC-Lavalin is providing its engineering, procurement, construction management expertise at the Ambatovy nickel project inMadagascar, Africa.

Richard Leclerc is Peregrine MetalsLtd.’s new president. A registeredprofessional mining engineer,Leclerc has 29 years of miningexperience. Most recently, he wasvice-president of operations forAndean Resources Ltd. andimmediately prior to that, COO ofCentenario Copper Corporation.Former president at Peregrine EricFriedland was appointed CEO andwill continue in his position aschairman. The company’s formerCOO Rod Davey continues on withthe company as an executive vice-president.

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Sometimes the best results come from doing some-thing creative with the tools you know and trust.An illustration of this can be found at Anglo Amer-ican’s Barro Alto project in Brazil, where

engineering, procurement, construction management(EPCM) contractor SNC-Lavalin Minerconsult (SLM) useda sound project management approach and innovativedesign to optimize the use of proven technology in a con-ventional pyrometallurgical facility to process saprolite oreto produce ferronickel.

The project was managed by an integrated team in closecoordination with Anglo American general project directorEuler Piantino and his team of experts. The EPCM phaseof the Barro Alto project was begun by SLM personnel inJanuary 2007 and is scheduled to be completed this June.At its peak in late 2008 and early 2009, the company hadover 400 employees on the project, providing services fromdetailed engineering through to completion of the pre-commissioning stage. The EPCM phase, directed by ReneNavarro, SNC-Lavalin’s project manager, is effectively com-pleted and the plant facilities were turned over to theowner for commissioning, with the first metal produced inMarch, 2011.

Reliable innovationThroughout the plant, proven technology and equip-

ment were selected, then carefully laid out and arranged

to optimize plant performance.The topography of the siteallowed the selection of themost advantageous location forthe operation. “The way weconfigured the equipment – thewhole layout of the plant –takes advantage of gravity,” saysJohn McCreight, senior projectcontrol/risk manager, BarroAlto project, SNC-Lavalin. “Theentire operation flows down-hill. The crushing station islocated at the highest point,and from there, ore movesdown to end at the lowestpoint: the load-out area.”

The deposit is located in veryaged, fractured rock, enabling itto be mined using a front-endloader. The fragmented oreenters the mill through rollcrushers, or sizers, and from

there it is conveyed to a homogenized ore lay-down areaand blended. The blended ore is conveyed to the dryingstation to achieve the minimum humidity to make the cal-cining process more efficient. The rainy season in theregion stretches from October through March, so humidityand moisture in the ore is a concern.

The ore crushing and drying plant will handle 2.4 mil-lion tonnes of ore annually. The dry ore is fed into a rotarykiln, where coal is added, both to raise the temperature andas a reducing agent to form calcine. From the kiln, the oreis fed into an electric induction furnace. “We incorporatedtwo rotary kiln electric furnace lines to maintain a contin-uous feed,” McCreight says.

From the furnace, the slag is tapped off and the ferrousnickel mineral fed to a simple refinery where carbon andimpurities are burned off, producing a ferrous nickel liquidthat feeds through a tundish. The final product, granulatedpellet-like powder, is loaded into large bags for shipment,primarily to producers of stainless steel.

Environmental management at the site is relativelystraightforward. “The slag tapped off the furnace is granu-lated and stockpiled on site – it’s relatively inert,” McCreightsays. “We have a detailed water management system,designed so that water will only be pumped from the localriver during a short period of the rainy season, when there’san excess of water in the region, to minimize any impact onthe local farming industry and the community.”

upfrontE N G I N E E R I N G E X C H A N G E b y H e a t h e r E d n i e

Innovation needs no risksUsing tried-and-true technology for a world-class operation

The first metal was produced at Anglo American’s Barro Alto nickel project in March.

Courtesy of V

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Merger and performanceBarro Alto was the first full EPCM project for the SNC-

Lavalin Minerconsult office in Belo Horizonte, Brazil,following SNC-Lavalin’s acquisition of Minerconsult in2007. Local SLM engineering staff were challenged withexecuting the detailed design scope of work while simulta-neously incorporating new practices and procedures aspart of the merger.

“There were certain cultural differences between thelocal group, used to acting as consultants, and the globalSNC-Lavalin approach as a full engineering contractor,”McCreight explains. “It took time to bring the designthinking onto the same page. And it had to be done at thesame time as we met our performance obligations on theproject.”

In the end, the merging of practices was successful. “I’venever met an engineer anywhere around the world whodidn’t want to do a good job,” McCreight says. Currently,Anglo American plans to achieve full production at BarroAlto in 2012, and the ramp-up period is already underway.SLM’s job was completed successfully, leaving an efficientpyrometallurgical plant of sound design to supply ferro -nickel for the next quarter century. CIM

upfrontE N G I N E E R I N G E X C H A N G E

A fresh water recirculation pond, containing over 1.85million cubic metres of water (or up to 10 months of nor-mal operation water needs), was constructed downhillfrom the plant to collect drainage and run-off water andrecirculate it back into the cooling and service water systems.

Well-designed controlsA proven software platform and industry best practices

were the foundation for an overall centralized and fullyelectronic control system implemented at the Barro Altoproject. FLSmidth developed the state-of-the-art burnermanagement system controls and software for use on thedryers and rotary kilns. Initially, the kilns will be poweredby gas-fired burners, but are set up to be powered by pul-verized coal in the future.

All systems and equipment are controlled from a centralcontrol room, and managed and operated through the useof a software program incorporated into the overall controlsystem. “The development of the control software requiredcomprehensive coordination with all major equipmentsuppliers, to ensure that common control languages andcontrol methodologies were employed that would allowequipment system controls to ‘talk’ to each other,”McCreight says.

Throughout the design process, the amount of electricalpower and instrument and control cables required grew tounmanageable levels, so a cable design rationalization pro-gram was introduced to maximize the use ofmulti-conductor cables. “In some areas, we reduced thequantity of cables by up to 60 per cent,” McCreightexplains. “It resulted in savings in installation costs andscheduling.”

May 2011 | 29

PROJECT AT A GLANCE

BARRO ALTOOWNER: Anglo American

LOCATION: State of Goiás, Brazil

CAPITAL COST (full project): US$1.98 billion

PLANNED PRODUCTION RATE: 36,000 tonnes content in ferronickel annually

OPERATIONS STARTUP: March 2011

EXPECTED MINE LIFE: 25+ years

• Nearly 30,000 tonnes structural steel used

• More than 10,000 design documents prepared

• Over 33,000 vendor documents received, reviewed,approved

Page 30: CIM Magazine May 2011

30 | CIM Magazine | Vol. 6, No. 3

Unlike most professions, mining and mineral explo-ration business is often conducted in secludedlocations, far from any established communicationsinfrastructure. However, thanks to satellite technol-

ogy, the world has moved closer as new technologiesemerge. Launched in the second half of 2010, Inmarsat’sIsatPhone Pro has made staying in touch from distantlocales easier, more efficient and affordable.

Supplying the most reliable satellite linkFormed in 1979 to meet the emergency communica-

tions needs of maritime fleets, today, Inmarsat hasgeostationary orbit satellites located 36,000 kilometresabove the equator. Compared to low-earth orbit satellites,

located 800 kilometres above earth, Inmarsat’ssatellites ensure greater reliability without climaticinterference.

The IsatPhone Pro utilizes the Inmarsat-4 satel-lites, winner of the 2010 Royal Academy ofEngineering’s MacRobert Award for innovation. Noother satellite phone on the market offers globalcoverage from geostationary satellites in L-band.“We have L-Band satellite frequency, given to us forour services for emergency communications forboats,” says Simon Curran, Inmarsat’s market devel-opment manager responsible for the mining sector.“It is not affected by the elements, so regardless ofthe climate, there is no interference.”

According to Curran, most satellite phoneproviders use low-earth orbit constellations or oper-ate with geostationary satellites, but lack the globalreach of Inmarsat. “As the satellites sit above theequator, the further towards the poles you go, theharder it is to achieve a look angle and thus be ableto connect,” Curran explains. “We have tested thephone well into Alaska and it functioned fine.”

Crisis managementIn less than a year on the market, the IsatPhone

Pro has already been widely adopted for use in crisiszones worldwide. The emergency communicationsaid agency, Télécoms Sans Frontières, has used theIsatPhone Pro, deploying it over the past year inHaiti, Indonesia and Japan. Inmarsat is able to mon-itor usage and has noted traffic increasedsignificantly over Japan following the triple disaster.

“The satellite forces down 193 beams, like a hon-eycomb,” Curran says. “We can monitor usage, andcan transfer capacity from lower usage areas to hot-spot areas, either automatically or reactively.”

Once a mine is fully operational with infrastructure inplace, the IsatPhone Pro can be used as an emergencyreserve for the mine’s established communications infra-structure. Should bad weather knock out the mine’scommunications system, the IsatPhone Pro will still work,because the L-band frequency will remain active. “It guaran-tees permanent communications capabilities, augmentingthe safety of the operation,” Curran says. “As a backup solu-tion, it can be a life saver.”

As well, Inmarsat has agreed to become the commercialoperator of another L-band satellite, named Alphasat,which will provide supplemental L-band coverage acrossEurope, the Middle East and Africa. It is scheduled to beready for 2012.

upfrontT E C H N O L O G Y b y H e a t h e r E d n i e

Staying connected around the globeIsatPhone Pro provides reliable link in the most remote regions

The IsatPhone Pro provides remote professionals with reliable, high-quality voice connectivity inthe most distant locations.

Courtesy of S

tratos

Page 31: CIM Magazine May 2011

Built for distance and enduranceThe IsatPhone Pro is built to withstand many climates,

including heavy rains and temperatures ranging fromminus 20 to plus 55 degrees Celsius. It is dust, splash andshock resistant and humidity tolerant. The IsatPhone Prooffers satellite telephone, voice mail, text and email mes-saging, and GPS location data. Using a Lithium-ion, 3.7volt battery, it claims a charge life of up to 65 per centlonger than that of other satellite phones.“The IsatPhonePro sports the longest battery life, with 100 hours standbyand eight hours talk,” Curran says. “With built-in Blue-tooth technology, the first for global satellite phones, youcan put the handset outside and stay inside to make yourcall, protected from the elements.”

The phone’s interface was designed to resemble today’scell phones for ease of use. It offers a wide array of features,including a speaker phone option, conferencing and speeddialling. Contacts can be synchronized with MicrosoftOutlook 2007. As well, the phone supports eight lan-guages: English, French, Spanish, Portuguese, Japanese,Chinese, Arabic and Russian. A 2.4 kbps voice codec isincorporated to ensure voice quality is clear and users canbe easily understood.

As of March, Inmarsat’s IsatPhone Pro now offers dataservice. Using circuit-switched data capability, a data rateof up to 20 kbps is included in a firmware upgrade. Endusers are able to send anything they normally wouldfrom a Smart phone – email, attachments, documentsand photos.

Cost is a major advantage of the IsatPhone. “We fixedour price point below anything in the market,” Curransays. “We garnered a lot of interest that way. Althoughthere are different payment structures available, in general,the handset costs approximately US$600 and calls averagearound US$1.00 per minute.”

Using the latest components and manufacturing tech-nologies allowed Inmarsat to launch the phone at acompetitive price. “This opens up a new market for theproduct – those who previously considered satellitephones too expensive to justify,” Curran adds. “It is alsoattractive to existing satellite phone users looking for a net-work with a longer life expectancy than their currentprovider.” The satellite constellation is expected to remainin operation until the mid-2020s, making the IsatPhonePro a smart option for remote operations or as an emer-gency communications backup that will not have to bereplaced due to an imminent constellation failure.

Gerbrand Schalkwijk, vice-president of global enter-prise sales for Stratos, a leading distributor of remotecommunications devices and services, explains that theIsatPhone Pro offers a competitive advantage in compari-son to other handheld satellite phones. “The services offerhigh-quality voice connectivity via small, affordableequipment – ideal for remote workers in the oil and gas,mining, government, media and first-responder commu-nities,” he explains. CIM

May 2011 | 31

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Page 32: CIM Magazine May 2011

32 | CIM Magazine | Vol. 6, No. 3

The Canadian Office of the Extractive Sector CSRCounsellor has, after an eight-month period of exten-sive consultation and best practice research, launcheda new dispute resolution process to enable companies

and communities to build solutions to CSR-related chal-lenges. In the course of the creating the mechanism, saysMarketa Evans, the CSR Counsellor, one of the fundamentalquestions that various stakeholders and the Office had toaddress was: Given that the review process is voluntary, howshould the Office proceed?

Building the process“I began with a lot of informal outreach to civil society,

to industry and to socially conscious investors, and fromthere, began a formal consultation process,” explains Evans.“At the same time, we benchmarked dispute mechanisms

globally. There are a lot of mecha-nisms out there – we aimed to identifykey lessons from those examples, tounderstand the critiques of the vari-ous processes and determine whatbest to model ourselves on.”

The main complaints about othermechanisms included ineffectiveprocesses, poor outcomes, perceivedbias and weak infrastructures. “Wereally tried to do our homework, look-ing at all angles,” Evans adds. “Thebroad consensus demand was for aprocess that could deliver results onthe ground.”

The review process applies to indi-viduals, groups or communities thatbelieve that they have been adverselyaffected by actions of a Canadian min-ing, oil or gas company. As well, if aCanadian extractive sector companydeems that it is the subject ofunfounded accusations with regardsto its conduct abroad, it may make arequest for review.

The process is based on perform-ance standards endorsed by theGovernment of Canada including: theInternational Finance Corporation(IFC) Performance Standards; the Vol-untary Principles on Security andHuman Rights; The Global ReportingInitiative; and the OECD Guidelinesfor Multinational Enterprises.

It is designed to promote dialogue among the stakehold-ers to find solutions to disputes between parties utilizing acooperative problem-solving approach. While the Office ofthe Extractive Sector has no adjudicative reach, it can con-duct reviews and provide advice on the endorsed standards.Its goal is to act as an honest broker that brings stakeholderstogether to address problems and resolve disputes.

How to make a request for reviewTo begin the process, a request for review is submitted to

the Office, which then acknowledges the request and advisesthe responding party. Over the next 40 business days, theOffice determines the eligibility of the request based on anumber of criteria including: Did the activity take place afterOctober 19, 2009? Was the request for a review made withina reasonable time? Was there an effort to address the issue?

upfrontS U S T A I N A B I L I T Y b y H e a t h e r E d n i e

The review process

CSR Counsellor review process seeks conciliatory approachConsultation drives creation of dispute resolution process

Repu

blishe

d with

permission

of the

Office of the

Extractive Se

ctor CSR

Cou

nsellor

Page 33: CIM Magazine May 2011

upfrontS U S T A I N A B I L I T Y

How valid is the supporting information (i.e., is it based onmore than media reports and unverified information)?

If the request is eligible, the review process begins andcan take months, starting with a voluntary informal media-tion process, leading to both parties signing a letter of intentto carry out structured dialogue. There is the possibility of itleading to the involvement of a third-party independentmediator before a final report is issued by the CSR Counsel-lor and made public. The process is voluntary and any of theparties involved can withdraw at any time. “This office isjust one part of a bigger strategy, it’s not a silver bullet,”Evans says. “We need to move ahead with the other pillars.”

The Office of the CSR Counsellor makes up one of thefour pillars of the Canadian government’s CSR strategy forthe Canadian mining sector. The remaining three pillars are:support for host country resource governance capacitybuilding; promotion of internationally recognized CSRguidelines; and support for the development of a Centre forExcellence in CSR.

Industry and NGOs meet at the tableFollowing initial consultations and research, a draft set of

rules and procedures was put together by the CSR Counsel-lor. Then five consultation workshops were held acrossCanada; three more were held in Mexico, Senegal and Mali.“Industry had a lot of opportunities to contribute and com-ment, and they did so,” Evans says. “We asked forcomments, through written submissions and webinars. Over300 individuals and organizations provided input during theformal process. I was very pleased with both the balance andinternational nature of the participation.”

The Mining Association of Canada (MAC) and theProspectors and Developers Association of Canada (PDAC)led industry participation in the Counsellor’s consultationprocess. “We all wanted to be at the table while the Coun-sellor worked out how it will function,” explains GordPeeling, outgoing president and CEO of MAC. “All partiesmust have confidence in the process. It’s fair. It representsimprovements. Now, the proof will be in the pudding as wesee how it deals with actual cases.”

As a result of the consultations, the rules and procedureswere significantly overhauled. The end result is a uniquemechanism that provides the opportunity for constructiveconversation, where CSR platforms can be advanced. “Thisprocess is unique, because it is grounded in government, butwith the ability to look at issues globally,” Evans says. “Forexample, the IFC ombudsman only applies to companiesthat are borrowers from the IFC. Here, this process is cross-cutting, open to any Canadian company, no matter how it’sfunded, its size or where it is operating globally.”

Moving forwardSome scepticism remains about the mandate. Ian

Thomson, program coordinator for Ecological Justice andCorporate Accountability at KAIROS, says his organiza-tion is unclear on how it will benefit communities in

May 2011 | 33

developing countries they interact with. “If it is just amechanism to convene people in the dispute to talk,there’s no added value, really,” he says. “Even for parties inneed of formal mediation, it does not offer this. It is notsuited to all conflicts. The challenge is to think of all theconflicts out there – are the minor ones really the onesthat need a new office to help?”

Tony Andrews, executive director of PDAC, is confidentthe new process will work. “Facilitated dialogue among par-ties has proven to be one of the most effective tools forresolving conflict,” Andrews says. “One unique aspect ofthis mechanism is that companies can request reviews by theCounsellor as well. Companies experiencing reputationalharm due to irresponsible communications by NGOs nowhave recourse.”

Both Peeling and Andrews agree it is time to put theprocess into action. The worst thing that could happenwould be a self-defeating boycott, Peeling adds. It would sig-nal a lack of interest in improvement – just a drive simply tofind faults. “We feel it is incumbent upon all parties to workwith the government plan,” he says. “After three years or so,we can then work together to assess and address any gaps.But for now, we need to let this run. We hope it is a success-ful process because it would mean we are all going to benefitvery much.” CIM

Page 34: CIM Magazine May 2011

34 | CIM Magazine | Vol. 6, No. 3

Here’s the situation. An unstable crown pillar hasforced a mine to temporarily suspend operations,restricting access by personnel to the premises.However, it is crucial that measurements be taken

from within the mine stope to ensure that it is not still mov-ing. What do you do? When the risk is unacceptably high,you can always bring in the robots to do the job.

This was the challenge issued to Penguin Automated Sys-tems Inc., contracted to develop a telerobotic system to helpperform a cavity study beneath a potential failure zone.Their solution to the problem was to use a pair of robotsdesigned to travel into the mine and survey the open stopecavity with a laser scanner. The robots are one metre inwidth, two metres in length, two metres in height and weigh700 kilograms each.

Design considerationsOne of Penguin’s first considerations was the condition of

the mine ramp, which had deteriorated significantly due tothe lack of maintenance over the two-year period since theshutdown. Taking this into account, they equipped eachrobotic platform with a six-wheeled chain drive system thatwas capable of flexing to ensure three-point ground contact.

This system allowed the robotsto manoeuver through deepditches up to nearly a metre indepth, formed by water erosion.The platform also needed a reli-able undercarriage, one with alow centre of gravity to providerobot stability.

Also required was a powerful,long-endurance drive systemwith low power consumption, acombination of low speed andhigh torque, an ability to runancillary equipment (such asgrinders, arms, laser scanners,telecommunications and net-working equipment), andenough weight to counter-balance all this equipment.

Due to the long distances thatneeded to be traversed, a com-pletely wireless system had to becreated and installed. The wire-less network had to be builttelerobotically to supply 20megabits of capacity for audio,data and video information.

Both primary and supporting robots are controlled from amobile teleoperation centre above ground, housed within atrailer and outfitted with two teleoperator workstations, asatellite uplink and an underground network link.

Each workstation consists of a main display and mainte-nance data display. The teleoperator interface consists of anindustrial track ball and a pair of joysticks along with a key-board. The computer bank has three computers, two ofwhich control the robot workstations; the third is used todetermine the condition of the underground network. A dis-play is mounted between the main monitors so bothteleoperators can monitor network health. The primaryrobot was designed to perform various tasks, including thesurvey, while the supporting robot was designed to ensureconstant communication, with the robot performing tasks.

CombotThe communications robot, or “Combot,” establishes sev-

eral wireless telecommunication links with the teleoperationcentre, building a temporary network. Mounted on the Com-bot are a long-distance directional transmitter/receiver withup to 26 kilometres of wireless coverage and several otherantennas set at different frequencies capable of establishing

upfrontN E W F R O N T I E R S b y G r e g B a i d e n , Ya s s i a h B i s s i r i a n d S t e f f o n L u om a

The Workbot (left) is fitted with an arm capable of raising, lowering, extending and retracting. The Combot (right) establisheswireless telecommunication links with the operation centre.

Robots go where men fear to treadA progress report on robotic cavity surveying

Courtesy of P

engu

in Autom

ated

Systems Inc

.

Page 35: CIM Magazine May 2011

upfrontN E W F R O N T I E R S

the network in different situations. The long-distanceantenna has pitch and yaw directional motors to tune in theradio signal from the teleoperation centre.

The Combot also carries a number of portable temporarynetwork extenders, each consisting of a battery-operatedtransceiver with a pair of antennas mounted in a pylon. Eachextender lasts 24 hours and can increase the network capac-ity by an additional 500 metres.

WorkbotThe primary robot is the “Workbot,” whose platform can

be fitted with any number of actuator systems and tools forperforming various tasks. It is fitted with an actuator armcapable of raising, lowering, extending and retracting. Theend of this arm can hold hand tools, such as a grinder,required to cut and remove a metal safety fence blocking theway to the open stope. The Workbot must also deploy andretrieve the network extenders, and store them again fortransportation.

Of primary importance is the laser scanner, which theWorkbot must carry, deploy, extend, operate and retrieve. Todo this, the Workbot is outfitted with a second arm capableof mounting an eight-metre boom with a laser scanner onthe end. This boom supports the scanner as it extends 10metres into the cavity.

Planned operations in the minePenguin planned for the operations to cover a two-day

period. The first required operation was the Workbot’sremoval of the metal fencing. Once this was done, therobotic arm fitted with the grinder was replaced with thearm fitted with the laser scanner so that the Workbot couldscan the target area.

Day one of the operation began with the setting up of theteleoperation trailer at the mine portal and powering up thecommunications network and the robots. Once the Combotestablished network links, the two robots entered the mine.The robots travelled together to the maximum networkdelay threshold, the furthest point that the Combot could goand still maintain network contact. The Combot remained atthe communications relay point and the Workbot continueddown the ramp. When the Workbot reached the new net-work delay threshold, it deployed a network extender. Withthis long-distance communication in place, the Workbotcontinued to the safety fence and cut it, making the areapassable. The Workbot then returned to the Combot andcollected the network extender, and then the robotsreturned to surface. Both the robots and the extender wererecharged overnight.

On day two, the grinder arm was removed from theWorkbot and the laser scanner arm was mounted in its

May 2011 | 35

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place. The robots entered the mines, once again establishingthe wireless network with the Combot and the extender.This time, the Workbot returned to the open stope andscanned the area for one hour. Once the data was collected,the robots returned to the surface.

Field workPenguin sent both robots into the mine on an initial run

in late August 2010. Unfortunately, the curvature of the rampwas greater than expected, which meant that the networkdelay threshold was further up the ramp than anticipated.This, in turn, meant that the Combot was not able to travelfar enough to allow the Workbot to reach the scanning area.

Although the entire operation could not be completed,operations were continued so that the system could betested. The Workbot continued down the ramp, placed anetwork extender, and travelled until it reached the commu-nications threshold. The Workbot was stopped at 600metres, half the distance required, and both robots werereturned to the surface, limited by the communications cov-erage allowed by only one extender.

Despite the set-backs, Penguin was pleased with theresults. The run achieved three major objectives: to provethe concept of the approach; investigate the condition of theramp and mine; and prove the reliability of the system.

Both robots operated continuously for eight hours, travers-ing 1.2 kilometres, and successfully used teleoperation with aremotely deployed communication system. The washed-outramp was also successfully traversed and the system wasproven to be reliable for the difficult conditions of this miningoperation. It would only take minor engineering changes toallow for the other major objectives: to scan the undergroundcavity and determine the condition of the cavity roof.

Penguin is now working to increase the communicationsrange of their telerobotic system by adding more networkingequipment. Because it is untethered, it is a system that opensthe door to many new applications in safety inspection, allow-ing robots to enter and operate in areas unsafe for people.

This patent-pending robot system is now on its way toCodelco’s Andina Mine for further testing. Additional navi-gation and surveying software has been installed to supporttunnel and excavation mapping online. Using a specializedposition location and navigation system linked to a simul-taneous localization and mapping system, the robots will beable to map and survey up to 50 kilometres.

Adapted and edited by Correy Baldwin from a paper entitledRobotic Cavity Surveying: A Progress Report.

CIM

36 | CIM Magazine | Vol. 6, No. 3

authorS Greg Baiden is a professor in mining engineering at Laurentian University and the president of Penguin AutomatedSystems Inc. Yassiah Bissiri is an associate professor inengineering at Laurentian University and also serves as vice-chairof research at Penguin Automated Systems Inc. Steffon Luoma isan application specialist at Penguin Automated Systems Inc.

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Page 37: CIM Magazine May 2011

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Page 38: CIM Magazine May 2011

38 | CIM Magazine | Vol. 6, No. 3

As the difficulty for accessing mineral depositsaround the globe continues to grow, so does theneed for more efficient and cost-effective processingtechnologies. In response, Xstrata Technology mar-

kets the high-intensity, low-energy usage IsaMill. Themilling technology, developed in the 1990s by an Australianmine operator, was initially designed to enable an ultrafineregrind to allow the economic recovery of minerals that inthe past were largely lost.

The horizontally configured mill combines high per-formance with low-energy requirements and grindingmedia costs, according to Xstrata Technology, which ownsthe commercial rights for the mill and assists in its techni-cal development. The IsaMill can be used for mainstreamgrinding, and fine and ultra-fine regrinding of concen-trates. The mill can be used in all processing applications,including base metals, platinum group metals, iron ore,industrial metals and gold.

Greg Rasmussen, mineral processing process manager atXstrata Technology, says recent developments in the miningindustry are helping to stimulate demand for the mill. “Asthe primary mineral deposits around the world are depleted,new and more difficult deposits must be mined,” he says.“Itis more difficult and more expensive to process these oresand to separate the minerals in them. Mine operators arelooking for processing technologies that are efficient andcost-effective.”

In addition to new projects, existing oper-ations are looking to maximize the economicreturns from their deposits. “The valuableminerals are usually fine-grained but notalways distributed uniformly through therest of the ore,” explains Rasmussen. “Newways of thinking and new technologies, suchas the IsaMill, are needed in order to dealwith them.”

A very fine grind The IsaMill is a closed, horizontally con-

figured mill that consists of eightconsecutive grinding chambers and a prod-uct separator at the end. Slurry enters thefeed end of the mill and travels in a plug flowpattern through the IsaMill. Fine ceramicmedia grinds the coarser material in theslurry. “This breakage mode produces veryfine-sized particles as targeted at relativelylow power consumptions,” says Rasmussen.

At the discharge end of the IsaMill, thefines, slurry and grinding media reach the

product separator. As a result of the centrifugal action, thefines discharge out of the centre of the product separator asthe final product. The product is then piped to a dischargepump box where it is pumped to the next stage of process-ing, which is usually flotation or leaching. With thecentrifugal action, the grinding media, along with thecoarser material, is separated and pumped back into theIsaMill.

Rasmussen says the ceramic grinding media contributes tothe energy efficiency of the mill. He explains that the ceramicmedia are more efficient at grinding due to the finer media siz-ing (two to seven millimetres) and that transfers the energyinto the rock instead of absorbing it in the media. “The IsaMillis running at tip speeds of up to 22 metres per second,” Ras-mussen says. “Due to the centrifugal forces, the fine slurry isquickly separated from the coarser material as it enters theIsaMill and is discharged without coming into contact withthe grinding media. This avoids over-grinding. Grindingenergy is directed to the coarse particles and is not wasted onthe fines. That is one of the keys to its energy efficiency.”

Rasmussen adds that the IsaMill has been shown to be atleast 30 per cent more energy efficient than tower mills,which, in turn, are 30 per cent more efficient than ball mills.In addition, the IsaMill performs at a higher power intensity,or energy per volume, than other mills. “The IsaMill’s powerintensity is 300 kW/m3, while our competition’s is only 40 kW/m3,” Rasmussen says.

upfrontP R O C E S S I N G b y P e t e r C a u l f i e l d

Two 10,000-litre volume IsaMills located at the Mogalakwena Mine in South Africa.

Perfecting the grindIsaMill improves metal recovery at Anglo Platinum mines

Courtesy of A

nglo Platin

um Lim

ited

Page 39: CIM Magazine May 2011

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Evolution of the IsaMillThe origins of the IsaMill date back to the 1970s, when Mount Isa MinesLimited in Australia was searching for methods of increasing mineral liber-ation by grinding concentrates to fine sizes. The company found that theperformance of conventional ball and tower mills was uneconomical for con-centrate particles below 25 microns, due to high energy consumption andpoor results.

In the 1980s, operators at Mount Isa began to look for inspiration from otherindustries that grind fine particles, such as pigments, pharmaceuticals andchocolate. Although the mills used in those industries are much smaller incapacity than the full-scale ones used in mining, they use fine media movingat high speed to grind particles finely and efficiently. In 1991, Mount Isa suc-cessfully tested a bench-scale mill made in Germany by NETZSCH-Feinmahltechnik GmbH. It was followed in 1992 by a pilot-scale mill thatshowed that high-speed horizontal mills could efficiently grind to sevenmicrons at laboratory scale. By 1994, a full-scale, fine-grinding productionmodel was installed in the Mount Isa plant.

In 1998, the IsaMill was launched commercially by MIM Process Technolo-gies (acquired by Xstrata in 2003) as a cost-effective means for themetalliferous industry to grind down to and below 10 microns. Following thedevelopment and commercialization of the fine-grind IsaMill, Xstrata Technol-ogy looked at applying the same technology to coarser mainstream grinding.Working with NETZSCH, it developed a 3MW M10,000 IsaMill. Magotteaux,a global supplier of grinding media, developed a low-cost ceramic mediaspecifically for the IsaMill. Since 2003, the 3MW M10,000 has been themost commonly installed IsaMill.

IsaMill in Africa To date, Xstrata Technology has installed 90 IsaMills

around the world. One of its customers is Anglo PlatinumLimited, the largest platinum producer in the world. AngloPlatinum operates mines on the Bushveld Complex inSouth Africa and on the Great Dyke ore body in Zimbabwe.

Chris Rule, Anglo Platinum’s head of concentrator tech-nology, says the company has installed 22 IsaMills at nineplatinum group metal (PGM) mine sites. He says the com-pany installed the mills in order to improve the liberationof PGMs for downstream recovery by flotation and also toimprove the concentrate grade for smelting.

“We installed the world’s first 10,000-litre capacitymachine in 2003,” Rule says. “We installed another mill in2006, four more in 2007 and 16 more in 2009. In next fiveyears, we could install another 10 machines.” He says themain benefit has been the improved metal recovery. “In2010, there was a step-change improvement at sites thathave optimized the application of mainstream tertiary inertgrinding,” Rule explains. “The ores being milled industry-wide are generally lower grade and more difficult to processfor high extractions of PGMs. Both time and this technologyhave allowed this negative trend to be reversed withimproved metals recovery. It has added significant metal rev-enues at high operating margins at each site due toimproved PGM recovery.” CIM

Page 40: CIM Magazine May 2011

40 | CIM Magazine | Vol. 6, No. 3

Business strategist Pete Ondeng is an author and eco-nomic development expert who wants to reducepoverty in Africa and change the negative image ofthe continent by using global partnerships, modern

technology and media. The charismatic 52-year-old Kenyanbusinessman is also co-founder and president of MakingAfrica Work, Inc. (MAW), a Vancouver- and Nairobi-basedsocial enterprise established in 2010 to unlock Africa’s eco-nomic potential. Ondeng is seeking partnership withindividuals, non-profit organizations, government agenciesand corporations, including Canadian mining companies,to help develop initiatives that will create wealth for Africaand lift the continent from the throes of poverty. During arecent visit to North America, CIM Magazine spoke withOndeng about Making Africa Work, and about how mining

companies can improve their working relationships on thecontinent.

CIM: How does MAW work?Ondeng: Making Africa Work is a catalytic organization thatis positioning itself as a bridge between those who cannotand those who can. Our aim is to develop into a globalplatform where investors and philanthropists can learn andconnect with viable initiatives that are having a real,positive impact on the lives of African people. We areparticularly keen on working in really difficult places likeSouth Sudan.

CIM: Where have you helped turn poverty into productivity?Ondeng:We are still a relatively young organization, and ourefforts during this inception period have been focused onthe East African region. There are a number of excitingprojects with which we are working. One example is acoffee project in Tanzania, where a private Norwegiancompany is linking small-scale coffee farmers to externalmarkets. This company is not only creating value for coffeeconsumers in Europe, but they are also making the growersa part of a whole chain that will benefit them in wayspreviously unavailable. MAW has assisted the projectowners to access financing to expand their program to awider network of farmers.

CIM: What partnerships are you planning with Canadian miningcompanies?Ondeng: MAW is not just working with the mining industry,but we certainly see this industry as key to the partnershipsthat we are trying to create. We want to develop a networkof corporations that subscribe to the ideals of MAW and thatrecognize the value of strategic collaboration. In SouthSudan, for example, we are designing a project that willmarshal the CSR efforts of oil companies around a long-termeconomic development program in one of the mostdevastated regions of the country.

CIM: If I were the CEO of a Canadian mining company, howwould you explain to me the value MAW can provide? Ondeng: I want to believe that many of the miningcompanies mean well and would like to do good for thecommunities living around where they work, but due to thecomplex political, social and cultural factors, many of thesecompanies simply lack the wherewithal and orientation todesign and implement appropriate interventions. MAW isbeing positioned to serve those corporations as anintermediary and an honest broker.

upfrontQ & A b y R i c h a r d A n d r e w s

Making a profit while making a differencePartnerships and collaboration the key to making Africa work

Courtesy of M

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Page 41: CIM Magazine May 2011

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CIM: There is an enormous potential for members of theCanadian mining industry to contribute to sustainabledevelopment and be a collaborative partner in Africa. How canmining companies interested in creating successful projectswork with MAW? Ondeng: Mining companies that are genuine in their desire tosee positive change in the local communities need toacknowledge that transformation is a long-term propositionand not a short-term intervention. As I said earlier, the taskof identifying the right projects to support and the processof consultation, community engagement and design usuallydemand skills and experiences that are, in most cases, notresident in multinational corporations. Partnering with anagency like MAW makes sense because it allows thecorporation to focus on its core business and outsource theproject identification, implementation, monitoring andreporting to an agency that has that as its focus.

CIM: For mining companies looking to build partnerships withlocal communities, what questions do they need to beprepared to answer?Ondeng: I must say that it is not easy for a large internationalcorporation to build a genuine partnership with a poorAfrican community because of the uneven powerrelationship. There are numerous challenges, includingcommunication barriers, logistical problems and corruption,in some cases. Before embarking on a community project, itis important to ask questions. Why is the situation as it is?Who else is involved or could be involved in addressing theproblems? What is government doing – or not doing?

CIM: How can a mining company with a strong commitment toCSR and sustainability demonstrate that commitment andsidestep the charges of tokenism in the early stages of aproject?Ondeng: There are a number of corporations out there that aredoing really great things, but these success stories are oftendrowned out by those that still see CSR as a tag-on or anafterthought rather than a part of the overall strategy of thecompany. We would like to encourage Canadian miningcompanies to project their global citizenship agenda up frontand to appreciate the need to partner with organizations thatare better placed than they are to plan and manage thedelivery of services that they would want to support.

CIM: What do you think is the greatest misconception aboutdoing business in Africa?Ondeng: In my opinion, the greatest misconception aboutdoing business in Africa is that it is a basket case ofcorruption, poverty, insecurity and disease. People are oftensurprised, for instance, to find out that Africa offers some ofthe best returns on investment in the world. The challengeis knowing how to navigate between reality and theperceptions portrayed by the media.

For further information: www.makingafricawork.com

CIM

May 2011 | 41

Page 42: CIM Magazine May 2011

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Page 43: CIM Magazine May 2011

1 3

Africa is quickly becoming a hot spot for miningexploration and investment, and Canadianfirms are at the forefront. In 2010, West Africawas a leading destination, with 107 TSX andTSX Venture Exchange mining companies

operating in the region, as compared to 49 in SouthernAfrica and 39 in Central Africa, says Avril Cole, a lawyer inthe private capital and mining groups of Macleod DixonLLP’s Toronto office. The number of Canadian companiesoperating in West Africa is growing by the day.And it is no wonder. Sub-Saharan Africa is rich with

untapped mineral resources, the development of whichhas been thwarted by the continent’s troubled history ofcolonialism, civil war, poverty, corruption and despotism. Inthe past, many Western companies looked at the strifeand challenges and turned away. But over the lastdecade, step by step, an overall wave of reforms, stabilityand hope has been advancing across Sub-Saharan

Africa. There is a long way to go, but increasingly, theopportunities are outweighing the challenges for manymining companies.

A fresh perspective on investment“Africa, in terms of mining, is the last virgin territory,” says

Michel Miron, senior policy advisor, Minerals and MetalsSector, Natural Resources Canada. “It’s where most of thediscoveries will be made in the world in the next 10 to 15years.”Bruce Shapiro, president of MineAfrica, a business

development and marketing company focused on mininginvestment in Africa, contends there is tremendous poten-tial for Canadian mining companies and investors. “Theopportunities in West Africa are dramatic. They have verygood geology, a lot of governments are very friendlytowards investors, and they have structured their environ-ment to attract investors,” he says.

May 2011 | 43

mines without borders

Courtesy of F

reep

ort-McM

oRan

Towards a common goalResource development critical to a new era in West AfricaBy Alexandra Lopez-Pacheco

Basic skills training program at Freeport-McMoRan’sTenke Fungurume operation

Page 44: CIM Magazine May 2011

The reality is, Canadian mining companies have beenactive for some time throughout Africa, with most focusedon gold and a few on uranium in Niger, Namibia and South

Africa, base metals in Zambia, the Democratic Republic ofCongo, Eritrea, Mauritania and Madagascar, as well as dia-monds in Lesotho, Botswana, South Africa, Namibia andAngola, says Miron.In 2002, the federal government changed its methodol-

ogy for evaluating foreign investment by publicly heldCanadian companies to more accurately reflect where theassets were located. As a result, the extent of Canadianmining companies’ stake in Africa became much clearer,revealing $23 billion in investments. That number, saysMiron, was far greater than had been estimated in the pastand has implications for foreign policy decisions.

Confronting the elephant One of the challenges that has long kept foreign

investors wary of investing in West Africa has been itspolitical instability and poor governance. “Across the regionthere has been a trend towards democratic reform andopenness to external investment,” says Cole, citing themodest example of Sierra Leone, which has been steadilyclimbing up the World Bank’s ease of doing business rank-ings. Between 2010 and 2011, it climbed by five points to143rd of 183 countries. Ghana ranked 67th. By compari-son, China ranked 79th, Chile 43rd and South Africa 34th. “At a national level, West African countries are institut-

ing mining policies that reflect a paradigm shift in the roleof government from owner or operator of mining projectsto regulator or administrator,” says Cole. “Increasingly, theprivate sector – especially international mining companies– is taking the lead in developing the region’s mineralresources. To this end, in Ghana, Liberia, Burkina Faso, Maliand, more recently, Guinea, there has been a trend towardsimproved legal, fiscal and regulatory frameworks, designedto attract foreign direct investment into the mining sector;

44 | CIM Magazine | Vol. 6, No. 3

mines without borders

WEST AFRICA - CUMULATIVE CANADIAN MINING ASSETS2006 2007 2008 2009 2010

Mauritania 265,086,900 433,442,790 653,300,020 652,043,553 4,326,017,020

Ghana 1,054,521,483 904,083,852 1,225,353,403 1,103,969,320 1,547,166,761

Burkina Faso 329,868,787 695,768,092 870,393,876 1,135,673,057 1,413,016,017

Senegal 15,047,878 19,899,393 37,723,060 53,224,418 403,180,387

Guinea 445,517,818 289,914,068 361,716,428 320,234,066 244,003,787

Mali 188,884,777 237,624,669 292,165,551 228,802,272 229,596,581

Niger 76,772,097 82,898,262 123,882,158 107,633,536 119,656,621

Liberia 23,662,592 29,641,445 44,207,745 44,809,011 51,799,654

Ivory Coast 23,411,488 21,705,587 25,429,279 26,158,185 41,121,182

Sierra Leone 40,017,239 22,740,383 30,688,845 16,429,970 10,362,511

Benin 0 0 71,854 0 0

Guinea-Bissau 0 0 0 0 0

Source: NRCan, Minerals and Metals Sector

* Assets are calculated at acquisition, construction or fabricating costs, and include capitalized exploration and development costs, non-controlling interests, and exclude liquidassets, cumulative depreciation, and write-off. The figures reflect the holdings of companies that are listed on Canadian exchanges domiciled in, and with assets in Canada.

Page 45: CIM Magazine May 2011

May 2011 | 45

mines without borders

effectively managing both the positive and negativeaspects of mining; and ensuring that the miningsector contributes meaningfully to sustainabledevelopment. Sierra Leone, for example, introduceda more investor-friendly Mines and Minerals Actlast year, which is an important step in transformingthe mineral sector in that country,” says Cole. GlennMullan, the president and CEO of Golden ValleyMines Ltd., which has projects both in Canada andin Sierra Leone, says that “one of the main chal-lenges is the bureaucracy; things take longer thanin Canada, but the articles and spirit of the existinglegislation are good tools.”In the last few years progress has been made.

The government of Sierra Leone, with the supportof the World Bank, has improved the business cli-mate, halving the number of steps and timerequired to register a business and dramatically reducingthe cost. As well, Cole points out, there is a trend across Sub-

Saharan Africa towards the harmonization of miningcodes and policies on a regional basis. “One of the prob-lems that has plagued West Africa, in particular, is thelack of uniformity in the way business is done, and thathas presented a hurdle in the way of attracting foreigninvestment,” she says. “The Economic Community of WestAfrican States (ECOWAS), which is a regional organiza-tion of 15 countries, is working towards establishing aunified mining code for the sub-region.” In fact, in 2009,ECOWAS issued a directive to do just that. The directivecalls for a common mining policy to be implemented con-currently with the unified mining code by the end of2012. Member states will have until July 1, 2014 to com-ply with the directive. “When implemented, the directivewill result in a more stable and transparent mining legalenvironment across the sub-region,” Cole adds.Despite all this, political risk remains a significant chal-

lenge for mining companies in West Africa – although itvaries greatly from country to country. UK-based WestAfrican gold mining company Cluff Gold PLC, for exam-ple, has operations in Burkina Faso, Sierra Leone and IvoryCoast. “Burkina Faso is a very good environment to workin, from an operational perspective, as well as for its polit-ical environment and regulatory regime,” says Carrie Lun,investor relations manager for Cluff Gold. “It’s very estab-lished and there is a good source of personnel, so that’sbeen very successful for us. Over in Sierra Leone, the gov-ernment has been very supportive, and it is clear fromworking with them that they are strongly committed todeveloping the country.”On the other hand, the company recently had to halt its

operations in Ivory Coast due to the country’s political cri-sis. “We had to temporarily stop operations partly becauseof lack of access to fuel and supplies, but the boiling pointwas when the banks had to close and we weren’t able todo international transfers into the country,” says Lun. Thedevelopments in Ivory Coast, says Cole, “have led to the

Cluff Gold expects to produce 70,000 ounces of gold in 2011at its Kalsaka Mine in Burkina Faso.

Courtesy of C

luff Go

ld

suspension of a number of mining operations there, andthe ongoing civil strife has the potential to destabilize theentire region.”With a number of presidential and parliamentary elec-

tions scheduled for this year in such countries as Niger,Nigeria, Gambia, Liberia, Benin, Cameroon, Chad and Mau-ritania, there is a concern about further instability. Miningcompanies, however, can mitigate the risks through suchmeasures as political risk insurance, says Patricia Bentolila,

Page 46: CIM Magazine May 2011

chief representative, Africa, Export Development Canada(EDC), which offers the product to Canadian companies. Mullan suggests that a little more knowledge of the

region might also change perceptions. “Canadian investorsplace more risk in the value proposition than do Europeans– particularly UK investors, given Sierra Leone is a formerBritish colony,” he says.

Aligning aimsWhile the minefield of political conflict is difficult to

negotiate, there are plenty of opportunities for mining firmsto be proactive in reducing their exposure to risk whenattempting to establish operations in the region. “The fun-damental way to mitigate that risk is to get the sociallicence to operate by engaging all stakeholders, especiallythe local communities,” says Shapiro. “If you have the pop-ulation around you on your side, the odds of having exter-nal problems are reduced significantly.”In many instances, the needs of the mining companies

and the communities that host them are complementary.Canadian miner IAMGOLD, which operates a new mine inBurkina Faso and has a joint venture in Mali, is addressingthe challenge of skills shortages by investing in training.“We’re working to build skills for future employees and forthe future of the industrial development in the country, bol-stering the technical schools,” says Ross Gallinger, thecompany’s senior vice-president, health, safety and sus-tainability. “Typically, what we find in developing countries isa lack of pipe fitters, welders, electricians, heavy-dutymechanics, or just mechanics in general. So we’re lookingat our needs, and the country’s needs, to build up the skillsfor self-sustainability beyond the life of our mines.”In Burkina Faso, Cluff Gold is doing much the same with

a mechanic training program. The company hires some ofthe graduates and the rest join the much-needed skilledlabour pool across the country.“With good CSR practices – and by engaging not just the

elders in a community, but also the youth – mining compa-nies are investing for the long term, not just of the countrybut also theirs,” says Radcliffe Dockery, president and CEO,HigherEye Training & Consulting. “If a 16-year-old todaysees that the mining company has been a part of his lifeand it has helped make a positive difference, when thatyouth turns 30 years old and is elected into government,and there’s talk about nationalization, he will rememberwhat that mining company did and reject nationalization.”Over in the Democratic Republic of Congo (DRC), one of

the most challenging countries on the continent in which tooperate, U.S.-based Freeport-McMoRan Copper & Gold Inc.has put considerable effort into its community engagementat its Tenke Fungurume mining operation that went into pro-duction in 2009. “We believe that our investment in theregion will help to provide stability,” says William Cobb, vice-president, environmental services & sustainable develop-ment for Freeport-McMoRan. “We are committed tooperating this project in a way that benefits the local com-munity and the nation as a whole, promotes good

46 | CIM Magazine | Vol. 6, No. 3

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governance, respects local culture and human rights,minimizes disruption to the existing ecosystem and sup-ports the evolution of the country towards sound min-eral development. Our investment in infrastructure,human resources and community development pro-grams is an essential part of our business. We aim towork in partnership with the local community, govern-ment and non-governmental organizations to ensurelong-term community capacity building. The concept ofintegrated support aligned with community needs is thebasis for our community investment decisions. Oursocial development programs in the DRC have focusedon increasing access to schools and health facilities, aswell as working with local partners, to strengthen theircapacity to provide services to the community. We alsosupport economic development initiatives, such asmicro-credit and agricultural improvement programs tosupport economic development in addition to our min-ing operations,” Cobb explains.Cole says that, typically, Western public mining com-

panies operating in West Africa are voluntarily compli-ant with an array of global and domestic corporatesocial responsibility “best practice” initiatives, includingPDAC’s E3 Plus initiative, the UN Global Compact,World Bank Group Guidelines and the Equator Princi-ples. In the near future, it is likely that many will be look-ing to the recently released United Nations GuidingPrinciples for Business and Human Rights (the JohnRuggie Principles) as well, which will raise the bar glob-ally by providing the first authoritative global standardfor preventing and addressing the risk of adversehuman rights impacts linked to business activity.

The industrial backboneThe lack of infrastructure to various degrees

throughout the region – and lack of governmentresources to build and maintain it – remains a majorchallenge. “In the region, there are lots of little thingswe take for granted in Canada that must first beaddressed before embarking on advanced work,” saysMullan of Golden Valley. “The bridges need to berepaired, a village has no water, there is no electricity.” However, across the region there is a sense of

urgency to develop transportation and power facilities.“There are plans for lots of new infrastructure inLiberia and Guinea,” says Paulo De Sa, manager, oil,gas and mining unit, The World Bank. “Liberia has justcommissioned a reconditioning of a railroad. There’snow construction in Sierra Leone. All of this is in rela-tion to big iron ore developments.” For all challenges and investments, most Western

companies in Africa are very aware that they have theopportunity to build far more than profits and busi-ness success. “I am a great believer that mining is thesingle industry that has the opportunity to bring Africaforward,” says Shapiro, “provided it is done responsi-bly and well.” CIM

48 | CIM Magazine | Vol. 6, No. 3

Courtesy of IAM

GOLD

Meaningful engagement with stakeholders, such as with these villagers affected by theconstruction of IAMGOLD's Essakane Mine, is one of the guiding principles for businessand human rights.

A new standard for corporate responsibility

The UN Guiding Principles for Business and Human Rights,published in March, are intended to help both governmentsand enterprises avoid human rights abuses connected to busi-ness activity. They lay out a framework based on: the duty ofthe state to protect human rights; the responsibility of corpo-rations to respect human rights; and the need for victims ofbusiness-related abuses to have greater access to remedy.

The following are adapted from the document that the UNHuman Rights Council will consider for endorsement in June.

Corporate responsibilityAccording to the Guiding Principles, enterprises should:

• avoid causing or contributing to adverse human rightsimpacts through their own activities and address such activ-ities when they occur; and

• seek to prevent or mitigate adverse human rights impactsthat are directly linked to their operations, products or serv-ices by their business relationships, even if they have notcontributed to those impacts.

Corporate policyEnterprises should create a robust human rights program

that is approved by senior management and publicly available,that outlines expectations for personnel and partners and thatis embedded in operational practice. Human rights due dili-gence is essential to such a program and would include aprocess to assess actual and potential human rights impactsand would evolve with the operation. Outside involvementfrom both external experts and relevant stakeholders is a criti-cal component of due diligence. A response to adversehuman rights impacts should be integrated into operations;the effectiveness of that response should be monitored anddraw on appropriate outside expertise; and the results shouldbe communicated both inside the company and externally. Ifremediation is required, enterprises should cooperate.

For the complete document, visit ohchr.org, and enter “business and human rights” in the search field.

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50 | CIM Magazine | Vol. 6, No. 3

mines sans frontières

L’Afrique est rapidement en train de devenir un pointnévralgique en matière d’exploitation de mines etd’investissements miniers. D’ailleurs, les entreprises

canadiennes sont à la tête de ce mouvement. En 2010,l’Afrique de l’Ouest a été une destination de choix alors quenombre d’entreprises minières inscrites aux 107 TSX etTSX Venture Exchange étaient actives dans la région.Selon Me Avril Cole, avocate adjointe dont la pratique estaxée sur le capital privé et les groupes miniers au sein ducabinet torontois Macleod Dixon LLP, 49 autres entre-prises exercent leurs activités dans le sud de l’Afrique et39 autres encore en Afrique centrale. En fait, le nombred’entreprises minières canadiennes actives en Afrique del’Ouest ne cesse d’augmenter quotidiennement.

Les investissements vus d’un autre oeil« Pour ce qui est de l’exploitation minière, l’Afrique

représente le dernier territoire vierge », explique Michel

Miron, conseiller principal dans le secteur des minéraux etdes métaux pour Ressources naturelles Canada. « C’estsur ce continent que nous ferons le plus de découvertes aucours des 10 à 15 ans à venir. »M. Bruce Shapiro, président de MineAfrica, une entre-

prise vouée à l’expansion des affaires et au marketing etaxée sur les investissements miniers en Afrique, soutientqu’il y a un énorme potentiel pour les entreprises minièrescanadiennes et les investisseurs canadiens. « L’Afrique del’Ouest regorge d’opportunités. Sa géologie est excellenteet plusieurs gouvernements sont très chaleureux enversles investisseurs. À cet effet, ils ont réorganisé leur struc-ture afin d’attirer les investisseurs », explique-t-il.« En fait, il y a quelque temps déjà que les entreprises

minières canadiennes sont présentes de part et d’autre del’Afrique. La majorité d’entre elles se concentraient sur l’or,et quelques-unes sur l’uranium au Niger, en Namibie, enAfrique du Sud, mais aussi sur les métaux de base enZambie, en République démocratique du Congo, en

Cour

tois

ie d

e Cl

uff G

old

Oeuvrant vers un objectif commun

Une équipe extrait des échantillons de la concessionde Baomahun qui appartient à Cluff Gold.

Le développement des ressources est un élément crucial à l’avènement d’une nouvelle ère en Afrique de l’Ouest

Page 51: CIM Magazine May 2011

Érythrée, en Mauritanie et à Madagascar, ainsi que sur lesdiamants au Lesotho, au Botswana, en Afrique du Sud, enNamibie et en Angola », énonce M. Miron.En 2002, le gouvernement fédéral a changé ses mé -

thodes d’évaluation des investissements à l’étranger effec-tués par des entreprises ouvertes canadiennes afin derendre compte plus précisément de l’emplacement desactifs. Par conséquent, les enjeux reliés aux investisse-ments effectués par des sociétés minières canadiennes sesont précisés avec la constatation que 23 milliards de dol-lars effectivement ont été investis. « Ce chiffre, explique M.Miron, est beaucoup plus élevé de ce qui avait été prévu àl’origine et influence donc les décisions reliées aux poli-tiques étrangères. »

Prendre le taureau par les cornes Un des nombreux défis qui sème beaucoup de doutes

chez les investisseurs étrangers est l’instabilité politiqueet la gouvernance déficiente. « L’Afrique de l’Ouest tend àse démocratiser de plus en plus et accueillir lesinvestissements de l’extérieur », explique Me Cole. « Lespays commencent à instaurer à l’échelle nationale despolitiques sur l’exploitation des ressources minières, cequi démontre que le rôle du gouvernement a changé,passant de celui de propriétaire ou d’exploitant de projetsd’exploitation minière à un de réglementation et d’admin-istration. »Néanmoins, les enjeux politiques représentent un

immense défi en Afrique de l’Ouest. Toutefois, la situationvarie énormément d’un pays à l’autre. Par exemple, CluffGold, une entreprise d’exploitation minière aurifère bri-tannique présente en Afrique de l’Ouest exploite dessites au Burkina Faso, en Sierra Leone et en Côted’Ivoire. « Le Burkina Faso offre un très bon environ-nement de travail du point de vue opérationnel, ainsiqu’en raison de son régime politique et sa structureréglementaire », soutient Carrie Lun, directrice des rela-tions avec les investisseurs chez Cluff Gold. « En SierraLeone, le gouvernement nous a apporté un grand soutienet notre collaboration démontre de façon évidente leurengagement à développer le pays. »En revanche, l’entreprise a récemment dû interrompre

ses activités en Côte d’Ivoire en raison de la crise politiquequi prend rapidement les aspects d’une guerre civile.Cette année, plusieurs élections présidentielles et par-

lementaires sont prévues dans cette région, et l’on redouteune éventuelle instabilité.Toutefois, les entreprises minières peuvent mitiger les

risques en souscrivant une assurance de risques politiques,explique Patricia Bentolila, représentante principale enAfrique pour Exportation et développement Canada (EDC),qui offre ce type de police aux entreprises canadiennes.

Harmoniser les objectifsBien s’il est difficile de naviguer en évitant les écueils

que constituent les conflits politiques, les entreprisesminières ont plusieurs moyens à leur disposition pour

réduire leur exposition aux risques lorsqu’elles tententd’exploiter des sites dans la région.Très souvent, les besoins des entreprises minières et

des communautés qui les accueillent se rejoignent.IAMGOLD, une entreprise minière canadienne qui

exploite une nouvelle mine au Burkina Faso et qui compteune coentreprise au Mali, essaie de pallier la pénurie d’em-ployés compétents en investissant dans la formation.« Nous cherchons à développer les compétences de futursemployés et à contribuer à l’expansion industrielle du paysen épaulant les écoles techniques », a déclaré RossGallinger, vice-président principal de la santé, de la sécu-rité et du développement durable pour l’entreprise. Cluff Gold entreprend des démarches similaires au

Burkina Faso par l’instauration d’un programme de for-mation en mécanique. L’entreprise embauche certainsdes diplômés tandis que les autres se joignent à la main-d’œuvre qualifiée en forte demande dans le reste dupays.« En épousant de bonnes pratiques en matière de

RSE, les entreprises minières investissent à long terme,ce qui est avantageux non seulement pour le pays oùelles se trouvent, mais aussi pour elles-mêmes »,explique Radcliffe Dockery, président et chef de la direc-tion de la société HigherEye Training & Consulting. « Siun jeune de 16 ans prend note aujourd’hui de l’entre-prise minière qui fait partie de sa vie et des bienfaitsrésultant de sa présence, lorsqu’il sera élu au gouverne-ment à 30 ans et qu’il y aura un débat à propos de lanationalisation des ressources, il se souviendra de ceque l’entreprise minière a fait et s’opposera à la nationalisation. »

La structure de base de l’industrieLe manque d’infrastructures à différents niveaux dans

l’ensemble de la région et le manque de ressources dugouvernement pour en installer et les maintenir demeurentun obstacle important. Toutefois, on ressent un besoin urgent dans l’ensemble

de la région de bâtir des infrastructures de transport et desinstallations électriques. « Le Libéria et la Guinée ontplusieurs plans pour de nouvelles infrastructures », aannoncé Paulo De Da, directeur du secteur du pétrole, desgaz et des mines de la Banque mondiale. « Le Libéria vienttout juste d’autoriser la remise en état d’un chemin de fer ».En ce moment, la Sierra Leone entame aussi des projetsde construction. Tous ces projets sont reliés aux nombreuxprojets d’exploitation de minerais de fer. Malgré tous les obstacles et les investissements, la

plupart des entreprises occidentales présentes enAfrique sont conscientes qu’elles peuvent réaliser bienplus que des profits et des succès commerciaux. « Jecrois fermement que l’exploitation minière est l’industriela plus susceptible de faire progresser l’Afrique, soutientM. Shapiro, tant qu’elle le fait de manière responsable etconvenable. » ICM

May 2011 | 51

mines sans frontières

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featured project

T

Today’s record becomes tomorrow’s standard

by | Dan Zlotnikov

With the price of gold surging, it is a good time to be a gold miner anda great time to be a gold miner starting up a major new mine. Lastsummer, IAMGOLD put another feather in its cap, commissioning theEssakane Mine in Burkina Faso, and boosting the company towards itstarget of one million ounces of annual production.

The Essakane Mine, about 320 kilometres northeast of thecountry’s capital of Ouagadougou, entered commercial produc-tion last year on July 16, and its importance for IAMGOLD can-not be overstated. Despite being in operation for less than half ayear, in 2010 the mine produced 122,000 ounces of gold. Theforecast for this year is 370,000 to 390,000 ounces, makingEssakane, which the company acquired from Orezone ResourcesInc. in 2008, a major part of IAMGOLD’s mine portfolio.

By contrast, the Rosebel Mine in Suriname, the company’scurrent flagship mine, produced 395,000 ounces last year andis expected to produce between 360,000 and 380,000 in2011. The company owns 90 per cent of Essakane and 95 percent of Rosebel, with the national governments in BurkinaFaso and Suriname, respectively, owning the remainder. Allproduction figures above are the portion attributable toIAMGOLD.

Cour

tesy

of I

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LD

Essakane is the first gold mine brought into production by IAMGOLD.

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A head startThe timing of the mine entering

production – two months ahead ofschedule – was made possible bystarting production before the crushercame online, says Brian Chandler,IAMGOLD’s senior vice-president forAfrican operations. “We were feedingthe feeders with a backhoe and tryingto sort out the rocks as we did that,”he explains. “The process becamemuch smoother when the crusherwent into service in late September,but going ahead without the crusherin the process allowed the mine tobegin producing gold with a fewmonths’ head start.”

The early startup owes quite a bitto the softer laterite material making up parts of the Essakanedeposit. This material enabled the mine operators to tem-porarily avoid having to use the crusher, and it also requiresless crushing time in general, which allowed for another majorimprovement in the mine’s productivity.

Originally, the open pit operation was designed to process7.5 million tonnes of ore, says IAMGOLD’s COO GordStothart, with crusher throughput being the major limitingfactor in the plant. But when processing the softer rock, thatthroughput improved significantly, moving the bottleneck tothe plant’s tailings system, where the company found it couldmake improvements. “We modified the tailing pumps to allowus to get a little more through there,” says Chandler. “That’sprobably the biggest single adjustment.”

By initially focusing on the soft rock, Essakane was able togo from the original volume projections to as much as ninemillion tonnes of annual throughput. However, these benefitscome with an expiry date. “The soft rock, we know from ourcurrent reserves, only lasts until about 2013 at which time weget into hard rock, and the nominal design on hard rock is 5.4million tonnes,” explains Stothart.

Expansion studies underwayNeedless to say, IAMGOLD is highly motivated to find

more gold-bearing soft rock on its lease territory. Stothartsays that in 2010, the company completed a drill delineationprogram of more than 40,000 metres at Essakane for$13.4  million, and is expecting to make similar efforts thisyear. “It’s almost 1,300 square kilometres of land that we havethere, and it’s very good prospective land that we have in ourexploration concessions,” he adds. “So we think that there’s areal opportunity to extend and expand Essakane.”

According to Chandler, the company is planning ahead inanother way, anticipating a time when the mine must

switch to hard rock processing.“We’re doing some expansion stud-ies right now, working on feasibilityto expand the operation atEssakane,” he says. Part of the limi-tation of the current plant will bethe crusher capacity, since theharder material will require addi-tional crushing time. The othermajor constraint is water. The Sahelregion of Burkina Faso gets very lit-tle rainfall and the nearby river iscompletely dry for most of the year.This means the company must man-age its water use very carefully.

“The original design says that wewould only process 5.4 million

tonnes of hard rock a year, so the expansion is all about whatcan we do to make sure that once we’re up to around 10 mil-lion that we stay there,” says Chandler. The feasibility studyof the possible expansion is scheduled to be completed laterthis year.

“We think that

there’s a real

opportunity to

extend and expand

Essakane.”

— G. Stothart

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54 | CIM Magazine | Vol. 6, No. 3

featured project

1

2 3

4

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featured project

The social challengeThe mine’s entering commercial operation highlights

another success for IAMGOLD. Approximately 13,000 localresidents from eight villages lying within the territory of thefuture mine were relocated.

The first thing you do when it comes to resettling, says RossGallinger, IAMGOLD’s senior vice-president for health, safetyand sustainability, is avoid it if at all possible. The process, evenwhen all goes smoothly, is long and complex. In Essakane’s case,says Gallinger, the relocation required roughly a year and a half.

Gallinger explains that the first step in the process is toconduct a social impact assessment and extensive consulta-tion, which involves heavy use of experts. Toronto-basedrePlan, a company specializing in social impact and riskassessments, conducted the consultations, to not put unduepressure on the communities to accept the company’s offer.“There’s also an independent moderator so that there’s someindependence to this, and the communities can feel that

Opposite page 1. The processing plant is powered by a 27.5megawatt power plant; 2. Residents pump water at Douman village;3. The mine is located in the northeast corner of Burkina Faso; 4. Thevast majority of the mine personnel are Burkinabe.

they’ve actually been part of that process,” adds Gallinger.Among other things, the local communities were involved inchoosing the sites of the future villages, and the companybuilt a model house after the local style, to show what thenew dwellings would look like.

“There is basically a negotiation of the package of whatyou’re going to get with the relocation,” Gallinger explains. “Inaddition to housing and land provided, there’s also the cost tomove as well as a financial incentive to relocate.”

IAMGOLD also funded access to legal counsel for thelocal communities, he adds, so that the lawyers could exam-ine the offer “to ask ‘hey, is this a good a deal, or not a gooddeal?’” The communities and individual residents then hadthe option to not sign and not be relocated, Gallingeradmits, which means there was an extended period ofincreased uncertainty for the entire project. Gallingeremphasizes that this is another reason to avoid relocatingpeople if at all possible, but adds that most of the local res-idents saw the mine as an opportunity for the long term.“The best thing is to be able to demonstrate what livelihoodimprovements and what opportunities you’re going to getgoing forward,” he says.

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Page 56: CIM Magazine May 2011

More than miningWith the relocation complete, IAMGOLD’s

relationship with the locals has by no means cometo an end. The company is involved in a number oflivelihood improvement initiatives with the com-munity.

“This past season,” says Stothart, “they put afour-hectare market garden in place near the newvillage of Essakane, and over 200 families hadmarket garden plots there. So they’re not onlygrowing food for themselves, but they’re also sell-ing it in the regional food markets and to themine, where we’re using it in our kitchen.”

The second example is a rice-growing initiative.“They’ve got about 11 hectares of rice along thenew reservoir we just created, which is not a com-mon crop in that part of the world, but a relativelyhigh-value, high-yield crop that, together with thelocal communities, we’re doing some experimen-tation with,” says Stothart. “The goal, is to createa local economy that is not dependent on themine itself.”

This is not to say that the locals are not inte-gral to the operation of the mine. The vast major-ity of the mine staff are Burkinabe, says Chandler,adding that IAMGOLD has an active training pro-gram in place, which enabled the locals to honethe skills needed to work in a large-scale miningoperation. “The Burkinabe do all the mill operat-ing, so they run the grinding circuit, take all thesamples, make adjustments to the mill flow” headds. “For the plant, it’s mainly local fellows whoare running the place, which is really encouraging.”

The mine’s benefits also go beyond the imme-diate vicinity: Essakane is the largest private for-eign investment in the history of Burkina Faso,says Stothart. In addition, the national govern-ment stands to benefit not just through royaltiesand job creation, but also more directly, as a 10per cent owner in the project.

“Today’s record becomes tomorrow’s stan-dard,” Chandler says, looking back at the chal-lenges overcome during the mine’s startup and itsexceptional performance over the last fewmonths. The sentiment can be extended toIAMGOLD’s dealings with the local residents, asthe company continues to strive towards its “ZeroHarm” goal. Essakane’s ongoing success sends aclear signal that community engagement andconsultation are not burdens for a mining com-pany, but the cornerstones of a successful andlocally supported operation. CIM

56 | CIM Magazine | Vol. 6, No. 3

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Page 57: CIM Magazine May 2011

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Page 58: CIM Magazine May 2011

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projet en vedette

L

Les records d’aujourd’hui sontles normes de demain

La mine d’Essakane, à quelque 320  km au nord-estd’Ouagadougou, la capitale du pays, a entamé sa productioncommerciale le 16 juillet de l’année dernière, et on ne peutnégliger son importance pour la société IAMGOLD. En acti-vité depuis moins de six mois, cette mine a produit 122 000onces d’or en 2010. Elle prévoit produire entre 370  000 et390  000 onces cette année, ce qui fera d’Essakane, mineacquise en 2008 d’Orezone Resources Inc., une partie impor-tante du portefeuille minier d’IAMGOLD. Cette société estpropriétaire de 90 % d’Essakane et le gouvernement nationaldu Burkina Faso en possède la différence. Toutes les donnéesde production susmentionnées sont celles attribuables à lapart d’IAMGOLD.

Une longueur d’avance« Il a été possible d’entamer les opérations minières avec

deux mois d’avance, en commençant à produire avant demettre le concasseur en service », mentionne Brian Chandler,

vice-président directeur des opérations africainesd’IAMGOLD.

«  Nous avons alimenté les distributeurs à l’aide d’unepelle rétrocaveuse tout en triant les roches à mesure quenous travaillions. En entamant le processus sans le con-casseur, la mine a pu commencer sa production d’or avecquelques mois d’avance. »

Une telle avance résulte en partie du dépôt Essakane con-stitué notamment de latérite souple. Cette matière a permisà la mine de mettre le concasseur de côté quelque temps. Ils’avère aussi que la latérite ne nécessite pas autant de con-cassage en général, ce qui a contribué à améliorer d’autantplus la production minière.

«  À l’origine, la mine à ciel ouvert était censée produire7,5  millions de tonnes de minerais avec un concasseur  »,explique Gord Stothart, directeur de l’exploitationd’IAMGOLD, mais le débit de traitement du concasseurreprésentait un important facteur limitatif de l’usine.

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’IAM

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La mine est située au nord-est du Burkina Faso.

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projet en vedette

Toutefois, lors du traitement de roches plus tendres, le débitde traitement a augmenté de façon considérable, et déplacéla congestion au parc de résidus, où la société considérait quedes améliorations étaient possibles.

«  Nous avons donc modifié les pompes des parcs derésidus pour nous aider à mieux produire, dit Chandler, c’estprobablement du plus important changement que nous avonsapporté. »

En se concentrant d’abord sur les roches tendres, Essakanea pu accroître le volume initial prévu à une capacité annuellede neuf millions de tonnes. Cependant, ces avantages ne sontque temporaires.

« Nous savons que, selon nos réserves actuelles, la rochetendre ne durera que jusqu’en 2013. À ce moment, nousaurons de la roche dure dont la production nominale n’estque de 5,4 millions de tonnes », explique M. Stothart.

Étude d’expansion en coursCela va sans dire qu’IAMGOLD désire ardemment trouver

d’autres roches aurifères tendres sur son territoire à bail. « Nous avons un territoire de près de 1 300 km2, avance

M. Stothart, et les terres de nos concessions d’explorationprésentent un grand potentiel. Nous croyons donc qu’il y a detrès bonnes occasions de développer et d’agrandir Essakane. »

M. Chandler explique que la société anticipe le moment où lamine devra changer ses méthodes pour exploiter les roches dures.

« Nous menons à l’heure actuelle des études d’expansion,afin de déterminer la faisabilité d’étendre nos opérationsd’Essakane », annonce-t-il. L’exploitation sera limitée en par-tie à cause de la capacité de concassage, considérant que lesmatières plus dures prennent plus de temps à être concassées.La quantité d’eau est une autre contrainte majeure : il pleuttrès peu dans la région du Sahel, au Burkina Faso. L’entreprisedevra donc gérer sa consommation d’eau avec parcimonie.

« Le plan initial était que nous ne traiterions que 5,4 mil-lions de tonnes de roches dures annuellement. Nous devonsdonc planifier l’expansion en fonction de nos moyens, afin denous assurer qu’une fois la production de 10 millions detonnes atteinte, nous serons en mesure de maintenir ceniveau », de dire M. Chandler.

Enjeux sociauxLa construction minière met en valeur une autre réussite

d’IAMGOLD : la réinstallation et le déménagement de près de13 000 habitants de huit villages différents à l’intérieur de lapériphérie de la future mine.

M. Gallinger explique que la première étape du processus estd’évaluer l’impact social et de réaliser des consultations exhaus-tives, et donc de faire appel en grande partie à des experts. En cequi concerne IAMGOLD, l’entreprise rePlan, située à Toronto etspécialisée dans l’évaluation des risques et impacts sociaux, aprocédé à des consultations communautaires en vue d’éviter

toute pression indue sur les communautés pour accepter l’offre d’IAMGOLD.

« Il y a aussi un modérateur indépendant qui a assuré unecertaine objectivité; ainsi, les communautés ont eu le senti-ment d’avoir participé au processus », ajoute M. Gallinger.

Entre autres, les communautés ont pu choisir l’emplace-ment de leurs futurs villages. La société a aussi construit unemaison témoin à partir d’un modèle local pour illustrer à quoiressembleraient les nouvelles habitations.

«  Il y a donc eu négociation des éléments inclus dans ledéplacement. Non seulement offrons-nous le logement et leterrain, nous payons aussi les frais de déménagement etassumons les incitations financières liées au relogement  »,précise M. Gallinger.

IAMGOLD a aussi donné accès à des conseillers juridiquesaux communautés locales, ajoute-t-il, pour qu’elles puissentsoumettre l’offre à des avocats et s’assurer de faire «  unebonne affaire ».

«  La meilleure démarche, dit M. Gallinger, est d’être enmesure d’illustrer les améliorations des conditions de vie etles occasions suscitées par un tel processus. »

«  Le processus de réinstallation a pris près d’un an etdemi », ajoute-t-il.

Pas que des minesMaintenant que la réinstallation est terminée, IAMGOLD

demeure en relation avec les résidents locaux. La société par-ticipe à de nombreux projets de développement et d’amélio-ration des conditions de vie avec la communauté.

« L’objectif, explique M. Stohart, est de créer une économielocale qui ne repose pas sur la mine. »

Les résidents locaux sont bien sûrs intégrés au processusd’exploitation minière. « La très grande majorité du personnelminier est Burkinabaise, dit M. Chandler, qui ajoutequ’IAMGOLD offre un programme de formation dynamiquesur place qui permet aux habitants locaux de perfectionner lescompétences nécessaires pour travailler au sein d’uneexploitation minière d’envergure.

Les Burkinabais s’occupent de toutes les opérations duconcentrateur, donc veillent au circuit de broyage, du prélève-ment des échantillons et des ajustements au débit du broy-age. Ce sont principalement des habitants locaux qui sont à latête de l’exploitation, ce qui est très encourageant », rajouteM. Chandler.

« Les records d’aujourd’hui sont les normes de demain »,explique M. Chandler, en songeant aux défis surmontés lors dela mise sur pied de la mine et de son rendement exceptionnelau cours des derniers mois. Le succès continu d’Essakanedémontre clairement que les engagements et la consultationcommunautaires ne constituent pas un fardeau pour unesociété minière, mais plutôt la pierre angulaire d’une exploita-tion réussie et soutenue par la population locale. ICM

Page 60: CIM Magazine May 2011

commodity focussilver

A complex oreSilver usually appears with some combination of gold,

copper, lead and zinc. In fact, only 30 per cent of silver pro-duced globally comes from primary silver mines. Theremaining 70 per cent is mined as a by-product. This meansthat levels of silver production are somewhat dependent onthe market value of gold or base metal, and are relativelyunaffected by silver prices. This makes low cost a priority forprimary silver miners, says Geoff Burns, president and CEOof Pan American Silver Mines. “Whether demand is strongor soft, there’s a certain level of silver that’s going to keepcoming to market, just because there are other metalmines, where silver is a by-product, that are going to keepproducing, regardless of the silver price.”In light of its higher prices, by-product silver previously

thought unrecoverable has attracted new interest. GuyDeschênes, research scientist at CANMET, reports moreinterest from gold companies in silver extraction methods inthe last three years. He observes that Barrick Gold’s ongo-ing “Unlock the Value” competition, initiated in 2007 toincrease recovery of silica-enclosed silver, has been fol-lowed by a similar call from Newmont Mining this year.

A Latin focusThe Americas lead in silver production. Peru became the

world’s leading silver producer in 2002, with Mexico in sec-ond place. But silver is mined in other locales as well: China,Australia and Russia also rank high.Mexico’s rich silver belt is a hotspot for silver mining.

Todd Anthony, manager of Investor Relations at First Majes-tic Silver, says that the strong labour force and quick permit-ting process make Mexico an attractive place to mine. “Polit-ically, it’s also very stable,” he adds. According to Hugh Clarke, vice-president of corporate

communications at Endeavour Silver Corp., it has only beenpossible for foreigners to own mining projects in Mexicosince 1993. “The Spaniards, and then the Mexicans, werethe world’s best at looking for surface expressions, pickingup the vein and then mining it. But as soon as the vein wasgone, that would be it. Their exploration expertise was reallynot their strong point.” That means that companies, largelyCanadian explorers and miners, have been able to applynew exploration techniques and make major new discover-ies, says Clarke.

Limited silver production in CanadaAlthough Canada was among the world’s top 10 silver

producers until 2009, silver production numbers have beenon a downward trend for a long time. “Most of the silverthat’s been coming out of Canada over the last few decades

60 | CIM Magazine | Vol. 6, No. 3

LUSTRE RESTOREDby Eavan MOORE

The flotation circuit at Pan American Silver Corp.’s Huarón operation in Peru

Cour

tesy

of P

an A

mer

ican

Silv

er C

orp.

T he brilliant and beautiful shine of silver gives it a star-ring role in jewelry and tableware. But it is useful formore than just baubles and holiday dinners. This pre-

cious metal is also the best conductor of electricity and heatof all the metals; it is also among the most reflective. It isductile, malleable and antimicrobial, making it uniquelysuited to a range of industrial applications. Silver also haslong functioned as a store of wealth, an investment in uncer-tain times. As demand for the metal outpaces supply, its price and

profile have risen. An ounce of silver on the spot markethovered around US$5 for 20 years, but prices have notreturned to that level since 2004. Amid inflation concerns ofthe last few months, silver spiked to highs of more thanUS$36. New applications for silver, and its bullish marketoutlook, may lead the public to improve its familiarity withthe metal.

Page 61: CIM Magazine May 2011

by drawing down from above ground inventories that hadbeen previously produced.”In 1940, Butler says, there were about 10 billion ounces

of silver above ground, 60 per cent of it in United Statesgovernment reserves. Today, there are one billion ounces

has been a byproduct from gold, copperand lead zinc mines,” Clarke says.A new primary silver mine, the first to

operate in over 15 years, commenced pro-duction in January 2011, after Vancouver-based Alexco Resource Corp. returned tothe historically productive Keno Hill SilverDistrict in Yukon. The company projects aninitial mine life of approximately four years.Production in 2011 is estimated to be 2.8million ounces of silver.

Tight marketsThe market for silver has a dual nature,

comprising physical uses and investments.The sharp interest in silver as an investmentright now has contributed to tightness in thephysical market, explains David Morgan, edi-tor of the Morgan Report. “Most of thosethousand-ounce bars or industrial-gradebars are already captured for investment purposes,” he says.Ted Butler of Butler Research Ltd. attributes part of the

tightness to the history of silver consumption. “We con-sumed more than we were producing for 60 years or so,” heexplains. “We were balancing the supply-demand equation

Source: The Silver Institute

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commodity focussilver

May 2011 | 61

1 primary producer2 including subsidiaries3 estimate

Page 62: CIM Magazine May 2011

commodity focussilver

left. “Silver is rarer than gold when it comes to above groundinventories,” he adds. “Most people don’t know that.”Anthony observes that the polymetallic nature of silver

mining makes it more complicated to adjust supply to meethigh demand. “You can’t really turn on silver production,” hesays. “It can take up to 10 years to bring a new silver mineinto production. Unless base metal prices start increasing,which causes mines to become more economical to

62 | CIM Magazine | Vol. 6, No. 3

M4S• MINES• MINERALS• METALS• MATERIALS

Mining fOR sOciEty

MINE PRODUCTION (tonnes) 2009 2010 (est)

Peru 3,850 4,000

Mexico 3,550 3,500

China 2,900 3,000

Australia 1,630 1,700

Chile 1,300 1,500

Russia 1,400 1,400

Bolivia 1,300 1,360

United States 1,250 1,280

Poland 1,200 1,200

Canada 600 700

Other countries 2,820 2,600

World total (rounded) 21,800 22,200

Source: USGS

The Renaissance metalIn 2009, silverware, jewelry, coins and medals composed 41 percent of physical silver demand, according to the World SilverInstitute. Another 11 per cent flowed to photography, which usesphotosensitive silver halides in film.

Myriad industrial applications grabbed the remaining 48 per cent.As the most conductive metal, silver is used in tiny amounts forelectrical contacts in automobiles, computer keyboards, andrefrigerators. Its reflectivity has found use in the windowmanufacturing industry. Some new double-plated thermal windowsuse invisible silver coatings to reflect away bright, hot sunlight andinsulate the building. The metal is also important to the growingsolar energy industry, where it is used in the production ofphotovoltaic cells.

A number of industries make use of silver’s antimicrobialproperties, for example, by weaving silver threads into bandagesand shirts, coating hospital and kitchen equipment with silver, andusing the metal as a wood preservative.

develop, we are not going to get a huge increase in theglobal production of silver.”However, tightness is not the same as shortage, points

out Miguel Perez-Santalla, vice-president of marketing atHeraeus Precious Metals Management, LLC. “There is noshortage of silver,” he says. “Investment metal is really justmetal sitting there waiting to come back into the market.”

Suspicious market conditionsIf demand has been so high, why were prices so low until

the last several years? Butler believes the silver market hasseen downward price manipulation by a few commercialbanks with massively concentrated short positions. He and others have been making these allegations for

years, but they have gained weight in the last two years withthe announcement of a United States Commodity FuturesTrading Commission (CFTC) investigation and the state-ment of a CFTC commissioner in October 2010 that hebelieved manipulation had occurred.Some are inclined to believe it. “Bart Chilton, one of the

CFTC commissioners, standing up on his hind feet and say-ing the same thing gives it utmost credibility,” says Clarke.But that does not mean Clarke is influenced by the claim.“What I care about is supply and demand, and that’s reallywhat drives the price of any commodity,” he says.Right now, supply and demand look good. “If you took

the investor out of the marketplace, silver would drop downto $12,” says Perez-Santalla. “But for silver miners, $12 isgood. At this price, they’re making beaucoup dollars.” CIM

Page 63: CIM Magazine May 2011

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Page 64: CIM Magazine May 2011
Page 65: CIM Magazine May 2011

Continuing with the theme of mylast column where I discussed ourcountry’s future being heavilydependent on exports (CIM Maga-zine, March/April issue, p. 52), at 30per cent of the GDP, exports are criti-cal to Canadians’ standard of living.Because mining is Canada’s mostdominant industrial sector globally,Canadian firms offering goods andservices used by the industry havemuch to gain from opportunitiesaround the world.

According to Export Develop-ment Canada (EDC), Canadianexports grew at an average annualrate of just two per cent from 2000to 2008. Then, once the 2008 reces-sion started, Canadian trade crashedby 30 per cent in six months in real(price adjusted) terms, to the samelevel as a decade ago. Now, our tradeis slowly returning to previous levels.

Further, Canada’s exporter popula-tion shrunk from 42,000 companiesin 2004 to 39,000 in 2008. The dropin the annual number of newexporters has been dramatic, fallingfrom a peak of 5,400 in 2002 to 2,300in 2008.

While other countries are organiz-ing national export drives to seize theincreased shares of expanding mar-kets, Canada is doing little in the field

of international trade promotion. Inthe past, Canadian governments havechosen to support exporters throughsubsidies offered by the Program for Export Market Development(PEMD), which ran for about 30years starting in the 1970s. Most suchsubsidies have been stopped by nowas governments have realized thatthey are not effective stimulants.They are ineffective because of the“free rider” effect, where the money istaken by firms that would have donethe project anyway.

For many years, I have thoughtthat Canadian firms might be moti-vated to increase their export market-ing efforts if there were tax incentivesencouraging such activities. A modelmight be the federal government’sScientific Research and ExperimentalDevelopment (SR&ED) tax creditprogram. While currently needingsome repair and maintenance,SR&ED is regarded as an excellentstimulus for small- and medium-sizedfirms to innovate.

Following are reasons as to whytax-based incentives like SR&ED,rather than subsidies, would work tostimulate Canadian firms to exportmore.• Instead of following a government

lead or applying for a specific pro-gram, companies make their own

decisions, resulting in timelyactions to capture rapidly chang-ing market opportunities.

• Companies use their own knowl-edge to identify market opportuni-ties and mobilize their capabilitiesto capitalize on them.

• Such a program could be appliedto all business sectors so that gov-ernments are not put in the posi-tion of picking winners.

• Tax-based incentives provide goodleverage of the government’sinvestment by requiring the com-mitment and up-front use of thefirm’s capital and a focus on thereturn on investment, not just agrab for available governmentmoney.

• Because the firm’s business acu-men and capital are put on the linewhen well-designed tax-basedmechanisms are used, overheadcosts and disruptions associatedwith obtaining government sup-port are minimal.I believe that if Canadian firms

were to receive tax credits onexpenses made to develop exportmarkets, there would be a signifi-cant increase in exporting activity.Such credits could be used in astrategic way, such as applying themto activities in certain countries orregions. CIM

May 2011 | 65

Tax-based incentives could stimulateCanadian exports � Jon Baird

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

author Jon Baird,managing director of CAMESEand the immediate pastpresident of PDAC, is interestedin collective approaches toenhancing the Canadian brandin the world of mining.

supply side | COLUMNS

Staff and students at 30 universities in Africa, Asia, SouthAmerica and Oceania now receive free access to DataMetallogenica thanks to sponsorship by AMIRA members.Supported by over 100 companies, government agencies andprofessional societies, AMIRA’s global mineral deposit databaseis an important learning resource for geological teaching andresearch.

GIVING BACK

Page 66: CIM Magazine May 2011

COLUMNS | MAC economic commentary

In late 2010, the federal govern-ment launched a review of its coreresearch and development (R&D)funding and tax programs. In sodoing, it established an “expertreview panel on R&D” tasked withproviding recommendations to thegovernment by October 2011. Basedon the premise that Canada doespoorly converting knowledge to inno-vation, the overall intent of the exer-cise is to improve Canada’s ability tostimulate innovation, capitalize onknowledge and create economicvalue. In some circles, the launchingof this review has drawn cynicism,given that the federal government hasconducted similar exercises in recentyears without leading to appreciableimprovements.

The Mining Association ofCanada prepared a submission to theexpert panel in late February 2011that highlighted the following threekey messages:

1. The mining industry is a majorcontributor to Canadian prosperity.The sector contributed $32 billion tothe GDP in 2009, employed 306,000workers in mineral extraction, pro-cessing and manufacturing, providedbusiness to 3,200 supplier companies,ranging from engineering services todrilling equipment, and paid around$10 billion in taxes and royalties toCanadian governments. Canadaremained the top destination forglobal exploration spending in 2009,while internationally there are some

1,000 Canadian exploration compa-nies active in over 100 countries. TheCanadian mining industry is highlyglobal, accounting for 19 per cent ofCanada’s goods exports, 10 per cent ofits direct investment stocks abroadand 14 per cent of all inward invest-ment stocks. In this sense, the Cana-dian industry should be viewed by theexpert panel as an important player inthe global economy.

2. The mining sector is a noteworthyinvestor in R&D and has importantinnovation challenges lying ahead.According to Statistics Canada, themining sector invests more in R&Dthan do any of the oil extraction,motor vehicles, wood products ormachinery sectors. This same cata-logue also suggests that there are moreR&D workers in the four stages of themining industry than in the aerospaceand pharmaceutical industries, andboth receive a very high level of gov-ernment support. Seven mining andoil sands companies rank among thetop 100 private-sector R&D investorsin Canada. The sector also drawsupon expertise contained within thefederal CANMET laboratories, as wellas a broad number of small R&D cen-tres with university links that coordi-nate mining research undertakings onbehalf of their members.

Looking ahead, it is unlikely thatthe R&D and innovation hurdles fac-ing the exploration, extraction andprocessing stages will decline. In min-eral exploration, it is evident that eco-nomically feasible resource depositsare becoming more difficult to find,and this at a time when societydemands increasingly minimal dis-ruption to the environment. In extrac-tion, a high portion of Canada’sremaining base metals mineral inven-tory is located at depth, potentiallyseveral kilometres below surface. This

66 | CIM Magazine | Vol. 6, No. 3

Innovation and the Canadian mining sector� Paul Stothart

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www.taggartglobal.comNORTH AMERICA | SOUTH AMERICA | AFRICA | ASIA | AUSTRALIA

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Page 67: CIM Magazine May 2011

MAC economic commentary | COLUMNS

presents technical challenges to theindustry’s efficiency, productivity andprofitability. In the mineral processingstage, incremental improvements tosmelting technologies continue to bemade with the aim of maximizingmetal extraction while minimizingenergy use and air emissions.

The need to continuously improveenvironmental performance under-lies many of the industry’s R&D andinnovation priorities, particularly inthat such improvements can also beclosely linked to efficiency and pro-ductivity gains. In the coming years,industry will be directing increasedattention to energy and carbon man-agement although, as in most sectors,this pace will be affected by world oilprice trends. Perhaps the largest sin-gle environmental challenge facingthe mining industry relates to man-aging the large volumes of waste tail-ings and associated water usage. Inthe oil sands, companies are invest-ing in technology research that couldallow water to be released and land tobe dried and reclaimed more quickly.Improved tailings management willremain a future priority for mostmining companies. R&D relating tothe lightweight materials segmentand to enhanced metal recyclingactivities could also become moreimportant, depending on societal pri-orities, as reflected through publicpolicies.

3. The mining sector does notappear to receive federal R&Dsupport commensurate with itsimportance and innovationchallenges. The largest federal program – the Sci-entific Research and ExperimentalDevelopment (SR&ED) tax credit pro-gram – has helped some companiesimprove process efficiency and tailingsmanagement, although on balance themining sector is a relatively minorbeneficiary. Some suggest that officialsadministering the SR&ED program donot view the mining industry posi-tively, feeling that capital investmentswill occur in Canada as a rich ore bodycountry regardless of innovativeness,

and that support is therefore betterdirected towards software, IT andother sectors. In terms of spendingprograms, annual mining-sector sup-port through key entities such as theNatural Sciences and EngineeringResearch Council (NSERC) and Sus-tainable Development TechnologiesCanada likely totals a few million dol-lars – far less than amounts directedtowards other sectors.

MAC’s submission also proposed afew recommendations to the expertpanel, most notably: • Take into consideration the indus-

try’s scale, global nature and tech-nological challenges,as well as the recentformation of theCanada Mining Inno-vation Council as abody mandated tohelp enhance strategicfederal R&D supportto the sector.

• Establishing a techni-cal steering commitee

involving partners such as NaturalResources Canada, combined witha more active dialogue betweenofficials administering the SR&EDprogram and the affected compa-nies, could serve to reduce cynicism and improve predictabil-ity, efficiency and timeliness of the claim review and appealprocesses. Federal support for R&D should

increasingly encourage the implemen-tation of process improvements and,hence, be linked more closely to pro-ductivity and environmental improve-ments. CIM

May 2011 | 67

author

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

Canada 1 800 414 [email protected]

Complex geology, extreme weather and remote locations are challenges enough. Add to that, social, environmental and regulatory issues and you can appreciate why mining is a challenge.

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delivering sound solutions that maximize vunderground mining,or over 50 years and working within six continentsF

environmental and regulatory issues and you can appreciate why mining is a challenge extreme weather and remote locations are challenges enough.,Complex geology

alue and minimize risk. delivering sound solutions that maximize v Golder has developed unique expertise in open-pit and,or over 50 years and working within six continents

environmental and regulatory issues and you can appreciate why mining is a challenge extreme weather and remote locations are challenges enough.

alue and minimize risk. Golder has developed unique expertise in open-pit and

.environmental and regulatory issues and you can appreciate why mining is a challenge social,Add to that, extreme weather and remote locations are challenges enough.

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Page 68: CIM Magazine May 2011

COLUMNS |

An increasingly competi-tive labour market is affect-ing a number of sectors, butparticularly those that relyon skilled trades and highlyeducated professionals. TheCanadian mining industry,with its strong commoditymarket and current growthprojections, is particularlyvulnerable to labour short-ages – a challenging issuethat has climbed the riskagenda from sixth place in2009 to second in 2010 inErnst & Young’s annualreport, “Business Risks Fac-ing Mining and Metals.”

It is no secret thatCanada’s mining industry isfacing a demographic chal-lenge; an aging populationmeans that in the next fiveyears alone, one-third of themining workforce will be eligible for retirement, driv-ing the need for approxi-mately 100,000 new workersby 2020, according to the MiningIndustry Human Resources (MiHR)Council’s latest labour market informa-tion report, “Canadian Mining IndustryEmployment and Hiring Forecasts2010.”

Facing the factsCanada is not alone. Other coun-

tries are feeling the same crunch andare also struggling to find skilledworkers. In Australia, the NationalResources Sector Employment Task-force published a report in July 2010highlighting the challenge in thatcountry. The Taskforce estimatedthat there will be 61,500 new jobscreated by 2015 in addition to aturnover rate of around 10 per centper year. In South Africa, executiveresearch firm Landelhani found the

average age of mining professionalsin the country was 50 to 55. In theUnited States, the Society of MiningEngineers discovered that over 58per cent of industry members werealready over the age of 50 back in2005.1

Impacting productivityRising global demand for mining

talent will adversely impact develop-ment and productivity and hurt min-ing companies on cost and efficiencyof existing operations. Countriesundergoing rapid economic develop-ment, such as China and India, willcontinue to need the raw materialsthat others like Canada, Australia orSouth Africa provide; however, thispotential is threatened by the loominglabour shortages.

These growth prospects havehelped mining companies to attractmore young workers to the industry,in addition to developing partner-ships with educational institutionsand encouraging alternative andmore flexible employment structures.However, these efforts are notenough to offset the gap betweenworkers on the cusp of retirementand those only just beginning theircareers; there is a shortage of peoplein between.2

Innovative solutions MiHR is committed to developing

solutions to help the Canadian miningindustry address these challenges andrecommends a two-pronged approach:industry must first maximize and makethe best use of all available sources of

68 | CIM Magazine | Vol. 6, No. 3

COLUMNS | HR outlook

Canada is not aloneSkills shortage a global issue in mining� Ryan Montpellier

Mining companies are facing a generation gap between workers on the cusp of retirement and those only just beginning theircareers.

Cred

it: M

iHR

Page 69: CIM Magazine May 2011

HR outlook | COLUMNS

labour through workplace diversity;and second, increase its productivitythrough investments in training andskills development, coupled withimproving the foundation for innova-tion and technological advances.

Attracting and retaining non-tradi-tional sources of talent that have previ-ously been underrepresented inmining is critical to ensure that thenecessary people and skills are avail-able in the short and longer term forthe sustainability of the industry.There are many opportunities to revi-talize the workforce and diversify thepotential talent pool. A number ofgroups that are currently underrepre-sented in the mining industry yetavailable in the general labour forceinclude women, youth, new Canadi-ans, Aboriginal peoples and workers

from comparable industries that haveexperienced a downturn.

A community of supportSometimes it is not enough to iden-

tify a solution, like workplace diver-sity. Employers want to know how toimplement these solutions and theywant real, concrete examples. Cana-dian mining companies are makingstrides in developing more innovativesolutions to these complex issues,but often we do not hear about them.Our peers in other mining companiesare our most valuable resources, andMiHR’s latest initiative,MiHR Innovate, is anonline compendium ofinnovative HR practicesdedicated to helpingemployers exchange and

develop new and tailored innovativesolutions to their company’s HR challenges.

HR practices from over a dozenmining companies have been submit-ted and are categorized in four keyareas: diversity and inclusion; skills,training and employee development;compensation and wellness; and socialresponsibility. Practices include anytype of initiative that has had animpact on an organization and itsemployees. The inaugural round ofsubmissions is now available atwww.mihrinnovate.ca. CIM

May 2011 | 69

author Ryan Montpellier is theexecutive director of MiHR. Currently,he sits on a number of boards andprovincial committees dealing withlabour shortages in the miningsector.

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1 Deloitte’s Tracking the trends 2011: The top 10 issues mining companies will face in the com-ing year

2 Sic

Page 70: CIM Magazine May 2011

COLUMNS | safety

When Charles Taschereauworked on various miningprojects in West Africa, includ-ing four years as vice-presidentand general manager of devel-opment and construction atIAMGOLD’s Essakane GoldMine in Burkina Faso, hequickly noted a lack of safetyawareness among the workers.“Often, the workers hadn’tworn shoes before – they woreflip flops – and they’d neverworn hard hats or gloves,” hesays. “So, unlike in Canadawhere most of the employeeshave already worked in theindustry and know the rules,you start with the basics: mak-ing sure they wear safety boots,gear and glasses.”

Although there has beenimprovement in safety aware-ness with the rise in the num-ber of large mining projects inWest Africa, it remains an issuein the region. “In the past,there was very little focus onsafety,” says Chris Fell, regionalmanager – West Africa, for environ-mental and ground engineering con-sulting firm Golder Associates inGhana. “I think that this was largelydue to local people not havingworked on large development and/ormining projects in the past. Theywere thus not exposed to safety issuesand this did not really come into theirday-to-day thoughts on how to con-duct their work.”

In theory, the lack of a culture ofsafety, combined with the fact thatlabour and safety standards varyacross the region, could set off alarms when it comes to safety inWest African mining operations.According to Paulo De Sa, manager,oil, gas & mining unit at The WorldBank, to make matters worse, some

The safety factorMining companies venturing into West Africa� Alexandra Lopez-Pacheco

governments lack the capacity andwillingness to carry out the necessaryinspections and monitoring toenforce existing standards. But, forthe most part, the reality on theground is a very different narrativethan what the alarms would indicate– at least when it comes to Westernmining companies.

“Large companies that are listed onstock markets have to be careful,” saysDe Sa. “They cannot be exposed tohuman rights complaints or labourlaw violations, because it will affect theperformance of their stock. To a largeextent, they impose the same stan-dards everywhere in the world theywork. They no longer limit themselvesto complying with local laws and stan-dards. But, the problem is with smaller

companies that don’t have bigpockets that cut cornersbecause they’re short of cashor under pressure to deliverreturns to shareholders,” DeSa adds. “But then, they sufferthe consequences stemmingfrom conflict situations withthe workers and local popula-tions.”

At Canadian mining com-panies such as IAMGOLD,which has a zero harmvision, the perspective is notas much about self-regulat-ing as it is about avoidinginjuries and accidents. “If Iwere following all the bestlaws and rules in the worldand injuring people, thatwouldn’t be acceptable,” saysRoss Gallinger, IAMGOLD’ssenior vice-president, health,safety and sustainability. “Wedon’t want anybody hurt –that’s really our objective.Whatever it takes to get tothat zero harm aspect, we’llgo over and above what’s

there. But the true measure of yoursafety performance is whether peopleare getting hurt or not.”

As a result, when it comes to thelearning curve at its West Africanoperations, which include theEssakane Mine in Burkina Faso andthe Sadiola and Yatela mines in Mali,IAMGOLD puts considerable effortinto safety training and awareness.“First of all, you need to have peopleunderstand what the hazards are andwhat the protection aspects are forthose hazards, and try to get people toidentify those themselves,” saysGallinger. “It starts with a lot ofsupervision – helping them under-stand the hazards and the processes.That’s what we would expect in aNorth American culture.”

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Examining samples of ore from crusher at Kalsaka

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safety | COLUMNS

Interestingly, says Taschereau, hisexperience in Burkina Faso was that inmany ways, the workers were eager tolearn. “It’s easier than you would thinkto get buy-in, if you explain thingsvery clearly, give the reasoning behindwhat you’re saying and provide thetraining,” he says, “there’s no push-

back like you get in Canada when try-ing to implement a new rule.”

Security, on site and offIf West African countries have a

learning curve when it comes tosafety, newcomer Canadian miningcompanies, with no experience in

May 2011 | 71

volatile parts of the world, might havetheir own learning curve when itcomes to security. “Most of the minesin northern Canada don’t have fenc-ing; they’re very low security,” saysTaschereau. “Sometimes you’ll seeCanadians going into West Africaunaware of security needs.”

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Training session: Dicko Abdoulaye (left) andCelestin Yameogo during a firefighting drill

QUEEN’S UNIVERSITY, KINGSTON, ONTARIO

Robert M. Buchan Department of MiningGoodwin Hall

25 Union Street, 354Kingston ON

K7L 3N6613 533 2230

Email: [email protected]: http://mrm.mine.queensu.ca

The PurposeThe Queen’s Professional Master’s Program in Mineral Resource Management is designed to provide a new supply of Mining professionals to help address the burgeoning global demands of the mining industry. Intake to the program is focused on candidates who have completed an undergraduate university degree in either an engineering discipline or a relevant science specialization (e.g. Geology, Chemistry, Physics, etc.). Suitable candidates who are admitted to the program will develop and upgrade their mining specific technical knowledge and skill sets. The degree encompasses a broad spectrum of mining subjects over an intensive 8-month program, intended to develop Mining professionals with practical proficiencies with the broad knowledge and depth of understanding needed for the successful management of the business of mineral resource development.

Queen’s InitiativeThe Robert M. Buchan Department of Mining will launch this new Mineral Resource Management Master’s program in 2012. The program will provide candidates from around the world with practical training and skills development, will be delivered by industry-leading subject matter experts and provide state-of-the-art education and perspectives on how to address the challenges of today's global mining industry.

Enrolment & FormatClass size will be capped at 50 students to foster a collaborative atmosphere and ensure a world-class learning experience. The program will be delivered in a modular format, divided into 3 two-month terms with breaks for major holidays. Classes will be taught by subject matter experts from around the world in 4 or 8-week modules within the term. Topics include surface and underground mine design, geology & deposit modelling techniques, mineral economics, mineral development management, environmental management and others, all with an unwavering focus on the safety & business concerns of the global mining industry.

Professional Master’s Program in

MINERAL RESOURCE MANAGEMENT

Page 72: CIM Magazine May 2011

UK-based Cluff Gold, a pioneer in West Africa with mining operations inBurkina Faso, Sierra Leone and the Ivory Coast, has on-site security at itsoperations. “You will need security on site in all of these countries, especiallyin the Ivory Coast with the recent political turmoil,” says the company’sspokesperson Carrie Lun.

Although IAMGOLD’S operations are in some of West Africa’s most stablecountries, the reality is that worker safety and security includes keeping awatchful eye on political stability. “We’re constantly monitoring what’s goingon in the country in terms of what’s happening,” says Gallinger. “Again, wehave procedures and infrastructure in place so that if there are demonstra-tions, riots, etc., we have a means of protecting our employees and crisis plansto deal with them if they do occur.”

Creating the cultureIn the meantime, Western mining companies are actually playing a role in

creating a culture of safety in the region. “From my experience in mines inWest Africa,” says Fell, “the health and safety standards seem to be prettyhigh. Mining companies are using state-of-the-art equipment, which helps toensure a better and safer working environment, and they are putting a lot ofmoney into health and safety programs for their mines.”

Because of this, countries such as Ghana, Botswana and South Africawhich have a long history of attracting international investment into theirmining sectors tend to have higher safety and labour standards, says AvrilCole, an associate in the mining and private capital groups at MacleodDixon LLP’s Toronto office. “The mining sector in Ghana, for example, hasbeen the recipient of significant foreign investment over the years, particu-larly from Australian and Canadian companies that have introduced West-ern mining standards,” she says. “In fact, what we are seeing now is miningprofessionals from Ghana exporting the skills they have picked up frominternational mining companies to other parts of West Africa.” This trendwill no doubt have a positive effect on existing and future business venturesin that part of the world. CIM

72 | CIM Magazine | Vol. 6, No. 3

McElhanney BeginsSecond Century withSaskatchewan Expansion

Chris Newcomb, President & CEO ofMcElhanney Consulting Services Ltd., ispleased to announce the appointment ofLeon Botham, MSCE, P.Eng., asSaskatchewan Region Vice President.

Armed with over 20 years of geotechnicalengineering experience workingextensively on mining projects acrossCanada and globally, Leon is arecognized expert in mining and minewaste assessments in uranium, preciousand base metals, diamonds andindustrial minerals.

With McElhanney's century-old trackrecord of survey, mapping and roaddesign, and Leon's reputation in themining industry, we expect to expand ourservices to mining companies in WesternCanada and overseas.

McElhanney is a multi-disciplineengineering, survey and mappingconsulting firm providing solutions in thefields of resource development,t ranspor ta t ion, s t ructures, landdevelopment, environmental sciences,drainage, water supply, sewagetreatment and disposal. The firm hascompleted projects throughout Canada,the United States and in over 70 othercountries.

Tel. 306 649 [email protected]/mcsl

Golder ecologists, wearing the required protective equipment, undertaking an electrofishing census, as part ofan EIA in West Africa

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Page 73: CIM Magazine May 2011

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Page 74: CIM Magazine May 2011

COLUMNS | aboriginal perspectives

Mineral exploration anddevelopment in Canada typicallyoccur in close proximity to Abo-riginal communities. The positiveimpact such activities have onthese communities are significanton many levels – agreements withFirst Nations on mining-relatedprojects can result in job creation,skills training and economicgrowth at both the local andregional level. If approached in aproactive, respectful and respon-sible way, companies can tip thebalance in favour of a harmo-nious and profitable partnership.Moreover, when a First Nation isproactive in its negotiations, it isnot only a recipe for success, it isa model to be emulated.

Historically, impact benefitagreements (IBAs) existed asbilateral agreements betweenthe government and an Aborigi-nal community, to ensure localrights are respected and thatemployment opportunities arecreated for the people in thecommunity. But, times arechanging. Aboriginal communi-ties are becoming increasinglyinvolved in agreement negotia-tions. A prime example of this isthe recent collaboration agree-ment struck between the CreeFirst Nation in Quebec and oneof Canada’s leading gold pro-ducers.

A step in the right directionLast February, a milestone was

reached in the negotiation processbetween First Nations and miningcompanies. The Cree Nation ofWemindji took charge of its fate,retained the services of a large Mon-treal-based legal firm and placed itselfat the forefront of each step of negoti-ations with Goldcorp regarding thedevelopment and operation of its

A giant step in the agreement processCree Nation sets the tone for future collaborations with mining industry� Jeff Borsato

Éléonore gold property in northernQuebec.

Under the terms of the OpinagowCollaboration Agreement, Goldcorpwill recognize and respect Cree rightsand interests in the area in and aroundthe Éléonore property. For its part, theCree Nation will recognize Goldcorp’srights and interests in the property,forging an agreement to ensuremutual development and cooperationthroughout the life of the mine. Thiscollaborative relationship between

Goldcorp and the Cree Nationensures continued respect forCree traditional activities whilepromoting its economic andsocial development.

“It’s about vision: creatingsomething that serves our needto grow and prosper while hon-ouring our traditional way oflife,” says Chief Rodney Mark ofthe Cree Nation of Wemindji.“Self-reliance is so important tothe Cree. A critical element ofthe agreement is the cooperationof the 10 communities aroundWemindji towards building aviable economy and increasingself-determination.” This collab-oration is just one part of agrowing trend towards greaterAboriginal involvement indevelopment negotiations.

Federal policies dictate thatcompanies must engage boththe government and Aboriginalrepresentatives early in theprocess. This sentiment isechoed by Steve Reid, Gold-corp’s executive vice-presidentand COO. “At the core of thisagreement are community part-nerships that will ensure aresponsible and viable minesitefor many years to come,” hesays. “Sustainable prosperity iscritical, which is why weengaged the Cree from the earli-

est stages of exploration, ensuring thatthey were active participants and notpassive partners in the entire process,”he adds, outlining the company’sapproach.

Grand Chief Matthew Coon Comeof the Grand Council of the Crees con-firms the significance of the signing.“This marks an important step for-ward for the Cree Nation,” he says. “Itensures economic development thatwe can be an active partner in. TheOpinagow Collaboration Agreement is

74 | CIM Magazine | Vol. 6, No. 3

“It’s about vision: creating something that serves our need to grow and prosper

while honouring our traditional way of life”

— Chief Mark

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evidence that the Cree aren’t anti-development; it showsthat we seek out development provided our rights, the envi-ronment and our way of life are respected.”

Looking at the long term Chief Coon Come highlights the common vision that the

Cree and the mining community share. “The spirit andintent of cooperation agreements build upon existing agree-ments and can act as a template to other First Nations thatare considering allowing mineral exploration and develop-ment on their land,” he says.

His advice to the other 614 First Nation communitiesthat may find themselves in similar situations: “Any agree-ment must address education, cultural sensitivity, businessopportunities and ensure traditional ways of life are pro-tected.” Chief Mark stresses the importance of engaging theyounger generation by providing student internships andsummer programs, for example, and by explaining to themthe range of opportunities that mineral development canbring to the region. “The younger generations need to seethat there are job opportunities in the community, not justin mining but in the private sector as a whole as it devel-ops,” he adds.

A critical outcome of this agreement will be to ensuredevelopment takes place beyond the minesite, where resi-dents can foster greater economic ties and ensure future suc-cess for First Nation communities. Following explorationactivity, an airstrip and a 63-kilometre power line with atelecommunications tower were constructed, and a 61-kilo-metre access road is planned.

With an estimated mine life of 16 years, the Éléonoreproperty is considered a major new gold discovery in north-ern Quebec. The signing of the Opinagow CollaborationAgreement will not only help ensure sustainable develop-ment in Wemindji, the landmark negotiations will helpguide future Aboriginal initiatives towards greater prosper-ity through responsible natural resource development. CIM

The Opinagow Collaboration Agreement will ensure mutual development andcooperation throughout the life of the Éléonore gold mine. From L to R: Grand ChiefCoon Come, Chief Rodney Mark and Steve Reid.

May 2011 | 75

Making your world secure

Contact me for more information:

Cy KingEmail: [email protected]: 780.791.7087

Draw on our expertise

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Page 76: CIM Magazine May 2011

COLUMNS | standards

Prior to the Committee for MineralReserve International Reporting Stan-dards’ (CRIRSCO) annual meetingheld on September 27, 2010, inMoscow, CRIRSCO and the RussianState Commission on MineralReserves (GKZ) held a seminar onRussian and International MineralReserves/Resources Standards. Each ofthe CRIRSCO representatives reportedon the status of their country’scodes/rules for reporting MineralResources and Mineral Reserves (PaulBankes and I represented CIM):• Australia – Preparations are under-

way for a revision to the JORCCode with an objective of finalizingit by the end of 2011.

• Canada – The Canadian SecuritiesAdministrators (CSA) are reviewingNI 43-101 with July 2011 as the targetdate for completion of the revision.

• Chile – The number of QualifiedCompetent Persons who are regis-tered is increasing, and training iscontinuing on the use of the newChilean Code.

• Europe – The Pan EuropeanReserves and Resources Reporting

CRIRSCO and international reporting standards� Deborah McCombe

Committee (PERC) continues tolobby to have the PERC Codeaccepted by the various Europeanstock exchanges and regulators.

• South Africa – The South AfricanCodes are being reviewed, but thereis no timetable at this time for revi-sion of the 2007 Code.

• United States – The number of SMERegistered Members has increasedand this is expected to continue togrow if the application to be regis-tered as a Foreign Associationunder NI 43-101 is successful. SMEis still actively trying to convincethe SEC to align with the CRIRSCOTemplate and adopt the SME 2007guide for mineral reserve andresource definitions disclosure.

United Nations FrameworkClassification

CRIRSCO representatives continueto participate in the deliberations of theUnited Nations Framework Classifica-tion (UNFC) Revision Taskforce. Atthe October 2009 meeting, a revisedUNFC was adopted (UNFC 2009) andin April 2010, a UN Specifications Task

Force met and identified specificationsand guideline issues to consider.

International Accounting Standards Board

The International Accounting Stan-dards Board’s (IASB) extractive indus-tries project team issued a workingdraft on the valuation of MineralReserves for comment. CRIRSCO rep-resentatives have been working closelywith the project team and the IASBMinerals Industry Working Group.

Alignment of the Russian reportingstandards and the CRIRSCOTemplate

The Guidelines on Alignment ofRussian reporting mineral reportingstandards and the CRIRSCO Templatewas developed throughout the year. Itwas signed by representatives ofCRIRSCO and GKZ (the Russian StateCommission on Mineral Reserves)during the Moscow meeting and isavailable on the CRIRSCO website.PERC was active in developing thisguideline, aligning Russian reportingstandards with the CRIRSCO Template(a generalized reporting code devel-oped by CRIRSCO).

A collaboration agreement has beenprepared linking CRIRSCO, GKZ andthe Russian Society of Subsoil UseExperts (OERN). Its main objective is todevelop a public reporting code in Rus-sia by the end of 2012 that will be com-pliant with the CRIRSCO Template. Itwill not replace the internal reportingstandards for government purposes.

Core definitions in the CRIRSCOTemplate

Over time, the major definitionscontained in the CRIRSCO family ofcodes have drifted from the commonal-ity achieved in the Denver Accord of1997. With more international expo-sure of the CRIRSCO Template, it wasagreed that it would be preferable if 13core definitions could be standardized

76 | CIM Magazine | Vol. 6, No. 3

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Page 77: CIM Magazine May 2011

for the CRIRSCO Template and then these definitions beadopted into each country’s codes/rules and standards. It wasrecognized that even though the basic definitions could be thesame, there was a need to have accompanying guidance toreflect the situation pertaining to each jurisdiction.

CRIRSCO members agreed in principle on the core defini-tions for Public Reports, Competent/Qualified Persons, Mod-ifying Factors, Exploration Results, Mineral Resource,Inferred Resource, Indicated Resource, Measured Resource,Mineral Reserve, Probable Reserve, Proved Reserve, Pre-feasi-bility Study and Feasibility Study. These definitions will bereferred to each national reporting organization (such as CIMin Canada) for their consideration. See the CRIRSCO websitefor more information.

Material beyond Inferred ResourcesA paper prepared by Niall Weatherstone on “Material

beyond Inferred” generated considerable discussion. TheCRIRSCO Template does not provide for material that does notqualify for classification as a resource. Other classification sys-tems, such as UNFC and Petroleum Resources ManagementSystem (PRMS), find a place for each and every category of min-eralization. Some CRIRSCO family codes have provisions fordiscussing material that has the potential to be, but is not cur-rently, a resource. The document was presented as a discussiondraft and is on the CRIRSCO website. There is no intention tomodify the CRIRSCO Template or the basic diagram showingthe relationship of the CRIRSCO categories. Rather, the aim isto show the CRIRSCO position regarding other categories.

Other businessCRIRSCO’s strategic relationship with ICMM has been for-

malized for three years. Regular communications take placebetween the parties and the objective is to provide mutualsupport for each group’s activities. ICMM is a major contribu-tor to the costs of running CRIRSCO. The support of ICMM,national reporting organizations and employers through fund-ing and provision of time was gratefully acknowledged.

On July 1, 2011, I will take on the position of Chair andEdmundo Tulcanaza (Comision Minera) will become theFirst Deputy Chair. Ian Goddard (JORC) will continue as Sec-ond Deputy Chair.

For more information visit: http://www.crirsco.com/news.asp.

CIM

May 2011 | 77

author

Deborah McCombe, executive vice-presidentof Roscoe Postle Associates and president ofAPGO, is a consulting geologist stronglyinvolved in international mineral resource andreserve reporting and Canadian disclosurestandards for the mining industry.

Page 78: CIM Magazine May 2011

COLUMNS | innovation

In an effort to realize Canada’s fullpotential in mining research, threeorganizations are coming together todocument the hard facts. The CanadaMining Innovation Council (CMIC),the Intergovernmental WorkingGroup (IGWG) and NaturalResources Canada (NRCan) haveagreed to compile two catalogues ofdata on the potential funding sourcesand capacity for mining and mining-related research in Canada.

CMIC and NRCan were met withunanimous approval when they pre-sented their proposals to the IGWG ata meeting in March. They agreed thatweb-based reports will benefit theresearch community, government

Realizing Canada’s full potentialCollaboration key to advancing innovation� Tom Hynes

departments and companies associ-ated with the mining industry.

The first catalogue is intended topublicize potential funding sourcesfor mining-related research inCanada. Some sources (such asNSERC) are well-known, but othergrant resources go untapped simplybecause many are not aware of them.

A recent study by NRCan foundthat the mining industry is notusing all its available research oppor-tunities, and a major reason for thisincludes a lack of knowledge aboutresearch programs and concernsabout complex application processes.The proposed catalogue will aim toaddress these concerns. The report

will also be useful to provincial, terri-torial and federal officials who cur-rently have no easy way to access anarchive of available research sourcesin their own jurisdictions.

The second catalogue intends tobetter identify research groups, facili-ties, specialized equipment and exist-ing research programs across Canada.As with the first catalogue, the input ofprovinces, territories and federaldepartments will be critical, but thiscatalogue will also need to draw oncontributions from universities andresearch centres (many of them CMICmembers), as well as the private sector(mining companies, service providers,equipment manufacturers, etc.).

78 | CIM Magazine | Vol. 6, No. 3

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Page 79: CIM Magazine May 2011

Furthering research in CanadaNew international research laboratory in geophysicsAbitibi Géophysique Inc. and the Université du Québec en Abitibi-Témiscamingue (UQAT) recently signed a unique agreement that will leadto, among other things, the creation of an international research laboratoryin geophysics. The team of Abitibi Géophysique sees this partnership as anopportunity to develop cutting-edge knowledge and better practices inidentifying ore deposits.

“Be it to address problems regarding electronic aspects, methodologies, ITaspects or data processing, joint work between universities and private com-panies always represents a winning approach,” says Pierre Bérubé, AbitibiGéophysique’s president and the force behind the project.

The principal of UQAT, Johanne Jean, agrees. “This is an extraordinaryopportunity to delve even deeper into the knowledge of this field and explorenew ways of doing things,” she says.

The protocol plans to implement a laboratory of research in geophysics,which will be located in the Technopôle géoscientifique Géopolis in Val-d’Or,and other locations are earmarked for teaching and research. It specifiesthat this will lead to the creation of programs, projects, courses and researchwork in geophysics. To achieve this, the partners will establish relationshipswith various universities and companies, as required. The agreement alsoincludes a facet regarding technology transfers.

New School of Mines well positioned to contribute to research effortsLocated in one of the world’s largest exploration/mining/service/educationclusters, Laurentian University is in close proximity to some of the world’slargest Ni-Cu-PGE, Cu-Zn-(Au) and Au deposits, which provides ideal oppor-tunities for field instruction, co-op education and research.

Laurentian University’s new School of Mines in Sudbury is a welcome addi-tion to mining education in Canada. The university offers bachelor’s, mas-ter’s and doctoral teaching and research programs across the entirespectrum of the mine cycle. Fields of study include Aboriginal engagement,grassroots exploration, environmental assessment, mine design and opera-tion, brownfields exploration, occupational health and safety, mine closure,environmental remediation and environmental restoration. A major focus willbe its professional development programs, including an executive MBAdegree in mining management.

Laurentian is in the process of formalizing these offerings under the aus-pices of the School of Mines, with the goal of establishing itself as one ofthe world’s leading providers of mining-related undergraduate, graduate andprofessional education.

For further information contact Michael Lesher, director of mining initiativesat Laurentian University, at [email protected] or [email protected].

The IGWG member provinces, territories andfederal representatives have committed to pro-vide the data from their individual jurisdictions.Where known, they will also consider whethertaxation issues or regulatory implications (suchas development expenditures) are relevant fac-tors in the provision of research, or the use ofresearch funds, in their jurisdictions.

The reports will be made available in an elec-tronic format and may make considerable use ofweb links to existing information by provincial,territorial, federal or other agencies. In additionto IGWG, NRCan and CMIC resources, work onthe proposals is being supported by volunteersfrom 3M Mining and CIM.

This catalogue will provide the mining andresearch communities, and associated regula-tory and policy departments with the knowl-edge of the potential that lies within Canada.The organizers hope it will ensure the better useof existing facilities and identify gaps for futureconsideration.

Any relevant information (including, but notlimited to, research funding sources; data onspecialized equipment of facilities, includingthose for other industries or purposes that mayalso be relevant to mining or exploration;researchers or research groups working inCanada) that interested parties feel would bene-fit these initiatives can be forwarded to MichelPlouffe at [email protected].

Any such contributions would be muchappreciated. Organizers aim to have one or bothcatalogues ready to present at the 2011 Energyand Mines Ministers Conference being held inJuly in Alberta. CIM

May 2011 | 79

author Tom Hynes has workedin the uranium and base metalsindustries, and has been aprovincial regulator and a federalgovernment research manager. He is the executive director of theCanada Mining Innovation Council.

Visit the CMiC websitewww.cmic-ccim.org

Page 80: CIM Magazine May 2011

COLUMNS | metals monitor

The Metals Economics GroupPipeline Activity Index (PAI) droppedsharply in January from December’sthree-year high before recoveringmodestly in February. The PAI’smovement over the past few monthsfollows a typical seasonal trend –increased activity through the lattermonths of the year followed by a dropin the first few months of the follow-ing year as companies resume workafter the holiday break. Despite Janu-ary’s sharp fall from December’srecord high, the PAI remains slightlyabove the 2010 average.

After reaching $2.36 trillion inDecember 2010 – the highest sinceMEG initiated the PAI – the industry’saggregate market capitalizationdipped in January. Metals prices con-tinued to increase, helping to lift theaggregate market capitalization to$2.32 trillion at the end of February –less than two per cent below Decem-ber’s high-water mark.

The number of significant drillresults released in the latest two-month period was slightly lower thanthe November-December 2010 period,but still relatively strong compared to2009 and the first half of 2010.Regionally, the top three destinations –North America, Latin America andAustralia-Pacific – combined toaccount for more than three-quartersof announcements in both November-December 2010 and January-February2011. Unlike gold results, which haveslowed recently as the relative goldprice has more or less flattened overthe past five months, significant basemetals results remained strongthrough the holiday season.

Initial resource announcements byjunior and intermediate companieswere up from January-February 2010,but still well shy of bimonthly num-bers prior to the economic collapse inearly 2008. The overall value of initial

MEG Pipeline Activity Index drops from December high � The staff of Metals Economics Group

resources reported in the latest two-month period is up from November-December 2010, with more than 40per cent of the $28 billion total attrib-utable to the Zafranal project in south-ern Peru, where AQM Copper andTeck Resources announced initialresources containing more than 1.5million metric tonnes of copper and

870,000 ounces of gold. Of the initialbase metals resources announced inJanuary-February 2011, the top threeprimary copper projects accounted formore than 92 per cent of the totalvalue.

The decrease in the number of sig-nificant financings completed by jun-ior and intermediate companies in the

80 | CIM Magazine | Vol. 6, No. 3

Significant junior and intermediate company financings.

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metals monitor | COLUMNS

latest two-month period was thebiggest contributor to the decline inthe PAI, as both January and Februaryexpectedly dropped from December’speak. The amount raised in January-February 2011 was also below the2010 bimonthly average of $3.82 billion.

The MEG Pipeline Activity Index(PAI) measures the level and direction ofoverall activity in the supply pipeline,incorporating significant drill results,initial resource announcements, projectdevelopment milestones, and significant

CIM

financings into a single comparableindex. The PAI is featured in the MEGIndustry Monitor – a series of compre-hensive graphs and charts, with relatedcommentary, illustrating MEG’s analy-sis of monthly changes and emergingtrends in the base and precious metalspipeline. Using information only avail-able from MEG through MineSearch,Exploration Activity Services, and

May 2011 | 81

The recently transformed BritanniaMine Museum won the 2011 Cana-dian Museum Association Award forOutstanding Achievement in FacilityDevelopment and Design. Rein-vented in 2010 by a $14.7 millionthree-phase redevelopment projectturned this mining legacy site into avibrant internationally recognizedtourist destination. Made possible bygenerous contributions from themining industry, the provincial andfederal governments, and privatedonors, the redevelopment projectfocused on preserving the museum’sheritage buildings and mining collec-tions, while creating an enhancedvisitor experience with the newBeaty-Lundin Visitor Centre and theBritannia A-Z Exhibit Hall. The com-plete restoration of the A-Z ExhibitHall and the creation of new inter-pretive displays showcase what lifewas like for the more than 60,000people from over 50 countries wholived and worked in Britanniabetween 1904 to 1974.

The museum was recognized forexcellence in function, vision, inno-vation and architecture, and waschosen because of its national sig-nificance and ambitious vision increating a destination museum in aconsiderable short time frame.

ACHIEVEMENT

Acquisitions Services, the Industry Mon-itor tracks developments based onannouncements over the past 26 monthsof significant drill results, initial newresources, project development mile-stones, significant financings, andacquisitions.

For more information on the PAI, visitwww.metalseconomics.com.

Page 82: CIM Magazine May 2011

COLUMNS | women in mining

In an industry that is slowto adopt gender diversity,Noront Resources stands outlike an oasis in the desert:over 50 per cent of itsemployees are female, com-pared to just 14 per cent over-all in the mining sector.

Although this remarkablegender split happened moreby accident than by design,Noront continues to promoteand capitalize on diversity asthe company transitionsfrom exploration to develop-ment and competes for a lim-ited pool of talent. “We’vetotally embraced the diver-sity and inclusion model andbecause of that, we’ll be ableto attract really intelligent,bright females from acrossCanada,” says Leanne Hall,vice-president of humanresources for Noront, a Toronto-basedmineral exploration company withexploration activity in the Ring ofFire Region in northwestern Ontario.“For us, it is about creating a diversetalent pool that will enhance andengage our workforce for the future –this is also a win/win situation for the mining industry and northernenvironments.”

Change starts at the topWes Hanson, president and CEO

of Noront, plays a critical role in set-ting the leadership tone for change –making workplace flexibility a keypriority. He understands that humanresource policies and programs thatincorporate work/life initiatives areimportant for attracting and retainingtalent as well as maintaining highlevels of productivity. Whether talk-ing about work practices or workingconditions, it is clear that barriersexist for women in particular.

Tilting the balanceNoront a model for gender diversity� Virginia Heffernan

The Ramp-Up study report, pub-lished last February by the MiningIndustry Human Resources (MiHR)Council and Women in MiningCanada, focused on the status ofwomen in the mining and explorationsector. Interestingly enough, thenumber one barrier for femalerespondents was the seven-dayin/seven-day out work schedule prac-tice at many remote camps.

Melanie Sturk, the director ofattraction, retention and transition forMiHR, believes that this likelyexplains the drastic drop in the num-ber of females that make the transitionfrom school to paying jobs in theindustry, even though at least 50 percent of the students enrolled in post-secondary geology programs arefemale.

Here again, Noront is an anomaly: 44per cent of all of Noront’s femaleemployees are in management or intechnical positions, including geologists.

Camp accommodations include sepa-rate sleeping quarters, bathrooms andshowers for women.

Sturk believes there are a number ofinitiatives companies can take to sup-port work-life balance, including sub-sidized on-site day care, for example,or giving female employees workschedule options to choose from.“We’re going to look at new initiativessuch as flex-time and childcareissues,” says Hall, “but right now,because the majority of employees arein our exploration camp, we are morefocused on keeping them happy whilethey are in camp.”

The second major barrier identifiedin the report is the work culture withina male-dominated industry. Notionsabout women’s intolerance for physi-cally demanding tasks can impedecareer paths and need to be dispelled.“Eliminating assumptions aboutwomen’s ability to manage field work isvital. In addition, there is a need to

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Although more than 50 per cent of students enrolled in post-secondary geology programs are female, the number thattransition from school to mining careers is low.

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women in mining | COLUMNS

address practices that collectively con-tribute to perceptions of a male-domi-nated culture, including awarenesstraining, closing the wage gap andimplementing mentorship programs,”the Ramp-UP report states in its recom-mendations. Change starts at the top.

“Not just white males”The increased number of women

at companies like Noront is begin-ning to alter the way mining is pre-sented to young people considering acareer in the industry. Several womentook leadership roles at last August’s“Mining Matters” summer camp, runby the Prospectors and DevelopersAssociation of Canada (PDAC) andsponsored by Noront, in the commu-nities of Webequie and Marten Falls.They included Renata Smoke, anAboriginal student studying geologyat the University of Western Ontario,and Barbara Green Parker, Aboriginaleducation specialist for PDAC.

The camp introduced a total of 104youth, ranging in age from nine to 19,to geological and mineral explorationactivities, including prospecting, claimstaking, mapping and the use of GPStechnology. Providing role modelssuch as Smoke and Parker – alongwith Aboriginals who work in theindustry – to girls thinking of becom-ing mining professionals is crucial tochange the perception of mining as awhite, male-only field, says Sturk.

To this end, Noront’s goal of beingan employer of choice encompassesemployment opportunities for Aborigi-nal women and men from the commu-nities surrounding Noront’s explorationproperties in the Ring of Fire – a vastarea containing several polymetallicand chromite deposits in Ontario’sJames Bay lowlands. As the companygrows, it only makes sense to train andrecruit and train local talent, says Hall.

The strategy is already paying off.“When you see Noront at an event, yousee Leanne Hall, you see Glenn Nolan,vice-president of Aboriginal affairs andformer chief of the Missanabie CreeFirst Nation, and you see a diversegroup of people who love their jobsand are excited about what they do,”

May 2011 | 83

says Sturk. “Seeing female faces in theindustry and having these people to goto for support is critical for women.” Infact, mentoring has proven to be mostsuccessful in developing diverse talent.

Recently, Noront expanded its men-torship program by offering directaccess to successful mining women,including Hall, on the Mikawaa (anOji-Cree word meaning “discovery”)web portal developed by Noront toimprove communication, consultationand collaboration between the com-pany and surrounding communities

Renata Smoke teaching Mining Matters in Martens Falls First Nation, summer 2010.

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(www.mikawaa.com).“Mikawaabreaks down the barrier of distance,”says Hall. “We are just a click awayfrom respectful, responsible andknowledgeable dialogue and the shar-ing of information with our communi-ties and stakeholders.”

Mikawaa is the kind of initiativethat will encourage the next genera-tion of women to join an industrywhere significant obstacles for womenpersist. One can be sure that when itcomes to diversity, Noront will beleading the charge. CIM

Page 84: CIM Magazine May 2011

COLUMNS | eye on business

84 | CIM Magazine | Vol. 6, No. 3

Political risk and exposure to government decision-making is nothing new for the extractive sector. Miningcompanies have long operated within highly regulatedenvironments with significant oversight by governmentsboth at home and abroad. However, both the nature andscope of this exposure to government decision-making hasevolved significantly, in step with the mushroomingdemands of corporate social responsibility (CSR). Naturalresource companies, in particular, often face serious chal-lenges from foreign governments (worst case scenariobeing illegal expropriation).

Indigenous peoples, non-governmental organizations(NGOs) and local communities now have access to agrowing number of binding and non-binding tribunalsfor airing complaints. In this environment, now morethan ever companies need to be proactive in the devel-opment of CSR policies and in crafting comprehensiveand adaptive front-end strategies for managing these

Proactive versus reactiveThe importance of having a good CSR plan� Claudia Feldkamp and Kevin O’Callaghan

evolving CSR demands and accompanying ongoingpolitical exposure.

The legal, social and political landscape has undergonethe beginnings of a substantial shift toward companiesbeing held responsible for the economic, social and envi-ronmental consequences of their business activities. Signif-icant challenges for companies have accompanied thisshift. CSR standards and accountability mechanisms arecontinually evolving. In Canada, the landscape was on theverge of changing last year with a private member’s bill(Bill C-300) being introduced into a minority Parliament.There is often a gap between CSR ideals and practical guid-ance for companies on how to transform the statement ofideals into practice. Attempting to bridge this gap, JohnRuggie, the UN Secretary General’s special representativeon human rights and transnational corporations and otherbusiness enterprises, has recently published “GuidingPrinciples for the Implementation of the UN ‘Protect,Respect and Remedy’ Framework.”

The application of CSR standards is highly complex andaccompanied by significant unpredictability on theground. What is appropriate for a company operating inthe Democratic Republic of Congo will be different from acompany operating in Brazil or British Columbia. Addi-tionally, the framework of a company’s operations is neverstatic. Political, communal and economic changes in theregion and host country occur over the life of a mine.Companies operating in politically unstable regions, inparticular, may need to respond to dramatic politicalchanges and possibly threats to their operations. For exam-ple, if facing a possible expropriation, a company will needto decide whether it can safely protect its operations ormust close a mine to protect its employees.

Have a CSR planCSR has been long championed by NGOs as a shield to

protect civil society, but it can also be used as a sword toattack mining operations, particularly in developing coun-tries. Despite corporate practices being constantlyimproved and refined, companies are increasingly exposedto these risks.

What can companies do? Most importantly, compa-nies need to be proactive, not reactive, both in enhanc-ing and refining their CSR policies and in minimizingrisk on the front end (while preparing for worst casescenarios). Companies need to identify early on the keyCSR imperatives, first by developing a thorough under-standing of all existing and potential social licenseimperatives, and second, by forming a strategy for

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The reality, of course, is that a company can do every-thing right and still run into serious problems along theway. But, having a strong plan in place on the front endthat contemplates what can go wrong and that sets out aplan for managing issues can go a long way towards help-ing companies successfully navigate and safeguard theroute from concept to mine to market. CIM

authors

Claudia Feldkamp isan associate atFasken Martineau inToronto. She advisesher clients in theareas of generalcorporate law,

international trade and multi-lateral institutions, governmentrelations and corporate social responsibility.

Kevin O’Callaghan is a partner at Fasken Martineau in Vancouver.He provides strategic advice on Aboriginal, regulatory,environmental and other corporate social responsibility issues.

COLUMNS | eye on business

86 | CIM Magazine | Vol. 6, No. 3

navigating the social licence and policy implications ofdevelopment.

Having identified the key CSR imperatives, companiesneed to know the “players” in and around the project loca-tion. In recognition of the tremendous influence of localcommunities, indigenous people and NGOs, companiesmust invest in the relationships needed with respectedcommunity leaders and maintain these relationships,which can have a real on-the-ground impact on the devel-opment of a project.

Companies also need to build strategic relationshipswithin governments, from local to national, and within rel-evant international organizations. They must establish aglobal approach to government relations that reflects anunderstanding of all relevant governments, including thehost and home countries, as well as other governmentswith interests in the host country and any relevant interna-tional institutions.

As with the development of relationships with commu-nity leaders, timing is critical: companies need to buildtheir strategic relationships before problems arise. The firstencounter with a key official should not be to discuss aCSR problem or other bad news. It should always be toshowcase the positive good news impacts of developmentin an official’s sphere of responsibility.

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COLUMNS | parlons en

SEMAFO est une sociétéminière canadienne menant desactivités de production et d’explo-ration aurifères en Afrique occi-dentale. La compagnie démontrechaque année sa capacité àrespecter ses engagements, enatteignant ou en dépassant sesobjectifs. Elle s’est engagée à agirconsciencieusement afin dedevenir un acteur de premier plandans les pays où elle exerce sesactivités.

SEMAFO possède trois minesen Afrique : Mana au BurkinaFaso, Samira Hill au Niger etKiniero en Guinée. Nosactivités d’explorations’étendent sur 5 000kilomètres carrés et, en2010, notre productionaurifère a atteint 261 100onces. Au-delà de nosactivités minières, nouscontribuons à l’améliora-tion de la qualité de vie etau développement descommunautés qui nousaccueillent; cela fait par-tie intégrante de notredémarche de développe-ment durable. C’est ainsique, par des politiques et des pro-grammes éthiques en matière desanté, d’éducation, de développe-ment social et d’environnement,SEMAFO a cultivé au fil des ans unsavoir-faire reconnu. Nous travail-lons de concert avec nos partiesprenantes : les gens, les commu-nautés, les différentes autorités, etc.L’engagement de la compagnie enversle développement durable est uncheminement, une démarche à longterme qui guide nos actions quotidi-ennes, moyennant constance, rigueuret échanges avec nos partenaires, etce, dans un esprit d’améliorationcontinue.

Un engagement humainLe développement durable guide les actions quotidiennes de SEMAFO� Christelle Masson

La plus grande initiative de notrecompagnie envers les communautés aété la création, en 2008, de FondationSEMAFO, concrétisant ainsi les pra-tiques responsables de SEMAFO. Lafondation a développé une expertiseen matière humanitaire et a mis surpieds de nombreux projets créateursde valeur. Chaque année, jusqu’à 2pour cent des bénéfices nets de la com-pagnie sont versés à la fondation aubénéfice des communautés vivant àproximité de nos activités minières.

L’éducation, la santé et l’agricultureconstituent la pierre angulaire de lafondation, contribuant ainsi à unemeilleure qualité de vie pour les com-

munautés desservies. Dans une per-spective d’autonomie, les projets deFondation SEMAFO sont élaborésconjointement avec les commu-nautés. La fondation a connu unecroissance exponentielle et jouit àl’heure actuelle d’une réputation etd’une visibilité hors du commun. Enplus de la distribution de dons et dematériel, ces projets incluent la con-struction d’écoles, de cliniques médi-cales, de puits, la mise en place decantines scolaires, le soutien à la for-mation des adultes ainsi que ledémarrage de projets générateurs derevenus, tels que l’exportation desproduits de karité, de sésame et depaprika. En sa première année de pro-duction, le projet Sésame a généré150 000 $ de revenus pour la commu-nauté.

En 2010, la fondation a appuyé ledéveloppement du secteur du karité,qui regroupe huit coopératives auBurkina Faso. Cette intervention vise àaugmenter les exportations burkinabè

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Journée où les clés de la savonnerie ont été remisespar la directrice générale de Fondation SEMAFO et ledirecteur national de SEMAFO Burkina Faso.

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parlons en | COLUMNS

de produits de karité par l’entremised’activités de renforcement de la com-pétitivité et d’accès au marché. Ainsi,les représentants du secteur ont reçuune formation sur les exigences de ladistribution des produits à base de kar-ité à travers le monde. Ils ont égale-ment rencontré des distributeurs àMontréal, à Toronto et à New York. Lafondation a aussi offert son soutientechnique et financier pour la con-struction d’une savonnerie afin defaciliter et d’augmenter la capacité deproduction destinée à l’exportation.

Une autre initiative de SEMAFO aété la création de SEMAFO Énergie en

2008. Ainsi, SEMAFO s’associe auxpriorités africaines visant à réduire lacarence énergétique. SEMAFOÉnergie a piloté des études de préfais-abilité dans lestrois pays etœuvre à la miseen place d’unconsortium pourla réalisation deplusieurs pro-jets, dont la c o n s t r u c t i o nd’une centralesolaire de 20mégawatts, en

partenariat avec le gouverne-ment burkinabé. L’alternativesolaire offre un potentielattrayant et actuellement sous-exploité sur le continentafricain. Riche de soleil, le con-tinent africain utilise rarementl’alternative solaire puisque lescoûts de cette technologie sontencore très élevés. Espérantfaire mentir ce paradoxe, ce

projet d’énergie renouvelable s’intègreparfaitement dans le contexte inter-national qui encourage des projets dedéveloppement durable. ICM

May 2011 | 89

auteur

Christelle Masson, MBA et spécialisteen développement durable, gèrel’évolution et la communication du pland’action de développement durable deSEMAFO, tout en rendant compte ducheminement concret de l’organisationen cette matière.

« Ensemble pour une société meilleure »SEMAFO étend son action citoyenne à l’ensemble du Burkina Fasoà travers une campagne radio hebdomadaire qui vise à informerpuis sensibiliser les populations sur 52 sujets relatifs à l’améliorationdes conditions de vie, comme la gestion d’activités génératrices derevenus et la protection de l’environnement. Les émissions sontréalisées en français, traduites en langues nationales et diffuséessur 16 radios dans l’ensemble du Burkina Faso.

Page 90: CIM Magazine May 2011

COLUMNS | canadians abroad

After 12 years with thefederal government’s TradeCommissioner Service (TCS),Carlos Rojas-Arbulù is livinga dream that began when hewas a child in Peru. “I recall ablack-and-white news broad-cast of the Secretary Generalof the United Nations, JavierPerez de Cuellar, comment-ing on the aftermath of theFalkland Islands conflictbetween Argentina and theUnited Kingdom,” he says.“At 12 years of age, I couldnot grasp the meaning orimportance of this, but theimage stayed with me foryears. It has contributed tothe choices I have made thusfar and influenced my path.” Today,Rojas-Arbulù� is a Canadian diplomatand works out of Senegal as the Com-mercial Counsellor and Senior TradeCommissioner (West Africa) at theCanadian Embassy in Senegal, relish-ing learning about life in different partsof the world.

Setting down the roadIn the late 1980s, Rojas-Arbulù�

moved with his family to Montreal,Quebec. Fresh out of Concordia Univer-sity in 1997 where he majored in politi-cal science, Rojas-Arbulù� first workedas a business development representa-tive for a Canadian private sector com-pany in Nicaragua before launching hiscareer with the Department of ForeignAffairs and International Trade Canadaas a junior trade officer in the CanadianEmbassy in Peru. “It was exciting toexplore the sounds, food, music andsights of Nicaragua and Peru,” herecalls. “It brought me face to face withmy multicultural heritage, as seen fromoutside Canada.”

Between 2000 and 2005, Rojas-Arbulù’s career with the TCS in Ottawa

Embracing diversityFrom Peru to West Africa with a Canadian Trade Commissioner� Heather Ednie

allowed him to travel extensivelythrough Mexico and Central America.In 2005, he was posted to CentralAmerica as a Canadian diplomat work-ing as a senior trade commissioner(first secretary) at the CanadianEmbassy in Guatemala, where he wasresponsible for the commercial andinvestment program.

In 2007, Rojas-Arbulù� returned toOttawa to step into the role of DeputyDirector, corporate social responsibility(CSR), and National Contact Point forthe Organisation for Economic Co-operation and Development (OECD)Guidelines for Multinational Enter-prises. “I began to get interested in thecomplexities, challenges and opportu-nities around Canadian mining invest-ment overseas,” he says, explaining hisdecision to take the job in Ottawa, “par-ticularly because there were severalcross-cutting themes being touchedupon that challenged the traditionaltrade commissioner way of thinkingand approach to promoting business. Inother words, it is a more holistic andcoherent approach to supporting Cana-dian investment overseas, including

venturing into areas such asgovernance, transparency,sustainable development,security and human rights.”

With over 150 locationsglobally, the TCS oftenworks closely with membersof the Canadian mineralsindustry. For example, Nat-ural Resources Canada esti-mates Canadian mininginvestment in Africa to bearound $23 billion dollars,over $4 billion of which is inWest Africa (and even morewhen factoring in invest-ments in oil and gas). Assuch, Rojas-Arbulù’s teamworks continuously withCanadian exploration and

mining companies and suppliers ofequipment and services. “My work willinvolve facilitating the exchange ofknowledge, experiences and lessonslearned in the mining industrybetween Canada and the local govern-ment and, increasingly, advising com-panies on CSR best practices andstandards, as it is an emerging area ofwork for the TCS in Africa,” he says.“At other times, it may involve match-ing the demand with the supply, to putCanadian companies in contact withpotential customers.”

Keeping priorities straightRojas-Arbulù’s wife Melanie goes

with him when he is posted to workoverseas, as do their two dogs, Lupitaand Harry. Although they truly enjoythe experience such relocation offers,it comes with its challenges. “Thereis a lot of work involved in preparingfor a posting overseas and this has animpact on our family’s obligationsand routine,” he says, adding thatoften it is who you are leaving behindthat makes it a tough decision.“Leaving an assignment after several

90 | CIM Magazine | Vol. 6, No. 3

Carlos Rojas-Arbulù with wife Melanie Monette at the Bandia animal reserve,Thies region, Senegal

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years is never easy, as you grow attached to your colleagues, friends and sur-roundings.

In Melanie’s case, she has had to leave her employment in Canada twice (asa counsellor for children who are victims of sexual abuse and their families) andfind new employment abroad or work remotely. “She’s tough and I admire hercourage and perseverance,” says Rojas-Arbulù. “Her previous working experi-ences in Brazil with the Canadian International Development Agency and inGuatemala with the United Nations, has no doubt been instrumental in helpingour family cherish this latest adventure in Senegal.”

Moving away from family is also tough, but Rojas-Arbulù� thanks technol-ogy and the occasional trip to Montreal or his family’s visits to Senegal forsmoothing things over. “One way of ensuring my family has what it needs is tokeep my priorities straight,” he adds. “Family comes first, work comes second.In other words, being available to my family is important to keep the balancein our lives.”

Delighting in diversityRojas-Arbulù� is proud of his heritage and sees it as an asset. “I am Canadian

and I was born in Lima, so I am Peruvian too,” he states. “I speak multiple lan-guages – I’m what you call a neo-Quebecois/Canadian/Peruvian. Canada is avery multicultural country, an open and tolerant society. People from many dif-ferent ethnic and religious backgrounds call themselves Canadians and callCanada their home, while remaining proud of their heritage.”

Having such a diversity of international experience has taught Rojas-Arbulù�the most important trait to bring to any new site, job or location – an openmind. “Every time I have lived or worked abroad, the experience has been dif-ferent,” he explains. “It can be exhilarating because you must find a way toadapt, to make it work for you, and you have to learn the ropes gradually andincrementally. A great lesson for me when I first landed in Senegal, for example,was that it is the ‘land of the Teranga (hospitality) and of the dialogue’ accordingto my new interlocutors. Greetings, hospitality, dialogue and exchanges ofopinions are very important to building the confidence of those with whom Iwish to do business.”

Rojas-Arbulù’s passion for his job is evident. “Managing and leading adiverse, multi-country, highly experienced team of Trade Commissioners inWest Africa is awesome,” he adds. “Being in the field with the troops once againrepresenting Canada – both the challenges and opportunities in serving Cana-dian companies – gets my adrenaline going. It is terribly exciting. It has been along and extremely rewarding journey from Peru to West Africa.” CIM

Rojas-Arbulù (right) with Oscar Berger, former president of Guatemala (red tie), and officers from WESA in2006 during a pitch to President Berger on Canadian waste management technologies.

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CALENDARCALENDRIER

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May 2011 | 91

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author Rory Grunerud is a fourth-year mining engineering student at UBCand founder/captain of the student minerescue team.

COLUMNS | student life

Over the last year, the miningindustry has experienced several high-profile incidents around the globe thathave highlighted the need for bothincreased awareness of undergroundsafety and emergency response-trainedpersonnel. To address this issue, at thestart of this school year, students in themining engineering program at theUniversity of British Columbia (UBC)created Canada’s only university minerescue team, one of only a few studentteams in North America.

An eight-person squad of studentswas assembled to be trained in minerescue, encompassing such disciplinesas firefighting, first aid, patient extrac-tion, ropes deployment, smoke explo-ration and situation risk management.Through the generous support of spon-sors (BHP Billiton, Goldcorp, Shell,Total E&P, Imperial Metals, SMS Equip-ment, Newmont, the Canadian MineralProcessors Society of CIM, Syncrude,MineSight, North American Tungstenand the Association of ProfessionalEngineers and Geoscientists of B.C.[APEGBC]), enough funds were raisedto purchase the bulk of the specializedsafety equipment and supplies neededto outfit an entire team in the first year.To test its mettle, the newly formedteam accepted an invitation to partici-pate in the 1st Biannual UniversityMine Rescue Competition hosted bythe Colorado School of Mines in Den-ver, Colorado, in February.

The team accepted an offer fromGoldcorp to train for a week with theirOntario provincial championship minerescue team based at the PorcupineMine in Timmins, Ontario. We weretrained on the workings of the BG-4closed-circuit breathing apparatus, aswell as on specific tools utilized by amine rescue team, including thermalimagers, immobilization boards,CAREvent automatic resuscitators andvarious types of self rescuers. The train-

UBC mine rescue team takes the leadA year of firsts for students committed to mine safety awareness� Rory Grunerud

92 | CIM Magazine | Vol. 6, No. 3

ing included multiple simulations inwhich complex incidents with evolvingsituations and danger levels were com-pleted. This fostered teamwork andreinforced skills learned, but moreimportantly, helped to develop riskmanagement skills. By the end of theweek, the training experience hadmolded each member by arming themwith basic knowledge to function andoperate as a cohesive mine rescue team.

At the competition in Denver, theUBC team competed against both theColorado School of Mines men’s andwomen’s teams, and Pennsylvania StateUniversity. It was a grueling competi-tion that pushed each team to its men-tal and physical limits, demanding fourhours on oxygen and the extraction oflive casualties that weighed in excess of136 kilograms. It was a fantastic eventthat exposed the teams to a great dealof safety methodologies, new tech-niques, communication and team-work. In the end, our training withGoldcorp paid off as UBC was declaredthe overall winner. In five skill-based

competitions held the next day, wewon three events – rope rescue, patientextraction and fire fighting.

With the first operational year com-plete and a competition victory underour belt, the team is now looking atbecoming more involved in the BritishColumbia provincial mine rescuecompetition and will hopefully field ademonstration team in the next fewyears. At the university level, there hasbeen tremendously positive feedbackfollowing our debut performance andthe dedication shown by the teammembers to a culture of safety. Hope-fully, student mine rescue teams willbe created at other Canadian universi-ties in the near future. In the mean-time, our team will continue topromote the issue of safety and keepworking at perfecting our skill sets. CIM

Team at mine rescue station in Timmins. Kneeling (L to R): Rory Grunerud and Jake Gram; standing (L to R): KyleFoster, Jetzen Loo, Josh Arnaly, Jesse Newmarch, Jose Martinez and Jeff LaMarsh.

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Page 94: CIM Magazine May 2011

At its height, Silver Islet Minewas the envy of the industry,despite the odds stacked

against it. It was, after all, perched on atiny rock off the northern shore of LakeSuperior, where it faced a constantbombardment of storms. Every seasonwas a new battle to keep the waves andthe wind-blown ice from flooding ordestroying the mine.

The story begins in 1868, whenThomas Macfarlane led an explorationteam through the area on behalf of theMontreal Mining Company. In June,they explored a small group of islandsnot far from Thunder Bay, but foundlittle of interest. Finally, they stopped atan unassuming, wind-swept rock just27 metres in length. Cutting through itwas a promising vein. They set blastingpowder and scattered for what littlecover they could find. When theyemerged, team member John Morganspotted silver nuggets glittering in thewater.

The team followed the vein towardsthe shore, looking for better access tothe ore, but the vein held no silverwhere it passed through nearby BurntIsland, nor did anything turn up on themainland. The only access to the silverwas from the barren islet. Macfarlanechristened it Silver Islet and returnedto Montreal with his findings.

Enthusiastic about the quality ofthe silver, Macfarlane recommendedthat the Montreal Mining Companydevelop the site. However, they werenot sure that an exposed islet wouldbe an ideal location, no matter thequality of the ore. Mining it wouldtake significant investment, not tomention a feat of engineering. They

94 | CIM Magazine | Vol. 6, No. 3

Battling Lake SuperiorThe engineering feat of Silver Islet Mine � Correy Baldwin

Silver Islet Mine, following its closure in 1883.

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were not willing to gamble. Theywould look for an American buyer.

Macfarlane was disappointed in thelost opportunity. The first he wouldhear about the sale of the property waswhen William Frue arrived by boat inAugust 1870. Armed with investmentmoney and an enterprising spirit, Fruewent about developing the site withgusto. His men bolted logs together toform a 140-metre-long by four-metre-wide breakwater cribbing, filling itwith rocks. They built a coffer damwithin the breakwater to enclose themine pit and a platform to serve as afoundation for the mine buildings andmachinery.

It was not long before these effortswere put to the test: violent stormsraged throughout that fall and winter.An October storm destroyed half thebreakwater, halting production forthree weeks. Frue doubled the width ofthe cribbing, but ice smashed throughit again during a December storm,dumping almost 3,000 tonnes of rockinto the lake. March was unforgiving,with storm after storm destroying atotal of 15,000 metres of cribbing.

agreed to develop the site, but only tomake it sellable.

Macfarlane was given a tight budgetand instructions to improve the prop-erty and extract as much ore as possi-ble. He hired two miners and sunk ashaft alongside the vein. He then builta wall of timbers to protect the shaftand a rock-filled crib to support theshaft house.

The first battle with the lake camethat fall when a heavy storm tested thestrength of Macfarlane’s structures. Itdid not go well: waves crashed over theshaft house and flooded the shaft.Undeterred, Macfarlane rebuilt andcontinued extracting the silver. Whenwinter approached, he put Morgan incharge and returned to Montreal toreport back to his employers. Tri-umphantly, he handed over the $6,750worth of silver they had mined over theprevious two months and asked for anadditional $50,000.

The company hesitated. Europeaninvestors had been reluctant to invest,and the rest of their properties weredraining their accounts. Despite thepromise of the Silver Islet find, they

Page 95: CIM Magazine May 2011

When spring melted the ice, Frueagain extended the breakwater – itwas now 22 metres wide and sup-ported by five five-metre-high bulk-heads facing out at 45 degrees andholding approximately 50,000tonnes of rock. The workable area onthe islet was expanded to over tentimes its original size, and the minecamp and town were growing as well,eventually accommodating 600workers.

By May 1872, the pit was 40 metresbelow the lake’s surface and water wasconstantly seeping in through the pitwalls. Occasionally, the mine flooded,once when the drills hit an under-ground spring and Frue was forced toupgrade the pumping system againand again. The engine pumps werenow operating 24 hours a day.

The deeper the mine got, the morenervous the men became about themassive weight of water above them.Many left before freeze-up, fearing theunpredictable destruction of the win-ter ice. Their concern was notunfounded: every winter, storms ham-mered Silver Islet. Cribbing was con-stantly ripped away and buildingswere destroyed.

It was an endless battle that pushedFrue’s adaptability and ingenuity as anengineer and businessman. By thetime he left Silver Islet after five yearsas superintendent, it had become themost successful mine in the region,and one of the richest silver mines inthe world.

Those were Silver Islet’s best years.When Richard Trethewey took over in1875, production had already begun toslow. Soon the vein dried up, leavingTrethewey scrambling to locate moreore. A second vein was discovered in1878 and the mine was reinvigorated.Still, the amount of silver in the minewas dwindling, and the payroll with it.

Meanwhile the familiar strugglewith Lake Superior continued. In1881, a major storm smashed throughthe breakwater, destroying buildingsand flooding the shaft. In the end,Lake Superior would have its way.

May 2011 | 95

metres, nearly a quarter mile. Theengines stopped and the shaft slowlyfilled with water.

The mine was abandoned, left to thedevices of Lake Superior, which, footby foot, tore away what remained ofthe Silver Islet Mine. CIM

In 1883, the winter freeze-up cameearly and a supply ship carrying thecoal for the pump engines failed toarrive, becoming stuck in ice off thecoast of Michigan. Silver Islet’s supplywould not last until spring. By March,the mine reached its final depth of 384

Change now or pay soonTargeting diversity to manage the mining labour shortage

The ability to respond to continued global demand for Canada’s resources is threatened by several human resources issues which include an aging workforce and challenges in attracting new talent to the sector. The looming shortage has Canadian mining concerned about where to � nd the talent required to maintain Canada’s status as a world leader in mining and exploration.

Today’s career seekers expect more than just competitive compensation – they are looking for a diverse, inclusive and satisfying work environment that will provide challenging work, recognize employee contributions and value alterative perspectives.

To assist the industry in developing and implementing programs and policies for diversifying its workforce, the Mining Industry Human Resources Council (MiHR) has developed a three-year project, “SHIFT: Changing the Face of Canada’s Mining Industry.”

The � rst report resulting from this project, is “Take Action for Diversity,” which highlights the insights and perspectives of target groups within the mining sector on current challenges to the inclusion of Aboriginal peoples, new Canadians, mature (transitioning) workers, women, youth and people with disabilities.

The information uncovered through the study will be instrumental for MiHR and the Take Action for Diversity Network of partner companies, as they use the � ndings to develop the tools and strategies to strategically enhance inclusive work environments in their operations.

To join the Diversity Network or for more information on SHIFT, please visit www.mihr.ca or contact Mel Sturk: [email protected]

ADVERTORIAL

Funded in part by the Government of Canada’s Sector Council Program

Page 96: CIM Magazine May 2011

Submit your abstract/paper online at: www.cim.org/safetyreliabilityEVENT MANAGEMENT

Zoltan W. Lukacs Robert Washnock Lise BujoldConference Co-Chair - CIM Conference Co-Chair - SME Director of Events, [email protected] [email protected] [email protected]

The inaugural symposium on SAFETY AND RELIABILITY IN THE MININGAND EXTRACTIVE RESOURCE INDUSTRIES is a collaborative initiativebetween the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) and theSociety for Mining, Metallurgy & Exploration (SME).

This first in a series of annual conferences to be jointly hosted by our respectiveorganizations, CIM and SME recognize the importance and value of facilitatingenhanced knowledge-sharing and best-practices exchanges within the North Americanmining community.

Separate conference streams will address topics of safety and reliability with commonsessions exploring the synergy between the two. The program will consist of peer-reviewed technical papers and presentations of operational cases studies with a focuson the cultural and organizational behaviors needed to achieve best-in-classperformance in safety and reliability.

The two-day program will begin with a reception on the evening of October 11th, ajoint plenary on the morning of October 12th, and a combination of technical sessionsand joint discussion forums through October 13th.

The Inaugural Symposium on

SAFETY AND RELIABILITY IN THE MINING AND RESOURCES INDUSTRIESOctober 11 – 13, 2011 | Westin Hotel | Calgary, Alberta, Canada

Topics

• Leadership for an Effective Health

and Safety Culture

• Managing Hazards and Risks

• Health and Safety ManagementSystems

• Applications of BehavioralScience and Technology toImprove Safety

• Contractor Safety Management

• Creating the Vision for Reliability

• Building Blocks for a SuccessfulReliability Program

• Tools and Technologies to EnableReliability

• OEM and Vendor Partnerships forAsset Management

• Case Studies in ReliabilityImprovement

• Innovative Thinking Towards BestPractices in Safety and Reliability

• Cultural and OrganizationalImpacts; Case Studies inOvercoming Barriers toImplementing Change

Important dates

� June 30. 2011Abstract / Paper submission

� July 15. 2011Notification of acceptance

� September 1. 2011Final submission of camera-ready papers

� September 15. 2011Deadline for registration

CALL FOR PAPERS

� � � �� �� � �� �

Page 97: CIM Magazine May 2011

award winner | cim news

Robert Quartermainalways wanted to makesure he was generous withwhat he had. “I’m fromthe Maritimes,” he says byway of explanation, “andwas told you give back.”

As the recipient of the2010 Vale Inco Medal (asof 2011, “Vale Medal”)Quartermain has beenrecognized not only forhis leadership, but for hisgenerosity – to the peo-ple, institutions and com-munities that enabledhim to become what he istoday: a leader in the fieldof precious metals explo-ration and development,and someone keen on fos-tering an interest in geol-ogy in young people and supportingtheir geological education.

Quartermain grew up in St.Stephen, New Brunswick, where hespent his summers working at hisgrandfather’s store, being taught thevalue of money early on. He received abachelor’s in geology from the Univer-sity of New Brunswick (UNB) and hismaster’s in mineral exploration fromQueen’s University. After spendingseveral years with Teck Corporation,he was brought to Vancouver to headup a small exploration company calledSilver Standard. He spent 25 years asthe company’s president and CEO,turning it into one of the world’slargest silver companies.

“When I started at Silver Standard,it was a company of two – myself anda receptionist – and it had a marketcap of around $2 million,” he says.“Ultimately, we took it to a firm ofclose to a thousand people with anoperating mine, 17 projects in sevencountries around the world, and amarket cap that reached $2.7 billion –things I could be proud of as an

Paying it forwardCIM Vale Inco Medal winner fostering an interest in geology

By Correy Baldwin

exploration geologist who was trans-ferred from North Bay, Ontario, toVancouver without any experience atall in public companies.”

Quartermain considers himself justone of a host of successful entrepre-neurs. “This town is full of peoplewho’ve been entrepreneurial that havegood geological technical backgroundand have been able to create a lot ofshareholder value,” he says. Success,Quartermain adds, lies in deployingshareholder’s money wisely, a love ofdiscovery (and focusing that love on“things where you might have a bit ofsuccess”), not being afraid of takingrisks and, of course, surroundingyourself with good people.

The success of Silver Standard pro-vided Quartermain the means to giveback, with much of his efforts focusedon UNB and the province he grew upin. He set up a scholarship at UNB tosupport second- and third-year geol-ogy students, as well as the McAllisterField Trip Fund, which finances fieldtrips to geological sites whereby stu-dents are introduced to the importance

of geological field study.The fund was namedafter the late professoremeritus Arnie McAllis-ter. “He was certainlyinstrumental in mycareer and my goinginto economic geology,”says Quartermain, “andwe were able to buildthe fund in his honour.”

There is also theQuartermain Centre, headds, “an earth sciencecentre at UNB that willfocus on not only teach-ing and providingresources for its stu-dents, but reaching outto school-aged childrenwho will be able to visitthe centre and hopefully

get them thinking about a career ingeology. We have to build into the earlystage of our scholastic system anunderstanding and appreciation for thefact that we use metals every day,” heexplains, adding, “the consequence ofusing them is that we modify the envi-ronment, and we all need to try and dothat as minimally as we can.”

Quartermain also funded a sportsmedicine centre at UNB, in the hopethat “some things might be able to pol-linate between what goes on with geol-ogy and sports medicine. We needhealthy geologists.”

In addition, he has contributed to ahockey arena in St. Stephen, a marinebiology research station in St.Andrews, programs at Queen’s Univer-sity, the University of British Colum-bia’s Norman B. Keevil Institute ofMining Engineering, and the BritanniaMine Museum, as well as other privatefoundations, and work with the Cana-dian Hemophilia Society.

Certainly, his contributions havehad a positive influence on a greatnumber of people. CIM

May 2011 | 97

Robert Quartermain and then-CIM president Michael Allan at CIM Conference & Exhibition 2010.

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InternationalINDIGENOUS SUMMIT onENERGY & MINING

The Assembly of First Nations Invites you to attend the:

June 27-29, 2011Sheraton on the Falls HotelNiagara Falls, Ontario

» Sustainable and responsible resource development;

» Current and future best practices in energy development, including green energy highlights and carbon market updates;

» Economic education related to mining and energy; and,

» The many opportunities for First Nations to contribute to the Canadian and world economies.

» This event will also feature a sector trade fair.

The

SUM

MIT

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focu

s on

:

Please mark your calendars for the June 27-29, 2011 Summit. For your early planning, this event will also include discounted early registration fees of $300 for First Nations/Indigenous participants and $500 for corporate participants registered prior to May 16, 2011.

For more information about the SUMMIT, please visit the AFN website at www.afn.ca or by contacting Karen Hunter by email at [email protected] by telephone at 613.241.6789 ext 203.

Page 99: CIM Magazine May 2011

scholarship winners | cim news

May 2011 | 99

Mary Devine is keepingher options open; Allan Line-gar has his career plansalready mapped out. Both areMemorial University of New-foundland students whorecently received the CIMNewfoundland Branch Silverand Golden Jubilee scholar-ships, respectively.

Silver liningThe annual Silver Jubilee

Scholarship (this year$2,400) is available to stu-dents in their final or penul-timate year in earth sciencesat Memorial University ofNewfoundland. The princi-pal criterion to be consideredfor the scholarship isscholastic achievement,although economic need andcharacter are also taken intoaccount. “The Silver Jubilee Scholar-ship is based on a recommendationfrom the head of the department,”explains Judy Casey, manager of stu-dent scholarships, awards and finan-cial aid at the university.

Devine, 22, this year’s winner, is inher fourth year studying earth sciencesand says that when she graduates in thespring, she would like to begin workingbefore beginning her master’s degree.

After that, she says the sky is thelimit in terms of her career options. “Iwould like to have a job lined up,” sheadds, “but probably not in Newfound-land. I’m open to anything.”

Her interests lie in the chemistryside of earth sciences, although shehas not ruled out all aspects of themining industry. “I’m really interestedin geochemistry and the environmen-tal remediation part of mining,” shesays. “I love to travel, and that’s a nicething about the work – there’s miningeverywhere.” When she is not study-ing, Devine keeps busy with ballet,

Top of the classTwo award-winning students are off to a good start

By Marlene Eisner

jazz and tap dance classes, as well ashiking, canoeing, skiing and camping.

Golden opportunityThe Golden Jubilee Scholarship

(this year $2,000) is available to stu-dents from a number of disciplinesand is not based on a faculty recom-mendation. Instead, a broad numberof students who are eligible for aca-demic scholarships are considered,with the award going to the strongeststudent.

Scholarship winner Linegar, 24, isin his final year of civil engineering.He has always been interested in thestructural side of civil engineering andthought that would be where hiscareer would take him. His work termschanged his mind.

“I’ve got a lot of experience in oiland gas,” he explains, “After workingwith Statoil and ExxonMobil in St.John’s, I knew that was what I wantedto do – I loved it. I really liked the typeof work and what they did. There is a

stigma about oil and once I got inthere, I saw the good side: the focus onsafety is huge and that’s what I reallyliked about it.”

Linegar is attracted to Alberta notonly because of its mountainous ter-rain, where he can enjoy his hobbiesof hiking and snowboarding, butbecause of the oil sands sector, whichhe will soon be working in as a tail-ings engineer for Imperial Oil on theKearl Oil Sands Project. “I’m lookingforward to getting some great fieldexperience,” he says, “and learningmore about the oil sands miningindustry. I’m excited to be involved inthe startup of a new oil sands miningoperation.”

Winning the award has come inhandy for both students. “I used it topay for tuition and books this term,”says Devine. As for Linegar, receivingsuch a prestigious scholarship was notonly an honour, but also a welcomedfinancial boost. “It completely paid formy last term of school,” he says. CIM

Mary Devine, left, testing dissolves oxygen levels in a stream for her honours thesis project. Right: Linegar during a visit to adrilling rig in Cold Lake

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Page 100: CIM Magazine May 2011

MAY 6 TO 9, 2012 • EDMONTON, AB • 6 AU 9 MAI 2012

www.cim.org/edmonton2012

SAVE THE DATE

RÉSERVEZ LA DATE

CIM CONFERENCE &EXHIBITION 2012

MINERALS FOR ALL SEASONS

CONGRÈS & SALONCOMMERICIAL DE L’ICM 2012MINÉRAUX EN TOUTES SAISONS

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Page 101: CIM Magazine May 2011

Bergen, Tanja, Ghanadu Toit, Philip, SaskatchewanAboagye Frimpong, Rolance, Saskatchewan

Adesola, Aderopo, SaskatchewanAlonso, Jean, GhanaAlvani, Shahram, British ColumbiaAsamoah Afrifa, Obed, PeruBallantyne, Sheila, British Columbia

Bambarén, Alfredo, British Columbia

Banfield, Catherine, British Columbia

Barriga-Vilca, Abyahan, British Columbia

Batanghari, Brendan, QuebecBeck, William John, British Columbia

Boucher, Mathieu, QuebecBourchier, Frazer, OntarioBrousseau, Gilles, United KingdomCalder, David G., QuebecChandrasekaran, Raghavan, British Columbia

Charland, Anne, SaskatchewanChow, John, British ColumbiaClarke, Garry, Newfoundland and Labrador

Da Costa, Carlos, QuebecD’Aguiar, Damian, SaskatchewanDe Guire, Philippe, NigerDuff, Robert, QuebecEwenla, Sanmi Stephen, OntarioFarid, Karim, British ColumbiaFusciardi, Leonardo, Saskatchewan

Ghane Ghanad, Iman, British Columbia

Gullen, Ken, British ColumbiaHamilton, Dave, SaskatchewanHannah, Kaitlyn, Nova ScotiaHanson, Aric, OntarioHussain, Zafar, SaskatchewanIslam, Tariqul, AlbertaJudd-Henrey, Ian, OntarioKenyon, Hayley, SaskatchewanKnutson, David, British ColumbiaKratchmer, Mark, British Columbia

Kuikka, Helena, Nova ScotiaLindsay, Nicole, AlbertaLiu, Hung-Wei, USALytle, Murray, QuebecMandal, Subhadip, ChileMartineau, Norman, AlbertaMcRae, Paul, AlbertaMinhas, Tejvir, OntarioMirzabozorg, Arash, AlbertaMoore, Emily, SaskatchewanMorley, Thomas, USAMote, Darrell, Nova ScotiaMoulton, Robert, AlbertaMurray, D. Clark, OntarioNaude, Elize, USANeubert, Marilyn, QuebecO’Hagan, Alfredo, OntarioPal Singh Multani, Jatinder, South Africa

Parish, Robert, OntarioPatrick, Mubiayi Mukuna, ManitobaPiché, David, British ColumbiaPrendiville, Ailbe, AlbertaRautiola, Craig Nathan, Ontario

Rawlings, Amber, OntarioRecalde, Andres, British ColumbiaRiopel, Kaylie, United KingdomRioux, Danny, AlbertaRuff, Ferdinand, USARyan, Mark, OntarioSalifu, Haruna, AlbertaSemjonov, Alina, OntarioSharifi Haddad, Amin, OntarioShaw, Jeff, SaskatchewanSihra, Kamalpreet, OntarioStare, Melanie, OntarioStogran, Melissa, QuebecSuarez, Jose, QuebecTemur, Deniz, SaskatchewanThomas, Richard M., AlbertaThomson, Jarret, SaskatchewanThornton, Tawnya, British Columbia

Vogel, Tyson, Newfoundland and Labrador

Wyllie, Stuart, British ColumbiaZadakbar, Omid, Newfoundland and Labrador

cim news

CIM welcomes new members

May 2011 | 101

September 18-21, 2011 | Fairmont Chateau Lake Louise | Lake Louise, Alberta, Canada

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Page 102: CIM Magazine May 2011

cim news | distinguished lecturer

Mahesh Chaturvedi is recog-nized as a world leader in the areaof superalloys and grain-bound-ary engineering. His pioneeringresearch and work has led tobreakthroughs in superalloy weld-ing. Chaturvedi’s discoveries havehad a profound effect on the aero-space industry, and won him morethan a few awards along the way.

Currently a professor emeritusat the University of Manitoba,

Chaturvedi was a Tier 1 Canada Research Chair in aerospacematerials (2002-2009) and an NSERC Industrial ResearchChair from 1995 to 2005. He was also associate dean of engi-neering for over a decade and associate vice-president ofresearch. As a professor of materials engineering, he has con-tributed extensively to materials education through his lec-tures and was an ASM–IIM Lecturer in 2006.

He also received funds from the Canadian InternationalDevelopment Agency to develop a three-year institutionallinkage program with Khon Kaen University in Thailand, afive-year linkage program with Beijing University of Aero-nautics and Astronautics, and another five-year programwith China’s Lanzhou University to improve the teaching ofmaterials science and engineering.

He is a speaker in this season’s CIM Distinguished Lectur-ers Series, sharing his findings from some of his recentresearch on the role of boron in the design of superalloys.

CIM: Why did you decide it was important to research the role ofboron in the design of superalloys?Chaturvedi: I was doing research on the joining of aerospacematerials and one of the factors I found was that boron isvery detrimental to welding. Boron has been used in high-temperature materials to provide high-temperature strength.So the question is, what does boron actually do in thesealloys and why do we need it?

With that in mind, we started to look at the variousaspects that are affected by boron, both the good and thebad, to see if we could come up with the best possible solu-tion – an optimal concentration of boron that could be pre-scribed for aerospace material. What we found was that, yes,boron is necessary, but not as much as people had been pro-posing and were starting to use. The goal was to minimizethe adverse effects and maximize the beneficial effects.

CIM: What are these key adverse and beneficial effects?Chaturvedi: In any manufacturing process, joining is veryimportant. When you weld materials, there is a fusion zone

Searching for the optimal balanceLeading the way in the world of superalloys

By Alexandra Lopez-Pacheco

where the actual components melt and are joined together asthey solidify. In addition to that, there’s the heat-affectedzone. Very often, materials can crack in fusion zones, as wellas in the heat-affected zones, after the welding has beencompleted during the cooling stage. The adverse effect isthat boron influences the cracking in the heat-affected zone– the larger the amount of boron, the greater the cracking.The flip side of the coin is that the boron improves the high-temperature properties of the material. For example, nickelsuperalloys are used for turbine blades in aircraft engines. Ifyou want to raise the engine to improve its efficiency, youneed to operate it at a very high temperature and you needmaterials that can better withstand that temperature – soyou increase the amount of boron. In doing so, you improvethe mechanical properties of the material at high tempera-tures, but you can’t weld it.

Welding is also used to repair materials. When cracksform you can weld them, but it becomes more difficult torepair if the materials have a high boron content. We have tofind the compromise, the optimal balance.

CIM: Were you able to identify the optimal concentration forboron?Chaturvedi: Yes, there is an optimal concentration. The inter-esting thing is that some of these superalloys were developed50 to 60 years ago when there were not sophisticated meth-ods of conducting research or improving purity. Also, thematerials were not as carefully produced. Discovered by“trial and error,” researchers determined that the optimalrange was 50 to 84 ppm – and they were right. Now, we alsoknow why they were right.

CIM: What does this mean for the metallurgical industry?Chaturvedi: This research will help engine manufacturers andrepairers understand why this cracking occurs. Now, the air-craft industry knows and understands this and they’ll beable to make sure that boron doesn’t exceed the optimalamount; if they want to improve the properties of the mate-rial, they’ll have to follow another process rather thanincreasing the concentration of boron. In addition to theaerospace industry, my research can also be applied to gas-fired and coal-fired power-generation turbines.

CIM: What other research are you working on?Chaturvedi: All of my research is related to high-temperaturematerials for aircraft engines. I’m now working on singlecrystal alloys and their weldability and studying “brazing” –another technique used for joining materials. As well, I’mlooking at different methods of welding, such as fusion and laser. CIM

102 | CIM Magazine | Vol. 6, No. 3

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Upcoming 2011 SeminarsNEW — Certification in Ore Reserve Risk and Mine Planning Optimization (in collaboration with AusIMM)Spread over a period of four months, this four-week course is designed for busy mining professionals who wish to updatetheir skills and knowledge base in modern modelling techniques for ore bodies and new risk-based optimizationmethodologies for strategic mine planning. Gain practical experience by applying the following hands-on concepts andtechnical methods: methods for modelling ore bodies; stochastic simulations, case studies and models of geologicaluncertainty; and demand-driven production scheduling and geological risk.Instructor: Roussos Dimitrakopoulos, McGill University, Canada • Dates: Week 1 – August 22-26, 2011; Week 2 – September 12-16, 2011; Week 3 – October 17-21, 2011; Week 4 – November 7-10, 2011 • City: Week 1 – Perth, Australia; Week 2-4 – Remote • Info:www.mcgill.ca/conted/prodep/ore

Strategic Risk Management in Mine Design: From Life-of-Mine to Global OptimizationLearn how you can have a significant, positive impact on your company’s bottom line by utilizing strategic mine planningmethodologies and software; improve your understanding of strategic mine planning and life-of-mine optimization concepts,as well as your understanding of the relationship of uncertainty and risk, and how to exploit uncertainty in order to maximizeprofitability. Note: The strategic mine planning software used is Whittle; an optional half-day skills refresher workshop onWhittle may be available.Instructors: Cindy Tonkin, Gemcom, Australia, and Roussos Dimitrakopoulos, McGill University, Canada • Date: September 21-23, 2011 • City: Toronto

An Introduction to Cutoff Grade Estimation: Theory and Practice in Open Pit and Underground MinesCutoff grades are essential in determining the economic feasibility and mine life of a project. Learn how to solve most cutoffgrade estimation problems by developing techniques and graphical analytical methods, about the relationship betweencutoff grades and the design of pushbacks in open pit mines, and the optimization of block sizes in caving methods.Instructor: Jean-Michel Rendu, Executive Consultant, Snowden, Australia • Date: September 7-9, 2011 • City: Montreal

Geostatistical Mineral Resource/Ore Reserve 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 andgeostatistical techniques, how to apply geostatistics to predict dilution and adapt reserve estimates to that predicted dilution,how geostatistics can help you categorize your resources in an objective manner, and how to understand principles of NI43-101 and the SME Guide.Instructors: Marcelo Godoy, Golder Associates, Chile, Jean-Michel Rendu, Executive Consultant, Snowden, Australia, and RoussosDimitrakopoulos, McGill University, Canada • Date: September 12-16, 2011 • City: Montreal

Mineral Project Evaluation Techniques and Applications: From Conventional Methods to Real Options

Learn the basics of economic/financial evaluation techniques, as well as the practical implementation of these techniquesto mineral project assessments, how to gain a practical understanding of economic/financial evaluation principles, and howto develop the skills necessary to apply these to support mineral project decisions.Instructor: Michel Bilodeau, McGill University, Canada • Date: October 24-27, 2011 • City: Montreal

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blueprint | cim news

May 2011 | 105

READY, WILLING AND ABLEBy Andrea Nichiporuk

How do you ensure the continued growth, relevance and success of an organization like CIM? By systematically evaluating andrefocusing your strategic plan to ensure you are responding

to your members’ and industry’s needs, and by putting the people, systems and tools in place to support your efforts.

Since last fall, in line with its strategic plan, CIMhas been working towards assembling its team,investing in one of its most valuable tools (and

assets) – its staff.

Currently working to build and/or populate the newassociation/contact relationship management (CRM)system are CIM’s IT and membership departments,both of which are newly formed teams.

Focusing on member servicesMarjolaine Dugas, CIM’s new director of membership,has her sights set on growth. “The health of an organ-ization like CIM depends on the strength of its mem-bership base and the organization’s ability to respondto its members’ current and future needs.” It is withthis goal in mind that Dugas developed a concrete planof action to grow CIM’s membership, increase theoverall level of satisfaction and optimize processes.

The team assembled to carry out this plan includes afew familiar faces: membership coordinator LauraFoley, who is responsible for managing the member-ship database and ensuring constituents needs andrequests are met; Robbie Pillo, newly appointed pro-gram coordinator – membership services, to developand maintain communications and programs with CIMbranches and student chapters; and Jo-Anne Watier,membership assistant, who recently came onboardfull time to manage the retention program and collections.

During the development phase of the CRM, Dugas’ staffhas been working hard to ensure a continued level ofservice. The team is also in the process of identifyingindividual and corporate members’ needs and develop-ing innovative programs to fulfil them. No small feat, anew recruit is expected to come on board shortly toassist with membership initiatives.

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cim news | blueprint

In-house IT expertise“The creation of an IT department within CIM hasallowed us to build our internal competences and keepcosts down, as we no longer are reliant on outsidesources,” says Gérard Hamel, CIM’s new IT director.“We are becoming self-sufficient and this will help usgrow.”

Hamel’s team comprises Lorent Dione, a web program-mer-analyst; Martin Doré, a programmer; and RobertGarcia, a computer and applications analyst. Dione isresponsible for developing web applications, includingconceptualizing, developing, testing and implementing,as well as overseeing the system after implementation.Assisting in the conceptualization, development andtesting is Dione, who will also be called upon to trou-bleshoot, research solutions and carry out diagnostictests to ensure the new system runs smoothly. Garcia,on the other hand, is tasked with ensuring the day-to-day running of CIM National’s IT systems, including trou-bleshooting and managing and maintaining equipment.

While Hamel’s team is busy building the infrastruc-ture, a fourth member (albeit temporary) was neededto tackle the revision of the content of the website,before it could be transferred to the new site. HartleyButler George is revising and updating existing con-tent and creating new and original content, targetinginformation to specific audiences to ensure that allcontent is relevant and useful.

With the people in place and systems being developedto support processes, initiatives and future endeav-ours, CIM is now poised to carry out its strategic plan,ensuring the Institute’s longevity and increasing rele-vance to not only its members, but the global miningindustry. CIM

by Andrea Nichiporuk

Programming is underway on elements of Phase1 of the IT overhaul project:

• Web service setup (architecture andprototyping)

• Authentication and authorization(authentication and username/passwordrecovery)

• Member services (user profile and “My CIMAccount” creation, accepting membership andrenewal payments, and accessingmembership directory)

• Product sales (shopping cart, relatedproducts, checkout, CMMF donations andelectronic payment)

• Publications and technical resources(publication pricing display and “add to cart”functionality)

• Events (event pricing display and eventregistration)

• Societies and branches (“My CIM Accounts”for branches and societies)

• Awards (career opportunities and CIMDistinguished Lecturers Program)

“From now until the end of the year, we will beworking on piecing together these elements,”says Gérard Hamel, CIM’s IT director. Heanticipates that by the end of 2011, the first partsof the new website will be live to the public.

IT Project Update

STRENGTH IN NUMBERSCIM moves ahead with society reorganizationBy Hartley Butler George

The secret to CIM’s longevity lies in its ability toadapt to members’ needs within the context of anever-evolving industry. Today, at 113-years young,

the organization is transforming the structure of itssocieties to revitalize the exchange of knowledge andbest practices that has been the foundation of the Insti-tute. At the CIM Council meeting held this past March,the Council approved the reorganization of three of its12 existing societies.

The Metal Mining Society, Coal and Industrial Minerals Soci-ety and Oil Sands Society will be amalgamated to create twonew groups: the Underground Mining Society and the SurfaceMining Society. The Metal Mining Society is set to become theUnderground Mining Society and the new Surface MiningSociety will be formed from members of the Oil Sands, theCoal and Industrial Minerals and the Metal Mining societiesthat have an interest in surface mining. This reorganizationwill take effect after the CIM Council meeting in May.

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CIM’s Society for Innova-tive Mining Technologieschair Zoltan Lukacs alsobelieves that in turn,larger, more focusedgroups will deliver amore relevant programacross the board,strengthening CIM’s con-ferences, meetings andtechnical content. Inaddition, the reorganiza-tion will relieve the com-petition for financial andvolunteer resources, saysBruce Bernard, chair ofthe Coal and IndustrialMinerals Society.

Gone but not forgottenMetal Mining Societychair Tony Georgebelieves that in order toremain relevant andensure longevity, organi-zations like CIM have toconstantly evaluate howthey represent and serve

their members. “This changes with time and technol-ogy,” he says, “and the societies within the organizationhave to adapt accordingly.”

CIM remains sensitive to its societies’ individual lega-cies and is encouraging them to find ways to preservetheir respective heritages. Going forward, the organiza-tion is working towards making such adjustments aseasy as possible on its members.

The societies affected by this change can choose to ded-icate their existing finances to a legacy fund, whichwould be in the form of a scholarship or an endowmentadministered by the Canadian Mining and MetallurgicalFoundation. A proposal was also made by the SurfaceMining Society for the creation of a “heritage” commit-tee, which, if adopted, would work through CIM to pre-serve the history of the societies.

New beginningsThe next step will be to firm up the scope of activities foreach society. During the May Council meeting, eachsociety will present its new or updated executive struc-ture, bylaws, funding plans and charter. Once approved,the new societies will become operational and repre-sent the members and industry sectors they serve in amore relevant and efficient way. CIM

May 2011 | 107

blueprint | cim news

Small changes, big impact“The amalgamation is not about fewer societies, it isabout a more logical structure to better support ourmembers and their professional aspirations,” saysCIM president Chris Twigge-Molecey. He went on toexplain that within the three existing societies, sev-eral groups share technical, operational, equipment,and management issues, yet they are essentiallycompeting against one another for the same demo-graphic and addressing similar topics in conferencesessions.

Both new societies will be comprised of several groupswith communities and technical issues that are specificto their commodities and geographies. The new struc-ture will incorporate a technical director for each ofthese commodity groups, such as coal, oil sands, dia-monds and base/precious metals, who may collaborateto deliver relevant technical content at events and toCIM publications.

Incoming CIM president Chuck Edwards believes thatthis change will greatly benefit individual members.“By refocusing those who work in the same technicalfields, members will have a chance to talk to others intheir line of work,” he says. “They will learn new infor-mation and make more relevant contacts.”

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L’Université du Québec en Abitibi-Témiscamingue(UQAT) et l’Institut canadien des mines, de la métal-lurgie et du pétrole (ICM) vous invitent à Rouyn-Noranda, Québec, Canada, du 6 au 9 novembre2011, à l’occasion du Symposium 2011 sur l’envi-ronnement et les mines.

Le Symposium est le résultat d’une collaboration entrela Chaire CRSNG Polytechnique-UQAT en environ-nement et gestion des rejets miniers, l’Unité derecherche et de service en technologie minérale

(URSTM), l’Association minière du Québec (AMQ), le Pro-gramme de neutralisation des eaux de drainage dans l’en-

vironnement minier (NEDEM), le ministère des Ressourcesnaturelles et de la Faune du Québec (MRNF) et l’industrie.

Les objectifs du Symposium visent à partager les connais-sances les plus récentes et à discuter des expériences

pratiques afin de « trouver des solutions pour con-cilier rentabilité et protection de l’environ-nement ».

Chaire CRSNG Polytechnique - UQATen environnement et gestion des rejets miniers

Dimanche 6 novembre : Cours intensifLundi et mardi 7 et 8 novembre : Programme technique portant sur :

• Rejets de concentrateur• Remblayage souterrain

• Roches stériles• Politique et réglementation & Mines

et société• Qualité des eaux• Restauration des sites

• Nouvelles tendances

Mardi 8 novembre : Séance plénièreMercredi 9 novembre : Visites de sites

Un salon commercial se tiendra aussi parallèlement au programme technique des 7 et 8 novembre.

Suivez les publications de l’ICM pour plus de détails et visitez notre site web (accessible prochainement) à : www.cim.org/Symposium2011

Pour plus d’information, contactez : Chantal Murphy (ICM) : 1-800-667-1246

SYMPOSIUM 2011 • ROUYN-NORANDASUR L’ENVIRONNEMENT ET LES MINES • MINES AND THE ENVIRONMENT

À METTRE IMMÉDIATEMENT À VOTRE AGENDAROUYN-NORANDA, QUÉBEC, CANADA — LES 6, 7, 8 ET 9 NOVEMBRE 2011

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PRÊTE, DISPOSÉE ET COMPÉTENTEComment assurer la croissance soutenue, la pertinence et la réussite

d’une organisation comme l’ICM? En prenant soin d’évaluer et de réorienter son plan stratégique de façon systématique afin

de s’assurer de répondre aux besoins des membres et de l’industrie,mais aussi en recourant à des systèmes, des outils et du personnel

pour appuyer les efforts déployés.

Depuis l’automne dernier, conformément au planstratégique, l’ICM a travaillé pour former uneéquipe, en misant ainsi sur l’un de ses outils (et

atout) le plus précieux : son personnel.

Les deux équipes récemment formées, soit les servicesdes TI et de l’adhésion, sont présentement à l’œuvre pourconstituer et/ou alimenter le nouveau système de gestiondes relations avec la clientèle (GRC) de l’association.

Accent sur les services destinés aux membresMarjolaine Dugas, nouvelle directrice des services auxmembres, mise sur la croissance. «  La santé d’uneorganisation comme l’ICM repose sur la force del’ensemble de ses membres et la capacité de l’organi-sation à répondre aux besoins actuels et futurs de cesderniers.  » C’est avec cet objectif à l’esprit que MmeDugas a mis sur pied un plan d’action concret pour aug-menter le niveau de satisfaction des membres, accroîtrele nombre de membres et optimiser les processus.

L’équipe en question qui doit mettre en œuvre le plancompte notamment des visages familiers  : RobertinaPillo, coordonnatrice de programmes, qui veille àdévelopper et maintenir la relation et les programmesavec les sections locales et les chapitres étudiants;Laura Foley, coordonnatrice, est responsable des mem-bres et est en relation avec les sections locales pour lagestion de leur base de données; Jo-Anne Watier,assistante, est responsable de la collection et des pro-grammes de rétention. 

Pendant la phase d’implantation des outils informa-tiques, le personnel de Mme Dugas a travaillé très fortpour assurer le maintien du service. À l’heureactuelle, l’équipe étudie les besoins à la fois dessociétés membres, des membres individuels et cor-poratifs afin de mettre sur pied des programmesnovateurs pour les combler. Compte tenu de l’ampleurde cette tâche, un nouvel employé se joindra àl’équipe sous peu pour contribuer à établir desmesures favorisant l’adhésion.

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Nous avons entamé la programmation deséléments de la phase 1 du projet de révisiondes TI :• Mise en place d’un service Web (architec-

ture et prototype)• Identification et autorisation (identification

et récupération des noms d’utilisateur/motsde passe)

• Services destinés aux membres (créationd’un profil d’utilisateur et d’un compte« Mon compte ICM » qui accepte lespaiements des droits d’adhésion et derenouvellement, et qui permet l’accès aurépertoire des membres)

• Ventes de produits (panier, produits con-nexes, fin de session, dons CMMF etpaiements électroniques)

• Publications et ressources techniques(affichage des prix de publication et fonction« Ajouter au panier »)

• Événements (affichage des prix des événe-ments et inscription)

• Sociétés et divisions (compte « Mon compteICM » pour les sociétés et les divisions)

• Prix (perspectives de carrières et programmede conférenciers distingués de l’ICM)« À compter d’aujourd’hui, et ce, jusqu’à la fin

de l’année, nous travaillerons afin de réunir tousces éléments », précise Gérard Hamel, directeurdes TI de l’ICM. Il prévoit que d’ici la fin de l’année2011, les premières sections du nouveau siteWeb seront accessibles au grand public.

Mise à jour relative au projet de TI

cim news | plan stratégique

LA FORCE DU NOMBREL’ICM poursuit la réorganisation de ses sociétés

Société des sables bitumineux vont fusionner pour for-mer deux nouveaux groupes : la Société d’exploitation àciel ouvert et la Société d’exploitation minière souter-raine. La Société de l’exploitation des mines et desmétaux deviendra ainsi la Société d’exploitation minièresouterraine et la nouvelle Société d’exploitation à cielouvert sera composée des membres de la Société dessables bitumineux, de la Société du charbon et desminéraux industriels, ainsi que des membres de laSociété de l’exploitation des mines et des métaux quis’intéressent à l’exploitation de surface. Cette réorgani-sation entrera en vigueur après la réunion du conseil del’ICM en mai.

Le secret de longévité de l’ICM repose dans sacapacité d’adaptation aux besoins de ses mem-bres au sein d’une industrie en constante évolu-

tion. Aujourd’hui âgée de 113 ans, l’ICM procède à larestructuration de ses sociétés afin d’insuffler undynamisme nouveau au partage des connaissances etdes meilleures pratiques de l’industrie, fondementmême de l’Institut. À la réunion du conseil de l’ICM, quis’est tenue en mars dernier, le conseil a approuvé laréorganisation de trois de ses 12 sociétés existantes.

La Société de l’exploitation des mines et des métaux, laSociété du charbon et des minéraux industriels et la

110 | CIM Magazine | Vol. 6, No. 3

Spécialistes en technologies de l’information (TI) sur place« La création d’un service des TI au sein de l’ICM nous a permisd’accroître nos compétences à l’interne tout en minimisant noscoûts, puisque nous dépendons de moins en moins deressources externes  », au dire de Gérard Hamel, nouveaudirecteur des TI de l’ICM. «  Nous devenons de plus en plusindépendants, ce qui contribuera à notre croissance. »

L’équipe de Monsieur Hamel se compose de Lorent Dione, pro-grammeur-analyste Web, Martin Doré, programmeur et RobertGarcia, analyste d’applications informatiques. M.  Dione acomme mandat de développer des applications Web, ainsi quela conceptualisation, le développement, l’implémentation et lesuivi des systèmes après leurs implémentations. M. Doré con-tribue à la conceptualisation, au développement, à l’évaluation,au diagnostic, à la résolution de pannes, ainsi qu’aux des testsde diagnostic afin de s’assurer que les systèmes fonctionnentconvenablement. De son côté, M. Garcia s’assure du fonction-nement quotidien des systèmes des TI nationaux de l’ICM. Ilprocède au diagnostic des pannes et à l’entretien et maintiendu matériel informatique.

Pendant que l’équipe de M. Hamel s’affaire à la mise sur piedde l’infrastructure, un quatrième membre (temporaire) étaitnécessaire pour l’examen des données du site Web avant leurtransfert au nouveau site Web. M. Hartley Butler George réviseet met à jour le contenu actuel et rédige du nouveau contenu. Ilveille à ce que l’information vise des destinataires particuliersafin de s’assurer de sa pertinence et de son utilité.

Alors que les membres du personnel sont en place et que dessystèmes sont développés pour appuyer les processus, lesmesures prises et les projets futurs, l’ICM est maintenant prêteà exécuter son plan stratégique pour assurer la longévité de l’In-stitut et accroître sa pertinence non seulement aux yeux de sesmembres, mais devant l’ensemble de l’industrie minière. ICM

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Le président de la Société destechnologies minières innovatri-ces de l’ICM, Zoltan Lukacs, croitaussi que la formation degroupes plus larges et ciblés per-mettra de fournir un programmesystématiquement plus perti-nent, améliorant ainsi les con-férences, les réunions et lecontenu technique de l’ICM. Deplus, Bruce Bernard, présidentde la Société du charbon et desminéraux industriels affirme quela réorganisation contribuera àréduire la compétition au niveaudes ressources financières et desbénévoles.

Disparues, mais nonoubliéesTony George, président de laSociété de l’exploitation desmines et des métaux, est de l’avisque pour s’assurer de la longévité

et de la pertinence d’organisations telles que l’ICM, uneréévaluation périodique de la manière dont ellesreprésentent et servent leurs membres est essentielle.« Ceci évolue avec le temps et les technologies », dit-il,«  et les sociétés au sein de l’organisation doivents’adapter en conséquence. »

L’ICM demeure sensible à l’apport individuel de chacunede ses sociétés et les encourage à trouver des moyenspour préserver leurs patrimoines respectifs. Allant tou-jours de l’avant, l’organisation tente de faciliter autantque possible de tels changements pour leurs membres.

Les sociétés touchées par cette modification peuventchoisir de consacrer leurs finances actuelles à un fondsdu patrimoine, sous forme de bourse ou de fondationgérée par la Fondation canadienne des mines et de lamétallurgie. La Société d’exploitation à ciel ouvert aproposé la création d’un comité « patrimoine »; si cetteproposition était adoptée, le comité travaillerait avecl’ICM à la préservation de l’histoire des sociétés.

Nouveaux départsLa prochaine étape sera de limiter les champs d’activ-ités de chaque société. Dans le cadre de la réunion duconseil du mois de mai, chacun(e) présentera sa struc-ture de direction, ses règlements administratifs, sesprogrammes de financement et ses chartes, qu’ilssoient nouveaux ou simplement remis à jour. Une foisapprouvées, les nouvelles sociétés deviendront opéra-tionnelles et représenteront de manière plus pertinenteet efficace les membres et les secteurs de l’industriequ’elles servent. ICM

Changements modestes, effet grandiose« La fusion n’a pas pour but de diminuer le nombre desociétés, mais plutôt d’offrir une structure plus logiqueà nos membres en vue d’appuyer plus efficacementleurs aspirations professionnelles  », affirme le prési-dent de l’ICM, Chris Twigge-Molecey. Il poursuit enexpliquant qu’au sein des trois sociétés existantes,plusieurs groupes partagent les mêmes enjeux sur leplan technique, opérationnel, matériel et en matière degestion, mais qu’ils se retrouvent essentiellement dansun contexte de compétition pour les mêmes stratesdémographiques et abordent des sujets similaires lorsde séances de congrès.

Les deux nouvelles sociétés comprendront plusieursgroupes dont les communautés et les enjeux tech-niques seront propres à leurs produits et leur géogra-phie. La nouvelle structure comportera un directeurtechnique attribué à chacun de ces groupes de produitstels que le charbon, les sables bitumineux, les diamantset les métaux communs/précieux. Cela permettra ainsiaux groupes de mieux collaborer afin de fournir du con-tenu technique pertinent aux événements divers et auxpublications de l’ICM.

Le nouveau président de l’ICM, Chuck Edwards, est per-suadé que les membres bénéficieront considérable-ment de ce changement. « En réunissant ceux et cellesqui travaillent dans les mêmes branches techniques,les membres auront la possibilité d’échanger avecd’autres personnes de la même profession », dit-il. « Ilsapprendront de nouvelles choses et créeront des con-tacts plus pertinents. »

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economic geology

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The foundations of modern economic geology (Part 3)By R. J. “Bob” Cathro, Chemainus, British Columbia

Two other prominent mining engineers who made important contributions tothe emerging field of economic geology were Rossiter W. Raymond and RichardP. Rothwell. Both had received unusually broad educations. Rothwell (1836-1901), the eldest by four years, was born in Oxford, Ontario. After studies atTrinity College in Toronto, he graduated in civil engineering from the RensselaerPolytechnic Institute (Troy, New York). He then took a three-year course at theImperial School of Mines (Paris) followed by further studies at the Bergakademie(Freiberg, Germany).

Raymond (1840-1918) was born in Cincinnati and educated at the BrooklynPolytechnic Institute, the Bergakademie, and at Heidelberg and Munich universi-ties. In 1868, he earned a PhD from Lafayette College (Easton, Pennsylvania); hewas a lecturer on economic geology there from 1870 to 1882 and also taught theentire course on mining engineering for one year. In addition, he became anexpert on mining law and was admitted to the bar of the New York SupremeCourt and the Federal District and Circuit courts in 1898, and lectured on mininglaw at Columbia University in 1903.

Both men recognized that the technical capacity of the industry had to growin order to provide the raw materials for an increasingly complex industrial econ-omy. They were instrumental in organizing a meeting in Wilkes-Barre,Pennsylvania, on May 16, 1871 to establish the American Institute of Mining

Engineers (AIME), where the 22 men present chose Rothwell as provi-sional chairman and Raymond as provisional secretary. Wilkes-Barre,where Rothwell lived, was close to the Wyoming Valley coalfield and animportant Pennsylvania mining centre.

At the first business meeting the following day, the members presentapproved the credentials of 71 applicants as associates. Pennsylvania-basedengineers filled 13 of the 18 elected positions, with Raymond serving as avice-president and Rothwell as a manager (Raymond soon took over thepresidency when the elected president retired due to ill health, asexpected). Rothwell then delivered the Institute’s first technical papertitled “The Waste of Coal in Mining.” The next day, three more papers werepresented, including one by Raymond on stamp milling. The first volumeof the Transactions, containing the 17 papers presented at the Wilkes-Barremeeting and another conference at Bethlehem, Pennsylvania, included sixthat dealt with mining methods (including one on diamond drilling), fiveon geological topics, four on milling and metallurgy, and two on smelting.

The year 1871 was a significant time for the creation of AIME. It was acrucial period for the U.S. mining industry, which was dominated by theproduction of bituminous and anthracite coal, petroleum, salt, pig iron,gold and silver. The Drake well, near Titusville, Pennsylvania, had beendiscovered 12 years earlier, with the oil used mainly for kerosene lamps.The light fraction, known as gasoline, was something of a nuisance, andrefiners produced as little of it as possible. The first electric light bulb wasstill eight years in the future, and the gasoline-powered automobile did notarrive until 1892.

Pig iron was mostly produced from magnetite ores in the eastern states,which would soon be replaced by high-quality hematite ores fromMichigan. Steel production was about to grow substantially as it became

The time has come when scientific research is

to assume its true position… the physicist, the

geologist and mineralogist, the chemist, the

engineer, are as essential to success as the

blast furnace itself… We summon to our aid

all that science can afford, mechanical inge-

nuity devise, money purchase and energy and

ability achieve, and when this is done, we fain

must confess how little we have accom-

plished and how little we know compared with

the vast possibilities that lie before us.”

~Pechin, 1872

Architect’s drawing of the Engineering Societies Building at 29West 39th Street, New York, opened in 1907 (Parsons, 1971)

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economic geology

May 2011 | 113

recognized as superior toiron for the production ofrails for the railways. JohnRoebling had just built thefirst suspension bridge, atCincinnati, from iron andproceeded to build a muchlonger bridge betweenBrooklyn and Manhattanentirely of steel. The highestbuildings were massivestructures of up to eight or10 stories built of naturalstone; the first skyscrapersbuilt with steel frames com-menced 20 years later.

The small market for copper was supplied almost entirelyby native copper mines in Michigan until Butte began tosupply the growing needs of the electric power industryaround 1890 (Cathro, 2009). Butte was still a silver campwhen AIME was formed. Portland cement was manufac-tured in the United States for the first time in 1871 at a smallplant in Allentown, Pennsylvania. Its market soon expandedtremendously as concrete became indispensable for con-struction and road building. Three mineral products of vitalimportance in an industrial economy were unknown in theU.S. in 1871 – sulphur, aluminium and magnesium.

Raymond, who was described as ”a most able and benef-icent autocrat,” dominated the Institute during its first 40years. He served three terms as president and was secretaryfor 27 years (1884-1911), during which time he edited thefirst 40 volumes of the Transactions. He also presented morethan his share of papers and discussed others on almostevery subject. His amazing versatility was credited partly tohis service from 1868 to 1876 as U.S. Commissioner ofMining Statistics, which required repeated visits to westernmining districts. Equally important was his ability to absorbdetails of geology, mine operation and ore treatment.

By presenting mining geologists around the world with aprominent venue for publishing their observations andresearch, the importance of AIME and the Engineering andMining Journal (EMJ) to the emergence of economic geologyas a new branch of the science is impossible to exaggerate.According to Parsons (1971), “In Volume 1, geology, metalmining, ore dressing, and nonferrous metallurgy were alladequately represented. The first 40 volumes of Transactionsthat appeared up to 1911 were generally recognized as themost extensive and authoritative library extant on engineer-ing and technology in the mineral industry.”

The importance of these meetings and publications tothose working outside North America was obviously vital,and the Institute was eventually duplicated in most majormining countries. In the first 40 years, 99 general meetingswere held, most of them occupying several days and someextending for a much longer period. Only 12 were held in

New York. Canada hostedseven: Montreal, September1879; Halifax, September1885; Ottawa, October 1889;Montreal, February 1893;Canada, August 1900;Vancouver plus field trips inBritish Columbia and Yukon,July 1905; Toronto, July1907; and Canada again inAugust 1923. Meetings werealso held in Mexico in 1901,London in 1906 and Panamain 1910. All papers were readbefore a single plenary session.

AIME may have invented the modern technical meetingformat by invariably combining the technical sessions withvisits to mines, quarries and plants of all sorts, includingconcentrators, smelters, rolling mills, oil refineries, navyyards and cement plants, as well as mining schools, researchlaboratories and museums. On several occasions, such as theCanadian meetings, the Institute arranged special boats ortrains for extended excursions over large regions.

Membership in the Institute increased steadily to about8,500 in 1922, declined to 7,000 by 1935 and then grewquickly to 35,000 in 1970. Some of AIME’s more notableevents include: establishing temporary headquarters for theCentennial Exposition in Philadelphia in 1876, and partici-pating in the World’s Columbian Exposition in Chicago in1893 to raise funds to support the mining and metallurgicaldepartments attending the World Engineering Congress,held in conjunction with the Chicago exposition.

After renting several cramped offices in New York, theInstitute moved into rented space in the new Phelps Dodgebuilding in 1899. The following laconic and momentous let-ter was received in 1904:

“Gentlemen of The Mechanical Engineers, Institute of Mining Engineers,

Institute of Electrical Engineers, Engineers Club of New York:

It will give me great pleasure to devote, say, one and a half million dollars for the erection of a suitable Union home for you all in New York City.

With best wishes.Very truly yours,

Andrew Carnegie”

The American Society of Civil Engineers, which alreadyowned its own building, chose not to participate, and theEngineers Club decided to build its own building nearbywith assistance from Carnegie. Land was purchased at 29 West 39th Street near the New York Public Library, with funds separate from the Carnegie gift, and the new

Rossiter W. Raymond (1840-1918)

Richard P. Rothwell (1836-1901)

Phot

os: A

IME

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AcknowledgmentsThe early history of the AIME is mostly derived from

Parsons (1971), and Rickard (1920) provided much of thebiographical information about Raymond. CIM

ReferencesCathro, R. J. (2009). Butte, Montana (part 2). CIM Magazine, 4(3), p. 81-83.

Parsons, A. B. (1971). History of the Institute, Part I: 1871-1946. Centennial History ofthe American Institute of Mining, Metallurgical and Petroleum Engineers 1871-1970.New York: AIME, p. 7-135.

Pechin, E. C. (1872). Quotation from a paper presented at the Sixth General Meeting ofAIME in Pittsburgh, October 1872, and published in the Transactions. In Parsons(1971), p. 13. (Pechin was a steelmaster based in Dunbar, Pennsylvania)

Rickard, T. A. (Ed.) (1920). Rossiter Worthington Raymond: A Memorial. New York: TheAmerican Institute of Mining and Metallurgical Engineers, 95 p.

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headquarters, named the Engineering Societies Building,was ready for occupancy in April 1907. Two of its main fea-tures were a library occupying most of three floors and anauditorium seating 900. Members of the founding societiesliving in the United States or Canada could borrow up tothree volumes for up to two weeks for 25 cents per volumeper week. In 1916, the Civil Engineers changed theirminds and moved in as well, together with several smallerengineering societies that rented space. In the words ofParsons (1971): “The Engineering Societies Building is therecognized focal point for the engineering profession in theUnited States. Without unbecoming conceit it may be saidthat no engineering centre elsewhere in the world rivals itin importance.”

The 1918 death of Raymond, known as the ”Grand OldMan of the Institute,” was marked by a memorial service topay tribute to his contributions to the professional develop-ment of mining engineering and economic geology(Rickard, 1920). It was held at the Institute’s New York officein February 1919. Among the dozen speakers were such dig-nitaries as James F. Kemp, professor of geology, and HenryM. Howe, professor of metallurgy, both from ColumbiaUniversity.

Henry S. Drinker, president of Lehigh University,described Raymond as “one of the most remarkable cases ofversatility that our country has ever seen – sailor, soldier,engineer, lawyer, orator, editor, novelist, storyteller, poet,biblical critic, theologian, teacher, chess player – he wassuperior in each capacity. What he did, he always did well.”Among the high praises given to Raymond were several thatapplied to his geological contributions: “All technical writ-ing in the English language has felt … the inspiration thathe gave while editor of the Transactions”; “he induced theofficers of the Geological Survey to present their scientificinduction to the Transactions in a form that rendered themattractive to the mining profession”; “he left an enduringmark on the jurisprudence of mining … (and) achieved dis-tinction as an expert witness in the litigation arising fromattempts to apply the law of the apex”; and “by his under-standing of geology, his knowledge of Western mining con-ditions, and the zest with which he pursued the applicationof geology to mining, he aided greatly in exciting intelligentinterest in the genesis of ore deposits.”

While the career and contributions of Richard Rothwellwere also outstanding, those of Raymond overshadowed hisaccomplishments, like those of all his peers. In addition tohis 28-year term as editor of the Engineering and MiningJournal, Rothwell was also the publisher of an annual seriestitled “The Mineral Industry: Its Statistics Technology andTrade.” In 1892, he served as president of AIME. He was alsoan inventor who developed some new machinery for mak-ing wire rope, based on experience gained while working fora cable and wire rope manufacturer in London. After hereturned to the United States, he worked for nine years inthe Pennsylvania coalfields.

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Ashio miners’ riot in Japan (1907)In the 1890s, the Ashio Copper Mine

was releasing caustic effluents into theWatarase and Tone rivers, thus destroyinglarge portions of the Kanto Plain. With thelivelihood and health of thousands offarmers at stake, the case quickly becamea problem for Meiji social reformers. Adecade later, in 1907, the Ashio minerserupted and went on a three-day riot, anunprecedented event in Japanese labourhistory.

Iquique Massacre in Chile (1907)In the early 1900s, the nitrate mining

companies in Chile exercised extremecontrol over their employees. Workersrepeatedly petitioned the government tobring about improvements in their livingand working conditions; however, their reluctance to inter-vene brought about massive demonstrations. On Decem-ber 10, 1907, a general strike broke out in the TarapacáProvince. Thousands of striking miners travelled toIquique and set up camp at the at the Domingo Santa MaríaSchool. On December 16, thousands of striking workersfrom other industries arrived in support of the nitrate min-ers. On December 21, acting on the instructions receivedfrom the Minister of the Interior, the army commanderinformed strike leaders that the strikers had one hour todisband or be fired upon. But the strikers stood firm. Anorder was given and the Chilean army opened fire on thestrikers and their accompanying families. The death tollresulting from the massacre is estimated at more than2,000. The government ordered that the dead be buried ina mass grave in the city cemetery. The ensuing reign of ter-ror paralyzed the workers’ movement, and for more than adecade, any knowledge of the incident was suppressed bythe government.

The nitrate miners’ strike was one of a series of strikesand other forms of unrest that took place at the beginning ofthe 20th century, chief among them being the strike in Val-paraíso in 1903 and the meat riots in Santiago in 1905. InChile, the workers’ movement in general, and syndicalism inparticular, started with the nitrate miners. However, it wasonly in 1920 that minimum labour standards, such as set-ting the maximum length of the work day, started to beenacted. In 2007, the Chilean government commemorated

Social problems in the mining industry: a historical essay (Part 3)By Fathi Habashi, Laval University, Quebec City

the centennial anniversary of the Iquique Massacre by estab-lishing a national day of mourning.

Tonypandy riots in South Wales (1910-1911)The Tonypandy riots of 1910 and 1911 were a series of

violent confrontations between coal miners and policethat took place at various locations in and around themines in South Wales. Conflict arose when the Naval Col-liery Company opened a new coal seam at the Ely Pit inPenygraig and the owners began claiming that the minerswere deliberately working slowly. The miners, however,argued that the new seam was difficult to work andbecause they were paid according to tonnage of coalremoved (as opposed to hourly), working at a slower pacewould be to their disadvantage. The miners went onstrike, but in August 1910, the company posted a lock-outnotice at the mine.

Riots ensued and on the evening of November 8, 1910,strikers smashed windows of mining officials and those ofthe shops in the town. The owners then called in replace-ment workers. The miners responded by picketing the worksite and were soon joined by thousands of others who hadsucceeded in shutting down all the local pits, except for one– Llwynypia Colliery. Military support from then BritishHome Secretary Winston Churchill was requested andtroops were sent in to control the situation. In the end,nearly 80 policemen and more than 500 others were injured;only one miner died as a result of his injuries.

Confrontation in South Wales

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Ludlow Massacre in Colorado (1913)One of the bloodiest labour conflicts in Colorado’s his-

tory was the massacre at Ludlow, located 19 kilometresnorthwest of Trinidad. While relations between coal minersand mining corporations in the state had been poor for morethan a decade, it was the refusal of John D. Rockefeller’s Col-orado Fuel and Iron Company and several smaller mineoperators to recognize the union that spurred more than8,000 miners to strike in September 1913. They demandedunion recognition, a 10 per cent wage increase and enforce-ment of the eight-hour day.

Evicted from company-owned housing, the strikingminers, comprised mostly of Slavic, Greek and Italianimmigrants, formed their own tent colony. Over the nextseveral months, sporadic violent confrontations betweenminers and the state militia marred the coalfields. Despitefederal mediation efforts, John D. Rockefeller, Jr. refusedto concede.

On April 20, 1914, a day-long gun battle broke outbetween the state militia and miners, culminating in anattack on the tent colony that took the lives of 10 male strik-ers, two women and 12 children. Over the next several days,miners retaliated by setting fire to mine buildings. By theend of the month, U.S. president Woodrow Wilson orderedfederal troops to Ludlow. After more than six months ofunsuccessful mediation, miners called off the strike.

In response to the Ludlow massacre, leaders of organizedlabour in Colorado issued a call to arms, urging unionmembers to acquire all the arms and ammunition legallyavailable; a large-scale, 10-day guerrilla war ensued. Stillreeling from the murder of their women and children,between 700 and 1,000 enraged and grief-stricken strikersattacked mine after mine, driving off or killing the guardsand setting fire to buildings. Hundreds of militia reinforce-ments rushed back into the strike zone. The fighting endedonly when Wilson sent in federal troops. At least 50 people,

including those at Ludlow, were killed during those tendays.

The union finally ran out of money and called off thestrike on December 10, 1914. In the end, the strikers failedto have their demands met, the union did not obtain recog-nition, many striking workers were replaced by new work-ers, and 332 strikers were indicted for murder.

The strike had a lasting impact both on conditions atthe Colorado mines and on labour relations nationally.Rockefeller hired labour relations’ experts to developreforms for the mines and towns, which included pavedroads and recreational facilities, as well as worker represen-tation on committees dealing with working conditions,safety, health and recreation. From that point forward,there was to be no discrimination of workers who hadbelonged to unions or prohibiting the establishment of acompany union. The Rockefeller Plan was accepted by theminers in a vote.

Today, Ludlow is a ghost town. The site where the mas-sacre occurred is owned by the United Mine Workers whoerected a granite monument in memory of the strikingminers and their families who died on April 20, 1914.

Minnesota’s Iron Range strike (1916)In 1907, a large uprising in the struggle for workers’

rights and fair wages was crushed with the help of strike-breakers; but by 1916, Minnesota mine workers werepoised to confront the steel trust once again. Almost10,000 mine workers went on strike. U.S. steel companieson the Iron Range deputized 1,000 special mine guards andstrikebreakers to keep the picket lines open. Bloodshedsoon followed. In the town of Virginia, where the strikewas headquartered, armed company thugs confronted agroup of picketers and opened fire, killing one miner. Sev-eral thousand mourning workers marched from Virginia tothe fairgrounds in Hibbing where encomiasts urged the

Coffins are marched through Trinidad, Colorado, at the funeral for victims of the Ludlow massacre. Ludlow Massacre monument

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strikers to maintain the struggle and fight back in spite ofcompany repression.

The mining companies refused to recognize any of thestrikers’ demands. After futile negotiations between U.S.steel companies and local businessmen and public officialsin support of the strikers, the workers looked to the federalgovernment. Mediation efforts broke down and, with win-ter fast approaching, the miners voted to end their strikeon September 17, 1916. Although heralded as a defeat, theworkers’ bold confrontation struck fear in company own-ers who, by mid-October, granted a few of the strikers’ pri-mary demands.

The deportation from Bisbee, Arizona (1917)Conditions in the Arizona copper mines owned by

Phelps Dodge Corporation were difficult, and mine safety,wages and living conditions at the camp were poor. Duringthe winter of 1915-16, a successful four-month strike in theClifton-Morenci district led to widespread discontent andunionization among miners in the state. In May 1917, theminers presented a list of demands to Phelps Dodge thatincluded an end to blasting while men were in the mine andto discriminating against union members. The companyrefused and a strike was scheduled to begin on June 26,1917. When the strike occurred, not only did the miners at Phelps Dodge walk off the site, they were joined by work-ers from other mines – more than 3,000 of them in total. The president of Phelps Dodge at the time was Walter S.Douglas, son of James Douglas, the developer of the CopperQueen Mine. Walter Douglas, also president of the AmericanMining Congress, an employer association, had won officeby vowing to break every union in every mine. He orderedhis Phelps Dodge mine superintendents to remove the min-ers from the town. More than 100 men were kidnapped andheld in the county jail. Later that day, 67 of them weredeported by train to California.

On July 11, 1917, the town’s sheriff met with PhelpsDodge executives to plan the deportation of 2,200 men fromBisbee and the nearby town of Douglas. The next day,deputies arrested every man on their list, as well as any manwho refused to work in the mines, forcing them at gunpointto board train wagons. The miners were housed in tentsuntil September 17, 1917, when a handful returned to Bis-bee. In October 1917, U.S. president Wilson appointed acommission headed by the Secretary of Labor to investigatelabour disputes. In its final report, the commissiondenounced the deportation. On May 15, 1918, the U.S.Department of Justice ordered the arrest of 21 Phelps Dodgeexecutives, Calumet and Arizona Company executives, andseveral Bisbee and Cochise County elected leaders and lawenforcement officers. Among those arrested was WalterDouglas. Since it was claimed that no federal laws had beenviolated and that protecting citizens’ right to movement wasa state function, some workers filed civil suits; however, thefirst jury felt that the deportations had been good public pol-icy and refused to grant relief. CIM

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Re-emergence of resin inpulp with strong baseresins as a low-cost,technically viable processfor uranium recovery J. Brown, SGS Minerals Services,Lakefield, Ontario, J. R. Goode, AuroraEnergy Inc., Toronto, Ontario, and C. Fleming, SGS Minerals Services,Lakefield, Ontario

ABSTRACT Data were produced from two uranium project studies that were conducted in 2008, bothinvolving uranium recovery from leached slurry by resin-in-pulp (RIP) with strong base resins. In bothstudies, excellent metallurgical results were produced. The loaded resins were eluted with strong sul-phuric acid and recycled through RIP circuits in an integrated process. Resin losses by either abrasionor mechanical breakage were immeasurably low. Metallurgical results are presented, along with acase study economic analysis of RIP versus the alternative processes of counter-current-decantationor filtration and solvent extraction.

RÉSUMÉ Des données ont été produites à partir de deux études effectuées en 2008 sur des projetsd’uranium, les deux impliquent la récupération de l’uranium d’une boue lixiviée par résine en pulpe(RIP) utilisant des résines à forte sélectivité. Dans les deux études, les résultats métallurgiques étaientexcellents. Les résines chargées ont été éluées avec de l’acide sulfurique fort et recyclées dans descircuits RIP dans un procédé intégré. Les pertes de résine, par abrasion ou par bris mécanique, étaientsous le point de détection. Les résultats métallurgiques sont présentés avec une étude d’une analyseéconomique de la RIP par rapport aux procédés alternatifs de décantation à contre-courant ou de fil-tration et extraction par solvant.

ABSTRACT The Canadian oil sands provide some of the harshest mining conditions in the world. Asoperations demand ever bigger tools, the toll on large mobile mining equipment is high, with struc-tural life often half of that expected. Soft ground conditions predominantly lead to fatigue failurescenarios, poor stability, and inconsistent payload evaluations. These challenges are not solely a con-cern for Canadian oil sands mines; there are far-reaching implications for surface mining equipmentin any poor ground operating environment. This paper focuses on the basics of payload evaluation,motion response, and a simple estimate of structural life for haulers.

RÉSUMÉ L’exploitation des sables bitumineux canadiens s’effectue dans des conditions parmi lesplus difficiles au monde. Alors que les exploitations exigent des outils de plus en plus gros, le fardeausur les gros équipements miniers mobiles est lourd, de sorte que la durée de vie structurale est sou-vent la moitié de celle attendue. Les conditions molles du terrain conduisent essentiellement à desscénarios de rupture par fatigue, à une mauvaise stabilité et à des évaluations variables de la chargeutile. Ces défis constituent non seulement une préoccupation des exploitations canadiennes de sablesbitumineux, ils sont aussi lourds de conséquences pour les équipements miniers de surface dans toutenvironnement de travail difficile. Le présent article cible les techniques de base pour l’évaluation dela charge utile, la réponse au mouvement et une simple estimation de la vie structurale des haveuses.

ABSTRACT This paper evaluates the potential of passive seismic monitoring to correlate miningequipment operation with oil sands surface response, with a mining hauler as the seismic source.When applied to moving haulers, this action-reaction approach is complex. Vibrations from on-boardequipment, such as pumps and tires, dirty the signal with noise. To facilitate any correlation, the sig-nal must be cleaned up. Existing geophysical analytical techniques were manipulated to evaluate thenoise problem and to filter sufficiently to permit an evaluation of whether a mining equipmentaction–ground response relationship is in fact discernable.

RÉSUMÉ Le présent article évalue le potentiel de la surveillance sismique passive pour établir unecorrélation entre l’opération des équipements miniers et la réponse de la surface des sables bitu-mineux, la haveuse minière servant de source sismique. Lorsqu’elle est appliquée à des haveuses enmouvement, cette approche action-réaction est complexe. Les vibrations provenant d’équipementstels que les pompes et les pneus, embrouillent le signal. Le signal doit être nettoyé pour faciliter toute

corrélation. Les techniques analytiques géophysiques existantesont été travaillées pour évaluer le problème du bruit et le filtrersuffisamment afin de pouvoir déterminer si la relation de réponseentre l’équipement en action et le sol est en fait discernable.

Basics of dynamic keyperformance indicators forhaulers in motionT. G. Joseph, University of Alberta,Edmonton, Alberta

Revisiting ground vibrationsdue to mining equipmentmotionT. G. Joseph, University of Alberta,Edmonton, Alberta, and M. Welz, JPi,Edmonton, Alberta

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. 2, No. 2.Subscribe — www.cim.org

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120 | CIM Magazine | Vol. 6, No. 3

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