cim magazine november 2012

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Minova Canada

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CONTENTS|CONTENUCIM MAGAZINE | NOVEMBER 2012 | NOVEMBRE 2012

NEWS 14 Industry at a glance 22 Charting the Arctic seas Will increased nautical

knowledge trigger development in Canada’s Far North?by H. Mathisen

23 Mining payments up Some provinces reap rewardsmore than others by Z. Macintosh

24 All in at Minexpo Over 58,000 attend Las Vegasmining equipment tradeshow by R. Bergen

26 Black clouds over Plan Nord PQ calls for revision ofmining royalty regime by A. Castonguay

28 B Une ombre plane sur le Plan Nord Le Partiquébécois appelle à une révision du régime desredevances minières par A. Castonguay

TOOLS OF THE TRADE 10 Dewatering Compiled by Z. Koulouris

COLUMNS 30 MAC Economic commentary Will Canada stay the course as a free trader? by P. Gratton

31 Eye on business Critical financial considerations in planning and negotiating an IBA by H. Sands

32 Standards CSA Staff Notice 43-307 provides important guidance on disclosure of PEAs by G. Gosson

34 HR Outlook Inclusion and diversity in mining: steps from dialogue to action by M. Sturk

35 Energy Efficient comminution strategies cut costs and energy consumption by E. Lewis-Gray

36 Safety Are we underestimating risk? by I. Ross

42

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

UPFRONT 38 Orbite launching into alumina market Acid

process yields high-purity product and no red mud by A. Castonguay

40 B Orbite produit de l’alumine en Gaspésie Unprocédé acide ne crée pas des boues rouges par A.

Castonguay

42 No guts, no glory in Guinea Rapidly evolvingjurisdiction challenges miners in search of greatrewards by A. Reitman

44 Mine-to-mill mastery Antamina boosts throughputfor hard ores with support from Metso PTI by M. Samuel

48 CRU boss Experience forges insight for Phil Newman,CEO of CRU Strategies by C. Baldwin

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DOSSIER SPÉCIALSPECIAL REPORT

50

CIM COMMUNITY 86 Get engaged CIM membership helps drive

community involvement, maximize industryknowledge and global exposure

B Optimisez votre niveau d’engagement Renforcez votre implication communautaire, vosconnaissances techniques et votre visibilité àl’échelle mondiale by/par D. Zeldin

90 CIM national on the ground Staff get a first-hand look at mining in Quebec

Le bureau national de l’ICM sur le terrain Le personnel témoigne directement des activités minières au Québec by/par D. Zeldin

93 Made in Canada Members Award winner RobertLipic builds global supply chain by K. Lear

95 50 years of success Quebec North-East Branchsupports region’s projects

B Plus de 50 ans de réussite La section Québec Nord-Est appuie les projets de la région by/par A. Castonguay

96 Something for everyone SCBC Branchexecutive focuses on meeting all members’ needsby A. Lopez-Pacheco

98 Strength in numbers CIM develops partnershipto foster international collaboration by D. Zeldin

99 Now in Peru CIM Branch opens in Lima by D. Zeldin

100 Fresh perspective Michel Jébrak examines “Innovation in Mining Exploration”

B Une nouvelle perspective Michel Jébrak examine « L’innovation en exploration minière »by/par A. Lopez-Pacheco

102 Innovation occasion COM 2012 celebrates industry progress by H. Mathisen

TECHNICAL ABSTRACTS108 CIM Journal112 EMG Journal114 Canadian Metallurgical Quarterly

IN EVERY ISSUE 6 Editor’s letter 8 President’s notes / Mot du president103 Calendar115 Innovation showcase116 Professional directory 118 Mining Lore How NAME opened up Canada’s

North: Jack Hammell and the birth of aerialprospecting by C. Baldwin

FEATURE | ARTICLE VEDETTETHE RING OF FIRE 50 The quest for fire The rewards will be great for those intent on developing Ontario’s new mining

district, but they will not come without plenty of hard work and more than a little patience by D. Jenish

54 Slow burn Tight markets, limited infrastructure and challenging relationships test the resolve ofthose exploring the Ring of Fire by E. Moore

56 B La quête du feu Les récompenses seront importantes pour ceux qui développeront le nouveaudistrict minier de l’Ontario, mais ils les gagneront à force de patience et à la sueur de leur front par D. Jenish

58 B Á feu doux Les marchés restreints, les infrastructures limitées et les défis relationnels mettent àl’épreuve la détermination des explorateurs de la ceinture de feu par E. Moore

November 2012 | 5

60

67

PROJECT PROFILE |PROJET EN VEDETTE 60 Nest egg Noront Resources plans to build a “model mine for the future,” under the muskeg of

northern Ontario by C. Baldwin

64 B Richesse nordique Noront Resoures veut développer une mine modèle pour le futur près lafondrière de mousse du nord de l’Ontario par C. Baldwin

68 L’Exploration des hydrocarbures Fossil fuel exploration par/by A. Dion-Ortega

69 Graphiques – le passé et le futur mis en perspective Infographic – past and future in perspective

76 Enjeux autochtones Aboriginal issues par/by A. Castonguay

78 La croissance des fournisseurs Supplier growth par/by A. Castonguay

82 Voix d’un vétéran Veteran voice par/by R. Dufour

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

Managing editor Wah Keung Chan, [email protected]

Senior editor Ryan Bergen, [email protected]

Section editorsFeatures: Ryan Bergen, [email protected] and Upfront: Peter Braul, [email protected], CIM Community, Histories and Technical Section:Dinah Zeldin, [email protected] editor / Communications coordinatorZoë Koulouris, [email protected]

Web editor Nathan Hall, [email protected]

Editorial internsHerb Mathisen, [email protected]ë Macintosh, [email protected] Olaguera, [email protected]

Publisher CIM

Contributors Correy Baldwin, Alain Castonguay, René Dufour,Greg Gosson, Pierre Gratton, D’Arcy Jenish, Kim Lear, ElizabethLewis-Grey, Alexandra Lopez-Pacheco, Eavan Moore, AntoineDion-Ortega, Anna Reitman, Iain Ross, Marta Samuel, HarveySands, Melanie Sturk

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

Subscriptions Included in CIM membership ($170.00); Non-members (Canada), $220.00/yr (PE, MB, SK, AB, NT, NU,YT add $11.00 GST, BC add $26.40 HST, ON, NB, NL add$28.60 HST, QC add $32.95 GST + PST, NS add $33.00 HST)Non-Members USA and International: US$240.00/year Single copies, $25.00.

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

This issue’s coverCore samples from Noront Resources’ operations in Ontario’sRing of Fire. Courtesy of Noront Resources

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

Copyright©2012. 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

Nearly everyone seems anxious to weigh in on theissues surrounding the development of Canada’s min-eral-rich north these days. From roadways and infra-structure development to community engagement andenvironmental impact, it appears the challenges are asplentiful as the potential resource bounty.

In this issue, we aim to give exposure to some ofthese topics by focusing on two rapidly evolving miningjurisdictions. Our feature spotlights northern Ontario’sRing of Fire region, where two mining projects promiseto open up the area to more mineral exploration, adevelopment that cannot happen too quickly for explor-ers anxious to add fuller detail to the region’s mineralpotential.

Then, in our Special Report on Quebec, we examine some of the hot-buttonissues at play in a jurisdiction that is at the centre of a great deal of political scrutinyand media attention. Antoine Dion-Ortega reports on the uncertainty surroundingfossil fuel exploration, while Alain Castonguay looks at how the expansion of min-ing activity is impacting suppliers to the industry as well as Quebec’s Aboriginallandscape. Veteran mining professional and former CIM president (1988 – 1989)René Dufour weighs in on Quebec’s northern development strategy in an opinionpiece entitled “China’s Plan Nord.”

Also, mark your calendars for the upcoming 45th Annual Canadian MineralProcessors Conference, to be held in Ottawa, Ontario, from January 22 to 24. Youcan find the Preliminary Program on pages 104-107. Finally, check out CIMMagazine’s 2013 Editorial Calendar on page 111. We are very excited about ourexpansion to nine issues next year and our opportunity to bring you increasedcomprehensive coverage of the mining world.

Éclairage boréalDe nos jours, chacun semble pressé de donner son avis sur les enjeux qui entourent

le développement du nord canadien, riche en minéraux. Du développement des routeset des infrastructures à la participation des collectivités et à l’impact environnemental,les défis à relever abondent tout autant que les ressources potentielles.

Dans ce numéro, nous souhaitons mettre en lumière certains de ces sujets en nouspenchant sur deux régions minières dont l’évolution s’accélère. Notre article vedettedirige les projecteurs sur la région du cercle de feu, au nord de l’Ontario, ou deux pro-jets miniers se préparent à ouvrir la région à plus d’exploration minière, un dévelop-pement qui ne saurait survenir trop tôt pour les explorateurs anxieux d’obtenir plusde détails sur le potentiel minéral de la région.

Nous examinons ensuite, avec notre Rapport spécial sur le Québec, certains desdossiers chauds actuels dans cette province qui focalise l’attention politique et média-tique. Antoine Dion-Ortega relate l’incertitude qui entoure la recherche de combus-tibles fossiles, et Alain Castonguay examine l’impact de l’expansion des activitésminières sur les fournisseurs de l’industrie et sur le paysage autochtone du Québec.René Dufour, expert vétéran du secteur minier et ancien président de l’ICM (1988-1989), se prononce sur la stratégie de développement du Nord du Québec dans unarticle d’opinion intitulé « Le Plan Nord de la Chine ».

Aussi, à noter sans faute au calendrier, la 45e conférence annuelle de la Sociétécanadienne du traitement des minerais, qui se tiendra du 22 au 24 janvier à Ottawa,en Ontario. Vous trouverez une version préliminaire du programme aux pages 104 à107. Finalement, découvrez le calendrier éditorial 2013 de CIM Magazine en page 111.Nous sommes enchantés de passer à neuf numéros par an pour l’an prochain et depouvoir ainsi vous livrer une information encore plus complète sur le monde minier.

Angela Hamlyn, [email protected]

Northern lights

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This past October, I attendedthe 51st Conference of Metal -lurgists in Niagara Falls. It wasmy pleasure to present CIMFellowship Awards to five worthyrecipients, including NathanStubina who, as well as being apast-president of MetSoc, iscurrently VP International ofCIM. I would like to congratulatethe new president of MetSoc,Vladimiros Papangelakis, alongwith all of the volunteers andstaff members who did such agreat job organizing a well-attended and informative con-ference. MetSoc is another one

of our Societies that is alive and well thanks to dedicated members andstaff.

CIM’s mission is to expand links to potential members and miningcommunities abroad, and we are moving forward on this front.

Minexpo 2012 in Las Vegas was the backdrop for CIM leadership tomeet with sister mining associations AusIMM, SAIMM and SME. Thismeeting – the third one bringing us all together – began to assemble aframework for increasing cooperation. Our aim is to improve communi-cations, develop mutual member benefit programs, and share technicalmeeting and networking opportunities.

president’s notes

In mid-October, CIM took part in a private round table session inDakar, Senegal, with Canadian Prime Minister Stephen Harper and sixother Canadian business community members with a strong presencein West Africa. CIM outlined several initiatives, such as the opening ofits first West African branch in Dakar and the funding of two projects todevelop an analysis model for supply chain opportunities related to WestAfrican gold mining. These initiatives are the result of extensive effortsby CIM executive director Jean Vavrek and the CIM InternationalCommittee to strengthen CIM’s presence globally.

On an individual level, I want to encourage you to take advantage ofCIM’s revamped website, where you can update your member profileand continue to profit from the benefits of belonging to the CIM com-munity of expertise.

This issue of CIM Magazine again highlights the important impact ofmining on Canada’s economy with its focus on the “Ring of Fire” inOntario. Big mineral discoveries continue to occur in Canada, and CIMmembers and their expertise are essential to the development of theseexciting new opportunities.

As I write this, fall is in full colour, but it will soon give way to winter.So please be ready for the challenges of winter driving and ensure thatwinter tires have been installed on all your vehicles.

Terence Bowles, CIM President

En octobre dernier, j’ai pu assister à la 51e édition de la conférencedes métallurgistes à Niagara Falls. À cette occasion, j’ai eu le plaisir deremettre le prix Confrérie de l’ICM à cinq personnes très méritantes,dont Nathan Stubina qui, en plus d’avoir déjà été président de MetSoc,est actuellement vice- président international à l’ICM. J’aimerais féliciterle nouveau président de MetSoc, Vladimiros Papangelakis, les béné-voles ainsi que les membres du personnel pour leur travail formidabled’organisation de cet événement très instructif qui a attiré un grandnombre de participants. MetSoc est une autre de nos sociétés dont lavitalité et la solidité reposent sur le dévouement de ses membres et deson personnel.

L’initiative de l’ICM consiste à développer les liens avec lesmembres potentiels et les collectivités minières à l’étranger et nousprogressons vers ce but.

C’est dans le cadre de l’événement MinExpo 2012 à Las Vegas quel’équipe de direction de l’ICM a rencontré les associations minièressœurs AusIMM, SAIMM et SME. Cette rencontre, la troisième à ce jour,a permis de jeter les bases d’un cadre visant à stimuler la collaboration.Nos objectifs sont l’amélioration des communications, l’établissementde programmes d’avantages mutuels pour les membres ainsi que lepartage des occasions de réunions techniques et de réseautage.

À la mi- octobre, l’ICM a participé à une table ronde privée à Dakar(Sénégal) avec le premier ministre du Canada Stephen Harper et sixautres membres du secteur canadien des affaires menant des activitésimportantes en Afrique occidentale. L’ICM a esquissé à grands traitsplusieurs initiatives, dont l’ouverture, à Dakar, de sa première

succursale en Afrique occidentale ainsi que le financement de deux pro-jets de développement d’un modèle d’analyse des possibilités enmatière de chaîne d’approvisionnement dans le domaine de l’exploita-tion aurifère dans cette partie du continent africain. Ces initiatives sontle fruit du travail acharné de Jean Vavrek, directeur exécutif de l’ICM etdu comité international de l’Institut en vue de renforcer la présencemondiale de ce dernier.

Personnellement, je vous invite à visiter le site Web remanié de l’ICM,où vous pouvez mettre à jour votre profil et continuer de tirer parti desavantages découlant de votre adhésion à cette communauté d’expertise.

Ce numéro de CIM Magazine souligne de nouveau l’influence impor-tante de l’exploitation minière sur l’économie canadienne en mettantl’accent sur « le cercle de feu » en Ontario. D’importantes découvertesde minerais se poursuivent au Canada et les membres de l’ICM ainsique leur expertise jouent un rôle essentiel dans l’exploitation de cesnouvelles occasions fort intéressantes.

Au moment où j’écris ces lignes, les feuilles ont pris leurs colorisflamboyants d’automne et annoncent déjà l’arrivée de l’hiver. Aussi, j’enprofite pour vous rappeler d’installer des pneus d’hiver sur tous vos véhi-cules pour être mieux armés contre les pièges de la conduite hivernale.

Terence Bowles, Président de l’ICMTraduit par SDL

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◢ A tailings pond’sbest friend

The new Draglow HY85 slurry pump

from Aquatech Dewatering comes

with a high-efficiency agitator to

prevent solids from blocking the

pump inlet. The agitator cutter

blades are made of hi-chrome steel

which is very hard and resistant to

abrasion. They create an excavating

motion, which lifts and draws settled

sediment, creating a continuous flow

of concentrated slurry of up to 70

per cent solids by weight.

“Compared to other pumps of similar

capacity, Dragflow offers a lower

operating RPM and is built from

robust heavy-duty construction that

guarantees lower wear rates and

prolonged component life,” says

Ellen Nyarko, marketing and

communications coordinator at

Aquatech Dewatering. “The use of

simple components means lower

costs and easier maintenance.”

When mounted onto an excavator,

the HY85 can handle solids up to

2.4 inches in diameter, and it can

dredge deposits as deep as

250 metres.

◢ On-demand energy savingsThe NRG1-ECO (Energy Consumption Optimization) software

developed by Bestech helps mining companies cut energy costs

without reducing performance. “Our solution connects via

communication infrastructure to devices like dewatering pumps, which

are continuously used for underground mining operations,” says Pat

Dubreuil, vice-president operations, sales and marketing with Bestech.

Operational data from the devices is viewed and collected in real-time

via the central human-machine interface (HMI) used to navigate and

operate NRG1-ECO. “Historically these devices were set up with a point

of local control, such as an HMI which can control the pumps, or an

HMI that can control a particular fan or booster,” Dubreuil says. “Our

software aggregates all of these control processes under one central

platform providing the user with one-stop-control solutions.”

◢ All decked outItalian producer of polyurethane dewatering panels Eurogomma

mainly offers three modular systems (EURO-PS - 305mm x 305mm;

ErStep - 300mm x 600 mm and EURO-FG - 300mm x 1,000mm) but

also makes custom panels of any dimension or aperture size. The

company also produces on-demand, made-to-specification equipment

for decks, where dewatering panels are installed. The panels are used

to dewater mineral or aggregate sand from processing equipment like

hydrocyclones, desliming drums and trommel screens. Dewatering

creates almost-dry sand that can be immediately stocked and loaded

onto trucks. “We have gained solid results in the field,” says Cristian

Annoni, marketing and sales director with

Eurogomma. “Clients call on us to help

them increase their dewatering

efficiency because they’ve

been using decks that are too

small. Using polyurethane

dewatering enables mining

companies to increase deck

lifetime and cut downtime due to

maintenance.”


TOOLS OFTHE TRADE dewatering

010-013 Tools of the Trade v3.qxd_Layout 1 2012-10-30 11:38 AM

TOOLS OFTHE TRADE dewatering


◢ Going deepBoart Longyear offers key tooling and techniques for dewatering to

drill deep- and large-diameter holes in difficult conditions. The

company offers services for conventional, reverse-circulation,

horizontal and large dual-tube flooded-reverse drilling methods for

deep wells and horizontal drainage. Flooded reverse circulation, for

instance, can drill diameters of up to 60 inches in a single pass.

“The primary application of our drilling service is for monitoring

water tables in and around the mine, supplying water needed in the

mining process, and lowering water tables to allow safe and efficient

mining,” says Dale Johnson, Boart Longyear’s global director of

drilling services operations. “We also drill and install horizontal

drains for open pit and underground applications.”

Hopping goodThe Flygt Mobile

Dewatering Hopper from

Xylem is a simple-to-use

and cost-effective mobile

pump station for temporary

use in a mine or

construction site. “Designed

in consultation with

underground operators, the

beauty of this dewatering solution is that it comes fully assembled

and ready to pump when delivered,” says Fredrik Holm, Xylem’s

communications manager. Because they have multiple lifting

points, the hoppers are mobile, and can replace costly permanent

sumps. The hopper has a 10,000-litre capacity and is fitted with 90

kW pumps that can handle flows of up to 100 litres per second.

Easy maintenance is one of the key features of the unit. Heavy

solids are separated with a screen from the pump section, and

each segment has butterfly valves for quick and easy cleaning. The

pumps in the hoppers are protected from accidental damage and

oversized solids in the water by screens that are easily removed for

maintenance purposes. Xylem’s Flygt Mobile Dewatering Hopper is

also available in a galvanised finish and can be rubber-lined for

corrosive duties upon request.

◢ Top-notch serviceEquipped with western Canada’s largest

fleet of high-lift pumps, submersible pumps,

conventional and non-conventional dredges,

along with a variety of piping systems,

Canadian Dewatering offers customers an

enormous range of options for mine

dewatering services. Its rentals, sales, and

contract services are available for pumping,

barging, dredging, dewatering and

sediment control needs. “With four decades

of experience and best-in-class customer

service, Canadian Dewatering is the mining

industry’s expert for innovative fluid

management solutions,”says Dale Marchand,

president of Canadian Dewatering. “We are

ready and equipped to meet all fluid

management challenges.”

Compiled by Zoë Koulouris


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Syncrude to seekextension of Mildred Lakeoperation

Syncrude is planning to mine twonew oil sands sites on leases it currentlyholds in Alberta’s Athabasca region.Cheryl Robb, a Syncrude spokesper-son, said the proposed Mildred LakeExtension (MLX) project will replacethe bitumen supply from its currentmining site once it is depleted.

Marcel Coutu, CEO of CanadianOil Sands (COS), which holds a 36.74per cent stake in the Syncrude project,said the company hopes MLX willextend “the useful life of the minetrains that we are building today intothe 2030s.” According to Coutu, theextension project will “minimize newland disturbance through the utiliza-tion of existing environmental andoperating infrastructure.”

Robb said mine train equipment,which is currently being relocated

closer to its current mine site 40 kilo-metres north of Fort McMurray, will beused for future bitumen processing.

Syncrude will seek stakeholderfeedback regarding its plans prior tosubmitting the project for regulatoryapproval, it hopes, in 2014. Reserveson Syncrude’s leases could take it to2070, Robb said. – Herb Mathisen

Ontario’s Mining Actmodernization becomeslaw

The Ontario government is phas-ing in new legislation designed to for-malize and enhance consultationbetween exploration companies andFirst Nations in the province. Whilevoluntary for now, as of April 1,2013, companies will be required tosubmit exploration plans before con-ducting exploration activities. Thenew rules serve to inform potentiallyaffected First Nations and private

landowners of work such as coresample drilling or line-cutting. As siteexploration becomes more extensive,companies will have to apply for anexploration permit, which will beposted to the province’s environmen-tal registry to allow for public feed-back, said Cindy Blancher-Smith,Ontario’s acting assistant deputy min-ister of mines.

“The mining act of yesterday did notregulate early exploration,” saidBlancher-Smith, “so this is a first in thatonce a claim has been recorded, wewill now become aware of explorationactivities at the very early stages.”

Rob Merwin, mining act moderniza-tion secretariat director, said the act’sgradual implementation is intended toeducate industry participants.

“We think that there are a lot of reallygood, positive relationships betweenindustry and First Nations, and a lot ofcommon ground,” he said. Stop-workorders, permit cancellations and fines of

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WORLD-CLASS MINING. IT STARTS HERE.

Cliffs Natural Resources Inc. is

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our global commitment to sustainable

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Planned investment of $1 billion to

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Currently in the feasibility stage,

the Cliffs Chromite project has the potential

Northern Ontario region.

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have mitigated tensions earlier in thedispute. The judicial panel will makerecommendations on how to resolvefuture conflicts; it also has the authorityto refer individuals to law enforcementagencies for prosecution or furtherinvestigation. The inquiry, which willinclude public hearings, has Decemberset as a deadline to complete its work.

On September 18, Lonmin and itsworkers reached a settlement, withworkers gaining up to 22 per cent inwage increases. Since the unrest atMarikana though, strikes have spreadto other platinum and iron ore minesand even into the trucking industry.Citing these uncertainties, Standard &Poor’s downgraded the country’s long-term and short-term foreign currencyratings in mid-October. – H.M.

Mining CEOs making lessin 2012

This year has not been good to thehead honchos of Canadian mining

up to $100,000 are penalties the gov-ernment can impose if a company con-travenes the act, but Merwin added“that is the last resort.” – H.M.

Inquiry launched toinvestigate Lonmin strike

The South African government haslaunched a commission of inquiry to lookinto what caused the violence that eruptedduring the Marikana platinum mine strikein August. More than 3,000 workers wenton strike August 10 and, over the next 10days, 44 people were killed, including twopolice officers. More than 70 others wereinjured in skirmishes between unionmembers and police. On August 16, policeopened fire on striking miners, killing 34.

The commission will look into theactions of the operator of the mine,Lonmin Plc, along with the SouthAfrican Police Service, the NationalUnion of Mineworkers and the Associ-ation of Mineworkers and ConstructionUnion, to examine whether they could


companies. A recent survey by Coop-ers Consulting and PricewaterhouseC-oopers Canada found overall CEOwages decreased by roughly seven percent in 2012. While the average basesalary for CEOs actually rose to$490,000 this year from $486,000 in2011, bonus pay dropped 31 per centto $370,000.

Lou Vujanic, a partner with CoopersConsulting, said disclosure require-ments are becoming stricter, and whencompanies file their executive compen-sation packages with security regula-tors, they have to account for thedifferent elements that make up thebonuses. “I think the general practicewas that a lot of the bonus allocationswere simply left up to the discretion ofthe board,” he said.

Michael Cinnamond, a partner withPricewaterhouseCoopers, also notedthe adverse effects the slowdown inChina’s economy, the eurozone crisis,and softer commodity prices all had onsome mining companies’ bottom lines.

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Vujanic added he did not know if CEOpay dropped in other sectors, since thesurvey was focused on the miningindustry. – H.M.

Yukon College addsminerals program

Yukon College has launched a min-eral resources program that offers botha one-year certificate and a two-yeartechnologist program. The first classwill be limited to 15 students. Gradu-ates of the two-year program will beeligible for accreditation as ProfessionalGeological Technicians. Some of thecourses will also be eligible for transferas university credits.

There is a boom in mining andexploration jobs in the Yukon, whichnow has three operating hard rockmines with about 750 employees. Priorto the start up of Capstone Resources’Minto Mine in 2007, there were nolarge-scale mines in the territory.According to Bryony McIntyre, man-ager of Yukon Energy, Mines andResources, there are about 2,500 directjobs in Yukon placer mines and explo-ration projects that typically operatebetween May and October.

– Brian O’Hara

Rio Tinto sells off twoSouth African coalproperties

Toronto-based Forbes & Manhattanhas entered into an agreement to pur-chase two South African thermal coalproperties from Rio Tinto. The deal,worth $52.3 million, will see 74 percent interest in both the ZululandAnthracite Colliery and RiversdaleAnthracite Colliery transfer hands. TheZululand mine, according to Forbes &Manhattan, has produced an average of700,000 tonnes of ore per year over thelast five years. This deal puts theForbes Coal division closer to its statedgoal of becoming a three- to four-mil-lion-tonne coal producer per annum.

Rio Tinto also announced its inten-tion to sell off its 57.7 per cent stake inthe Palabora Mining Company coppermine located in South Africa’s Limpopoprovince. The company will not be

leaving the country completely though,as it finalized a deal with BHP Billitonto double its interests in the RichardsBay Minerals mineral sands and pro-cessing project for $1.7 billion. – H.M.

ERM acquires Canadianenvironmental consultingfirm

Environmental Resources Manage-ment (ERM) has purchased Vancouver-based environmental consulting firmRescan Environmental Services. ClemPelletier, who founded Rescan in 1981,will stay on as president of Rescan’soperations. His son, Pierre, who wasthe president of Rescan, will become amanaging partner with ERM Canada.

“It was kind of a planned strategyon our side – whether to continue togrow Rescan from our side or to mergewith a larger company,” said Clem Pel-letier, adding that ERM was interestedin Rescan due to its foothold in theCanadian mining consultancy busi-ness. At the time of the deal, Rescanhad increased its workforce to roughly200 employees, and Pelletier believesthis trend will continue.

Rescan, which has two majoroffices in Saskatoon, Saskatchewanand Vancouver, BC, and eight regionaloffices located in British Columbia, theNorthwest Territories and Seattle,

Washington, will operate as Rescan, anERM Group Company. ERM hasoffices in Montreal, Toronto, Vancou-ver and Calgary.

ERM, an environmental consultingcompany based in the United King-dom, has more than 4,700 employeesand 140 offices in 40 countries. Asboth companies are privately owned,no financial details of the deal werereleased. – H.M.

A deadly blow for asbestos in Quebec

Newly-elected Parti Québécois Pre-mier Pauline Marois has made good onher campaign pledge to end theprovince’s asbestos industry. Under-ground expansion at Mine Jeffrey Inc.in Asbestos, Quebec, was slated to goahead thanks to a $58-million loanpromised by the previous Liberal gov-ernment. However, mine presidentBernard Coulombe confirmed the loanwas cancelled on October 1 and, as aresult, he will shut down the province’slast asbestos mine, which had been inoperation since 1879.

Workers will remove equipment, capthe mine’s two shafts and flood the openpit, leaving what Coulombe says are twomillion tonnes of proven chrysotile ore.

Responding to Marois’s actions,Canadian Industry Minister Christian


Students learning the tools of the trade in Yukon College’s new mineral resources program.

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Paradis said the federal governmentwould no longer oppose the listing ofchrysotile asbestos as a hazardouschemical in the Rotterdam Convention– a categorization that would imposerestrictions on asbestos exports.

Coulombe hopes to one day reopenthe mine but says securing investmentis tough in a world with “no sympathyfor chrysotile.”

Shirley Bishop, a spokesperson forMarois, said the government will investmoney back into the region – potentiallyas much as the original $58 millionpromised by the Liberals – to diversifythe economy and help affected workersfind employment. – H.M.

Kinross CFO to resignLittle more than two months after it

replaced its CEO, Kinross announcedthat chief financial officer Paul Barrywill be resigning from his role once asuitable replacement is found. Barry,who has held the CFO and executive

vice-president positions since March2011, will be leaving to pursue otherinterests, according to a companystatement.

“Our aim is to complete our searchand confirm an appropriate candidateas our new CFO as soon as possible,”

said Steve Mitchell, a company spokes -person, adding no timetable had beengiven to name Barry’s successor.

In August, the Canadian-basedgold mining company appointed J.Paul Rollinson as CEO, replacing TyeBurt, who led Kinross for seven years.

– H.M.


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The Jeffrey Mine in Asbestos, Quebec will shut down now that a $58-million loan from the previous Liberalgovernment was cancelled by Parti Quebecois Premier Pauline Marois on October 1.

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November 2012 | 21

New national park pleaseslocal mining industry

The boundaries announced byPrime Minister Stephen Harper forCanada’s newest national park in theNorthwest Territories strike a compro-mise between preservation and devel-opment, according to the NWT &Nunavut Chamber of Mines. The Naat-s’ihch’och National Park Reserve ,designed to protect the upper SouthNahanni River watershed in the west-ern NWT, encompasses 4,850 squarekilometres of wilderness inhabited bygrizzly bears and woodland caribou.The region is also home to many high-potential mineral deposits, whichinclude gold, zinc, lead, silver andtungsten.

Through consultations, three boun-dary options were presented to the federal government, with Harper even-tually selecting the least restrictivechoice for industry. “The Chamber ofMines strongly supports the develop-ment of park boundaries based on theexclusion of resource-rich areas withsignificant mineral potential so thatnortherners and all Canadians can takefull advantage of future economicopportunities,” said Pamela Strand,chamber president, in a statement. TheCanadian Parks and Wilderness Soci-ety, a wilderness advocacy group, wasupset with Harper’s decision. – H.M.

Baffinland project clearshurdle

The Nunavut Impact Review Board(NIRB) gave Baffinland’s proposed $4-billion Mary River iron ore project thegreen light in mid-September. Theboard passed its recommendation on toAboriginal Affairs and Northern Devel-opment (AANDC) Minister John Dun-can. Along with the ministers offisheries and oceans, environment,transport and natural resources, Dun-can will decide whether to allow theproject to proceed to the regulatorystage. No timetable has been given forthis decision, according to an AANDCspokesperson.

NIRB’s approval of the company’senvironmental and socio-economic

impact assessment was the culminationof four years of public consultation.The decision was rendered in a 350-plus page document that includes 184terms and conditions, ranging fromrecommendations for increased andcontinued environmental monitoring,commitments to minimize the project’simpacts on caribou and other wildlife,and a cap of 242 shipping hauls peryear. The project, where iron ore willbe mined from an open pit at thenorthern tip of Baffin Island, willrequire the construction of a railroad totransport the crushed product to adeep-water port located 150 kilome-tres to the south. From there, the orewill be shipped year-round to Euro-pean markets. – H.M.

Newfoundland institutesforge partnerships withGuyana

Memorial University’s Marine Insti-tute International and the College ofthe North Atlantic have signed agree-ments with the government of Guyanato develop training programs for thecountry’s mining and emerging offshoreoil sectors. While Marine InstituteInternational will focus on offshore oil

industry at a glance | news

Prime Minister Harper’s recent Naats’ihch’oh National ParkReserve boundary announcement was met with agreementfrom the mining industry.

training, the College of the NorthAtlantic will bring expertise in the min-ing, and terrestrial oil and gas areas.

Bill Chislett, Marine Institute Inter-national director, said he hopes thememorandum of understanding theinstitute signed with Guyana’s Ministryof Natural Resources will help maxi-mize employment opportunities forresidents of the Caribbean nation.

If all goes well, said Chislett, “wewould try to assist training institutionsin-country to produce or develop train-ing programs that can increasingly trainGuyanese to fill the emerging jobs.”Similar training programs created dur-ing Newfoundland’s own offshore oildevelopment have resulted in a 90-per-cent-Canadian workforce today, headded. The institute is currently in dis-cussions with Guyana to identify gapsin the country’s training.

Marine Institute International hasconducted more than 200 projects andpartnerships in 50 countries over thelast 25 years, Chislett said. – H.M.

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This summer, Canadian hydrogra-phers took to Arctic waters in search ofthe remains of Sir John Franklin’sdoomed 1845 expedition. And whilethey found little of the famed NorthwestPassage wreck, the mission added moredetailed knowledge to the nautical path-way some still hope will open up thenorth to shipping and industry.

Using multi-beam sonar to measurethe ocean’s depth and to create three-dimensional pictures of the seabed,along with a combination of one-beamand sidescan sonar, the CanadianHydrographic Service (CHS) mappedmore than 400 square kilometres of theAlexandra and Victoria Straits, saidAndrew Leyzack, CHS hydrographer-in-charge. This new informationshould shave roughly seven hours ofshipping time around the adjacentKing William Island.

But the area surveyed represents justa small fraction of Canada’s internal Arc-tic waters, which have long remainedunder-charted.

“As of present, only one per cent ofthe Arctic has been surveyed to modernstandards using multi-beam sonar,”Leyzack said, while 90 per cent of Arcticwaters have large gaps in coverage and ahigh likelihood of undetected hazards.

Leyzack explained that moderncharting opens up known shipping cor-ridors, making it safer for larger shipswith deeper drafts to navigate, whilealso creating alternate shipping routesfor vessels confronting adverse sea iceconditions.

Without a dedicated vessel fromwhich to perform its mapping, though,CHS hydrographers have had to piggy-back onto coast guard and research ves-sels operating in the north whencharting targeted areas.

Rob Huebert, an associate professorof the political science department atthe University of Calgary, said chartingshould become a primary, and not sec-ondary, duty of northern marine opera-

Charting the Arctic seasWill increased nautical knowledge trigger development in Canada’s far north?

By Herb Mathisen

ments. The Nunavut governmentrecently signed an agreement with CHSto chart the James Ross and Rae Straits.

And though he said good mapsmight not be a primary draw for indus-try, Peter Frampton, the government ofNunavut’s senior petroleum resourcesadvisor, said further charting wouldreduce risk for companies. He pointedto hundreds of potential – yet uncharted– harbours along the eastern coast ofBaffin Island, which could be used asstaging points for possible offshore oilprojects in the Davis Strait or even assafe havens from sea ice for ships.

“If you lower the risk, you lower thepotential cost,” he said, adding thatcompanies with more information canbetter plan their projects.

Yet poor charting represents just oneof the risks of arctic operations. Lowingspoints to the high operating costs ofworking in the north, which is rife withlogistical, environmental, regulatoryand land-use hurdles, all of whichthreaten resource investments.

Despite this summer’s record sea icemelt and the region’s vast potential – theSverdrup Basin alone is reported to con-tain some 45 trillion cubic feet of natu-ral gas – large-scale development mayremain unfeasible for some time. CIM

tions, adding the current governmentdoes not have a coordinated plan tochart the Arctic’s internal waterways.

“Once you chart, people will come,”Huebert said, noting that added pres-sure from increased shipping trafficwould spur northern infrastructuredevelopment in a “piecemeal” fashion.Better infrastructure, including desper-ately needed harbours, would getindustry’s attention; resupply and repairwork, he said, would be made cheaper.

But Malcolm Lowings, principaland technical leader of Arctic and off-shore oil and gas services with GolderAssociates Ltd., said charting alonewould not compel extractive compa-nies to look north.

“It’s something you would take intoaccount,” he said, but added the poten-tial resource – and how to bring it tomarket – would remain the primaryconsideration. “The idea of mappingevery square kilometre of sea floor inthe Canadian Arctic Islands to modernstandard is not reasonable,” he pointedout. “There are places in the CanadianArctic that will never be visited ever.”

To date, CHS charting priorities havebeen determined based on consulta-tions with the shipping industry, privatesector, communities and local govern-

The hydrographic survey launch vessel CSL Gannet heading back to the Canadian Coast Guard Icebreaker CCGSSir Wilfrid Laurier

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A recent Mining Association of Canada (MAC) report esti-mates Canada’s provincial and federal governments may havecollected an extra $300 million in taxes from the sector in 2011compared to 2010. Total payments reached a projected $9 bil-lion in 2011. The rise occurred despite a reduced federal tax rateand reflects heightened productivity and commodity prices.

The report, Revenues to Governments from the CanadianMineral Sector 2002-2011, presents estimates for annual min-eral-sector payments collected by Canadian governmentsthrough corporate and personal income taxes, and the aggre-gate of royalties and mining taxes unique to each province.Its calculations do not use data from 2011 tax returns, whichwill become publicly available in March 2013, but extrapola-tions from 2010 data guided by quarterly results in 2011.

According to the report, estimates for the overall value of min-eral production in 2011 show a post-recession record of $50.3billion. That is a 21 per cent rise over 2010 levels, though thejump is smaller than the latter year’s sharp recovery from 2009.

And though the tax rate was lower, other factors affectingindustry had a much larger impact on payments to governments.Lucie Chouinard, a Quebec-based mining tax analyst withDeloitte, pointed out that the 2011 federal corporate tax rate cutdeprived government coffers of just $27 million that year. Therate came down to 16.5 per cent from 18 per cent in 2010.

“It was kind of a quiet year on the taxation front,” said MACreport author Neil McIlveen. “That particular reduction on thefederal front was probably the biggest one around, and it alsowas not really a surprise. It was part of a phase-downannounced in 2007 by [federal finance minister Jim] Flaherty.”

The MAC report identifies the 2011 federal tax rate cut asthe most significant policy change impacting payments fed-erally, but does not focus on important tax changes withinindividual provinces. In Quebec, for example, recentchanges counter the federal reduction. Mining duties rose byfour per cent in the province over the last two years – a climbnearly mirroring the federal corporate tax rate’s descent ofthree per cent over the same period. Prior to 2010, the lasttime mining duties rose in the province was in 1994.

Mining payments up Some provinces reap more rewards than others

By Zoë Macintosh

November 2012 | 23

news

Meadow Bay Gold gets interim CEO

Alexander Khutorsky was named interim CEO at MeadowBay Gold Corp and became a member of the board, replacingRobert Dinning who decided to step down as CEO. Khutorskywas previously managing director of New York-based invest-ment bank Dahlman Rose & Coll, LLC, working specifically inthe metals and mining sectors.

MOVING ON UP

If other provinces make good on their 2012 budgets, thespike in provincial mining duties could become more wide-spread. The finance ministers of both Ontario and British Colum-bia have announced they will conduct reviews of the mining taxregimes in their provinces, according to Liam Fitzgerald, aToronto-based Pricewaterhouse Coopers mining tax lawyer.

The importance of provincial regulations should not beoverlooked. “The mining duties [in Quebec] increase muchmore than the [federal] tax rate reduction,” said Chouinard.“The impact [of provincial hikes] is much bigger for miningcorporations [than federal reductions]. Of the complaints Ihear in the [general] population, I understand it’s not obvi-ous that the mining duties have increased so much in Que-bec. In fact, I think that in the population, they still have theperception that the mining companies don’t pay any taxes.”

In her recent analysis of cash flows for a proposed Quebecmining project, Chouinard found that in relation to 2012 andfuture years, mining duties and income taxes in the provincerepresented “nearly 50 per cent of the profit of the mine.” CIM

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Despite a cooling metals market anduninspiring economic forecasts, Min-expo in Las Vegas was an oasis of opti-mism for the global mining industry.This year’s event, the largest theNational Mining Association has everhosted, packed over 1,800 companiesinto 80,000 square metres of exhibitspace, both inside and outside the LasVegas Convention Center. Since 2008,when the event was last held, organiz-ers ex panded to a third exhibition hall,representing a 40 per cent growth offloor space.

All in at MinexpoOver 58,000 attend Las Vegas mining equipment tradeshow

By Ryan Bergen

With all that space, the onus was onexhibitors to go big. In July, around thetime Caterpillar posted its best quarterever, the company began the physical setup of what was its largest exhibit at theshow to date. The industry giant showedoff with more than two dozen pieces ofsurface and underground mining equip-ment, a theatre-sized screen and, wiselyincluded, an information kiosque tohelp visitors navigate the 4,800-square-metre exhibit. Caterpillar, with a seriesof acquisitions that has expanded itsreach in surface and underground min-

ing, had plenty to showcase, as did otherequipment heavyweights like Komatsu,Liebherr, Hitachi, Sandvik, Joy Globaland Atlas Copco.

“The total planning time for a showof this size is about 18 months,” saidRichard Smith, director of product mar-keting and planning for Komatsu’s min-ing division. “The heavy planning startsin earnest about one year ahead of time.”

And as the event is only held everyfour years, exhibitors must seize theopportunity to showcase new equip-ment, announce acquisitions or declareambitious plans, as General Electricdid with the formal rollout of its dedi-cated mining business unit. The com-pany is making an aggressive moveinto mining with recent purchases,including Fairchild International, the manufacturer of underground miningequipment and vehicles.

Uncertainty about the future didcolour the event, however. During theshow, Caterpillar announced moremodest profit expectations for the nextthree years, which CEO Doug Oberhel-man attributed to “modest global eco-nomic growth.”

That sluggish growth was on themind of Goodyear’s David Anckaert,leading up to the exhibition. “Weweren’t quite sure how it would go,”said the company’s general manager forglobal off-the-road tires, on the secondday of the show, “but there has been lots

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Exhibit space was expanded 40 per cent for the 2012 edition of Minexpo.

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November 2012 | 25

of activity.” In addition to a full scheduleduring the day, Anckaert explained peo-ple had booked times for meetings inthe early morning, hours before theconvention center opened its doors.

Corey Poppe, marketing managerfor Superior Industries, whose growingMinnesota-based company first exhib-ited at Minexpo four years ago,returned this year with a much biggerbudget and greater expectations. “Ourobjective was to have 60 per cent moreleads than 2008, and I believe we metthat goal,” he said.

“Everyone wants to be bullish,”observed Lee Laviolette, global lead foroperational excellence with manage-ment consulting firm Accenture. A spe-cialist in process and innovationperformance, Laviolette participated inthe technical program and offered casestudies detailing how investments inequipment alone do not guaranteeimmediate returns. New technologieslike those filling the halls, he pointedout, can require new skills of the work-force, which mine operators do notalways anticipate. Interviewed after hispresentation, Laviolette said the hardtimes that hit the industry following theprevious Minexpo have sharpenedoperations’ focus on asset performance.“The challenge is getting the most outof the investment you make,” he said.

That challenge was on the mind ofmining systems and automation con-sultant Tim Skinner while walking theshowroom floor. He set out to ask engi-neers for original equipment manufac-turers questions like: “How does mycustomer find out if a shovel bucket ishanging, waiting for a truck, just byusing the onboard data?” and, “Howwould we get that information?” Skin-ner, a long-time advocate for betteraccess to data generated by equipmentand systems for mine operators, is alsoan executive on the new CIM GlobalMining Standards and Guidelines Com-mittee. The organization, created toestablish a common standard for dataexchange between original equipmentmanufacturers (OEMs) and mine opera-

news

De Beers Canada golfs for Hay River

De Beers Canada announced that it raised more than $60,000 for the Hay RiverHospital Foundation and Hay River Junior Golf at its fifth annual Charity Classic GolfTournament, held in the Northwest Territories last July. Since its launch in 2007, theevent has helped the diamonds giant raise $200,000. “The amazing success of theDe Beers Canada Charity Classic is due to the enthusiastic support and the gen-erosity of our tournament partners,” said De Beers Canada COO Glen Koropchuck.“The tournament is about having fun with our business and community partners,and raising money for a great cause. Golf scores are secondary.” Workers at thecompany’s Snap Lake mine participated in a “Charity Classic Mini Putt,” helpingraise $8,800 of the total. Around $26,500 will be used to purchase a medicationdispensing system for Hay River Health and Social Services.

The Dumas family sings

The Canadian National Institute for the Blind (CNIB) dedicated “Dumas Rock” at LakeJoseph Centre (Lake Joe) to DUMAS ROCKS!, the team from Dumas Consulting Ltd.which competed and won $25,000 in Global TV’s Canada Sings. Located inMuskoka, Ontario, the Lake Joseph Centre offers vision rehabilitation and recreationfor individuals who seek a safe and inclusive environment. Dumas executives decidedto gift another $10,000 to the CNIB cause, bringing the total to $35,000. “What dis-tinguishes Dumas employees is their big hearts and unwavering determination,” saidDumas CEO Burger Greeff. “The team gave countless hours of their time to practiceand compete, while still keeping pace at full-time jobs, all to support a very worthycause. We are very proud of our Canada Sings team, and for the great honour thatCNIB has bestowed upon us with the dedication of the Dumas Rock.”

Barrick Gold supports students

Barrick Gold Corp. announced it will work together with Communities In Schools ofNevada (CISN), committing $1.2 million by 2016 to fund programming in twoNevada middle schools: Marvin M. Sedway Middle School in North Las Vegas andAdobe Middle School in Elko. Poverty affects students in both schools; 85 per centof Sedway and 40 per cent of Adobe students currently live below the poverty line.This impacts their academic performance and may compel them to drop out ofschool. “The youth of Nevada are facing more challenges than ever, and we want togive them a better chance to succeed in school and graduate,” said Michael Brown,vice-president of corporate and external affairs at Barrick Gold.

GIVING BACK

tors, held its first general meeting at theevent. Skinner said he was pleased bythe enthusiasm of committee membersand encouraged by the progress that hasbeen made since Minexpo 2008.

“There seems to be more awarenessand discussion of the importance andneed to more easily access onboard

data,” said Skinner, who believes a lothas changed in the four years since thelast Minexpo. “There seems to be amovement to provide greater capabili-ties to allow this. Four years ago, ifyou had brought this up with theOEMs, they would have looked at youfunny.” CIM

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When Quebec’s Legislative Assem-bly was dissolved on August 1, the Charest government was unable to pass two significant legislative acts regarding resources, namely Bill-14 that would create a foundationfor an innovative mining developmentmodel, and Bill 27, a bill to establish the corporation La Société du PlanNord. Even the budget bill, whichnotably sought to modify the royaltyregime for land-based oil extraction,failed to pass.

This year’s election saw MartineOuellet, current minister of naturalresources, re-elected on the PartiQuébecois (PQ) ticket in Vachon.Ouellet actively worked to block Bills14 and 27. PQ candidates LorraineRichard (René-Lévesque) and Luc Fer-land (Ungava) were also re-elected.These two members of the national

Dark clouds over Plan NordPQ calls for revision of mining royalty regime

By Alain Castonguay

B En français p. 28

assembly used the time allotted tothem to delay the detailed study of billsin a parliamentary committee. Richardand Ferland, who have been very criti-cal of Plan Nord, beat out the incum-bent Quebec Liberal Party (PLQ)candidates in Fermont and Lebel-sur-Quévillon.

On August 23, in Montreal, theFédération des chambres de commercedu Québec used the election campaignas a chance to hold a debate on naturalresources. Participants included Mar-tine Ouellet, Raymond Bachand (PLQ,re-elected in Outremont) and GérardDeltell (Coalition Avenir Québec, re-elected in Chauveau). On this occa-sion, Ouellet emphasized her party’splatform, which she had been hawkingon the campaign trail: • The PQ wants to establish royalties

of five per cent on the gross value of

ore output, while increasing miningcompanies’ taxes on “supra-compet-itive profits.” Ouellet hammeredhome the oft-repeated argumentthat “only 10 out of 19 mining com-panies paid royalties in 2011.” Shecited the example of the Lac Bloomiron mine operated by Cliffs NaturalResources in Côte-Nord, “whichproduced three million tonnes ofiron ore without paying a singlepenny to the government.” The PQroyalties system would be based ona “hybrid model” like the one usedin Australia. She added that 25countries have already begun revis-ing their royalty regimes on theheels of increases in metal prices in2009.

• Before granting any new miningleases, the PQ will ask operators forfirm commitments on primary and

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The PLQ, now the official opposition party, lost sev-eral elected officials who were well-acquainted with allaspects of natural resource, mining, energy, andforestry development. Moreover, the PLQ was wipedoff the map in Abitibi-Témiscamingue, Saguenay-Lac-Saint-Jean, and Gaspésie, and still has no MP in Côte-Nord.

Clément Gignac, the Charest government’s ministerof natural resources and wildlife (MRNF) and ministerresponsible for Plan Nord, was unsuccessful in seekingre-election in his Taschereau riding. His predecessor atMRNF, Nathalie Normandeau, who was at the centre ofthe pomp and circumstance surrounding the May 2011inauguration of Plan Nord in Quebec City, left politics inSeptember 2011.

Another former MRNF minister and still a PLQ candi-date, Pierre Corbeil, was not re-elected in the Abitibi-Estriding. MNA Daniel Bernard, a geologist and former

PLQ loses experienced MNAs

president of the Quebec Mineral Exploration Associa-tion, did not run in the Rouyn-Noranda-Témiscamingueriding, yet another electoral district lost by the PLQ. Inthe Dubuc riding, Serge Simard, former vice-minister fornatural resources and wildlife, was also unseated by aPQ candidate.

In this case, it was the reeve of the regional countymunicipality of Fjord-du-Saguenay, Jean-Marie Claveau,who became the new MP for Dubuc.

Claveau sought to collect mining royalties directlyfrom Ressources d’Arianne Inc. for its phosphorus mineproject in Lac à Paul. Former PLQ minister of financeRaymond Bachand rejected that request, stating thatnatural resources “belong to all Quebecers” and notsimply to the residents of one MRC (MunicipalitéRégionale de Comté), and that the royalty system is inneed of revision.

By Alain Castonguay

022-029 News v9_Layout 1 2012-10-30 11:37 AM

November 2012 | 27

secondary processing of extractedore or metals in the province. Ouelletharshly criticized Stornoway’s deci-sion not to process diamonds fromthe Renard mine in Quebec.

• At the same time, Premier PaulineMarois has been floating the idea oftax credits for miners that transformtheir products in the province.

• Operators will have to pick up thetab for all infrastructure projects(roads, harbour facilities, railways,energy) related to Plan Nord mines.New mines will not automaticallybenefit from Rate L, the preferentialrate that Hydro-Québec offersmajor customers in the industrialsector.

• The Charest government recentlygranted municipalities and regionalcounty municipalities the right toexclude urban zones and holidaydestination lands from exploration

for 20 years to curb exploration ordevelopment. The PQ will not makechanges in this regard.

• The PQ government will require ahearing before Quebec’s environ-mental public consultation agencyBAPE (Bureau d’audiencespubliques sur l’environnement)before issuance of a mining leaseanywhere in Quebec. This was thestated intention of the Liberal gov-ernment as well.

• The conservation plan, whichincludes provisions for protecting50 per cent of Plan Nord territory,will be more carefully defined inorder to avoid creating “rollawayparks” with boundaries that changeas knowledge of the area’s resourcesevolves. The primary criterion willbe the level of social acceptance inaffected communities once pro-tected areas are established.

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• The PQ government will maintain amoratorium on development ofshale gas until testing of hydraulicfracking techniques is completed.Ouellet also denounced the agree-ment between Hydro-Québec andoil exploration companies concern-ing Anticosti Island. The PQ hopesto reduce Quebec’s oil dependencethrough policies to electrify publictransportation, while promotingrenewable energy sources. Thesepolicies will be subject to publicconsultation.

• The PQ will reinforce governmentintervention in projects involvingdevelopment of resources on PlanNord lands. In its platform, theMarois government adds that itintends to “foster full involvementof First Nations, the Inuit, and othernorthern peoples in the region’sdevelopment projects.”

Translated by Mark StoutCIM

022-029 News v9_Layout 1 2012-10-30 11:37 AM

http://www.eriez.com


Le résultat des élections provincialessonne-t-il le glas du Plan Nord, si cher àl’ex-premier ministre, Jean Charest? Sil’on se fie au programme électoral duParti québécois (PQ) et aux propos tenuspar ses députés et porte-parole alorsqu’ils étaient dans l’opposition, desnuages noirs pointent dans le ciel boréal.Même si le gouvernement du PQ estminoritaire, ses intentions concernantl’exploitation des ressources naturellesen général sont claires. Et les rangs déci-més de l’opposition rendront difficiletoute critique envers sa gestion du terri-toire et des ressources.

À la dissolution de l’Assemblée natio-nale le 1er août dernier, le gouvernementCharest n’avait pu faire adopter deux

Une ombre plane sur le Plan NordLe Parti québécois appelle à une révision du régime des redevances minières

Par Alain Castonguay

textes législatifs importants concernantles ressources : les projets de loi no 14,sur le nouveau régime minier, et no 27,créant la Société du Plan Nord. Même leprojet de loi budgétaire qui modifiaitnotamment le régime de redevancesvisant le pétrole extrait en milieu ter-restre n’a pas été adopté.

Martine Ouellet, porte-parole de l’op-position officielle en matière de mines,de gaz de schiste et de gaz à effet deserre, a été réélue sous la bannière du PQà Vachon. Mme Ouellet a activementcontribué à bloquer l’adoption des pro-jets de loi no14 et 27 en commission par-lementaire. Les candidats péquistesLorraine Richard (René-Lévesque) etLuc Ferland (Ungava) ont aussi été

réélus. Les deux députés ont mis à profitle temps qui leur a été imparti pourretarder l’étude détaillée des projets deloi en commission parlementaire. Mme

Richard et M. Ferland, qui se sont mon-trés très critiques envers le Plan Nord,l’ont emporté sur les candidats du Partilibéral du Québec (PLQ) occupant lessièges de maires à Fermont et à Lebel-sur-Quévillon.

Le 23 août dernier à Montréal, laFédération des chambres de commercedu Québec (FCCQ) a profité de la cam-pagne électorale pour tenir un débat surles ressources naturelles. Y participaientMartine Ouellet, Raymond Bachand(réélu pour le PLQ à Outremont) etGérard Deltell (réélu à Chauveau pour la

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Le Parti libéral du Québec (PLQ), devenu l’oppositionofficielle, a perdu plusieurs élus qui étaient bien au faitde tous les aspects touchant l’exploitation desressources naturelles, des mines à l’énergie en passantpar les forêts. Le PLQ a d’ailleurs été rayé de la carteélectorale en Abitibi-Témiscamingue, au Saguenay-Lac-Saint-Jean et en Gaspésie, et n’a toujours pas dedéputé en Côte-Nord.

Clément Gignac, ministre des Ressources naturelleset de la Faune (MRNF) et ministre responsable du PlanNord au sein du gouvernement Charest, n’a pu se faireélire dans la circonscription de Taschereau où il seprésentait. Sa prédécesseure au MRNF, Nathalie Nor-mandeau, a quitté la vie politique en septembre 2011.C’est elle qui avait permis de faire aboutir le Plan Nord,inauguré en grande pompe à Québec en mai 2011.

Jean D’Amour, adjoint parlementaire du ministre desRessources naturelles, et Sam Hamad, ancien titulairedu MRNF de 2003 à 2005, ont été réélus dans leur cir-conscription respective. Pierre Paradis, qui présidait lacommission parlementaire permanente de l’Assembléenationale sur l’énergie, les ressources et le territoire, aété réélu dans le comté d’Orford.

Le PLQ a perdu plusieursdéputés expérimentés

Un autre ancien titulaire du MRNF et candidat duPLQ, Pierre Corbeil, n’a pas été réélu dans la circon-scription d’Abitibi-Est. Le député Daniel Bernard, géo-logue et ancien directeur général de l’Association del’exploration minière du Québec (AEMQ), ne s’est pasreprésenté dans la circonscription de Rouyn-Noranda-Témiscamingue, autre comté perdu pour lePLQ. L’ex-ministre délégué aux Ressources naturelleset à la Faune, Serge Simard, a lui aussi été délogé deson siège par le candidat du PQ dans la circonscrip-tion de Dubuc.

Dans ce cas-ci, c’est le préfet de la MRC du Fjord-du-Saguenay, Jean-Marie Claveau, qui est devenu lenouveau député de Dubuc. M. Claveau réclamait desredevances minières directement à Ressources d’Ari-anne pour son projet de mine de phosphore du Lac àPaul. Le gouvernement Charest a déjà refusé cettedemande en déclarant, par l’entremise de l’ex-min-istre des Finances, Raymond Bachand, que lesressources naturelles « sont la propriété de tous lesQuébécois » et non pas seulement celle des habitantsd’une MRC. Aussi faut-il revoir le système de rede-vances.

Par Alain Castonguay

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November 2012 | 29

Coalition Avenir Québec). Le débat a étédiffusé en ligne par IDNR-TV sur You-Tube dans quatre vidéos d’une duréetotale d’environ 90 minutes. À cetteoccasion, Mme Ouellet n’a pas manquéde réitérer ce qu’elle déclare depuis desmois en commission parlementaire etqui est inscrit dans la plateforme élec-torale de son parti, à savoir que :• Le PQ veut établir une redevance de

5 % sur la valeur brute de produc-tion de minerais, et augmenter l’im-pôt des minières sur les profits jugés« excédentaires » (ou « surprofits »).Mme Ouellet a insisté sur l’argumentmaintes fois évoqué concernant lefait que « seules 10 compagniesminières sur 19 ont versé des rede-vances en 2011 ». Elle a notammentévoqué la mine de fer du lac Bloomexploitée par Cliffs en Côte-Nord« qui a produit 3 millions de tonnesde minerai de fer sans rien verser àl’État ». Le système de redevancesserait inspiré du « modèle hybrideaustralien ». Elle ajoute que 25 paysont déjà entrepris de réviser leurrégime de redevances dans la fouléede l’augmentation du prix desmétaux depuis 2009 ;

• Avant d’accorder tout nouveau bailminier, le PQ demandera des engage-ments fermes de la part desexploitants en matière de transforma-tion primaire et secondaire du min-erai ou du métal extrait. La députéeOuellet s’est montrée très critique àl’égard de la décision de Stornowayde ne pas transformer le diamant dela mine Renard au Québec ;

• En même temps, la première min-istre, Pauline Marois, a lancé l’idéedes crédits d’impôt pour les mineursqui transforment leurs produits dansla province ;

• Tous les projets d’infrastructure(routière, portuaire, ferroviaire,énergétique) associés aux mines duPlan Nord seront aux frais desexploitants miniers. Le gouverne-ment n’accordera pas automatique-ment aux nouvelles mines le tarif Lproposé par Hydro-Québec auxgrands clients du secteur industriel ;

• Le gouvernement Charest a accordéaux municipalités et aux municipal-ités régionales de comté (MRC) ledroit d’exclure pour 20 ans des zonesen milieu urbain ou territoires de vil-légiature, afin d’y restreindre touteforme d’exploration et d’exploitationdes ressources. Le PQ maintiendra cepouvoir accordé au monde munici-pal, tout en niant qu’il s’agit là d’undroit de veto ;

• Une audience du BAPE (Bureau d’au-diences publiques sur l’environ-nement) sera requise avant l’émissiondu bail minier partout au Québecsous le gouvernement du PQ, ce queprévoyait également le gouvernementlibéral ;

• Le plan de conservation qui prévoitde protéger 50 % du Plan Nord seramieux défini afin d’éviter la créationde « parcs à roulettes » dont onchange les limites en fonction del’évolution des connaissances sur lesressources du territoire. Le premiercritère sera l’acceptabilité sociale des

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communautés lors de la création desaires protégées ;

• Le gouvernement du PQ maintiendraun moratoire sur l’exploitation des gazde schiste tant que la technique defracturation hydraulique n’aura pas étééprouvée. Martine Ouellet dénoncel’entente entre Hydro-Québec et lessociétés d’exploration pétrolière con-cernant l’île d’Anticosti. Le PQsouhaite réduire la dépendance duQuébec au pétrole par une politiquesur l’électrification des transports, enplus de promouvoir les énergiesrenouvelables. Cette politique feral’objet d’une consultation publique.Le nouveau gouvernement Marois

renforcera l’intervention de l’État dansles projets touchant l’exploitation desressources sur le territoire du PlanNord. Dans sa plateforme (engagementno 34), il ajoute qu’il entend « favoriserla pleine participation des PremièresNations, des Inuits et des populationsnordiques aux projets de développe-ment de la région ». ICM

022-029 News v9_Layout 1 2012-10-30 11:37 AM


Will Canada stay the course as a free trader?

BY PIERRE GRATTON

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

In Canada, resource nationalism has typically been framedas something that happens elsewhere. But BHP Billiton’s2010 blocked bid for PotashCorp shook that perception.

Now, with China National Offshore Oil Company’s (CNOOC)$15.1-billion bid for Calgary-based Nexen Inc. at the centrestage of discussion, many are speculating whether similar pro-tectionist measures will prevail in this and future foreign take -over bids.

To determine the validity of concerns over resource nation-alism in Canada, we need to assess our trade, foreign directinvestment (FDI) and taxation regimes for competitivenessand consistency. This will provide a clearer picture of howopen Canada is to doing business with the rest of the world.

By and large, Canada’sresource taxation regime is verystable. A mixture of income andproduction taxes, with royaltiesat the federal and provincial lev-els, Canada’s taxation policy istailored to promote resourcedevelopment. Tax credits, Canada’s “flow through share”mechanism, accelerated deductions for exploration, develop-ment or equipment purchase and a federal corporate incometax rate of 15 per cent (the lowest rate in the G7), all con-tribute to the competitiveness and stability of Canada’sresource taxation regime.

What is more, Canada is currently embarking on the mostaggressive trade agenda in its history. Twice as many free tradeagreements are in negotiation (or have been concluded butnot yet implemented) as are currently in force. Further, thereare 24 active Foreign Investment Protection Agreements andanother 19 in negotiation. The last World Trade Organizationreport on Canada’s trade policy praises our strong economicperformance in weathering the global recession withoutresorting to protectionist trade measures.

FDI in Canada must successfully navigate the InvestmentCanada Act (ICA). Under the ICA, the minister of industrycan block any transaction valued at $299 million and above ifthe deal does not provide a demonstrable “net benefit” to thecountry, based on factors such as output and employment lev-els. Since the ICA was implemented in 1985, Industry Canadahas reviewed over 1,600 foreign acquisitions worth almost$600 billion, and has approved all but two.

Given the above, it seems concerns about Canada exert-ing control over the extractive process by constrainingprofits are unfounded. With respect to blocking FDI, theapproval numbers dwarf the blockages. However, sinceboth blockages occurred under the current government,

this concern may be exaggerated but is perhaps notentirely uncalled for.

A recent report by the Conference Board of Canada claimsthat “the failure of BHP Billiton’s acquisition of the PotashCorporation of Saskatchewan clearly shows that significantinvestments [in Canada] can be easily scuttled through short-term political calculations.” Perhaps when the business com-munity considers the CNOOC/Nexen deal, the ghost of BHPBilliton past rears its head.

A key link between FDI in Canada and the federal govern-ment’s aggressive trade expansion is that both require an“open for business” attitude, reputation and track record.Given projected trends in the global economy, the mainte-

nance of this reputation backedby the establishment of newmarkets and trading partners –particularly in Asia – is a highpriority of the federal govern-ment. Inconsistencies betweenthe government’s stated goals

and some of its actions – such as what occurred during theBHP bid – could have unintended consequences that extendwell beyond the CNOOC/Nexen Inc. transaction.

Between 2000 and 2010, China saw massive increases inthe production of aluminum (442 per cent), cement (220 percent) and steel (396 per cent). Simultaneously, the value ofChina’s imports of certain minerals increased significantly:iron ore by 42.5 times, thermal coal by 248 times and copperby 16.2 times. China is now responsible for consumingapproximately 40 per cent of the world’s base metals, and itsdemand outstrips its supply by a wide margin – a trend thatis likely to continue going forward.

In the CNOOC/Nexen deal, the stakes are even higherbecause of the value of the takeover (it would be China’slargest overseas energy acquisition) and the strategic impor-tance of China as a trading partner to Canada going forward.

When applying the net benefit to Canada, Ottawa shouldcarefully consider what is at stake. Given Canada’s globalleadership position as a mining powerhouse, the applicationof the “net benefit” to the Canada provision should includethe longer term view of a positive trading relationship withthe world’s largest consumer of minerals. It should also con-sider the downside risk ofblocking a third deal whileaggressively pursuing newtrading partners. CIM

Pierre Gratton is president and CEO of The Mining Association of Canada

“Perhaps when the businesscommunity considers the

CNOOC/Nexen deal, the ghost of BHP Billiton past rears its head.”

030-037 Columns v17_Layout 1 2012-10-30 11:37 AM

November 2012 | 31

its inherent risks with the Aboriginal party. These include thecapital intensive nature and the volatility of commodity prices,and the capital costs forecasted to make current operatingdecisions.

The developer must acknowledge that Aboriginal groupsare now seeking true financial participation, in which theyshare the risks and returns of the project to a certain extent.

All parties must agree on mutually fair and equitable partic-ipation provisions that recognize the value of the project as wellas the risks the developer is taking on. The developer should beprepared to initially discuss participation arrangements basedon the project’s estimated net cash flow, as opposed to revenue-based participation. The latter fails to fully recognize the con-struction, financial, and operational risks of the project, as wellas the developer’s requirement for capital expenditure recoveryand repayment of related debt as an absolute priority, alongwith the Internal Rate of Return hurdle.

Tax considerations Planning for the tax consequences of an IBA is a major area

that is often overlooked. The developer wants to maximizeproject returns by ensuring that benefits provided to the Abo-riginal parties qualify as deductions in income and/or miningduties. In order to secure maximum deductibility, all paymentsmust be identified and characterized appropriately. The devel-oper should pursue agreements to ensure support from theAboriginal party that payments will be treated as deductionsand also support limitations on government or similar Aborig-inal authorities to increase project taxation. Similarly, the Abo-riginal party can be assisted in minimizing any adverse taxconsequences. The goal is to maximize economic returns onan after-tax basis for all parties.

Planning the IBA process, especially the financial participa-tion and the equally important and necessary employment andcontracting benefit provisions, is essential for controlling nego-tiation costs, maximizing Aboriginal collaboration and meet-ing project phase scheduling milestones, all of which arecritical to the realization of the project. An IBA is best achievedand established when Aboriginal interests become ongoingand meaningful project proponents, and not opponents, in allcritical community support, environmental impact and otherregulatory matters. CIM

Negotiating a workable and enforceable Impact and Bene-fit Agreement (IBA) is a key step in bringing a miningproject to production. However, many developers are

unaware of and unprepared for the processes and challengesinvolved. The financial participation and economic benefitchapters of an IBA are often the most sensitive and taxing.These chapters include financial participation in productionby the Aboriginal group, contracting opportunities andemployment preference provisions.

First steps to a successful IBAMany Aboriginal groups do not have the resources to nego-

tiate a comprehensive IBA or to bear the costs of participatingin long and complex negotiations. The Aboriginal party alsotypically requires financial, legal and technical advisors, whichonly increases overhead. The developer is usually asked toreimburse a portion of the costs incurred in negotiating andexecuting the IBA. This funding allows the Aboriginal party toengage necessary experts in areas such as environmentalimpact studies so it can understand and support the projectduring the environmental permitting process. The developerand the Aboriginal party should agree on how to govern thebudget and finance the IBA process in advance. Furthermore,the developer should prohibit the funding it donates frombeing used in any future litigation that may occur between theAboriginal party and itself.

The developer should raise awareness of the project’s bene-fits in affected communities to align the parties’ interests andmaximize collaboration early in the process. This will allow fortimely implementation and development of employment andtraining programs, and will allow Aboriginal businesses to bidon supply contracts for the project.

Share information The developer’s ongoing provision of all relevant informa-

tion, including current resource and reserve estimates, is amajor factor in the quality and efficiency of the IBA negotia-tion process. This information is usually highly confidentialand must be subject to strict non-disclosure provisions.Appropriate policies and procedures dealing with publiccompany information must be recognized and adhered to byall parties.

Be prepared to make financial participation provisions

The developer should be aware of current national stan-dards for Aboriginal financial participation. It is important toreview the economies and realities of the mining industry and

Critical financial considerations in planning and negotiating an IBA

BY HARVEY SANDS

Harvey Sands is a partner at RSM Richter. His practice includes representationof and counsel to Aboriginal and First Nations groups in IBAs, as well as inbusiness investment negotiations. Regularly invited as a speaker atconferences, Harvey has lectured extensively on various Aboriginal advisory andtaxation matters, real estate and business advisory topics in Quebec, Nunavut,Ontario, and Newfoundland and Labrador.

columnsE Y E O N B U S I N E S S


inition removed the restriction that such scoping studiescould only be disclosed if they were undertaken at an earlystage of project evaluation prior to the completion of a PFS. Italso allowed a mining company to re-scope an advanced-stageproject, based on either a significant change in new informa-tion, or on an alternative mining or processing scenario.Importantly, the re-scoped project could include InferredMineral Resources in both the production schedules andfinancial analysis, as long as appropriate cautionary languageand other conditions, such as the basis for the PEA and theassumptions made by the Qualified Person, were met withinthe disclosure. However, it is important to keep in mind thedefinition explicitly states that PEAs are not a PFS or an FS.

In my opinion, some of the key takeaways from thenotice are:

CSA Staff Notice 43-307 Mining Technical Reports – Prelim-inary Assessments was published on August 16, 2012 toprovide additional guidance on Preliminary Economic

Assessment (PEA) disclosure standards.Since the new NI 43-101 rules took effect in June 2011, a

number of mining companies were required to clarify orretract their PEA disclosure because CSA staff considered thatthey did not meet the new definition of a PEA, or were blur-ring the boundaries between the different types of miningstudies. Of particular concern was that the new PEA allowancewas being used as a backdoor method to include Inferred Min-eral Resources in a Preliminary Feasibility Study (PFS) or aFeasibility Study (FS).

A significant change included in the June 30, 2011 revi-sions to NI 43-101 was a new definition for a PEA. This def-

CSA Staff Notice 43-307 provides important guidance

on disclosure of PEAsBY GREG GOSSON


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CSA staff point out that a PEA can only demonstrate thepotential viability of mineral resources and cannot be used tosupport mineral reserves. Only a PFS or an FS, which aremore comprehensive studies, are sufficient to demonstrateboth the technical and economic viability of a mineral projectand to support mineral reserve declaration. Therefore, anissuer should not imply that a PEA has demonstrated theeconomic viability of a mineral project, or refer to mineralresources as “ore.”

Do not state that some, or all, of the components of the PEAare done at the level of a PFS, as it blurs the boundarybetween these different types of mining studies. If some ofthe technical studies supporting a PEA are performed to ahigher level of detail (geotechnical or environmental baselinestudies, for example) then it is appropriate to identify thatinformation as being sufficient to support future, moreadvanced mining studies.

CSA staff cautioned that the use of a PEA to justify goingdirectly to an FS or a production decision could be viewed astreating the PEA as if it were a PFS or an FS. Companies con-sidering this course of action should clearly indicate in theirdisclosure why they are bypassing the industry-standardpractice – progression of a mineral project through miningstudies – and discuss the risks incurred by doing this.

CSA staff may challenge a PEA completed concurrently withor immediately after a PFS or an FS, if it includes InferredMineral Resources; this may be regarded as a way to avoidrestrictions on the use of Inferred Mineral Resources in theproduction schedules or financial analysis in a PFS or in anFS. This is particularly the case if the PEA and PFS or FS haveno significant differences in mine design or throughput rate.A re-scoped, advanced stage project done at a PEA levelshould have significantly different mining rates, mining orprocessing methods, changes to infrastructure, or the inclu-sion of a significant new discovery in the mine plan.

CSA staff can use the requirements for “a reasonable basis forforward-looking information,” stated under NI 51-102 Con-tinuous Disclosure Obligations, to challenge assumptions in aPEA that appear overly optimistic or aggressive. Companiesmay be required to provide additional information support-ing those assumptions or be required to revise the PEA usingmore reasonable assumptions (e.g. metal prices, mining costsand metal recoveries).

CSA Staff Notice 43-307 should be reviewed in its entirety byany company planning or completing a PEA. CIM

columns

Greg Gosson, PhD, P.Geo. is the technical director of Geology & Compliance forAMEC Americas Limited. He is a member of the CIM Standing Committee onMineral Reserve and Mineral Resource Definitions, and a member of CSAMining Technical Advisory and Monitoring Committee, which is an industryadvisory committee on NI 43-101.

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change perceptions. A post-visit questionnaire indicated the vis-itors’ perceptions had changed for the positive. This kind ofwork breaks down the unrealistic perceptions youth may haveabout the industry before the stereotypes they may have beenexposed to become fixed in their minds.

Another company has reviewed its advancement program toidentify and eliminate any systemic barriers to progression forAboriginal peoples and other groups. For instance, expectingemployees to self-promote for advancement opportunities canbe culturally inapt. Ensuring appropriate role models and men-torship can encourage advancement of under-represented groups.

A third company has identified high-performing Aboriginalemployees and engaged them in a career and succession plan-ning process with a consultant to help these individuals ad vancewithin the company. This investment in their employees’ futureswill provide inspiration to other Aboriginal employees.

What makes the difference?Leading change is not easy. Human resources departments

are often required to be reactive and put out fires, so even withthe noblest intentions, diversity and inclusion initiatives are puton the back burner. What makes the difference? There are threethings: (1) ensuring true commitment to diversity and inclusionfrom the company’s decision-makers, not simply providing afeel-good statement in the corporate brochure; (2) allocating ateam to the important task of diversity and inclusion, whereresults are tied to each member’s performance plan and bonusstructure; and (3) resourcing a solid, yet flexible, diversity andinclusion plan based on the realities of the communities inwhich the company operates, with education, labour and com-munity partners and strict timelines.

It is time to get creative about breaking through barriers thathinder the sector’s ability to attract, recruit, advance and retainunder-represented demographic groups. In a sector with suchproven problem-solving skills, technology, experience andintelligence, surely we can come up with solutions to improvepublic perception, to make working in mining more compati-ble with family life (with flexible schedules, work/life balance)and to improve access to education and training in remote areasfor those interested inmining careers. CIM

A s the director of attraction, retention and transition at theMining Industry Human Resources Council and a memberof the Women in Mining Canada Board of Directors for

2012, I have had the opportunity to be part of many interesting,forward-thinking discussions and initiatives related to diversityin Canada’s mining industry and the barriers that keep our sectorfrom being inclusive. Based on the conversations I have takenpart in over the last five years, there is a significant desire on thepart of human resources departments to make change.

Since June 2011, I have been working with eight companieson developing, implementing and measuring diversity andinclusion plans to literally change the faces of mining at compa-nies and on sites. The Take Action for Diversity Network, anorganization composed of some of Canada’s top mining employ-ers, including Vale, De Beers Canada, Noront Resources, BHPBilliton, Cameco, Iron Ore Company of Canada, Iamgold andTeck Resources Ltd., is committed to increasing engagement ofwomen, youth and Aboriginal peoples in the industry.

Over the past year, these companies have committed toimplementing creative and effective actions to increase diversitywithin their workforces. A complete report on this project willbe available at www.mihr.ca in spring 2013, but there arealready some good examples of creative solutions that haveemerged from the network’s efforts.

One company brought high school girls and their teachers toa local mine site to expose them to the environment and to help

H R O U T L O O K

Inclusion and diversity in mining: steps from dialogue to action

BY MELANIE STURK

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Melanie Sturk is the director of attraction, retention, and transition at theMining Industry Human Resources Council (MiHR), the national HR council forCanada’s minerals and metals industry. MiHR contributes to the strength,competiveness and sustainability of the mining industry by collaborating withall communities of interest in the development and implementation of HRsolutions. Melanie is responsible for the initiatives that encourage new workers,particularly those from under-represented groups, to engage in miningcareers that support the industry by enhancing workplace diversity.

Dushnisky gets promoted

Kelvin Dushnisky was promoted to the position of seniorexecutive vice-president at Barrick Gold Corp. In this role,Dushnisky will assume oversight responsibility for BarrickEnergy, the firm’s oil and gas enterprise, while continuing tomanage the parent company’s government relations, projectpermitting and approvals, corporate responsibility, investorrelations and communications. “This appointment reflects thestrategic and growing importance of Kelvin’s role in manag-ing a diverse set of increasingly complex issues facing Bar-rick and the global mining industry,” said Jamie Sokalsky,president and CEO at Barrick. “Kelvin has collaborated closelywith me over the past decade as a key member of the com-pany’s management team and has more than 25 years ofexperience in broad-ranging roles across the industry.” Dush-nisky has been with Barrick since 2002.

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November 2012 | 35

Strategies for eco-efficient comminutionIn many ore bodies, gangue surrounding valuable min-

erals are concentrated on mineral boundaries, so coarsematerial is often barren. New technologies and advanceddesigns have made coarse mineral separation more effec-tive and efficient; these include optical and X-ray sorting,continuous gravity concentration and magnetic separation.The advantages of adopting new technologies extendbeyond energy savings: one recent case study predicted athree per cent recovery increase on top of a 60 per centenergy consumption drop. Reduced operating costs alsoallow processing of lower grades, thus further increasingthe recoverable resource and total project value.

If you are looking to reduce energy consumption duringcomminution, here are some features to look for in tech-nologies you choose:

Smart blasting: improved explosives and blast patterns toproduce a finer, more consistent process feed, and a betterdelineation between ore and waste.

Coarse flotation and continuous gravity separation:coarser grind size is made possible by advances to flotationand separation processes.

New crushing and grinding technologies: high-pressuregrinding rolls, vertical shaft impactors and other technolo-gies yield finer crush sizes, liberating minerals along grainboundaries and improving the effectiveness of separationtechniques. The finer crush sizes allow for the use of moreenergy-efficient mills, like stirred mills, Isa mills and Plasmamills downstream.

More crushing, less grinding: a finer crush allows the use ofmore energy-efficient milling systems, as described above.

To learn more about how CEEC promotes new comminutionstrategies, visit www.ceecthefuture.org.

CIM

Elizabeth Lewis-Gray is the chair of the Coalition for Eco Efficient Comminution(CEEC) and co-founder of Gekko Systems. CEEC is a not-for-profit entityestablished by industry to promote the sharing of ideas and research with theobjective of facilitating the move to a more energy-efficient, economicallyrewarding future.

Comminution is the single biggest electricity consumeron the mine site. It is both a major capital cost and abottleneck for project development. In remote loca-

tions, supplying the required power for comminutionmeans building major infrastructure in the form of powerlines, pipelines and roads. More than half of the totalenergy used in the mining industry is for either crushing(18 per cent) or grinding (35 per cent). Grinding millsconsume only five per cent of energy for reducing ore par-ticle size; the remaining energy is wasted as heat and noise,and in destroying grinding media. This is hardly the mostefficient use of what amounts to four per cent of all elec-tricity consumed worldwide.

So can we do anything about it? Yes. There is plenty ofroom for improvement, and even incremental upgradesbring big benefits. By optimizing just three of their millingcircuits, for instance, Barrick is saving 60,000megawatt hours of power, or $5.2 million, each year.

Even larger gains will be made by looking at what,how and why we comminute with fresh eyes. If thereis no mineral in a rock, why waste energy breaking it?

The following strategies may help companiesdeveloping projects in remote locations build smaller, lessenergy-intensive plants that require less infrastructure andare more efficient.

Advanced mine modelling: The mine model can beextended to show more than grade and to predict morethan mining rates and costs. By including geometallurgi-cal parameters, such as metal content, haul costs, recov-erable grade, grinding index and liberation size, we cancalculate the cost and the reward of processing, stockpil-ing or rejecting any parcel of ore. Different mine plansand cut-off grades can be tested to determine which over-all strategy maximizes the economic return for the proj-ect,while minimizing energy use and the amount ofinfrastructure required.

Smart flowsheets – rejecting barren material before yougrind it: Traditional flowsheets reduce the entire ore to theliberation size of the valuable mineral in one energy-inten-sive stream, while smart flowsheets concentrate on remov-ing non-valuable material from the stream before the finalsize is reached. A smart flowsheet considers additionalphases: pre-concentration, which targets valuable materialsfor separate treatment; gangue rejection, which targets bar-ren material for removal; and pebble sorting, which removescoarse, hard-to-mill material.

Efficient comminution strategies cut costs and energy consumption

BY ELIZABETH LEWIS-GRAY

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tend not to document those decisions, as there is never timeto stop for paperwork before the next urgent issue arises.

I believe that improving the situation requires a seriouscommitment from management. Behavioural lapses – an indi-vidual taking shortcuts or not following the safety systems inplace – can result in a single fatality. However, a systemic fail-ure – where management has not put a sufficiently robustsafety system in place – can result in multiple fatalities. It ismanagement’s responsibility, with input from those on theground, to both create and maintain safe systems.

I suggest a conservative approach when dealing with riskassessments. The frequency of major hazards appears statis-tically low, but rather than assume this means that condi-tions that lead to major hazards need not be mitigated, it isbetter to think that these conditions are bound to happenand to investigate what real precautions and mitigationscould be appropriate. In short, management and workersmust see the real probability of major hazards, and investthe money and manpower necessary to avoid conditionsthat could lead to one. CIM

Ibelieve that in underground mining, there is a tendencyto underestimate how often conditions that could lead toa multiple fatality event occur. If these events – known

as major hazards – are seen as rare, they probably do notget the attention they deserve. While the statisticalapproach to safety is a fundamentally sound one and hasbeen used to great effect by both the nuclear and oil andgas industries, both sectors have experienced significantcatastrophes since 2010: the Deepwater Horizon oil rigspill in the Gulf of Mexico and the Fukushima nuclearfacility incident in Japan. But the truth is, any system isonly as good as the data it has to work with and the judg-ment of the people using that data. If the databases today’sengineers use to make decisions are incomplete, then thepossibility of underestimating the potential of a major haz-ard is very real.

In an underground context, a major hazard normallyresults from incidents like inrush or engulfment, a massivecollapse causing either an air blast or entrapment of workers,or a gas or dust explosion. Through my research and experi-ence, I see possible flaws in the commonly used risk manage-ment systems that explain why the industry has seensignificant improvements in safety overall, and yet continuesto see disasters which claim multiple lives.

A recent analysis indicated that only two multiple-fatal-ity air blast events in the underground, hard rock arenawere reported over the last hundred years. When I readthat, my thoughts went to an incident I encountered in the1980s. I had just seen the destructive power of an air blastand was blown away. At that stage, I had been working inunderground mining for about 10 years and had heard theterm ‘air blast’ but had not really understood its potential tocause a major hazard.

After witnessing the aftermath of the incident, I discussedmy impressions with some old hands who said: “This onewas nothing – you should have been here when the B4 col-lapsed, now that was an air blast!” One of them described thedestruction, detailing how an entire locomotive and ore carshad been blown off the tracks. I had never even heard of thatincident before. The air blast in the B4 had occurred on aSunday, when no one was at work in the mine. It did notappear in any reports because no one was killed or injured.Had it occurred 24 hours later, there could have been tens orhundreds of people killed.

Reflecting on these events made me realize that the min-ing industry’s database of serious incidents is understated. Iam not suggesting this is a cover-up; it is simply an outcomebased on the sort of people we are. Mining engineers tend tobe action-orientated people who make decisions readily. We

Are we underestimating risk?

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Burns becomes Goldcorp COO

Goldcorp Inc. named George Burns executive vice-presidentand COO. He replaced Steve Reid, who left the company topursue other interests. Burns has held various managementroles within Goldcorp since 2007 and has more than 30years of mining experience. He recently managed the nextphase of ramp-up at the company’s flagship Peñasquitooperation in Zacatecas, Mexico. “The depth and breadth ofGeorge’s industry experience, as well as his roles overseeingmany of Goldcorp’s largest mines and projects, make him theideal person to lead our operating team,” said ChuckJeannes, Goldcorp president and CEO. “His appointment isalso a testament to the strength of our organization in devel-oping the future leaders of the company internally. I look for-ward to working closely with him and the rest of ourleadership team to deliver steady, low-cost production fromour existing mines and to execute our next phase of growth.”

MOVING ON UP

Iain Ross is a mining engineer with over 30 years of underground experience,about half of which has been spent in the block/panel caving environment. Hehas worked in various commodities including gold, diamonds and copper inSouth Africa, Namibia, the United States and Australia. He is currently chiefadvisor, cave engineering with Rio Tinto.



Orbite Aluminae Inc. has big ambitions for its argillitedeposit, located near Grande-Vallée, in Gaspésie,Quebec. Besides extracting and processing alumina,Orbite plans to exploit the site’s potential for other

metals and rare earth elements. And the technology Orbitehas developed promises an alternative that avoids the toxicred mud problem, which has been a thorn in the side of thealuminum industry for decades. In fact, Orbite has the tech-nology to treat red mud as well.

Since the 1880s, the Bayer process has been used toextract alumina from bauxite ore. The presence of silicon inbauxite complicates alumina extraction, yielding two parts ofred mud to one part alumina as a by-product. It is such alarge problem that the quantity of red mud stored in holdingponds near processing plants worldwide is estimated at threebillion tonnes. “Some plants are close to being shut downbecause their red mud ponds are at maximum capacity,”explains Richard Boudreault, president, CEO and director ofOrbite Aluminae. He is pleased to say his argillite mine willnot add to that stockpile.

Boudreault’s company first processed alumina with itsnew technique at its pilot plant in Cap-Chat in early 2011,and expansion of the plant is now underway. Much of theequipment, including process vessels and control systems,has been delivered and structural work is nearing comple-

tion. The company hopes to havethe capacity to produce one tothree tonnes of high-purity alu-mina (HPA) per day by the end of2012, and five tonnes per day by2013. Once high-purity alumina production is generating revenue,the company will build a 7,000-tonne-per-day smelting grade alu-mina facility in order to achievefull production.

In late June, the company ann-ounced the signing of a memoran-dum of under standing with Indianaluminum giant Nalco, the thirdlargest aluminum producer in theworld. Nalco plans to evaluate theuse of Orbite’s technology to processboth its ore and red mud. If all goeswell for Orbite, Nalco could be a bighelp when it comes time to financethe smelting grade alumina facility.

Argillite requires new process“Our process works the other way around from the Bayer

process,” says Boudreault. “Ours is an acid process thatrequires special containers. The red mud holding ponds areformed by a basic process, with a pH of 13. Our technologyconsists of taking an acid, diluting each of the products, andseparating these products one by one. In the Bayer process,on the other hand, you grind up all the materials at one pH,give them time to break down – to be digested – then try toseparate them, which is more difficult to accomplish.”

Orbite’s process demands strict control of pH levels, andtoday’s improved digital tools provide for better monitoring.In addition, the equipment used during extraction needs tohave a glass lining to limit corrosion due to the acidity of theprocess. “This technology is a relatively recent developmentin the field of mining,” explains Boudreault.

With Orbite’s process, it is possible to recover the silicondioxide, magnesium oxide, hematite and rare earth elementsas by-products. Solid residues can be treated to make themchemically neutral; the resulting clay can then be used tomake bricks or roofing tiles.

Acid recycling, the central element of the process, makesit more cost-effective than the traditional Bayer method,according to Boudreault. Like the rest of the process, theacid-recycling loop also relies on the very latest technologicaldevelopments. Orbite produces high-purity alumina, with a

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Orbite Aluminae Inc.’s processing plant is under construction near Grand-Vallée, Quebec, and is slated for completionby the end of 2012.

Orbite launching into alumina marketAcid process yields high-purity product and no red mud

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market value of $50 to $100 per kilogram, compared to$300 per tonne for smelter-grade alumina. HPA is used in theproduction of light-emitting diodes (LEDs) and computerscreens, for example.

Their process will also enable Orbite to eventually pro-duce smelter-grade alumina (SGA), which is sold to fabricat-ing plants. By extracting this alumina at a lower cost, andwithout the red mud pollution of typical operations, Orbitehopes to blaze a new trail in the fiercely competitive world ofaluminum production. Boudreault says the company hasplans to improve the HPA extraction process to increase itspurity from 99.99 per cent to 99.9999 per cent, thus givingthe product additional added value.

Creating valueIn addition to Nalco, the Quebec-based company also

reached a memorandum of understanding with Rusal, theworld’s largest aluminum producer, to help build its plannedsmelting-grade alumina facility in Gaspésie – a project that isexpected to cost $500 million. The location of the plant hasnot yet been determined, but it is slated to be near Grande-Vallée or Murdochville.

In addition to the TSX, Boudreault has registered Orbiteon the OTCQX in New York, to gain access to a broadercapital market. “American investors see us as a green tech-nology company, and that is something that is not yet ashighly sought-after in Canada,” points out Boudreault.“The mining sector is often still associated with environ-mental problems, so our approach also seeks to change thisperception. In the United States, there is a better under-standing of our process, and what’s more, there are fundsavailable that focus on the clean technology industry. Thiswill help us grow the company and increase the sharevalue for stockholders.”

According to the preliminary assessment conducted byGenivar, the value of ore in Orbite’s deposit is estimated at $7billion. The deposit also includes rare earth elements andrare metals, such as scandium. “When you combine scan-dium with aluminum, you get an alloy that is almost assturdy as titanium, which means, for example, that you canreduce the weight of airplanes by 15 per cent to 20 per cent,”Boudreault says. “This is another very significant environ-mental advantage.”

The process developed by Orbite will also mean reduc-tions in the cost of extracting heavy rare earth elements. “Asa greater volume of rarer commodities becomes available,”Boudreault believes, “prices will go down. It will then be eas-ier to develop new products.”

Translated by Mark StoutCIM

November 2012 | 39



La société minière Orbite Aluminae inc. (« Orbite ») a degrandes ambitions pour son gisement d’argilite situéprès de Grande-Vallée, en Gaspésie. En plus d’y extrairede l’alumine, Orbite entend exploiter le potentiel du

site pour d’autres métaux et terres rares. Et la technologie alter-native qu’elle a mise au point permettrait d’éviter l’épineuxproblème environnemental que représentent les boues rougespour l’industrie de l’aluminium. En fait, Orbite possède latechnologie pour les traiter.

Depuis les années 1880, on utilise le procédé Bayer pourextraire l’alumine du minerai de bauxite. La présence de sili-cium dans le minerai complique l’extraction de l’alumine etcrée un sous-produit, la boue rouge, dont le volume est deuxfois plus important que celui de l’alumine. On estime àquelque 3 milliards de tonnes dans le monde la quantité deboues rouges entreposées dans des réservoirs près des usinesde transformation. « Certaines usines sont menacées de ferme-ture, car leurs lacs de boues rouges sont à pleine capacité »,

explique Richard Boudreault, président et chef de la directiond’Orbite Aluminae.

La société a produit de l’alumine pour la première fois à sonusine-pilote à Cap-Chat au début de 2011, et une extensionest en cours. Une grande partie de l’équipement, y compris lesnavires de processus et de systèmes de contrôle, a été livrée, etla construction extérieure est en voie d’achèvement. L’entre-prise espère avoir la capacité de produire d’une à trois tonnesd’alumine de haute pureté (HPA) par jour d’ici la fin de l’année2012, et cinq tonnes par jour d’ici 2013. Une fois que la pro-duction d’alumine de haute pureté générera des revenus, lasociété prévoit de construire une usine de fabrication d’alu-mine métallurgique d’une capacité de 7000 tonnes par jourpour atteindre la pleine production.

À la fin du mois de juin dernier, la société venait d’annoncerla signature d’un protocole d’entente avec le géant Nalco enInde, troisième producteur mondial d’aluminium, lequelentend utiliser la technologie d’Orbite pour le traitement desminerais et des boues rouges. Si tout va bien pour Orbite,Nalco pourrait l’aider lorsqu’il sera temps de financer l’usinede fabrication d’alumine métallurgique.

Nouvelle technologieLe procédé d’extraction de l’alumine utilisé par Orbite est

moins cher, justement parce qu’il ne produit pas de bouesrouges, ajoute le PDG d’Orbite. « Notre procédé fonctionne àl’inverse de celui de Bayer. Il s’agit d’un procédé acide quirequiert des conteneurs spéciaux. Les lacs de boues rouges seforment par un procédé basique, avec un pH de 13. Leprocédé Bayer est à l’opposé de notre technologie, laquelleconsiste à prendre un acide, à diluer chacun des produits et àles séparer un par un. Dans le procédé Bayer, au contraire, onbroie tous les matériaux dans le même pH, on les laisse sedécomposer, se digérer et on essaie ensuite de les séparer, cequi est plus difficile à faire. »

Le procédé d’Orbite exige un contrôle très strict du pH, etl’amélioration des outils numériques permet d’en assurer unmeilleur suivi. De plus, le matériel utilisé lors de l’extraction doitégalement comporter un revêtement en verre à l’intérieur, en rai-son de l’acidité du procédé et pour limiter la corrosion. « Cettetechnologie est relativement récente dans le domaine minier.Grâce à l’amélioration des outils informatiques, nous pourronséliminer la production de boues rouges », ajoute M. Boudreault.

Le procédé d’Orbite permet de récupérer les oxydes de sili-cium et de magnésium, l’hématite et les éléments de terresrares comme des sous-produits. Les résidus solides peuventêtre traités pour être chimiquement neutres, et l’argile peutalors servir à la production de briques ou de tuiles.

L’élément central du procédé qui le rend plus économique,ajoute-t-il, est le recyclage de l’acide. Cette boucle de recyclage

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Au terme d’un procédé de lixiviation où les boues rouges sont traitées, la technologied’Orbite génère comme résidu un produit sec, inerte et surtout neutre pourl’environnement et permet de réduire les volumes résiduels de plus de 90 pour centpar rapport à leur état initial.

Orbite produit de l’alumine en GaspésieUn procédé acide qui ne crée pas de boues rouges

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de l’acide dépend aussi de technologies très récentes. Elle per-mettra surtout à Orbite d’obtenir de l’HPA dont la valeur sur lemarché varie de 50 à 100 $ le kilo, en comparaison des 300 $la tonne pour l’alumine métallurgique. La HPA sert notam-ment à produire des ampoules à diode électroluminescente(LED) et des écrans d’ordinateur.

Elle permet également à Orbite de produire de l’aluminemétallurgique, laquelle est vendue aux usines de transforma-tion. En extrayant cette alumine à moindre coût et sans pollu-tion environnementale, Orbite pourra se frayer un chemindans cet univers où la concurrence est féroce. RichardBoudreault ajoute que l’entreprise projette d’améliorer leprocédé d’extraction de la HPA pour augmenter sa pureté de99,99 pour cent à 99,9999 pour cent, donnant ainsi unevaleur ajoutée supplémentaire au produit.

Créer de la valeurOutre Nalco, la société québécoise a aussi conclu un proto-

cole d’entente avec Rusal, le plus grand producteur mondiald’aluminium, et ce, relativement à son projet de constructiond’une usine de fabrication d’alumine métallurgique enGaspésie, un projet estimé à 500 millions $. L’emplacement del’usine n’est pas encore déterminé, mais il est prévu de la con-struire près de Grande-Vallée ou de Murdochville.

En plus de la Bourse de Toronto, Boudreault a enregistréOrbite sur le OTCQX à New York pour avoir accès à un marché

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du capital plus large. « Les investisseurs américains nous consid-èrent comme une société de technologies vertes dans l’industrieminière, et ce statut n’est pas encore très valorisé au Canada »,précise M. Boudreault. « Le secteur minier est encore souventassocié aux problèmes environnementaux, aussi notre démarcheconsiste à faire changer cette mentalité. Aux États-Unis, on com-prend mieux la valeur de notre procédé et il existe d’ailleurs desfonds spécialisés dans l’industrie des technologies propres. Celanous aidera à faire prendre de l’expansion à l’entreprise et à val-oriser l’action pour les détenteurs de titres. »

Selon l’évaluation préliminaire réalisée par Genivar, onestime à plus de 7 milliards $ la valeur des minerais présentsdans le gisement d’Orbite à l’heure actuelle. Le gisement deschiste argileux comporte aussi des éléments de terres rares etd’autres métaux rares, comme le scandium. « Quand on asso-cie le scandium à l’aluminium, on obtient un alliage qui estpresque aussi résistant que le titane, ce qui permet par exem-ple de réduire de 15 à 20 pour cent le poids des avions ou desautomobiles. Il s’agit là d’un autre avantage environnementaltrès important », fait observer le PDG d’Orbite.

Le procédé développé par l’entreprise permettra parailleurs de réduire le coût d’extraction des éléments de terresrares lourdes. « En rendant disponible un plus grand volumed’éléments plus rares, on fera baisser les prix. Il sera alors plusfacile de développer de nouveaux produits », conclut RichardBoudreault. ICM



The Republic of Guinea is a two-year-old democracywith a vast wealth of natural resources and an atmos-phere of perpetual change. The country is now, morethan ever, one of the most closely watched mining

jurisdictions in the world.Mining accounts for about 20 per cent of Guinea’s

US$11.6 billion GDP and over 80 per cent of its exports. Thesector also provides between 20 per cent and 25 per cent ofgovernment revenue and employment in direct and indirectjobs, according to the World Bank. Guinea is the world’s topexporter of bauxite, has massive underdeveloped iron orereserves and is one of the top five gold producers in WestAfrica.

Observers agree that the resources are lucrative, but thegovernment’s bumpy transition to democracy has added risk,as has a mining code review that began in earnest this year.

Guinean President Alpha Condé came to power in 2010during the first democratic elections the country has known.Since then, the government has implemented new mininglegislation, and subsequent contract renegotiations withcompanies were initiated earlier this year.

Included in the new legislation is a provision that wouldgive the government a 15-per-cent non-contributing stake inall projects and the option to acquire a further 20 per cent atmarket value.

Roddy Barclay, West Africa analyst at advisory firm Con-trol Risks, explains that the new mining legislation hasincreased investor uncertainty, and that even in a best-case

scenario, a well-managed, transparentprocess will still pit the governmentagainst mining companies.

“The revised code was driven by mar-ket factors – such as the commodityprice super-cycle and growing Asianinterest – and domestic political factors,with the government keen to recalibrateits relationship with investors andincrease its stake and take from the min-ing sector in order to begin to address thecountry’s pressing socio-economic chal-lenges,” Barclay says.

Negotiations are anticipated to bringmining industry participants in line withthe new mining code, which Barclayexpects will be used as a guiding toolrather than as a fixed framework. How-ever, he believes the government willstay firm on some conditions, such asthe ownership provision.

It is difficult to assess how the con-tract revisions and the timeline for their implementation aregoing to affect individual miners. Diana Asonova, aspokesperson for Nordgold, which controls the Lefa goldmine near the Mali border, explains that the new miningcode was recorded as having come into effect subsequent toits drafting in September 2011, although it was not madeavailable to the public until February of this year.

Asonova adds that Nordgold’s property has been guaran-teed by an agreement with the government, which pre-datesthe new mining law and contains a number of stabilizingprovisions, giving it priority over any newly implementedlaws that negatively affect terms and conditions. “However,we understand that there are still discussions ongoing regard-ing possible amendments to the new mining code, in partic-ular with respect to the tax regime,” she says.

Miner-community relationships in the balanceNordgold is investing in upgrades to its Guinean opera-

tions, and Lefa, acquired in 2010, is its top-producing asset.During a site visit in July of this year, COO Sergei Stepanovpointed out that capital intensive repairs the company hasmade will drive future production, and improvements areexpected to be completed by the end of the year.

Stepanov is optimistic. The company’s inviting journalistsand investment analysts to tour the mine site is indeed ashow of confidence. However, there are tensions in the com-munities surrounding the mine as a result of operations.One local source reports numerous unfulfilled promises of

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Rio Tinto’s investment in the Simandou deposit is one of the most significant signs of the promise Guinea holds.

No guts, no glory in GuineaRapidly evolving region challenges miners in search of great rewards

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development made by visiting government officials anduneven reimbursement of payments for land taken by themining company for expansion, with some payments beingmade by relevant government departments but not others.

Roddy Barclay explains that, across the country, tensionsover local employment and investment are likely to remain aprominent feature of the operating environment as the indus-try develops. Even with the best intentions, mining compa-nies will likely struggle to meet the massive expectations ofthe communities surrounding their projects.

The situation can turn violent. In August, clashes betweenvillagers demanding jobs and Guinean security forcesresulted in the deaths of five people in Zogota, a village neara mine site operated by Vale. After disappointing third quar-ter results this year, the Brazilian mining giant announced itwas sidelining its $5 billion project in the country withoutproviding a new start-up date, according to Reuters.

Speaking through an interpreter, Damantang Camara,Guinea’s minister of employment, technical education andvocational training, says the government has taken steps todecentralize control from the capital Conakry in a bid toaddress complaints from communities. For example, he says,Condé has stated that locally elected leadership in the vil-lages will become directly responsible for tax collection inorder to empower individual regions and provide more inde-pendence, though he adds that because these changes arerecent, he is not able to provide concrete details.

Camara believes that private-public partnerships willyield success for communities. A case in point is the planningof the Beyla Training Centre in the southeast of the countryby the government, in coordination with Rio Tinto, toadvance local skills development.

Those skills will be sorely needed to fuel major projectscurrently in the pipeline. Guinea is home to four billiontonnes of iron ore reserves, of which 2.25 billion tonnes arelocated at the Simandou deposit. Rio Tinto has identifiedSimandou as one of its top iron ore investments, announcing$1 billion (split with joint venture partner Chalco) in addi-tional spending in July for detailed design studies, earlyworks and long-term lead items, primarily for rail and portinfrastructure. Based on the current mine plan, Rio Tintoexpects small volume trucking by 2013, and rail and port, aswell as ramp-up, by 2015. In total, $3 billion has been com-mitted to the project to date.

“There is progress with early infrastructure works, suchas the construction of access roads and camps, [and] geot-echnical work and significant contract awards are now occur-ring,” says Illtud Harri, spokesperson for Rio Tinto, addingthat 3,000 employees and contractors were on the groundand that figure is expected to grow to 10,000 during construction.

Other majors, however, have reconsidered projectsagainst an economic backdrop of rising costs and fallingcommodity prices. BHP Billiton announced in July that it wasbacktracking on its Guinean projects.

November 2012 | 43

Corporate Social Responsibility &

Sustainability in MiningAddressing economic, environmental and social challenges

December 3 – 4, 2012 | Toronto

See www.insightinfo.com/csrsmining for the program details.

ENROLL TODAY! Call: 1 888 777-1707

Attendees will gain an advantage by gathering insight and perspective into top-of-the-mind issues such as:

• Building Mutual Benefits for Successful Community Development

• Addressing Water Challenges in Corporate Social Responsibility

• Recognizing and Mitigating the Risks of Bribery and Corruption in the Mining Sector

• Measuring the Success of CSR from Juniors to Major Mining Players: Best Practices and Lessons Learned

Political present, industry futureSince President Condé took office, there have been pro-

tracted delays to the legislative elections that should haveoccurred six months after he assumed the presidency.Although he has pledged the elections will finally take placeby the end of 2012, outstanding political and technical prob-lems following a standoff over electoral reforms are likely tosee this deadline slide, Barclay says.

But in the mining sector, there is much to look forwardto. Over the next year, Camara is optimistic about majorinfrastructure projects getting underway, namely road con-struction linking the rural regions between N’Zerekore andBeyla around the Simandou project. Another road project isexpected at Bellzone Mining’s Forecariah project in thesouth, located between Conakry and the Sierra Leoneanborder.

Australian-listed Bellzone Mining was granted a miningpermit in September, and the company announced the load-ing of its first barge of iron ore in July of this year. It hassigned offtake agreements for the life of the mine with com-modities trading giant Glencore as well.

Canada too is planting a flag of strategic interest; follow-ing the opening of CIM’s Dakar branch, further branches areexpected in Conakry and Ougadougou, Burkina Faso. CIM


http://www.insightinfo.com/csrsmining


The ore body that Compañia Minera Antamina hasbeen mining in Peru since 2001 contains two prin-cipal ore types: copper-molybdenum ores andmuch harder copper-zinc ores, which exist at about

a 70:30 ratio. Historically, the copper-zinc ores wereprocessed far slower than the copper-molybdenum ores, soit was clear that something needed to be done. A collabo-ration with Metso Process Technology and Innovation(PTI) was born in 2007 to optimize the entire comminu-tion process, from drilling and blasting, to crushing and grinding.

“The objective was to see how we could increase thethroughput of the copper-zinc ores,” says Ed Rybinski,process area manager for Antamina’s production optimiza-tion program. Before 2007, the copper-molybdenum orehad a throughput of 4,100 tonnes per hour, and the cop-per-zinc ore had a throughput of 2,800 tonnes per hour.

Road tripBefore beginning optimization work in Peru, Rybinski and

Frank Dávila, drill and blast general foreman from Antamina,accompanied Metso PTI vice-president Walter Valery andother Metso PTI employees on a visit to Newmont’s BatuHijau operation in Indonesia, where Metso PTI had doneextensive work. Batu Hijau’s optimization was conductedusing the same approach that was to be applied at Antamina– what Valery calls “mine-to-mill,” which relies heavily oncollecting data and detailed analysis to gain a full under-standing of the ores and processes. “We thought Batu Hijauprovided a good opportunity for Antamina to see the resultsof the project and discuss the process with the Newmont per-sonnel,” says Valery. Like Antamina, Batu Hijau had enlistedMetso PTI to help decrease the difference in throughputsachieved when treating hard and soft ore types. And also likeAntamina, the goal was achieved by tailoring the blast designfor the different ore types to provide consistently fine run-of-mine (ROM) fragmentation.

Rybinski says he was convinced that working with Metsowas the right thing to do before going to Indonesia. “Theobjective of the visits was to get some hands-on informationabout how the projects were managed, what they thoughtwere the keys to success, or the possible paths to failure, tohelp us develop our project,” he recalls. “I was impressed thatpeople from many areas – concentrator operations, metal-lurgy, drilling, blasting, geology and others – were all talkingabout mine-to-mill. It was not just one person running aproject in isolation. It was critical to get buy-in from concen-trator and mine, and from various levels of the organization,to ensure continued success for the program.”

Metso’s mine-to-mill process is a “structured methodol-ogy,” according to Valery. That means although mining oper-ations and the changes needed to optimize them vary fromsite to site, the methodology of the optimization processremains consistent.

More bang for your buckThe collaboration between Antamina and Metso PTI

began to take shape on site in Peru in early 2007. The teambegan by auditing Antamina’s drilling and blasting prac-tices, as well as auditing and sampling the crushing andgrinding circuits. This helped them develop models thatwould reveal what each step was achieving, and what couldbe tweaked to improve performance. “We were on site atAntamina on a number of occasions,” says Valery. “Webenchmarked how they were operating the mine and theprocessing plant. We calibrated our models and then we rana very large number of different scenarios of operatingstrategies in the mine and the plant.” This involved Metso’s

upfrontP R O C E S S I N G b y M a r t a S a m u e l

Mine-to-mill masteryAntamina boosts throughput for hard ores with support from Metso PTI

Samples were taken at all steps of the comminution process.

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in-depth review of existing blasting designs and comminu-tion circuit operation.

As in all mine-to-mill optimizations conducted by MetsoPTI, the ore was categorized into groups of varying hardness.Blasting practices were audited and blast fragmentation wasmeasured, which made it possible to benchmark existingpractices in the mine, and to define the main constraintsrelated to wall stability and control, ore dilution and environ-mental aspects.

Once the team created site-specific models for the entirecomminution process, it became evident that they wouldfind the largest potential gains in improvements to the blasts.The basic idea was to increase the powder factor – usingmore explosives to create finer ROM fragmentation – so thatdownstream equipment like the crusher and SAG mill wouldhave less trouble treating the copper-zinc ore.

In the drilling process, they decreased the drill pattern(burden and spacing) over time – from 7 m x 8 m to 6 m x7.5 m and finally to 5.5 m x 6.5 m. By maintaining the sametype and amount of explosives in each drill hole, the corre-sponding blast powder factor rose from 0.35 kg/tonne to0.43 kg/tonne and finally to 0.54 kg/tonne. In addition,switching to electronic detonators proved to be more reliableand ensured blasts went off according to plan. A number ofchanges were also made to the crusher, SAG and ball mill cir-cuits to ensure the benefits from the blasting changes wererealized for the overall process.

Metso cooperated with Antamina’s geologists, drill andblast engineers, and metallurgists in the plant. “We wanted tomake sure that what we were implementing was approved bythem and that we were all moving towards the right directiontogether,” said Valery. Metso staff offered internal workshopsand training programs for Antamina staff, and they worked

November 2012 | 45

Antamina’s harder copper-zinc ore before and after the mine-to-mill optimization

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together to collect necessarydata, understand the currentoperating practices and buildcollaboration with the differentgroups.

Serious improvementAs of 2011, Antamina was pro-

cessing copper-zinc ores at anaverage rate of 4,400 tonnes perhour; up 60 per cent from the per-formance prior to 2007. The cop-per-molybdenum ores also saw amore modest increase to 4,800tph. Three main factors allowedAntamina to achieve such largethroughput improvements:• Mine-to-mill optimization

work with Metso PTI, whichincreased throughput by 30per cent

• Projects led by Antamina inthe concentrator (including the installation of a pebblecrusher and modification to pulp lifters), which increasedthroughput by 10 per cent

• Reduction in hardness of the copper-zinc ores, whichincreased throughput by 15 per cent

Having done mine-to-mill optimizations at other sites, the30 per cent increase associated with the optimization of thedrill and blast and comminution circuit operation was one ofthe biggest gains Valery has seen. What is more, those gainswere accomplished without the purchase of additional drills,

and the same downstream equipmentbefore the optimization was still beingused. “There has been a huge increasein revenue for us because that’s addi-tional copper-zinc that we’re now pro-ducing in the mine,” Rybinski explains.

Overall, staff at both companies werepleased with the results, and for themost part, the process went smoothly.Of course, operating costs increasedsomewhat at the mine, but the gain inthroughput more than paid for theincreased cost of more explosives andthe drilling and blasting that wererequired. According to Valery, thoseexpenses were paid back within weeks.

“We wouldn’t have been able to dothis if the guys on site at Antamina andtheir operations weren’t on board,”points out Valery. “If they didn’tembrace it and if we didn’t have goodsupport from the top, it wouldn’t havesucceeded.”

Compañia Minera Antamina andMetso Process Technology and Innova-tion were awarded with the 2012Coalition for Eco-Efficient Comminu-tion Medal for their work together.

CIM


upfrontP R O C E S S I N G

Optimizing comminution at Antamina was a team effort.

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NEW – Certification in Ore Reserve Risk and Mine Planning OptimizationSpread over a period of four months, this four-week course isdesigned for busy mining professionals who wish to update theirskills and knowledge base in modern modelling techniques for orebodies and new risk-based optimization methodologies forstrategic mine planning. Gain practical experience by applyingthe following hands-on concepts and technical methods: methodsfor modelling ore bodies; stochastic simulations, case studies andmodels of geological uncertainty; and demand-driven productionscheduling and geological risk.

INSTRUCTOR: Roussos Dimitrakopoulos, McGill University, Canada •DATE: May 2013 • CITY: Montreal, Quebec, Canada • 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 yourcompany’s bottom line by utilizing strategic mine planningmethodologies and software; improve your understanding ofstrategic mine planning and life-of-mine optimization concepts, aswell as your understanding of the relationship of uncertainty andrisk, and how to exploit uncertainty in order to maximizeprofitability. Note: The strategic mine planning software used isWhittle. An optional half-day skills refresher workshop on Whittlemay be available.

INSTRUCTORS: Tarrant Elkington, Snowden, Australia; and RoussosDimitrakopoulos, McGill University, Canada • DATE: March 2013 • CITY:Montreal, Quebec, Canada

An Introduction to Cutoff Grade: Theory and Practice in Open Pit and Underground MinesCutoff grades are essential in determining the economic feasibilityand mine life of a project. Learn how to solve most cutoff gradeestimation problems by developing techniques and graphicalanalytical methods, about the relationship between cutoff gradesand the design of pushbacks in open pit mines, and theoptimization of block sizes in caving methods.

INSTRUCTOR: Jean-Michel Rendu, Newmont Mining Corporation, USA •DATE: September 2013 • CITY: Montreal, Quebec, Canada

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 ofresources/reserves through state-of-the-art statistical andgeostatistical techniques; how to apply geostatistics to predictdilution and adapt reserve estimates to that predicted dilution; howgeostatistics can help you categorize your resources in an objectivemanner; and how to understand principles of NI 43-101 and theSME Guide.

INSTRUCTORS: Marcelo Godoy, Golder Associates, Chile; Jean-MichelRendu, Newmont Mining Corporation, USA; and Roussos Dimitrakopoulos,McGill University, Canada • DATE: September 2013 • CITY: Montreal,Quebec, Canada

Mineral Project Evaluation Techniques and Applications: From Conventional Methods to Real OptionsLearn the basics of economic/financial evaluation techniques, aswell as the practical implementation of these techniques to mineralproject assessments; how to gain a practical understanding ofeconomic/ financial evaluation principles; and how to develop theskills necessary to apply these to support mineral project decisions.

INSTRUCTOR: Michel Bilodeau, McGill University, Canada • DATE:October 2013 • CITY: Montreal, Quebec, Canada

Quantitative Mineral Resource Assessments: An IntegratedApproach to Planning for Exploration Risk ReductionLearn about exploration risk analysis for strategic planning.Understand how to demonstrate how operational mineral depositmodels can reduce uncertainties; make estimates of the number ofundiscovered deposits; and integrate the information and examinethe economic possibilities.

INSTRUCTOR: Don Singer, USA; and David Menzie, U.S. GeologicalSurvey, USA • DATE: September 2013 • CITY: Montreal, Quebec, Canada


http://www.mcgill.ca/conted/prodep/ore


upfrontQ & A b y C o r r e y B a l d w i n

CRU bossExperience forges insight for Phil Newman, CEO of CRU Strategies

Left: Phil Newman, CEO of CRU Strategies. Right, above: as a mountain biker, Newman frequently finds himself in unusual places; Right, below: Newman has a flair forleadership.

With a clear grasp of the complexities of global com-modity economics, Phil Newman, CEO of CRUStrategies, has made a name for himself as a confi-dent, independent thinker. Whether mountain bik-

ing through rugged terrain or leading a team of hardworkinganalysts, Newman forges ahead with a determined work ethic.He is a leader with a clear vision and high standards, and ahealthy streak of optimism. Newman began his career as a min-ing engineer, but he harnessed his passion for the minerals andmetals markets, and now heads up one of the world’s premierconsultancies in that sphere. He chaired two panel discussionsat the latest Mining Business Risk Summit in Toronto, and willbe speaking at Mines and Money London in December.

CIM: What is going on in the industry that has got your attentionthese days?Newman: One of the things I’m quite passionate about, beingan engineer who follows the markets, rather than an econo-mist who follows the industry, is the belief that in the nextdecade we are going to see some significant technologicalbreakthroughs. With demand growth slowing, a lot of the

mining companies that succeed are going to be the ones thatembrace more innovation, have invested heavily in R&D orhave good partnerships with innovative suppliers.

Mining companies will want to increase their revenues andtheir margins, and they’ll do that more by decreasing theircosts than by increasing their volumes. And to really cut costs,I think there will be technological breakthroughs. So I think it’san exciting time if you are in the technological businesses.

The mining industry has a much different demographicnow compared to when the boom started. The industry hasattracted different people, and many of those are younger,more energetic and more creative. It has been a pretty darnsexy industry to be in for the last eight years and has attractedpeople from other backgrounds and other businesses.

CIM: We are seeing another shift as well. Managerial positionsare being filled by people with business degrees, rather thanengineering degrees. What impact do you think this will have?Newman: I would estimate that there are not as many peoplewith the 10 to 20 years of technical experience as there were ageneration ago.

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upfrontQ & A

I think it is great that the mining industry is attracting newblood; it needs people for sure, but there may be a warningsticker needed here. One of my senior colleagues, who is avery esteemed mineral economist with 40-plus years of expe-rience, has often bemoaned the lack of basic economics under-standing and commercial skills of many mining companyexecutives. Will he now bemoan the lack of technical under-standing of the mining industry by the new breed of miningexecutives? Let’s see if the new breed of managers, if such athing exists, can think of more imaginative ways to combatweakening prices than increasing production – historically thefirst line of defence to improve margins.

CIM: In light of this shift, is consultancy more important now?Newman: Definitely. You just have to look at the size of the bigtechnical consultants. They have grown enormously in the lastfew years. As far as our business is concerned, on the commer-cial-market side, growth has been solid. Certainly the use ofconsultants is more prevalent now than it was in the past, andI think it will continue to go that way.

Most of our clients are international clients. A lot more tendto be coming from developing countries. And some of theclients from developing countries are starting to learn the valueof consultants.

CIM: Where will consulting see its biggest changes in thecoming years?Newman: One of the things Chinese investors need to do isappreciate and understand the value of advice. That’s some-thing that they don’t always do. They have only been investingoverseas for 10 or 15 years and they’re not as sophisticated ininvesting in foreign cultures as perhaps Canadians might be.Canadians have a long history of investing in South America,for example. As have the Brits, as have the Americans, as havethe Australians. They’ve gone through this learning curve.

When we offer commercial advice in China on the subjectof overseas project investment, clients are interested in whatwe can offer but want to pay a success fee, which kind of goesagainst our “independent authority” tag line. What if ourstrong recommendation is to walk away?

CIM: Many countries, not just developing ones, are increasingtax rates now. So what is the best response?Newman: Companies look for stability – a stable tax rate, a sta-ble mining regulation. Let’s say a mining company is lookingat two projects, and one is in a country with, say, a five per centtax rate that has always been five per cent, and the otherinvestment is a similar type of project in a jurisdiction wherethe royalty rate is four per cent, but two years ago it was twoper cent, and a year before that it was one per cent. Now,although the royalty rate is lower, there’s inconsistency, and it’sunstable. That’s uncertainty. You’ve got your resource risk,metallurgical risks and environmental risks. The last thing youwant is a country where the mining regulations are changingevery two or three years.

CIM: Does this bode well for Canada, with its positiveinvestment environment?Newman: Don’t forget that Quebec actually changed its taxa-tion recently, slightly against the miners, and the Fraser Insti-tute dropped them down a couple of pegs. But it’s all relative.If you’re working in one of the provinces in Canada – andthere are quite a lot of provincial differences across Canada –you know that the rule of law will hold sway.

CIM: How do you see the interest in the chromite-rich area ofOntario’s Ring of Fire?Newman: Interest in chromite is not necessarily driven bythe discovery of fantastic new resources in places like north-ern Ontario, because I think people knew the resources werethere. It’s being driven by the increase in costs in SouthAfrica, which has always dominated the chrome industry.South African power costs are rising and will continue torise in the short term, as the country deals with a generalpower shortage. Eskom, the major power provider, is invest-ing in new capacity, and tariffs are rising to cover these costs.The impact on the ferroalloy industry globally could be sig-nificant since power is a major cost component. Newsources of ore in a politically stable country with competi-tive power and access to markets are going to generateinvestment interest. CIM

November 2012 | 49

Senécal joins MAC

MAC appointed JohanneSenécal as vice-president ofgovernment affairs and com-munications. A lawyer withextensive skills and experi-ence in the public and privatesectors, Senécal was a seniorconsultant with national gov-ernment relations companyStrategyCorp, where she sup-ported natural resourcescompanies, such as mining firms, with their public affairsagendas. “With more than 20 years of experience in boththe public and private sectors, Johanne is a skilled profes-sional who will help further our efforts in the realms of gov-ernment relations, public policy development and externalcommunications,” said Pierre Gratton, president and CEOof MAC. “Fluently bilingual, Johanne is a welcome additionto our team, bringing ideal expertise to her leadership posi-tion.” Senécal holds an LLL from the University of Ottawaand is a member of the Quebec Bar.

MOVING ON UP



050-055 Feature_Ring of Fire v7_Layout 1 2012-10-30 11:40 AM

November 2012 | 51

W hen Noront Resources made the first major discov-ery in the nascent mining region, dozens of juniorexploration companies rushed into the formidable

terrain of swamps, bogs, muskeg and mosquito-infested borealforest to stake claims. Located near the shores of McFauld’sLake, some 550 kilometres northeast of Thunder Bay, theregion has yielded three major finds: the Black Thor and BigDaddy chromite deposits, and the nearby Eagle’s Nest nickel-copper-platinum-palladium resource.

Cliffs Natural Resources bought all of Black Thor and owns70 per cent of Big Daddy. Together, those represent the firstmajor chromite discoveries in North America, and currentresource estimates indicate they may be large enough to sup-port multi-generational mines. At the moment, Cliffs intendsto develop Black Thor first, and is committed to investing $3.3billion in that mine and a smelter located at Capreol, just out-side Sudbury. Meanwhile, Noront is steadily developing itssmaller Eagle’s Nest property close by.

However, before either company ships a pound of metal tomarket, they have some difficult hurdles to clear.

Environmental assessmentsNoront has been operating in the shadow of Cliffs, largely

because its polymetallic deposits are not judged to be world-class scale, but Noront president and CEO Wes Hanson saysthe company aims to have an underground mine in produc-tion by late 2016 and hopes to be first to produce from theRing of Fire. The company released its feasibility study lastSeptember. Cliffs began its feasibility study in the spring andaims to conclude the study by June 2013. It currently antici-pates production in 2016.

In the meantime, several hundred kilometres of all-weatherroad must be built, likely from Nakina, on the CN’s east-westmainline, north to the Ring of Fire. Electrical transmission linesmay be built, or the companies may have to rely on diesel gen-erators. And both companies must also submit their projects tofederal and provincial environmental assessment agencies.

Those assessments are currently underway. In Ontario,mining companies are required to complete a seven-stepprocess that involves several rounds of consultation with thepublic and First Nations communities, and ministerialapproval at each stage. In the first round, the companies mustdescribe the project; the second requires a detailed assessmentof environmental impacts, measures to manage and mitigatethose impacts, and a record of public consultation. Before finalapproval is granted, the environment minister has the optionof submitting a project to a tribunal for public hearings or ofsending it to a mediator to resolve conflicts between propo-nents and surrounding communities.

According to a spokesperson for the Ontario Ministry of theEnvironment, both Cliffs and Noront are at the initial stage ofthe environmental assessment process. Cliffs has submittedterms of reference, or a description of the project, while Norontsubmitted a plan earlier this year but is currently revising it.

The duty to consultEqually important socio-economic agreements will have

to be signed with several Aboriginal communities whose tra-ditional lands will be affected by the developments. EachFirst Nation speaks for itself, and consensus may be difficultto achieve, but the Marten Falls band has signed a pre-devel-opment agreement with Cliffs, and in early September,signed a memorandum of understanding with the Ontariogovernment that defines the issues to be hammered out.“Infrastructure is one of the things we’ll be discussing,” saysthe band’s elected chief, Eli Moonias. “Connectivity to ourcommunities is another. That’s road access and electricity.Revenue-sharing is another thing we want to discuss. We alsowant to ensure that these projects don’t turn our environ-ment into a chemical soup.”

Marten Falls, a small, remote Anishinaabe communitylocated some 400 kilometres northeast of Thunder Bay, isaccessible by winter road and year-round by air, and relies ondiesel-generated electricity because it is beyond the province’spower grid. Half of the band’s 650 residents have scattered toother parts of the country in search of work. “There are no jobshere,” says Chief Moonias. “People are on welfare. Social con-ditions are bad. We need something to get us out of thepoverty we’re in.”

For the people of Marten Falls and for several other FirstNations, the Ring of Fire developments have the potential tobe that something. However, at this stage, at least one FirstNation has been pushing back against the advancing projects,and what the community regards as a lack of substantive con-sultation. “They are not listening to us,” says Peter Moonias,the 67-year-old chief of the Neskantaga First Nation, whichhas a population of some 450. “They’re bullying us. Theythink we’re non-existent and have no rights. This is a smallcommunity, but it’s a community with rights.” The band has sofar been frustrated in its attempts to be formally included inthe development planning of the Ring of Fire.

RING OF FIRE

Cliffs’ chromite and Noront’s neighbouring nickel-sulphide projects will pave the wayfor future development.

(Left) MacDonald Mines Exploration’s Butler campCourtesy of MacDonald Mines Exploration

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Rick Bartolucci, Ontario’s minister of minesand northern development, says the provincialgovernment is committed to broad consulta-tions with all the affected First Nations com-munities to ensure that the potentialeco nomic, social, cultural and environmentalimpacts are taken into account before develop-ment proceeds. “We’re responding with newapproaches to complement existing regulatorytools,” points out Bartolucci. “We’ve agreed todiscuss revenue-sharing. Our discussions areat a very, very preliminary stage, but that is avery important issue with the First Nations inthe Ring of Fire.”

Patricia Persico, Cliffs communications direc-tor, acknowledged that the pace of discussionswith different First Nations communities isuneven. “We have made progress with some FirstNation communities to help make this project areality. For other communities, we have reachedout to the leadership to discuss the project, butwe have to be invited in,” she explains. “We wantto be respectful – there is a lot at stake.”

Eager for developmentThe Ontario government is keen to get the

projects off the ground and to begin develop-ing the region. “We have a unique opportunityto open up the Far North,” says Bartolucci,“We want to maximize the potential of theRing of Fire.”

One major step forward occurred in Maywhen Cliffs announced it would build a smelterin Capreol, thereby ending speculation that itmight be built elsewhere, perhaps in the U.S. or

even in Quebec, where lower hydro rates pro-vide a cost advantage. “The commitment tobuild the mine and the smelter is going to pro-vide enormous job opportunities for northernOntarians,” says Bartolucci.

And despite his apprehensions, Neskantaga’sChief Moonias acknowledges that his commu-nity would inevitably be better off with all-weather road access and power lines that wouldend its dependency on expensive, diesel-gener-ated electricity. He notes that a loaf of breadcosts at least $4.95 and can be many timeshigher as supplies dwindle. A litre of gas rangesfrom $2.19 to $2.79. “It really doesn’t makesense not be connected,” he stresses.

Noront has been actively courting the threecommunities most directly affected by the Ringof Fire projects: Marten Falls, Webequie andNeskantaga. Both Noront and Cliffs have heldopen house meetings in First Nations communi-ties across the region. “We continue to makeprogress,” says Glenn Nolan, Noront’s vice-pres-ident, Aboriginal affairs, adding that he has notencountered any opposition that might jeopard-ize the company’s venture. Nolan is a formerchief of the Missanabie Cree First Nation, nearWawa, Ontario, and a mining industry veteranwho used to own a company that outfitted smallexploration camps.

Nolan says there is an eagerness to partici-pate. His discussions have centred on jobs,training and the infrastructure that would pro-vide the First Nations communities with year-round access roads, cheaper electricity andfaster, more reliable internet connections.

2002 • De Beers Canada, exploring for diamonds, discoverscopper and zinc massivesulphides at McFaulds Lakejoint venture with KWGResources and SpiderResources. First staking rushfollows.

2006 • Joint venture between Freewest Resources Canada,Spider and KWG discoversBig Daddy chromite deposit.

The road to development

Accommodations at the Butler camp

2007 • Noront Resources discoversEagle One nickel-copper-platinum-palladium deposit.Discoverers Richard Nemisand John Harvey name theregion “Ring of Fire” after theJohnny Cash song.

• Second, larger staking rushensues.

• $120 million invested inexploration over the nextthree years.

2008 • Noront discovers Eagle Twonickel-copper-PGE depositand Blackbird chromitedeposit.

• Noront becomes top-rankedcompany in mining categoryon TSX Venture 50.

2009 • Freewest discovers BlackThor chromite deposit.

• Noront takeover bid forFreewest fails.

• Ontario’s Mining Actamended to addressconflicts between explorersand other land users.Industry and Aboriginalgroups continue to criticizepolicy.

2010 • Ontario commits $45 millionover three years to northernskills training program andcreates Ring of Fire Secretariatto coordinate regionalinformation.

• Webequie and Marten FallsFirst Nations launch two-monthblockade of landing strips atKoper Lake and McFaulds Lake,in protest of construction.

• Cliffs Natural Resources buysBlack Thor deposit for $240million.

• Cliffs acquires Spider andFreewest, giving it control overthe Big Daddy deposit.

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“They are looking for ways to maximizetheir participation,” explains Nolan. “Youwant to see that thirst to participate. TheRing of Fire is a game-changer for thesecommunities. In the past, nothing hasworked to bring in all-season, access roadsand high-speed internet.”

The road forwardInfrastructure requirements may be

the most complex piece of the puzzlebecause the companies involved haveconflicting views about what should bebuilt, who should cover the costs, andwho, ultimately, would own and maintainthe infrastructure. A road could double asa utility corridor to bring power into themines. The First Nations would likespurs built off a main road into theircommunities and power lines to deliver electricity.

Noront and some First Nations communities advocated foran east-west route that would, in fact, be an extension ofOntario Road 559 that meanders north from Ignace on theTrans-Canada Highway, about 225 kilometres west of ThunderBay, to Pickle Lake and then still further north to WindigoLake. A 200-kilometre winter road currently runs east toWebequie First Nation, and Noront has pushed the idea ofconverting that to an all-weather route.

However, the route currently taking shape is a 340-kilome-tre north-south road that would begin at, or near, Nakina onthe CN line and end at McFaulds Lake. Bruce Hodgman, vice-president of communications with KWG Resources, says hiscompany has staked a ridge of sand and coarser aggregates thathappen to run almost the full distance from the CN line toMcFaulds Lake. The company, which is the minority owner inthe Big Daddy project, has spent some $15 million on engi-neering studies that demonstrate the viability of using thematerial as a railway bed. The provincial government hasalready expressed its commitment to help pay for the privatepay-for-use road.

“It’s almost perfectly north-south,” says Hodgman. “It’sjust luck that this very direct route exists. You need aggre-gate to build a road, and you need local sources because itisn’t economical to ship aggregate. It’s swamp on either sideof the ridge.”

Even with all that aggregate, construction will still be achallenge. There are more than 90 water crossings along thenorth-west route. While most of these crossings can be chan-nelled through culverts, there are four rivers to be crossed, andseveral bridges will have to be built.

And the physical difficulty of creating the transportationcorridor is being exacerbated by a tense relationship betweenBig Daddy partners KWG Resources Inc. and Cliffs. Cliffs hasapplied to the Ontario Ministry of Natural Resources for ease-ments that would allow it to build a road along the ridge, butKWG is opposing the application with the provincial mining

and lands commissioner. KWG is insteadpushing for a railway that would cost anestimated $2.2 billion, arguing it would bethe best long-term infrastructure solution.“A road is a logical first step,” says Cliffs’ Per-sico. She adds that “long term we would liketo see rail infrastructure into the Ring ofFire; however, the cost is prohibitive, andcan’t be justified by one project.”

To be sure, KWG will do anything it canto get Bid Daddy off the ground as soon aspossible. “At the end of the day,” says Hodg-man, “we think there’s a solution that satis-fies all stakeholders.” But Cliffs plans tomine its 100-per-cent-owned Black Thordeposit first. And they have developedplans for two open pit operations, eachwith a life span of 10 years to 15 years,before going underground. Meanwhile, the

Big Daddy project would sit.In September, Cliffs pushed back the projected production

date for Black Thor a year to 2016. The project remains a pri-ority for the company, but the decision highlights how, whenopening up a new frontier in mining, ambition and ingenuityare essential, but so is patience. CIM

RING OF FIRE

Glenn Nolan, Noront Resources’ vice-president of Aboriginal affairs

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From a geological perspective, the Ring ofFire region contains a little somethingfor everyone. Since De Beers’ 2002 dis-

covery of a copper and zinc-rich volcanogenicmassive sulphide deposit at Eagle One, explor-ers have uncovered chromite, nickel, gold,vanadium, iron and platinum group elementsin and around the iconic crescent-shaped clus-ter of claims. But the extensive cash andpatience required to operate in Ontario’s farnorth have turned junior exploration into awaiting game, as a few high-profile projectspromise to open up inaccessible land to fur-ther development.

The region’s two heavyweights, Cliffs Natu-ral Resources and Noront Resources, are eachadvancing a major project to the developmentstage. That does not lend itself to funder-friendly hype for explorers. “Where we are

now in the cycle, there’s not as much flamingnews coming out,” says Garry Clark, executivedirector of the Ontario Prospectors Associa-tion. And in a generally dry investment cli-mate, he adds, even strong drill results do notseem to move markets.

Operating costsExploring in the Ring of Fire – 300 kilo-

metres from the nearest road or rail – takesserious money. Michael Murphy, spokesper-son for exploration junior White PineResources, sketches out the figures: “Dia-mond drilling costs are approximately $750per metre for a small drilling program. Acomparable cost in the historical miningcamps of Ontario and Quebec would be inthe $150 per metre range.” Last year, onecompany spent $1 million drilling 1,000

2011 • Marten Falls First Nationblockades work camp usedby KWG Resources andFancamp Exploration todraw attention toenvironmental andprocedural concerns.

• Chinese steelmakerBaosteel buys 19.9 per centof Noront.

• Cliffs files projectdescription for Black Thorproject, starting formalenvironmental assessmentprocess.

• Over $50 million spent onexploration in the region.30,000 claims held by 35companies.

2012 • Cliffs announces feasibilitystudy phase of $3.3-billionchromite project, includingBlack Thor mine, $600-million transport corridorand $1.8-billionferrochrome plant nearSudbury.

• Noront releases feasibilitystudy for Eagle’s Nestproject with initial capitalcost of $609 million.

• Province of Ontario affirms itwill provide financialsupport to build an all-season north-south roadbetween McFaulds Lakeand Nakina.

2013 • Cliffs aims to have allpermits and environmentalassessment approvals for itsBlack Thor project by year’send.

2016 • Production projected tobegin at Eagle’s Nest.

• Production projected tobegin at Black Thor.

Slow burnRing of Fire tests the resources

of mineral explorers By Eavan Moore


High costs and limited funding have thinned out thenumber of companies exploring the Ring of Fire.

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metres, according to James Trusler, president and CEO ofPlatinex.

The time and money required to establish working rela-tionships with First Nations adds another layer of complex-ity. John Harvey, a member of the team that discovered EagleOne and now chief operating officer at Bold Ventures, con-siders this the biggest obstacle facing explorers seeking theirlicence to operate in the James Bay Lowlands. “It took us 18months to get an agreement with Attawapiskat,” he says.“Most companies don’t want to get into that. They can’t guar-antee they’re going to be able to stay in that long.”

As a result, the number of claim holders has dwindled. Atone point in 2011, 35 companies held 30,000 claim units inthe Ring of Fire. As of August 2012, 21 companies held only16,435 claims.

Of those 21 companies, some continue to activelyexplore. In 2012, Cliffs and KWG Resources drilled furtheron their Big Daddy chromite deposit, updating the Meas-ured Resource to 29.5 million tonnes grading 29 per centchromium and the Indicated Resource to 7.9 million tonnesgrading 26.7 per cent chromium. Northern Shield Resourcesand Discovery Harbour Resources Corp. intersected strongcopper-zinc mineralization at their Wabassi property,including grades of up to 44.74 per cent zinc. MacDonaldMines Exploration Inc. wrapped up a summer drilling cam-paign on its Butler property with further definition of apotential world-class volcanogenic massive sulphide miner-alization. In all, exploration spending is projected toincrease from more than $50 million in 2011 to more than$80 million in 2012.

Keeping an iron in the fire“The potential in the Ring of Fire is huge,” says Quentin

Yarie, senior vice-president, exploration at MacDonald Mines

Exploration, explaining why his company remains commit-ted to the area after nine years. “The lack of outcrop in theRing of Fire means that you must initially rely on airborneand ground geophysics as your primary targeting tool. Since2004 the industry has seen significant advancements in thesetechnologies and they have greatly added to the explorationprocess in the Ring of Fire.

If you look at the suite of minerals discovered in theregion: chromite, nickel, gold, silver, copper, et cetera, andwith the commitment by the Ontario government to developthe area, it is not hard to see we that are witnessing the birthof a new mining camp in Canada,” says Yarie.

Other firms are holding off on anything beyond remotedetection, doing the minimum work required to keep theirclaims in good standing while they wait for infrastructureand social conditions to improve. Platinex cut its holdings bytwo thirds. It conducted an airborne survey to keep theremaining claims another four or five years and focused onits South Timmins gold properties in the hope of returningnorth to find platinum.

The length of the wait to come depends largely on theprojects proposed by Cliffs and KWG. Cliffs plans to build apermanent all-season road running 260 kilometres south tothe closest CN rail connection to transport concentrate fromits Black Thor project. Preliminary talks indicate that theprovince of Ontario would contribute financially, and thatthe road would be available for other industrial users. Thesemost advanced projects are likely to continue setting the tonefor negotiations with First Nations as well.

Meanwhile, the next generation of explorers will bidetheir time perusing claims maps and the latest Ontario Geo-logical Society data, seeking to pinpoint where, out of the5,000 square kilometres in the Ring of Fire, their fortunemight be made. CIM

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La quête du feuPar D’Arcy Jenish

Personne ne doute du potentiel énorme que présente leCercle de feu de la région des basses-terres de la baieJames, en Ontario. Il est clair que les grands gisements

de chromite ainsi que les autres métaux de base et métaux pré-cieux occuperont les sociétés minières pour des dizaines d’an-nées. Il y a toutefois beaucoup de travail à réaliser avant depouvoir concrétiser ce rêve.

Lorsque Noront Resources a fait la première grande décou-verte dans la région minière naissante, des douzaines de petitesentreprises d’exploration se sont ruées sur ce redoutable terrainde marécages, de tourbières et de moustique de la forêt boréalepour jalonner des claims. La région, située près des rives deMcFauld Lake, à environ 550 kilomètres au nord-est de Thun-der Bay, a fait l’objet de trois grandes découvertes : Les gise-ments de chromite Black Thor et Big Daddy et le gisementvoisin de nickel-cuivre-platine-palladium d’Eagle’s Nest.

Cliffs Natural Resources a acquis l’ensemble du gisementBlack Thor et détient 70 pour cent de Big Daddy. Ces deuxgisements représentent les premières découvertes importantesde chromite en Amérique du Nord et les estimations deressources actuelles indiquent qu’ils pourraient être suffisam-ment grands pour soutenir des mines multigénérationnelles.En ce moment, Cliffs a l’intention de développer Black Thoren premier et s’est engagée à investir 3,3 milliards de dollarsdans cette mine et dans une fonderie située à Capreol, tout

près de Sudbury. Pendant ce temps, Noront travaille contin-uellement au développement de sa plus petite propriété voi-sine d’Eagle’s Nest.

Toutefois, avant qu’une de ces entreprises puisse expédierune livre de métal sur le marché, il y a des obstacles difficiles àfranchir.

Évaluations environnementalesNoront mène ses activités dans l’ombre de Cliffs, principale-

ment parce qu’on ne croit pas que ses gisements polymé-talliques sont de classe mondiale. Le président et directeurgénéral de Noront, Wes Hanson, affirme toutefois que l’entre-prise a pour objectif d’avoir une mine souterraine en activitéd’ici la fin 2016 et espère être la première entreprise à produiredans le cercle de feu. L’entreprise a publié son étude de faisabil-ité en septembre dernier. Cliffs, dont l’étude de faisabilité acommencé au printemps, a pour objectif d’avoir terminé l’étuded’ici juin 2013 et prévoit entrer en production en 2016.

Il faut construire plusieurs centaines de kilomètres de routestoutes saisons, probablement depuis Nakina sur la voie princi-pale est-ouest du CN, au nord du cercle de feu. On pourraitconstruire des lignes de transport d’électricité, sinon les entre-prises risquent de dépendre de génératrices diesels. Les deuxentreprises doivent soumettre leur projet à des évaluationsenvironnementales fédérale et provinciale.

Paul Semple, directeur de l’exploitation Noront Resources (à gauche), a reçu le chef du Parti progressiste-conservateur de l’Ontario, Tim Hudak, et d’autres législateursprovinciaux à Eagle Nest plus tôt cette année.

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Ces évaluations sont actuellement en cours. En Ontario, lessociétés minières doivent réaliser un processus en sept étapesqui comprend plusieurs phases de consultation auprès du pub-lic et des collectivités des Premières nations, ainsi que l’appro-bation ministérielle à chaque étape. À la première étape, lessociétés doivent fournir une description du projet. La deuxièmeétape exige une évaluation détaillée des impacts sur l’environ-nement, les mesures de gestion et d’atténuation de ces impactset un rapport de la consultation publique. Avant l’octroi de l’ap-probation finale, le ministre de l’environnement à la possibilitéde soumettre un projet à un tribunal pour la tenue d’audiencespubliques ou de l’envoyer à un médiateur chargé de résoudreles conflits entre les promoteurs et les collectivités avoisinantes.

Selon un porte-parole du ministère de l’Environnement del’Ontario, Cliffs et Noront n’en sont qu’à l’étape initiale du proces-sus d’évaluation environnementale. Cliffs a soumis le mandat, ouune description du projet, et Noront a soumis un plan au débutde la présente année, mais est actuellement à le réviser.

Le devoir de consulterIl est tout aussi important de signer des ententes socio-

économiques avec plusieurs communautés autochtones dontles terres ancestrales subiront les impacts des projets dedéveloppement. Chaque Première nation parlent en son nom etil peut être difficile d’en arriver à un consensus, mais la bandede Marten Falls a signé une entente de prédéveloppement avecCliffs et, au début de septembre, a signé un protocole d’ententeavec le gouvernement de l’Ontario, qui établit les problèmes àrésoudre. « L’infrastructure sera un des points de discussions,affirme le chef élu de la bande, Eli Moonias. La liaison à noscommunautés est un autre point. Elle comprend l’accès routieret l’électricité. Nous voulons également discuter du partage desrevenus. Nous voulons également nous assurer que ces projetsne transforment pas notre environnement en soupe de produitschimiques. »

Marten Falls, une petite communauté Anishinaabe éloignée,située à environ 400 kilomètres au nord-est de Thunder Bay, estaccessible par une route d’hiver ou par avion toute l’année etdépend de l’électricité produite par des génératrices diesels, carelle est située au-delà du réseau électrique de la province. Lamoitié des 650 résidents de la bande se sont dispersés ailleursdans le pays à la recherche de travail ou d’une autre occasion.« Il n’y a pas d’emploi ici, affirme le chef Moonias. Les gensvivent de l’assistance sociale. Les conditions sociales sont mau-vaises. Nous avons besoin de quelque chose pour nous sortir dela pauvreté. »

Pour la population de Marten Falls et de plusieurs autresPremières nations, les projets de développement du cercle defeu ont le potentiel d’être ce dont ils ont besoin. Toutefois,jusqu’à présent, une Première nation s’est levée contre les pro-jets en cours, car la communauté considère qu’il y a eu unmanque de consultations approfondies. « Ils ne nous écoutentpas », affirme Peter Moonias, le chef de 67 ans de la Premièrenation Neskantaga, dont la population s’élève à 450 personnes.« Ils nous intimident. Ils croient que nous n’existons pas et que

LE CERCLE DE FEU

nous n’avons aucun droit. Nous sommes une petite commu-nauté, mais nous avons des droits. » La bande s’est vue frustréedans ses tentatives de participer officiellement à la planificationdu développement du cercle de feu.

Rick Bartolucci, le ministre ontarien du Développement duNord et des Mines, affirme que le gouvernement provincial s’estengagé à tenir des consultations élargies avec toutes les commu-nautés des Premières nations concernées pour s’assurer que lesimpacts économiques, sociaux, culturels et environnementauxpotentiels soient pris en compte avant la mise en œuvre desprojets. « Nous répondons par de nouvelles approches, com-plémentaires aux outils de réglementation existants, souligneBartolucci. Nous avons accepté de discuter de partage desrevenus. Nos discussions n’en sont encore qu’à la phase prélim-inaire, mais il s’agit d’un problème très important pour les Pre-mières nations du cercle de feu. »

Patricia Persico, directrice des communications de Cliffs,reconnaît que le rythme des discussions avec les différentescommunautés des Premières nations est irrégulier. « Nousavons progressé avec certaines communautés des Premièresnations pour nous aider à réaliser ce projet. Pour d’autres com-munautés, nous avons tendu la main aux chefs des commu-nautés pour discuter du projet, mais nous devons recevoirl’invitation, explique-t-elle. Nous voulons être respectueux, il ya beaucoup en jeu. »

Un grand intérêt pour le développementLe gouvernement de l’Ontario tient à mettre ces projets sur

pied et à amorcer le développement de la région. « Nous avonsune occasion unique d’ouvrir le Grand Nord, affirme Bar-tolucci, nous voulons maximiser le potentiel du cercle de feu. »

Un avancement important a eu lieu en mai lorsque Cliffs aannoncé que la fonderie serait construite à Capreol, ce qui a misfin à la spéculation sur la possibilité de la construire ailleurs,aux États-Unis ou même au Québec, où le faible coût de l’élec-tricité pourrait offrir un avantage en matière decoûts. « L’en-gagement de construire la mine et la fonderie offrira uneénorme occasion d’emploi pour la population du nord de l’On-tario », affirme Bartolucci.

Et, malgré ses inquiétudes, le chef Moonias de la nationNeskantaga reconnaît que sa communauté profiterait sansaucun doute d’une route toute saison et des lignes électriques,qui mettraient fin à leur dépendance à l’électricité produite àcoût élevé par des génératrices diesels. Il fait remarquer qu’unpain coûte au moins 4,95 $ et que le prix peut augmenter con-sidérablement à mesure que les stocks diminuent, sans oublierqu’un litre d’essence varie entre 2,19 $ et 2,79 $. « Ça n’a aucunsens de ne pas être lié au réseau », souligne-t-il.

Noront tente de séduire activement les trois communautésles plus concernées par les projets du cercle de feu : MartenFalls, Webequie et Neskantaga. Noront et Cliffs ont tenu desréunions portes ouvertes dans les communautés des Premièresnations de l’ensemble de la région. « Nous continuons de fairedu progrès », dit Glenn Nolan, vice-président Affairesautochtones de Noront. Il ajoute qu’il n’a rencontré aucune



opposition qui pourrait mettre en péril le projet de l’entreprise.Nolan est un ancien chef de la Première nation crie Missanabie,près de Wawa, en Ontario, ainsi qu’un vétéran de l’industrieminière anciennement propriétaire d’une entreprise qui appro-visionnait en équipement des petits camps d’exploration.

Il affirme plutôt que la population démontre un intérêt àparticiper. Ses discussions ont porté sur l’emploi, la formationet l’infrastructure qui offrirait à leur communauté un accèsroutier à l’année, de l’électricité moins chère et des connexionsInternet rapides et fiables.

« Ils cherchent des moyens de tirer le maximum de leur par-ticipation, explique Nolan. Vous voulez être témoins de ce désirde participer, le cercle de feu change la donne pour ces com-munautés. Dans le passé, nous n’avons pas réussi à obtenir unaccès routier toutes saisons et une connexion Internet hautevitesse. »

La voie à suivreLes exigences en matière d’infrastructure pourraient être

l’élément le plus complexe, parce que les entreprises con-cernées ont des points de vue divergents sur ce qui devrait êtreconstruit, sur qui devrait assumer le coût et, finalement, sur quiserait propriétaire et responsable de l’entretien. Une route pour-rait également servir de couloir de passage des services publicsafin d’apporter l’électricité dans les mines. Les Premièresnations aimeraient que des embranchements soient construitsdepuis une route principale jusqu’à leur communauté ainsi quedes lignes électriques pour alimenter leur communauté en élec-tricité.

Noront et certaines communautés des Premières nations ontpréconisé une route est-ouest qui serait en fait un prolonge-ment de la route provinciale 559 qui sillonne le nord depuisIgnace sur la route transcanadienne, à environ 225 kilomètres àl’ouest de Thunder Bay, jusqu’à Pickle Lake, puis plus au nordjusqu’à Windigo Lake. Une route d’hiver de 200 kilomètres serend actuellement vers l’est jusqu’à la Première nation Webe-quie et Noront a fait valoir l’idée de la convertir en route toutessaisons.

Toutefois, la route qui se profile actuellement est une routenord-sud de 340 kilomètres qui commencerait à Nakina ou àproximité de Nakina sur la voie du CN et se terminerait àMcFaulds Lake. Bruce Hodgman, vice-président, communica-tions de KWG Resources, affirme que son entreprise a jalonnéune bande de sable et d’agrégats plus grossiers qui parcourt laquasi-totalité de la voie du CN jusqu’à McFaulds Lake. L’entre-prise, qui est propriétaire minoritaire du projet Big Daddy, adépensé près de 15 millions de dollars en études techniques quiont démontré la viabilité d’utiliser cette bande comme remblaide voie ferrée. Le gouvernement provincial a déjà exprimé sonengagement à participer au financement de la route privée detype utilisateur-payeur.

« L’axe nord-sud est presque parfait, affirme Hodgman.Nous avons de la chance que cette route très directe existe. Ilfaut de l’agrégat pour construire une route et il faut des sourceslocales car le transport de l’agrégat n’est pas économique. Il y ades marais des deux côtés de la bande. »

En termes géologiques, on trouve de quoi intéressertout le monde dans la région de le Cercle de feu. Depuisque De Beers a découvert en 2002 un important amassulfuré volcanogène riche en cuivre et en zinc àEagle One, les explorateurs ont découvert des groupesélémentaires de chromite, de nickel, d’or, de vanadium,de fer et de platine à l’intérieur et aux alentours de l’amasréputé de concessions en forme de croissant. Mais l’im-portant investissement en argent et en patience qu’exigel’exploitation du grand nord de l’Ontario force les petitessociétés d’exploration à attendre tandis que deux projetsminiers promettent d’ouvrir cette terre inaccessible audéveloppement futur.

Les deux poids lourds de la région, Cliffs NaturalResources et Noront Resources, prévoient maintenant fairepasser leurs projets à l’action. Mais ces projets ne se contri-buent pas à éveiller l’intérêt des les explorateurs. « Au pointoù nous en sommes dans le cycle, nous ne voyons pas beau-coup de nouvelles se développer, » souligne Garry Clark,directeur exécutif de l’association Ontario Prospectors. Etl’environnement d’investissement actuel est si sec, ajoute-t-il,que même des résultats de forage impressionnants ne sem-blent pas émouvoir les marchés.

L’exploration dans le Cercle de feu (qui se trouve à300 km de la route ou du chemin de fer les plus près) exigebeaucoup d’argent. Michael Murphy, porte-parole de lapetite société d’exploration White Pine Resources, résumeles chiffres : « Les coûts du forage au diamant se situent àenviron 750 $ par mètre pour un petit programme deforage. Cela se compare à une évaluation historique des

À feu douxLe cercle de feu éprouve les ressources des explorateursde minéraux Par Eavan Moore

Même avec tout cet agrégat, la construction sera difficile. Ily a plus de 90 passages de cours d’eau le long de la route nord-ouest et la plupart peuvent être pourvus d’un ponceau. Il y atoutefois quatre rivières à traverser et il faudra construireplusieurs ponts.

La difficulté physique de créer un couloir de transport estaggravée par la relation tendue entre KWG Resources Inc. etCliffs, partenaires du projet Big Daddy. Cliffs a fait unedemande de servitude au ministère des Richesses naturellesde l’Ontario pour avoir l’autorisation de construire une routele long de la bande, mais KWG s’oppose à la demande avec


November 2012 | 59

coûts dans les camps miniers de l’Ontario et du Québec qui sesituerait autour de 150 $ par mètre. » L’an dernier, une entre-prise a dépensé 1 million $ sur un forage de 1 000 mètres,selon James Trusler, président et chef de la direction de Plati-nex.

Le temps et l’argent qu’exige la mise en place de relationsefficaces avec les Premières Nations représente un autre obs-tacle. John Harvey, membre de l’équipe qui a découvertEagle One et désormais chef de l’exploitation de Bold Ventures,estime qu’il s’agit du plus grand problème pour les explora-teurs qui cherchent à obtenir un droit d’exploitation dans lesbasses terres de la Baie James. « Nous avons mis 18 mois àdévelopper un accord avec Attawapiskat, » indique-t-il. « Laplupart des entreprises préfèrent ne pas s’y engager. Elles nepeuvent pas obtenir de garantie qu’elles pourront demeurerdans la région assez longtemps. »

En résultat, le nombre de titulaires de concessions diminue.À un moment en 2011, 35 entreprises détenaient 30 000concessions dans la région de le Cercle de feu. En août 2012,on ne comptait plus que 21 entreprises qui tenaient 16 435concessions.

De ces 21 entreprises, certaines maintiennent des activitésd’exploration. En 2012, Cliffs et KWG Resources ont foré plusloin dans leur dépôt de chromite Big Daddy, ce qui a permisune mise à jour de l’évaluation mesurée de ressources à29,5 millions de tonnes titrant 29 pour cent de chrome, etd’établir une évaluation des ressources indiquées de 7,9 mil-lions de tonnes titrant 26,7 pour cent de chrome. NorthernShield Resources et Discovery Harbour Resources Corp. ontcroisé une importante minéralisation cuivre-zinc à leur pro-priété de Wabassi, où l’on trouve notamment des teneurs enzinc pouvant atteindre 44,74 pour cent. MacDonald MinesExploration Inc. a conclu une campagne de forage estivale sursa propriété de Butler avec une meilleure définition d’uneimposante minéralisation sulfurée volcanogène de classe mon-diale. En tout, on prévoit une augmentation des dépenses d’ex-ploration qui se situaient à plus de 50 millions $ en 2011, pouratteindre plus de 80 millions $ en 2012.

« Le potentiel de le Cercle de feu est énorme, » indiqueQuentin Yarie, vice-président senior de l’exploration chezMacDonald Mines, pour expliquer la raison pour laquelle sa

société demeure engagée dans la région depuis neuf ans. « À lavue de la quantité de minéraux qui y ont été découverts(chrome, nickel, or, argent, cuivre, zinc, platine, palladium, etcetera) et avec l’engagement du gouvernement de l’Ontariodans le développement de la région, il est clair que noussommes témoins de la naissance d’un nouveau camp minier auCanada. Aucun district n’est exempt de défis, mais le Cercle defeu offre un potentiel de succès en tant que l’un des campsvraiment sous-explorés au Canada. »

Il ajoute : « Comme il n’y a pas d’affleurement dans le Cerclede feu, dans un premier temps, le ciblage se fera par des étudesgéophysiques aériennes et de terrain. Depuis 2004, l’industrie aété témoin d’avancées importantes dans ces technologies, quiont grandement contribué aux procédés d’exploration dans larégion. » D’autres sociétés choisissent de ne privilégier que ladétection à distance, afin d’en faire le moins possible pour tenirleurs concessions en liste, jusqu’à ce que l’infrastructure et lesrelations avec les communautés s’améliorent. Platinex a dimi-nué ses propriétés des deux tiers, a procédé à une étudeaérienne pour conserver les autres concessions pendant quatreou cinq années supplémentaires, et s’est concentré sur ses pro-priétés aurifères de South Timmins dans l’espoir de revenir aunord pour y trouver du platine.

La durée de l’attente dépend en grande partie du rythmeauquel les infrastructures seront développées pour le déve-loppement de Cliffs. Pour transporter le concentré de sonprojet Black Thor, Cliffs prévoit bâtir une route permanentetoutes saisons pour rejoindre le point de branchement du CNle plus près, situé à 260 kilomètres au sud. Les discussionspréliminaires indiquent que la province de l’Ontario pourraitcontribuer financièrement et que la route sera disponible auxautres utilisateurs moyennant des frais. Ces projets les plusavancés dans le Cercle de feu risquent fort de continuer dedonner le ton aux négociations avec les Premières Nationségalement.

Entre-temps, la prochaine génération d’explorateurs devraattendre son heure en survolant des cartes de concessions etles plus récentes données de la Société géologique de l’Ontarioà la recherche de l’endroit précis parmi les 5 000 kilomètrescarrés de le Cercle de feu où elle pourrait faire fortune.

Traduit par SDL ICM

le Commissaire aux mines et aux terres provincial. KWGfavorise plutôt une voie ferrée au coût estimé de 2,2 milliardsde dollars, soutenant qu’il s’agit de la meilleure solution à longterme en matière d’infrastructures. « Une route est la premièreétape logique, réplique Persico de Cliffs. Elle ajoute qu’à« long terme nous aimerions voir une infrastructure ferrovi-aire dans le Cercle de feu, mais le coût est prohibitif et ne peutêtre justifié par un seul projet. »

Chose certaine, KWG fera tout le nécessaire pour mettreen œuvre le projet Big Daddy dès que possible. « En fin decompte, dit Hodgman, nous croyons qu’il y a une solutionsatisfaisante pour tous les intervenants. » Toutefois, Cliffs

prévoit d’abord exploiter son gisement Black Thor, dontelle est propriétaire à 100 pour cent. Ils ont élaboré desplans pour 2 mines à ciel ouvert, chacune avec une duréede vie de 10 à 15 ans, avant de passer à l’exploitationsouterraine. Pendant ce temps, le projet Big Daddy seraitmis de côté.

En septembre, Cliffs a repoussé la date de productionprévue du projet Black Thor en 2016. Le projet demeure unepriorité pour l’entreprise, mais la décision démontre commentl’ouverture d’une nouvelle frontière en exploitation minièreexige non seulement de l’ambition et de l’ingéniosité, maiségalement de la patience. ICM

LE CERCLE DE FEU


NEST EGGWhen junior mining company Noront Resources discovered a high-grade

nickel sulphide deposit in northern Ontario – one of the most exciting nickel

discoveries in decades – it triggered a staking rush in the region now

known as the Ring of Fire. Five years later, Noront plans to set another

precedent, becoming the first producer in the emerging mining district.

BY CORREY BALDWIN

project profile | E A G L E ’ S N E S T

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November 2012 | 61

RING OF FIRE

The Eagle’s Nest site, situated in the wetlands of the James BayLowlands, first appeared problematic to develop: the lack ofexposed bedrock posed obvious logistical and environmental

challenges. Noront’s solution was to develop a subsurface mine planin which much of the milling facilities would be housed in a series ofunderground chambers.

“We have a unique situation,” says Paul Semple, Noront’s COO,“and I think we’ve come up with an innovative solution.” For Eagle’sNest, the subsurface mine plan is possible because of the high compe-tency of the subsurface waste rock – a granodiorite – that is muchstronger than concrete and can support large open chambers. Thechambers themselves will vary in size, with the largest spanning 16metres.

The waste rock created by these excavations will be used for roads,concrete and foundations for a base camp.

Producing its own aggregate also allows Noront to control certainlogistical and economic risks. “It just made common sense on a lot offronts,” says CEO Wes Hanson. “Ultimately, I think it’s going to be acheaper means of construction.” Making larger underground cham-bers is much less expensive than transporting construction materialsby plane or winter road; fewer materials are needed, and much of it isalready on site.

“The milling equipment is generally anchored to bedrock,”explains Hanson, “so either you’re going to excavate the soft surfacematerial down to bedrock – between three metres and 20 metres – ordrive piles down to bedrock. And that can be a very expensiveprocess. We’ve avoided that whole area of uncertainty by putting thesignificant loads underground.” Noront will also save additional oper-ating costs with the underground mill running in a constant tempera-ture environment. Total mine operating costs over the life of theunderground mine will be $1 billion, or $97 per tonne of ore.

A textbook depositEagle’s Nest is set to be one of the world’s lowest cost nickel mines,

thanks in large part to the deposit itself, as it is a sulphide, rather thana laterite, deposit. “The lowest cost producers around the world havebeen the sulphide miners,” points out Semple. “And I think this is oneof the great undeveloped nickel sulphide deposits anywhere in theworld.” Although nickel sulphides account for the majority of nickelmined to date, these reserves are quickly being depleted. Most newmines around the world are tapping laterites, which, though moreabundant, are proving to be challenging to produce nickel from. “Thesulphide technology has been used for a long time,” says Semple. “Ithas none of the growing pains seen in laterite deposits.”

The shape of the deposit is particularly ideal as well; it is pillar-shaped and nearly vertical, roughly 200 metres long and 60 metresacross. “If you were to give a first-year underground engineering stu-dent an assignment to draw a perfect underground mine,” says Han-son, “they’d probably draw something that looks very much likeEagle’s Nest.” The deposit’s geometry, along with the high competencyof the surrounding rock, allow for a straight-forward mine plan andconventional vertical bulk mining techniques, using blasthole stoping.

“The bigger challenge,” says Hanson, “is arranging the under-ground chambers so that work in the mine doesn’t impact work in the

Noront aims to begin production at Eagle’s Nest in 2016.Courtesy of Noront Resources



While it is not uncommon for mines to turn some of theirtailings into backfill, Eagle’s Nest will be the first to store theentire volume of their tailings underground. “We’re hoping toestablish a model mine for the future,” says Hanson.

According to Hanson, the long-term outlook for nickel ispositive, even though it is currently not very bullish. “You’restarting to see large super-projects come on stream, which isone of the reasons why supply and demand are in lockstepright now,” he explains. Analysts predict demand will out-strip supply, raising prices by 2015 in time for the beginningof production at Eagle’s Nest. “The long term looks great,”says Hanson, “because aside from Eagle’s Nest, there’ve beenno significant new discoveries of nickel made in the world inthe last 20 years.”

Total Measured and Indicated Reserves at Eagle’s Nest are11 Mt (1.78 per cent nickel, 0.98 per cent copper, alongwith significant platinum and palladium mineralization).

The project will use a 3,000 tonnes perday conventional nickel flotation circuitto produce a concentrate containingroughly 10 per cent nickel and 5.7 percent copper.

The deposit, explored to 1,600metres, remains open at depth, meaningthere is excellent potential for Noront toextend Eagle’s Nest’s production life,which is currently pegged at 11 years.Noront holds additional properties in theregion consisting of 466 claims over101,744 hectares. “We’ve invested some-where in the range of $150 million so farinto the Ring of Fire,” says Hanson, “andin return for that, we have not one buttwo viable ore bodies – our nickel-sul-phide at Eagle’s Nest and our chromitediscovery at Blackbird.”

Noront has already identified over abillion pounds of nickel. Chromite dis-coveries in the region have already posi-tioned Canada in the top five countriesfor that commodity worldwide. Addingto this growing success are recentannouncements indicating potential for

mill.” The crushing, grinding and flotation circuits of themilling process must be isolated from the rest of the under-ground workings.

A low profileOn the surface, the only visible signs of the Eagle’s Nest

project will be a year-round airstrip, a base camp, and a num-ber of support and storage buildings, all of which will occupyless than 50 hectares. “We’ll have one of the smallest environ-mental footprints of any underground mine in the world,”highlights Hanson. “It’s one of the things that we are proud of.”

Noront will be recycling its tailings underground ascement-paste backfill, removing the need for a surface tail-ings impoundment area. Additional waste rock will be minedto construct the airstrip and roads, as not enough will berecovered from the underground mill chambers, which willresult in open waste rock stopes that can house tailings.

project profile | E A G L E ’ S N E S T

PROJECT SPECS MINERAL RESERVE

KILOTONNES NI(%) CU(%) PT(G/T) PD(G/T)

Proven 5,264 2.02 1.04 1.01 3.45

Probable 5,867 1.38 .72 .78 2.76

INITIAL CAPEX: $609 million* LIFE OF MINE: 11 years* OPERATING COST: $97/tonne*

MINING METHOD: Blasthole sublevel stoping

PLANT THROUGHPUT: 3,000 t/d

PRODUCTION: 150,000 t/y nickel/copper concentrate

POWER: Diesel generated *estimates

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To get around the poor building conditions atthe surface, Noront will install much of the

processing circuit underground.


businesses that will need to be created to support ourdevelopment, and those opportunities are being presentedto the First Nation communities first. This will be a game-changer for northern communities, since they will be giventhe opportunity to run and operate their own community-based businesses,” says Hall. CIM

volcanogenic massive sulphide systems, such as copper-zinc.And yet only a fraction of the Ring of Fire has been explored.“All of these factors combined indicate to me that this is avery special region,” says Hanson. “I’ve never seen a mineraldistrict that’s developed as quickly, or has offered so muchprofitable high-grade mineralization, in such a short periodof time.”

The community infrastructureNoront will employ around 1,000 workers during the con-

struction phase and 400 to 500 during production – a poten-tial boon to local Aboriginal communities. Much of therequired training will be provided by Confederation College,which is based out of Thunder Bay with several regional cam-puses. “They’ve been doing community-based programmingwith these communities for a long time,” says Leanne Hall, thecompany’s vice-president of human resources. “They are withus every step of the way, as we do our workforce planning, andhelp with all of our training and development needs.”

Diversity in the workforce will be key for Eagle’s Nest,admits Hall, who acknowledges that significant unemploy-ment in remote fly-in communities remains a major chal-lenge. “We’re trying to maximize training opportunities, sothat people who train with us during the constructionphase can transition to full-time operations, and also sothat they have other opportunities, whether working fortheir own businesses or communities. It’s the concept ofbuilding a local productive workforce not only for Noront’sproject but for northwestern Ontario,” says Hall. Programsset up by Noront include training and community entre-preneurship, summer youth camps, a stay-in-school initia-tive, and a bursary, scholarship, and mentorship programgeared to youth and students.

Noront is also working with Aboriginal groups and com-munities on economic developments. “There are numerous

November 2012 | 63

RING OF FIRE

The road aheadDespite its economic potential, access to the Ring of Fireremains limited, with a plan for a transportation corridoronly agreed upon recently. For Hanson, the governmenthas a duty to participate in such vital infrastructure: “Myviewpoint is simply that government’s role in society is tobuild infrastructure that’s to the benefit of all society.”

A lack of infrastructure restricts mining activity in remoteareas, where an all-season transportation corridor can bevital to the start of operations. “You see a similar type ofproblem in northern Quebec,” remarks Hanson, “but theQuebec government has been very successful in fundinghighway-building and road-building to access some of themineral wealth there. You see it in every other province inCanada, with the real exception being Ontario.”

Junior mining companies in the Ring of Fire have alreadytaken the lead – and the risk – by investing $400 to $500million into their collective projects, says Hanson.“Ontario has realized benefits from that investmentalready. It’s only fair to re-invest part of that back intoinfrastructure development.”

In mid-September, the Ontario government agreed to co-fund a north-south transportation corridor, proposed byCliffs Natural Resources. Noront had proposed an east-west corridor (a north-south corridor being its alternativechoice) and could not complete some elements of its fea-sibility study until the government made a decision. Therecent agreement means Noront will be able to adjust itsnumbers appropriately and release its feasibility study.

“As more discoveries are made in the Ring of Fire,” com-ments Hanson, “you’re going to see even more reasons tohave government participation in developing infrastructure.”

The operation will use blasthole stoping to mine the vertical sulphide deposit.

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Les amas de roches stériles extraites seront utilisés pour laconstruction de routes, d’ouvrages de béton et de fondationsdu camp de base.

Le fait de produire son propre agrégat permet également àNoront de gérer certains risques économiques et touchant lalogistique. « Cela semblait logique à bien des égards », indiqueWes Hanson, président-directeur général. « En fin de compte,je crois qu’il s’agit d’un mode de construction plus abordable. »Le coût associé aux salles souterraines plus vastes est beaucoupmoins élevé que le coût de transport des matériaux de con-struction par avion ou par route d’hiver; moins de matériauxsont nécessaires et de grandes quantités sont déjà au chantier.

« En règle générale, le matériel d’extraction est ancré dansle substrat rocheux », explique M. Hanson. « Il faut donccreuser le sol meuble – à une profondeur entre 3 et20 mètres – ou enfoncer des pieux jusqu’au substrat rocheux.Et ce processus peut se révéler très coûteux. Nous avons évitéce domaine d’incertitude en mettant les charges importantessous terre. » Noront réalisera des économies supplémentairesen exploitant ses installations d’extraction souterraines à tem-pérature constante. Les coûts d’exploitation globaux pour ladurée de vie de la mine souterraine s’élèveront à 1 G$, soit97 $ par tonne de minerai.

L orsque la petite société minière Noront Resources adécouvert un gisement de sulfures nickélifères à hauteteneur dans le Nord de l’Ontario – l’une des découvertes

de gisement de nickel les plus emballantes en quelques décen-nies – cela a déclenché une ruée dans la région maintenantappelée le cercle de feu. Aujourd’hui, cinq ans plus tard,Noront prévoit de créer un autre précédent en devenant le pre-mier producteur dans ce secteur minier émergent.

De prime abord, le gisement Eagle’s Nest, situé dans lesbasses terres humides de la baie James, semblait probléma-tique, puisque la faible étendue de substrat rocher exposéposait des enjeux logistiques et environnementaux évidents.La solution de Noront portait sur l’élaboration d’un plan d’ex-ploitation souterraine dont la plupart des installations d’ex-traction seraient comprises dans une série de salles sous terre.

« La situation est exceptionnelle et je crois que nous avonstrouvé une solution novatrice », affirme Paul Semple, chef del’exploitation de Noront. Dans le cas d’Eagle’s Nest, l’élabora-tion d’un plan d’exploitation souterraine est possible en raisonde la rigidité élevée de la roche stérile sous la surface, la gran-odiorite, qui est plus résistante que le béton et peut soutenir degrandes salles souterraines ouvertes. Les salles seront de taillesdiverses, mais leur dimension n’excédera pas 16 mètres.


RICHESSE NORDIQUEPAR CORREY BALDWIN

projet en vedette | E A G L E ’ S N E S T

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Noront anticipe le début de la production de Eagle’s Nest en 2016.

064-066 Projet en vedette v7_Layout 1 2012-10-30 11:39 AM

projet comptera l’une des plus petites empreintesécologiques », souligne M. Hanson. « Voilà l’un des élémentsdont nous sommes fiers. »

Noront recyclera ses résidus en les utilisant comme remblaià pâte cimentée dans les installations souterraines, ce qui élim-inera la nécessité des dépôts de résidus miniers en surface.Puisque la quantité de déblai provenant des salles d’extractionsouterraines sera insuffisante, d’autres résidus miniers serontextraits pour construire la piste d’atterrissage et les routes, cequi créera des cavités d’abattage pouvant contenir les résidus.

Il est fréquent que les carrières récupèrent leurs résiduspour produire du remblai, mais Eagle’s Nest sera le premiergisement à stocker l’ensemble de ses résidus sous terre. « Noussouhaitons mettre sur pied une mine qui servira de modèle àl’avenir », dit M. Hanson.

À son avis, les perspectives à long terme de la consommationdu nickel sont favorables, même si la tendance actuelle n’est pascelle d’un marché haussier. « Nous avons commencé à constaterla mise en service de grands mégaprojets, ce qui expliquel’équilibre entre l’offre et la demande », explique M. Hanson. Lesanalystes prédisent que la demande dépassera l’offre et que lesprix augmenteront d’ici 2015, coïncidant ainsi avec le début dela production d’Eagle’s Nest. « Les perspectives à long terme sontexcellentes puisqu’aucune autre importante réserve de nickel,sauf le gisement d’Eagle’s Nest, n’a été découverte ailleurs dansle monde au cours des 20 dernières années. »

Les réserves mesurées et indiquées globales du gisementd’Eagle’s Nest s’élèvent à 11 millions (1,78 pour cent de nickel,0,98 pour cent de cuivre et une minéralisation en platine et enpalladium non négligeable). Dans le cadre de ce projet, les tra-vailleurs utiliseront un circuit de flottation du nickel tradition-nel de 3 000 t/jour afin de produire un concentré contenantenviron 10 pour cent de nickel et 5,7 pour cent de cuivre.

Le gisement, dont le forage a atteint 1 600 mètres, estencore ouvert en profondeur; cela signifie qu’il existe un fortpotentiel pour prolonger la durée de production d’Eagle’s Nest,actuellement établie à onze ans. Noront possède aussi d’autrespropriétés dans la région, soit 466 concessions couvrant1 017,44 km2 (101 744 ha). « À ce jour, nous avons investienviron 150 M$ dans la région du cercle de feu », indiqueM. Hanson. « En retour, nous avons obtenu non pas un, mais

Un gisement modèleEagle’s Nest fera partie des mines productrices de nickel

dont le coût de production sera le moins élevé au monde, etce, en grande partie grâce à la nature du dépôt minéral qui estsulfuré, et non composé de latérites. « Les producteurs ayantles plus bas coûts d’exploitation au monde sont des sociétésqui extraient des minéraux sulfurés », indique M. Semple. « Etje suis d’avis qu’il s’agit de l’un des gisements de sulfures nick-élifères non exploités les plus importants à l’échelle mondi-ale. » Bien que le nickel extrait à ce jour provienne desgisements de sulfures nickélifères, ces réserves s’épuisent rapi-dement. La plupart des nouvelles exploitations minières dansle monde extraient des latérites; celles-ci sont plus abondantes,mais il s’avère plus complexe de produire du nickel à partir deces roches. « Il y a longtemps que la technologie pour les gise-ments de sulfures est utilisée », poursuit M. Semple. « Elle neprésente aucun des “maux nécessaires” associés à la technolo-gie relative aux gisements de latérites. »

De plus, la forme du gisement semble particulièrementidéale; il s’agit d’une colonne quasi verticale d’une largeurapproximative de 60 mètres et dont la longueur atteint environ200 mètres. « Si vous demandez à un étudiant de premièreannée en génie souterrain de vous dessiner une mine souter-raine parfaite, il vous présenterait probablement une image quiressemblerait au gisement Eagle’s Nest », affirme M. Hanson.La configuration du gisement ainsi que la rigidité élevée de laroche environnante permettent l’élaboration d’un plan d’ex-traction simple et l’adoption de techniques d’extraction verti-cale en masse traditionnelles, par abattage par sous-niveaux.

« Le principal défi tient dans l’aménagement de sallessouterraines afin que les travaux dans la mine ne nuisent pasaux activités de l’usine de concentration », explique M. Han-son. Les circuits de concassage, de broyage et de flottation duprocédé de concentration doivent être isolés des autres travauxsouterrains.

Respect de l’environnementÀ la surface, les seuls signes visibles du projet Eagle’s Nest

seront l’aménagement d’une piste d’atterrissage ouverte toutel’année, d’un camp de base et de multiples bâtiments connexeset d’entreposage, qui occuperont moins de 0,5 km2 (50 ha).« Parmi toutes les mines souterraines dans le monde, notre

November 2012 | 65

LE CERCLE DE FEU

DONNÉES TECHNIQUES DU PROJET RÉSERVE MINÉRALEKILOTONNES NI(%) CU(%) PT(G/T) PD(G/T)

Prouvée 5 264 2,02 1,04 1,01 3,45

Probable 5 867 1,38 0,72 0,78 2,76

INVESTISSEMENT INITIAL : 609 M$*

DURÉE DE VIE DE LA MINE : 11 ans*

COÛT D’EXPLOITATION : 97 $/tonne*

MÉTHODE D’EXPLOITATION :abattage par sous-niveaux

CAPACITÉ DE PRODUCTION :3 000 t/jour

PRODUCTION: 150 000 t/an de concentré nickel-cuivre

ALIMENTATION ÉLECTRIQUE :produite par le diesel

*estimations

064-066 Projet en vedette v7_Layout 1 2012-10-30 11:39 AM

deux corps minéralisés viables, soit le gisement de sulfuresnickélifères d’Eagle’s Nest et notre gisement de chromite deBlackbird. »

Par ailleurs, Noront a recensé plus d’un milliard de livres denickel. Grâce à la découverte de gisements de chromite dans larégion, le Canada figure maintenant parmi les cinq principauxpays producteurs de ce minerai au monde. De récentesannonces au sujet du potentiel de découverte de gîtes de sul-fures massifs volcanogènes, notamment de type cuivre-zinc,viennent renforcer ce succès grandissant. Et pourtant, seuleune infime partie du cercle de feu a été explorée. « Tous cesfacteurs réunis me démontrent qu’il s’agit d’une région tout àfait particulière », raconte M. Hanson. « Je n’ai jamais eu con-naissance d’un district minéral dont l’exploitation a été sirapide ou qui a offert une minéralisation à teneur élevée sirentable, et ce, en si peu de temps. »

Infrastructure communautaireNoront emploiera environ 1 000 travailleurs au cours de la

phase de construction, puis entre 400 et 500 travailleurs lorsde la production – possible bienfait pour les collectivitésautochtones et des Premières Nations de la région. La majoritéde la formation requise sera offerte par le Confederation Col-lege, situé à Thunder Bay et comptant plusieurs campusrégionaux. « Le collège offre des programmes axés sur ces col-lectivités depuis longtemps », explique Leanne Hall, vice-présidente des Ressources humaines de l’entreprise. « Il noussoutient à chaque étape du processus lorsque nous planifionsla main-d’œuvre et nous aide avec l’ensemble de nos besoinsen matière de formation et de perfectionnement. »

La diversité de la main-d’œuvre sera essentielle àEagle’s Nest, selon Mme Hall, qui reconnaît que le taux de chô-mage important dans des collectivités éloignées desservies paravion demeure un défi de taille. « Nous tentons d’optimiser lesoccasions de formation afin que les gens qui se perfectionnentavec nous lors de la phase de construction puissent occuperensuite des postes à temps plein au sein de l’exploitation. Noussouhaitons aussi qu’ils en tirent profit pour travailler dansleurs propres entreprises et leurs collectivités. Il s’agit de bâtirune main-d’œuvre productive, non seulement pour le projetde Noront mais pour l’ensemble du nord-ouest de l’Ontario. »Les programmes mis sur pied par Noront englobent la forma-tion et l’entrepreneuriat communautaire, des colonies devacances pour les jeunes, une initiative pour la persévérancescolaire, une bourse et une bourse d’études, ainsi qu’un pro-gramme de mentorat axé sur la jeunesse et les étudiants.

De plus, Noront travaille avec les groupes et collectivitésautochtones pour favoriser le développement économique. « Ilfaudra créer de nombreuses entreprises pour soutenir notreexpansion et les occasions qui y sont associées sont d’abordprésentées aux collectivités des Premières Nations. Celareprésente une possibilité exceptionnelle pour les commu-nautés du Nord, puisqu’elles auront la possibilité d’exploiter etde gérer leurs propres entreprises axées sur la collectivité »,affirme Mme Hall. Traduit par SDLICM


projet en vedette | E A G L E ’ S N E S T

La voie devant nousEn dépit de son potentiel économique, la région éloignéedu cercle de feu est difficilement accessible et une ententevisant un plan pour un corridor de transport n’a été conv-enue que récemment. Pour M. Hanson, le gouvernement ale devoir de participer dans ces infrastructures essentielles :« À mon avis, le rôle du gouvernement au sein de la sociétéest de bâtir des infrastructures qui profitent à l’ensemblede la société. »

Les infrastructures insuffisantes limitent l’activité minièredans les régions éloignées, où un axe de transport perma-nent peut s’avérer crucial pour le démarrage de l’exploita-tion. « Nous observons le même type de problème au norddu Québec, mais le gouvernement provincial a financé laconstruction d’autoroutes et de voies publiques dans cetterégion afin de favoriser l’accès des richesses minières. Il enest de même dans les autres provinces canadiennes, à l’ex-ception de l’Ontario. »

Les petites sociétés minières présentes dans le cercle defeu donnent d’ores et déjà l’exemple – et assument lerisque – en investissant entre 400 et 500 M$ dans leursprojets collectifs, selon M. Hanson. « L’Ontario profite desbienfaits de cet investissement. C’est la moindre deschoses de réinvestir une partie des retombées dans la con-struction d’infrastructures. »

À la mi-septembre, le gouvernement de l’Ontario aaccepté de cofinancer un corridor de transport nord-sud,proposé par Cliffs Natural Resources. Noront a proposé uncorridor est-ouest (l’axe nord-sud étant une option derechange), mais ne pouvait produire certains éléments deson étude de faisabilité jusqu’à ce que le gouvernementprenne une décision. La récente entente signifie queNoront pourra modifier ses données financières en con-séquence et publier son étude de faisabilité.

« Avec les découvertes qui se multiplient dans le cercle defeu, nous constaterons d’autant plus de raisons justifiant laparticipation du gouvernement dans la mise en place d’in-frastructures. »

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DOSSIER SPÉCIALSPECIAL REPORT

Son passé historique et son poten-tiel pour l’avenir rendent leQuébec l’une des juridictionsminières de premier ordre aumonde. Avec des projets promet-teurs à l’horizon et un changementde climat politique en cours, nousexaminons de près ce qui se des-sine dans les développements dansla Belle Province.

Its storied past and potential forthe future make Quebec one ofthe world’s premier mining juris-dictions. With promising projectson the horizon and a change ofpolitical climate, we take a closelook at what is shaping futuredevelopment in La Belle Province.

À L’INTÉRIEUR / INSIDE:

L’Exploration deshydrocarburesFossil fuel exploration

Graphiques – le passé et lefutur mis en perspectiveInfographic – past and future inperspective

Enjeux autochtonesAboriginal issues

La croissance des fournisseursSupplier growth

Voix d’un vétéranVeteran voice

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In the past two years, a number of political decisionshave significantly reduced the room to maneouverfor energy exploration companies in Quebec. They

have watched as, one by one, the doors have been shutto the point where the future of their field is uncertainin the province.

In September 2010, the government declared a per-manent moratorium on exploration in the St. LawrenceEstuary and undertook the second part of its StrategicEnvironmental Assessment (SEA) of the Quebec por-tion of the gulf. Génivar, the engineering firm in chargeof carrying out the SEA, is expected to release its reportthis autumn. It could recommend Quebec no longerpermit oil exploration in the gulf, including on the OldHarry site, a salt feature that may host a billion barrelsof oil.

Furthermore, in May 2011, the Shale Gas Commit-tee was established, bringing a halt to natural gasexploration. Exploration companies have preferred towait for the committee’s recommendations, which areset to be released in November 2013. Until these issuesare addressed, some companies have opted to shift

Continued on p. 72Suite à la p. 72

Dans les deux dernières années, une série de déci-sions politiques ont considérablement réduit lamarge de manœuvre des sociétés d’exploration,

qui ont vu les portes se fermer une à une au point de ren-dre bien incertain l’avenir de leurs filières.

D’abord, en septembre 2010, le gouvernement fer-mait définitivement la porte à l’exploration dans l’es-tuaire du Saint-Laurent et entreprenait aussitôt ladeuxième partie de son évaluation environnementalestratégique (ÉES) sur la portion québécoise du golfe. Lerapport, attendu cet automne, pourrait bien recomman-der à Québec de tourner le dos à l’exploration du site OldHarry, un dôme de sel qui pourrait possiblement contenirun milliard de barils d’huile.

Sur terre, la mise sur pied, en mai 2011, du comité del’ÉES sur les gaz de schiste a eu pour effet de freiner toutà fait l’exploration gazière, les sociétés préférant atten-dre les recommandations du comité, prévues pournovembre 2013. En attendant que ces deux dossiersévoluent, certaines sociétés ont transféré leurs activitésvers la filière pétrolière, en Gaspésie et sur l’île d’Anticosti. Mais là encore, la situation politique

L’exploration d’hydrocarbures au Québec Le règne de l’incertitude

Fossil fuel exploration in QuebecUncertainty rules

parby Antoine Dion-Ortega

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Transport d’équipement par hélicoptère, pendant les sondages sismiques de la société Junex, dans le centre-sud de l’île. À la mi-septembre, près de 4 000 détonations avaient été menées dans les couloirs de 224 kilomètres défrichés par Junex. A helicopter brings equipment to seismic survey lines in August 2012. By mid-September, Junex had carried out nearly 4,000detonations on the 224-km lines it had cleared out.

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Chronologie des développements miniers | Timeline of mining developments

Projets d’infrastructure en cours | Infrastructure projects underwayDE NOUVELLES LIGNES ÉLECTRIQUES VERS LE NUNAVIKDans son budget 2012, le gouvernement du Québec prévoyait d’agrandir le réseau électrique d’Hydro-Québec vers le Nunavik à partir du complexe La Grande. Hy-dro-Québec investira jusqu’à 10 millions $ dans l’année à venir pour la cartographie, l’hydrométrie, et la topographie de la partie du Nunavik qui longe la rivière Ca-niapiscau, au nord-est de La Grande, afin d’identifier des cheminements possibles pour le transport de l’électricité.

Hydro-Quebéc collabore avec Oceanic Iron Ore Corp. depuis 2011 lorsque Hy-dro-Québec a commencé son évaluation en prévision d’une nouvelle ligne de transmis-sion depuis le centrale Laforge 2 jusqu’à son projet Hopes Advance Bay au Nunavik. Hydro-Québec estime que la mine pourra rejoindre le réseau électrique en 2025, lor-sque la ligne sera disponible. Aussi, Oceanic intégrera cette date butoir dans son étude de préfaisabilité. La mine commencera la construction et l’exploitation en 2017 avec un système d’électricité auto-générée.

NEW POWER LINES TOWARDS NUNAVIKIn its 2012 budget, the Quebec gov-ernment planned for an extension of Hydro-Québec’s power grid from its La Grande complex towards Nunavik. Hydro-Québec will invest up to $10 million in the coming year for map-ping, hydrometry and topography of the Nunavik area along the Caniapiscau River, northeast of La Grande, in order to identify possible electricity trans-port routes.

Hydro-Quebéc has been engaged with Oceanic Iron Ore Corp. since 2011, when it began its evaluation for a new transmission line from the Laforge 2 generating station to the company’s Hopes Advance Bay project in Nunavik. The utility anticipates that the mine will connect to the power grid in 2025, when the line becomes available, a target that Oceanic will incorporate into its pre-feasibility study. The mine will commence construction and operations in 2017 using self-generated power.

UNE LIAISON FERROVIAIRE INTÉGRÉE ENTRE LE PORT DE SEPT-ÎLES ET LA FOSSE DU LABRADOR Un groupe composé du CN, de l’investisseur institutionnel La Caisse de Dépôt et Place-ment du Québec, et de cinq compagnies minières s’est mis d’accord au mois d’août dernier pour lancer une étude de faisabilité sur une liaison de 800 kilomètres reliant le secteur au nord de Shefferville et Pointe-Noire, à Sept-Îles. La Caisse de Dépôt et Placement contribuera au financement de l’étude, comme prévu dans le budget du Québec 2012-2013. La liaison ferroviaire, dont le coût s’élèvera à 3 à 5 milliards $, pourrait être opérationnelle dès 2017. Cliffs Natural Resources, Labrador Iron Mines Holdings, New Millenium Iron Corp., Cap-Ex Ventures, et Alderon Iron Ore Corp.,

se sont tous engagés à participer à l’étude. Les travaux de construction pourraient débuter en 2014.

De plus, en décembre 2011, le ministère des Transports a publié une étude de préfaisabilité pour une ligne ferroviaire de 600 kilomètres reliant Shefferville et Kuujjuak, à l’extrême nord de la province. Le projet coûterait au moins 2,5 mil-liards $ en plus des coûts d’entretien annuels de 18 millions $.

INTEGRATED RAIL LINK BETWEEN THE PORT OF SEPT-ÎLES AND THE LABRADOR TROUGHCanadian National, institutional investor Caisse de Dépôt et Placement du Québec, and five mining companies agreed last August to launch a feasibility study for an

800-kilometre rail link between the area north of Shefferville and Pointe-Noire, Sept-Îles. The Caisse de Dépôt et Placement will contribute financially to the study, as planned in the 2012-2013 Quebec budget. The $3 billion to $5 billion dollar rail link could begin operation in 2017. Cliffs Natural Resources, Labrador Iron Mines Holdings, New Millenium Iron Corp., Cap-Ex Ventures, and Alderon Iron Ore Corp. have all agreed to participate in the study. Construction could begin in 2014.

Also, the Ministry of Transportation pub-lished a pre-feasibility study in December 2011 for a 600-kilometre railway between Shefferville and Kuujjuak, in the extreme north of the province. The project would cost at least $2.5 billion, in addition to an annual $18 million maintenance cost.

LE CHEMIN QUI MÈNE À LA MINE ÉLÉONOREGoldcorp prévoit de construire un chemin de 60 kilomètres cette année afin de relier sa mine d’or Éléonore au chemin qui mène au centrale La Sarcelle, situé à quelques 600 kilomètres au nord de Val-d’Or. L’année dernière, la minière et le gouvernement du Québec ont engagé des pourparlers pour déterminer le finance-ment de ce projet, qui coûtera 40 mil-lions $. L’ancien premier ministre Jean Charest avait dit que la condition pour que le gouvernement participe au projet serait que le chemin desserve d’autres projets aussi. À terme, d’autres minières, telles

que Virginia Mines ou Aurizon Mines pour-raient bénéficier du nouveau chemin.

ROAD TO ELEONORE MINEGoldcorp is planning to build a 60-kilometre road this year connecting its Eleonore gold mine to the road that leads to the La Sarcelle power plant, 600 kilometres north of Val-d’Or. Last year, there were discussions between the mining company and the Quebec govern-ment about the financing of this $40 million project. Former Premier Jean Charest said the road would have to serve other projects if the government was to contribute. Other mining companies, such as Virginia Mines or Aurizon Mines, could eventually benefit from the new route.

PROLONGEMENT DE LA ROUTE 167Annoncé dans le budget de l’an 2009 au Québec, le projet d’aménagement des routes, avec un coût prévu de 332 mil-lions $, a pour but de relier la ville de Chi-bougamau au projet Renard de Stornoway Diamond Corporation situé près des monts Otish. Le prolongement de la route pour-rait également bénéficier d’autres projets, tels que la propriété Matouche des Ressou-rces Strateco et MacLeod Lake, contrôlé par Western Troy Capital Resources.

Les travaux d’aménagement de la route ont débuté en février 2012. Les travaux de prolongement en cours, gérés par le ministère des Transports du Québec, aboutiront à une route provinciale quatre-saisons de 243 km, revêtue de gravier, où la vitesse de la circulation sera limitée à 70 km/heure. Basé sur l’échéancier proposé, Stornoway prévoit d’être en mesure d’accéder au site avec les véhicules de construction de la mine en milieu d’année 2013.

Au mois d’août de cette année, Storno-way et le gouvernement du Québec se sont mis d’accord pour partager les coûts du projet de prolongement de la route. L’entreprise contribuera 44 millions $ au

développement en faisant des versements échelonnés sur une période de 10 ans à partir de 2015. Elle s’est également engagée à contribuer jusqu’à 1,215 mil-lions $ par année pour l’entretien de la route pendant toute la durée de l’ex-ploitation de la mine du projet Renard – soit, une période de 20 ans selon les prévisions. D’autres partenaires pourront également être appelés à contribuer au financement et à l’entretien de cette infrastructure.

Si le chemin sera réellement terminé au courant de l’année 2013 re ste incertain. Environ 37 pour cent de la route, qui se divise en quatre tronçons, a été complété, et les travaux sur les deux premiers tronçons sont bien avancés. Stornoway vise actuellement une mise-en-production commerciale en 2016.

ROUTE 167 EXTENSION PROJECTAnnounced in the 2009 Quebec budget, the $332-million road development project is designed to connect the city of Chi-bougamau to Stornoway Diamond Corp.’s Renard project, near the Otish Mountains. The road extension could also benefit other projects, such as Strateco Resource’s Matoush property and MacLeod Lake, con-trolled by Western Troy Capital Resources.

Work on the road began last February. The extension is being constructed as a 243 kilometre-long, 70 kilometre-per-hour, two-lane, all-season gravel-top, multi-service provincial highway by the Quebec Ministry of Transportation. Based on the pro-posed schedule, Stornoway anticipates first vehicle access to the Renard site for mine construction by mid-2013.

Last August, Stornoway and the Quebec government agreed to share the bill for the road extension project. The company will contribute $44 million to its development, to be paid over a 10-year period, starting in 2015. It has also agreed to contribute a maximum of $1.215 million per year for road maintenance during Renard’s oper-ation, expected to last 20 years. Other partners may also be called upon to con-tribute to the financing and maintenance of this infrastructure.

It is still unsure whether the project will be completed in 2013. About 37 per cent of the road, which is divided into four segments, is complete, with its two first segments well advanced. Stornoway is currently aiming to begin commercial production in 2016.

UN PORT EN EAU PROFONDE À WHAPMAGOOSTUI-KUUJJUARAPIKLe gouvernement étudie la faisabilité et la rentabilité d’un port en eau profonde à proximité de Whapmagoostui-Kuujjuarapik, et de la construction d’une liaison terrestre jusqu’à Radisson.

DEEPWATER PORT IN WHAPMAGOOSTUI-KUUJJUARAPIKThe government is studying the feasibility and profitability of a deepwater port in Whapmagoostui-Kuujjuarapik, and of the construction of a land link to Radisson.

2012BACHELORMetanor Resources Inc.

•Or | Gold

Production: 690 t/jour | 690 t/day

Étude de faisabilité prévue 2012. | Feasibility study planned, 2012.

RAGLAN: KIKIALIK (MINE NO. 4)Xstrata Nickel Canada

•Nickel

•Cuivre | Copper

Durée: 8 ans | Life: 8 years

Étude de faisabilité 2008 | Feasibility study, 2008.

NUNAVIK NICKELJien Canada Mining (Canadian Royalties)

•Nickel

•Cuivre | Copper


Production: 100 Kt de concentré/an | 100 Kt of concentrate/year

Construction d’infrastructures pour l’exploitation de quatre dépôts. | Construction of infrastructure for development of four deposits.

2013BRACEMAC-MCLEODXstrata Zinc Canada

•Zinc

•Cuivre | Copper

•Argent | Silver


Production: 220 Kt de concentré/an | 220 Kt of concentrate/year

Étude de faisabilité août 2010 | Feasibility study August 2010.

CREVIERLes Minéraux Crevier Inc.

•Niobium


Production: 4 Kt par jour | 4 Kt/day

Étude de faisabilité prévue 2012. | Feasibility study planned, 2012.

MATOUSHStrateco Resources Inc.

•Uranium



Évaluation économique préliminaire complété avril 2010 | Preliminary economic assessment completed April 2010.

GRANDE-VALLÉEOrbite Aluminae inc.

•Alumine | Alumina


Production: 1 500 t/jour | 1,500 t/day


MATOUSHStrateco Resources Inc.

•Uranium




MONT WRIGHT, EXP.(LAC HESSÉ SECTOR)ArcelorMittal Mines Canada Inc.

•Fer | Iron

Production: Expansion à 24 Mt/an | Expansion to 24 Mt/year

MONT WRIGHT, EXP.(PAULIS PEAK)ArcelorMittal Mines Canada Inc.

•Fer | Iron

Production: Expansion à 24 Mt/an | Expansion to 24 Mt/year

Étude de faisabilité 2010 | Feasibility study, 2010.

WESTWOODGestion Québec IAMGOLD

•Or | Gold


Production: 2 300 t/jour | 2,300 t/day

Évaluation économique préliminaire complété décembre 2009 | Preliminary economic assessment completed December 2009.

2014ÉLÉONORELes Mines Opinaca Ltée | Goldcorp Inc.

•Or | Gold


Production: 600 000 onces/an | 600,000 onces/year

Obtention d’un certificat d’autorisation globale pour travaux de construction. Signature d’une convention de collaboration avec les Cris, février 2011. | Overall authorization certificate for construction work obtained. Cooperation agreement signed with Crees, February 2011.

WHABOUCHINemaska Lithium Inc.

•Lithium


Production: 3 Kt/jour | 3 Kt/day

Évaluation économique préliminaire complétée mars 2011. | Preliminary economic assessment completed, March 2011.

2015FIRE LAKEArcelorMittal Mines Canada Inc.

•Fer | Iron



FOXTROT (RENARD)Stornoway Diamond Corporation (Canada)

•Diamant | Diamonds



Étude de faisabilité publiée novembre 2011 | Feasibility study published, November 2011.

FIRE LAKE NORDChampion Minerals Inc.

•Fer | Iron


Production: 8,7 Mt de concentré/an | 8.7 Mt of concentrate/year

Évaluation économique préliminaire novembre 2011. Étude de faisabilité prévue. | Preliminary economic assessment, November 2011. Feasibility study planned.

Recherche | Research: Antoine Dion-OrtegaGraphisme | Graphics: Bruno Dubois

Dépenses en exploration et mise en valeur 2005-2007 (en M$) | Exploration and deposit appraisal expenditures 2005-2011 (in $M)

Répartition des frais d’exploration et de mise en valeur par substance, 2011 | Distribution

of exploration and deposit appraisal expenditures by commodity, 2011

LAC À PAULLes Ressources d’Arianne inc. (Canada Phosphate)

•Phosphate


Production: 2 Mt de concentré/an | 2 Mt of concentrate/year

Étude de préfaisabilité déposée novembre 2011. EIE en cours. | Pre-feasibility study submitted, November 2011. EIS in progress.

MACLEOD LAKEWestern Troy Capital Resources Inc.

•Molybdène | Molybdenum

•Cuivre | Copper



Étude de faisabilité et EIE prévues 2012. | Feasibility study and EIS planned 2012.

MINE ARNAUDMine Arnaud inc.

•Apatite


Production: 1 Mt de concentré/an | 1 Mt of concentrate/year

Étude de faisabilité complétée 2011 | Feasibility study completed 2011.

RAGLAN, EXP (QAKIMAJURQ | MINE NO. 5)Xstrata Nickel Canada

•Nickel

•Cuivre | Copper

Production: Expansion à 32 Kt/an | Expansion to 32 Kt/year

Étude de faisabilité juillet 2011 | Feasibility study July 2011.

2016DUMONTRoyal Nickel Corporation

•Nickel

•Cuivre | Copper


Production: 45 Kt/an de concentré | 45 Kt/year of concentrate

Évaluation économique préliminaire complété septembre 2010. | Preliminary economic assessment completed September 2010.

HOPES ADVANCE BAYOceanic Iron Ore Corp.

•Fer | Iron


Production: 20 Mt/an de concentré | 20 Mt of concentrate/year

Évaluation économique préliminaire septembre 2011. | Preliminary economic assessment, September 2011.

KÉMAG | LABMAG1New Millennium Iron Corp.

•Fer | Iron


Production: 22 Mt de boulettes/an | 22 Mt of pellets/year

Étude de faisabilité prévue fin 2012. | Feasibility study planned late 2012.

KIPAWA DEPOSIT | ZEUS PROPERTYMatamec Explorations Inc.

•Terres rares | Rare earths



Évaluation économique préliminaire complété janvier 2012 | Preliminary economic assessment completed January 2012.

LAC OTELNUKAdriana Resources Inc.

•Fer | Iron


Production: 50 Mt de boulettes/an | 50 Mt of pellets/year

Évaluation économique préliminaire avril 2011. Étude de faisabilité 2013. | Preliminary economic assessment, April 2011. Feasability study, 2013.

STRANGE LAKEQuest Rare Minerals Ltd.

•Terres rares | Rare earths


Production: 60 Kt de concentré | 60 Kt of concentrate

Étude de faisabilité prévue. | Feasibility study planned.

Source: Institut de la statistique du Québec, Sustainable Development Statistical Sector.

718Sur un site minier / Brownfield

Autres substances | Other commodities 50,837 k$ Diamant | Diamond 19,808 k$ Lithium 25,280 k$ Uranium 30,679 k$ Terres rares | Rare earths 39,523 k$ Métaux usuels | Base metals 4,006 k$

92,287 k$ Métaux ferreux | Ferrous metals 6,750 k$ 100,556 k$

Métaux précieux | Precious metals 53,065 k$ 286,745 k$

205

295

477526

379

512

Hors d’un site minier / Greenfield

2005 2006 2007 2008 2009 2010 2011


their operations into the oil fields on the Gaspé Peninsulaand Anticosti Island. They could once again meet politicalresistance, particularly if the government decides not tosupport these new exploration efforts. Junior companiescurrently active in the oil field include Pétrolia, Junex andCorridor Resources.

Paradigm shift on Anticosti“In terms of oil, we are really at the beginning in the

East,” said Jacques Pelletier, president of Forage de l’Est,as he showed me his drilling site. “It’s not like in the West,in Alberta, where they have already found oil deposits.Here, we are in the embryonic stage.” The small company,with only 10 employees, began conducting stratigraphiccore drilling on the Anticosti Island on behalf of Pétroliathis summer.

This is not, however, the first time that companieshave worked to find oil on this island of almost 8,000square kilometres, which is around 16 times the size ofthe island of Montreal. Since the 1960s, major companieslike Esso, Shell and Hydro-Québec have attempted, albeitwithout success, to find significant deposits. In 2007,Pétrolia followed in the footsteps of these giants andacquired rights on the island. Like its predecessors,Pétrolia began searching for conventional reservoirs inthe Trenton Black River formation, where oil could havemigrated from the bedrock at a depth of 1,800 metres. Todate, the company has not managed to locate oil in thisstructure.

In 2011, however, the company unveiled the results ofan analysis of a core collected in the summer of 2010.These revealed a groundbreaking direction for fossil fuels

pourrait les rattraper si le gouvernement décidait de ne passoutenir ces nouveaux efforts d’exploration.

Changement de paradigme sur Anticosti« Pour le pétrole, on est vraiment dans les débuts, dans

l’est, dit Jacques Pelletier, le président de Forage de l’est, alorsqu’il nous fait visiter son site de forage. Ce n’est pas commedans l’ouest, en Alberta, où ils ont déjà du pétrole trouvé, desgisements. Ici, c’est vraiment l’étape embryonnaire. » La petiteentreprise de dix employés effectue, depuis l’été, des son-dages stratigraphiques dans l’île d’Anticosti pour le comptede Pétrolia.

Pourtant, ce n’est pas la première fois que des sociétéss’échinent à trouver du pétrole sur cette île de près de 8 000km , soit environ 16 fois la superficie de l’île de Montréal.Depuis les années 1960, de gros joueurs tels Esso, Shell etHydro-Québec ont tous tenté leur chance, à chaque fois sanssuccès. C’est sur les traces de ces géants que s’est d’abordengagée Pétrolia lorsqu’elle a acquis ses droits sur l’île, en2008. Comme tous ses prédécesseurs, elle s’est mise à larecherche de réservoirs conventionnels dans la formation duTrenton Black River, où le pétrole aurait pu migrer, depuis laroche-mère, sous les 1800 mètres de profondeur. À ce jour, ellen’a réussi à en localiser aucun qui contienne du pétrole.

Mais voilà qu’en 2011, la société dévoilait les résultatsd’analyse d’une carotte prélevée à l’été 2010. Les résultatsobtenus révélaient une nouvelle thématique de recherche,ouvrant dès lors une alternative prometteuse à la recherche deréservoirs conventionnels.

« On a découvert que le pétrole était encore dans la roche-mère, n’était pas sorti, raconte André Proulx, président dePétrolia. Ça a complètement viré l’exploration de bord. »

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Carottes prélevées aux trois mètres sur la formation du Macasty. Celles qui ont un intérêt géologique seront séparées en deux moitiés, l’uneenvoyée en laboratoire et l’autre gardée en témoin. / Three-metre core samples taken on the Macasty Shale. The geologically interesting oneswill be separated in two, with the one half sent to a laboratory, and the other one kept as a reference.

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research that promises an alternative to conventionalreservoirs.

“We discovered that the oil was still in the sourcerock and had not come out,” said André Proulx, presi-dent of Pétrolia. “This has completely turned explora-tion upside down.”

For the first time, the attention focused on the Macastyshale, the formation located above Trenton Black River.This structure is the lateral equivalent to the Utica shalefound in Ohio, which is known to be rich in oil. In fact,petroleum consulting firm Sproule Associates Limited esti-mated in the summer of 2011 that, based upon the simila-rities between these two formations, Pétrolia’s permitscould potentially yield 30.9 billion barrels of oil.

The only dilemma is that the Macasty shale’s low per-meability makes it difficult for the oil to move, requiringhydraulic fracturing, which in the current political climateappears riddled with snags. “We haven’t gotten to thatstage at this time,” says Proulx.

Challenging political environmentProject manager Jérémie Lavoie accompanied us on the

224-kilometre trail that Junex cleared to conduct a seismicsurvey this past summer a few kilometres away.

“The seismic survey is a must before drilling,” he said.“It decreases the financial risks.”

In 2007, Junex acquired exploration rights to approxi-mately 100,000 hectares on Anticosti. The company is alsowell aware of the enormous potential of the Macasty shale.In October 2011, oil and gas consulting firm Netherland,Sewell & Associates found that the area it acquired permitsfor a potential yield of 12.2 billion barrels of oil.

L’attention s’est alors portée, pour la première fois, sur la for-mation au-dessus du Trenton Black River : le shale du Macasty,l’équivalent latéral du shale de l’Utica, qui lui ressemble en plu-sieurs points et qui s’est révélé être riche en pétrole dans l’Ohio.C’est d’ailleurs en se basant sur les analogies entre ces deux for-mations que la firme de consultants pétroliers Sproule Asso-ciates Limited estimait, à l’été 2011, le potentiel de pétrole enplace sur les permis de Pétrolia à 30,9 milliards de barils.

Le hic, c’est que le shale de Macasty, peu perméable, ne per-met pas à l’huile de se déplacer. Il faut donc, théoriquement,fracturer. Et dans le climat politique actuel, l’option paraît par-semée d’embûches. « Nous ne sommes pas rendus à ce stade-là, pour l’instant », précise M. Proulx.

Défis du climat politiqueÀ quelques kilomètres de là, le chargé de projet Jérémie

Lavoie nous accompagne sur le chemin de 224 kilomètres qu’adéfriché Junex pour y mener ses levés sismiques, cet été.

« Le sismique, c’est le passage obligé pour arriver au forage,dit-il. Ça diminue le risque du forage. »

Junex, qui a acquis des droits d’exploration sur quelque100 000 hectares en 2007, est également bien au fait del’énorme potentiel que pourrait détenir le shale de Macasty. Enoctobre 2011, la firme de consultants en pétrole et gaz Nether-land, Sewell & Associates établissait le potentiel de pétrole enplace sur ses permis à 12,2 milliards de barils.

« C’est un peu la géologie des basses-terres, c’est lesmêmes formations, explique Jean-Yves Lavoie, président deJunex. La différence, c’est que dans les basses-terres, on estdans la fenêtre à gaz. À Anticosti, étant donné que c’est moinsmature, qu’il y a eu moins de pression et de sédiments par-des-sus, on est dans la fenêtre à l’huile. »

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Site de sondage stratigraphique, dans le nord-ouest de l’île d’Anticosti, août 2012. La petite entreprise Forages de l’Est a réalisé, cet automne, trois sondages pour lecompte de la société Pétrolia. / A stratigraphic core drilling site in the northwest of Anticosti island, August 2012. Exploration company Forages de l’Est has drilledthree times this fall on behalf of Pétrolia.

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“It is similar to the geology of the St. Lawrence Low-lands; it has the same structures,” explained Jean-YvesLavoie, CEO of Junex. “The difference is that in the Low-lands, we are in the gas window. On Anticosti, because it isless mature, there is less pressure and sediment above, sowe are in the oil window.”

Nevertheless, Proulx and Lavoie are reluctant to focustheir efforts exclusively on the Macasty shale. On Sep-tember 20, the new minister of natural resources, Mar-tine Ouellet, released a shocking statement that had asobering effect: “Hydraulic fracturing will never be safe.”The exploration of deeper and more conventional targetstherefore continues to run parallel to drilling theMacasty. The two presidents are confident that the poten-tial of conventional deposits still justifies their invest-ments on the island.

Despite the enormous potential for oil, totalling morethan 42 billion barrels, there is still a long way to go. Toreassure the public, the juniors would like to convince theprovince to support them on a hydraulic fracturing pilotproject. They are also aware that without the government’sfinancial contribution to an eventual production project onAnticosti, no major player would want to embark on suchan expensive venture.

Regional specialtiesThings are much clearer on the other side of the Hon-

guedo Strait, in the Gaspé Peninsula, where we may see thefirst oil production in Quebec.

“Our project nearest to production is Haldimand,” poin-ted out Proulx. With an area of 12 square kilometres, thisdeposit is located less than 10 kilometres east of Gaspé,and is part of the York River formation extending over theentire Gaspé Peninsula. Pétrolia expects to drill a third wellmeasuring 2.6 kilometres in length this winter, and thistime horizontally in order to determine the direction offractures on the site. “We hope that we will be able to makea final calculation of reserves and apply for a productionlease in the spring of 2013,” said Proulx.

Then again, fracturing will have to be taken into consi-deration. The Haldimand deposit contains tight oil – a lightoil that differs from shale oil in American Petroleum Insti-tute degree and viscosity but may require hydraulic fractu-ring due to the low permeability of the formations where itis found.

Proulx hopes to avoid this scenario. “From an economicstandpoint, it is better not to resort to fracturing,” he said.“But we do not think that the Haldimand deposits will beeasy to exploit. We will need ingenuity to avoid fractu-ring.” In fact, Pétrolia has invested $500,000 to identify adrilling method that would avoid fracturing and the “poli-tical consequences” that would ensue.

Junex is also allegedly nearing its goal in Gaspésie. OnAugust 20, it completed the drilling of a fourth well on itsproperty in Galt, located 20 kilometres from Gaspé. Thecompany foresees extending it by a horizontal drain asearly as next spring, in order to establish the size of the

Mais MM. Proulx et Lavoie prennent bien garde de toutmiser sur le Macasty. Car la déclaration choc, le 20 septembredernier, de la nouvelle ministre des Ressources naturelles,Martine Ouellet, a eu l’effet d’une douche froide : jamais l’ex-ploitation par fracturation hydraulique ne sera sécuritaire.C’est pourquoi on continue tout de même l’exploration decibles conventionnelles plus profondes, parallèlement àcelle du Macasty. Les deux présidents ont assuré que, à luiseul, le potentiel conventionnel justifiait des investisse-ments sur l’île.

Malgré l’énorme potentiel de pétrole en place, totalisantplus de 42 milliards de barils, rien n’est donc joué sur Anti-costi, situation politique oblige. Les juniors voudraientconvaincre Québec de les accompagner dans un projet-pilote

Old Harry : le processusenvironnemental bouclé dès juillet2013, prévoit Corridor Resources

À quelque 80 kilomètres des Îles-de-la-Madeleine, sur lafrontière avec Terre-Neuve-et-Labrador, s’étend la structure géo-logique d’Old Harry, d’une superficie de 30 par 12 kilomètres. Lazone a été qualifiée, dans une étude de la Commission géolo-gique du Canada parue en 2009, de riche en hydrocarbures – ony trouverait une demi-douzaine de gisements d’huile et de gaznaturel. La société néo-écossaise Corridor Resources, qui détientdes permis sur tout le site, prévoit boucler son évaluation envi-ronnementale dès mai ou juin 2013 pour le forage d’un premierpuits dans la portion terre-neuvienne de la structure.

« On ne sait vraiment pas ce qu’il y a là, et on ne le saura pasavant de forer un puits, a déclaré en entrevue Paul Durling, géo-physicien en chef à Corridor. Mais en raison de son ampleur,Old Harry a le potentiel de contenir des ressources à hauteurd’un milliard de barils d’huile ou de plusieurs milliards de piedscubes de gaz. »

Old Harry est située sur un dôme de sel, à quelque 460 mètressous l’eau. Dans le meilleur cas de figure, Corridor y localiseraitdes réservoirs conventionnels d’huile légère, à quelque2 500 mètres de profondeur. Dans le cas où le dôme contiendraitplutôt du gaz naturel, la société devrait d’abord chiffrer sesréserves avant d’aller de l’avant. « C’est certain que c’est unmeilleur projet avec de l’huile, a admis M. Durling. Il resterait éco-nomiquement viable avec du gaz, si on en trouvait plusieurs mil-liards de pieds cubes… Tout dépend de combien on en trouve. »

Il n’est pas certain que Québec permette l’exploration sur sapropre portion du site. Le gouvernement a lancé, au printemps2010, une évaluation environnementale stratégique (ÉES) surl’exploration d’hydrocarbures dans le Golfe. On en attend lesconclusions cet automne. Une première ÉES portant sur l’estuaireavait mené à un moratoire permanent en septembre 2010.

Parallèlement à l’ÉIE de Corridor, Terre-Neuve-et-Labradormène sa propre ÉES dans le Golfe. Elle devrait être complétée enmai 2013 et ses conclusions seront intégrées à l’ÉIE de Corridor,de façon à ce que le processus environnemental puisse êtreentièrement bouclé en juillet 2013.

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structure and to accurately determine the potential for oil,which is currently estimated at 260 million barrels.

“Our critical threshold is to reach around 400 million to500 million barrels,” said Lavoie. “When we get to thesenumbers, we are able to attract big players to join us insupporting the exploration effort.”

Both companies are well aware of the challenges that lieahead. They have to convince a so-called green govern-ment to financially support and participate in fossil fuelsdevelopment projects, exactly as it does mining projectsunder the framework of the Plan Nord – where the govern-ment is both contributing to infrastructure developmentprojects and buying shares in the companies, in this caseStornoway Diamonds.

Companies also want the government to help themdemonstrate to the public that it is possible to undertakehydraulic fracturing in an environmentally safe manner.The entrenched position taken by the new minister of natu-ral resources does not make this look likely. Q

de forage avec fracturation, question de rassurer l’opinionpublique. Et ils savent bien que, sans la participation finan-cière du gouvernement à un éventuel projet d’exploitationsur Anticosti, aucun major ne voudra se lancer dans une aven-ture aussi coûteuse.

Les spécialités régionalesLes choses sont beaucoup plus claires de l’autre côté du

détroit de Honguedo, dans la péninsule gaspésienne. C’est là,et non pas sur Anticosti, que l’on pourrait voir produire le pre-mier pétrole en sol québécois.

« Notre projet le plus près de la production, c’est Haldi-mand », confirme M. Proulx. Situé à moins de 10 kilomètres àl’est de Gaspé, ce gisement, d’une superficie de 12 km , fait par-tie de la formation du York River, qui s’étend sur toute la pénin-sule gaspésienne. Pétrolia prévoit y forer, cet hiver, untroisième puits de 2,6 kilomètres de long, horizontal cette fois-ci, dans le but de rencontrer des fractures naturellement pré-sentes dans le réservoir. On espère qu’on sera alors en mesurede faire un calcul de réserves final et de déposer une demandede bail de production dès le printemps 2013.

Dans le cas de Haldimand, on aimerait pouvoir forer sansavoir recours à la fracturation hydraulique. « De façon écono-mique, il est plus avantageux de ne pas fracturer. Cela dit, on nepense pas qu’on a trouvé à Haldimand des gisements faciles àexploiter. Il va falloir avoir de l’ingéniosité pour ne pas fractu-rer », admet M. Proulx.

Pétrolia a d’ailleurs investi 500 000 $ pour déterminer uneméthode de forage qui puisse lui éviter la fracturation et les« conséquences politiques » qu’elle implique. « Cela nous apermis de repérer un réseau de fractures naturelles à l’inté-rieur du réservoir qui nous permet de croire que nous pour-rons produire de manière commerciale sans avoir à recourir àla fracturation », a récemment annoncé la société.

Junex se dit, elle aussi, près du but en Gaspésie. Le foraged’un quatrième puits sur sa propriété de Galt, à 20 kilo-mètres de Gaspé, a été complété le 20 août dernier. Elle pré-voit le prolonger par un drain horizontal dès le printempsprochain, afin d’établir la taille de la structure et de préciserle potentiel de pétrole en place, actuellement estimé à 260millions de barils.

« Notre seuil critique, on va l’atteindre autour de 400-500millions de barils, a précisé M. Lavoie. Quand on est rendudans ces chiffres-là, on est capables d’intéresser des grandsjoueurs en place à se joindre à nous et à supporter l’effortd’exploration. »

Mais les deux sociétés savent bien quel défi les attend :convaincre un gouvernement constitué de « verts » de lessoutenir financièrement et de participer à leurs projetscomme il le fait dans le cadre du Plan Nord, notamment avecla compagnie Stornoway; tout en démontrant à l’opinionpublique que la fracturation hydraulique peut se faire defaçon sécuritaire pour l’environnement. Une tâche qui nes’annonce pas facile, à entendre les positions tranchées de lanouvelle ministre des Ressources naturelles. Bref, il n’est pasdu tout évident que des hydrocarbures seront, à court etmoyen terme, produits au Québec. Q

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The Old Harry Deposit:environmental assessment enroute to completion

Some 80 kilometres east of the Magdalen Islands, across theborder from Newfoundland and Labrador, lies the 30-kilometre-long by 12-kilometre-wide Old Harry structure. The area was qual-ified in a 2009 study by the Geological Survey of Canada as a richfossil fuel play that could hold half a dozen or so major oil andgas fields. Halifax-based Corridor Resources, which holds the per-mits for the entire site, plans to complete its final environmentalassessment study (EAS) by May or June 2013 for the drilling of afirst well on its Newfoundland permits. “We really don’t knowwhat is there, and we won’t know until we actually drill a well,”said Corridor’s chief geophysicist Paul Durling. “But because of itssize, Old Harry does have the potential to contain resources of upto a billion barrels of oil, or multiple trillions of cubic feet of gas.”

Old Harry is located on a salt dome, some 450 metres to 470metres underwater. Corridor’s best-case scenario would be to findconventional, light oil reservoirs about 2,500 metres below sur-face. If the salt dome were to contain natural gas instead of oil,Corridor would need to confirm sufficient reserves before proceed-ing. “Certainly it’s a much better project for oil,” said Durling. “Itcan be economically viable for natural gas, of course, if we findmultiple trillions of cubic feet. It depends on how much we find.”

Whether Quebec will allow for exploration on its own side ofthe structure is still uncertain. The government launched a strategicenvironmental assessment on fossil fuel exploration in the gulf inspring 2010, that will be completed this fall. A first strategic assess-ment targeting the St. Lawrence Estuary led to a permanent mora-torium in 2010.

Parallel to Corridor’s EAS, Newfoundland and Labrador is car-rying out its own strategic assessment in the Gulf. It should becompleted by May 2013, and its conclusions will be incorporatedinto Corridor’s final EAS, so that the whole environmental processcan be finished by July 2013.



The election of Pauline Marois’ Parti Québécoisgovernment over Jean Charest’s Liberals last Septem-ber 4 was surely good news for Ghislain Picard,

regional chief of the Assembly of First Nations for Quebecand Labrador (AFNQL). In a letter to the press in lateAugust, he expressed disappointment with the formergovernment. According to Picard, more than 20 years afterthe Oka crisis, “the Charest government had learnednothing,” even though that government had just ratified anew agreement with the Grand Council of the Crees.

Not long after Charest was elected in 2003, theAFNQL succeeded in persuading the government to dis-cuss establishing a permanent mechanism for debatingissues related to lands and resources. “We managed to getoff the ground, but we never found the landing strip,”wrote Picard. In fairly short order, he noted that theAFNQL ran up against a brick wall and found itself enga-ged in a futile dialogue, where neither party was truly lis-tening to the concerns of the other. It became apparentthat “Jean Charest was not prepared to talk about landunless it was on his terms.” Subsequent to these talks, thegovernment went back to negotiating with each FirstNation individually.

Picard’s letter said that First Nations felt exasperatedand were finding it increasingly difficult to resist adoptinga more radical approach for advancing their claims. “Naï-veté and willingness to negotiate gave way to a heightenedvigilance and a sense that our patience was being severelytested,” he wrote. “You can thank your premier for thebackpedalling you have seen from our previously heldposition of generous good faith.”

La récente campagne électorale au Québec n’a guère per-mis d’intégrer la dimension autochtone dans le débat surl’exploitation des ressources naturelles. Certaines com-

munautés autochtones arrivent pourtant à s’entendre avec lesexploitants afin de parvenir au climat requis pour le dévelop-pement des projets.

L’élection du gouvernement du Parti québécois, le 4 sep-tembre dernier, n’a sûrement pas déplu à Ghislain Picard, chefde l’Assemblée des Premières Nations du Québec et du Labra-dor (APNQL). Dans une lettre adressée à la presse à la fin dumois d’août, il a exprimé sa déception à l’égard de l’attitude dugouvernement du Parti libéral du Québec (PLQ) de Jean Cha-rest. Selon M. Picard, plus de 20 ans après la crise d’Oka, ilsemble que « le gouvernement Charest n’avait encore rienappris », même s’il venait tout juste de ratifier une nouvelleentente avec le Grand Conseil des Cris.

Peu après l’élection du gouvernement Charest en 2003,l’APNQL avait réussi à le convaincre de discuter de la possibi-lité d’une structure permanente de débat sur les enjeux liés auterritoire et aux ressources. « Nous avons réussi à décoller, maisn’avons jamais réussi à trouver la piste d’atterrissage », écrivaitGhislain Picard à la fin août. Assez rapidement, l’APNQL afrappé un mur et a poursuivi un dialogue de sourds lorsqu’ilest devenu évident « que Jean Charest n’était prêt à parler deterritoire qu’en fonction de ses propres conditions ». Par lasuite, le gouvernement a repris les négociations d’ententesavec les nations de manière individuelle.

Ghislain Picard confirmait alors le degré élevé d’exaspéra-tion des Premières Nations et la tentation de plus en plus forted’adopter une approche plus radicale dans l’avancement deleurs revendications. « La naïveté et la volonté ont été rempla-

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Enjeux autochtones et industrie minièreL’acceptabilité sociale, projet par projet

L’ancien premier ministre Jean Charest et Ghislain Picard, chef de l’Assemblée des Premières Nations duQuébec et du Labrador / Former Premier Jean Charest and Assembly of First Nations of Quebec andLabrador Chief Ghislain Picard

Quebec’s unique Aboriginal landscapeSocial licence negotiated project by project

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Seeking a summitThe AFNQL took part in the 2012 summit of the Ati-

kamekw Nations, held August 28 and 29 in Wemotaci,where the First Nations expressed hope to see the nextgovernment commit to holding a summit on lands andresources within 30 days of election. It is unknown howwilling the Marois gov ern ment is to engage, but it isimportant to mention that the Fédération des chambresde commerce du Québec hosted a debate on naturalresources on August 23, where candidates from all partiesdiscussed various issues, namely land use, mining royal-ties, Plan Nord, and fossil fuels in the Gulf of St.Lawrence and in Anticosti. In the 90 minutes of debate,the First Nations presence in the affected territory wasnever mentioned; the word “Aboriginal” was not saideven once.

The Atikamekw of Wemotaci, the Manawan and theOpitciwan blockaded forest roads during the summer,and a crisis which threatened to boil over was avoidedonly by means of an Agreement in Principle ratified in the11th hour on August 31. If this agreement is approved bythe First Nations communities, the Quebec governmentand the Atikamekw nation will be able to negotiate a finalaccord, along with the conditions for implementation ofthe agreement.

According to Luc Bouthillier, professor of forest policyat Université Laval, the Atikamekw are undeniably themost conciliatory of all First Nations. It is about time, hesays, that real negotiations be undertaken.

The Cree Nation of MistissiniIn northern Quebec, workers have been busy exten-

ding route 167 to the Otish Mountains in recent months.This road is being built to accomodate Stornoway Dia-monds, which plans to mine a diamond deposit in theregion, with operations slated to begin in 2015.

The Cree Nation of Mistissini is contributing to theextension of route 167; it signed the Mecheshoo Agree-ment with Stornoway Diamonds on March 27, 2012. Theagreement will guide all stages leading up to the opera-tion of the mine. The Cree also approved the project’ssocial and environmental impact study.

The extension of route 167 will also provide access toStrateco Resources’ Matoush project. Strateco plans tomine uranium underground in the environs of the OtishMountains, about 275 kilometres north of Chibougamau.On December 22, 2011, Strateco announced that it hadreached an “agreement of information and communica-tion” with the Mistissini Cree.

But the Mistissini Cree are now opposing the ura-nium-mining project. Last June 5, at public hearings heldby the Canadian Nuclear Safety Commission, RichardShecapio, chief of the Mistissini, submitted a peremptoryplea to stop the project. He also asked for the declarationof a permanent moratorium on uranium-mining projectson the lands of his community. Q

Translated by Mark Stout

cées par une plus grande vigilance et une patience fortementsecouée. Vous pourrez remercier votre premier ministre pource recul dans notre généreuse bonne foi. »

Sommet demandéL’APNQL a participé au Sommet en territoire atikamekw les

28 et 29 août derniers à Wemotaci. À cette occasion, les Pre-mières Nations ont exprimé le désir que le prochain gouverne-ment prenne l’engagement, 30 jours après son élection, detenir un sommet sur le territoire et les ressources.

Sans vouloir présumer de la volonté du nouveau gouverne-ment Marois d’aborder le sujet, il convient de mentionner ceci :la Fédération des chambres de commerce du Québec a tenuun débat sur les ressources naturelles le 23 août dernier.Étaient présents plusieurs candidats de tous les partis pourparler d’aménagement du territoire, de redevances minières,du Plan Nord, des hydrocarbures dans le golfe et à Anticosti,etc. En 90 minutes, à aucune reprise la présence des PremièresNations dans le territoire concerné n’a été mentionnée. Le mot« autochtones » n’a même jamais été prononcé.

Les Atikamekws de Wemotaci, Manawan et Opitciwan ontbloqué les chemins forestiers durant l’été, et la crise qui mena-çait d’éclater n’a pu être évitée que par une entente de prin-cipe ratifiée à la dernière heure, le 31 août dernier. Si celle-cireçoit l’accord des communautés, le gouvernement du Qué-bec et la nation atikamekw pourront négocier un accord finalet les conditions de sa mise en œuvre.

Selon Luc Bouthillier, professeur de politique forestière àl’Université Laval, les Atikamekws sont indéniablement les plusconciliants de toutes les Premières Nations. Il est grand tempsque de vraies négociations aient lieu avec eux, insiste-t-il.

Les Cris de MistissiniDans la région du Nord-du-Québec, on s’active depuis

quelques mois à prolonger la route 167 en direction desmonts Otish. Cette route avait initialement été construite pourles besoins de la société Stornoway Diamonds, qui prévoit d’yexploiter un gisement de diamants d’ici 2015.

La nation des Cris de Mistissini participe au prolongementde la route 167 et a signé la « Convention Mecheshoo » avecStornoway Diamonds le 27 mars 2012, laquelle guidera toutesles étapes préalables à l’exploitation de la mine. L’étude d’éva-luation de l’impact social et environnemental du projet a étéapprouvée par les Cris.

Le prolongement de la route 167 donnera aussi accès auprojet Matoush de Ressources Strateco, qui prévoit d’exploiterl’uranium dans le sol des environs des monts Otish, à 275 kmau nord de Chibougamau. Le 22 décembre 2011, Strateco aannoncé avoir conclu une « entente d’information et de com-munication » avec les Cris de Mistissini.

Mais ces derniers s’opposent désormais au projet uranifère.Le 5 juin dernier lors des audiences publiques tenues par laCommission canadienne de sûreté nucléaire (CCSN) à Mistis-sini, le Chef du Conseil de la Nation des Cris, Richard Shecapio,a soumis une fin de non-recevoir au projet et a réclamé l’ins-tauration d’un moratoire permanent sur tout projet uranifèresur le territoire de sa communauté. Q

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In 2011, the demand for its products exploded soquickly that Technosub, a Quebec pump and dewate-ring solutions manufacturer, was about to turn away

new customers. “We hit a wall,” explains Eric Beaupré,director of corporate affairs and marketing for Techno-sub. “We were meeting the needs of our customers, butwe needed to expand our plant. The engineering depart-ment was crammed into our conference rooms.” Slightdownturns in mining activity no longer worry him.“Even if exploration activity slows down, the hole that isdug for a mine cannot simply be left to fill with water,”he says. “Complete dewatering is too costly.”

Technosub has a network of branch offices in all ofCanada’s major mining areas. In Quebec, its productionfacility is located in Rouyn-Noranda, where the companyis in the process of expanding to 55,000 square feet from40,000 square feet. “I don’t think I’d be mistaken if I toldyou that we are going to have the biggest plant in theindustrial pumps sector in Canada,” says Beaupré.

ExplorationAt Orbit Garant Drilling (OGD), president and

CEO Éric Alexandre reports that activity has slowedsince March 2012. “Approximately 30 per cent of ourcustomer base is made up of junior exploration firms,”he points out. “The financial crisis affects them, and

L ’expansion de l’activité minière profite aussi aux fournis-seurs des sociétés minières. Plusieurs d’entre eux ontprofité de la reprise depuis 2009 pour agrandir leurs ins-

tallations et prendre de l’expansion au Québec.En 2011, Technosub, une société québécoise qui produit

des pompes et des solutions de dénoyage, a vu la demandepour ses produits exploser, de telle manière qu’elle était sur lepoint de refuser de nouveaux clients. « On a alors frappé unmur. On comblait le besoin, mais il nous fallait agrandir notreusine. Le département d’ingénierie était coincé dans notresalle de conférence », explique Eric Beaupré, directeur desventes et affaires corporatives chez Technosub. Le léger reculde l’activité minière ne l’inquiète guère : « Même si l’explora-tion ralentit, les corporations évitent généralement que leurmine se noie, car un dénoyage complet est trop coûteux. »

Technosub est implantée sur tout le territoire canadiengrâce à son réseau de succursales dans les principales régionsminières. Au Québec, son atelier de fabrication se trouve àRouyn-Noranda. La société est en train d’agrandir ses installa-tions de 40 000 à 55 000 pieds carrés. « Je crois ne pas metromper en affirmant que nous aurons la plus grosse usinedans le secteur des pompes industrielles au Canada. »

ExplorationChez Forage Orbit Garant (OGD), le président et chef de la

direction, Éric Alexandre, souligne que, de manière générale,

Boom dans le secteur minier au QuébecDes fournisseurs prennent de l’expansion

Mining industry booming in QuebecSuppliers expanding their businesses

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Technosub est en train d’agrandir ses installations / Technosub is expanding its facilities.

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most of them have been forced to reduce their drillingactivity.”

In late December 2011, OGD announced the acquisitionof New Brunswick-based Lantech Drilling, a move that willfacilitate its expansion into Eastern Canada. OGD now has224 active drill rigs, and its diamond production division isexpanding quickly. Last year, the company moved into itsnew head office in Val-d’Or, allowing it to increase produc-tion. This investment had been planned since 2008, soonafter the merger of Orbit Drilling and Garant Brothers Dia-mond Drilling.

Innovation The process for assaying drill core samples developed

by Photonic Knowledge of Rosemère, Quebec is “revolutio-nary,” according to company founder Éric Roberge. Thetechnology, called Core Mapper, has earned him praise andattracted the exploration industry’s attention. Core Mapperuses photons to analyze the content of drill core samplesquickly and efficiently, and it is also more affordable thanlaboratory analysis.

Another key feature of the process is that it can be usedto assay historical core samples. “For one customer, wewere able to assay 78,000 metres of drill core in 60 days,”says Roberge. “This is a major achievement. We were ableto determine the nature of the minerals, the quality of thepyrite, and so on, with a degree of precision of one tenth ofone per cent.”

The firm has gone from the three employees it had in2009 to a total of 35 today, and it is tight for space as aresult. As Roberge puts it, “it’s the sort of problem we wouldall like to have.” He is currently looking for a new location.The firm has also signed a lease for a larger warehouse inRouyn-Noranda, which will serve as a hub to service custo-mers in northwestern Quebec and northeastern Ontario.

The first customers to adopt Photonic Knowledge’stechnology include Cartier Resources, Northern Gold,Armistice Resources, and Black Rock Metals.

Producers keeping busyAt ASDR Industries, expansion happened fast. In 2006,

this Malartic-based firm had five employees; today they have102, according to CEO Stephen Authier. A neighbour ofOsisko’s Canadian Malartic mine, ASDR was able to developits production division by supplying the gold mining opera-tor with maintenance and repair services for the bodies of its227-tonne trucks, along with other equipment upkeep. “Butthe most important aspect of this contract with Osisko is theexpertise that we will be developing on large trucks,”Authier explains. ASDR wants to take this expertise to theiron extraction projects in Côte-Nord, where the trucks usedare even larger. ASDR undertook an expansion of its facilitiesto 20,000 square feet, thanks to a 10-year contract it signedwith Osisko last spring. This expansion will also allow ASDRto better serve other customers like Opinaca, Agnico-Eagle,and Canada Lithium mines, as well as Wesdome Gold and Rich mont. ASDR also relies on large engineering

les activités d’exploration ont connu un ralentissement depuisle mois de mars 2012. « Environ 30 % de notre clientèle estcomposée de sociétés juniors en exploration. La crise finan-cière les affecte beaucoup et la plupart ont été forcées dediminuer leurs activités de forage », explique-t-il.

Fin décembre 2011, OGD annonçait l’acquisition de Lan-tech Drilling, au Nouveau-Brunswick, ce qui facilitera sonexpansion dans l’Est du pays. OGD dispose maintenant de 224foreuses en activité, et sa division de fabrication des machinesde forage au diamant fait aussi de bonnes affaires.

En 2011, l’entreprise a emménagé dans son nouveau siègesocial à Val-d’Or. Les nouveaux locaux lui donnent plus de flexi-bilité pour augmenter la production en fonction de lademande. Cet investissement était prévu depuis 2008, peu detemps après la fusion des sociétés « Forage Orbit » et « ForagesGarant & Frères » en 2007.

L’innovationLe procédé d’analyse des carottes de forage développé par

la PME Photonic Knowledge de Rosemère est « révolution-naire », explique son fondateur, Éric Roberge. La technologie,appelée « Core Mapper », lui attire des éloges et suscite l’inté-rêt de l’industrie de l’exploration minière. Elle utilise la photo-nique pour analyser le contenu des carottes de forage demanière rapide et efficace, à un prix plus raisonnable que celuides analyses en laboratoire. La société est passée de troisemployés en 2009 à 35 aujourd’hui. Et ils sont à l’étroit. Commele dit Éric Roberge, il s’agit là d’un « heureux problème », et ilcherche d’autres locaux. La société a aussi signé un bail pourun entrepôt plus grand à Rouyn-Noranda, d’où elle pourramieux desservir sa clientèle du Nord-Ouest du Québec, maisaussi celle du Nord-Est de l’Ontario.

Parmi les premiers clients ayant adopté la technologie Pho-tonic Knowledge, Éric Roberge cite Philippe Cloutier de Res-sources Cartier, Michael Gross de Northern Gold, JamesThompson d’Armistice Resources et Michael Allen de MétauxBlackRock. L’autre intérêt de ce procédé est qu’il peut aussi ser-vir à l’analyse des carottes historiques. « Nous avons pu analy-ser 78 000 mètres de carottes de forage en 60 jours pour unautre client. C’est une grande première. Nous avons pu déter-miner la nature des minéraux, la qualité de la pyrite, etc., avecun degré de précision au dixième d’un pour cent », conclut-il.

Des fabricants occupésChez ASDR Industries, l’expansion a été rapide. En 2006,

cette entreprise de Malartic comptait 5 employés ; aujourd’hui,elle en compte 102, explique Stephen Authier, son directeurgénéral. Voisine de la société Osisko et de la mine CanadianMalartic, ASDR a ainsi pu développer sa division de fabricationen fournissant à l’exploitant aurifère les services d’entretien etde réparation des bennes nécessaires pour ses camions de 227tonnes et autres équipements. ASDR a pu agrandir ses locaux,qui couvriront maintenant 20 000 pieds carrés, grâce aucontrat de 10 ans conclu avec Osisko au printemps dernier. Cetagrandissement lui permet aussi de mieux servir d’autresclients, tels que les mines Opinaca, Agnico-Eagle et CanadaLithium, ou encore Wesdome et Richmont. « Mais l’aspect le

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and environmental depart-ments, and in addition tobeing active in Quebec, thecompany exports its expe-rience abroad, to its officesin Morocco and Mexico.

Mécanicad is anothersuccess story in the pro-vince. The companymanufactures ventilationducts and other equipmentrequired in the mining sec-tor. According to AndréPaquet, president and mar-ket development director,the company’s Mécaniventsystem has been so suc-cessful that it had to builda bigger plant in Rouyn-

Noranda. The new facility will provide a space where all ofthe company’s 30 or so employees can work under one roof.Until now, production had been spread across two sites.

Since 2008, Mécanicad’s sales have quadrupled — rea-ching $4 million — and Paquet estimates that by March2013, sales will have increased by another 30 per centover the previous year. The company specializes in trans-portability; the farther the mine is from Rouyn-Noranda,the more advantageous Mécanicad’s product becomes.“We’re the only ones who can deliver 160 ducts, 72inches in diameter, spread over six crates, and two palletsof fittings and elbow joints in a single trailer,” explainsPaquet. “They are already partly assembled. Once wearrive at the mine, we unload the crates, which aremoved underground. Two people can finish the assemblyon site in a matter of minutes.” When Mines Aurizon’sCasa Berardi mine returned to production using theMécanivent system, other miners took notice. For now,Mécanicad’s customers are mostly companies active ingold mining — either start-ups or expansions of existingmines.

Quebec companies are not limited by their province’sborders. While Versadrill Canada is based in Val-d’Or, thelion’s share of its production is exported outside of Que-bec, explains director of sales and marketing Serge Bellefeuille. The company moved into a new, 20,000-square-foot plant in early October, and will be capable ofmanufacturing 80 drills per year. Most of their custo-mers’ exploration is in Russia, Africa and Latin America;only 15 per cent of the company’s sales are domestic.“The drilling companies that are active here already havetheir suppliers when they don’t make their own equip-ment,” says Bellefeuille. But he is optimistic Versadrillcan make gains at home; the company plans to double itsmarketing efforts in Canada in order to fill its growingcapacity. Q


plus important de cecontrat avec Osisko, c’estl’expertise qu’on déve-loppe sur les groscamions. » ASDR souhaitela mettre à profit pourapprocher les gros chan-tiers d’extraction de fer enCôte-Nord, qui utilisentdes camions encore plusimposants. ASDR compteaussi sur un importantdépartement d’ingénierieet d’environnement. Enplus d’être bien implantéau Québec, ASDR exporteson expertise outre-mer,grâce à ses bureaux situésau Mexique et au Maroc.

Mécanicad transforme le plastique pour fabriquer desconduits de ventilation et d’autres équipements requis dans lesecteur minier. Selon son président, André Paquet, égalementdirecteur du développement des marchés, la popularité deson système Mécanivent est telle qu’il a fallu construire uneplus grande usine à Rouyn-Noranda. Ses nouveaux locaux per-mettent de regrouper la trentaine de salariés sous un seul etmême toit, alors que la production était répartie sur deux sitesauparavant.

Depuis 2008, le chiffre d’affaires de l’entreprise a quadruplépour atteindre 4 millions $. André Paquet estime que lesventes augmenteront encore de 30 % d’ici mars 2013, par rap-port à l’année qui vient de s’écouler. La reprise de la produc-tion à la mine Casa Berardi des Mines Aurizon a été unvéritable coup de pouce qui a fait connaître le système de ven-tilation de Mécanicad. Plus la mine est loin de Rouyn-Noranda,plus le produit de Mécanicad est avantageux. « Nous sommesles seuls, explique M. Paquet, à livrer dans une seule remorquequelque 160 conduits d’un diamètre de 72 pouces, répartis ensix cageots et deux palettes de raccords et de coudes. Ils sontdéjà en partie assemblés. Arrivés à la mine, on prend le cageotet on peut le descendre sous terre d’un seul coup. Deux per-sonnes suffisent pour finaliser l’assemblage sur le site enquelques minutes. » Pour l’instant, les clients de Mécanicadsont surtout actifs dans l’exploitation de l’or, soit des mines endémarrage ou en expansion.

VersaDrill Canada est un manufacturier de foreuses de Val-d’Or dont la majeure partie de la production est exportée horsdu Québec, explique son Directeur des ventes et marketing,Serge Bellefeuille. L’entreprise a emménagé dans un nouvelatelier de 20 000 pieds carrés début octobre et sera en mesurede fabriquer au-delà de 80 foreuses par année. Grace à cettetoute nouvelle manufacture plus moderne et fonctionnelle età des innovations apportées aux nouveaux modèles, VersaDrillsera en mesure d’augmenter considérablement ses efforts devente et marketing au Canada, annonce M. Bellefeuille. Il resteque la majeure partie de l’exploration de ses clients a lieu enRussie, en Afrique et en Amérique latine. Q

Technosub, une société québécoise qui produit des pompes et des solutions dedénoyage, était sur le point de refuser de nouveaux clients avant d'agrandir leurusine. / Technosub nearly had to turn down customers before expanding.

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Interest in Quebec’s northern resources began many yearsago. Former Premier Jean Charest should have creditedwork done at the Université du Québec à Chicoutimi

(UQAC) as being the precursor of his Plan Nord. In 1970,the university hosted a symposium with the theme “LeNord québécois – Un potentiel générateur d’emplois”(Quebec’s North Country – A Potential for Job Creation).

Charest’s Plan Nord: more than amarketing slogan?

Miners were active in the province well before the appea-rance of this new plan. They came, and continue to come,because of the potential for financial gain from extraction ofmining resources and because the economic conditions inQuebec are favourable. Still, mining companies have beenhappy to mention their association with Charest’s Plan Nord,which has offered to bear the costs of certain infrastructuresthey would normally have to cover themselves. One exampleis the announcement of a $200 million contribution, paid forby Quebec’s taxpayers, to northern towns such as Fermont,Chibougamau, Sept-Îles and Port Cartier, which are oftenasked to provide costly services to the mining companies.

Many of the companies that stand to benefit are not fromQuebec, or even Canada, but China and India. Iron and nic-kel in Quebec are of specific interest to Chinese companies.Soon, there will not be as much as a tonne of these two stra-tegic metals held by a Quebec company. Quebecers havebeen vocal that the production of iron concentrates and pel-lets, such as is done now, does not do as much as possible tobring value into the province. They are quite right to be hesi-tant about seeing their mineral resources shipped to Chinawithout having undergone any real value-adding process.

Opinions vary on the future of commodity prices, but ifthe price of iron concentrates were to drop to $80 per tonne,some projects underway in Quebec would at best bedelayed. It is China’s insatiable appetite that is keeping metalprices at the high levels we are currently experiencing. Andjust this past September, prices dropped to $90/t. A prudentapproach to Chinese investment is therefore appropriate.

At this time, the major suppliers of iron ore to China areBrazil and Australia, two countries that produce ore contai-ning 65 per cent to 68 per cent iron. This ore can be ship-ped directly to China, unlike deposits in the LabradorTrough, which contain just 28 per cent to 32 per cent iron,thus requiring concentration before shipping. Conse-

L ’intérêt pour le Nord québécois a débuté il y a plusieursannées. M. Charest aurait dû mentionner que l’Universitédu Québec à Chicoutimi était le précurseur du Plan Nord

alors qu’elle tenait en 1970 un colloque sur le thème « Le Nordquébécois – Un potentiel générateur d’emplois ».

Le Plan Nord est-il plus qu’un « slogan » demarketing ?

Les sociétés y étaient déjà actives avant l’apparitiondudit Plan Nord et y sont en raison du potentiel financier del’exploitation des ressources minières et du climat clémentdu Québec. Par contre, les sociétés sont heureuses de men-tionner leur association au Plan Nord Charest, qui leur offrecertaines infrastructures qu’elles devraient normalementdéfrayer. Un exemple, parmi d’autres, est l’annonce d’unecontribution de 200M$ provenant des impôts des contri-buables du Québec aux villes nordiques, telles que Fer-mont, Chibougamau, Sept-Îles, Port Cartier et d’autres, à quiles sociétés minières demandent divers services souventcoûteux.

Au Québec, ce sont le minerai de fer et le minerai de nickelqui intéressent les sociétés chinoises. Bientôt, il n’y aura plusune tonne de minerais de ces deux métaux stratégiquesdétenue par une société québécoise. Les Québécois ont rai-son d’être réticents à voir leurs ressources de minerais enChine sans véritable « transformation ». On ne peut appeler« transformation » la production de concentrés et de bou-lettes de fer expédiés aux aciéries qui les utilisent pour pro-duire de l’acier.

Il existe différentes opinions sur les prix futurs des métaux.Si le prix des concentrés de fer baissait à 80$/t, certains desprojets en cours au Québec seraient au mieux retardés – enseptembre, les prix ont déjà baissé à 90$/t. La prudence estdonc de mise. C’est l’appétit insatiable de la Chine qui main-tient les prix des métaux au niveau élevé que l’on connaît pré-sentement.

Les grands pourvoyeurs de minerais de fer à la Chine sontprésentement le Brésil et l’Australie, deux pays producteursde minerais tout-venant dont la teneur est de 65 à 68 pourcent de fer. Ils ne requièrent pas de concentration, alors queles gisements de la Fosse du Labrador titrent de 28 à 32 pourcent, et nécessitent donc la concentration. L’intérêt des socié-tés chinoises au Québec semble être un désir de diversifica-tion, alors que le Brésil et l’Australie augmentent leurproduction.

Le Plan Nord chinoisLe Québec a besoin d’ajouter de la valeur

avec sa stratégie de développement du Nord

China’s Plan NordQuebec needs to add value with its

northern development strategy parby René Dufour


quently, Chinese interest in Quebec appears to be centredon their desire to diversify their sourcing, as Brazil andAustralia continue to increase their production.

Jobs in QuebecMost high-paying jobs in metals production are in the

value-adding stages, and this includes steel milling. Thelack thereof in Quebec is of significant concern.

Furthermore, even if all else goes well in the planningstages, mines that produce concentrates cannot begin ope-rations unless an agreement is reached with a mill for thesale of their product. As a result, jobs at iron ore concentrateprojects in Quebec are beholden to steel mills overseas.

To solve this problem, I propose establishing a $25-mil-lion fund to develop technology to produce pig iron ingots,as is done with aluminum. Met-Chem, a Quebec-basedengineering company, has prepared a conceptual study forthis purpose. Brazilian firm Vale, the world’s largest ironproducer, is already at an advanced stage with a similarproject, and is making plans to reduce steelmaking costs by30 per cent. It has been reported that a metallurgicalresearch centre run by ArcelorMittal in France is also wor-king on developing similar technology.

The situation with nickel concentrates iseven more worrisome

Upon his return from a promotional junket in China,then-premier Charest announced a $400-million invest-ment by the Chinese company Jilin Jien Nickel (JJN) inmining deposits of nickel and other related metals pre-viously held by Canadian Royalties, located near Xstrata’smining claims in Nunavik.

The Cape Smith belt running to Wakeham Bay, contai-ning nickel, platinum and other metals, is the richest miningdistrict in Quebec. When Xstrata acquired Noranda Falcon-bridge, the company obtained mining rights to Raglan alongthis belt, where it holds a 70-kilometre section. The concen-trates produced are shipped by freighter and rail to Sudbury,where they undergo metallurgical processing.

Xstrata Nickel has an agreement with the First Nations in theregion to extract 1.3 million tonnes of ore per year. The com-pany has announced a substantial increase in production andexpects to obtain 40,000 tonnes of nickel in the concentratesproduced at Raglan without increasing extraction rates. Thispoints to the high concentration of nickel in these deposits.

Will we allow JJN to ship the concentrates to China andthereby effectively export high-paying jobs as well? Consi-dering the anticipated labour shortage, will we allow JJN toimport workers from China, as Chinese companies inAfrica have done? The answer should clearly be “no.”

With two nickel-platinum producers in a single region(JJN and Xstrata Nickel), shouldn’t we encourage the two pro-ducers to come to an agreement? They should follow theexample of neighbouring Newfoundland and Labrador, whichdemanded that Vale process the concentrates from the world-class Voisey’s Bay deposit on their territory. Vale will sooncomplete a $3.6-billion investment to meet this demand.

Emplois au QuébecLes emplois hautement rémunérés se trouvent principale-

ment dans la transformation des métaux avant leur expéditionhors du pays.

Bien que toutes les étapes (à savoir la délimitation desréserves, les analyses et essais métallurgiques, les études envi-ronnementales, les études de faisabilité d’un gisement) soientpositives, il n’y a pas de projet de mise en exploitation tantqu’une entente n’est pas conclue avec une aciérie qui s’en-gage à utiliser lesdits concentrés de fer. Le projet est donclimité à cet acheteur.

Je propose la création d’un Fonds de 25M$ pour le déve-loppement de la technologie de production de lingots de fer(Pig Iron), comme on le fait avec l’aluminium. Une société d’in-génierie québécoise, Met-Chem, a préparé un projet d’étudeconceptuelle pour ce faire. La société Vale du Brésil, le plusgrand producteur de fer au monde, se trouve déjà à un stadeavancé et prévoit de réduire de 30 pour cent le coût de fabri-cation de l’acier. Un centre de recherche métallurgique d’Arce-lorMittal situé en France travaillerait aussi au développementde cette technologie.

La situation est plus préoccupante quantaux concentrés de nickel

La ceinture nickélifère-platine et autres métaux de la BaieWakeham-Cap Smith est le plus riche district minier du Qué-bec. Xstrata, en acquérant Noranda-Falconbridge, obtenaitl’exploitation de Raglan sur cette ceinture où elle détient unebande de 70 km. Les concentrés produits sont expédiés parbateau et chemin de fer à Sudbury pour le traitement métal-lurgique.

Xstrata Nickel a une entente avec les autochtones de larégion pour extraire 1,3 Mt de minerais par année. La sociétéannonce une augmentation substantielle de la production,prévoyant 40 000 t de nickel dans les concentrés produits àRaglan sans augmenter le niveau d’extraction – ce qui indiquela haute teneur des gisements.

Au retour de son périple promotionnel en Chine, M. Charestannonçait un investissement de 400M$ de la société chinoiseJilin Jien Nickel en vue de l’exploitation des gisements de nic-kel et d’autres métaux associés, autrefois détenus par lasociété Canadian Royalties, situés près des claims miniers deXstrata.

Permettrons-nous à JJN d’expédier en Chine les concentrésproduits et ainsi d’exporter des emplois hautement rémuné-rés en Chine? Considérant le manque de main-d’œuvre anti-cipé, permettrons-nous à JJN d’importer des travailleurs deChine, comme les sociétés chinoises le font en Afrique? Laréponse est évidemment non.

Avec deux producteurs de nickel-platine et autres métauxdans une même région (JJN et Xstrata Nickel), ne devrait-onpas inciter les deux producteurs à s’entendre? Ils devraientsuivre l’exemple de la province voisine de Terre-Neuve-Labra-dor, qui a exigé que la société Vale traite sur son territoire lesconcentrés provenant du gisement de classe mondiale VoiséeBaie, laquelle va bientôt compléter un investissement de 3,6B$pour répondre à cette exigence.

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RoyaltiesI think that we should adopt the Australian model,

which consists of basing royalties on the gross value ofmining production. The Australian government enacted alaw to add a 30 per cent tax on the profits of an operatorwhen profits exceed a certain threshold. Australia alsolevies a tax of $21/t of carbon emissions on the 500 com-panies with the highest carbon emissions.

Newspaper articles suggest that if we were to followAustralia’s example, operators’ profitability would no lon-ger be sufficient to attract foreign companies to invest inQuebec. But this concern may be overstated. In its May2012 issue, the magazine Mining Engineering published the2011 Annual Review of the U.S. Geological Survey, whichcovered the United States but also included commentaryon the rest of the world, including Canada. The Americanbureau reported that from 2010 to 2011, at least 25 coun-tries stepped up or announced their government’s inten-tion to increase their participation in mining projects byraising taxes or royalties. Among the countries listed arethe important and very active mining jurisdictions ofChile, Peru, Indonesia, South Africa and China.

The slowdown in the Chinese economy is causing thecurrent decrease in iron ore prices. Moreover, increasedproduction in Brazil and Australia will tend to have a nega-tive effect on prices, which could jeopardize the projects inthe Labrador Trough. Obviously, royalties are far from theonly thing that affects the profitability of Quebec’s deposits.

Quebec’s mineral strategy – more thanCharest’s Plan Nord

Quebec’s mining law should require that mining bedone sustainably and responsibly. Miners’ rights must berigorously upheld while simultaneously enforcing the prin-ciples of the rational use of resources. Staff at Quebec’sministère des Ressources naturelles ought to have the tech-nical and financial resources necessary to assess situationsin which profit is the sole motivating factor.

Mineral policy must be concerned with supplying rawmaterials to metallurgical facilities, namely the Norandarefinery, the Canadian Copper Refinery (CCR) in eastMontreal, the zinc refinery in Valleyfield, and other facili-ties that provide substantial revenues to the province.

Chinese companies established in Africa import Chi-nese workers to do a variety of jobs. We cannot allow acce-lerated extraction of Quebec’s resources to proceed withthis amount of foreign intervention. Q

René Dufour is a CIM past-president who has been involved innearly every facet of the industry from education to opera-tions; including bringing the Lac Jeannine iron ore mine toproduction and founding the nearby town of Gagnon. Overhis career, Dufour has seen the National Assembly under 15different premiers, and observed the Quiet Revolution of the1960s that reshaped Quebec society. He says he “does notbelieve in retirement,” and continues to be active with theCanadian Mining and Metallurgical Foundation and the CIMMontreal branch.


RedevancesJe crois que le modèle australien qui consiste à les baser sur

la valeur brute de la production minière devrait être retenu. Legouvernement australien a voté une loi ajoutant une taxe de30 pour cent sur les profits d’un exploitant dépassant un cer-tain niveau. Aussi, en Australie, une taxe de 21$/t d’émission decarbone est imposée à 500 sociétés ayant le plus haut tauxd’émission de carbone. Des articles dans les journaux laissententendre qu’en suivant l’exemple de l’Australie, la rentabilitédes exploitations ne serait plus suffisante pour inciter lessociétés étrangères à investir au Québec. Dans son édition demai 2012, le magazine Mining Engineering publiait le Bilanannuel 2011 de la « US Geological Survey » couvrant les États-Unis mais incluant des commentaires sur le monde entier,dont le Canada. Le Bureau américain rapporte qu’entre 2010 et2011, au moins 25 pays ont augmenté ou annoncé l’intentionde leur gouvernement d’accroître leur participation aux pro-jets miniers en augmentant les taxes ou royautés. Parmi lespays énumérés, on trouve de grands pays dont la Chine, leChili, le Pérou, l’Indonésie et l’Afrique du Sud.

Le ralentissement en cours de l’économie chinoise a déjàaffecté à la baisse les prix des minerais de fer. De plus, l’aug-mentation de la production au Brésil et en Australie viendraajouter un effet négatif sur les prix des minerais de fer, ce quipourrait remettre en question les projets dans la Fosse duLabrador. On peut voir que ce n’est pas simplement les rede-vances qui déterminent l’intérêt d’exploiter chez nous.

Stratégie minérale du Québec – plus que lePlan Nord Charest

La loi minière du Québec devrait exiger que l’exploitationdes ressources minérales se fasse de manière durable et res-ponsable. Les droits d’exploitation doivent être rigoureuse-ment exercés en respectant des principes d’utilisationrationnelle des ressources. Le personnel du ministère des Res-sources naturelles devrait disposer des ressources techniqueset financières nécessaires pour apprécier les situations où leprofit est le seul but poursuivi.

La politique minérale doit se préoccuper de l’alimentationdes installations métallurgiques, telles que la raffinerieNoranda, l’affinerie de cuivre de Montréal Est, la raffinerie dezinc à Valleyfield et d’autres installations qui procurent d’im-portants revenus à la province.

Les sociétés chinoises implantées en Afrique importent dupersonnel chinois pour réaliser divers ouvrages. On ne peutpermettre une exploitation accélérée des ressources du Qué-bec avec un tel apport étranger. Q

René Dufour est un ancien président de l’ICM qui a étéimpliqué dans presque toutes les facettes de l’industrie, del’éducation aux opérations, en passant par la mise en pro-duction du projet de minerai de fer du lac Jeannine et à lafondation de la ville de Gagnon, en périphérie de la mine. Aucours de sa carrière, M. Dufour a vu 15 différents premiersministres à l’Assemblée nationale, et a observé la Révolutiontranquille des années 1960 qui a redéfini la société québé-coise. Il « ne croit pas à la retraite » et continue d’être actifauprès de la Fondation canadienne des mines et de la métal-lurgie et de la section locale de l’ICM à Montréal.

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• Stay current and receive all nine issues of CIM Magazineand biweekly CIM e-news updates.

Develop your network

Enhance your professional development

Adhésion à une section locale de l’ICM• Impliquez-vous davantage en vous joignant à l’une des 39 sec-

tions dynamiques de l’ICM; • Renforcez votre réseau professionnel en tissant des liens avec les

membres de l’industrie de votre région, lors des réunions de sec-tion organisées à intervalles régulières;

• Explorez de nouvelles occasions d’affaires en établissant des relationsavec les membres de la communauté des mines et des minéraux ;

• Partagez votre expertise avec des pairs et des étudiants, afin deconstruire une industrie plus forte et mieux informée ;

• Accédez à la liste complète des membres de l’ICM en consultantnotre répertoire annuel des membres

• Informez-vous des dernières tendances en recevant l’édition dedécembre de CIM Magazine, ainsi que nos bulletins électroniques,publiés tous les quinze jours.

Adhésion individuelle à l’ICM National • Faites avancer votre carrière à l’aide de l’accès privilégié à l’infor-

mation technique, aux membres de l’industrie et aux initiativesainsi qu’aux programmes de perfectionnement professionnel;

• Suivez l’actualité, en recevant les neuf numéros de CIM Magazine, ainsique les bulletins électroniques de l’ICM, publiés tous les quinze jours;

Développez votre réseau

Renforcez votre développement professionnel

There are many reasons to join a net-work. Whether you are seeking to buildindustry knowledge, enhance your professionalprofile or raise your company’s visibility, belonging to CIM’sdynamic and influential community provides a wealth of benefits.

Renowned for its promotion of knowledge and expertise,CIM offers multiple membership opportunities with differentlevels of engagement to meet your key business needs andprofessional goals.

L’appartenance à un réseau comporte denombreux avantages. Que vous cherchiez à enri-

chir vos connaissances de l’industrie, à améliorervotre profil professionnel ou à accroître la visibilité de votre

entreprise, vous avez tout à gagner en intégrant la communautédynamique et influente de l’ICM.

Reconnu pour son leadership en perfectionnement professionnelet pour sa promotion des connaissances et de l’expertise, l’ICM offreplusieurs formules d’adhésion impliquant différents niveaux d’enga-gement, qui vous permettront de satisfaire vos besoins d’affaires etd’atteindre vos objectifs professionnels.

Get engagedCIM membership helps drive community involvement, maximize industry knowledge and global exposure

By Dinah Zeldin

Optimisez votre niveaud’engagement

Renforcez votre implication communautaire,

vos connaissances techniques et votre visibilité

à l’échelle mondiale

Par Dinah Zeldin

086-103 CIM Community v21_Layout 1 2012-10-30 11:43 AM Page 86

• Enrich your technical knowledge with all four issues ofour peer-reviewed journal and be eligible for discountson other publications, including our technical papersand books.

• Connect with key contacts working in your field of expert-ise, exchange ideas and attend thought-provoking presen-tations by joining one of CIM’s 10 technical societies.

• Strengthen the industry by presenting papers at confer-ences, submitting technical papers, working on commit-tees, and more.

• Be recognized for your contributions to the industrythrough the coveted CIM Awards.

Student MembershipStudents receive almost all of the same benefits as an indi-

vidual national member (online access to CIM Journal avail-able only). CIM supports the next generation of industryleaders by offering free student membership and a multitudeof scholarship opportunities.

Cyber membership Designed for professionals residing outside of North

America, a cyber membership provides the same benefits asan individual national member (online access to publica-tions only).

• Enrichissez vos connaissances techniques grâce à notre revuetechnique trimestrielle évaluée par des pairs, et profitez de nosrabais sur d’autres publications, notamment nos articles tech-niques et nos ouvrages;

• Établissez des contacts clés dans votre champ d’expertise, échan-gez des idées et prenez part à de stimulantes présentations envous joignant à l’une des dix sociétés techniques de l’ICM;

• Favorisez le développement de l’industrie en présentant desarticles lors de conférences, en publiant des articles techniques,ou en siégeant sur des comités;

• Récoltez le fruit de vos contributions à l’industrie, en remportantl’un des très convoités prix d’excellence de l’ICM.

Adhésion étudianteLes étudiants ont droit à presque tous les mêmes avantages

qu’un membre régulier de l’ICM (CIM Journal accessible en ligneuniquement). Pour soutenir la prochaine génération de chefs de filede l’industrie, l’ICM offre une adhésion gratuite, ainsi qu’une multi-tude de bourses aux étudiants.

Cyber adhésion Conçue exclusivement pour les professionnels résidant à l’exté-

rieur de l’Amérique du Nord, la cyber adhésion procure tous lesavantages d’une adhésion à l’ICM (publications accessibles unique-ment en ligne).

November 2012 | 87

CIM community

CIM Technical SocietiesLes sociétés techniques de l’ICM

CIM BranchesLes sections de l’ICM

CANADIAN MINERAL PROCESSORS SOCIETY SOCIÉTÉ CANADIENNE DU TRAITEMENT DES MINERAIS

ENVIRONMENTAL & SOCIAL RESPONSIBILITY SOCIETYSOCIÉTÉ POUR LA RESPONSABILITÉENVIRONNEMENTALE ET SOCIALE

GEOLOGICAL SOCIETYSOCIÉTÉ DE LA GÉOLOGIE

MAINTENANCE & ENGINEERING SOCIETYSOCIÉTÉ DE L'INGÉNIERIE ET DE L'ENTRETIEN

MANAGEMENT & ECONOMICS SOCIETYSOCIÉTÉ DE LA GESTION ET DE L'ÉCONOMIE MINÉRALE

METALLURGY AND MATERIALS SOCIETYSOCIÉTÉ DE LA MÉTALLURGIE ET DES MATÉRIAUX

MINING SOCIETY OF NOVA SCOTIASOCIÉTÉ MINIÈRE DE LA NOUVELLE-ECOSSE

ROCK ENGINEERING SOCIETYSOCIÉTÉ DE LA MÉCANIQUE DES ROCHES

SURFACE MINING SOCIETYSOCIÉTÉ D'EXPLOITATION MINIÈRE À CIEL OUVERT

UNDERGROUND MINING SOCIETYSOCIÉTÉ D'EXPLOITATION MINIÈRE SOUTERRAINE

DISTRICT 1 NOVA SCOTIA, NEW BRUNSWICK, PEI, NEWFOUNDLAND ANDLABRADOR• LABRADOR• NEW BRUNSWICK• NEWFOUNDLAND

DISTRICT 2 QUÉBEC• AMOS• CHAPAIS-CHIBOUGAMAU• HARRICANA• MONTRÉAL• QUÉBEC• QUÉBEC NORD-EST• ROUYN-NORANDA• SAGUENAY• THETFORD MINES

DISTRICT 3 ONTARIO (EAST OF THE 86TH MERIDIAN)• COBALT• GTA WEST• HAMILTON• NORTHERN GATEWAY• OTTAWA• PORCUPINE• SUDBURY• SUDBURY GEOSOC SECTION• TORONTO

DISTRICT 4 ONTARIO (WEST OFTHE 86TH MERIDIAN), MANI-TOBA, SASKATCHEWAN ANDNUNAVUT• RED LAKE• SASKATOON• SASKATOON GEOSECTION• THOMPSON• THUNDER BAY• WINNIPEG

DISTRICT 5 ALBERTA (MACKEN-ZIE DISTRICT) AND NWT• CALGARY• EDMONTON• OIL SANDS• YELLOWKNIFE

DISTRICT 6 BRITISH COLUMBIAAND YUKON• CROWSNEST• NORTH CENTRAL BC• SOUTH CENTRAL BC• TRAIL• VANCOUVER

INTERNATIONAL• DAKAR, SENEGAL• LIMA, PERU• LOS ANDES, CHILE



CIM community

Adhésion corporative• Obtenez de la visibilité à l’échelle mondiale et soyez reconnu en

tant que un leader lors d’événements de classe mondiale organi-sés par l’industrie;

• Influencez l’avenir de l’industrie en appuyant les initiatives et lesprogrammes de sensibilisation de l’ICM;

• Bâtissez une main-d’œuvre plus solide et favorisez le perfection-nement professionnel de vos employés;

• Faites-vous connaître dans notre répertoire annuel des membres;votre profil, votre logo et vos coordonnées y occuperont uneplace de choix, dans les versions en ligne et imprimée;

• Assurez-vous une d’une meilleure placé à notre salon commerciallors du Congrès de l’ICM ;

• Désignez votre représentant corporatif qui pourra bénéficier detous les avantages d’une adhésion régulière.

L’ICM joue un rôle de premier plan dans la promotion de l’expertisesectorielle et la diffusion des bonnes pratiques, aussi bien au Canadaque dans le reste du monde. Fort d’une riche tradition, l’ICM façonne lesecteur minier à l’échelle mondiale grâce à son important réseau d’ex-perts techniques et son support des pratiques minières durables.

Pour en savoir plus sur la communauté pour une expertise de premierplan, visitez le www.cim.org.

Traduit par Erik Stout

Faites rayonner votre entreprise

ICM

Corporate Membership• Enhance your global visibility and be recognized as a

leader at world-class industry events.• Shape the future of the industry by supporting CIM out-

reach initiatives and programs.• Build a stronger workforce and promote your employees’

professional growth.• Be featured in our annual Membership Directory, in which

your company profile, logo and contact details will beprominent – both in print and online.

• Get a hot spot on our tradeshow floor by receiving prioritybooth placement at the annual CIM Convention.

• Appoint a corporate representative to enjoy all of the ben-efits of an individual membership.

CIM is the foremost voice for the advancement of leadingindustry expertise and promotion of best practices – both inCanada and worldwide. Drawing upon its rich heritage,CIM plays an integral role in shaping the mining industrythrough its extensive global network of technical expertsand its endorsement of sustainable mining practices.

Discover more about your community for leading industryexpertise at www.cim.org.

Raise your company visibility

CIM


http://www.cim.org

http://www.cim.org

This past September, the CIM national office staff weregiven an opportunity to leave behind the computer stationsof our downtown Montreal offices to travel 500 kilometres tonorthern Quebec and visit a pair of mine sites: Agnico-EagleMines’ Lapa underground operation in Val-d’Or and Osisko’sCanadian Malartic open-pit mine in Malartic.

The trip had been a dream of CIM’s executive directorJean Vavrek for quite some time. However, the logistical chal-lenge of arranging a trip for the entire office staff was no easytask. The trip was also made possible by Agnico-Eagle andOsisko staff, and Air Creebec, which provided transporta-tion, allowing 23 members of CIM’s national staff to get aglimpse of the daily workings of a mine site.

“CIM’s investment was well worth it,” says Vavrek. “Manyof the staff had never been at a mine site, and witnessingoperations provided them with an enhanced understanding

En septembre dernier, les employés du bureau national de l’ICMont quitté le centre-ville de Montréal et leurs écrans d’ordinateur pourpartir à 500 km vers le nord du Québec, afin d’y visiter les installationssouterraines Lapa d’Agnico-Eagle, à Val-d’Or, et la mine à ciel ouvertCanadian Malartic d’Osisko, à Malartic.

Jean Vavrek, directeur général de l’ICM, rêvait de ce voyage depuisun bon moment. Le transport de l’ensemble du personnel a cepen-dant présenté d’importants défis logistiques. Les employés d’Agnico-Eagle et d’Osisko ont rendu possible la réussite de l’initiative, toutcomme Air Creebec, qui a assuré le transport des 23 employés vers lenord, où ils ont pu avoir un aperçu du fonctionnement quotidiend’une mine.

« L’investissement de l’ICM a porté ses fruits, note M. Vavrek. Plu-sieurs de nos employés n’avaient jamais vu une mine. Le fait d’êtretémoin des opérations sur le terrain leur a permis de mieux com-prendre la communauté que nous servons. »

CIM community


Nadia Bakka cleans off her boots aftera visit to Agnico-Eagle’s Lapa mine.

Jo-A

nne

Wat

ier

CIM national on the groundStaff take first-hand look at drilling and digging

Le bureau national de l’ICM sur le terrainLe personnel observe directement les activités de forage et d’extraction

By / par Dinah Zeldin

086-103 CIM Community v21_Layout 1 2012-10-30 1:11 PM Page 90

November 2012 | 91

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of the community weserve.”

Much like miners on theground, we began our dayearly. Staff arrived at Lapa’smodern facility at around6:30 a.m. to a warm recep-tion from the mine’s chiefengineer, Eric Lecomte, andwere whisk ed off on a three-hour tour of the company’shigh-grade gold mine.

“This visit allowed me tobetter understand the com-plexity and scale of the chal-lenges our members have toface,” comments Mar jo laineDugas, CIM’s director ofmembership services.

Lunch was accompa-nied by an informative presentation from Agnico-Eagle,chronicling Lapa’s development from initial explorationstages undertaken by Breakwater Resources in 1981, to thebeginnings of construction in 2004, and finally to commer-cial production in 2009.

“It was impressive to learn how much time and hard workgoes into developing a mine site,” says Lise Bujold, CIM’sdirector of events. “It reinforced how important the workthat we do at the office is. I am glad to provide services tosupport such a dedicated industry.”

After lunch, staff travelled to the Canadian Malartic mine,Osisko’s flagship property, which is a low-grade, high-volumeopen pit operation with 10.7 million ounces of proven andprobable gold reserves.

There, mine staff detailed how, in order to access thedeposit that reaches beneath the town of Malartic, the com-pany fully covered the costs of relocating an entire neigh-bourhood and built a state-of-the-art elementary school.Residents of the town were in support of the project, andmany were hired by Osisko as the project developed.

“Visiting the Malartic mine showed me it is possible tooperate a mine next to a small town, and that the two cancoexist,” reflects Zoë Koulouris, CIM Magazine’s copy editorand communications coordinator. “This trip provided insightinto how mines can help maximize a region’s economic bene-fits, while ensuring a sustainable environment is maintainedfor people living in the area.”

“One of the major highlights of the trip was witnessinghow passionate the employees were at both mines,” saysLaura Foley, membership coordinator. “I felt a real sense ofsocial responsibility and care for the community.”

The field trip may have been the first foray into the fieldfor many CIM staff members, but it will surely leave a lastingimpression and enhance the connection we feel to mining ona daily basis – each in our own ways. CIM

Tout comme lesmineurs, les employés ontdû commencer leur jour-née très tôt. L’équipe estarrivée vers 6 h 30 à l’éta-blissement moderne deLapa, où Éric Lecomte, ingé-nieur en chef, l’a chaleureu-sement accueillie. Il s’en estsuivi une visite de troisheures de la mine à hauteteneur en or.

« Cette visite m’a permisde mieux comprendre lacomplexité et l’ampleur desdéfis auxquels nos mem -bres sont confrontés », noteMarjolaine Dugas, directricedes services aux membresde l’ICM.

Le dîner a été accompagné d’une présentation informatived’Agnico-Eagle, décrivant le développement de Lapa, de l’explorationeffectuée par Breakwater Resources en 1981 jusqu’à la production com-merciale en 2009, en passant par le début de la construction en 2004.

« J’ai été surprise de découvrir combien de temps et d’efforts sontnécessaires au développement d’une mine, raconte Lise Bujold, directrice des événements de l’ICM. Cela confirme l’importance du tra-vail que nous effectuons au bureau. Je suis heureuse de servir uneindustrie dont la communauté est aussi dévouée. »

Après le dîner, l’équipe s’est rendue à Canadian Malartic, propriétéprincipale d’Osisko. Il s’agit d’une mine à ciel ouvert, à faible teneur età volume élevé, avec 10,7 millions d’onces de minerai d’or prouvés etprobables.

Le personnel de la mine a expliqué que pour accéder au gisementqui s’étend sous la ville de Malartic, Osisko a assumé l’intégralité descoûts de déplacement de tout un quartier et a bâti une école primaireultramoderne. Les habitants de Malartic ont soutenu le projet, et plu-sieurs d’entre eux ont été embauchés par Osisko au cours du dévelop-pement du projet.

« La visite de cette mine m’a montré qu’il est possible d’exploiter unsite à proximité d’une petite ville et d’établir une coexistence harmo-nieuse, explique Zoë Koulouris, réviseure de CIM Magazine et coordon-natrice des communications. Je comprends maintenant comment lesmines peuvent assurer des bénéfices économiques tout en assurant ladurabilité environnementale pour les habitants de la région. »

« Ce qui m’a marqué, c’est la passion qui anime les employés de cesdeux emplacements, affirme Laura Foley, coordonnatrice des servicesaux membres. J’ai senti chez eux un réel sens de la responsabilitésociale et une préoccupation de la communauté. »

Même si pour plusieurs employés de l’ICM il s’agissait d’un pre-mier aperçu des activités sur le terrain, cette excursion restera àcoup sûr gravée dans l’esprit de tous. En effet, ils ont tous senti à leurfaçon un renforcement de leur lien avec le monde de l’exploitationminière.


ICM

Marjolaine Dugas (left), Lucie Vincent (right) and other staff enjoy their underground adventure.

Pete

r Bra

ul


November 2012 | 93

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Robert Lipic has never balked atobstacles in his path. In fact, the trail-blazing president and CEO of MiningTechnologies International (MTI) hasbeen shot at and kidnapped while ona quest to forge business relationshipsin developing countries. Lipic, therecipient of the 2012 MembersAward, presented to those es teemedto be unsung heroes of the miningindustry, continues his mis sion toexplore new markets and opportuni-ties for Canada’s mining equipmentsupply sector, though now largelyfrom the comfort of his homeland.

Looking back over Lipic’s 40-plusyears in mining, it is evident he hasmade a significant impact. Reflectingon his success, three things stand outto him: he puts relationships aboveall else; he is insatiably curious; and heis driven to find better ways of doingthings.

“When I started, a big (raise boring)hole was five feet in diameter,” Lipicsays, awed by the mining advance-ments that have been made during hiscareer. “Today there are people whoclaim to be able to drill 3,000-foot-long holes, 10 metres in diameter.”

“MTI introduced a drill rod a fewyears back that helped make that pos-sible,” Lipic adds proudly. “Hats off toCanada; we did it here at home firstand now the rest of the world is goingto try and copy us. Watching thatover the next 20 years will be excit-ing.” At 68, Lipic is clearly having funand has no immediate plans to getout of the game.

Before buying the company thatwould eventually become MTI, Lipicearned his stripes by working in min-eral exploration, mining development,sales and even working underground.

He has since built MTI into a $140-million-per-year, 100-per-cent Cana-

dian-owned company, and the coun-try’s largest manufacturer and supplierof mining equipment.

Lipic attributes MTI’s success tobuilding strong relationships. He isproud to say that during the lastrecession not a single customer can-celled an order, adding that MTI hasnever had a bad international receiv-able, and that some of MTI’s

customers have been with him formore than two decades.

Known for his negotiating staminaand willingness to down the occasionalshot of snake’s blood to seal a deal, hehas strategically built business ties withcompanies in more than 20 countries.“I’m of the opinion that we have greatstandards in Canada,” Lipic says. “Ifwe’re able to meet those standards forthe Canadian industry, we can take thatsame knowledge and provide it tointernational clients.”

MTI is headquartered in Sudbury,with operations in North Bay andMontana, employing over 400 Canadi-ans and roughly 60 Americans.

“You always hear people rushing toplaces in the world where there’scheaper labour,” Lipic says. “I’ve neverlooked at running off. I say ‘take thetalent we have at home and use it tomake top-quality equipment.’”

MTI has brought a number ofgame-changing solutions to the mar-ket over the years. Anticipating newrestrictions coming out of the U.S.Environmental Protection Agency sixyears ago, MTI saw an opportunity todevelop a hybrid loader for narrowvein mining that would be safer, moreefficient and ultimately producefewer emissions. As the companymakes the final improvements to itsbattery technology before taking it tomarket this year, plans for a mid-sizeloader are already on the drawingboard in the engineering department.Lipic hopes to be testing the new pro-totype in 2013.

Lipic is driven to discover new waysto improve MTI’s product offerings, tobuild new supply chains and to takeMTI further internationally. After allthese years, what motivates him to stayin the game? “It’s always the intrigue toclimb a higher hill.” CIM

Made in CanadaMembers Award winner Robert Lipic builds global supply chain

By Kim Lear

“I’ve never looked

at running off.

I say ‘take the talent

we have at home

and use it to make

top-quality

equipment.’”

A w a r d W i n n e r


November 2012 | 95

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Annie Lévesque, vice president/vice-chair (ICM section Québec Nord-Est); Dean Journeaux, president andCEO/président et chef de la direction, New Millenium Iron; Patrice Tremblay, chair/président (ICM sectionQuébec Nord-Est); Jean-Marc Blake, vice-president organizational effectiveness/vice-président efficacitéorganisationnelle, Tata Steel Minerals Canada

The CIM Quebec North-East (QNE) Branch has been suc-cessful in mobilizing members to take an active role in localindustry for over 50 years and continues to provide support infilling the industry’s ongoing training and networking needs inthe region. The QNE Branch’s territory stretches from Port-Cartier to Havre-Saint-Pierre, inland to the town of Fermontand north to Schefferville.

The Branch was founded in 1960 by B.S. Imrie, a miningengineer employed by Iron Ore Company of Canada. InNovember 2011, tthe Branch celebrated its 50th anniversaryat a gala event in Sept-Îles. Several former Branch chairmen,as well as the executive director of CIM’s national office, JeanVavrek, attended the event.

In late August, Bertrand Lessard had to resign from his roleas Branch chairman because he was transferred to Montreal byhis employer, Cliffs Natural Resources. Fortunately, a replace-ment was found quickly: Patrice Tremblay, superintendant ofplanning, quality, and sales at Rio Tinto IOC took on the role.

The QNE Branch plays an active role in organizing activitiesfor the general public, in collaboration with regional corpora-tions. For example, it contributed to a public presentation ofAlderon Iron Ore Corp.’s project in the Wabush-Labrador Cityarea on February 20, 2012. The Branch also took part inpreparing the general presentation of the Arnaud mine project,which took place on May 8 of this year, and in providing sup-port for New Millennium Iron’s Taconite project, a plan todevelop two iron deposits in the Labrador Trough in September– one near Schefferville and the other near Labrador City.


CIM

Plus de 50 ans de réussiteLa section Québec Nord-Est appuie les projets de la région

By/par Alain Castonguay

La section Québec Nord-Est de l’ICM réussit à mobiliser desmembres pour qu’ils jouent un rôle actif dans l’industrie locale depuisplus de 50 ans. De plus, la section contribue à combler les besoins del’industrie en formation continue et en réseautage dans la région. Lasection Québec Nord-Est (QNE) couvre le territoire de Port-Cartier àHavre-Saint-Pierre, et comprend aussi les municipalités de Fermont etSchefferville.

La section a été fondée en 1960 par B.S. Imrie, un ingénieur minierà l’emploi de la compagnie minière Iron Ore Company of Canada. Ennovembre 2011, le 50e anniversaire de la section a été souligné parun gala à Sept-Îles, auquel ont participé plusieurs anciens présidentsde la section ainsi que le directeur général du bureau national del’ICM, Jean Vavrek.

À la fin du mois d’août, Bertrand Lessard, président de la section,a dû céder son poste après avoir été muté à Montréal par sonemployeur, Cliffs Natural Resources. Heureusement, un nouveauprésident a été trouvé rapidement. Il s’agit de Patrice Tremblay, unsurintendant de la planification, de la qualité et des ventes chez Rio-Tinto IOC.

La section joue un rôle actif dans l’organisation d’activités des-tinées au grand public, en collaboration avec les entreprises régio-nales. Ainsi, le 20 février 2012, elle a contribué à la présentationpublique d’un projet mené par l’entreprise Alderon Iron Ore Corp.dans le secteur de Wabush-Labrador City. La section a égalementcollaboré à la présentation générale du projet minier Arnaud, le 8mai dernier, et à une activité similaire, en septembre 2012, pour leprojet Taconite de la société New Millenium Iron, qui prévoit d’ex-ploiter deux gisements ferreux dans la fosse du Labrador – l’unprès de Schefferville et l’autre près de Labrador City. ICM

50 years of successQuebec North-East Branch supports region’s projects

Jean

-Guy

Gou

geon

Who’s who / Qui sont ils?2012 Quebec North-East ExecutiveCHAIR / PRÉSIDENT Patrice Tremblay

VICE-CHAIR / VICE-PRÉSIDENTE Annie Lévesque

SECRETARY-TREASURER / SECRÉTAIRE-TRÉSORIER Luc Gagnon

ADMINISTRATOR / ADMINISTRATEUR Martin Lévesque

Key volunteers / Principaux bénévolesPROGRAMMING / PROGRAMMATION Donald Galienne, Raynald Ouellet, Carl Allard, Roger Doyle & Hector Blake

COMMUNICATIONS AND PUBLIC RELATIONS /COMMUNICATIONS ET RELATIONS PUBLIQUESMireille Joncas, Jean-Guy Gougeon & Mathieu Dionne

MEMBER RELATIONS / RELATIONS AVEC LESMEMBRES Paul Bilodeau, Richard Comeau & Mireille Joncas

SPONSOR RECRUITMENT / RECHERCHE DE COMMANDITES Carol Lavoie & Sylvain Larivière

SCHOLARSHIPS / BOURSES D’ÉTUDESAndré Legendre & Jean Mailhot

SOCIAL PROGRAMMING / ACTIVITÉS SOCIALESPaul Bilodeau

B r a n c h P r o f i l e



CIM community

South Central British Columbia(SCBC) is rich in more than metals andminerals: the region has a strong,tightly knit community of mining pro-fessionals, who come together to form

Something for everyoneSCBC Branch executive focuses on meeting all members’ needs

By Alexandra Lopez-Pacheco

the CIM SCBC Branch in Kamloops. Atover 220 members, the Branch is oneof the strongest in the province andwas awarded the Mel W. Bartley Awardfor its vitality.

“I think the credit goes to our exec-utives, who are very dedicated andwork very hard, and to the loyal sup-port of our sponsors, the mines in theregion and our members,” says RichardWeymark, the Branch’s chair.

According to Weymark, the Branch’ssuccess is due to the high calibre of thetechnical sessions at events, and thestrong personal ties members have de -veloped over the years. “There’s a lot ofshared history and a lot of long rela-tionships among our members,” he ex -plains. “People look forward to comingback to our annual general meetingand seeing all their friends. They havehigh expectations of the social pro-grams, as well as of the quality of thetechnical papers, charities, and schol-arships that we are able to fund with allthe revenue generated from the event.”

Mining activity in the region isbooming with copper mines like High-land Valley Copper and Copper Moun-tain operating at full steam, nascent

From left: Terry Lynds, Ross Lowry, Jack McLeod, John Austerberry and Randy Lynds enjoy a game of golf.

Phot

os: K

elly

Tuo

hey

A w a r d W i n n e r


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mines like New Afton ramping up, andgold exploration at a high. And theSCBC Branch is keeping pace, providingeducational opportunities, fun timesand a sense of community to the largenumbers and a diverse group of miningprofessionals coming into the region.

“When we’re planning our technicalprogramming, we try to cover a reallybroad spectrum, from updates on cer-tain projects within the province, tointeresting developments at an existingmine, from people, to regulatory toenvironmental to maintenance issues,”says Weymark. The social program-ming also has to appeal to all, so itincludes everything from wine andfood pairing to a golf tournament andbanquet on the final evening. “We meetsix times a year and debrief on everyevent, talking about what we did andwhat we could do better,” he adds. “In

the past, our attendance at the banquetwasn’t up to what we wanted it to be,so this year, we switched it to a gour-met barbeque. We went with some-thing more casual so people could goafter the golf tournament without hav-ing to throw their tie and jacket on. Wegot a lot of positive feedback.”

Throughout the rest of the year theBranch activity calendar is full ofevents, such as Distinguished Lectur-ers’ presentations and the annual Kam-loops Mining Day, which attractsthousands of people of all ages. “Weinvite all the different mines in the areaand vendors to have booths with fam-ily- oriented ac ti vities. It’s a fun day toraise awareness about mining,” ex -plains Weymark. The Branch will alsocontinue to focus on providing rele-vant events and will be hosting MEMO2013 next fall.

SCBC executives plan to maintainthe vitality of the Branch by recruitingnew members and by sharing expertiseand enthusiasm with the younger gen-eration. “Our biggest challenge hasbeen getting people from the newermines in the area involved,” Weymarksays. “But after a lot of phone calls,many came on board. Going forward,our challenge will be getting theyounger members engaged in ourexecutive.”

In keeping with CIM’s commitmentto promote the development of thenext generation of mining profession-als, the Branch invests heavily in edu-cation, including $150,000 for a roomin Thompson Rivers University’s Houseof Learning, regular contributions tothe Mineral Resource Education pro-gram of British Columbia, and variousannual bursaries to students. CIM



CIM communityI n t e r n a t i o n a l

Strength in numbersCIM develops partnerships to foster international collaboration

By Dinah Zeldin

Members of the organizing committee for HydroProcess 2012, from left: Carlos Barahona, executive director andgeneral manager at Gecamin; Sergio Castro, chair and manager, technical processing at BHP Base Metals, Chile;Virginia Ciminelli, co-chair and professor, Universidade Federal de Minas Gerais, Brazil; Nathan Stubina; JesúsCasas, technical coordinator, Gecamin.

is set to host the event in Quebec City.Jan Nesset, an active CIM member andexperienced mineral processing consult-ant with NesseTech Consulting ServicesInc. in Ontario, will be on the technicalcommittee of the IMPC 2014. “Jan beinginvolved will keep [CIM] up to date onwhat they are planning and help usdevelop our curriculum for 2016,”Stubina explains.

Gecamin staff will attend the Cana-dian Mineral Processors’ Conference inOttawa this coming January to inviteCIM members to IMPC 2014. The eventscompany will also promote IMPC 2016on their website and at their other min-ing events. “We are focused on buildingsynergies with sister societies and eventcompanies to support one another’s com-munication efforts and to raise awarenessof upcoming events,” Stubina says.

In the meantime, CIM has alreadybegun preparing to host the IMPC.Stubina and James Finch, industry pro-fessor of mineral processing at McGillUniversity, who will head the technicalcommittee in 2016, travelled to IMPC2012 in New Delhi, India, last Septem-ber to present CIM’s plans for IMPC2016. CIM

Cementation makes top employers list again

Ontario-based mine contracting and engineering firm Cementation Canada hasbeen named one of Canada’s Top 100 Employers for 2013, making it the sixthtime it receives this honour. The annual competition is managed by MediacorpCanada, publisher of directories and guides that help job seekers find high-rank-ing employers. The employer’s graded areas include physical workplace; workand social atmosphere; health; financial and family benefits; vacation and timeoff; employee communications; performance management; training and skillsdevelopment programs; and community involvement. Cementation attracts andretains workers by providing benefits and resources that meet the needs ofemployees and their families. “The most important aspect about this competitionfor us is not the recognition, but the process,” said Penny English, HR solutionsmanager for Cementation Canada.

ACHIEVEMENTS

financing of projects and regulatorychanges. “It is essential for our membersto talk about things like environmentalissues, sustainability and new processingtechnologies with sister societies andcompanies in other parts of the world,”he points out.

Gecamin will host the InternationalMineral Processing Congress (IMPC) inSantiago in 2014, two years before CIM

With about 70 per cent of Canadianmining assets located abroad, the Cana-dian mining industry must build strongties with industry organizations aroundthe world – especially with those operat-ing in regions where Canadian presenceis strong. CIM is currently focused onforging connections with organizationsin Latin America and the Caribbean,where 34 per cent of Canadian miningassets are found.

Nathan Stubina, vice-president inter-national at CIM and manager of the Bar-rick Technology Centre, is spearheadingthis initiative by collaborating withGecamin, a mining events companybased in Santiago, Chile. This year,Stubina sat on the steering committeefor HydroProcess 2012, an internationalseminar on process hydrometallurgy. Hewas also a keynote speaker at the event,which was held in Santiago from July 11to 13.

Stubina’s presentation, “Mining andMetallurgy at a crossroads: the issues ourindustry will be facing,” addressed criti-cal issues confronting industry across theglobe, such as attracting and retainingpersonnel, dwindling ore grades, market


November 2012 | 99

CIM community

Now in PeruCIM Branch opens in Lima

By Dinah Zeldin

Canadian mining companies have abig stake in Peru. With an estimated$50 billion to be invested in new proj-ects in the country over the next fiveyears, the region is full of opportunitiesfor development, but there are obsta-cles to overcome. Tougher legislation,stricter scrutiny of environmentalimpacts and shortages of qualifiedlabour, are all issues Canadian compa-nies must address to maintain theirgrowth and good standing in theregion. To support Canadian industryand face these issues with a unitedfront, Bertrand DeWindt, owner ofSteps Up Consulting, led the formationof a CIM Branch in Lima.

“There are so many opportunitiesaffecting mining in Peru that the indus-

try needed an integrator to addressthem,” explains DeWindt. “We wantedto provide a place where this discussioncan happen. If we can find like-mindedpeople and work together, we can comeup with proposals that will be good forthe industry and for the country.”

The official opening of the Branchtook place on November 12 at theWestin Hotel and Conference Center inSan Isidro, a district of the Limaprovince. The event featured an ad -dress from John Pollesel, COO for ValeCanada, who has extensive experienceworking in Peru.

Attendees included Peruvian andforeign government representatives,accredited diplomats and representa-tives from the major mining and min-

ing-related companies operating inPeru. During the event, attendeeswere invited to become Branch mem-bers and to register for the Branch’sinaugural event, Innovations for theMining Sector for 2013, a two-dayconference held November 29-30,featuring panel discussions on keyinnovations being applied to develop-ing projects in the region.

The event closed with a cocktailparty, sponsored by Golder Associ-ates. Proceeds from all tickets pur-chased went to funding Branchoperations. The creation of the Branchwas sponsored by Hatch, Steps UpConsulting, Global Business Confer-ences LLC, SNC Lavalin and JacobsEngineering Peru. CIM


Michel Jébrak is a man of bothacademic knowledge and hands-on experience. He is a professor atUniversité du Québec à Montréal(UQAM) and the author of 100Innovations in the Mining Industry.Jébrak holds doctorates in min-ing exploration and in sciencesfrom the University of Orléansin France, and he has travelledextensively in Africa, the MiddleEast and Australia, consultingfor global mining companies, gov-ernments and international organizations. “As a geologist,administrator and teacher, I seek to understand howresearch leads to new discoveries and products, as well asto the creation of wealth,” says Jébrak, who is currentlythe mining entrepreneurship chair at UQAM. This year, hewill be sharing his research and findings as a CIM Distin-guished Lecturer.

CIM: What has been the focus of your research?Jébrak: Over the last two years, I’ve been looking atsimilarities and differences between the situation in theglobal mining industry today and what it was in the late19th century. I was really surprised by the similarities. Atthe end of the 19th century, you see a big increase in thenumber of organi zations in North America, which resultedin a move of political power from London to New YorkCity. There was also an increase in the demand for – andmining of – metals, as well as in the use of new metals.People were beginning to mine new copper, nickel andaluminum deposits. In order to sustain this change, therewas a lot of innovation, especially in the metal lurgicalindustry where people were able to develop newtechniques.

CIM: How does this compare with what is happening todayand what are the differences you observed?Jébrak: Today, we also have a big increase in the number oforgani zations, especially operations in China. We have ashift in political power from New York City to Beijing. We

Michel Jébrak est un homme quiallie savoir universitaire et expériencepratique. Professeur à l’Université duQuébec à Montréal (UQÀM) et auteur del’ouvrage 100 innovations dans le secteurminier, il détient deux doctorats de l’Uni-versité d’Orléans (France), en explorationminière et en sciences, et a effectué denombreux voyages en Afrique, au Moyen-Orient et en Australie, en tant queconseiller auprès d’entreprises minièresmondiales, de gouvernements et d’orga-nismes internationaux. « En ma qualité de

géologue, d’administrateur et d’enseignant,je cherche à comprendre en quoi la recherche mène à des décou-vertes et à de nouveaux produits, ainsi qu’à la création de richesses »,explique M. Jébrak, qui est actuellement titulaire de la Chaire enentreprenariat minier à l’UQÀM. Invité à s’exprimer cette année entant qu’éminent conférencier de l’ICM, il aura l’occasion de commu-niquer le fruit de ses récentes recherches historiques.

ICM : Sur quel sujet ont porté vos recherches?Jébrak: Au cours des deux dernières années, je me suis penché surles ressemblances et les différences entre la situation actuelle del’industrie minière mondiale et celle de la fin du 19e siècle. J’ai été trèssurpris par tous les parallèles entre les deux époques. À la fin du19e siècle, le nombre d’organisations en Amérique du Nord a connuune hausse rapide, ce qui a provoqué un transfert du pouvoirpolitique de Londres vers New York. La demande et l’extraction demétaux ont également connu une forte expansion, tout commel’utilisation de nouveaux métaux ou la diversification des métauxextraits. On commençait alors à exploiter de nouveaux gisements decuivre, de nickel et d’aluminium. Pour appuyer tous ces changements,de nombreuses innovations ont eu lieu, particulièrement dansl’industrie métallurgique, où de nouvelles techniques ont vu le jour.

ICM : Comment compareriez-vous cette situation avec ce qui sedéroule aujourd’hui? Quelles différences avez-vous observées?Jébrak: Nous observons aussi une forte augmentation du nombred’organisations, particulièrement en Chine, un transfert du pouvoirpolitique de New York vers Beijing, et l’introduction de nouveauxmétaux, bien qu’il s’agisse actuellement d’un marché de niche.


CIM communityD i s t i n g u i s h e dL e c t u r e r

Fresh perspective Michel Jébrak examines“Innovation in Mining Exploration”

By Alexandra Lopez-Pacheco

Une nouvelleperspective

Michel Jébrak examine « L’innovation en

exploration minière »

Par Alexandra Lopez-Pacheco


November 2012 | 101

CIM community

also have new metals being introduced, although they arecur rently niche markets.

While we have some innovation, it is not as abundant asit was in the 19th century. From 1840 to 1880, there wasthe industrial revolution, as well as many inventions anddevelopments in transportation, which the mining industryused at the beginning of the 20th century. For instance,there was a lot of innovation at Bingham Canyon in theU.S., one of the largest copper deposits in the world. Theproject led to conceptual innovation because it was a low-grade copper deposit, which was not a typical target formining companies at that time. There were also technicalinnovations that made mining Bingham Canyon possible,like crushers, discovered 20 years earlier, and the flotationprocess, which surfaced in Australia.

In order to meet the growing demand for metals, there wasa significant amount of innovation. Today, we have a techno-logical revolution, but for the mining industry, it is not whatis known as disruptive innovation. In other words, it does notproduce transformational change. For mining, I would say itis mostly business as usual.

CIM: But are we not innovating? There is research anddevelopment going on in Canada.Jébrak: There is but it is dispersed across small research centresfrom coast to coast. In contrast, Australia has had a nationalinnovation strategy in mineral resources for more than 20years. It set up key centres in mineral exploration and insustainable mining, recruiting some of the world’s best experts.New geophysical techniques, such as TEMPEST and airbornegravimetry, were developed by Australian companies. We arealready behind, I am afraid. But we are organizing. The CanadaMining Innovation Council is a good example, but it needsmore government funding and we need to move faster.

CIM: What is the risk if we do not ramp up our innovationresearch?Jébrak: Canada will be left behind while the world movesforward with innovation. China is gradually be coming a keyplayer. They were not really on the map in terms of mininginnovation 10 years ago. Now Chinese companies areamong the world’s largest. The number of Chinese-re fereedpublications in mineral explor ation is booming. NewChinese sci entific journals on mineral deposits in Englishhave emerged. There are 25,000 students studying geo -sciences in the University of Beijing, but less than 1,000 inthe entire province of Quebec. CIM

TO BOOK A DISTINGUISHED LECTURER visit www.cim.org, call (514) 939-2710, or email [email protected].

POUR DEMANDER UN CONFÉRENCIER, visitez www.cim.org, téléphonez au (514) 939-2710, ou envoyez un courriel à [email protected].

Les innovations sont toujours là, mais pas en aussi grand nombrequ’au 19e siècle. Les années 1840 à 1880 ont été le théâtre de la Révo-lution industrielle, ce qui a mené à divers développements et inven-tions dans le domaine des transports, dont l’industrie minière a su tirerprofit au début du 20e siècle. Les innovations ont été nombreuses àBingham Canyon (États-Unis), par exemple, lieu de l’un des principauxgisements de cuivre au monde. Il s’agissait d’un gisement à faibleteneur en cuivre, une cible inhabituelle pour les sociétés minières del’époque, ce qui a favorisé les innovations conceptuelles. L’exploitationminière de Bingham Canyon a également été favorisée par des inno-vations techniques, telles que les broyeurs, découverts 20 ans aupara-vant, ou, encore, le processus de flottation, apparu en Australie.

La demande croissante de métaux a donné lieu à des innova-tions considérables. Aujourd’hui, nous vivons une révolution tech-nologique, mais il ne s’agit pas d’innovations radicales pour lesecteur minier. Autrement dit, elles n’ont pas mené à des change-ments transformationnels. Je dirais que pour notre secteur, les acti-vités suivent leur cours habituel.

ICM : Mais pourquoi n’innovons-nous pas? Le Canada estpourtant un pays de recherche et de développement.Jébrak: C’est vrai, mais ces activités sont dispersées dans diverspetits centres de recherche aux quatre coins du pays. Par contraste,l’Australie dispose depuis plus de 20 ans d’une stratégie nationaled’innovation en ressources minières. Plusieurs centres clésd’exploration minière et de développement minier durable y ontété créés, ce qui a permis de recruter des experts de classemondiale. De nouvelles techniques géophysiques, telles queTEMPEST et la gravimétrie aéroportée, sont l’œuvre d’entreprisesaustraliennes. J’ai bien peur que nous ayons déjà accumulé uncertain retard. Cependant, nous avons commencé à nous organiser.Le Conseil canadien de l’innovation minière constitue un belexemple, mais il lui faudrait un financement gouvernemental accruet nous devons progresser plus rapidement.

ICM : Quel risque courrons-nous si nous n’intensifions pas larecherche en innovation?Jébrak: Le Canada se trouvera à la traîne en matière d’innovation. LaChine est en train de devenir un acteur clé. Il y a encore dix ans, ellen’était pas réputée pour ses innovations minières. Or, les sociétéschinoises jouent désormais un rôle de premier plan. Le nombre depublications soumises par la Chine dans le domaine de l’explorationminière est en pleine expansion. De nouvelles publicationsscientifiques chinoises sur les gisements miniers ont commencé àfaire leur apparition en anglais. L’Université de Beijing recense 25 000étudiants en géosciences, alors qu’ils sont moins d’un millier àétudier cette discipline dans toute la province du Québec.


ICM


http://www.cim.org


http://www.cim.org



More than 700 metal and materials professionals from 35 countries came togetherat the 51st Annual Conference of Metallurgists (COM 2012), held in Niagara Falls,Ontario, September 30 to October 3, to celebrate how efforts to become more sustain-able have positively impacted society and the environment, and to discuss how inno-vation and best practices must evolve to build an even more sustainable future for theindustry.

The conference, themed “Metallurgy and Metals Impact on Society” and organizedby the Metallurgy and Materials Society (MetSoc), featured 177 presentations onburning issues, including obstacles to true innovation and potential improvements tomining technologies and processes.

Chris Twigge-Molecey, plenary speaker and former CIM president, discussed theneed to invest in innovation. While obstacles like short-term corporate thinking, a fearof failure and a lack of financial support can hinder the development and fostering ofnew ideas, benefits from innovative products and processes can be long-lasting.

“We have to come up with ways to make long-term investing for innovation attrac-tive,” Twigge-Molecey said, adding that venture capital investment in Canada has gonedown 70 per cent over the last 10 years. “This is particularly acute as most of the majormining and metallurgical companies are foreign-owned and flowing benefits toCanada is not their priority.”

Other plenary speakers included University of Waterloo professor Thomas Homer-Dixon, who discussed how companies could prosper through, what he termed, the“general purpose technology” transition – a time when the global economy will be dis-rupted by a move towards low-carbon and zero-carbon energy sources. Cameco’sEngin Özberk spoke about the benefits of collaborating to develop new technologies,and Bruce Conard, former vice-president of Inco, spoke about the future of sustainability.

For the first time, the conference also included a Rare Earth symposium. “The rareearth metal recovery rush, along with the need for recruitment, training and sustain-ability dominated the discussion,” says conference chair Vladimiros Papangelakis,adding the series was very well-attended.

The 52 student attendees were made to feel at home with a fun night at the GreatCanadian Midway, and an industry-student mixer allowed the young professionals torub shoulders with key players in the industry.

Next year’s conference, “Shaping the Future with Technological Breakthroughsin Metallurgy and Materials,” will be held in Montreal, Quebec, from October 27to 31. CIM

Innovation occasionCOM 2012 celebrates industry progress

By Herb Mathisen

MetSoc Annual General Meeting andinauguration of new president.

CIM community COM 2012 THANK YOU TO OUR SPONSORS

GOLD SPONSORS

SILVER SPONSORS

BRONZE SPONSORS

FRIENDS & SUPPORTERS

EVENT SUPPORTERS

TO OUR EXHIBITORSActivation Laboratories Ltd.

(Actlabs)

Ashland Inc.

Avalon Rare Metals Inc.

Blasch Precision Ceramics

EKATO Corporation

IC Controls

Lakeside Process Controls

OLI Systems Inc.

Olympus Canada Inc.

OSIsoft Canada ULC

Outotec (Canada) Ltd.

Romquest Technologies

Sherritt International - Technologies Division

Uniti Titanium

Watson Valve Services Inc.

Maney Publishing

E v e n t s


November 2012 | 103

CALENDAR

CIM EVENTS

Precious Metals ‘12Nov. 12 – 13 | Cape Town, South Africawww.min-eng.com/preciousmetals12

CIM/SME Safety and Reliability Conference 2012Nov. 13 – 15 | Minneapolis, Minnesotawww.smenet.org

Saskatoon: 47th Annual CIM BallNov. 16 | Saskatoon, [email protected]

International Mine Management 2012 Nov. 20 – 21 | Melbourne, Australiawww.ausimm.com.au/imm2012

Innovations for the Mining Sector for 2013Nov. 29 – [email protected]

CIM Calgary Branch Technical Luncheon Dec. 12 | Calgary, [email protected]

Saskatoon: Environmental/Safety Night Jan. 17 | Saskatoon, [email protected]

45th Canadian Mineral Processors Conference Jan. 22 – 24 | Ottawa, Ontariowww.cmpsoc.ca/annual-conference.cfm

CIM 2013 Convention May 5 – 8 | Toronto, Ontariowww.cim.org/toronto2013

INTERNATIONAL EVENTS

Processing of Nickel Ores and Concentrates ‘12Nov. 14 – 15 | Cape Town, South Africawww.min-eng.com/nickelprocessing12

Québec Mining Exploration ConventionNov. 19-22 | Québec, Québecwww.congresaemq.ca

Québec Mines Nov. 26 – 29 | Québec, Quebecwww.QuebecMines.mrnf.gouv.qc.ca

6th Annual Investing in African MiningDec. 3 | London, U.K.www.mineafrica.com

Financial Reporting Conference for the Mining IndustryDec. 5 – 6 | Toronto, Ontariowww.cpd.cica.ca/Mining

Mining Morocco International Conference and TradeShow on Mining and QuarryingDec. 5 – 8 | Casablanca, Moroccowww.simc2012.org

ISEE’s 39th Annual Conference on Explosives & AirBlasting TechniqueFeb. 10 – 13 | Fort Worth, Texaswww.isee.org

Introduction to the Physics and Chemistry ofHydrothermal Ore DepositsFeb. 16 – 23 | Ottawa, Ontariowww.earth.uottawa.ca/short-course.html

PDAC 2013 International Convention, Trade Show &Investors Exchange Mar. 3 – 6 | Toronto, Ontariowww.pdac.ca/pdac/conv/index.aspx

TMS 2013 142nd Annual Meeting & ExhibitionMar. 3 – 7 | San Antonio, Texaswww.tms.org/meetings/annual-13/AM13home.aspx

Mine Water Solutions in Extreme EnvironmentApr. 15 – 17 | Lima, Peruwww.minewatersolutions.com

B

Donald Lachlan McCann became amember of CIM in 1937 and a life mem-ber in 1984. He died on June 12, 2012.

Jim Cook (VB) became a member ofCIM in 1962 and a life member in1995. He died on July 5, 2012.

Rowland (Bob) Leigh became a mem-ber of CIM in 1973. He died onAugust 29, 2012.

Obituaries

CIM staff extend our sincere condolences. If you know of any CIM member who has recently passed away, sendinformation to [email protected]. Extended tributes are available in our online version at www.cim.org/magazine.


http://www.min-eng.com/preciousmetals12

http://www.smenet.org


http://www.ausimm.com.au/imm2012




http://www.cmpsoc.ca/annual-conference.cfm

http://www.cim.org/toronto2013

http://www.min-eng.com/nickelprocessing12

http://www.congresaemq.ca

http://www.QuebecMines.mrnf.gouv.qc.ca

http://www.mineafrica.com

http://www.cpd.cica.ca/Mining

http://www.simc2012.org

http://www.isee.org

http://www.earth.uottawa.ca/short-course.html

http://www.pdac.ca/pdac/conv/index.aspx

http://www.tms.org/meetings/annual-13/AM13home.aspx

http://www.minewatersolutions.com


http://www.cim.org/magazine

The Canadian Minerals Processors (CMP) Board of Directors proudly invites you to Ottawafrom January 22 to 24, 2013, for our 45th Annual Meeting. Attendance levels at the world’spremier mineral processing operators’ conference have swelled in recent years, reaching over500 delegates in 2012. I promise the 2013 conference will not disappoint; it will exceedexpectations, providing you with limitless opportunities for networking, technology andknowledge transfer, and personal development.

With 36 outstanding presentations, the technical program is the foundation of theconference. Fellow mill operators and mineral processing professionals will prepare anddeliver technical presentations over the course of the three-day period. Two plenarypresentations will headline the technical program. Canadian and international speakerswill then follow during sessions involving trademark operations-focused topics, includingprocess and design improvements and process start-ups, and, for the first time at the CMPconference, a full session examing geometallurgical practices.

Technical papers will support all presentations and will be assembled in the conferenceproceedings, which will be printed and made available to all delegates before the firstpresentation is even made.

Following last year’s outstanding success of providing a Short Course programfeaturing three courses, this year’s conference will offer a choice of six courses spreadover two days, Sunday and Monday, giving delegates the opportunity to improve theirknowledge of process control, grinding process design and optimization, reagent practices,metallurgical accounting and uranium processing. Attendance for these courses is expectedto be strong, but depending on the selected topic and the preferred training method, it maybe limited. Please check our website (www.cmpsoc.ca) for details. Should you be interestedin attending, we encourage you to book early to avoid disappointment.

Attendance to the CMP Annual Meeting also includes invitations to a number of socialand professional networking events. On Monday evening, the Student Mixer will allowstudents to meet their peers from Canadian colleges and universities, where education inmineral processing is available. On Tuesday evening, delegates can either socialize at thechairman’s reception and/or participate in the friendly annual hockey game betweendelegates from eastern and western Canada. Finally, on Wednesday evening, all delegatesare invited to the CMP Annual Banquet, where we recognize the exceptional contributionsof our peers to the advancement of our Society and of our mineral processor profession.All events, except the hockey game, take place conveniently at the Westin Ottawa.

We look forward to you joining us in Ottawa in January for the 2013 CMP AnnualMeeting.

Erin Legault, chair

45th Annual

Canadian MineralProcessors Operators’

Conference

104-107 CMP 2012 v9_Layout 1 2012-10-30 11:42 AM Page 104

http://www.cmpsoc.ca

Le conseil d’administration du CMP (minéralogistes du Canada) est fier de vousinviter à sa 45e Conférence annuelle Ottawa, du 22 au 24 janvier 2013. Le nombrede participants à la plus importante conférence de minéralogistes au monde n’acessé d’augmenter au cours des dernières années, pour atteindre 500 déléguésen 2012. Je vous promets une édition 2013 passionnante, qui dépassera toutesles attentes grâce à ses innombrables possibilités de réseautage, de transfert destechnologies et des connaissances, et de développement personnel.

Avec 36 présentations exceptionnelles, le programme technique constituela base de la conférence. Pendant trois jours, des opérateurs de broyeur et desprofessionnels de la minéralurgie effectueront des présentations techniques.Deux séances plénières ouvriront le programme technique. Des conférencierscanadiens et internationaux animeront ensuite des séances sur des sujetsclassiques liés à nos activités : améliorations des processus et de la conception,démarrage de processus, et pour la première fois, une séance entière sur lespratiques géométallurgiques.

Des documents techniques viendront étayer les présentations. Ils serontinclus dans le procès-verbal de la conférence, qui sera imprimé et distribué auxdélégués avant même que la première présentation n’ait lieu.

L’année dernière, notre programme des cours de courte durée avait connuun succès retentissant. Cette année, nous passons de trois à six cours, lesquelsse dérouleront le dimanche et le lundi. Les délégués auront ainsi l’occasiond’améliorer leurs connaissances dans les domaines suivants : contrôle deprocessus, conception et amélioration du processus de broyage, pratiques liéesaux réactifs, comptabilité métallurgique et traitement de l’uranium. Ces coursdevraient attirer de nombreux participants, mais le nombre de places pourrait êtrelimité, selon la thématique et la méthode de formation choisies. Veuillez consulternotre site Web (www.cmpsoc.ca) pour en savoir plus. Si vous souhaitez participer,nous vous encourageons à vous inscrire sans tarder afin d’éviter les déceptions.

La Conférence annuelle des minéralogistes du Canada comprendraégalement de nombreux événements sociaux et professionnels de réseautage.Le lundi soir, le « Student Mixer » permettra aux étudiants de rencontrer leurspairs, issus des divers collèges et universités du pays qui offrent une formationen minéralurgie. Le mardi soir, les participants auront l’occasion de fairemeilleure connaissance lors de la réception du président, ou ils pourront choisirde participer au match amical annuel de hockey, opposant les délégués del’Est et de l’Ouest du Canada. Enfin, le mercredi soir, tous les délégués serontinvités au banquet annuel, au cours duquel nous soulignerons les contributionsexceptionnelles de nos collègues aux progrès de la société et de la professionde minéralogiste. Tous les événements, à l’exception du match de hockey,auront lieu à l’hôtel The Westin Ottawa.

Nous sommes impatients de vous retrouver à Ottawa en janvier, pour laConférence annuelle des minéralogistes du Canada 2013.

Erin Legault, Présidente

45e Conférence annuelle

des minéralurgistesdu Canada

www.cmpsoc.ca

General Information | Renseignements générauxThe 45th Annual Canadian Mineral Processors Conference, heldin Ottawa at the Westin Hotel from January 22 to 24, 2013, inthe Confederation Ballrooms (4th Floor), will featurepresentations on various aspects of mineral processing, includingoperations, plant optimization, flotation, advanced technologies,gold processing and comminution.

La 45e Conférence annuelle des minéralogistes du Canada auralieu à Ottawa, à l’hôtel The Westin, du 22 au 24 janvier 2013,dans la Confederation Ballroom (4e étage). La conférencecomprendra des présentations sur divers aspects de laminéralurgie : activités, optimisation d’usine, flottation,technologies de pointe, traitement de l’or et comminution.

Registration | InscriptionThe early registration fee including taxes is $525 forCIM/AIME/TMS members, $720 for non-members (includes aone-year membership in CIM). Registration includes the three-day meeting, coffee breaks, the Tuesday and Wednesdayluncheons and evening social reception, the Wednesdayreception and awards banquet, as well as a copy of theproceedings. Conference registration and attendance at socialevents should be indicated on the registration form or registeronline at www.cmpsoc.ca.

Registration kits for pre-registered delegates can be picked upat the Conference Registration Desk, 4th Floor, Westin Hotel,Monday evening between 19:00 and 22:00 and Tuesday toThursday between 7:00 to 15:00. New registrations will be takenat these times.

Note: Pre-registration forms must be received by December 19,2012, and any requests for refunds must be made in writingprior to this date. An administration fee of $100 will becharged for new and/or cancelled registrations after this date.

L’inscription à tarif préférentiel pour la réunion de cette annéecoûtera 525 $ pour les membres de l’ICM/AIME/TMS, et 720 $pour les non membres (taxes comprises). Le tarif pour les nonmembres comprend une adhésion d’un an à l’ICM. L’inscriptiondonne droit aux avantages suivants : trois jours de réunion,pauses café, dîners du lundi et du mercredi, soirée-réception,réception et banquet de remise de prix le mercredi, copie duprocès-verbal des réunions. L’inscription à la conférence et laparticipation aux événements sociaux doivent être indiquées surle formulaire d’inscription. Vous pouvez également vous inscrireen ligne à www.cmpsoc.ca.

Tous les délégués préenregistrés pourront obtenir leur troussed’inscription au bureau d’inscription de la conférence, au 4e étagede l’hôtel The Westin, le lundi soir de 19 h à 22 h, et pendant lesjournées de conférence, de 7 h à 15 h (du mardi au jeudi). Lesnouvelles inscriptions seront acceptées pendant ces heures.

Remarque : Nous devons recevoir les formulaires depréinscription avant le 19 décembre 2012. Toutedemande de remboursement doit être présentée parécrit avant le 19 décembre 2012. Des fraisadministratifs de 100 $ s’appliqueront pour toutenouvelle réservation ou annulation après cette date.






8:00 Opening remarks ERIN LEGAULT-SEGUIN

Plenary Presentation8:15 Manual Control, Process Automation – or Operational

Performance Excellence? What is the Difference? P. THWAITES

8:50 From Electrons to Dollars K. FORD, C. FLEMING

Geometallurgy9:25 Geometallurgical Characterisation at Xstrata Process Support

J. SLIWINSKI, L. KORMOS, G. HILL

9:50 BREAK | PAUSE

10:20 Flowsheet Development for the Hypogene Geomet Unit inIvanhoe’s Kamoa Copper Project N. OTTER, J. OLIVEIRA, D. BROUGHTON,S. AMOS, A. HANNAFORD

10:45 Flotation Process Optimisation for Variable Ore D. HATTON, D. HATFIELD

11:10 Geometallurgical Modeling of the Dumont Deposit, “Do youKnow Where your Nickel is?” M. SCIORTINO, J. KORCZAK, J. MUINONEN,A. ST.-JEAN

11:35 The Development of a Small-Scale Test for RapidCharacterisation of Flotation Response (JKMSI) DEE BRADSHAW,FRANCOIS VOS

12:00 LUNCH | DÎNER

Comminution13:30 Operational Improvements in Six Mineral Processing Plants by

Manipulation of Grinding Circuit “Classification SystemEfficiency” R. MCIVOR

13:55 Achievement of High Energy Efficiency in Grinding Mills at SantaRita S. LATCHIREDDI, E. FARIA

14:20 Optimization of Milling Capacity in Antamina ThroughImprovements Implemented in the Primary Crushing J. GARCÍALINARES, C. AGUILAR LEON, D. ESTRELLA CALERO

14:45 BREAK | PAUSE

15:15 Comparison of an HPGR / Stirred Mill Circuit and an ExistingSABC Circuit for the Huckleberry Mill C. WANG, S. NADOLSKI, O. MEJIA,B. KLEIN, J. DROZDIAK

15:40 Hybrid CAVEX 800 Cyclone Testing and Installation at HVC S. YU

16:05 Study the Effect of Crystal Structure on Milling and LiberationPerformance of Minerals V. SINGH A., U. SANKRITYAYANB, V. TATHAVADKAR, R. VENUGOPALB, V. K. SAXENAB

Testwork & Operations Applied Research8:35 A Laboratory Protocol to Evaluate Potential Chemical

Interferences in Flotation Circuit Applications C. SPENCE, B. COUSINS,B. O’ROURKE

9:00 VERTIMILL® Grinding Mill Technology: Collaborative Researchand Performance Review of the Machines at Newcrest Cadia J. ALLEN, S. PALANIANDY, M. POWELL, M. HILDEN

9:25 Use of Biopolymers to Increase the Gold Production in Leachingand Other Gold Recovery Processes R. A. LAUTEN

9:50 BREAK | PAUSE

TUESDAY, JANUARY 22 | MARDI 22 JANVIER

WEDNESDAY, JANUARY 23 | MERCREDI 23 JANVIER

Provisional Technical Program | Programme technique provisoire10:20 New Technology and Approaches in Reagent Development and

Applications in the Processing of Precious Metals Ores T. BHAMBHANI

10:45 The “Next Generation” Large Diameter Slurry Pumps for AuroraNorth R. CLEMINSON, D. WOLFE

11:10 Recovery of Chromite Fines S. CHANG, S. YALCIN, M.OLIAZADEH

11:35 Comparison of Uranium Solvent Extraction Strip OptionsD. VAN TONDER, C. EDWARDS

12:00 LUNCH | DÎNER

Design & Development1:30 Haile Gold Mine Metallurgy and Flowsheet Review DEAL, SPICHER,

TITTES, WICKENS

1:55 Noront Underground Mill Development P. SEMPLE

2:20 AuRico Young Davidson Mine - From Design to Start-UpA. CORMIER

14:45 BREAK | PAUSE

3:15 Meadowbank Mill Throughput Ramp-up P. NAWEJ MUTEB, J. ALLAIRE

3:40 Design and Implementation of a Brownfield SAG Pre-CrushCircuit K. LEE, G.M. CASTILLO, C. BISSUE, G. THIES

4:05 Design of a Leaching Strategy to Extract Gold from EleonoreMine Ultrafine Sulphide Concentrate G. DESCHÊNES, M. FULTON

Process Control9:00 Xstrata Nickel SAG Mill Performance Improvements

F. LETARTE-LAVOIE, M. RUEL

9:25 A Non-Nuclear Density Meter and Mass Flow System MeasuringMining Slurries with Entrained Gas R. BATEY

9:50 BREAK | PAUSE

10:20 From Stabilization to Optimization; Process Control in theFlotation Process X. JIN

10:45 Flotation Process Optimization Using Outotec FrothControlSolution M. VAUHKONEN, A. LEHIKOINEN, J. KOURUNEN, M. MONONEN

11:10 Control of Size Distribution of the Ore Feeding a Semi-Autogenous Grinding Mill C. BAZIN, F. ROBICHAUD

11:35 IMPC 201412:00 LUNCH | DÎNER

Flotation1:30 The Application of the StackCell Technology for Fine Coal

Recovery R. GRALEY, J. KOHMUENCH, E. YAN, L. CHRISTODOULOU

1:55 Study of Relationship Between Pyrochlore Matrix Compositionand Surface Chemistry Effects on Collector Adsorption C. CHELGANI, B. HART, J. MAROIS, M. OURRIBAN

2:20 The Impact of Grinding Chemistry on Galena Flotation atExxaro's Rosh Pinah Mine C. GREET, M. LOMBARD, P. KAPOLO

14:45 BREAK | PAUSE

3:15 Maximizing Concentrate Revenues at the Xstrata Copper KiddConcentrator A. LEGGETT, G.R. MORIN

3:40 Market Driven Performance Improvements at Brunswick C. DEREDIN

4:05 Conference adjourns

THURSDAY, JANUARY 24 | JEUDI 24 JANVIER


Social Program | Programme socialeAll activities take place at the Westin Hotel, unlessotherwise indicated.

Tous les activités se déroulent à l’Hôtel Westin, sauf siindiqué autrement.

MONDAY | LUNDI20h–23h STUDENT MIXER

4th Floor Westin Hotel Soirée « Student Mixer »4e étage, hôtel The Westin

16h30–24h CMP LANDMARKS LOUNGE3rd Floor, Daly’s, Westin Hotel3e étage, Daly’s, hôtel The Westin

TUESDAY | MARDI12h Beer and Sandwich Social

4th Floor Westin HotelRencontre bières et sandwichs4e étage, hôtel The Westin

16h30–21h CMP Landmarks Lounge3rd Floor, Daly’s, Westin Hotel3e étage, Daly’s, hôtel The Westin

19h Hockey Cup ChallengeDéfi de hockeyCarleton University

21h Chairman’s ReceptionRéception du présidentGovernor General’s Ballroom

WEDNESDAY | MERCREDI12h Celebratory Luncheon

4th Floor Westin Hotel Dîner de célébration4e étage, hôtel The Westin

16h30–18h30 CMP Landmarks Lounge3rd Floor, Daly’s, Westin HotelCMP Landmarks Lounge3e étage, Daly’s, hôtel The Westin

18h Executive ReceptionColonel By SuiteRéception des dirigeantsColonel By Suite

18h30 Reception4th Floor, Westin HotelRéception4e étage, hôtel The Westin

19h30 Annual BanquetConfederation BallroomBanquet annuelConfederation Ballroom

Accommodations | HébergementA special room rate of $193 (single/double) and $243 (deluxe), which includescomplementary internet, has been negotiated for attendees at the Westin Hotel(reference the Canadian Mineral Processors Conference). The Westin Hotel will onlyguarantee these rooms until January 7, 2013. Last year, our block of rooms sold out inDecember so please book early to avoid disappointment. Phone (613) 560-7000 (Fax(613) 560-2707) for room reservations. You can also go online, through the conferencehotel link on our website www.cmpsoc.ca.

Les participants ont droit à un taux spécial de 193 $ (chambre simple/double) ou 243$ (chambre de luxe), avec Internet gratuit, à l’hôtel The Westin (mentionner laConférence annuelle des minéralogistes du Canada). L’hôtel The Westin ne garantiraplus ces réservations après le 7 janvier 2013. L’année dernière, toutes nos chambresavaient déjà été réservées en décembre. Nous vous demandons donc d’agir au plusvite pour éviter les déceptions. Vous pouvez effectuer vos réservations par téléphone,au (613) 560-7000 ou par télécopieur, au (613) 560-2707. Vous avez également lapossibilité de réserver une chambre en ligne, en cliquant sur le lien de l’hôtel qui setrouve sur notre site Web www.cmpsoc.ca.

Short Courses | Cours de courte duréeSix short courses will be at CMP 2013. L’édition 2013 comprend six cours de courte durée.

SUNDAY, JANUARY 20 – FULL DAY | DIMANCHE 20 JANVIER – TOUTE LA JOURNÉE

The Winning of Uranium (Chuck Edwards)

H. Process Control in the Minerals Industry (Michel Ruel)

SUNDAY, JANUARY 20 – HALF DAY (PM) | DIMANCHE 20 JANVIER – DEMI-JOURNÉE (APRÈS-MIDI)

SAGDesign™: comminution circuits (John Starkey)

MONDAY, JANUARY 21 – FULL DAY | LUNDI 21 JANVIER – TOUTE LA JOURNÉE

Chemical Fundamentals in Mineral Processing (Brett Cousins)

Practical Tools for Maximizing Grinding Efficiency (Rob McIvor)

State of the Art Metallurgical Accounting (Frédéric Flament)

All costs include lunch, coffee breaks and course materials. Attendance is limited,please register early. Les dîners, pauses café et matériels de cours sont inclus dans les frais d’inscription.Comme le nombre de places est limité, nous vous demandons de vous inscrire sanstarder.

Companion’s Program | Programme complémentaireThe companion’s program this year will offer a daily Coffee and Tea Social, socompanions can arrange their activities for the day. The cost of this program is $25.

Le programme complémentaire de cette année comprendra un événement café et thé,au cours duquel les participants pourront prévoir leurs activités de la journée. Le coûtde ce programme est de 25 $.

Authors | AuteursAuthors, session chairs and regional representatives must register as conferencedelegates. A speaker’s breakfast will be provided the day of their presentation at 7:00a.m., tentatively held in the Quebec Room. Please contact John Chaulk, (613) 947-0394, [email protected], for presentation information.

Les auteurs, les responsables de séances et les représentants régionaux doivents’inscrire comme délégués de la conférence. Un déjeuner sera offert aux conférenciersle jour de leur présentation, à 7 h, sans doute dans la Quebec Room. Les auteurs sontpriés de communiquer avec John Chaulk au (613) 947-0394, ou à[email protected] pour obtenir des renseignements sur la présentation.

www.cmpsoc.ca

104-107 CMP 2012 v9_Layout 1 2012-10-30 1:12 PM Page 107






Galvanic interaction in self-heating of sulphide mixturesR. Payant, F. Rosenblum, J. E. Nesset,and J. A. Finch, Department of Miningand Materials Engineering, McGillUniversity, Montréal, QC

Enabling progressive energymanagement practice inminerals operationsD. L. Millar and M. Levesque, BhartiSchool of Engineering, LaurentianUniversity, Sudbury, ON; G. Lyle and K.Bullock, Centre for Excellence in MiningInnovation, Sudbury, ON

ABSTRACT Under certain conditions of moisture and oxygen, sulphides can spontaneously self-heat.We tested a hypothesis that galvanic interaction between some sulphides can promote self-heating.Galvanic interaction is controlled by the rest potential difference between sulphides and particle size.A series of binary sulphide mixtures was tested. Individual sulphides and mixtures with low rest poten-tial difference did not self-heat, but mixtures of high rest potential difference did. When testingpyrite-sphalerite mixtures, self-heating increased inversely with particle size, with the fineness of thepyrite governing self-heating, indicating the rate-limiting step is the reduction reaction. The resultssupport the hypothesis that galvanic interaction contributes to sulphide self-heating. A possible mech-anism based on hydrogen sulphide as an intermediate product is proposed. The understanding gainedwill be of interest to those involved in storage, shipping, and disposal of sulphides.

RÉSUMÉ Sous certaines conditions d’humidité et d’oxygène, les sulfures peuvent se mettre à chauf-fer spontanément. Nous avons vérifié une hypothèse selon laquelle l’interaction galvanique entrecertains sulfures peut promouvoir l’auto-échauffement. L’interaction galvanique est contrôlée par ladifférence de potentiel de corrosion entre les sulfures et la granulométrie. Une série de mélanges dedeux sulfures a été mise à l’épreuve. Les sulfures individuels et les mélanges ayant une différence depotentiel de corrosion peu élevée ne se sont pas auto-échauffés; cependant les mélanges à différencede potentiel de corrosion élevée se sont auto-échauffés. Dans les mélanges pyrite-sphalérite, l’auto-échauffement augmentait de manière inversement proportionnelle à la granulométrie, où la finesse dela pyrite déterminait l’auto-échauffement, indiquant que l’étape cinétiquement limitante est la réac-tion de réduction. Les résultats soutiennent l’hypothèse qu’une interaction galvanique contribue àl’auto-échauffement des sulfures. Un mécanisme possible basé sur le sulfure d’hydrogène commeproduit intermédiaire est proposé. La compréhension acquise sera d’intérêt pour les personnesresponsables de l’entreposage, du transport et de l’élimination des sulfures.

ABSTRACT The options for reducing the carbon footprint of energy use in mining fall into three cat-egories of activity: i) reducing demand, ii) improving energy utilization, and iii) adopting low carbonenergy technologies. In addition to the environmental imperative, the economic case for these activ-ities gains higher priority as the prices of electricity, gas, and liquid fuels increase. Low-carbon,energy-saving technology options that are available to mining industry companies lead to projectswith return rates that must compete alongside other capital-intensive projects considered by miningcompany boards. Energy projects frequently involve longer payback periods and lower rates of returnthan those of competing bids for capital, such as new mineral property developments. For energyservices companies that specialize in the financing, construction, efficient operation, and mainte-nance of energy projects, the same returns and payback periods can be considered acceptable oreven attractive.

RÉSUMÉ Les options pour réduire le bilan carbone de l’utilisation de l’énergie dans les mines se sub-divisent en trois catégories d’activités : i) réduction de la demande, ii) amélioration de l’utilisation del’énergie et iii) adoption de technologies énergétiques utilisant peu de carbone. En plus de l’obligationenvironnementale, l’argument économique pour ces activités monte en priorité alors qu’augmententles prix de l’électricité, du gaz et des carburants liquides. Des options de technologies disponible util-isant peu de carbone et qui économisent l’énergie pour les mines mènent à des projets avec des tauxde rendement qui doivent compétitionner avec les autres projets à forte demande de capitaux qu’é-tudient les conseils d’administration des compagnies minières. Les projets énergétiques comportentsouvent de longues périodes de recouvrement et des taux de rendement inférieurs à d’autres en com-pétition pour les capitaux, par exemple, le développement de nouvelles propriétés minérales. Pour lesentreprises de services énergétiques qui se spécialisent dans le financement, la construction, l’ex-ploitation efficace et l’entretien des projets énergétiques, les mêmes rendements et périodes derecouvrement peuvent être considérées acceptables, voire attrayantes.

Excerpts taken from abstracts in CIM Journal, Vol. 3, No. 3.To subscribe, to submit a paper or to be a peer reviewer—www.cim.org

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

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108-114 Technical Abstracts v3_Abstracts 2012-10-30 11:42 AM Page 108

http://www.cim.org

The CIM Journal is a leading multidisciplinary publication of theCanadian Institute of Mining, Metallurgy and Petroleum (CIM). Le CIM Journal est la publicationmultidisciplinaire par excellence produite par l’Institut canadien des mines, de la métallurgie et du pétrole (ICM).

Now in its third year and published quarterly in full colour,the CIM Journal has become a recognized internationalresource for high-quality scientific and engineering papers,covering all facets of the mining and minerals industry, suchas geology, mining, processing, maintenance, environmentalprotection, reclamation, mineral economics, corporateresponsibility and project management.

Entamant sa troisième année d’existence, la publicationtrimestrielle publiée en couleurs est reconnue comme étantune ressource internationale d’articles de haute qualitédans les domaines de la science et du génie. Toutes lesfacettes de l’industrie des mines y sont couvertes : la géologie, l’extraction, les procédures, la maintenance, la protection de l'environnement, la réclamation, l’économie minière, la responsabilité sociale des entreprises et la gestion de projet.

Submit your technical paper for peer review in the CIM Journal Soumettez un document technique pour un examen par les pairs dans le CIM Journal

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Processing history at Vale Canada’s(Inco’s) Ontario nickel-copper smelterspre-1950B. R. Conard, BRConard Consulting Inc., Oakville, Ontario,Canada

Risk-weighted cash flow: acommunication tool for engineers and financial professionals on newtechnology projectsM. Kennedy, Norwegian University of Science andTechnology, Trondheim, Norway; C. Harris, Accenture,Toronto, Ontario, Canada; A. MacRae, MacRaeTechnologies, Inc., Hayward, California, U.S.A.

ABSTRACT Occupational epidemiology of the nickel-producing industry has found thatinhalation exposures to certain nickel-containing substances are linked to respiratorycancers and to nonmalignant respiratory endpoints. Establishing such a linkage, however,is complicated by the fact that some diseases occur long after exposure to a causal agent(i.e., some diseases have long latencies). Furthermore, most chemical agents (especiallynickel substances) vary significantly in their toxicological properties and theirconcentrations in workplace air have varied over processing history. Because of thesecomplications, it is critical to understand historical exposures to specific nickel substances.To assist in this effort, the author focuses on the history of smelting and its relatedprocesses at Vale Canada’s (Inco’s) Ontario operations in the first half of the 20th century.

RÉSUMÉ Selon l’épidémiologie du travail de l’industrie productrice de nickel, l’expositionà l’inhalation de certaines substances contenant du nickel est reliée à des cancersrespiratoires et à des effets respiratoires bénins. L’établissement d’un tel lien est toutefoiscompliqué par le fait que certaines maladies se développent longtemps après uneexposition à l’agent responsable (c.-à-d. que certaines maladies ont de longues latences).De plus, la plupart des agents chimiques (surtout les substances contenant du nickel) ontdes propriétés toxicologiques qui varient beaucoup et leurs concentrations dans l’air deslieux de travail ont varié dans l’histoire des procédés de traitement du minerai. En raisonde ces complications, il est absolument nécessaire de comprendre l’histoire de l’expositionà des substances nickélifères spécifiques. Pour ce faire, l’auteur cible l’histoire de la fusionet de ses divers procédés aux installations de Vale Canada (Inco) dans la première moitiédu 20e siècle.

ABSTRACT New technology projects, particularly those involving first-of-a-kindmetallurgical facilities, have poor track records achieving overall financial targets.Associated risks include slow start-up, slow ramp-up, and failure to achieve designperformance (quality or throughput), which affect cash flow and net present value (NPV)or internal rate of return (IRR). Applied discount rates often lack adequate provision fortechnological risk. In this paper, the authors will examine project risk and new technologyand their role in achieving predicted cash flows. Addressing technological risk using risk-weighted returns can prevent marginal projects and give sound projects additional time andresources for optimal front-end loading (FEL)—the level for maximum risk-weighted NPV(rNPV).

RÉSUMÉ Les nouveaux projets technologiques, surtout ceux qui impliquent desinstallations métallurgiques les premières d’un genre, ont de mauvais rendements en cequi concerne l’atteinte des objectifs financiers généraux. Les risques associéscomprennent un démarrage lent, une lente mise en production et l’incapacité d’atteindrele rendement nominal (en qualité ou en quantité); ils touchent les flux de trésorerie et lavaleur actualisée nette (VAN) ou le taux de rentabilité interne (TRI). Les taux d’escompteappliqués manquent souvent de provisions pour le risque technologique. Dans cet article,les auteurs examinent le risque associé à un projet et aux nouvelles technologies ainsi queleur rôle dans l’atteinte des flux de trésorerie prévus. Traiter des risques technologiquesen utilisant les revenus pondérés selon le risque peut prévenir les projets marginaux etdonner aux bons projets plus de temps et de ressources pour un début d’exercice optimal– le niveau pour une valeur actuelle nette (VAN) maximale pondérée selon le risque (rNPV).

Excerpts taken from abstracts in CIM Journal, Vol. 3, No. 4.To subscribe, to submit a paper or to be a peer reviewer—www.cim.org


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ISSUE FEATURE UPFRONT TECHNOLOGY FOCUS

FEBRUARYExploration and project

development

*PDAC issue

Tailings andreclamation Geoscience

Bonus distribution: SME, PDAC, TMS

MARCH/APRILEnergy ‐ Coal, uranium

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*Special Report – BrazilMaintenance Ventilation

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*Special Report – West AfricaGold Materials handling

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9 issues + Directory

108-114 Technical Abstracts v3_Abstracts 2012-10-30 2:08 PM Page 111


Structure, Stratigraphy, U-PbGeochronology and AlterationCharacteristics of Gold Mineralizationat the Detour Lake Gold Deposit,Ontario, CanadaJ. Oliver, J. Ayer, B. Dubé, R. Aubertin, M. Burson, G. Panneton, R. Friedman,and M. Hamilton

ABSTRACT — The Detour Lake gold deposit is located within the northwestern limit ofthe Archean Abitibi subprovince of the superior province. Mineralized zones are hostedby a sequence of pillowed and massive flows, hyaloclastite units, and altered ultramaficrocks, and are commonly oriented parallel to a series of high-strain zones that are co-planar to the regional-scale Sunday Lake Deformation Zone. Early in its kinematichistory, the Sunday Lake Deformation Zone placed older (2.72 Ga) volcanic rocks of theDetour Lake Formation over younger (2.70 Ga) sedimentary rocks of the Caopatinaassemblage. Gold mineralization is also parallel to the position of a laterally persistentsiliceous rock unit, the 2.725 Ga ‘Chert Marker Horizon.’ The Chert Marker Horizoncoincides with the boundary between the mafic-dominated upper Detour Lake Forma-tion and the ultramafic-dominated lower Detour Lake Formation. Stratigraphic andgeochronological data suggest that the Chert Marker Horizon is a deformed felsic vol-caniclastic unit.

At a cut-off of 0.6 g/t Au, the Detour Lake deposit contains 17.26 million ounces of Auwithin 445.9 million tonnes of rock grading 1.20 g/t Au. Gold occurs in shear-hostedand extensional vein arrays within rocks of the upper and lower Detour Lake Formationand within the Chert Marker Horizon. The Detour Lake deposit has many of the charac-teristics of a greenstone-hosted, quartz-carbonate vein deposit; its very large size maybe attributed to large-scale rheological controls, resulting in the formation of dilatantsites in permissive rock units.

SOMMAIRE — Le gîte d’or de Detour Lake est situé à la limite nord-ouest de la sous-province archéenne de l’Abitibi dans la province du supérieur. Les zones minéraliséessont contenues dans une séquence de laves massives et coussinées, des unitésd’hyaloclastites ainsi que des roches ultramafiques altérées et sont le plus souvent ori-entées parallèlement à une série de zones fortement déformées coplanaires avec lazone de déformation régionale de Sunday Lake. Tôt dans son évolution cinématique, lazone de déformation de Sunday Lake a placé les roches volcaniques plus anciennes(2.70 Ga) de la Formation de Detour Lake par-dessus les roches sédimentaires plusjeunes (2,70 Ga) de l’assemblage de Caopatina. La minéralisation aurifère est égale-ment parallèle à une unité de roche siliceuse montrant une bonne continuité latérale,«l’Horizon repère de chert » âgé de 2,725 Ga. L’Horizon repère de chert est situé à lalimite entre la partie supérieure de la Formation de Detour Lake, laquelle consiste prin-cipalement en roches mafiques, et la partie inférieure de la Formation de Detour Lakeprincipalement constituée de roches ultramafiques. Les données stratigraphiques etgéochronologiques suggèrent que l’Horizon repère de chert est en fait une unité deroches volcaniclastiques felsiques déformées

À une teneur de coupure de 0,6 g / t Au, le gîte de Detour Lake contient une ressourcede 17,26 millions d’onces d’Au distribuée dans 445,9 millions de tonnes de roche àune teneur moyenne de 1,20 g / t Au. L’or se trouve dans des réseaux de veines d’ex-tension et de cisaillement mises en place dans les roches des unités supérieure etinférieure de la Formation de Detour Lake ainsi que dans l’Horizon repère de chert. Ledépôt de Detour Lake présente beaucoup des caractéristiques des gîtes d’or filoniensà veines de quartz-carbonate développés dans les ceintures de roches vertes; sa trèsgrande taille peut être attribuée à des contraintes rhéologiques à grande échellemenant à la formation de zones dilatantes dans des unités rocheuses propices.

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

exploration and mining geology


ErrataThe correct period for Volume 20 of Explorationand Mining Geology is January-December 2011,not 2012 as is mistakenly printed.


Importance of Government-Sponsored High-ResolutionGravimetric, Magnetic andElectromagnetic Surveys forExploration and GeologicalInvestigations, Abitibisubprovince, CanadaP. Keating, J. Goutier, and J. Ayer

ABSTRACT — New, high-resolution geophysical surveys were undertaken over parts of theAbitibi subprovince, Canada to help with geological mapping and to promote mineral explo-ration. Gravity surveys in the Rouyn-Noranda and Matagami areas (Quebec) allowed better 3-Dmapping of important geological structures, and a multiscale edge analysis of ground gravitydata over the Blake River Group confirms that major faults behave at depth as predicted bysurface geology. Airborne gravimetry west of Matagami (Quebec) helped to identify a new trendsouth of Lake Grasset that is almost perpendicular to the assumed geological trend of the area.Electromagnetic (EM) surveys, flown in the Chibougamau (Quebec) and Bartlett Dome (Ontario)areas, allowed new conductors to be identified at greater depths than were achievable withpreviously used EM systems. Airborne magnetic surveys were flown in the Burntbush area(Ontario), and other available high-resolution magnetic data were compiled to produce a con-tinuous and homogenous magnetic grid of the Abitibi region.

The resulting compilation map clearly shows the locations of dikes, faults and shears zones,and reveals some fault extensions in areas of extensive overburden. This grid also allows thecomputation of enhanced maps, such as vertical derivative and tilt maps (e.g., a tilt map showssubtle magnetic features in the Blake River Group that are difficult to see in the total magneticfield or its first derivative). Results from these new surveys show there is considerable valuein (1) resurveying areas covered by older surveys, and (2) recompiling data sets from theseolder surveys.

SOMMAIRE — De nouveaux levés géophysiques à haute résolution ont été faits sur certainssecteurs de la sous-province d’Abitibi, au Canada, afin d’aider la cartographie géologique etde promouvoir l’exploration minérale. Les levés gravimétriques dans les régions de Rouyn-Noranda et de Matagami (Québec) ont permis une meilleure compréhension cartographique en3-D de structures géologiques importantes, et une analyse multi-échelle de l’effet de borduredes données gravimétriques au sol dans le Groupe de Blake River confirme que les faillesmajeures se comportent en profondeur tel que prédit par la géologie de surface. Le levé grav-imétrique aéroporté à l’ouest de Matagami (Québec) a permis d’identifier au sud du lac Grassetune nouvelle orientation du grain structural, lequel est presque perpendiculaire à l’orientationdes structures géologique initialement postulée dans ce secteur. Les levés électromagnétiquesaéroportés (EM) effectués à Chibougamau (Québec) et au Dôme de Bartlett (Ontario) ont per-mis d’identifier de nouveaux conducteurs à des profondeurs plus grandes que ce qui étaitpossible avec les systèmes EM utilisés auparavant. Un levé magnétique aéroporté a égalementété effectué dans le secteur de Burntbush (Ontario); ces nouvelles données ont été compiléesavec celles d’autres levés aéro magnétiques à haute résolution préexistants afin de produireune grille magnétique continue et homogène dans la région de l’Abitibi.

La carte de compilation résultante montre clairement l’emplacement des dykes, des failles etdes zones de cisaillement; elle révèle également le tracé de certaines failles dans des secteursmarqués par une couverture importante de mort-terrain. Cette grille permet également le cal-cul de cartes à valeur ajoutée, telles que les cartes de la dérivée verticale et les cartesd’inclinaison (par exemple, la carte d’inclinaison met en évidence de subtiles variations mag-nétiques au sein du Groupe de Blake River qui sont difficiles à voir sur les cartes du champmagnétique total ou de sa dérivée première). Les résultats de ces nouveaux levés montrentqu’il est très avantageux (1) de faire de nouveaux levés dans des secteurs qui ont été couvertspar des levés plus anciens et (2) de recompiler les données de ces levés plus anciens.

Excerpts taken from abstracts in EMG, Vol. 20.Subscribe—www.cim.org

November 2012 | 113

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

exploration and mining geology


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canadian metallurgical quarterly

Effect of Different Cooling Rates on theMicrostructure of Cu-Al-Fe alloyI. Cenoz, Department of Mech. Eng., Energy and Materials,Public University of Navarre, Spain

ABSTRACT The phases obtained in copper aluminium bronze alloy (Cu-Al10-Fe2) castinto a permanent die were investigated. The parameters examined were the pre-heat-ing temperatures of the die and the graphite coating thickness. The phases a and g2were detected as well as the metastable phases b and g. The intermetallics of the sys-tem Fe-Al were obtained in various stoichiometric compositions. The different coolingrates of the casting resulted in two mechanisms of transformation to a grains out of theunstable b phase, one being nucleation and growth producing needle shaped a grains,the other exhibiting a massive transformation to spherical a grains.

RÉSUMÉ On a étudié les phases obtenues dans l’alliage de cuivre aluminium bronze(Cu-Al10-Fe2) coulé dans un moule permanent. Les paramètres examinés incluaientles températures de préchauffage du moule et l’épaisseur du revêtement de graphite.On a détecté les phases a et g2 ainsi que les phases métastables b’ et g’. On a obtenules composés intermétalliques du système Fe-Al sous des compositions stoe-chiométriques variées. Les différentes vitesses de refroidissement du moulage ontrésulté en deux mécanismes de transformation en grains a à partir de la phase b insta-ble, l’un étant la nucléation et la croissance produisant des grains a en forme d’aiguille,l’autre exhibant une transformation massive en grains a sphériques.

ABSTRACT Formation mechanism of interdiffusion zone (IDZ) during gas phase alu-minizing of nickel base superalloy IN738LC and also the effects of temperature andAl-activity on microstructure of IDZ were investigated in this research. For this purposea single step gas phase aluminizing technique was applied for coating the surfaces ofIN738LC specimens at two different processing temperatures (i.e. 850 ºC and 1050 ºC)and various pack compositions. Then the coating microstructures were evaluated usingscanning electron microscope (SEM), EDS and XRD techniques. The results showedthat at low temperature, coating were formed by inward diffusion of Al; whereas at hightemperature both outward diffusion of Ni and inward diffusion of Al occurred, resultedin the formation of a columnar structure or interdiffusion zone (IDZ). By increasing Al-activity in the powder mixture, it is shown that the amount of Al within the inner layerof the coating increased.

RÉSUMÉ Au cours de cette recherche, on a étudié le mécanisme de formation de lazone d’interdiffusion (IDZ) lors de la calorisation en phase gazeuse du superalliage àbase de nickel, IN738LC ainsi que les effets de la température et de l’activité de l’Alsur la microstructure de l’IDZ. Dans ce dessein, on a appliqué une technique de calori-sation en phase gazeuse à étape unique pour revêtir les surfaces des échantillonsd’IN738LC à deux températures différentes de traitement (i.e. 850°C et 1050°C) etavec diverses compositions de poudre. Ensuite, on a évalué les microstructures durevêtement en utilisant les techniques du microscope électronique à balayage (SEM),de l’EDS et de l’XRD. Les résultats ont montré qu’à basse température, le revêtementétait formé par diffusion de l’Al vers l’intérieur alors qu’à haute température, tant la dif-fusion du Ni vers l’extérieur que la diffusion de l’Al vers l’intérieur se produisaient,résultant en la formation d’une structure en colonnes ou zone d’interdiffusion (IDZ). Enaugmentant l’activité de l’Al dans le mélange en poudre, on montre que la quantité d’Alà l’intérieur de la couche interne du revêtement augmentait.

Formation Mechanism of IDZ DuringCoating of IN738 by Single Step GasPhase AluminizingH. Rafieea*, S. Rastegaria, H. Arabiba School of Metallurgy and Materials Engineering, IranUniversity of Science and Technology (IUST), Narmak, Tehran,Iranb Center of Excellence for Advanced Materials Processing(CEAMP), School of Metallurgy and Materials Engineering,IUST, Tehran, Iran

Excerpts taken from abstracts in CMQ, Vol. 50, No. 1.Subscribe—www.cmq-online.ca


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INNOVATION SHOWCASE »

November 2012 | 115

LAYFIELDHow to bring your costs down from $1M to $250K in one week

Building Haul roads to remote destinations can often be a expensive endeavour costing amillion dollars per km. Layfield has been selling an engineered alternative to regular haulroad construction utilizing world leading geosynthetics such as Geoweb® to greatly reducecosts. Clients that have discovered the secret save an average of 66 per cent effectivelyturning a $1M/km haul road into a $750K/km project before including maintenance,often saving millions. One of these clients Ron Thompson, a Construction Procurement Man-ager explained, “We did not like the material, we loved it. The roads have been performingway above our highest expectations” when asked about his purchase.

Layfield’s core expertise is geomembranes. By engineering some of the mostadvanced geomembranes many industry problems have been overcome. Enviro Liner® (EL) geomembranes have flexible properties that prevent damage whichoccur with stiffer materials. EL also sets the highest industry benchmark for stability against degradation.

To learn more about these products you can contact a Layfield Rep at 1-866-567-7113or visit the website: www.LayfieldGeo.com

KLOHN CRIPPEN BERGER Klohn Crippen Berger (KCB) provides engineering, geosciences andenvironmental solutions for mining projects globally from strategic locationsin Canada, Australia, Peru and England.

Innovative solutions are realized through integrated professional teamspragmatically tackling challenges faced by mining companies. Thinkingoutside the box while being aware of the obvious leads to solutions, suchas the STP Wetlands, an award-winning wetland solution in Alberta’s oilsands. By mimicking nature, utilising natural landscapes, and applyingsound engineering and environmental design to a river diversion and envi-ronmental compensation challenge, KCB developed a sustainable wetlandsystem providing operational water diversion, environmental compensa-tion, and a landscape for closure at half the construction cost of previousproject concepts.

Whether its tailings or mine waste, pit dewatering or water supply, envi-ronmental assessment or mine closure, our experienced teams bring afresh approach to your old and new challenges, optimising resources and

reducing costs, henceincreasing success.

GIW INDUSTRIES, INC.Slurry products for mining and minerals processing

GIW is well-known for producing reliable and long-lasting slurry pumps.By listening to its customers, GIW continually strives to create new prod-ucts that provide just what its customers need: rugged cost-effective solu-tions and services that extend wear life.

One of GIW’s newest products is its patented hydrocyclone. The GIW hydro-cyclone uses a straightforward design that is easy to install and maintain.Only seven fasteners are needed for complete rebuild. The “twist-lock”option makes apex removal and service a breeze. Drop-in, glue free linersreduce build time by 75 per cent. Weep holes for early wear detection canvirtually eliminate unplanned outages.

For your slurry pumping challenges, the Mill Duty Xtra Heavy (MDX) slurrypump can reduce operating costs by matching pump operating cycle timeswith scheduled mill out-ages. The MDX seriespumps are specificallydesigned for the hard rockmining industry – thismeans fewer productiondisruptions and increasedoperational efficiency.

Contact GIW today to sim-plify your slurry processes.www.giwindustries.com -+1-706-863-1011

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37 AEMQ 53 AMC Consultants 45 Atlantic Industries Limited 9 Ausenco Engineering Canada Inc. 33 BBA 32 Bedford Consulting Group 11 Breaker Technology Ltd. 3 Cementation IBC Chevron Lubricants 15 Cliffs Natural Resources OBC Columbia Steel Casting Co., Inc. 20 DMC Mining Services 23 Dux Machinery 24 Effigis 27 Eriez Manufacturing Co. 14 Garda 55 Glenridge Equipment Corp. 43 Insight Information 29 Les Industries Fournier Inc. 17 McLanahan Corporation IFC Minova 7 Petro-Canada 39 Redpath Group 13 Schneider-Electric Canada 16 Stantec 46 Venture Kamloops 19 Western Environmental 115 Innovation Showcases GIW Klohn Crippen Berger Layfield Group

116 Professional Directory BBA Bioteq Independent Mining Consultants Indotech KN Equipment Inc Kubota Praetorian Construction Management V. Kelner Helicopters

117 Product Files B.I.D. Canada Ltd Fluke Corporation Fluke Corporation

product files | ad index

November 2012 | 117

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Hammell knew he was onto something. Aircraft couldallow prospectors and miners to access remote locationsquickly and easily, and in all seasons. By 1928, he had teamedup with mining engineer and WWI pilot Harold “Doc” Oakes,

and together they startedNorthern Aerial MineralsExploration, or NAME –the world’s first aerialprospecting company.

Hammell’s vision wastimely. Winter flying hadonly begun around 1917,but advances in aviationand aircraft design wereproducing aircraft thatwere better adapted to thenorthern climate. NAMEtook advantage of new air-craft that could be equip -ped with either floats forwater landing in summer,or skis for landing onsnow or ice in winter. TheFokker and the Fairchildmodels, both used byNAME, were the mostpopular. Although Ameri-can-designed, both were

built in the Montreal area and their popularity gave a boost tothe Canadian aviation industry.

Oakes had his hand in aircraft innovation as well: heimproved engine heating for winter flight while working for anairline supply company in 1926.

NAME prospected throughout the North with a fleet of 10aircraft and a crew that grew to 100 and then to 200 prospec-tors. The company established 34 bases, from northernOntario to the Yukon, to the Ungava region of northern Que-bec. Success came quickly. In their first year, two NAMEprospectors found gold at Pickle Lake, north of Thunder Bay,and established the Pickle Crow mine. Many more discoveriesby NAME prospectors were to come.

A multitude of companies followed NAME’s lead, and soonairplanes – and the bush pilots who flew them – became an inte-gral part of the industry. Although NAME’s efforts did not resultin any mine development in the Far North, its legacy in openingup the region to exploration and prospecting is undeniable. CIM

How NAME opened up Canada’s North: Jack Hammell and the birth of aerial prospecting

by Correy Baldwin

In the summer of 1925, two brothers, Lorne and RayHowey, found gold at Red Lake in northwestern Ontario.The next year saw a gold rush into this remote northern

area that was to be the last of the old-style rushes. The Howey brothers

invited a man named JackHammell to assess theirRed Lake discovery, andHammell agreed to backthe development of theirmine. A former prizefight -er whose boxing nick-name, “the Whirlwind,”proved apt for his busi-ness approach as well,Hammell made a name forhimself promoting miningventures in the North –getting his start in thezinc-copper fields of FlinFlon, Manitoba, beforemoving to the silver minesat Cobalt, the Porcupinegold deposits near Tim-mins, and later the goldmines of Kirkland Lake.

The men were eager tobegin work, but by thenwinter was setting in, making it difficult to transport suppliesand equipment 300 kilometres through the bush. In the mean-time, word had gone out about their gold discovery, and otherminers would soon be arriving.

It was then that the ever-industrious Hammell had an ideathat would forever change the mining industry. Hammell con-vinced the Ontario Forestry Department to let him use sevenof their aircraft, and arranged to airlift the supplies to theHowey mine, thus cutting a 10-day journey by sleigh to a mere90-minute flight. The Howey gold mine got a head start on theRed Lake rush, and prospered as a result.

Miners and prospectors journeyed large distances by dogsled through the unforgiving wilderness, as they always had.But for the first time they competed not just with each otherbut with something entirely new – bush pilots. The Red Lakerush marked a modernization of the industry and a majorshift in the way northern mineral exploration and develop-ment was done.


T.M. Reid, Northern Aerial Minerals Exploration’s pilot, poses in front of a Fokker SuperUniversal equipped with skis in Grande rivière de le Baleine, Quebec, December 1928.

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