Spreading the WORD

c a n a d a ’ s f i r s t m i n i n g publication CACANADIANNADIAN Mining JournalOctober 2014 Mwww.canadianminingjournal.comining Journal Spreading THE WORD

Goldcorp’s Éléonore Mine in Quebec is ‘the place’ to work MINE RUNNER

35 ELGIN STREET, NORTH THORNBURY, ONTARIO 1.519.599.2015 www.rockbreaker.com CANADA, N0H 2P0 Departments 5 Editorial CANADIANCANADIAN This month Editor Russell Noble takes a whimsical look at what it’s like to be Mining Journal driven to near insanity by the swarms of insects that crews must endure while working at remote sites. CONTENTS 6 Investing Columnist Ned Goodman talks about money and the job situation. MINING IN QUEBEC 9 Law Goldcorp goes to great lengths Norton Rose Fulbright Canada’s Crae to help ensure that its Éléonore Garrett and Jean-Philipe Buteau explain Mine in northern Quebec meets Quebec’s Plan Nord program in detail. 10 high standards both in terms of production and accommodations. 44 Leadership Correspondent Carl Friesen discusses why companies need to offer more than mining skills when working on projects in foreign countries.

48 Company Profile Yokohama Tire (Canada) Inc is the subject of this month’s Company Profile.

52 In My Mine(d) Doug Morrison, President of the Centre Stornoway’s Renard Mine for Excellence in Mining Innovations 38 continues on its way to (CEMI) of Sudbury talks about the orga- becoming Quebec’s first nization and its mandate to develop a Diamond mine. comprehensive, multi-disciplinary approach to making mining a safer and environmentally friendly industry. IAMGOLD transitions its 16 Westwood project from 54 Unearthing Trends a development site into a A regular column by Ernst & Young LLP, working mine with an Vancouver. expected 19-year mine life.

EQUIPMENT MAINTENANCE & REPAIR SLICK SOLUTIONS EQUIPMENT MAINTENANCE & REPAIR Answers to help keep machines performing well A special 16-page section in the middle of the c a n a d a ’ s f i r s t m i n i n g publication CACANADIANNADIAN ABOUT THE COVER magazine features articles designed to help owners Mining JournalOctober 2014 Mwww.canadianminingjournal.comining Journal This month’s cover shows under- and operators of heavy mining equipment keep the Spreading ground work at Goldcorp’s Éléonore THE WORD Mine in the James Bay region in machines running and performing as specified. northern Quebec. For More Information

Goldcorp’s Éléonore Mine in Quebec is Please visit www.canadianminingjournal.com for regular updates ‘the place’ to work on what's happening with Canadian mining companies and their CMJ2014_Oct.indd 1 2014-09-26 11:36 AM personnel both here and abroad. A digital version of the magazine Coming in November is also available at www.digital.canadianminingjournal.com Canadian Mining Journal will proudly present its annual Buyers’ Guide; a comprehensive list of Products www.canadianminingjournal.com & Services specifically geared to the mining industry.

October 2014 • Canadian Mining Journal | 3 WE COULD HAVE USED THIS SPACE TO TALK ABOUT OUR SUCCESS,

BUT WE’D RATHER TALK ABOUT YOURS.

We recognize it takes world-class people to run world-class ENGINEERS: mines. When you work with us, you’re part of a growing MINING • MECHANICAL • ELECTRICAL community of skilled professionals committed to pioneering GEOTECHNICAL • ENVIRONMENTAL advances in modern, sustainable mining. METALLURGICAL GEOLOGISTS: Together, Creating Sustainable Value. PRODUCTION • EXPLORATION BUSINESS SUPPORT: ACCOUNTING • FINANCE HR • SAFETY • SUSTAINABILITY Join us. PROJECT SUPPORT & MANAGEMENT goldcorp.com/careers

NYSE: GG | TSX: G 3 Editorial CANADIANMining Journal October 2014 Vol. 135 — No. 8 80 Valleybrook Drive, Toronto, Ontario M3B 2S9 Tel. (416) 442-5600 Fax (416) 510-5138 Bugged www.canadianminingjournal.com

Editor Russell B. Noble 416 510-6742 at work [email protected] Field Editor By Russell Noble Marilyn Scales 613-270-0213 [email protected] Art Director he word “Tinnitus,” even with “tin” Mark Ryan in its name, has nothing to do with Production Manager Steve Hofmann Tmining. In fact, it’s a medical term for Print Production Manager “humming” or “ringing” in the ear but at Phyllis Wright this time of year, I suppose it does become Circulation Manager Cindi Holder a medical issue of epidemic proportions 416 442-5600, ext. 3544 for the mining industry too, particularly [email protected] for those working in the field. Publisher Robert Seagraves Because mining and exploration are 416 510-6891 both in full swing during the summer Working in [email protected] the field often and early fall, exposure to whirling drills Sales requires staff Western Canada, Western U.S.A. and Quebec and other rotating machinery has a direct to wear protec- Joelle Glasroth impact on the hearing of the men and tive clothing. 416-510-5245 [email protected] women working in close proximity to Toll Free Canada: equipment. of mining for what they put up with for 1-800-268-7742 ext 6891 or 5245 Toll Free USA: But there’s also the ‘humming’ from the sake of the industry, and a paycheque. 1-800-387-0273 ext 6891 or 5245 insects and other flying nuisances that Mind you, many in the field right now, Group Publisher make working in the field all that more particularly those first-time geology stu- Anthony Vaccaro challenging. dents working in swamps and marshes or President Vice-president Bruce Creighton Alex Papanou For those of you who have experi- equally nasty places, are probably saying enced the unrelentless onslaught of bugs to themselves “no amount of money is Established 1882 welcoming new blood in camp, you can worth this” because, like I said earlier, Canadian Mining Journal provides articles and information of practical use to those who work in the technical, administrative and supervisory aspects relate to just how difficult the working insects can drive you nuts. of exploration, mining and processing in the Canadian mineral exploration and mining industry. Canadian Mining Journal (ISSN 0008-4492) is published conditions can be thanks to the constant However, without advanced geological 10 times a year by Business Information Group L.P. BIG is located at 80 Valleybrook Dr., Toronto, ON, M3B 2S9. Phone (416) 442-5600. bombardment of bites and stings. exploration, most of today’s mines wouldn’t Legal deposit: National Library, Ottawa. Printed in Canada. All rights reserved. No matter how much protective cloth- exist and the industry should be thankful The contents of this magazine are protected by copyright and may be used only for your personal non-commercial purposes. All other rights are reserved and ing one wears, the humming and buzzing for all of the ‘nuts’ out there who are deter- commercial use is prohibited. To make use of any of this material you must first obtain the permission of the owner of the copyright. For further information can be a major distraction and in one case mined to make that next discovery. please contact Russell Noble at 416-510-6742. I experienced in Yukon a few years ago, it Finding the “Mother Load” is in every Subscriptions — Canada: $47.95 per year; $76.95 for two years. USA: US$60.95 per year. Foreign: US$72.95 per year. Single copies: Canada $10; USA and foreign: can be mind altering. geologist’s make up and I bet that many of US$10. Canadian subscribers must add GST and Provincial tax where necessary.GST registration # 809744071RT001. It can drive a sane person ‘nuts,’ and in those sitting comfortably behind their From time to time we make our subscription list available to select companies the case I just mentioned, the individual Bay Street desks at this very moment dur- and organizations whose product or service may interest you. If you do not wish your contact information to be made available, please contact us via one had to be removed by helicopter from a ing “field” season secretly wish they were of the following methods: Phone: 1-800-668-2374; Fax: 416-442-2191; E-mail: privacy [email protected]; Mail to: Privacy Officer, remote site because of an anxiety attack in a camp somewhere anxiously awaiting Business Information Group, 80 Valleybrook Dr., Toronto, ON, M3B 2S9. caused by the constant presence of insects. core to be brought up and cut and boxed Publications Mail Agreement #40069240. PAP Registration No. 11000. We acknowledge the financial support of the Government of Canada through the As we’ve all heard, even hardier ani- for a closer look. Publication Assistance Program towards our mailing costs. Return undeliver- able Canadian addresses to: Circulation Dept., Canadian Mining Journal, 80 mals such as bears, wolves and gigantic It’s this anticipation that gets the Valleybrook Dr., Toronto, ON, M3B 2S9. E-mail: [email protected] moose can be driven to near insanity by adrenaline flowing and there’s nothing Canada Post: Publications Mail Agreement PM40069240. Please forward Forms 29B and 67B to 80,Valleybrook, Toronto, ON M3B 2S9. swarms of miniscule combatants. The more exciting than wetting a section of Canadian Mining Journal, USPS 752-250. US office of publication: 2221 Niagara Falls Blvd., Niagara Falls, NY 14304-5709. Periodicals Postage Paid at Niagara Falls, phrase ‘Strength in Numbers’ has never core and having a profile of the once NY. US postmaster: Send address changes to Canadian Mining Journal, been truer. A frenzy of flies can bring the unknown confirm positive. PO Box 1118, Niagara Falls NY 14304. We acknowledge the financial support of the Government of Canada through the Canada hardiest of four-legged animals to its Unlike other professions, mining is Magazine Fund toward our editorial costs. knees, and the two-legged variety is that still a hit-and-miss business and even much easier. with advances in exploration technology, In any event, working in the field is far the odds for a miss are still there and will more difficult than many can imagine never go away. and it’s a credit to those on the front line Kind of like the bugs at work. CMJ Canadian Business Press Indexed by Canadian Business Periodicals Index

October 2014 • Canadian Mining Journal | 5 Investing Botox and free manure

Ned Goodman is President and Chief Executive Officer of Dundee Corporation

By Ned Goodman

n August 2010 we heard from Alan has held its “Economic Symposium” ever “Monetary policy must be conducted in Greenspan, the then Chairman of the since Paul Volcker was its Chairman in a pragmatic manner that relies not on IU.S. Federal Reserve, that “The prob- the 1970s – he liked the fishing. any particular indicator or model, but lem we now face is the most extraordinary In 2007, “Helicopter” Ben Bernanke instead should reflect an on-going assess- financial crisis ever seen or read about.” stated that the Fed “stands to take addi- ment of a wide range of information in In 2011, a book by Peter Tanous and tional action to stabilize the market and the context of our ever-evolving under- Jeff Cox was written to enlighten us that the Dow shot up by 199 points. In 2008, standing of the economy.” we were about to face the worst financial Bernanke introduced zero interest rates Bernanke never told us anything like disaster in American history – “a finan- (ZIRP) and the Dow jumped 197 points. that, and maybe that was his stock market cial Armageddon.” They also told us that, In 2010, Bernanke only had to hint magic bullet. Mrs. Yellen did admit a “The U.S. Treasury will shift its printing that Quantitative Easing #2 was on the small negative about the job market, say- presses into high gear as it churns out way and the Dow, once again, went up – ing that it still is in trouble; five years after billions of dollars to cover debts, which this time by 164 points. the recession began its decline “the labour will eventually lead to “soaring inflation Those investors who were able to act market has yet to fully recover” and “peo- of an order not seen since the 1970s.” quickly after his speech were able to bank ple that are employed have seen a pitiful Along the way Ben Bernanke took a 20% return over the balance of the year increase in wages,” allowing that “over the over the Federal Reserve and told us not to 2011. past several years, wage inflation has aver- to worry, he had it totally under control And then, in 2011, Bernanke did not aged about 2 per cent” and that “there has by bringing interest rates down to zero say anything, but he did hint that unem- been little evidence of any broad-based (ZIRP) and printing billions of dollars to ployment was too high and that he would acceleration in either wages or compensa- cover the borrowing capacity that was do whatever he could to try to reduce it; tion” which she recently called, “worker needed to keep the United States and its and guess what? Notwithstanding that discouragement and a still-substantial banking community in good shape; and he did nothing about unemployment, the level of long-term unemployment.” he did it while providing the warm feel- Dow went up another 134 points. It’s hard to blame “discouraged working for investors to keep the stock market Recently it was Janet Yellen’s turn to ers” for not enjoying their jobs at low in a rising mode from 2009 to today. spend a few days at Jackson Hole in wages while watching the stock market Then, more recently, along came Wyoming and in her opening speech make higher and higher prices as a result another Chairman of the U.S. Federal “Re-evaluating Labour Market Dynamics” of the Federal Reserve’s continuous Reserve – Janet Yellen – and now the she acknowledged that the stock market is printing of money and the creation of a market is looking for Dow 20,000, and sitting at all-time highs, but the labour “Botox Economy.” she carries the nickname of “Fairy market is still not very happy. The best comment I recently read on Godmother of the Bull Market.” allowing She did not make any promises or that topic was that it was easy to believe most U.S. investors to get used to reaping commit herself to do anything about that CEOs, banks, and shareholders were great gains after the head of the Federal either the stock market or the labour coming up roses, while the working mid- Reserve spoke, especially at Jackson Hole market, other than keeping interest rates dle class folk were making the manure in Wyoming where the Federal Reserve very low a while longer. She said that, that made those roses grow. CMJ

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Expansion Explained A look at what Plan Nord is all about

By Crae Garrett and Jean-Philippe Buteau

n June 4, 2014, the Province of Québec, led by the Québec Liberal government, announced the revival of the Plan ONord, in what is meant to be an enhanced version. The Plan Nord was originally introduced in 2011 as a long- term program for the economic and social development of the territory situated north of the 49th parallel. With more than C$80 billion in public and private investments over a 25-year period, the Plan Nord was seen as one of the larger multi-generational projects the Province of Québec has ever seen. After a complete halt and a subsequent rebrand by the Parti Québécois further to its election in September of 2012, the Plan Nord has been put back on track by the Liberals via their first new budget, despite a series of measures to address the Province’s deficit.

The new Plan Nord is articulated around the following key items, all part of the 2014-15 budget: • Creation of Comité ministériel du Plan Nord, a newly created committee, to oversee the implementation of the Plan Nord. Such Comité will be supported by the Secrétariat au Plan Nord until the Société du Plan Nord is created as a government corporation responsible for coordinating the territory’s development in consultation with all partners, including local and Aboriginal communities to ensure their support. 2012 • Clear commitment of the Government to have the Plan Nord. The Government plans to contribute approximately Nord deployed with the participation of local and Aboriginal C$2 billion between 2014 and 2035. communities and with sustainable development in mind. • Creation of Capital Mines Hydrocarbures, a C$1 billion • Creation of the Northern Plan Fund with a C$63 million fund managed by Ressources Québec (a subsidiary of budget for 2014-2015 to finance major work on road infra- Investissement Québec) which will acquire equity interests structure in the Plan Nord territory, including the extension in companies extracting mineral substances in Québec. of Highway 138 and the repair of Highway 389 in the Côte- • Up to $20 million to be invested by the Government for the Nord region and the James Bay Highway. The fund is completion of a feasibility study, in collaboration with pri- expected to be financed by tax spinoffs generated from min- vate partners, for a multi-user railway from Sept-Iles to the ing, energy and public infrastructure projects of the Plan Labrador Trough to open up the iron-ore-rich region and

8 | Canadian Mining Journal • October 2014 www.canadianminingjournal.com Law and Mining in Quebec

Crae Garrett is a partner in Norton Rose Fulbright’s Calgary office. Jean-Philippe Buteau is a partner in Norton Rose Fulbright’s Québec office.

provide the transportation infrastructure necessary to develop several iron ore projects in the area. • Establishment of an interministerial committee to ensure the fast supply of natural gas and liquefied natural gas to the Côte-Nord region, by sea and land rather than via the construction of a pipeline. The review process could be conducted through a fast-track review process by the Bureau d’audiences publiques sur l’environnement (BAPE). • $100 million to be invested in educational infrastructure upgrades and training programs for residents of the north, including C$10 million for the training of skilled workers. • The current tax regime remains mostly unchanged to restore industry and investor confidence by ensuring the rules are favourable, stable and foreseeable. • Revival of the Québec Tourism Strategy North of the 49th Parallel which will benefit from a C$3.2 million budget to develop northern Quebec as a word-class northern destination. • $1.1 billion to be invested by Hyrdo-Québec between 2016 and 2018 in the transmission line between the Chamouchouane substation in the Saguenay region and the Bout-de-l’Île substation in the Montréal area The 2014-15 budget clearly confirms both that the new Government sees the mining industry as a partner and a key player of its economic growth, and that it is cognisant of the capital investment challenges that will doubtless be of concern to potential investors looking to participate in developing the largely untapped potential of northern Québec. Even if the scope and depth of the new Plan Nord remain to be confirmed, it is already seen as a positive change by the mining industry which has suffered, over the last years, from rough market conditions and changing rules. As we can expect four years of political stability in Québec, there’s every hope the new Plan Nord can deploy itself to the fullest extent possible for the benefit of both the mining companies and the population of Québec. CMJ

October 2014 • Canadian Mining Journal | 9 | Mining in Quebec

10 | Canadian Mining Journal • October 2014 www.canadianminingjournal.com A five-star GOLD MINE Goldcorp goes all out to make its new mine a great place to work

By Eastern Correspondent D’Arcy Jenish

Martin Descoteaux, mechanic.

October 2014 • Canadian Mining Journal | 11 | Mining in Quebec

Réal Laliberté, mechanic.

uy Belleau acquired a passion for geology as a youth is bringing into production this year and, according to the corpo- fishing the rivers and streams around his home town rate website, it is “a key component of our next generation of of Lévis on the south shore of the St. Lawrence, growth projects.” directly opposite Quebec City. The company expects to produce 40,000 to 60,000 ounces of G When the fish weren’t biting, Belleau studied the gold at Éléonore by year end and the operation has been designed shoreline rocks, hoping he might stumble upon embedded gold. to yield between 575,000 and 625,000 ounces of low-cost gold “The rocks were always on my mind,” he says. “And geology has annually (following ramp-up to full capacity expected in H1 been in my blood ever since.” 2018) and process 7,000 tonnes of ore per day. That youthful passion led to a career as a mining engineer and Belleau has been working at the site, located some 400km by jobs at mines in Val d’Or, Abitibi, Mattagami, Chibougamou and road, but 200km by plane, east of the Cree coastal community Newfoundland, though none quite compared, in scale or per- of Wemindji, since the fall of November, 2009, three years after sonal satisfaction, with his current position as general manager Goldcorp acquired the property from Virginia Mines, the of Goldcorp Inc.’s Éléonore Mine in the James Bay region of Quebec City-based junior company that discovered what northern Québec. proved to be a vast deposit. And with construction nearing Éléonore is one of three mines that Vancouver-based Goldcorp completion, Belleau could hardly wait to get into production.

12 | Canadian Mining Journal • October 2014 www.canadianminingjournal.com “After the past five years of thinking about a world-class gold A closer look at some of the main structures at the mine. mine operation, of going through the concept, the design and the permitting, through the hiring and the construction, it’s coming,” he says. “We can smell it. We can almost touch gold.” Goldcorp has invested about $1.8 billion into a mine that has megaproject written all over it. The company started in November, 2009 with an advanced exploration camp which consisted of several portable trailers that served as office space and bunkhouses for the staff. Construction began in February 2011 after Goldcorp had received all the necessary permits from the Quebec government and had signed a collaboration agreement with the Cree Nation of Wemindji and the broader Cree Nation Government. Initially the company had to move materials and supplies to the site by barges in the summer and ice roads in the winter. Since then, Goldcorp has built a 70-kilometre all-weather road that connects the mine site to a Hydro-Quebec road that termi- nates at a dam on the Opinaca Reservoir, and the company also erected a power line adjacent to the road. each with two beds, and by the end of August the cafeteria had The road will be used to transport equipment and supplies, served one million meals. but the company has also built a fully staffed airport at the However, Belleau notes that Goldcorp has gone the extra mile mine site and employees will be flown in from Rouyn-Noranda, to ensure that workers enjoy comfortable accommodations and Montreal, Chibougamou and Wemindji on Dash 8 turboprops good food. with a capacity of 39 passengers. “It’s one of the busier airports “We’ve raised the bar,” he says. “The rooms are like you get at in the province,” says Belleau. a five-star hotel. You’ve got a 42-inch flat screen TV in each one Throughout 2014, the airport has been handling 40 to 70 with movies on demand and all the channels in French and flights per week as the company shuttled construction crews in English that they watch at home. We have a five-week rotating and out. At any one time, there have been up to 1,400 workers menu. In other words, what you eat tonight, you won’t see for employed around the clock, the camp has grown to 950 rooms, another five weeks.”

October 2014 • Canadian Mining Journal | 13 | Mining in Quebec Bertie-John Stéphanie Fitzgerald, environ- Darren Moore, Georgekish, mental trainee and Gabriel truck operator rock cutter. Damphousse, environmental supervisor.

The mine will create 2,000 jobs in 2014 and 1200 in 2015 with Goldcorp has also forged a healthy partnership with the Cree 700 people full time at the site. Workers will be housed two to a governments and the company has already hired and trained 305 room, but their shifts are staggered so that only one person is Cree workers at the mine. occupying a room at any given time. They will work seven days Some are working underground, others in the mill and still straight, followed by seven days off, meaning that they will have others in the cafeteria or the janitorial services department but a total of six months per year at home, not including four weeks the company has developed special training programs, both on- holidays. site and off, that allow aboriginal employees to start at entry level As well, the flights in and out are relatively short; one hour positions and advance to sophisticated mining jobs. from Chibougamou, one hour and 20 minutes from Rouyn- “We have people who started washing dishes in the cafeteria Noranda and one hour and 40 minutes from Montreal. and now they are key underground operators,” says Belleau. “You finish your days in and, bang, you can be home having By early September, the company had sunk a ramp from sur- a beer with your wife in under two hours,” says Belleau. face to a depth of 800 metres while the production shaft had been

Jessica Frigon, mining technician.

14 | Canadian Mining Journal • October 2014 www.canadianminingjournal.com Gordon Asquabaneskum, heavy equipment operator.

sunk to 945 metres and was still about a year from completion. Goldcorp was set to begin mining the high-grade vein deposits on three fronts and at depths of 350 metres, 400 metres and 650 metres. “We will go down to at least 1,500 metres one day and the deposit is open at depth,” Belleau says. “We don’t know where it’s going to go beyond that.” At the same time, Goldcorp holds a very large land position around the Éléonore Mine and will be pursuing an aggressive exploration program in years to come. “We believe this is just the beginning,” says Belleau. “We’re just scratching the surface. We’re putting a lot of money into exploration and I’m quite confident that in a couple of years we’ll be talk- ing about the next mine.” In the meantime, though, the focus is on starting and ramping up production at Éléonore. “We’re putting in world-class infrastructure,” he says. “We’re using the latest technology underground and in the plant. This is a fully mechanized operation and nobody will lift anything. We’re putting a lot of emphasis on our people, on safety and on partner- ships. That leads to success in terms of productivity, efficiency and cost.” CMJ

Wayne Gilpin, truck driver.

October 2014 • Canadian Mining Journal | 15 | Mining in Quebec

DEVOTION PAYS OFF here’s nothing more satisfying than advancing from the Decades of work ‘development’ to the ‘production’ stage of a project and that’s rewarded with exactly what IAMGOLD of Toronto experienced in July 2014 now that its Westwood Mine in Quebec has reached com- operating mine mercialT production. Located in the Abitibi region of the province approximately By Russell Noble 420km northwest of Montreal and accessible year-round via paved roads, the mine is situated on a property that covers 1,925 hectares and contains 120 titles, one mining lease, one surface lease and three tailings leases. The Westwood Project is in Bousquet Township, about 40km east of Rouyn-Noranda and 80km west of Val d’Or, a 120-km stretch in the southwestern part of the province also known for such producing and past-producing mines such as: Mouska, Doyon,

16 | Canadian Mining Journal • October 2014 www.canadianminingjournal.com Underground jumbo drills ore during production.

Bousquet, LaRond and Lapa. The region is well serviced with the operations teams are achieving “excellent” development rates high-speed internet communications, hydro-electric power, of over 1,400m per month. water, and an active railway line just 10km south of the From the initiation of exploration in 2002 at Westwood to Westwood Project. December 2013, Stothart says a total of 540,484m of diamond Add to these features an expectation to produce on average drilling was completed during which time the overall Proven and over 180,000 ounces of gold from the Westwood Mine over an Probable Reserves were 940,000 tonnes, 11.5 g/t, containing expected 19-year mine life and it’s no wonder IAMGOLD was 348,000 ounces of gold, Measured and Indicated Resources of pleased to recently announce that “Westwood is a pivotal achieve- 1,394,000 tonnes, 11/9 g/t, containing 533,000 ounces of gold, ment for the company” and why Company President and CEO and Inferred Resources of 9,589,000 tonnes, 10.6 g/t, containing Steve Letwin says that by hoisting ore at an average of 1,075 3,258,000 ounces of gold. tonnes per day for the first 30 days of July, the project is clearly The overall resource estimate has been very stable and the considered an operating mine and will no longer be accounted for as a development project. In fact, Letwin says that moving from development into production was significant in many PAYS OFF ways because it further establishes the company’s presence in the Abitibi region by adding gold totals from its 30-year legacy of underground mining in Northern Quebec. IAMGOLD is well positioned to be one of the major players in Quebec and as Gordon Stothart, the company’s Chief Operation Officer says: “Transitioning from the successful operational history of the Doyon and Mouska mines, we expect this region to produce in the range of 100,000 to 120,000 ounces of gold for us this year, including the final production from Mouska and both commercial and pre-commercial produc- Ore being loaded tion from Westwood.” into a truck headed In support of those expectations, Stothart said for the surface.

October 2014 • Canadian Mining Journal | 17 | Mining in Quebec

Now that production at the underground mine has started, processing of ore is being carried out at the nearby Doyon carbon-in- pulp (CIP) mill complex. The ore is hauled the 2km where it is crushed and ground in a circuit consisting of the existing SAG mill and a 1,000 HP ball mill. “However,” says Stothart, “the project is split into two phases. In the first phase, only the gold mineralization is being treated at the mill. During the first year of operation, the mineralization will be processed at a rate of 700,000 tonnes per year and subsequently increased to a capacity of 800,000 tonnes. We’ve temporarily converted the copper circuit at the Mouska mill to a desulpherization circuit and the cynanide destruction capacity has been increased to treat the tailings.” Stothart further explained that the current Hoist room at Mouska flotation system will be used for the cop- Westwood. per flotation in the second phase of the project. “Three tanks will be added to increase the average grade has steadily increased. This has given the manage- retention time and the current copper concen- ment team a high degree of confidence in the future of this mine. trate thickener will be upgraded from 3.6m to 6.0m in order to IAMGOLD expects to produce a LOM average of 165,000 to meet the higher demand and a new circuit will be installed for 180,000 ounces of gold per year at an average cash cost of zinc flotation,” says Stothart. between $630 and $690 per ounce produced. The Westwood Mine will process all of its ore at IAMGOLD’S With gold trading at nearly twice that amount, the company’s refurbished gold plant, which operated for over 30 years to pro- cost/ounce gives further reason for its confidence in that the cess ore from the Mouska Mine (closed in 2014) and the Doyon Westbrook Mine will be one more reason the name IAMGOLD Mine (closed in 2009). The Doyon Mine formerly operated as an will be part of the Bousquet Township community and its vari- underground mine, but also as an open pit mine and at that time ous activities for years to come. the plant processed in excess of 1 million tpa.

The mill.

18 | Canadian Mining Journal • October 2014 www.canadianminingjournal.com Headframe.

As already mentioned, the new Westwood Mine is designed to hoist between 700,000 and 800,000 tpa. The rate of ramp up to full production will take several years, with the pace of development being dependent upon the price of gold, operating cash flows and the amount of capital the company will be comfortable spending each year. With the mine still in its early days of com- BUILT ON EXPERIENCE. mercial production, Westwood continues to evaluate various FUELLED BY EXPERTISE. production profiles to optimize and get the best economic return from the processing of its mineral resource For more than 35 years, BBA has been During the ramp-up period and even at full capacity the mine helping industrial clients transform complex will not provide enough throughput to fill the gold plant. The problems into practical, innovative and Westwood plant will utilize its spare capacity to process between sustainable solutions. 150,000 and 200,000 tonnes annually for Gold Bullion Development Corporation. Recognized for its extensive field experience IAMGOLD is often thought of as a mining company with and cutting-edge expertise, BBA delivers predominately low-grade open pit mines, but Westwood is dif- a comprehensive range of consulting ferent from the rest. It’s an underground mine with a long nar- engineering services, from studies and row lens of gold in the prolific Abitibi greenstone belt and is part of the Doyon-Bousquet-LaRonde (DBL) mining camp. The asset integrity plans to commissioning project is located within the southern Abitibi Sub-Province, in and operational support. Archaean volcanic and intrusive rocks of the Bousquet Formation. With offices from coast to coast, BBA is The DBL mining camp hosts two world class deposits: the Doyon and LaRonde-Penna mines and is by far the largest Au-Cu-Zn- synonymous with proximity and agility. Ag producing district in Québec. IAMGOLD brings a team with 30 years of underground mining experience to this mine and the mine development teams are already over achieving on their priority headings, another positive sign for the future of the company. The development and operations teams are achieving mine development rates over 1,400 metres per month. As mentioned earlier, the company has been working hard to move from “development” to “production” and the Westwood Energy │ Mining and metals │ Oil, gas and biofuels Mine is proof that hard work pays. CMJ

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Petro-Canada brings over 30 years of Canadian mining experience to the development of a full suite of products to help keep your mine running consistently and profitably. We believe that reducing downtime is more than a promise; it’s a commitment to delivering our Tangible Savings Solutions shift after shift. Call a Petro-Canada representative today to discover how our top-performing lubricants will maximize uptime and productivity for your mining operation.

Call 1-866-335-3369 or visit lubricants.petro-canada.ca/mining

Petro-Canada is a Suncor Energy business TMTrademark of Suncor Energy Inc. Used under licence.

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Production Artist: MC Date: Dec 22, 2010 Revision #: 1 SC: Y

JAN Kelley Marketing, its employees and agents (collectively referred to as “JKM”) shall not be held liable for any loss or damage suffered by you, or by any third party, from the use of these marketing materials (the “Materials”) if they have been modified, distorted, combined with third party content, or manipulated in whole or in part by any party other than JKM. Further, once the proof of the Materials has been approved by you, JKM shall not be liable for any loss or damage suffered by you or any third party arising from any alleged or actual defect in the Materials or in any way arising from their reproduction by a party other than JKM. CONTENTSFeature

Supplement of EQUIPMENT MAINTENANCE & REPAIR CANADIANMining Journal 24 OCTOBER PUBLISHED BY Canadian Mining Journal 80 Valleybrook Dr., North York, ON M3B 2S9 Tel. (416) 442-5600 Fax (416) 510-5138 www.canadianminingjournal.com EDITOR Russell Noble 416-510-6742 [email protected] 24...SCREENS ART DIRECTOR A case history of how one B.C. sand-and- Mark Ryan gravel producer answers the call for more products by routinely servicing PRODUCTION MANAGER and maintaining its fleet of screening Steven Hofmann equipment to help ensure it performs well and produces without fail. PRINT PRODUCTION MANAGER Phyllis Wright FLUIDS CIRCULATION MANAGER 28... A detailed look at the various flu- Cindi Holder ids required to keep today’s mining 416-442-5600, ext. 3544 machines performing as specified 28 [email protected] and how these fluids react to different PUBLISHER working conditions in Canada. Robert Seagraves 416 510-6891 32...FILTERS [email protected] Keeping filters and breathers clean is SALES essential to good equipment perfor- Western Canada, Western U.S.A. mance. This article provides readers & Quebec with a few tips on how to keep engines running smoothly and why maintain- Joelle Glasroth ing filters and breathers is a relatively 416-510-5245 inexpensive yet important part of tak- [email protected] ing care of equipment. Printed in Canada All rights reserved 34...MAINTENANCE 32 Managing the scheduling of routine maintenance of equipment is almost 36 ABOUT as important as performing the service THE COVER and repairs themselves and this article The cover to the looks at what fleet owners and operators Equipment Main- EQUIPMENT MAINTENANCE & REPAIR should know about “Reducing the risk of tenance & Repair failure” through equipment scheduling. section is an over SLICK SOLUTIONS exaggeration of Answers to help keep machines the use of grease performing well 36...CONVEYORS but it serves to A look at what one company suggests depict the “Slick mine owners and operators keep in Solutions” theme mind when operating conveyors sys- of the 16-page tems. supplement.

EM&R October 2014» 23 Feature »Equipment Maintenance and Repair

Screening SUCCESS Upgrades help Agg producer deliver the goods

24 »EM&R October 2014 www.canadianminingjournal.com Equipment Maintenance and Repair» Feature

owntime is a killer when it comes to Since the first years of its existence, screen in just two hours, the feed end of lost opportunities and profits and in the now third-generation company has a washing unit can take the same four Dthe fast-moving oil and natural gas used W.S. Tyler screens. Although it was employees up to two shifts to complete. fields of the Peace River Region in north- happy with the wear life, Nels said the That’s a $3,000 expense in labour alone. eastern British Columbia, this is especially company would occasionally experi- While the crew is installing the new true for companies like sand-and-gravel ment with lower-cost screen media, but screens, the entire plant needs to shut producer Nels Ostero Ltd., where the push it quickly discovered cutting corners led down, making lost production very is on to produce more product, faster and to major sacrifices of time and money alarming. Ostero says the drainage more efficiently. and an increase of headaches. gravel and concrete sand the company To keep up with the demand for The lower-cost screens had only produces ranges from $17-$26 per met- more aggregates, Nels Ostero needed to about 30 per cent of the life that W.S. ric ton. With varying output rates, two beef up its screening and as Company Tyler screens offered, and that led to 10-hour shifts of downtime can be crip- Manager Nilson Ostero says, “Over the screen panel changeouts about every pling, easily costing the company more last three years, the demand for aggre- three days. Premature failures were than six figures per changeout. It was an gates has really taken off. The area’s costing the company downtime, pro- expense and hassle Ostero figured he’d infrastructure is rapidly growing, so duction and thousands of dollars in have to live with. there’s tremendous pressure to keep up maintenance and labour fees. This was with local aggregate demands.” especially true at the feed end of the THEN W.S. TYLER CAME CALLING Efficiency and optimal uptime are cru- washing screens, where changeouts W.S. Tyler had just opened its Haver & cial for the company, especially for its six were required up to four or five times Tyler Rocky Mountains facility in vibrating screens: two 6 x 20 horizontal per year for each screen. Chilliwack, B.C., just on the outskirts of screens, a 6 x 20 incline scalping screen, a Changeouts on the washing screens Vancouver. The new location put the 6 x 16 inclined splitting screen, and two 7 are more time- and labour-intensive company’s technicians and specialists x 16 washing screens, which the Ostero than on any of the other screens. The closer to companies like Nels Ostero so crew refers to as the East and West Screens. confined space with spray bars and the they can respond more quickly to inves- Because of the company’s wide array amount of rust that forms on the mate- tigate problems and find solutions. of machines from different manufactur- rial make it challenging. Markus Kopper, Haver & Tyler’s gen- ers, Ostero said the selection of high- Ostero said washing screen change- eral manager, contacted Ostero and quality, long-lasting screen media is outs are the least favourite job among the offered to visit the site to inspect each of especially important to the company team. While four employees can change the machines at no cost. The visit would and its operations. the screen media on a typical vibrating include a complete vibration analysis,

Changeouts on the washing screens were more time- and labor-intensive than on any of the other screens. The feed end of these washing units took four employees up to two shifts to complete.

EM&R October 2014» 25 Feature »Equipment Maintenance and Repair which is a part of W.S. Tyler’s Pro-Deck lar polyurethane, and the material offers approach, full inspections of all vibrating 4-6 times the wear life in comparison to machines regardless of brand, recom- woven wire cloth. The screens at the dis- mendations and a Pro-Deck Efficiency charge end were regular square mesh. Report. “In analyzing the decks of the wash Kopper performed tests and ana- screens, we felt Nels Ostero could ben- lyzed each of the machines, and the W.S efit from tailoring the first section of the Tyler crew worked around Nels Ostero’s decks to the application and phase of maintenance schedule to minimize screening. They needed more wear downtime. A vibration analysis of each resistance and could reduce the open of the six machines revealed that five of area to get a larger impact surface for the units were performing within nor- the material. This has the potential to mal parameters, and one was in critical significantly reduce the downtime,” need of major adjustments. Kopper explained. W.S. Tyler informed Ostero that the He recommended swapping out the particular machine was showing a high first section of Ty-Wire to Ty-Max with G-Force and twist factor at the centre the same size opening. Ty-Max screen and discharge end. Further, its right side media is manufactured with polyure- plate had a crack, the lip support beam thane that is specially formulated for was cracked, and the feed material was optimum wear resistance. This media impacting on the screen media rather handles direct feed better than wire than the feed box. Minor adjustments cloth, reduces changeouts and maxi- were also suggested to optimize the per- mizes productivity – exactly what the formance of the machines that were operation needed. functioning normally. Because this meant reducing the Another key recommendation was to open area to get a larger impact surface, change screen media on 22 of the 34 sec- Kopper recommended a self-cleaning tions of deck in the operation to fix prob- woven wire screen media on the remain- lems with blinding, pegging, open area and der of the deck. A self-cleaning screen excessive wear. Special attention was also would provide maximum open area given to the recommendations for the while preventing blinding or pegging. screen media on the washing screens. At the time of implementation, Kopper At the time of the analysis, Ostero had predicted that changing of screens would Ty-Wire, a blend of polyurethane and save Nels Ostero somewhere between six wire cloth, on the first two sections of the and eight days of downtime per season, top deck on both screens. Ty-Wire has a which would equate to an increase of tens greater open area than traditional modu- of thousands of dollars.

PUTTING PRO-DECK TO THE TEST The Nels Ostero operation started its season with the Pro-Deck system in mid-April 2014. In just a few months, Ostero said he was delighted with the modifications and relieved the operation is better able to keep up with constantly growing demand. He reports downtime for screen changeouts has been cut in half. Since the screens are specifically designed for the portion of the vibrating screen deck on Ty-Max screen media is designed for which they are placed, he says they last optimum wear resistance. Even at the longer. feed end, this media reduces change- Although the specialized screens cost outs and maximizes productivity. more up front than the system the com-

26 »EM&R October 2014 www.canadianminingjournal.com Equipment Maintenance and Repair» Feature

Situated within the natural gas fields of the Peace River Region in northeastern British Columbia, Nels Ostero Ltd. was looking for ways to beef up its screening. The company is home to six vibrating screens: two 6 x 20 horizontal screens, a 6 x 20 incline scalping screen, a 6 x 16 inclined splitting screen, and two 7 x 16 washing screens.

pany had been using previously, Ostero Ostero has also decreased its water con- end. This blended solution gave Ostero says the payback makes the decision a sumption on the screens due to the the optimal combination of open area, no-brainer. “We’ve found it’s worth the switch to a self-cleaning screen. This durability and productivity. So as it cost,” he said. “These screens allow more self-cleaning design reduces binding and turned out, Ostero says, his greatest fear plant uptime, so they pay for themselves pegging and ensures the screen stays going in has actually been the most in just the first few months of operation. clean, which, in Ostero’s case, has reduced impressive improvement. And the longevity is phenomenal. We’ve the water needed to clean material from “Usually, when switching to a more already sliced our downtime and mainte- its washing units. durable screen, the open area decreases nance in half.” On top of the screen longevity and and production is lost,” he explained. Ostero says even after several months boost in efficiency, Ostero has been “But the Ty-Max is holding strong at the of operation, the screens are holding pleased to see his biggest fear – loss in feed end, which has reduced changeouts strong. He projects that, with the Pro- production – dissolve with the fines. and actually helps us maximize produc- Deck system in place, the screens will While Ty-Max reduced open area on the tivity.” reach at least twice the life of the previ- feed end, the self-cleaning screen pro- ous system. As an added bonus, Nels vided more open area at the discharge Information for this article provided by W.S. Tyler.

EM&R October 2014» 27 Feature »Equipment Maintenance and Repair

Is your hydraulic fluid JOB?up to the

Understanding the solutions for optimal hydraulic fluid performance in even the most severe conditions

perations around the world are Choosing what type of fluid to use in your change outs. The resulting downtime and facing pressures to increase pro- hydraulic equipment can make the differ- repairs can increase maintenance costs, ductivity and manage the risk of ence between productivity and inefficien- slow production and ultimately reduce Odowntime, all while lowering or cy, between profit and loss. profit margins.” maintaining operating costs in order to “Conducting a regular review of Knowing how to select the right hydrau- attain a competitive edge. Nowhere is this hydraulic fluids is something many main- lic fluid amid extreme conditions is essen- more evident than in areas such as mining tenance and purchasing managers often tial to the success of today’s operations. operations, where equipment is expected overlook,” says Robert Farthing, Hydraulic to perform in harsh environments, Oil Category Portfolio Manager, Petro- THE CHALLENGING OUTDOORS through extreme temperature fluctuations Canada Lubricants. “Despite the fact that Mining equipment is frequently exposed and where failure caused by fluid break- failure to evaluate can result in the use of to dirt, dust and aggregate, putting downs can be expensive to fix, and even a low-quality fluids with short service hydraulic fluids at increased risk of con- costlier in terms of lost production. lives that require frequent top ups or tamination. In addition, environmental

28 »EM&R October 2014 www.canadianminingjournal.com Equipment Maintenance and Repair» Feature

Fleets of heavy equipment working in harsh conditions require maintenance more often because of their surroundings and hydraulic fluids and lubricants need particular attention when servicing machinery.

“We sell and service all types of hydrau- allow a company to consolidate its sea- lic systems for construction and oil field sonal fluids and minimize storage equipment,” says Calverley. “This equip- requirements, which is an issue for many ment operates year round in harsh condi- remote operations.” tions including temperatures as low as “Reliability is critical for my customers”, -40˚C (-40˚F) in the winter, and as hot as says Kris Calverley. “It’s nice to know that 35˚C (95˚F) in the summer.” your hydraulic fluid can provide extra pro- Cold start-ups can be a major risk to tection, even during severe wear periods.” equipment as frigid temperatures can slow the movement of fluids through hydraulic FILTRATION systems. Low temperature properties of a Many outdoor and remote operations hydraulic fluid are essential to ensure the need additional filtration for their equip- lubricant will flow to the critical areas ment in order to combat dusty, dirty or within the equipment to prevent metal to unpredictable environmental conditions. metal contact and equipment wear. But if “Filtration is an area that is often over- you over-compensate with lighter viscosity looked but it’s very important in hydraulic oil, the protective fluid film can break systems,” says Purificati. “The tolerances down when the operating temperature gets in hydraulic systems can be tight and if higher and that can compromise protec- you end up with particles in the oil it will tion. The regular starting and stopping of reduce the efficiency of the system.” outdoor equipment and heavy loads only Like any system, a good preventative exacerbates these problems. maintenance schedule and proper main- Darryl Purificati is certainly familiar tenance practices are vital to the perfor- conditions, particularly wide temperature with the hydraulic fluid demands of today’s mance of hydraulic equipment. swings and humidity levels, add to the industries. As Manager of OEM Technical “Filters can be inexpensive insurance overall strain on equipment. Sales for Petro-Canada Lubricants, for a hydraulic system”, says Purificati. “Outdoor operations always present Purificati recommends a multi-grade fluid “And they can make a world of difference more challenges,” says Farthing. “And such as HYDREXTM XV as a solution to when it comes to protecting the entire remote locations pose unique problems operating in these drastic temperatures. hydraulic system as they can help to because of the limited resources to store “The right all-weather hydraulic fluid reduce the fine particle count, potentially product.” will ensure both adequate flow proper- extending fluid life.” Kris Calverley, an owner and operator ties at start-up over a wide range of tem- of Double R Repairs, knows first hand that peratures, as well as maintain an appro- MOISTURE CONTROL a hydraulic fluid is needed to not only priate viscosity at high operating tem- Moisture is also a major challenge for the endure rugged and demanding conditions, peratures to ensure sufficient boundary performance of hydraulic fluid in outdoor but to maintain optimal performance. lubrication,” says Purificati. “It can also operations. Once moisture gets into the

EM&R October 2014» 29 Feature »Equipment Maintenance and Repair

biodegradable, recyclable, odorless and free of heavy metals. It also lasts up to eight times longer than the leading vege- table-based hydraulic fluid.

WEAR PROTECTION There are many factors that can make or break the fluid you use, such as the time and intensity of equipment operation, pressures and application temperatures. “Today’s equipment is being pushed farther and farther and with that comes elevated temperatures,” says Purificati. “Fluids need to be able to take the heat or equipment could wear prematurely.” Kris Calverley of Double R Repairs has tried many types of hydraulic fluids and was unable to find one that met all expectations. Until he used HYDREX XV. When a pump’s shut-off valve failed it convinced him that HYDREX was the best hydraulic fluid for his customers. “With a pump running out of control for two straight hours, oil reaching high temperatures, rubber mounts melting and the filter disintegrating, I was amazed that the pump never seized,” says Calverley. “No other hydraulic fluid could have stood up and protected the equipment like HYDREX XV did.” Not every hydraulic system will be put to Lab work helps product specialist develop with that kind of test, but extreme working con- right products for the ditions, whether in the field or on the manu- various applications. facturing line, demand extra protection. system it can create foaming, which use a hydraulic fluid that performs and OXIDATION STABILITY decreases the efficiency of the system. protects longer so you can extend drain Extreme working conditions put a lot of “One problem with foam is that it can intervals on your equipment. heat on hydraulic systems. Be it through introduce air pockets,” says Purificati. “The “The less a reservoir is opened, the the intensity of the environment or the system then pumps air and foam instead of lower the chances of contamination intensity of production, as the tempera- fluid, which may create gaps in the fluid entering the system,” says Purificati. ture of the hydraulic fluid gets hotter, the film layer, leading to metal to metal contact “Reducing the number of top ups and rate of oxidation climbs higher. and premature wear. Another outcome of change outs reduces the number of times When the fluid breaks down under excessive foaming is pump failure and that a reservoir is exposed.” excessive heat, the entire hydraulic system kind of breakdown results in costly down- is put at risk. One of the fallouts from time and expensive repairs.” ENVIRONMENTAL PROTECTION extreme heat exposure is increased acidity Air and moisture can creep into the Protecting the environment is always a in the fluid, which can accelerate corrosion. system through leaks in the pump and concern when using fluids in outdoor Also, oil thickening and the formation of around seals. In addition to addressing applications. While companies strive to varnish and sludge can interfere with valve the mechanical causes, you can protect guard against any type of contamination operation, plug filters, reduce flow and your systems by using a hydraulic fluid from their operations, there is always risk. eventually lead to poor performance. with foam suppressant additives formu- In environmentally sensitive situations, “Even with a good filtering system, lated to accelerate the breakup of foam Purificati recommends a zinc-free fluid excessive sludge can increase system pres- and separation of entrained air. such as ENVIRON, especially when work- sures and seriously damage the hydraulic Another way to protect against both ing around watershed or natural habitats. pump,” says Purificati. “In the end, it makes particle contamination and moisture is to ENVIRON is non-toxic, inherently the system work harder for less of a result.”

30 »EM&R October 2014 www.canadianminingjournal.com Equipment Maintenance and Repair» Feature

Harsh weather conditions challenge equipment exposed to cold and heat to perform as specified.

What does this all amount to? Well, While oil cooling rates are primarily increase maintenance costs, slow produc- when your company’s productivity and dependent on the engineering of the tion and ultimately reduce profit margins.” operations rest on the performance of hydraulic system and quiet time in the Oil monitoring programs, such as their hydraulic systems, you can’t afford to reservoir, a quality hydraulic oil with an Petro-Canada Lubricants’ Lubri-Test, are ignore quality. Using the right high-per- advanced additive package will be better low-cost preventative-maintenance pro- formance hydraulic fluid will help to suited to tolerate such temperature grams, used to evaluate the condition of ensure optimal productivity while saving extremes. lubricants and equipment on a routine you money. “A fluid with good thermal stability basis. The program monitors oil proper- For an even wider range in tempera- will resist degradation in high tempera- ties such as viscosity, oxidation levels and tures, Petro-Canada Lubricants’ HYDREX tures,” says Purificati. “And it reduces the metals content to help detect abnormal EXTREME hydraulic fluid is recommend- need for additive top up.” equipment wear and unwelcome contam- ed for vane, gear and axial piston hydraulic A high performance hydraulic fluid like inants like dust, dirt and water. Oil moni- pumps over an extremely wide range of HYDREX EXTREME makes it easier for toring programs can be used to help operating temperatures. So, whether you’re heat to dissipate from the hydraulic system. extend drain intervals until they are actu- dealing with low start-up temperatures or That means the oil can also cool down ally necessary. high operating temperatures, or maybe quicker and better protect equipment from “By reviewing the performance of both, you can rely on IT. With its low tem- the damaging effects of oxidation. hydraulic fluid, many companies have perature pumpability, you can rest easy been able to reduce unscheduled down- knowing your equipment will start-up in OIL MONITORING time, improve equipment reliability and temperatures as low as -48°C (-54°F) to With equipment being pushed to the limit extend equipment life,” says Farthing. operating temperatures as high as +76°C for hours on end, day after day, often in “The results of reduced maintenance costs (169°F) for mobile equipment and +68°C harsh conditions, it is becoming increas- and improved equipment performance (+154°F) for industrial machinery. ingly important that companies use top help build a stronger bottom line.” What does all of this mean for you and quality hydraulic fluids that can both The tougher the job, the stronger your your business? You could potentially persevere and perform. hydraulic fluid needs to be. If you haven’t eliminate seasonal change-outs which “A regular review of hydraulic fluids is analyzed your oil in a while, now is a good help reduce inventory costs, downtime something many maintenance and pur- time to assess whether you’re getting the and chance of misapplication. You get chasing managers often overlook,” says best performance and protection you longer oil life which also helps extend Petro-Canada Lubricants; Farthing. “Yet could be. It’s a relatively easy way to meet time between oil changes, reducing down- failure to evaluate can result in the use of the extreme demands on your equipment time and costs. HYDREX can help keep low-quality fluid with short service life that and your business. your money and your productivity levels requires frequent top-ups or change-outs. where they should be. The resulting downtime and repairs can Information for this article provided by Petro Canada.

EM&R October 2014» 31 Feature »Equipment Maintenance and Repair

Keeping Fluids CLEAN All systems demand close attention oisture contamination in lubri- cating oils and hydraulic systems can cause damage to the Msystem and components such as motors and pumps, becoming an even bigger threat than its more obvious big brother — particle contamination. There are several ways that contaminants can find their way into equipment, including poor oil top-up and sampling methods, poor seals, and improper han- solved.” All industrial fluids contain a very state. Newer motor oils can handle three dling methods. small level of dissolved water, which can times these amounts before contamina- Here’s what happens in moisture con- typically be handled at levels between 200 tion is noticeable. tamination. and 600 parts per million (ppm). The But at some point, individual water Individual water molecules that get fluid’s temperature plays a key role in its molecules saturate the oil and the water dispersed through oil are considered “dis- ability to maintain water in a dissolved begins to coalesce. Some signs of this

32 »EM&R October 2014 www.canadianminingjournal.com Equipment Maintenance and Repair» Feature Large pieces of equipment used in mining require special attention when it comes to the number of complex systems required to keep the huge one per cent contamination can reduce fluctuations occur through thermal machines running. Lubrication and component life by up to 90 per cent. expansion and contraction of the fluid hydraulic fluids need routine mainte- So what can you do to stop moisture and the level changes produced by the fill- nance in order to keep equipment performing without breakdowns. contamination? ing and emptying of the reservoirs. Finding the right breather will help the When carbon is added to the silica gel, systems in your equipment last longer and the breathers can capture oil mist and prevent unnecessary downtime and oil evenly disperse incoming air so that the replacement. Desiccant breathers are synthetic filter and silica gel combination especially useful in environments that works more effectively. The more the air contain high dust and humidity levels. passes through both, the cleaner it Desiccant breathers are comprised of a becomes. If a breather is designed with silica gel that attracts and retains up to 40 more vent holes to allow variable airflow per cent of its weight in water. Together patterns, it increases the filtration media with a synthetic filter media, they prevent and desiccant drying capabilities. moisture and particle contamination from getting into your reservoirs as pressure Information for this article provided by Hitachi.

SOME THINGS TO KEEP IN MIND WHEN SELECTING DESICCANT BREATHERS: • When choosing a desiccant breather size, be sure to consider the amount of air exchanged (cubic ft./min.) for each application. Airflow capacity must match or surpass the tank’s fill and drawdown rate. Breather size should increase as the flow rates increase. • Choose a steel or plastic breather housing, depending on your operating environment. Steel is a better choice if you’re dealing with hot, dusty environments. • Pay attention to the color of the silica gel as an indicator of when to change breathers, as most breather manufacturers put dyes in the silica gel to facilitate a color change when the gel becomes saturated. • If you operate in a damp and dirty environment with minimal air-volume changes, newer expansion-type breathers can better control the breathing action and permit expansion and contraction of the airspace. • Consider more specific applications for desiccant breather filters than mobile hydraulic systems, such as switch gears, gearboxes, turbines, feed pumps, oil-cooled transformers, and diesel-fuel storage tanks.

Because hydraulic systems are such an integral part of a machine’s makeup, keeping your hydraulic fluid clean is essential to keeping machines operating at optimum performance. Since building the first hydraulic excavator nearly 50 years ago, Hitachi continues to deliver smooth operating machines thanks to innovative engineering and advanced technology, plus careful attention to routine service and maintenance recommendations.

HERE ARE A FEW MORE TIPS FROM THE COMPANY TO HELP KEEP MACHINES OPERATING AS SPECIFIED. • Filter hydraulic fluid even if it’s new. New fluid isn’t necessarily clean fluid. In most cases, the would be a cloudy appearance or the cre- hydraulic system of your machine cleans the fluid to a higher level once in use but this could ation of microdroplets. Finally, after the be risky if the cleanliness of the initial fluid is unknown. As a general rule, the best practice is to emulsified water increases, it settles to the filter caddy the fluid while topping off your machine. bottom of tanks and sumps as a layer of • Invest in a filter caddy.A filter caddy can remove excess contamination after a repair and free water. reduce contamination levels on machines that are having trouble maintaining the right balance Settlement isn’t your only problem. on contaminants in their hydraulic systems. A filter caddy can extend the life of fluid by keeping it clean and boosts the life of components. For practical purposes, the filter caddy should have Once water mixes with oil, chemical reac- the ability to read particle counts, humidity, and in some cases, viscosity of the fluid. tions occur. These reactions, called hydro- • Conduct oil analysis. Oil analysis can detect changes in the physical properties of the fluid that lysis, involve not only the water and base diminish its protective properties. Fluid analysis can detect the wear metals inside the machine oil, but also various additives, including that are being lost little by little from its components. Remember, an oil change alone is not a extreme pressure- and wear-resistance guaranty machines will survive longer – it does not replace the need for oil analysis. agents, rust and oxidation inhibitors, and • Avoid mixing different types of hydraulic fluids. By mixing types and brands of fluids, you viscosity improvers. create a new product with differing ratios of additives and even base oils. Machines are very sensitive to these changes and can have negative reactions. The result? Oil’s aging can accelerate • Avoid intrusive repairs in the open. If the repair is necessary, always filter caddy the ma- tenfold. And you’ll experience sludge, var- chine afterward. Take a fluid sample after a repair to make sure the machine complies with nish, various acids, surface deposits (rust), particle-count specifications. Additionally, don’t leave hoses uncapped and cover disassembled and polymerization. What’s more, a mere components properly.

EM&R October 2014» 33 Feature »Equipment Maintenance and Repair Reducing the risk of

FAILURESpecial Report* ithin Facilities Management of The Full Enhancement Cleanse is typically almost all organizations, includ- selected when data is being used by main- Wing mining, maintenance plays a tenance and engineering, in which case critical role in the overall productivity, comprehensive and complete item descrip- safety, and efficiency of the operation. tions are required for efficient part search Regularly scheduled preventative ability and identification. For the purpose maintenance procedures are required in of procurement, spend analysis and inven- order to maximize equipment life and tory optimization, only pertinent purchase reduce the risk of catastrophic failure. In information is required. In this case, a basic combination with the purchasing and pro- Cosmetic Cleanse can be performed to curement departments, a large portion of segregate Manufacturer Names and Part the maintenance responsibility also means Numbers, assign Noun-Modifier pairs, and ensuring that the right parts are available apply accurate commodity codes. With this in the right quantity at the right time. information, the inventory analysis and Although this may not sound compli- optimization process can begin. cated, the challenge is doing so cost effectively. Determining optimal inventory EXAMPLE: stocking levels should be a strategic, data- Raw Client Data: 62052rs-C3, Bearing, Skf, 25mm ID driven calculation, however, the unfortu- nate reality is that many companies do not Cosmetic Cleanse: have accurate data and statistics to make BEARING, BALL, SKF, 6205-2RS these calculated decisions. Too often maintenance professionals are influenced Based on 24-36 months transactional by the fear of stocks outs, while procure- purchase history and on-hand quantities, ment leaders and the finance team strive inventory data is sorted into OEM and to minimize on-hand inventory and cost. Data-Driven Cost Savings Progression MRO categories. From there items are Two of the most difficult challenges Model: Image illustrates the cost savings segmented into typical commodity that maintenance and procurement pro- progression model, which begins with groups, including: Bearing & Power data cleansing (data quality) and moves fessionals face are maintaining quality thought the various phases of the inven- Transmission, Electrical, Instrumentation, data for effective analysis while balancing tory optimization process. Mobile Equipment, Industrial Supplies, inventory investment versus production Fluid Power, and Pipes, Valves & Fittings. downtime risk. cost savings and improved efficiency, The next phase of the inventory opti- In a maintenance mindset, the cost of while providing many indirect procure- mization process requires inventory to be having extra inventory on the shelf is ment benefits along the way. segmented based on usage and activity. incomparable to the cost that would be The first step to establishing a proper First, items are categorized as Required- incurred if those parts were unavailable foundation for inventory optimization is to Active, Excess-Active or Inactive. The during catastrophic equipment failure. assess materials data quality. Now before Required-Active category represents While there are arguments to support this you jump to the conclusion that you’ll have items, which are used frequently and must theory, the ideal solution is to find a calcu- to spend hundreds of thousands of dollars be stocked at all times. The Excess-Active lated balance, where both risk aversion on a full data cleansing and enhancement category is simply overstock of Required- and cost-effective inventory management project, let us explain. There are three levels Active items that must be minimized in are satisfied. of data cleansing available depending on an effort to reduce inventory costs. It may seem like an overwhelming how the data is being used. Those levels Finally, the Inactive category is broken challenge to tackle at first glance, but there include: Cosmetic Cleanse, Standardization down into Critical Spares, Slow-Moving, is a solution that can generate immediate Cleanse, and Full Enhancement Cleanse. and Obsolete Materials. Critical Spares

34 »EM&R October 2014 www.canadianminingjournal.com Equipment Maintenance and Repair» Feature are items which are essential for the busi- spend by commodity, spend buy supplier, Duplicate items represented approxi- ness to operate and stocking out of these and maverick purchases. Upon review of mately 9% of inventory. The item bins parts would significantly impact produc- the results, the organization can leverage were consolidated and it was determined tion, quality and safety. The Slow-Moving spend to establish preferred suppliers pro- that the overstock would be used down category represents infrequently used grams, take advantage of volume rebates, through attrition. items with long lead times or recom- and capture reduced MRO item pricing. Approximately 20% of inventory items mended spare parts which are kept to As the inventory optimization process were found to be at excess stocking levels. satisfy risk aversion. Furthermore, continues, adjusted min/max levels are These items were returned to the supplier Obsolete Materials are items that are no recommended based on the analysis of for credit, yielding cash savings of $1.1 longer used within the facility and must usage and purchase history. At the same Million. be disposed of in an effort to recover some time, a supply chain stock status report Obsolete materials were identified and type of investment dollars. can be performed to ensure that all nec- disposed of, generating $100,000 cash. Optimization and rationalization of essary MRO items are stocked at the A long-term plan was designed to the above mentioned categories require a preferred supplier’s supporting branches. address Slow-moving inventory items to very strategic approach but can return The added reassurance of part availabili- determine the value and life expectancy of significant cost savings. Typically we find ty then allows organizations to further the part and its appropriate stocking level. that Required-Active items range from reduce on-hand inventory, while satisfy- Finally, the company decided to share 25-30%, Excess Active items range from ing risk aversion. highly valued spares within the regional 10-20% and Inactive items range from Let’s look at a recent case study to illus- area, further reducing stocking levels at all 50-60% of all inventories. Within all trate the results of an inventory optimiza- four locations. Inactive inventories, we consistently find tion project. With a return of more than $1.2 that Critical Spares represent 15-20%, A multi-site manufacturing organiza- Million, the pilot project was deemed a Slow-Moving items represent 20-25%, tion with eleven locations decided to success and was later implemented at the and Obsolete items represent 15%. undertake a pilot inventory analysis proj- remaining seven sites. The opportunity for cost savings pre- ect at their four Wisconsin sites. If the The fact is every company has excess dominantly comes through the elimina- project was successful and returned inventory, regardless of how robust their tion of duplicate items and the rationaliza- enough value, then it would be extended ERP system may be or what strict main- tion of Excess-Active and Slow-Moving across the entire corporation. The cleans- tenance/purchasing processes they have inventory. There are a number of disposi- ing process was completed across all four in place. The important thing is how tion strategies that can be used to reduce sites in which item descriptions were stan- these issues are addressed and what strat- excess inventory and turn dead stock into dardized into noun-modifier format, egies are implemented to resolve them. cash. Some of those strategies include industry nomenclature was used and a As a result of Inventory Optimization using down excess inventory through corporate catalogue was created to con- and MRO Analysis, companies can attrition, returning inventory to suppliers solidate all items. uncover millions of dollars in cost sav- for cash or credit towards future purchas- Site by site, the cleansed data was first ings and improved efficiency, while es, e-commerce (eBay, Amazon, etc.), cor- sorted for duplicate identification, and establishing a solid foundation to effec- porate internal redeployment, and third- then it was segmented into categories by tively manage inventory investment and party liquidation. commodity group and analyzed based on risk moving forward. Once inventory has been accurately usage and supplier. commoditized and categorized, a compre- The results of the project were impres- *This Special Report provided by Jocelyn Facciotti, Marketing Manager for I.M.A. Ltd., of Tilsonburg, hensive spend analysis can be performed. sive and immediately attracted the Ontatio, a company that specializes in Materials The detailed spend analysis will reveal remaining seven sites. Data Cleansing and Inventory Optimization. PROFESSIONAL DIRECTORY

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EM&R October 2014» 35 Feature »Equipment Maintenance and Repair – Company Profile

Massive conveyor systems require routine service and maintenance to help ensure they perform as needed.

MONEY MAKERS machining and metal fabrication of cus- Conveyors build tomized material handling equipment. “We’ve become a full solutions com- the bottom line pany … because it’s not just the best price onveyor systems, and in particular for belting anymore,” said Cassandra Pan, the belts that help make them work, president of Fenner Dunlop Americas. Care key components to many mining “We now provide premium conveyor belt- operations and as mine owners and oper- ing, complete conveyor systems, conveyor ators know, when a system goes down, so structure and idlers, monitoring products do profits. and services, conveyor components, and In fact, few components in the makeup advanced engineered drive systems as a of mining equipment can shut down an totally integrated conveying solution.” entire operation faster than a broken con- Pan says the company begins with a veyor system and that’s why Fenner thorough analysis of a customer’s current Dunlop Americas has been working problems, performance expectations, toward one clear-cut goal over the last six operation, production and objectives and years to become a provider of all services, record those events or circumstances that allows it to custom design, manufacture, a one-stop shop for the belting industry. interrupt a normal operation. install, monitor, maintain and even operate Recognizing that miners cannot afford “Modern conveying dynamics are conveying systems and that’s why President equipment breakdowns, the company has shifting from product design and installa- Cassandra Pan says with confidence that added to its capabilities by making key tion services only to a fully integrated Fenner Dunlop Americas is well positioned acquisitions and plant expansions, invest- conveying solution, an approach that to provide the Canadian mining commu- ing about $300 million in the process that looks at all the products and services nity with innovative solutions to help keep fit in with its growth program. One of being used along with environmental products, and profits flowing. those investments involved the purchase conditions, operating parameters and of Allison Custom Fabricators, a company expected performance goals,” says Pan. Information for this article provided by Fenner that specializes in the design, engineering, The company’s full range of capabilities Dunlop Americas

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By Field Editor Marilyn Scales

n fable and song, Renard is a cunning Stornoway acquired Ashton and its value discounted at 7% of $391.5 million fox. He understands his home, its 50% interest in the Foxtrot property in and $683.5 million pre-tax. The internal nooks and crannies, where its secrets 2007. An economic assessment study was rate of return is 16.3% on an after-tax Ilie. But if you are Stornoway Diamond commissioned the next year, but it would basis and 20.3% on a pre-tax basis. The Corp., you have outsmarted the fox thanks be two more years before it was completed. payback period from the end of the pre- to thorough exploration, determination The outlook continued to look extremely production period in May 2016 is 4.8 and a vision of the future that includes promising, and Stornoway acquired the years (after-tax) and 4.7 years (pre-tax). Quebec’s first diamond mine. remaining 50% of the project. The economic indicators for an eco- Diamond exploration began on the The feasibility contract was awarded in nomic mine were aligning, and the time Foxtrot property 350km north of 2011 to SNC-Lavalin with a resource came to begin building, starting with an Chibougamau, Que., in 1996. Five years update to be provided by GeoStrat all-weather road. To reach the property, the later, partners Ashton Mining Canada and Consulting. The list of contributors province of Quebec and Stornoway teamed Soquem, had discovered and drilled five includes some of the best talent available up to build a 240km all-season road from Renard kimberlites. Results were promis- anywhere in the world – Golder Temiscamie to the mine site. That makes ing, and a conceptual study of Renard 2 3, Associates, Itasca Consulting, G Mining Renard the exception to fly-in/fly-out 4 and 65 pipes was prepared in 2004. Bulk Services, AMEC Americas, Roche Ltée, operations so common in the north. sampling followed the construction of a and RPA Inc. The road was divided into four seg- 10-t/h DMS plant at the Renard 2 kimber- As outlined in the feasibility study, the ments. The province funded the first two, lite in 2006. Renard project has a post-tax net present building approximately 140km of two-

38 | Canadian Mining Journal • October 2014 www.canadianminingjournal.com Aerial view taken at Renard site showing early excavations.

An artist’s concept of the Renard site showing the various components of the mine.

and cryogenic LNG shipments will be “This was a one shot deal,” said Manson. trucked to the mine site year-round. The “And I don’t think anyone is going to be decision also reduces potential green- able to do it again for quite a while.” house gas emissions and eliminates pro- The reason the financing came togeth- pane use at the site. er all at once rather than being raised in Diesel fuel will be used during the con- tranches, was that all the interested parties struction phase of the project, and will could see the entire proposal at once and continue to be available for the mining understand how the various aspects came and other mobile equipment when pro- together, he added. duction starts. The deal closed on July 8, 2014, and $464 million was immediately available SHOW ME THE MONEY with which to start construction. The story of how Renard was financed is Backers of the Renard project include remarkable. Orion Mine Finance, Diaquem Inc., “What we did,” Stornoway President Ressources Québec, and the Caisse de and CEO Matt Manson told Canadian dépôt et placement du Québec. Caterpillar Mining Journal, “was to take a company Financial is providing an equipment with a market capitalization of $120 mil- financing facility. lion and raise $946 million for a greenfield With the award of the EPCM contract project during tough markets.” to SNC-Lavalin and subcontractors AMEC The financing took a couple years to Americas and DRA America’s mobilization lane gravel highway. Stornoway agreed to put together but during that time every- the site officially began in August 2014. build the remaining 100km, known as thing necessary to develop the project was “Renard mine road.” It is a single-lane nailed down. The needed permits from RESERVES AND RESOURCES gravel road. Quebec were received in the fall of 2012, as Before anyone builds a mine, there must Stornoway’s portion of the road was was the mining lease. Federal authorities be something that can be economically financed by a $77-million loan from the gave their blessing in the fall of 2013. The mined. That is certainly the case at province. The mine road was completed bankable feasibility study was complete. Renard. One estimate puts the total value two months ahead of schedule and 10% The impact and benefits agreement with of diamonds recovered over the life of the under budget. The first vehicle to traverse the Cree was signed. All this work amount- project at $5.1 billion. the entire length arrived at the mine site ed to a very thorough due diligence. The probable mineral reserve of the on Sept. 3, 2013. The savings from road Putting together the money to take Renard kimberlites is 23.79 million tonnes construction were applied to the landing Renard to production was the largest ever grading 75 cpht and containing 17.95 mil- strip at the mine site. The first plane project financing package for a publicly lion ct. The property has 35.45 million arrived on Nov. 3. listed diamond company. The list of trans- indicated tonnes grading 76.4 cpht and Another major benefit of the all-sea- actions includes a $427-million common containing 27.09 million ct. The inferred son road is that it allowed Stornoway to share subscription, a $275 million dia- resource, including not only the Renard choose natural gas generators, a thriftier mond streaming agreement, $155 million pipes but also the Lynx and Hibou dykes, alternative to diesel-fired units. Seven 2.1- in two debt facilities, and $48 million cost totals 29.67 million tonnes grading 56.8 MW, gas-fired gen-sets will be installed, overrun facility. cpht and containing 16.85 million ct.

October 2014 • Canadian Mining Journal | 39 | Mining in Quebec

Unlike most others in Canada, the at surface with two pit bottoms. The ulti- tool carrier, and service excavator. Service, Renard kimberlites do not taper as they mate dimensions will be 455 x 310 metres fuel and lube, and water trucks will most get deeper. Instead, they tend to be as at the surface with a depth of 113 metres. likely be supplied by Kenworth. wide at depth as they are at the surface. There are approximately 2.04 million A second pit measuring 450 x 315 That gives the project considerable upside tonnes grading 94.0 cpht and containing metres and 61 metres deep will be estab- for the expansion of resources. 1.91 million ct of diamonds that can be lished at the Renard 65 pipe. Country Drilling at the Renard 2 kimberlite has recovered from the R2/R3 pit. rock from this pit will be used as con- already confirmed the existence of miner- Because of its small size, the R2/R3 pit struction aggregates and underground alization to at least 370 metres below the will mined in a single phase. The prepon- backfill when the surface waste rock mineable resource as currently outlined, derance of blasting will be done with stockpiles are exhausted. The kimberlite or 970 metres below surface. emulsion in 165-mm diameter holes will be used as a bed for the ore stockpile. Stornoway is planning additional bored by a single down-the-hole drill. The The kimberlite can be reclaimed and pro- exploration of the pipes and dykes expect- pattern in kimberlite will be 4.0 metres cessed at a future date. The completed ing to outline between 54.6 million and with a powder factor of 0.50 kg/t to break R65 pit will have a role to play in water 84.9 million more tonnes containing 424 tonnes/hole. In waste rock it will be management by acting as a catch basin. between 25.7 million and 47.8 million ct. 5.0 metres with a powder factor of 0.30 If the exploration program expands kg/t and break 675 tonnes/hole. Pre-split UNDERGROUND MINING resources by even the minimum esti- blasting with packed explosive will be Stornoway has chosen blasthole shrinkage mates, Renard will have a very long and practiced to stabilize bench faces and (BHS) as the preferred underground min- productive life. inter-ramp angles. ing method. There are several advantages: Blasting activities are planned for day it meets the 6,000-t/d production target; OPEN PIT MINING shift only. A heated surface explosives minimizes development needs; allows the Stornoway plans to use a combination of storage facility with a 40,000 kg capacity use of large equipment; controls dilution; open pit and underground methods to will be established. and underground mining can begin before recover kimberlite from three pipes – The production fleet for the R2/R3 pit the pit is finished. As the stopes are drawn Renard 2, Renard 3 and Renard 4. The is minimal. As planned it will include one down, waste rock backfill will be intro- initial pit will encompass the R2 and R3 Caterpillar 390D hydraulic excavator with duced by dumping it in the R2/R3 pit and pipes providing feed to the plant in 2016. a 6.0-m3 bucket and one Cat 990H wheel through three boreholes for the R4 pipe. Underground access will be through the loader with an 8.6-m3 bucket. Haulage The backbone of the mine develop- pit floor into the R2 pipe, with the R3 and will be handled by three Cat 740 articu- ment will be a ramp driven to a depth of R4 pipes accessed via underground devel- lated and four Cat 775F rigid body trucks. 610 metres around the Renard 2 pipe opment of the R2 pipe. A number of Caterpillar support using an Atlas Copco Boomer 282 two- The R2/R3 open pit, as designed by G equipment will be on site, including a boom jumbo. Access for the Renard 3 Mining Services, will result in a single pit motor grader, tracked dozer, compactor, pipe will be from the 250 level and for the

40 | Canadian Mining Journal • October 2014 www.canadianminingjournal.com Renard pipe from the 235 level. The ramp 30 metres long. These holes will be drilled the drill/mucking levels will be driven as will connect the surface with six drill lev- on a 3-metres toe and a 2.7-metres bur- well as a fresh air raise. els and three production levels. All den, for a drill factor of 10 t/m. Plans call The Renard 4 kimberlite will be the last employees, equipment and materials will for drawing down 35% of the ore through one mined, beginning in 2022. It lies in the pass through the ramp. drawpoint to accommodate the swell of vicinity of the R65 waste pit. To ensure Underground mining will begin at a broken ore above. structural integrity, a 100-metre-thick reduced rate of 550 t/d in the largest pipe, Caterpillar will supply the mucking and crown pillar will be established, leaving a Renard 2, in October 2016. The three haulage equipment – seven 5.7-m3 135-metre vertical height to be mined. One mines so far planned have a combined life Scooptrams and twelve 60-tonne AD60 production level and two drill levels will be 10 of years, into 2027. haul trucks. The LHDs will load the trucks developed for blasthole shrinkage. The R4 The mine plan calls for the R2 kimber- in nearby bays to minimize their travel orebody will also be subdivided into verti- lite pipe to be divided into three vertical distance. To reach the planned production cal panels in a manner similar to the R2 zones with mucking levels at 250, 430 and rate of 6,000 t/d, each LHD will haul 270 deposit. The bottom production level will 610 metres. Each zone is subdivided into buckets of 12 tonnes each per shift. be 280 metres below surface, the same level vertical panels – seven panels above the Mining will proceed from the top as the access drift from the R2 mine. 250 level, 10 panels between the 250 and down in the R2 pipe, beginning with the The ventilation requirement of the 430 levels, and 11 panels from the 430 panel at the northern edge of the pipe and Renard mine at full production is 400 level to the 610 level. progressing in a southerly direction. This m3/s. All levels will connect to a 6.1-metre The production drills of choice are creates a stair step configuration. Ore will diameter air intake raise located near the Cubex 6200HH in-the-hole units. They be drawn from the bottom of each panel ramp from surface to the 610 metre level. will bore 165-mm downholes with typical as backfill is placed above the muck. Fresh, heated air will be drawn across the lengths of 60 to 75 metres in the body of Eventually all panels will break through to workings and exhausted through two adja- the stope. The blastholes will have toe and the pit bottom and contain backfill above cent vertical raises 4.1 metres in diameter. burden spacings of 4.0 metres, giving a broken muck. Internal 3.0-metre diameter raises will be planned drill factor of 22 t/m. Slot raises The Renard 3 pipe is a narrow deposit excavated in the R3 and R4 pipes to aid in in each zone will be drilled with a Machine with the bottom of the indicated resources bringing fresh air to those workplaces. Roger ITH raise head. Both production at a depth of 250 metres. Mining will The main fresh air raise will also serve and development blasting will use emul- begin there in 2017 and continue through as a secondary escapeway and a conduit sion, placed by a Dux loader. 2020. The orebody will be mined from the for mine services such as electricity , mine Broken ore will be mucked through bottom up, again using blasthole shrink- water and communications. A second drawpoints at the bottom of the stope. age with drilling and production levels 3-metre diameter raise will be bored from These drawpoints are to be drilled uphole established at 30-metre intervals. Access the surface to the ramp about 30 metres using a Maclean Mine Mate BH3. The to R3 will be from R2 underground devel- below surface to allow fresh air to enter holes will be 75 mm in diameter and 25 to opment at the 250-metre level. Ramps to that as well.

October 2014 • Canadian Mining Journal | 41 | Mining in Quebec

Renard. It has the potential for very large diamonds because the size distribution of the stones. Manson said they could recover a couple stones between 50 and 200 ct as often as every two weeks (at least that what the statistics point toward). “And that’s just gravy,” he added. “The recovery of big diamonds is not reflected in our costs or feasibility.” A fleet of heavy Kimberlite is scrubbed and screened machines work to before the screen overflow is treated in level part of the site. one of two 200 t/h dense media separator (DMS) circuits. From the DMS circuits, Three sumps and pumping stations will cess line for crushing and grinding to the diamond-bearing material goes to the be established on the 250- , 430- and 610- minimize the footprint and capital recovery plant where diamonds are recov- metre levels. Engineers have designed the requirements. It will be built with a name- ered using x-ray sorting technology. lowermost level with a pumping capacity plate capacity of 6,000 t/d or 2.2 million Diamonds are then cleaned and packaged. at 1,960 m3/day. The 430 and 250 stations t/y. It is designed for expansion to 7,000 Diamonds will be shipped to Antwerp, will have larger capacities of 2,725 m3/day t/d with minimal additional cost. Belgium, for auction. Stornoway is not each. The 610 pumping station will be Run of mine ore from the Renard pit going to do any cutting or polishing itself. equipped with five pumps, and the other will be stockpiled ahead of a 1.0 by 1.25 Underflow from the screens ahead of two stations will have four pumps. All metre surface jaw crusher supplied by the DMS circuits passes over degritting pumping levels will have an equal number Westpro Machinery. The material will be screens and into a Westpro high rate of backup pumps should they be needed. reduced to <250 mm. A secondary cone thickener. Recycled process water is col- A leaky feeder communications sys- crusher will further reduce the size to <50 lected from this thickener. tem capable of transmitting both data and mm. The flowsheet has the potential for Overflow from the screens and DMS voice as well as high speed internet and adding an x-ray sorter at this point to circuits are centrifuged, and the dry pro- telephone will be installed. The conven- recovery large diamonds. cessed kimberlite is loaded into trucks for tional telephone service will be provided Tertiary crushing will be accomplished the journey to the processed kimberlite to the fuel magazine, maintenance facili- by passing the ore through high pressure containment (PKC) area. ties and refuge stations. grinding rolls (HPGR) to the final size of Stornoway considered five different < 30 mm. It is interesting to note that the sites for the PKC facility, finally choosing KIMBERLITE PROCESSING final grind size corresponds to a 200 ct a site north of the R2/R3 pit and the waste The kimberlite processing plant as octahedral diamond. rock storage area. The site has enough designed by AMEC will have a single pro- And this is another unique thing about capacity to contain all of the kimberlite

Runway and aprin taking shape.

42 | Canadian Mining Journal • October 2014 www.canadianminingjournal.com treated over the life of the mine. PK will be dewatered using centrifuges at the processing plant, trucked to the PKC facility and dry stacked. The selection of dry stacking facilitates progressive reclama- tion and helps reduce closure costs. The PKC facility includes engineered and compacted berms as well as erosion barriers. Any runoff water will be collect- ed and treated before release. It will hold A road enables all tailings from the mine, including heavy machines to potential to mine what is now inferred access the site. resources. Neither the PK or separately stored waste rock are acid generating and LOOKING FORWARD begun. With commercial production tar- have little potential to leach metals into As this issue of CMJ went to press, work at geted for the second quarter of 2017, from the environment. The design of the PKC Renard was moving quickly. The ground discovery to completion Renard was fast- reduces the potential impact on local breaking ceremony was held on July 10. tracked all the way. groundwater, allows progressive closure Mobilization is proceeding. Two tempo- Stornoway is proving to be one of the of the facility, and avoids potential impact rary construction camps have been built. brightest lights in the Canadian mining on fish habitats. Work is underway on the permanent sky. And if there are more mineable The mine closure plan consists of camp that is to be ready by the end of next kimberlites on the Foxtrot property allowing the pits to flood and revegetat- March. Creation of the dry pads for the (and no one doubts that there are), this ing the waste rock, PK tailings and the main surface facilities has started. The is the company to make them economic plant site. selection of long lead time equipment has producers. CMJ

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BORDERSWorking abroad takes more than knowing how to mine

By Carl Friesen*

44 | Canadian Mining Journal • October 2014 www.canadianminingjournal.com iven today’s difficult environ- minimize long-term liabilities attached ment for mining, companies to the property. and financial sources want to It’s important to note that both news- put their money on a “sure jacking and trend content can focus on very thing” as much as they can, and narrow topics, provided they are of interest thisG goes beyond hiring professionals to the people you might want to reach. with solid reputations for expertise in An article on a new type of paste their specific fields. thickener might be of no interest to the In many cases this often involves pub- general business market, but to a mining lishing thought-leadership content too company looking to speed up the back- that demonstrates an understanding of filling of stopes, for example, it might be the issues facing mining and the local big news indeed. people who are often impacted by a mine’s presence. CASE STUDIES This can be on topics as diverse as ore Stories are the oldest form of communi- evaluation and extraction plans, designing cation around, and that’s what a good haul roads, developing underground ven- case study is. To anyone in that specific tilation plans, preparing heap leach pads, field, it can be as gripping as a good paste plant operation and closure plans. detective novel. A case study works best if it proves a point or has lessons that can NEWSJACKING be learned from it -- and must also be on A term from the world of content mar- a topic that is relevant to the reader. For keting, “newsjacking” means taking a example, many mining companies are news event that is of significance to the looking for ways to help improve their people you want to reach, and then devel- social and economic impact on people oping content that shows your grasp of affected by their projects, so they will the issues. also be interested if you have demon- For example, let’s say you’ve heard that strated success in a project that improved there’s a new way to accurately assay rock the lives of people living in mining areas. in bulk (such as on a conveyor belt), to indicate the percentage of ore. An article BEST WAYS TO on this topic might describe the new PUBLISH YOUR IDEAS technology, indicate how it’s a significant While many business professionals have improvement on current equipment, and their own regular blog, podcast, or chan- then (and most important) give your nel on YouTube or SlideShare, it may be analysis of what will change as a result of best for you to use opportunities that are this development. already available. This means less work promoting your content, and a bigger TREND CONTENT audience for what you have to say. Similar to newsjacking, “trend” content describes a development (but the focus is ARTICLES IN MAGAZINES, AND on a slower change), that might get GUEST BLOGGING missed because it’s so gradual. If you’re in Many business publications (hint: such as a position to understand the trend, you this one) are eager for well-written, infor- can perform a valuable service by bring- mative content written by industry ing it to the attention of people who will observers who have something relevant be affected by it. to say to their readers. Many rely on For example, the trend towards driv- “expert” contributors to provide articles erless haul trucks is likely to change a that are informative, authoritative and great deal about mining, and your analy- written with their readers in mind. These sis might drill down into what this means authors typically don’t get paid for the for safety; costs, mine design, staffing article, but then they don’t pay for the and other factors. space either. A few success points: Another trend can be the rising • Don’t make it a sales pitch. All you need importance of good closure plans, to to do is provide useful information that

October 2014 • Canadian Mining Journal | 45 | Leadership

showcases your expertise, and readers publication will be interested, a bullet- ested in providing other viewpoints for can get in touch. Editor Russ Noble is not point outline, and your qualifications their readers (and also, maybe taking a interested in being part of your personal to write on this topic. break from writing) and so are often marketing program, and he will reject • Pictures help — but be sure that you willing to consider guest blogs from anything that sounds too promotional. have the rights to use the images, so it other contributors. Present your idea • Present your idea to the editor first: an may be best if you take your own pho- first to see if they’re interested. email that describes your proposed tographs to go with your articles. article, reasons why readers of this Many influential bloggers are inter- PUBLIC SPEAKING Like bloggers and editors, the organizers of professional events such as conferences and luncheons are always looking to fill their lineups with good public speakers. Being a truly amazing public speaker isn’t generally as important as is having something relevant and useful to say.

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46 | Canadian Mining Journal • October 2014 www.canadianminingjournal.com your conversations more weight, because given, articles you’ve published, info- doors and give you preference in career you’re someone with authority. The pre- graphics and other content that dis- opportunities. CMJ sentation itself is a great way to bring plays your expertise. across your personality, so that potential Carl Friesen, MBA, is Principal of Global Reach clients or employers are more likely to Demonstrating thought leadership is Communications Inc. of Mississauga ON. He is author of four books on thought leadership, most recently, think, “I think I’d enjoy working with not a fast process, and one that takes “Your Expertise Edge: How firms supporting a more sustainable future can use their thought-leaders’ that person.” years, but being seen as someone with expertise to grow.” For more on this topic, see www. subject-matter expertise can open many showyourexpertise.com. YOUR LINKEDIN PROFILE If someone’s heard you present, or read an article or blog post you’ve written, they may want to know more about you. And, their first stop will almost certainly High Performance be LinkedIn. Commercial Grade So, take a quick look at your own profile — is there enough there to impress Enterprise Networks someone that you have expertise in your field of specialty? Or is your profile the equivalent of a ghost town? A few points: • Have a Summary that’s factual, but also one that brings across your personality as engaging and good to be with. Write it in the first person, and make it a story. • Include full information on your Experience and your Education, to demonstrate what you have to offer. • Have plenty of Recommendations, which are testimonials from people who know you — and one way to build that part of your profile is to recommend other people you’ve worked with, in hopes that they’ll return the favor. • Include content — LinkedIn makes it easy for you to upload PDF versions of slide shows from presentations you’ve

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October 2014 • Canadian Mining Journal | 47 | Company Profile: Yokohama Tires

48 | Canadian Mining Journal • October 2014 www.canadianminingjournal.com ROCK& RUBBER ock and rubber are synonymous with mining because there are very few Mining tires face machines used in today’s mines that don’t rely on either tires or rubber tracks Rto keep material moving. the harshest From deep underground at the face, to down in an open pit mine beneath a clear blue sky, machines used to drill, load and haul ore to the surface face rugged of conditions conditions every day and without the support of equally rugged tires (and tracks); By Russell Noble most machines would not be able to perform. In fact, the majority of today’s mining machines would be stopped in their tracks, so to speak, and would leave mine owners and operators with production slowdowns resulting in costly delays. One company that recognizes the importance of reliable equipment and its impact on profits and losses is Yokohama Tire (Canada) Inc, and the role its high- performance tires play in many mines across Canada. Established in 1917, Yokohama Rubber has continued to expand its business scope, making its presence known in North America and today the company has

October 2014 • Canadian Mining Journal | 49 | Company Profile: Yokohama Tires

1. 2.

THE ADJACENT PHOTOS: more than 30 subsidiaries and affiliates around the world with over 1 & 2 (above) clearly show the size of the tires and equipment 19,000 employees and $7 billion (Cdn) in annual revenue. needed to handle the heavy loads found in today’s mines. In other words, the company is huge and here in Canada, 3) An underground tire (ready to be replaced) shows signs or Yokohama Tire (Canada) Ltd. has been contributing to the bottom wear thanks to harsh mine conditions. line since 1983 through the sale and distribution of tires from centres 4 & 5 (below) with new tires being installed on two different-size in Laval, Quebec, Brampton, Ontario and Langley, British Columbia. pieces of equipment. As mentioned, Yokohama has been importing and distributing tires in Canada for more than 30 years and now ranks eight in the world in new tire sales behind frontrunner Bridgestone, followed in descending order by Michelin, Goodyear, Continental, Pirelli, Sumitomo and Hankook. Like all tire manufacturers, Yokohama depends on research and development to stay competitive. Comprehensive R&D activities cover materials development, product design, testing and evaluation, while manufacturing of its various tires is handled by 22 manufacturing plants around the world. Products range from conventional automotive tires, to those designed for high-speed racing, to large and rugged tires for on and off-road trucks, to tires designed for the massive machines required to operate in mines. Ben Duyzer, a Senior OTR (Off The Road) Specialist at Yokohama Tire (Canada) Inc, in Langley, B.C., says, “Tires are one of the more widely used products found in society today and without them, much of the industrialized world would grind to a halt. “Mining, in particular, depends on tires that are almost ‘bullet proof,’ so to speak, because of the payloads and rough conditions 3. they face every day. No other tires get such a harsh beating on a day-

4. 5.

50 | Canadian Mining Journal • October 2014 www.canadianminingjournal.com W 5.

With our industry leading expertise and in-house capital, we are here to help in good times and bad. Yokohama Tire (Canada) Inc’s distribution centre in Langley, B.C. shows trailers lined up at the shipping/receiving doors and a container being Dundee Capital Markets is a full-service investment unloaded at the 65,000-square-foot facility. dealer focused on hard assets with principal businesses that include investment banking, research and institutional sales & trading. to-day basis and because of that, mine tires are expected to be stronger and perform longer.” But as Duyzer said, mining is a tough test for any tire and as all mine owners and machine operators know, sidewall tears and dundeecapitalmarkets.com straight punctures are almost inevitable on mine sites and keeping the supply chain at the ready is also a critical part of our distribution team. Duyzer says the warehouse is stocked with tires of all sizes at all DUNDEE CAPITAL MARKETS IS A REGISTERED TRADEMARK OF DUNDEE CORPORATION. times and with a regular flow of them arriving in containers from Japan on a weekly basis, supplying mines in Canada is not a problem. In fact, Duyzer is proud to say that with our dealer network across the country, tires can be delivered almost the next day to many mines in Canada. Distribution and service, says Duyzer, are critical to the tire business especially when serving customers in the mining industry who often keep their machines operating 24/7, and with different operators who treat the machines with varying degrees of care IDLERS | PULLEYS | IMPACT BEDS | ACCESSORIES and consideration. It doesn’t matter how strong we make our tires, or how people Heaviest Pulley in the Industry treat them, Mother Nature is stronger and always throws new challenges our way to come up with a product that can withstand Industry leading pulleys fabricated their shell heat and cold, water and rock, and everything else in between. from heavy schedule pipe for better our shell “We think we’re doing a pretty good job for the miners of performance and a longer life. Canada but there’s always something new on the drawing board at Large trapezoidal crown Yokohama and we’re accepting the challenge of exploring new ter- angle provides superior belt tracking and ensures CMJ ritories, just like the miners do,” says Ben Duyzer. maximum concentricity.

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October 2014 • Canadian Mining Journal | 51 In My Mine(d)

Innovation in progress for the Global Mining Industry

By Doug Morrison*

here are a great number of organizations serving the mining industry in TCanada and The Centre for Excellence in Mining Innovation (CEMI) in Sudbury is one of them. Since it was established in 2007, its mandate has been to direct and coordi- nate step-change innovation in the areas of exploration, deep mining, integrated mine engineering, environment and sus- A protective canopy is just one tainability for the metal mining industry. of the many innovative devices CEMI identifies, assesses and manages being promoted for use as a safety measure in mines. industry-focused applied research and development projects that extend from geology and engineering to the natural Northern Ontario, Quebec and Manitoba, support solution teams capable of creating sciences. It offers a single point of entry offer unparalleled opportunities to engage the tools and technologies in the next 1-3 for knowledge resources and human capi- scientists and engineers from around the years that will help bulk mining opera- tal that enhances the scope, extent and world, and with these organisations as tions below 2.5km to operate more profit- impact of innovation for the global metal partners, CEMI will become a leading ably and safely by improving operational mining industry. source of innovation to this globally vital productivity and human effectiveness. CEMI regards innovation as a three- industry. We already have a track record With project participants based in sev- phase process: research, development and of innovations and collaborative networks eral Canadian provinces, CEMI is now a implementation (R&D+I). With commer- focused on mine construction and high- Canadian leader in mining research, cialization, innovative ideas are opera- stress conditions, and with our current innovation and commercialization, and tionally integrated into best practices that focus on highly productive bulk mining from this foundation we aim to expand are socially responsible and attuned to below 2.5km, we are now are leading the Canada’s role in improving the perfor- community needs and expectations. We way with the Ultra-Deep Mining Network mance of the mining industry globally. create capacity for excellence in innova- (UDMN). We have active projects in every aspect of tion and add value to the economic devel- Acknowledging the importance of deep mining operations from mineral explora- opment of the metal mining industry by mining research, the Honourable Greg tion, mine development, production effi- collaborating with Canadian and global Rickford, Minister of Natural Resources ciency, energy consumption, human fac- mining companies, universities, govern- awarded the UDMN $15 million through tors, environmental impact and post-clo- ment researchers, consultants, and inno- the Business‐led Networks of Centres of sure land use. We have also developed a vative small and medium sized enterprises Excellence (BL‐NCE) program. This $46 comprehensive approach to mining inno- (SMEs) in the service and supply sector. million business-driven Network is sup- vation, integrating excellence from sci- Our aim is to impact key aspects of min- ported by members of the mining and oil & ence, engineering, social, medical and ing through innovation that will signifi- gas industries, and many small to medium commercial disciplines and we believe cantly improve or accelerate the cost- sized enterprises as well as industry agen- that the success of mining as a productive, effective, safe production of metals. cies, research facilities and academia. safe and environmentally responsible The Canadian hardrock metal mining The goal of the UDMN is to help the industry in the 21st Century will depend, community has the ability to be the pri- mining industry develop and adopt com- more than ever before, on such a multi- mary source of innovation for the under- mercially viable projects that lead to the disciplinary approach. CMJ ground mining industry worldwide. The deployment of innovative technologies. Doug Morrison is President of the Centre for expertise that exists in the mines of Managed through CEMI, UDMN aims to Excellence in Mining Innovations (CEMI) of Sudbury

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October 2014 • Canadian Mining Journal | 53 Unearthing Trends

Productivity challenge: Improving or transforming?

Zahid Fazal is a partner and EY’s Quebec Mining & Metals Leader. He is based in Montreal. By Zahid Fazal

he commodity boom between 2000 Making productivity gains is not as Transformation means that all systems, to late 2012 led many mining and simple as further cost-reduction efforts. processes, interfaces and interlinks are Tmetals companies to turn their atten- The length of the super cycle and pursuit well understood so informed decisions tion to production and mine development of growth led to a subversive change of the can be made. This may require significant in order to get product out as quickly as organizational DNA of many mining com- adjustments including: possible but not as economically as pos- panies. Their structures, processes, perfor- sible. Innovation also slowed during this mance measures and cultures have all • Changing mine plans time compared to other sectors. As a drifted to favour growth over productivity. • Reassessing mining methods result, both labour and capital productiv- The size of the problem is too large for • Making changes to equipment fleet ity, on both a volume and cost basis, has conventional solutions to work. Real and and configuration been declining significantly in the mining sustainable productivity gains will only • Reducing production industry for over a decade. come from broad business transformation. • Increasing or reducing automation This challenge has come to the fore- Unfortunately, many organizations see front in recent months. EY’s annual productivity as a phase after the slash- Leading companies are not thinking Business Risks Facing Mining and Metals and-burn of cost reduction and before the productivity in a conventional way. They Global Report reveals productivity as the return to growth. When the focus on think about it with a value-chain view. top risk facing the sector this year. More productivity is short term and/or tempo- They are launching initiatives that will than ever, productivity concerns are top- rary, it is unlikely that improvements will add to the long-term bottom line, instead ping the boardroom and CEO agenda as be sustainable. The quest needs to be long of just moving the problem around. The executives begin to realize that regaining term and requires a change in culture most successful companies in addressing lost productivity will be critical for long- across the organization from the board- the productivity challenge demonstrate term profitability. room to the pit. the following traits:

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54 | Canadian Mining Journal • October 2014 www.canadianminingjournal.com

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