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By Alim Ullah

Danieli entered into the Direct Reduction (DR) field in order to offer its clients complete turnkey facilities for steelmaking?from processing of raw materials through finished products. The Danarex® Process produces a passivated product, called the Supermetallic (SPM), without hot-briquetting. One of the main features of the Danarex® Process is its ability to produce approximately 50% of the Direct Reduced Iron (DRI) through reduction gas generated in a reformer and another 50% through recycling preheated furnace exit gas. Some other distinguishing features are: separation of carburising and cooling zones and the use of double bustle for better distribution of gas inside the shaft furnace. A pilot plant was set up at Hazen Research, Inc., Golden, CO in order to show that the integrated process works as expected and to obtain process data. The SPM obtained was of a very high quality, evidenced by metallization levels of 92% to 98%. The carbon content could be controlled between 1.5% to 4.0% by varying the operating conditions and approximately 75% of this carbon was present as Fe3C. The product was tested for inertness by Chilworth Technology, England, using UN standard tests and was found to be safe for outdoor storage and transportation.

May 1, 2003

Overview n Why we audited the IRS n How we did it n What we discovered n What we learned n Where we are going next The unbroken chain of safety The Internal Responsibility System (IRS) The network of roles and relationships in a workplace, through which everyone works with mutual commitment to reduce or eliminate hazards.

May 1, 2003

By Greg Baiden

Telerobotics focused on mining is currently being introduced into production systems around the world. Mining companies in Canada, Sweden, South Africa and Australia have tended to lead the international charge to this form of technology for mining. While this introduction is taking place a few basic questions have yet to be answered. How many machines can a single operator run? How many types of machines can a single operator run? A new Canadian Research Chair in Robotics and Mine Automation has been established at Laurentian University. This chair will investigate these questions and many more through a series of experiments in a newly established telerobotics laboratory that connects Laurentian teleoperation workstations to model mining machines at Cambrian college?s eDome. The laboratory will support many experiments allowing researchers to physically run multiple robot scenarios differing the numbers and types of machines at one/quarter scale. Further experiments are being designed to investigate the potential for managing time delays in telerobotics. This paper describes the laboratory, experiments and some preliminary results.

May 1, 2003

By François Baillargeon

Two types of ore deposit provide the bulk of the world nickel production. They are the hypogene magmatic massive sulfide deposits and the supergene lateritic deposits. Platinum group elements (PGE) are also extracted from magmatic sulfide deposits. Recent sky-rocketing price of palladium has prompted the mineral industry to seek alternative resources. In such a manner has emerged the Lac-des-Iles type of target, a very low sulfide-bearing bulk tonnage type of deposit. Furthermore, unconventional (e.g. non-magmatic) types of deposit are now sought more intensively (Wilde et al., 2003). Considering both this trend of the PGE Industry, and that only a few magmatic deposits account significantly for the world nickel production, someone may wonder if a diversification of the hypogene nickel resources base would not be needed in the near future. Laterites are residual deposits developed on ultramafic rock under wet tropical climate. Are all ultramafic protoliths equal to generate high-grade lateritic deposit? Are some preweathering processes important to generate favourable ultramafic protoliths? The mineralogical heterogeneity of some ?dry? lateritic nickel deposits renders their ore beneficiation difficult. Is the type of nickel-bearing mineral found in the protolith a significant factor influencing the laterite heterogeneity? To contribute to answer all these questions, we have undertaken a research project on the nickel occurrences of the southern Quebec serpentinite belts. Why choosing this specific region for such a project? First because, due to continuous mining of asbestos ore since 1870, the serpentinite belts of this region are among the best exposed and studied in the world. Secondly, this region host a complete spectrum of nickel deposits that have been described before in the scientific literature. Furthermore, this region is slightly to moderately metamorphosed which make it perfectly suited to study the departure from magmatic nickeliferous paragenesis through various metamorphic conditions. As a matter of fact two orogenic events affected this region, the Taconian, in Ordovician time, and the Acadian during the Devonian. The magnitude and the timing of these dynamo-metamorphic events vary considerably through the region (Gauthier et al., 1994). These variations are now well constrained due to precise age dating.

May 1, 2003

By Tim Gitzel

Thank you for your introduction, and thank you to the CIM for inviting me to make a presentation to you today. This is my first opportunity to report to you on the status of the Canadian uranium industry and I am pleased to tell you that the industry is in good shape, and well positioned for the future. As you will no doubt be aware, Saskatchewan benefits from the world?s largest known highgrade deposits of uranium as well as from a high level of provincial, public and northern community support. It is within this unique combination of geology and community that our industry operates. Uranium markets have been extremely competitive for a number of years for several reasons. First, deregulation in the nuclear electric power industry has tended to encourage fuel buyers to use up their large inventories built up at a time when rapidly increasing demand was anticipated. Second, alternate sources from surplus commercial stocks, military materials and reprocessed fuel have presented a major additional source of uranium supply. Today, these secondary supplies are meeting about half of uranium reactor feed requirements. Canada (that is, Saskatchewan) is the world?s largest ?natural? uranium producer with about a third of the global production. Saskatchewan?s mines produced more than 30 million pounds of yellowcake in 2002. Despite low prices, steady demand for uranium will continue. In fact, an increase in world uranium production in 2002 helped feed a more than 3 per cent increase in reactor fuel demand. Low cost production is important for surviving low market prices, but investments are based on longer-term strategies rather than simply responding to market cycles. Cost is not the only issue. In these times of increasing regulatory and public scrutiny we must continue to earn the trust of our stakeholders by adopting the highest standards and staying on the leading edge of technical, social and environmental developments. Managing these issues is as important as traditional concerns of ore grade and cost of production. The last two decades of the 20th century saw the Province of Saskatchewan rise to prominence as the leader in uranium production from facilities, which were at the time deemed world class. These facilities are now either at - or nearing - the end of their production years. We are now bringing on new facilities that will position Saskatchewan to remain the world leader in uranium production for many years to come.

May 1, 2003

Located in Timmins, Ontario the Porcupine Joint Venture, a pooling of assets between two existing operations (the Dome Operation of Placer Dome (CLA) and the Hoyle Pond Operation of Kinross Gold Corporation) came about on July 1st, 2002; Placer being the manager of the Joint Venture with 51% ownership and Kinross with 49%. The formation of the Joint Venture was the realization of the dream of many who could envision the benefits of the whole area being operated as one entity ? the combination of the majority of assets in the Porcupine Camp into one venture containing tremendous synergistic potential of manpower, infrastructure, land tenure and exploration development. The name Porcupine in the gold mining industry brings with it the legacy of world class gold mines; the Hollinger, McIntyre and Dome with a proud tradition of excellence. The name Porcupine brings with it the legacy of over twenty individual mining companies in operation at any one time, producing over 65 million ounces of gold.

May 1, 2003

By D. Marcotte

The Rock Quality Designation (RQD) is a standard scalar measure of rock quality used in common rock mass classification systems (e.g. RMR, Q system). RQD is measured along diamond drill holes. RQD interpolation between holes is nontrivial. Despite the inherent limitations of drill hole data and the local complexities of structural geology, it is often the only information available for mining and major civil engineering projects. Therefore, maximizing the usefulness of this data is warranted. We derive a correction for directional effects that help reduce the bias and improve the accuracy of the estimations. The correction is derived with the aid of numerous simulations. It relies on simple information, the angle between the joint normals and the borehole axis (JO). A reference direction is identified as the borehole direction with smallest JO. A multiple linear regression model based on JO statistics in the various boreholes defines the correction model. The corrected RQD values are then interpolated. It is shown the method enables reducing the bias on RQD estimation by 50% and improves the accuracy of the estimates by 30%. The corrected RQD values show stronger spatial continuity than the raw values. The benefits of estimating the RQD indirectly by using joint frequency measures are also assessed.

May 1, 2003

By Véronique Falmagne

The mining sequence at Noranda?s Bell-Allard mine calls for two mining fronts retreating toward a central pillar known as the Retreat Zone between pyramids A and C. It is clear from numerical modeling and rock mass characterization that the induced stress level in the pillar will exceed the rock mass capacity. A mining plan was developed including the re-dimensioniong of stopes in the Retreat Zone, additional ground support and instrumentation in order to ensure the safety of the workforce and to maximize ore recovery while minimizing production delays. The mining strategy consists in allowing the rock mass to fracture and fail progressively while maintaining control of the existing openings with the appropriate support. A systematic analysis of rockbursting and caving hazards was conducted for all accesses and stopes in order to plan ground support and instrumentation needs.

May 1, 2003

By David Penswick

Despite anecdotal evidence to the contrary, the mining industry is not in decline. Rather, the world?s largest mining companies are among the most consistently profitable companies in any industry. In many cases, profitable mining companies have been built around a few large scale, long life mines. These criteria for success ? size and long life ? have led to the current preference for deposits that can be exploited using open pit methods. However, developments in the science of block caving have resulted in this mining method achieving costs and productivities that are competitive with the largest open pits, while achieving widespread applicability. One implication of the low costs and widespread applicability of block caving is that some current open pits are possibly too deep.

May 1, 2003

By S. Goodman

Successful exploration for and exploitation of a mineral deposit requires an accurate understanding of the deposit architecture in 3D, and of the development of the mineralizing system through time, which requires a thorough comprehension of the structural framework of the deposit. The integration of geological, geophysical and geochemical datasets to arrive at a 4D structural framework is well-established and has been successfully applied by SRK Consulting in projects from deposit to regional scale. In some cases, we can go beyond this, applying the SEEBASETM technique, which utilizes a ?bottom-up? approach to basin analysis. SRK?s approach primarily relies on the interpretation of magnetic and gravity data, calibrated with many other datasets including mapped geology, topography, event histories, wells/drillholes and seismic data. The SEEBASETM model is a culmination of this data integration and is produced through an iterative process of structural interpretation and geophysical modeling, where an interpretation of basement composition and 4D structure is used to constrain depth-to-basement geophysical modeling, and the modeled depths are then used in conjunction with the structural interpretation to constrain contouring of the basement topography. The result is a rigorously calibrated, 3D view of the basement surface, which can be used to understand the basement and basin architecture, and thus serves as a predictive exploration model. This technique, which was developed for use in the petroleum industry, is now finding success as a predictive tool in mineral exploration.

May 1, 2003

By Lawrence Devon Smith

The Business Case for Sustainable Development ?What are SD & TBL? ?Investment Funds & Fund Managers ?Banks and Risk Aversion ?The Dilemma of Juniors ?Meet Your New Partners ?The Cost of Problems ?The Cost of Delays Sustainable Development ?Humanity has the ability to make development sustainable -to ensure that it meets the needs of the present without compromising the ability of future generations to meet their own needs.? Our Common Future BrundtlandCommission, 1987

May 1, 2003

By Andrew Abraham

Continual improvement is the key to success in today?s competitive global arena. You require tools that promote dynamic quality management, deliver cost savings to your bottom line and provide the foundation for process improvement. ISO 9000 and ISO 14001 management systems and OHSAS 18001 are those tools. Since their inception, the benefits of ISO management systems and registration have been touted as the way to achieve better bottom line results. This spurred many companies to embark upon the road to registration with high expectations. The potential benefits of ISO management system implementation and third party registration that are commonly provided by Registrars and consultants are compelling adverts for success. ISO 9001:2000 is promoted as an essential tool for systematic efficient and affective management controls that provide a framework for analyzing errors and improving a company?s internal operational processes. It also allows companies to comply with internal and external customer and regulatory requirements thus continually improving the quality of their products and services and thus enhancing customer satisfaction. This, in turn, leads to greater customer recognition and increased market share. ISO 14001 implementation and registration may assist your company in reducing its litigation risk, raw material and energy consumption, waste disposal costs and possibly non tariff trade barriers. It should also provide continuity of operations, enhanced operational efficiency and consequently a competitive advantage in the market place. Registration of your ISO 14001 management system should also improve your company?s profile and credibility leading to regulatory flexibility and improved community goodwill. All of this will be a catalyst for improved morale and pride by employees and management alike. Likewise, OHSAS 18001, the latest certification specification for Occupational Health and Safety Management Systems supports Occupational Health and Safety legal and regulatory obligations and compliance, manages & controls Occupational Health and Safety risks and improves performance, safety culture and efficiency. OHSAS 18001 is an audit certification, and not a legislative requirement. Suggested benefits of implementation include reduction in accidents, lost time and associated liability and insurance costs and improving reputation and credibility through demonstrated commitment to health and safety. The foregoing increases access to new customers, joint venture partners and financing The skeptics say these are motherhood statements and lack corroborative evidence, i.e., ?Show me the money!?

May 1, 2003

By John Steele

The goal of this project is to detect the presence of objects behind haul trucks and to provide an alarm to the driver if such objects are detected. Objects of interest include people, pickups, other equipment, and large rocks. Another goal is to see if the system can identify the existence of a berm and determine the distance from the truck to that berm, so a safe backup distance can be computed and used as a reference. This paper presents results that demonstrate that such a system is feasible and includes results from work at a local quarry. Architecture of the system is provided and the various subsystems are discussed. Details of the algorthims are included and discussion of the issues involved in developing a fieldable system are also included.

May 1, 2003

By Knud Sinding

Mining firms are widely criticised for their adverse impacts on the environment. At the same time many firms in the industry devote extensive resources, both financial and managerial, to the reduction or elimination such impacts. Very considerable improvements have been made, although these are sometimes overshadowed by a few high-profile accidents, such as the occasional collapse of a cyanide-containing tailings dam. In parallel, much effort is also directed at projecting a positive environmental image, as witnessed by extensive environmental reporting, both on paper and increasingly through web-platforms. Mining projects today almost invariably involve some form of environmental protection. In industrial countries regulations in this area are extremely stringent, as is enforcement. In less well developed countries, regulation and enforcement may be weaker, but firms are in many cases and for a number of reasons committing themselves to high levels of environmental protection, even if they might get away without doing so. Research in the area of environmental performance of mining firms has so far paid much attention to concepts such as sustainability indicators and the sustainability of individual firms. Given the still raging debates about the appropriate way to determine the degree to which any given firm is sustainable (Welford 1995) as well as the usefulness of what will in the final analysis be a value judgement, anyone on the sidelines of the debate will come back to the fundamental issue, how is knowledge that a particular firm has been judged ?sustainable? going to be made use of. This issue remains unresolved, which may explain the lack of progress in formulating a useful definition of a sustainable firm The question addressed in this paper is not so much about what firms are doing on the ground or in any particular case of environmental protection, but more in the subsequent use of these efforts - and by extension - on the overall direction of corporate environmental strategy. The fundamental problem facing all mining firms is that they cannot easily benefit from unilaterally reducing their environmental impact. The firm can of course avoid liability and keep a variety of stakeholders happy and hence experience lower costs of obtaining the [input] resources they need (in a broad sense, not just minerals), but this represents only part of the opportunities available form pursuing an environmental strategy (Reinhardt 2000). The other part, which may have an enormous potential, involves the concepts of competitor management and product differentiation. The logic of keeping stakeholders happy has been most forcefully argued by Pfeffer and Salanchick (1978) who link the behaviour of firms in all domains to their ability to obtain the resources they need, at a cost that is lower than it would otherwise be (Pfeffer & Salanccik 1978). Several varieties of strategy can be included under this heading, including cost reduction and risk management. The alternative logic is to convince customers that they want to pay more for minerals supplied by mining firm X or directly attributable to mine Y, or by making all mineral users pay more. These two strategies, which may be referred to as product differentiation and competitor management, respectively (Reinhardt 2000) are related to the demand side of mineral supply, whereas cost reduction and risk management are related to the supply side. Mining firms have not pursued the demand side very much, if at all. This is probably due to the extreme difficulty of moving mineral products, bulky and unglamorous as they are, away from their

May 1, 2003

By Kent Zehr

Suncor Energy Inc. is an integrated producer and refiner of oil and gas headquartered in Calgary, Alberta. The bulk of revenue comes from the Oil Sands Group (OSG) operating in the McMurray formation of the Athabasca Oil Sands. Located some 25 kilometers north of Fort McMurray, Suncor OSG began life in 1967 as Great Canadian Oil Sands, the first operator to successfully enter commercial production of synthetic crude oils from the area. For most of the last decade, dramatic growth has been the standard mode of operation for Suncor OSG. Production of synthetic crude first reached 100,000 barrels per day in 1997 and less than five years later is averaging in excess of 200,000 barrels per day. Within this dynamic organization, Suncor Extraction is the business unit that processes run-of-mine ore into clean diluted bitumen for Upgrader feedstock. Extraction also delivers and places the barren sand and process affected water into tailings storage in one of several ponds from which water is recycled to support the various processes. For reference purposes, Extraction on a typical day currently receives more than 400,000 metric tons of oilsand ore, which is all processed to water based slurry for separation in one of two extraction plants. Separated tailings are disposed of as a slurry and the cleaned bitumen froth is diluted with naphtha and sent to tankage for storage until required by the Upgrading Unit. As a consequence, on a typical day Suncor Extraction pumps more than 1,000,000 tonnes of aggressive slurry into and out of the two extraction plants.

May 1, 2003

By Mark Rantapaa

Measurable improvements in throughput have been documented at Barrick Goldstrike due to increased ore fragmentation through efficient drilling and blasting techniques. A decrease in throughput at the Autoclave, due to increasingly hard ore, was identified in early 2002. A team of individuals from the Open Pit and Process areas worked closely on the Drill-to-Mill (D2M) Continuous Improvement initiative to ensure that it would address the needs of both groups, with the target of actually improving throughput in future years, despite the projected harder ores. A series of tests were conducted to determine if adjustments to drilling and blasting could positively influence throughput. Better fragmentation and a subsequent increase in mill throughput were achieved through the use of: 1) Electronic caps for more precision and flexibility, as well as for allowing extremely fast shots. 2) Explosives with a higher velocity of detonation (VOD), to provide for improved shock energy. 3) Improved distribution of the explosives by decreasing pattern spacing. Early tests indicated a significant increase in throughput when processing identified harder ore. It is anticipated that the total process throughput (hard and soft ore) will increase by six tph in 2003 due to the improved fragmentation of the hard ore. Barrick Goldstrike?s D2M initiative includes roaster ?hard ore? (BWI >17), as well as autoclave ?hard ore? (BWI >15). Approximately six million tons of D2M material is expected be shot in 2003, a relatively small amount compared to the 150 million tons to be mined. The benefit of additional ounces produced should far outweigh the additional drilling and blasting costs.

May 1, 2003

By Robert Hamilton

Aur Resources is Canada's leading copper mining company with producing mines and development projects in North, Central, and South America. Copper production from Louvicourt Mine in Quebec, Quebrada Blanca, and Andacollo Mines in Chile had a record of 245 million pounds in 2001. Located 600 km North of Montreal, Louvicourt Mine is a joint venture between Aur Resources (30%), Teck Cominco (45%), and Novicourt (45%). Aur Resources is the mine operator with 280 employees working to produce a copper and zinc concentrate. In operation since 1994, the mine has produced a total of 12,606,000 metric tonnes of ore grading 3.6 % Cu, 1.5 % Zn, 26gr./m.t Ag, 0.9gr.m.t Au. This highly mechanized mine reached full production in August 1995 at 4,000 tpd. From 1996 to 2001, the average mine production rate was more than 4,300 tpd. The Louvicourt Mine continued its record of solid performance in 2002 and is expected to continue to do so for the balance of its 2.5 years mine life.

May 1, 2003

By Adrian Dance

The Antamina orebody is a geologically complex, polymetallic skarn located in the Peruvian Andes. A range of copper and copper-zinc ores are campaigned separately through the concentrator producing copper and zinc concentrates as well as lead and molybdenum by-products. Ore type classification at Antamina is based on chemical assays; geological or lithological variations are not considered. Consequently, each ore type demonstrates a wide range of concentrator performance. Antamina is currently implementing a system to track ore movements from the shovel face to the concentrator. Relatively sophisticated models of the ROM and coarse ore stockpiles ahead of the mill will be used to account for the variable delay between mining and milling. One of the numerous benefits of ore tracking is the ability to directly associate the measured concentrator performance with a physical location in the orebody. Using existing mine planning software, three-dimensional models can be created of such performance measures as metal recovery, concentrate quality, operating cost and reagent consumption. Such a database of information allows the true value of different ore sources to be determined. The value of an ore source is conventionally measured as metal content (individual or combined ?equivalent?) with a cut-off grade applied to indicate some base level operating cost. However, the true value of an ore source should include dynamic factors like haulage cost, reagent use, smelter penalties and even prevailing metal prices. If an ore source is considered from all perspectives rather than simply its potential to deliver value, the concept of ?ore? becomes more flexible. Any ore source that reveals itself to be unprofitable can be eliminated from the mine plan or possibly blended with others to improve its value. The ability to predict mill performance ? and thereby profitability ? is a powerful tool. In an operation such as Antamina, where managing ore sources, campaigns and the delivery of a variety of concentrates in a narrow timeline to customers is a daily challenge, prediction is the key to success and improved efficiency.

May 1, 2003

By Charles Tkaczuk

In order to remain competitive the mining industry must keep up with changes in technology. Many innovative technologies from the mining perspective are commonplace in other industries. A ?Global? review of technologies will often reveal existing technologies that can be innovatively applied in the mining industry. Industries, which are rife with proven solutions include, medicine, biotechnology, security, manufacturing, telecommunications, etc. This paper addresses the communications aspect of mining where greater productivity, lower costs and the ability to quickly react to mining related events is obtained through an increase in remote monitoring and operating control. A review of the communications systems in place globally reveals technologies that, with minimal modification, can be immediately applied to the mining environment. We discuss the concept, advantages and implementation of existing communications technology from an industry that is not usually associated with the mining industry. This technology will form the basis of a solid platform on which can be built a state-of-the-art process monitoring, control, and communication system. This lays the groundwork for providing one solution to the underground mining industry?s most difficult problem, establishing a reliable, maintainable and cost-effective underground bi-directional wired/wireless data, video and analog communications system. We need look no further than our own doorsteps to find such a solution. The cable that you see coming from the simple green or brown box on the boulevard into your home contains hundreds of television broadcast channels, FM radio channels and data channels. And if you have a set-top box, you are in control of it all. The Cable Television Broadcast Distribution System suppliers of today are at the leading edge of converging all the different methods of communications onto a common carrier, coaxial cable or fibre optic cable. There is no fundamental difference between providing a reliable communications network to a city/neighbourhood/home/personal computer than there is to a mining operation/underground level/equipment or person. The principle is the same. Only the application is different. Realizing this, we can capitalize on the efforts of other industrial sectors, to solve our communications problem. Where else can you find a solution to a problem that is mature, having been developed with the input of thousands of engineers, and having hundreds of millions of dollars spent on research and development, manufacturing, distribution, global presence and engineering support?

May 1, 2003

By Michael Samis

The real option valuation method is often presented as an alternative to the conventional discounted cash flow (DCF) approach because it is able to recognize additional project value due to the presence of management flexibility. However, these two valuation methods can be separated on a more fundamental level by their differences in risk discounting. Real option valuation applies the risk-adjustment to the source of uncertainty in the cash flow while the DCF method adjusts for risk at the aggregate level of net cash flow. This seemingly small difference is the reason why the real option method is able to differentiate between projects according to each project?s unique risk characteristics while the conventional DCF approach cannot. This paper provides an overview of the real options and DCF valuation frameworks and discusses the differences in risk discounting that exist between the two methods. Using grade-school mathematics, this paper clearly demonstrates how, with real options, a unique project risk discount can be calculated which is directly linked to the project?s unique risk profile. It also highlights why the DCF method fails in this regard and shows why a call to ?increase the Risk-Adjusted Discount Rate? is an incomplete solution at best. Finally, a heap-leach project and satellite reserve development project are valued with both techniques and the difference in investment conclusions is explained in terms of the risk-discounting concepts discussed here.

May 1, 2003