Ontario How R&D Will Change Mining

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www.canadianminingjournal.com February 2017

INNOVATIVE ONTARIO HOW R&D WILL CHANGE MINING

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CMJ February2017_Ad pages.indd 2 2017-02-03 10:40 AM FEBRUARY 2017 VOL. 138, NO. 02 CANADIANCANADIANMMiningining JJournalournal www.canadianminingjournal.com

FEATURES TOP 10 MINE BUILDERS 28 A list of the top 10 most important mine builders in Canada’s history: men who have opened up remote regions to development, built corporate empires and enriched the nation all at the same time. MINING IN ONTARIO 10 An aggressive exploration plan has transformed Richmont 28 Gold’s Island Gold mine and boosted production. Now the company’s planning for the next phase of growth. 16 Noront Resources has big plans for its Eagle’s Nest and other properties in the Ring of Fire. But first, it needs the province to deliver on a key piece of infrastructure: a road. 20 A look at current R&D work in Ontario that will make mining safer, more productive and efficient, and lower its impact on the environment. 26 Ontario Mining Association President Chris Hodgson shares the findings of the OMA’s 2016 Economic Report.

BLASTING 20 40 Research from Allied Market Research outlines expected growth in the industrial explosives market, which is dominated by mining. 42 Dyno Nobel marks 150 years since the invention of dynamite by Alfred Nobel.

DEPARTMENTS

5 EDITORIAL | Interim Editor Marilyn Scales highlights Canada’s mining history in honour of the nation’s 150th birthday. 6 FIRST NATIONS | AFN Ontario Chief Isadore Day calls for true 40 partnership between industry, government and First Nations.

IN MY MINE(D) | Recent research by Engineers Without Borders ABOUT THE COVER 8 This month’s cover provided and the Canadian Council for Aboriginal Business bolsters the case for by Hard-Line. mining companies to step up procurement from aboriginal businesses.

43 UNEARTHING TRENDS | Michael Sabatino and Rabinder Sihota Coming in April of EY’s tax services practice outline how the Extractive Sector Canadian Mining Journal looks at Transparency Measures Act will affect miners. the quarry and aggregates industry in Canada, plus a feature report on 44 LAW | Jennifer Nyland and Laura Duke of Lawson Lundell explain material handling. how a recent court decision clarifies when an environmental assessment is required for a B.C. resource project. For More Information Please visit www.canadianminingjournal.com for regular updates on what’s 46 CSR & MINING | Michael Torrance of Norton Rose Fulbright happening with Canadian mining companies and their personnel both here highlights best practices for procurement of goods and services from and abroad. A digital version of the magazine is also available at www.digital.canadianminingjournal.com aboriginal businesses, as outlined in a recent report.

FEBRUARY 2017 CANADIAN MINING JOURNAL | 3

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CMJ February2017_Ad pages.indd 4 2017-02-03 10:41 AM FROM THE EDITOR CANADIANMining Journal

February 2017 Vol. 138 — No. 2 38 Lesmill Rd. Unit 2, Toronto, Ontario M3B 2T5 Proud mining sector Tel. (416) 510-6789 Fax (416) 510-5138 www.canadianminingjournal.com for a strong nation Interim Editor Marilyn Scales Marilyn Scales 613-270-0213 [email protected] anada is celebrating the 150th anniversary of Confederation. In 1867 the Production Manager founding fathers met in Charlottetown built the foundation of a nation truly Jessica Jubb “strong and free”. They did a very good job, too. We can savour their hard work [email protected] asC we join in various celebrations around the country. Circulation Manager Cindi Holder One of the reasons to be proud of Canada is its vast Great Bear Lake and gold at Yellowknife, N.W.T. 416-510-6789, ext. 43544 storehouse of natural resources and the men and Silver-radium ore was discovered at Great Bear Lake. [email protected] enterprises that put us among the world’s premier Both Falconbridge and Inco blew in new smelters mineral producers – gold, uranium, potash, base near Sudbury (1930). Milling began at the Macassa Publisher & Sales metals, diamonds, and the metals of the future. gold mine in Kirkland Lake (1933). The first com- Robert Seagraves Our mineral legacy has also given rise to some of mercial shipment of lithium was made from the 416-510-6891 [email protected] the world’s best technology for finding, mining Pointe du Bois district of Manitoba. and processing those riches. The mining industry, particularly gold, suffered Sales Let’s take a look at the first person to be caught from a severe shortage of labour during the Second Western Canada, Western U.S.A. up in our mineral wealth. While Martin Frobisher World War. Then mining expanded as demand and Quebec searched for the Northwest Passage, he ballasted grew during peacetime, and the United States Joelle Glasroth his ships with shiny yellow rocks. What he thought became the largest consumer of base metals and 416-510-5104 would be his fortune was pyrite, not gold, and his iron ore from Canada. Copper mining took hold at [email protected] mistake was not pointed out until he had made Murdochville, Que. Iron ore was discovered at Toll Free Canada & U.S.A.: another voyage and collected even more rocks. Atikokan, Ont., and nickel in Thompson, Man. 1-888-502-3456 ext 2 or 43734 The lesson is: Never send a ship captain to do a Thanks to the Cold War, Elliot Lake, Ont., became geologist’s job. the Free World’s leading uranium producer. Group Publisher French king Louis XIV granted what are proba- The 1960s saw another boom in mine discov- Anthony Vaccaro bly the first mineral concessions on Cape Breton ery. Lead and zinc were found at Pine Point, Island to Nicolas Denys who discovered coal there N.W.T. Copper deposits were unearthed in the in 1672. For the next 200 years mining was small Highland Valley of B.C. The deposit that became

Established 1882 scale, done to meet local needs. the Brunswick No.12 mine at Bathurst, N.B., was Canadian Mining Journal provides articles and information of The turning point came in the 1870s as mining discovered. Iron ore was found in the Labrador practical use to those who work in the technical, administrative began to see significant development. Not coinci- Trough. Syncrude began mining the first bitumen and supervisory aspects of exploration, mining and processing in the Canadian mineral exploration and mining industry. dentally the Geological Survey of Canada was cre- from the oil sands near Fort McMurray, Alta. Canadian Mining Journal (ISSN 0008-4492) is published ated in 1877. That expertise gave the Canadian (1967). The short-lived Rankin Inlet nickel mine 10 times a year by BIG L.P. Mining. BIG is located at 38 Lesmill Rd., Unit 2. Toronto, ON, M3B 2T5. hunt for minerals the backbone of its success. became Canada’s first mine in the Arctic. Phone (416) 510-6891. The next 100 years saw an accelerated pace of The ’70s and ’80s saw mine start-ups across the Legal deposit: National Library, Ottawa. Printed in Canada. discovery. Nickel and copper were uncovered in country. The Polaris zinc-lead mine on Little All rights reserved. The contents of this magazine are protected by copyright and may be used only for your personal non- Sudbury, Ont. (1883). Lead and zinc were found Cornwallis Island. The Bullmoose and Quintette commercial purposes. All other rights are reserved and commer- leading to the Sullivan mine and town of coal mines in northeast British Columbia. The cial use is prohibited. To make use of any of this material you must first obtain the permission of the owner of the copyright. Kimberley, B.C. (1893). Asbestos was found in the potash mines of Sasktchewan plus new ones opened For further information please contact Robert Seagraves at Eastern Townships of Quebec and first milled in in New Brunswick made Canada in the 1990s the 416-510-6891. 1888. The Klondike gold rush (1896) brought world’s No.1 producer. And let’s not forget the first Subscriptions – Canada: $51.95 per year; $81.50 for two years. USA: US$64.95 per year. Foreign: US$77.95 per year. Single fortune hunters to the North. Gold was discovered diamond mine – Ekati in N.W.T. – that began copies: Canada $10; USA and foreign: US$10. Canadian at Porcupine (1909) and Kirkland Lake, Ont. production in 1998. subscribers must add HST and Provincial tax where The coming of the 21st century saw both highs necessary. HST registration # 809744071RT001. (1911). The copper and zinc deposits at Flin Flon, From time to time we make our subscription list available Man. (1915) were found. Gold was discovered at and lows for our miners, as some of our most to select companies and organizations whose product or Rouyn-Noranda and Val d’Or, Que., as was cop- iconic companies were taken over by foreign inter- service may interest you. If you do not wish your contact ests. Then in 2008, the world’s financial markets information to be made available, please contact us via one per (1920s). The Sherritt-Gordon deposit was of the following methods: Phone: 1-888-502-3456 ext 2; staked in Manitoba (1923). Gold was discovered collapsed taking with them commodity prices. It’s Fax: 416-447-7658; E-mail: [email protected] in Red Lake, Ont. (1925). The first aluminum was a situation from which the mining sector is now Mail to: Cindi Holder, BIG Mining LP, 38 Lesmill Rd, Unit 2, Toronto. ON, M3B 2T5. produced in Arvida, Que. (1926). The merger of beginning to recuperate, although unevenly. We acknowledge the financial support of the Government Mond and International Nickel (1928) created So there you have a quick version of some high- of Canada through the Canada Magazine Fund toward our what was to become a true global powerhouse, lights from Canadian mining history. Now turn to editorial costs. Inco Ltd. (sadly now in foreign hands). The great page 28 and read Stan Sudol’s list of the Top 10 Porcupine fire destroyed the Dome gold mine Canadian Mining Men. Dissenting opinions are (1929). The decade also saw the first coal mine in welcome. These are some of the people who grew southeastern British Columbia. not only an industry but a country into today’s The Great Depression of the 1930s did little to prosperous, 150-year-old Canada. True North, slow mine building in Canada. Radium was found at forever! CMJ

FEBRUARY 2017 CANADIAN MINING JOURNAL | 5

05_CMJ Feb2017_Editorial.indd 5 2017-02-03 4:06 PM FIRST NATIONS

The reciprocal benefits of sharing the lands and wealth with First Nations communities By Isadore Day, AFN Ontario Regional Chief

n a year when many Canadians are expected to trouble or open confronta- celebrate the 150th anniversary of this country, tions for companies who far too many First Nations struggle to celebrate do not actively engage life. As chair of the AFN Chiefs Committee on local First Nations IHealth and Regional Chief of Ontario, I remain communities. ready and committed to do my part to support all of In contrast, when our First Nations across the country. The mental First Nations com- and physical health of First Nations people is linked munities are not seen to land. This is a well-established fact. as full partners, we Creating healthy and sustainable communities by end up with devastat- sharing the land and wealth has benefits for both First ing situations such as Nations communities and those in the extraction that felt on the Ontario industry. We already have a shining example of what results side of James Bay, as from resource revenue sharing being utilized as a key Attawapiskat continues to component in eliminating poverty, a main factor in the detriment struggle with poverty and a per- of First Nations’ health. sistent suicide crises, with limited economic partnership with De Beers. Historically, when the development of a geographic area has the ability to completely alter the landscape and this has been FIRST NATIONS INVOLVEMENT IN imposed on First Nations, such as with mining or deforestation, EXTRACTION PROJECTS PROVIDES THE the measures of expropriation and impacts of exploitation have BENEFITS TO INDUSTRY OF been devastating at the community level. The communities remain in and live off of these lands long after development has HISTORICAL AND CURRENT LOCAL been completed by industry. KNOWLEDGE, LOCAL LABOUR FORCES, Proponents of a resource development that is being proposed, AND FORMAL PARTNERSHIP implemented or remediated in First Nation territories in Canada must be aware of these realities. The cost of mitigating residential OPPORTUNITIES. school realities as directly connected to land policies in Canada must be factored into the cost of doing business with the First Nation rights holders. This is a jurisdictional reality currently The longest running resource revenue sharing agreement in being voiced by the majority of First Nation leaders. Canada between the province of Quebec and the James Bay Today is the day that we reframe the conversation from Cree, was first signed in 1975 and renegotiated in 2002 as the engagement with First Nations as ‘a tick off of the to-do list’ and Paix des Braves Agreement. Between 1975 and 2025 it is esti- consider the reciprocal benefits of engaging local First Nations mated that the Quebec Cree will receive as much as $5 billion in as full partners, with more irons in the fire than industry. The revenue. As a result, the Cree enjoy a high level of prosperity clock is now ticking. Let’s make 2017 the year in which through subsidiary companies such as CREECO and organiza- industry, government, and First Nations come to the table tions like the Cree Mineral Exploration Board. shoulder-to-shoulder, sharing in the reciprocal benefits of full First Nations involvement in extraction projects provides the partnership. CMJ benefits to industry of historical and current local knowledge, local labour forces, and formal partnership opportunities. This, in turn, creates certainty for shareholders, improves both the ISADORE DAY, Wiindawtegowinini, is Assembly of First Nations Ontario corporate and industry image, and mitigates the risk of legal Regional Chief.

6 | CANADIAN MINING JOURNAL WWW.CANADIANMININGJOURNAL.COM

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Partnerships in procurement – aboriginal businesses operating in Canada’s mining sector By Max Skudra and Jeff Geipel

or aboriginal communities across Canada, procurement of ple, the mining industry is well positioned to be a leader in eco- local goods and services by mining companies is a central nomic reconciliation, progressive indigenous business engagement driver of business development creates local jobs and con- and community development, if the conditions are right. Ftributes to local prosperity. Today, companies across Canada are The aim of this research was to investigate current and best increasingly recognizing that developing partnerships with aborig- practices for harnessing the potential of procurement contracts inal communities is a business strategy that mitigates social risk within large mining operations for aboriginal business people and and improves long-term operational security. The Mining Shared aboriginal economic development corporations (AEDCs). The Value (MSV) venture of Engineers Without Borders Canada part- study recommends the creation of a national strategy aligning nered with the Canadian Council for Aboriginal Business (CCAB) federal, provincial and industry training programs, as well as for to conduct national research to investigate the economic and industry to make public targets and report progress on aboriginal social impacts of procurement from aboriginal suppliers and to supplier engagement. As procurement contracts are often the first further develop the business case for mining companies to procure foothold in the door for aboriginal businesses, the study recom- goods and services from aboriginal businesses. mends that industry associations such as the Mining Association The Trudeau government has pledged to invest $8.4 billion of Canada include aboriginal procurement content in their guid- over five years to improve the socio-economic conditions in indig- ance for industry. enous communities. Of that, $96 million will support indigenous Currently, there are an estimated 222 aboriginal businesses organizations to increase their capacity to effectively engage with supplying the extractive industry in Canada. In the past year, 75% the Canadian government. Unfortunately, Maclean’s magazine’s of all aboriginal businesses supplied goods to the private sector. For recent report card on the Trudeau government’s first year in power mining, aboriginal suppliers provide exploration, drilling, camp gave failing grades in its resource development engagement prac- and environmental monitoring services. Our research shows that tices. Indigenous chiefs and communities have said the time for mining companies are designing their engagement with aboriginal declarations and promises is over, and action must now be taken. suppliers in diverse ways. Eight of the 11 mining operations inter- Canadians know that natural resource development cannot con- viewed used frameworks or models to conceptualize their aborigi- tinue to proceed along this fractious, antagonistic path. If the nal engagement, and 64% said they had an active aboriginal federal government is going to actually reconcile the relationship, supplier directory to guide contracting. Hard targets for procure- indigenous peoples, industry and governments must align their ment contracts were not common across the country. Companies efforts and pursue economic development opportunities together. generally prefer instead to have ‘set-asides’ or sole-sourcing agree- The convergence of indigenous actions, public attention, legal ments for aboriginal suppliers that are agreed upon in impact and rulings and political policy is spurring corporate leaders to benefit agreements (IBA) or other contractual arrangements. improve practices in Canada’s mining industry. This new direc- The business case for procuring goods and services from tion for the sector is helping to drive economic reconciliation aboriginal suppliers can be framed in terms of both obtaining with indigenous people in Canada. This study documents the a social licence to operate and building a reliable, efficient current challenges the mining sector is facing as companies aim supply chain for operations. Prioritizing supply contracts with to improve engagement and offers several recommendations for aboriginal communities is a powerful tool to improve relationships government, industry and aboriginal community stakeholders to and gain local support. Partnerships demonstrate a willingness improve co-ordination, communication and partnerships. to work together and compromise, which helps prevent Where reconciliation can become reality is in the current and conflict and creates a more productive operating environment. future potential of the indigenous economy, today estimated to be Positive relationships with local communities also demonstrate $30 billion. The number of aboriginal people under 25 years of responsible corporate behaviour and can improve a company’s age is more than 1.5 times the Canadian average and it is esti- reputation. CMJ mated that closing education and training gaps could contribute $400 billion to the GDP by 2026. If the Mining Industry Human MAX SKUDRA is the director of research and government relations, Resource Council estimates are correct and the natural resources Canadian Council for Aboriginal Business. JEFF GEIPEL is the venture sector will have a labour force deficit of more than 125,000 peo- Lead for the Mining Shared Value program, Engineers Without Borders.

8 | CANADIAN MINING JOURNAL WWW.CANADIANMININGJOURNAL.COM

08_CMJ Feb2017_In my mined.indd 8 2017-02-03 12:38 PM CMJ February2017_Ad pages.indd 9 2017-02-03 10:41 AM By JaneWerniuk 10-14_CMJ Feb2017_Richmont Gold.indd 10

Photo: Richmont Mines 10 |

CANADIAN MINING JOURNAL ISLAND GOLD RICH WITH RICH WITH POTENTIAL WWW.CANADIANMININGJOURNAL.COM 2017-02-03 11:41 AM ISLAND GOLD MARILYN_KICKER

Richmont turns steady producer into shining star

By D’Arcy Jenish

or three decades, from 1981 till 2011, Richmont Mines of Rouyn-Noranda, Que., ticked along as a sleepy, conser- Fvatively managed operator of shallow, but short-lived underground gold mines – two in Newfoundland, four in Quebec and, most recently, the Island Gold mine in Dubreau- ville, Ont., 83 km northeast of Wawa. Richmont may well have continued on the same course but for the arrival in 2012 of new investors, a change in senior management and a major discovery at Island Gold that has the company poised for a growth spurt that could catapult it into the ranks of mid-tier producers. CONTINUED ON PAGE 12

The Island Gold mine, near Wawa, Ont., is finally giving up high grades and fuelling Richmont Mines’ growth

FEBRUARY 2017 CANADIAN MINING JOURNAL | 11

10-14_CMJ Feb2017_Richmont Gold.indd 11 2017-02-03 11:41 AM Underground surveying at the Island Gold mine. Photos: Richmont Mines Richmont Photos:

Above left: Grades between 20 and 30 g/t gold are often drilled at Island Gold. Right: Visible gold.

“Island Gold is a transformational asset,” rounded himself with highly qualified They took a very disciplined approach, but says Renaud Adams, president and CEO. professionals, but maintained a tight rein, that did not create growth.” “It’s very exciting. Our objective is to grow especially on the financial side of the oper- In 2003, Richmont made its first foray the reserve base and at the same time we’re ation. into Ontario by investing $1 million to accelerating development and positioning “His business model was based on strong acquire a stake in the Island Gold property the mine for growth.” expertise in underground mining, main- and the nearby but defunct Kremzar mine Richmont was founded by Jean-Guy taining a tight capital structure and no and mill from then owner Patricia Min- Rivard, an insurance broker turned real debt,” says Adams. “They acquired small ing of Toronto. By 2005, Richmont had estate investor turned miner. He sur- mines and tried to stretch the life of them. invested $12.6 million into Island Gold,

12 | CANADIAN MINING JOURNAL WWW.CANADIANMININGJOURNAL.COM

10-14_CMJ Feb2017_Richmont Gold.indd 12 2017-02-03 11:41 AM Initially, Island Gold was a low grade, underground mine and truly nobody had a clue that it would become what it is today.

which raised its stake in the property to Under the previous management regime, 55%, and it had taken over as operator. mining was taking place from surface to a Two years later, in October 2007, the depth of 400 metres and, most years, the partners put the mine into production Island Gold operation was losing money Renaud Adams and the following November Richmont or turning a small profit. The new team acquired the outstanding shares of Patricia launched an aggressive exploration pro- Mining and became sole owner of Island gram and to date have completed nearly the underground infrastructure in order to Gold. At the time of the takeover, proven 42,000 metres of exploratory and delinea- continue exploring and to increase produc- and probable reserves stood at 1.05 million tion drilling. tion. The company has extended the ramp tonnes, which would yield an estimated That led to the transformational dis- from 400 metres down to 860 metres and 286,000 oz. of gold, sufficient for a mine covery of deposits hosting as much as a financed the work by issuing shares in life about four years. million ounces of gold at depths of 400 2015 and 2016 that led to a 25% dilution. The elder Rivard died in March 2009 to 1,000 metres – and the deposits are Production from the mine has trended and his son Martin succeeded him as pres- open at depth. “Initially, Island Gold was steadily upward – from 40,000 oz. in 2014 ident and chief executive officer. But three a low-grade, underground mine and truly to 55,000 oz. in 2015 and 80,000 oz. last years later he announced his resignation, nobody had a clue that it would become year. The company is currently only min- effective in August 2012, and the installa- what it is today,” says Adams. ing to a depth of 740 metres, but plans to tion of new management led to significant The discovery of such a significant new begin extracting ore from depths of 850 changes for the company and Island Gold. resource has made it necessary to expand metres this year. CONTINUED ON PAGE 14

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10-14_CMJ Feb2017_Richmont Gold.indd 13 2017-02-03 11:41 AM Photos: Richmont Mines Richmont Photos:

Longitudinal view of underground exploration at Island Gold. Visible gold in the drill core.

Growing for gold ore at the Kremzar mine mill, which was mill to 1,100 t/d – an expansion that will Adams and his team have now set their built in the late 1980s and was designed to cost an estimated $15 million. sights on boosting production to 100,000 handle 850 tonnes of ore per day. Richmont may have to raise that money oz. per year and eventually as high as Richmont has typically been processing publicly and management is currently pre- 150,000 oz. a year, but that means they 900 t/d and, on occasion, has put through paring a preliminary economic assessment need to increase their milling capacity. 1,000 t/d. However, in order to boost pro- (PEA), which it plans to release it in the Since the mine was put into production duction to 100,000 oz. per year the com- first half of this year. It will contain updated in 2007, the company has been processing pany need to expand the capacity of the reserve and resource estimates and will outline plans to expand the mill and to extend the ramp to 1,000 metres below surface. All of this, Adams says, is merely phase one of an ambitious development and expansion plan that will see Richmont mining at 1,000 metres and processing up to 1,200 tonnes of ore per day while maintaining sufficient reserves to ensure a seven- year life of mine. Phase two will involve further exploration to extend the resource to a depth of 1,500 metres, at which point the company may have to sink a shaft CAN’T AFFORD TO GET IT WRONG? rather than extending the ramp. JUST ASK GOLDER. Furthermore, Adams sees the developments at Island Gold as first steps in the opening of a new Ontario gold camp that could be creating jobs and producing prof- its for years to come. Richmont alone holds From scoping studies to full feasibility, Golder’s global mining team of over the rights to 77 sq. km of land around the 1700 consultants in mine engineering and geology, mine waste, mine water Island Gold Mine. and mine environment, can help navigate the challenges faced in the early “Quite frankly, we’ve been drilling within stages of any mining project. two square kilometres of the mine since 2011,” says Adams. “We have nine very Visit Golder during the PDAC Convention at Booth #342 to learn how we specific targets identified just within a seven can help you advance your project along the right path. kilometer radius of the mine. With 77 kilometres, we can drill for years to come. “I really see this whole camp in years to come being more focused on exploration [email protected] and better understanding of the geology,” www.golder.com he adds. “It’s pretty much virgin territory in terms of deep exploration.” CMJ

14 | CANADIAN MINING JOURNAL WWW.CANADIANMININGJOURNAL.COM

10-14_CMJ Feb2017_Richmont Gold.indd 14 2017-02-03 11:41 AM CMJ February2017_Ad pages.indd 15 2017-02-06 12:24 PM ROAD TO THE RING Noront is eager to begin development at Eagle’s Nest, the first of many mines OF FIRE By Marilyn Scales the deposit in 2007 and sparked a staking First Nations’ Kiikenomaga Kikenjigewen rush that made the Ring of Fire the most Employment and Training Services and pirits were high in March 2015 written about new camp since Hemlo. Confederation College of Applied Arts when the Ontario government The Ring of Fire lies about 500 km north- and Technology in Thunder Bay. The announced at the PDAC it was east of Thunder Bay, Ont. The area is cen- innovative Ring of Fire Aboriginal Train- Smoving forward with an all- tred on McFaulds Lake on the edge of the ing Alliance (RoFATA) provides skills- weather road into the Ring of Fire. Here we James Bay Lowlands. As many as nine First based instruction and guidance. The effort are almost two years later, and what do we Nations may be impacted by mineral devel- is working. About 60% of the workforce have for the more than $750,000 in tax dol- opment, making consultation complex. at Eagle’s Nest is from the First Nations. lars that were spent? The answer: Not much. Noront has taken care to engage the In 2015, Noront received the PDAC’s The province has consulted with vari- nearby communities in consultation and national environmental and social respon- ous First Nations who would welcome a planning. Its programs are some of the sibility award. The recognition was for road. It has yet to announce a plan, route best. The company meets regularly with RoFATA as well as Noront’s support of or schedule for construction. First Nations chiefs and their councils. Mining Matters programs, DAREarts, and Seeing the politicians make a decision Town hall meetings and open houses are the Mining Movie Making Youth Camp. and actually build a road is the one thing held frequently. All written communica- Noront has signed agreements with the Alan Coutts, president and CEO of Noront tion is supplied in English, Ojicree, Cree Webequie and Marten Falls First Nations, Resources, says is vital to get the Eagle’s Nest and French. and it is from these communities that nickel-copper-platinum-palladium develop- The company has established an aborig- many of its employees have been hired. ment under way. The company discovered inal training alliance with the Matawa Talks are continuing with other First

16 | CANADIAN MINING JOURNAL WWW.CANADIANMININGJOURNAL.COM

16-18_CMJ Feb2017_Ring of Fire.indd 16 2017-02-03 11:42 AM As ice roads become unreliable, the need for an all-weather road to Eagle’s Nest becomes even more important.

MARILYN_KICKER

In summer the Eskay camp is accessible only by air.

Top: Core from the Blackbird chromite deposit. lion to buy all of Cliff’s interests in early Middle left: Core from the Eagle’s Nest nickel-copper VMS 2015. The deal included the Black Thor deposit. and Black Label chromite deposits, a 70% Middle right: Alan Coutts, president and CEO of Noront interest in the Big Daddy chromite deposit Resources. (with KWG Resources), and an 85% stake Bottom: Longitudinal view of the chromite deposits found in in the McFaulds Lake copper-zinc deposit. the Ring of Fire. Last year Noront acquired 75% of Mac- Donald Mines Exploration’s interests in the Ring of Fire. The $750,000 all-share transaction includes the Butler VMS and Sanderson ferrogabbro intrusion. Thus Nations in the hope they all will benefit area had a catchy name, it rose to promi- bulked up, Noront became the largest from resource development. nence in the collective mind. landholder in the Ring of Fire. The com- By the end of 2011, the Ring of Fire pany holds rights to 357 claims and one Noront’s first find was touted as one of the largest potential lease that total around 810 km2. De Beers Canada made the first volcano- mineral resources in Ontario, rivalling the genic massive sulphide (VMS) discovery Sudbury Basin and Kidd deposits in Tim- Plans for Eagle’s Nest in the area in 2002. A year later six more mins. Thirty-five junior companies were The Eagle’s Nest deposit contains proven deposits were found. active in the area, as was American iron ore and probable reserves of 11.1 million The first major discovery in the area was behemoth Cliffs Natural Resources. tonnes grading 1.68% Ni, 0.87% Cu, 0.87 made in 2007 by Richard Nemis, who Cliffs abruptly slammed the brakes on g/t Pt, 3.09 g/t Pd and 0.18 g/t Au. The was at that time the president of Noront its Ring of Fire properties in 2013, after it deposit also has 9 million inferred tonnes Resources. He unearthed what is now the had already spent $550 million to acquire at 1.10% Ni, 1.14% Cu, 1.16 g/t Pt, 3.49 Eagle’s Nest deposit, a VMS occurrence and explore a large number of claims. The g/t Pd, and 0.3 g/t Au. enriched with platinum group metals. company had a change of management First up is the underground develop- Eagle’s Nest was not the only deposit that soon pulled it out of Canada, not ment of Eagle’s Nest and a 3,000-t/d mill drilled in the Ring of Fire. High grade only in the Ring of Fire but also its iron plus surface infrastructure. According to chromite mineralization – Blackbird, Black ore projects. the 2012 feasibility study (that is being Thor, Big Daddy and Black Label – were For Noront, this was the opportunity updated), the initial capital investment will also discovered. Their grades were among to expand its holdings in the Ring of Fire. be $609 million. Construction will take

the best in the world. And now that the The spunky junior borrowed $20 mil- CONTINUED ON PAGE 18 Resources Noront of courtesy images All

FEBRUARY 2017 CANADIAN MINING JOURNAL | 17

16-18_CMJ Feb2017_Ring of Fire.indd 17 2017-02-03 11:42 AM three years, the life of the mine is 11 years. MAJOR FINDS IN RING OF FIRE The primary infrastructure need is an all- Property Type Ownership Status weather road. Coutts is clear that a government decision on a road and its timely start Eagle’s Nest Ni-Cu-PGM Noront 100% Feasibility of construction are imperative if Noront is Blackbird Chromite Noront 100% Defined Resource to begin production in 2020. Beyond that, Eagle Two (within & Ni-Cu-PGM Noront 100% Mineral the company will build a storage, handing, to adjacent Blackbird) Occurrence and loadout facility at Nakina about 280 Black Thor & Black Label Chromite Noront 100% Defined Resource km to the south. Big Daddy Chromite Noront 70% The Eagle’s Nest deposit is near vertical KWG Resources 30% Defined Resource and narrow, making it well suited to blast McFaulds 1 and 3 Cu-Zn Noront 85% hole stoping with cemented backfill. Access KWG Resources 15% Defined Resource will be gained through twin declines from Butler Cu-Zn Noront 75% Mineral a portal to underground processing facili- MacDonald Mines 25% Occurrence ties. The use of tele-remote equipment and 5-01 Deposit Cu-Zn Metalex Mineral electric trucks will enhance safety as well as Ventures 100% Occurrence reduce fuel and ventilation needs. Black Horse (Koper Lake) Chromite Fancamp Exploration owned; Defined Resource One notable part of the design is the optioned to a joint venture storage of all tailings underground, which of KWG Resources (80%) reduces the surface footprint of the proj- and Bold Ventures (20%) ect. And by not building a tailings manage- Black Creek Chromite Probe Metals 100% Defined Resource ment facility on the surface, the prospect of MacFadyen Kimberlite KWG Resources 70% Mineral a dam failure is eliminated. The aggregate Noront 30% Occurrence for surface construction will be sourced Kyle Kimberlite Noront 50% underground from highly competent gran- KWG Resources 50% odiorite host rock. In this way, there will be Blue Jay (AT12) Ni-Cu-PGM Noront 100% Mineral enough void spaces underground to store Occurrence the cemented tails that always increases in Triple J Gold Noront 100% Mineral volume compared to the ore extracted. Occurrence The underground mill will be cut out Thunderbird Fe-Ti-V Noront 100% Mineral of the same granodiorite rock. It is to be a Occurrence conventional facility – crushing, grinding, flotation and dewatering – to produce a underground before being pumped to the along strike and at depth. Noront believes a single concentrate containing nickel, cop- backfill plant. high grade concentrate – in excess of 50%

per and platinum group metals. The con- Part of the concentrate and tailings Cr2O3 – could be made. centrate will typically contain 10.2% Ni, thickener overflows will feed the effluent North American consumption of ferro- 5.7% Cu, 19.0 g/t Pd, 5.0 g/t Pt, 1.0 g/t Au treatment plant before being recycled as chrome is about 400,000 t/y, and there are and 13.0 g/t Ag. process water. No process water will be no producers on the continent. Noront’s Crushed ore will feed two separate returned to the environment. 61% Cr product would probably sell for semi-autogenous grinding (SAG) mills: a 25% or 30% less than imported material. 5-by-5-metre one for net-textured ore and Plans for Blackbird Noront’s land position in the Ring a 3.5-by-3.5-metre one for massive ore. The next deposit on Noront’s to-do list is of Fire means that Eagle’s Nest and Pebbles (oversize) from both SAG will pass the Blackbird chromite deposit. Here, the Blackbird are only the beginning. Fur- through a single cone crusher and return to aim is to start small by developing the mine ther in the future are the Black Thor, the net-textured SAG mill. and a 200,000 t/y ferrochrome plant. Only Black Label and Big Daddy chro- The flotation circuit includes roughers, about 500,000 tonnes of ore annually will mite deposits. There is another nickel- cleaners, scavengers and recleaners. Fine need to be mined from Blackbird, making copper-PGM deposit, AT-12, and two material from the massive SAG line will be the plan what Coutts called an “entry level copper-zinc deposits, Butler and fed to the primary cleaner. The fine prod- project.” McFaulds. The company holds two prop- uct from the net-textured SAG mill will go The Blackbird deposit is only about 1 km erties, Kyle and MacFayden, that are pro- first to the roughers and then through three from Eagle’s Nest, and the two mines could spective for diamonds. There is gold at the stages of scavenging. Underflow from both share both underground and surface infra- Triple J deposit (perhaps the first of many mills will pass through a regrind ball mill. structure. Blackbird contains measured and gold finds). And there is the Thunderbird The concentrate will be drawn from the indicated resources of 20.5 million tonnes titanium-vanadium deposit.

net-textured scavenger underflow and the averaging 35.76% Cr2O3 with a chrome-to- Given the complex and very promis- primary cleaner. It will be thickened and iron ratio of 1:1.97. The inferred resource ing geology of the Ring of Fire, Noront is pumped to the surface for filtering, etc. may contain another 23.5 million tonnes likely to become a very well known, and Tailings will be thickened and filtered grading 33.14%. The deposit is open both long lived enterprise. CMJ

18 | CANADIAN MINING JOURNAL WWW.CANADIANMININGJOURNAL.COM

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minexpo-CMJ.indd 1 1/26/2017 12:00:22 PM CMJ February2017_Ad pages.indd 19 2017-02-03 10:45 AM PUSHING BOUNDARIES A snapshot of mining R&D activity in Ontario

By Alisha Hiyate

s part of its “Innovation Agenda” we’re going to start losing our leadership Camiro the federal government an- role in the world in mining,” says Vic The Canadian Mining Industry Research nounced last year that it would Pakalnis, associate vice-president of Lau- Organization (Camiro) was established in Ainvest $800 million over four rentian Mining Innovation and Technol- the mid-1980s with a focus on safety fol- years to support research and innovation in ogy (LMIT) organization in Sudbury, lowing rockburst incidents in Sudbury-area five key sectors of Canada’s economy. Ont. mines. The collaborative research organiza- The identity of those sectors is still “Whenever there’s a down cycle, it’s tion ran the Deep Mining Research Con- uncertain, but with the funding expected tough to get money invested from the sortium (DMRC) for nine years until the to flow starting this year, we’ll soon find industry and that’s where government has program wrapped up last year. out if mining is one of them. to look at its policies and also do some One DMRC project conducted with What is certain is that Canada’s min- investing.” the University of Ottawa examined the ing sector could use more investment: We With the potential of new investment to physiological effects of heat stress in deep only spend about $550 million annually come, CMJ decided to look at the mining mining environments on the human on mining R&D and innovation com- R&D and innovation that’s happening in body. A practical guide to identifying pared with $2.8 billion in Australia. Ontario, the focus of our Feb/Mar issue. and mitigating the symptoms of heat “Unless we have the proper level of Here’s a look at just some of the activity stress was produced as a result. Another

investment in research and innovation and organizations doing the work. project investigated the use of an acrylic- iStockphoto.com BsWei, Photo:

20 | CANADIAN MINING JOURNAL WWW.CANADIANMININGJOURNAL.COM

20-25_CMJ Feb2017_R&D.indd 20 2017-02-03 11:44 AM MARILYN_KICKER

Harold Gibson

sity: the Mining Innovation, Rehabilitation kind from 22 partners in and Applied Research Corp. (Mirarco), academia, industry and Mineral Exploration Research Centre government. (MERC), the Vale Living with Lakes Cen- Led by MERC direc- tre, and the Centre for Research in Occu- tor Harold Gibson, pational Safety and Health (CROSH). the project will aim to While Mirarco is a not-for-profit, incor- transform the under- porated research organization founded in standing of how base 1998 whose focus is applied research to and precious metals were formed during manage risks in the mining sector, the other the Precambrian era. It will go beyond centres are academic units of Laurentian. creating models of deposits or districts One recent Mirarco project is a “Baby” and instead look at systems, searching hydraulic air compressor (HAC), currently for geological, geochemical and geophys- at the laboratory pilot scale, that could even- ical differences between deposit rich areas tually offer an energy efficient way to cool and barren areas that appear geologically deep mines. Another project, the Offshore equivalent. Passive Photo-Voltaic (OPPV) solar power Laurentian’s Vale Living with Lakes project, is being tested in the waters of the Centre has created a new industrial Mediterranean near Malta. Used in tailings research chair position in biomining, based plastic spray-on liner that could ponds, the solar panels could provide a bar- bioremediation and science communica- be used in ground support applications rier between wildlife and the tailings while tion after receiving a $630,000 investment instead of screening and shotcrete. generating electricity for the mine. from the Northern Ontario Heritage Camiro’s Diesel Emissions Research Ini- In September, MERC received $49 Fund last spring. The five-year position tiative (DERR), which is at the end of its million from the federal government’s was filled in July by Nadia Mykytczuk. second phase after six years, looked at the Canada First Research Excellence Fund Mykytczuk’s work will focus on commer- effectiveness of technologies such as diesel (CFREF) for its seven-year, $104-million cializing biomining and bioremediation particulate filters in reducing emissions Metal Earth project. Metal Earth, which is technologies, for example, using microbes into underground mines. DERR’s work aimed at lowering the risk of mineral explo- to liberate metals from ore or mine waste, showed the filters, which can be retroac- ration and increasing discovery rates, will or to eliminate problematic mining waste tively fitted onto large diesel mining equip- receive the rest of its funding in cash and in CONTINUED ON PAGE 22 ment or smaller utility vehicles, could capture well over 95% of diesel particulates and harmful substances. Camiro is looking for funding to extend the program to assess the effectiveness and safety of fourth generation diesel engines, which were designed for surface use in the transport truck industry, in underground mining applications.

Laurentian Mining Innovation and Technology (LMIT) The Laurentian Mining Innovation and Technology umbrella organization is com- posed of four centres at Laurentian Univer-

Laurentian University received $49 million in federal

Photo: BsWei, iStockphoto.com BsWei, Photo: funding for its Metal Earth project last year. University Laurentian Photo:

FEBRUARY 2017 CANADIAN MINING JOURNAL | 21

20-25_CMJ Feb2017_R&D.indd 21 2017-02-03 11:44 AM CEMI and Nordic Minesteel Technologies with the mine development canopy system.

OCTOBER 18-19 2017

PLACE BONAVENTURE, CEMI Photo: MONTREAL, QC such as arsenic in tailings. Of particular Maestro Mine interest is the development of technolo- Ventilation’s gies that can work in colder environments, Vigilante AQS such as northern Canada. system. In 2015, CROSH announced a three- year study on the mental health of miners. The $400,000 study, funded by Vale, will include a comprehensive survey including workers from all occupational groups at Vale’s operations in Ontario. A multi- EXPLORE. Ventilation Mine Maestro Photo: disciplinary team from CROSH will work DISCOVER. closely with a Vale/United Steel Workers joint occupational health committee as the LEARN. Mining Mental Health project proceeds. build and commercialize the canopies. The The study will shed light on an area second phase of the project will involve that has so far received little attention and development of the equipment needed for study – mental health in the mining indus- material handling of the rock away from try and its links to productivity, absentee- the face. Join us: aemq.org/Xplor ism, injury and quality of life. Another technology that CEMI has supported through its Innovation & Prosperity CEMI Office (IPO) is ColdBlock Technologies’ Incorporated in 2007, Canada’s Centre for ColdBlock Digestion. The technology Excellence in Mining Innovation (CEMI) offers an alternative to the conventional helps solve mining industry challenges methods used in mining assay labs – acid from the R&D to implementation and digestion – with benefits in safety, turn- commercialization from exploration to around times, cost and productivity, since environmental sustainability. it can be automated. ColdBlock has gone CEMI and its partners have developed a through research, demonstration and oper- mine development canopy system focused ational scale implementation phases, and is on increasing advance rates and reducing now being commercialized. OFFICIAL PRESENTER costs in underground mine development. The $35-million business-led NCE, The robust, movable canopy protects per- Ultra Deep Mining Network (UDMN), sonnel and equipment in the development managed by CEMI, funded by the federal heading from rock falls and rockbursts government and mining industry, addresses while allowing simultaneous activities in challenges in ultra-deep mining conditions the heading. CEMI has partnered Nordic below 2.5 km. With 76 members, 25 proj- Minesteel Technology in North Bay, to ects with commercial viability in rock stress

22 | CANADIAN MINING JOURNAL WWW.CANADIANMININGJOURNAL.COM

20-25_CMJ Feb2017_R&D.indd 22 2017-02-03 11:44 AM Geologists in Namibia using Minalytix’s MX Deposit mobile app on a tablet.

risk reduction, energy reduction, productivity, and improved human health. Recently, UDMN recognized its members for their innovative work: Jannatec Technlogies is working on a new helmet and communications system for underground miners so they can be alerted to major pieces of equipment that are nearby; Maestro has developed and commercialized a digital gas sensor that is easier to calibrate and more reliable in underground readings; and Mira Geoscience’s 4-D multi-disciplinary data management system moni- tors and assesses the risks of geotechnical

Photo: CEMI Photo: changes taking place underground, such as rockbursting and seismicity. Minalytix Photo: facilitates innovation and commercializa- lished a Northern Ontario Technology Norcat tion activities of small and medium size Development Site at Norcat to develop Founded in 1995 in Sudbury, the North- enterprises in northern Ontario. and test surface and underground diamond ern Centre for Advanced Technology Several companies in the mining services drilling technology. The site was funded (Norcat) is a private, non-profit organi- space are developing interesting products by a $1.37-million grant from the North- zation that provides training and devel- with Norcat’s support. ern Ontario Heritage Fund Corporation opment programs and facilities, and also In September, Boart Longyear estab- CONTINUED ON PAGE 24

Photo: Maestro Mine Ventilation Mine Maestro Photo: MURCHISON MINERALS LTD. CSE:MUR

VMS Zinc/Copper/Silver - Brabant-McKenzie, Central Saskatchewan

Surface 1000 m NEW - 5000 m 900 X 300 m drill program Top 600m below surface Brabant-Mckenzie Deposit begins mid- February 2017 EM Conductor C UNTESTED 1000 m

EM Conductor B EM Conductor A UNTESTED UNTESTED 1400 X 600 m Top 490 m below surface

Current NI 43-101 Resource Shares Outstanding: 25.3 million Indicated: 1.5 MT 9.2% Zn, 0.8% Cu [email protected] Inferred: 3.0 MT 5.6% Zn, 0.6% Cu www.murchisonminerals.com

FEBRUARY 2017 CANADIAN MINING JOURNAL | 23

20-25_CMJ Feb2017_R&D.indd 23 2017-02-03 11:44 AM ONTARIO R&D Photo: Boart Longyear Boart Photo:

The crew at Boart Longyear’s technology development site in Sudbury.

(NOHFC) and a matching corporate capi- access the system is an internet connection. tal investment. The MX Deposit Android app – the At the site, the company has begun to first of its kind in the mining and explora- test and develop proprietary technologies tion industry – is a supporting module to Hard-Line’s Teleop generic station. designed to increase drilling productivity, the web platform. This “true” mobile app is Hard-Line Photo: improve safety, increase efficiency and a native Android application, and allows for Teleop Auto, an upgrade to the Teleop reduce drilling costs. Some of the testing more efficient data collection in the field. system, allows the teleoperation of one will include next-generation Roller Latch Users can browse drill holes in their project machine from one chair, with autono- and drilling rod technologies, as well as and assign holes to themselves for offline mous driving features. Teleop Auto will Boart Longyear’s TruCore core orientation data capture. The Android tablet can then automatically drive the machine through system and TruShot magnetic survey tool. be taken into the field or core shack where a predetermined path. Once the operator For the long term, there is a growing the user can enter drill hole and sampling has acquired a full load, they can use the need for technologies that will help reduce data, which is automatically synchronized automatic steer, speed, and braking func- the costs of mineral exploration and pro- to the web when they get back to the office tions to send the machine to dump at a duction related drilling and decrease the with an internet connection. specified location. In September, Hard- time it takes to define, sample, validate The flexible software can be used for Line officially launched Teleop Auto at and mine mineral resources, and Boart exploration or grade control by junior explo- MINExpo in Las Vegas, demonstrating the Longyear is committed to developing new ration companies or major mining compa- technology by operating a load-haul-dump mineral exploration and production tech- nies and can be quickly configured to meet machine located at Norcat’s test mine near nologies to meet those needs. each project’s unique requirements using an Sudbury from the trade show floor. Boart Longyear has also operated the intuitive set of administrative screens. Hard-Line’s most recent upgrade, Pyrite Road Technology Development Site Minalytix recently announced a partner- Teleop Multi, allows the teleoperation of in Adelaide, South Australia, since 2015. ship with Geosoft to release MX Deposit multiple machines from multiple opera- Sudbury-based startup Minalytix offers commercially. tor’s stations, one at a time. The operator core-logging software that simplifies the Dowling, Ont.-based Hard-Line has can select from a pool of machines that collection, management and sharing of tested its Teleop and Teleop Auto telere- have been placed on their operator station. drill data. The company’s MX Deposit mote operating systems at Norcat’s test When operating one of these machines all software is a cloud-based, software-as-a- mine. Teleop allows the control of heavy other machines connected to the chair will service (Saas) product, which means users machinery from a distant and safe loca- shut down. pay on a monthly or annual subscription tion. It does not require operator line of basis. With no initial software purchase, sight and can be used on any type, make, Queen’s University no on-premise IT requirement, and no model, or year of machine. The technology The Mining Systems Laboratory at Queen’s need to maintain servers, install software, allows for continued operation during shift University is a multi-disciplinary research or check-out licenses, all that is required to changes and after blast cycles. group that focuses on field robotics and,

24 | CANADIAN MINING JOURNAL WWW.CANADIANMININGJOURNAL.COM

20-25_CMJ Feb2017_R&D.indd 24 2017-02-03 11:44 AM University of Toronto mining drone. Photo: University of Toronto of University Photo:

in particular, on mobile robotics and related applications in

Photo: Boart Longyear Boart Photo: mining. This year Dr. Joshua Marshall, director of the MSL, and three other graduate student researchers from Queen’s are working on-site in Örebro, Sweden, with engineers from Atlas Copco Rock Drills AB and with Örebro University’s Centre for Applied Autonomous Sensor Systems (AASS). Their collaboration involves researching new and advanced algorithms for extremely fast autonomous underground tramming, as well as on the development of admittance-based control schemes for autonomous loading of LHD machines.

University of Toronto At the University of Toronto’s Lassonde Institute of Mining, one area of research is on understanding the ice-content, heat-transfer and fracturing of frozen and thawing rock masses in high-latitude Photo: Hard-Line Photo: underground mines. In cases where a mineshaft must penetrate permafrost, heat generated from ore-extraction and equipment begins to melt the permafrost in the area isolated around the shaft. While frozen rock is considered stable, it must be stabilized as it thaws. Prof. John Harrison and PhD candidate Greg Gambino are taking a qualitative approach to understanding the thermodynamic and mechanical implications of thawing rock masses, with the goal of better predicting instabilities and implementing reinforcements in the rock face in an economical and timely way. Current research focuses on site-specific scenarios, but Har- rison and Gambino have uncovered other possible uses for the research, most related to the impact of climate change on surface mines and hydrogeology. In partnership with the University of Toronto Institute for Aerospace Studies, Prof. Kamran Esmaeili and MASc Candidate Thomas Bamford are optimizing mining processes with the use of drones, acquiring real-time, high-quality data. Current data-collection practices are time consuming and can expose personnel to hazards. Drones allow for rapid, accurate data collection over large areas, frequently including real-time post-blast rock fragmentation analysis, inspection of excavations and earth works and hyperspectral mapping, etc. Using this information, researchers are able to develop strategies and systems that continuously reconcile mining models with real-time data, allowing for greater insights, reduced uncertainties and for engineers to target areas of concern. Drones are now being used in the mining sector for aerial surveying and volume calculations. Esmaeili and Bamford’s research will bring novel applications to the field. CMJ

FEBRUARY 2017 CANADIAN MINING JOURNAL | 25

20-25_CMJ Feb2017_R&D.indd 25 2017-02-03 11:44 AM Ontario Mining Association members envision the future

By Chris Hodgson, Ontario Mining Association President

hile our business is digging more alternative energy sources, global use decade, an amount that is twice the rate up minerals and metals, the of mining products will only grow. As a of inflation, and are 37% higher than the core focus of Ontario min- place known around the world for its safety average for goods producing industries in Wers is unearthing people’s and environmental leadership, efficiency, Ontario. Worker health and safety is a top potential. OMA members have committed productivity and corporate social respon- priority. In 2016, the province’s mining to devising an industry-wide innovation sibility, Ontario has every opportunity not industry met its zero fatality objective. This strategy to enable responsible and sustain- just to be a model mining and smelting is a significant achievement, marking yet able growth of Ontario’s mining industry, jurisdiction, but also an indispensable link another step toward achieving zero harm. while delivering accelerated improvement in the world’s mineral supply chain. As Ontario’s minister of labour recently in health, safety and environmental per- Though the number fluctuates with var- pointed out, “Ontario’s mining sector formance through collaborative action and ious commodity price changes, the value of has a strong culture of health, safety and innovation. Ontario’s mining production is the highest collaboration, which continues to deliver Mining has been a part of Ontario’s fab- in Canada – $10.8 billion in 2015, despite positive results in the workplace for min- ric since the 1800s. The major discoveries the challenging market conditions – and ing workers.” Recent data support this. and mine development of the 20th century the sector makes significant tax contribu- According to Ontario’s Workplace Safety underpinned Ontario’s rise to the status tions to all levels of government, which and Insurance Board, Ontario industry of Canada’s most populous and wealthiest pay for public priorities like healthcare, sectors are demonstrating continuous province, and supported Canada’s develop- education and infrastructure, supporting improvement and mining companies com- ment as an industrialized and globally com- Ontarians’ standard of living. Mining offers pare favourably with other workplaces. petitive nation. As Ontario moves toward versatile and rewarding careers, particularly The 2015 lost time injury (LTI) average a low carbon, innovation and knowl- for young people. Wages in the mining rate for 2015 Schedule 1 employers was edge-based economy in the 21st century industry have increased 40% over the last 0.85, down from 0.92 in 2014. Of 16 and beyond, mining will continue to play a crucial role. Minerals and metals extracted and Though the number fluctuates with various processed through mining are essential, irreplaceable components of modern tech- commodity price changes, the value of Ontario’s nology and the building blocks of innova- mining production is the highest in Canada – tion – from lifesaving medical devices to $10.8 billion in 2015, despite the challenging market planet saving green devices like solar panels, conditions – and the sector makes significant tax wind turbines, hybrid cars and advanced energy solutions. With society shifting away contributions to all levels of government supporting

from fossil fuel dependence and relying on Ontarians’ standard of living. iStockphoto.com akindo, Photo:

26 | CANADIAN MINING JOURNAL WWW.CANADIANMININGJOURNAL.COM industry sectors, seven sectors were above have proven to be successful in securing petitiveness. In particular, our jurisdiction this rate, nine were below. In 2015, min- benefits for many aboriginal communities is burdened with high labour and energy ing was below the Schedule 1 LTI average, While previous investments have estab- costs, which limit revenue potential and with a rate of 0.63 - down from 0.64 in lished Ontario’s position as the major pro- dampen investment, especially in difficu 2014, and continuing the improving trend ducer of metals and minerals in Canada, economic times. Notwithstanding, min- of the Ontario mining industry, which has and while it is clear that mining benefits all ing creates more economic value (as mea- reduced its LTI rate from 1.81 in 2002. parts of the province, attracting the high- sured by GDP) for the energy it uses than While the safety of workers is para- est Canadian total investment in mines at most other industries, including chemicals, mount, Ontario miners are also working $2.9 B, maintaining and expanding the cement, pulp and paper, and iron and steel. hard on improving their capacities as envi- benefits that responsible mining brings Unlike in traditional manufacturing, how- ronmental stewards by adopting effectiv to our communities and to our economy ever, extremely long timelines and large management strategies and technologies to requires that the costs of doing business capital expenditures are needed to discover reduce the environmental impact of mining remain competitive, while we develop our a viable ore deposit and bring it into pro- operations. Much effort is being devoted to natural resources to their full potential. duction. A complex regulatory environ- making Ontario’s mines energy efficien Mining companies function in a fiercel ment results in a particularly expensive and The industry has lower GHG emissions competitive and increasingly mobile global time-intensive process. than most other industries in Ontario, market, and Ontario mining companies’ To overcome the challenges, it is and its carbon footprint is set to become profitability is challenged by the combina- important to understand and benchmark smaller over time, allowing Ontario to pro- tion of falling or stagnant global commod- our current contributions, strengths and duce some of the lowest carbon commodi- ities prices and rising input costs. We are failings, while identifying new opportunities in the world. With a clear focus on the still feeling the effects of the global down- ties and drivers to enhance Ontario’s com- future, Ontario’s dynamic mining indus- turn in commodity markets – the extended petitiveness. We encourage CMJ readers try is continually evolving to meet society’s period of lower prices and volatile demand to visit oma.on.ca, weigh the information changing needs and expectations, as well as for many commodities has resulted in a and send us your thoughts. CMJ our own exacting standards. From adopt- significant impact on earnings, balance ing lower emission and renewable energy sheets and investor perceptions of the sec- CHRIS HODGSON is the president of the OMA. technologies to developing the world’s firs tor. Ontario has room to improve its com- He can be reached at [email protected]. fully electric mine, innovation is the key to ensuring our sector’s global competiveness and future success. Ontario’s mining companies understand the imperative to chal- lenge the industry status quo – about half of Ontario mines introduced innovations in 2014. Cradle to cradle Having a strong, innovative mining sector has numerous positive secondary effects Mining has links to other industries and sectors in the economy, contributing to an economic multiplier effect. For example, the industry provides a major boost to our financial sector, with the Toronto Stock Exchange and TSX Venture Exchange currently raising more mining equity capital than any other exchange. Other sectors benefit as well, including manufacturing, engineering, education, legal services, Exploration, feasibility, due diligence, engineering, and operations transportation, construction, environmen- through to mine closure. tal management and geological surveying/ Our global experience gives you expert, integrated solutions on analysis, among others. In some parts of every phase of your mining project. the province, especially in the Far North, mineral resource development is critical Same team — start to nish. to creating high-value jobs and entrepre- na.srk.com neurial opportunities. Over the last few decades, aboriginal-industry relationships and partnerships have evolved tremen- dously through the conclusion of various types of agreements (more than 122 in >1,400 professionals • > 45 of ces • 20 countries • 6 continents

Photo: akindo, iStockphoto.com Ontario) related to mine development that

FEBRUARY 2017 CANADIAN MINING JOURNAL | 27 top10 MOST Canada celebrates the 150th anniversary of the signing of Confederation this year, important it is a great time to remember the enor- Asmous contributions the mineral sector has made to our past and highlight the Top 10 Mining Men in Canadian history. The list is only focused on mine builders not mine finders. MINING It highlights individuals who have built corporate empires and/or who have developed isolated regions of the country with the necessary infrastructure for mines to flourish and create multi-generational jobs, shareholder wealth and great economic impact. The list is primarily MEN in focused on gold and base metal miners though some companies did have coal mining divisions. It also includes Americans as there really was no Canadian border between the two countries when it came to mining expertise and investment. Before I start my list, I need to make an “honorary mention” of three Saskatchewan premiers. history NDP Premier Allan Blakeney nationalized four By Stan Sudol key potash mines – roughly 40% of provincial production – in 1975 and formed a crown corporation called Potash Corporation of Saskatchewan. In addition, the Saskatch- ewan Mining Development Corpor- ation was formed the year before to oversee the government’s interests in uranium, gold and diamond exploration and mining. PHOTO: DNY59, ISTOCKPHOTO.COM DNY59, PHOTO:

28-33_CMJ Feb2017_Top 10 men.indd 28 2017-02-03 11:48 AM Conservative Premier Grant Devine privatized both these crown corporation in 1988. The Golden Boys – Noah The Saskatchewan Mining Development Corporation was combined with the privatized Timmins (Hollinger) and federal crown corporation Eldorado Nuclear to form Cameco Corporation. 10 Harry Oakes (Lake Shore) In 2005, conservative leaning Brad Wall shocked the business establishment by not Sharing the tenth spot on the list are Noah allowing PotashCorp. to be taken over by BHP Billiton. Without a doubt, these three Timmins and Harry Oakes, well-known premiers have had more of an impact on the history of mineral development in Saskatch- mine builders in the Timmins and Kirk- ewan than any business individual. land Lake camps, respectively. Noah Tim- mins, along with his brother Henry, first struck it rich in the Cobalt silver boom. Prospectors Benny Hollinger and Alex Gillies claim staked some t Jules Timmins promising ground in the Porcupine Gold Rush in 1909. They sold out to Noah Timmins who over- saw the construction of and ran one of Canada’s legendary mines, the Hollinger. Harry Oakes The mine produced 19.3 s James Murdock million oz of gold over 58 years before it finally closed in 1968. Through the Hollinger, Noah Timmins s Noah Timmins invested in other mining interests including the Noranda Horne smelter and gold mines in Quebec, Manitoba, Kirkland Lake, Yellowknife and the Yukon. He was CONTINUED ON PAGE 30

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FEBRUARY 2017 CANADIAN MINING JOURNAL | 29

28-33_CMJ Feb2017_Top 10 men.indd 29 2017-02-03 11:48 AM CANADA’S TOP 10 MINING MEN

called “one of the great mining magnates of Canada” by the Toronto Star and known as “Grand Old Man of Canadian Mining” when he died in 1936. American born and well-known for his cantankerous personality, Harry Oakes played an instrumental role in trans- forming Kirkland Lake into one of the world’s most significant gold camps. Oakes s Gilbert Labine Robert C. Stanley came to Kirkland Lake in the summer of 1911. His ultimate goal was to establish a until 1950, discovering another uranium which he built into an international prospector-built and owned mine. In total, mine – Eldorado Beaverlodge mine – for powerhouse, that he was best known for. seven gold mines were built along a single the corporation. On his own, Labine dis- In 1928, Lindsley along with a group of fault or strike zone, but the richest one of covered two more mines, the larger being investors founded Ventures Ltd. as a hold- all was Oakes’ Lake Shore. the very profitable Gunnar on the shores of ing company for a variety of properties that Lake Athabasca in northern Saskatchewan. included Falconbridge. The original owner of the Falconbridge claims was Thomas Francis Clergue and his Edison. Lindsley bought the claims and Iron Ore Legacy at Algoma Thayer Lindsley – developed the company’s first nickel mine 9 Steel A Mining Genius in competition with the dominate Inter- American-born entrepreneur Francis Hec- 7 (Falconbridge) national Nickel (later Inco). tor Clergue founded Sault Ste. Marie- Born in Japan to American parents, Thayer based Algoma Steel in 1901 – now owned Lindsley is considered one of the great mine by Essar Steel – due to the development of finders and company builders. A true inter- Robert C. Stanley – iron ore deposits north of that city. The Grandfather of Prospectors Ben Boyer and Jim Sayer 6 the Nickel Industry unearthed hematite (iron) ore in the Michi- (International Nickel Ltd.) picoten/Wawa area in 1898. Clergue American-born, president Robert C. Stan- bought the claims for $500 and built the ley’s 50-year career with International Helen mine. He also constructed a power Nickel began in 1901. plant, pulp and paper mill, a steam ship line Until the end of the First World War, and a railroad which lead to the industrial the primary use of nickel was for amour- development of the isolated Algoma district. plated steel, which was made into a wide variety of military products. With the end Thayer Lindsley of hostilities in 1918, the market crashed Gilbert A. Labine – and it is widely said that Stanley basically A Fateful Destiny With national mine executive, he found or was saved the company by establishing a new 8 Uranium (Eldorado) involved with the development of many engineering and technical department that The pitchblende that Gilbert Labine dis- well-known companies, including Sher- pursued intensive research for new peace- covered in 1930 at Great Bear Lake in the ritt Gordon, Giant Yellowknife, Canadian time uses. Under Stanley’s leadership, sales Northwest Territories became the critical Malartic, and United Keno Hill as well as of nickel increased from 13 million lb. in source of the material for the first atom developments in Africa and Australia. 1921 to 241 million in 1951, the year he bombs that were dropped on Hiroshima However, it was Falconbridge Ltd., passed away. and Nagasaki. The resulting Eldorado uranium mine and refinery at Port Hope produced both SUN DOGS AND YELLOWCAKE: radium and uranium, which had no market Gunnar Mines – A Canadian Story value during the depression era but which A celebration of mining and its long-lost way of life, Sun Dogs is a thoughtful and was wisely stockpiled. Labine’s operations often humorous account of a largely forgotten era. As the 1950s uranium frenzy had to close due to poor demand until the swept the western world, Gilbert LaBine’s discovery of the Gunnar mine on Lake Second World War and the urgent need Athabasca attracted attention across North America. The town’s 800 residents found adventure, romance, tragedy, and a freedom never again to be equaled. of uranium for the American Manhattan project. By Patricia Sandberg, former Vancouver mining and securities lawyer. The Canadian government nationalized 258 pages. Available in softcover through Amazon, select book stores and the Eldorado mine in 1944 for strategic rea- www.PatriciaSandberg.com. sons, making Labine president. He stayed

30 | CANADIAN MINING JOURNAL WWW.CANADIANMININGJOURNAL.COM

28-33_CMJ Feb2017_Top 10 men.indd 30 2017-02-03 11:47 AM International Nickel was created in 1901 Norman Keevil Jr., left, with the merger of the Canadian Copper with Norman Keevil Sr. Company and its strategically located polymetallic nickel-copper deposits in Ontario’s Sudbury Basin – discovered in 1883 during the construction of the Can- adian Pacific Railway. MARILYN_KICKER

Norman Keevil Sr. and Norman B. Keevil Jr. – 5 A Canadian Mining Dynasty (Teck Resources) Norman Keevil Sr. saw the enormous potential of airborne magnetic surveys for mining exploration which helped him find a high-grade copper deposit in Ontario’s Temagami district in 1954 marking the of the company but it was the acquisition miner, and with the company’s dual class beginning of the company we now know of 30% of the historic Canadian Pacif- share system, ensured it would safely stay in as Teck. By 1963, with his son Norman ic-owned Cominco Ltd. in 1986 and the Canadian hands. B. Keevil working at the company and a subsequent takeover of the rest of the com- merger with four other junior mining company in 2001 (Cominco was a significantly panies, Teck’s amazing growth trajectory larger miner than Teck) that made head- James Murdoch – was on its way. In 1981, Norman B. Keevil line news in the Canadian mining scene The Father of Quebec was appointed president and CEO and in and highlighted the financing expertise of 4 Mining (Noranda) 1989, Keevil Sr. passed away. Keevil Jr. Claim staked by prospector Edmond A variety of coal, gold, and copper pro- The Keevils have turned Teck into the Horne and his partner Ed Miller in 1922, jects kept increasing the size and stature country’s largest diversified base metal CONTINUED ON PAGE 32

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28-33_CMJ Feb2017_Top 10 men.indd 31 2017-02-03 4:11 PM CANADA’S TOP 10 MINING MEN

Stephen B. Roman, Peter Munk wife Betty and (middle) and his Prime Minister wife Melanie Pearson

the very rich copper-gold deposits around a miner at the Hollinger gold mine, and claims from prospector Arthur Stollery Rouyn’s Osisko Lake became the basis of became president of Hollinger Consoli- that would contain the largest uranium Noranda Inc., one of Canada’s legendary dated in 1936 after the death of his uncle. deposits in the world at the time and turn- mining companies. James Murdock who With Hollinger money, Jules purchased ing his Denison Mines into a major mining would become the new company’s presi- the mineral rights to the Ungava region powerhouse. By the early 1960s, the Amer- dent, stayed on for an astonishing 30 years. in 1941, and established the Iron Ore ican military cancelled most of its uranium The Noranda copper deposits were the Company at the end of the decade to start contracts and left Denison and the boom richest in Canada up to that time. Rouyn development. town of Elliot Lake in dire straits. exploded with activity and due to the gold While the iron ore was of exceptional Roman diversified his company with by-product the region became known as high quality and near the surface, allowing potash mines in New Brunswick, oil and Quebec’s Klondike. From the beginning for low-cost open, pit mining, the infra- gas properties in western Canada and Eur- Murdock saw Noranda as a company that structure and financing challenges were ope, and the development of the Quintette not only mined and refined the copper but great. With a financing consortium of six coking coal project in northeastern British would also fabricate products. A refinery American companies, Timmins raised the Columbia where a new town called Tum- was built in Montreal in 1930 and a roll- necessary capital to build a 560km railroad, bler Ridge was built. By the late 1970s the ing mill for the Canada Wire and Cable a shipping terminal at Sept-Îles on the St. uranium market rebounded and Denison Company soon followed – all during the Lawrence River, and the iron ore mine. The secured a $5billion deal with Ontario Hydro 1930s depression! Noranda under Mur- project was completed in 1954 and helped to supply fuel for their nuclear reactors. dock became a huge complex of related spur the construction of the St. Lawrence In 1989, Ontario Hydro opted out metal industries. Seaway. of its uranium contracts with Denison, Three years before Murdoch stepped The project created tens of thousands of and a downturn in the commodity mar- down as president in 1953, he started the jobs, more iron ore mines and the founda- kets brought Denison to the verge of development of a new copper deposit, tion of nearby communities of Schefferville bankruptcy. A drastic restructuring sold mill and smelter in Quebec’s Gaspe. The and Labrador City. many of the corporation’s properties, and resulting town, Murdochville, was named in by 1997 a much smaller Denison was a his honour. He died in 1962 but is remem- shadow of its former self. bered as the Father of Quebec Mining and Stephen B. Roman – But at his corporate peak and due to the a committed Canadian nationalist who sig- An Empire of Uranium, strategic value of uranium for both military nificantly helped build this country’s north. 2 Coal, Oil and Potash that and nuclear power generation, Stephen Crashed Roman was among the most powerful busi- Stephen B. Roman, a Slovak immigrant ness leaders in the country. Jules Timmins – Quebec’s who came to Canada in 1937, worked in a Northern King of Iron Ore number of blue collar jobs before becom- 3 (Iron Ore Company of ing a mine investor and seizing a great Peter Munk and Barrick – Canada/Rio Tinto) opportunity. Canada’s Godfather The development of the vast iron ore In 1952, the U.S. military desperately 1 of Gold deposits in the isolated wilderness of north- needed uranium and a staking rush in the In November 2005, Peter Munk launched ern Quebec and Labrador by Jules Tim- Algoma district north of Blind River indi- a takeover bid of historic Canadian gold mins is one of the great mining stories in cated potential deposits. miner Placer Dome agreeing to sell certain Canadian history. Jules began his career as Roman wisely purchased 83 strategic assets to Goldcorp. By the following spring,

32 | CANADIAN MINING JOURNAL WWW.CANADIANMININGJOURNAL.COM

28-33_CMJ Feb2017_Top 10 men.indd 32 2017-02-03 11:47 AM the takeover was complete and in less than Health Network (Toronto) and about including the establishment of the Munk 25 years, this upstart junior miner with two $51 million to the University of Toronto, School of Global Affairs. CMJ small gold operations – an Alaskan placer mine and a half interest in a small northern AUTHOR’S NOTE: I consulted with many people during my research for this essay, however, the Ontario gold operation called Renabie – four that I absolutely must acknowledge are corporate director David Constable, news editor had created the largest gold mining empire Marilyn Scales at the Canadian Mining Journal, consulting geologist George Werniuk, and in the world. Jane Werniuk, geologist at Agnico-Eagle and former editor of the Canadian Mining Journal. Unlike Teck or Goldcorp from its However, I take full responsibility for the final list! inception in 1994 to 2004, Barrick had no dualclass share system to prevent a STAN SUDOL is a Toronto-based communications consultant and owner/editor of a mining news Canadian-Mining-Journal_half.pdf 1 1/26/2017 4:09:01 PM takeover a sympathetic premier like Brad aggregator website: www.RepublicOfMining.com Wall in Saskatchewan who stopped the BHP Billiton buyout of PotashCorp. Bar- rick got no sympathy from Ontario Pre- mier McGuinty who was absolutely silent when historic Ontario base metal producers were bought by foreigners. It was a prey or predator scenario and Peter Munk came out on top. For that reason alone, Munk deserves the top spot, as 2006 and 2007 witnessed the foreign takeovers of legendary base metal miners like Inco by Vale, Falconbridge/ Noranda by Xstrata (subsequently taken over by Glencore) and Alcan by Rio Tinto. Canada’s corporate elite – shell shocked at the frenzy of foreign takeovers in the middle of the last decade –could thank Munk for saving at least one globally significant Canadian mining corporation that is still based in Toronto. One of Munk’s most astute original moves was the takeover of the Camflo mine in Quebec in 1984. The mine came with a seasoned technical team led by mining engineer Robert Smith. This team would go on to discover the extraordinary Goldstrike deposit – one of the richest gold mines in North America – in Nevada’s Carlin Trend which really started the company’s climb to the globe’s number one gold miner. An offshoot of the Goldstrike discovery was the founding of a royalty company called Franco-Nevada headed by two of Canada’s best-known mining financiers, Pierre Lassonde and Seymour Schulich. It financially benefited from the royalty rights that they bought for $2 million from the property’s previous owner. This helped turned Franco-Nevada into the world’s largest mine royalty company. In addition, since 1992, Peter and Melanie Munk have donated more than $180 million to charities and public insti- tutions in Canada and abroad including approximately $75 million to the Peter Munk Cardiac Centre at the University

FEBRUARY 2017 CANADIAN MINING JOURNAL | 33

28-33_CMJ Feb2017_Top 10 men.indd 33 2017-02-03 4:12 PM CMJ February2017_Ad pages.indd 34 2017-02-03 10:46 AM CMJ February2017_Ad pages.indd 35 2017-02-03 10:47 AM and

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CMJ February2017_Ad pages.indd 36 2017-02-06 12:23 PM Indigenous communities, Cementation benefit from strong PARTNERSHIPS By Eric Kohtakangas

oday, a successful project in the Successful partnerships with local com- mining industry often relies on munities must be founded and built on trust the support and active partici- and respect. Cementation views these part- T pation of an indigenous partner. nerships as long term relationships which Partnerships with indigenous commun- align with its mission of being the con- ities not only exist with the mine owner tractor of choice through excellence in all but often involve any party performing aspects of any project we undertake and in work on the project. One such partner, doing so building long term relationships. Cementation Canada, has a long hist- Any partnership with an indigenous com- ory of successful indigenous partnerships munity should exist well after the project for many of its past and current projects. is completed. Cementation develops local These stretch from Nunavut in the Far community partnerships that are built on Top: The Vale Totten mine reactivation project. North, to Ontario and the James Bay experience and lessons learned. And prob- Above: Kiikenomaga Kikenjigewen Employment and territory in Quebec, and to the Labrador ably most important is the element where Training Services, Matawa First Nations. region in eastern Canada. CONTINUED ON PAGE 38

FEBRUARY 2017 CANADIAN MINING JOURNAL | 37

37-39_CMJ Feb2017_Cementation.indd 37 2017-02-07 9:39 AM FIRST NATIONS PARTNERSHIP

these partnerships must be culture based Left: A trainee in the New Miner Training Program. and both partners have an understanding Above and top of page 11:: More skills learned in the New Miner Training Program. of each other’s culture that will help make Lower page 11: Trainees at the Diavik diamond mine in NWT. the partnership and project successful. For most mining projects within the ship between Cementation Canada and the local and surrounding communities. industry there is an existing form of part- Kitikmeot Corporation for work that Cementation has successfully implemented nership, either some form of IBA (impacts is carried out in the Kitikmeot region of and delivered its New Miner Training Pro- benefit agreement) or collaboration agree- Nunavut and the Northwest Territories. gram to numerous community members ment with the local indigenous commun- KCMD has been engaged at the Diavik across many of its mining projects over the ity and the mine owner. These agreements diamond mine in the Northwest Terri- last ten years. are usually in place before third parties are tories, since 2005. KCMD also provides One such example of a successful New contracted. underground mine development and con- Miner Training Program with local com- The aim of any partnership that Cemen- struction services to TMAC Resources at munity members is the recent Totten mine tation develops with the community is one the Hope Bay gold project in Nunavut. reactivation project that Cementation car- that will support aspects of the existing Successful partnerships realize the most ried out for Vale in Worthington, ON. agreement between the community and opportunities for the community and The project, located on the lands of the the mine owner. It is often the company’s their members and businesses. Too often Sagamok Anishnawbek First Nation, com- partnership with the community that mining projects once approved are accel- menced in 2007 and the mine officially allows the community and its members to erated into the project execution phase re-opened in early 2014. gain benefits from the project work carried and there are missed opportunities for the Cementation established a working out. For example the mine owner may have local community. relationship agreement with the Sagamok an element of employment and training in Cementation bases its partnerships on community that focused on new miner their agreement with the community, but some guiding objectives. For example, a training. During the different phases of most often the training and employment successful and beneficial partnership must the project, Cementation trained 38 com- opportunities are first realized through the have an element of labor force training. munity members through the New Miner partnership between Cementation and the To be successful, this training aspect must Training Program. The program consists local community. be a part of the overall project execution of both a classroom and underground plan and discussed early before the project awareness session followed by placement Twelve years of success moves into execution. This ultimately pro- on the project into an entry level position Cementation has 12 years of successful vides benefit to the mine owner at the end where the trainees begin to develop their indigenous partnerships in Canada. The of a project when the mine owner takes skill sets. Today, many of the new min- most significant and longest is Kitikmeot over the project as an operating mine. ers that were trained from the Sagamok Cementation Mining & Development Labor force training provides career community remain employed with Vale at Ltd. (KCMD), an Inuit firm based out of opportunities for the local indigenous their operating mines, including Totten. Cambridge Bay, NT. KCMD was estab- community and its people. It also provides Perhaps one of the most significant lished in 2005 as a joint venture partner- a source of labor for our projects through changes Cementation carried out before

38 | CANADIAN MINING JOURNAL WWW.CANADIANMININGJOURNAL.COM

37-39_CMJ Feb2017_Cementation.indd 38 2017-02-03 11:54 AM Cementation established a working relationship agreement with the Sagamok community that focused on new miner training. During the different phases of the project, Cementation trained 38 community members through the New Miner Training Program.

commencing the training for local com- It needs to maximize employment Any partnership has to be fair for both munity members was to move the three 1opportunities for community mem- 3 parties. Any revenue or profit sharing to four week classroom training into the bers and incorporate other joint venture model through the partnership has to con- community. Cementation also worked or partnering opportunities for goods and sider the partner who carries the risk. The with the community to jointly select the services from local indigenous community framework for any partnering agreement training applicants which helped make the companies or providers. This gives oppor- should also be indicative of the contract program 100% successful. The program is tunity for the general partner to “unbun- style between the mine owner and the based on a 12 module program delivered in dle” some of the project scope to the local service provider partnering with the local the classroom followed by the underground community businesses. Employment and community. The partnerships must be awareness training that gives each trainee training programs for local community competitive and fully transparent to both the minimum accreditation to commence people will increase capacity and provide partners. The partnership should align work underground. After 12 months of career opportunities for its people. with the overall project goals in execut- skills training, many trainees moved from ing an injury free project on time and on entry level or support positions to direct face The partnerships have to expand the budget. mining crews. Several participants were even 2 knowledge, understanding and aware- Cementation works closely with each successful at enrollment and obtaining an ness of mining within the community and local indigenous community to maximize industrial electrical trade through Cementa- in doing so encourage young people to their benefits and opportunities and the tion’s apprenticeship program. consider mining as a career option or pur- mine owner to deliver a successful project sue an education that will benefit them in while maximizing local content. CMJ Three keys to success the mining sector. For any partnership to be successful, it should have the following objectives: ERIC KOHTAKANGAS is VP operations at Cementation Canada Inc.

FEBRUARY 2017 CANADIAN MINING JOURNAL | 39

37-39_CMJ Feb2017_Cementation.indd 39 2017-02-03 11:54 AM BLASTING

Industrial Explosives MARKET is expected to reach $196 billion globally by 2022

he market for industrial explo- In addition, growth in use of industrial eral resources to achieve pace and higher sives is on a continuous rise due to explosives, especially in the construction gross domestic product in the ever-grow- rapid increase in mining activities, industry for tunnelling and other applica- ing competition are some of the factors T especially in the developing econ- tions, along with increase in inclination of that accelerate the market growth. How- omies globally. It is projected to reach $15.9 construction professionals toward the use ever, fluctuating prices of ammonia along billion by 2022, growing at 6.7% from of industrial explosives to save time and with stringent regulations on the storage 2016 to 2022, according to a new report by labour costs drive the growth of the market. and transportation of industrial explosives published by Allied Market Research. The The prices for high explosives were along with high initial costs required for mining segment dominated this market, stronger than other industrial explosives in their manufacture are some of the key fac- occupying more than four-fifths share of 2015. However, the prices are expected to tors that hamper the market growth. More- the market revenue in 2015. witness a significant drop by 2022 due to over, maintenance and aging costs and Moreover, increase in demand for earth increase in innovations in the manufactur- compliance with quality, specifications, minerals, such as bauxite, iron ore, coal, and ing of high explosives. and testing are some major factors that rare earth metals, as well as gold and silver, Initiatives by governments of various hinder the growth of the market.

is a key factor fuelling the market growth. economies to tap rich underground min- In the year 2015, the mining segment iStockphoto.com Falcor, Photo:

40 | CANADIAN MINING JOURNAL WWW.CANADIANMININGJOURNAL.COM

40_CMJ Feb2017_Blasting market.indd 40 2017-02-03 4:14 PM the analysis period. market in 2015, and are expected to main- • Asia-Pacific is estimated to continue to tain this trend throughout the forecast per- lead the market, growing at 5.7% in iod. This is due to the increase in mining terms of volume. and mineral exploration activities due to • China occupied more than one-third of abundance of rich mineral resources in the total share of the Asia-Pacific indus- these regions, especially in China, India, trial explosives market in 2015. Chile, Peru, Brazil, and others. • India is estimated to grow at the highest Key players in the global industrial rate: 8.1% in terms of revenue. explosives market focus on acquiring local • The non-metal mining end-use industry players to strengthen their market reach as accounted for half of the mining seg- well as to expand their customer base. Explosives ment in 2015. CMJ readers can access the detailed Asia-Pacific and Latin America collect- report at www.AlliedMarketResearch.com/ ively accounted for more than half of the industrial-explosives-market. CMJ

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occupied around 80% of the overall indus- • Shaft Sinking trial explosives market revenue and is • Raise Boring and Raise Excavating expected to maintain its lead throughout • Mine Construction and Infrastructure the forecast period. This is due to increase in • Mine Development and Rehabilitation investments in mining activities to tap rich • Engineering Design mineral resources to fulfil the rise in demand • Contract Mining globally. Blasting agents dominated high explosives, as they are used in bulk quantities to detonate mines and mountains. Canada 1-800-892-8293 or USA 1-800-748-2375 Key findings www.dmcmining.com The Allied Market Research study made the Photo courtesy of BHP Billiton following observations: incorporating Rio Tinto’s “Mine of the Future” ™ technology • The blasting agents segment is antici-

Photo: Falcor, iStockphoto.com Falcor, Photo: pated to grow at the fastest rate during

FEBRUARY 2017 CANADIAN MINING JOURNAL | 41

40_CMJ Feb2017_Blasting market.indd 41 2017-02-03 11:55 AM BLASTING 150 Years of Dynamite ANOTHER POWERFUL ANNIVERSARY TO CELEBRATE

Dyno Nobel, a global leader in commercial explosives headquartered in Salt Lake City, Utah, traces its roots back to Alfred Nobel and his pivotal invention of dynamite. The name dynamite is derived from the Greek word dýnamis, meaning power. This year marks 150 years of progress due to the power of dynamite. The last century and a half have seen not only the creation of the Canadian confederation, but many of the things we take for granted every day. We have the light bulb, automobile and jet engines, movie cameras and television, nuclear reactors and the moon landing, satellites and cell phones, transistor radios and DVDs, personal com- puters and cell phones, the electric guitar explosive more powerful than black powder. grams each year. Its plant in Carthage, Mo. and air conditioners. The list is long. The invention of dynamite marked a pivotal has been producing dynamite, packaged Before dynamite, the ability to break time and led to a step change in global emulsion and cast boosters since 1902. rock was limited to black powder explo- industrialization. Dynamite made it easier Alfred Nobel once said, “If I have 300 sives, which weren’t very strong and to safely extract raw materials, allowing for ideas and just one turns out to work I am required a lot of material. This material more innovations to come to life. Today, satisfied.” He went on to have 355 patent was also dangerous to transport. The inven- Dyno Nobel continues this tradition by applications granted during his life. tion of nitroglycerin in 1846 allowed for developing practical innovations in blasting. Of all his inventions, dynamite is con- stronger and larger explosions. However, Although improvements have been sidered the most influential, not only because it was extremely unstable and less safe than made to the original formula of dynamite it redefined mining, but also because it gave black powder. Safety was the original reason and blasting practices, dynamite is still in birth to the Nobel Prizes. Alfred Nobel’s Alfred Nobel set forth to create dynamite. use today and is, at times, the most sustain- entrepreneurial vision laid the ground work In 1867, Alfred Nobel discovered how able solution in blasting. In North Amer- and became the inspiration for Dyno Nobel to stabilize nitroglycerin by adding diatom- ica, Dyno Nobel is the only manufacturer to deliver ground-breaking performance aceous earth. This created the first stable of dynamite, producing millions of kilo- through practical innovation. CMJ

42 | CANADIAN MINING JOURNAL WWW.CANADIANMININGJOURNAL.COM

42_CMJ Feb2017_innovative Explosives.indd 42 2017-02-03 11:56 AM UNEARTHING TRENDS

Counting down to the reporting deadline for ESTMA

Michael Sabatino and Rabinder Sihota

he Extractive Sector Transparency Measures Act (ESTMA), FOR MOST How do I deal with reporting which came into force June 1, 2015, introduced new LISTED CANADIAN when a subsidiary is disposed reporting and transparency requirements for Canadian MINING COMPANIES, of during the reporting Tcompanies involved in the mineral exploration and extractive May 30, 2017, period? field, contributing to global efforts against corruption in this sector. WILL BE THE Assuming the subsidiary is con- For most listed Canadian mining companies, May 30, 2017, FIRST REPORTING trolled by a reporting entity, it will be the first reporting deadline where they have to report spe- would likely be responsible for cific payments totalling $100,000 or more made to all levels of DEADLINE WHERE reporting payments. The ESTMA local or foreign government related to the commercial devel- THEY HAVE TO states that “a payment made by opment of oil, gas or minerals. But, the requirement to report REPORT SPECIFIC an entity that is controlled by on payments made to indigenous governments in Canada was PAYMENTS another entity is deemed to have deferred until June 1, 2017. This means that payments made TOTALLING been made by the controlling after this date will have to be tracked and picked up on any sub- $100,000 OR entity.” As a result, the consequent reports. To assist companies, Natural Resources Canada MORE MADE TO trolling parent would be respon- (NRCan) has published an information sheet on payments to ALL LEVELS OF sible for reporting payments indigenous governments on their website. LOCAL OR FOREIGN made by the controlled subsidi- When new rules take effect it can be intimidating to imple- GOVERNMENT ary for the period where the sub- ment them correctly the first time, and to set up systems that RELATED TO THE sidiary was controlled. will make future reporting easy. Fortunately, NRCan already has COMMERCIAL some public reports published that could be useful to review on These transparency reporting its website. The department is also very open to discussions and DEVELOPMENT measures are not unique to Can- helping extractive companies navigate any challenges. That said, OF OIL, GAS OR ada. Here are some issues being companies should be aware of the commonly asked questions MINERALS. experienced by the industry in and issues that are already being raised. implementing similar regimes:

What do I need to do if I do not have any payments to w Globally, there is an emerging trend to provide a transparency report, or if all my payments fall below the reporting report that not only addresses mandatory requirements for threshold? reporting payments made to governments but also addresses Reporting entities with nothing to report are asked to notify voluntary disclosures on areas such as tax. NRCan via email that no report is being filed. w Companies at the forefront of this trend see this as an opportunity to manage their message and context around payments and How do I deal with the issue of reporting in foreign clearly communicate economic benefits to key stakeholders. currency? w Companies need to pay special attention to the implications Reporting entities should disclose the primary reporting currency of disclosing information that was previously not in the public of their report as well as the foreign exchange rate and method of domain. conversion when converting foreign currency amounts. The clock is ticking to get these reports submitted and How should we deal with refunds of amounts previously non-compliance is not an option due to the potential of signifi- paid? cant penalties, so we would urge companies to consult with their ESTMA requires reporting all amounts paid and there is no advisors or NRCan on any questions. CMJ requirement to report on refunds of amounts previously paid. Reporting entities are free to disclose refunds in the notes section MICHAEL SABATINO is Tax Services Associate Partner at EY. RABINDER of the report if they feel it is relevant. SIHOTA is Tax Services Senior Manager at EY.

FEBRUARY 2017 CANADIAN MINING JOURNAL | 43

43_CMJ February2017_EY Trends.indd 43 2017-02-03 12:39 PM LAW

Court clarifies threshold requirement to trigger BC environmental assessment By Jennifer Nyland and Laura Duke

recent decision of the B.C. Court of Appeal provides some whether a project is reviewable under the Regulation. reassurance to project proponents because it clarifies the The Court of Appeal therefore concluded that the letter was threshold requirement to trigger a B.C. environmental not a decision by a statutory delegate about whether the project assessment.A The decision also provides the Crown and project was a reviewable project under the Regulation. The Court charac- proponents with certainty that the Environmental Assessment terized the letter as a “non-binding opinion” that was not subject Office’s confirmation of the reviewability threshold of a project to judicial review. does not trigger a duty to consult First Nations. The Court also considered the merits of the appeal and inter- Fort Nelson First Nation v. British Columbia (Environmental preted the threshold necessary to trigger an environmental assess- Assessment Office), 2016 BCCA 500, overturned a B.C. Supreme ment for a sand and gravel mine. Court ruling on whether a proposed frac sand mine near Fort The EAO’s interpretation and application of the Regulation Nelson, B.C., was subject to provincial environmental assess- was upheld as reasonable. Importantly, the Court concluded that ment. The proponent wrote to the EAO providing a description the EAO’s articulation of the threshold did not undermine the of the project and the applicable environmental assessment trig- statutory scheme and objectives. Although the object of the Act is ger, and asked for the EAO’s confirmation that the project was environmental protection, the overall scheme balances the need below the trigger threshold. The Reviewable Projects Regulation for environmental protection against encouraging economic outlines thresholds for categories of projects that are “reviewable development. The thresholds in the Regulations are intended to projects” and therefore must receive an environmental assessment be easily applied by proponents. certificate before development commences. Finally, the Court considered whether the Crown’s duty to The EAO wrote a letter confirming that the project as described consult had been triggered. One of the key issues was whether the would not exceed the trigger threshold. However, the EAO was EAO’s interpretation and application of the reviewability thresh- clear that “[p]roject proponents are responsible for making their old constituted “Crown contemplated conduct.” Both the propo- own determination as to whether or not their proposed project nent and the EAO argued that statutory interpretation is not falls within the thresholds set out in the [Regulation].” “Crown conduct” capable of attracting a duty to consult. The The Fort Nelson First Nation disagreed – its position was that Fort Nelson First Nation argued that interpreting and applying the project would exceed this threshold. It brought a petition for the reviewability threshold was “Crown contemplated conduct” judicial review on the grounds that the EAO’s interpretation was and, in this case, the adverse impact was that the project would be unreasonable, arguing that all of the excavated material, includ- subject to reduced environmental oversight, and would therefore ing waste, should count towards the production capacity. The expose the First Nation to greater potential impacts to its aborig- First Nation further argued that the EAO’s interpretation of the inal or Treaty rights. provision and consequent confirmation that the project did not The Court dismissed the First Nation’s claim that a duty to exceed the trigger threshold was Crown conduct that attracted consult was triggered by the EAO’s interpretation. The Court the duty to consult, and that consultation on these points had held that the Regulations are rules of general application intended been inadequate. to apply universally throughout British Columbia. Imposing a The Chambers judge agreed with the First Nation’s interpre- duty to consult over the interpretation of the Regulation may lead tation of the threshold criteria, finding that the Crown had a legal to different interpretations applying to different projects. duty to consult on the subject matter of the letter, and declared The Court found that had the duty to consult been engaged, that the Crown had failed to fulfill this duty to meaningfully the EAO had fulfilled its duty. consult with the First Nation in good faith and to seek to accom- This decision confirms that the proponent, not the EAO, is modate the First Nation’s Aboriginal rights under Treaty 8. The responsible for determining whether a project meets the thresh- executive director of the EAO and the project proponent appealed olds for triggering an environmental assessment, and clarifies how the decision. the thresholds are to be interpreted. CMJ Under the environmental assessment scheme in B.C., the onus is on the proponent to determine whether a project is JENNIFER NYLAND and LAURA DUKE are associates at Lawson Lundell reviewable based on the criteria set out in the Regulation. The LLP. Jennifer can be reached at [email protected]; Laura can be legislation contains no mandated decision by the EAO regarding reached at [email protected].

44 | CANADIAN MINING JOURNAL WWW.CANADIANMININGJOURNAL.COM

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45_CMJ Feb2017_Directory.indd 45 2017-02-06 3:04 PM CSR & MINING

Ground-breaking report on engaging with aboriginal businesses for local procurement released By Michael Torrance

ngineers Without Borders (EWB) has released a procurement relationships with aboriginal business unique. ground-breaking report entitled “Partnerships in Procurement from aboriginal contractors and communities Procurement: Understanding Aboriginal Business involves relationship building and sustained partnership develop- EEngagement in the Canadian Mining Industry”. The report pro- ment in a manner unique from the typical request for proposal vides useful background, analysis and recommendations for style of supply chain contracting and service procurement that Canadian mining companies on engagement with aboriginal mining operations typically followed in the past. As such, procure- communities in local procurement and supply chains. ment agreements with aboriginal suppliers need to be approached The report presents the ﬁndings from a research study carried and understood differently than other procurement relationships. out by EWB’s Mining Shared Value program and the Canadian Shared or joint governance, monitoring and mediation are among Council for Aboriginal Business (CCAB). The goal of the research the suggested feedback that was received by the authors of the was to identify the working relationships between aboriginal busi- report. Participants spoke of the importance of having a real and nesses and mining companies operating across Canada, in an effort enduring presence in each other’s communities. to increase aboriginal supplier involvement and engagement in Among the recommended best practice noted by the authors is: the supply chain of Canadian mining companies. The research w To focus on relationships through strong communication involved interviews with people across Canada, from mining per- including regular town halls or other engagement activities; sonnel involved in procurement to aboriginal business owners. w Find ways to build aboriginal business capacity such as through partnerships to increase training opportunities and develop community capacity; POSITIVE RELATIONSHIPS w Include procurement in the implementation of impact beneﬁt WITH LOCAL COMMUNITIES agreements (IBAs) and encourage engagement between aboriginal businesses and procurement teams; DEMONSTRATE RESPONSIBLE w Develop key performance indicators (KPIs) to collectively mon- CORPORATE BEHAVIOUR AND itor and check progress on supply contracts; CAN IMPROVE A COMPANY’S w Use senior management to encourage cultural shifts and set a tone from the top; REPUTATION, BOTH FOR w Incentivize the procurement of services from aboriginal compa- STAKEHOLDERS AND nies in the formal bidding process both for prime and subcon- THE PUBLIC. tractors further down the supply chain; w Offering mentoring and training to new aboriginal suppliers on business and management fundamentals; w Unbundle contracts whenever possible to increase opportunities for small businesses.

The report offers a framework for further analysis of this topic by Canadian mining companies seeking to build relationships and The report outlines the business case for procurement relation- beneﬁt from their ongoing relationships with aboriginal commu- ships with aboriginal business. Positive relationships with local nities. It offers a readily available example of shared value that can communities demonstrate responsible corporate behaviour and be captured by companies operating in the vicinity of aboriginal can improve a company’s reputation, both for stakeholders and the communities beyond simply IBAs. Those companies that do this public. Aside from the beneﬁts to companies, these relationships well will identify opportunities to build trust and partnerships that are important for aboriginal business. The report notes studies advance both the business and CSR objectives of the company and which show that nearly 40% of all aboriginal businesses in Canada its stakeholders. CMJ are working in mining or extraction related industries.

The report also outlines some of the characteristics that make MICHAEL TORRANCE is a lawyer with Norton Rose Fulbright, Toronto. iStockphoto.com EtiAmmos, Photo:

46 | CANADIAN MINING JOURNAL WWW.CANADIANMININGJOURNAL.COM

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