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Celebrating 20 years: 1996-2016 page Q&A: Olson retiring after 12 3 years of off-the-radar service Week of December 11, 2016 • $2.50 A weekly oil & gas newspaper based in Anchorage, Alaska Vol. 21, No. 50 • www.PetroleumNews.com l ANALYSIS s This week’s Mining New Trump on Alaska? page “Exploration Company of the Year” Unknowns on oil, state, are big with focus on cabinet, industrial policy 11 honor goes to Kennady Diamonds Palin’s name may be crossed out, www.MiningNewsNorth.com The weekly mining newspaper for Alaska and Canada's North Week of December 11, 2016 By TIM BRADNER l M INE SA F E T Y however, after the maverick former NEWS NUGGETS For Petroleum News Compiled by Shane Lasley Dam lessons learned Alaska governor unloaded on Trump . C IN After Golder review, ICMM binds members to more stringent TSF management S E over business cronyism in appointing C R U By SHANE LASLEY O S E Mining News “The shortcoming lies not in the state of R E hat effects will Donald Trump’s N knowledge, but rather in the efficacy with Wall Street high-ups to cabinet positions. O E toring the rock leftover after the desired minerals which that knowledge is applied.” IT H P are recovered is one of the most fundamental parts A –Golder Associates R S election as president have on G of mining. Typically stored behind massive earthen Another name floated, at least in embankments, these tailings also pose a threat to need to be flexible enough to be tailored to the unique W the environment, if not properly man- human life and circumstances of an individual mine but still be aged. Committed to sustainable mining, the accountable to higher level guidance. policies affecting Alaska’s oil gas indus- Alaska newspapers, is local billionaire International Council on Mining and Metals has adopted new tailings dam management measures that Six key elements its 23 member companies must abide by and hopes The graphite drilled at the aptly named Graphite Creek project in In response to the Golder report, the top executives try? For starters, don’t expect a lot to Robert Gillam, known best for being an western Alaska has a number of distinguishing features that non-member mining companies adopt similar proce- make it particularly suitable for a number of technology applica- dures. of all 23 ICMM member companies endorsed a posi- tions, including the anode material for lithium-ion batteries. ICMM decided to take action following the high- tion statement “that commits members to minimize happen soon. profile tailings dam failures at Mount Polley, a cop- the risk of catastrophic failures of tailings dams by arch-foe of Pebble mine development. Graphite Creek milestone nears per-gold mine in British Columbia operated by adopting six key elements of management and gover- Imperial Metals, and Samarco, an iron mine in Brazil nance.” Graphite One Resources Inc. Dec. 7 reported that it is “I am delighted that as a result of the review, CEOs Energy, public lands and the Arctic nearing the completion of a preliminary economic assess- operated under a joint venture between BHP Billiton Whether Trump will warm to a fellow and Vale. of the world’s 23 leading mining companies commit- ment for its Graphite Creek project near Nome, Alaska. ted to a new ICMM framework on how to further Raising more than C$2.8 million, the company has achieved While the downstream effects of the Mount Polley DONALD TRUMP failure in 2014 were limited due to its remote location enhance the safe management of tailings dams,” said aren’t on the front burner for the new a number of major milestones in 2016. These milestones van Zyl. billionaire for the job is unknown. were reached during a comprehensive product development upstream of a large lake that helped absorb the impact, the Samarco disaster in 2015 was upstream of three These six key elements of the ICMM position program managed by TRU Group Inc., a technology metals statement are: consultant with expertise along the entire graphite-graphene towns and killed 19 people, including 14 mine president-elect, who is preoccupied right employees. •Accountabilities, responsibilities and associated Having money hasn’t hurt his other appointees. supply chain. This program produced purified graphite from competencies are defined to support appropriate iden- Graphite Creek averaging 99.98 percent graphitic carbon. “ICMM and its members are committed to drive safety and environmental improvements in the indus- tification and management of tailings storage facility now with making cabinet picks, industrial policy When TRU Group first began examining Graphite Creek risks. material late in 2014, its technicians recognized distinguish- try,” said ICMM CEO Tom Butler. “After the tragic failure of the Samarco tailings dam, we had to deter- •The financial and human resources needed to sup- ing features they described as spheroidal, thin, aggregate and port continued tailings storage facility management expanded. The graphite specializing consultant postulated mine how we could best help to minimize the risk of and dealing with China. the recurrence of such a catastrophic event.” and governance are maintained throughout a facility’s Unknown on resources that these distinctive characteristics could lend to different life cycle. hese specialized applications with minimal processing. T Golder report •Risk management associated with tailings storage unique and naturally occurring properties have prompted facilities includes risk identification, an appropriate Who Trump chooses as secretary of the Interior To find out what can be done to prevent another Graphite One to apply for the trademark, STAX, an acronym control regime and the verification of control perform- tragic tailing dam failure, ICMM pulled together a What the new president-elect will do, and what to describe Graphite Creek graphite. Further testing found ance. panel of renowned tailings specialists and experts that more than 74 percent of the STAX flake graphite could •Risks associated with potential changes are from within it membership to review tailings manage- is important, and there haven’t been a lot of names be turned into spherical graphite without milling. This is a assessed, controlled and communicated to avoid inad- ment practices across the breadth of the council’s 23 monumental achievement considering that only about 40 vertently compromising tailings storage facility page 20 percent of the best-performing flake graphite found in any mining companies. see ANALYSIS integrity. The review panel hired Golder Associates, a trust- tossed out since Sarah Palin’s was floated shortly other known deposit can be converted to spherical graphite, •Processes are in place to recognize and respond to ed consulting and design company with more than 50 even using high-end equipment. In later phases of testing impending failure of tailings storage facilities and mit- years of experience, to dig further into this problem. completed this year, TRU Group measured the performance igate the potential impacts arising from a potentially While Golder, as well as other investigations, iden- after the election. of the spheroidized graphite produced from STAX material catastrophic failure. tified the structural issues that ultimately led to the in coin cells typically used in watches and similar devices. •Internal and external review and assurance dam failures at Samarco and Mount Polley, the con- This testing confirmed high performance, repeatability and processes are in place so that controls for tailings stor- sulting firm said modern engineering, design and con- stability of the spherical graphite produced from the western age facility risks can be comprehensively assessed struction practices are adequate to prevent such tail- Alaska deposit – all indicators of high-quality graphite for and continually improved. ings impoundment failures. lithium-ion batteries. Graphite One and Tru Group are work- Under each of these broad elements are more spe- “The shortcoming lies not in the state of knowl- l ing on the production of exploratory grade samples of coat- cific criteria for which the ICMM member companies EXPLORATION & PRODUCTION edge, but rather in the efficacy with which that knowl- ed, spherical graphite for testing by potential end-users. are bound. "Our program indicated the unique characteristics of our edge is applied,” Golder wrote in its report published STAX natural flake graphite, which more than met our on Dec. 5. “Therefore, efforts moving forward should Hope adopted by non-members expectations for performance on the key metrics for spheri- focus on improved implementation and verification of ICMM and Golder hope the lessons learned from cal graphite,” said Graphite One CEO Anthony Huston. controls, rather than restatement of them.” this review result more stringent tailings management "Our goal for Graphite One is to become a reliable producer The consulting firm concluded that mining compa- across the wider mining community. of high-quality graphite for the rapidly evolving energy and nies and associations need to implement more robust “We were determined to take action at the global high-tech sectors.” Graphite One said a preliminary econom- governance and assurances to ensure that best prac- level and all of our member companies have adopted ic assessment for the Graphite Creek project, a milestone tices are implemented at each and every operation. this new binding agreement,” said ICMM CEO originally slated for the end of 2016, is now targeted for “The review did not cover how or why the Butler. “We hope that non-member companies will completion by the end of January 2017. Samarco tailings dam failed, but takes lessons from the tragic event as well as from other tailing dam fail- also consider adopting this framework in order to help BlueCrest drilling ahead Hecla, MSHA salute our miners ures,” explained Dirk van Zyl, a member of the enhance the whole industry’s performance.” ICMM expert panel.