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By N. H. Grace

"IntroductionDURING the past half century, the economy of Western Canada was largely centred on agriculture. However, the impact of World War II has led to an acceleration in the development of a variety of natural resources so that, today, Western Canada is experiencing great industrial development. Consequently, the availability •of low-cost energy assumes prime importance. In the final analysis, industrial growth and expansion are intimately linked to the energy resources.Coal ReservesHas Western Canada adequate coal reserves to meet the present accelerating demand for power in the days that lie ahead? This question must be answered before detailed consideration can be given to the probable patterns •by which various energy sources in Western Canada may be expected to meet the expanding demand. Figure 1 indicates the extent and distribution of the Canadian coal reserves, the data having been prepared by Dr. B. R. MacKay for the Royal Commission on Coal in 1946 (1). The amount of readily recoverable coal is listed as one-half the quantities shown on the chart. It is interesting-to note that upwards of 90 per cent •of the Canadian coal reserves .are located in the three most westerly Canadian provinces. It has been estimated that the coal reserves, at the present rate of mining, would be adequate for about 3,000 years. Consequently, it may be concluded that the coal •reserves in Western Canada •are indeed adequate to meet tremendous energy demands for many centuries. When the oil and natural gas have been exhausted, the great coal reserves will still be available."

Jan 1, 1953

By J. Ji

Oxygen requirement during acidic pressure oxidation of sulphide concentrates can he as high as 800 kg/(m3.h) in the first compartment of an autoclave when the total oxidation residence time is shortened to 30 minutes. To achieve such a high oxygen transfer rate while maintaining satisfactory oxygen utilization, a pilot plant campaign was launched at the Placer Dome Research Centre in 1998 to measure the oxygen mass transfer coefficient in a 5 m3 pressure vessel at a total pressure close to 500 psig with a 30 HP gassing agitator. Maximum oxygen flowrate to the pressure vessel was designed at 3 600 kg/h. In this paper, a great deal of information is provided on the gassing agitator, pressure vessel. measurement procedure and results. Without oxygen sparging, the oxygen mass transfer coefficient is 2 600 h-1 with a mixing power input of 5.0 kW/m3 in solution. With oxygen sparging, the oxygen mass transfer coefficient increases to 3 500 h-1 with a mixing power input of 4.0 kW/m3 in solution.

Jan 1, 2004

By C. W. Davis

AN inclined shaft is usually more difficult to sink than a vertical shaft, yet it is often chosen because of the subsequent saving in cross-cuts required to reach an inclined ore body. This paper briefly discusses the factors which led to the choice of an incline and then describes the operations involved in the preparatory work and in the sinking. These operations included a programme of mining out the underground facilities and installing the structures required for a hoist-room, cable-raise, waste-pass, ore pass, two sets of skip dumps, and a collar station equipped with counterbalanced drop-rails. The shaft was sunk 1,000 feet and four stations were cut, each with loading pockets. As the sinking progressed, the rock changed from hard porphyries and dense cherts to blocky limestones and earthy rubble. These conditions called for a change in methods and it is to the red it of the shaft-sinking crew that they overcame the new difficulties as the shaft progressed, while maintaining a satisfactory monthly advance. The section mined out was nine feet six inches by seventeen feet overall. This gave room for three compartments: two skip compartments four feet three inches by five feet nine inches inside the timber, to handle two-ton skips, and a manway three feet six inches by five feet nine inches. The sinking began on December 16th, 1941, and was completed on February 15th, 1943.

Jan 1, 1945

By Eugene Barsky

"At present, theoretical concepts of gravitational separation processes are mainly limited by the study of the interaction between a flow and a solitary particle. Then the main conclusions of this analysis are applied to a mass process. However, this analysis is absolutely insufficient, because some elementary phenomena such as the ingress of coarse particles into the fine product output and vice versa cannot be interpreted from its standpoint. It is also impossible to predict the results of the classification of a material with a specific granulometric composition on a specific apparatus on its basis.In the present paper, an extended model of the process is suggested. The model is based on the behavior of all the particles of a specific narrow size class, and not on that of an individual particle. Similarity criteria of the process, which were empirically derived previously, are obtained from the analysis of this model.INTRODUCTIONIn case of gravitational separation, a part of solid phase moves, as a rule, vertically upwards with the flow, while another part settles against the flow. This flow is extremely complicated and chaotic due to various random factors. Among these factors are mass interactions of particles with each other and with the apparatus walls, non-uniform character of concentration and velocity fields, turbulent vortices and local fluctuations, real particles shape difference from spherical one, etc.Particles rotation results in a transverse force (Magnus' effect). At the motion of a non-rotating particle in a non-uniform velocity field, a transverse force also arises (Saffman's effect).A great number of publications have been devoted to the account for all these factors in two-phase flows in recent decades. Very complicated models have been developed, but the problem has not been completely solved as yet [1, 3].At the same time, simplified models of the behavior of a solitary particle in a flow are being developed. Despite their schematic nature, such models often prove to be useful for establishing general laws of the process and its similarity criteria [1]."

Jan 1, 2016

By Manqiu Xu, Joe Holmes, Peter Wells, Peter Langlois, Germain Labonté, Jim Barrett

"The flowsheet for the Voisey’s Bay mill had to meet the challenge of processing an ore containing high pentlandite and chalcopyrite values in a largely pyrrhotite/troilite matrix. In the 1994-97 period, circuit development focused on making a high-grade copper concentrate and a relatively low-grade nickel concentrate. However, in 1998 a circuit with copper concentrate, high-grade nickel concentrate and a Ni/Cu middlings concentrate was specified. Following a three year project delay, work resumed on the flowsheet in 2001, and the target for the overall grade of the nickel concentrate was raised from 14% to 20% nickel. To achieve this target triethylamine tetramine (TETA) and sulfite pyrrhotite depressants were used in an all lime circuit. It later became evident that, with appropriate selection of collector and adjustment of the circuit by the addition of a scavenger on the scavenger cleaner, it would be possible to approach the grade of concentrate required without the use of pyrrhotite depressants. The recycle of water and the contained thiosalts was also proven to be instrumental in raising the grade.Construction and commissioning of the mill were fast-tracked with start-up of the mill in September 2005 some six months ahead of the original schedule. Ramp-up of both throughput and metallurgy was faster than any other recent nickel installations with tonnage being limited mainly by concentrate dewatering due to the higher than initially planned ore grades.INTRODUCTIONNickel was discovered in the vicinity of Voisey’s Bay by Chislett and Verbiski working for Diamond Field Resources in 1993 and the Ovoid deposit was delineated in the winter of 1994/95. By the end of 1995 the Ovoid had been well explored and at that time was thought to have a reserve of at least 30 million tonnes with an average grade of 2.83% Ni and 2.0% Cu. Drilling to the east of the Ovoid had indicated the presence of significant mineralization. In June of 1995, Inco Limited bought a 25% share in the Voisey’s Bay Nickel Company (VBNC) which was a subsidiary holding company set up by Diamond Fields. Inco also bought 8% of Diamond Fields and negotiated the right to sell all the nickel produced from VBNC for twenty years as part of this agreement. In April 1996, Inco bought the 75% of VBNC shares that it did not own."

Jan 1, 2007

By J. W. Craig

CHROME ore, which is used in Canada in the production of ferro-alloys, in a variety of refractories, and indirectly in many chemical industries, is both commercially important and scientifically interesting. The sight of chromium metal is familiar to all of us in the home, the office, the automobile. Chromium is synonymous with armaments: it is understood to be one of several essential metals in tanks, which played an important role in the defeat of France in the spring of 1940. Chromium, in other forms, comes into our daily lives by way of paint and leather, of the familiar green ginger-ale and beer bottles, and more indirectly in every pound of steel produced in the .Dominion. Necessary to our civilization in peace and war, the ores of chromium occur in many corners of the earth. This paper attempts to describe the chemical constitution of chrome ores, their world distribution, and the various chrome products and their industrial applications in Canada.

Jan 1, 1940

By Tony Lipiec, Greg Gosson

"When it comes to new mines being developed, there is a general industry consensus that most low-hanging fruit has been picked. Many projects currently in the mine development pipeline have been around for decades, but were held back because of technical challenges. Future development of these deposits will likely require access to the public capital markets, and in Canada that means providing scientific and technical disclosure on these deposits in compliance with NI 43-101. As many of these “challenged” projects have metallurgical issues, the companies that own the projects need to ensure their metallurgical Qualified Persons provide transparent disclosure regarding proposed solutions to those issues.This paper provides an overview of the disclosure requirements under NI 43-101 that are pertinent to metallurgists, and other Qualified Persons who prepare technical disclosure regarding the metallurgical characteristics of a mineral project. It lists the triggers for a technical report under NI 43-101 and Canadian stock exchange policies, and identifies the sections of the report that should involve input from a metallurgist or process engineer. It briefly outlines new civil liabilities under Canadian securities laws that increase the possible consequences for not complying with the technical disclosure standards.These materials are provided for general information purposes only and do not constitute legal advice. Readers are advised to seek specific legal advice from their own legal counsel in relation to any decision or course of action contemplated."

Jan 1, 2003

By J. E. Dutrizac, J. B. Sunstrum

"Lead was among the first metals known to man, and there are indications that lead was produced by the reductive smelting of galena in the mountains surrounding the Black Sea as early as 3000 B. C .(1). The early metallurgists soon discovered that silver could be recovered from lead bullion by cupellation techniques, and that the litharge product of the cupellation process could be reduced to give silver-free lead metal. By the Graeco-Roman era, lead-silver ores were being extensively exploited for both their silver and lead contents. Although silver was always of prime concern, a number of industrial uses existed for lead that included piping and sheeting. Subsequently, lead metallurgical practice developed steadily in different parts of the world, and was a relatively mature technology by the time of the European colonization of North America. In the United States, lead was produced on a small scale as early as 1720, and by 1800, the extensive Pb-Zn deposits of Missouri-Kansas and the upper Mississippi Valley were being developed(2). Many of the early American lead ores were low in silver, and seemed to have been worked primarily for their lead contents. Major uses of lead at the time included bullets, pipe and sheeting. During the period 1860-1890, the silver-rich galena ores of the western United States were exploited, and a number of lead smelters were operated. Although all the smelters produced lead metal, the recuperation of the associated silver and gold values was generally of prime concern. In Canada, lead deposits are abundant, and galenarich outcrops frequently attracted the attention of the early explorers and prospectors. In fact, the first record of a Canadian ore deposit seems to have been the observation of an argentiferous galena vein near Lake Temiscamingue in 17 41(3). The presence of silver-bearing lead deposits naturally attracted the attention of the mining community, and many outcrops were worked throughout the country. Because of the problems associated with transporting lead concentrates to existing American or overseas smelters, attention soon shifted to the establishment of local lead smelting facilities. The purpose of this article is to examine those early smelting efforts and to try to identify the first ""successful"" Canadian lead smelter."

Jan 1, 1999

By B. Chareyre, H. Pourpak, L. Scholtès, E. Papachristos

"Numerical methods used to study hydraulic fracturing in low permeability rock masses need to take into account the interaction between the progressive failure mechanism of the intact rock matrix and the pre-existing natural fractures. A fully coupled hydro-mechanical 3D discrete elements model dealing with such interaction is presented here. The ultimate objective is to grasp the role of the rock-matrix failure on the propagation of the main fluid driven fracture under different stress fields and pre-existing fracture orientations. The proposed method provides the spatiotemporal distribution of the induced crack events which can be tracked during the simulations, making possible the identification of the local mechanisms leading to macro-failure in the rock matrix or reactivation of the discontinuity planes. Fluid flow inside a fracture, pressurized crack and hydro-fracking experimental tests were simulated as part of the validation process of the model and, are presented in this paper.INTRODUCTIONWith the expansion of shale gas and geothermal reservoirs exploitation, the technique of Hydraulic Fracturing (HF) has been widely used over the past years (McClure, 2012; Britt, 2012). Despite recent advances in micro-seismicity analysis or numerical modeling (Nagel et al., 2013), the way progressive failure of rocks affects the fluid flow depending on the in situ stress conditions or the rock heterogeneities is not fully controlled yet (Zoback, 2010).In this work we focused on setting up a three-dimensional discrete elements model to study fluid driven fractures propagation. The intact rock is modeled by a discrete element method (DEM) able to reproduce fracture initiation and propagation (Scholtès and Donzé, 2013, Garcia et al., 2013). The pre-existing fractures are explicitly modeled and can be individually defined or be part of a discrete fracture network (DFN) (Harthong et al., 2012). Their mechanical response is fully coupled with the fluid within a HM-DEM framework. The fluid flow and it’s interaction with the intact matrix and the pre-existing discontinuities is modeled through a Pore-scale Finite Volume (PFV) scheme specially enhanced for fractured rock modeling (Chareyre et al., 2012, Catalano et al., 2014) ."

Jan 1, 2015

By R. Siy, O. Neiman, B. Hilscher

"A full-scale prototype of “Jameson Downcomer” technology has been installed and tested on a Tailings Oil Recovery (TOR) vessel in Syncrude’s Mildred Lake extraction plant. Jameson Downcomers are a type of mineral flotation equipment used in the coal industry that Syncrude has extended to the recovery of secondary bitumen in the oil sand extraction process. The TOR vessels are currently being operated as single-gravity separation vessels, in series with the Primary Separation Vessels (PSV’s). We have developed a model to differentiate between “floating” and “non-floating” bitumen in the PSV’s, and then applied it to verify that the current TOR performance only captures the “floating” bitumen by simple separation. The existence of “non-floating” bitumen provides an opportunity for recovery enhancement by means of the Jameson Downcomers. To achieve bitumen recovery enhancement, middlings slurry is withdrawn from the TOR vessel, and passed through a number of parallel Jameson downcomers, within which the slurry is accelerated to a high-velocity free jet, and impinged upon the slurry surface inside the downcomer, in the presence of air. The aerated slurry is returned to the middlings zone inside the TOR, resulting in an incremental recovery improvement of bitumen in the TOR. The operation of the downcomers is thought to produce suitably small air bubbles for the flotation of bitumen, either by fluid shearing during the slurry jet impingement, and/or by micro-bubble nucleation. This full-scale prototype design has met or exceeded the recovery expectations of the original Research piloting, recovering at least 40% of the non-floating bitumen. In Syncrude Extraction, this provides high business value by a separation efficiency gain achieved with modest expenditure. As well, the system has demonstrated excellent operability and maintainability.INTRODUCTION Syncrude Overview Syncrude Canada Ltd. is one of the largest producers of crude oil from oil sands. Our crude oil production facility has the capacity to produce over 15% of Canada's total oil requirements. To do this, we surface mine oil sand, extract the raw oil known as bitumen from the sand using water-based processes, and upgrade that bitumen into sweet light crude oil by fluid coking, hydro processing, hydro treating and reblending. Our final product, Syncrude Crude Oil (SCO), is sent by pipeline to three Edmonton area refineries and to pipeline terminals which ship it to other refineries in Canada and the United States. The Syncrude operation is comprised of four major technology areas: Mining, Extraction, Upgrading and Utilities. As well, Syncrude invests more than $40 million annually in science and technology, and is among the top 50 companies in Canada for Research and Development (R&D) investment. Syncrude holds 21 active Canadian and U.S. patents."

Jan 1, 2012

By Donald F. MacDonald

WE are living in a mineral and technological civilization. The Encyclopedia Britannica defines civilization as follows: "It is the final test of a progressive civilization that a given effort shall produce a larger modicum of average individual comfort, and the pursuit of this ideal has been from first to last the impelling force which drives civilization onward". This "individual comfort" demands labour-saving machines and devices such as motor cars, radios, and thousands of other inventions, most of which require minerals and metals in vast quantity for their manufacture. In fact, more minerals and fuels have been used in the last third of a century than in all previous world history. Since 1800, the world's production of metals has increased more than a hundred fold (1). Scientific discovery is now advancing on a wide front, thanks to the research work that is being carried on in progressive countries. The world's work is now being done with very much less human drudgery than in the past. We do not have to toil for our living as our ancestors did, even if we follow their occupations. The average man has had many years added to his life-span, but, apparently, little to his spiritual stature and less to his common sense.

Jan 1, 1939

By B. S. W. Buffam

"The property of Moneta Porcupine Mines, Limited, consists of a group of eight claims in Tisdale township, Ontario. It includes part of the townsite of the town of Timmins, and adjoins the west boundaries of the Hollin_ger Consolidated and Mace properties. The Moneta property was first staked in 1909, about a year after the first discovery of gold in the Porcupine camp. In 1910 the Moneta Company was incorporated and some preliminary exploratory work performed by Nova Scotia Mines of Cobalt. In 1912 English interests advanced $90,000 for diamond drilling and underground work. One drill hole gave high assays, but apparently the records were poorly kept or the cores were interchanged. As a consequence, when underground exploration was undertaken in 1923 it was directed south rather than west and no ore was found . In 1924 about 5,000 feet of diamond drilling was done in the southern part of the property, but without intersecting ore.In 1931 W. E. Segsworth assumed the direction of the property. Diamond drilling commenced on August 18, 1936. The first hole intersected 9.9 feet of ore averaging 1.23 oz. gold a ton. Underground work was started early in 1937. A mill was erected in the autumn and the first gold brick was poured January 29, 1938.The Moneta mill began operation on January 2, 1938, and the following table gives a summary of the production to June 30, 1943, when the mill was closed."

Jan 1, 1954

By Harold S. King

TWO summers ago I had the privilege of visiting No. 18 colliery at Glace Bay. Underground, we travelled along the haulage-way behind a powerful electric locomotive. The motor in this locomotive began to smoke badly and a carbon tetrachloride type of extinguisher was used several times during the trip. At the time, I noted a strong odour of phosgene. On my return to Sydney, I spoke to Mr. Harold Gordon, Assistant to the General Manager of the Dominion Steel and Coal Corporation, and warned him of the danger of using this type of fire extinguisher in confined spaces, since it is a well known chemical fact that phosgene, a dangerously toxic gas, is formed by the decomposition of carbon tetrachloride. This danger does not seem to be widely recognized, so it seems advisable that a more general warning be published. Attention was first drawn to the danger by the death of two men in the United States Navy Department subsequent to breathing fumes from carbon tetrachloride used in a fire, and when an employee of the Bureau of Mines also was overcome while fighting a fire with carbon tetrachloride liquid. These accidents led to an investigation of the decomposition products of carbon tetrachloride by a group of workers in the Research Laboratory of the Pittsburgh Experimental Station, U.S. Bureau of Mines, the results of which were published in the October, 1920, number of the Journal of the .Franklin Institute (1). Their experiments were conducted by two methods. The first consisted in applying the liquids to actual fires and -to hot metal in a closed room of 1,000 feet capacity, where the gaseous products, mixed with air, could be retained and analyzed. The second method was to pass the vapour:s in air through heated tubes of iron or quartz, where the humidity of the air and the temperature could be controlled.

Jan 1, 1939

By Ryan W. Ulansky

This paper presents the conceptual design of a magnetically-levitated skip for use in an underground mine. A skip is used to move rock from an underground mine to its surface processing facility. Conventionally the skip is raised and lowered by cables, similar to an elevator. In a magnetically-levitated skip, the cable is replaced with a linear induction or synchronous motor to provide propulsion and levitation. Removal of the cables in a magnetically-levitated skip provides many advantages over a conventional system including the ability: to negotiate corners, to travel vertically in the shaft as well as horizontally to the mining face, and to move a very large volume of material using multiple skips in a small shaft. A magnetically-levitated skip is a safer, more environmentally-friendly, productive alternative to conventional skipping. It has the further advantage to decrease haulage distances for underground vehicles.

May 1, 2002

By B Lumsden, B Lacouture

"Red Dog is one of the largest zinc mines in the world both in terms of reserves and annual production. In 2013, Red Dog produced 551,300 mt of contained zinc and 96,700 mt of contained lead. The mine, which is located in Northwest Alaska, is a partnership between Teck Alaska Incorporated, the operator of the mine and NANA Regional Corporation Inc, the local land owner. The Aqqaluk deposit, which is the current source of ore, has an average grade of 15.8% Zn, 4.1% Pb and 73 g/t Ag with the main minerals being sphalerite, galena, pyrite, barite and quartz. Surveys of the zinc flotation circuit at Red Dog identified that a substantial amount of fully liberated, sub 20 micron sphalerite particles were being lost to final tailings. As a means of improving fine sphalerite recovery, a four month plant trial of magnetic conditioning was conducted in the zinc retreat circuit. Magnetic conditioning technology has already been commissioned in several concentrators around the world to agglomerate fine paramagnetic minerals, increasing their probability of bubble collision and recovery in a flotation cell. The results of the four month plant trial at Red Dog showed that at a high level of confidence, a 1% increase in zinc recovery or zinc recovery and zinc concentrate grade combined was achieved with magnetic conditioning. The resulting economic benefit, which is also at a high level of confidence, is significant to Red Dog and therefore, magnetic conditioning has been permanently incorporated into the Red Dog zinc flotation circuit.IntroductionRed Dog is the largest zinc mine in North America and represents approximately 29% of North American zinc concentrate production. The mine is located in northwest Alaska, approximately 100 miles north of the Arctic Circle and 50 miles inland from the Chukchi Sea. The remote location makes the mine accessible only by air or seasonally by ocean-going barges. Red Dog is a partnership between NANA Regional Corporation Inc, the land owner and Teck Alaska Incorporated, the operator of the mine."

Jan 1, 2016

By J. E. Hawley

"The zinc-lead deposit of the Lake Geneva Mining Company is on lot 7, con. VI, Hess township, Sudbury district, Ontario, about 10 miles northwest of the northern rim of the Sudbury Basin. Though a relatively small deposit, it shows some rather interesting relations to cross-cutting, pre-ore, quartz diabase dykes, which merit description.The deposit was discovered in October 1924 by J. H. Collins beneath iron-stained drift and oxidized sulphides. This proved to be the northwestern extremity of the orebody, the remainder of which extends southeast below swampy ground. Exploration began in 1927. In 1928 a vertical shaft was sunk to 250 feet and a level established at 235 feet. Later the shaft was deepened to 400 feet and new levels opened at 315 and 375 feet. In 1943 an inclined winze was sunk below the vein from the 315-foot level to a vertical depth of 640 feet, and two additional levels were opened at 525 and 615 feet respectively.The geology of the area has been described by T. T. Quirke (1), F. F. Osborne (2), F. J. Alcock (3), and Ralph Tuck (4). Private reports have also been made by Carl Tolman, J. E. Gill, and K. W. Fritzsche. Tuck's paper, covering the work completed to 1930, gives a detailed account of the character of the ore and enclosing rocks.Up to May 1944, when the property was closed, all ore above the 375-foot level and a small tonnage from below this elevation had been removed. Ore mined from 1941 to 1944 yielded the following:"

Jan 1, 1954

By Jorge Amaya

A critical aspect of long-term open-pit mine planning consists in computing a production schedule based upon a block sequencing strategy. Such a schedule should specify when and if blocks should be extracted in such a way as to maximize NPV, while satisfying wall-slope and production capacity constraints. It is well known that this problem can be modeled with integer programming (IP). However, integer programming is not used in practice because the size of typical block models makes such problems intractable to standard IP solvers. In this article we describe a scalable IP-based methodology for solving very large (millions of blocks) instances of this problem. We show that embedding standard IP technologies in a local-search based algorithm we are able to obtain near-optimal solutions to large problems in reasonable time. This methodology has been tested in several mine wide block models.

Oct 1, 2009

By Jorge Amaya

A critical aspect of long-term open-pit mine planning consists in computing a production schedule based upon a block sequencing strategy. Such a schedule should specify when and if blocks should be extracted in such a way as to maximize NPV, while satisfying wall-slope and production capacity constraints. It is well known that this problem can be modeled with integer programming (IP). However, integer programming is not used in practice because the size of typical block models makes such problems intractable to standard IP solvers. In this article we describe a scalable IP-based methodology for solving very large (millions of blocks) instances of this problem. We show that embedding standard IP technologies in a local-search based algorithm we are able to obtain near-optimal solutions to large problems in reasonable time. This methodology has been tested in several mine wide block models.

Oct 1, 2009

Overview ?G-9 Discovery Hole 420 drilled May 2005 ?14.16% Zn, 1.76% Cu ?Greenfield discovery built into the G-9 Mine in under 4 years. ?Utilized a unique ?Parallel Track? approach to fast-track mine development. ?Raised over $200million in financing without a Feasibility Study. ?Mine built for $149.7 million, only 20% over PEA. ?Commercial Production declared April 1, 2009. ?G-9 Mine has now completed the first year of commercial production on April 1, 2010. ?Initial cash costs per pound of zinc US$0.39/lb -US$0.45/lb range. ?Mill operating at over1,900 tpd in March 2010, well above design capacity (1,500tpd) only one year after starting commercial production. ?Balance Sheet -$167 million assets, $24 million long-term debt, $22 million cash. ?Restarted Exploration ?excellent initial results. ?Strategically positioning Farallon to grow to a mid-tier mining company.

May 1, 2010

By Dianne M. Lapierre

Mining firms in Canada are increasingly incorporating the social and environmental interests of their stakeholders into their projects in an effort to become more sustainable. Such initiatives have included negotiating Impact and Benefit Agreements (IBAs) directly with would-be impacted, often aboriginal, communities near resource developments in the Canadian north. Why does a mining firm take on this extra time-and cost-intensive initiative when governments and regulatory measures are in place to address social and environmental issues? Past research has paid little attention to the corporate rationales for IBAs. Based on document review and interviews with mining executives, this study investigates the rationales of mining firms that ?over-comply? with legislative requirements by negotiating IBAs or similar types of agreements with communities. The results indicate that mining firms increasingly recognize IBAs as an intrinsic part of the permitting process. When queried, executives regularly identified the negotiation of agreements as ?the right thing to do?. While this response could be read in ethical terms, a commercial rationale is also clearly present. By building strong relationships with nearby communities, addressing community concerns, and directing benefits to local people, all of which are explicitly achieved with an IBA, mining firms are maintaining their long-term financial viability, thus their sustainability, within an evolving industry.

May 1, 2008