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An Overview on Finnish Mining Pekka A. Nurmi, Ph.D., Prof. Research Director PA Nurmi Febr. 6, 2013 Finland’s Green Mining Programme Agnico-Eagle Mines Ltd. 1

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An Overview on Finnish Mining

Pekka A. Nurmi, Ph.D., Prof. Research Director

PA Nurmi Febr. 6, 2013

Finland’s Green Mining Programme

Agnico-Eagle Mines Ltd.

1

Key Challenges for the Mining Industry

• Deposits more difficult to discover: deeper, remote, lower grade, more difficult to process

• Skills crisis • Volatility of commodity prices • Critical minerals change with time and tehnological

development • Access to land • Social lincense to operate

PA Nurmi Febr. 6, 2013 2

PA Nurmi Febr. 6, 2013 3

Material and energy efficiency

• Material and energy efficiency reduces the environmental footprint of product life cycles.

• All useful minerals and by-products should be recovered and waste minimized.

• Reduction of primary water consumption • Reliable ways of measuring the efficiency and the

environmental footprint during the life cycle.

PA Nurmi Febr. 6, 2013 4

Availability of mineral resources for future needs • Sustainable development requires that our current use of

minerals does not endanger the ability of future generations to satisfy their needs. • Individual deposits are non-renewable, but mineral resources in the Earth’s crust are in no danger of running out. • Price increases and technological development make new deposits and

discoveries viable and promote substitution. • Active exploration and development of exploration and mining techniques is

needed to ensure the availability of mineral resources for future . • Better product design and recycling are also needed for prolonging the life

cycle of raw materials.

PA Nurmi Febr. 6, 2013 5

Minimizing Adverse Environmental and Social Impacts

• All mines impact the natural environment, economy and social structure of the region. • Adverse environmental and social impacts in all the stages of the operations should be minimized, and social and local benefits

maximized. • Better control and measurement methods that take into consideration the

special characteristics of mining operations and the local conditions. • Sustainable mining requires research, communication and broad-based

community participation.

PA Nurmi Febr. 6, 2013 6

Improvement of Work and Organisational Practices • Mining is based on advanced technology and heavy machinery,

which can increase potential safety hazards. • Work must be organized to be safe and meaningful to

employees, and safe to local residents and the environment. • Most operations in future smart mines will be executed using

remote control. • Automation and new technologies help to reduce the need of

workforce and improve safety.

PA Nurmi Febr. 6, 2013 7

Sustainable Land Use Following Mine Closure

• The operation time for an individual mine can be very long, but it is always limited.

• After closure mining areas should be restored to make them safe and to allow other kinds of land use.

• Planning of mine closure is started well before commencing mining operations and it should be developed throughout the project’s life cycle

• Broad-based participation of local residents and other stakeholders is important.

• Closure of a mine requires functional and tested technical and scientific methods.

PA Nurmi Febr. 6, 2013 8

Tekes - Green Mining Programme

• Tekes Green Mining Programme aims to make Finland a global forerunner of responsible mining.

• Duration: 2011–2016 • Budget: EUR 60 million, of which Tekes will contribute 50%.

– Companies: EUR 20 million – Public research institutes: EUR 10 million

• All projects should promote the Green Mining Principles

http://www.tekes.fi/ohjelmat/GreenMining

PA Nurmi Febr. 6, 2013 Tekes 9

Intelligent and minimal impact/invisible mining • Innovative processes (mine, quarry, dressing plant) • Automation and optimisation • Chemical/biological enrichment techniques • Management of process waters

New mineral Resources •Exploration technologies • Geomodels and geodata management • Hi-tech metal resources • Beneficiation and use of country rock and tailings

Material and energy efficiency

Controlling environ-mental impacts

Work organisa-tion development

Mine / dressing plant pilot projects

Service innovations and new business concepts Value networks

Mining machinery/equipment

PA Nurmi Febr. 6, 2013

Green Mining R&D Programme

Tekes 10

Summary of Current Projects

Company projects: • Number 15

– Mining companies 3 – Technology providers 6 – Instrument providers 3 – Material providers 1

• Total cost 15 M€

Public projects: • Number 31 • Private partners 38

– Mining companies 15 – Service etc. 23

• Total costs 24 M€

11 PA Nurmi Febr. 6, 2013 Tekes

GTK is coordinating 8 projects and involved in 6 other projects

Novel Technologies for Greenfield ExplorationmNovTecEx

• User need – New mineral discoveries – Mineral exploration is challenged by thick glacial

formations, peat bogs and weathered bedrock – Arctic areas typically exhibit a vulnerable environment

• Approach – Improve exploration concepts – New sampling techniques – Deep penetrating exploration geophysics

• Benefits – Mineral exploration with minimum impact on

environment • Users

– Mining and exploration companies – Drilling companies

NovTecEx/Vesa Nykänen

UltraLIM - Ultra Low-Impact Exploration Methods in the Subarctic

• Needs – New mineral discoveries – Mineral exploration in the subarctic areas covered by thick glacial

deposits, peat bogs and weathered bedrock – Practical knowledge and experimental results of exploration methods

for environmentally sensitive areas • Approach

– Use of upper parts of the mineral soils, organic layers, plants and snow as the sample media for exploration

– Comparison of sampling and assay techniques – Find the best practices for sampling and assaying samples in very

sensitive subarctic regions • Benefits

– New application and knowledge for the mineral exploration with minimum impact on environment

• Users – Mining and exploration companies – Scientific community

PA Nurmi Febr. 6, 2013

Contact: [email protected], [email protected], [email protected] 13

Developing Deep Mining Camp Exploration

User needs • More systematic and efficient mineral exploration • Shallow parts being already explored and existing deposits

more rapidly consumed, need to go deeper (< 5 km) Solution • Integrated application of state-of-the-art deep exploration

methods and Common Earth Modeling (CEM) concept with best available data and compiled new data

Benefits • Deep exploration and modeling methods and skills

development for Finnish conditions and experts • Resource potential given in 3D • Improved international exploration, research and

knowledge dissemination network Users • Mining, exploration and consulting companies • Geoscience institutes, universities

14 PA Nurmi Febr. 6, 2013

Over hundred years of mineral exploration and mining give prestigious prominence to Outokumpu ore belt acting as the project target area.

PROSU – Process Scale-up for Sulphide Poor PGE Ores NEEDS

• The demand of platinum group metals – platinum and palladium have been increased

• There’s needs for development of ecological and cost-effective beneficiation process for PGE ores with low sulphur content

APPROACH

• Mineralogical investigation of feed and concentrates at various stages, including phases, occurrence, grain size, liberation and association

• Mineral processing studies from laboratory to pilot scale and optimizing of process conditions

BENEFITS

• Better knowledge and processing possibilities of sulphide-poor PGE ore deposits

• Utilization of massive Finnish PGE ore bodies which are not yet in use

USERS&MARKETS

• Mining companies • Machine- and process control device suppliers • Reagent manufacturers • Research institutes

ARSENAL – Arsenic Control in Mining Processes and Extractive Industry

NEEDS • Arsenic is a world-wide challenge • Arsenic is commonly associated with ores containing metals such as gold • It is easily solubilized in water phase

Control of arsenic in all mining operations is a necessity

APPROACH • New mineral processing and water treatment solutions for arsenic removal • Novel bio-based treatment processes for arsenic containing wastes and streams • Monitoring and environmental risk assessment tools

BENEFITS • Better knowledge and new management tools on arsenic in the mining area • Eco-efficient solutions for mining industry to control and remove arsenic • Minimization of health and environmental risks related to arsenic

USERS & COMPETITION • Technology companies, mines, consults, authorities, other stakeholders • Arsenic behavior is highly depend on prevailing conditions and processes Special, tailor-made and global approaches are a challenge and a possibility

16 PA Nurmi Febr. 6, 2013

Solutions for Control of Nitrogen Discharges at Mines and Quarries (Miniman)

Need Better understanding of the behaviour of

nitrogen compounds Minimizing of nitrogen transport Removal of N-compounds from mine waters,

especially in cold conditions Approach

Analysis of sources, behaviour and management opportunities of nitrogen compounds

Biological reactor process and electrochemical /adsorption process for nitrogen removal

Benefits Knowledge, tools and technological solutions

for nitrogen control at mines Users:Technology companies, mines, consults,

authorities, other stakeholders Competition

Nitrogen containing explosives used at all the mines and quarries Mining is one of the fastest growing markets for water treatment Market growth of treatment technologies for nitrogen containing mine water

is expected due to the tightening regulation Risks Non-nitrogen explosives/explosion techniques (not in near future) Use of membrane solutions for water treatment

17

PA Nurmi Febr. 6, 2013

NEEDS – Mines have too much water in their systems – Mines are searching potential mine water treatment processes – Smarter treatment is needed: different seasons, metals, system products…

APPROACH – Piloting cost-effective mine water treatment processes – Using new chemical and material innovations – Developing metal selective water purification processes – Tailoring new pilot-systems regarding metals and waters

BENEFITS – Effective water treatment of heavy metals in hard pH conditions too – Water treatment processes are tested and assured beforehand – Optimized use of chemicals with soft-sensor systems

USERS & COMPETITION – Mines, chemical and material companies, process and system producers – Global markets of smart water treatment systems are growing fast because of

the need of water recycling and mine water safety procedures – Mine Water Safety Planning concept

SEEWAY - Smart Mine Water Treatment System

18 PA Nurmi Febr. 6, 2013

Mines as Renewable Energy Sources - MINERES Needs • Energy efficiency is needed to reduce costs and emissions and raise the

green image of the mining industry • New ways for utilization of closed mine sites Approach • Active and closed mines host significant geothermal resources which

can be utilized using modern heat pump technology in e.g. heating of the inlet air of the mines or for heating of residential areas. This is studied in several case studies.

Benefits • Geothermal energy is a renewable and cost efficient alternative for

fossil fuels • Mining sites can provide energy for industrial and residential needs also

after their closure Challenges and opportunities • Distant locations of Finnish mines limit the use for residential needs • Results of successful pilot projects can be utilized in mining industry all

over the world Contact: [email protected] [email protected]

Need – Sustainability drivers for mining industry, with focus on social acceptance Approach – a multiscience approach that includes the three elements of sustainability (environmental, social, economic) in regional level. Foresight and technology aspects included. Benefits – Tools for water efficiency and water risk assessment. Concept for ‘social licence to operate’ and improved dialogue between companies and stakeholders. Potential business models and service concepts will promote the overall sustainability of the industrial sector and will enhance eco-efficiency along the value chain. Users & Competition –Actors along the mining value chain (e.g technology developers, mines and other service providers), authorities, consults and local inhabitants. Sustainable technologies and assessment tools create added value to the companies and increase knowledge on mining operation in general and regional level .

SAM – Sustainable Acceptable Mining

OPERATIONAL PHASE

Eco-efficiency, environment

Socially acceptable and Sustainable mining industry

POST-

OPERATIONAL PHASE

New business and service concepts

PRE-OPERATIONAL PHASE Social licence to operate,

planning process

FOCUS ON THE WHOLE LIFE-CYCLE OF MINI

In co-operation with:

Kaivannaisteollisuus ry Metsähallitus Mustavaaran kaivos Pyhäsalmi Mines

Sandvik Oy Ab Agnico-Eagle Mines Northland Mines Sakatti Mining 20 PA Nurmi Febr. 6, 2013

21 May 2011

Thank You for your Attention!