cim magazine september/october 2007

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February/février 2006 www.cim.orgSept/Oct • sept/oct 2007 www.cim.org

Boyd Payne on met coal •New projects and expan-sions: Fort Hills, Suncor,Kearl, etc. • Canadiancoal action

Syncrude SO2 levelsplummeting • FoothillsModel Forest • Cleancoal means a new energyera

Products, technologies,suppliers, contractors,companies, people: themovers and shakers ofcoal and oil sands

Morecoal & oil sandsMoresustainabilityMoredevelopment

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TECHNICAL SECTION99 This month’s contents

IN EVERY ISSUE4 Editor’s Message8 President’s Notes/Mot du président10 Letters to the Editor85 Calendar109 Professional Directory

FEATURES49 Oil sands industry overview Forget Uncle Sam, this industry wants you!

Emerging practices and technologies are enabling production rates to keep climb-ing. See how it’s growing in leaps and bounds. by D. Zlotnikov

54 Survol de l’industrie de sables bitumineux Oubliez l'oncle Sam, c'estcette industrie qui a besoin de vous! De nouvelles pratiques et technologies facilitentl'augmentation de la production. Voyez on y arrive.

57 Coal in Canada—production staying strong in the West Lookingfor the 4-1-1 on the Canadian coal industry? Look no further—it’s all spelled outhere. by D. Zlotnikov

62 Le charbon au Canada : la production demeure forte dans l’OuestÀ la recherche du 4-1-1 de l'industrie canadienne du charbon? Ne cherchez plus.Vous trouverez tout içi.

NEWS12 Offshore operations might face new taxes Proposals in ’07 federal budg-

et could hit mining companies by H. Ednie14 Design planned for Fort Hills project This integrated oil sands mining proj-

ect could be one of the next to enter production by C. Hersey20 Branding Elk Valley Coal An interview with Elk Valley’s president and CEO Boyd

Payne by H. Ednie22 Recruitment in the oil sands industry Learn how Syncrude is securing its

future workforce by H. Eve Robinson26 Shell Canada/ESA partnership offers a new perspective Satellite

imagery aids in sustainable development reporting by D. Zlotnikov28 Major SO2 reductions underway at Syncrude Hefty investments will lead

to a greener future by C. Hersey30 P&H adds AC drives to shovel line A development project comes to fruition

by H. Ednie

32 The new face of coal Coal Association of Canada chair discusses proposed newsolutions to reduce coal emissions by G. White

36 Going clean—the changing face of coal Putting forth potential applicationsof clean coal technology by H. E. Robinson

36 The coal gasification process Understanding the technology behind coalgasification by H. E. Robinson

40 The search for low-cost CO2 storage Learn how CO2 sequestration worksby H. E. Robinson

41 Looking forward to Voyageur South expansion Construction could beginsoon on this 120,000 bpd project by H. Ednie

42 Foothills Model Forest—research for a sustainable tomorrowMaking Canada a leader in sustainable forest management by C. Hersey

46 Kearl gearing up to be a producer Meet the next behemoth oil sandsproject by H. Ednie

COLUMNS64 MAC Economic Commentary by P. Stothart

66 Mining Lore by A. Nichiporuk

68 Canadians Abroad by H. Ednie

71 Innovation Page by G. Winkel and T. Demorest

72 HR Outlook by M. Sturk

74 Eye on Business by D. Podowski and A. Derksen

76 Student Life by S. Vetter

77 Parlons-en par S. Perreault

78 Engineering Exchange by H. Weldon

80 The Supply Side by J. Baird

81 Standards by A. Simón and G. Gosson

110 Voices from Industry by J. Carter

CONTENTSCIM MAGAZINE | SEPTEMBER/OCTOBER 2007 SEPTEMBRE/OCTOBRE

4 CIM Magazine n Vol. 2, N° 6

CIM NEWS83 New members of the CIM family

HISTORY89 California gold by R.J. Cathro

92 The evolution of shaft sinking systems—Part 2 by C. Graham and V. Evans

95 History of metal casting—Part 2 by F. Habashi

98 Mining in Canada—New online seriesby P. Nowosad

14

55

Our tradespeople are the safest, most experienced and competent in the business.

Our contractors are our partners and together we provide HIGH-VALUE skills that are superior to our competition.

We are the experts in providing Alberta with world-class tradespeople through our excellent apprenticeship programs.

We spend millions of dollars each year on training and upgrading our union members’ skills.

Our union members and their families appreciate the health/welfare and pension benefit plans provided by our affiliates.

These are some of the reasons why we’ve been around since 1906.

T R A I N I N G A L B E R TA N S A N D C A N A D I A N S S I N C E 1 9 0 6

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w w w . a l b e r t a b u i l d i n g t r a d e s . c o m

Editor-in-chief Heather [email protected]

Assistant Editor Andrea [email protected]

Technical Editor Joan TomiukPublisher CIM

Published 8 times a year by CIM855 - 3400 de Maisonneuve Blvd. West Montreal, QC, H3Z 3B8Tel.: (514) 939-2710; Fax: (514) 939-2714 www.cim.org; Email: [email protected]

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This month’s coverElk Valley Coal’s Greenhills Operations.Photo credit: Daniel Wiener, Montreal, Quebec

Layout and design by Clò Communications.

Copyright©2007. 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 inarticles or in any discussion appearing in its publications.

Printed in Canada

6 CIM Magazine n Vol. 2, Nº 6

High energy in coal and oil sands

Each year the September/October CIM Magazine is a special issue dedicatedto the coal and oil sands industry, and this issue’s no exception. As Albertacontinues to explode with growth and development, the oil sands indus-

try maintains its position as the primary hub of activity for Canada.This high energy of Alberta’s industry will drive the CIM Conference and

Exhibition next year, as it is being held in Edmonton, from May 4 to 7, with theMining in Society public show and Career Fair running May 2 to 4, kicking offthe event. There, leaders of the oil sands and coal industries will share with theirpeers from base metals, diamonds, uranium, potash, gold… the whole mineralsindustry will be participating.

In the face of the current focus on global warming issues, the minerals indus-try is stepping up to the plate, demonstrating its commitment to sustainablepractices. The coal industry is no exception. Often targeted for GHG emissions,the clean coal technology now promises to ensure coal’s place as an energy pro-ducer well into the future. A number of articles in this issue share insight intothe opportunities; in particular, please see page 32 for an article on the oppor-tunities for coal, written by George White, chairman of the Coal Association ofCanada.

Coal gasification and CO2 sequestration aren’t the only technologies promis-ing to further our industry’s environmental performance. Syncrude’s currentlyworking on a major project to reduce SO2 emissions (see page 28), while theFoothills Model Forest (see page 42), was the first-ever winner of CIM’sSyncrude Award for Excellence in Sustainable Development this past year—demonstrating industry’s commitment to a sustainable future.

Please read on and enjoy this issue of the magazine. I’d like to thank all thecontributors, advertisers, and the people who helped develop story ideas. Trueto most CIM products and events, this has truly been a group project.

Have an autumn full of colour,

Heather EdnieEditor-in-chief

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president’s notesSustainability, sustainable development, sustainable mining. Just what do these words mean? We all

have our own ideas and they can vary widely depending on what roles we have in the minerals or petro-leum industries.

One thing is certain: the use of our natural resources is an essential and integral part of society (alwayshas been and always will be). It is also my belief that the well-being of any country is directly related tohow effectively and responsibly they utilize their natural resources.

Another certainty is that eventually any mine will close or an oil well will run dry. We should never mis-lead any of our stakeholders in this regard. So the real question becomes one of how do we sustain ourindustries in such a way that we as individuals, or as companies (or collectively), balance economic wealthand socio-economic benefits while mitigating environmental impacts. This also includes understandingthe use of products during their life cycle.

Through CIM we have an obligation to promote the science and the understanding of sustainability asan ongoing process. We are committed to finding answers and I believe the answers will come fromwithin, as well as from our partnerships and relationships outside our industries.

To assist in meeting this objective, Syncrude Canada has sponsored an annual award that would rec-ognize groups or individuals who come up with innovative ways that assist all of the resource industriesin developing better sustainable processes. The 2007 Syncrude Award for Excellence in SustainableDevelopment was the Grizzly Bear Research Program as part of the Foothills Model Forest project inAlberta. You will read more about it in this issue on page 42.

I congratulate Syncrude for their leadership in this area and I would ask all members to keep an eyeopen to the efforts of the communities, institutions, companies, and academics who are working to ourcommon goal and help us to recognize success!

Durabilité, développement durable, développement minier durable. Que signifient ces mots au juste? Nous avons chacun notrepropre interprétation et elle varie grandement en fonction de notre rôle dans l’industrie minière ou pétrolière.

Une chose est certaine, l’utilisation des nos ressources constitue une partie essentielle et intégrale de notre société (il en a tou-jours été ainsi et cela va continuer). Je crois aussi que le bien-être de tout pays est directement relié à l’efficacité et la respons-abilité de l’exploitation des ressources naturelles.

Une autre certitude est que toute mine fermera un jour et que tout puits de pétrole s’asséchera. Nous ne devrions jamaistromper la confiance des intervenants à cet égard. La véritable question revient donc à la manière dont nous soutenons nos indus-tries afin qu’en tant qu’individus ou compagnies (ou collectivement) nous trouvions l’équilibre entre les ressources économiqueset les bénéfices socio-économiques, tout en atténuant les impacts sur l’environnement. Cela comprend aussi bien comprendre l’u-tilisation des produits durant leur cycle de vie.

Par l’ICM, nous avons l’obligation de promouvoir la science et la compréhension de la durabilité en tant que processus conti-nus. Nous devons absolument nous engager à trouver des réponses et je crois que des réponses proviendront tant de l’intérieurque de nos partenaires et nos relations à l’extérieur de nos industries.

Pour aider à atteindre ces objectifs, Syncrude Canada commandite un prix annuel qui reconnaîtrait les groupes ou les individusqui proposent des manières innovatrices aidant toutes les industries basées sur les ressources à développer de meilleurs procédésdurables. Le prix Syncrude 2007 pour l’Excellence en développement durable est le Programme de recherche sur les grizzlys dela Forêt modèle des Foothills en Alberta. Vous pouvez aussi consulter la page 42 de cette édition du Magazine pour en savoir plus.

Je félicite Syncrude pour son esprit d’initiative dans ce domaine et je demanderais à tous les membres de surveiller les effortsdes communautés, des institutions des compagnies et des académiciens qui travaillent à l’atteinte de nos but communs et ainsinous aider à reconnaître les réussites!

Reconnaître les pratiques durables

Jim PopowichCIM President Président de l’ICM

mot du président

Recognizing sustainable practices

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10 CIM Magazine � Vol. 2, Nº 6

Heather,My August edition of CIM Magazine

arrived on my desk this morning. Iloved seeing the headline on the cover –The culture of safety: What makes aJohn T. Ryan winner (Les exploitationsles plus sécuritaires). We need more arti-cles of this nature which emphasize safeproduction and how mining is a leaderin safety training and development.

Upon reading the article, it containsgreat interviews which reflect how seri-ously safety is regarded in these winningmining operations and how a culture ofsafety is vital. A salute is extended to youas editor and the author for her work.

The only quibble I have with thearticle (page 31) is that the K1 Mine inEsterhazy, Saskatchewan, is owned byMosaic Potash not PCS and the mine isnot located in Sussex, New Brunswick.

Take care,Peter McBrideOntario Mining Association

Heather,I received my copy of CIM Magazine

August 2007 issue today. Your article onthe winners of the John T. Ryan awardscontains several errors under the“Esterhazy” heading.

The K1 Mine is located in Esterhazy,Saskatchewan, not Sussex, NewBrunswick.

It is my understanding that the mineis owned by Mosaic Potash which wasformed by a merger of Cargill CropNutrition and IMC Global. It was for-merly an IMC-owned mine.

PCS Potash, the largest producer ofpotash in Canada, does have a mine inSussex, New Brunswick, and severalpotash mines in Saskatchewan.

Your first paragraph is very confusingas facts and errors appear to be inter-twined.

Regards,Jim SeeleyDynatec Corporation

Steeped in historyAndrea,

The article on Rossland,B.C. (August issue, MiningLore, CIM Magazine) is veryinteresting particularly sinceI am from this area and mygrandfather was a miner atthe IXL.

I have a photo in my col-lection of the IXL Drillingand Mining Crew taken in1921 which includes my grandfather. He was both a single jack and double jackminer in the Rossland area for many years.

I also have a specimen of ore that he had from the IXL which I keep tucked awayin a secure place as it is estimated to contain 10 ounces of gold.

These are the kind of articles that make CIM Magazine more interesting to read.

Jim CullinaneDSI Mining & Tunneling Products

ErrataIn the article Getting it there: some chal-

lenges of equipment logistics and export (p.20, June/July issue, CIM Magazine) weregretfully printed some errors. TheHitachi plant is correctly called “HitachiConstruction Truck Manufacturing Ltd.”and they supply Hitachi EH4500-2trucks, not Euclid trucks.

Kim Bell’s proper title is manager,marketing support for the HitachiGlobal Mining Center, and their cus-tomer mentioned in the article isEquinox Minerals Ltd. – LumwanaProject, located in Zambia.

CIM would like to apologize forthese errors to both Hitachi and toEquinox Minerals Ltd.

•••

CIM sincerely apologizes for errorsin the article The safety culture–John T.Ryan winners for safety performance(p. 29, August issue, CIM Magazine).

The Mosaic Potash Esterhazy K1 andK2 mine operations are located approx-imately 225 kilometres northeast ofRegina near the town of Esterhazy,Saskatchewan. Production at K1 startedin 1962 and in 1967 for K2.

Seventeen continuous miningmachines extract a 2.4 metre high oreseam using long room-and-pillar meth-ods at extraction ratios ranging from 40to 50 per cent. Typical composition ofthe ore is 55 per cent halite (NaCl), 40per cent sylvite (KCl), 4 per cent carnal-lite (KCl.MgCl2.6H2O), and 1 per centinsolubles (clays, anhydrites). The orezone (Esterhazy Member) is MiddleDivision in age and located within theupper Prairie Evaporate Formation, at adepth of 1,032 metres.

There are just over 400 Mosaicemployees and staff at the K1 site, whoworked 733,000 hours during 2006. TheK1 Mine Department has worked with-out a Lost Time Injury since December2005, and the K1 Mill Department hasworked without a Lost Time Injury sinceJune 2004.

Our apologies again to all the work-ers at this outstanding operation.

letters

K1 Mine making safety performance the priority for Mosaic Potash

Note from editor: I appreciate the feedback from Peter and Jim, and have had discus-sions with the folks at Mosaic. We greatly regret the errors in the article. I’m glad ourmembers picked up on this when I didn’t—the K1 Mine deserves proper recognitionfor its achievements in safety.

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newsOffshore operations might face new taxesby Heather Ednie

“THERE WAS THIS SUDDEN, INTENSE INTEREST IN THE OIL SANDS AND NEXT THING I KNEW,

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Giving backTeach them well and let them lead the way

Syncrude announced donations totaling almost $600,000towards educational initiatives in the Wood Buffalo region.Beneficiaries include Science Alberta Foundation’s Science-in-a-Crate program; the YMCA to help start a preschool pro-gram; and Keyano College’s Emergency Medical TechnicianSupport program.

Canadian mining companies withoperations outside the countrymay face increased tax pay-

ments depending on how theDepartment of Finance implements aproposal in the 2007 federal budget.

“We’re seeing a risk, based on howthe proposal is implemented, forCanadian-based companies withoperations in countries that don’thave tax treaties with Canada,”explained John Gravelle, tax servicespartner and Canadian tax leader for the mining industry,PricewaterhouseCoopers. “Many ofthese countries are in Africa, CentralAmerica, and Asia—places withtremendous mineral potential.”

Subject to a phase-in period, theprovision could require foreign sub-

sidiaries of Canadian companies to paycurrent Canadian tax on all earnings ina country that lacks a treaty and doesnot enter into a Tax InformationExchange Agreement with Canada.The immediate tax would equal taxcomputed under Canadian rules, less acredit for foreign tax paid.

Under existing law, the current taxpaid is the tax of the countries they dobusiness in. Incremental Canadian tax ispaid only when such earnings are paid tothe Canadian shareholder by dividend.

“One concern with the TaxInformation Exchange Agreements isthat they allow the government toobtain information on wealthyCanadians with money in tax havenssuch as the Caymen Islands,” Gravellesuggested. “There is a feeling that, in

truth, the government wants informa-tion of wealthy individuals with nesteggs offshore, but they are using thecompanies with foreign operations toobtain it.”

Complicating the issue is whetheror not all countries will agree toCanada’s request, and what happens ifthey don’t. “There are trust issues withoutside governments, so I doubt thatall these countries will comply,”Gravelle noted. “However, if thoseagreements aren’t concluded immedi-ately, then the companies will be sub-jected to new taxes.”

The proposed new approach willmean companies lose the benefit of aforeign tax holiday, since lower foreigntax immediately results in increasedCanadian tax. CIM

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On June 28, Petro-Canada, on behalfof the Fort Hills Energy L.P., announcedtheir formal design basis for the newFort Hills Project. Located in Alberta,Fort Hills is an integrated oil sands min-ing project, which includes a mine andbitumen extraction plant 90 kilometresnorth of Fort McMurray and anupgrader in Sturgeon County, northeastof Edmonton.

“This milestone marks the partner-ship’s commitment to proceed with thefront-end engineering and design(FEED) stage,” said Petro-Canadaspokesperson Chris Dawson. The FEEDstage is expected to take about 12months, after which a definitive costestimate will be produced. The final“go-ahead” decision on the project willbe based upon that cost estimate.

The mine had received regulatoryapproval from Alberta Environment andthe Alberta Energy and Utilities Board in2002, and the first cut (initial mine sitewhen production begins), has beencleared of trees and vegetation. They’represently in the process of ditching anddraining to remove surface water; officeinfrastructure, heavy haulers, and someother earth-moving equipment havealready been put in place. The next stepis to drain and contain the subsurfacewater and remove the excess soil toreveal the precious bitumen ore.

Thus far, the mine has ordered 25 ofthe heftiest trucks they could find, andplans on ordering other long-leadequipment over the next year—and let’sjust say the order’s a tall one. About$800 million will be spent on heavyequipment for the mine and upgradersites over the next year; the preliminarycapital cost estimate for the first phaseof Fort Hills is $14.1 billion. This firstphase is expected to produce about140,000 barrels per day (b/d) of syn-thetic crude oil, with production fromthe Sturgeon Upgrader foreseen in thesecond quarter of 2012. Bitumen pro-duction is anticipated at 160,000 b/d

and is expected to begin in the fourthquarter of 2011.

The mine site is located in theAthabasca fairway of prime oil sandsmining operations, one of the largest ofthe few remaining undeveloped leasesin the area. Dawson said that so far, thesurrounding communities have beenmostly supportive. Just before achievingmine approval in 2002, the AlbertaEnergy and Utilities Board held a publichearing in which opinions were voiced

and concerns addressed. Most peoplearen’t putting up much of a fuss aboutthe opening of the Fort Hills mine, espe-cially with all the opportunities it has tooffer. About 1,100 new permanent jobswill be created, some of which will haveto go to foreign workers, but the mineplans on making good use of all theskills and talent around them, whichmeans the surrounding communitiesget first pick when it comes to employ-ment. The mine also has formal com-

Design planned for Fort Hills projectby Carolyn Hersey


news

Photo courtesy of Petro-Canada

news

munity partnership agreements withthree regional First Nations: FortMcKay, Mikisew Cree, and AthabascaChipewyan.

Petro-Canada and its Fort Hill part-ners are committed to responsible devel-opment, and so they’ve taken it uponthemselves to make promises they can besure to live up to. The company will relo-cate fish species desirable to FirstNations, ensure wildlife use of river val-ley habitats isn’t disrupted by settingback the mine, and work with FirstNations to ensure that reclamation plan-ning and design meets their needs andexpectations. In the Fort McKay FirstNations’ case, transportation will be pro-vided to and from the Fort Hills mine sitefor employees and contractors workingthere. Petro-Canada provides funds andsponsors the Fort McKay First Nationsdaycare facility; they also work with theirschool industry group to identify areas toprovide funds for projects such as the sci-ence fair, year book, earth education

camp, and more. Mikisew Cree andAthabasca Chipewyan First Nations alsobenefit from the agreement. Funding isprovided for the Aboriginal SummerStudent Program, and Petro-Canadamade sure to sufficiently distance the

mine from theAthabasca RiverValley wall so as tomaintain the river’sstability. It is per-haps still very earlyinto the project, butDawson said that“throughout the lifeof the project—andas mandated prior toconstruction—we’rebound by more than100 environmentalcompliance condi-tions set forth by theEnergy and UtilitiesBoard and AlbertaEnvironment.”

We can rest easyknowing the sur-rounding communi-ties and natural envi-ronment are wellprotected, but whatabout the workersand their operationalenvironment? FortHills has it covered.“Workforce safety is

the number one priority at Petro-Canadain all phases of our operations,” saidDawson. The company’s “Zero-Harm”philosophy stems from the belief thatalmost all injuries are foreseeable andavoidable, both at work and at home. Thisreflects how Petro-Canada values itsworkers. To them, occupational illnessand injury are unacceptable and are there-fore not considered an unavoidable com-pany risk. This philosophy is reinforcedby their Total Loss Management (TLM)performance standards. TLM aims to pro-vide a safe and healthy working environ-ment and is also committed to reducingrisks to the point where there is “Zero-Harm” to any and all people.

In accordance with “Zero-Harm,”Petro-Canada also identifies workplacehazards and monitors the health of theworking environment and individualemployees. Ongoing industrial hygienesamplings to measure workplace expo-sures (and provide solutions to thoseexposures) are all a part of keeping every-thing and everyone squeaky clean. Allemployees who are at risk of exposure topotential health hazards are recom-mended to undergo individual healthassessments. In 2006, the company’s“overall total recordable injury frequency(the number of employees and contrac-tors injured on the job per 100 people—TRIF) decreased to 0.85, breaking the 1.0barrier and putting them among the bestsafety performers in their industry. This


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represents a decrease of 25 percent compared with 2005.”They plan on continuing tomake significant headway.Petro-Canada emphasizes theirpledge to safety by regularly par-ticipating in safety stand-downs—occasions where seniormanagement visits field sitesand facilities, to talk withemployees about health andsafety issues. Thus, Petro-Canada reinforces their positionon the list of safety leaders.

Fort Hills Energy L.P. con-sists of Petro-Canada (with a55 per cent working interest),UTS Energy Corporation (with a 30 percent working interest), and TeckCominco Limited (with a 15 per centworking interest), with Petro-CanadaOil Sands Inc., a wholly-owned sub-sidiary of Petro-Canada, as the contractoperator for the project. UTS Energy

Corporation was very much involved inthe re-establishment of the Fort HillsOil Sands Project and is the principalfounder of the Fort Hills EnergyPartnership. When all’s said and done,partners in the project will most likelybe grinning from ear to ear. Once the

final phase is complete, the project isexpected to produce up to 280,000 bar-rels of synthetic crude oil per day by theyear 2015. Once the dust has settled,the Fort Hills Project will be runninglike a well-oiled machine—a very safe,environmentally savvy, machine. CIM



UTS Energy Corporation

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On August 17, 2006, Boyd Paynetook over the leadership of Elk ValleyCoal, the second largest producer onthe seaborne high-quality coking coalmarket. Payne’s history in the coalindustry is impressive—originally achemist, he left the oil industry for coalin 1974, found it a fascinating industry,and has been an avid participant since.Originally from Coleman, Alberta, inthe Crowsnest Pass and not far fromthe bulk of Elk Valley’s operations, hegravitated to marketing in the 1990sand spent five years in Singapore forBHP Billiton in their coal marketingdepartment. It offered him the vantagepoint to see things from another angleand develop a different perspective. Hebrought that global focus back to ElkValley last year, and the company’sbeen driven by renewed energy sincehis arrival.

CIM caught up with Payne on hisone-year anniversary with Elk Valley,to discuss the global metallurgical coalmarket and his approach to maintain-ing a leading position for the company.

CIM: What is the situation for ElkValley Coal today and thehard coking coal market?Payne: We’re selling 23 mil-lion tonnes annually, mak-ing us the second largestsupplier of seaborne high-quality coking coal,after BMA (BHP Billiton/Mitsubishi). We live in theexport world; 35 per cent ofour product goes to Europeand the surrounding areas,10 per cent to SouthAmerica, and another 10per cent to North America,while the remainder isshipped to Asia.

Hard coking coal hasrealized indirect benefitsfrom the China phenome-non. The increase of rapid

Branding Elk Valley Coalby Heather Ednie

development in the BRIC nations(Brazil, Russia, India, and China) hasseen the global steel industry pricesincrease, and steel companies aremuch healthier today, resulting in achange in their operationalapproaches. One way is they are seek-ing more higher quality raw materials,and the price of hard coking coal hasvirtually doubled.

CIM: What situation do you foresee forthe future? Are there any risks thatmight threaten today’s strong marketconditions?Payne: Going forward we will haveincreasing demand, but increasingvolatility as well. The situation inChina exhibits the opportunity forhuge changes, due to the immaturity oftheir financial structures. History pre-dicts there will be discontinuities,resulting in volatility. As we sit heretoday, the entire market is affected byglobal developments—the sub-primecrisis out of the United States is anexample. If China were to experience amajor banking crash, we’d see majorchanges in our markets.

CIM: So how does a company preparefor potential market fluctuations andshifts?Payne: You have to look at where youare on the cost curve. In our case, wealso looked at the quality of our prod-uct, and are now driven to produce thebest quality as fast as we can, at thebest costs we can achieve. It meanscontinuous improvement. You can’t be

Boyd Payne

20

Photo taken at Elk Valley Coal’s GreenhillsOperations. Credit: Daniel Wiener, Montreal, Quebec

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lulled by today’s prices—that’s a trap.You have to first understand your roleand position on the marketplace tothen best situate yourself to deal withany fluctuations.

Over the past year, we’ve dramati-cally increased the quality of ourproducts and improved our capabili-ties to produce the high-quality prod-uct. Most of our reserves, about 90per cent, are hard coking coal. Wehave been working to create the bestproducts from those reserves. Ourplan, logistics, port facilities—every-thing is now blended for the cus-tomers’ benefit.

It’s about building your brand.We’ve built a strong brand and must bea slave to maintaining consistency. Wehave repositioned this year as the reli-able second largest supplier ofseaborne high-quality coking coal inthe world. The world is moving at anever-faster pace. We must up our game.

CIM: Everyone is talking about climatechange today. How has Elk Valley Coalresponded to the call for action?Payne: Certainly we all have to payattention to climate change and takeresponsibility for our part. At ElkValley Coal, we export our product toother countries to be consumed by thesteel industry. So we work with ourcustomers to provide value to decreasetheir footprints. The focus is on tech-nologies and efficiencies. In our opera-tions it’s just good business.

CIM: You speak about repositioning thecompany, of continuous improvement,and quality. How do you manage suchfocused change across existing opera-tions?Payne: The focus must be on quality,excellence of execution, understandingour role in the world, and doing theright thing with it. We have the knowl-edge and the team to execute. At Elk

Valley, we’ve recognized that true behav-ioural change and improvement strate-gies must be across every aspect of thecompany. People traditionally thoughtof our assets as the hard tangibles, suchas trucks and shovels, but today, weknow our assets are everywhere—theyinclude the people, customer equity,and so on. Everything must be exam-ined from the same knowledge perspec-tive and we must keep on improving.

CIM: It sounds like you have yourhands full at Elk Valley and are relyingon your team to realize some majorchanges.Payne: It’s true, and we have the rightpeople to make it happen. I love thisbusiness. The global mining commu-nity is relatively small and full of fas-cinating people. Business is busi-ness—what matters is the people. Andso I’ve enjoyed my years in the miningindustry. CIM

September/October 2007 21

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Natural resource industries inCanada rely on a qualified and skilledworkforce. These industries are growingand, as a result, they continuously seekcapable people for jobs across the coun-try. In order to contend with an increas-ingly competitive market, companiesmust develop effective recruitmentstrategies.

Last year, Syncrude Canada Ltd., anAlberta-based company that currentlysupplies 15 per cent of the nation’spetroleum requirements, hired 750 newpeople to join their workforce of about4,500. In response to the job openings,they received 45,000 applications. Thisyear, they hope to hire as many as 1,000new employees.

“Like everyone else in Canada’sresource industry, the recruitment ofskilled workers has become more chal-lenging in recent years,” said AlainMoore, a public affairs advisor forSyncrude.

”But we have been successful in find-ing high-quality people coast to coast.With such a large response to our jobopenings, we have obviously done agood job at establishing ourselves as anemployer of choice and attracted a lot ofattention. Our recruitment approach isvery strategic and it plays a key role inour business.”

Recruitment has significantlyincreased in the past few years. One ofthe reasons for this increasing demandis because oil sands operations areexpanding, which requires more peopleto run the facilities. Since the first oilsands project in 1967, the output ofmarketable oil sands production hasincreased to 1.1 million barrels per day(bpd) in 2006. According to theCanadian Energy Research Institute (a2005 study), production could reach upto 3.6 million bpd by 2020. Based onthis projection, the global oil sandsindustry would create approximately6.6 million years of employment (bothdirect and indirect) between the years

Recruitment in the oil sands industryby H. Eve Robinson

2000 and 2020. As much as 56 per centof this employment would be in Alberta.

An added challenge is an increasinglycompetitive job market combined withdemographic realities. There is a largecontingent of people currently workingin the oil sands industry that will beretiring over the next few years. Mooreexplained, “This industry had a massivehiring phase back in the late 1970s andearly 1980s. These people are gettingready to retire now, after a 25 to 30 yearcareer. To manage replacing a retiringworkforce, we actively recruit newemployees and provide opportunitieswhere they can be mentored, to gainsome of the knowledge people havelearned from experience over the years.”

Syncrude addresses these challengesby using a specific recruitmentapproach in order to attract people tothe oil sands industry. One of these waysis that the company hires within themining industry. These employees comefrom all across Canada with many yearsof experience. There are differencesbetween operations in the oil sands

industry and other natural resourceindustries. However, Moore said thisworks to everyone’s advantage. “It is atwo-way street, where people experi-enced in other types of mining are ableto share their experience with our exist-ing workforce, and vice versa.”

The company also works very hardto build the capacity for their operationsby supporting local employment.Preference is given to qualified appli-cants who live in the Wood BuffaloMunicipality and approximately twoout of three of the people hired are localresidents. In order to maintain this levelof community investment, Syncrudeconcentrates efforts to help local resi-dents gain the skills they need for afruitful career in the oil sands.

“It starts with finishing high school,then entering a trade, or post-secondarytraining,” said Moore. “The oil sands isa high-tech industry so we need veryhighly skilled people. If people are look-ing for opportunities in the oil sands,they need to receive training, whichcould involve attending university to


Journeymen welders with an assembled clam bucket for a hydraulic shovel. Photo courtesy of Syncrude Canada Ltd.

Equipment:• Komatsu trucks

• Komatsu hydraulic shovels

• Komatsu WA1200 loader

• Sandvik rotary blastholedrills

Services:• Mobile Equipment

Maintenance

• Maintenance Planning

• Logistics

• Field Service including major overhauls

• Western Canada G.E. Authorized Repair Centre

• Electrical & mechanical component rebuild

• Large component welding

• Used equipment sales

• New and used parts sales

Edmonton, AB 780-454-0101

Elkford, BC

Fort McMurray, AB

Port Coquitlam, BCTranswest Mining Systems, Division of KCL West Holdings Inc.

w w w . t r a n s w e s t m i n i n g . c o m

Supporting WesternCanadian Mines

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become an engineer, doing a businessdegree to gain financial or accountingskills, or learning a trade.” He empha-sized “getting a trade is a very valuableskill anywhere in Canada, especially inthe oil sands industry. Trades people arevery marketable in Alberta.”

Another recruitment approach hap-pens in the classroom. Representativesfrom the company go to schools toinform students of the various opportu-nities available in the oil sands industry.A number of Grade 9 students are ableto tour the facilities to see what isinvolved; there is also a program thatallows employees to take their sons ordaughters through the site.

“This allows [young people] to seesome of their career options,” said Moore.“They might have a good idea of tradi-tional job opportunities such as becom-ing a welder, mechanic, or electrician, butwe enjoy showing them the tremendousrange of career paths that we offer.”

Syncrude is also the only oil sandscompany accredited at the Gold Levelfor the Progressive Aboriginal Relations(PAR) Program. This recognizes thecompany’s commitment to “increasingaboriginal employment, assisting busi-ness development, building individualcapacity, and enhancing communityrelations,” as outlined by the CanadianCouncil for Aboriginal Business.Currently, aboriginal people composeabout nine per cent of the Syncrudeworkforce.

Syncrude collaborates with govern-ment agencies and educational institu-tions to offer training programs specifi-cally designed to be effective and leadto employment. The AboriginalDevelopment Program focuses on keyareas such as encouraging corporateleadership, employment, businessdevelopment, education and training,community development, and theenvironment.


Academic scholarships are also avail-able for aboriginal students interested inpursuing specific career goals. In addi-tion, Syncrude produces an ‘aboriginalreview’ each year. This update informsstakeholders about the company’s workwith aboriginal relations and providesan overview of yearly performance inthe commitment areas outlined in theAboriginal Development Plan.

Recruiting and maintaining a well-trained and productive workforce isessential in the resource industry, andcompanies such as Syncrude recognizethis importance. As stated in their visionand values, “We are in a race with othernew sources of energy and our perform-ance over the next three to five years isgoing to be critical for our long-termsuccess. Syncrude employees havedemonstrated ‘heart’ many times in thepast, and we are going to rely on thiscontinued dedication to ensure ourfuture success.” CIM

PROUDLY OWNED BY FORDING CANADIAN COAL TRUST AND TECK COMINCO LIMITED www.elkval leycoal .ca

Her view of the worldincludes ours. YOU can see it right there in the stainless steel appliances, the

children’s metal swing set, the minivan’s smooth curved lines andthe bicycle speeding by.

Our world is the Elk Valley, and we’re Elk Valley Coal, the northernhemisphere’s single-largest producer and exporter of hard cokingcoal. Our coal products are found in railroads, shopping carts, automobiles and trucks, and they’re essential to building our skyscrapers, our ferries and even wind turbines.

It’s been this way since the Iron Age, when coal was first used totransform raw iron ore into steel, an event that changed the livesof the world’s inhabitants.

The rest, as they say, is history – 2,500 years using hard coking coalto create steel.

It’s how our products make it into hers...and yours...every day.

E

future, when the mine is beginningreclamation activities.

“This environmental team may notbe here in 30 years,” said Martindale,“but the satellite imagery data will beavailable, and the analysis can be usedin conjunction with the technologiesthat may be available in the future. Atthe moment, if aerial photographs arenot available, the mine engineers rely onthe satellite data for site developmentplanning.”

Andy Dean, Hatfield’s remote sensingscientist who has been working withMartindale on the project, explainedanother benefit offered by thisapproach.

“Satellite imagery presents the infor-mation in a more visual,transparent form, whichallows Shell and Albianuse the information incorporate sustainabledevelopment reporting.”

This benefit lies at theheart of the original proj-ect proposal. The ESA,looking to expand itsEarth Observation serv-ices to new areas, wasseeking to demonstratenot only its ability to gen-erate the relevant meas-urements, but also showthat the data could beincorporated into thestandard sustainabilityreporting done by majorcorporations. Satelliteimagery is well situatedfor this, said Dean.

“It’s important tostakeholders that the dataitself comes from an inde-pendent source. Theanalysis of that data, ontop of being done by athird party, is audited. All

Environmental Manager DarrellMartindale.

“Hatfield Consulting does a lot ofwork with the various satellite imageproducers, and I’ve been working withthem for a long time,” saidMartindale. “The ESA put out a solic-itation for sustainable developmentprojects, and Hatfield came to me andasked, ‘Do you think this is somethingwe could do?’”

Because the Muskeg River Mine isstill a relatively new site, saidMartindale, the primary function of theimagery data is to supplement the datacollected by the monthly ground-basedsurvey teams. The benefit of the satellitedata will become more prominent in the

In late June, Shell Canada andAlbian Sands announced a newtechnology being put into use atthe Muskeg River Mine. With thegoal of enhancing the company’s

reclamation monitoring program, Shelland Albian have contracted theEuropean Space Agency (ESA) to pro-vide regular satellite imagery updates ofthe project site.

The project was born when the ESA,in an effort to expand its satelliteimagery customer base, solicited newsustainability-related contracts. HatfieldConsultants, an environmental consult-ing firm in Vancouver, was one of thegroups contacted with the proposal.Hatfield then approached Albian Sands

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Shell Canada/ESA partnership offers a new perspectiveby Dan Zlotnikov


A sample of the satellite imagery generated for Albian Sands

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the analysis methods and statisticsproduced by Hatfield were audited byPricewaterhouseCoopers. That givesboth the company and the stakehold-ers confidence that the information iscorrect.”

Albian Sands commissions two datasets per year, which provide a completepicture of the changes in vegetationand landscape over the course of theyear. But what the company gets ismuch more than can be seen with thenaked eye.

“When I purchase the imagery,”explained Martindale, “I’m not just get-ting photos, I am getting seven or eightspectrum bands of detailed informa-tion.” With the continuing improve-ments in remote sensing technology, thebands can be focused to an extremelyfine resolution.

“The near-infrared spectrum is a verygood indicator of vegetative health. Alush green field will be a bright read infalse-colour infrared. In the past five toseven years,” said Dean, “the resolutionavailable to the civilian sector hasimproved drastically. Where you oncehad a resolution of 30 metres, now youcan have a resolution of a metre or less.Image quality has also improved.”

Movin’ on upJanice Dunn Lee became deputydirector-general of OECD NuclearEnergy Agency. Prior to taking onthe position, Lee had been director ofthe United States Nuclear RegulatoryCommission Office of InternationalProgrammes since 1999.

Irvine Annesley was appointed direc-tor of exploration at JNR Resources. Hebrings 19 years’ experience as a seniorresearch geologist to the company.

Tim Watson became senior vicepresident of project development atTeck Cominco. He made the moveafter occupying the position ofCOO, power and process, at AMECPLC.

Other advantages offered by the tech-nique come in the form of standardiza-tion. Dean explained that there are stan-dard methods for handling atmosphericand terrain distortion, as well as thenearly fixed position of the satellite.

Finally, satellite imagery allows Shellto gain insight into potential cumulativeeffects of Muskeg River Mine opera-


tions, information that could be used infuture expansions. According to Dean,Albian Sands is currently the only proj-ect in the region using satellite imagery,but if the project continues to do well,his hope is that other operators takeanother look at the technique and itspotential value to oil sands developmentand reclamation. CIM

news

In a region knownfor behemoth oil sandsprojects, constructioncrews are literallybuilding the founda-tion of improved envi-ronmental performance35 kilometres north of Fort McMurray.Syncrude is pouringconcrete foundations aspart of its SyncrudeEmissions ReductionProject estimated tocost $772 million.

Despite the heftyprice tag, Syncrude’sgeneral manager of reg-ulatory and externalaffairs, Don Thompson,believes it’s an impor-tant investment. “Thisendeavor isn’t aboutincreasing production.Its sole purpose is tomake a further reduc-tion in our emissions,”he said. It was taken as aproactive step ahead ofregulatory requirementand involved a detailedreview to find the appro-priate opportunity and technology.

In a nutshell, the SyncrudeEmissions Reduction Project (SERP)will retrofit sulphur reduction technol-ogy (flue gas desulphurization) ontheir two original cokers. It will retrofitcokers 8-1 and 8-2 with flue gas scrub-bing technology, and along with theflue gas desulphurization unit alreadyattached to its newest coker (coker 8-3), the company expects to reduce SO2emissions by 60 per cent.

The process involves “dry lime”scrubbing technology, which uses alime solution inside the spray dryer toabsorb sulphur. This in turn results inthe production of gypsum, which iswithdrawn from the dryer. The leftover

Major SO2 reductions underway at Syncrudeby Carolyn Hersey

scrubbed flue gas flows into a baghouse, which uses fabric filters (muchlike massive vacuum bags), and anyremaining gypsum and particulate mat-ter is trapped.

Particulate emissions should also bereduced by about 50 per cent as a resultof the use of those fabric filters. Whenall’s said and done, Syncrude’s cur-rently approved SO2 emission level of245 tonnes per day will drop to 100tonnes per day. This reduction is alsobeing achieved at the same time thatSyncrude has increased its productionby more than 40 per cent.

Because SERP involves a retrofit, theproject is currently being constructedwithin an operating facility. As a result,

“the construction team is using inno-vative solutions to work within thatspace while also meeting our commit-ment to safety and reliability,” saidThompson.

It’s an example of innovation.Consider the use of the world’s largesttower crane—the first of its kind inCanada and only twice before in NorthAmerica has a tower crane of this sizeand magnitude ever been used.

After studying the complexity of thejob and the very minimal space theyhad to work with, Syncrude concludedthat a tower crane was the best optionfor the majority of their lifts, and so theKroll 10,000 was brought in. Only 15 ofthese massive machines were ever built,


The operator of the Kroll 10000 will have a bird's eye view of Syncrude from a perch 320 feet above grade. Photo courtesy of Syncrude Canada Ltd.

mostly for the nuclear power industry,but the constructability team found oneavailable in Denmark, and Syncrudepurchased it to help with the construc-

tion of the project. Towercranes such as this are nor-mally used to construct sky-scrapers in areas where thereis very limited working space.

This type operates verymuch like a crane tower, inthat it hoists and sets loads,but in the Kroll 10,000’s case,the operator sits 320 feetabove the ground. The foun-dation of the tower itself willbe octagonal in shape, andmeasure about 50 feet wide.While most lifts for theEmission Reduction Projectwill be in the 90 to 100 tonrange, the Kroll 10,000 willstick out like a sore thumb—a very innovative and capablesore thumb.

At a radius of 330 feet, theKroll has a lifting capacity of104 tons and a hook heightof 300 feet. At a 150-footradius, the lifting capacitymore than doubles, to 240tons. You can bet that withsuch heavy-duty machineryinvolved, Kroll technicianswill properly train all

selected crane operators. With its out-standing lifting capacity, along with thevarious radii, the tower crane willallow for more pre-assembly to be doneoff site, thereby avoiding an over-crowded working environment.

Ernie Sheaves, a crane and riggingspecialist and also a member of theconstructability team who recom-mended the Kroll 10,000, said thatSyncrude “will be able to perform morethan 90 per cent of their heavy lifts forthe project with this tower crane with-out having to relocate.” He also notesthat about two-thirds of the EmissionReduction Project construction sitewould have been covered by cranemats just to get things up and running.

“We’re eliminating the need to buildmassive crane pads each time we want

to move a crawler crane.” The lesstime it takes to start reducing emis-sions, the better. Construction forthe Kroll 10,000 is expected to becomplete by the middle of September2007 and ready for use by October.

Site preparation for SERP beganin 2006, and the civil constructionphase of excavation, pilings, andfoundation work is scheduled forcompletion in mid-2007. It willcome on line in stages starting in2009 up until 2011, to allowappropriate tie-ins to the operatingcokers.

“Syncrude started its leading-edgeenvironmental work since its begin-ning,” said Thompson. “Our landreclamation and other environmen-tal scientists were the first employeeson our site more than 30 years ago.”

So, the oil sands pioneer sees thisproject as a natural and obvious stepforward for their organization, whichhas always been committed to itsenvironmental responsibilities.

“We feel this project will helpreinforce Syncrude’s position as aleader in the responsible develop-ment of the oil sands,” Thompsonstated.

When it comes to learning moreabout the environment, their impact,and finding ways to mitigate thatimpact, Syncrude has long been ded-icated to the cause. I suppose, whenit comes to the environment, morereally is less. CIM


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A new shovel from P&H MiningEquipment is proving its mettle atSuncor’s oil sands operations this sum-mer. The 100-ton payload 4100 BOSSoil sands shovel has been outfitted withan AC drive, and so far it’s been up tothe challenge of moving material morequickly than other shovels in theregion to help Suncor meet its risingproduction targets, said Tom Barnes,manager, OE products, P&H MiningEquipment.

“At P&H we’ve traditionally offeredDC drive technology, and will con-tinue to do so on our electric shovelline,” said Barnes. “We’ve often beenasked ‘when’ P&H might move for-ward on AC drives, as it’s been the gen-eral trend for fixed power applications.But we’re cautious. We’ve never beenwilling to jeopardize the reliability ofour equipment.”

Over the past few years, as com-puter technology has advanced, P&Hcontinually found ways to obtain moreperformance out of their DC drives,and didn’t see a need to switch to AC.However, upon requests from cus-

P&H adds AC drives to shovel lineby Heather Ednie

tomers and with growing evidence thatAC drive technology had arrived at apoint where its reliability and perform-ance matched P&H requirements, theydecided it was time to move forwardwith an AC drive.

The P&H AC drive developmentproject began in 2004, and the pilot unitwas shipped to Suncor last November tobe up and running and used in produc-tion by March this year, which wasachieved. Overall, Barnes said, “We’revery pleased, and the shovel is doingvery well—the AC drives are extremelyresponsive and reliable, and the motors,designed and built by P&H, are per-forming equally well.”

“There was one minor issue in themotor design, but we detected it early,found the root cause, and made the cor-rection.” Barnes recalled. “But the avail-ability and productivity goals set for thepilot shovel have been exceeded—wehave a real winner here.”

P&H worked with Suncor on theshovel design, primarily for decisionsrelated to maintainability. Suncor wasregularly at the table throughout thedevelopment process and providedvaluable input.

With one currently in operation, twomore have been sold, and P&H is work-ing on plans to extend AC drives toother models. CIM


P&H pilot shovel in action at Suncor

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Worldwide coal consumption isexpected to increase by 74 per cent from

2004 to2030.1 It isvery difficultto envisionhow rapidlydeve lop inge c o n om i e ssuch as Indiaand Chinawill be able toreduce theirdependenceon coal andc o a l - b a s e dtechnologies.All indica-tions are that

the 74 per cent is a good number.By its very nature, coal is abundant,

available, and affordable. It is widelydistributed around the globe and it isparticularly abundant in westernCanada. As a solid material found rela-tively close to the surface, the locationsof coal deposits are well known. Coalhas been in place for millions of yearsand it is increasingly being exploited bycountries throughout the world to driveeconomic growth.

And yet, this consumption of coal isat odds with the worldwide demand toreduce greenhouse gas emissions. Eachtonne of coal consumed for combustionhas the potential to produce between1.8 and 3.2 tonnes of CO2, dependingon the quality of the coal. At today’sglobal consumption of approximately 5billion tonnes per year,2 this amountsto at least 10 billion tonnes of CO2emissions per year from coal alone.Almost none of this CO2 is capturedand it ultimately ends up in the earth’satmosphere where many of the world’sexperts believe that it is contributing toglobal warming. And much of theworld’s coal is used directly for electric-ity production. Electricity supply anddemand are growing on all fronts and

The new face of coalby George White, Chair of the Coal Association of Canada

along with them the CO2 emissionsfrom fossil fuels.

So here we have the issue: how can wereduce the CO2 footprint of coal while atthe same time expanding consumption ata rate of 74 per cent over 25 years? Somesolutions exist and they may be moreplausible than we might think.

Some historyIn Canada, many remember the pol-

lution issues in the Great Lakes thatresulted from effluent releases byneighbouring large industries andmunicipalities. We can also rememberthe excessive sulphur dioxide andnitrogen oxide emissions into theatmosphere leading to acid rain andsmog. Later, there was the depletion ofthe ozone layer, a global issue. To agreat extent, these issues have beenrepaired or, at least, been made accept-able, by the implementation of goodpolicy, regulations, and technology. Ifthe pollution and SO2 and NOx issueswere prevalent in the 1970s, and theyare now under control, we know that ittakes 30 years or so to implement effec-tive change. Now, 17 years after the ini-tial attempts of the United Nations todeal with the economic benefits ofgrowth in carbon uti-lization versus the con-sequential damagesassociated with CO2emissions, we arebecoming aware of howchallenging it is to find a solution for coal-produced CO2.Furthermore, our pastsuccesses at cleaningthe environment do notoffer much assistancewith regards to the CO2predicament for a num-ber of reasons:• Effluent, SOx and

NOx (ES&N) issueswere local in nature,

as was the solution. CO2 is a globalissue.

• ES&N volumes were measured inthousands of tonnes of emissions.CO2 output is measured in billions oftonnes.

• There is an immediate local impact ofeffluent (visible pollution), SOx (acidrain), and NOx (smog) that providesinstant feedback on cleanupprogress. No so with CO2, whoseimpact is still disputed by some andhas a secondary nature (reduction inice caps as a result of warming forexample).

• Finally, the opportunities to resolvethe issues associated with ES&Nwere readily available as add-ons toexisting processes. The fact is, wehave no technology that will rid us ofCO2 emissions once the CO2 isformed. If we are going to utilize car-bon-based fuels for energy produc-tion, the best we can do is reduce ourconsumption and capture the CO2that is produced.All of this supports a conclusion that it

will take more than the 30 years to effecta real change in this complex issue. Thisconclusion is entirely consistent with theprogress made in the first 17 years.

Boundary Dam mine and dozer

George White

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Long-term CO2 reduction scenariosfor coal-fired power capacity

Leaving the policy and regulatorydecisions to others, and solely dealingwith thermal electricity productionfrom coal, how are the technology lead-ers responding to the concurrentdemand for more coal consumption andthe reduction of greenhouse gas emis-sions? This question—from a coal per-spective—has to be answered in twoparts. Firstly, how are we going toreduce the emissions from the existingfleet of coal-fired power plants inCanada and, secondly, what are wegoing to do to reduce or eliminate thecarbon footprint of new coal plantsplanned to satisfy growth.

The existing fleetConventional coal combustion, the

type used in almost every coal-firedpower plant in the world, is becomingmore efficient. This allows less fuel to beburned to make the same amount ofenergy, resulting in fewer CO2 emis-sions. The impact of this is significant.Worldwide, we find that the newestplants can be as much as 90 per centmore efficient than the oldest.

Older plants are usually smaller thanthe newest plants, largely becauseadvanced materials of construction werenot available years ago. As a conse-quence, operating temperatures andpressures were lower and, in the worldof power generation, this means that theolder plants are less efficient. Smallerplants were prevalent years ago becausedemand growth for power was muchless than now and the market could notsupport large plants. Smaller plants areless efficient because they lackeconomies of scale.

Efficiency has a notable impact onemissions. A modern 600 MW ultra-supercritical power plant will produceabout 500 tonnes of CO2 per hour at fullload, while somewhere in the world,four, smaller, older 150 MW (say circa1970) plants, producing the sameamount of power, create as much as 850tonnes of CO2 per hour. When each ofthese older plants is retired there is asignificant opportunity to reduce CO2

emissions, even if the retired unit isreplaced by another coal plant.

Some would argue that no new coalplants should be built. However, thisposition belies the economic benefits ofcoal and ignores the fact that the mas-sive replacement of the world’s oldestplants would result in significant GHGreductions without the risk of imple-menting different technology.

In Canada, there are many coal-firedpower plants with heat rate efficienciesin the order of 10,200 KJ/kWh, eachproducing 0.90 tonnes of CO2 per kWh.A new coal plant, recently commis-sioned in Japan, has a comparable effi-ciency of 8,187 KJ/kWh and makes 0.72tonnes of CO2 per KWh. While theopportunities for GHG reduction aregreater in developing nations (whereplants are generally older, smaller, andless efficient), even in Canada a poten-tial 20 per cent reduction in CO2 emis-sions will result if Canada’s oldest plantsare replaced with best available new coalcombustion technology.

The good news is that almost all ofCanada’s coal-fired plants will requirereplacement on an economic basiswithin the next 30 years. This gives us atleast a modicum of ability to meet someGHG reductions without additionallytaxing our natural gas resources or reset-ting our electricity supply mix portfolio.This, in turn, translates into significantsavings in transmission and distributioninfrastructure. The age of Canada’s coal-fired fleet is skewed towards the 1970s(older, less efficient plants), so a replace-ment strategy applied to these plantswould have better than average impactwhen efficiencies are considered.

This is a powerful scenario for allconcerned. Replace existing coal-firedpower plants with new efficient ones atthe end of their economic life and saveup to 20 per cent in GHG emissionsover the next 30 years.

New supplyNew power supply is another matter.

Developed countries, especially

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Canada, have suffered from the CO2issue on two fronts. We have alwaysbeen big consumers of fossil fuels forpower generation, but in addition toour high historical consumption, our

real rate of growth in consumption ishigh. Canada’s size and climate assurethis. In essence, we have always pro-duced a lot of CO2 and our growth rateis adding to the problem year over year.Should we therefore reduce ourdependence on coal for new supply?

If we do so, we will inevitablychange our electricity supply mix,something akin to changing the invest-

ment mix in a stock portfolio. It can bedone, but in doing so, the risk profile ofthe portfolio changes. Changing thesupply mix by favouring one type ofelectricity generation process over

another can have costly and long-termimplications for the operability of anestablished power grid. Policy-makersin Ontario found this out when theydiscovered that closing centrallylocated coal plants would negativelyimpact power production from othersources in the existing interconnectedpower grid. Maintaining the supply mixmeans that the proportions of coal, nat-

ural gas, nuclear, hydro, etc. would staypretty much the same in the long term.How can this be achieved while reduc-ing the CO2 footprint of coal?

The proponents of cleaner naturalgas are quick to point out that,on an equivalent power pro-duction basis, natural gas pro-duces less than half of the

CO2 that coalproduces. Thereason for this is

that natural gas contains moreenergy than coal (each of the

natural gas carbon atoms is surroundedby four hydrogen atoms and all are com-bustible) and the processes for makingpower from natural gas are more effi-cient than the coal-fired process. If coal’sshare of the new power generation sup-ply were to be turned over to naturalgas, it would represent a significant andproblem-solving solution to the GHGreduction commitment in Canada. The

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save up to 20 per cent in GHG emissions overthe next 30 years

Replace existing coal-fired power plants with new efficientones at the end of their economic life and

fired on natural gas in the early yearswhen the gasification processes are nas-cent, but they would be converted tosynthesis gas operation at the earliestopportunity.

The benefitsOver the next 30 years, Canada can

become a leader in CO2 mitigationstrategies. The coal strategy, if imple-mented as described above, wouldresult in significant CO2 reductionswhere no current plan exists. This coalstrategy does not have to stand on itsown. When it is combined with otherimportant efforts such as conservation,the use of renewables, development ofnew hydro, refurbishment and new-build of nuclear, along with judicioususe of precious natural gas, Canada hasa real opportunity to meet the challengethat is Kyoto while maintaining its eco-nomic prosperity.

Photos courtesy of Sherritt.

CIM

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only issue with this scenario is that nat-ural gas may not be with us for the dura-tion, and even if it is, it has a tendencyto be very expensive, just at the timesthat our economy can least afford it.Instead of thinking only about convert-ing coal-fired electricity production togas we must start to think about con-verting coal to gas. Coal can be con-verted to a form of gas called synthesisgas, and this synthesis gas, can be trans-ported and, with a few plant modifica-tions, easily be used in natural gas, firedpower plants to make electricity.

The gasification process itself hasbeen known for years, but until theemergence of the CO2 issue, there hasnever been an economic reason todevelop it fully. This has changed intoday’s carbon constrained world.Major players in the global energy mar-ket, including General Electric,Siemens of Germany, and Sasol inSouth Africa, have fully developedgasification processes now available,and the interest in these processesworldwide is growing.

The coal gasification process has asecondary major advantage. Along withthe production of the synthesis gas,which is much cleaner than coal, theprocess also produces a pure stream ofCO2, which can be captured as a by-product. When the by-product CO2 issequestered in the earth and preventedfrom seeping back to the atmosphere,

1 United States Energy Information Administration, International EnergyOutlook 2007

2 World Coal Institute

we then have a solution that exploitsthe availability, abundance, and afford-ability of coal without suffering theconsequential damages of the carbonemissions. CO2 sequestration is aproven technology and is currentlybeing done with large quantities of CO2from an operating gasification plant inNorth Dakota. The CO2 is being pipedfrom North Dakota to the Weyburn oilfield in Saskatchewan, where it is notonly being stored, but also used toenhance the recovery of oil from thedepleted field.

The synthesis gas from coal behavessimilarly to natural gas, and thereforethe power production process is as effi-cient as the natural gas process. Thisfurther reduces the carbon footprint ofthe coal.

This new supply scenario would callfor the construction of integrated gasifi-cation combined cycle (IGCC) powerplants, fuelled by gasified coal, to servecoal’s share of future power generationgrowth in Canada.CO2 from theprocess would bestored in the groundinstead of beingreleased to theatmosphere. Acidgases and particu-late matter from thegasification processare negligible, andeven existing natu-ral gas power plantscan be converted toutilize synthesis gasfrom coal.

To meet immedi-ate pent-up demandfor new generation(and there is muchof this), new natu-ral gas plants couldbe built immedi-ately adjacent tocoal fields. The gasplants could be


Paintearth Mine dragline Brutus

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Going cleanNew technology makes coal greenerby H. Eve Robinson


The coal gasification processby H. Eve Robinson

The Canadian Clean Power Coalition, a group of industrysuppliers and consumers interested in finding ways to reducethe negative impacts of coal processing, suggested the use ofcoal gasification techniques. This process has the potential tomitigate environmental effects such as the emission of green-house gases, and generate by-products that are useful inother areas of the carbon industry.

Gasification breaks down coal into hydrogen (H2), a syn-thetic gas called ‘syngas,’ and carbon dioxide (CO2). Whilethe H2 can be used for bitumen upgrading, a high-purityCO2 is released during H2 production that can be capturedfor enhanced oil recovery or storage. The syngas can be usedas a fuel to replace natural gas or go through further refine-ment to produce more H2 and CO2. All three products in thegasification process have commercial applications.

The initial step involves combining dried and pulverizedcoal, oxygen, and high-pressure water or steam in a gasifier.The coal is exposed to the steam under high temperatures,

As noted in George White’s article(page 32), clean coal technologies arepointing to a strong future for thislong-time source of energy. The scienceand technology is proven, and applica-tions are being found. All indicationssuggest we’ll be seeing the develop-ment of coal projects, such as CO2sequestration and coal gasification,growing in the near future.

Paul Clark, president of RipleyCanyon Resources Ltd. and a veteran inthe coal industry with over 30 years ofexperience, said “coal is ubiquitous inthe world; it appears almost everywhereand that is why we turn to coal [as anenergy source]. There is more energy incoal in the world than there is in oil.”

Coal has played an important role indevelopment. It is a widely distributedresource, fuelling industrial develop-ment in many countries. Most devel-

oped nations have built their economieson coal. The relative availability andabundance of coal has made it a reliableresource for centuries. It is also anaffordable source of energy, costing lessthan US $2.00 per GigaJoule (GJ).These factors ensure that coal willremain a valuable resource as thedemand for energy increases.

Clean Coal Technology (CCT) pres-ents a more efficient and ‘green’ way touse coal by recycling by-products andreducing the emissions of carbon diox-ide (CO2). Several examples of cleancoal technology are oxy-fuel combus-tion, amine scrubbing (the use of aminecompounds to isolate CO2), and coalgasification. Although these methodsuse different approaches, they allachieve the same outcome, which is theproduction of energy while emitting aCO2 gas that is relatively pure and can

be easily captured for storage, therebypreventing emission to the atmosphere.The Canadian Clean Power Coalitiondetermined that oxy-fuel combustionand the use of amine scrubbers areexpensive processes that also use moreenergy. This results in a reduced effi-ciency that in turn means more coal hasto be processed in order to produce thesame amount of output. A more effec-tive option for clean coal technology iscoal gasification, which has enormouspotential, particularly in Canada.

Alberta sits above some of the largestcoal and oil reserves in the world.Maximizing the efficiency of coal pro-cessing can free up resources such asnatural gas for commercial and exportmarkets. Gasification involves heatingup a coal feedstock at high temperaturesand pressure, in the presence of water inthe form of steam. In the process, syn-

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thesis gas isp r o d u c e d ,which can beused as a natu-ral gas substi-tute. Furtherprocessing canproduce high-purity hydro-gen (H2),which hasapplications forupgrading bitu-men to syn-thetic lightcrude oil. CO2 is still produced but it isconcentrated in a way that makes it rela-tively easy to capture and store in theearth’s crust rather than allowing it to beemitted into the atmosphere. Such CO2can also be used to enhance the recoveryof oil from previously depleted oil wells.

“There is a tremendous interest ingasification and there are numerous car-bon-based materials available for gasifi-cation in Alberta,” explained White.“[One] can gasify liquids such as bitu-men or bitumen residuals, which is

“In Alberta, we not only have all theindustries that need hydrogen for feed-stock, but we have the WesternSedimentary Basin, which provides avast storage for pure CO2,” added Clark.

The technology involved in coal gasi-fication is not new. About 200 years agoin England, the gas produced by gasifi-cation was called ‘town gas’ and wasused for lighting and heating homes inLondon, resulting in a technologicalhighlight of the day. However, town gaswas relatively expensive, and was ulti-

while the pressure and oxygen levels are carefully controlled.This produces a mixture of H2, and a combination of CO2and CO (carbon monoxide) which makes up syngas. The syn-gas is then cooled using water. The waste water is eithertreated at a waste management plant, or recycled back intothe gasification process. Any particles and trace metals areremoved from the syngas before it is ready to be marketedas a substitute for natural gas, or it can be refined again toconvert H2 to CO2.

Hydrogen can be used to upgrade a heavy crude oil (bitu-men) into petroleum products such as gasoline. Carbon-richbitumen is extracted from oil sands deposits as a thick andviscous semi-solid fluid. Treating the crude oil with H2 helpsremove sulphur and nitrogen, and then upgrades it into asynthetic crude. This, in turn, can be converted into gasoline,jet fuel, and other petroleum products. Natural gas is typi-cally used to produce H2 for this process; however, recentfluctuations in the price and the relatively limited supply ofnatural gas have made the use of H2 from coal gasificationmore economic.

The CO2 produced by coal gasification is concentrated,has a high purity, and can be captured so that it is not

released into the atmosphere or transported by pipeline forfurther use. Carbon dioxide is used in enhanced oil recovery(EOR) operations where it is injected into declining oil fieldsin a process called ‘miscible displacement.’ The gas dissolvesthe oil, which reduces oil viscosity and maintains reservoirpressure. This improves the flow of oil from the reservoir andresults in increased production. One of the criticisms to thistechnique is that pumping CO2 into the ground oftenrequires the use of more energy, while EOR also frees morefossil fuels for consumption, which only leads to more CO2being emitted. However, the economic advantages of usingCO2 in EOR can compensate for the expense of injectingCO2 into the ground.

Both H2 and CO2 are marketable gases and the coal gasi-fication process produces them in relatively pure forms.While H2 can be used for many applications outside themining industry, CO2 needs to be captured and stored (see“The search for low-cost CO2 storage” article, page 40).

The final step in coal gasification is converting theremaining ash from the original coal feed into a stable andinert solid that can be used for backfilling, or as asphalt forroads. CIM

being considered by some heavy oilprocessors; [one] can gasify the petro-leum coke produced as a by-product ofbitumen synthetic crude; or [one] cangasify coal. All these feedstocks havedifferent characteristics and propertiesthat determine their ease of gasification.Coal is cheap, abundant, and availablein large quantities throughout theprovince where H2 is needed. Ourresearch and development has demon-strated that Alberta sub-bituminous coalis an ideal candidate for gasification.”

Above: Bienfait Mine dragline; right: Bienfait Mine aerial view


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mately replaced by natural gas in themid-1950s. During World War II, theGerman government used a gasificationprocess called ‘Fischer-Tropsch’ to turncoal into gasoline and diesel fuel. SouthAfrica began using coal gasificationmethods during colonial development,as the country is rich in coal but limited

in petroleum resources. The embargo onshipping to South Africa duringApartheid solidified the use of coal gasi-fication as there was no other alternativefuel source. It has been very successful(South Africa produces 160,000 bbl ofoil per day from coal) and is still heavilyrelied upon to this day.

The conventional processes of gener-ating electricity from coal are now muchmore efficient than they were last cen-tury. High demand, increasing energyprices, and environmental concernshave driven the development of newtechnological methods that make everynew coal plant more efficient than theprevious ones. The development of coalgasification technology represents a stepchange in this advancement andbecause of greenhouse gas issues, hasreceived renewed interest in the pasttwo decades. Gasification is the onlycurrent technology that will have theability to significantly reduce theamount of greenhouse gases releasedinto the atmosphere from fossil fuels.Reduction of greenhouse gases is thekey motivator in seeking clean coaltechnologies. “The emphasis is onreduction of emissions of CO2 into the

atmosphere,” agreed Clark. “[Cleancoal] processes and technology all havethe ability to capture and store CO2.”

Another factor supporting coal gasifi-cation has been the fluctuating prices ofoil and gas. Recent increases in petro-leum prices make gasification projectseconomically viable. Coal is relatively

cheap and is a local resource so that theprice of feedstock can be better con-trolled. Coal’s abundance and availabil-ity means that feedstock prices can beset out in very long-term contracts,thereby reducing the price volatility ofthe gasification products. Lower carbonproducts, including hydrogen, synthesisgas, methanol, or even ultra-clean dieselfuel, which also lowers CO2 emissions,are a consequence.

Coal gasification can also play animportant role in bitumen upgradingand enhanced oil recovery. Bitumen isa heavy oil that needs to be upgradedbefore it is refined. The first upgrad-ing process is to add hydrogen to turnit into synthetic crude, which canthen be refined into gasoline andother petroleum products. Natural gashas traditionally been used as thefeedstock for the production of hydro-gen in this process. But natural gas isin relatively limited supply and is sub-ject to price fluctuations. Substitutinga H2 source produced by coal gasifica-tion would free bitumen upgradingfrom swings in natural gas prices aswell as opening up the reserves forother markets.

“It is a highly capital-intensive tech-nology but is more attractive when [tak-ing into consideration] the value itbrings to bitumen upgrading,” saidWhite. “There is much demand toreplace natural gas as a source of pri-mary energy for bitumen productionand upgrading. Oil sands projects are

based on long-timescales, and yet thereis no certainty in nat-ural gas availabilityor cost 20 years fromnow. Coal is a cheapand abundant feed-stock, there is avail-able technology thatis being improved,and we have a desireto reduce the carbonfootprint throughcapture and seques-tration.” These fac-tors combined canjustify some of the

capital costs associated with starting acoal gasification plant.

Clark noted “the biggest roadblocknow is the capital cost of building thesegasification facilities. People struggle tofind ways to lower the capital costs,such as ways to improve technology andhave higher efficiency. If natural gas andoil prices start to become volatile again,there would be a lot more activity [incoal gasification projects], but so long asthe prices are relatively stable, it is goingto be difficult to make these kinds ofprojects economic.”

Another advantage for gasification isenhanced oil recovery (EOR). Duringthe gasification process, CO2 formedby H2 production is in a pure form,suitable for capture and sequestration.CO2 is captured and injected intodeclining oil fields, which improves theflow rate of oil. The increase in produc-tion from an oil field can be enough tooffset the price of carbon capturebecause, in this process, CO2 has avalue. Transport of the gas to an oilfield can be difficult, but is not neces-sarily applicable in Alberta because ofthe high density of carbon resources. Inother words, sequestration opportuni-


Above: Transporting coal; right: Paintearth Bigfoot dragline

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ties exist very close to CO2sources. For example, thenewly proposed coal gasifica-tion plant outside ofEdmonton by SherrittInternational Corp. (Dodds-Roundhill Coal GasificationProject) is close enough to oilfields to enable CO2 trans-portation through a pipeline.

White explained “therehas always been a desire inAlberta to have an integratedresource development planwhere all of the various com-ponents of the energy busi-ness (coal, bitumen, oil andgas, along with other factorssuch as technology, infra-structure, people, andprocesses) all come togetherto promote optimization ofthe resources.”

In a public disclosure doc-ument, senior vice presidentof Sherritt InternationalCorporation, Barry Hatt,stated, “The Dodds-Roundhill gasification projectrepresents a key step towardsAlberta’s future as a globalcentre of excellence in inno-vative ‘clean coal technology.’Such technology can lead to acritical mass of jobs and intel-lectual capital with tremen-dous export potential. Thisnew technology will help pre-serve natural gas resourcesfor higher value uses andunlock the full energy poten-tial of coal.” CIM

The search for low-cost CO2 storageby H. Eve Robinson

It is impossible to mention clean coal technology without discussing the challenges of car-bon capture and sequestration (CCS). While the development of new technologies in coal pro-cessing address how to reduce emissions and make the best use of by-products, CCS dealswith long-term storage of carbon dioxide. Carbon dioxide (CO2) is a greenhouse gas associ-ated with the increase in global temperatures. In an attempt to reduce the negative effectsof fossil fuel burning, CO2 produced by this process can be stored to prevent emissions tothe atmosphere. Coal gasification is one method of producing high-purity CO2 that can beused for applications such as enhanced oil recovery.

One of the ways to manage captured CO2 is storing it in geological formations. These mayinclude oil fields, coal seams, or saline formations. Redistributing CO2 in soil beneath the sur-face traps the gas and prevents it from escaping to the atmosphere. Enhanced oil recovery isan example of this method being used by projects such as the International Energy Agency’sWeyburn project in Saskatchewan. Carbon dioxide is injected into depleted oil fields in orderto improve the flow of oil, which can then be extracted. Because this method enhances oilfield production, it can offset the cost of injecting CO2. Similarly, CO2 can be stored inunminable coal seams where the gas releases methane, which can be recovered and used ascompensation for the cost of CO2 storage. Other methods of geo-sequestration include stor-age in saline formations; however, there are no economically viable by-products to offset thecosts associated with carbon sequestration.

Geo-sequestration has a great deal of potential for Alberta. The Western SedimentaryBasin can provide storage for CO2 in large quantities. Paul Clark, president of Ripley CanyonResources Ltd. and a proponent of clean coal technology, said “Alberta has unlimited storageor sequestration in aquifers.” He also noted “carbon capture and sequestration is not cheap.Examples like the Weyburn project put a value on CO2 by using it in enhanced oil recovery.”

Using old oil fields for carbon storage can present problems such as leakage. This meansthat all entrances and pipes leading from the surface to the oil field must be entirely sealed.For storage sites that are selected and managed well, CO2 can be retained for hundreds ofyears.

Another alternative for CO2 storage is deep in the oceans. Water at these depths can cir-culate for hundreds of years before reaching the surface. However, little is known about theeffects that this would have on marine life. Also, CO2 reacts with seawater and could increasethe acidity of the oceans, which would affect organisms that have calcium bicarbonate struc-tures, such as snails, clams, and corals.

There are several different options for carbon storage that are currently being explored.The challenges any effective measure will have to overcome are primarily the cost of CSS andthe potential long-term effects to the environment. CIM

macfactsThe oil and gas industry paid over

$26 billion to Canadian governments

in 2006 in the form of royalties,

lease bids, income taxes,

and other payments.

In 2005, more than 1,300 aboriginal people were

directly employed by oil sands developers

and contractors—a 60 per cent

increase since 1998.

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Suncor’s planned Voyageur Southexpansion, once it gets the go-ahead,targets 120,000 barrels of bitumen perday at a preliminary capital cost esti-mate of $4.4 billion. The companyfiled for regulatory approval this sum-mer, with aims to begin site prepara-tion and construction activities in2009 to 2010, with commissioningand startup planned between 2011and 2013.

“We believe the project has firmbenefits for Suncor and for theregional, Alberta, and Canadianeconomies,” said Rick George, presi-dent and CEO. “As we work to man-age the impacts of industrial devel-opment, we’re also working to miti-gate environmental and socialimpacts of the project through newtechnologies.”

Of several new technologies pro-posed for the project, the most sig-nificant change planned is the use ofmobile ore preparation equipmentinstead of a truck-and-shovel miningsystem, which should reduce noisepollution and air emissions, in par-ticular, nitrogen oxides. Thisapproach should require a smallerworkforce and will help Suncor tobetter manage the costs of oil sandsmining, from road maintenance tofuel expenditures.

The bitumen produced at the pro-posed project will join the bitumenfeed from other Suncor mining andin-situ operations and third-partysupply to provide feedstock flexibil-ity for the company’s upgradingfacilities, which have a plannedcapacity to produce 500,000 to550,000 barrels of crude oil per dayby 2010 to 2012. As well, thisincrease in bitumen supply will helpform the foundation for potentialfuture increases in crude oil produc-tion beyond 2012.

At its peak, the expected con-struction workforce will be approxi-

Looking forward to Voyageur South expansionby Heather Ednie

mately 1,800 contractors, to behoused in Suncor camps. The

planned operational workforce isapproximately 650. CIM


YOU’RE PROUD OF YOUR SKILLS AND KNOW-HOW. You want to work where you can be proud of your employer too. At Suncor Energy, we aim to earn your respect by providing you with the tools and support that enable you to do quality work.

When you join Suncor, you enter a working environment where how you get the job done is as important as the goals you achieve. You’ll be part of a company that’s guided by strong values and beliefs; that demands a high standard for safety, integrity, responsibility and always strives to exceed expectations – real reasons to take pride in saying, “I work for Suncor.”

Put yourself in our picture by applying at

www.suncor.com/careers

Ready to be proud of your workplace?

Put yourself in our picture.

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What’s green, covers 2.75 millionhectares of the province of Alberta, and isrecognized by only 30 per cent of the sur-rounding population? It’s the FoothillsModel Forest of course! In 1992, throughthe Canadian Forest Service, NaturalResources Canada initiated Canada’sModel Forest Program in an effort toestablish our country as a leader in thearea of sustainable forest management.The Canadian Model Forest Networkaims at successfully building partnershipsand continuously coming up with newideas and tools to advance sustainableland management. The Foothills ModelForest land base includes the whole ofJasper National Park, West Fraser MillsLtd., Hinton Wood Product’s working for-est, Willmore Wilderness Park, WilliamA. Switzer Provincial Park, and otherpublic areas.

The research partnershipIt all began when Natural Resources

Canada was looking to fund projectsfrom one end of the country to the other.They initially started with 10 modelforests. After reviewing all 54 of the sub-mitted proposals (many of which werefrom Alberta), they finally decided uponone that best met their required criteria.Hence, the Foothills Model Forest wasadded as number 11 on the list. Most ofthe models are self-sustainable by now,but some never will be. Foothills is notone of them. General Manager DonPodlubny said step one in setting up wasto write up the proposal and get partnersto buy in. The proposal required match-ing dollars, which luckily they were ableto do, after which they brought in thepartnership. The Foothills Model Forestwas then established as a private, non-profit company. From there, the com-pany established a board of directors andthey started looking at what could bedone to reach their main objective ofsustainable land management.

Foothills Model ForestResearch for a sustainable tomorrowby Carolyn Hersey

The partnership is broad; itincludes both the federal and provin-cial governments of Alberta, forest andoil and gas industries, even the coalmining industry.

Now in its sixteenth year, Foothillswas self-sustainable within its first 60months of life. Since 1992, over $40

million has been invested in researchto better our understanding of the eco-logical, economic, and social values ofthe landscape. Yet despite being inexistence for over 15 years, only about30 per cent of the surrounding popula-tion is even aware of the presence ofthis model forest. This is most likely

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Foothills was self-sustainable

within its first 60 months

of life.

due to the fact that Foothills is aresearch firm—non-profit, not salesfocused, and with no major advertis-ing campaign.

Podlubny stated that anyone whowants to access information on themodel forest can easily do so. Theyhave a website that is updated on acontinual basis, they hold presenta-tions to the general public, and alsorun articles in local newspapers. Healso noted that “even though we havea defined area to do our research in,the research has gone well beyondthose boundaries, extending all theway down to the U.S. border nearMontana, and even into BritishColumbia. Yes, the research is beingdone in Alberta, but the informationgathered can be and is being appliedthroughout Canada, throughout all ofNorth America.”

The Foothills Model Forest also hasa program called the ‘AboriginalInvolvement’ program, enabling con-sultation negotiations with industryand governments. It started over fiveyears ago and there are presentlyagreements with five different aborigi-nal communities, both inside and out-side the model forest land base. Themodel forest says that they are takingeverything they’ve learned thus far andshowing a wide range of stakeholdershow these lessons can be applied inthe forest.

Wildlife and wildfire: a balanceBut what about wildlife? How is it

affected by all this research and what’sbeing done to protect the animals?Where does everyone stand when itcomes to natural disasters, such aswildfire, which are vital to a forests’survival and re-growth?

Since the early 1930s, wildfires havebeen strictly and aggressively sup-pressed, over time, creating a forestwhich is unnaturally too-even aged.Wildfires create an assortment ofyoung, mature, and old forests, each ofwhich serves its own purpose in pro-viding a habitat for a diversity of plantsand animals. So, if this natural occur-rence is disrupted, things just don’t

function as theplanet intended themto. With all this sup-pression since the ‘30s,unnaturally old forestshave been on the rise.Based on research, in 1930old forests (100 years andolder) covered about 20 percent of the Foothills Model Forestland base. In 2000, they covered atleast 60 per cent of West Fraser MillsLtd.’s forest management area and 77per cent of Jasper National Park. In aneffort to restore stability, AlbertaSustainable Resource Development,Jasper National Park, and West FraserMills Ltd. are working to restore theforests they manage to the range of ageclasses that would naturally occur.

Podlubny said that although theprovincial government, along withJasper National Park, make most of themanagement decisions when it comesto wildfire suppression in the FoothillsModel Forest area,they’ve doneresearch of theirown. After estab-lishing a programcalled ‘NaturalDisturbance,’ theyhave accumulateddata covering thelast 200 years offire and distur-bance events. Fromthat, the programhas models thatemulate naturaldisturbances on thel and s c ap e—theprogram has beenquite successful.

Companies arebeginning tochange their har-vesting regimes tomimic fire pat-terns as closely aspossible; insteadof clear cuttingwith squareboundaries, thenatural pattern is

mimicked by leaving small islands ofvegetation and individual trees stand-ing. These strategies will help main-tain biodiversity while at the sametime protecting people, communities,and natural resources from cata-strophic wildfire.

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As far as wildlife goes, it hasn’treally been directly affected by theresearch. In 1999, no one was entirelysure how much or how little animalswere being influenced by human

activities. The Foothills Model ForestGrizzly Bear Research Program wasstarted and is now one of NorthAmerica’s most comprehensivewildlife studies. In the past eight

years, research has shown that it isnot so much the resource activitiesthat have had much of an effect, butmore the individual human interac-tions. The area is still used publiclyfor activities such as hiking, fishing,or camping, but even this doesn’tseem to be the problem. Things likeillegal hunting and poaching are whatseem to be taking a toll on the griz-zlies. In 2002, a research grizzly andone of her two cubs were victims of apoaching incident. A total of sevenbears have been found shot and twohave been killed by vehicle accidents.Studies show that one of the greatestthreats to the animals is fatalitiesalong roads caused by humans. TheFoothills Model Forest and its part-ners are now starting to use maps andcomputer models to better positionand utilize roads, so as to minimizeinteraction and diminish the threat totheir survival.


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Movin’ on upBringing 50 years’ experience to Pure Nickel isConstantine Salamis, who joined the company’s board ofdirectors this past August.

Appointed to develop and manage Barrick Gold’s explo-ration programs in Canada and Alaska is Glenn Asch. Hehas been with the company since 2003, most recently asdistrict geologist at the Cortez Mine.

William Caughill was appointed director, accounting, atWestern Canadian Coal. He will be responsible for inter-nal controls and procedures, in addition to managementaccounting functions.

With over 30 years’ field experience under his belt, pro-fessional geologist Rodney Thomas was appointed direc-tor of Young-Shannon Gold Mines.

Jacques Perron was appointed president and CEO of St.Andrew Goldfields, a position he takes on this October.

Not stopping nowThe Canadian Model Forest Program, through Natural

Resources Canada, was completed at the end of March 2007,but Podlubny said “we’ll still be around,” as will the CanadianModel Forest Network. So, what does the future hold for theFoothills Model Forest? They’ve already secured financial com-mitment from their partners, Alberta Sustainable ResourceDevelopment, Jasper National Park, and West Fraser Mills Ltd.,plus five energy companies (Petro-Canada, Encana,ConocoPhillips, CNRL, and Talisman) to continue for anotherfive years, from April 1, 2007, to March 31, 2012.

The Model Forest does plan to regroup all of its activitiesinto the following program themes: landscape dynamics;wildlife; water; forest communities program; and data, informa-tion, and knowledge management. Podlubny said “the organi-zation will build upon its goals of sustainable land manage-ment, knowledge, and technology transfer, communicationsand outreach, and policy support influence.”

Hundreds of partners across the country are doing their bestto uphold healthy, thriving communities, economies, and landsboth for this generation and for those to come. The purpose ofthe Foothills Model Forest is not to preserve the landscape, butto find ways to continue utilizing the land, while at the sametime keeping it sustainable. Animals and humans alike, I’m surewe can all live harmoniously. CIM

The Kearl Oil Sands Project ispoised to be one of the next mammothconstruction projects to charge downthe road to production. In February,the project received conditionalapproval from the Alberta Energy andUtilities Board, following a joint federaland provincial review.

“This decision is a significant mile-stone for our project and our com-pany,” said Randy Broiles, senior vicepresident of resources, Imperial Oil—the designated operator of the proj-ect. “Our next steps involve review-ing the decision and the attached con-ditions, and further advancing engi-neering work to define the projectdesign, execution strategies, and proj-ect cost estimate.”

Kearl gearing up to be a producerby Heather Ednie

The potential mine project, owned byImperial Oil Resources Ventures Limited(70 per cent) and ExxonMobil CanadaProperties (30 per cent), could start ini-tial mine production as early as 2010.

Imperial is the only original ownerof Syncrude still involved in the Kearlproject and, as a result, has a long his-tory of oil sands operation and of con-tributing to the Fort McMurray com-munity and Wood Buffalo region.

Project detailsThe open-pit mining operation will

have an expected eventual production,based on a phased development plan, ofapproximately 300,000 barrels per day.The initial mine development will havea design capacity of 100,000 barrels per

day, with two more phases planned tobe in production by 2020. The totalrecoverable bitumen before royalties isestimated at 4.6 billion barrels.

True to the oil sands tradition, theinitial cost estimate for construction ofKearl is nothing to sneeze at—$5 to $8billion, in 2005 dollars. Work is ongo-ing to revise this preliminary cost esti-mate, and to fully understand theimpact of the high industry and con-struction activity in the province, andspecifically, in the region.

The design concept for Kearl is similarto today’s existing oil sands mines in theFort McMurray region, using state-of-the-art large-scale shovels, trucks, crushers,and a hydrotransport system. There areno current plans for onsite upgrading

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facilities. Under the staged approach tomine development, the initial step (thefirst train) will involve clearing and drain-ing the surface area and removing themuskeg overburden and stockpiling it foruse in future reclamation.

Conventional tailings treatment tech-nology will be used until tailings can bestored in a depleted mine pit, at whichtime consolidated tailings technologywill be implemented. Other infrastruc-ture development planned for the proj-ect includes a water intake and waterpipeline, to bring water from theAthabasca River, as well as water stor-age, an operations camp, and roads.

The Kearl site is located within a90-minute drive from Fort McMurray,leading to the decision to develop it asa camp-based operation with a work-force on a rotating schedule. Currently,Imperial is working with other oilsands operators in the region on ajoint industry airstrip that would belocated just south of the Kearl leases.

Like any major project, the Kearloperation will create many jobs. At theconstruction peak, an estimated 1,700people will be onsite, and once theoperation is in full production withthree trains, approximately 1,100 to1,300 permanent jobs will be created.

Investing in innovationPositioned as a leading company in

the oil sands industry, last winterImperial announced the creation ofthe Imperial Oil-Alberta IngenuityCentre for Oil Sands Innovation

research centre at the University ofAlberta. Of note, the centre is man-dated to find more efficient, economi-cally viable, and environmentallyresponsible ways to develop Canada’soil sands resources. Expectations are toinvest over $15 million in researchover the next five years and recruitmore than 50 faculty, graduate stu-dents, and researchers.

One focus area of the centre will bethe evaluation of the use of non-aque-ous solvents to separate and extractbitumen from oil sands, thereby reduc-ing the water usage onsite. Anotherproject will involve the use of nano-structured materials to both reduceenergy requirements and improveoperating efficiencies in bitumenupgrading. CIM


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Above: Community consultation is an important part of the Kearl project; right: aerialview of a portion of the Kearl lease

September/October 2007 49September/October 2007 49

That much growth in one place, however, is not without itschallenges. With 35 major companies already active and invest-ing in Alberta’s three oil sands regions, and $150 billion worth ofnew projects (both planned and under construction), the short-ages being felt by mining companies worldwide are particularlyacute here. The first and foremost of these, according to com-munications and research specialist of the Alberta Chamber ofResources (ACR) Lloyd Dick, is the growing demand for qualifiedconstruction workers.

An industrial construction project workforce graph, availableon the Construction Owners’ Association of Alberta (COAA)website, lists 53 projects expected to be under construction by2011. Virtually all of the projects are related to oil productionand will, at the peak of demand (predicted to be around the firstquarter of 2009), require 34,000 workers. To put things in per-spective, Dick said that “right now, the graph puts the demandat around 18,000 workers, which is pretty accurate, and that’sbarely able to fill that.”

Tindustry overview

Oil sandsShovel tread close-up. Images courtesy of Syncrude Canada Ltd.

he oil sands sector in Alberta is a booming, growing business,with expectations of continued long-term growth. Alreadyaccounting for over half (58 per cent) of oil production in theprovince back in 2005, the oil sands are predicted to accountfor as much as 80 per cent of that total by 2020. A presenta-tion by Natural Resources Canada states that between 2005and 2020, oil sands production is expected to quadruple.

by DAN ZLOTNIKOV

If all the projects listed on the graph reach the productionstage, and do so on time, the demand will almost double intwo years.

Brad Anderson, ACR’s executive director, added that “thegraph is just the tip of the iceberg. It only lists the mega-proj-ects, those worth over $100 million. That doesn’t include hospi-tal or road construction, since they’re usually less than that.”With such a sharp spike in the near future, it is hard to disagreewith Dick’s prediction that “labour costs are going to go up.”

With the anticipated cost increase, as well as recent eventson the political front, it is no surprise that Anderson is concernedfor the well- being of the industry.

“Oil sands oil is the hardest and mostexpensive to get out of the ground, and alwayswill be,” he said. “Once it is out of the ground,this oil is the hardest and most expensive to doanything with, and always will be.” This is nosurprise to the companies working the oilsands today, who know that there will be aneed for greater, longer term investment inthese projects. It takes, as Anderson put it,“sticktuitiveness.”

Anderson pointed out that the success theoil sands industry is seeing today is not luck, assome have suggested to him. “It’s pure sweatequity” that got the oil sands to their currentstage. Anderson’s experience includes workingwith AOSTRA (Alberta’s Oil Sands Technologyand Research Authority), the organization

formed by then-premier Peter Lougheed.“He said,” Anderson recounted of Lougheed, “‘go and figure

out how to produce and upgrade the oil sands from each of thedeposits in Alberta.’ At the time, AOSTRA was the largest focusedresearch project in the country.”

At its peak, AOSTRA’s research budget was $100 million withthe amount matched from the industry side, despite the projectbeing considered high risk and a long shot. The results of that,said Anderson, are the oil sands of today. AOSTRA’s successesinclude the Underground Test Facility, where Anderson said theSAGD technology was first developed and tested. Despite a his-tory of working with the industry and most commonly on

industry-initiated projects, AOSTRA did notget much initial support for its SAGDresearch. Only towards the end of the proj-ect, when the positive results were produced,did the industry express an interest.

Anderson contrasted the situation withthe U.S. oil shale development attempts,where the government support wasn’t as sig-nificant. “Arguably, the shale is harder todevelop than the sands,” he said, “and theygave up. We didn’t. And now the oil sands aremore than half of the province’s oil produc-tion, and that will continue to grow.”

The dedication and the vision were therenot just on the part of the government, butalso within the industry. “Initially, therewere a few very brave companies,” saidAnderson. “Sun Oil, the precursor of Suncor,was there. Mr. Pew, the president of Sun Oil,had a vision of what the oil sands couldbecome, so he took on what was considereda very high-risk project. Syncrude, ImperialOil, and Canada Oil Sands all came alongsoon after.” These companies are todayreaping the significant benefits of beingthere and growing their projects as thetechnology developed.


Fort Hills. Photo courtesy of Petro-Canada

One of the major turning points in Alberta’soil sands industry, continued Anderson, was theNational Oil Sands Taskforce. Organized by ACR,this taskforce brought together the oil sandsindustry, and both the provincial and the feder-al governments, in an attempt to create a com-mon vision for the oil sands.

“The results of the taskforce speak for them-selves,” said Anderson, who attributes most oftoday’s oil sands activity to that vision. Thetaskforce’s report was released in 1996, aftermore than a decade of work. “We had literallyhundreds of people from ACR working on this,”said Anderson, “especially in the last three years.Alberta’s government accepted ACR’s recom-mendations and created the generic oil sands royalty policy,which created a very stable and predictable royalty regime. Theyrecognized the very high cost of doing an oil sands project. Theroyalty was set at 1 per cent of gross until the project paid out,and then it went to 25 per cent of net profits.”

On the federal side, the result of the taskforce’s work was theaccelerated capital cost allowance (ACCA). To put it very simply,the ACCA allowed oil sands projects to subtract the project costsfrom revenue and only pay income tax on the difference.Introduced in 1996, this incentive was repealed on March 19 ofthis year, with the change due to take effect in 2010. The impact,Anderson said, will amount to $300 million, which the oil sandsindustry will now have to carry.

“Canada used to offer stability,” he said. The stability of theregulatory and political climates balanced out the high riskinherent in an oil sands project. “But now you have high cost

combined with high risk.” Anderson fears that the combinationof tightening environmental restrictions, rising project costs, andthe withdrawal of ACCA incentives will combine to depressfuture growth of the sector.

But why, if the costs are so high and the business is still arisky proposition today, do companies continue to sink moneyinto all three of Alberta’s oil sands regions? “The size of theprize,” Anderson replied. “Shell’s Albian Sands project has enoughreserves to continue to produce for the next 50 years.”

Today, Alberta’s Department of Energy lists proven oilreserves at 176 billion barrels, with the total recoverablereserves at almost twice that, at 335 billion barrels. On top ofthat, said Dick, there are a lot of resources currently listed as“non-recoverable.” However, he added, “with recent improve-ments in mining technology, a lot have moved from non-recoverable to being listed as recoverable.” Dick expects the

trend to continue.Anderson agrees that

with such a wealth ofresources, even when allhis concerns are takeninto account, the long-term outlook seems verypromising.

In the end, Andersonsaid, there isn’t much theproducers can do about theregulatory shift. The taxburden “will be what it willbe,” and the companies willdeal with it as best theycan. And the first thingthey can do is try to cutproduction costs.

Anderson named someprojects that are doing justthat, mainly through tech-nological improvementsand innovation. “Suncor, forexample, started miningwith a machine to go rightat the face of the mine.”



Oil sands coker towers. Photo courtesy of Suncor Energy Inc.

Before this, the operation used the common truck-and-shovelapproach.

Another project of note is the Nexen/OPTI partnership,which combines a SAGD operation with an on-site upgrader.“We wanted to get away from having to burn expensive nat-ural gas to create steam,” said Sean Noe, an analyst atNexen. In a SAGD operation, a pair of horizontal wells aredrilled into the deposit, and then steam is run into theupper—or injector—well. The heated bitumen flows downinto the “producer” well, from which it is extracted to thesurface. The most commonly used fuel in the evaporation ofthe water is natural gas.

“What OPTI brought to the table,” said Noe, “what made theprocess unique at a high level, is that we will be utilizing theentire barrel of bitumen.”

After the barrel goes into the distillation column, the outputsare a medium crude off the top and an “asphaltene” off the bot-tom. The asphaltene is placed into a solvent deasphaltor and isthermally cracked. The product is then fed back into the distilla-tion column and the process is repeated until all of the bitumenis converted to sour crude oil. The sour crude is fed into a hydro-cracker, where hydrogen is added to the crude, to produce anapproximately 38° API sweet synthetic crude.

The interesting part is where the hydrogen comes from. “Ifwe follow the liquid asphaltene stream, and the key word hereis ‘liquid,’” said Noe, “we send that to a gasification unit. Liquid

asphaltene goes in, and you add a little bit of heat, and you adda little bit of steam. The by-product coming out of the gasifier ishydrogen and a synthetic fuel.” The heating content of that syn-thetic fuel is low, only a third natural gas, but that is sufficient toevaporate the water and generate the steam used in the injec-tor well.

“We’re not completely self-sufficient,” said Noe, “but we areclose.” The steam-to-oil ratio Nexen’s technique achieves isroughly 3.3, a significant improvement on previously used tech-nology.

“We would require a little bit of natural gas, but nowherenear the amount someone would use without gasifying,”explained Noe. “We would buy 0.4 MCF (thousand cubic feet) ofnatural gas per barrel produced, whereas someone without agasifier would use 2 to 2.4 MCF.”

The total savings, according to Noe, will amount to roughly$10 per bbl once peak production is achieved. Already impres-sive, the number is even more so when one considers that thetotal recoverable reserve at the Long Lake site is 5.5 billion bar-rels, and that similar projects not using this technology are pay-ing $22 to $24 per bbl to Nexen’s $12 to $14. These savings area combination of not using natural gas and using a hydrocrack-er instead of a coker.

“The output of a coker is petroleum coke, a solid, and thatgets land filled,” said Noe. “Whereas we’re taking it in a liquidform and gasifying it. People are looking at possibilities of gasi-

achievement for what is projected to be a $30 billion project. At the end of this year’ssecond quarter, the first phase of the project has completed 75 per cent of the work,and is projected to hit the 88 per cent point by the end of the third quarter.

This phase, slated to begin operations in 2008, is expected to have a peak of110,000 barrels per day. Future expansions are projected to increase that to asmuch as 500,000 barrels per day. Current internal estimates of six to eight bil-

lion barrels of recoverable reserves serve toensure Canadian Natural with a long-term supplyof crude oil.

KEARL OIL SANDS PROJECT A 70/30 joint proj-ect between Imperial Oil and Exxon Mobil Canada, respectively, the Kearl OilSands Project will be a combined surface mining, pipeline, and upgrader devel-opment, with anticipated maximum production of 345 thousand barrels perday. Imperial Oil, who will be the project operator, submitted the mine applica-tions and environmental impact assessments to Alberta’s EUB in July of 2005,and received conditional approval in February of this year. Mine developmentis planned to begin in early 2010, with additional development phases slatedfor 2012 and 2018. The current cost estimates for the project are set at $5 to8 billion, with estimated labour requirements of 1,700 workers at the peak ofconstruction. (see page 46)

NORTHERN LIGHTS Synenco’s Northern Lights Project consists of an oil sandsmining and bitumen extraction project north of Fort McMurray. Pending the out-come of an options review begun May 1, 2007, an upgrading facility nearEdmonton may be included. When fully completed, Northern Lights will produce100,000 barrels per day of light, sweet synthetic crude oil for 30 years. InDecember 2006, a capital cost estimate for the mining and extraction project wasestimated at $5.6 billion if built in the ‘traditional’ industry manner. If an overseasmodularized construction strategy is used, the project is estimated at $4.4 billion.

SUNCOR Suncor has been in the oil sands mining business for a very long timeindeed. Suncor’s original operation, started in 1967, was the world’s first commer-cially successful oil sands project. In 2006, Suncor announced the achievement ofa milestone – the production of their four billionth barrel of oil.

Numerous oil sands projects are in production and/or construction.Listed below are a number of them.This list excludes SAGD projects.


Oil sands project pipelineALBIAN SANDS Albian Sands Energy, Inc. was created through a joint venturebetween Shell Canada Ltd., Chevron Canada Ltd., and Western Oil Sands, Inc.Albian Sands operates the truck-and-shovel Muskeg River Mine. The 155,000barrels per day the mine produces are sent to the Scotford upgrader down atFt. Saskatchewan. The mine and upgrader together comprise the Athabasca OilSands Project. The first barrel of bitumen was produced by the mine onDecember 29, 2002. Today, an expansion project is underway to increase min-ing capacity by 100,000 barrels per day, and Shell has applied for approval toconstruct a second Scotford upgrader. Albian Sands is also making use of satel-lite imagery data to assist with future reclamation and to provide unbiasedenvironmental information to the project stakeholders.

FORT HILLS In March 2005, Petro-Canada added the Fort Hills integrated miningand upgrading project to its list of oil sands assets. Through a limited partnershipagreement, Petro-Canada will operate and lead development of Fort Hills with a55 per cent interest. Other partners include UTS Energy Corporation (30 per cent)and Teck Cominco (15 per cent). Fort Hills leases contain more than four billionbarrels of recoverable bitumen resource. Approval from the Alberta Energy andUtilities Board to develop a project of that scale is in place. Associated syntheticcrude oil production is estimated at 140,000 barrels per day.

HORIZON PROJECT Canadian Natural’s surface mining Horizon Project, begun in2005, is slated for commissioning in the third quarter of 2008. Construction andoverburden removal have remained on schedule and within budget: something of an

fying a solid, but that has not reached com-mercial production yet.”

The technology has already gained theNexen/OPTI partnership a 15 per cent gainin efficiency, and the advantages are obvi-ous in the cost savings. As the Long Lakeoperation moves towards its second phase,Noe says the plan is to continue tweakingthe process.

With technology having such profoundimpact on oil sands production, Andersonemphasized the importance of the resourcenot just to Alberta’s economy, but toCanada as a whole.

“We’re producing over 1 million barrelsper day right now, and the prediction is to be producing 5 mil-lion by 2020.” Improvements in extraction techniques, as well ascarbon sequestration technologies, will play a major role as timegoes by. Today, Natural Resources Canada predicts that despitethat the amount of greenhouse gases emitted per barrel willcontinue to drop, the overall amount originating with the oilsands industry will rise, due to the continued production growth.Today, Dick said, the Alberta government has a partial solutionin place, under which producers who cannot stay below the CO2emissions restriction must pay into a technology fund used tofund CO2 reduction technologies.

Technology is also why Anderson is convinced that the long-term prognosis for the industry is excellent. “Right underneaththe Ft. McMurray/Athabasca oil sands deposit is the Grosmontcarbonate deposit,” he said. “There is as much oil in the carbon-ate as there is in the oil sands being mined directly above it.That’s the next target.”

There is no technology today that can economically extractoil from the carbonate, but 30 years ago, there was no technol-ogy to economically mine the oil sands either. With proper sup-port and the right vision, said Anderson, that technology will befound. CIM

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Suncor operates the Steepbank and Millennium surface mines and theFirebag in-situ SAGD project. The combined production of the sites in2006 was averaging 260 thousand barrels per day. Today, the majority ofSuncor’s production comes from the surface mines, but the in-situ oper-ation is expected to continue to increase in significance, accounting for asmuch as 30 per cent of all of Suncor’s production by 2012. The in-situreserves also account for the greater proportion of the total; of the 15 bil-lion barrels Suncor has on record today, 9 billion are located in in-situdeposits.

Suncor is continuing aggressive growth in the oil sands sector. Of the $5.3billion slated for capital spending for 2007, $4.4 billion is dedicated to theoil sands operations. Suncor received regulatory approval from the EUB forthe Voyageur project, focused on construction of a third upgrader at thesite. The increase in processing capacity is expected to allow Suncor toreach production levels of 350 thousand barrels per day.

Also planned is a coke gasification plant, intended to supplement the opera-tion’s energy and steam supply and lower the demand for expensive natural gas.

SYNCRUDE CANADA Syncrude Canada is the operator of the largestcrude oil production facility in the world. Syncrude’s operation is a jointventure between a group of seven companies: Canadian Oil Sands Ltd.(36.74 per cent), Imperial Oil Resources (25 per cent), Petro-Canada Oiland Gas (12 per cent), Conoco Phillips Oilsands Partnership II (9.03 percent), Nexen Oil Sands Partnership (7.23 per cent), Mocal Energy Ltd. (5per cent), and Murphy Oil Company Ltd. (5 per cent). Syncrude operatestwo sites owned by the partnership, both in northern Alberta. The MildredLake mine site has been in mining the Base Mine since 1978, with theNorth Mine at the site beginning operation in 1997. The Aurora Projectbegan operations on its North Mine in 2000. All three mine projects aresurface, truck-and-shovel operations, following last year’s retiring of thefinal dragline and bucketwheel reclaimer system at the Base Mine. Thereare also plans to expand the upgrader capacity (currently at 230,000 bar-rels a day) to as much as 500,000 barrels per day by 2015.


Fort Hills. Photo courtesy of Petro-Canada


Toute cette croissance en un seul endroit représente desdéfis. Trente-cinq grandes compagnies déjà actives investissentdans les régions productrices de l’Alberta; des nouveaux pro-jets d’une valeur de 150 milliards de dollars sont au stage deplanification ou de construction. Les diverses pénuries ressen-ties par les compagnies minières à travers le monde sont par-ticulièrement sévères ici, notamment, selon Lloyd Dick, de laChambre des Ressources de l’Alberta (ACR), la demande pourdes ouvriers qualifiés

Un graphique de la Construction Owners’ Association ofAlberta, représentant la main-d’œuvre travaillant sur les pro-jets de construction industrielle, liste 53 projets qui devraientdémarrer d’ici 2011. La demande en main-d’œuvre, soit34 000 travailleurs, devrait atteindre un sommet au début de2009. Selon M. Dick, la demande actuelle est de 18 000 tra-vailleurs et elle est difficile à combler.

Brad Anderson, directeur exécutif de l’ACR, ajoute : « Legraphique n’est que la partie émergée de l’iceberg; il ne listeque les projets valant plus de 100 millions de dollars. Il n’inclutpas les hôpitaux ou les routes. »

« Le pétrole des sables bitumineux est le plus laborieux àextraire et aussi le plus coûteux », dit-il. « Une fois sorti deterre, il est le plus difficile et le plus onéreux à traiter. » M.Anderson signale que le succès dans l’industrie n’est pas lefruit de la chance comme certains le pensent. « C’est grâceaux apports de compétences que les sables bitumineux ensont à leur stage actuel. »

M. Anderson a travaillé avec AOSTRA (Alberta’s Oil SandsTechnology and Research Authority), un organisme fondé parPeter Lougheed, alors premier ministre. M. Lougheed nous adit : « Trouvez comment produire et valoriser les sables bitu-mineux de l’Alberta. » À cette époque, AOSTRA constituait le

L

sables bitumineux

sables bitumineux

Source : Syncrude Canada Ltd.

e secteur des sables bitumineux est en plein essor en Alberta.En 2005, il représentait déjà 58 % de la production de pétrolede la province et il pourrait atteindre 80 % en 2020. SelonRessources naturelles Canada, la production des sables bitu-mineux devrait quadrupler de 2005 à 2020.

Survol de l’industrie dessables

bitumineux

plus gros projet de recherche du pays avec unbudget de 100 millions de dollars. Les succèsde l’AOSTRA comprennent la technologie deséparation gravitaire stimulée par injection devapeur (SAGD – Steam Assisted GravityDrainage).

M. Anderson compare la situation avec ledéveloppement des schistes bitumineux auxÉtats-Unis, où le soutien gouvernemental n’é-tait pas aussi significatif. « Il est vrai que lesschistes sont plus difficiles à développer queles sables. Ils ont abandonné, pas nous.Maintenant, les sables bitumineux représen-tent plus de la moitié de la production de pét-role de la province. »

L’industrie aussi a cru à la vision. « Audébut, il y avait quelques braves compagnies,dont Sun Oil, le précurseur de Suncor », dit M.Anderson. « M. Pew, le président de Sun Oil,entrevoyait la possibilité des sables bitu-mineux, il a entrepris un projet à risque trèsélevé. Syncrude, Imperial Oil et Canada OilSands ont suivi et ces compagnies en récoltentaujourd’hui les bénéfices. »

L’un des points tournants de l’industriealbertaine a été la création d’un groupe de travail, le NationalOil Sands Taskforce. Le rapport du groupe de travail a été dif-fusé en 1996 après plus d’une décennie de travail. LeGouvernement de l’Alberta a accepté les recommandationset a établi la politique des redevances sur les sables bitu-mineux tout en reconnaissant les coûts élevés de travailler lessables. La redevance a été établie à 1 % du prix brut jusqu’àce qui le projet soit rentable; elle passe alors à 25 % desbénéfices nets.

Du côté fédéral, l’équipe a réussi à obtenir une déductionpour amortissement accéléré, permettant de déduire les coûtsdu revenu et de payer de l’impôt uniquement sur la différence.Cette initiative a été présentée en 1996 puis abrogée en marsdernier. Le changement entrera en vigueur en 2010. Selon M.Anderson, l’impact sera de 300 millions de dollars, somme quel’industrie devra assumer.

Si les coûts et les risques sont si élevés, pourquoi les com-pagnies continuent-elles à mettre de l’argent dans les sables

bitumineux? « C’est la taille de la récom-pense », répond M. Anderson. « Le projetdes sables bitumineux Albian de Shell aassez de réserves pour produire pendant 50ans. »

Le Department of Energy de l’Albertaliste des réserves de pétrole prouvées de176 milliards de barils, et des réservesrécupérables de 335 milliards de barils. M.Dick ajoute : « Avec les récentes améliora-tions aux techniques minières, de nom-breuses ressources ont passé de `nonrécupérables� à récupérables. »

Il faut aussi mentionner le projet dupartenariat Nexen/OPTI; ce projet combineune exploitation SAGD avec une usine devalorisation sur place. « Nous avons tou-jours voulu faire autre chose que de brûlerdu gaz naturel pour faire de la vapeur », ditSean Noe, un analyste chez Nexen. Dansune exploitation SAGD, deux puits horizon-taux sont forés dans le gisement; de lavapeur est ensuite injectée dans le puits


Source : Suncor Energy Inc.

Source : Syncrude Canada Ltd.

tions. Northern Lightsproduira 100 000barils/jour de pétrolesynthétique léger, nonsulfuré pour 30 ans. Endécembre 2006, les

dépenses en immobilisations pour l’exploitation et l’extraction étaientestimées à 5,6 milliards de dollars, si la construction était effectuée selon lesméthodes « traditionnelles »; une stratégie de construction modulairecoûterait 4,4 milliards de dollars.

SUNCOR La première exploitation de Suncor, en 1967, était le premier projetréussi de sables bitumineux. En 2006, la compagnie a annoncé l’atteinte de sonquatre milliardième baril de pétrole.Suncor exploite les mines à ciel ouvert Steepbank et Millennium ainsi que leprojet SAGC Firebag. En 2006, la production combinée moyenne de ces sitesétait de 260 000 barils/jour.Suncor croît de manière dynamique; elle a reçu les approbations de l’AlbertaEnergy and Utilities Board pour le projet Voyageur, soit la construction d’unetroisième usine de traitement sur le site. L’augmentation de la capacité detraitement devrait permettre à Suncor d’atteindre 350 000 barils/jour. Uneusine de gazéification du coke est aussi planifiée pour réduire la demande engaz naturel.

SYNCRUDE CANADA Syncrude Canada exploite la plus grosse installation depétrole brut au monde. Cette exploitation est une co-entreprise de sept com-pagnies : Canadian Oil Sands Ltd. (36,74 %), Imperial Oil Resources (25 %),Petro-Canada Oil and Gas (12 %), ConocoPhillips Oil Sands Partnership II(9,03 %), Nexen Oil Sands Partnership (7,23 %), Mocal Energy Ltd. (5 %) etMurphy Oil Company Ltd. (5 %). Syncrude exploite trois projets miniers à cielouvert, tous par pelles et camions après le retrait de son système de dragues etd’excavateurs à roue-pelle de la mine Base l’an dernier. La capacité de l’usinede traitement pourrait aussi être augmentée pour atteindre 500 000 barils/jourd’ici 2015.

Les projets de sables bitumineuxALBIAN SANDS La compagnie Albian Sands Energy, Inc. est une co-entrepriseentre Shell Canada Ltd., Chevron Canada Ltd. et Western Oil Sands, Inc. Elleexploite la mine Muskeg River, dont la production de 155 000 barils/jour estacheminée à Ft. Saskatchewan. Le premier baril de bitume a été produit endécembre 2002 et la mine a déjà un projet d’expansion de 100 000 barils/jour.

FORT HILLS En mars 2005, Petro-Canada a ajouté le projet Fort Hills à ses act-ifs; cette compagnie exploitera et dirigera le développement de Fort Hills, dontelle détient un intérêt de 55 %. D’autres partenaires incluent UTS EnergyCorporation (30 %) et Teck Cominco (15 %). La réserve de bitume récupérableest de plus de quatre milliards de barils.

HORIZON PROJECT La construction et le décapage du projet Horizon deCanadian Natural, un projet de 30 milliards de dollars, suivent l’échéancier etrespectent le budget. L’exploitation devrait débuter au troisième trimestre de2008 et atteindre 110 000 barils/jour. Des expansions futures permettraientd’atteindre 500 000 barils par jour.

KEARL OIL SANDS PROJECT Le projet conjoint de sables bitumineux Kearl(70/30 Imperial Oil et Exxon Mobil Canada), une exploitation à ciel ouvert, unpipeline et une usine de traitement produira 345 000 barils/jour. Imperial Oil asoumis les demandes de permis et les évaluations d’impact environnemental eta reçu une approbation conditionnelle pour le projet. Le développement devraitdébuter en 2010 et mobiliser 1700 travailleurs; les coûts estimés pour le projetsont de 5 à 8 milliards de dollars (voir page 46).

NORTHERN LIGHTS Le projet Northern Lights de Synenco comprend uneexploitation de sables bitumineux et l’extraction du bitume au nord de FortMcMurray; une usine de traitement pourrait être ajoutée aux autres installa-

La liste suivante énumère quelques projets de sables bitumineuxau stade de la production ou de la construction.

supérieur. Le bitume chauffé s’écoule vers le puits inférieur, lepuits « producteur », duquel il est extrait. Le gaz naturel est lecarburant le plus utilisé pour évaporer l’eau.

« Le procédé unique utilisé par OPTI est d’utiliser tout lebaril de bitume. » Une fois que le baril entre dans lacolonne de distillation, les produits sont un brut de densitémoyenne et des asphaltènes. Ces derniers produits sontsoumis à un craquage thermique. Le produit obtenu estensuite retourné à la colonne de distillation et le processusest répété jusqu’à ce que tout le bitume soit converti enpétrole brut corrosif.

Le pétrole brut corrosif est acheminé à un hydrocraque-ur, de l’hydrogène est ajouté pour produire un pétrole syn-thétique non corrosif d’environ 38° API. Ce qui est intéres-sant est la provenance de l’hydrogène. On ajoute un peude chaleur et de vapeur aux asphaltènes liquides et lesous-produit est de l’hydrogène et un carburant synthé-tique. Le contenu en chaleur de ce carburant synthétiqueest faible mais il suffit pour évaporer l’eau et générer lavapeur utilisée dans le puits supérieur. « Nous ne sommespas complètement autosuffi sants, mais c’est bienproche », dit M. Noe.

Les économies seront d’environ 10 $/baril une fois que lapleine production sera atteinte. Ces chiffres sont encore plusimpressionnants lorsque l’on considère que la réserverécupérable totale au site Long Lake est de 5,5 milliards de


barils et que des projets semblables qui n’utilisent pas cettetechnologie paient de 22 à 24 $/baril comparativement àNexen qu paie de 12 à 14 $/baril. Le procédé continuera àêtre peaufiné.

« Nous produisons plus de 1 million de barils par jour etles prévisions sont de 5 millions d’ici 2020. » Les améliora-tions des techniques d’extraction et le piégeage du carbonejoueront un grand rôle. Selon Ressources naturelles Canada,la quantité de gaz a effet de serre émis par baril chutera, maisla quantité totale provenant des sables bitumineux aug-mentera en raison de la croissance de la production. Le gou-vernement de l’Alberta a une solution partielle : les produc-teurs qui ne peuvent demeurer sous les restrictions des émis-sions de CO2 doivent contribuer à un fonds technologique deréduction du CO2.

M. Anderson est convaincu que la technologie est garantede l’avenir de l’industrie.

« Le gisement de carbonate de Grosmont se trouve toutjuste sous les sables bitumineux de Ft. McMurray/Athabasca »,dit-il. « Il y autant de pétrole dans le carbonate que dans lessables. C’est la prochaine cible. »

Aucune technologie actuelle ne permet d’extraire le pétroledu carbonate, mais il y a trente ans, il n’existait pas de tech-nologie économique pour exploiter les sables bitumineux.Selon M. Anderson, avec un bon soutien et la bonne vision, ondécouvrira la technologie. CIM


When it comes to coal, most of Canada’s production happens in the West, saidCanadian Coal Association CEO Allen Wright. “Most of the operations are inSaskatchewan, Alberta, and British Columbia. Besides one small producing coalmine in New Brunswick and some ongoing reclamation mining in Nova Scotia,there is also the prospect of a significant underground mine in the northern endof Cape Breton in Nova Scotia. While the Donkin coal project will be primarily athermal coal operation, the project proponents are optimistic about the metallur-gical (met) prospects.”In Saskatchewan, Wright said, all coal mines are “mine-mouth” thermal opera-

tions supplying coal to the province’s coal-fired power plants. “These power plantsare built as close to the mines as possible, to minimize transportation costs.” All ofSaskatchewan’s production is consumed within the province, with the exceptionof some production from the Bienfait mine, which supplies the Atikokan andThunder Bay coal-fired power plants in northern Ontario.Operations in Alberta are a mix of the eight thermal mines and two Met mines:

Elk Valley Coal Corporation’s Cardinal River operation near Hinton and GrandeCache Coal’s mine in Grande Cache.

Coal in CanadaProduction staying strong in the West

by Dan Zlotnikov

Photo credit: Daniel Wiener, Montreal, Quebec

British Columbia is primarily a supplier of met coal for theexport market. The province has three main areas of activity,split between the southeast, where Elk Valley has five mines, andthe northeast, where a number of small coal companies areworking to expand existing operations and to develop new prop-erties as well. The northeast is home to the Peace River Coaloperation (a joint venture by Anglo Canada, NEMI, andHillsborough Resources), Western Canadian Coal, and a fewother, smaller ventures.The third area is Hillsborough Resources’ Quinsam Mine on

Vancouver Island. This underground mine, one of only two oper-ating underground coal mines in Canada, produces thermal coalfor export to the U.S. Hillsborough also has a large thermal assetunder development in northeastern BC.Wright mentioned that there has also been considerable

activity on the utilization side, with the first super-critical coal-fired plant commissioned in 2005, another in development, anda strong interest in developing more coal gasification projects.“Genesee 3, a 450 MW super-critical unit, replaced two exist-

ing units, resulting in a decrease of CO2 emissions by 18 percent. Keephills 3, another supercritical project, is expected todecrease emissions by over 20 per cent. Both plants aredesigned to significantly reduce pollutants such as Nox, Sox, par-ticulate matter, and mercury.”Sherritt International is in the planning stages for a coal gasi-

fication facility, said Wright. The facility’s main purpose will be toproduce hydrogen for the oil sands industry, where it can beused as a feedstock for upgrading bitumen as an alternative tonatural gas. (More information on p. 36).Finally, Saskatchewan Power has long been studying various

clean coal technologies. Their main focus has been on selecting

an appropriate coal technolo-gy that will provide for theirgrowth in electricity demand,while at the same time allow-ing for the capture of CO2emissions. Currently, they areconsidering a super-criticalcoal-fired project with post-combustion capture and stor-age of CO2. If this project pro-ceeds, it will be the first of itskind in the world. A decision isexpected this fall.A few similar facilities, said

Wright, are in the planningstages, some as replacementsfor aging plants and othersintended to increase the avail-able power supply. Due totechnological improvements,these new power plants willbe able to generate morepower while using less coaland producing less CO2.Overall, Canadian coal pro-

duction has been relativelysteady, with a very slight downward trend since 1997. There wasa partial reversal of the trend in 2003, with small, but continu-ous increases, primarily accounted for by met coal. On the con-sumption side, thermal coal in the provinces of Nova Scotia,New Brunswick, Saskatchewan, and Alberta has increasedsteadily, year after year. Ontario, still a big coal consumer, hasseen reduced consumption in recent years because of higheroutput from their nuclear fleet.“The rule of thumb that we use is that coal consumption

tracks coal-fired power generation one to one,” said GeorgeWhite, chairman of the board of the Coal Association ofCanada, “and power generation goes up at one half of GDP peryear. Of course, coal doesn’t attract all the growth because ofother sources such as wind, hydro, and demand-side manage-ment. In general, the thermal coal industry growth has beenvery predictable.”Other factors may influence the growth distribution, adds

White. “In Ontario, for example, the provincial government hasan off-coal policy, so in that case the supply growth will have tocome from somewhere else, perhaps nuclear or natural gaspower generation.”There is a very clear delineation between the types of coal

and their eventual recipients. While metallurgical coal is prima-rily exported, Canada’s thermal coal production is largely con-sumed internally, almost exclusively for power generation pur-poses. The reasons for this split are the relative costs. It shouldalso be pointed out that coal is used in the manufacture ofcement.Each variety of coal has a set of properties by which it is

judged. The foremost is the thermal content of the coal—howmuch energy a unit of coal will generate when burned.


Left, top: Poplar River reclamation; left, bot-tom: Genesee 1; below: Poplar River 1.Photos courtesy of Sherritt.

Considering the relatively low cost of extraction and processing,transporting coal from the mine to the power plant accounts fora significant part of the buyer’s cost. The lower the thermal con-tent of the coal, the more tonnage the plant has to purchase andtransport, and the bigger the chunk taken out of its bottom line.An inescapable reality for many years, transportation costs havebecome particularly significant in today’s world of US$75+ perbillion barrels crude oil. Transportation costs have also risenbecause of competition for transport infrastructure from themagnitude of commodities now being shipped worldwide.The second property to be taken into account is the nature

of the impurities in the coal. These are constituents such as ash,moisture, and sulphur. Canada’s coal is known for its low per-centage of sulphur, a quality that until recently attracted a pre-mium price.“With new technology, impurities such as sulphur content

are less important now,” White said about the change. “Manynew plants have been fitted with scrubbers to remove the sul-phur dioxide particles from the emissions. Power plants with thistechnology can forego the low sulphur coals because the scrub-bers allow them to process cheaper high-sulphur coals.”“Utilities’ customers have many reasons to diversify their

coal supply,” said White. “They have power plants that are opti-mized for certain characteristics. So they’ll try to optimize theirfuel mix, while keeping the price down. Quality and heatingvalue are important because each power plant is designed forcertain coal characteristics. Other factors include long-standingrelationships between the buyers and sellers, based on the reli-ability of delivery and customer service.” While Canada’s low-sulphur thermal coal can find a market in the Asia Pacific,improvements in processing technology at power plants havesomewhat decreased the advantage it had in the past. The finalquality of the coal to be considered is whether the coal has veryspecific, highly sought-after “coking” properties.Coke is a high-carbon residue, produced from very low-ash,

low-sulphur bituminous coal. Coke is used exclusively as a

reducing agent in steel production, and the coal from whichcoke is derived is known both as coking and metallurgical coal.Because of the much more restrictive requirements placed

on the coal by the process, metallurgical coal (or met coal, as itis called in the industry) is less abundant than thermal coal andis far more expensive. While met coal can also be burned for itsthermal content (which is excellent), to use it for that purposewould be unwise, to say the least—the 2005 average price formet coal was US$122 per tonne. The average price for thermalcoal was less than a third that amount, around US$40. The situ-ation is likely to remain the same, according to White. “When itcomes to international supply and demand of thermal coal, themarket is pretty much in balance, resulting in prices that do notprovide producers with high margins.”Met coal also enjoys a geographical advantage—it is mainly

produced in British Columbia, whereas thermal coal mostlycomes from Alberta, on the far side of the Rockies. ”Once thecoal is seaborne on a ship, it can range into the Asia Pacific,”White said. Ships can move the large tonnage for a fraction ofthe cost of either rail or truck transportation. The same holdstrue for the higher grades of thermal coal, which Sherritt sells toclients as far away as Japan and South Korea.But at the same time as Canadian producers are exporting

coal, Canadian steel mills and power plants are importing it, andin significant amounts. The preliminary figures for 2006 showthe western provinces exporting 27.7 million (metric) tonnes, ofwhich just over 24.5 million tonnes were met coal and 3 milliontonnes were thermal. In the same year, eastern provinces haveimported almost 21 million tonnes of coal, 16.5 million tonnesof which were thermal and only 4.2 million tonnes were metcoal. Part of this is due to the power plants’ desire for diversifi-cation of supply, but the biggest reason is the massive shippingbill associated with moving the coal across the Prairie provincesand into eastern Canada.The vast majority of Canada’s thermal coal production, how-

ever, is directed to mine-mouth operations—power plants that


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were built in the immediate vicinity of the mine in order to keeptransportation costs as low as possible.Because of the variation in the properties of coal, there is

no single “coal price” said Wright. Instead, the coal marketrelies on long-term contracts between producers and buyers.These contracts may have “escalator clauses” in them, toaccount for inflation, growth and demand increases, and toadd stability to both sides of the industry. For coal sold in theexport seaborne markets, the prices are generally negotiatedannually and are influenced by supply and demand fundamen-tals and global events.The seaborne coal markets, both for thermal and metallurgical

coal, have seen a revival over the past few years. The single largestdriver is the phenomenal growth in China and the associateddemand for raw materials to fuel the growth. Prices for metallurgi-cal coal have more than doubled from historical levels, and thermalcoal prices in the seaborne market are at record levels. All of thisbodes well for the health of the Canadian export coal industry.

Specific ProducersThe major coal producers in Canada are Elk Valley Coal,

focusing on the metallurgical variety, and Sherritt InternationalCorp., a producer of thermal coal. Of the 26.7 million tonnes ofmet coal Canada exported in 2005, Elk Valley’s productionaccounted for 24.5 million. Almost all the thermal coal producedin the same year, 40 million tonnes of the total, was produced

by Sherritt mines, either owned directly or via the Royal UtilitiesIncome Fund.Elk Valley operates five open-pit mines in British Columbia

and another one in Alberta, all of which are met coal operations.Elk Valley is owned by the Fording Coal Trust (60%) and the min-ing giant Teck Cominco (40%), who is also the managing part-ner. The creation of the Elk Valley Coal Partnership in 2003 wasa complex multi-party agreement, under which met coal prop-erties of Sherritt International, Consol Energy, Luscar Energy, andTeck Cominco were consolidated, creating the world’s secondlargest producer of seaborne coking coal.Global events, such as the growth in Asia and in particular

China, have seen the global steel industry return to profitabili-ty over the past five years, resulting in a change in the demandfor seaborne coking coal, not only in quantity but in quality aswell (see interview with Elk Valley Coal president and CEO,Boyd Payne, p. 20, for more details). As global steel productionhas increased and steel prices have risen, the value of high-quality coking coal to a steel mill has become more importantthan ever.“High-quality coking coal allows for the production of high-

quality coke and ultimately results in increased blast furnaceproductivity and improved steel quality, two factors that canimprove the financial health of the steel mill,” said PaulArmstrong, director of investor relations, Fording Canadian CoalTrust. “Elk Valley Coals’ response to the changing marketplace


has been to focus on our role as a significantsupplier of high-quality hard coking coal. Weare realigning our internal processes toachieve the production of consistently high-quality coking coal products that bring valueto our customers.”One of the sites that has recently

returned to production is the Grande CacheCoal operation, at a 22,000 hectare site ofthe same name. Previously owned by SmokyRiver, the mine ceased operations in March2000, before Grande Cache purchased theassets in July 2000.“The timing was good for redeveloping

the mine and seeking investors,” said thecompany’s vice president of marketing andtransportation, Eugene Nagai. “It was a pri-vate company until the IPO in May 2004.” After permitting wascompleted, Grande Cache began operation in the summer of2004, selling the first shipment of coal in November of thesame year.Traditionally, the Smoky River operation had both surface

and underground components. Grande Cache developed anew, greenfield underground mine with company-ownedequipment and Grande Cache employees. Surface mine oper-ations were contracted to North American Energy Partners(NAEP). When the high strip ratio phase of the surface opera-tion was completed in November of last year, Grande Cacheterminated the contract and made preparations to take oversurface operations.“There’s a shovel being assembled at the site right now,” said

Nagai. “We’ve also purchased some trucks that were deliveredduring August.” Stockpiled raw coal from the surface operationsis being used to supplement underground production. Surfaceoperations will resume in September, with the goal being toachieve full production capacity in the last quarter of 2007.

Grande Cache has faced some challenges on the marketingside when demand dropped off. “Many of our customers are inKorea and Japan,” said Nagai. “We had established contractswith steel mills but as demand dropped off, so did vessel ship-ments. The decision was made to have planned closures, tomatch production to demand.” With demand up once again,Grande Cache is gearing up. The goal, according to Nagai, is tosell 1.4 to 1.6 million tons between this April and the end of nextMarch—roughly a 50 per cent increase over last year’s figures.“We want to be a company with long-term contracts,” he said.“We need to have a constant revenue stream with which togrow our business.”Grande Cache is facing the same labour and equipment short-

ages as the rest of the industry, but is also affected by the geogra-phy. “Like most export coal mines, we’re 1,100 kilometres from thecoast,” Nagai said. “Transportation costs are definitely a concern forthe industry.” There’s also some concern that such rapid growth insales and production may strain the available transportationcapacity and affect some of the company’s expansion plans. CIM


Line Creek North refuse reclamation area. Photo credit: Daniel Wiener, Montreal, Quebec.


remplace deux installations existantes et permet de réduire lesémissions de CO2 de 18 %. Keephills 3, un autre projet decombustion supercritique, devrait réduire les émissions de CO2de 24 % en plus réduire les émissions de polluants tels queNOx et SOx, les particules et le mercure.« Sherritt International planifie actuellement une installa-

tion de gazéification du charbon », dit M. Wright. Le but pre-mier de l’installation sera de produire de l’hydrogène pour l’in-dustrie des sables bitumineux; il servira pour traiter le bitume,en remplacement du gaz naturel. Saskatchewan Power étudiedepuis longtemps les technologies de charbon propre. Cettecompagnie est à étudier un projet supercritique avec captureet séquestration du CO2 émis. D’autres installations sont aussiau stade de planification, certains pour remplacer des installa-tions vieillissantes, d’autres pour augmenter la capacitéénergétique. Selon George White, président du conseil d’administration

de l’Association canadienne du charbon, « La consommationde charbon suit de près la production d’énergie. Le vent et l’hy-droélectricité contribuent à la croissance de la productiond’énergie mais la croissance de l’industrie du charbon ther-mique est très prévisible. »La distinction entre les types de charbon est très claire, tout

comme la distinction entre les récipiendaires éventuels. Lecharbon métallurgique, connu en tant que charbon cokéfiable,est surtout exporté, le charbon thermique est principalementconsommé au pays, presque uniquement pour produire del’électricité. Les coûts relatifs sont la raison de cette distinc-

Le charbon au CanadaLa production demeure forte dans l’Ouest

« Au Canada, le charbon est produit dans l’Ouest, surtouten Saskatchewan, en Alberta et en Colombie-Britannique », ditAllen Wright, président et directeur général de l’Associationcanadienne du charbon. « Un autre projet qui débutera possi-blement est le projet Donkin, au Cap Breton, une exploitationsurtout de charbon thermique, mais les promoteurs sont opti-mistes quant aux perspectives de charbon métallurgique. »En Saskatchewan, les mines, généralement à ciel ouvert,

sont situées à proximité de centrales au charbon et la produc-tion de cette province est consommée à l’interne. La mineBienfait alimente toutefois deux installations en Ontario. Lasituation est semblable en Alberta avec huit mines de charbonthermique et les propriétés Elk Valley et Grande Cache qui pro-duisent du charbon métallurgique pour l’exportation.La Colombie-Britannique, la province produisant le plus de

charbon, extrait surtout du charbon métallurgique pour l’ex-portation, à partir de trois centres d’activité. Elk Valley, le prin-cipal producteur de cette province, possède cinq mines dans lesecteur Sud-Est. Dans le Nord-Est, de plus petites compagniescherchent à développer de nouvelles propriétés et agrandir lespropriétés existantes. C’est dans ce secteur que se trouve l’ex-ploitation Peace River Coal (une co-entreprise Anglo Canada,NEMI et Hillsborough Resources). Une mine souterraine – lamine Quinsam – propriété de Hillsborough, se trouve sur l’îlede Vancouver; elle forme le troisième centre d’activité. La mineproduit du charbon thermique qu’elle exporte aux États-Unis.M. Wright mentionne aussi les projets de gazéification et les

systèmes supercritiques. « Genesee 3, un projet de 450 MW,

tion; il faut aussi mentionner que le charbon entre dans la fab-rication du ciment.Chaque variété de charbon est jugée par un ensemble de

propriétés, tout d’abord le contenu thermique du charbon – laquantité d’énergie produite par unité brûlée. Étant donné lesfaibles coûts d’extraction et de traitement, le prix du transportdevient très significatif. Plus le contenu thermique du charbonest bas, plus la centrale devra en acheter, abaissant ainsi lesbénéfices nets.Il faut aussi tenir compte des impuretés dans le charbon. Le

charbon canadien a une basse teneur en soufre, permettant dele vendre à meilleur prix. « Avec les nouvelles technologies, cepoint est moins important de nos jours » dit M. White. « Lesnouvelles usines ont des épurateurs qui enlèvent les particulesd’anhydride sulfureux. Les compagnies ne sont donc pastenues d’acheter du charbon à faible teneur en soufre puisqueles épurateurs leur permettent de traiter le charbon à teneurélevée en soufre. » Les propriétés de cokéfaction doivent aussi être considé -

rées. Le coke est un résidu à haute teneur en carbone produità partir de houille à basse teneur en soufre. Il est utilisé commeréducteur dans la production de l’acier. En raison des exigences des procédés, le charbon métal-

lurgique est moins abondant que le charbon thermique et ilest beaucoup plus cher. Bien que le charbon métallurgiquepuisse être brûlé pour son excellent contenu thermique, ilserait malavisé de le faire. En 2005, le prix moyen du charbonmétallurgique était de 122 $US/t alors que le prix moyen ducharbon thermique était de 40 $US/t. Le charbon métallurgique jouit aussi d’un avantage géo-

graphique – il est surtout extrait en Colombie-Britannique,plus près des ports que le charbon thermique produit enAlberta. Les navires peuvent déplacer de grandes quantités àune fraction des coûts du transport par rail ou par camion.Sheritt a des clients au Japon et en Corée du Sud.Cependant, alors que les producteurs canadiens exportent

du charbon, les aciéries canadiennes en importent. Les don-nées préliminaires pour 2006 indiquent que les provinces del’Ouest ont exporté 27,7 Mt de charbon, dont 24,5 Mt de char-bon métallurgique, et que les provinces de l’Est ont importé21 Mt de charbon, dont seulement 4,2 Mt étaient du charbonmétallurgique. La raison principale est le coût de transporter lecharbon par voie terrestre à travers les prairies. « Il n’existe pas de prix ‘unique’ pour le charbon », dit M.

Wright. Le marché du charbon est basé sur des ententes entreles producteurs et les acheteurs; elles comportent des clausesd’indexation qui tiennent compte de la croissance et de lademande. Ce qui influence le plus les prix est la croissancephénoménale de la Chine et la demande pour des matièrespremières pour alimenter cette croissance. Les prix pour lecharbon métallurgique ont plus que doublé et les prix du char-bon thermique sont à des niveaux sans précédant.

Principaux producteursLes principaux producteurs canadiens sont Elk Valley Coal,

surtout du charbon métallurgique, et Sherritt InternationalCorp., un producteur de charbon thermique.

Elk Valley exploite cinq mines à ciel ouvert en Colombie-Britannique et une autre en Alberta. Cette compagnie appar-tient à Fording Coal Trust (60 %) et à Teck Cominco (40 %). Lacréation d’Elk Valley Coal remonte à 2003; cette compagnieest le résultat d’une fusion complexe des propriétés charbon-nières de Sherritt International, de Consol Energy, de LuscarEnergy et de Teck Cominco.Au cours des cinq dernières années, les événements mondi-

aux, tels que la croissance en Asie et plus particulièrement enChine, ont vu le retour à la rentabilité de l’industrie de l’acier,ce qui a changé la demande pour du charbon cokéfiableacheminé par voie maritime (voir l’entrevue avec le présidentet chef de la direction d’Elk Valley Coal, Boyd Payne, à la page20, pour plus d’information). « Un charbon cokéfiable de qualité élevée permet la pro-

duction de coke de grande qualité e qui en retour accroît laproductivité de l’aciérie et améliore la qualité de l’acier, deuxfacteurs qui augmentent la rentabilité de l’aciérie », dit PaulArmstrong, directeur des relations avec les investisseurs,Fording Canadian Coal Trust. « La réponse d’Elk Valley Coal estde se concentrer sur son rôle de fournisseur de charbon à cokede qualité. Nous révisions nos processus internes pour pro-duire un charbon cokéfiable de grande qualité dont béné-ficieront nos clients. »L’exploitation reprend à Grande Cache. Cette mine, ancien-

nement propriété de Smokey River, était fermée depuisquelques mois lorsqu’elle a été achetée en mars 2000. SelonEugene Nagai, vice-président, marketing et transports, « Lemoment était propice à un nouveau développement de lamine. Une fois les permis obtenus, la production a débuté àl’été 2004. »L’exploitation originale était à ciel ouvert et souterraine.

Grande Cache a développé une nouvelle mine souterraine avecses propres employées et équipements. La compagnie a décidéde donner l’exploitation en surface en sous-traitance à NorthAmerican Energy Partners. En novembre dernier, Grande Cachea mis fin au contrat et devrait reprendre l’exploitation en sur-face. « Nous assemblons une pelle et nous avons acheté descamions. Nous utilisons les stocks de charbon brut accumuléscomme supplément à la production souterraine », dit M.Nagai. Grande Cache a connu des difficultés lorsque la demande

a chuté. « De nombreux clients étaient en Corée du Sud etau Japon. Nous avions des contrats avec des aciéries maislorsque la demande a chuté, nos expéditions ont chuté aussi.Nous avons planifié quelques fermetures pour contreba -lancer l’offre et la demande. » Avec la reprise, Grande Cachese prépare. « Le but est de vendre 1,4 à 1,6 millions detonnes entre avril cette année et mars l’an prochain, uneaugmentation d’environ 50 % par rapport à l’an dernier.Nous voulons être une compagnie de contrats à longterme », dit-il.Grande Cache est confrontée aux mêmes problèmes de

main-d’œuvre et d’équipements que le reste de l’industrie,mais elle dit aussi tenir compte de sa géographie. « Noussommes à 1 100 km de la côte. Les coûts des transports sontune grande préoccupation », dit M. Nagai. CIM


The government’s climate change and clean air plan avoids realityby Paul Stothart, vice president, economic affairs, Mining Association of Canada

MAC economic commentary


chlorofluorocarbons and was addressedthrough technological improvements toair conditioners and refrigerators. Acidrain was caused by pollution from a rela-tive handful of coal-fired power plantsand smelters and was addressed throughintroduction of technologies to reducesulphur dioxide emissions. Local waterpollution problems, such as in the GreatLakes or nearby rivers, also offer relativelyeasy solutions—invest in better waste-water treatment, some new storm sewers,and a few marine regulations, and theproblem is on the way to resolution.

Unfortunately, climate change doesnot hold the promise of such an easy fix.Indeed, in one critically importantrespect, it resides at the opposite end of

the spectrum fromprevious environ-mental challenges.Simply put, climatechange is caused notby a few “bad actors”but by the everydayactions of averagepeople.

Every day, hun-dreds of millions ofaverage people makedecisions thatincrease greenhousegas (GHG) emissionsand therefore con-tribute to climatechange. They buy ahouse in suburbia.They demandimproved highways.They drive to the cor-ner store for bread.They charge theircell-phone battery.They buy importedfruit. They fly to abusiness meeting.They play hockey.They crank up the

The climatechange issuehas always beenunique amongenvironmentalchallenges inthat, more thanany other issue,it is a direct by-product of ourmodern lives.

Other high-profile environ-mental issues

generally have a limited set of contribu-tors and an obvious choice of fixes.Depletion of the stratospheric ozonelayer, for example, implicated emitters of

furnace or the A/C at home. They log onto the Internet. They watch the eveningnews while sipping a coffee. Each ofthese seemingly benign actions places ademand upon the supply from electricitygrids, pipelines, oil companies, and gasstations. Each of these billions of dailydecisions increases the release of GHGsinto the atmosphere. In this sense, withthe possible exception of a few hermitsliving in mud huts, the staunchest ofenvironmentalists is playing in the samesocietal arena as the most right wing ofbusiness tycoons. Shopping, eating, heat-ing, driving, living—and contributing toGHG emissions growth.

More critical still is the reality that1.3 billion Chinese citizens and one bil-lion Indian citizens desire the pleasuresand comforts that we take for granted inwestern society. Over the comingdecade, the existing ratio of two autosper 100 people in China will movetowards the U.S. intensity of 100 autosper 100 people. This, and the similargradual narrowing of the gap in hun-dreds of other consumer benchmarks,will mean very dramatic increases inglobal GHG emissions.

As has been evident in Canada andmost other advanced countries over thepast 15 years, governments are not par-ticularly proficient in dealing with envi-ronmental issues such as climatechange. Governments do not like antag-onizing those who elect them. A politi-cian, whether Liberal, Conservative, orother stripe, does not like telling the120,000 residents in his constituencyhow to change their lives, let alone forc-ing these changes, knowing he will beseeking their votes a few short monthsdown the road.

The climate change and clean air reg-ulatory plan proposed by the federalgovernment in April 2007 provides thelatest evidence of this fundamental flaw.Despite its ostensible priority focus on

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Each of these measures ranked lowon the government’s own internal effec-tiveness assessment that was conducteda few years ago; however, the measuresare benign to Canadian consumers andthey are symbolically positive for voterswho want to see their governments dothe right thing. The measures, therefore,have been adopted. Other actions, suchas buying some new twisty lightbulbsfor one’s home, fall into this do-goodcategory as well.

A further consequence of a fixationon “being seen to do the right thing” isthat governments inevitably tread intoeach other’s turf in their search forvotes on high-polling issues. In thissense, the proposed federal plan is des-tined to lead to federal-provincialduplication—and a potential hodge-podge of regulatory and reporting obli-gations placed upon Canadian busi-nesses. And how will Canada’s value-added mining industry survive all ofthis? Stay tuned. CIM

MAC economic commentary

reducing air pollutants and smog, theplan leaves aside the consumer elementof Canadian society—in other words,the exact element that is the main con-tributor to smog! As such, Canadianswill face no constraints using inexpen-sive gasoline to cruise with total inhibi-tion on the country’s roads and high-ways, joining millions of otherCanadians driving in Toronto, Montreal,Vancouver, Windsor, Hamilton, Calgary,and other high-smog zones. These con-sumers may be comforted to know, how-ever, that a smelter or iron ore companylocated hundreds of miles from urbansmog zones is being hit by the plan withsevere smog-reduction requirements!

A few other basic realities of politicallife are also implicit within the govern-ment’s plan and broader strategy. First,the government is actually encouraginggreater economic consumption andGHG emissions through investing bil-lions of dollars in new infrastructure forcars, trucks, airplanes, and consumers.

Second, governments adhere to a funda-mental political requirement to be seenas “doing the right thing” and, in thepresent minority government situation,are competing to unveil environmentalplans that are “the toughest on indus-try” while leaving average voters com-fortably on the sidelines.

In this context, it is telling that threeof the most symbolic examples by thegovernment of “being seen to do theright thing” will have virtually zeroimpact in reducing GHG emissions:• New tax subsidies to users of urban

transit have been judged by most ana-lysts as insufficient to entice new riders.

• The fees associated with a new vehi-cle feebate program are insufficientto change car-purchase practices inany significant way.

• New subsidies to encourage ethanoluse will increase food prices andreward farmers, while offering mini-mal life-cycle GHG benefits overstandard gasoline.


Banff National Park, whichhappens to be Canada’s firstnational park, owes its existenceto Canadian Pacific Railwayworkers who discovered hotsprings in Alberta’s RockyMountains in the early 1880s.From there grew one of today’smost popular Canadian touristdestinations. However, unbe-knownst to many, an area aboutseven kilometres east of the townof Banff was a hotbed of activityabout 100 years earlier.

Bankhead, one of the firstcommunities in Alberta thatsprang to life because of mining,was founded in 1903 by theCanadian Pacific Railway (CPR)on Cascade Mountain in theBow River Valley of BanffNational Park (then calledRocky Mountains Park). PacificCoal Company, a subsidiary ofCPR, also developed a mine there—Mine No. 80.

Although the town and mine werelocated only three kilometres east of theCPR mainline, many visitors preferredgetting off in Banff and taking the scenicroute. Whereas the mine buildings werewhat greeted visitors to Bankhead viathe direct route, the roads that linkedthe two towns bordered such naturalbeauty as ponds, beaver dams, andCascade Falls.

Bankhead was truly a model town.Stylishly designed homes rested on largelots and were equipped with indoorplumbing; there was a municipal watersupply and sewage system, as well aselectricity. Rent was inexpensive varyingbetween $7.50 and $10 per month, how-ever, in the area nearest to the mine,which was unserviced, rent was lower at

$6. Being situated in a national park, thescenery was nothing short of breathtak-ing. The town was as multi-cultural asthey come and there was little or no con-flict. People simply got along. The onlyexception to this picture-perfect townwas Chinatown, which, in the beginning,probably had more to do with the lan-guage barrier than anything else. TheChinese kept to themselves and the restof the Bankheaders never, or rarely, ven-tured to that part of town. Unfortunately,the only serious crime to speak ofoccurred in Chinatown where a man waskilled after a night of gambling.

At its peak, Bankhead was home toabout 1,000 residents. The town com-prised a hotel, a post office, a branch ofthe Bank of Montreal, a general store, apool hall, a restaurant, a doctor’s office,and a saloon. Protection came in the

form of the Northwest Mounted Policewho were posted in Bankhead.Residents also benefited from havingtheir own library, school, and commu-nity hall. A strong sense of communitybrought neighbours and co-workerstogether on the baseball and soccerfields, tennis courts, and curling andhockey rinks.

The mine they called “No. 80”Mine No. 80 was opened in 1904,

mainly to fuel CPR’s steam engines.Coal mining was allowed in the nationalpark at that time and the governmentreceived $0.10 per tonne of coal fromindustry in the form of royalties.

The seams in Cascade Mountainwere steep, varied in thickness, and hadfaults. To avoid flooding the mine, it wasdecided to mine up instead of down.


Miners in Bankhead, Alberta. Source: Glenbow Archives NA-705-13.

Bankhead—mining for coalby Andrea Nichiporuk

mining lore

Less than 50 workers were hired tocarry out the blasting and by year’s end,an additional 135 men were hired towork underground and 39 to work atthe surface. These numbers quickly rosewhen the mine entered full productionduring 1905. Each miner worked withan assistant; the more they dug, themore they made. For a miner around1910, that meant about $3 to $4 per day.

There wasn’t much in terms of safetyequipment. Miners wore hobnail bootsand a cloth cap—no hard hat, evenwhen breaking off loose pieces of coalfrom the walls and ceilings with a pick.A tipple built in 1905, in which over100 men worked, produced such a highdecibel level that many of the men losttheir hearing. And, without masks,nothing prevented the workers frombreathing in coal dust or getting it intheir eyes. There were many accidents,and 15 men lost their lives at the mine.

During the mine’s almost 20-yearlife, miners went on strike six times,once even striking for eight months inorder to receive a $0.10 increase, whichthey got. During World War I, minersreceived a $1.18 per day bonus from thegovernment. These were prosperoustimes for coal miners as coal was usedto fuel the Navy’s warships. As well,they were exempt from the draft.However, once the war was over, theminers demanded that the companytake over paying them the extra $1.18per day. The company refused and astrike ensued. Two months later, work-ers were given an ultimatum: if theydidn’t get back to work, the mine wouldshut down. Thinking it was but anotherscare tactic, they refused to go back. OnJune 15, 1922, Mine No. 80 was closed,permanently.

A second blowThe shock of the mine’s closure had

not yet worn off when a second blowstruck. When it became apparent thatthe mine would not reopen, CPR wasordered to clear out. That meant movingnot only mining equipment but houses,buildings—the entire town essentially.Industry would no longer be allowed innational parks. It took two years to

move everything; many of the buildingsand homes were moved to Banff.

During its peak production year,Mine No. 80 produced about a half mil-lion tons of coal.

Little is left of the former town ofBankhead, but its history as a model


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mining town remains. Bankhead wasalso once home to Frank and Joe Jerwa,who played for the Boston Bruins in theearly 1930s.

Credit: Numerous online sources were used in the writing of this article, including www.ourroots.ca.

CIM

canadians abroad

Gene Wusaty felt itwas time for a careerchange and is now nearthe top of the Mongoliancoal industry. When theopportunity presenteditself to join IvanhoeMines to develop theircoal resources inMongolia, it was an obvi-ous step. Ivanhoe has aworld-class copper/goldproject at Oye Tolgoi inthe southeast part of theGobi. As COO ofSouthGobi EnergyResources, which is theresult of Asia Gold’sacquisition of the coaldivision of IvanhoeMines that finalized lastMay, Wusaty is now liv-ing on two continents.

“We’re (SouthGobi)the biggest holder of coallands under explorationin Mongolia, with 2.3million hectares, com-prising 54 explorationlicences,” he said. “Ourproperties are located inthe southern part ofMongolia in the Gobi Desert, close tothe Chinese border. Our proximity toChina is our main advantage and shouldwork in our favour, easing the require-ment to ship our coal to market in west-ern China.”

With six current exploration anddevelopment projects, including theOvoot Tolgoi (formerly Narin Sukhait)mine development, Wusaty is looking toChina as the market of choice for hiscompany. This year China will produce2.2 billion tonnes of coal, and the indus-try is growing. So too is the amount ofcoal China now imports.

“I see a major window of opportunityfor us,” Wusaty said. “When we starteddevelopment we had indications that

The tale of two continentsby Heather Ednie

things would be booming, and nowthere are excellent opportunities devel-oping for coal from Mongolia to be soldto China. We are carrying out a $9.5million exploration program in 2007 tofurther advance our projects.”

Ovoot Tolgoi is the most advanced ofSouthGobi’s projects and is located 950kilometres south of the nation’s capitalcity, Ulaan Bataar. To date, a 43-101 hasbeen completed, with 150 milliontonnes of coal resources measured andindicated. The initial plan is for thedevelopment of a surface mine. Adetailed environmental impact assess-ment has been completed and beenapproved. The local communities haveaccepted the development plans, and as

required by the MineralsLaw, the government hassigned off on its audit ofthe Geology Resources.SouthGobi has appliedfor its mining licence,which is expected to begranted in September.Mining equipment pur-chase is the next step. Aninitial camp, power, andairport are already estab-lished. The coal outcropsat surface so very littlepre-stripping is required.The operation will startsmall at one milliontonnes per year, thenincrease to five milliontonnes per year in fiveyears. The coal is contin-uous at depth, and plan-ning for an undergroundoperation has alreadybegun.

“We’re targeting firstquarter next year for pre-production develop-ment; I think a sixmonth schedule is feasi-ble,” Wusaty said. “Theproof in the pudding will

be when we put our first operation inproduction and ship our first coal to


Visiting the Great Wall in Beijing

Onsite accomodations

China. We will be the first western coalmining company in Mongolia to do so.”

Living on two continentsWusaty’s enthusiasm about his work is

obvious, though it’s a life that can be verydifficult to lead. Just a glimpse at his travelschedule gives a lot away. From November2005 to February 2007 he traveled fromCanada to Mongolia and China 13 times,let alone some trips to Japan, Indonesia,etc., to look at prospects. His average is tendays to two weeks in Asia every month.

“I’m the rover in the company,” Wusatyadmitted. “We have six senior expats fromCanada, the United States, and Australialiving in Mongolia now, working out of ouroperations office in Ulaan Bataar.Combined with our group of 41Mongolians, we have enough talent thereto start an operation and keep our otherexploration projects going.”

Wusaty himself is of Ukrainian decentand his wife is of Russian decent, whichhas been an advantage during his time inMongolia. “Most of our Mongolian staff arewell educated and most speak English.Mongolia was part of the Soviet Bloc until1991 and the older people understand andspeak Russian. The Mongolian alphabet isCyrillic, as is Russian, and I can read andunderstand Russian,” he explained.Though he said the expats stick togethersomewhat, forming a small community;the country is safe and culturally Mongoliahas been relatively simple to grow accus-tomed to. “In Ulaan Bataar many of therestaurants are similar to ours but onceoutside the capital, the food becomes very

ethnic. The favourite sport isMongolia-style wrestling.The Sumo Champion inJapan is Mongolian.”

In China, however, it’squite different. The com-pany has a small office inBeijing which is very cosmo-politan and easy to get usedto but the customers arelocated in Gansu provinceand western InnerMongolia, over 1,500 kilo-metres west of Beijing. InChina he must travel withinterpreters, and the culture


Mongolia Coal property map

canadians abroad

and language in western China istougher to adapt to. “That being said,we’ve been successful in developingrelationships with several large compa-nies that will be our future customers.”

Improving Mongolia’s infrastructureMongolia is the size of Alaska, with

2.5 million people, making it moresparce than Canada. It is very cold in thewinter and the Gobi can be very hot inthe summer. The country has only onemajor railway, which is part of theOrient Express but it is not located inSouthGobi’s operating area. There areno paved roads in the south part of thecountry, which necessitated the con-struction of an airport at Ovoot Tolgoiin the Gobi. There is no CanadianEmbassy in Mongolia, although a largecontingent of the mining companies

operating in Mongolia are Canadian.With a number of new mining projectsplanng to start up, the infrastructurewill develop.

“Mongolia needs something to spurits development, and the mining indus-try just may be the catalyst,” Wusatysaid. “Some things could be done moreefficiently. For example, at this timeonly Mongolians and Chinese areallowed to drive across their border. Soeven though the border is only 45 kilo-metres south of Ovoot Tolgoi, when weneed to travel to China to visit our cus-tomers from our sites in the Gobi, wehave to fly back to Ulaan Bataar, then toBeijing, and then to western InnerMongolia and Gansu Province. We arehoping to get the governments to allowexpats to cross the border once we getinto production.”

Another area in need of develop-ment is the workforce. In Mongolia,you are required by law to employ nineMongolians per every one expat.“Except for a few expats, we plan toengage a total Mongolian workforce,but that will require a lot of training,”Wusaty said. “Most of the people wewill be employing have no skills foroperating mining equipment, andmaintenance will be even more diffi-cult. We initially plan to contract ourmaintenance.”

His work is cut out for him, andWusaty appears up for the challenge.After two to three decades in theNorth American coal industry, hewanted the opportunity to travel andexperience other cultures. And todayhe’s making the most of that uniqueexperience. CIM


innovation page


The mining industry has benefitedfrom continued innovations that effec-tively address operating challenges. TheAlberta Research Council (ARC) is onegroup that is working to deliver creativesolutions for mining through the devel-opment of associated technologies thatare commercially viable.

The latest focus areas for ARC sup-ports surface mining operations withthe next generation of technologies toimprove the detection of shovelbucket tooth condition and trampmetal in ore streams.

Missing tooth detectionShovel bucket tooth breakage or

unchecked premature wear at a toothlocation can result in significant andharmful impacts to a mining operation.In addition to the risk of damage to thebucket itself, a lost tooth entering an oreproduction system can cause cata-strophic damage to sizing, conveying,and processing equipment.

The Alberta Research Council hasdeveloped a system to detect the inci-dence of missing, broken, or partially bro-ken teeth on a shovel bucket. They haveworked closely with the mining industryto continuously improve this productthrough increased reliability in detection.It works by utilizing a remote “machinevision” technology that captures imagesof the “tooth line” on every upswing ofthe shovel and then, through the use of

Sensors for miningby Gord Winkel, technology manager, Kearl Oilsands Project, andTom Demorest, senior advisor, mining and tailings, Syncrude Canada Ltd.

specialized computer algorithms, com-pares it against a base case, fully intacttooth line to check for differences. In thisway, when a tooth is partially or com-pletely broken off, the system alerts theshovel operator and steps can be taken toprevent the broken tooth from enteringthe mining/processing stream.

The latest innovation developed byARC for this technology greatlyenhances the capability to monitor evensmall changes to a bucket tooth profile.It does this through the use of a newsoftware system that uses newdual-layer processing algo-rithms that are new to thistechnology. Couple this with ahardware design that hasundergone thousands ofhours of in-field testing, andyou have the next generationof missing tooth detectiontechnology.

And it doesn’t stop there!Based on this new technologyplatform, development work isbeing carried out to differenti-ate between the suddenness ofa broken tooth versus the gradual toothwear that is incurred during operation.Building in this next layer of sophistica-tion will give the system the ability toalso measure, track, and display infor-mation regarding shovel tooth wear.Further work is also being done to havethe system analyze the mine face as theshovel excavates, to identify oversizedrock as a means of testing blasting effec-tiveness and preventing oversized mate-rial from entering the downstream min-ing systems.

Tramp metal detectionIn addition to shovel teeth, any inad-

vertent introduction of sizable metalmaterial (from components to beamsand wear plates) can have equally seri-ous consequences to a mining train.Detection of this so-called “tramp metal”

would be a direct benefit to preventingdownstream equipment damage.

Good work has been done by manyto provide tramp metal detection.However, this type of detection is noteasy. As much of the mining equipmentis constructed of metal, it can be chal-lenging to differentiate tramp metal fromthe material handling systems them-selves. This, in turn, can restrict whereeffective tramp metal detection can beaccomplished. In addition, systems mayfail to detect metal material or, con-

versely, can be oversensitive and causeunnecessary mining system shutdowns.

In response, ARC is also investigat-ing technologies for enhanced trampmetal detection, with the support ofmine operators associated with theSurface Mining Association for Researchand Technology (SMART) group.Proposed innovations consist of leverag-ing technologies that can adapt tochanging operating and environmentalconditions and essentially “learn” frompast operating events, to effectivelyidentify tramp metal and alert/intervenein the process control system.

Once again, innovation in develop-ing new technologies, as evidenced fromthe previously discussed efforts to lever-age sensor development for mining, hasthe promise of supporting miningindustry effectiveness. CIM

Missing tooth detection

A double roll crusher in operation

HR outlook


process of matching a new recruit withan experienced advisor to guide newemployees as they make their way in anew workplace environment can be arewarding and mutually beneficialexperience for both mentor and pro-tégé. The mining sector is facing criti-cal shortages of skilled workers. Infact, the industry must recruit approx-imately 10,000 new workers per yearover the next 10 years in order to meetanticipated labour growth and replaceretiring workers.

One of several contributing factorsto this crisis is the dramatic rate ofattrition in mining-related programs atCanadian colleges and universities.

The industry is los-ing an estimated 28per cent of its stu-dents from mining-related disciplines,such as geoscience,engineering, andtechnician/tech-nologist programsacross the countrythrough mid-pro-gram attrition.Furthermore, up to37 per cent of thestudents who dograduate from min-ing-related pro-grams will go on towork in other sectors.

The MiningIndustry HumanResources Council,through the Mining Industry’sAttraction, Recruit -ment, and Reten -tion Strategy(MARS Project) isdeveloping a men-

Mentoring should be a key compo-nent of any comprehensive recruit-ment and retention strategy. The

Virtual mentoring to address today’s skills shortageby Mel Sturk, project manager, recruitment and retention, Mining Industry Human Resources Council

toring program to mitigate this prob-lem. This element of the MARS projectwill facilitate the creation of one-on-one relationships between students (asearly as their first year of study) andindustry leaders. Establishing that firstlink to our industry is critical. In addi-tion to providing the students withgeneral guidance and advice, the men-tors will be able to offer the studentswith a working world context thatrelates back to their field of study,thereby creating a stronger bridge fromschool to work.

The program will be rooted in men-toring best practices, but will deviatefrom tradition by using non-standardpairing conventions and by using mod-ern communication technology.

Instead of pairing a seasonedworker with a new employee, MiHR’sMentorship Program will match expe-rienced workers with post-secondarystudents in mining-related disciplines.Mentors and protégés will be matchedbased on the protégés’ career goals andfield of study and the mentors’ careerexperience, education, career path,position, and more.

Traditionally, mentorship requiresthe matched mentor and protégé tospend time together, in the same phys-ical space. MiHR will be utilizing vir-tual mentoring, which allows partici-pants to communicate over long dis-tances and in real time. Virtual men-toring incorporates both e-mentoring,where communication occurs via tele-phone and email, and web-based men-toring, which incorporates web-basedcommunications such as web forumsand “blogging.” Because virtual men-toring requires no face-to-face con-tact, it is the optimal choice whenconnecting to participants in remoteareas. This type of mentoring is alsobeneficial due to the fact that it

HR outlook

increases the frequency and speed ofcommunication.

Mentors will receive guidancethrough training modules developedby MiHR and industry -steering com-mittee members, in order to provideprofessional, quality mentoring to theirrespective protégés, and will haveongoing access to support resources onthe MiHR website. The mentors willwork to achieve the following:• Provide general guidance, support

and advice.• Promote the exploration of career

possibilities within the minerals andmetals sector.

• Be a first point of contact for net-working within the industry.

• Act as a role model.Mentors should have excellent

communication skills, be open andtolerant, and, most importantly, theyshould possess an infectious love fortheir work and sector. They must bewilling to invest their time to inspireand engage. Research shows that men-tors realize great intrinsic value inguiding their protégés. They trulymake a difference.

The pride and gratification experi-enced by the mentor can also result inincreased retention of the mentors andin an improvement in their perceptionof their employer.“In organizations with mentoring pro-

grams there is a greater sense of belong-ing, loyalty, encouragement for allemployees to grow and be recognized bysomeone other than within their workinggroup.” 1

To ensure the best possibleresults, MiHR’s program willundergo a pilot phase with a specificfield of study (TBA) in 2008.Findings from the pilot will be incor-porated before broadening the par-ticipant base and expanding the pro-gram across the country. As with allMiHR projects, the virtual minementoring program will be devel-

1 Mentoring Programs in the Federal PublicService: Government of Canada. Found onlineat: http://www.psagency-agencefp.gc.ca/hr-rh/hrtr-or/mppssbp-pmespe1_e.asp#28.

oped under the guidance of anational steering committee that willinclude significant industry repre-sentation. The program will be cre-ated with industry for industry.

Collaboration and innovative initia-tives, such as the virtual mentoring


Review of measurement practices in the mining industry being conducted by Measurement Canada

Measurement Canada has begun a review of the rules and practices that govern the buying and selling of mineral and metal products and services based on measurement. We are inviting stakeholders, like you, to express their views on the level and type of involvement needed in this area.

If you would like to provide input on the role that Measurement Canada should take in your industry, please visit our website at www.mc.ic.gc.ca or contact Sam Stouros, Leader, Mining and Metals Trade Sector Review, at 613-952-2627.

This is a great chance to get involved and voice your opinions. We look forward to hearing from you!

Examen des pratiques de mesure dans l’industrie minière effectué par Mesures Canada

Mesures Canada a entamé un examen des règles et des pratiques régissant l’achat et la vente de produits minéraux et métalliques, de même que l’achat et la vente de services facturés en fonction de quantités mesurées. Nous invitons les intéressés, comme vous-même, à nous faire part de leurs commentaires et suggestions sur le niveau et sur le type d’intervention que vous jugez nécessaires dans ce domaine.

Si vous souhaitez vous exprimer sur le rôle que Mesures Canada devrait jouer dans votre industrie, veuillez consulter notre site Web à : www.mc.ic.gc.ca, ou communiquer avec Sam Stouros, chef de l’équipe d’examen du Secteur des mines et des métaux, au 613-952-2627.

Il s’agit là pour vous d’une « occasion en or » de participer et de faire entendre votre opinion. Nous espérons sincèrement votre participation à cette consultation!

program, are key to addressing the cur-rent labour shortage.

For more information on the MARS proj-ect or other MiHR initiatives, please visitwww.mihr.ca or contact Mel Sturk:[email protected]

CIM

eye on business


Coal demand and East Kootenay development

Favourable price outlooks for met-allurgical coal and coalbed methane(CBM) have reinforced interest in thesoutheastern corner of B.C. (EastKootenay) as an attractive area forexploration and development. The EastKootenay contains three coalfields(Crowsnest, Elk Valley, and Flathead),which together contain over 50 billiontonnes of coal and 19 trillion cubic feet(tcf) of CBM resource.1 Several compa-nies are active in the East Kootenayincluding Elk Valley Coal, WesternCanadian Coal, Cline Mining, and BPEnergy Canada. Cline is in the pre-application phase of the developmentof a metallurgical coal mine, while BPhopes to begin exploration on whatcould be a $3 billion CBM project inthe Crowsnest coalfield.

Two issues could affect future devel-opments. The first is the breakdown ofnegotiations between Montana andB.C. regarding developing a joint envi-ronmental framework for the FlatheadRiver ecosystem, an area in southernEast Kootenay that straddles Montanaand B.C.. The second is the potentialeffect of Pakootas v. Teck ComincoMetals, a decision in which a U.S.statute was held to apply against pollu-tion caused by an upstream, Canadian-based smelter.2

1 Globe and Mail, August 8, 2007, Report on Business. “B.C.’s coal bed dreams inch ahead amid border impasse.”2 Pakootas v. Teck Cominco Metals, Ltd., 452 F.3d 1066, 1066 (9th Cir. 2006).3 R.S.B.C., S.B.C. 2002, c.43. 4 The International Joint Commission (IJC) is an international body set up by the U.S. and Canada under the 1909 Boundary Waters Treaty which has sev-eral functions including: (1) assessing and approving applications for structures, such as dams, in border waters which could affect waters levels; (2) car-rying out studies (references) in regards to questions put to the IJC at the behest of one or both governments, often to determine whether a project vio-lates the U.S.-Canada Boundary Waters Treaty; and (3) acting to alert both countries of potential disputes and offering a mechanism within which the dis-pute can be discussed at a political level.

East Kootenay coal projectsAgitation by Montana against East Kootenay development and the U.S. Federal Court decision extending liability to Teck Cominco in Trail, B.C. by Darrell Podowski (Vancouver), Chuck Higgins (Toronto), with assistance fromAndrew Derksen, student-at-law (Toronto), Fasken Martineau DuMoulin LLP

Divergent approaches to environmental assessment

The British ColumbiaEnvironmental Assessment regime(BCEAA) is a two-stage process thatreviews projects on a case-by-casebasis.3 The pre-application stagefocuses on issue identification and isbased on consultations with interestedand potentially affected parties(Montana was a party in the pre-appli-cation stage of the Cline project). Thepre-application stage leads to a termsof reference document that is used forthe formal assessment application.

Montana believes the B.C. approachunder-evaluates ecosystem-wide dam-age from coal projects in the FlatheadRiver. It would like to see a joint scien-tific panel established for the trans-boundary watersheds of the Kootenayand Flathead river basins that wouldconduct a comprehensive, quantitativeassessment of baseline environmentalconditions of the trans-boundarywaters. Talks seeking consensus havebroken down and B.C. is continuingwith its stated approach.

However, a powerful coalition hasformed in opposition to the B.C.assessment and approval process. Inaddition to various Canadian and U.S.activist groups, Brian Schweitzer,Montana state governor, and MaxBaucus, U.S. senator and chairman ofthe Senate Finance Committee, have

spearheaded efforts to force B.C. tochange its assessment policy. Secretaryof State Condoleezza Rice has becomeinvolved and has requested a federalCanadian environmental assessment,as well as a federally brokered solutionto the negotiations. Even PresidentGeorge Bush, an erstwhile supporter ofcoal-based solutions to rising energydemand, spoke against Canadian-situ-ated Flathead River coal developmentprojects.

The International Joint Committee (IJC)

In addition to its political pressure,Montana has threatened to refer thedispute to the International JointCommission (IJC).4 Doing so wouldachieve little from a legal perspective,

Darrell Podowski

Chuck Higgins


eye on business

however. The IJC has no binding judi-cial powers. It can conduct fact-findinginvestigations, but its reports and rec-ommendations are non-binding. If B.C.wanted to continue with its currentenvironmental assessment process inthe Flathead River ecosystem, the IJChas no judicial means to prevent itfrom doing so.

While the IJC holds no inherentjurisdiction over B.C., the referenceprocess and the hearings associatedwith it could galvanize activists andpolitical opponents from B.C. andMontana and provide an effective ral-

lying point against coal and CBMdevelopment policies. Such a possibil-ity should not be underestimated: in1988, an IJC reference was releasedthat had been carried out on the pro-posed Cabin Creek coal mine, a pro-posed 2.2 million tonne per year ther-mal coal mine.5 The IJC determinedthat the proposed development wouldviolate Article IV of the BoundaryWaters Treaty between the U.S. andCanada, which says that “waters flow-ing across the boundary shall not bepolluted on either side to the injury orhealth or property of the other.” Thereport recommended that regulatoryapproval be denied until potentialtrans-boundary impacts were at a levelacceptable to both governments. Themine was never developed.

B.C. could ignore Montana or agreeto a compromise. A compromise couldinclude giving in to ecosystem-widebaseline standards. However, doing socould allow the U.S. to pressureCanada and B.C. in the future shouldbaseline comparisons indicate contam-ination. Such an outcome would sup-

5 “Impacts of a Proposed Coal Mine in the Flathead River Basin,” International Joint Commission: December 1988, Ottawa. 6 It should be noted that while the Ninth Circuit affirmed the lower court’s decision, it rejected the district court’s reasoning that CERCLA applied extra-

territorially. The Ninth Circuit found instead that CERLCA was not being applied extra-territorially because the “release” of hazardous substancesoccurred in the United States. The release had occurred after the slag had come to rest in the U.S. waters.

port U.S. arguments and U.S. ability topressure B.C. against the region’s coaland CBM projects.

The impact of Pakootas v. TeckCominco Metals: transboundary liability?

In Pakootas, The U.S.Environmental Protection Agency(EPA), under the ComprehensiveEnvironmental Response, Compen -sation, and Liability Act (CERCLA),had ordered Teck Cominco to carryout a remedial investigation feasibil-ity study on slag discharged from a

Canadians m e l t e rup theColumbiaRiver thath a dended up

in the U.S. and subsequently leachedheavy metals in U.S. waters. The U.S.Ninth Circuit Court affirmed the dis-trict court’s decision and found TeckCominco liable for slag discharged,despite the EPA having no obviousjurisdiction over Teck Cominco, aCanadian company. In coming to thisconclusion, the Court applied a three-part test for a finding of an extra-ter-ritorial origin of the source of dam-ages: first, that hazardous substance“be deposited, applied …placed orotherwise come to be located” on asite called a “facility” (the Court con-sidered the Columbia River to be a“facility”); second, that there be a“release” or threat of release of thesubstance from the facility into theenvironment; and third, that thedefendant belong to one of the fourcategories of persons who are subjectto CERCLA liability (such as corpora-tions).6

Whether such reasoning can beapplied to coal and CBM developmentshas yet to be determined. However, it ispossible that baseline data gathered as

a result of a baseline data agreementbetween Montana and B.C., or fromreference findings by the IJC, could actas evidence in the future to establishthat coal or CBM projects caused dam-ages in the U.S.—whether CERBA orotherwise.

ConclusionCoal and CBM companies, as well

as the government of B.C., will facesignificant political pressure from thevarious forces organized againstFlathead development, most notablythe U.S. State Department and theState of Montana, if B.C. andMontana do not agree to an assess-ment framework. While Montanapossesses no legal means from whichit can stop the B.C. preference ofapproving coal and CBM projects ona case-by-case basis, Montana couldask the State Department to refer aquestion to the IJC, which could leadto a report with IJC recommenda-tions. Such a report would not bebinding. However, the process of cre-ating the report could act as a catalystto various project opponents (U.S.government and both U.S. andCanadian NGOs), galvanizing themaround the issue, leading to mediaand public relations difficulties, andpressure upon the proponents and onthe B.C. government to change itsapproach and move towards theMontana proposal. Another issue thecoal and CBM companies will have toevaluate in the context of EastKootenay is the potential effect ofPakootas (if the case survives theappeal that has been launched byTeck Cominco to the U.S. SupremeCourt). An understanding of the lia-bility triggers created by the NinthCircuit Court could help coal andCBM companies in crafting appropri-ate early-stage strategies potentiallymitigating cross-border down-streamproblems in the future. CIM

Coal and CBM companies, as well as the government of B.C., will face significant political pressure from the various forces organized against Flathead development

student life

At the Martin-Luther-UniversityHalle, Germany, where I obtained myMaster’s in geology and paleontology,my professors pointed out that geolo-gists “have to go out into the field on therocks, feel them and talk to them, tounderstand the genesis and its relation-ship to tectonic and structure.” As I amnot an office person and as I like beingin the great outdoors, this suited meperfectly.

During my geology studies inGermany, I visited Canada twice andfell in love with this country. In myfinal year, Dr. Helmstaedt, at Queen’sUniversity, gave me the opportunity todo my degree mapping in the areaaround the Holleford meteorite craterin Ontario and, therefore, a furtherchance to study in Canada. When Isaw the PhD thesis advertisementfrom the University of NewBrunswick, I jumped at the chance.

My supervisor at UNB, David Lentz,suggested I attend the 12thQuadrennial International Associationon the Genesis of Ore (IAGOD)Symposium, which was held inMoscow, Russia, in August of last year.Thanks to funding obtained fromNSERC, Stratabound Minerals Corp.,First Narrows Resource Corp., andIAGOD, Dr. Lentz and I flew to Kiev toattend a nine-day pre-conference fieldtrip in the Ukrainian Shield and theCarpathian Mountains.

From Russia with goldby Sabine Vetter, 3rd year PhD student in geology, University of New Brunswick Fredericton

Forty participants from 13countries joined geologists fromthe Ukraine. We visited five dif-ferent gold mines, and looked atdrill cores and the surroundinggeology to understand the gene-sis of the deposits. The field tripgave me the chance to comparegold values with the golddeposits in my study area innorthern New Brunswick.

I highly recommend that allgeoscience students, as well asprofessional geoscientists, partic-

ipate in this type of field trip—compar-isons can be very valuable and lead to ascientific understanding of the diverseelements that influence geologicalprocesses. On the field trip, I jumped atthe chance to do what my professorshad always told me to do—carry outhands-on observation of rocks and par-ticipate in animated scientific discus-sions. It should be said that my idea ofscience and of teaching geology is,“Never totally trust another geologist.Learn to question what you are toldand taught.” Students have to learn tocompare their book knowledge withreal-world observations, voice theiropinions with their co-workers, profes-sors, and bosses to become skilledgeologists themselves. This conferencetaught me that students have to holdtheir own ideas and use their under-standing and enthusiasm at work.

My poster, which was entitled“Preliminary Comparison of Alterationand Mineralization of two Shear Zone-hosted Gold Occurrences, BrunswickSubduction Complex, New Brunswick,Canada,” garnered a lot of interest dueto the exponential climb of gold pricesover the past few years. During somevery interesting discussions with worldclass industry scientists and academics,I got objective feedback and fosteredpotential research linkages for my the-sis. Another student working under Dr.Lentz also attended the conference,

where she talked about her thesis. Shewas amazed at the feedback she gotfrom other scientists and members ofindustry. The scientists offered her sup-port and encouragement to pursue herstudies, and also recommended papersfor her to consider in the refining ofher thesis.

I believe it is very important to seeother mines, to network with explo-ration geologists and scientists fromaround the world, and to exchangeresearch ideas and knowledge. The ses-sions were very informative and gave mea summary about general ideas, as wellas starting points for more research andconcepts to include in my work. For usstudents, it was a great opportunity totalk to others, see excellent presenta-tions, present our research, and get feed-back. A ‘Doctor in Philosophy’ meansthat we have to share our ideas, defendthem against others, and be open forwhat we think is the right answer withthe knowledge at hand. Such confer-ences and field trips are the best time todo this with colleagues. Student partici-pation is very important, as we are thefuture geologists and geoscientists thatwill be making the “big” decisions in thefuture. People may ask, “Why is it neces-sary to go on such trips and confer-ences?” My answer is this: we, as scien-tists, do not live in a bubble. The worldand the people around us influence ourthoughts and ideas. Interaction with aninternational audience is essential forthe dissemination of scientific conceptsand ideas to a greater audience. Thisconference has given me the opportunityto voice my opinions, challenge mythought patterns, and interact with peo-ple who will no doubt be an inspirationand guide to me in the future.

I am grateful to Dr. Lentz for givingme the opportunity to present a posterat the IAGOD conference. As well, mystudies have been greatly enrichedthanks to the financial support fromindustry. CIM


Sabine Vetter

parlons-en

L’intérêt de la communauté minièrepour l’uranium connaît une montée ful-gurante au Québec, après 22 ans de rela-tive inactivité. Cet engouement pour l’u-ranium est lié directement à son prix surle marché au comptant (Spot market) quiconnaît une croissance depuis 2004 avecun sommet à 138 $US la livre en juillet2007. Il en résulte une augmentation desdépenses en exploration pour l’uraniumqui n’étaient que de quelques dizaines demilliers de dollars en 2000, de 1,36 M$et de 4,3 M$ en 2004 et 2005 respec-tivement, et finalement de 16 M$ en2006 (données réelles provisoires del’Insitut de la Statistique du Québec pour2006). Les dépenses en 2007 consacrées àla recherche d’uranium seront largementsupérieures à celles de 2006 selon lesprévisions des différentes compagniesactives sur le territoire québécois.

Les activités d’exploration pour l’ura-nium sont réparties sur une cinquan-taine de projets situés principalementdans le sud-ouest, le nord-est et le norddu Québec, dont :• au Témiscamingue (Kipawa), dans

les Laurentides (Mont-Laurier) et surla Côte-Nord (dont le secteur com-pris entre Baie-Johan-Beetz etNatashquan), dans la provincegéologique de Grenville;

• dans les bassins sédimentaires paléo-protérozoïques des monts Otish et de

Un été irradié au Québec : l’exploration pour l’uraniumpar Serge Perreault, adjoint au directeur général, Direction générale de Géologie Québec, Ministère des Ressources naturelles et de la Faune

la Fosse du Labrador (Orogène duNouveau-Québec) au nord-est deChibougamau et au nord deSchefferville respectivement;

• dans les roches archéennes et paléo-protérozoïques, du vaste territoirecompris entre la rivière Georges et lafrontière avec le Labrador, jusqu’à lacôte de la baie d’Ungava; et

• dans les roches archéennes de laBaie-James.

Le bassin d’Otish, l’Athabasca du Québec?

Le potentiel uranifère du bassin sédi-mentaire paléoprotérozoïque des montsOtish est souvent comparé avec celui dubassin sédimentaire mésoprotérozoïquede l’Athabasca en Saskatchewan (la pro-duction d’uranium dans le bassin del’Athabasca représente le tiers de l’ap-provisionnement mondial). Le bassindes monts Otish recèle plusieurs indicesuranifères typiques des gîtes d’uraniumassociés à des discordances. Plus d’unedizaine de compagnies majeures et jun-ior sont actives dans le secteur desmonts Otish. Les résultats prometteursobtenus par Ressources Strateco sur lapropriété Matoush mettent en relief lepotentiel des minéralisations du typefilonien associé à une zone de cisaille-ment dans des roches sédimentaires.

La région de la rivière Georges, un nouveau Rössing?

Le vaste territoire de la rivièreGeorge, au nord-est de Schefferville, estcomposé de roches archéennes et paléo-protérozoïques métamorphisées. Ce ter-ritoire représente une nouvelle cibled’exploration pour l’uranium, mis enévidence à la suite de la découverte dezones anomales en uranium dans lessédiments de fonds de lacs prélevés parle Ministère en 1997. De plus, les nou-veaux indices uranifères qui y ont étémis au jour au cours de 2006, par lescompagnies minières actives dans cette

région, laissent présager que ce vasteterritoire pourrait devenir une provincemétallogénique uranifère.

Pendant près de 750 millions d’an-nées, l’uranium a pu être mobilisé ettransporté lors d’épisodes d’érosion, dedéformation et de métamorphisme, puisdéposé et concentré sous la forme deminéralisations dans des roches sédi-mentaires, dans des granites et peg-

matites ou dans des pièges structuraux.Ainsi, le vaste territoire de la rivièreGeorge, représente un terrain fertilepour divers types de minéralisationsuranifères dont celles associées : • à des intrusifs granitiques de type

Rössing situé en Namibie (la mineRössing, du Groupe Rio Tinto, pro-duit 7,7 % de la production mondi-ale d’uranium);

• à des pegmatites du type Madawaska,en Ontario (production totale de4,54 tm à 0,0997 % d’U3O8 et de4.295.281 kg d’U entre 1957 et1982); et

• à de l’uranium filonien rattaché à deszones de cisaillement majeures detype Beaverlodge. Afin de faire le point sur l’exploration

de l’uranium au Québec, le comitéorganisateur de Québec Exploration2007 (du 26 au 29 novembre 2007 àQuébec) vous a concocté une sessionspéciale sur l’exploration de l’uraniumau Québec et dans l’est du Canada. CIM


Hélicoptère avec les instruments de mesures deradiométrie au décollage, région de Kangiqsualujjuaq,côte est de la baie d’Ungava.

engineering exchange

Make a plan and work to it!Sometimes you get lucky and some-times you don’t. In the early eighties,Colt Engineering made a strategic deci-sion to get involved in the oil sands;they believed that the oil sands were thefuture, and their decision paid off. Onthe flip side, there’s a certain Texas oilbaron who, in the late seventies, saidthat mining the oil sands would neverbe profitable, and opted out of invest-ing. He must be kicking himself now…

A powerful partnershipColt began its foray into the oil sands

by working for Syncrude. Larry Benke,managing director, WorleyParsonsCanada, was a project manager at thetime. “Since then, the company has par-ticipated and grown with the industry,successfully working on multiple proj-ects for several of the industry leaders.”

When Colt first arrived on the scene,Syncrude was moving away fromdraglines to the truck-and-shovelmethod of mining. That was a hugechange that contributed strongly tomaking the oil sands profitable. Today,the expanding mine faces are kilome-tres away from the processing plants,making the truck-and-shovel system,once so practical, potentially inefficienton its own. Cosyn, a division of Colt,worked with Syncrude in developingthe hydrotransport system to pipelinean oil sands slurry from truck “dumps”to the plants—again an enablingimprovement to the mining system.“The holy grail for the future,” Benkeexplained, “is to separate the sand fromthe oil right at the mine face, eliminat-ing the need to transport it at all.” Manyof the oil sands producers are nowexperimenting with various ways ofaccomplishing this.

In 1991 Colt secured an importantalliance with Syncrude, eventuallybuilding a dedicated team of 500 peopledubbed “CoSyn,” and devoted to

Making things better in the oil sands Colt Engineeringby Haidee Weldon

Syncrude’s sustaining capital projects.CoSyn’s I3 initiative is a special programthat encourages individuals to innovate—and recognizes them for it.The ideas that CoSyn’s people havecome up with have translated to annualcost savings for their customer in therange of $25 million per year.

An example is the replacement of“hard” metallurgy liners in the enor-mous bins and primary separation ves-sels. Traditionally, this involved cuttingout the old liner and welding in platesto create a new liner. Workers needed tospend long hours inside the bin, usingscaffolding to get to the bottom, andworking in a confined space. The for-ward-thinking people at CoSyndesigned a way to laser scan the vesselto get the exact dimensions. Once theyhad that data, a complete new linercould be prebuilt to spec and thenpopped into the bin. The result was amarked decrease in manhours spent atthe bottom of a vessel and less use ofscaffolding. They won a PresidentsSafety Award from Syncrude for lower-ing the risk to the employees, and justas importantly, shaved weeks off theturn-around time—something that’salways appreciated.

Colt Engineering is focused onassisting their customers in developingnew technology, or tweaking existingtechnologies, in the interest of improv-ing efficiency and to continue to drivedown the cost of mining the oil sands.These days, Colt is involved in a num-ber of projects related to managing tail-ings. By developing ways to maximizethe re-use of water, and speed up theprocess for recovering the sand compo-nent, less fresh water is required and theland can more quickly be returned to itsnatural state.

Multiple projects on the goColt has been a leader in applying

new geomatics technology to the oil

sands. Information is gathered viasatellite imagery, or other automatedmeans, and the data is thenprocessed to paint a picture of thesite. This technology can be used todevelop and manage mines or tomodel the progression of tailingsponds. “By overlaying on satelliteimagery, we can work out what theponds will look likeover the years,” Benkeexplained.

At Suncor, Colt engi-neers have been busy exe-cuting projects in tailingsand debottlenecking.They have also completed75 per cent of the engi-neering on a new extrac-tion plant and are con-ducting scoping studiesfor a potential new mine.Similarly, in a joint ven-ture with another engi-neering firm, Colt isdesigning the next expan-sion phase for theAthabasca Oil Sands proj-ect (a Shell, Chevron andMarathon joint venture).

Merging creates synergies

Colt’s recent mergerwith WorleyParsons hasbrought exciting syner-gies. New capabilitiesacquired throughWorleyParsons have givenColt a broader spectrumof knowledge and serviceofferings such as in-minematerials handling. HGE,part of the new family, is aminerals engineer activein Canada and globally.Benke is looking forwardto new possibilities: “Weare excited about working

78

engineering exchange

with HGE and expanding into a morediverse minerals capability.”

Colt is also now working closelywith FlintTransfield Services as part ofthe “One Team” alliance performingasset management services for Suncor.WorleyParsons and Transfield havebeen leaders in this combined engineer-ing and construction approach inAustralia. “We are thrilled to now bringthese ideas and concepts to the oilsands” says Benke.

In an age where technology isadvancing in leaps and bounds, it’s nice

to see that something you worked onover 20 years ago is still being usedtoday. In the mid-eighties, Larry Benkewas part of a team that designed somevery large modules that needed to betransported from Edmonton to theSyncrude site. The logistics challengewas to transport the 250-modules, andspecifically getting them over a bridgewith no more than half of thetruck/train on the bridge at any giventime. Much tinkering to the design wasnecessary before the truck/train andmodules were within the weight limits,

as well as long enough to go over thebridge. The entire procession set off,police escort and all, with the intentionof going through the town of FortMcMurray very early in the morning.To their surprise, the people of FortMac had gotten wind of this and turnedout to watch. “It was like a parade!”Benke exclaimed. Over the years, Benkehas witnessed similar hauling of largemodules and was recently surprised tosee the same bridge beams he utilizedfor his truck/train are still being used today. CIM

the supply side


As a result of a stronger growth inimports, compared to exports,Canada’s trade surplus narrowed to$37.2 billion in 2006. In fact, Canada’strade surplus in resources andresource-based products is now equiv-alent to the country’s entire globaltrade surplus.

Resources, along with merger andacquisition activities in a variety of sec-tors, were the primary drivers of thesurge in foreign direct investment(FDI) flows into Canada in 2006,which reached $78.3 billion, more thandouble the $35.0 billion witnessed theprevious year. If I recall correctly, thesale of Inco and Falconbridge aloneamounted to over half of the 2006 FDIinto Canada.

The report makes a special note ofthe rise of global value chains. Theworld is moving away from shipping

goods manufactured in one country toa destination in another. Rather, tradeis increasingly in incremental inputsand services, and investments are madefor location-specific advantages which,in turn, feed into regional or globalproduction networks.

In his introductory message, DavidEmerson, Minister of International Tradesaid, “On the global front, we are being

The 2007 annual reportentitled Canada’s State ofTrade – Trade andInvestment Update is available online at

www.international.gc.ca/eet. It is acomprehensive 70-page documentabout where the government thinksCanada stands in the world of trade.Here is a brief review with a focus onthe contribution of the miningindustry.

For Canada’s international commer-cial performance, 2006 was, to a largeextent, a resource story. AlthoughCanadian exports were up by 1.1 percent to a record $523.7 billion, Canadawould have seen a decline in overallexports in 2006 if it were not for thehigh prices realized for exports ofresources and resource-based products.The expansion of resource exports wasalso largely responsible for Canadianexports diversifying away from the U.S.as their share of our exports fell to 81.6per cent, compared to a peak of 87.1per cent in 2006.

The state of Canada’s trade—thank God for natural resources!by Jon Baird, managing director, CAMESE

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

outpaced by our competitors: not just byfast-growing emerging economies likeChina and India, but also by our moretraditional competitors such as the U.S.and Europe, who are aggressively pursu-ing international policies to strengthentheir competitive advantage.”

Minister Emerson refers to thegovernment’s Advantage Canada ini-tiative, including the GlobalCommerce Strategy that was men-tioned in the spring budget. As far asI can see, as yet without any specificsannounced, these plans are still in themaking. In the meantime, here is aquote from the July 4, 2007 issue ofEmbassy, Canada’s Foreign PolicyNewsweekly:

“Senior foreign affairs and tradeofficials are working overtime todefend the department’s existing pro-grams and strategies and prove they

are on board with the Conservativegovernment. The priority is to findways to support the government’sfocus on Afghanistan, North America,and the Hemisphere, as well as grow-ing and emerging markets, especiallyChina and India, while fitting in $42million in cuts and outlining toTreasury Board why its resources areallocated where they are.” CIM

Senior foreign affairs and trade officials are working overtime

to defend the department’s existingprograms and strategies

and prove they are on board with the Conservative government

standards


Quality assurance (QA) and qualitycontrol (QC) are the two major compo-nents of any quality management system.According to ISO’s definition, QA is “the assembly of all planned and sys-tematic actions necessary to provide ade-quate confidence that a product, process, orservice will satisfy given quality require-ments,” and QC refers to “the system ofactivities to verify if the quality controlactivities are effective.” While QA dealswith prevention of problems, QC aims todetect them, in the event that they occur.

In practical terms, geological qualitycontrol procedures are intended tomonitor precision and accuracy of theassay data, as well as possible samplecontamination during preparation andassaying.

NI 43-101 Standards of Disclosurefor Mineral Projects requires explo-ration and mining organizations withCanadian investors to report theirQA/QC program. The relevant sectionsare as follows.

Section 3.3 of NI 43-101 –Requirements Applicable to WrittenDisclosure of Exploration Information:The issuer (company) must include adescription of the quality assurance pro-gram and quality control measures appliedduring the execution of the work beingreported on.

Section 1.5 of Companion Policy43-101CP provides guidance to a

qualified person classifying a min-eral deposit as a mineral resourceor mineral reserve to follow theEstimation of Mineral Resourcesand Mineral Reserves Best PracticeGuidelines adopted by CIM. Thesection relevant to QA/QC in thoseguidelines follow.

The resource database–QA/QC:This program should be concernedwith, but not limited to data verifi-cation, drill sample recovery, sample

size, sample preparation, analyticalmethods, the use of duplicates/blanks/standards, effects of multipleperiods of data acquisition and consis-tency of interpretation in three dimen-sions.

Item 15 of Form43-101F1 TechnicalReport – SamplePreparation, Analy-ses, and Security.Describe samplepreparation meth-ods and qualitycontrol measuresemployed beforedispatch of samplesto an analytical ortesting laboratory,the method orprocess of samplesplitting and reduc-tion, and the secu-rity measures takento ensure the valid-ity and integrity ofsamples taken.Include: • A summary of

the nature andextent of allquality controlmeasures em-ployed andcheck assay and

other check analytical and testingprocedures utilized, including theresults and corrective actions taken.

• A statement of the author’s opinion onthe adequacy of sample preparation,security, and analytical procedures.

Internal lab proceduresCompetently managed laboratories

have their own internal QC protocols,and the assay certificates commonlyinclude the results of at least some ofthe internal laboratory QC. However,laboratories will commonly revealthose checks that pass their internalcontrols, but not the failures. Results ofbatches that fail laboratory QC are re-

Quality control reporting requirements by the mining industryby Armando Simón, principal geologist, AMEC International (Chile) S.A., and Greg Gosson, technical director, geology and geostatistics, AMEC Americas Limited


standards

run, and the re-run results, along withnew passing QC results, are reported.Thus the laboratory QC provides a pic-ture of what the laboratory considersacceptable performance, rather than adirect measurement of the quality.Independent measurements of the dataquality are typically poorer than the QCreported by the laboratory because theydetect some instances of poor perform-ance that slipped through the labora-tory QC. How different these resultsare depends upon how effective the lab-oratory QC was at eliminating poorperformance. Thus the external QCprovides an assessment of the efficacyof a laboratory’s QC, as well as an inde-pendent assessment of the data quality.

AMEC regards sole reliance on theinternal laboratory QC as unacceptablepractice. This has been proven byAMEC’s direct experience in revealingdeceptive practices by laboratories gen-erally considered to be ‘professional.’

Regardless of the intentions of labora-tory management or laboratory ownermanagement, the incidence of poor sam-ple preparation practices and unreportedblank, duplicate, and Certified ReferenceMaterial (CRM) failures is actuallyhigher than commonly acknowledged.

Quality control in the real worldAMEC’s experience with numerous

recent audits and due diligence studiesconducted on projects in SouthAmerica, Asia, Africa, North America,and Europe (many of them managed byNorth American and Australian explo-ration and mining companies) indicatethat comprehensive geological qualitycontrol programs are still infrequent.Out of 26 projects from South Americaand Europe audited or reviewed byAMEC between 2003 and 2007, onlyfour had established QA/QC programsthat would allow precision and accu-racy to be properly assessed.

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Additional evidence comes from arecent review of industry QA/QCpractices in NI 43-101 technicalreports. AMEC could not find rele-vant details on QA/QC programs inhalf of the consulted SEDAR-filedtechnical reports.

Although the overall cost increase ofthe implementation of a QA/QC pro-gram is relatively small, usually notexceeding one to two per cent of thetotal exploration costs, the percentageincrease to the assay budget evokes anegative response by the cost-con-scious company.

As a result of disclosure standards inplace and the expected scrutiny by duediligence providers for investmentbanks in support of a finance, juniorand major companies should beincreasingly interested in implement-ing effective QA/QC programs.Confidence in the analytical data man-dates it. CIM

cim newsAerkar, Chaitanya, QuébecAfshar, Fred, OntarioAloi, Dina, OntarioArcher, Paul, QuébecArrieta, Barbara, QuébecBarber, Michael, OntarioBarczak, Thomas, USABastien, Brad, OntarioBeaudin, Jean, QuébecBeaudoin, Marcel, QuébecBelanger, Julie, QuébecBellhouse, Erika, OntarioBenny, Jean-Sebastien, QuébecBilodeau, Carl, QuébecBissiri, Yassiah, OntarioBlacksmith, Jack R., QuébecBoivin, Suzel, QuébecBolduc, Nicolas, QuébecBonnet, Anne-Laure, QuébecBoucher, Marie-Eve, QuébecBoulianne, Tommy, QuébecBourassa, Yan, OntarioBourgault, Eve, QuébecBoutin, Mathieu, OntarioBowerman, Darcy, OntarioBoyd, Ramon, SaskatchewanBrown, Wayne, OntarioCacchion, Frank, QuébecCantin, John L., OntarioCataford, David, QuébecCauchon, Alain, QuébecChampagne, Michel, QuébecCharuk, Jan G., QuébecChehab, Dania, OntarioChiasson, J.P., OntarioClarke, Robert, OntarioColinet, Jay, USAConiconde, Edwin, OntarioCorbeil, Robert, QuébecCoté, Alaine, Québec

Courville, Allan, OntarioCoxford, Richard, OntarioDacunha, Ivor, OntarioDahata, Nilesh, Ontariod’Amours, Mathieu, QuébecDasyam, Nagender, OntarioDavid, Jean-Sebastien, Québecde Bakker, Jan, OntarioDe Chavigny, Benoit, QuébecDerycke, Virginie, QuébecDiagana, Bocar, QuébecDifrancesco, Robert, USADonovan, Jaimie, OntarioDoucet, Roger, OntarioDrouin, Paul, QuébecDubé, Mathieu, QuébecDubé, Benoît, QuébecDubuc, Andre, QuébecDufour, Carl, QuébecDutil, Jack, QuébecEastwick, Doug, OntarioEdmin, Roger, OntarioEither, Jean, OntarioFairchild, Jamie, OntarioFatehi, Arya, QuébecFeghali, David, QuébecGaetan, Raymond, OntarioGagnon, Pierre, QuébecGarbutt, Mike, OntarioGauthier, Pierre, QuébecGeitz, Matt, OntarioGilbert, Patrice, OntarioGogal, Jason, SaskatchewanGonzalez, Jorge Eduardo Martin,Ontario

Gorjian, Masoud, OntarioGrenier, Richard, QuébecGuy, Jean-Sebastien, QuébecGwizdkowska, Liliana, QuébecHalder, Achinta, Ontario

Hamel, Alan, QuébecHerzog, Ricardo, OntarioHosseini, Zahra, QuébecHunter, Richard, OntarioJacobsen, Hans, QuébecJafari, Rouzbeh, QuébecJohnson, Jeffery C., USAJoly, Mario, QuébecJorgenson, John, USAKampe, Henry S., OntarioKasuya, Hatsue, OntarioKhoury, Sam, OntarioKocsis, Charles, OntarioKrogman, Jim, USALabonté, Marcel, QuébecLacroix, Roger, QuébecLaflamme, Marcel, QuébecLafleche, Andre, QuébecLandry, Jean-Pierre, QuébecLangevin, Frederic, QuébecLaplante, Benoit, OntarioLapointe, Emilie, QuébecLapointe, Bernard, QuébecLavoie, Yolaine, QuébecLaycock, Andrew, OntarioLetourneau, Michel, QuébecLevesque, Sylvie, QuébecL’Heureux, Marc, QuébecLilly, Gus, USALive, Patrice, QuébecLuo, Jun, OntarioMacaskill, Leonard, OntarioMacDonald, Claude, QuébecMacPherson, George, OntarioMariglia, Carlo, OntarioMartin, Barbara, QuébecMatyas, Gabor, QuébecMcLaughlin, Bob, OntarioMillier, Linda, QuébecMischler, Steven, USA

Miville-Deschenes, Denis, QuébecMoe, Denis, OntarioMonast, Patrice, QuébecMulligan, Catherine N., QuébecNakai-Lajoie, Patti, OntarioNascimento Leite, Andre, QuébecOliazadeh, Manochehr, OntarioPabst, Thomas, QuébecPaquet, Johanne, QuébecParker, Norman, QuébecPauzé, Louis, QuébecPauzé, François, QuébecPeloquin, Louis, QuébecPetukhov, Andrey, SaskatchewanPlante, Benoit, QuébecPohl, Daniel, OntarioPoxleitner, Gary, OntarioPrivé, Michel, QuébecProudfoot, Dawson, OntarioProulx, Eric, QuébecRaymond, Jocyelyn, QuébecRaymond, Jasmin, QuébecRaynald, Jean, QuébecReyes, Juan Carlos, OntarioRioux, Martin, QuébecRogers, Brad, USARowson, Lloyd, SaskatchewanRoy, Yoan, QuébecSafizadeh, Fariba, QuébecSavoie, Armand, QuébecScheepers, Rene, SaskatchewanShaw, Catherine, OntarioShierman, Mark, OntarioSimard, Jean-Marc, QuébecSnyder, Gregg, OntarioStochmal, Michael, OntarioSullivan, Tim, USASultan, Safdar, OntarioTang, Baoyao, SaskatchewanTesarik, Douglas R., USAThibault, Michel, QuébecThurston, Malcolm, OntarioTimusk, Markus, OntarioTremblay, Enrick, OntarioTremblay, Eric, QuébecUddin, Salah, QuébecVachon, Bernard, QuébecVadjaraganian, Fanny, QuébecValeyev, Oleg, OntarioVankempen, Terry, OntarioVan Koppen, Marten, OntarioVignola, Jacques, QuébecWaldie, Scott, OntarioWalker, John, OntarioWaram, Ryan, OntarioWedzicha, Jerry, OntarioWetelainene, Henry, OntarioWhittom, Jacques, QuébecWiebe, Susan, OntarioWilhelmy, Jean-François, QuébecWilliams, Ted, USAWilliamson, Miranda, OntarioWillis, Luke, OntarioWyeth, Jeremy, OntarioZahovskis, Christopher, Québec

Corporate MembersNorth Fringe Resources Inc.

CIM welcomes new members

A look back in time35 YEARS AGO…• Readers learned of the newly formed committee within CIM on computer applications

and process control.• M.W. Bartley resigned as president-elect of CIM. He was replaced with J.P. Nowlan.• The 24th Canadian Conference on Coal featured presentations and discussions on the

present and future potential for Canadian coal in the international coal market.• Winners of the annual Student Essay Competition were M.J.E. Hughes, B.H. Sanden, and

D.L. Sangster.• The CIM Bulletin reported on the discovery of the Star of Sierra Leone, a 2 1⁄2 by 1 1⁄2 inch

diamond weighing 968.9 carats. • Saskatoon played host to the Annual Western Meeting; its theme was western minerals in

the computer age.• Raymond Price was appointed head of the Department of Geology Sciences at Queen’s

University.• CIM Bulletin readers learned of F.A. Forward’s death. He served as president of CIM for the

1965-1966 term.

The above was taken from the September and October 1972 issues of CIM Bulletin.


Design and Installation of the World’s LargestFriction HoistDavid W. Butler | Cook Engineering, Thunder Bay

Developing the Orogenic Gold DepositModel: Insights from R&D for ExplorationSuccessDavid R. Lentz | University of New Brunswick, Fredericton

Holistic and Sustainable Mining TechnologyDouglas M. Morrison | Golder Associates, Toronto

Engaging First Nations CommunitiesGlenn K. Nolan | Missanabie Cree First Nation, Missanabie

Conception et installation de la plus grossemachine à extraction à poulie d’adhérence(Koepe) au mondeDavid W. Butler | Cook Engineering, Thunder Bay

Développement du modèle de gisement d’ororogénique : aperçus d’exploration réussie àpartir de recherche et développement (R&D)David R. Lentz | Université du Nouveau-Brunswick, Fredericton

Technologies minières holistiques et durablesDouglas M. Morrison | Golder Associates, Toronto

Engagement des communautés des Premières NationsGlenn K. Nolan | Première nation crie Missanabie, Missanabie

CIM Distinguished LecturersThe Distinguished Lecturer Programprovides members with up-to-date, relevant information by outstanding speakers.

Éminents conférenciers de l’ICMLe Programme des éminentsconférenciers offre aux membres de l’ICM de l’information pertinente et courantegrâce à des conférenciers hors pair.

Sponsored by / Commandité par:

David W. Butler David R. Lentz

Douglas M. Morrison Glenn K. Nolan

David W. Butler David R. Lentz

Douglas M. Morrison Glenn K. Nolan

20082007

CIM EVENTS

World Gold 2007In conjunction with AusIMM and SAIMMOctober 22-24Cairns, AustraliaContact: Alison McKenzie, AusIMMTel.: +61.3.9662.3166Fax: +61.3.9662.3662 Email: [email protected]: www.ausimm.com

Mineral Resources Review 2007November 1-3St. John’s, NewfoundlandContact: Len MandvilleTel.: 709.729.6439Fax: 709.729.3493Email: [email protected]

Calgary Branch Technical MeetingNovember 12Calgary, AlbertaContact: Andrew HickinbothamTel.: 403.267.3891Email: [email protected]

CMP40th Annual Canadian Mineral Processors Operators’Conference/40e Conférence des minéralurgistes du CanadaJanuary 22-24, 2008Ottawa, OntarioContact: Janice Zinck Tel.: 613.995.4221Fax: 613.996.9041Email: [email protected]: www.c-m-p.on.ca

MEMOMaintenence Engineering-Mine Operators’ Conference/Colloque sur l’ingénierie de maintenance et les exploitationsminièresFebruary 24-28, 2008Val-d’Or, QuébecContact: Chantal Murphy, CIMTel.: 514.939.2710, ext. 1309Fax: 514.939.2714Email: [email protected]

CIM Conference and Exhibition—Edmonton 2008May 4-7, 2008Edmonton, AlbertaContact: Chantal Murphy, CIMTel.: 514.939.2710, ext. 1309Fax: 514.939.2714Email: [email protected]

AROUND THE WORLD

Mining and the Environment IV InternationalConferenceOctober 20-27Sudbury, OntarioContact: Jackie Richard, conference coordinatorTel.: 705.675.1151, ext. 2014 Fax: 705.675.4866Email: [email protected]: www.sudbury2007.ca

Flotation ‘07November 5-9Cape Town, South Africa Contact: B.A. WIllsTel.: +44.7768.234121Fax: +44.1326.318352Email: [email protected]: www.min-eng.com/conferences

4th International Seminar on Deep and High StressMiningNovember 7-9Perth, Western AustraliaContact: Josephine Ruddle, marketing managerTel.: +61.8.6488.3300Fax: +61.8.6488.1130Email: [email protected]

NEWGENGOLD2007November 14-16Perth, Western AustraliaContact: Kay Matheson, marketing & conference managerTel.: +61.8.9321.0355Fax: +61.8.9321.0426Email: [email protected]

American Mining Hall of Fame BanquetDecember 1Tucson, ArizonaContact: Jean Austin, office managerTel.: 520.577.7519Fax: 520.577.7073Email: [email protected]

SWEMP2007December 11-13Bangkok, Thailand Contact: Raj Singhal, symposium chairTel.: 403.239.3849/403.461.2981Fax: 403.241.9460Email: [email protected]: www.mpes-cami-swemp.com

CA

LE

ND

AR


du 24 au 28 février 2008 | Val-d’Or, Québec | February 24 to 28, 2008

www.cim.org/memo2008

2020towards

Workingtogether

Operation and Maintenance: A winning synergy for the futureModerator: Jacques Nantel

A plenary session featuring five distinguished mining industry veterans is scheduledfor the second day of the technical program. These mining experts will share theirvision of a vital synergy, essential for successful operations and maintenance practices.

Our panel of keynote speakers will be led by Jacques Nantel, president, NantarEngineering. His expertise and knowledge of the mining industry will allow for a stim-ulating exchange between the panellists and those in attendance, who will be invitedto actively participate.

Our keynote speakers are as follows:Jacques Perron, senior vice president, Americas, IAMGOLD Corp. Daniel Racine, vice president of operations, Mines Agnico-Eagle Claude Lemasson, general manager - projects, Canada/USA, Goldcorp Inc. Neil Miller, manager, maintenance and performance contracts, USA andCanada, Sandvik Andrew Thorne, general manager, Fuel Services Division, Port Hope,Ontario facility, Cameco Corp.

Production et maintenance : Une synergie gagnante pour l’avenirModerateur: Jacques Nantel

Une plénière réunissant cinq personnalités reconnues pour leur expérience par lesgens de l’industrie minière, se déroulera lors de la deuxième journée du programmetechnique. Ces experts du domaine minier ont accepté de partager leur vision sur lasynergie vitale et essentielle des fonctions de maintenance et d’exploitation.

Pour bien encadrer ce panel de vedettes, Jacques Nantel, président, NantarEngineering, agira à titre de modérateur. Son expertise et ses connaissances dudomaine minier permettront de stimuler les discussions entre les panélistes et l’assis-tance qui sera appelée à participer activement.

Voici nos vedettes :Jacques Perron, vice-président principal, Amériques, IAMGOLD Corp. Daniel Racine, vice-président, exploitation, Mines Agnico-Eagle Claude Lemasson, directeur général, projets, Canada/États-Unis, Goldcorp Inc. Neil Miller, directeur, offre de services, États-Unis et Canada, Sandvik Andrew Thorne, directeur général, Division des services de combustible,Ontario, Cameco Corp.

2020versTravailler

ensemble

Upcoming 2007 Seminars• Mineral project evaluation techniques and applications: From conven-

tional methods to real options September 11-14, MontrealMichel Bilodeau, McGill University, Canada and Michael Samis, AMEC,Canada

Learn the basics of economic/financial evaluation techniques, as well as thepractical implementation of these techniques to mineral project assess-ments. Learn:• How to gain a practical understanding of economic/financial evaluationprinciples.

• How to develop the skills necessary to apply these to support mineral proj-ect decisions.

• About the real options approach to valuing mining projects.

• Geostatistical mineral resource/ore reserve estimation and meeting thenew regulatory environment: Step by step from sampling to grade con-trolSeptember 24-28, MontrealMichel Dagbert, Geostat Systems Int, Canada; Jean-Michel Rendu,Consultant, USA; and Roussos Dimitrakopoulos, McGill University, Canada

Learn about the latest regulations on public reporting of resources/reservesthrough state-of-the-art statistical and geostatistical techniques. Learn howto: • Apply geostatistics to predict dilution and adapt reserve estimates to thatpredicted dilution.

• Learn how geostatistics can help you categorize your resources in an objec-tive manner.

• Understand principles of NI43-101 and SME Guide.

• Theory and practice of sampling particulate materials October 1-3, MontrealDominique François-Bongarçon, AGORATEK, USA

Develop an understanding of the theory of sampling particulate materials,its practice, scope, limitations and appropriate applications. Learn:• Eye-opening facts you may have overlooked or ignored until now aboutthe consequences of bad sampling and the difficulties of good sampling.• The unsuspected amplitude of economic ramifications of poor sampling.

STRATEGIC RISK QUANTIFICATION

and MANAGEMENT for ORE RESERVES

and MINE PLANNING

Upcoming 2008 Seminars

• Applied risk assessment for ore reserves and mine planning: Conditionalsimulation for the mining industryMay, MontrealRoussos Dimitrakopoulos, McGill University, Canada

• Strategic risk management and applied optimization in mine designMay, MontrealDavid Whittle, BHP Billiton, Australia; Roussos Dimitrakopoulos, McGillUniversity, Canada; and Manuel Arre, Gemcom Software Int., Canada

• Computer simulation and animation for the mining industry: Minedesign, mine planning and equipment selection June, MontrealJohn Sturgul, University of Idaho, USA

2007PROFESSIONALDEVELOPMENTSeminar Series

For information please contact:Delores LaPrattDepartment of Mining, Metals and Materials EngineeringMcGill University, Montreal, QCEmail: [email protected]: 514.398.4755, ext. 089638Fax: 514.398.7099Website: www.cim.org

For registration please contact:Chantal MurphyMeeting Coordinator, CIMSuite 855, 3400 de Maisonneuve Blvd., WMontreal, QC H3Z 3B8Email: [email protected]: 514.939.2710, ext. 1309Fax: 514.939.2714Website: www.cim.org

Mining Engineering

TIME SESSIONHR: Managing the greatest resourcesMon PM Health and SafetyTues AM1 Human ResourcesTues AM2 Human ResourcesTues PM Strange Bedfellows, Unusual PartnershipsWed AM1 The Student-Industry PartnershipWed AM2 First Nations and Mining

Prospects for a strong futureMon PM Community EngagementTues AM1 GeologyTues AM2 GeologyTues PM GeologyWed AM1 Effective Risk Management for Mining ProjectsWed AM2 New Practices for Sustainable Operations

Operational excellenceMon PM New Developments in Oil SandsTues AM1 Uranium: Great Power in SaskatchewanTues AM2 New Projects in Industrial Minerals and PotashTues PM New Operations Creating Wealth in BCWed AM1 World-class Metal MiningWed AM2 The Global Coal Industry

The tools to build onMon PM Towards Zero EmissionsTues AM1 New Practices in Environmental ManagementTues AM2 Realizing Savings through Energy ManagementTues PM Next Generation Technology: the Future of MiningWed AM1 Innovative Products and SolutionsWed AM2 Innovative Products and Solutions

Process improvementMon PM Improving Onsite ReliabilityTues AM1 Rock EngineeringTues AM2 Rock EngineeringTues PM SMART-led ForumWed AM1 Innovation Forum: Creating a Sustainable FutureWed AM2 Innovation Forum: Creating a Sustainable Future

CIM Conference and ExhibitionEdmonton, AlbertaMay 4–7, 2008

www.cim.org/edmonton2008

Last call for submissions to technical programThe abstract submission deadline is September 30, sogo online to www.cim.org/edmonton2008 and getyours in today. This is your chance to share yourknowledge with peers throughout the industry. Thetechnical session topics are outlined below.

Placer MiningTotal gold production from California has been estimated by Böhlke to be

about 115 million ounces (3,575 tonnes), of which approximately 60 per centcame from placer deposits. Most of the placer gold was derived from the erosionof lode gold deposits that occur in the three main quartz vein camps—theMother Lode at the south end, the Grass Valley camp in the middle, and theAlleghany camp to the north. They form a belt that is situated on the westernslopes of the Sierra Nevada Mountains and lies close to, and roughly parallels,the west side of the Sierra Nevada Batholith. Hydrothermal micas from the quartzveins have given K-Ar dates from the end of the Jurassic Period (144 to 145 Ma;Ash, 2001). Erosion during the Cretaceous Period removed as much as threekilometres from the metmorphic roof of the batholith. The coarser alluvial goldmined during the early years of the Gold Rush was trapped by bedrock riffles rel-atively close to its source,whereas the finer gold was transported for muchgreater distances and some eventually reached the sea, which occupied the GreatValley during the Tertiary Period. Approximately 75 per cent of the placer goldwas found in Quaternary gravels; the balance occurred in gravels of Tertiary age(Jenkins and Wright, 1934).

California placer mining evolved through three different phases, the first ofwhich employed traditional gold pans, sluice boxes, and toms (screened hop-pers). This technique was most applicable to paystreaks lying close to bedrockunder thin gravel cover. About 12 million ounces (370 tonnes) were recoveredin this way during the first five years. As production of the easiest gold began todecline, larger sluice boxes and diversion dams were needed and the operationsbecame more labour-intensive. As a result, corporations with large workforcesbegan to appear.

As the amount of gravel that had to be moved began to exceed what could behandled by that approach, placer gold mining entered an industrial stage calledhydraulic mining. It used the abundant water resources in the region to cheaplyremove thicker deposits of younger gravel that covered the paystreaks and washit through ever larger sluice boxes. Hydraulic mining was first introduced in

March 1853 at American Hill, near Nevada City, inthe Grass Valley camp. Although many peopleclaim to have invented this technique, Californianshave always regarded its father to be a miner,Edward Mattson, with assistance from AnthonyChabot, a sailmaker, and Eli Miller, a tinsmith(Young, 1970).

Hydraulic mining required ditches and woodenflumes to transport water, in some cases for con-siderable distances. When the water reached themining area, it was directed at the gravel faceusing high-pressure hoses, ball-and-socket joints,and nozzles (also called monitors, or giants). By1859, about 9,150 kilometres of canals, ditches,and flumes had been constructed at a cost of$13.5 million, and by 1865, gravel deposits asthick as 150 to 250 metres were being attacked.An estimated 11 million ounces of gold (340

historyDuring the decade of the 1850s, gold mining changed froma treasure hunt to an industry. While shovelling

dirt into their toms and sluices, many miners

could hear the steady thumping of giant stamp

mills crushing gold-bearing ore dug by wage-

earners in underground tunnels. In contrast to

partners engineering their own dams and

ditches to deliver a stream of water, hydraulic

mining corporations purchased millions of

gallons every day from heavily capitalized

water companies… These mining efforts—

some stubbornly primitive, others

experimentally sophisticated—employed one

hundred thousand men year after year…

Never had there been a frontier so quickly

industrialized, employing such a force of

educated and skilled workers, all of them

dependent on one elusive and curious

commodity—as was the entire economy of

California(HOLLIDAY, 1999, P. 151).

California gold (Part 1)by R.J. “Bob” CathroChemainus, British Columbia


Dredge tailings, Bonanza Creek, Yukon

tonnes) were recovered by hydraulic mining, but at a con-siderable cost in environmental degradation. By 1880,more than 125,000 hectares of farmland and settlementshad been buried or severely damaged by the outwash, andthe resulting protest led to a ban on hydraulic mining inJanuary 1884. Although the introduction of strict new reg-ulations on the disposal and storage of gravel resulted inthe ban being partially rescinded in 1893, the days ofhydraulic mining were essentially over. As it declined, itsextensive water supply system became the basis of theearly California power and irrigation networks (Hill,1926; Parmelee, 1934)

During the removal of the overlying Quaternary gravels,it was discovered that the modern drainage system wasquite different in many places from the Tertiary pattern.Many of the Tertiary streams had been disrupted by rapiduplift or buried under volcanic flows that preserved themfrom erosion. As a result, many buried gold-bearing Tertiarypaystreaks were discovered and mined underground usingconventional timbered drifts. This work took place mainlybetween 1876 and 1890 until rising costs of labour and tim-ber made it uneconomic.

In order to extract the fine gold from the bed of thelarger streams and rivers, a third type of industrial miningwas developed. Early attempts to use steam shovels wereunsuccessful and the solution proved to be the dredge,which was essentially a floating sluice box. The first prim-itive prototype had been built about 1867 on the CluthaRiver in the Otaga gold district of New Zealand, whichhad been discovered six years earlier. Plans for a largermodel were brought to California by R.H. Postlethwaite,who had it built by the Risdon Iron Works in SanFrancisco. His new dredge began to work on the FeatherRiver near Oroville in the spring of 1898. By 1902, O.B.

Perry, of the Indiana Company,had a much improved modelbuilt by the Bucyrus Company(machinery) and Griffin &Cameron (dredge) for work onthe Yuba River. This designbecame known as the Californiadredge. By 1910, 72 dredgeswere working on the Yuba,Feather, American, Bear, andother tributaries of theSacramento and San Joaquinrivers, which occupy the CentralValley. Similar dredges weresoon shipped elsewhere, includ-ing the Klondike Gold Field,Yukon Territory, in 1905.

Dredges are scow-like sluic-ing plants weighing up to 800tonnes that float on ponds inthe creek bed, which they carry

with them as they work. Digging is done with a continu-ous bucket-line that scoops up gravel and the uppermetre or so of bedrock, and discharges it into a hopperinside the dredge. This material is then fed into a revolv-ing, inclined screen drum where it is washed, sorted, andpassed through sluice boxes and tables, where the gold iscollected. The remainder is carried out the back of thedredge on a conveyor belt and stacked in the creek bedbehind the dredge. Powerful winches are used to raise orlower the bucket line and to manoeuver the dredge fromside to side in the creek valley using cables attached toanchors on the shore. The dredge pivots in an arc on ahuge steel pin, or spud, which has to be lifted when thedredge advances for the next cut. Dredges were able tomine profitably in gravel worth only 10 or 15 cents percubic yard because they operated with a small crew andwere remarkably productive.

The success of dredge mining was due, in large part, to improvements developed in California, including manganese-steel lips on the buckets, the belt conveyor orstacker to dispose of tailings, electrification, and improvedelectrical equipment. The size of the dredges was steadilyincreased to permit deeper digging. Bucket sizes, whichwere 3.5 to 5 cubic feet in 1901, had increased to 13 cubicfeet by 1910. By 1934, buckets with a capacity of over 18cubic feet were used to mine at depths of more than 30metres below creek level (Romanowitz & Young, 1934;Green, 1977). Dredging ended in California in 1968 and isuncommon everywhere now because most large depositsof gold- or tin-bearing gravel have been mined, andbecause of environmental objections (the valley floors takea very long time to revegetate). It has been estimated thatabout 20 million ounces (645 tonnes) of gold were recov-ered by dredging.

geology


Dredge on Trinity River. From the Eastman’s Originals Collection. Courtesy of the University of California, Davis.

Lode MiningThe California gold belt was

one of the first major mineraldistricts in the world that wassubjected to systematic andintensive ‘modern’ geologicalresearch while mining wasunderway, a process thatextended for over a century andinvolved many of the pioneereconomic geologists in NorthAmerica. Studies of the distribu-tion and genesis of the deposits in three dimensions andpetrological research of hydrothermal alteration were sig-nificant advances in the science.

It is important to remember how much was learned amere 50 years after Sir Robert Impey Murchison, the seconddirector of the Geological Survey of Great Britain (1855 to1871) who was considered the the English authority ongold, had expounded his unscientific theories. For exam-ple, he wrote that) deep mining for gold could never beprofitable because it was the last metal created and wouldonly occur, therefore, in the uppermost parts of any forma-tion; and that the main recipients of gold were the Silurianand associated Paleozoic strata, together with the igneousrocks that penetrated them (see Part 18, June/July 2007issue, CIM Magazine). Since the geological study of theCalifornia gold-quartz deposits was an important milestonein the history of economic geology, a brief summary of thiscomplex subject is in order. Much of what follows isderived from Knopf (1929) and Ash (2001).

Although the Mother Lode was the largest and bestknown, the Grass Valley-Nevada vein system was the mostproductive gold mining district in California and, in fact,the entire North American Cordillera. Though much morerestricted in area, it was relatively high in grade and wasmined to considerable depths. The Alleghany camp,though much smaller, was incredibly rich. The threecamps were all discovered within two years of the start ofthe Gold Rush, a clear indication of how easy the gold-rich veins were to find. Most of the early effort and invest-ment remained focused on the placer gold, however, sinceit was cheaper to mine and most of the newcomers knewnext to nothing about lode prospecting or mining. Aspropectors and timber merchants continued to expandaway from the creeks in search of new opportunities, theirincursion into the Yosemite Valley led to its protectionfrom development in 1864 and its creation as the firstNational Park in 1872.

The Mother LodeThe first discovery on the Mother Lode was made on the

Mariposa Grant (ranch), in Maricopa County, in August1849. The ranch owner, John Charles Frémont (1813-1890), was born in Georgia, the son of a French immigrant.

After marrying the daughter ofU.S. Senator Thomas Hart Bentonin 1841, his family connectionshelped him establish a colourfulcareer as a surveyor, explorer, andpioneer military officer inCalifornia, and purchase the4,600-hectare ranch in 1847 for$3,000. According to legend, hebought it, sight unseen and wasastounded to discover that it wasnot on the ocean as he had

assumed, but his disappointment was brief since he wasable to sell it in 1863 for a reported $6 million. In 1850, aCornish mining engineer, Captain James Rickard (ThomasRickard’s grandfather), brought the first stamp mill toCalifornia, a sectional type, to sample the Mariposa miner-alization.

The Mariposa discovery is situated at the south end ofa 190-kilometre long series of more or less continuousgold deposits that occur within a belt approximately 1.5kilometres wide. It strikes northwesterly, parallel to theregional trend, and lies about 190 kilometres east of SanFrancisco and 65 kilometres east of the Central Valley.Because of the great wall-like masses of quartz that cropout at intervals, the idea developed in the 1850s that thebelt was a continuous quartz vein. It became known asthe Mother Lode, a name first applied to veins nearPlacerville in 1851. The term Mother Lode is of Mexicanderivation, where each of the great silver mining districtshad its veta madre. When a journalist wrote in 1857 of agreat vein that traversed California from end to end, itreflected the optimism of the times. Because the goldmineralization is not continuous and occurs in a consid-erable variety of deposits, the term Mother Lode system ismore appropriate. CIM

geology

ReferencesAsh, C.H. (2001). Relationship between ophiolites and gold-quartz veins in the North AmericanCordillera, Bulletin 108. Victoria: British Columbia Geological Survey.

Böhlke, J.K. (1999). Mother Lode gold. In E.M. Moores, D. Sloan, & D.L.Stout, D.L. (Eds.),Classic Cordillera Concepts: A view from California (Special Paper 338). Boulder, Colorado:Geological Society of America.

Green L. (1977). The Gold Hustlers. Anchorage: Alaska Norhwest Publishing Company.

Hill, J.M. (1926). California gold production 1849-1923, Economic Geology, 21, 172-179.

Holliday, J.S. (1999). Rush for riches: Gold fever and the making of California. Berkeley:University of California Press.

Knopf, A. (1929). The mother lode system of California, U.S. Geological Survey ProfessionalPaper 157. Washington: Government Printing Office.

Jenkins, O.P., & Wright, W.Q. (1934). California’s gold-bearing Tertiary channels. Engineeringand Mining Journal, 135, 497.

Parmelee, H.C. (1934). Eighty-six years of gold production in California: California gold continues to enrich the nation. Engineering and Mining Journal, 135, 483-485.

Romanowitz, C.M., & Young, G.J. (1934). Gold dredging receives new impetus. Engineeringand Mining Journal, 135, 486-490.

Young, O.E. Jr. (1970). Western mining. Norman: University of Oklahoma Press.

Although the Mother Lodewas the largest and best known,

the Grass Valley–Nevadavein system was the most

productive gold mining district in

California and, in fact, the entireNorth American

Cordillera


Shaft Sinking from 1600 to 1800—The Industrial Revolution

One of the early improvements to shaft sinking tech-niques during this period was the introduction of horsewhims for the removal of material from the shaft bottom.This development occurred in the late 17th and early 18thcenturies. A well-designed horse whim could remove mate-rial from the shaft bottom many times faster than wind-lasses operated by manpower.

The second improvement to take place during thisperiod was the replacement of fire setting with drilling andblasting. It took three centuries after gunpowder becameknown in Europe before some resourceful miner, probablyin the late 1500s, thought to stuff some into the cracks inrocks, ignite it, and let chemistry do the work. Eventually,miners realized that if, instead of relying on natural cracks,they used an iron tool to make a deep hole with a smallouter opening that could be plugged to confine the com-bustion gases, they could break even more rock. It isthought that the first use of blasting with black powder inmines was in Hungary in 1627. For various reasons, suchas high cost, lack of suitable drilling tools, and fear of roofcollapse, the use of black powder in mining and shaft sink-ing did not spread rapidly, although it was generally widelyaccepted by 1700.

One man swinging a four-pound hammer and holdinghis own drill rod was called single jacking. A two-man

team was called double jacking. One man would swing ahammer that might have a nine pound head while hispartner held the drill rod and rotated it in the hole. Inaverage rock, one man might drill eight inches in an hour,while a two-man crew might make two feet. On average, itmight take 40 to 60 holes, 1 to 11/2 inches in diameter, tobe able to blast away enough rock to advance an eight footby six foot shaft two feet. Drilling these 120 feet of holesmight use up to 400 pieces of sharpened steel and requirethe better part of a week. Sometimes a third man wasadded, also with an eight or nine pound hammer, to fur-ther increase the drilling speed. For almost 250 years, thismethod of drilling blastholes was improved upon only inthe composition of drill steels and the manner of temperingthem.

Black powder was an extremely dangerous blastingmedium. It had to be ignited either by flame or intense heat.The original fuse systems were thin lines of the powderitself or crude fuses made of straw, goose quills, paper, orother combustible material combined with sprinklings ofpowder. Burning speed of this type of fuse was extremelyunreliable.

The first reference to blasting in America is contained ina committee report on the purchase of the SimsburyConnecticut copper mine for conversion into Newgate

mining


The evolution of shaft sinking systems in the western world and the improvement in sinking ratesPart 2—1600 to 1800: a skilled profession

by Charles Graham, managing director, CAMIRO Mining Division, and Vern Evans, general manager, Mining Technologies International

and early 18t

A horse whim

Itwas during this period of time that the first mining schools were

opened in North America and the first technical societies for

mining were formed. The first School of Mines in the United

States was opened in 1864 at Columbia University in New York.

In Canada, McGill University opened a mining engineering

program in 1871. This was followed by the University of Toronto in 1892,

and Queen’s University in 1893.

Also helping to spread the expertise involved in shaft sinking were the

mining technical institutes. In Canada, the first of these to be formed was

“The Gold Miners Club of Nova Scotia” in 1887. This organization was

reorganized the following year as “The Gold Miners Association of Nova

Scotia.” A number of other provinces also set up provincial mining

associations in the 1890s. In 1898 the Canadian Mining Institute was

formed.


mining

Prison in 1773. This report stated “by blasting rocks theyhad prepared a well-finished lodging room about 15 feet by12 in the caverns and had secured the west shaft of the minewith a large door.”

The Spanish had discovered large reserves of both silverand gold in both Mexico and Peru in the late 16th century.In Mexico, a number of substantial shaft sinking projectswere carried out in the latter part of the 18th century.Alexander von Humboldt visited these shafts and was fullof praise for them in his Essai Politique sur le Royaume dela Nouvelle Espagne. “Over the mother lode, Obregon openedthe shaft known as El Santo Cristo de Burgos, 493 feet indepth and later the hexagon Nuestra Senora de Guadalupe,which reached a depth of 1,130 feet. Lastly he dug the octag-onal general shaft called Senor San Jose, with a perimeter of88 feet and an eventual depth of 1,685 feet.” Humboldt calledthis last shaft one of the greatest undertakings in the his-tory of mining.

A number of the improvements in shaft sinking tech-niques achieved during this period occurred near the end of

the period with the Industrial Revolution. The date oftengiven for the start of the Industrial Revolution in Britain is1760. It was after this date that steam replaced musclepower as the primary power source in the mining industry.As early as 1689, English engineer Thomas Savery created asteam engine to pump water from mines. The Savery enginewas very small and lacked sufficient power to be of muchuse in the mining industry. Thomas Newcomen, a Cornishengineer, was developing a steam-powered machine at thesame time as Savery. Newcomen’s first steam-powered waterpump was erected at a coal mine in Staffordshire in 1712. Itwas much more efficient than the Savery machine andraised 120 gallons a minute over a distance of 153 feet.Thomas Newcomen developed an improved version shortlyafter, and by 1769, there were 120 Newcomen engines oper-ating in English mines.

James Watt made some improvements to the Newcomenengine and set up his own company building steam-pow-ered engines. By 1800, the firm of Boulton and Watt hadbuilt 496 engines, of which 164 were employed for pump-ing water out of mines. Boulton and Watt also developed asteam-powered mine hoist, the first one of which was pro-duced in 1784. Steam-powered mine hoists were to be incommon use in the next period—1800 to 1900.

Along with steam engines being used to power pumps,the Industrial Revolution brought about the requirementfor coal to power steam engines and other industrial appli-cations such as mills and furnaces. Because the higher gradecoal was to be found underground, it was accessed byshafts. Many of these shafts had to negotiate a heavy water-bearing formation above the coal. To provide a waterproofshaft lining in these sections of shaft, cast iron shaft tubbingwas used. In 1759, the first cast iron tubbing shaft liningwas installed in a shaft in what is now Germany. Similartubbing linings were installed in the Saskatchewan potashshafts in the 1960s and 1970s.

Perhaps the most important reason for the improvementin sinking techniques during this period was the improve-ment in the status of the shaft sinker and miner alike. Bythe end of the 15th century, shaft sinking and mining ingeneral had become a respected occupation. Particularly in

A Newcomen steam-powered water pumping engine

Particularly in the area of modern day Germany, the Czech

A typical tubbing ring

1100–1600 1600–1800Drilling No Double jackingRock breaking Fire quenching Black powderMucking Hand HandPermanent lining Wood WoodProtection from ground falls Platforms in shaft Platforms in shaftHoisting Man-powered windlass Horse-powered windlassHoist rope Hemp HempVentilation Bellows BellowsWater handling Buckets BucketsWater control None NoneAverage advance rate 3–4 ft per month 3–4 m per month

The shaft sinking system utilized at the end of the 17th century

Although published in the mid-1800s, the book DieBergknappen, by Peter Heuchler, illustrates the typical life ofa miner during the latter part of the 18th century.

Eduard Heuchler (1802–1879) published a number ofbooks describing the life of a miner in the Freiberg areaduring this period of time. Heuchler started his career as amining boy but then studied at Freiberg Bergschule(School of Mines) and subsequently at the FreibergBergakademie (Mining Academy). Later, he became archi-tect and professor of civil engineering at the FreibergMining Academy.

It would also appear that by this time, shaft sinkingwas considered a separate occupation from mining. In abook published in 1708, The Compleat Collier; The WholeArt of Sinking, Getting and Working Coal-Mines, & c., Asis Now Used in the Northern Parts, Especially Sunderlandand Newcastle, the master sinker in the book speaks ofusing only experienced shaft sinkers. The reason forusing experienced sinkers, as explained by the mastersinker to the mine owner, are as follows: “Only experi-enced sinkers would be employed for if he [the sinker] bealtogether unacquainted with this sort of sinking labour, hemay lose his life by styth, which is a sort of bad, foul air orfume, exhaled out of some mineral, or partings of stone, andhere an ignorant man is cheated of life insensibly; as alsohe, by his ignorance, may be burnt to death by a surfeit,which is another sort of bad air, but of a fiery nature likelightning, which blasts and tears all before it, if it takes holdof the candle… If $1,000 or more be spent in carrying downa pit or shaft almost to the coal expected, and then by anignorant man should be blasted by a strong blast or surfeit,so that it may, as has been known, tear up your timber workand shatter the gins, and shake the stone-work or frame-work, so as to let in feeders of water, besides the destructionof the persons in the shaft, this would be a dismal accidentwith a witness, as well as loss of all labour and costs by ignorance.”

There are a number of references to sinking using handdrilling and black powder. Monthly sinking rates variedbetween 3.2 and 4.5 metres per month. It appears that a sat-isfactory sinking rate was between 3.0 and 4.0 metres permonth. This was a fourfold increase over the advance ratesof the previous period. CIM

mining


the area of modern-day Germany, the Czech Republic, andSlovakia, shaft sinking techniques improved greatly. Miningbecame a skilled and valued profession. As early as theMiddle Ages, miners in many European countries werefreed from paying certain taxes, were allowed to carry arms,and did not have to serve as soldiers. A miner was also freeto choose the mine in which he preferred to work. InEngland, as early as 1201, organizations of miners wereprotected from outside interference by the King of Englandhimself.

Universities and mining schools were opened where thetechniques of shaft sinking and mining were taught and, ingeneral, these techniques improved greatly during theperiod.

The purpose for the opening of these schools was tograduate engineers capable of developing and operating themines which had become essential to the prosperity of thevarious countries in which the schools were located. Shaftsinking methods were an important aspect of the miningengineer’s education at this time because a successful shaftsinking project was essential in the development of miningproperties.

BibliographyChadwick, R. (1983). Copper: the British contribution, CIM Bulletin, 76, (858), 84–88.

Habashi, F. (1997). The first schools of mines and their role in developing the minerals andmetals industries—Part 1. CIM Bulletin, 90, (1015), 103-114.

Heuchler, E. (1857). Die Bergknappen. Essen: Verleg Gluckauf GmbH.

J.C. (1708). The Compleat Collier: The Whole Art of Sinking, Getting and Working Coal Mines, &c As Is now Used in the Northern Parts, especially about Sunderland and Newcastle. London:Printed for G. Conyers at the Ring in Little-Britain.

Morhard, R. (1987). Explosives and Rock Blasting. Maple Press Company.

Paul, W. (1970). Mining Lore. Portland: Morris Printing Co.

Preito, C. (1973). Mining in the New World. New York: McGraw–Hill Book Company.

shaft sinking is

i

Sinking, Getting and Working Coal-Mines, & c., As is Now Used in the

N

s

An illustration from Die Bergknappen depicting shaft sinking

Year of Location RemarksFoundation1736 Schemnitz, Austrian Empire Moved to Miskolc, Hungary1756 Potosi, New Spain Now in Bolivia1765 Freiberg, Saxony1770 Berlin, Germany1773 Saint Petersburg, Russia Now Leningrad1782 Vergara, Spain1783 Paris, France1792 Mexico City, Mexico

The first eight schools of mines


metallurgy

History of metal casting–Part 2by Fathi Habashi, Department of Mining, Metallurgical, and Materials Engineering, Laval University

A variety of forms of ancient Chinese bells. The barrel-shaped bell originated in the Chou Dynasty (1122-255 BC).

Casting of BellsThe development of the bell-cast-

ing skill ushered in the BronzeAge around 3,000 BC. Bellswere frequently buried in thetombs of Chinese royaltyand noblemen, but not inancient Egyptian tombs. Asmetal-casting techniquesimproved, the size of bellsincreased; bells weighingmany tonnes were sus-pended in front of tem-ples and palaces. Bothdrums and bellsannounced the time ofday and warned of fires,floods, or an approaching enemy. The ancient Chinese werealso successful in controlling the pitch of bells by controllingthe relationship between size and thickness.

Chinese bells were cast in a variety of forms. In addition tostationary bells, small ornate hand bells with clappers wereused in temple ceremonies. These are rung by Buddhist andTaoist priests during services, in conjunction with cymbals,gongs, and other instruments. It was believed that bells couldcast or remove a spell and increase fertility. Muslims and Jewshave refrained from using bells. Muslims associated bells withpagan rites and beliefs, while in Judaic practice, the ram’shorn and the metal trumpet have always been used. The cast-ing of large temple bells in China reached its zenith duringthe Ming dynasty (1368-1620). The largest such bell, castduring the reign of the Emperor Yon-gle (1403-1424),weighed 52 tonnes.

Because bells were utilized so much in pagan cultures,Christendom initially disapproved of them. It was not untilthe second century that the bell was adopted as the symbol ofpreaching the gospel and used as a call to assemble. The pop-ularity of bells increased enormously in the ninth centuryafter being promoted by Charlemagne. One of the earliestworks describing the casting of bells and the problems of itsharmonics was written by the Benedictine monk TheophilusPresbyter in the latter part of the eleventh century. This workand subsequent treatises indicate the concern for proportionsand the proper mixture of copper and tin for producing thebest ring, and how to change a bell’s pitch by varying itsdimensions and wall thickness. Since the fifteenth century, ithas been possible to influence the musical tone of the bellthrough precise design of its form. When larger bells wererequired, it became imperative to cast them in the churchyard to eliminate their transport.

The Liberty BellIn 1751, the Pennsylvania Assembly ordered a bell from

a foundry in England to commemorate the 50th anniver-sary of William Penn’s Charter of Privileges, Pennsylvania’soriginal Constitution, which speaks of the rights and free-doms of people. The bell, however, cracked on arrival. Itwas then given to a Philadelphia foundry for recasting.When the new bell was raised in the belfry, apparentlynobody was pleased with its tone and so it was sent back tothe foundry for recasting. The new bell, weighing 2,080 lb,cracked in 1846. It achieved special status when abolition-ists adopted it as a symbol for the movement.

Big BenAfter a fire destroyed the Palace of Westminster, the seat

of the British government, Parliament decided in 1844 thatthe new building should incorporate a tower and clock.The clock was completed and the bell was cast in 1858; itweighed 13.76 tonnes. The Parliament had a special sittingto decide on a suitable name for the great bell. During thedebate and amid the many suggestions that were made, SirBenjamin Hall, a large and ponderous man known affec-tionately in the House as “Big Ben,” rose and gave a long

speech on the sub-ject. When he fin-ished, a wag in thechamber shouted out:“Why not call himBig Ben and havedone with it?” Thehouse erupted inlaughter and thename ‘Big Ben’ hadbeen adopted.

Russian BellsAfter his marriage

in 1472 to Sophia(Zoe) Palaeologus,niece of ConstantineXI, the last Byzantineemperor, Ivan III tookinterest in the devel-opment of theKremlin. In 1474, heinvited a group ofskilled workers fromItaly to introduce theWestern techniques ofcasting. By 1533, an18-tonne bell was castin the Kremlin. Theseventeenth centurywas the greatestperiod of Russian bell

The Casting MethodFor casting large bells, the moulds were formed in deep

pits directly in front of the furnace to simplify the pouringprocess. The process first called for the preparation of thecore, usually formed with vertical sweeping, which con-sisted of a top and bottom bearing, the latter supporting aspindle on which the strickel board was mounted. Theboard was shaped to the interior contour of the bell. Loam,based on a brick interior, was plastered on until the boardcould be revolved with clearance. A new board was placedon the spindle, shaped to the outer contour of the bell. Claywas again added until the outer shape was attained. Rodswere placed in the mould for reinforcement and the entiremould baked. When the bells were cast, the molten metalwas directed through a trough from the furnace into thegates. After cooling, the castings were removed.

Famous BellsThe Peace Bell, which weighs more than a tonne, is

located in Peace Park in central Hiroshima. It is rung by vis-itors as part of their wish for peace. Just outside Sofia,Bulgaria’s capital, is the Bell Garden containing a large num-ber of bells donated by different countries.

metallurgy


Left: The Liberty Bell. Top right: Casting of a large bell: 1) arbor brace; 2) bearing board; 3) strickel board; 4) spindle; 5) brick work of core; 6) loamcore face; 7) clay and wax bell pattern; 8) bell pattern; 9) cope; 10) pouring gate; 11) supporting rods; 12) metal profile block; 13) baking fire.Bottom right: The Peace Bell.

casting. In Moscow and its suburbs there were about 4,000churches, each having up to as many as ten bells. OnPaschal night, it was customary for the bell in the Tower ofIvan the Great to strike the first sound at midnight, fol-lowed by the ringing of the bells of all the other churches,announcing the Resurrection of Christ.

The giant bell on display in the Moscow Kremlin isactually the last of the four bells that bore the nickname“Tsar-Kolokol” or “Tsar-Bell.” It was cast in 1599 duringthe reign of Boris Godunov and weighed 35 tonnes; how-ever, it fell during a fire near the middle of the seven-teenth century. Its metal was used in the casting of a sec-ond bell in 1654 that weighed 128 tonnes; however, itcracked as well and fell into pieces when first tested. Itwas again re-cast a year later, this time weighing 160tonnes, but another fire caused it to fall down and crackin 1701. In 1730, Empress Anna Ivannovna gave theorder to re-cast the remains of this bell into a new 220-tonne bell; however, while it was in the pit,the scaffolding caught fire in 1737 and thebell fell. People started to pour water overit and as a result, the bell cracked and a bigchunk fell off.

By the mid-eighteenth century, theexpansion of Russia to the east caused anincrease in the demand for church bells innewly developing villages, towns, andcities. Also, a new bell industry hademerged, that of small bells for horse car-riages. Farmers along the new travelroutes to Siberia started to cast horse bellsin their farmyards. At annual fairs, hun-dreds of bells were put on display, sus-pended from scaffolding so that the cus-tomers could ring the bells and buy theones to their liking. During World War I,over a hundred bells were sent fromchurches in the Baltic provinces andPoland to save them from the advancingGermans. Russian bell founding endedafter the October Revolution in 1917. Thestate confiscated church bells and manywere sold.


metallurgy

Left: cope and core; centre: sweeping cope of bell mold in pit; right: furnace.

The state confiscatedchurch bells andmany were sold

Other BellsThe oldest bell in Korea was cast in 723 AD in the Shilla

Dynasty. King Sung-Tug’s Great Bell was cast in 771 AD inthe Chosen Dynasty and weighed about 22 tonnes; it is ondisplay at the National Museum in Seoul. Korean bells werestruck by wooden hammers.

The Great Bell of Dhammazedi in Burma (nowMyanmar) may have been the largest bell ever made. It waslost in a river after being removed from a temple by thePortuguese in 1608. It is reported to have weighed about300 tonnes. One of the largest bells still in existence may bethe Mingun Bell, located in the Mingun temple, Myanmar,which weighs 90 tonnes.

The bell in St. Stephen’s Cathedral in Vienna was cast in1711 from the metal of cannon iron balls used by the Turksduring the siege of the city in 1683; it weighed 22.5 tonnesand was destroyed during World War II when the cathedralwas damaged by fire. The new bell weighs 21.4 tonnes, wascast from the metal of the old bell in 1951 in the St. Florianfoundry in Upper Austria, and was ceremonially trans-ported from Linz to Vienna. It is popularly called“Pummerin” because of its deep tone. It is the largest bell inAustria and the second largest in Europe, after the one inCologne cathedral.

Bell MuseumIn 1599, Bartlme Grassmayr established the Bell

Foundry in Innsbruck, Tyrol. His casting expertise was con-tinually improved and handed down from father to son.The foundry museum relates the history of bell casting. CIM

98

My roommate’s name was John. He hadbegun working at the mine around thesame time as me. Canadian born, John hadworked for the Canadian National Railway.He met some miner and was told about the‘big money’ in it. He was also told to tell themining company that he had many years’experience working in mines; this way hewould get a job that paid a bonus. “Bonus”in the mine was what one would get over thehourly rate. It was a set price in the con-tract, for example, one ton of ore (muck)equaled $10 and wages for eight hours waseight dollars, so the extra $2 was known asthe bonus.

When John and I came to work that firstday we were interviewed by the mine super-intendent. I told him that I had neverworked in a mine and John introduced him-self as a miner; he was sent with one man topull chutes. When we returned to the livingquarters we talked about our day in themine. That was when he told me he hadnever worked in a mine. He was very dis-gusted and cursed the man who had toldhim about working in a mine, about howgood it was and the good money he wouldmake. He was hysterical, yelling about howhe had given up fifteen years of seniorityand that S.O.B. had lied to him about hownice it was in the mine. John did not staylong. When he quit, I was left alone in theroom.

When I started working at the PioneerMine, I had no money. The miners in thebunkhouse were drinking and some of themhad invited me to join them for a drink.They knew that I was broke but still boughtme drinks. When I got my first pay, Ireturned their kindness with a bottle ofScotch. I went with some fellows by taxi toBralorne to the hotel beer parlour andliquor store. It was my first visit to such astore in Canada. A bottle of White Horsescotch was $3.65. I remember thinking thismust be a mistake as the same bottle inScotland cost 3 pounds and 5 shillings (65shillings) and in 1951 it was still rationed.

At that time there was little on display atthe liquor store and to purchase liquor youhad to fill out a slip of paper. When Iapproached the clerk’s desk I asked himhow many bottles I was allowed to buy. Helooked at me and said: “A whole case if youwish.” In my head I kept thinking that thiswas not possible, it must be a mistake. Ibought six bottles of White Horse and went

home to tell my friends,who upon seeing all mywhiskey and hearing mystory, had a good laugh.

This is the true story

of one man’s arrival in

Canada, his experiences

stemming from a career in

the Canadian mining indus-

try, with vivid descriptions

of people, places, and tech-

nologies.

The author, Peter Nowosad,

has been retired since 1986

and has travelled extensively

with his wife Michaelene.

Nowosad is also the author

of With Ukraine in my Heart, written in Ukranian and

published in 2005.

Mining in Canada: a personal history

will be published on the CIM websiteas a series of articles beginning this September.

MINING IN CANADAa personal history

AN ONLINE MEMOIRE

INDUSTRY KNOWLEDGE

CIM Bulletin Abstracts

100 Effect of biological gas generation on oil sand fine tailingsC. Guo, R.J. Chalaturnyk, J.D. Scott, and M. MacKinnon

101 A new approach to waste dump site selection according to the fuzzy decision-making processK. Shahriar and F. Samimi Namin

102 Mucking efficiency in open pit blastingP. Segarra, J.A. Sanchidrián, J.J. Montoro, and L.M. López

103 Optimization of cable bolting pattern for cut-and-fill stopes in a manganese mine using observational, empirical, and numerical modelling approachesM.R. Saharan, A.K. Chakraborty, A. Sinha, N.K. Babar, H.R. Kalihari, and C.P.N. Pathak

104 Data mining, mining data: energy consumption modellingS. Dessureault

106 Exploration and Mining Geology JournalVolume 16, Numbers 1 and 2

107 Canadian Metallurgical QuarterlyVolume 46, Number 2

Peer reviewed by leaders in their fields

YOUR

GUIDETO


Complete CIM Bulletin papers are posted in theonline Technical Paper Library

www.cim.org

Effect of biological gas generation on oil sand fine tailings

The Mildred Lake Settling Basin (MLSB) is the largest dis-posal site for mature fine tailings (MFT) at the SyncrudeCanada Ltd. oil sands plant. Over the past years (since 1996),there has been a marked change in the densification behav-iour of MFT in the MLSB. Methane-producing micro-organisms, known as methanogens, have become very active,and large amounts of biogas (mainly methane) have beenproduced. In certain regions within the MLSB, gas bubbles arereleased to the water surface of the tailings pond. Continuedfield monitoring of the MLSB has provided convincing evi-dence of the rapid densification process (rapid water drainagefrom the tailings) at the area with intense microbial activity.This phenomenon contradicts the consolidation models forMFT developed over the past 20 years. This rapid densificationhas caused pumping challenges in the transfer of fine tailingsfrom the Mildred Lake Settling Basin for the creation of com-posite tailings. It may also have potential positive effects inaccelerating the reclamation of the oil sands fine tailings.

A field and laboratory research program was performedto study the mechanism leading to the rapid densificationphenomenon. Systematic field investigations were performedto determine the distribution and characteristics of the rapidlydensified MFT. A number of small-scale column tests werecarried out to observe the gas evolution and to measure thechanges of some geotechnical parameters under differentmicrobial activities. Also, a series of gassy MFT densificationtests were conducted to study the mechanism of the rapiddensification of the MFT under microbiological activity. Areview and discussion of the research program is given andsome results of the field investigations and small-scale col-umn tests are presented in the paper.

Field observations were used to map the gas bubble dis-tribution on the water surface of the MLSB. Based on thepresence and the relative number of the gas bubbles and theongoing gas bubble release rate, two zones with differentmicrobial activities were determined. It was found that themicrobial activity at the southern part of the tailings pondwas more active than that at the northern part. Also, steel

plate penetration tests were used to investigate the densifica-tion properties of the MFT at the tailings pond. These fieldtests showed that rapid densification has progresed the mostin the southern region of the pond. Five small-scale columntests were conducted to study the influences of microbialactivity on MFT densification. Columns 1, 3, and 5 were incu-bated at 25ºC room temperature and with 0, 0.52 g, and1.52 g sodium acetate amendments per litre MFT, respec-tively. Columns 2 and 4 were placed at 4°C room temperaturewith 0.52 g and 1.52 g sodium acetate amendments, respec-tively. For columns 1, 3, and 5, with the increase of acetateamendments, total gas generation volume increased. How-ever, there was no visual gas generation in columns 2 and 4even after different amounts of sodium acetate were added.The figure shows the solids content profiles in the columns(the initial solids contents were the same) at the end of test-ing. With the increases of microbial activity and biogas gen-eration in columns 1, 3, and 5, the solids contents at the endof testing also increased. The field investigations and small-scale column tests demonstrated that microbial activity andgas generation and migration can help densification of theMFT. The in-depth mechanism of the rapid densification of theMFT under microbial activity was further studied by gassyMFT densification tests.

C. Guo, R.J. Chalaturnyk, J.D. Scott, Department of Civil and Environmental Engineering, University of Alberta, Edmonton,Alberta, and M. MacKinnon, Syncrude Canada Ltd., Edmonton Research Center,Edmonton, Alberta

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executive summaries

With the increases of microbial activity and biogas

g

Profiles of final solids contents in small-scale columns

A new approach to waste dump siteselection according to the fuzzydecision-making process

During the process of open-pit mine development, somesites are considered for dumping of surface soils and forwaste disposal. Mine spoils include overburden, waste rock,low-grade materials, and tails from the process plant, each ofthem having their own unique characteristics. For each type ofoverburden, waste rock, low-grade materials, and processtail, separate storage sites are considered so that it becomespossible to transport or reuse the individual items. Parametersthat affect waste dump site selection are environmental,operational, and social factors. Decision-making is commonlyexplained as a selection process, in which the best alternativeis chosen in order to reach a goal. Decision theory, as a spe-cialized field of operation research (OR), is the process ofspecifying a problem or opportunity, identifying alternativesand criteria, evaluating alternatives, and selecting a preferredalternative. The Society for Judgment and Decision Making(SJDM) defines decision theory as: “… a body of knowledgeand analytical techniques of different degrees of formalitydesigned to help a decision-maker choose among a set ofalternatives in light of their possible consequences.”

The decision theory offers a rich collection of techniquesand procedures to reveal preferences and to introduce theminto models of decision. Decision theory is not concerned withdefining objectives, designing the alternatives, or assessingthe consequences; it usually assumes they are known. Givena set of alternatives, a set of a consequences, and a corre-spondence between those sets, decision theory conceptuallyoffers simple procedures for choice. Many methods of deci-sion-making may be considered, such as: ELECTRE, MAUT,PROMETHEE, Multiple Objective Mathematical Programming,among others. The focus of this paper is on the inspection ofsuitable criteria for finding a waste dump site and the presen-tation of a method, based on the Yager method. This methodis one of fuzzy multiple attribute decision-making (FMADM).The aim of FMADM is to obtain an optimum alternative thathas the highest degree of satisfaction for all of the relevantattributes. This technique has been used to solve selectionproblems of decision makers in different areas such as poli-tics, town planning, communication, and mining engineering.

The iron ore district of Gol-E-Gohar (GEG) is locatedabout 60 km southwest of the city of Sirjan, in the KermanProvince of the Islamic Republic of Iran. This complex lies at apoint approximately equidistant from the cities of BandarAbbas, Shiraz, and Kerman, each of these points being approx-

K. Shahriar and F. Samimi Namin, Amirkabir University of Technology, Tehran, Iran

imately 280 km away. The mentioned complex is situated onthe Sanandaj-Sirjan metamorphic zone, which has played animportant role in the tectonic development of Iran’s plate mar-gin. Iron ore has been mined for at least the past 900 years.Some historians believe that mining activity was carried on inthe district of study as far back as 2,500 years ago, during thetime of the great Persian Empire at Persepolis. Modern explo-ration activities, predominant since 1974, have focused on sixmagnetic anomalies in the district. For ten years, Area 1 orehas been mined and processed in order to achieve recovery ofdry as well as wet concentrate. The proven reserves of Area 1are about 265 million tonnes, whereas nearly 100 milliontonnes have already been mined. About 5 km north of Area 1is the Area 3 deposit (Goharzamin Mine-GZ). Deposit No. 3 islocated approximately 1,728 m above sea level in an area ofplanar desert topography. The landscape is interrupted byridges and mesas of folded and uplifted metamorphic rocks ofPaleozoic and Mesozoic ages, which rise 300 to 400 m abovethe surrounding plain. The general shape of Deposit No. 3 GEGis generally semi-lenticular. Overall, its dimensions are 2,200 x2,400 m. The maximum vertical thickness of the orebodyranges from 80 to 100 m and is 40 m thick in the centre. Thisorebody has, and continues to be, explored by core drillingtechniques, whereby the 28,000 m of proven reserves hold586 million tonnes of ore, and about 200 million tonnes canbe mined via open-pit mining.

In order to determine initial alternatives to selecting thebest dump site, existing maps of the GZ mine were studied.Analysis of these maps allowed for four locations to beselected for waste dumps and, in accordance with FMADM,the most suitable one was chosen. At the end of the evalua-tion, the waste dump will be located north of the pit at a dis-tance of 200 m from the crest of the pit. The dump will bearound 353 Mt of waste and overburden by the end of thefirst 15 years of mining. The dump will have a considerablyhigher capacity suitable for storing waste from future mineexpansions.

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Mucking efficiency in open pit blasting

Mining operations are under constant pressure when itcomes to optimization and cost reduction. Drilling and blast-ing, though by themselves comprise a minor percentage(about 15%) of mining costs, have a strong influence on thedownstream operation costs, as they are responsible for thefragmentation of the blasted rock. Strong emphasis has beenput on the fragmentation of the muckpile (e.g., the mine-to-mill approach), despite the difficulties for measuring it, inorder to establish its relation with downstream processes.One such process is the digging and loading of the muckpile.An alternative analysis is followed in the present work, focus-ing on directly monitoring the excavator’s efficiency as a qual-ity parameter of the blasting operation. Such an indicator,though influenced by external factors like the operator’s skills,is a measurement of the rock movement and fragmentationachieved by the blast; together with hauling they encompassabout 60% of mining costs (ore processing costs excluded). Aliterature survey shows this topic as challenging due to thelack of models to guide drilling and blasting towards a spe-cific mucking productivity. This is contrary to what happenswith fragmentation, where models exist that relate drillingand blasting parameters with the fragment size distributioncharacteristics. Powder factor and delay between rows appearto be the key parameters, although there are some contradic-tory indications regarding the influence of the powder factor.

The excavators’ efficiency, given as the mucking rate andbucket payload, is investigated in this paper in terms of theinfluence of the blasting parameters on it. Quantitative dataare given for 11 blasts in an open pit iron ore mine. The pre-dominant rocks in the blocks, itabirite and hematite, aredescribed by point-load strength and density measurementsfrom about 40 samples collected in the bench levels wherethe blasts took place. Blasting parameters, drilling, charging,and timing were carefully monitored in all blasts. ANFO wasused in three blasts, ANFO/emulsion blend in one blast, and

watergel in seven, with a range of powder factor between0.98 and 1.45 kg/m3. The explosive performance is assessedfrom in situ VOD measurements. The explosive energy hasbeen rated as heat of explosion and useful work to expansionpressures of 100 and 20 MPa, considering both full and par-tial reaction. The non-ideal energy delivery has been obtainedfrom the VOD measurements. Rope shovels and front-endloaders were used to dig and load the blasted rock intotrucks. Their work is assessed by in situ measurements of thetime elapsed from the moment in which the excavator dumpsthe first bucket until the 240 t truck is filled, and of the num-ber of buckets required. From those, the mucking rate (bankcubic metres mucked per hour) and the mean bucket load(bank cubic metres loaded in each bucket operation) aredetermined. The data measured correspond to samples of 6%to 22% of the total muckpile mass.

The mean bucket load is independent of the blastingparameters, whereas it is sensitive to variations in the dippersize. Besides the relation with the mean bucket load, themucking rate has been found to be positively correlated withthe explosive energy; other blasting parameters also correlatewith the mucking rate, though their influence can beexplained in terms of their usual variation in blast designpractices driven by explosive energy variations. No significantcorrelation of the mucking rate with the rock properties hasbeen found. The analysis of the data, combined with otherpublished data, suggest a non-monotonic relation of themucking rate with the powder factor, or amount of explosiveper unit volume of rock. An acceptable explanation of theexperimental mucking rates can be obtained with quadraticor with bell-shaped functions, if powder factor is given in theform of explosive energy loaded above grade per unit rockvolume (energy powder factor) rather than in the classicalform of explosive mass per unit volume. Of the differentexplosive energy ratings, the useful work in a partial detona-tion regime appears to be the best suited to group the muck-ing rate data, especially when the cut-off pressure is 100MPa. Mucking rates increase with the energy powder factorabove grade towards a maximum, beyond which an addi-tional increase of the powder factor does not result inimproved mucking rates.

P. Segarra, J.A. Sanchidrián, Universidad Politécnica deMadrid–E.T.S.I. Minas, Madrid, Spain,J.J. Montoro, MAXAM International, Madrid, Spain, and L.M. López, Universidad Politécnica de Madrid–E.T.S.I. Minas,Madrid, Spain

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Optimization of cable bolting pattern for cut-and-fill stopes in a manganese mine using observational,empirical, and numerical modelling approaches

Results of scientific investigations on the optimization ofthe rock reinforcement system (cable bolting) at Chikla Mine,MOIL, India, are presented in this paper. The mine is imple-menting a systematic roof support program that primarilycontains cable bolting in a 2.0 m square grid pattern. The fullygrouted cables are 16 mm in diameter and 12 m in length.Additionally, 20 mm diameter, 1.5 m long, full columngrouted rock bolts in the centre of the cable bolting grid arealso implemented for the manganese orebody with widthsranging from 9 to 24 m (average width 12 m) and a dip angleof 55° to 90°. Manganese ore mineralization, primarily in theform of braunite and gondite minerals, is flanked by mus-covite schist/quartz muscovite, and schist in Chikla Mine,MOIL. The depth of workings is in between 40 and 70 m fromthe surface, and a cut-and-fill stoping operation is being prac-ticed to produce average stope widths of 12 m. Field and lab-oratory investigations are carried out to obtain empirical rockmass classification parameters and input parameters fornumerical modelling. The safety factor contouring method,using a failure criterion suggested by Sheorey (1997), is usedfor plain strain numerical modelling in a general purposefinite difference method-based numerical modelling code—FLAC3D.

The orebody in Chikla Mine, particularly between the -70and -170 ft levels, displays two systematic joint sets: one hasan average spacing of 2.5 m, with its strike direction alongN60°E and dipping almost vertical due east; and the otherhas an average spacing of 2.0 m, with its strike directionalong N80°W and dipping almost vertical due south. Schis-tocity planes, which are horizontal and sub-horizontal, formthe third plane of weakness in the orebody. Such planesexhibit a spacing varying from 5 to 30 cm. All these weaknessplanes are devoid of any infillings, have rough, planar, andwavy surfaces, and are very tight in nature. The orebody hasan average uniaxial compressive strength (UCS) value ofabout 120 MPa, as found from rebound values of a standardSchmidt Hammer. Results of preliminary rock mass character-ization tests indicate that the orebody has Barton’s Q valueranging from 16 to 38 (good rock mass), while Bieniawski’sRMR values range from 80 to 87 (very good rock mass). Thehost rock has been determined to be weaker than the ore-body with Q values ranging from 5 to 8 (fair rock mass) andRMR values ranging from 49 to 63 (fair rock mass). Based onthese classifications, it is observed that the orebody of Chiklafalls under the engineering categories of “no supportsrequire” and “spot bolting.” Numerical modelling results arein line with the results of rock mass classification, which indi-cate skin failures at roof level for the cut-and-fill stopes, tak-

Safety factor contours for 15 m stope width in lower RMR values of ore androck

M.R. Saharan, A.K. Chakraborty, A. Sinha, Central MiningResearch Institute (CMRI), Dhanbad, India, andN.K. Babar, H.R. Kalihari, and C.P.N. Pathak, Manganese OreIndia Limited (MOIL), Nagpur, India

ing into consideration the lower bound RMR values. Further,the aforementioned results have also been compared withfield observations. The mine has already completed an exper-imental stope design and construction, using an open stopingoperation. The roof (crown pillar) of this stope has beenstanding without any sign of failure for the past six months(i.e., six months subsequent to the completion of the stop-ping). Also, the measurements from hanging cables in the cut-and-fill stopes further indicate that the cables are not carryinga load over 5 t.

It is concluded that the practice of central-grouted rockbolting may safely be discontinued as it appears to be anoverly conservative design. Moreover, the grid of cable boltingmay be safely increased from 2.0 m x 2.0 m to 2.5 m x 2.5 mbefore adopting the category of “no supports require.” It hasbeen suggested to mine management that the above resultsshould be verified from a rock mechanics instrumentationprogram covering instrumented cable bolts, stress metres, andstrain bars in an experimental stope, prior to the adoption ofthe “no supports require” category.

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executive summaries

Data mining, mining data: energy consumption modelling

As increasingly more data tracking production and busi-ness processes continue to be collected, mines are facing aproblem seen in other businesses: being data-rich while infor-mation-poor. As additional efforts and technology are placedat developing even more information sources, a new techno-logical focus should emerge: how to concentrate data intoinformation; analyze information sufficiently to becomeknowledge; and finally, act on that knowledge (data→infor-mation→knowledge→action). New technologies, developedin non-mining industries, have begun to redress some ofthese data-rich–information-poor issues, specifically datawarehousing (the enabling technology) and data mining (theanalytical technology). An approach to develop applicationsand skills, wherein data is transformed into action, continuesto be performed and tested at the Mining Information Sys-tems and Operations Management (MISOM) lab at the Uni-versity of Arizona. The data-to-action approach was exercisedin the development of an energy consumption model (ECM),in partnership with a major US-based copper mining com-pany, two software companies, and the MISOM lab, funded bythe U.S. Department of Energy (DOE). The project, calledInfrastructure for Integrated Data Environments and Analysis(IIDEA) for Mining and Processing Systems, began as a one-year pilot study that used a copy of the 1.2 Terabyte corporatedata warehouse containing all records from every major infor-mation system (IS) used at all the operations of the partnermining company.

The data-to-action approach begins by integrating sev-eral key data sources using data warehousing techniques,namely the highly granular fleet management system (FMS,namely Dispatch®) and all cost transactions for the past fouryears from the enterprise system (ES, namely Ellipse®). Theproject began by increasing the existing level of integrationand data cleaning. The information step involved the creationof online analytical processing (OLAP) cubes to investigatethe data and identify a subset of several million records. Datamining algorithms, mostly neural-network based, wereapplied using the information that was isolated by the OLAPcube. The data mining results showed that traditional costdrivers of energy consumption, namely tons and distance fordiesel, and tons for kWhrs, are poor predictors. A comparisonwas made between the traditional means on predictingenergy consumption and the prediction formed using data

mining. Traditionally, in the mines for which data were avail-able, monthly averages of tons and distance are used to pre-dict diesel fuel consumption. New information technologycan be used to incorporate many more variables into thebudgeting process, whereby far more accurate predictions canbe made. The figure shows the predicted (using NN) versusactual using neural networking and includes other variablessuch as distance travelled up or down, time of year, and truckclass, predicted by week. The data mining results are farcloser to actual than when using traditional means of predic-tion. The final step in evolving data into action is using thenewly created knowledge. The most valuable knowledge willnot generate real value unless it is acted upon. Other busi-ness sectors were transformed by IT only once workflowswere re-engineered to take advantage of the new capabili-ties. The project undertook a deliberate work and data-flowmapping of the budgeting process at the mines under study.An idealized workflow was then engineered considering dataavailability, technical skills of the local personnel, and culturalconsiderations. The ECM was developed to help mine plan-ners improve the prediction of energy use in the materialshandling system.

Business management processes, such as improvementinitiatives and mine engineering, can be greatly improvedthrough more data integration, measure development, andworkflow analysis. This has been the experience in otherindustries such as in retail and marketing. The enabling tech-nology is now available. What remains is solidifying anddeploying data to action procedures.

S. Dessureault, University of Arizona, Tucson, Arizona

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Predicted versus actual diesel fuel by week using six variables, such as truckclass and time of year.


If you can’t measure it, you can’t manage it.

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For more information and to schedule a complimentary consultation, visitwww.gemcomsoftware.com/measure

Mineral Resource Management

Production ManagementAsset ManagementCost Control

bookshop

Mineral Agreementsand Royaltiesby Karl Harries

Special Volume 55, a two-volume set, is a generic guideintended to assist anyoneinvolved directly or indirectlyin the mineral explorationindustry.

The Geology,Geochemistry, Mineralogy and Mineral Beneficiation of Platinum-Group ElementsSpecial Volume 54 provides newinformation and insights onplatinum-group element depositsworldwide in terms of theirgeological setting, ore controls,mineralogy, geochemistry, mineralprocessing, and beneficiation.

CIM Bulletin TechnicalPapers—February2006 to January 2007A compilation of peer-reviewed technical paperspublished in the CIM Bulletinfrom February 2006 toJanuary 2007.

Exploration and MiningGeology—Volume 15, Numbers 3 and 4Special issue on volcanic-hostedmassive sulfide deposits andtheir geological settings in the Bathurst Mining Camp,New Brunswick

Contact [email protected] topurchase a copy today.

New releases CIM Books available

www.cim.org/publications/specialvols.cfm.

Geophysical Case Study of the Gallen Deposit, Québec, Canada L.Z. Cheng, Université du Québec en Abitibi-Témiscamingue; R.S. Smith, Fugro Airborne Surveys; M. Allard, Noranda Inc., Division de l’Exploration; M. Chouteau, École Polytechnique de Montréal,Département des Génies civil, géologique et des mines; P. Keating, Geological Survey of Canada,Natural Resources Canada; J. Lemieux, Fugro Airborne Surveys; M.A. Vallée, Fugro Airborne Surveys;D. Bois, Université du Québec en Abitibi-Témiscamingue; and D.K. Fountain, Fugro Airborne Surveys

As part of a larger research program, a number of MEGATEM airborne electromagnetic (EM) testflights were flown over the Gallen massive sulfide deposit in northwest Quebec. A particularity ofthis test site is that a major part of the ore body was extracted before the MEGATEMII survey. There-fore one of the purposes of this study was to verify the ability of the system to detect the remainingmassive sulfides below the water in the open pit. The open pit is also surrounded by a metallic fence,and a power line is present in the vicinity. A large part of the case study involved accounting for theimpact of infrastructure and acidic water on the survey, which will help in the interpretation of air-borne EM responses in complex exploration situations.

Stratigraphic and Structural Constraints on Limestone Exploration: a Case Study fromNorthern New Brunswick, Canada

I. Dimitrov, Department of Geology, University of New Brunswick, and S.R. McCutcheon, GeologicalSurveys Branch, New Brunswick Department of Natural Resources

Industrial-grade limestone is found in both the Lower Silurian La Vieille Formation and Upper Sil-urian LaPlante Formation of the Chaleurs Group in northern New Brunswick. Currently, between150,000 and 200,000 tonnes of limestone are produced per year from the proximal facies of theLaPlante Formation at the Sormany quarry of Elmtree Resources Ltd., located west of Bathurst. A vari-ety of prospecting techniques was used to locate new limestone resources, including geological map-ping, airborne and ground electromagnetic surveys, and satellite remote sensing. Clastic rock unitsabove and below the LaPlante Formation have distinctive properties that help to trace the interveninglimestone along strike. Because of water-saturated glacial cover, thick vegetation, and the small size oftargets, airborne geophysical methods did not prove effective in delineating limestone beds, but aero-magnetic surveys helped map the underlying clastic unit. The remote-sensing data and especially high-resolution digital elevation models helped in identification of karst topography related to limestone.

Production Trends and Economic Characteristics of Canadian Gold MinesM. Doggett, Department of Geological Sciences and Geological Engineering, Queen’s University,and and J. Zhang, Natural Resources Canada

All 231 Canadian primary gold mines that produced from 1946 to 2004 were analyzed withrespect to their production and economic characteristics. Trend analysis revealed that the averageannual capacity of Canadian gold mines as measured by ore processed or gold produced hasincreased over time. Conversely, the average grade of gold mines has decreased over time. Each his-torical mine in the database was evaluated on the basis of a set of economic and technical assump-tions to determine if it would be economic to develop today. Based on net present value using an8% discount rate, only 103 of the 231 mines were determined to be economic. About 80% of theuneconomic mines had less than 10 t of contained gold, and 63% had less than 5 t. It was con-cluded that these small mines would not be viable today due to a combination of real capital costincreases and more stringent permitting and environmental regu-lations. The implication is that future gold supply in Canada willhinge on the discovery and development of a new generation oflarger mines. Given that only one giant mine has been discoveredin the past 20 years, it seems likely that gold output will decreasein the future.


Exploration and Mining Geology JournalVolume 16—Numbers 1 and 2

Excerpts taken from abstracts in EMG, Vol. 16.Subscribe—www.cim.org/geosoc/indexEMG.cfm

emg abstracts


Canadian Metallurgical QuarterlyVolume 46—Number 2

Liquid Film Migration in a Cu-5 At.% Sb AlloyU. Chintababu, V.R. Chary, and S.P. Gupta, Department of Materials and Metallurgical Engineering, Indian Institute of Technology

Liquid film migration was studied in a Cu-5 at. % Sb alloy by both down-quenching and up-quench-ing from the initial liquation temperature in the two-phase, α + liquid, field. The time and temperaturedependence of the migration distance and the rate of migration were studied in the temperature rangeof 440 to 760°C. A near parabolic growth behaviour was observed. The coherency strain energy as cal-culated from the composition of the trailing grain was observed to be one order of magnitude higherthan the interfacial energy of the cylindrical liquid film. The total chemical free energy was calculated tobe one to three orders of magnitude higher than the coherency strain energy. A substantial part of thetotal chemical free energy is used for volume diffusion in front of the liquid film in the receding grain. Thediffusion coefficients and the activation energy calculated at 730 to 760°C correspond to those of thediffusion of Sb in liquid Cu. The activation energy is close to those of self diffusion in liquid Sb and Cu.

Dynamic and Metadynamic Recrystallization of a Martensitic Precipitation Hardenable Stainless SteelA. Momeni, S.M. Abbasi, and A. Shokuhfar, Advanced Materials Research Laboratory, Mechanical Department, KNT University of Technology

The dynamic (DRX) and metadynamic (MDRX) recrystallization behaviour of an as-cast precipitationhardenable stainless steel has been investigated by conducting continuous and interrupted hot compres-sion tests in the temperature range of 900 to 1150 °C and under strain rates of 0.001 to 1 s-1. The effectsof temperature and strain rate and the Zener-Hollomon parameter (Z) on the flow behaviour and peakstrain were investigated by continuous tests and the equation εp = 4.3 x10

-4 Z0.14 was proposed. Thekinetics and fractional softening of MDRX were found to increase with temperature and strain rate. TheAvrami exponent n was determined as 0.5 and the equation X = 1 – exp [-0.693(t/t0.5)]

0.5 was proposed.From the variation of t0.5 with deformation temperature and strain rate, the equation t0.5 = 1.73 x10-7

.ε-0.33 exp(191000/RT) was proposed.

The Influence of Ni Alloying on Corrosion Behaviour of Low Alloy Steels under Wet/Dry Cyclic ConditionsX. Chen, J. Dong, E. Han, and W. Ke, Environmental Corrosion Center, Institute of Metal Research, Chinese Academy of Sciences

The atmospheric corrosion of Ni-bearing low alloy steels was investigated by wet/dry cyclic corro-sion tests (CCT) in a 0.3%NaCl solution at 30 °C and 60% relative humidity (RH). The prepared sampleswere studied using gravimetry, electrochemical corrosion tests (polarization curves (PC), electrochemicalimpedance spectroscopy (EIS)) and analytical techniques (SEM and XRD). The Ni bearing steels showedhigher corrosion resistance than that of mild steel in the test. The results of electrochemical tests demon-strated that the addition of Ni to mild steel restrained anodic dissolution of iron, shifted the corrosionpotential (Ecorr) in a noble direction and increased the corrosion resistance of rust layer by improving theadhesion and compactness of the rust layer and ameliorating the physicochemical property of the sub-strate/rust interfaces. The rust analysis demonstrated that Ni alloyingameliorated rust composition by facilitating the formation of fineNiFe2O4, α-FeOOH and decreasing the β-FeOOH, γ-FeOOH andFe3O4. In addition, Ni alloying could retard the crystallization of α-FeOOH, Fe3O4 and γ-FeOOH to a certain extent.

Excerpts taken from abstracts in CMQ, Vol. 46, No. 2. Subscribe—www.cmq-online.ca

cmq abstracts


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voices from industry


Mining’s contributions to societyby Jim Carter, retired president and COO, Syncrude Canada Ltd.

Having retiredin May froma rewarding

36-year career inthe mining and oilindustries, I wouldlike to share somereflections on mywork-life experi-ences.

There is muchdebate these daysabout the rate ofpace of resourcedevelopment andthe positive or neg-ative effects on oursociety. As CIMmembers, I believe itis incumbent on usto get some impor-tant facts out to our

friends, colleagues, business associates, and elected officials toachieve more balance in public opinion.

I spent the last 27 1⁄2 years with Syncrude Canada Ltd. andserved ten years as president and chief operating officer. Beforemy oil sands involvement, I spent 5 1⁄2 years in mountain coal min-ing in Grande Cache, Alberta.

One of the many great things about Canada is the vastness ofour natural resources and particularly our mineral wealth. In min-ing, Canada is rich in coal, uranium, iron ore, copper, lead, zinc,nickel, diamonds, and gold, not to mention the vast reserves of oilin Alberta’s Athabasca oil sands and conventional oil and gas.

The recent strong run in commodity prices is playing a signifi-cant role in driving the buoyant Canadian economy.Unemployment in Canada is at historically low levels and theCanadian dollar has recently seen its highest level in 30 years.

By virtue of the multiplier effect on other sectors of theeconomy, just about every region of Canada either directly orindirectly benefits from resource industry investment. The min-ing industry alone in this country employs approximately400,000 people and accounts for about 60 per cent of all railtransportation revenue and about 70 per cent of all seaport vol-ume. The mining industry also accounts for approximately fourper cent of Canada’s Gross Domestic Product. It is also an indus-try that over the past two decades has demonstrated signifi-cantly stronger productivity gains than many other industriesdue in part to research and development spending and capitalinvestment, enabling its current economic impact. The industryalso provides good, solid employment opportunities. It has pro-

vided opportunities for visible minorities, particularly Canada’sFirst Nations people, partially due to the location of manynorthern mining operations, but also because this industry wasone of the first to realize the benefit of this largely untappedhuman capital pool.

The industry also has a track record of developing and imple-menting more environmentally beneficial and cost-effectiveprocesses and equipment. Several examples are as follows:

The integrated mining and upgrading oil sands operations inFort McMurray have demonstrated a dramatic reduction in sul-phur dioxide emissions over the last 15 years by implementingscrubber technology. In fact, Syncrude, through the addition ofammonia, is converting SO2, a former waste stream, into ammo-nium sulphate fertilizer for the agricultural market.

Water conservation practices applied in the oil sands havereduced the water consumed per barrel of oil produced dramati-cally with Syncrude demonstrating reductions of 60 per cent overthe past five years.

In another example, the economies of scale of larger haultrucks in oil sands, coal, copper, and iron ore mining have greatlyreduced the fuel required to move ore and waste, resulting inlower carbon dioxide and nitrous oxide emissions as well as low-ering the cost of production.

As a final example, I cite the latest leading-edge technologyfor coal-fired electricity generation implemented by Epcor at theGenesee 3 generator. Pulverized coal is used to generate super-critical steam at 3,600 pounds per square inch, which drivesenergy efficient turbines that generate electricity with 20 percent lower CO2 emissions than previously available technology.Future opportunities for coal-fired power generation will likelyemploy coal gasification, which will enable steam turbines andgas turbines to be driven by the same fuel source while carbondioxide is sequestered for enhanced oil recovery from conven-tional oil reservoirs.

As an engineer with many years of experience, I am a firmbeliever in the power of technological advancement. Technologydevelopment and application will enable Canada to continue toreap the benefits of our vast natural resources while at the sametime enabling good stewardship of the environment.

There are some naysayers that are against forms of energylike oil from the Athabasca oil sands and coal-fired electric power.It is interesting to note that the energy represented in Canada’scoal deposits outweighs all other forms of hydrocarbon energyincluding the massive oil sands deposits.

To those who would like to relegate these forms of energy tothe back-benches, I say “We can do this!” Through science andengineering we can continue to support a strong Canadian econ-omy and be good stewards of the environment. As CIM membersand Canadians with a vested interest in the outcomes, please joinme in the crusade. CIM

Metso Minerals Vertical Plate Pressure Filterbrings together high performance and a high degree of automation at low cost per ton.

· Light weight construction, with machined polypropylene filter chambers· Driest possible cake solids· Maximum volume reduction· Exceptionally clear filtrate· A one-minute filter cloth change operation· Available in several pressure ratings for different applications· Supply of complete systems

www.metsominerals.com

A D D R E S S P. O. B ox 3 0 2 , S - 7 3 3 2 5 S a l a , S we d e n P H O N E + 4 6 2 2 4 5 7 0 0 0 FA X + 4 6 2 2 4 1 6 9 5 0 E - M A I L m i n e r a l s . i n f o @ m e t s o. c o m

Vertical Plate Pressure FilterCuts Energy and Maintenance Costs

Strong and Comprehensive Solutions for Your BusinessMetso in Filtration comprise Vertical Plate Pressure Filters, VPA, Tube Presses and Vacuum Filters

cim magazine september/october 2007

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